Full text of Commercial and Financial Chronicle : February 11, 1960, Vol. 191, No. 5924

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he COMMERCIAL and FINANCIAL

ESTABLISHED 1839

Number 5924

191

Volume

New York 7, N.

AS WE SEE IT

Edmriai,

nlnr»tirvv>

««/»+/>/!

mi

Reg. TJ. S. Pat. Office

rlntrinnrv

TfnoY»

-

By Dr. Marcus Nadler,* Professor of Finance, Neiv York
University, New York City and Consulting Economist to

or

that

of

time

nounced

They

appraised in terms of investment policy consider¬

are

ations

under

inflationary and non-inflationary conditions.

Nadler foresees:

Dr.

vailing;

(t)

relatively high interest rates

pre¬

(2) international money market rates determining

and

ours

precluding return to pegged government bond; par

values and

1953-54 and 1957-58 monetary conditions; and
(3) the cost and availability of long term money depending
whether

on

any

inflationary

pressures

discipline is practiced. The latter's

^

institutional

means

any over¬

between

investors

bonds and

are

curbed

will

and

outlook for

their

balance

an

ebullient

of

the

cited

fiscal

tired officers of the

various

armed

individuals, often

be

and

at

the

end

of

the

will

last

All in

hopeful

depression?

projected into

appear

and

endeavor

to

as

was

marked by a strong upward
as well as long term

was

obvious and persistent.

The decade

marked by strong inflationary pressures. Both
wholesale and retail prices rose, and the purchas¬

ing

power

index

of the dollar measured by the consumer
by 25%.
This development was

decreased

largely responsible for the divergent movement of
bond and equity prices and contributed materially
the

to

shift

in the investment

policies of pension
equities and led as

and trust funds from bonds to

well to

the

During the

growth of mutual funds.

past decade, trust companies, after long discussion
and

deliberation, reached the conclusion that the

protection of the purchasing power of
of equal importance
Whether

Marcus Nadler

from

Who

could

War?

Korean

road

decade.

eral trend

could

resulting

expenditures

the

accurately

was

have foreseen the huge defense
the

on

as

Although both bond and equity prices
during the decade fluctuated materially, the gen¬

Such

Who

business activity

on

late 1920's.

decade of

a

an appraisal
anlysis is of

by a corresponding decline in bond prices.
equity market witnessed a sharp increase,
reaching levels that have not been seen since the

are£ interesting

30's would be

great

an

The

ket, would have predicted that
the

Such

—and

Forecasting is hazardous. Who,
at the end of 1929, in spite of
the break in the equity mar¬

sought out and
brought to public hearings in Washington is remarkable
—we
had almost said disgraceful. Even worse is the
evident disposition to encourage
(Continued on page 25)

that

mean

trend of interest rates—short

the clouds that hide the future.

are

is valueless.

Investment Climate of the 1950's

only
signs of the human imagin¬
ation and its desire to pierce

re¬

in¬

1

The last decade

what

1969.

pro¬

on

possible. Before
forces are considered, it is first necessary
to review briefly the investment environment of

were

even

a

investment values, point to certain markers

as

forces, who differ with the

Administration about this and that

Product

and they have
business activity and

these

economy.

was

happen,
on

interpret them

to what the Gross Na¬

forecasts

Shameful Procedure
with which

years

future

on

that

the Dow-Jones averages would

services, and by the eternal mutterings of public
figures who find sound fiscal policies per se annoying
and dangerous—-or at least to pass them up when the
vital subject of defense is under consideration?

ardor

as

tional

various

armed

The

the past 10
and figures

progress of
the future,

what appears to him to be political opportuni¬
presented by closed hearings on matters which pre¬
sumably should be held in strict confidence, by the in¬

the

and

portfolios

a

do

effect

analyze their possible effects

Many economists and security analysts have made
glowing forecasts for the present decade. The years
ahead were termed the golden or glorious '60s. The

ties

officers

J

considerable importance once one realizes its limi¬
tations.
What one can and should do is to con¬
sider the forces that will operate in the economy,

equities, and interest rates should not

all, the start made for this decade is said to offer

to pass up

dissident

,

This, however, does npt
of

Dr. Nadler says,

success,

higher than those at the beginning of 1960.

any

go

Capitol Hill who should be thoroughly ashamed of
the way they are proceeding to deal with the question of
national defense. Is it too much to expect of a politician

of

—

vestment values.

on

number

Copy

a

the dollar shortage within a short
period v
would become a dollar surplus?
Unfore¬

events

seen

The Hanover Bank

riding judgment of our own about who or what is right
and wise in this highly technical matter, we say without
hesitation that there are a number of influential figures

evitable

Cents

S

imperative. This is an election year and such political
inevitable, but it would appear that
there are plenty of issues not quite so vital to our con¬
tinued existence, to say nothing of our welfare, which

if

.*JL

'•

tactics are all but

—

Price 50

Influential Forces Shaping This

JU..

expected election year defense expenditure con¬
troversy is getting well under way in Washington. So
bedeviled has this subject become with politics, and so
contaminated with New Deal antagonism to anything
that smacks of sound fiscal policy, that the basic ques¬
tions that must be decided, or certainly ought to be
decided, without evasion, equivocation or undue timidity
are horribly obscured in the public mind. This is not a
situation which promotes or perhaps even permits ra¬
tional decisions in an area where rational decisions are

The

might better be exploited for such purposes
important issue is to be so exploited.
Without in any way undertaking to set up

Y., Thursday, February 11, 1960

or

not

a trust was
to the preservation of principal.

the

same

trend

in

bond

and

prices will continue during the present
decade will depend to a
(Continued on page 26)

equity

predict the rapid come-back of Western Germany

Underwriters and distributors of

/

REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
undertakings in our "Securities in Registration" Section, starting on page 32.

SECURITIES NOW IN
securities

afforded

are

STATE, MUNICIPAL AND

a

PUBLIC

U. S. Government,

AND

AGENCY

HOUSING

BONDS

tial

NOTES

Dealers in and Distributors

Public

State and

of Securities of

STATE and MUNICIPAL

Municipal

Securities
telephone:

im

Housing,

Federal Land Banks

Lester, Ryons & Co.
.

So.

623

Federal Intermediate Credit Banks

Hope Street, Los Angeles 17,

Federal Home Loan Banks

California
••

Banks for
mm■XcivKsw.*«v»NWW

Members New York Stock

BONDS

HAnover 2-3700

Exchange

-

Associate Member American Stock Exchange
Members Pacific Coast Exchange

Cooperatives

Federal National

Mortgage Association

United States Government Insured Merchant
Marine Bonds

Offices

UNDERWRITERS

chemical bank
new york

BROKERS

30 Broad Street

THE FIRST NATIONAL CITY BANK

Burnham and
MEMBERS NEW

•

CABLE,

STREET, NEW YORK 5,

COBURNHAM

STOCK EXCHANGES

• Dl 4-1400
TELBTYPE NY

N.Y.

T.L. Watson &Co.
ESTABLISHED

1832

New York Stock

Exchange

Stock

Exchange

American

NEW YORK 4,

first

N. Y.

BRIDGEPORT

DALLAS




•

PERTH AMBOY

New

York

Southern

Correspondent

—

Pershing & Co.

canadian

CANADIAN

securities

BANK
HAnover 2-6000

MunicipalBonds

BONDS & STOCKS

Commission Orders Executed
Canadian Exchanges
CANADIAN

DIRECT WIRES TO

NEW YORK

_

CALIFORNIA'S
CIVIC

IMPROVEMENT

On All

DEPARTMENT

Dominion Securities

MONTREAL AND TORONTO

Goodbody a
2 BROADWAY

FOR

Invited

MEMBERS NEW YORK STOCK

gotdkiveAt company

on

THE

Chase Manhattan

Active Markets Maintained

Teletype NY 1-2270

BROAD STREET

Monica

Dealers, Banks and Brokers

Securities
25

Development (World Bank)

Riverside, San Diego, Santa Ana,

Inquiries Invited

Teletype: NY 1-708

Block Inquiries

Members

Investment

and

California Securities

Bond Dept.

To

Distributor

Dealer

Mar,

International Bank for Reconstruction

OF NEW YORK

Company

YORK AND AMERICAN

Net

Underwriter

del

and

Santa

15 BROAD

New York 15

Claremont, Corona

Oceanside, Pasadena, Pomona, Redlands,

DEALERS

•

trust company
BOND DEPARTMENT

in

Encino, Glendale, Hollywood, Long Beach,

MUNICIPAL BOND

Grporation

Co.

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

40

Exchange Place, New York5,N.Y.

Teletype NY 1-702-3

WHitehaU 4-8161

Bank

of

DEPARTMENT

America

N.T. & S. A.

San Francisco

Los Angeles

2

For

(658)

The Commercial and Financial Chronicle

The

Banks, Brokers, Dealers only

If it's Over-the-Counter
Traders

.

.

Security I Like Best...

Say

participate and give their

reasons

BENJAMIN F. EDWARDS III

of electronic

*

1.

Primary markets in

tkan

more

2. 39 years

Members: New York Stock Exchange,
American Stock Exchange, Midtcest

0-T-C experience.

Stock
3. Nationwide

private wire system.

Broader

5.

Fast, dependable executions.

Coverage.

Exchange

an

W.

Sams

field all its

in

a

Founded in 1946

own.

by its Board Chairman and Presi¬

dent,: Howard
W. Sams, the

New York Hanseatic

company has

Established

1920

of

Exchange

WOrth 4-2300

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wires

Private

to

essential

od

.mst:
>

on

It

has

Request

(Coraor of Washington St.)
TaUphon* Richmond 2-2530

i

vious

market

services

MARKET LETTERS?

-on

how good his

information, should be familiar with

SITUATIONS'

detailed

based

reports

face-to-face talks with management of small

Current

companies.

issue

reports

on

rapidly

-growing listed soft drink company selling at 7
times

last

creased

year's

over

may increase

30%

earnings
in

each

20% this year.

whose. profits
of

last

two

In¬

years,

SEND $1 for

cur¬

rent

issue, J15 for 3-month subscription, 550 for
1 year. Published twice a month.

the

PROFIT SITUATIONS
Hillsdale, N. J.

made

are

Hence,

findings

with

as

and at

wjmfor

on many

sold

are

who

y

almost

country. These dis¬
jobbers sell, in turn
profit, to the technicians

equipment
in their shops.

or

repairman

without

in

our

Such
file

a

a

of

"Photofacts" is as helpless as one
without a screwdriver. There is a
constant demand for back
copies,
and

the

inventory

LAMB0RN & CO., Inc.
99

WALL

STREET

NEW YORK 5, N. Y.

of

valued only

—

Refined

—

Export*——Imports—Future t

"Photofacts,"

goes

by

without

least

one

the

of

past

tronics

Liquid

large

ance
sheet but sold at
regular
prices. It is a rare day that

In

Raw

old

a

nominally in the bal¬

the
the

facts," printed

SUGAR

carries

company

shipment
first

10

of

at

"Photo¬

13 years ago,
over 150 elec¬

over

year,

manufacturers

in

the

United States,
Europe, and Japan
submitted over 2,200 models to
Howard
W.
Sams
&
Co.

for

analysis.
As

an

outgrowth of its analysis

many

it

cases,

the

14-fold

even

mailing

has been




ts

a

operations

in

no

circumstances

solicitation of

an

nffpr

to

to

hnv

in

Indianapolis,! *
It

bought

of

Investment

Bankers

Broadway,N.Y.6 COrtlandt T-5680

.

Consumer
Finance }

Companies

construction

We

seek for retail off-street

blocks

ment
or

of

inactive

stocks

common

of

placepreferred

dividend-

paying small-loan companies, sales
finance companies, or factors.

Indianapolis

start

to

record

Counter

quite

ALBERT J.CAPLAN &C0.
Members:

-Boston

&

Phila.-Balto.
Pitts.

Stock

Stock

Exch.

Exchange

(Assoc.)

1516 LOCUST ST., PHILA. 2, PA.

should be easily a
year. In the first
quarter,

(including

approximately

$0.12

from

a

quired

Merrill)

as

'58

ac¬

Bobbs-

—,

compared

like

active

and

a

market

in

common

offering

Market

thin,

for

the

the

stock

shares

the

AMERICAN MENTAL HEALTH

is

FOUNDATION, Inc.

appear

in the light of the
company's prospects of continued

growth and
an

are

recommended

exceptionally

promising

as

K

151 Central Park West
New York 23,

N.Y.-

<

in¬

vestment.

CARROL W. BAILEY

with

$0.28

fiscal

December, usually

a

,

i

quarter.
dull month

for the
company, was, in
best month in its

1959, the

history.

Pioneers in Mental Health

Kinsley & Adams, Worcester, Mass.
Members

Boston Stock
Exchange
Springfield (Mass.) Television

and Psychotherapy
since

1924.

Broadcasting Corp.

tax., loss

recently

subsidiary

the

construct

profitable opera¬

ending Sept. 30, 1959, net income
was
$0.58 per share

in

to

undervalued

'60

carry-over

anticipated that it will,

year

first

during this period.

This
an

company's

stock

represents
in that

interesting speculation

this

company

television

owns

broadcasting

operation

/sss\
mmt

s

northern Con¬

i

a

Holyoke,Mass.

share, against $0.97 in
fiscal '59, placing the
price of the

tOVWMioe

successful

a

serving
the
Springfield-

For
share is

fiscal '60, net income
per
expected to be between $2.25 and

$3.00

per

common

stock

at a low 15 times
the minimum estimate. A
tax loss

carry-forward

from

Bobbs-Mer-

rill, most of which will be used
up

this

Net

than

by

sales

Dividends

aid

fiscal

approximately

are

double

annual

will

year,

earnings

expected

to

are

over

to

'60

13%
more

$12 million.

currently

on a

$0.60

rate.

Bobbs-Merrill, one of the oldest
and finest publishers
of
textbooks,
law books and
children's books,

be construed
any

a*

security

and the
Greenfield-

area,

an

offer

roforrpd

to

to

sell,

or

herein.)

saving*

necticut River

Valley
In

area.

addition,

by

its

N.Q.B.

recent

acquisition,
is

it
long-term

a

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX

speculation in
the

develop¬

ment of

tion
the

DIgby 4-2727

(This is under

com¬

Although the present Over-the-

from

a

tion each year

.

111

own

completed Dec. 2, 1959, of 88,000
shares
at
25
(50,000 new and
38,000 by selling stockholders).

1959. Net income has risen
more
than 20-fold from
$18,551 in 1946
to $371,301 in fiscal '59.
The com¬
pany

a

The

$431,953 in
1946 (calendar
year) to $5,957,400
in the fiscal
year, ending June 30,

over

or

service

homes

its

s

leased.

one

plans

take

that of brightest "glamor" indus¬
tries.
Net sales have
increased

pieces

to

its

the

Howard W. Sams & Co.
stock followed the public

In

Fiscal

the

a

be

for the manufacturer.
past growth of the com¬
pany has been as remarkable as

the

Tokyo, Japan
Brokers &

January 1962 of a large (approx.
300,000 sq. ft.) plant to house all
divisions, doubling available

The

finished

same

1,800 electronic parts distributors
over

t

a n

northwest

and

in

can

conducts

land

time

present

tpi
Indiana,

material

explains
its
diagrams, labeled

equipment,

tributors

area

an

<

year to move in.

prints and publishes

then

containing folders

all

three

Affiliate of

courses.

the

and technicians for
manufacturers
on
a
fee basis as well as
for

The "Photofact"
envelopes, each

ON THE JOB

pany

for

with

so

space. It is

publication.

of

the

Although the
take on relatively

equipment

do

company
does
a
huge
volume of mailing to distributors

photographs, and simplified
literature in
"Photofact," its major

Your Red Cross

At

The

equipment pictured on the draw¬
ing board. Howard W. Sams & Co.
performs an autopsy on the final
and

plan such

the

do

market.
can

to

.

Company

York, Inc.

Yamaichi Securities Co., Ltd.

manuals and experience
gained from helping other schools

Leading elec¬

which substantial growth
foreseen.

per¬

-

service

serv¬

complicated mili¬

physical capacity, it is

to facili¬

and

the

the

never

product

with

equipped

.

growing

itself.

production

of New

cor¬

to television servicemen. It is well

frequency,

also

rapidly

write

Yamaichi

aware

for

household. It is considering enter¬
ing this field especially in regard

an

States Government

on

the

been

need

number of electronics-items in the

little of this type of work at the
present time because of limited

equipment is made
from
engineers' " specifications.
During the course of manufacture,

formance.

tolerate

manufacturers

company

Electronics

both

not

increasing

industrial

recorders, etc.

tate

with

same

industry,
later
supple¬
mented
by
other
electronics
equipment commonly found in the
home, such as hi-fi, stereo, tape

modifications

does

tary equipment.

the

was

and

important

service

as well as by subscrip¬
extremely profit con¬

is

has

company

an

or

Securities

respondence schools to help train
the many technicians
necessary to

tronic

company's

outset

publishes a number of trade
magazines which are supported by

ice manuals

repair

product is

P. 0. Box 14

for

its

at

Call

parts, both wide
to this type of service.

The

information

current

.

pany

paid the company to prepare

ob¬

and

For

automotive

of

The United

radio-television maintenance and

NEEDS

no matter

immediate

most

open

has,

investor.

STOCKS

..

Fax"
will
be
profitable.
Other
fields being studied are hardware

unprofitable item.

growth purchase in a small firm
(fiscal
'59
sales
volume
$5.9
million) closely allied with the
electronics industry. One should,
however, not minimize its con¬
siderable appeal to the venture¬
The

Co.

and

It

branch offices

has

by another concern make
important competition
virtually
impossible. In addition, the com¬

scious

important competitor. In this
it is of distinct appeal to

some

&

entry

advertising

a

u/U&Loa CO.. INC.

Sams

so much experience and such
dominant position in this field
that the costs and problems of

tion.

the conservative investor seeking

COURT STREET, BOSTON 9, MASS-

PROFIT

in

stake

relatively in¬
competi¬

respect

ro

of

is

tion present in the field as it has

SILLER BROTHERS

Every serious investor,

yet

sulated from the intense

no

sources

important

an

electronics,

GENERAL DISTRIBUTORS

WHO

industries, the
principal business is

company's

W.

a

education.

FUND OP BOSTON

_

B. F. Edwards

tronics and service

SECURITIES

Howard

has

erately

nicians in terms they can under¬
stand.
A part of both the elec¬

MUTUAL

Prospectus

nicians.

to our

management,

cataloguing technique. Recently it
has initiated "Frame-Fax," a list¬
ing of eye-glass frames. It is still
too early to tell whether "Frame-

the

of

distributor just as the "Photofact"
is a bible to repairman and tech¬

trained tech¬

mom

become

business

Co.

&

its

,

Direct wires

„

Noting its success with "Counter
Facts," the company is consider¬
ing new fields with this same

•

to; the

very

Sams

ownership.

listed in

have

W.

NY 1-1557

Birmingham. Ala
Mobile, Ala.

greatly increased its products and
services, and expects to show a
substantial profit in fiscal '60, the
f
company's
first
full
year
of

only

eager to cooperate in the com¬

Facts"

profitable
purchasing it,

a

house-cleaned

few parts. Parts manufacturers

not

been

Since

Howard

equipment. Using "Counter
Facts," the distributor can select

"Counter

highly skilled
engineers to
m

HAnover 2-0700

New Orleans, La. -

purchased in November 1958...

was

to any

were

Exchange

19 Rector St., New York
6, N. Y.

It had not

they
catalogue.

Members New York Stock

Members American Stock Exchange

/

operation.

if

;

„

""

or

may

manufacturer and stock

'

AS

Steiner, RouseS Co

Bailey, of: Kinsley & Adams,
Worcester, Mass. (Page 2) *

>

that repairs could be made

so

Bought—Sold—Quoted
*-C

Springfield
.(Mass.)
Television
Broadcasting Co. — Carrol W.

have to stock each manufacturer's

the

ing the com¬
plexities of

Edwards

item

parts

•equipment*
designed by

Principal Cities

:

t"

are

of "Counter Facts" as it
would be difficult for them to sell

tronic age:
communicat¬

120 Broadway, New York 5

a c

piling

elec¬

the

F

Facts"

make
and,
without
jobbers would

part,
Facts,"

same

are

most

pressing needs

Associate Member
American Stock

the

of

'

"Counter

''Counter

manufacturers

"Counter

a

success on one

com¬

component

inventory savings. Seven

one

capitalized its

Corporation
'

_

its

each

time-saving tool for
the electronic parts distributor in
that they are a source of impor¬

Co., Inc., is the

company

Louisiana Securities

Sams

Co.—Benjamin
III, Partner, A.* G.
Edwards & Sons, St. Louis, Mo.
(Page 2)

F.

valuable

a

eight

&

extraordinary

equipment, the

lists

catalogues.

tant

Howard W. Sams & Co.

Howard

4.

in

part

St. Louis, Mo.

-

400 unlisted securities.

also

pany t

Partner, A. G. Edivards & Sons

Alabama &

Selections

for favoring a particular security.
Howard W.

advantages of:

Thursday, February 11, I960

.

Participants and

Their

Call "HANSEATIC"
For the combined

.

Week's

This
Forum

A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the country

.

.

a

sta¬

Worcester,

Mass.

politan

20-Year Performance of

serving
Carrol W. Bailey

35 Industrial Stocks

metro¬
area.

There

are

not many

opportunities for the public to own
a
part of a profitable television

broadcasting

company. Most prof¬
itable television stations are owned

Continued

on

page

39

FOLDER

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

Hew York

4, H. Y.

,

Number 5924

191

Volume

.

.

(659)

The Commercial and Financial Chronicle

.

CONTENTS

What It Can and Cannot Do

B.S.
COMPANY

Articles and News

William McChesney Martin, Jr.* Chairman, Board of
Governors of the Federal Reserve System, Washington, D. C.

By

WHOM

higher interest rates. He submits that the Fed cannot for long *
enforce an interest rate above or below that which equalizes sav¬
by the

and investments!

—Marcus Nadler

Monetary Policy: What It Can and Cannot Do

—William

McChesney Martin, Jr.—

B. Baird—

Texas Instruments, Inc.:

1—Ira

U.

—William

H.

10

Peterson.-

.

—Norman E. Alexander

proved

cial
ment

as

,

environ¬
changes
McC. Martin, Jr.

W.

that
took p-lace last year were
changes

matic indeed.

dra¬

expanded
one-third
more than the previous peacetime
record. Mortgage debt, most of it
1959,

credit

—

housing, increased by a rec¬
ord $19 billion.
Consumer credit
outstanding rose about $6.5 bil¬

for

Enormous Credit Expansion
The American economy and

"

the

would be in a
different and a vastly worse
people

today

this

if

expansion of credit had
nanced

of

by

enormous
been fi¬

large-scale

the

crea¬
by the

funds

additional

banking system and
rapid and

consequent
inflationary increase in
a

the money supply.

Fortunately,

that

danger

was
To date,

averted—in 1959 at least.
the task of supplying this

,

huge

demand for credit without severe

tarily the loan
of

Actual Practice

18

l

Science Education?

20

—Roger W. Babson_—

As We See It

their

of

the

savings,

banking

system,

Investment

Dealer-Broker

Kosher Foods,

savers

The

which

obviously
is
influenced
greatly by Federal Reserve pol¬

Reporter's Report

Our

Public Utility

f

Securities Now in

Prospective Security
•

■

.

State of Trade

The

*Column not

Nashville

Newark




Chicago

Schenectady

Glens

Falls

Worcester

■

n

m

i

IN

V

;

40

Bank &

Quotation

Record

Reg. U. S.

DANA

CHRONICLE
Patent Office

Reentered

2-9570 to 9576

25,

CLAUDE D.

SEIBERT, President

SEIBERT,

Vice-President

February

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

quotation

clearings,

Office: 135 South .La Salle St.,
Chicago 3, 111. • (Telephone STate 2-0613).
Other

on

S.
of

Subscriptions in
United States, U.
Territories and Members

Dominion
Other

of

Union,

Other

$45.00

and

Note—On
the

rate

foreign

$72.00

per

per

•

of

remittances

and

The

-

Write

in
for

advertisements

New York funds.:**

-

listed

securities

as

those "hard to find"

Counter quota¬

or

call:'

WILLIAM B. DANA CO.

Record — Monthly,,
(Foreign Postage extra).

exchange,

as

,

Publications

subscriptions

will

prices

tions.

year.

year.

account of the fluctuations

must be made in

all

Over

in

year,

Quotation

year.

per

per

$68.00

Canada,

Countries,

Bank

$65.00

$4)

give you the monthly

well

Possessions,

11, I960

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

>■

Subscription Rates

Pan-American

—

publication

Febru¬

matter

second-class

as

bound

This

1942, at the post office at New
York, N. Y.^ under the Act of March 8,1879.
ary

COMPANY, Publishers
York 7, N. Y.

MORRISSEY, Editor

WILLIAM DANA

;

/•Company

Park Place, New

GEORGE J.

(Single Copy

Copyright 1960 by William B. Dana

Twice Weekly

Every

TELETYPE NY 14

TELEPHONE HAnover 24300
Boston

6

available this week.

COMMERCIAL and

WILLIAM B.

1868

YORK 4, N. Y.

i

-

i

i

(Only $45 per year)

Thursday,

Albany

-

5

and Industry

in a single year.
efficient and economically
Continued on page 24

Spencer Trask & Co.
ST., NEW

QUOTATIONS?

2

Best

Washington and You

REctor

BROAD

St. Louis

NEED "HARD TO FIND"

16

Market—Donald D. Mackey

Tax-Exempt Bond

25

25

25

of 400%

Stock Exchange

>

YOU WILL FIND THEM

billion in 1959—a

Lrzsi: PREFERRED STOCKS

York

Cleveland
Dallas
Philadelphia

Angeles

San Francisco

30

i

FINANCIAL

New

Los

36

Offerings

and You—By Wallace Streete

Security I Like

The

The

Member.

.

.

—-

—

Corner—

Security Salesman's
The Market

Direct Wires to

Chicago

*
Registration-

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

16

—

Railroad Securities

Published

Founded

*

——•——

Securities

request V

on

mackie,

&

23

Governments-—

on

Prospectus

Singer, Bean

4

activity

almost $20

jump

21

-

—

*

HA 2-9000

nonbank

to

Reporter

Our

rate of use.

last year of the
public—meaning for the
most part consumers and business
concerns—in supplying borrowers
with funds through the process of
investment was truly extraordi¬
nary, and it did not stop with the
purchase of government securities
sold by the banking system. The
upswing in this activity shows up
strikingly in the flow-of-funds
data
that I mentioned
earlier.
The

and Bankers—..—

Observations—A. Wilfred May—-—

economic and financial
effect as would have been pro¬
duced by a modest increase in the
money supply without the accom¬

Simplicity Manufacturing*

22

-

News About Banks

.

same

Investments

Funds

Inc.*

Magnetic Amplifier

38'

Activity

Indications of Current Business
Mutual

12

Ahead of the News—Carlisle Bargeron_.

From Washington

banks to borrowers did
to assure that the need for

400% Jump in

Hebrew National

12

to

paniment of a faster

Pacific Uranium

European

Trade"

Free

Pantasote

8

Recommendations

Einzig: "U. S. A.'s Changed Attitude Toward

by passing the funds on to
others who had a need to borrow.

from

40

Field

i

and

funds

23

Comings Events in the Investment

Thus, the banks performed an
intermediary service by obtaining
funds from savers, to whom they
transferred investment securities,

of

Broadway, New York 5

DIgby 4-4970

lending in large part by

flow

39

Cover

—

_

Stocks

and Insurance

Bank

selling government securities they
owned to the nonbank public.

This

(Editorial)

important

The

1955.

J.F.Reilly&Co.,lnc.

Regular Features

inflationary" 'cfonsequences '.has
been accomplished chiefly by the There, it appears that consumer
sound and democratic process of and business investors increased
letting those who would borrow the net amount of their purchases
provide those who would save made directly in securities mar¬
with an inducement to risk volun¬ kets from about $4 billion in 1958
the role

vs.

Sharron

O.

What Are We Doing to Foster

thing for the economy, however,
is that the banks raised the funds

the

the highest level in history.

tion

in Basic Texts

british

much
credit
was met without a dangerous in¬
and local governments continued
crease
in the money supply.
It
in near-record "volume, and new
did, however, bring about an in¬
borrowing by the Federal Gov¬
crease in the turnover or rate of
ernment exceeded all peacetime
use of the existing money supply
records.
At the end of the year
and, by so doing, produced much
public and private debt was at

lion, equalling the previous record
of 1955. New borrowing by State

position

cohu electronics

Shanks

industries

expand

of

for this
-

■

by $60 billion in all

very

minerals

„

record

constantly but
some
of the

American

M.

—Arthur

their loans in
1959
by \ almost
$12
billion—
thereby - equalling the previous

finan¬

During

14

_

-

statistical information.
banks, it' is

did

true,

year.
Our

alaska oil &

Stock Market

15

MacRae_i

commercial

The

last

the

transistor
13

,

committees into the need for im¬

de¬

velop ments
over

industro

;

The Promises and Problems of the Golden Sixties

quarterly published data devel¬
oped in part as an outgrowth of
investigations set in motion by
one
of the Joint Economic sub¬

fi¬
and

nancial

v

working

Economics

on

monetary

—-Robert >M.

reflected in the Federal Reserve's

com¬

ments

9

i

The Chemical Industry in the Decade of the 60's

flow-of-funds accounts, a body of

lemen-

tary

YORK

savers.

the

1959

Dept.

kratter corp.

—Carrol

events of

Securities

WALL STREET, NEW

-

'

Balance of Payments and. Other Disquieting Problems

briefly
they are

to the

some

p p

s u

illustrate

me

i •, v -

L__

—

Telephone: WHitehall 4-6551

4

,

of this process by referring

to

is

port
make

Let

and

Obsolete
99

-Research, Results'and'Rewards

Cobleigh

course

bids always!

3

—

—

True Investment Security in This Year's

borrowers

L

—

top

;'

'•*

""

—Hon. Julian

icy and operations, has been held
to that of an intermediary be¬
tween

\

~

<?■
s'ri .-jV vv-'-Vv.
Manageable Federal Debt Is Attainable Today f :.

lists the prerequisites for sound economic

to me that perhaps the
most helpful contribution I, can
provide to the Joint Economic
Committee's annual review of the
President's
•
'f ■ '1
economic
r e£&,.-■ mmvww

of

Us
A Correct

growth; warns that some price and employment fluctuations areprobably unavoidable; and explains how cyclical unemployment
problems arising from shifts in production-patterns and socially
necessary programs should be met.
It seems

TOP?

.Cover

:i

_

THE

AT

Influential Forces Shaping This Decade's Investment Policy

renewal or renewal of price inflationary-pace in
1960 is gleaned by Mr. Martin in declaring that the monetary goal of
avoiding both inflation and deflation would be aided by at least a
$4.2 billion budgetary surplus. Last year's interest rate rise is at¬
tributed to $60 billion increase in public and private debt to an
historic high and to a 400% increase in investment securities pur¬
chased and not to Fed's success in avoiding a dangerous increase
in the money supply. Mr. Martin is pleased that the credit and in¬
vestment demand was met by faster velocity of the money supply,
bank sale of Government securities and increased savings induced

Possibility of no

ings

3

-•

25 Park Place

New York 7, N.
REctor 2-9570

Y.

4

The Commercial and Financial Chronicle

(660)

ade.

Manageable Federal Debt

incidentally,, is

and,

of the

Today

reasons

pressures

Revised

The

is

believes

conservatively estimated

a

S4.2

what

away

billion

fiscal

1961

budgetary surplus. He explains the significance of this to the financial

markets

result

and, also, assails the disadvantageous effect said to

from

viewed

the

4'/4%

interest

ceiling

rate

Treasury

on

;f

bonds-

3Yi%

ice

be done to

rectify

our

production

performance in ending price inflation.

note

a

I have no
adding another busi¬

optimism.

strong

intention of

forecast

ness

on

have

multitude

the

to

al¬

cast

ditions

that will
provide maxi¬
employment opportunities
for those willing, able, and seek¬
ing
to
work;
and
maintaining

in

of

survey

the

the

just ehded should provide

price

decade
us

with

important clues as to the shape of
the problems we may face in the
1960's.
in

of

submit

I

that

our

record

1950's with

the

our

respect to two
important goals — growth
employment—was quite sat¬
isfactory; in fact, much more so

back; but I do
the

general view

and

that '60 prom¬
ises
to
be
a

than

very
ous

year.

world

a

economic

to

of

Julian B. Baird

international

We

tensions.
somewhat

growth,
we
must
goal is expansion
at a sustainable pace. We do not
believe in just any kind of growth,
but growth in the production of
goods and services that people
realize that

We still live

in

is

generally appreciated. In
assessing the record with respect

prosper¬

hope

can

better

that

the

atmosphere of
marks a

the past several months

our

need, want, and
nor

tional

frequently interrupted by sharp
cyclical movements. Instead, we

afford to relax
ture

long

so

our

fail

promises

with

cold

to

can

enemies

support

in

be

ill

defensive pos¬

their

form

one

with

of

actions.

concrete

war,

another, may
long time.

we

the

as

freedom

The

but

us

for

or

a

But

it

is

at

length

not

my
on

intention to
international

political matters, except to em¬
phasize that the maintenance of
national security, as an adjunct
our

efforts to

achieve

a

genu¬

ine and

lasting peace, is our first
major task. Instead, I shall discuss
some

of

the

front

us

on

Actually,

problems
the

that

economic

economy

are

the free world unless

around the

ing

a

recessionary
periods.
This is the only kind of growth
that is acceptable in a society in
sions
free

the

basic

economic

deci¬

are
made
by millions of
individuals rather than by a

to all

gross

questions.

national

product—
eliminating the effect of price
changes—increased at an annual
rate of
about 3%%
during the

ing when it is realized that during
the 1950's

we

large portion

devoted

of

our

a

relatively

resources

to

national

leader

in

This

that

domes¬

sumer

necessity for maintain¬

high and sustained rate of

force,

also

of

Moreover,

reflecting

the

the
low

in

been

growing.

which-

in

better

to be
to the
economy
has

respect

our

We

and should
1960's, but we

can

the

not allow

must

clearly

nothing

with

at

do

indicates

have

we

perspective to

our

be blurred by the

high

rates

apparently very
growth in certain

of

foreign countries.-

<

-

labor

birth

recognize

significance

of

that, at best, her

much smaller

a

base than

in this

country and that she

can reap the
technological
progress in free enterprise coun¬

benefits

tries.

of

of

pleasure

is

in

1954

tal.

reflected

in

embrace

cally

on

Significant

also

this

is

the

kind

agricultural

centage output

output
provides
increases in per¬

from

the farms

factories.
The

good

labor is released

as

and

; :

moves

the

to

revealed

leased

(an

by

the

open-end

Fund),

Du

is

ac¬

the

less

of

the

1950's

in

—

1953 -54

in

and

1957-58—employment of the labor
force

at

was

level.

high

a

Moreover,

and

rising

free enter¬

our

prise

back

economy snapped
strongly from recession in

1954

and again in 1958, without the

tificial stimulant of
ernment

spending

ar¬

massiyp gov¬
or

emergency

tax cuts.
Our

Only

Poor

Performance

ward

in

economy

the

1950's

was

good, therefore, with respect to
growth, maintenance of employ¬
ment

performance in the vital task

the

of

about

basis

cents.

began, the purchasing
the
59

of

As

consumer's

dollar

cents, if figured

a

1939

1960

dollar of

begins,

the

on

100

strikingly

investors

the

rarified

acquired

at

immediately

(at

measurable

come, even if the
be somewhat
Not

only
the

tificates
firmed

the

is¬

little

by

1950,

rise

a

in¬

book,

of the.

financial

world

into predictions
fluctuations of "the
*

5!:

"MR.

THE

COMMON

VALUE"

EVALUATION

STOCKS*

of

stock

our

thusiastic

endorsement

of

Bernhard's

con¬

basic

cer¬

buys,

by
We expressed

ous nonsense

devoted to the guess¬

ing of short-term market fluctua¬
tions; and of the author's concept
of equity investments as owner¬
ship rights selected for specific

afford.
Thus, while the
price has sextupled to $17,000 per
can

instead

purposes,

of

pawns

increase of about 24% in the
consumer price level over
the dec¬
an

ade.

Nearly two-thirds

crease

.

with

throughout the United States and Canada

over

in

prices

the Korean

was

\

* Simon

PP">

&

Schuster,

New

York,

$3.95»

OF INVESTMENT SECURITIES

little

a

The lessons of the

1950's

seem

be very clear, and these
lessons point to the
primary chal¬

lenge of the 1960's.
Inflation is our

Stated simply:
primary economic

danger

as

new

we

turn the

decade.

If

corner

Exchanges

as-well
.

lost

Securities, Inc.

do

to

internationally,

us.

As

may be
President Eisen-

Continued

Broadway, New York 4,

Orders Executed

not

economy,

as

25

HAnover 2-0433

into

we

markedly strengthen our efforts
to protect the value of
the dollar,
much
that we
have worked so
hard for in our domestic

Dominick

Grace Canadian

Members: New York
Security Dealers Association

to me to

the

in Canadian Securities as Principal for
Brokers, ^Dealers and Financial Institutions

associated

episode;

1955.

UNDERWRITERS AND DISTRIBUTORS

Specialists

of this in¬

one-third has occurred since

on

page 28

in a

over

pur¬

almost to 47 cents.
This 12-cent
cut in the dollar's value
represents

en-\

Mr,
prin¬

ciple of substituting logical value
criteria, with stress on the current
price, for the prevalent extrane¬

eighth-

the past score of
years,
number of individual stock¬

investing

chasing power of the consumer
dollar is estimated to have fallen

1870

OF

Arnold

Bernhard.
fund

money

of

28.6%

"Value versus The Ticker
," this

five-digit dollar multiple of the
relatively few number of shares

the

of

column's topic on Jan. 21 last, was
devoted to a most important new

concern

Christiana's

high

events

sfc

place position in their holding.
Neither has the individual share¬
holder insulated himself from the

share

the

the

FROM

least

on

endowment

number

their

still

economic

break-up figure

evince

1959 the Dow-

market"!

academic).

managers

Stock

Average advanced

registering

$15,000-per-

discount

a

to

concerning

and

split-players is the related
in

York

-n";■vY-P

full year

was

And

atmosphere, Christiana Se¬
curities.
Through this "parental"
holding company Du Pont can be

he

New
-v

persists in trying to translate the
conjectured course of political and

showing

share

over

"

of the individual issues
reg¬
declines.
And
over
the

erage

hign-priced issues between

value-seeking

sue

>

212%, no less than
issues declined.

the divergence in the attitude to¬

The performance of the Ameri¬
can

more

THE EX¬

longer-term since the 1946 highs,
while the comprehensive S&P Av¬

15,000-Dollar Baby
Even

in

190%;

16%

widely held stock among 294
investment companies.

the

the

istered

most

the

report

Magazine, official pub¬

of

Related

compilation by Vickers
Associates, Inc. (of Huntington,
N. Y.) shows Du Pont the sixth

was

Except
of two short-lived

"the

whence to the end of 1959 the S&P
500-Stock Index has risen

interested,

other counts.

least

changed.

investment-

but presumably still valuemutual funds; is our

pure,

at

month Dec. 15-Jan.
15, last, 520
issues rose, 520
fell, 41 ending un¬

Oil N. J. and Eastman.
with

im¬

issues closed below their final
1958
quotations—195 of them by .from
10 to 50% or more.
In the fiscal

tually the third most widely held
issue—surpassed only by Standard
Also

some

be

gains, but, concurrently, 413 other

Boston

Balanced

Pont

can

16.4%
and
Standard
&VPoor's
Composite Stock Index, which in¬
cludes industrials, rails and utili¬
ties, rose 8.7%. Conforming there¬
to, 660 individual issues registered

of

::1 -'

record

on two

current

a

In the

current

great scope for

demolishing

Exchange.

high-priced equity.

prepared

playingaddiction

hope that

victims

Jones Industrial

holder of

in

the

by the simple facts logi¬

lication

non-splitting exhibit popular. The

in

the

CHANGE

to¬

not forget

that her backwardness

makes

Accordingly we cite the follow¬
ing up-dated evidence of continu¬
ing intra-market divergence, based

-

As

alcoholism, the intense

market" mirage.

family"—from 149,000

the current 218,000

to

*

the slim

of

pressed

30%

a

sup

extraordinarily difficult to cure
Nevertheless, we will continue to

demanding nylon and
Chevrolets, its three-digit price
has,by no means injured the stock¬
holder standards
quantitatively
or qualitatively.
Selling above the
century-mark and up to the $250,price tag,
the du Pont stocks

popularity

*

experienced

the- market

population

rise in "the

has

ALCOHOLIC

Pont

Du

perhaps
of primary importance—we must

was




holders

world

SPL1TOMANIA!

As with

stock may not swell the consumer

past

Furthermore—and

power

NEW YORK

the

Mutual

recognize that her post¬
growth rate is computed from

war

financial

and

not the

LOGIC AND THE

on

few

While

indeea, that

*

these questions,
midst the tipping via "Split Can¬
didate" nomination, accompanied
by agitation to split the Dow Jones
average, which is apparently sur¬
viving our current sloppy market
atmosphere, is gleanable from data
coming to hand on two more unsplit high-priced issues.
light

must also

the decade

14 WALL STREET

Some

Fund

protecting,the value of the dol¬
lar—of avoiding inflation—cannot
be
judged as
adequate.
When

Members New
York, American & Toronto Stock

entire

cumbed to

ownership; and if so, among which
category
of speculator-investor?

statistics may be questionable. We

our

&

serious proponents,
the base of share

more

spawn

States, Canada,
foreign countries.

Good news,

really broaden

funds

the

of

Dominick

is claimed

must

judging

modest

Correspondents inprincipal cities ■ -"

as

in
a
currently re¬
comprehensive
study
of
college and university endowment

In

.

rates of the 1930's, grew at only a

during the past dec¬

its

by

'split,

the reportedly high rate of growth
in Soviet Russia, for example, we

opportunities, and minimiz¬
ing recessionary tendencies. But

rate

Does the stock

doubled—now

50

over

several

expe¬

expenditures for goods and

services.

problems center

and

production

ing

—

evidence

rate

rienced substantial growth in con¬

our

security

in¬

output

IV/2 years.

to

continue
a

that,

recessions

answers

indi¬

during the 1950's,
if continued, will

industrial

the

Real

MAY

holders has

I

CROWD

MADDING

average annual rate

an

for the impact

long
term,
historical
average.
This progress is even more strik¬

inseparably

rate

a

double

generally

revision

industrial

government that professes to have

con¬

tic economy is strong.
economic

upsurges

long

front.

our

related; we cannot
serve
effectively as

Our

and

relatively

1950's—somewhat higher than our

objectives of attain¬
ing a lasting peace and of main¬
taining a healthy, growing do¬
mestic

we

seek economic progress
free from unsustainable

which

dwell

to

can

able to buy;
accept growth that is
are

genuine improvement in interna¬

relations,

grown

industrial

of

been

The

of about 5V3%

ashamed

brief

A

camel's

endorse

con¬

mum

fore¬

straw to break

the

fostering

stability

has

that

cates

level.

might be
marginal

the

growth;

reasonable

ready seen the
light of day—
one more

economic

index

overlooked.

creased at

The 1960's have dawned

which have

Reserve

eral

physical production, and reviews what still must

our poor

industries

rapidly in recent years. In this
respect, the significance of a re¬
cent major revision of the Fed¬

decade at Vk% in terms of real GNP and

highly significant the 5%% rate achieved in terms of

as

revised FRB index of

that

measure

so

spectrum. With reference to our economic growth rate, he computes

of

meaningful

more

FAR FROM THE

product,

partly because it ex¬
cludes the low productivity serv¬

given the proper tools, and can be spaced properly over the maturity

he hails

WILFRED

Higher

a

growth,

ceiling oppose. Mr. Baird pointedly avers the debt is manageable,

the annual average in past

BY A.

of

rate

national

gross

much
of

paradoxically producing that which the defenders of the

as

Show

Data

growth in
sig¬
nificant as it is, does not by any
means
tell
the
whole
story of
economic
progress
during
the
1950's.
From our point of view,
industrial production provides a
real

Treasury official sounds the focsin against pressures for tax reduc¬
he

up¬

rates

wage

on

Growth Rate

Washington, D.C.

and/or increase in expenditures that would whittle

Thursday; February 11, i960

one

for the strong

during the period.

By Hon. Julian B. Baird,* Under Secretary of the Treasury-

tion

.

.

This also impeded economic

growth
ward

Is Attainable

.

at

Y.

NY 1-4722

regular commission

rates

through and confirmed by

Members: Principal Slock
The

25

National

Aseociation

Exchangee of Canada
of

Security

Dealen

Broadway, New York 4, N. Y.

182

Number 5924

191

Volume

.

.

on

of rising and fall-

^ssing-V*™

%f0ltmmar%zed''' the
M
technique
the

on

as

tinnshiV

^otr

being

But

it

is

also

true

that

the

big

in

errors

the market come from
deviations
from
normal

radical

double-discounting of the same
As
favorable factor.
On this
point, Mr. Bernhard
mits,:
sends us the following comment:
the*
:;" y... ;

;

jfe

;

thoughtful re¬
book. I think it is one

even

torical to
■

his

a

currently valid price-

subject, let me say that the "logi¬
cal flaw" that you find
in the

is

one

that
~

is

The

Value

Line

a

as

buying

an

interest in

going business enterprise; with

the

investor's

hard-boiled

tion decision based

on

valua¬

what he will

score-keeping,

incor¬

as

in

a

determinants

the normal value of

a

stock.

game.

of

sorely

The

wealth

'lagged price" variable, although
in

truth

a

technical

factor

market

that

any

concept of pure value, makes
allowance for recent price behav¬
ior which
may signal changes in a
company's character that are not

represents

another

significant

more

velopments

imminent out¬

were

The rise in production
denced

by the

Federal

up-dated

new,
dex

of

which

and

was

evi¬

from

Effective

March

1

the firm name

Richter, Lederman & Co., 350
Madison Avenue, New York City,
members of the New York Stock
of

and

Exchange,

will

Richter & Co.

attack

be
.

changed

to

in¬

103

in

November

(1957=100) to 109 in
December, just one point shore
of the mid-year high.
The prin¬
cipal element in this advance was

pleasure in announcing

the installation of

Direct Wire to

Feb. 8.

on

Giving impetus to the upward
swing are: Inventory rebuilding,
high level auto production, rising
capital
equipment
outlays,
in¬
creasing backlogs, and high level
construction.
They outweigh the
minus

factors:

INCORPORATED

639 South Spring Street

production for January will

new

move

Federal Reserve Board

provides

much

a

refined

the
gas

utility, output has been added to
manufacturing and mining output
for wider industry coverage; pro¬
duction levels have been adjusted
on
the basis of recent data; and
for the first time groupings are
being made available by "mar¬
ket" classification. With these
market

critical

economic

de¬

such
as
inventory
movements, can probably be spot¬
somewhat

ted

heretofore
in

than

earlier

feasible,

and

on

consumer

products.
On
will

wa

analyzed

>

greater depth.

,

Automation

S.

U.

Simmons & Co.)

Underwriters and Distributors

Complete Trading Facilities

N. Y.

Telephone: WHitchall 4-7650

as

well

33

The

as

industrial

at

$42

cents.

copper

ton,

gross

a

?

strikes

about

are

front,

industry

to

this
12

year

cent

-will be

(per

about

hour)

Steelmakers

an

for

are

(Last" year,

the

more

earlier

first time in

a

half

trial

spend

;

the " steel

j

-

to keep

users

mini¬

workable

a

these

effects

says:

dropoff

in

rates

For

for

in

the

steel
second

quarter.
An early easing in demand and
increased
availability
of
many
steel

products.

The magazine

says

the policies

Continued

on

page

Banks, Brokers and Dealers

Free State Geduld ADR
Sold

Quoted

indus¬
an

esti¬

Alfred L. Taidei Rroeck & Co.

$2.1 billion with $495 mil¬
earmarked for instruments,

MEMBERS

million for electronic con¬
trols, $825 million for electric
controls, $300 million for pneu¬
matic controls, $250 million for

New York Stock
55

and $40 mil¬

Exchange

LIBERTY

computers.
buyers

•

Private Wire

looking for
automatic equipment will also see
much activity with ,$840 million
Industrial

b-

t

American Stock Exchange

STREET,

Tel.: BE 3-8880

Clearings

TRADING DEPT. PHONE: WHitchall 4-6627

Up

6.5%

YORK

NEW

5

Teletype NY 1-4-686

System to Canada

Vv«wvvx.

Qdrj^^^^f^pnent^Service

Above

1959 Week

this week will
compared with
a
year ago.
Preliminary figures
compiled
by
the
"Chronicle"
based
upon
telegraphic advices
from the chief cities of the coun¬
try,.. indicate that for the week
ended Saturday, Feb. 6, clearings
for all cities „of the United States
for which it is possible to obtain
weekly clearings
will be 6.5%
Clearings

above

an

increase

those of the corresponding
last year. Our preliminary
at
$27,029,898,259
$25,390,071,157 for the

stand-

totals

against
same

week in 1959.

tive

summary

for

Our compara¬
the
leading.

Dean Witter
&Co.
%

L nge Pacific
Members
-

Coast Stock Exchange

Midwest Stock Exchange * American Stock Exchange

Honolulu Stock Exchange • Chicago Board of Trade
and other

Private leased

radiotelegraph

leading commodity exchanges

'

circuit to Honolulu

SAN

FRANCISCO

<

tOS

ANGELES..

42 Offices

on

the ' national

market,

moderate

Iron

V''"

'

metalworking weekly
A

behind

"The

an

mated

hydraulic controls,

at

have

operating

Bought
controls

will account for

use

will

mum

by

A remote possibility is that of
building
steel
plants
abroad.
Other steps being considered in¬
clude: Urging the government to

operations.
Automatic

stocks

!

consumer

The trend of steel
their

cen¬

exports
than 2.3 million tons).

; :

V

;

in¬
lag from 3

of

predictions,

Age," reports.

unfavorable trade balance

the

buildup

ventories of steel may
million to 5 million tons

industry

tury—imports topped

Buildup

Anticipated

_

The

.

mapping strat¬
egy to regain export markets lost
during: the
strike,
"Steel"
re¬
ported.

v

package

to workers—split ap¬
proximately half between wages
and fringes.
>
'
<
.?
.

Lower Steel Inventory

10

a

concession

had

;

later in the year.

busy bargaining in 1960.
Labor experts believe the pattern
for

price changes are probable—
downward .trend
ispossible:

per
a

labor

the

1960, according to a recent fore¬
by "Automation," the maga¬
zine of automatic manufacturing

week




'

1960

in

will

Industry

Bank

NY 1-4581-2

stands

down

de¬

t

cast

show

Bell Teletype:

now

for removal of foreign trade
barriers, accelerating the research

$6.2 Billion to Be Spent for

,

NEW YORK 5,

first time since mid-December. It

press

'

56 BEAVER STREET,

steelmaking opera¬
94.5% of capacity,
a
drop of a point. Output was
about 2,693,000 ingot tons.
"Steel's"
price
composite
on
No. 1 heavy melting grade steel
scrap declined last week for the
at

be

new

groupings, important and

sometimes

Bank

to

expected

week,

were

processing, and $210 million for
packaging equipment. \

Los Angeles 14, California

(Successors

An

Last

tions

,

going
for handling
equipment,
$575 million for machine tools,
$1,010
million for special ma¬
chinery, $990 million for process
machinery., $500 million for data

emian

0.8

cline in housing starts, weakening over, ."Steel" reported. Now that
output of
durables, which
farm income, and tight money.
Kehnecott's operations are ' back
jumped 11%, reflecting gains in"
Two
factors
could
iron and steel, automobiles, fabri¬
put
the in production, observers ~ believe
cated
metal
products and elec¬ squeeze on profits in the second ^Anaconda and Phelps Dodge will
agreement.
The
trical machinery. The continuing, half, believe many metalworkers. pen. am early
And government may then move to
high level of operations in many Wage costs are increasing.
so
is resistance to
price boosts release some stockpile metal. Cop¬
important 'fields
suggests
that

lion for
a

+ 10.4

+

calling

are

their customers and offering addi¬
tional tonnage for March, ♦

7.5

metalworking profits
heading for a record, "Steel,"
the
metalworking weekly, pre¬

$138

We take

+

the

lion

*

1959

First half

dicted

Reserve's

production,

back

loosened. Platemakers

are

expanded

industrial

bounced

de¬

not realized.

anticipated $6.2 billion for auto¬
matic controls and equipment in

To Be Richter & Co.

apparent in the past earnings and
dividend record. This "correction

probably

needed
contrast to the
of charlatanic
beat-theliterature
engulfing
a

gullible public■

might properly be excluded from

factor"

notice¬

inflationary

products,
and
commercial
Even hot rolled sheets have
,

pipe,

Although new car sales haven't
775,250
737,202
+
5.2
been up to expectations thus far,
Complete details of trie banK
clearings throughout the nation^ automakers plan only modest ad¬
justments
in steel
consumption
appear on page 45 of our Monday,
this month. They aren't canceling
Feb. 8, edition.
tonnages or asking suppliers to
Steelmakers Map Strategy to
stretch out deliveries. Inventories
are in good
Regain Export Markets
shape.

numbers velopments,

"lagged price" factor—
In any event, we reiterate that
the preceding year's average price
Ithe over-all realistic approach of
—in
conjunction
with" earnings
Mr. Bernhard's volume supplies a
as

an

fresh

wire

1

,

demand, compared with
two months; and

of

index

a

and dividends

break

are

Boston

preceding

earlier fears of

elsewhere in his vol¬

of the cor¬

method

the

1960

mar¬

on steel prod¬
being made "Steel" said.
In the past week, there has been
a
continued
easing in delivery
promises for shapes, plates, bars,

week

•'

___

tempo of in¬

creasing

past

York__$14,673,603 $13,645,032
Chicago
1,321,648
1,197,344
Philadelphia
1,097,000
1,088,000

consumer
a

during

find¬

Faster deliveries

ucts

000 omitted—

,

Feb. 6—

ir>

eventually get out of it in the way
relation is itself a move in the of dollar-and-cents income and/or
direction of taking account of the capital. This excludes reliance on
,mathematical formulae automati¬
changes in the character of the
cally translating past performance,
company or the "double discount"
along with other varieties of mere
to which you allude.
porates

durable

goods.
Yet there was
able quieting of the

The

attitude

actual data become avail¬

up-dating

seeking government aid in
ing and development new

~

kets!

New

of --business

f should entail the acquisition tool for economic -analysis,
Electric and
of a share of stock -with the same article; notes.

update the normal re¬
between prices,' earn¬

This

-

Commodity Price Index

".

Week End;

beyond the: record - level set last
June;
;V\v; •!''C/
investment

record

practical

agrees

output

equipment and

to

hard

the

ume

dividends by including
the. latest year of experience as
as

increase

The latter, as Mr. Bern-

ings and

able;

development of new prod¬
ucts; lowering production costs
through increased efficiency, and

.

Business Failures

follows:

.

conduct.

try to take account of in our
method.
For example, we con¬
lationship

Food Price Index

money1 centers

York, as
industry -sought to
satisfy
the
pent-up demand for steel, and to

relevant

we

tinuously

submit that

we

the~ basic

present
toric mathematical

interest in the

Line approach

modestly ad¬

approach of assuming
valuation from the his¬

:

In view of your

soon

Bernhard

best reviews that has been yearnings ratio. But

written on it.

Value

Mr.

incorporation of
"correction
factor"
of
the
"lagged price" does not fully cure
the flaw in translating the his¬

Thanks for your

of

-

'

•

Retail Trade

■

TRADE and INDUSTRY

1

a

May:

V

.

1

Auto Production

rather
than*
miscalculation of the future
earnings and dividends.
There¬ Economic activity 5 con t i n u e d
fore our rating system
necessarily strongly upward in January, ac¬
"goes slow" in changing the mul¬ cording to the
February "Month¬
tipliers on earnings.
ly Review" of the Federal Re¬
I do not represent that we have serve
Bank
of .New '

comment that this found the final or even
the best
involves a logical flaw; that main- answer
to the question of what is
ling a past price-earnings ra- the proper multiplier to put upon
and disregarding the anticipa- the
earnings. But I do wish to call
i factor that had influenced its your attention* to the fact
that our
determination, must often in¬ method is not unaware of
the prob¬
volve a "double-discounting
of a lem and that it
does, in a method¬
male eventuality.
For example, ical way, make
adjustment for the
f the market
price of a stock changes that are
currently taking
through a high price-earnings raplace in the company's character.
tjo1 of 40 is anticipating discovery
Let me thank you for your
sym¬
ot a new oil field; and subse¬
pathetic endorsement of our ef¬
quently the price advances on the
fort.
fulfillment of the expected event;
Sincerely yours,
then continued application of the
ARNOLD BERNHARD
formerly anticipating high ratio
{0 the new and higher market New York City,
price, after the event constitutes Feb.
8, 1960.

view of my

The State of

" ~

capitalization,,rates

added the

Dear Mr.

Carloadings

5

and

Electric Output

from

Zified bv a similar capitaliza¬
ble of the earnings and dividends,
estimated for the future at a rate
hat has been normal
according
to past experience. :
we

Steel Production

,

price which would be

the

(661)

the problem of
gauging funda¬

ratings revealing the price ' may be slow in catching
applied to individual up with the* new development

the Vast 20 years; be.
Sen earnings on the one hand
i market mice on the other. It
Mas

and Financial Chronicle

mental changes in the
character of
a
company as they develop.
Now it is true that
the "lag

author's

Line

IZ
ba

The Commercial

.

NEW

YORK

Serving Investors

•

CHICAGO

29

6

(662)

The Commercial and Financial Chronicle

obligation bonds to

TAX-EXEMPT BOND MARKET
BY

DONALD

The state and municipal bond

D.

MACKEY

trend to

substantially higher empt market rise thus far this 3.778%; The issue

of

extent

the

of additions

news

.

Yields Still Generous

,

,The

Thursday, February 11, 1960

.

negotiated offering list. early in March. Altogether,
It
is
unofficially reported the new issue financing ap¬
that $19,425,000 Dade County, pears to be forming
up in no
Bank New York Trust Co., Florida Port Authority, 40- greater volume than a
year
Bankers Trust Co., and The year revenue term bonds may ago.
■v.'V/
Northern Trust Company.

has

its

no

.

to the

National
City
Bank
and
including,
among others, v the Chemical

market

continued

There is

group

a

headed by the First

.

tax-ex-

The net interest cost bid

levels in all categories of taxyear

•Larger Issues Scheduled For Sale

was

scaled

was

the following tabulations we list " the bond issues
was for the most part to yield from 2.90% for 1961
of
the unpredicted at the turn of the to
$1,000,000 or more for which specific sale dates have been set.
°4.00% -for 1986-1988^ in¬
week past.
The Commercial year. There are many experts stallments. The issue is. about %
Information, where available, includes name of borrower,
and ,Financial
Chronicle's who
amount of issue, maturity scale, and hour at which
foresay that money will half sold at this writing.
bids
high grade 20 year bond In- continue tight arid a comparaOn Monday, Feb. 8, Stock¬ will be opened. : :
•
%
;
Y
;
*
dex was reduced in
average tively high level of interest
ton, California, sold a $4,February 11 (Thursday) '
yield from 3.58% to 3.50% rates will persist
Concordia Parish Sch. Dist. No. 10
through 563,000 general
obligation is¬
which represents a
market

bonds

exempt

In

during

.

,

.

I960.

rise

of

than

more

one

since Feb. 3.

During this same
period the dollar-quoted municipal and state
in most

sues

dramatic
are

up

In

point present

this

connection, the

market

level

seems

The

recent

inconsistent.

not

rise leaves

cases

long

gains.- Quotations
from one to three

or

tions

up

Company,

Trust

Oakland,

San

Francisco-

Trust
Company ^
City-Harris. Trust .&
Savings Bank and associates.

'f

.

level

"

-

/

-

_

,

;

Santa

Cruz

would

.

1963-1990
1961-1985

10:00

a.m.

Noon

.

10,000,000

1961-1980

1:45 p.m.

8,000,000

1960-1980

1:45 p.m.

1,605,000

1961-1990

2:00 p.m.

---.

County, Aptos Sanita-

tion District, Calif.—

*:

—

February 16 (Tuesday)

was

constitute

1,155,000
3,000,000

February 15 (Monday)

Dallas, Texas
Dallas, Texas

this

3.54%. Yields ran from 2.90%
phases of a healthy to 3.60%. This
high grade of¬
The
new
issue
market, and well balanced bond marfering is reported .well re¬
which will be reported on in ket.
ceived with more than twosome detail herein, was varithirds
of
the
issue out
of
„
;
Bonds Goi
WeU
ously better. Many of these
account.
;
issues were bid as much as
This week s only important
Two interesting new issues
two points
higher than some- underwriting came to mar- have
been awarded as we
go
what comparable
secondary
Tuesday. The Public to press.
Shreveport, Louisi¬
market
offerings. Others rep- Housing
Administration ana sold
$4,700,000
(1961resented less drastic
gains. In awarded
|93,560,00(T of a 1980) serial general obligation
contrast, the large New Hous- total
of ^$102,830,000 local bonds to a
group headed by
ing Authority issues were of- ^°usmg administration_serial
fered at close to the current bonds
to; the Bank-Dealer Equitable Securities Corpora¬
tion-Smith, Barney & Commarket for similar
offerings 5f. j0U?s
C0I^j1xe^ pany-Shearson, Hammill &
and were
hungrily sought by
a 3.822% consolidated
investors generally.
interest cost. Eighteen sepa¬ Company-Braun, Bosworth &
rate issues were involved and Company and others. The in¬

points generally.

Calif.

Commerce

short term. Fluctua- The interest cost for
and down from the 1962-1981
serial
issue
market

current

American

ample tax-exempt Kansas

is- yield for those who
purchase
have made

revenue

Louisiana

■

the

to

sue

Albuquerque,
La

Mex

N.

-6,028,000

1961-1980

Plata

County School District
9R, Colo—U———j—
Lexington, Ky.

\

No.

Mayaguez, P. R.___—

1,420,000
2,000,000
2,030,000

Orlando Utilities

8,000,000

—

Commission, Fla.

Northfield-MacedoniaY Local

1962-1980

,

10:00

a.m.

.

5:00 p.m.

1962-1989

11:00

1960-1974

11:00 a.m.

1961-1969

11:00 a.m.

a.m.

Sch.

.

Market in
The
cta+cv

Sas

"Blue

Fine
List"

onrj

total

of

i

$204 180 302

as

$218,293,802. This

?

of Feb

r„*lk."J
technical

maturities ranged from 1961-

Shape :

2000- J1?* only
w°n %
one of the so-called splinter
«rouPs was S4'270'000 Marin

n'^, caifrn» 'r";
to the Bank of

w.s

consistent

awarded

Sroup.

improvement, when

considered

with

the

week's

,Th„e7, c°uP°"f

wer* 3%%.a"d

and

price

improvement, and the
ample yields still available at
current price levels, indicates

pend

srtte sssr.
through the early

new

year

.

,

Other

factors

underlying market
presently .more

though technical
is

even

price correc-

imminent.

There

is

a

prevailing opinion, particularly in Wall Street, that inilationary
forces
are
less
virulent than
they may have
been

for

the

past

year

or

The easing stock market
continues to favor
tax-exempt

more.

bonds

with the

result that investor
enthusiastic

sues

seemed well

response

and

seem

favorable to the market
tion

radlvldual

ss
was

in

cross-over

jn

its

the

is-

rising

need

for

mar-

balance.
the

The solid

recent

success

$11

of

billion

Treasury refinancing and the
consequent

easier short-term

money market has added to
the
general
bond
market

buoyancy.

The

week's

important

„I.

New

Jersey Highway Auth., Gtd...
New York (State).
Pennsylvania (State)
Vermont (State)
New Housing Auth.
(N. Y„ N. Y.)
Los Angeles, Calif

new

second

issue

most

also

to

sales

as

yet.

—

is

no

•

to

•

maturi¬

report

on

1961-1980

Noon

1961-1980

11:30

2,000,000

Authority, N. Y.

1962-2005

ancy

District,

San Antonio

Utah—

2,000,000

1962-1975

11:00

a.m.

1,250,000

—_

1961-1985

11:00

a.m.

11:00

a.m.

*

February 17 (Wednesday)
St.

Louis,

Mo.———-————

12,435,000

Burlington Community Sch. Dist.,
Iowa

1,620,000

Parish, La.—

1961-1979

2:00 p.m.

1,000,000

—

Jefferson

1961-1980

2:00 p.m.

Mad River

Township Local School
District, Ohio
Madison Heights and Troy, Lamphere Public S. D. No. 4, Mich.
Upper Neches River Munic. Water

Y

-

1,166,000

•

1961-1984

1:00 p.m.

2,925,000

■

1962-1989

7:30 p.m,

Y

-

Authority, Texas

1,800,000

Y/%%%YfY;\YY

1962-1995

Virginia Ashtabula-Edgewood Local School
District, Ohio
_*
2,850,000
$4,137,000 (19611980)' serial public; improve¬
February 23 (Tuesday)

Northern Trust

Philadelphia
Drexel

&

sociates.

led by
Company-

group

Company-The

National

Bank-

Company and'-

The

interest cost

as¬

3.57%.

was

offering scale
still

Angeles County, Calif
County, Calif

Manatee County,
District No. 1,

County wide Sch.

to

ran

Fla.————
Montclair, N. J—

The

3.65%

maturity. Orders
being taken.

and associates.

The

-

———.

North Little Rock, Ark
San Diego County, Calif

!
—_Y—

to

Company-Phelps, Fenn &
Company-Harris Trust & Sav¬
ings Bank-Goldman, Sachs &
Company-White Weld & Com¬
pany

■

is¬

;

8:00 p.m.

-

12,900,000
5,409,000

___

Los Angeles

Y

Alexandria

are

Y

1961-1980

—„

Los

2:30 p.m.

February 22 (Monday)

Alexandria,

a

V

1962-1980

February 18 (Thursday)

awarded

Stuart -&

3:00 p.m.

Independent School

District, Texas
Wilson, N. C

-

ment bonds to

a.m.

1962-1979

9:00 a.m.

1971-1977

9:00

a.m.

1961-1980

11:00

a.m.

•

4,000,000
2,100,000
1,100,000
5,000,000

1962-1984
1963-1992

1961-1980

7:30 p.m

7:00 p.m
10:30

a.m

February 24 (Wednesday)

Brandywine Sch. D. No. 48, Mich.
Gainesville, Fla.
Kansas City, Ohio
Shelby County, Tenn._
_

___

.1,200,000

———

1962-1987

5,000,000
6,644,000
8,000,000

—

—

1963-1987
1961-1980

8:00 p.m.
Noon
2:00 p.m.

1961-1985

11:00

1964-1999

11:00 a.m.

1961-1980

10:00

1961-1980

11:00 a.m.

1962-1985

8:00 p.m.

a.m.

Tarrant County Water Control and

improvement District No. 1, Tex.

6,000,000

'

February 25 (Thursday)

Alabama Education Auth. Ala.——

Cuyahoga County, Ohio———
School District, Mich.-——
McMinnville, Tenn.
Oak Creek, Wis..——
Fraser

San

20,000,000
10,460,000
1,100,000
1,270,000
2,500,000

a.m.

5:00 p.m.

1961-1978

2:00 p.m.

1961-1985

5:00 p.m.

1,000,000

1964-1980

9:00 a.m.

1,800,000
3,015,000
18,000,000
15,000,000

,

1964-1990

1964-1990

7:30 p.m.

February 29 (Monday)
Buenaventura, Calif

1,750,000

March 1 (Tuesday)

4

Antelope Valley Joint Union High
School District, Calif
Columbia Heights
Independent
School District No.

13, Minn.—

Englewood, N. J
Michigan (State of)_
Newark, N. J

,

Noon

-

Maturity

Bid

Important Additions
Calendar

Asked

3%%
3%%

1978-1980

3.90%

1980-1982

3.55%

3.75%
3.40%

3%

1978-1980

3.55%

3.40%

3%

1978-1979

3.55%

3.40%

3%%

1974-1975

3.25%

3.10%

The
to

the

calendar

1978-1979

3.30%

3.20%

bonds

1977-1980

3.50%

3.30%

for Feb. 25

3%%

1978-1980

3.85 %

3.70%

i98o

3.75%

3.55%

1980

3.55 %

3.40%

1979

3M%

37Q%

Index

=

3.503846%

week

is

of Alabama

(1961-1980)

for

No.

1, Louisiana-

San

scheduled

sale

March

1

(State of)_r

revenue

bonds set for Feb. 24.

1963-1981

7:00 p.m.

1963-1990

3:00 p.m.

1961-1975

10:00 a.m.

(Wednesday)
100,000,000

March 21

Independent Sch.

423, Minn

(Monday)

Dist.
+

March 22

$5,000,000 Gainesville, Fla. Minneapolis,
(1963-1987) water and electric

11:00 a.m.

1,200,000

Minn._„_

March 9

and

1961-1980

(Monday)

Riverside City School
Dist., Calif.
White Bear Lake
Independent Sch.

$15,- Hutchinson,
No.

include:

1,500,000

6,629,000
March 7

California

11:00 a.m.

(Thursday)

Antonio, Texas

'District No. 624,

1962-1985

2,000,000

March 3

offering. Issues of

volume

(Wednesday)

Lafourche Parish Consol. Sch. Dist.

~

000,000 Newark, New Jersey

bonds

March 2

Authority Revenue

3%%

3| g?

this

$20,000,000 State
Education

lesser

to the

—

only large issue added

31/2%

£'&,?cbtst:::::::::::: »* K



There

3y4%

^'Orleans, La
February 10, 1960

for 1979-1980

ties.

314%
3%%

Baltimore, Md
Cincinnati, Ohio

ran ;

market on
Tuesday, sue was scaled to
yield 3.90%
although with lesser auspices, for
1989
1992
maturities.
The
Washington Suburban About 30% of the issue
was
Sanitary District of Maryland sold
upon initial reoffering.
"
awarded $10,000,000
general
came

Rate

(State)
Connecticut (State)

yields

1,200,000

30,000,000

—

&

MARKET ON REPRESENTATIVE
SERIAL ISSUES

California

3.65%

of

Although $7,000,000 San
technical correction, the
Diego County, California,
handling of this issue by Water Authority (1961-1993)
^th underwriters and issuers
general obligation bonds were
comprised
wise
negotiation awarded Tuesday night, the
anc[ proper
timing. This can offering was not made until
done with
appropriate co- yesterday morning
by the
operation and with broad un- winning
group
which
was
derstanding
of
continuing composed of Halsey, Stuart

purchases, market
problems.
b^ a tendency
orthodox
portfolio
.' Other Issues of Note

more

scale

3.62% and

some

stimulated also
to

>

was

for the 1979

placed,

view 0f the

ket,. and

the

Halsey,

1

0"

terest cost bid

District, Ohio
Port of New York

Salt Lake County, Water Conserv¬

Minn.

2,395,000

(Tuesday)
6,322,000

May 5 (Thursday)

Central Contra Costa San.
California

District,
2,900,000

11:00 a.m.

volume

Number 5924 i

191

The Commercial and Financial Chronicle

...

(663)

New Issues

7

February 10, 1960.

$98,560,000

New
:

Housing Authority Bonds

"'V>'

'A//-' riN.':' V:':A>'.A
-A
v..%'■
..
of each issue will be secured b\ .i first pledge of annual contributions unconditionally payable pursuant to an .Annual Contributions Contract between the Public Housing-Administration and the Local Public
Agency issuing sai
on
in. e opinions o
on counsel. Said annual contributions will be payable directly to the fiscal agent of said Local Public Agency in an amount which, together with other funds of the Local Public
gency which are actually available for such
purpose, will be sufficient to pay the principal of and interest on the Bonds when due.
■

•'

lhe Bonds

annual

^0lJsinS Act of 1937,

as amended, solemnly pledges the faith of the United States to the payment of the
by; the Public Housing Administration pursuant to the aforesaid Annual Contributions Contracts.

contributions

Quotation from

.vv-'V^v ' " l'":
;j
t

1

?.). AI
!"E
SI

an

opinion, dated May 15, 1953, of the Attorney General of the United States, to
■

.

C

The President of the United States :i

•

*

"

,

,

..x .■

.

..

"

AM OF THE V,EW THAT: • » »

A

CONTRACT TO

PAY-ANNUAL CONTRIBUTIONS

''

.

ENTERED INTO

HA' ,N CONFORMANCE WITH THE PROVISIONS OF THE ACT» IS VAI.I1) AND BINDING UPON THE UNITED

ES. AND THAT THE FAITH OF THE UNITED STATES HAS BEEN SOLEMNLY PLEDGED TO THE PAYMENT OF

SUCH CONTRIBUTIONS IN THE SAME TERMS ITS FAITH HAS BEEN

PLEDGED TO THE PAYMENT OF ITS INTEREST-

BEARING OBLIGATIONS."

1 Public Houalnii

Interest Exempt,

2.United

Administration.

Stater Homing Act of 1937, at amended.

in the opinion of counsel to the Underwriters, from Federal Income Taxes by the provisions of the
United States

Housing Act of 1937,

as

amended.

Legal Investments, in the opinion of counsel to the Underwriters, for Savings Banks and Trust Funds in New York and certain other States,
except that the Bonds of the Puerto Rico Agency are not legal investments for trust funds in the State of New York, and that the
Bonds of the Virgin Islands Agency are not legal investments for either savings banks or trust funds in the State of New York.,

Bonds Issued

by Local Public Agencies which

are

Scale C

Scale A-

1,075,000 Carbondale, Pa.
Scale B

Scale D

.

$ 1,050,000 Sarasota, Florida
20,150,000 New York City, N. Y.
1,570,000 Port Chester, New York

3)4% due 1961-2000

$15,650,000 Washington, D. C.

located in:

5,845,000. San Antonio, Texas

3)4% due 1961- 2000
3)4% due 1961- 1998
3)4% due 1961- 2000
3)4% due 1961- 2000
3)4% due 1961- 2000
3)4% due1961 2000
3)4% due I960- 1997
3)4% due 1961- 2000

8,205,000 Paterson, New Jersey

12,665,000 Puerto Rico
2,010,000 Morristown, Tennessee
1,960,000 Virgin Islands
1,040,000 Renton, Washington

3)4% due 1960-1999
3)4% due 1961-2000
3)4% due 1961-2000

$ 1,300,000 Holyoke, Massachusetts
7,530,000 Columbus, Ohio
10,765,000 Philadelphia, Pa.

-

$ 2,415,000 Decatur, Alabama v
3,980,000 Montgomery, Alabama
1,350,000 Kinloch, Missouri

3)4% due 1961-2000
3)4%' due 1961-2000
3)4% due 1961-2000
3)4% due 1961-2000
3)4% due 1960-1999

-

Maturities, Yields and Prices
Scales

Year

v

__

Year

C

D

2.60%

2.60%

2.60%

A

B

C

D

Due

A

B

C

D

3.05%

3.05%

1980

3.50%

3.50%

3.55%

3.55%

1990

3.70%

3.75%

3.80%

3.85%

3.10

3.10

3.10

1981

3.50

3.55

3.60

3.60

3.15

3.15

3.15

1982

3.55

3.60

3.65

3.65

3.05%

1961

2.65%

2.65

2.65

2.65

1971

3.10

1962

2.75

2.75

2.75

2.75

1972

3.15

A

1963

2.80

2.80

2.80

2.80

1973

3.20-

3.20

3.20

3.20

1983

3.55

1964

2.85

2.85

2.85

2.85

1974

3.25

3.25

3.25

3.25

1984

3.60

3.65

3.65

2.95
3.00

3.00

3.00

3.00

1969

3.05

3.05

3.05

3.65

3.70

3.75

,

3.65

3.70

3.75

1988

3.70

3.75

3.80

1989

3.70

3.75

3.80

3.45

3.45

3.45

3.45

3.45

3.50

3.50

:'

%

3.85

3.80

3.85

100

100

3.85

100

IOOI/2
IOOI/2
991/z
lOOi/z
991/2
IOOI/2
991/2,
lOOi/z
991/z
991/2 \ IOOI/2
IOOI/2
991/2

99i/2

1995

3.80

3.45

3.80

3.80

1994

3.80

1987

3.40

1979

3.00

1968

1986

3.40

3.35

1978

2.95

3.00

3.35

3.35
3.40

3.05

2.95

3.00

3.70

3.40

3.00

2.95

1967

3.65

3.35

1977

2.90

1966

3.60

3.30

1976>

2.90

3.75

1985

3.30

3.30

2.90

100
100

1993

3.75

3.30

1975

2.90

100

1991

1992

3.70

3.70

3.60

1965

Scales

Year

Due

B

3.05%

1970

Scales

Year
D

C

A

B
•:

Scales

Due

A

Due

1960

•

1996
1997

1998.

3.85

1999

3.85

2000

■

100

991/2

100

991/2
991/2
991/2
991/2
991/2
991/2

100

100

,

100
100-

100

(Accrued Interest to be added)

The Bonds of each issue will be

The Bonds

are

callable fifteen

Phelps, Fenn & Co.

from their date at

a

call price of 104 and accrued interest, and

and if issued and received by us, and subject to approval of legality,with respect to each issue, by bond counsel to the underwriters. The
of the Offering Prospectus, copies of which may be obtainedfrom such of the undersigned and other underwriters as are registered dealers in this State.

Goldman, Sachs & Co.

The First Boston Corporation

Lehman Brothers

"

The First National

Drexel & Co.

,

Lee

Allyn and Company

j

Incorporated

Incorporated

.

Higginson Corporation

Paine, Webber, Jackson 4 Curtis

F. S. Moseley 4 Co.

Wood, Slrulhers 4 Co.

American Securities Corporation

First ol Michigan
Corporation

~;

■

■

Bacon, Stevenson 4 Co.

Hirsch 4 Co.

Filzpalrick, Sullivan 4 Co.
Geo. B. Gibbons &

Folger, Nolan, Fleming-W. B. Hibbs 4 Co., Inc.
Rand 4 Co.

.

Wm. E. Pollock 4 Co., Inc.

Company

•

A.G Jccker 4Co. i

....

E. F. Hutton &

Hallgarten & Co.

Company

Hornblower & Weeks

Hemphill, Noyes 4 Co.

Dean Witter & Co.

Schoellkopf, Hnllon 4 Pomeroy, Inc.

R. S. Dickson &

Clark, Dodge 4 Co.

Braun,Bosworth4Co.

F. W. Craigie 4 Co.

Bear, Stearns & Co.

White, Weld & Co.

'

Ira Haupt 4 Co.

L. F. Rothschild 4 Co.

J. C. Bradford 4 Co.

Kean, Taylor 4 Co.

a-/;:///■:

|

.Reynolds 4 Co.

,

W. E. Hutton & Co.

-

Stroud 4 Company
Incorporated

Shearson, Hammiil 4 Co.

Company

Incorporated

Eldredge & Co.

Francis I. duPont 4 Co.

Incorporated

The Ohio

McDonald & Company

Incorporated

Roosevelt & Cross

Pressprich & Co.

Incorporated

Stone & Webster Securities Corporation

Gregory 4 Sons

R. W.

Harriman Ripley & Co.

Smith, Barney & Co.

"

City Bank of New York

Eslabrook 4 Co.

Coffin 4 Burr

Alex. Brown & Sons

Baxter 4 Company

Shields & Company

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

Equitable Securities Corporation

Easlman Dillon ' Union Securities & Co.
...

A. C.

thereafter, at the times and call prices, as stated in the Offering Prospectus,

being offered, subject to'award, when, as

offering is not made hereby, but only by means

BIyth & Co., Inc.

years

Chas. E.

Tucker, Anthony 4 R. L. Day

Company

Weigold & C<l

Incorporated

Incorporated

York
Chemical Bank New York Trust Company Morgan Guar^yTrust Company

Bankers Trust Company The Chase Manhattan Bank
The Northern Trust
Company

Mercantile Trust Company
Bar Brothers 4 Co.

of New

The Philadelphia National
4

Dick 4 Merle-Smith

A

M° Kidded Co, Inc.

Third National Bank in Nashville




Bank

B. J. Van Ingen 4 Co. Inc.

City National Bank 4 Trust Co.

First National Bank

Carl M. Loeb, Rhoades

& Co.

Tilney and Company

Ladenburg, Thalmann & Co.

W. H. Morton & Co.

Salomon Bros. 4 HulxCoi
le
Weeden &
Incorporated

Dominick 4 Dominick Hayden, Slone 4 Co. The M£ne Trust.Company Bache4Co. Bacon, Whipple 4 Co

Laidiaw 4 Co.
Trust Company of Georgia
Baker, Watts 4 Co.
National BankofCommerce
NationsBank of _Westchesler
Tulier 4 Zucker
G. H. Walker 4 Co.

Industrial National Bank

Mmantile-Safe Deposit and Trust Company

of Oregon

Incorporated

Seattle-First National Bank MairKo.

Fidelity Union Trust Company

HarrisTrust and SavingsBank The First National Bank C.J.Devine4Co. Kidder, Peabody4 Co.

The First National Bank

Federation Bank and Trust Company
The^esJA^"11
J. C. Wheat & Co.

8

(664)

The Commercial and Financial Chronicle

Textiles—Review—Bache

DEALER-BROKER

Co.

N.

of

Canada

and

bulletin

a

Canadian

tions

UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

Put &
Herbert Filer

—

Avenue,
N.

Y.—$3.00

(ten

Stocks — 111th quarterly
comparison of leading banks and

pon

trust

Industry.

stock

Japanese

York

States

New

—

York

United

Hanseatic

Corporation, 120 Broadway, New
York
a

N.

5,

bulletin

Y.

Also

available

is

Treasury Refunding.

on

Bank

Stocks—Report—Shearson,
Hammill & Co., 14 Wall Street,
New

York

Bank

mation

the

Yamaichi

with

com¬

Infor¬

circular

Securities

dated

American

Consolidated

Metal

Edison

Co.

of New York and Interstate Motor

Freight System.

v

•

City

is

an

View—Monthly Invest¬

72

Alabama

Wall

Co.,

Foreign Letter.

40 Wall

Commercial Solvents.

;

/

Review with

—

particular reference to Reynolds
Tobacco, Philip Morris, and LorilKidder

data

&

Co.,

St.,, New York

available
on

60

5,

Inc.,

N.

Y.

comparative

are

leading U. S. Banks

Trust Companies and

a

report

&
on

Giannini Controls.

Values—Comparison

of certain

S. Canadian securi¬

U.

Outlook

Co.,

St.

&

for

New

Louis

York

5, N. Y.

showing
stocks

used

counter

the

the

compari¬

listed

in

and

the
the

industrial

Survey
with
8

of

Per

industrial

Dow-Jones

35

over-the-

stocks

used

in

—

period

—

Inc.,

National Quotation

46

Front

Street,

Japanese

Aluminum

Industry

with particular reference to
Metal

Co.,

Nip¬

Showa

5, D. C.
Situations

—

Reports

on

small

companies — current issue
$1; $15 for three months' subscrip¬

Denko K. K., Sumitoma Chemical
Co., Ltd., and Nikkei Aluminium

tion,
twice

a

Co.,

P.

Box

Securities

Co.,
Ltd., 149 Broadway, New York 6,
N. Y. and 8, 2-Chome
Otemachi,

Chiyoda-Ku, Tokyo, Japan. Also
tabulation

a

of

quo¬

tations of leading Japanese Stocks
on the
Tokyo Securities Exchange.

Japanese Stock
Market—Study of

changes in postwar years—In
rent

cur¬

issue of "Nomura's Investors

Beacon"—Nomura Securities Co.,
Ltd., 61 Broadway, New York 6,

N.
of

Y.

Also available

the

outlook

for

is

a

review

Plant

Equipment Expenditures
for

New

available

in

and

Japan

$50

O.

per

published

—

month—Profit Situations,
14, Hillsdale, N. J.

Public

Utility Common Stocks—
Comparative figures—G. A.'Saxton

&

Co., Inc., 52 Wall St.,' New

York 5, N. Y.

Science

&

Securities
Quarterly
magazine, current issue contain¬
ing articles on Cryogenics (pro¬
duction
low

5,

N.

utilization

of

temperatures);

ultra-

Thermo

-York 5,

N. Y.

Stocks That

Resist

the

Decline-

Review—Penington,

Colket & Co.,
70 Pine
St., New York 5, N. Y.

—Eastman
ties &
York

Memorandum

—

Co., 15 Broad Street, New

Bigelow Sanford Carpet Co.—Re-

circular

same

are

Co.,

analyses

U.

Sanford

randum

S.

Shoe,

of

Black

&

Decker

Memorandum
115

Manufacturing—
&

Co.,

Broadway, New York 6, N. Y.
memoranda

are

on

Ford, Hoffman Electronics, Aerojot-General, Western Airlines and
Lockheed.

*

^
I.

du

Pont

&

Co.,; 1

St., New York 5, N. Y.

Columbian

Carbon

Company —
Report — Ira Haupt & Co., Ill
Broadway, New York 6, N. Y. ; -

cussion—L.
120

—

Rothschild

&

F.

A. Fuller Co.—Write-up
February issue of "American

Investor"

American

—

Stock

Ex¬

86 Trinity; Place, New
N. Y.—150 per copy, $1.00
year. Also in the February

change,

Dis¬

Co.,

Broadway, New York 5, N. Y.
same

circular is

a

sur¬

of Kimberly Clark Corp.

vey

Motorola—Memorandum—Murch
& Co., Hanna
Building, Cleveland

15, Ohio.
Lead
Survey — Sutro
Co., 120 Broadway, New
York 5, N. Y. Also in the same
National

—

&

Bros.

are

George

Bradstreet,

Corporation

Corp.

per

issue

data

are

Dilbert's

on

of

surveys

and

Trans-

Crompton

&

Knowles Corp.
North American

Coal—Memoran¬
Co., Inc., Daven¬
Building, Davenport,

dum—Quail
port

&

Bank

Iowa.

Super

Coast

Line

Atlantic

Calif.

San

Also

Francisco

available

is

5,

N.

Richardson

Insurance

Company—

Analysis—John C. Legg & Co., 22
Light St., Baltimore 3, Md.
H.

J.

Heinz—Memorandum—Van

50

Bessemer

&

Co.,

—

Inc.,

Analysis

20

Broad

—

St.,

5, N. Y.

Alkali

—

5, N. Y. Also available

memoranda

Plate

Pittsburgh

on

Glass and Revlon.

Houston Natural

Gas Corporation

—Analysis—New York

Corp.,

120

5, N. Y.

—

&

Co., 25 Broad St., New
N. Y. Also in the same

4,

are

&

on

reviews

Light,

Glass.

Hanseatic

Broadway, New York

of

and

Also

Kansas

Pittsburgh

available

Atlantic

Coast

is

a

Line

Railroad.

and

a

&

report

Companies.
v.':" '<''• „'

u" v

■

Philadelphia

&

.

./:■ ■

i. "'V1' ,r'■.'L,'

-.1

Reading

— Vilas
&
Hickey, 26
Broadway, New York 4, N. Y."

Manufacturing
Co.
Memorandum—Shields & Co., 44
Wall St., New York 5, N. Y.

—

J. Reynolds Tobacco

R.

Company

—Analysis—Montgomery, Scott &
Co., 120 Broadway, New York 5,
N. Y.
W.

Sams

&

Co.—Mem¬

orandum—A. G. Edwards & Sons,
409 North

Eighth St., St. Louis 1,

Mo.

Seaboard Life Insurance Company
America
Analysis —

Cantor,

—

delet

bonds

Bulletin

—

Ziegler and

Gilsonite Co.

C.

B.

—

Co.,

Security
ing, West Bend, Wis.

Build¬

Memo¬

—

randum—Carothers & Co., Mercan¬

Illinois State Toll Highway Com¬
mission
Bulletin
The
Illinois

tile Bank

Building Dallas 1, Texas.

Co,. Inc., 231 South La Salle St.,
Chicago 4, 111. Also available is a

Swift

Co.— Analysis

Whipple

—

North

—

Insurance Company of
America.
on

,

.

Indiana

Gear

Works

.

>

Inc.—Mem¬

orandum—Doyle, O'Conner & Co.,
135 South La Salle St., Chicago
3,
International Telephone
9

Maiden

D.

—

Norton

Lane,

New

Memo¬
&

Co.,

York

38,

V;

Weeks, 40 Wall St., New

N.

Y.

S.

Kennedy & Co.—Analysis—
Schirmer, Atherton & Co., 50 Con¬
gress St., Boston 3, Mass.
McDonnell Aircraft Corp.—Bulle¬

tin—Edward D. Jones

&

Co., 300

Fourth St., St. Louis
2, Mo.
McNeil
Machine
&
Engineering

Company
waukee

—

Report

The

—

Co.,

Mil¬

207 East
St., Milwaukee 2, Wis.

Michigan

Mississippi

Corp.

River

Fuel

N. Y.

—

Ander¬

York

Bacon,

Co./ 135 South
Chicago 3, 111.

St.,

La

Texas Eastern Transmission Corp.

—Analysis—Blyth & Co., Inc., 14
Wall St., New York
Tex

Star

Oil

&

5, N. Y.

Gas—Memoran¬

dum—Equitable Securities Corpo¬
ration, 322 Union Street, Nash¬
ville 3, Tenn.
ViVornado,

Inc.—Analysis—Joseph
Sons,

New York

is

analysis

an

120

Broadway,

5, N. Y. Also available
of

the

Steel

In¬

dustry.
Yates American Machine—Memo¬

randum—A.

C.

Allyn

and

pany^
Incorporated,
122
La Salle Street, Chicago 3,
Zenith

Electric

Co.,

335

Bay

Com¬

South
111.

Supply Limited—

Analysis—Doherty
St.,

Roadhouse &
Toronto,. Ont.,

Canada.
Zotox

Analysis

Analysis—Green, Ellis &
son, 61
Broadway, New

—

&

Walker

Manville—Review—Horn5,

&

Salle

Pharmacal

Co.,

Inc.

—

Searight, Ahalt &
O'Connor, Inc., 115 Broadway,
New York 6, N. Y.
—

6,

Primary Markets In

International Recreation
Corp. Cutter Laboratories A & B

Roto American

Copeland Refrigeration Corp.

TOP

FLIGHT TRADER

.

.

.

Cohu Electronics

.

.

With

TROSTER, SINGER

& CO.

Trinity Place, New

HAnover 2-2400




•
,

it

experience

seeking

a

in

all

himtelf"

basis

with

types

connection

large, reputable firm preferably

Members New York
Security Dealers Association
74

heavy

Securities

on

opportunity.

a

with

of

Box

Daryl Industries
Universal Container

a

"prove

American Int'l Bowling

210.

York 6, N. Y.

Teletype NY 1-376; 377; 378

PLYMOUTH SECURITIES
The

Commercial &

Financial

Chronicle

•

92

25

Park

•.*

Corp.—

Analysis

Standard

;

,

North

Analysis

rV

,,

Warner

Loew's

Fitzgerald & Co., Inc., 232 North
Canon Drive, Beverly Hills, Calif.
Sisters of St. Joseph of Caron-

blower &

Co.,

and

Cigarette

on

'•viV"'"'

International

of

York

&

Swasey

of

Machines,

Alstyne, Noel & Co., 52 Wall St.,

Wall

Controls Co. of America—Memo¬

review

a

Howard

dum—R.

report

&

Y.
Life

Carl

Raytheon

Sons, Inc., 14 Wall St., New York

Johns

Plate

./••

Lakes Paper Company Ltd.

randum—William

Power

review

Company—Analy¬

N. Y,

Blair

a

6,

Chemical
:

B. F. Goodrich

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

W/Pressprich & Co.; 48
St., New York 5, N. Y."

is

Business.

St.,

—

Loeb, Rhoades & Co., 42 Wall
St., New York 5, N. Y. Also avail¬

able

gomery

Analysis

—

M.

ing Co.

Gladding, McBean & Co.—Report
—Dean Witter & Co., 45 Mont¬

Co.

Pepsi-Cola

Railroad, and Higbie Manufactur¬

Consolidated Gas Utilities Corp.—

circular

Texas Eastern Transmission

Wheel

Motor

circular

—In

Co., Youngstown

Inc., and Tex-Star Oil & Gas Corp.

america

bulletin

Colgate Palmolive—Memorandum
—Francis

York

American-Marietta Company

Motor

Steel Door Co., Dun &

Corp. —Memoran¬

are

Carpet—Memo¬

Carreau

—

Also available

Hirsch

Accounting Card Corp.

White

of

New York

and

Pershing &
Co., 120
Broadway, New York 5, N. Y.
'

Diamond

Electronic

Steel

—

New York

Corporation

'

Co.—Review

Investment Let¬

ter"—Amott, Baker &,Co., Inc.,
150 Broadway, New York 38, N. Y.
Also in the same issue are reviews

dum—Kidder, Peabody & Co., 17
Wall St., New York 5, N. Y.
; ,

Gulf

view-^Cooley & Co., 100 Pearl
St., Hartford 4, Conn. Also in the

Cooper

The Kratter

1

—Review—James

5, N. Y.

Broadway, New York 4, N. Y.

Currently Trading Actively—

—

Investing

Corp., 55 Broadway, New York 6,
N. Y.

Great

Dillon, Union Securi¬

randum— Gruntal

For financial institutions

Delaware

Memorandum—General

Consumers Power Co.—Memoran¬

Electricity, electronics, drug and
nucleonics industry—Harris
Upham & Co., 120
Broadway, New

—

sis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.

Y.

memorandum

a

—

and

of

Corp.

Federated

Corp.

120

Joy Manufacturing Co.

Wall

1959

and
brief analyses of
Mitsubishi Heavy
Industries, Nip¬

year

Memorandum

—

—

Co.,

York

is

Bigelow Sanford
,

&

Bigelow

Profit

is

St.,

Corporation

Reynolds

—

Discussion—Kalb, Voorhis & Co.,
Building, Washington

Woodward

available

Co.,
San

Telecomputing Corp.

non-cyclic companies—
Co., 61 Broadway,
New York 6, N. Y.

Ltd.,—Daiwa

Aviation

Pension & Profit Sharing Plans—

issues,
cyclic and

Picher

in current "ABC

Also in the

& Arthur G. McKee & Co.

of National Distillers &

Holophane

largely

Light

Montgomery

New York 4, N. Y.

E. F. Hutton &

pon

Illustrated

—

National

Bureau,

Corporation

portfolio; Marquardt

Markets,

California

8

of

Wall

Manufacturing Co.

yield

liberal

discussions

Cent?

Also

Folder

on

up-to-date

an

between

son

—

year

\

Five

300

Broadway,

-

Over-the-Counter Index

Re¬

—

52

Francisco 20, Calif.

New

Canada.

-

Inc.,

Bendix

St.,

Co.,

America

Analysis

Wall

ties—Wills, Bickle & Co., Ltd., 44
King St., West, Toronto,
Ont.,
Magic Is

of

issues in various categories—Halle

Stieglitz,. 52

&

Brochure—First

selected

Quotation
Bureau
Averages, both as to yield and
market performance over a 20-

How

Bank

York,

Railroad,

1960—With

Corporation

St., New York 5, N. Y.

&

Averages

Comparative

are

Rubber

Ohio

—Survey—Hill, Darlington & Co.,

5, N. Y.
analyses of

Chicago

available

S.

Gas

Allis Chalmers

St., New York

U.

Co.

St., New York 5, N. Y.

analysis of ACF Industries.
&

Southern

&

port—Georgeson

Y. Also available

Hentz

in

stock

records,

dividend

stocks, listed com¬
Ford Foundation's

Chemical

Monsanto

York 6,

of earnings — Laird,
Meeds, 120 Broadway,

New York 5, N.

Shoe

Electric.

Banks—Annual

comparison
&

unbroken

50 most active

with

stocks

common

Co.

Brown

on

Columbus

and

:

15 Broad Street, New York
5, N. Y. Also available in current

Wall

Gas

memoranda

York

long

Florida

Co., 15 Broad St., New York 5,

Oils—Review—H.

pany,

1

Natural

Consoli¬

of

&

Also"

Also

review

a

Smith, Inc., 70 Pine St., New
York 5, N. Y. Also available are

ment Letter—Burnham and Com¬

M.

is

&

Bissell

lard—A.

Co., 65 Broadway, New
6, N. Y. Also in the same

Liquefied Petroleum Gas Industry

memoranda

Cigarette Industry

&

York.

N. Y.

25

St., New York 5, N. Y.
ACF Industries—Review—Fahen-

Steel

Stocks—Current

—

of

Bruns, Nordeman & Co., 52 Wall

Air Reduction Co.—Memorandum
—Merrill Lynch, Pierce, Fenner

New

Burnham

of

survey

Company of New York, Inc., Ill
Broadway, New* York 7, New

parative data on 17 stocks—Goodbody & Co., 2 Broadway,' New
York 4, N. Y. Also available are
Climax,

a

per copy; $1.50 per
Also in the same issue are

200

—

ex¬

*

Flour Mills Co., Iwaki Cement
and

year.

Eagle
*

—Memorandum—Hemphill, Noyes

5, N. Y.

Stocks—Review

on

free

day

*

Co.

—^

Wall

Y.

cur¬

Exchange"

"The

of

Thursday, February 11, 1960

.

Exchange Magazine,
Street,
New
York
5,

Magazine
11

mon

419 Park
York
16,

Dept. A-7,
South, New

amination).

the

Call Op¬
—
Crown

Publishers,

TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

issue

lists

Understanding

of

Securi¬

ties.

AND RECOMMENDATIONS

companies

on

in

Club—Discussion

Diners
rent

Representative

Bank

Co.,

Street, New York 5, N. Y.
Also available are an analysis of
Consolidated Mining & Smelting

INVESTMENT LITERATURE

IT IS

&

36 Wall

.

.

Place, New York 7, N. Y.

CORPORATION
LIBERTY

Dlflby 9-2910

STREET
•

•

•

N.Y. 6. N.Y.

Teletype N.Y. 1-4530

Number 5924 ...The Commercial

191

volume

and Financial

TY

"I

"I

Nuclear.*™* ¥etals

and Controls

There is also

qpv

/

(665)

thermo

Instruments, Inc.

Texas

Chronicle

a small Engineer-

Breadth

By Dr. Ira U. Cobleigh, Enterprise Economist

and

Excellence

of

turns out

a

the

divisions
mated

in recent months have

whole bunch of other

ful

foregoing
sparked

are

by

and

of the most

one

research

operating
ani¬

success¬

organizations in the

electronic business.

In size of

winnowing the wheat from semiconductor components and nual
outlays relative to sales, brildevices such as diodes,
the chaff in the electronics, busi-;
capacitors,
of
rectifiers and resistors; and is con¬ lance
staff,
and
consistent
ness. Whereas, a year ago, almost
stantly testing new materials for delivery of practical and profitany stock with an electronic sound .
making ideas, T. I. stands just
their manufacture.
The latest is
to it would be avidly bought re- '
about at the head of the
been

gardless of any practical appraisal
of its future earning power, to¬
day's buyers are more sophisti¬

They insist that research
must be converted promptly
into rising per share profits and
not offered as an excuse for low
or deferred earning
power. They
are no longer
willing to pay 45
times earnings unless the annual
cated.

costs

galieum

a

can

arsenide

operate

diode

anywhere

tility, their superiority to
tubes,
uses.

shortly

be

in Philco's

indicated

it

staggering
sales

single

a

42,000

—

"S-2000."

new

The

Out of

of $195

mil¬

buying decisions in the

lion

in

electronic list are now being made
on the
basis of more penetrating

will

be from transistor and semi¬

Because

1959,

conductor

business.

analysis and fhr greater selectiv¬

considerable

ity, it is only natural that the
investment qualities of Texas In¬

petition,
the

in

struments

true

more

enterprise

fabulous

growing companies in one
fastest growing industries.

fastest
of

our

T. I. sales rose from $7.9

the

On

a

$600,000 to $12,700,000.

share basis, net earnings

per

from

rose

1958; and,
pre-tax net

period,

same

from

rose

million in

$92 million in

1950 to
in

the

of

one

—

$1.05

in

1955

about

to

about

million

You

hear

foreign com¬
Japanese,

particularly
transistor

costs,

common are becoming
appreciated. Here is a really

$82

around

business.

is

It

expenditures

1959

share,

in
the

logical

gross—roughly
this, about 50%

Of

financed

another

form

in

about 15% of

million.

versa¬

all-transistor.

total

$30

vacuum

lower cost in many
Automobile
radios
will

computer is

Growth Rate

were

and

15%

year.

Research

was

their compactness and

are

number of transistors in

a

electronics industry.

big things? about transistors

growth rate in net is upwards of
Remarkable

which

between

degrees below, and 628 degrees
above, zero.

an¬

list in the

84

The

is

con¬

others.

by

1959,

for

put
per

aside

set

was

scientific

base

To

$7.75

about

way,

to

techno¬

and

greater

future

earnings.

Central Research and
Engineering
Activity supervises
and
and

coordinates

research

staffs

each operating
specialized longrange unit, Central Research Lab¬
oratory covers the whole field of
scientific
effort—materials, solid
programs

division.

Keve Partner in

Van Alstyne, Noel

in

Walter

is that T. I. gets a terrific amount
of mileage out of its research, and

has been admitted to general part¬

has

A.

Keve,

a

nership in the
inve

consistently converted rising

research

expenditure

into

has

Harris,
Upham & Co.
for

sells

many

years.
Mr.

and

common

Japanese

sets

will

Walter A. Keve

the

Keve

serve

Van

in

roads
the

the

U.

simplest

The

168,

roughly

owning

35%

of

Texas

Instruments' outstanding 3,894,388
common

about

that

state

physics,
devices, systems,
geology, ferro-magnetics and

stocks, here's one
qualifies—year after

growth
really

J. Preston Rice

With all the talk

shares.

J. Preston

Rice, Partner in White,

Weld

Co.,

&

passed

away

January 27.

year!

are

transistors

and

This announcement is neither an offer to

are

The

not

competitive with more ad¬
high frequency units. And
leading manufacturers, such as
T. I., increase automation in their
plants, this foreign labor differen¬

sell

nor a

solicitation of an offer to buy any of these Bonds.

offer is made only by the Prospectus.

vanced
as

will

tial

become

less

far

$125,000,000

impor-

The most important tant.
thing to note here, however, is
The Apparatus Department, ac¬
that the growth rate is not flat¬
counting for about $32 million
tening out. It shows promise of of 1959 total sales, turns out whole
continuing at upwards of 25% an¬ electronic and electromechanical
nually; and a per share net of systems, mainly for the military.
around $5.25 has been predicted These
include submarine detec¬

$3.65 in 1959.

for this

So if today people

46 times

pay

year.

earnings for Texas

International Bank for Reconstruction
and Development

tion, target location, missile direc¬
tion and

reporting, radar, aircraft
and warning

Instruments common, they're get¬

intercommunication

ting

Twenty-Five Year Bonds of 1960, Due February 15, 1985

systems. The Apparatus Division
works closely with the Semicon¬
ductor
Division
since
missiles,

their

money's

in

worth

growth.

Wfyile the remarkable forward
motion

in

Texas

Instruments

oc¬

curred in the decade

such

Interest Rate 5%

Bomarc, Falcon and Titan,

as

would

get off

never

Interest

the ground

just past, the
business enterprise is actually a
fairly old one, originally incorpo¬
rated in 1930 at
Geophysical Serv¬
ice, Inc., to conduct seismic sub¬
surface surveys

tation

payable .August 15 and February 15 in Sew

York City

right if they didn't tote
silicon transistors, diodes and re¬
sistors by the hundreds.

to locate oil and

gas

bearing geological formations.
In 1951, the
corporate name was
changed to Texas Instruments,
An

inc.

important

change

was

made in the direction of
corporate

activity when

T.

I.

licensed

was

by Western Electric Go. to make
transistors in 1952. Other mile¬
stones

include

the

Intercontinental

merger

Rubber

•^listing of T. I.

with

Co.

common

and

on

fly

or

The Geosciences and Instrumen¬

carries

Division

the

on

original business of the company,

Price 100% and Accrued Interest

namely, probing for petroleum by
reflection and refraction,

seismic
and

the

making

instruments

to

report and record findings.
While oil exploration around the
world
has been falling off for

survey,

several years,

submarine explora¬

greatly on the increase and
the same sort of electronic and
seismic instrumentation useful for
tion is

geological structures on
of Metals
and Controls Corp. in land should Drove effective in de¬
19o9.
y
fining the depth and character of
Operating Divisions
sea bottoms.
The Geosciences Di¬
Texas Instruments operates its vision produces a line of gravity
business through several divisions. meters, seismometers, seismic am¬

Copies of the Prospectus may be
undersigned

as

may

obtained in any State from only such of the

legally offer these Bonds in compliance

with the securities laics

of such State.

and the acquisition probing

r

,,he lafgost and

these

is

the

ponents

most renowned of

Semiconductor-Com¬

Division.

I.

T.

is

the

argest manufacturer of semicon¬
ductors in the world. It turns out
over 150
varieties of them. Tran-

rr.are serniconductors. Since
:
has been turning out

iq-a

J! '
germanium transistors, quite low
st
ones, used in hearing aids and
ansistor

radios.

The

company

ult° p£bdaces
•

anrf

xlg
J5 rs

more sophisticated
frequency germanium

useful

in

militronics

**a*a process*n& equip-

merit

Anotbgr transistor with a broad^expanding market is the one
,e 4?f silicon. This costs a lot
n

,

®

cause

wimtf

the germanium type, is

n/duT to produce> but be,

,s. superior capacity to

and oscillographs and is
constantly developing new instru¬

MORGAN STANLEY & CO.

plifiers

A

ments.
the

DISC,
transistorized seis¬

recent

first fully

one

MORGAN GUARANTY

'

1'

<

THE FIRST BOSTON CORPORATION

THE CHASE MANHATTAN BANK

TRUST COMPANY OF NEW YORK

was

system which magnetically
records and stores data. The Geo¬

THE FIRST

NATIONAL CITY BANK OF

NEW YORK

THE FIRST NATIONAL BANK OF CHICAGO

mic

sciences

Division

The

MANUFACTURERS TRUST COMPANY

CHEMICAL BANK NEW

YORK TRUST COMPANY

BiNK OF AMERICA

HARRIS TRUST AND SAVINGS BANK

produces about

y8th of total company

sales.

Metals and Controls

Divi¬

little over
y4 of total sales has three major
lines: (1) fabrication and sale of
clad metal products; (2) manufac¬
ture and sale of thermostatic and
electric controls, and (3) produc¬
tion and sale of nuclear fuel ele¬

sion, accounting for a

Since this busi¬
merged into T. I. last

THE NORTHERN TRUST COMPANY

N.T.&S.A.

.

CONTINENTAL ILLINOIS NATIONAL

GLORE, FORGAN &

KUIIN, LOEB & CO.

DREXEL & CO.

EASTMAN DILLON, UNION SECURITIES & CO.
IIARRIMAN RIPLEY &

GOLDMAN, SACHS & CO.

CO.

.

BANK AND TRUST COMPANY OF CHICAGO

DILLON, READ & CO. INC.

BLYTH & CO., INC.

was

ness

out

the

T.

I.

organization with

temperature it is new products and provides high
and
in supersonic aircraft quality engineering and metallur¬
5qo? mjssiles.
T.. I. accounts for
silil 0\ the sales volume in the gical talent. It, in turn,, operates

KIDDER, PEABODY &

Incorporated

SMITH, BARNEY &

CO.

& HUTZLER

SALOMON BROS.

PIERCE, FENNER & SMITH

MERRILL LYNCH,

LEHMAN BROTHERS

LAZARD FRERES & CO.

CO.

—

:—

STONE & WEBSTER SECURITIES CORPORATION

WHITE, WELD & CO.

Incorporated

mnct

°h transistor
 industry.

,

It also

CO.

Incorporated

ments and cores.

April, its operating results and
profit margins have substantially
improved. The division rounds

three

sub-divisions:

General Plate,

February 9, 1960.

the

it pays no dividend, the membership of David Van Alstyne,
management preferring to plow Jr., who will continue as senior
rather
than
pay.
Management partner of the investment organi¬
documents
its
abiding faith by zation.
at

in¬

But these

S.

sizable

as

Al¬

styne, Noel partner on the floor of
the Exchange, having acquired

transistors

radio

making

are

He

formerly

associated

able to expand

Instruments

an¬

with

14,000 employees, there is no
union representation.

Texas

been

was

over

T. I.
its plant
steadily by use of depreciation
and retained earnings. - Although

Noel

nounced.

is unique in that, with

strong

Van

Co., 52 Wall
Street, New
York
City, it

corporations wax great and pres¬
tigious. Key personnel are given
attractive
incentives,
and
the

are

ent

m

&

big, it still retains the team spirit
and corporate zeal often lost as

Finances

t

of

Alstyne,

Management is dynamic, and
though the enterprise has grown

has been

s

firm

corre¬

spondingly increased net profit.

company

member

new

of the New York Stock Exchange,

that, by virtue of lower labor

and

-

geophysics, circuitry, data proc¬
essing, computation, etc. The point

of

Research
All

rapid review of the remarkable rise of this company to electronic
eminence, accompanied by phenomenal earning power.

Investors

Work

allurgical science, and techniques
for improved instrumentation for

Research, Results, Rewards
A

electrics.

stantly directed toward new ap¬
plications of electronic and met¬

9

r

.

on

also

Balance of Payments and
Other Disquieting

the

Problems

"

"

•

old

do

By William H.Peterson.* Associate Professor of Economics

Peterson notes considerable tarnish

;V

shoe who

sketch in
demanding

; ;

1

His subservience to union dictates

*

tends to follow.'

/

pated "Golden, Soaring Sixties." Terms the new balance of payment

All this labor trouble

First, labor.

■/•'/' reflects on
thrusting
costs upward and squeezing profit 'productivity
-compete ( in
margins the
price of labor is
Of

the widely antici¬

on

V

■

all

the

difficulties the most significant economic problem in postwar America.
Maintains worldwide competition is the root of

be

'should

management and Congress must jointly put our economic house in

the

within

gains

its
ability
to
international com-

and

•

Tax Problem

J

The tax problem is

the second

management's
and
requiring

area1

demanding
urgent
attention

of

productivity (technically, as de¬
order, through attacking monopoly, corruption, and restrictionism of
termined
by ' marginal
produc¬ Congressional overhaul so that we
labor; overhaul and reduce our taxes; eliminate inflation; and ob¬
tivity) in order to avoid the wage- can surmount our balance of payserve the letter and spirit of our competitive system.
v
price spiral. This has not been the ments troubles.
Taxes is of course an enormous
case,
however.
Because of our
Virtually all the prognostications to earn interest—at least for the
lop-sided labor legislation wages vpart of the cost of doing business
are
in. / The; Golden,
Soaring time being.
Which brings up the story of the
have long exceeded productivity
Sixties are upon us, or so we are
and
the
Our Mortgaged Gold Stock
wage-price spiral, has little boy who wanted - $100, so
assured. And most of the indica¬
he decided to pray to God for it,
been a dominant feature of our
tors are reasStill, even though our remain¬
since
everyone
said He always
post-war economy.
ing gold stock of some $19.5 bil¬
suringly high,
granted one's wishes.
The little
In the post-war era, the aver¬
lion is the largest in
and pointing
the Free
boy . prayed
and
prayed
every
age /; American
higher. The
industrial wage
World, it is fully mortgaged and
night for two weeks. Still no $100
rate (fringes included) has gone
then some. Foreign gold claims—
1960 GrossNaso he decided to write a letter to
tional Product
private and some government— up about 8% per year. At the ;God. When the
postal authorities
will surge be¬
total some $17
billion, and the same time, industrial productivity
-received the letter they decided
yond the half
legal requirements for gold cover¬ has risen some ZVz% per year and
•

t

minute

.

United

equipment.

There

States.

in

write-offs
relieves
of

industrial

power,.-that is, except the

Every

fast

Germany

of its corporations
profits: which are

many

taxes

are

England.

on

back in plant and equip¬
ment. Italy, France, Sweden, and
plowed

Canada

to

name

some

other
the vital
need of industrial renovation and
—

countries—all

recognize

technical proficiency.-

And prac¬
nowhere else in the Free
World do.we find investment de¬
cision - making
furthercrippled

tically

/merce.pI \ ■ ■'•"/ ;"*■ -"<r'.•'• ■' •'•...■: /

erally. But such gains in wages

this dilemma, insists

adversely
industrial

America's

pressures

paramount. All of us, I know, are
vin favor of gains in wages gen¬

.

Thursday, February 11, 1960

struggle. The union shop
necessarily
dilutes
company
loyalty. The unionized employee
knows membership in the union is
Ja condition to his holding a job.

Areas of Action

New York University

Author, "77ie Great Farm Problem" (Henry Regnery, Chicago, 1959)
Professor

/

/

me

areas

.

.

union

in. the

pawn

a

.

power

do—where

to

Let

of' the

become

from

bit like

a

the

in

what

begin?

we

.Tour

are

we

woman

know

•'action.

Graduate School of Business Administration,

forthcoming

be

must

Congress. But
.didn't

i

Financial Chronicle

The Commercial and

(666)1

lgt

,,

.

high capital gains tax as
the Federal Govern¬

the

by

levied

ment.

by

w/'//'//W

;•///:■

1

To be sure,

the Revenue .Code of
1954
did
make
some / improve¬
ments: on depreciation accounting
—but the basic problem of per¬
mitting only original costs and not
replacement costs as the basis for
depreciation remains.
As do so
many other self-defeating
of our tax laws.

features

.

-

The Inflation Problem

>

,

.

to forward it to the President.

r

trillion

mark.

the

of

age

Steel expects

banknote

its

greatest

run

p.rodu ction

two

ever.

year

rec¬

And

tarnish

Dr. W. H. Peterson

so

there

is

some

for

of
fatigue.
Stock
prices
have sagged during the past few

signs

weeks. Interest rates have reached

highs

30-year

—

heights

before reached in the mem¬

of many bankers; and banks
increasingly reporting they

ory
are

With money
so tight—and if Congress does not
weaken—getting even tighter, an
increasing number of private and
even
public projects are being
shelved.
And, perhaps most sig¬
fully loaned up.

are

nificant of all, the American econ¬

is facing the startlingly new
problem of balance of payments
difficulties
a
unique problem
concerning management in post¬
omy

—

war

America.

To be sure, that the
ernment

and

spending,

its

lending,

U. S. Gov¬

citizens

are

investing

and

abroad than foreign govern¬

more

ments

spending, lending, and
investing here is a phenomenon
dating back to 1949. From 1949 to
1956

are

the

running

States

United

average

an

average

of 5.7%

1947-50

period

has

been

deficit in its

A

on

Our

in¬

creeping

flation could accelerate into

gal¬

a

this

And

possibility

doubt¬

lessly accounts for the bold idea
of

Dr.

Roy. L.

economist
the

New

Vice-President

and

Trust

Bankers

to

York,

chief

Reierson,

of

Company

reduce

of

even

or

eliminate if necessary the gold re¬

requirement — thereby
"freeing" more than enough gold

serve

all

meet

to

What such

international

claims.

most

of

the

of imports

and exports was rela¬
tively strong. But recently, how¬
ever, economic trends — long ig¬
nored— have, caught up with us.
These trends—which I shall group
in the four categories of labor,

inflation,

and competition
separately—are
of critical importance to manage¬
and

each

discuss

ment,

from

apart

effect

the

on

their

balance

adverse
of

pay¬

ments.

In
ance

of

the deficit in

payments

our

bal¬

dramati¬

rose

billion and foreign
nations turned their surplus dol¬
lar holdings to gold in the amount
of $2.3' billion. In 1959 the U. S.
cally

to

something
of

a

more

than

payments deficit

billion

So,

continued

was

there

$1
o*

converted

has

when

been

billion

about $4

into
a

gold.
slowing

down in the gold outflow. An im¬

portant
outflow

reason

is

for the decrease in

the

magnet-effect of
high interest rates in this country.

Foreigners

are

leaving their

more

dollar

and

more

earnings here




na¬

over

: added: ."I

letter

What

is

excessive wages
overpricing U. S. goods in
world markets—and in domestic
more,

Reierson

did

Like

Odysseus trying to steer the right
home

course

it

to

to

Ithaca,

must,

we

avoid the Scylla
on our gold on
the one side and the Charybids
of cutting off our last tie with
seems

of

gold
is:

me,

foreign

a

run

the other. The

on

question

Management's

involvement

in

ment

should,

I

believe, support
policies of
and substantial free

Administration's

the

tight

money

trade.

For

perhaps

the

easiest

to the payments deficit is

protectionism

—

that

is,

tell

the

American public: No more Volks-

no
so

more

on.

Scotch whiskey,
Japanese cameras, and

Protectionism

as
a
policy
opinion, short¬
sighted economically and, in view
of
our
global strategy and the
Soviet threat,
dangerous politi¬
cally. The U. S. seems to be mov¬
ing anyway toward greater eco¬

would

nomic
on

be, in

and

my

political

dependence

international trade, as may be
from a section of the

gathered

President's

port for
"To

annual

1960,

assist

as

in

economic

adjustment of the balance of
ments

consistent

with

our

pay¬

goal

promoting multilateral world
trade, a strengthening of exports
continues
;

to

be

essential:"

trade

is

to

be

seen

on

in

foreign

the

new

Japanese-American treaty signed
last week providing for not
only
military, but trade and economic,
cooperation.
Which,
bluntly,
means more

in

Japanese competition

American markets—not less.
The

cation

hard

in

payments

the

managerial
entire

of

dilemma, then, is that

management must do its share to
help put our economic house in
order.

Help—constructive

is

$55

for

help—

the

or

Free

Such

the

among

World.

rates

Such

dis¬

rates

provide

tax

a

take—

Federal, state and local—of
$130

the

are

highest in

incentive and investment.

courage

that

billion

in

the fiscal

some

of

year

1960,

about 30%

or

of

our

American

an

that

out

the

once

S.

U.

Second

industry produced almost all

tax

coun¬

but today more than half is
imported from abroad.

the

the

not

excessively

-

areas

huge

a

of

our

government

in

economy.

taxing

and
costs

which

must in turn pyramid the
prices charged in domestic and
foreign markets.
Little wonder,
then, about our growing inability
to meet world competition.

cost

American labor story. Other prob¬
lem

Such

intervention

spending pyramids business

whole

high

War.

spells

sectors

Such

The problem of excessive wages

unfortunately,

World

take

many

try,

only be touched
briefly. There is, for ex¬
ample, the problem of restrictive
labor practices, which was
really
can

upon

Too, literally millions of

execu¬

tive man-hours have

unresolved in the steel settlement
and is yet to be dealt with in the

to be chan¬
neled into ways and means of tax
avoidance.
On its corporate in¬
come
tax return, for

upcoming

dairy

railroad

exhaust

no

is

its

in

finance.

deficit

and

balance

Since

budget has been

only four times.

As a
debt has
climbed from less than $23 billion

result,

in

the

1933

to

Federal

than $285

more

billion

By far the greater part of

now.

this vast increase in debt has been

accomplished by deficit finance

—

of

v

its

trip

control

the

speed

of

another

solution

is

or

assembly-

operations.

Still

per

member

labor

demanding

violence

unionism.

I

and

believe

these two labor aspects—violence
and complusion—are interrelated.
This

was
the point of Professor
Sylvester Petro of New York Uni¬
versity in his two books, "The

Labor

Policy of

a

Free Society"

"Power Unlimited—the

Cor¬

ruption of Union Leadership." In
these works, Professor Petro calls
for local enforcement of laws
pro¬

tecting

property

relatively

strikes

and

in

persons—

unprotected

mass

the

and

picketing,

in

is
Lea-Wilson

Albert

Meat Packing case of

a

Management
own

control

employees
is
weakened
through
unionism

leaders.

and

When

as

few weeks

over

its

enormously
compulsory
corrupt
union

a

trip,

deductible?

Yes, ruled the U. S. Tax Court,
declaring that "the cost of a big
game

-

area

-

.

worker

is

voluntarily unionized he tends

in¬
to

the

increase
in
population and
production. The upshot is the
phenomenon
of
steadily
rising
real

prices or, euphemistically, creep¬
ing inflation — consumer prices
about
110%
above
1939
and
wholesale prices about 140%
1939.
-•

Inflationists

Slichter

the

of

school

over

Keynesthere

insist

is

really nothing to worry about in
this upward march of prices —
as long as the creep does not ac¬
celerate into

propensity to spend is supposedly

the

taken

Many unions limit the output
union

the

of

exhibited

all

safari

films, displayed
animals, and held an
animal-naming
contest.
Is
this

each

monetization

principal officer and his
The company publicized the

African

an

captured

of

by

by

deducted

company

the installation of automation and
other
labor-saving equipment.

fight

flation,

of

wife.

seen

"law"

the

costs

way

ramifications

the

a

labor restrictionism. Many unions
have fought and continue to

now

of

recognition of the tie between in¬

gallop, usually de¬
rise in prices
soaring beyond the accepted 2 or
3%. In fact, advocates of managed
inflation argue that some inflation
can
be constructive.
Consumers'

example,

negotiations.

But these two instances in

line

v../' /V//'

heart

debt. Since 1933 the money supply
has tripled in size, way beyond

price

the barbed wire used in the

day

■

.

that is, from the view point of in¬

pointed
steel

is,

debt."
The

1933 the Federal

is at 52%—and these rates

over

Or expressed

flation

91%; the corporate income tax

/

the long
differently,
'the purchasing power of currency will vary inversely with
the magnitude of the public

close

very

for the

of

divide in value

run.

is not the usual take

Washington, but it is

highest

$118
be¬

ton

a

ago.

impli¬

balance

As

follows:/

as

National Product, which is almost
mill, in Cleveland, must get :half again as
large as the tax take
same product. Mr. Blough
during the New Deal before the

steel

and

A further example of the Ad¬

ministration's thinking

Cleveland

compulsory
needed

routed your

you

Washington.

with

—

"History shows that money
will multiply in volume and

and

thank¬

of

"Chal¬

/

Gross

the

re¬

follows:

attaining

in

ton—which

low

How?

this balance of payments problem
is plain. For one thing, manage¬

noticed

through

and down the St. Lawrence

Dr.

say.

letter

Inflation,

to

Seaway to Cleveland. This for¬
eign-made steel was sold to a
per

not

another

issue

1959

immodesty and not a little
tongue-in-cheek — Peterson's law

to it in the upper - income brack¬
ets. Perosnal income rates do rise

told how a ship brought a con¬
signment of steel bars across the

customer

however,

.

November

York

some

the

Now 95%

of

markets. In his TV address, U. S.
Steel
Chairman
Roger
Blough

action would do to

an

was

.

received
delighted

de¬

area

University's
lenge" magazine I stated

of

boy

„

deducted 95%."

are

ocean

of

usual, those

Soviets.

problem,

$3.4

outflow

gold

lead

and

lot

a

ing him for his prompt reply, and

the

rate

he

God

wrote

like

seem

boy.

a

the

money,

our

growth

to

When

in avail¬

inadvertently suppressing
tional investment and hurting

the

course

would

-money

able funds for reinvested earnings.
In other words, excessive wages

inflation

of

1958

sharp cutback

a

our

wagons, no more

taxes,

that

sales

on

period. This squeeze

•

lop.

desirable, attributed as it was to
our
substantial foreign aid.
Be¬

throughout

means

3.5%

to

the

In

New

.

calamitous.

be

answer

postwar period American exports
were
largely unchallenged in
world markets; our visible trade

in the 1955-58

are

then?

the nation's gold could

on

run

claims

their

what

payments of around $1.5
billion, but such a deficit was
considered manageable and even

balance

sides,

an

sales for the

on

President

due

problem

manding
management
attention
and exacerbating our balance; of
payments dilemma is inflation. .T'

the/ letter
and
chuckled.
Then, he told whis secretary to
/send the boy a check for $5 since

After

..read

industrial

on

profits, which have fallen from

governments

and

exercise

to

gold,

our

the gold in the Sixties.

example,
is
heading toward a 19-year low.
Home
construction
is
showing

never

squeeze

a

our

some

interests

were

income,

almost

to

up

living index about
These figures add

year.

and

foreign

$10 billion.
anything but
confidence. For suppose the for¬

by

stock

eign

already

on

Farm

—

per

•

break all

But

claims

The situation instills

may-

ords.

gold

of

cost

4.7%

almost $12 billion more. These

gold

pro¬

duction

on.

deposit

Federal Reserve—thus exceed

January auto¬
mobile

the

Reserve's
liabilities

Federal

and

third

The

hunt

sound

like

essary

the

Africa

Erie,

of

that

•intended.""

dairy

a

not
nec¬

busi¬

Pennsylvania,

evidence

clearly

does

ordinary and

expense

in

ness

in
an

in

it

this
was

The

was

so

had

company

maintained, successfully, that the
trip
was - of
great
advertising
value to the dairy. * But what is
ordinary and necessary?
Internal

Revenue

Service

The
has

recently announced
that
it
is
cracking - down
on
some
loose
interpretations of what constitutes

"ordinary and necessary" business
expenses—especially for "enter¬
tainment" like lavish
trips, fancy
night club parties, and mainte¬
nance of posh
hunting lodges.
Obsolete Depreciation Rules

Or,

consider
preciation laws.

major
eased

power

the

facturers

our

Practically
in

problem
to

obsolete

invest

the

de¬

every

West

as

has

of

its

in

up-to-the-

manu¬

a

annual

an

heightened by the illusion of ris¬
ing incomes. Producers' propen¬
sity to invest is enhanced by the
of

appearance

profits.

rising

Debtors' burdens lighten as repay¬
ment proceeds under

cheaper
tiful

progressively

All in all, a beau¬

money.

scheme

"little"

but

shows

case

and

fined

managed

this

is

inflation.

*

This is so, save for a few annoy¬
ing rubs: the destruction of much
of

the

such

value

forms

in
as.

liquid

example.
The
interest-./rates
count

future

the

claims in
accounts,

bonds—for

upward
as

effect

dollars.

•

savings

insurance policies, and

push

creditors
of

The

inflation

on
dis¬
on

ever-present

a fast
breakout of
creeping inflation inad¬
vertently converted into galloping
inflation. The even greater possi¬

possibility of

prices

—

bilities of exacerbating the boom*
bust

cycle

—

there already have

been three serious postwar reces¬
sions—and of worsening the na¬

tion's

balance

tion—export

of

posi¬
hardly

payments

volume

can

be enhanced with the tremendous

loading charge of inflation.
Too, inflation warps manage¬
decision-making. It creates

ment

Number 5924

191

Volume

.

.

;

The Commercial

and Financial Chronicle

legitimate case for union pres- our competitive system must be
on
wage rates. "It distorts observed—both' here and m our
"
•m/pntory
and serves, economic relations abroad.
inventory calculation capital re
!n «i.pvpnt adequate
—<
fl
•

rp

PL„r,+

It exag-

exnansion.

nr

It exag¬

Placement or expansion.

gerates

the

_

a

a talk hy Dr- Peterson before

conference

and

investment picture and

Technical

sponsored

Services

by

at

Management
Yale Club,

iS^assssjts

'

with

Newell
Van

now

Strum

investment
Broad

is

&

associated

Towne,

counsellors

Inc.,

of

85

offices

with

formed

Sealy

v

^y^conteibute to a depression- L&ZcU'd FfGreS tO
^Thrfinal"arel1'of management Admit PaUtlierS-v

11

Sealy Newell Joins Forms Mutual Funds inc. Simmons, Rubin
Van Strum, Towne Funds, Incorporated has been WlFG tO KlGGHRII
axwwww

the

New York City, Jan.
27, 1960.

(667)

Street, North
Lacey is

a

in

First

a

se¬

Franklin

business.

curities

at-209

to engage

J.

Simmons,
Beaver

principal of the firm.

has

St., New York, and in this

affiliation

has

been

(Vice-President

of

(elected

Howard Coleman

a

Institutional

Shares; Ltd. and

of Institutional
mutual funds for

Coleman

Howard

has

a

Opens

Rubin

announced

&

New

Street,

Co.,

Inc.,

York

the installation of

direct wire to John J. Keenan &

,

Los Angeles.

Co. Incorporated,

formed

Income Fund,
Howard Coleman Company with
that_impmges on our ba of payments .difficulties is Lazard Freres . & Co., 44 Wall which Van Strum
Towne is the offices^ at 111. Broadway, New T
&
•
TrvJnG
competitionvy;:
; ,y Street, New York City,.'members investment advisor, it, was an, York City,.to engage in a securiPresumably... ours is a competi-, of the New York Stock Exchange, nounced by Samuel R. Campbell, ties business. _
- .r _
. .
.
. .
A.G.
tive system but- Washington all
March, 1 Will admit Eugene R.", President of the investment counWith Edw. D. Jones
(iTf freauently appears to be of a Black, dr., and Felix G. Rohatyn selling firm.
(Special to The Financial Chronicle)

concern

56

City,

ance

JEUlieSOll■ J 01I1S.

,

Allyn Co.

.

dTlferent

to partnership, •; ;;

In agricul-

persuasion.

example, we see com¬
frustrated through price
and acreage restriction
with the tacit motive of "saving"
the marginal • and r sub-marginal
for

ture

,

.

;

(

^;..NewcH.

was

tormerly a
The Hanover

«.' O.
•
'
Vice-President of
in investment Business v
Bank, where he was a senior ofCHAMPAIGN, vIll. _-The; Illiana ficer of the Trust Department; He
Insurance Agency, Inc:is engaging-was with the bank for 27 years,
in a securities (business from of- joining
that -institution directly

petition

cuDDorts

.

.

(Special to The Financial Chronicle)

1

ST.( LOUIS,

*

Deuser

H

n

Gene

—

become

has

.fh

Mo.

Tnnpc:

MADISON, Wis.—John G, Jamie-

R.

associated
p.

rn

has

son

onn

become; associated

A. C,; Allyn and

with Edward D. Jones, & Co., .300

with

Company, Incor-,

North Fourth St., members of the pora^e(j I First National 'Bank
fices at 308 West Hill Street. Of- /following graduation from Yale New York and Midwest Stock ' '
.
*
' •
farmer.
Again, we see the ICC stopping ficers are John L. Eisner, Presi- University, and successively was Exchanges He was formerly with Puilding. Mr. iJamieson was
rate-cutting
between
different dent; Carl F., Newland; Executive v named a branch manager Vice- <
Mutual Bank & Trust merly an officer of Bell & Farrell,
transportationr forms,
the * FCC Vice-President; and R. G. .Gray, President and a senior officer of Security Goldman, mnK & Co.
Mutual Sachs &
■Inc. w
Co. and
refusing licenses to pay-TV, the Secretary-Treasurer.,
V
the Trust Department.
~
~
CAB giving a hard time to the
non-scheduled airlines, the AntiTrust Division
forbidding any
number of competition-enhancing
mergers, the Interior Department
restricting imports of foreign oil
This announcement is neither an offer to sell nor a solicitation of an offer, to buy
,

for-

zinc, and so on.

and lead and

pricing
is most
the
Washington
merry-go-round. Not long ago I
attended a lecture given by Low¬
ell Mason, former member of the
Federal Trade Commission.
Mr.
Mason said we
are
reaching a
point when price advances are

confusing

:

:

Competitive

The offer is made only by the Prospectus.

these securities.

on

New Issue

February 10, 1960

12,000 Units

considered evidence of monopoly,

uniformity is counted
proof of collusion, and pricecutting is viewed as either unfair
competition or price discrimina¬

when price
as

other

In

tion.

words,

American

matter

no

how your

pricing goes you are in
danger of being found guilty.
Competition is at the very heart
of our balance of payments dilem¬
ma.
The competition
is world¬
wide.
America
is • facing severe
competition .from the Communist
Bloc
well

the

economic

—

competition

Gypsum Company
Stock

480,000 Shares of Common

Share)

(Par Value $1 Per

as

political competition. But
source
of economic

as

greatest

competition
cannot

skirted—is

$1,200,000

that

competition

—.

be

the

from

7% First Mortgage Notes

.Free World.
Major

nations

World such

the

of

Japan, West

as

1, 1970

Due February

Free

Ger¬

Britain, and France have
already taken steps to ease our

many,

balance of payments dilemma by

reducing

tariffs

against dollar
that

are

allies

our

and

quotas
Indications

goods.

will

assume

Offered only in Units
shares of Common

a

after August

greater share of the burden in up¬

grading the economies of the

1, 1960 unless an

un¬

of Directors of the

derdeveloped. nations—an action
which would also
help us to con¬
serve dollars.
Such dollar liber¬
alization is welcome.
But the
competition between
American management and other
Free
World
managements
re¬

PRICE $300

economic

or

lease

off

entirely the 25% gold
requirement and thus re¬

more

in

at

our

best

seems

gold to meet the defi¬
balance of payments is

palliative.

a

to

be

the

v

the

with

case

Cobies of the Prospectus may

also

This

if J1 ^aQ» which is based on
Jhe idea that the world gold sup•

P.v is too inadequate and inelasThe Triffin

PC.
vert

the

Monetary
W'ond

Plan

present

Fund

central

serves

al*

would

bank

access

us

Jack M. Bass and Company

con¬

of

sort

a

holding

the

P. W.

over

rvZet ibasically
is

new

our

balance

Infi V

ahrf?

our

problem

of

Barrett

Hughes & Co.,

Raffensperger,

of

And

and

restric-

must be solved.
Taxes
overhauled and reduced,
must be eliminated. And

0ve
 letter and spirit
all, the

,

;

Courts & Co.

Norman C. Roberts Company

Incorporated

unchanged.

corruption,

m

Quinn & Co,

liquidity

Clark Landstreet

,

y»

^

Lowell, Murphy & Co., Incorporated

Incorporated

Brooks & Co.,

Bellamah, Neuhauser &

States

United
to

paai?afement and Congress must
nnv!*
tbeir part to put our ecorm?\c bouse in order. Labor mou

.

Hill, Darlington & Co.

Payments dilemma.
nopetition

be distributed.

member countries

oneSuably'. the
°uid have
tide

of the several
states
dealers in securities and in which the

International

•:

into

authorized to "create" new
eserves through its lending oper¬
ations. Under the Triffin
scheme,

°

be obtained from any

which such underwriters are qualified to act as
Prospectus may legally

ana
•

First Mortgage Notes

is

The Reierson plan to reduce

cut

reserve

cit

isolationism

Company

PER UNIT

Plus Accrued Interest on

gains. Clearly/ protectionism and
other
out.

principal amount of Notes and 4C
separately transferable only on anr'
earlier date is fixed by the Board

each consisting of $100
Stock which will be

of

C. D.

& Kirkpatrirck, Inc.

Robbins & Co.

r

'

Wiley Bros.,; Inc.

First Southeastern Company

Mid-South Securities Co.

12

de Gaulle is

U.S.A.'s Changed Attitude
Toward European Free Trade

this

our

in the Algerian crisis

N:

.

towards Britain and a free trade union.

a

*

There is a
London that

—

the official American attitude has

much

become

las

dollar

the

to

more

that

favorable

the

of

aspect

problem no longer appears to be

30 overwhelmingly important.
In
or is changing in favor
allowing the Western European my case in the meantime Britain
countries to proceed with their md other Western European
have
further
relaxed
regional Free
Trade
arranage- Countries
against
dollar
ments, and indeed of encouraging discrimination
them to do so. This had been the goods by removing
or reducing
original
American
attitude
to¬ quantitative restrictions. From an
wards the European Common American point of view
this is
Market, but during the second half at least as important an any tariff

European

are

indications

in counter-of¬
It is

henceforth engage

fensive in the battle of words.

official

British

changed,

now

of

quarters that on the contrary it is

of

there

1959

was

strong reac¬

a

tion in Washington against further

development of regional Free
It
appeared at one time as though
the development of the arrange¬

Trade arrangements in Europe.

of the Outer Seven and

ment

United

the

concessions

could

States

limited
participation in Western European
Trade

Free

through p a

secure

its

The main

of Split's Harm
for the

reason

amalgamation with the Inner Six

in the American

might encounter strong resistance

ever,

This

change

sible

from

United

the

States.

change of attitude
to

attributed

was

balance of payments fears

tertained

last

At

the

in

en¬

Washington.

month's

official

has

attitude

American

Trade,

Market

Free

Trade

matters

of

those

broad

the

the

who

the

in

Gaulle's

de

imports should

favor

of

Germany

a

the

Western

that

it

But

the

witness

burden

major dollar scare,

for

the

that

to

liable

was

American

to

balance

of

determined

British

of

forces

to

from

in London hopes

would

not

British
the

fication

Ad¬
anything

the

for

that.

that

Army of the
a
substantial

represents
on

to

feels

come

Government

balance

of

pay¬

absolutely

ments there is

was

weaken

Now that the general

countries

no

justi¬

depriving

Britain

of

of earning the amount
which has to be spent on the up¬

the

payments.

means

keep of the troops in Western
Germany. Moreover,
since

atmosphere

in

gaining

by

ways

market

without

monwealth

to

access

Com¬

British

of the

the
price for it, in the same way that
Britain does, in the form of ad¬
mitting Commonwealth products
free of duty. For instance, France
would like to receive equal treat¬
ment

paying

with Britain for her

three

manu¬

far

so

"

''

*

of

one

in 'the

House

will

it

by

gets

or

of arguments.

He is wealthy in his own
right but- it is not his own wealth

if

that is backing his

campaign. The
is coming from Texas and
there is apparently plenty of it.

be

money

the White House.

First off the bat will be the so-

has

This

bill.

clean elections

provision extending its ap¬
plicability to the primaries. There
is a serious question as to its con¬
stitutionality.
It also carries a

Johnson

leader of

Italy
and
the
Benelux
countries, while leaving fair scope
for some degree of Free
Trade
area
that would cover the whole
of

Western

Europe.

The original
idea of European Free Trade area
is dead, because of de Gaulle's
that

fear

he

would

be

number

the

and

of the

ernments

outvoted
of

other

Common

Gov¬

Market

giving more than $10,000 to
campaign. This is intended to

a

hit at

the heavy

several

are

elsewhere

and

much

as

Republican con¬

There

tributors.

Texas

by the

larger

participating
long
as
the
formula that is hoped to emerge
from

the

negotiations

safeguards
against that possibility, he
might be willing to make conces¬
him

sions

elsewhere.

interested
and
the

as

in

is not

economic

result

a

He

of

really

questions,
change in

the

political balance of

power

in

France that has emerged from the

Algerian crisis, he can afford to
disregard pressure by French in¬
dustrial interests against
adopting
a

more

wards

conciliatory

attitude

to¬

Britain.

Senate

in

a
single
single can¬

a

didate.
No open

out of hand

on

this

one

and passed

bill

providing that the Federal
give money to the
states
$25 for every child of

a

Government

is

neither

offer
This

offer

to buy
is

made

an

any

offer to sell
of these

nor

solicitation

a

of

an

Franklin Ntl. Bank

securities.

Elects Officers
SAN

FRANCISCO, Calif.—James
Sanford, Manager of the Mu¬

A.

nicipal
Trading
Department
of
Blyth & Co., Inc., has been elected
President of
the

Municipal

f§

of

Club

Bond
San

Francisco

for

the

1959He

1960 term.

An¬

succeeds
drew

of

E. Steen

Ameri¬

the

Co.

Trust

can

At the same

time, John

O.

Youngs, R. H.
M

11

o u

Co.,

&

o n

elect¬

was

ed Vice-Presi¬

for teachers' salaries also.

money

It will cost nearly $1 billion a year
for two years. The general belief

is that
be

in operation it would

once

continuing charge.

a

Blocked

in

It

Rules

House

companion

a

for

mittee

the

in passing

better

If

session.

it

part of the

should

succeed

the House it will prob¬
a Presidential veto.

ably receive

third

The
bill

is

the

last

and

important
juvenile de-

so-called

liquency bill. It is against juvenile
delinquency.
Practically every¬
body is. That's all that can be said
for

the

other

bill.

It

would

create

Secy.,

-

James A. Sanford

Belden

S. Gardner, California Municipal
Statistics,
Inc.,
Treasurer.
The
of

Board

Directors

Parsons Treasurer
Of Eurofund
Robert W.

Parsons,

dent

of

been

elected

fund,

Bankers

Inc.,

bureaucracy

ISSUE

February 10, 1960

offering to the hold¬
ers of its
outstanding capital stock
the right to subscribe for
185,000
shares

$5)
of

at $25
one

shares

300,000 Shares

of

its

capital

per

(par

share, at the rate

share

new

held

stock

of

for

each

record

16

Jan.

29,

1960.

•a'

Florida West Coast

Corp.

Subscription warrants evi¬
dencing such rights will expire at
3:30 p.m. on Feb. 19,11960.
Blair
&

Co.

Inc.

derwriters

heads

a

group

of

un¬

which

has agreed to
purchase the unsubscribed shares.

Common Stock

Westheimer Branch

(lc Par)

Price $1.00 per

Share

Company has opened

office

Street

at

125

under

Kenneth E.

North

the

a

quency.

It

branch

Columbus

management

is

according

only

in

of

the

those

securities

offering circular
States

in

which

in compliance with

may
the

be

obtained

undersigned

the securities

from

may

the

undersigned

legally offer, these

Presidential

that

and

he

laws of the

respective States.

MID TOWN SECURITIES CORP.




New York 22, N. Y.

Tel.:

PLaza 9-8452

—

Nicholas

A.

Hornblower, Weeks

BOSTON, Mass,—Dudley Hall has
blower

Street.

connected

&

Weeks,

with

75

cultivate

big

a

but the liberals

complaining

It

is

all

very

well,

the

about it.
liberals

claim, to bask in the warm glow
of
praise from the conservative
press,
but
when
the
elections
around

the

conservatives

will all vote

Republican. The only
way for the Democrats to have
any chance is to be liberal.
Johnson
a

is

not

only

trying to

conservative label off of him

trying to

remove

the pic¬

in

Horn-

Federal

Albuquerque,

N. M., re¬
cently, he and his minions worked
unceasingly to have him accepted
as

a

Westerner.

Regardless of how far he will get
in this he will go to the
convention
with his main strength from
the
South.
He
also
has
plenty of
Western support however. In fact
he is believed to be the
runner-up
to
Senator
Joe

Kennedy.

nominating

The

race is looked upon as

in

been

invest ment

banking

Robert W. Parsons

ers

He-

director;

Trust

Co.

also

is

Lines,

Seatrain

of

he

Bank¬

joined

a

since

when

1922

the

help, to the President

Parsons

Mr.

has

to all
feels

wing of his party.
Last
his conservative leadership

was

out

(Special to The Financial Chronicle)

become

and

ture of a Southerner. At a meet¬
ing of Western Democratic leaders

Goodbody

Suosso is now with
Goodbody &
Co., 125 High Street. He was for¬
merly with Reynolds & Co.

Joins

30 East 60th St.

Mass.

to

and to the country
have been

get

(Special to The Financial Chronicle)

BOSTON,

Majority

candidate,

got

secu¬

ropean

rities.

that

purposes,

has

spe¬

cializes in Eu¬

liberal
year

of

Carpenter.

Now With

company

which

delin¬

Last year he would
not have done this. But now he is
a

the

of

invest ment

Leader Lyndon Johnson voted for

intents

an-

ncement

dent

only cost $5,-

significant

but he is
Copies

would

an

by J. Russell
Forgan, Presi¬

an¬

demonstration

juvenile

Euro-

of

to

n o u

all three bills.

come

LANCASTER, Ohio—Westheimer
&

establish

against

It

The bank is

NEW

to

projects

Vice-Presi¬
Co., has

a

Trust

Treasurer

in the Washington
to assist similar

agency

Thomas

are

Borden, Weeden & Co., Andrew
E. Steen, and Everett D.
Williams,
Stone & Youngberg.

bill.

blocked in the Rules Com¬

was

last

the

is

Committee

dent
and

000,000 annually.

Rights Offering

only by the offering circular.

a

—

school age—not only for construc¬
tion of additional class rooms but

ties
announcement

that's

give

who

agencies in states and municipali¬
This

and

S. F. Bond Club

to

$50,000

as

campaign but not to

other
So

the

powerful job.

very

the light of day is the Federal aid
to education bill.
The Senate got

many,

investment.

provision which prohibits anyone
from

be found which
will satisfy de Gaulle's desire for
close
political union with Ger¬
may

good

a

though he misses the Presi¬
dency he will still be the majority

The second bill not likely to see

formula

is

Even

a

Possibly

a

1

light
will be either given Johnson.

them

called

'

'

•

having come down to him and
Kennedy. -. 1 *
';. a;
:
Kennedy's money does not awe

passed by
session

this

at

objection will be found
this
would not be prepared to antago¬ to
provision but it won't
nize French farmers by admitting endear itself to any Republicans.
Austrian meat and wheat free of The opponents of extending the
act to" primaries feel right strongly
duty/-' ■ -',V"'*-r
on
the subject, particularly the
A Better French Attitude?
Southerners. Speaker of the House
However, the outcome of the Sam Rayburn is very much op¬
that will be
controversy does not depend on posed to it and
the
relative
soundness
or
un¬
enough to bury it in the House.
soundness

'

CARLISLE BARGERON

bills

major

Senate

vetoed by

exports to Australia but

Governments.

the

Rhine

or a

it
Washington
scares,

oppose

is

all

Everybody

since

ministration

other

Market, the British

Germany.

largely responsible for this change
of attitude.
So long
as
it was
widely believed that 1960 would

natural

result of General
be excluded from

and

Common

withdraw

"No trade, no

intransigence, British

Government

improvement in the pros¬
pects of the dollar must have been

dollar

as a

British

be summed up

can

view

The

a

policy
If,

The

NATO.

brief sentence:

a

troops."

support of the United States.

of

of

What

of

in

pact

official
in

Europe is that they now can pro¬
ceed with the blessing and active

series

Western

over

European

European

point

are

regional

Paris

and

existence

Association.

from

considerably
re¬
Indeed the clash between

reservations.

facilitate

and

stiffened

London

rapprochement between the Com¬
mon

attitude

British

whether this

seen

will

the

trade might in given
circumstances jeopardize the very

with certain

intervention

that

cently.

changed once more, this time dis¬
tinctly in favor of European Free
It remains to be

political consequences of an
economic split in Western Europe.
From this point of view it is sig¬

meeting

Paris

policy lies, how¬

in the realization of the pos¬

nificant

both
the

factured

arranagements.

Realization

argued

France that would like to have it

Thursday, February 11, I960

.

will probably never see the

will

Britain

that

•' "

'

v

of day. They
a
slow death

There

preference.

ern

LONDON, England

distinct impression in

the defensive in

on

maintaining Commonwealth pref¬
erence as well as securing West¬

-:'-

a-;

;

the

Britain
wanted - to have it both ways by

against adopting a more conciliatory attitude

industrialist pressures

■

quar¬

face of the accusation that

permit him to disregard French

may

\

BY

The

official

British

ters have been

split in Western Europe. The British reporter believes that de Gaulle's

_

hardly be possible."

Hitherto

.

...Ahead of the News

has

would

prospects and realization of the

.

FROM WASHINGTON

economic argument. Now that
emerged victorious over
the revolt in Algeria he is ex¬
pected to be even more difficult
to negotiate with than before —
though in the words of someone
who is in a position to know, "that
he

possible political and military defense consequences of an economic
success

essentially politically
felt in London that

any

sixes and sevens, Dr. Einzig attributes this to

lessened fears about the dollar's

is

the language which he is
likely to understand than

is

more

Discerning a change in mind for the better in our attitude towards a
union of the European

it

minded

By Paul Einzig

a

and Financial Chronicle

The Commercial

(668)

Inc., a trustee Of New Ydrk Uni¬
versity

Bellevue

Medical

Center,

Wesleyan University, and several
other
educational
and
philan¬
thropic organizations.

Securities Distr's
Formed

on

Coast

LOS

ANGELES, Calif.—Securities
Distributors, Inc., has been formed
with offices at 5657 Wilshire Bou¬

levard

to

engage in a securities
Officers are Robert I.
Higgins,
President;
Thomas
JPadden, Vice-President and Sec¬

business.

retary; and Charles
Treasurer.
All
have
ciated with

W.

Gillies,

"been

asso¬

Hayden, Stone & Co.

D. R. Henderson Opens
POMONA, Calif.—Dead R. Henderson is engaging in a securities
business

from

Vejar Street.

offices

at

1489

Number 5924

191

Volume

.

.

The Commercial

.

The

and

Financial Chronicle

fibers, reactive metals and adhesives keep the industry rocketing
to new sales peaks.

in

France,

During
the
past
decade
the
growth of plastics and petro¬
chemicals has been breathtaking.

into several other Latin American

The Decade of the 60's

Only

E. Alexander,*' President, Sun Chemical Corp.

By Norman

Netv York

i

(669)

10

years

production- of

City

.

,

Loo

doubted its size in the past ten years, the chemical industry
will accelerate that rate in the oncoming ten years, according to
one of the leaders of ihat industry who predicts a banner year for
I960 despite record-high achievements last year.
Mr. Alexander
sees the industry challenged by the problems of a troubled world
and the trial of aobtevement confronting our free enterprise system.
The writer enumerates some of the large areas whioh offer above-

,

.

,?

? m-n

+

Having

14%

is

per

siderable

n establishment of American plants

an

ahrnaH

flS
compound growth

a

There

year.

overcapacity
and the price

is

con-

nf fhP pffppfive

nn^

T

.

.

T

.

ivrr-

Tnhn

wrote: "Growth has been
a

.

of the American

part

potential and the factors that explain the industry's dynamic
growth, and he urges establishment of plants abroad.

tinue

to

be

new

con-

developed

and

in 1960 and in the decade of the

than

take

markets

60's?

In the chemical industry I
have projected a picture of un-

its position in the

the slack.

it has in the past if a more
rapid rate is required to maintain

competitive
the

The population output will probably exceed $40
Kiiiiorv
/Vu
r„

bear fruit.

loi
billion
ion

ovnanHinS.

expanding,

is

ic.J,

15%

or
Or

of the valnp nf all
value of all

industrial production.

living stand¬

Because

the

rising,
productive ac¬

has

tivity is grow-

average

i

equipment and

ards are

w

e

n

g,

n

methods,
materials

of

new

and

The

dustry

mining

output

,

,,

1 9 4 7

In

,

In 1959

Steel strike

the

will

it

to $160 billion and in

come

ago.

nld"*tr^l pr°TUC1n?L

amounted to $105 billion.

despite

,

the whole

years

increase

1960 a

WuSn"

to about$176
one-third of the nation's total output of goods and
services. By 1970 industrial production probably will amount to
more than $260 billion.
This would
imply a compound rate of growth

comprising

of

little

a

coming

4%

less than

decade,

provement

quite

or

over

im-

an

3%

the

the

over

growth

lahsrfTZahdaesaWeVhaven
human and

material

to

expand idsier in the next iu years
cxpdua faster in ine next 10 yeais
han ever before in our history
and to provide more
ices and recreational
more

people

than

-

i

has

goods

known.

This

to

the

is

piomise of the decade of the 60's.
Defines

Firstly,

Chemical

what

do

Industry
mean

we

approximately twice

by

chemical industry in America?
We are
segment
referring to that segment
that produces industrial
organic
and
chemicals, plastic materials
and synthetic
resins, pharmaceutical
products, soaps, detergents and
cosmetics, paints ' printing inks,
_

chemicals

that

I

and

many

These
just men-

have

honed comprise the Federal Trade

Commission category:

Industry

Chemical

and Allied Products.

Figures

for the chemical

P"' 3
"®ana= by T' ,11£h£nnf'nf
™?n°S

maintenance

»v

of Drofk

^"rginJ~™?nsaneve?Iendtag

endmg

if man^eement
8

indus-

ade of

extraordinary

Despite

a

>

.

the

Products

industries

chemical

and

allied

in

and

of

mechanization

Synthetic

detergents

1959

and

detergents

Liquid

—in order to insure the promise of

,

,

m\

certain

Make

"fat"

p0rate

total of $271/k billion, or an
T" over the previous

W'?u

th?

J1,1 volume

up

that much,

S?flts. of the.comical indusafter

tr,
*.V

dimrig

the

challenging

ahead

Take

advantage

c

1011 haa

fa^to

at

as

4

du"t

Srfklai
t0

back
years

of

the

;-

P

•

It is clear that one of the great
challenges that we as ag nation:
face now is our ability to maintain
a

competitive rate of growth, not;

only

the

for

strength in
also

as a

maintenance

considered

that

have

been

emergencv

made.

demonstration to all that

measures

our

continue

to

give

us

the highest

continuing programs standard of living of any country
just like plant safety and fire in the world,

prevention

v

rate for the next decade.

This announcement is neither

review is not into
be all-inclusive, but
enumerates some of the

above

large areas which appear to have
ah0ve-average potential. ; In addi-

to

an

offer to sell,

nor a

solicitation of offers

buy, these units. The offering is made only by the Prospectus.

NEW ISSUE

during the past
comp/nies from. other

incJustries, such^as petrofeum
^to
into

chemical

production

the

This

products.

and
of

entry
^ntrv

continues unabated.

other

Tt

chemical industry?
!

1

ncfl

^

t

m

v*

>

yt

n

/"v v»

n

r\ A1

it

+hat

every

National Equipment

industry.
liiuusuy.

the
tne
a

continu-

growth hi the

8

^tries'lduNngVheei9?0'sdisCbeing
cusiries aunng
Droiected
p

J
Jn

*
or(jer

;; ud.

g

future

capacity to
demand,
the

■

$2,000,000,6% Sinking Fund Subordinated

chemical industry spent approxi-

Debentures,

$1a/2..?

in 1959' A rise of 20% LnJ?apital
outlay is anticipated in 1960.

Series A due

of

the

February 1,1970,

with Common Stock Purchase Warrants attached

Chemical Exports and Imports
What

Rental,

to bave the

this

^

wlha™Me~the""factors""that"'exnla7nafLa^'nvnami^'erowth'of the
^ain the tfYPa^,S growth of the
dynamic
?ia

100%

the

a"Ce 01 me

meet

Factors

of

of
01

uacis

nn

ance

virtually

and

segment
segment

international pic-

v//_

\

ture [n the chemical industry and
^s contribution to profits? Our
chemical exports will total $1V2
billion for the year 1960, a small
improvement over last year's fig-

Competition within the in- ure.
Chemical imports in 1960
itself has precipitated a probably will remain in the $300
rate of technical advance which million range.
makes it necessary for a company
are taking into account the

100,000 shares of Common Stock
($1.

par

value)

(2)

dustry

grow

(3)

other
areas

to

No one can Probability of increasing competistand still.
tion from abroad, the accelerated

or

perish.

industry pro- swing towards self-sufficiency
almost- every and regional markets, and the fact
industry
and thus many that exports will Pjay a slightly
are
available for fruitful smaller role in total U. S. mdus-

The chemical

for

products

research.

Because we are

Offered for sale in 10,000 Units. Each Unit consists of two $100

principal amount of Debentures, each Debenture with attached
Warrant initially exercisable for the purchase of 3.75 shares of
Common Stock at $5. per share to and mcluding January 31, 1963,
and thereafter at $7. per share to and including January 31,1965 (an
aggregate of 7.5 shares per Unit) and 10 shares of Common Stock.

dealing trial output.

* ^

strong

large

Price

km

whfch

tion

_
full

Copies of the Prospectus may be obtained from the undersigned only
in states in which the undersigned, is qualified to act as a dealer in
Prospectus may legally be distributed.

securities and in which the

help lead the indus- Seas division operated as an export
and profitable ex- saies deportment.r Thio «;oc in+pr
This was later

of its

Unit

per

companies ganization changes that have been

substantial resources, depth dictated largely by events abroad.
Mmanaeement
and impressive During-the early period, an over-

with
.

$250

(Plus accro#d interest fronp February 1,1960)

followed by licensing and 'know-

potentials.

against

growing cfp

L°

*

nf

the

funds for

1960 with local companies.

will come from

war

^

^

Ttlen. chemicals ac- internal sourc .
f°r only 2.5% of all in(6) And lastly, but of
By 1929 this fig- importance, breakth.oughs
had

of

troubled world, but

a

"an"8%° r'fitei

hf%M4thisanshaw


7%

cor-

tY,ainr

3

proceeding vigorously with the
establishment of our own plants
in

foreign

countries.

We

^any

have recently opened units

February 11,1960.
.

■

in =—

Company

and
it

have

operated our own plans in Canada
fQr
years and

in new ope

Sgin/ml'tefia's, S^thetic

Burnham

We are now

r

accelerate

ls &01n&

continue at this

and '? exf,fcted
The

has been the entry
decade of

ut it
,a" 7he ,total .indus.tr'aI ^inual programs
wnw"tuthe
fo
thebegiming
cap'Ul programa
on...

•

J'X

P ?e? The industry has a sub- how" agreements with foreign
- (s)
Tn® J'J?Drovides companies, sometimes on our own,
"*'• Chemi- sta" 'f
« 7u?ttr expanbuT more often in partnership

l:^Ulon in.l_960i this

'

fLbiUion in 1959
tefits..°f

X?a5S ^

free enterprise system has the
profU impro^
and cost re- vitality and flexibility to achieve
duction techniques should not be the economic growth which will
ec0n0mies

-

;

.

^

*A„ address by
before
(2) Reexamine
(2) Reexamine research P£°~ National industrialMr, Alexander Board,
research
Conference
P"I New York cny. fan. as. mso.
a c k a g i n g 7dusfry gram-are you spending wisely?growth rate has been running at
twice the Gross National Product,

otner

on sales,, should reach

S2i

.

above-average

an

cosmetics

taxes, °k an oi/.w mta siviiia w
at
rate trv into

of

the

during the

'53 recession does not sneak

a record figure of about wjth synthetic materials, we can _ in speaking
of international
?n kuhon as against $23^4 billion g0 0n combining these building trade, we must adjust our think1958.
I960 gives indication of blocks
to
produce
an
infinite tng to changing situations. During
t,
fanner year. It is estimated numbbr of products. 1
the past 15 years at Sun Chemical
nat
chemical sales will achieve a
Th
industry as a whole has Corp. we have gone through oryea.

that

trimmed

Sum-

inruo

*
,

automatic

ehtZ
packaging field should ex-

nerience

f?r overcapaclty.chronic condition
the ratbe(r
0f
Another reason-

vi(Lg

»

prolonged steel strike,

sales for

increase in

'

great

cnemical industry which
nas aouDiea its size in the past 1U

;

not

as

for

growth and

development.

are

been twice

h

bSToday Trlo^or- ticn' pharmaceuticals, insecticides,
the out!°°k continues bright

afford

dec-

a

30%

a

c0Tn?bll?fd soap-detergent

,

row's demand.^This is one reason

to

climax to

s

they account for about 75%

I

.

to construct, m addition to uncershakedown periods, and con-

ords and

a

1

yield per acre in the U. S. since
1950, largely attributable to new

T
average chemical plant re- tended
Qulres between one to two years sjmpiy

try in 1959 broke all
previous reewere

c a

.

plication.

agricultural

1

prjnting inks and chemicals for

Products

'

.

e m

^to'be omimisfe aboufor3^ detergent bars still have a relastreneth^ in^ an^ broad general
Y
potential*
strengitu 1n any 10.ro;ad, general

miscellaneous categories.

t

there has been

None of the market.

ha"

returns

will be required.
Some lines of action should be
underscored.

that

Speaking, has been successful in

V

The

Russia

g » has been twice as great,

rapidly in keeping with the requirement for more
food production per acre. In fact,

techniques.

of

gins-

.

the future, top management skill

h

c

continue to grow

numerous

None

veare

several years.

of

rate

'

lines, higher capital expenditures
and increased research expenses
will tend to narrow profit mar-

will

Agricultural

fertilizers

(I) The industry spent almost
three-quarters of a billion dollars
in 1959 on research or about 3%
of each sales dollar and over 50%
of the bill will go for work on
new products or new product ap-

1

Competition
in this field is increasing.

continues

0utiines Dynamic Growth

the

„

and forebillion market

1960's.

early

the

several

)JT[y ru5ber>
rubber,

.

run-

level,

a one

the

las?
last

economy
.

ever

serv-

facilities

our

return

been

a

toe

resources

has

1955

in

re- wm gr0w at a slower rate now

in

dec-

output just 12

of that

higher-than-

the

double

pounds,

chemical products. This has
suited

v
f
„
\orman E. ,nexanoer

ade is almost as large as

It

over"-600 " million

casts indicate

and

manufacturing. Them-

over

next

the

a

problem
overcapacity in

to: be

manufacturing
and

rapid rate

products

basic

s

and

of profit in sales

investment.

that of all

S.

U.

plant

more

in

needs

mng at a rate

prospec¬

the

in

satisfactory

on

being.

tive increase

in

a

obsolescence

average margin
to produce a

springing

are

into

industry
higher than

investment

grow ai a reaucea rate in
giow
r.-.*
out
a._
i__a
future.
Shipments last year

the

ar-

"at a"reduced"rate"in tion cost's, lower prices in —" countries" mS^more^DarUcufariv
new
vr,'
lirtpc
hiaV*or nartital f»vrif>nditiirPfi
9t4P
more particularly

abfy*
dUAy
4.u~"

were

chemical

considerably

processes, it

markets

n e w

a

of

way

—

tics is such that

up

"to

so much

In cbhdusioh, I^would like'to life'that we accepf it'almost as a
weak
in many
areas.
ask the question—What do these natural phenomenon
like the
However, the versatility of plas- facts and figures mean to business weather. Can a nation grow faster

plastics
has been

average

tain

<?in

d

the Conference Board, recently

an

*

,

In conclusion, Mr. John S. Sin-

wav<?

of providing the products and jobs
pvnindinf
world
oonnla*°r an exPloding woria Popuia

in
most
structure

.

higher.

(4) Develop and train a strong
Our industries must think of management teamr—the foundation
the gi0bai
market
where the of any successful business.

pounds. This

? °ne for
!?
are

forecasts

and

1965G which
1965, which
of

+0

^

o

pounds

up are even

(3) investigate
t h e
overseas
market, and discover the vvay in

which to participate in its growth.

_

,

Urges investments Abroad

mu.

j

to keep
,

countries.

for example,
polyethylene came

OA

the pace is fast but the'rewards
are nigh—and the risks of failure-

England, Venezuela and
We are currently ne~
gotiating for further expansion

Australia.

ago,

13

*

*

) *

14

But in other business ac-

extent

True Investment Security in
This Year's Stock Market
New York;

Power, Ltd., J

Mining, Smelting &

common

-speculation is running rampant,
fart that A.niGrica is spending

hSi

outlook.

who assume:

(1)

stocks and general
and

complacent belief

ending market rise;

never

a

criticizes

of

(2) leading

those

common

•

during

making the next ten years

and offers pointers on

financially good ones.
able

An

af-

financial

of

student

fairs has said "It is much easier to
make

than

mistakes

serious

times
courts

in

ness
cern

a

con-

conservatism.

were

tum

of this

than

business

mism
t

1929

the

vol¬

investor

Robert M. MacRae

well in-

which

develop

to

reversal

during 1960 of this
happy situation. Full

tinuation of the
nf

Anis'p

prescon-

policy of keeping

fonrrtiirt

part cf one's terms in short-term
bonds
(as a cash
reserve)
and

limiting other holdings to well
protected income-producing securities

obviously

special situations
dent

as

a

of

of

1932

interest

under-valued

seem more

each month passes

pru¬

by.

One

of the most serious prob¬
facing business is the con¬
tinuing increase in operating costs
While the high "gross sales" are
given wide publicity it is often

lems

overlooked that the main purpose
of "investment in business" is to

that

worthless

be

to

coming

lost

were

in

The vast for¬

years.

normal

trace¬

were

ability

of

in-

sound

vestment advice,
There is

between

frightening similarity

a

1929

and
1959.
Today,
again, high grade bonds are available to

these

jt

5%

i

3%

return.

•

.

•

•

the

to

present
this income

Stating

another wav—S 10,000 that in 1950
would yield $300 annually will

today

yield

$500.

By

the

same

token, common stocks that in 1950
through 1955 would yield better
than 5%

only

to lay selling to yield
despite the large and

are

3%

substantial

dividend

the

past

few

increases

would consider

decade.

Though

of

the

income tax rates

profits finally

made,

on

are

re¬

sulting

in
an
ever-decreasing
"profit margin" in all too many
business enterprises. The loss of
foreign markets and the actual
competition of foreign products
imported into this country only
exaggerate

this basic problem. It

investment

these

at

pietely

ques-

the
to

Danger

term

not

growth."

T

In

1950, at the beginning of the
past decade, most common stocks
were
generally considered fairly
risky investments and for this
son

were

5%

rea-

on

On

3%

pneed to yieid weH

over

dividends then being paid,
the other hand, high grade

bonds

available to yield only
because it seemed "advisable
were

period'th'at wal Ct "
skepticism is hard to realize today

WLTjSe.t
stocks which the general

common

BSKRSfra
disappointment3 * 366
disappointment.

and'

.

As

year

after

year
failed to
return to depression conditions,
and
as
company
after

bring

a

company
cient to

creased
to

found

its

income

suffi-

actually increase dividend

com.m°n
in

market

undliitanrtethge'

st<>cks
value

These

"required"

to

and

inin

pay

are

dividends

for "to grow" they must reinvest
all their expected profits in new
new

schemes.

companies

means

not over

(few

A few

probably

five) will become

investments in the 1960-1970

predictions. But just

as the nearly
50 automobile companies that held
some measure of
promise in 1920
have
than

been
five

probable

glamour
no

more

reduced

to

today—so
future

of

stocks
than

a

of

no

will

of

many

1959.

more

be

the

the

This

is

review of history,

but history, like the advice of

our

parents, is seldom followed.

A Feat deal °f the business
beerfdonp h^hn8 rec^nt years kas

&dTheyi^nS &
torya^
s~"B r/d

actual

of

reflection

stock

results

of

shows this
Great publici-

groups

issues

new

secondary
already

and

are

day.

By

almost

every

owe more

measure

today than at

at any time in the past.

The only

exception to this may be in the
stock market where strict Federal
restraint

and

a

„

i0ns

widely held today.

A

.

t\

j

11

l

APPOint U0ll3XCl

by common stocks.

90%

margin

re-

securities has

speculation

to

some

so

-There is

management

1929-1932 lies just

another

an

no

our

continuation.

endless

-almost

current

high prosperity will
plant the seeds for less

itself

The rebuilding

times.

America has done in the Western
World is now returning to us in
tion

on

competi-

of intensifed

the form

consulting

staff,

it

scale

a

have

we

never

Prior

to
becoming
associated
Ebasco,
Mr.
Dollard
was

wjth

president and general manager of
Central Foundry Co. of New York
N

Y., manufacturers of cast iron
fibre
pipe.
Previously, he

and

served

as

and

ager

President, general mana
director of Century

Engineers, Inc. of Burbank, Calif,

seen

loss of gold to foreign accounts i q p "DAn«J
not be reversed unless we A.O.iil. £>(^1X1 H/leCtS

can

change mur spend-thrifty
To,con fame on
£an. only, ?

nearly 75% of the "special
offerings" made during 1959 have
declined—not advanced—in

price.
This
type
of
"liquidation"
is
largely from informed shareholdwho

ers

with

view

must

some

misgivings the current state of the
stock market. An average of some
625
stock
issues
compiled by a
lAiHina

of

most

the

first

Cites

occurred

this

half
Jet

of

ways.

®

i j

few years ago it was
by the airline industry
change from piston engined

a

a

aircraft

planes

so-called

to

jet

mandatory

was

powered

The

partake of the opportuni-

ana

ties1 bVey seem to offer but any
£ea* investment program must
have certain rules of operation.

ft

seemed

thev

IS?

surelv

com-

faceri

a

hmTllat

within

entire
emire

another

year

have romnletelv
nave completely

ton

planes

Yet

in

instead

world
world

or

will

renlareri
replaced the nis
tne pis-

commercial

of

anH
and

so

usage,

reanina

Yet, instead ot reaping larcre re
large rewards for their shareholders ever

mounting costs brought losses in-.
stead of profits
The
gross volof

ume

sales"

was

there

but

profit margin disanneared
i

u

las

the

Doue-

indIg.1" *"»«*ppearea. uoug

has

omitted

entirely common
dividends, and Boeing, only last
month, admitted it faced a rather
gloomy
near-term
future.
By
hindsight it is clear that volume
of

business

is
not enough to inearnings and dividends
The

sure

decline

las

in

from

from

market value of Doug$90 to $38 and Boeing

$60 to $30 shows

that

earn-

_

To

1959

,

a

somewhat

has

investors

been

in

lesser

prosper Igains"

20

abie

of

capital.
There will
always be exceptions to any rule
of this type but to follow the exuse

to Jeach a

also

as

extent

to

common

reaching that price—unless

most

unusual

situation

has

to
shares,

action

anfi

substantial

a

of

nart

the

nm

ana,a suDstantiai part oi tne proCeeds placed

in

income

issues

is

the

lu
to

This
-u
7

build

cuUtv

producing

soundest

wav

? tne soundest way

for

true

investment

e*CIlclI1&e

u

^

mem-

aJ-ern-

vice-chairman in 1956 and 1957.
Hs begaa ^ Wall Street career

in

the

se-

future

a

lake'pllce'under3.tar less 0P4~
far lesPSr0'k5aptiy
Place 4nae,^
,

mistic conditions
than

ness

Say

we

are

dis-

named by the board to
the unexpired term of Joseph F.
Reilly who was elected board

chairman.

Mr. McCormick also announced
the

appointment

Joseph

chairman,

in

general busi-

0XDerienHng

on

actions*

It is often assumed that
only in
of high business volumes

promising "capital

gain

investment"

exist.

Actuallv

often

true

boldness

In

and

onnnrtimities

the

onnosite

oeriods
even

like

greed

is

todav

are

re-

quired to assume the risks necessary to "pay more than a stock
higher

less

ratio

promising

usually
a

sell

for

certain

worth

will

to

true

times

much

can

be

a

value

stocks

less

than

bought then

confidence

reflecting

fuller

aLUUnb>

committee

Gerald

A

?

J.

on
finance,
committee on

Sexton

admissions;

jr

Co.,

&

John

on floor transDver
Dates &

R

Dyer,

*J5;iaia.

sexton, cornrriiuet; u
Harry

Walston

P.

Co

Henriques,

Inc

commit-

'

that

be obtained

in

Brick, Paine, Webber, Jackson &
rurtic

nnmmittpo

on

committee

on

hii si ness

business

exchange's
three
public
were also reappointed,

a

7hey ir!clude Mrs. Mary G RoeblinS»

the

mar-

chairman

of

the

Trenton

Trust Co.; George Rowland Co -

llns- Dean of the New York Unl"
versity Graduate School of Business Administration and William
Zeckendorf of Webb & Knapp.

Eisele <&: Killfif Branch
,

D

„

.

4.

T

0

Elsele & King, Libaire, Stout &
Co>' members of the New York
stock Exchange, announced the
opening of a branch office at 2b
West 47th St., New York. Samuel
Beck

and

Julius

Schreiber

are

,Qnd

mana£ers of the new office, ana
Harry

long periods of high

JohS

n6- T fiUbIiC

measure

future.
After

Bache

governors

periods

profits do

committee;

securities'

James

board

Reilly,

Woolner,

to

When to Pursue Capital Gains

to

F.

5YIIimmee on securities,

The

and

to

chairmen'

of

executive

committee

experiencing to- conduct.

'

price

one-

James R. Dyer, retiring chairman, was

vvaislar} oc^o.,. inc., com ih
nI I
u
^ l_?e_ °" ?Ib! ,ra lonVJobn ?"Jle
program will be ren, G. H. Walker'& Co., commit-

Sometime

fever®f' of this

with

by most mining
though these are
along with oil shares
to "protect
inflation."
The

exchange

an

most unusual situation nas Mann, committee

occurred—the stock should be sold

even

means

by EdExchange

sbo"ld tr£ head the ASE's standing commit-

some

shown

against

than

Upon

issues

the best

self

Bocklet
:

?J°ck we Jlold ahould be sold. Adolph

true value and

considered

rather

speculative

shares.

company

M
,

P"ce' at which each tees:

every

In

was

spe-

announcement

an

T.
McCormick,
president.

rather than the rule is

company

market

stock

more

reasonably near term
earnings usually is not a profit-

is worth" in the hope of
reselling
it later to another buyer at an

poor

jng j-0

times

airlines, grocery chains, railroads,
public utilities and natural gas
A

from

US

disheartening

oil

a

elected vice-chairman

the study of financial history. For

and

largely changed the travel-

hahits of the

\na

to

COme

produc" "speculate "„ T?da,y

Boeing 707 and the Douglas nr s
707 and the
DC-8
have

was

ward

.

"gamble"

their

Charles J- Bocklet,

.

I'IfTioni>r?.^Cti1=roiil wfiLnii cePtions
jet planes was largely limited to to

assSed markefS for

n<?

ab£se g^f^nce bSHn the emi
sound investment principles do ft
» {? the employ of White,
off. To pay
than 15 to Weid & Go.

Industry

realized
that

wish

cialist,

pay

Only

#

VlCe Chairman"

° s.
fr
.'
:
of the American Stock Exchange
R 1S discouraging to see poten- board of governors at the board's
^a] stock market profits go by reorganization meeting, accord-t

during

1959.

Aircraft

rnuld

These rules have

cprvipp

inupctmpnt

™ha3nh07%
and

Bu"-

Qnly a gmaU part q{ ^
indebtedness of America to-

Americans

the rather
rewards"
afThere

TTTL.^
' ^
JuDd-oCO DGiVlCGS

to

compared
-"income

as

meager
forded

that

nrfeeT d° contro1 stock market

ealled .g
"National J*"* $290
lion„
full

10

past

before. This is not neces- and was also President and gennot to be the case.
sarily unsound from the longer eraj manager of Daystrom Furnity has been given to the spec- term standpoint but it will create fure Division of Daystrom, Inc.,
tacular gains of a relatively few new,
and for a time, difficult of 0lean, N. Y.
issues
but
little
is said
of the problems. Our present continuing
;
various

ings—in the final day of reckon-

tladlfficult quirement on listed
"contained"

understand the vast difference




issues

j "f,"fy,^,y Fowtth a"d
dividends even todays optimistic

and

nkonnnm<monf
t

they pretend
considered as "in-

is

vesting for Capital gains and long-

true

of

com-

which

in

areas

operate,

such

Warns

of

new

products and

factors.

a

admitted

electronic and "space
shares, at prices as rare as

age"

jng

prosperous

popular to think
of
1959 as a
year of
ever
and
constantly increasing share prices,

issues—

times

many

is hard to accept the "promises of
out

trust

valuations—the purchase

the

coming glorious Sixties" withreflecting on these sobering

above

is

it

today

buying

touted

the high

far

prices

•

ing

and

Though

many

make

labor costs to gross, the increasing
cost of "money" when borrowed

at

are

During the past ".selling for less than the original
the income available on offering prices, A fairly complete
top grade issues has in¬ computation made recently showed
from

purchase safe and assured income
at rates to 5% all the more allur-

their true worth in terms of pres-

distributions, which

tionable foreign bonds, over capi¬
talized
bank
stocks
or
highly

a profit on the business be¬
handled.
The high ratio of

"investments'

these

if

yield 5%.

creased

The

Scaff, Vice-President in charge of
the firm's management consulting
division.

^en years
x.

abruptly.

ahead
and
of general
real estate will; but
seems equally unreasonable
prove
incompetent as an infla- to assume that 10 years of satistionary hedge. This is especially factory business in itself assures

ent dollars.

to sound analysis in

up

end

has been announced by Harold H.

purchased

and

investments which

cases,

also

basis to assume that

true

about the

able to unsound investment proce¬
dures and not to factors beyond

in

themselves could bring a complete

ently

depths

payment

proved

the

There are, however, factors

continuing

question

tunes

opti¬

this New

o

Year.

the

measured

and high

umes

in
no

proceed

unimpeded, ownership of any normal list of leading common shares

bonds

These

was

few

very

to

feeling of compla-

the American dollar is to

"repayment of principal if due. In

active

expect

return.

even

prompt

easily
slowed,
and
therefore, it is

in 1960's

borrowing against the fu- years have been financially good
ture may have to be repaid under i to most of us and if we are not
conditions -much less
promising too careless now the next 10 years
than is present today. This alone
can be equally successful,
sh0uld make the opportunity to

tnese

well protected by earnings

so

there

not

reasonable

5%

secure

momen¬

the

available at only

highest grade bonds to yield

The

past decade is

when

ago

were

fraction of today's market prices.
In 1929 it was possible to buy

the

develop

cern

and

years

shares

same

while

and

ten

improvi.ig busitheir high con-

ever

an

future

good

Optimism

bad."

care¬

lessness
fear

in

today of

Inflation,

Not

Deflation,

stops" let not our present
.well being and financial progress

This

completely
impossible
for '. any
large section of a people to protect

in the general public's acceptance

will' not

when

present income

"music

I

Upward

is being shown of late by
"new buyers" of common stocks
who believe that by just owning
these shares a never ending increase
in value is assured.
It is

business low; frowns on exceeding 15 to 20 times price-

a

earnings rule;

ment-—above
See

cency

*

—personal, business and govern- of business prosperity
continue forever and

.y

Market

An alarming

The author recommends pursuit of capital gains

is

"buying

the

Belief in

Complacent

>

real estate constitute a hedge against inflation;

it is today, it

as

that

than the selling."

poorer

(3) issues selected for capital gains are preferable to incoming

producing ones.

said

be

can

stock market cites many "sobering factors"

MacRae

Mr.

interest rates,

fnfereL Snines^
in "Mam Street"

tin

"inflationary protected ^ve been bought at pn^ almost
coitain to bring regrets.
The

issues
mcikes it difficult to etc
cept the reasoning that the pres-

Iter

Vancouver

in

Thursday, February 11, 1060

.

.

longer this period of "high prices"
ent level of the bond market - lasts the longer may be the period
These l-ates are but the
thermom- the lowest in 30 years - is due of
discouragement so bound to
of
the
times"
When
the 'entirely to fears of inflation. More follow. There is a children's game
erneH for mdrk Tnd easv richesproperly it seems this is but a re- called "musical chairs" in which
Slhal Lm meZe rather than flection of the current over- the unlucky have no place to sit.
as widespread
spending of the American nation The sweet music from many years
reflected

than it is saving is

more

in the current

Director of Canadian and Collieries Resources. Ltd.,

Current analysis of the

.

market action of most kets such as we have been seeing
stocks normally identi- these past two years many shares

tied

Thp

and

ancouver

couraging

tivities—particularly in real estate

By Robert M. MacRae, Vice-President and Director of Granby
Consolidated

and Financial Chronicle

The Commercial

(670)

ager.

Rosen

is

assistant

man-

.

i

■1.

.

Number 5924

191

Volume

•

.

,

.

.

.

The Commercial and
Financial Chronicle

.

■

.

■■

.

^L?;°gra?.almed at economic Passion of the '30s, is apparently
growth must be

The Promises and Problems
Of "The Golden Sixties''

an

nation s

ing
aepenas

"in

our '

increasing our productivity and

must

-

T,
It

be

.

The Golden Sixties.»
Optimistic forecasts predict an
era
of economic prosperity and
material

is

The

#J

izing the labor force
tical.

oppor¬

be

is ours
to make
this
a decade
of

tunity

But

the

million

t i o n
to
think through
carefully th/e

high

out
of

rate

size of

our

the

in

within

spells

our

the

if

the

of

equal to the
output of the United

increasing

proportion

share

in

standards of housine

of

even

with

50%

be

60's

empty

one

an

the

maintenance

will

ri«?p

home

economy

If we are to achieve a

in total

rise

be

on

ma-

building

1970.

to

strive

first

by

for

its

fulfill¬

acknowledging

frankly

the
difficulties
which
may stand in the
way, and second

by devising policies

for

success-

fully overcoming these barriers.

J^nt

hanges

?

eoal

he

Requisites Must

*5, setting

1960s,

let

our

us

in

.gnomic

(1)

T

High

Labor Force.

maximum

thought

has

>oan nas ™8m
Proco
process of economic
..

.

the '60s

The

would

finding

Utilization

of

In

achieve

the
is

we must have an econS WhAch fully utilizes its labor
enmf'
the average over the
decade,
unemployment
to

the

Tt

nicn

because

of its

-Win***

on

world

view

*

enlarge

base-against which taxes

are

nomic

third

A

and

contribute

to
—

more

the

to

hastens

eco¬

an

price sta¬
important ele¬

ment in

—

explaining the outstandi¬
of such countries as
Germany.

records

'

wider

A

the

public

destructive

understanding
effect

of

in-

'fiation on economic growth can
;iea(} jn the decade ahead to
greater moderation in the price

and
rapid growth ^nd
Exactly the opposite is true.
In an(j

inflation de-

support

relative

that

bility has been

of

long run, price

no

inflation

growth, and there is strong

evidence

which
rapid

step

-tion.

the

lends
that

of business
High prices
which
output result in the end
demands

wage

labor.

reduce

4.0%a

realize, however, that

habits

Incentive to
Save.
The second step in stim¬
ulating a more rapid growth rate
is to step up the volume of saving
Increase

(2)

in
no

the

United

the

There

States.

is

question that in the years since
War II our real capital,

PeC

One

1+?

«rnglfvfS1Vf S 1?P/n-g +kL
But in t e

consisting of factories, machinery,

abie

schools, homes, and other
permanent improvements, could
have

been

increased

much

more

rapidly had the volume of savings permitted.
There are those who still cling
to the theoryl that stepping up the
volume of savings leads to reduced consumer spending, less
employment, and slower growth.
This remnant of economic thought,
held over from the particular conditions

existing in the

great de-

becomes

t

TTnifaH

Unit d

growth rate.
States

roads,

km?

its

the

income

personal

declined
to

proportion

from

13%

only 9% today.

in

of

dispos-

the

1920.

Similarly, the

proportion of our real gross national product devoted to plant
and equipment and to housing has
declined from

17-18%

'SS"rapid

economjc

gProwth

is the promotion

Environment in which competition
m flourish) in which n6
an

group

jn

wield

power.

Qur

socjety is permitted
monopoly

unrestricted

Now more than ever, as

nation becomes economically

QUr

rnmfortawjP.

has

saved

.

_

2 Promote an Environment

bUr

savings
normally ex-

•

y-.

ef-

ability - to save and
to produce capital
goods would
improve.
The result would be a

World

—"thpr

■.%

the

examole

would

hS

wealthier

f

becoming

foOP

thP

complacent

This announcement is

neither

wbich labor, capital and
all, prices respond freely
changing consumer preferences,

above
^

in the '20s

TJ

..

,

.

to about 14%.at present. WhEit ; a"d wagepoic espay o pa
n
has produced this striking change many people are at work, or Z
T
in
.

in our national savings habit?
I think it has been due
n^gress'The exercis^ofm^nopoTy
to a growing fear of inflation. P™fr6SVh"ther by business or
S
monopoly
Creeping inflation, and the ex- power, wneiner
Continued on
pectation

that

it

will

page

continue,

an

offer to sell nor a solicitation of an offer to
only by the Prospectus.

buy any of these securities.
1960

140,000 Shares

Sta-Brite Fluorescent Manufacturing Company
Common Stock
(Par Value 10tf Per Share)

Price

Copies of the Prospectus may

registered

good
challenged
by a hostile and rapidly growing
foreign power, ^ager to surpass
We

$5.00 Per Share

urgency

are

are

in economic

itary might.

or

be obtained only from such of the undersigned
or brokers in securities in this State.

licensed dealers

being

Charles Plohn & Co.
Members

strength and mil

^

-

centere
on rising productivity and^economic growth. I believe it

New York Stock

Exchange

•

American Stock Exchange

I suggest a program

go a

long way

1960's among

Co., Inc.

Netherlands Securities Co., Inc.

f°waardinfi

the most

rewarding

decades we have ever

The first, and

J. A. Winston &

most basic, step in

.

.

« is wrong to assume that price
nniinip^ nisv
n«rt in

February 8,

as

sysf

^.em

.

resolving them. We

this

a

^^Te nled to^omote

Be Solved

longer work things
own
way, in our own

danger
on

no

igrowth md

no

time.

us

for

.

•




an

injustices

effective and accept-

our

represents

ev?i
evil

an

the

onPiPtv

in

evil, however,
d^triiptiw^pffp^'
^tstructive effect

NEW ISSUE

.

requisites of
a
output by

which

«rfm£o

ent

-an

eco¬

'growth in the coming decade is to
improve the effectiveness of our
allow- techniques for controlling infla-

=

or

can

cjear that

Wg must

Inflation.

not
unprecedent d.
experienced them before.

unique,

able ways of

must be
kept down
%
level

of

because

which it produces between differ-

(3) Intensify Public Opposition
to

problems facing us are

the

growth, it

partly

golden?

the

order to

our
un-

Amerthrough the

Urgent Problems to

for

economic

on

widelv

^ until the average

^

in

inij;} billion national

1970.

effect

more

achieved

certainly will not

It

tices.

first

sights

its

is

problem

The offer is made

have

Be Met

consider

would

if

-

rate

ef^

more

the

well

government

in

There is, however, a new

.

Basic

growth

meeting

This is a goal well

A" h

g°a

increase
a

productiv ty
a

production, we

40%

f

"

a

us

depreciation

-

will be

Sood%&££?^is
<ierf.loo<?- mnation is

growth.

in^n

fur¬

golden

the

and

our

new

are

«rowth

in

costs-

visions.

convinced
a rising
c?nv}L -;- himself that nrnHllpprl
r.
•
standard of
s P
only through rising productivity,
and education which dwan
which'dwarf any—°
Bearing in mind the central
thing we have seen so far.
significance of rising Productivity
This then is the
.bright side of for the achievement of,ou
the picture—the
potential of the nomic goals, what are some of the
dynamic decade ahead. It is now problems we must solve to maxe
ment,

equipment

in

inflation

of

pro¬

growth.

in output per
The real growth capac-

manhour.

yearly rate of 1,600,000
these
Along with these
material
accomplishments*'
accomplish™0"**"
the
decade ahead holds
promise of
•nee
achievements in science, health

to

spending, enhance
and
strengthen

Japan, which have already *
Consider
adopted such depreciation pro-. fect of

An increase

of

lty

^anaaias 01 nousmg will rise ma

UP

new

ductivity,
nomic

and

high percentage of employ¬

a

(3)

s&.°'oS

reaching
units by

spending is actually increased because of the rise in
creased because of the rise in

fective

we

And

about

of

force

our

will

which

t
terially,

rhan-

and

savea anJ* c?an1

believe

billion

$575 billion.

decline

indeed

manhour.

growing

host

a

of

many

of

this

Americans

command

products,

saved

•,

own

.^use ln lower profits. Feather-bedding,

ment.

$6,500 today.
poverty will at last be in sight as

to

being
+

sumer

the

during the
coming decade can be realized
output will mean that real aver¬
only if we are successful in stepage family
income will exceed
ping up the advance in produc$8,500 in 1970, compared with just
tivity,"that is, in unit out'put per
under
An end to

able

•

employment

economic

our

labor

the

$750 billion in national

prosperity.

of

Permanent accelerated de-

ances.

plans
for
achieving
it
rested solely on the growth in the

Italy combined.

families

rising

computing

a

clear, therefore, that

promise

would

capabilities.
in

is

It

ther.

Kingdom, France, Germany, and

an

is

Jr.

neled into capital goods the total
volume of income and of con-

I

ng

circumstances,

by

would

income

economy

A rise to

greater proportion of in-

a

con-

protecting their

capital plant.

our
(

West

1.5% per
year, real average family income
would decline, and real per capita

that

sense

these

rise

would

billion

increase

an

total present

though

inter¬

more

purchasing power, more intent on
current consumption, than with
providing the savings indispensr
dble for enlarging and improving

plant and equipment and to allow

though total national output

even

This growth of $250 billion

it

equipment,
housing, and other real capital
goods, and these capital expenditures, in turn, create additional
employments and incomes. Even

in speculation,

cerned with

to, save,

more

*

Under

higher than our present output—
an
increase of
50%
in just 10
conservative

levels,

'

and

goods

$250

present

in 1970 would be only

purchasing
power.
A
decade
hence, it is quite possible that we

Yet

expend-

and

ested

incentive

become

eraase,.the Treasury's actual tax it distorts the incentives to work, makework practices, and inflar
cP^io^ In
instance we to innovate, and to invest By tionary wage demands reduce
since the average work week is
2„° £1^! ^>TtPre? ,ca"slnS a wasteful use of our -productivity which is the ultimate
likely to fall by two hours or bv ^
Britain, Canada, West Ger- labor and capital, m fact of all source from which all increases
5%, the resulting national'output ™a"?'
our resources' u ac*s as a brake in real wa§es must comeItaly, Sweden, Argentina, Chile, 0n economic

Side of the Picture

it is well

spending,

the' labor We by' itself

3^10^0°sfromnow

$750 billion, in dollars of today's

is

is

plant

on

consumer

depreciation

of

possible

make

the

Consumers

for

87

more

this

wouidproduceImlv a¥(500

By 1970, the nation's output can
exceed
the
staggering
sum
of

turning

at

growth in

growth, and of
extraordinary
achievement
in
science and technology.

years.

total

20%

or

Although

15

employment, incomes, and pro- .the'production of canital goods
ductivity.
The
effect of more ;which constitute the basic requi¬
•
£
,
savings and larger capital ex- site for rapid growth. An exampenditures is to increase employ- -ination of the postwar history of
heavy ment,
raise incomes,
stimulate the principal countries of the

in

even

do
reduction in spending,

redirection

a

Savings

modern

savings

economv

remain

economic

a

By 1970,

will

rapid

more

will be nothing more than an idle
Even
dream.
if hours of work

Carrol M. Shanks

promise of becoming years of unparalleled prosperity of rapid

be

persons,

today.

a

ahead.
The 1960's

lie

services at

force

the

of

however,

o? workersr it SS clear that^Tvve fmeci.aUor^ as wel1 as an allowance • 1 disagree completely with the
relv^on this factor alone the goat +°f
c0
' would n°t reduce view that; creeping infiation is the
of
$750 billion
°taJ Treasury revenues.' On the inevitable accompaniment of full
$/5U billion economy bv 1970
by fo70
contrary, a more rapid rate of

problems that

will

workmg

than

g a

Bright

the labor force itself.

in

our

tunity is ours,
so is the obli-

give

.

,

as

leader

equipment, I recommend that we
amend our tax laws to permit

A

greater contribution to
output will come from the growth

oppor¬

nation which

To stimulate the installation of
the most modern machinery and

(2) Growth in the Labor Force

accomplish¬

a

goods lines,

negligible.

Itself.

industrial

eign- competition

so

.....

ment.

the prac-

at

the

-

for

the

in

money,

mean a

come
..

difficult

that point is being brought home
to us both by more rapid growth
rates in many foreign countries
and by increasing effective for-

that growth
this factor will

maximum,
thereafter from

abundance.

i

is

.to_ belleye that its capital
plant is becoming outmoded, yet
plant is becomipg outmoded, yet

very little of the economic growth
which is our goal. By the middle
of I960, we will already be util-

heralded as

risk

and

world

'

,

we

equipment.

sacrificed in order to achieve full employment and economic growth.
'
The years ahead have been widely this requisite alone will deliver
,

not

itures

enter-

taking. But most directly and immediately it depends on the quantny and quality of our capital

economic growth

with those who argue that price stability

and disagrees

of

economy,

but

free

innovation

encourage

insurance head audits the difficulties standing
in the way of tomorrow's bright economic promise of $750 billion
real GNP in 1970, or an average family income of $8,500 instead
of today's $6,500. The business leader offers a five point prescriptive
guide centered on

are normally hoarded as inactive
piles

.destroys

the notion that savings

on

of

environment

prise, and the extent to which

good time,"

own

many
in

and

based

education, our
and morality,

our

own way,

upon

plant

Productivity
factors—our

standards of health

Company, Newark, New Jersey
Warning we can no longer work things out in our

expansion, and

im6 of the
Pa™cularly a modernizauon,

Carrol M. Shanks,* President, The Prudential Insurance

By

(671)

.

Bruno-Lenchner, Inc.

27

16

The Commercial and Financial Chronicle

(672)

THE MARKET

AND YOU

...

lack of interest in the

.

.

.

Thursday, February 11, 1960

PUBLIC UTILITY

parent's

stock.

WALLACE STREETS

BY

Chemstrand now, however,

Stocks

found

this

support

week when the industrial

^TT'r^TTT^T'T^TT^i^l

UiJU U 1 vlX XiliU
making raDid progress to
rapid oroffress to
kjl-JvJ Avl i XXJkJ BY OWEN ELY
help the parent company
of the independents, that too along. Monsanto's results last
will call for a reappraisal.
year included record sales and
*
*
*
profits. Where times-earnings
raciric Lighting Corporation
Rails, with a strike threat
Pacific Lighting, the largest retail budget will be for construction of
still hovering over them, did the chemical section, ana gag distributing system in the two transmission lines
inCalilittle spectacular although the lately have been even higher united States, serves a popula- fornia to receive delivery of outsection did fight the downhill than normal, Monsanto is stillition
of
7,700,000
in
southern of-state gas. The new pipeline
pull more times than not. But available at a moderate 18S^°|tSes PllSSb'to'bi? comSd^
it didn't stop their index from times which is modest by now
approximate
$307 million. summer, it is understood with
posting new 1960 lows in tune chemical yardsticks. Monsan- Tbe area served includes rich intrastate supplies limited, out-ofwith the industrial average, to is not a fixture on any farm areas and oil producing dis- state deliveries are expected to
■■

av-

is

making

#

worked down to
l a S t September
when the selling inspired by
the steel strike finally tapered
erage had
the low of

off

The

est

resistance

tortin!f^nnd

was

area

,

613-616 and the low-

around

hourly posting
*

While

the

614.58.

was

*

*

rebound

from

fairly impres- But it was still holding grimly high-yield charts,
sive, the successful test of the above the low of last Novem- earnings for internal purposes
that

point

#

was

low did little to clear away all
the clouds hanging over the
Street. For

ber at which time it posted its and larding its dividend with
1959 low.

thilg, volume

one

a

;

*%*

.

2/t* stock payment. Some

** hoping that in time with

*

6^dX7e^le
misceiianeous.

The

;

company

and

1%

yea's

has enjoyed

few

Of the 1958 gas supply, El Paso

_

ex-

contributed

76%

and

California

^
s^far ^«venu^ costs averaged 25.90
24% Gas purchase
are concerned—tney nave iripiea produce^
Mcf

cu._ni,,
Louisville &
Nashville, a rising earnings, the cash will
per
and
dropped off rather sharply
derives about an be increased
•'
in the past decade However, this the seiling price 62.690 El Paso
immediately after the initial quality roaa, aerives aoout an ue mtiedseu.
gajn ls due
^ part to higher rates is now delivering nearly l.i bilelation. And since the major eighth of its revenues from
"i^cictSna"
—in the period 1953-58 the aver- lion cf to Pacific Lighting and
ailment of the market so far traffic
connected with
the
Kesistmg
issue
age rate paid by consumers in- this
will
be
,

.

progressively

has been the lack of steel industry and as a result
Among the issues that have
buyers, the volume indications was more seriously hit by the been showing superior resist- being retarded by warm weather,
were
being watched rather strike than other carriers, ance to the market turndown, Saturation in gas house-heating is
closely. Up to here the inroads Atnd tha' made it something and hence are getting concen- around 99% so that Pacific Lightthis year

made

perameteriIcrebaUdTesrthanS6%

the list have been

on

on

of

a

leading candidate for

a

trated attention from the

mar-

'"^

factor

enjoyed

light volume and any indicaexpanded liquidation or widespread
buying

8,ood earnings improvement ket analysts, is Universal Oil °anies uke Northern
"Vs Year to. several analysts. Products. The stock was a and Brooklyn Union

could point the future

°f tbe better yields

tion of either

of

the

market

for

course

the

next

several weeks.

1!hnnds ^appointment for

a 10 n§

on bonds time after it was first sold
stocks, is L. & N s re- publicly, sagging below the
turn that runs close to 7%.
offering price and showing

than

on

llttle lntention of

Blue Chips and Space-Agers
In its

daily swings, the marl^et leaders—both up and
down

still the

were

—

solid

blue

chips of the list, such as
Pont, Owens Glass, East-

du

Kodak

man

face

in

and,

the

group,

Tobacco. Steels

buoyant,

new

a

American

were

far from

when the

even

all market

for

over-

inclined to do

was

better.

Industry reports that
were being filled
far
more
swiftly than had
been expected
put the high
operating rate of the steel
mills in
jeopardy. And few
seemed
willing to take on;
the

pipelines

commitments in

steels

•

+

operating rate

a

if

the
4-

4-

~4

due to start

is

downhill.

and

age

Chitting Interest

electric

to

oe

able

were

to

took

issues

their

can

Steel

in

interest

the smaller

keep pace with the blue chips
generally. Nevertheless, some
had contrary moods
and, like
Texas Instruments, even to
counter in
a
strong market
with sour
price action The
senior

shiftin<y |„tp,W in

The

issues in rocketry ers

electronics

,

in

■■

steels

smiling lowara

specialty produc-

where the profits reports
be

more

volatile although

Motors

were

in

American
American

fn

fhe protits
tne. nmfiTc

.

ni

will

woit

Pe^ted

covered

with

for

room

"
in

f

*

the

and

one

has

over

ore

thyat

reserves

at

of the

Big Three

SeTnTs3' ZdZ7i PrtfUa"

SOme

and

in-•

ing

Moreover, the problem
regulatory lag is increased by
power.

the.

fact

that

one

subsidiary,

swings

on

as

a

Hpfenqiv^

MQtnr

i

n

Paso Natural Gas

high rating in

,

so

far this

either

way
in
market rather
more

prom-

market letters

has

srem

varied

other
rates

given a

on

" 1 CUI'
a
large-

expansion

Sing of the other more neg- lines,

lected chemicals would

F1

'

many of the
The comnanv's

^ ^
rently working
scale

ifpm

was

gas

of

program.
stockholding

and,

as

a

.matter

i"terestr

of

fact

a

of

It
in

companies and nine
pipe

average

weather

condi-

dividends

is

tax

free

other ven" this edition should

regulatory lag, it is hard

to

esti-

mate. Based on "end of period"
net pr°Perty> only 4.7% was

ended'june

and

persist

.

v

^

70.

In

1950

Jater

Tey

years

between

$2.00

have

and

earnings of $3.03

fluctuated

$2.84

were

(while

reported by

^

X.*Q„?ftandin
is earned-

:

Pacific
S1 50

Lighting's

dividend

rate

-traditional
raised to

was

?2 in 1954' to $2,2° in 1958} a!ld

crice'4r,fC

vTetk

neariy 5% and sens at 176 times
estimated

1959

earnings of $2.75.

N. Y. Security Analysts
Education Program
^ ^

Analysts has opened its 1960 educational program for its members
with ? basic- orientation course

consumer finance

Companies
co.mpab*es-

.

Raymond

Hammell,

W.

the

of

man

chair-

Education

Society's

Committee, in an announcement to
members, stated that the lectuies

a^ being given by 10 officers^of
ciffc Finance
The lectures
presented

under

are

course

the

the first

continuing

Society's

'"auguratcd
■

jointly-

be conducted

to

1958.

EBSCO Branch

HUNTSVLLE
vestment

Ada

In-,

—>EBSCO

Services

has

Inc.

jr

f!pnp™l

&

qhare

DENVER, Colo.-General Bond &

$h4'68?'000 additional
based on
7% rate of

Sam C.PandoIfo III is

a

revenue

return; and

A
lnnmin

thT i?

centlv

nhn<i

Te

Share Co.

has

been

of the firm.

formed

a

with

principal
Y
;

Fo'm Universal Sees.

SPR^GnE^'in^ersa.

**»

ThJ

.

re"i

Securities Corporation is engaging
in a securities business from of-

nearly WnitfS ^cwTon- MSTVS

u




by

offices at 933 South Euclid Way to
engage in a securities business.

in

in

rate

30,1959 (as computed by Standard
& Poor). Last fall the Gas Supply
ComPany hied for an increase of

hL * profit p-ctures. tures to diversify its products, over the next few years,.The sbuction in , i960, .the largest
be
overly cheery. If ^>ome of t h e s e, like Chemuiy
ulUYiy.
II
Some OI i n
exemption covered four-fifth* !I£oun.Un lts hlstory (only about
four-fifths ^Cr,
n
b
hluiy toniy aDoul
the, ,«cC«d ,t the .xp.ns.
strand, took Ume .» get going »,

won't
wont

dividend

♦

been getting its the other two subsidiaries filed
boosted, and seems recently for increases. These in-

large portion

and

™as ea™rd

tions. To what extent the failure opened a branch office at 2323
rea fu
ese ,re^urns was, due Brandon Street, Southwest under
weather, and how much to the direction of Henry C. Jones,

has

a

fact0^

r

Interesting Defensive Item

earn_

considerable

irregularity due to weather

doubt

regarding
regulatory lag and the true earn-

assumed

products El Paso is that

more

jn

vestors

could

"'5? tote-Mo^nto-Rhas a 50% headed toward a good year
Sma'J V6reiSt and acrilan
succeed its nylon " ,Cherastrand with 1960. One added advantage

the expense of their

of applications for rate -increases,

which keep stockholders

other

th2
cars

as

str0ng points, notably control

pQC.

*

Senior chemicals

the wide

.U

growth

a

o r

to less than 1

gut the company has merit

pos-

improvement

iiiiHiuvcuieiH.

r**-,

lare

f

RoimnMc

share

shown

seasons

alu^inum

activity roster but they made tune with the
no overall
progress. The dis- conspicuous. The
nnsifinn

Metals

/m

Lighting,s

have

earnings nearly doubled to $2.94,

are .ex- the adto makers. It is the only [ntLrate^n™ eSf r Svefin
t0. f7*50 or aluminum company that does. 1957-58, but these were based

more

up

looking

eturn on Reynolds
down
_»

ings

luJkheJoUp®2ather conditions in
t^jalt to heating
and

|fie^ ^nrat

btudeMotorflnd^ud'e mTr e* ^5^ groups with
volatile Jo^wlh

oaKer issues were well

those

ti,0 rot,im

1i'

daiiy

company failed to cover the $1.50

£rttus year which

sible

and

.
*/r

cf

pacfflc

Smdltow hea'tfng™3"
6
l'*

in the majors last for 75 years at the cur.
th"n resells it to the
vvas
mgnly iavorea in ren^ production rate. It has other two subsidiaries which act
spots. The reasons are that it been notable in opening new as retaiI distributors.
is reasonably priced at around markets,
particularly that of
'n.,the.ory- Pacifi,c. Lighting's
nine times estimated earnings selli
molten
t0

much favor

Motors

for

not

Republic Steel

,

apart from mild seesawing in

Gas

lion

Gas, which

an

cues
directly from the better, which, again, leaves
quality items.
the $3 dividend rate well

Motors Active

Illinois

f^^^ightto

stemea
*

Space

com-

doing better, the present season does not seem
This, in turn, brought in dis- too auspicious, although statistics
earnings trim last vear and is appointed liquidation. But on degree days are not yet availlikely to bounce back well this this important research and
fly efr0m rI?0l4 Yfn
to only
year. The line has one of the development
organization ii327 in 1958 —the lowest since
fatter cash positions of any seems to have come in for 1940 and 25% below a 20-year
railroad. Its dividend payout some institutional attention average.
has been conservative, lately to be able to reverse its
In
addition to
the
erratic
amounting to only about a market pattern so convincing^ "L.^ t^man^eempntof
third of 1958 earnings and ly. Projections for this year's Pacific Lighting has to
worry
well under half of last year's earnings are encouraging, about maintaining rates at an
results. So it is a dividend- particularly on the promise of adequate level and obtaining an
mprovement
candidate
o n booming business generally,
g^lng needs °California^gas
any good pickup in earnings.
*
*
*
utilities, unlike those in New York
Of the little more than three
Aluminums have also had and some other states, have not
million s h a r e s outstanding, their followers,
obviously, but
increase
some 23% are not available to they weren't immune to sinkthrincreases irPosed by thei.
the market since they are ing markets at times. But resuppliers
(due to
higher
field
held by Union Pacific.
bounds were good. They are prices). This has involved a series
Illinois Central also had

Lead

by

in-

creased t0 16 bim°" during the
^jjj' initially ^supply
lyS o' ^^toil0

M,

President;

Arthur

Vice-President;

jSSCTwJSjT SXtT SUntTgi SgSffi --

R.«-Thomasj

Oneita

poweu,
Powell,

«• L. Thomas,

Volume

Number 5924

191

...

The Commercial

and Financial Chronicle

(673)

17

ANOTHER WAY
RCA SERVES

YOU THROUGH

ELECTRONICS

mm

i,
'

*i

Wmk

New

insight into sunspots—This photograph is one of four hundred of the sharpest ever taken
photos may hold the key to magnetic disturbances on
earth. The Office of Naval Research and the National Science Foundation support this basic research.

of sun's surface: Scientists believe sunspot

■■

Going up for "good seeing"—Unmanned balloon leaves to carry aloft first remote-controlled
observatory. From its vantage point in the stratosphere, "Project Stratoscope achieved first
undistorted sharp photos of sun's surface. Stratoscope is a continuing project.
REPORTS

RCA

TO

THE

Exact

of sun's surface—The small

area

tion of the

area

RCA devised its

rectangle indicated here pinpoints the size and posi¬

and focusing on precise sunspots became possible wheti
airborne television and separate radio controls to focus and snap the cameras*

shown above: Locating

NATION:

REMARKABLE NEW PHOTOS UNLOCK MYSTERIES OF SUN'S SURFACE
RCA David Sarnoff Research

stratosphere,
photos of sun's surface ever taken

Special RCA Television, operating from

helps get sharpest

Since Galileo built the world's first

telescope,

man

the mysteries
the most

has sought to probe

of the solar system. Yet

powerful observatories on
earth have been
hampered by the
barrier of the earth's atmosphere.
Even under

"perfect" viewing condi¬

tions, light diffusion and the turbulence
of

unevenly heated air result in what
seeing."

astronomers call "bad

A few
years ago

the Princeton Uni¬

versity Observatory conceived the idea




of sending

aloft

a

balloon containing

Suspended in the
quiet reaches of the stratosphere it
would probe the secrets of the sun

a

telescope-camera.

without

atmospheric interference.

Stratoscope" was born
under the sponsorship of the Office of
Nqval Research. After many months of
So

"Project

preparation, a floating observatoiy
soared high above the earth. kUn-

could take only
pictures. As a result, the

manned, however, it

hit-or-miss

was

called upon to
RCA

miles

into

camera,

was

sent up

the stratosphere.

this time it carried

television

sharp and clear—but of the exact
science wished to probe.
This close look

ELECTRONIC ASSIST

Then the balloon
15

Center

help.

an

ing

again

But

MOST

TRUSTED NAME IN

at

sunspots, erupt¬

the sun's surface

may

mysteries of magnetic dis¬

turbances which affect navigation and

ingenious RCA

disrupt long-range communications.

system—including airborne

transmitter, antenna units and

ground receivers which showed ex¬
actly what the telescope was seeing
aloft. It was then a simple matter for

"Project Stratoscope" is another ex¬
ample of RCA leadership in advanced
electronics.

Through quality and
dependability in performance, RCA

ground observers to aim, focus, and
control the photography by means of

Victor has
name

a

on

unlock the

separate
Result:

radio control system.

ELECTRONICS

RADIO

become the

in television.

television sets

than any

pictures that are not only
•

THE

areas

areas

are

most

trusted

Today, RCA Victor
in far

more

homes

other make.
I

CORPORATION

OF AMERICA

18

which he says are omitted from elementary texts, implicit
said to exist in texts, and other shortcomings. Concerned

quences
biases

the housewife by the food packag¬

of our real economic growth and lack of savings-flow
investments, Prof. Sharron relates this to the amount of economic

about the pace

■■T*

for

economics pro-

Several groups of

given opportunities to
firms -during part of their
+u~-

fessors

visit

are

the Interstate Commerce Commis¬

of

Cleveland

justify
rates

and their

firms

visited.

were

No

attempt was made to indoctrinate

with

particular point

any

Possible differences be¬

view.

tween textbook

economics and in¬

dustry practice
suggested.

not

were

plays a delicate
and important role in contributing
to
the
optimism and favorable
business climate of the community
without
encouraging speculative
greed and overly expansive and
investments.

venturous

7.

Federal

even

*,

contributing

the

to

tragedy of our growing collectiv¬
ism stem in part

from weaknesses
of omission, more than of commission, in elementary economic textbooks. Here, for example, are the

in such texts:
1.

and

found

often

not

visited

obtained there¬
expressed

ideas

important
from

firm

each

of

..

Bank

Reserve

investment

of

Quently,

of

in

nopoly

can

and

despite

erated
labor

2.

the

demand

labor

of

lating
and

even

the

for

when

of

accel¬

capital for

capital is

scarce.

Roadway Express:

the security

if

of capital

dis¬

are

these other factors.

Cleveland

Electric

Illuminat-

competitive, expanding sales and reducing costs
so that the average kwh. cost has
been

decreasing

creasing,

rather

below

even

than

the

in¬

cost

of

the

community-owned generating
plants.
9.

Warner & Swasey Company:

the typical

machine tool

is characterized by
prince-and-pauper business fluc¬
tuations, practice increasingly in¬
company

dicates

considerable

stabilization

through product diversifi¬

latter.

even

more

stabilization

agement.
Rubber Company:

shorter work-week

employment through flexibility
of job assignments, made possible
by mutually advantageous cooperation

10.

between

or

less

In

fact, it will have the opposite
spreading the work when
it makes possible "moon-lighting"
effect of

the

holding

of

two

different

jobs.
4.

Ferro

Corporation:

Where
an

only a few firms exist in
industry, potential firms are

kept

out

failings

often

well

as

because
as

of

their

because of the

exercise
of
market
competitive
advantages by the existing firms,
who should not be blamed for the
lack of new entrants and the bene¬

fits which would result from them.
For example, in this

industry

ducing enameling materials,
entrants
find

in

that

different

Jerent
ihL

••know-how" in
Know-how
in

govern-

tive

applies to business and not
government, without realizing

to

that

precisely for this

vate

pri¬

reason

would tend to
responsible than public
management.
management

more

Economists

rp.lrrh
research




facilities
a

hu¬

more

are

theoretical
all

is

focus

individual

firm.

the

on

rather

economy

their

because

managers

than

This

the

on

difference

points of view often make the
cavalier

economist

about

business

of

in-

the

despite the fact that
have legal title to the

he

Here

uses.

we

contractor-subcontractor
There

a

have

type
rela¬

jobs to be done
job-descriptions to
haggle about. Workers inspect and
reject their output on the honor
system because they are convinced
rather

of

even

closely

competitive firms.
Private

profit

investments

ity

~

for

make

can

Author-

cumulative

a

of waste, inefficiency and

process

eroding away indi¬
vidual dignity and freedom and
placing a minority in jeopardy as
frustration,

is

not

security,

standard

of

re¬

and

status

living

rising

are

politi¬

as

cians in search of votes.

provides

management

and,

However,
permanent

therefore, real betterment
of
expanded wealth, while

out

politicians

usually

provide

only

temporary betterment at the expense of others or of future wealth
and income. ;
(6)

Irrational individual behavbe corrected

can

by group be-

be just,as irrational, and with
greatly compounded damaging effects, since group behavior is all

are

too often

the behavior of individ-

(7) The seeds of totalitarian
government rest in management
rather

than

in

labor.

However,

totalitarian government is a

mass

natural

..

.

pushing

towards

des-

..

Management and labor

enemies

are

competing

for

earn twice the rates of pay shares of the national product.
prevailing in other producers of This overlooks the fact that the
competing products.
national product increases for both

IV

only with the cooperation of both.
(9)

*

banning of Sun-

COlpc

4 U

t

•

^

cialists

can
£

~

*

A

j.

Economists and other
provide

magic

iL.

_

11

•

spepre-

_

x*

countrie,s dfly sales would, put this company scriptions for the proper allocation
Period, out of business just as either of productive resources for the
and

de-

un»°n-imposed
posed

or government-im- betterment of society.

restrictions

can

and

have

items

particular

no

matter

how

-

However,

well-meaning

unsubstantiated by fact.
Many basic economic texts point
if

out

that

less

than

the

the

result will be
inventories
tion

in

an

of

of

funds

accumulation of

employment

texts

reduc¬

a

and

income.

usually do not elabo¬

impression

and

of

quantified

is

goods, the

generally and

further

rate

flow

flow

hence

give the
existence of

the

relationships,

wherein

doing

a specific thing can assure
the synchronization of the flow of

goods and the flow of money. In¬
lack of synchronization in

ternal

particular
relations

produced.

cost-price

overlooked.

texts

.Some

and

areas
are

even

suggest

Similarly, they do not have reve¬

since excessive individual

nue'data for successive batches of

that

reflect greed,

particular items sold, giving effect
in

incremental

the

of

revenue

price cuts associated with greater

Consequently,

•

exist

fit

to

the data
mental

the

not

do

construct

of

marginal analysis, which in the
case of profit maximization refers
to

expanding production until the
dollar profit is at its greatest pos¬
sible

where unit

aggregate,

pro¬

duction costs have turned upward
above
their lowest point.
As a
of

matter

did

fact,
exist, it is

tion

would

if such data
that produc¬

even
rare

be

into

extended

the

of increasing costs because

range

declining

unit

than

variable

fixed

costs

costs,

and

often

rising

offset

unit

also

because

capacity is ample for achieving
market share which the firm

siders

to

consistent

be

a

con¬

with

the

security of other competitors and

employees.
variance

The
and

practice

between

far

as

theory
profit

as

maximization is concerned should
not

that the mental con¬
useful intellectual

suggest

structs

not

are

These

tools.

tools

initiative and

the

The fact that qualifying
factors
exist
for

manager.
and

enhance

self-reliance of the

limiting

and

perhaps

reaching

basis for

denying the existence
of strong tendencies to produce as
much
as
possible at the lowest
no

possible cost—which most people
will agree is in the public interest.

a

Many economic textbooks imply
monopolistic restriction of out¬

put

at

artificially ' maintained

prices,

conclusion

a

largely

from

failing

to

istered

wages

reached

recognize
are

models,

that

often

admin¬

the

con¬

tributing factor tq the restriction
of output at high product
prices.
Another
confusing impression
given by texts along this line can
be

seen

from the presentations on

the

theory of the marginal pro¬
ductivity of labor. The implication
with

labor

students

some

returns.
to

under

of

labor

improvements

the heading of

of

in

labor

productivity. One reason, perhaps,
for
giving
capital
a
role
of
secondary importance is the fre¬
quent implication that the ability
labor to
withdraw from
the

of

production process makes possible
its increased earnings, without ex¬

plaining that the productivity of
capital is in fact of primary rather
than

secondary

importance.

This

failure to attribute labor

earnings
precisely to capital productivity is
partly responsible, perhaps, for
the

many

ties

and

featherbedding

restrictions

imposed

labor with the effect of
the

full

capacity

of

rigidi¬

by

curtailing
capital

to

it does.

as

forts to tax

Government efand make trans¬

savers

fer payments to so-called spenders

encouraged.

are

A low propensity

to consume is considered

the

to

injurious
welfare and a high

public

propensity to

is consid¬

consume

desirable.

ered

More

than

this,

have the implication that mac¬
roeconomics is better than micro¬

we

economics.
The

be

fallacy of this reasoning can
from a more precise state¬

seen

ment

of
the
basic
principle of
Keynes: that the so-called excess

of intended

savings

over

investment will result in
in

income,

savings,
savings,
tended

and

also

intended
a

of

decline

intended

these become actual
the level of the in¬

as

to

investment.

This principle
perhaps. However, the
policy implication that it is due to
is

correct

savings is incorrect. It

excess

be due

to

An

cost-price

a

decline

a

in

profit

insufficiency

may

squeeze

or

expectations.

of

intended in¬
interpreted

vestment should not be
to

be

a
surplus of intended sav¬
when carrying out policy,
although the interpretation may
be valid in theory.

ings

The result of incorrect
an

policy is

aggravation rather than

rection

of

cor¬

a

the

cost-price squeeze
are
discouraged., In¬

as
savings
creasing purchasing power at the
expense of investment actually re¬

sults in

less employment and less

than would oth¬
beyond the shortthe great depression should

purchasing
erwise

power

obtain

run, as

to

serve

still

theoretical

savings

that in the aggregate
savings have to be watched. With
such a focus, it is small wonder
that a prejudice against
savings
exists

numbers of units sold.

attributed

lems.

here

Stores:

of

in¬

are quite remarkable, for workers

or

showing the actual costs for

are

prob¬

movement

.

data

cumulative increments of batches

creased

of

P°t1Sm m the name of democracy.

Watkms Furniture

■11 Naturally, few firms have cost

elementary economics is that

solutions

providing facilities and
supportive assistance. The results

Unionization

petitive.

the

than

...

do; not

precisely accord¬
ing to the marginal analysis, it is
suggested that business is more
capricious than objectively com¬

sion of their power rather than in

agement

„T

firms

because

maximize profits

aware

tionS

These

left

objective

'

are

policies originating
hypothetical formula-

the

ex¬

uals in power positions, who are
primarily interested in the expan¬

*n the final analysis they are
working.ijor themselves, with man-

11.

For

the theoretical maximum profit is
as

sponsive to the needs of workers
for

world.

real

the

1dbout

the
facts

the

be

to

assume

unwary

measuring

potential scapegoats.
Management

mental

a

in conclusions which

sulting

for

not for the common or

are

is

theoretical construct often re¬

their

havi°r' However, group behavior

tionship between management and
labor.

failures

analysis

Marginal
or

more

in

.

economists

fallacious

from

Analysis

over¬

can

practice which illustrates

pro¬
new

business

man-

4

,

he does not

increased prices.

and

The worker is, in a way, a sub-

possible spreading of work. Either
machines will be used

labor

Lincoln Electric Co.:

4.

resulting'

contractor,

or

in

portunistic and mercenary, while
political officials and bureaucrats
are altruistic since the profit mo¬

ior

in higher labor costs will not make

sales will follow

evils

new

Business managers are op¬

(5)

of

more

of

government investments.

cation and

Firestone

creation

social good to the extent that are

dynamic and

organizations can consist
of an organized minority domi¬
nating an unorganized majority,
largely because of apathy of the

A

laissez-faire evils

ment, and therefore, to be guarded

(4)
8.

of sales

Labor

3.

the

out

"

"

the

diminishing,

resultant

the

substitution

rate

Consepolicy on

money

investment

earnings

While

is

the

to

many.

ic

America. This mo¬
obtain wage increases

when

even

output

illustrate

to

cheap

a

turbed by

is

cited

are

ing Co.:

major
integrated steel
producers are cited as illustrations
of monopoly capital, used to char¬
acterize the capitalistic economy
in America, labor monopoly can
be

somehow

business

Part °*. t^e ^scai authority dividual firms, while the business
i?'manager is sensitive to individual

"

Republic Steel Corporation:

economy

of

of business without a concomitant

(3)

which contribute

tors

.

While

now

Government control or reg¬

screens

Cleveland:

though interest rates tend
to equilibrate the supply and de¬
mand for loanable funds, the fac¬

Random

and

Observations

names

(1)

ulation

'* V *•*

•

of

'

.

manitarian and social-minded than

Visited

Fallacies

ex¬

plicit biases associated with such
omission, as follows:
'

be

Even

Firms

texts

ideas

pressed above, there are often im¬

(2)

The local bank

A.

Prof.

of

list

random

the

in

such society.

of

number

be,
social

the

can play in
i| * ; i.i | • M I * » •

.

ample,

omission

the

elementary economic

many

of

to

against vigilantly.

The Cleveland Trust Co.:

6.

significance.

Twelve

anyone

being set and where the

are

eco-

nomics, its
shortcomings

of

maximum

than

solescence.

to

d erstand

u n

textbook

addition

In

where

practice

rather

not

monopoly exercise is not in the
^railways but in the commissions
themselves, attesting to their ob-

has made

easier

should

rates

present

minimum

sorship of Re¬
public
Steel
Corporation.
This
experi¬
it

maximum

fix

and the spon¬

ence

regulatory commis¬
governments to

sions in the State

of Technology
in

the

and

sion

Institute

Case

Ohio Ry.:

Chesapeake &

early monopoly conditions
railways and the past need for

of

under the

guidance

tention on the essentiality of the
function,

The

lege last sum¬
mer

often inadvertent, can be
dispelled by focusing greater at-

Implicit Biases
The

privi¬

a

».,»

Marginal

man,

failure,
5.

such

*

act,

subjective

a

role

what

of

scientists
»

or

biased

a

to

as determin¬
ing the level of income and em¬
ployment. While few economists
will dispute the theoretical
rela¬
tionships that may exist' among
these
aggregates,
an
increasing

of what society should

vision

j

be

can

related

usually

Analysis

ings and investment

actual

with

models

situations

t

mental

particular

and

implicit

The

industry.

ing

of society.

theoretical

latent animus towards the middle¬

velopment and choose to become
part of the Ferro complex to avoid

vacations. The author had

summer

,,

blame.

unreality prevalent for which he holds economic texts partly to

collate

and

Aggregate

Social scientists are ob¬
and free of value judg¬
However, the failure
to

ments.

buying by chain stores. Similarly,
many functions in food prepara¬
tion have been taken over from

and ideas of conse¬

Dr. Sharron's analysis notes practices

particular middleman, such as
or a less-than-carlot re¬

keting changes, but the function
performed is taken over by some¬
one
else, as in the case of direct

different industries
prompts economics professor's criticism of elementary economic text¬

Perhaps the most serious con¬
fusion of theory and
practice lies
in the relationship between
sav¬

(10)
jective

ceiver, may be eliminated by mar¬

On-the-spot study of 12 representative firms in

higher earnings for

even

betterment

broker

a

Economics

By Dr. Arthur O. Sharron, Associate Professor of
Duquesne University, Pittsburgh, Pa.

A

provide
labor.

planning is restrictive and even
destructive of initiative, the great¬
est of all sources of wealth and

Northern Ohio Food Terminal:

12.

Thursday, February 11, i960

.

.

of

business ventures.

Versus Actual Practice

.

specialists, the very process

these

put other firms out of business as
well
as
having prevented new

Economics in Basic Texts

books.

Chronicle

The Commercial and Financial

(674)

illustrate.

There

were

than ten million unem¬

more

ployed in 1941.
Another

favor

of

the bias

for

reason

in

spending and
against job-creating investments
is the frequent neglect of Say's
consumer

Law in basic

law

econdrr^ic texts.' This
that

the

production

can

the

expresses

outpayments

for

idea

constitute the income and

ing

power,

internal

given

market

a

purchas¬
condition of

flexibility,

for

consumption
of
the
goods and
services produced. This should be
obvious to students of aggregate

economics, since the value of the
nfet national
product is equal to
the

national

students
wonder

are

how

income.

However,

frequently left to
are
the goods and
.

services produced to be

consumed?

They often have the fear that the
market

will reach a
saturation,, despite the
fact that few of them expect to be
satiated with goods and services
(and
voluntary leisure)
during
point

generally

of

their lifetimes.
The

effects

of

these

prejudices, and fears
deed,

fallacies,

are many

in¬

Government activities have

expanded tremendously and per¬
manently without the originally
promised - benefit * of
"pump-

Number 5924

191

Volume

.

. .

The Commercial

and Financial Chronicle

(675)

expansion of private

im»d"

Instead of merely
"hiding deflation, inflation from
has
aVOld11 fo
ji.mrtpH funds
aV0!kted and diverted funds from
?' fterm to speculative ventures
l0Ui paused the seeds for the next
fnression to begin to sprout. The
d
nnomic growth of the nation as
eCpflsured by the gross national
mSnct adjusted for price changes
Population increases has been
,

?

with

Announce Program
CHICAGO, 111.—The spring sched¬
ule

has

luncheon
ment

been

announced

for

the

meetings of the Invest¬

Analysts Society of Chicago,

be

the

following companies to

featured:

Feb.

Balke-Collender
Eaton

4—Brunswick-

Co.;

Feb.

11—

Manufacturing Co.; Feb. 25

—General Telephone & Electron¬
ics

Corp.;

Electric

March

Co.;

March

17

—

24

Grand; April 7—Sheraton Corp. of
Now With Keller Co.
America; April 14—Halliburton
/
(Special to The Financial Chronicle) '
1
Oil Well Cementing
Co.; April 21
—Allis Chalmers;
April 28—Na¬ BOSTON,Mass.-—Harvey M.Simon
tional Lead Co.
The

Sprague

—

T.

W.

is

Mid-West

Forum

will

now

State

be

held at the meeting March 3.

with

Street.

Keller

He

&

with C. H. Abraham &

"Co.,

Co., Inc.

one-fourth of 1% per year
end of the war. This rate
seriously insufficient, reflecting;
General shortage of savings and
the

well-known in

investment, a fact

practical economics

although vir-

l allv

ignored in many basic texts.
Much of this insufficiency of
rPni growth has been strongly sug¬
gested to stem from a false pre¬

occupation with government stim¬
ulation of , purchasing power inthe name of.iocial welfare.
Cor-,
relative to this is a companion fear
of overproducing
resulting in a
combination of excessively subsi¬
dized and encouraged unemploy¬
ment, institutionalized and fixed
idleness among the employed, and, ;,
perhaps most impor¬

finally, and

extensive unwanted leisure
on the part- of persons' outside-of
the labor force (therefore not tech¬
nically unemployed) who would
wish to be engaged in productive
activities were they available at
satisfactory returns.
v It is hardly in the interests of
social welfare to burden the pri¬
vate economy with a vast bureauc¬
racy and to foster rigidities and
restrictions on individual initia-'
live and economic freedom with
the effect of not satisfying perhaps
tant

billions of dollars
These could have?
met and still could be met
of

hundreds

worth of wants.
been

betterment,

social

genuine

for

security and stability.
■

-

.-ff-

-H'

v

w

:

Chas. Plohn Heads
Sta-Brite Offering
A

public offering of 140,000 shares

of

Feb. 8.

?;; •

v;,

,

.

Sta-Brite,

formed

in; 1947,:. is

;

principally engaged in the
facture* and
and

sale

residential

fixtures

through
line

manu¬

commercial

of

electric

lighting
whole-*

national

sale distributors and

Brite's

Co.

Plohn &
at $5 per share

Charles

by

Co. and associates
on

Sta-Brite

?

Manufacturing

made

was

of

stock

common

Fluorescent

jobbers. Sta-

handled

is

a

on

national basis by Graybar Electric

Company, General Electric Supply
Company, and Raybro Electric
Supplies, Inc., none of which cor¬
porations
cent

brighter futures, coast to coast

fluores¬

manufactures

lighting fixtures. These dis¬

tributors
their

purchased

fixtures

for

own

stock,
as
well
as
the specification and
Sta-Brite's
products
to

promoting
sale

of

their

own

In

dealers.

July 1959,

as a

diversification,
chased

all

move

toward

Sta-Brite

the

stock

of

Sta-Rite

Inc., and operates
organization as a sub¬

the latter

sidiary.
Net
used

from

proceeds

approximately
by

the

the

.

$560,000,
company

improvements, opening

ble

Muffler

aew

and

product

Promotion,
and

sale,

will be
for plant

Sta¬

new

brake

engineering
and
advertising
of

Sta-Brite

all

For* millions of

through John Hancock helps

this peace

maintain millions of

these giant computers —
modern as tbe Space Age we
policy records,, create and print

How we

John Hancock

were

June

$863,000 and
$12,300.
For

months

J*>y, sates
p °bts

ended

ended

Sept.

net
the
31,

were $259,000 and net
$19,700.

were

the

Wnnn

ttle

stock

company

va?;?00common
s^ares
e

of

10

stock

being

now

paid total benefits of

progress

How
Assets:

$424,451,000, an

we

safeguard the future

$5,841,896,000. (Obligations, $5,323,407,000; general con¬

tingency reserve and special contingency reserves, $518,489,000.)

working day.

States

flowed into every state

and into various

and territory of the United

ficiaries in

1959-an

Hancock investments

Canadian provinces.

communities strengthened by John

an average

—

working day.
Over $24

bene¬

set aside for policy owners or
increase of 6.5%.

$716,993,000 paid to or

of $2,363,000 invested

every

(

billion of John Hancock insurance in force at the

end of 1959--an increase of

8.7%.

will have
cents par

outstanding.

Now With w. E. Hutton
-

,

bncsptcial t0t"e

plnancial<?"roniole)
Mass.—Edward F. Doyle

J0N».
wub

is n
*
uow
merlv
•

W.

E. Hutton

,e-?u ,?treet- He
with

&

was

Goodbody & Co.




t

V

tf|*

\

■■

MUTUA

•

LIFE

INSURANCE

Co.,

for-

ever¬

for the year 1959. This progress points eloquently

American industry and

Payments

serve

toward sound family security in the promising Sixties.

paid benefits

of $1,698,000 every

were

working hard to

safeguard. Keeping this

lastingly in mind has, we believe, been a vital part of our

of mind. For through

average

1959

those whose futures we help

symbols of a viewpoint as

In 1959,

uree

dividend and other calculations.

and modern-minded management

and accuracy of John Hancock service,
dramatized in the simple illustration above, help assure

The promptness

jSales
Pubis

lighten the concern we all

Sound life insurance is the combination of skilled people

and for additional worklng capital.
year

of actuarial,

have for tomorrow.

Products,

for the

premium notices, and perform an ever-continuing flow

Americans everywhere, life insurance

stations,

national

promotion

•

pur¬

Muffler Shops,

w,

deliver

The "brain" that helps

BOSTON.

MASSACHUSETTS

31

formerly

was

r

°'nrc
•

Chicago Analysts

esurient.

•

19

COMPANY

20

The Commercial and Financial Chronicle

(676)

the

of

What Are We Doing to
Foster Science Education?:

ordinate

permit

cash

doing to develop our student's curiosity and ability

are

we

to find out the resason for things
so

doing

are

51

to be

bonds

ing groups managed jointly by
Morgan Stanley & Co. and First
Boston Corp.
The last previous
sale was a $100,000,000 issue of
15-year 4Vfes in November, 1958.

Fairs,

Floridian

an

11th

the

marks
Bank

Reilly,

in the United States on

marketed

He compares the little

voluntary basis with the U.S.S.R.'s method in a

a

on

Science

World

a

tribute to the work of William Guild of St.

oping

offering

of

Mr. Babson as inadequate.

is summed up by
we

and to discover exceptional talent

Exchange Elects

American Stock Exchange member for 30
years, and a former pageboy pn the trading floor of the old New
York Curb Market was elected Chairman of the Exchange
Board
of Governors at the members' annual elections, according to
an
F.

Joseph

projected

own

behind the Russian's advancement of the Sciences

do not fall

we

Thursday, February 11, I960

.

American Stock

of the bonds
preferences in

individual

light of their
positions.

issue

.

a

purchasers

suit

to

This
The little

delivery arrange¬

portion of its borrow¬
ings with loan disbursements and

the

By Roger W. Babson

delayed

is to enable the bank to co¬

ment

.

Science

cities

and

the

to

Educational

Petersburg, Fla., in devel¬

and

Clubs,

Previews-for-Teachers

work

Foundation

of

of

the

in

Creative

Osborn

The

N. Y.

Buffalo,

negotiated basis by underwrit¬

net

issue

current

the

of

proceeds

}vill be used in the general

operations of the bank.
When

I

in

was

and parents

getting

Moscow,

relating to its public
school system, I was asked what
we
are
doing to teach science to
Moscow

authorities

school

new

could

teachers like to be in

operates

the

"science"

By

teenagers.

our

greatly. In fact, these
help in selecting
teachers; the more useful

"Fairs"

statistics

mean

Once

For definite information I could

think

only of the work of William
Guild of St. Petersburg, Fla. in
developing Science Fairs, Science
Clubs, and Previews-for-Teachers.

was

at

George
other

Edison

might easily
or

some

or

this:

I

have

of

mentioned

Osborn

the

Creative

tional

which

non-profit

by

gifts

work

institutions

What

supported

interested

Makes

Grass

donors.

machine,
he replied,
brain, used to less

of capacity."
him how the

the

brain

he

could

replied,

be

"By

curiosity

.

increased,

developing
95%

.

.

of

what you

Americans read or hear
actually goes in one ear and out
the other.

It

thing heard

few minutes." This is

a

what the Science Center is

trying

Guild would

theory
is

the

is that

the true
curi¬

whose

one

be content to apply the work
only to youngsters. Bankers and

osity has led him to inquire into
everything that 99% of the people
take

for

given

Fla.,

granted.

green

his

on

rots,

a

One

to

the

fense

the

U.

a

S.

"I'm

grass

He

is

reported

mercial

in

why

primary
Fairs

to

of

youngster's native curiosity into a
lively desire to find out the rea¬
for things.

and his

If he "catches fire"

imagination is stirred, he

the way to

on

becoming

a

great

in

a

rough

Boston

and

Feb.

on

(World

bonds
Feb.
and
to

of

9

DENVER,
James

H.

Roche,

Jr.,

with

are

Corp.,

The

bonds, due
priced at 100%

bonds

voluntary
program
is
already being used in 51 cities of
Florida alone, and I do not know
how

many

starting in other
states; while the Moscow system is
hunting for prospects in over 1,000
Russian

are

cities.

This

is

something
Department
should take seriously. I would like
that

to

see

the

given each
cost

It

of

lion

Guild
year

one

would

our

a

Center

for this work the

missile

save

dollars

Science

experiment.

country

year

a

well

as

hope this story will

cause

as

*

the

cities

information.
any

to

send

There

city f«r putting

Fair.

It

interests

is
on

for
no

a

the




further
cost

to

"Science
teachers

Alice'

Clifford
Nieman,

Mr.

and

Ray

R.

Denver

U.

of

to

yield 5%

As

through
1984.
The
is calculated to re¬
the

issue

15,

bank

at

The

sinking
price
is
100%.

102 Vfe%

to and

14, 1975 and at
premiums thereafter.
in

Bank

the

issues

States

on

in

after

case

sold

recent

of
in

including
decreasing

has

become

ward

years,

in

addi¬

more

quarterly
dates
through
Feb. 15, 1962. A commitment fee
from Feb.

M.

connected

Lister

the

to

in

Board

case.

He

was

regular

of

%%

per

annum

24, 1960 to delivery will

be paid by the bank under the de¬

layed delivery contracts.

Purpose

on

the

1951,

membership

in

1954

and 1958, for
elected Vice-Chairman in

1959.
were

Rob¬

August Huber, Spencer Trask & Co. and John D. Warren, G. H.
as non-regular member
governors.
Also elected to three-year terms as regular-member
governors

governors

Walker & Co.

Walter E.

du Pont

Kimm, Jr., Kimm & Co.; A. Philip Megna, Francis
Co.; William N. Moxley, Shearson, Hammill & Co.;

&

Elected to three-year terms
non-regular member governors were Henry Parish, II, Carl M.
Loeb, Rhoades & Co. and Louis Reich, Reich & Co. who also have
served

have

before.

Timothy
Robert
terms

J.

J.

Reardon,

Smith,

Andrews,
Smith,

Sexton

trustees

as

of

Posner

&

the

& Rothschild and
elected to three-year

were

gratuity fund.

&

Robbins

& Co.; Wiley Bros. Inc.;
Mid-South Securities Co.)

American
Le¬

Sharpe Opens

and

Notes Offered

with

Co., 80 Federal

'")/),

A. E.

CINCINNATI,

Gypsum
Company Stock,..
Jack M. Bass &

'

PORT

JERVIS, N. Y.—Albert E.
Sharpe is conducting a securities
business from

offices at

158

Pike

Street.

Co.

Feb.

on

Co. and Quinn

10

publicly

&

offered

Allan Bohmer Opens
Ohio — Allan G.
Bohmer is engaging in a securities
business
from
offices' at
3251

Observatory

Investment
formed

Company

with

offices

at

12,000 units of American Gypsum
consisting of 480,000 shares
of common stock
(par $1) and

firm

with John

Co.

notes

Starr In v. Co. Formed
has
55

West 42nd Street, New York
City,
to engage in a securities business.
Partners are Irving B. Starr, R. J.

Starr, and Maxwell B. Starr.

only
$100
and

(Special to The Financial Chronicle)

DENVER, Colo. — Lavernon H.
Finley and Maxine B. Wimpress
are
With L. A. Huey
Company,
First National Bank
Building.

With Amos Sudler

in

(Special to The Financial Chronicle)

with

are

Co.,

818

Amos

Seven¬

teenth Street.

With York & Mavroulis
MINNEAPOLIS,

Minn.

—

Robert

K.

Adams, Jr. and John K. O'Donnell have joined the staff
of York
and

Mavroulis,

Eighth Street,

Inc.,

76

7%

Dec.

units

) 40

South

of

be

unless

consisting
of

and

stock

trans¬

after July 1,
date .is

fixed by the Board of Directors of
the company. The

$300,

price per unit
(plus accrued interest on

first mortgage notes).
The company was

of

earnings,

and

operating

of

a

and
was

has

of

no

formed

constructing

modern

plant

Albuquerque, N. M., for the
duction

wallboard

and

in

pro¬

members

Darlington

the

under¬

&

Co.;
Bellamah,
Barrett; Courts &
Co.; Raffensperger, Hughes & Co.,
Inc.;
Norman
C.
Roberts
Co.;
Clark

&

Landstreet

&

Co.

Accumulation

'•

N. .- Y..— Capital
Plans, :.' Inc./ has

been

formed with offices at 250
Fulton Avenue to engage in a se¬
curities business.
Seymour Miller

is President,
Secretary and Treas¬
urer.

He

was

formerly with Ed-

HanlyN

Christenson Forms Co.
SALT

LAKE

CITY,

Utah—Shel¬
in

don B. Christenson is
engaging
a

securities business from offices
15 North West
Temple under
the
firm
name
of
Sheldon
B.

at

Christenson Associates.

Form R. L; Conners Co.
in

writing group were: P. W. Brooks
&
Co., Inc.; Lowell, Murphy &
Co., Inc.; McDonald & Co.; Hill,
Heuhauser

Nuveen

other

gypsum products.

Other

the

incorporated

venture

purpose

under

.Capital Accumulation

Wards &

June 5, 1959, under New Mex¬
ico law for a period of 100
years.
The
company,
which is a new

the

Avenue

of Allan Bohmer & Co.

HEMPSTEAD,

on

promotional

name
was

formerly a partner in
Bohmer-Reinhart & Co. and was

of

earlier

an

He

notes

common

separately

ferable only on

1960,

mortgage
1969, offered

amount

shares
will

first

1,

each

principal

for

DENVER, Colo.—William P. Gaffield,
Paul
W.
Jennings
and
Dannie L. Martin
C.
Sudler
&

of

due

which

is

With L. A. Huey

United

purchasers the privilege of tak¬
ing delayed delivery on one or

rate

elected

telephone clerk

a

his

Exchange.

Street.

World

the

offering the bonds for reg¬
delivery
the
underwriters

the

as

Exchange obtained

Elected to three-year Board posts for the first time
Frank and John D. Rissetto as regular member

record

other

tion to

at

Jr.,

BOSTON, Mass.—Ralph M. Porter

re¬

The

or

the

Leward Lister Adds

to

1970 at the option of the

Feb.

As

prior
fund

as

as

(Special to The Financial Chronicle)

sink¬

a

proposed

all of whom have served in the past.

Stock

redeemable

not

are

demption
bonds are redeemable
Feb,

been

and

Wallace

Co.,1 Inc., Washington at
Street, members
of
the

&

Dyer has

S.

National

Ruthven,

Curb

was

and

were

James

Floor Transactions,

ert

Securities

S.

Mr.

Reilly, who has also served

York
and

1958

T.

A.
Hast,
Aniceto
J.

Columbine

Chairman.

three-year terms in each

L.

on

$1,200,000

interest

will extend to certain institutional

superintendent of schools in wide¬
awake

50%

maturity.

ular

bil¬

perhaps prevent World War III.
I

tire

Defense

our

1980

years

sinking fund

Board

as

1936

Bank

maturity.

Russia

that this

$862,453,852.

—

Committee

nominee for the unexpired board term of Mr. Reilly.

Chas. Day Adds

been

say

terms

I.

Starr

happy to
American

totaled

Chairman of the

as

Reilly will succeed James R. Dyer, who served four consecutive

Center.

and

Develop¬
Bank)^ 25 year 5%

1960.

accrued

jointly

issue of

new

a

prior to Feb. 15, 1970.

Compared

1959

was

Colo.

Hasenyager,

com¬

but Mr.-Guild does it on ing fund the bank will retire
$3,voluntary basis—let the youth, 750,000 of the issue on or before
instead of Mr* K., decide his fu¬
JAug. 15 in each of the years 1970
ture.
through 1979, and $5,000,000 on
or
before Aug. 15 in each of the
United

am

31,

functioned

the

(Special to The Financial Chronicle)

a

Yet I

by

With Columbine Sees.

manner;

States and

held

by Edward T. McCormick, President. Having com¬
pleted his second term as Vice-Chairman of the Board, and having

New

r

International

15, 1985, are

The

heartless

and

Dec.

turbed balance

and

Stanley & Co. and
Corp. placed on the

Reconstruction

ment

scientist.' Russia makes her selec¬
tions

in

commit¬

loan

Boston

banks and headed

$125,000,000
for

a

of

as

projects

or

The

Court

Offering

Morgan

by

First

these

stimulate

programs

John D. Warren

Jchn D. Rissetto

announcement

$3,531,488,550, of which the undis¬

Day

investment firms and

market

intent
is

to

effective

ments
bank

in

principal
amount
$4,871,037,893
to

countries.

underwriting group composed

of De¬
to have

is green."

The

An

of 181

interested

not

commitments

loan

been added to the staff of Chas. A.

Heads World

is much

Secretary

Science

is

51

1946

in

BOSTON, Mass.—Herbert H. Peal

Morgan Stanley

colors

water,

same

$1,-

S. dol¬

in U.

(Special to The Financial Chronicle)

Bank

curious

me

into

available.

had

asked

different

sunshine."

who

said:

son

are

his desk,

on

soil,

same

same

unlike

were

"To make

why

from

When I

corn.

why they

he replied:

the

desk.

another yellow car¬
third red beans, and a

peas,

fourth white

and

valuable facts which

youngsters at Tampa,
noticed a boy with four

saucers

as

exhibit

an

are
especially guilty of
acting
upon
"tips"
instead
of
thinking about and studying the

$2,-

establishment

equivalent

by

I

him

At

investors

be

31, 1959 the bank had en¬

aggregate

an

curiosity that this marvelous brain
works for

will

includes

debt

the equivalent of $409,payable
in
other
cur¬
its

From

only when some¬
seen develops one's

or

Jan.

rencies.

is

to do. I wish William

Green?

use

not

Guild's

scientist

and

536,654

finance

asked

people's

Educa¬

is

from

5%

then

of

of this most

name

human

and

of
Buffalo,
endeavoring to
awaken the creative possibilities
in all people.
Both of these are

Y.,

lars

in

be
drawn
31,
1960,
the

to

159,402,654, which
749,866,000 payable

tered

I

Foundation

N.

all

Deutsche

a

arranged

1959,

funded

to Dec.

than

clippings from
describing this work.

also

the

of

under

notes

after

bank's

why does this especially
apply to you Americans?" When

Moscow

newspapers

Among

Robert S. Frank

bonds under delayed
$47,619,048 equiv¬

borrowing

down

and

"The

Since my return. I have mailed
to

I

machines, pos¬
by everyone, is so seldom

sessed

marvelous

other great inventbr if given indi¬
vidual attention when young.

back

Shaw.

of

mark

I asked him the

Any

become an

Steinmetz

a

London

sit next to

August Huber

and

December,

questions he put to me was
"Why is it that the most

used

these

in
to

as

Bernard

exceptional
of

dinner

a

marvelous

talents.

Brain

Human

fortunate

so

Machine

Marvelous

The

This work especially interests me
as it discovers young people with

natural

of

alent
Most

—

Joseph F. Reilly

franc

contracts

Fairs?

Science

Are

livery

all.

it

World's

What

Swiss

once

equivalent of 12-year
bonds of 1960, de-,

$13,961,605

each

the kids certainly love

a

and

year,

mathematics, physics, and chemis¬
try.

city which

a

Science Fair

Giving effect to the present is¬
retirement
of
$25,000,000
notes of 1957, the issue of

sue,

4%%

&

Kirkpatrick,

Inc.; First Southeastern Co.; C. D.

(Special to The Financial Chronicle)

CINCINNATI,
Conners
formed

&
with

Ohio —Robert L.
Co., Inc., has been
offices in the Dixie

Terminal Building to engage in a
securities

business.

Officers

Charles W.
Conners,
Robert
L.< Conners,

are

President;

Vice-Presi¬

dent, and C. E. Conners,
tary-Treasurer.
"

Secre¬

Number 5924

191

Volume

.

.

The Commercial and
Financial Chronicle

.

(677)

21

'

vania

NEWS ABOUT

pany,

Banking

and

Trust

Philadelphia,
*

*

Com-

Pa.

W. Stenberg has been
ap"
pointed Trust Officer in the Trust
epartment of Mellon National
Kank

Consolidations • New Branches • New Offices, etc.

Revised Capitalizations

•

ra.,

and

Trust

according

Co.,

to

Pittsburgh,

an

announce-

ment

by Frank R. Denton, ViceChairman of the bank.

.

Seaver ment

G.

and

Elliott

Bart

n

division

at

the

formerly Assistant Vice--States Trust Co., joined the bank
have been named in Nov. 1914 and became a ViceVice-Presidents of Bankers Trust* President in 1929. He was head of
r
the investment division until his
Tones

'

retirement in Jan. 1960.
»

;/•'

:

Henry W.Wickenhiser, was named
a Vice-President in
charge of pension

and

ments
of

profit-sharing

of United

New

named

of

trustee of Standard Bank

a

South Africa, Ltd., New York.
*

Frederick

I

of

I

Garden

oa

William

of

Trust

Brawley,

Street

Wall

Covington,

Charles

Treasurers.

the

and

retary

Se

Vis-

Division

was

nine

shares

sion, joined Bankers Trust Company in 1950.
He was appointed

standing.

2,000

dent in

The

me

Bond

while

the

named

President
western

sources

an

and

^

Stat

Assistant

transferred

Division

ot

tne

.

bank

in

shares
*

York announced
of E. Russell
in

Paris

Common

pean

about

re-

as

common

capi-

$50o,000 to $600,000.
of

(Number

outstanding

60,000,

par

$10.)

on

the

Market

The merger of the Fultonyllle National Bank, Fultonvi le
New

.Jt

National

Bank

of

Lubbock, Texas, by a stock dividend, increased its common capital

stock

from

2,500,000

to

2,625,000. Effective Jan. 26. (Number of shares outstanding 262,500
par value $10.)
*

*
*

Minnesota,

stock

(Number

35,000,

~

from

Effective
of

Jan.

26.

shares

outstanding
$100.)

value

par

stock

a

its common
$2,000,000 to

*

*

Winona

Minnesota

inrrpacpd

ST.

LOUIS, Mo.

—

The

St.

the

April 29.
As

in

the

past,

the

event

nomic

specialist
in
charge
Common Market activities.

On Thursday there will be a
luncheon at the Missouri Athletic

from $100,000 to $200,000. Effective dan- 26. (Number of shares

Club at 12:15 p.m. That evening
there will be a cocktail party and

outstanding 2,000

banquet at the Park Plaza Hotel.;

common

*

par value $100.)

*

Friday will

*

dent is L. J. Lewis, the cashier is
H* T* Edwards. Capital is $150,000
and ^be surplus is $225,000.
*

The

Bank

Ariz.,

of

*
*
Douglas,

Phoenix,
that
W.
R.

announced

.

was
elected Chairman and retained as
Chief Executive Officer and Lloyd

be

devoted

to

was

and

Chemical

Bank

mercial

York *Trust

New

airman,

A. S.

King Joins

Counsel Firm
WASHINGTON

n

r

„

yAbmJNOlON, D. C. —After 25
years wlth the Securities & Exchange

Commission,
Alfred
S.
Chief of the Division of
ceeding Mr Montgomery
G
CorPoration Finance, has left the
^euiiig ivu. ivi u 11 i g o m e r y. u.
A
Clarke Bean, Vice-President was
cldrkeBeanVice' PreSdenf was Commission to join'A. S. King
named to newly-created
position A s s o c i a t e s, Washington, D. C.
"fslnior Vice-Presfdent. Frands financial & investment counselO.
Thalheimer,
Vice-President lors. The new company is mak-

Bimson,elected
Executive Vice-PresiPresident

was

sue-

KinS>

0

itawlv-erea^

was

also

named

President.

Senior

Vice-

Elected to Board

were

ing its headquarters at 1001 Penn¬
sylvania Building.

Miller, and Newton Ros-

enzweig.

West Coast Investors

its

(Special to The Financial Chronicle)
VVlnona, Minnesota, increased its
common capital stock by a stock The First National Bank of Mis- LONG BEACH, Calif.-West Coast
?•
?m
$600,000. ®oula' Montana, by a stock divi- Investors is engaging in a securi•E^ectlve fan* ?8. ^u™!?er
1ucJeased its common capi- ties business from offices at 352
,

n

^

™

g

"

J^$

'

'

2e"
outstanding

shares

*
By a stock dividend, the Union
National Bank of Little Rock,
Arkansas, increased its common

valne%4n

Snn^Fff^ivfbTt

Halden

'

of

outstanding

shares

LS ton vUtStandmg
^>zu.;

par vaiue

*

*

*

the

troller

25%

stock

approved

previously

the

of

in000

'

V

value $4°.)

dividend

by

Comp-

Currency.

This

capital stock of the bank to $1,500,000,
making
total capital
e
'ds ' ^ $5,367,000. Distribution

*

nar

'

P

bomasi J. Inglott and Paul
G?^an*
were formerly
,

with Henry Hartman.

.

Halden Admits
&

Co.,

123

Joins Lee

Hlgginson

(special to the financial chronicle)

Greenwich

street> New York City, members BOSTON, Mass.—Richard J. Lauof the American Stock Exchange,

lor

haye

Higginson

admitted

Nathan

Shaw

partnership.

The stockholders of the First Na¬
tional Bank in Palm Beach, Fla.,
ratified

?NuS°^ East |an Antonio Drive. Partners

Now

to

has

joined the staff of Lee
Corporation, 50 Fed-

eral Street.

v

Washington Gen. Corp.

Schroeder, Pistell

The firm name of W. W. Schroeder
& Co., Inc., 55 William Street,

New York City, members of the
American Stock Exchange, has
been changed to Schroeder, Pistell
& Co., Inc.

WASHINGTON, D. C.—Washington General Corporation has been.
formed with offices in the Barr
Building to engage in a securities
business. Officers are Richard G.
Garrett and James L. Kunen.

wss
was

A

»nn

Harold H. Helm.
*

John

H.

Millikin,
of

previously
Bankers

Y"ork

Senior Vice-President on Feb. 3,
according'to William H. Moore,
bank's

Chairman

M. Millikin,
banks

senior

a

management

*

Rochester

Lincoln

*
Trust

New- York,

Co.,

received

of 526 575 shares oftheparvalue
of $20 each 1to $!0,742 HO _con■

member

of

approval to ^
stock from $10,531,500 consisting

Trust

elected

was

Com¬

Co/

Trust

282,870, divided into 837,716
shares of common stock of the
yalue of $7 50 each

Rochester,

a

a

the

and

*
'

*

charter

National

The

Bank

*

Vice-President
Company, New

of

Albany, with capital stock of $6,-

Nc7 7°Tkt h-,S e,',CCted.
Stral^a.t0 ]t®
jPeJ
ea Advisory Chairman
Board, it'
announced
by

MmT

the

under

effected

title

of the
team,

of the

sisting of 537,107 shales

same. Par value.

.

v.

joined Bankers Trust
He

Coi'in 1933:" Horace K. Cor bin, Honorary
was named an
officer of the Chairman
of the Board of the
bank in
1942, an Assistant Vice- Fidelity Union Trust Co. of NewPresident two years later and has ark, New Jersey, died on Feb. 4,
beld

the

since

1947.

title

of

Vice-President

he served as the bank's President
from 1940 to 1954 and as Chair-

Fully Tax-Exempt Bonds
The

scarcity of securities totally ex¬

are

from both State and Federal

the

empt

likewise fully tax exempt and at
time afford investors sound

same

1954 to

income taxes now becomes even more

Approval
has
been
given
to
Hankers Trust Co., New York, to

£?"uary'.

He firSt j°ined

apparent as the result of the admis¬
sion of Alaska and Hawaii to State¬

is true

SnFo?se

*
*
By a stock dividend, The Atlantic
Highlands National Bank, Atlantic Highlands, New Jersey, increased its common capital stock
from $100,000 to $200,000. Effective Jan. 29. (Number of shares

Territorial bonds are
fully exempt, while those of States
and their political subdivisions are not.

Authorities.

*

snares
o

caPital

stock from
'500 consisting of
4,029,950
of

the

par

value

ncil' to $80,599,000

39,900 shares
value. Effective
'

man

*

*

M.r-

Alton

S.

of

$10

consisting of
the

Feb.
*

of

same

par

1.

*

Keeler,

a

former

^'President of the United
on Trfr ToUSt Co" New York' died
'an- 3,™r: Keeler,

wno

had

founded

developed the present invest


of

Board

the

Fldeldy in !929-

from

*

outstanding 8,000, par value
*

*

hood,

since

The bonds of Puerto

a

GOVERNMENT

$25.)

Johnston, Jr., John W. Hulton and
Henry J. Wylie were named VicePresidents, of the First Pennsyl-

Rico,

Commonwealth of the United States,

*

Wilbert J. Hughes, John M.

the

f^1at *be ^ien Echo Coun£y ^lub[. Elzey G. Burkham, Jr.,;
Xh?mValker & Co., is Party

of Albany, Albany, New York,
wlth common stock of $6,219,120,
effective as of Jan. 22. The merger

of

will

be by invitation.

European Free Trade Association.^ Commercial Bank and Trust Co.,
Since December 1958 Mr. Eggers
has been the Bank's
foreign eco-

Louis

Municipal Dealers Group has
scheduled its Spring Party for
Thursday, April 28, and Friday,

capital stock

creased its

Cecil H.

*

xhe Merchants National Bank of

Schedule Party

*

By a stock dividend, the First National Bank of Mission, Texas, in-

d

by

increased

St. Louis Mun. Men

York, with common stock of $50,000, witly and into the National

Euro-

and

*

$300,000 stock dividend increases
"

the Bank's

Duluth,

iS2Stn
izo,uuu,

*

26.

to

First American National Bank of
ni.inth
Minna^o

(Number

$9 million,

*

Jan.

Bank, New

the appointment

Eggers

has

*

The Chase Manhattan

consultant

total

Effective
value

*

Bank

$378 million,
Saratoga bank's re¬

tal stock from

the

1955>
*

bank

Nahas

about

York, increased its

vice-

to

Saratoga

Saratoga

$225,000

stock

By a stock dividend, the Exchange
National Bank of Olean, New

of

mb

m

ba es

capital

of

*

Municipal

ne was

its

State
of

1955.

thlfvv ^?n?s monnQc'*n
te baiilcjn 1939 as a

State

shares of capital stock out-

sources

Vice-Presi-

Assistant

of

each, share

tional.

officer of the bank in 1951 and
an

Re-

Under the nlan

££ 0^^^ wou^exc'h^ge

ap-

for

named

De-

Federal

the

and

Board

serve

pointed ah Assistant Trust Officer.
Mr. Elliott, an account officer
servicing the bank's Central Divi-

an

BanSng

New York State

partment

bv

aooroved

•

from

*

Saratoga National Bank, will

merger must also be

Nelson,

Richard. A.

Trust

State Bank of

*

ber of shares outstanding 17,500,
Par value $20.)
'

$3,500,000.

On

locky, Investment Advisory Division was named an Assistant SecPersonal

*

Citizens

in

J350.0°0. Effective Jan. 29. (Num- Montgomery, President,

up
Uli

bf ?A°P,°Sed at a March of the
meeting
stockholders
22, the

KeUv:

R.

moves
111uvcb

Albany, New York, with and into

Madison Avenue Office as Assistant

*

The merger of the

Office;

?e„aZ Offic^^jX'Hv
Ottice, Jonn
W.
Avenue

annoifnced

par value $25.)

*

a stock dividend, The Brown
National Bank of Kenosha, Wisconsin,/increased its common

capital

*

Henry M.

Division;

Eastern

Jr.,

H.

Comnanv

y

completed
early March.

«!;

*

By

been appointed Assistant dividend,
officer.

also made known the

Mr. Moore

election

^
Board.

Chairman of the

h. Moore,

Trust

N

^r°mt Assistant Edward Officer to
Trust J. BarthTrust Officer.
Edward .T
RarthTrusP Officer.

New
Net* York, it was an
irons; „ was an-

Company,

Island

City

1.

-

nounced

Long

*

capital: stock

*

that Kenneth T. iiugcia
Rogers

G. Seaver Jones

Elliott

*

Hainfeld, Jr., President

The

be

or

Ik

I

9apital stock bY a st°ck dividend A charter was issued on Jan. 22,
from $525,000 to $700,000. Effec- to the County National Bank of
tive Jan- 29- (Number of shares Orange, Orange, Texas. The Presioutstanding 28,000

Effective March 1.
Michael R o b s o n was

I

D. Bart

invest-

States Trust Co

to

February

*

*
*
*
The National Bank of
Logansport,
Indiana, increased
its
common

York.

William

*

Ybe Marblehead Bank Company,
Marblehead, Ohio, has changed its
title to the Marblehead Bank, effective Jan. 18.
'
'

United

Presidents,

$

*

-.;:v;

expected

\

Carl

RANKS AND BANKERS

is

late

*

~

P

San

0

juan,

fell

Box 4591

Puerto Rico

security and liberal yields. The same
of the obligations of Puerto
Rican

Your

municipalities
bank

and

revenue

security dealer
full informa¬
tion on the tax-free values assured by
Puerto Rican obligations.
will be

own

glad to give

or

you

DEVELOPMENT

BANK FOR PUERTO RICO
Fiscal Agent for the Commonwealth of Puerto Rico

37 Wall Street
New York 5, N. Y.

'%V«VV»VA%V»*»V

m

The
22

(678)

the

its

the

of

end

of

The

said.

company

Likes and Dislikes

in

assets

stocks,

common

Thursday, February 11, 1960

*'

•

during
sets

•

•

1959-60

learned from
the National
Association of In¬
vestment Companies that its mem¬
bers, comprising 131 mutual funds
A few weeks ago we

demonstrates

period. ' It

fortunes
receivables.
change in a
vA",
~'
relatively short span.
r ;
;
V

of

industry

an

caught

But whereas
held

excess

about this
time the commercial jet age was
born.
Many an astute fund man¬

along

And

recognizing the

ager,

stake was in Reynolds
Metals, totaling well over $82,000,nies

into

only 36 compa¬

jet

planes

sold for
unit, got

that

$5,000,000 and more per

Reynolds, International

If

off fast.

Nickel and Anaconda led in popu¬

larity with no less than 45 funds

meager

holding these issues.

they didn't see the in¬
task of airlines with

superable
finance

the

Now

N.

analysis

developed

large

a

It

stake.

icy

airlines

stock
in this
group is International Paper, king¬
pin of the industry. It is held by
45 companies—as
many
as hold
investment

companies put 4%

total

their

metals

in

assets

for

often

of

that

into

more

S184,000,000,

nearly
twice

than

Reynolds,

the metals-mining

in

In

is

group

St.

Regis

far

beyond

St.

Regis

29

mutual

the

is

in

industry.
portfolios of

of

10

with

companies
Scott

industry

number

holding

Paper,

24;

are:

up

of

the

airlines,

state

what

was

as

of

growth

a

$14.17,
the

not

so

in¬

27.2%

up

of

close

shares

Report

stockholders

months
first

half

from

end,

end

of

1959

$180,400,000
value

Asset
year

compared

year

a

earlier.

share during the
to $14.82, a new peak,

rose

per

in assets in
31

hazard

83%
from
of
in

its
to

net

stock
cash,

after

adjust¬
capital gains distribu¬
was

share.

per
«

Fund

of

elected

for

boost

shares

istered

outstanding

capital

stock

have

receive their dividends

capital
of

the

gains in shares

fund

rather

*

T.

Fund,

Inc.

increased

that

than

last

year

reg¬

its highest sales

fund

assets

000,000.
in

the

were

Total assets of the funds

group

at the close of

1959

$2,260,893,808.

funds
tors

first

$200,-

are

Trust,

The five
Massachusetts Inves¬

Boston

Fund, Inves¬
tors Growth Stock
Fund, Canada
General Fund and Century Shares
*

*

Commonwealth

it

Investment

started

in

the

most

shares

During this pe¬

assbt value per share in¬

net

from

$12.15

to

paid

realized

in

profits

December
the sale

on

$9.69

to

$10.01

re¬

*

*

dur¬

nounced

net asset value per

Dec.

31

with $70

was

share

$73.44, compared

Sept. 30 and $74.54

on

a

ago.

or

10%

a

1958

year-end
During the report

V-,

-

:

..\

$9,054,200.
*

*

York

New

Capital

866

Dec.

on

$28,094,860

with

31,; compared

earlier.

year

a

On

7.6%

Dec. 31, 1958, per share

over

net asset value of

$12.23 on 2,297,giving effect to

after

shares

277

three-for-one

split

stock

dends and
ized

gain of $538,482 on securities

sold.

appreciation

unrealized

Net

investment

on

securities

on

De<^.

increase of
$1,231,712 during the year. Invest¬
31

$8,412,741,

was

ments

the

of

an

Fund

follows:
items,- 11%; Canadian

short-term

as

equities, 51%; equities outside of
38%/ New York Capital

Canada,
Fund

$335,-

invest

*

it

authorized

is

Canada

of

from

936.000.

During

Foundation—an

mutual

fund

with

Nationwide

ported
the

that

its

assets

of

tripled.

year-end

quarterly

a

fund

dividends

1959

totaled

share and

a

$1

Dec.

31

to

51

per

was

a

to

9,700.

paid

quarterly
cents

per

share capital
made.

As¬

$18.8

mil¬

totaled

lion, representing

share

be

$9 million in¬
year.

Cash

rose

flow

The
from

from

share purchases amounted to

Fund,

Inc.

$15.32,

in

it

mutual

anced

its

ment
serve

the

16%.

any

holders

ing

its

the

at

boosted

to

1959,
a

1958.

$2.59

after

share

net

The

assets

all-time

an

up

Net asset value

share

a

payment

from

12

with

Dec.

on

of

capital

in

This

share

a

31,

if

cash

on

at

the

'

VV;' V

if

'

regular quarterly
$1.25 per share
March 1, to stockhold¬
if

United

show a
than the

of

growth

De La Barra

LOS ANGELES, Calif
De La

Barra

curities

is

—Arthur E.

engaging in a se¬
from

business

at

offices

the

705 South Spring Street, under
firm name of De.La Barra &
Mr.

De

La

Barra

C°.
formerly

was

with Hayden, Stone &

B.

Co.

»

f.:

Hagopian Opens

EL SEGUNDO,

Calif.—Berj Hago¬

pian is engaging in a securities
husiness
here.
Mail
address
is
Box 214.

Op°ns Inv. Office
LONG BEACH,

Hamiltpn
ties

it

Corp.

Opens

Services,

of record Feb. 15.

The

regions

to

<Special to The Financial Chronicle)

of

if

in

expected

rate

a

dividend

payable
ers

if

Diversified

declared

Inc.

participation

a

United States."

the

com¬

start of the year.

Investors

of hav¬

cents

11

gain

months.

$2.52

stock¬

its

purpose

ac¬

$4,513,the total of $8,488,186 at

over

rose

to

$13,001,233,

the close of

their

manage¬
better

thus
of

interests

are

53%

a

history,

total

year-end

of

the

will

headquartered

cording to its annual report.
increase

non-Canadian en¬

"it

in

faster

recorded

in

year

States.

the United

because

which

bal¬

Fund,

to

feels

increase in assets in 1959—largest
for

assets

terprises"

$3,-

to

or

of

in¬

it

fund

Pittsburgh,

and

as¬

the year net
share increased

Foundation

trustees

15 cents per

During

and

announcing

dividend,

25.

nearly

year

shareholders

In

results,

also declared

on

Income

associated

Insurance—re¬

during the past

number

to
it

of Canada

and

outside

companies

"it is likely the
fund will devote a large portion

$1,315,000

per

in

50%

to

to

of total

50%

less than

not

The report stated

that

creasing

pares

Income

year-end

31

Dec.

on

apportioned

were

to

during 1959 net
approximately tripled—

sets

in

In 1959 the Fund had
divi¬
interest, and a net real¬
of $437,648 from

income

net

assets

new

Investors

American

reports

a

share basis, net assets were
equal to $13.16 on 2,377,411 out¬
standing shares, an increase of
per

net

&

v

of

for

report

net assets of $31,295,-

shows

1959

■1

Fund

annual

Canada,. Ltd.

%

•

'

*

-

up

were

preceding
*

new

amounted to
•

assets in Canadian companies

047

De Vegh Mutual Fund, Inc., an¬

3,900

$10.68,

$306,877,908

Both

high

1959, according to the annual
from

$13.70,

adjustment for the 50 cents

port.

ad¬

from

rose

80.4%,

or

which represented a gain of 16.9%

Feb.

the

year,

period the fund's total

outstanding increased
50.9%.

or

creased

year

the

the

value of $9.69.

$13.21

3.125

Address.

share

of

over

from

increased

number of shareholders

vanced

Total

1950.

increased

Name.

per

equivalent
increase

Dec.

on

was

crease^ during > the

assets

during

out

paid

year-end per share value was the

highs.

net' assess ,rose
from
$144,757,992
to
$152,475,557
in
Net

according to the 34th
of the pioneer mu¬
tual fund.
Taking into account a
57 cent capital gain
distribution

70.1%, the numbers of stock¬

on

31,

year-

high

value

from

Dec.

on

record

a

per

Annual Report

asset

sets

Company

end

assets

year

gains distribution

Trust.

Established 1894

cents per share.
for
the -/ year
amounted to $33,667, and the in¬
crease
in unrealized appreciation

June, 1960.

value

$10.11,

amor¬

mining in¬

181, equal to 24
Capital
gains

the

*

Investors

asset

$11,674,247,

nearly

the

was

total

The Company noted

past

doubled

marking

net

1959,

598.

$28,542,829

year.

net

riod

V*

*

provision for

of the cost of

creased from 31,677,586 to 33,161,-

open-end

it

share

Stock

Mutual

if

'

V

Incorporated

Growth

reported

to

t;he

and

Line

Pipe

Aircraft, and Whirlpool.

1959, from $16,778,582 for the

31,

previous

$223,683,752,




30,

*

*

Price

Rowe

This resulted in issuance

time sales had gone above

i

June

on

Gas

preferred, Time Inc., United

income for 1959
$1,610,685, which is
to
$1.34
per
share.
Net

164,541 and shares outstanding in¬

volume for any year. Sales of the
funds in this group rose to

i.

26.5%,

or

shares
in¬
37.704, or a
the
31,600

over

*f

five

OJNE WALL STREET, NEW YORK 5

ac¬

1959.

reports holders of

if

CALVIN BULLOCK, LTD.

$29,448,

outstanding
creased by 6,104 to
19.3%

gains

of securities.

Vance, Sanders & Co., Inc.

1

stocks selected for investment

asset

net

capital

while

«

of 368,693 shares.

quality and income possibilities. Mail
this ad for free booklet-prosj>eetus to

the year-

months ended

the six

last,

distribution

This
a

#

common

fiscal

Of .the total increase of $110,830

after

1958.

tion of 52 cents

mutual investment fund of diversified

S4.90

share rose from $13.41
$14.17, a gain-of 5.7%.

of

a

the

per

compared with $13.64 at the close
ment for

Transmission

Transcontinental

1959, figure of

while

26.2%,

or

value

or

4f2 %

advanced

fund

the June 30.

2nd convertible
Tennessee Gas
4.90%
preferred.

Metals
preferred,

1959,

S423,656 to $534,486, at

to

Equipment,
Gulf
Oil, National
Gypsum, Northwest Airlines, and
Pacific
Gas
&
Electric
4.80%

shares

mining

vestments in the amount of $283,-

preferred,

Steel, General Precision

six

current

the

of

assets

702,390,

with

airlines.

day after day at nadirs for the

is

the

Consumers Power $4.16

in

gold

to

after

is

tization

Airlines,

Crucible

African

equivalent
This

invested

are

companies.

and

American

V

were

the

31.,

assets

South

of

elimin¬

Securities

Rand.

Sperry
ated

Mr. Goos also disclosed that VVV■ V'

year.
net

Dec.

of

of

gain

a

covering

ended

holders

the

1958.

Free

Wilcox,

&

Dec.

on

$46,277,188,

1,200,outstanding. This is an

amounted

Babcock

to

28.3% over the
at
the end of
Approximately 90% of the

the
three
months ended Dec. 31, 1959, new
security
additions
were
U.
S.
Treasury Notes 4%%, 11/15/63,
Hilton Hotels Corp. 6% Sub. S. F.

Reynolds

In his report to

.

of
reported

$30.05

during

that

reports

37,704

to

■,■•

;■

.

$38,56 per share on the

net

shares

while

12,103,

he added.

000 at

flying extremely

equivalent

period. Investors purchased
over $46,000,000 of Fidelity Fund
shares in 1959. Fidelity Fund also

preferred.
Also eliminated were
Pacific Lighting 4.35% preferred,
Pan
American
World
Airways,

at

$11.14

increased

from

211 %,

George Putnam Fund reports alltime high net assets of $202,300,-

They've been flying low this year
in the stock market, too, turning
up

the

over

from

1958.

outstanding

the

The Funds

and metals-mining

the

296%

31, 1958 figure of $134,775,
Phillip Goos, President, reported.
Net
asset
value
per
share was

successful for growth in size since

enjoy the confidence
of investment managers, there is
—

of

increase

an

but

nothing in it for the com¬
stockholders." This, then, is

dustry.

to

group that is
low
these days

pay¬

investment
this week:

one

it

summed

the sad

Co., 12.

one

paying. As

long ago touted

Paper & Fibre, 15, and S. D. War¬
While paper

1958, had record total net as¬
of $534,486 at Dec. 31, 1959,

10,
sets

,

improvement

76,600 in the

72,500 to

6%, from

State Geduld Mines, Leesona,

Sept.

operations on

began

"...

if

Co., Ltd. net assets

31 were

levels, with pum-

same

Debs.,

American Enterprise Fund, Inc.,
which

counted

mon

Zeller-

of

5%

than

more

assets.

net

'.s.

taxpayers

position of

created.

depreciation

23; Rayonier, 22; Kimberly-Clark,
21; Mead Corp., 16; Champion

continue

the

case,

there's

bach, 23; Union Bag-Camp Paper,

ren

Government.

same

the

in

air¬

to

jet age has been fine for the
bankers.
They can
be sure of
getting theirs from the growing

firms,

them,

Crown

seem

"The

investment

of

be

subsidies

or

latter

leader

companies.
Value:
Others in the

paper

the

the

who is

closed-end

and

would

Meanwhile, it is the stockholder

$136,000,000.

over

top

the

total

Dec.

it

American Motors Corp.

constituting

sentatives

Paper,

* per

only two individual items

ing for the situation their repre¬

paper

funds

investment

great

of companies brought

action

would

Second most favored in the pa¬
per

solution

lines from that

complex.

is

community

competition through Govern¬

as

whose diversification has taken

ad¬

and

get progressively

may

The

ment

stake

biggest

their

fear

The

the investment

to be merger

is
in

great

as

promotional

things

International Paper holdings, tot¬

to

costly need by

a

ink.

red

within

and

worse.

up

fact that com¬

a

people into one plane or another.
For many airlines, the result is
not merely declining profits, but

mining, compared with less than
3% for paper, the worth of their
ing

with

argue

of competi¬

vertising ventures designed to get

while

And

Anaconda.

to

service, it is

petition created

common

or

hard

it's

basic philosophy

tive

industry
firms
valued
at
$473,641,000 are held by 122 funds.
It further appears that the most

Nickel

on

;$11.10

Dec

the

per

popular

competition

created

While

ap¬

that common stocks of pa¬

pears

that

routes.

ment

also

shareholders

of;

■

to

frightened off by Goverment pol¬

yet

on

trying

capitalizations

prohibitively costly air¬
then they must have been

craft,

C.

I.

A.

gives us a
another
assets-in-the-ground
group
in
which investment companies have
detailed

the

are

of

to

it

*

000 shares

ment and

that confronted the airlines in the
form

■

or

amounted

on

American-South African Invest¬

154,774 to 24,027,858, or 8% dur¬
ing the year, and number of Fi¬
delity Fund shareholders growing

$4,182,474.' Prior to Dec. 31, Oppenheimer bought 10,000 shares
of Underwood Corp. - This invest¬

task

onerous

/

'•

ber of shares increasing from 22,-

share, a gain of 11% over the
original $10 when the shares were
first offered
in May, 1959.
Net
assets at the year-end equalized

recession

last

and

stocks

to

re¬

1959

demand. Along

turned

had

capacity.

Biggest
000.

flight to

a

with this country, seat

up

demand

on

time the

the

about

abroad.

and

States

off

,

$16.81, also a year-end
" Shares
outstanding
and

$16.12
high.

reached record

Fund, ' Inc.'

Oppenlieimer

War II,

of World

end

were

catch up with seat

$638,635,000 was placed on these
holdings, which represent a wide
range of basic non-ferrous metals
producers and mine operators in
United

the

With

;

-

...

of

group

was

ported net asset value on Dec. 31,

~

the airlines

*

31

Dec.

Mar¬

year.

electrical

$14,929,233,
com¬
fund's 30-year
history.
an increase
of pared with $4,790,134 a year ear¬
13% over total net assets of $357,- lier, making the group United's
other
than
057,111 Von Dec. 31,
1958.
Per largest., investment
.
'..v.-: • v r
share net asset value rose from public utilities. :

number

•

*

*

/

portfolios the common
stocks of 155 companies with a
stake in the metals and mining
industries.
A
market
value
of

the

;

can

■

their

in

and

1959, against

•

23.6%

stocks,

preferred

in bonds and 1.4% in net cash

how drastically the

anew

members, held

18 closed-end

and

in

of

the

of

electronics

"

9.5%

value

ket

in the
This is

year-end

"

the year."
Com-.94% of net as¬

close

the

at

of

were

its 96% at the start of the

reports

Inc.

most

stocks

mon

;<

pet assets of $403,827,875 on
Dec. 31 were higher than at any

at
65.5%

had

.

.

total

company

year

*

*

*

Fund,

Fidelity

standing increased from 14,934,060
to
15,744,149.
"This is a time
when prudent investing seems to
call for cautious optimism," the

RICH

'

v,

The number of shares out¬

year.

.

$3.6 mil¬

$8.3 million, compared to
lion in 1958.

ing the year, after adjustment for
capital gains distributions of 33
cents a snare declared during the

MUTUAL FUNDS
BY ROBERT E.

Commercial and Financial Chronicle

reports

net

asset value at the end of 1959

is

business

Calif.—Patricia L.

conducting
from

securi¬

a

offices

at 5430

Atlantic Avenue.

was

$109,656,498,
the end of

closed-end

this
pany

was

share.

or

with

rose

1958.

a

The

L. E. Jenkins Opens

At

1959

com¬

or

$8.09

on

sale of

to

a

$7,059,-

fSnpclal to The Financial Chronicle)

MOUNTAIN
ton

or

35

cents

22

cents

VIEW,

Jenkins

is

Calif.—Lea-

engaging in a

582

Anza

at

Street.

a

Net investment in¬

to

E.

securities business from offices

share, compared

equal

share,/down
been

in

$4,878,806.
was

share.

investment

realized

50 cents

share in 1958.
come

a

$113,779,750,

Profits

securities

325,

$7.79

or

1958 net asset value of

a

from

22 V2 cents in
company said
it had

"substantially fully invested

,

B. L. Madoff Opens

BAYSIDE,

N.

210th Street.

L.

Y. —Bernard

Madoff is conducting a
business
from
offices

securities
75-3.">

at
.

.

•

Number 5924

Volume 191

.

.

The Commercial

.

and Financial
Chronicle

AND INSURANCE

attraction to several life
issues.
table

BY LEO I.

Stocks

not

are

to total disposable
income
allows
for
considerable
expansion. Growth is also stim¬
coverage

favorable, year for life insurance
underwriting. This outlook is not
ulated by the
greater awareness
all unusual since the growth
of need for
protection from insefeatures of the life insurance in¬
curity as the economy continues
dustry reflect a relatively steady
its

uninterrupted pattern. This
uoward trend is due basically to
the "servicing of money" rather
than dealing with inventory mal¬
adjustments characteristic of nonfinancial industries. The volume
of life insurance coverage in force
has more than doubled with each
decade since the turn of the cen¬
tury.
This -record of insurance
volume
growth has accelerated
faster than the over-all growth of
the nation's production; a contin¬
uation of the trend appears to be
inevitable in the foreseeable fu¬
and

This

"a

-

increasing and

situation

rise

to

ance
new

the

for

to

more

give

insur¬

coverage for existing and
forms of insurable risks.

Insurance

Stocks for

PP

VJUlltllv/I

insurance

PETERSBURG, Fla.

board

of directors

investor

of

-

dent

'

President

•

ing
tors

was

of

deferred,

the over-all characteristics of the
life
insurance
industry tend to

(000)

1.6%

102— 78

The Travelers Insur. Co.

86

$1.40

102— 78

Aetna Life Insurance Co.

87

1.40

1.6

10,000
8,000

391—314

Conn. Genl. Life Ins. Co.

369

2.40

0.7

1.200

256—192

Lincoln Ntl. Life Ins. Co.

246

2.00

0.8

176—135

Continental Assur. Co.—

160

1.20

0.8

126—103

Natl. Life & Acc. Ins. Co.

119

0.60

0.5

3,000

2,000

10

0.12

1.2

33,000

0.45

0.6

4,507
829

Calif.-Western Co. of Va.

116

1.50

1.3

Life Ins. Co. of Virginia

59— 48

2,000

78

Co.

Franklin Life Ins. Co

of

51

1.20

2.4

and

Stock

more

a

member

the

Phila-

delphia-Balti-

.

Yield

Brown

and

STOCKS

Divid.

demand for all fixed

and in

obligations

Exchange.

Prior to
that he was co-Manager of Secu¬
rity Associates, St. Petersburg in¬
vestment

counsel

and

The

insurance

tial life

investment

fies

industry justithis
field,

in

.

Generally, life stocks hold promise
of

remaining very profitable due

reached

to
continuing improvements in
mortality experience, ever broad¬
ening investment activity, the at

registering

taining of higher standards of
living and
the
growing social
consciousness for security.

up

Exceptionally high earning
characterizes life insurance
companies due to their relatively

power

small

structures: to total
earning power not

capital

assets.

Such

only enhances stockholders-equity
but ultimately
also rewarded

bution

of

the stockholder is
through the distri-

stock

rights or stock
dividends. During 1959 life insursold

ance

the

in

United

States

national and grindlays
bank limited
India Ltd.
Bank Ltd.

Amalgamating National

Bonk of

and Grindlays

Head
26

London

LONDON, E.C.8

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.l

"

Trustee Depti: 13 St. James's Sq.J Govt.
Rd., Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.J In¬
Tax

Depts.:
13 St.

Bankers

Parliament

54

St.

A

James'p Sq.

to the Government in:

UGANDA, ZANZIBAR

&

ADEN, KENYA

SOMALILAND

PROTECTORATE
Branches

V

:

in:

INDIA, PAKISTAN, CEYLON, BURMA. KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,

NORTHERN

Our

AND

insurance
some

was

SOUTHERN

RHODESIA

Annual Comparison

NEW YORK CITY

BANK EARNINGS

Since
of

life

set

of Sources

market.

up

York

Telephone:

_

Stock

Exchange

American Stock Exchange
Broadway,' nW ironic
u t.
Bell

BArclay

7-8500

Teletype NY 1-1249-49

Specialists

companies

reveal

to

are

protection

the

to

stockholders

Thus it is very diffithe actual net

viewpoint.
cult

the

from

determine

companies since a profit is reonly when mortality is
]ess, investment earnings more,
and operating expenses less than
assumed in making up the pre¬
With

rates.

mium

life

insurance

stocks, the financial reports must
be interpreted in the light of ac¬
tuarial procedures

employed. Any

companies, for example, that
assume
different
interest rates
show
different "profits"
even
though they both earn the
same rate of return
on the same
amount
of
assets.
The reserve

liability item in a balance sheet
is correct only when the company
performs

line

in

in Barth Stocks




~

with

assumed

rarely the
case the reserve liability is mis¬
leading. Therefore, relative com¬
pany analysis within the industry
conditions. Since this is

companies
do not value their reserves by the
same
procedure. Earning power
is thus best detected through in¬
dividual company analysis.
is

of little

value since

life

market,

many

York.

City Bank of New

*

was

Scott Appointed

By Am. Diversified
D iv ersified

be

with

answered

time./

the

-

.

that there will

means

Step Up
Purchases

;

Ever
1964

Bond

since

the
5s
of
August
put on the market the
interest
in
Government

were

public

obligations has
in¬
materially.
Also,
indi¬

vidual

investors

market

ligations

have

for

such

tax-exempt

ob¬

bonds

in

and
sizable

a

way,

adverse force from the

years

the

standpoint
capital markets.

of the money and

Small Attrition
The

' of

Treasury in its recent

definite

re¬

a very

in that the attri¬

success

minimal and well below

was

figures

which

in

at

had

some

district.

$462,000,000
asked for by the

th^t

of

areas

markets

to

appears

terms

Securities, Inc.
has announced

unfavor¬

not

far

Federal

the

face

of

bonds with

was

Home

Land

this

new

In

interest for

attractive yield the
decided
to
offer

an

Bank

bonds

1985 and this flotation
such

Loans

Banks.

due

in

getting

was

fine reception that it was
decided to increase the size of the
issue to $125,000,000.
a

Reinholdt &

last

Treasury

the

this

various

offerings,
the Fanny

as

Gardner to

concerned.

Public

were

as

the

the Federal

and

$100,000,000 of 5%

the

the

F.I.C.'s,

Mae's,

World

of

the

Government corporation
such as the

was

of the
refunding offer were satisfactory,
in addition, it is evident that the
improving trend in the money and
bond

been

that

owners

by

getting a
investing public

the

have

cash

in

the

the

from

late

fact

The

only

been

attracted

bonds which have been

play

of

a

the

opening of
Philadelphia

office

and.

the

pointment
as

to

1

t i

a

The

Re-

Thomas A. Scott

for

o n s

and

of the 47/8% cer¬
$2,000,000,000 of the
month 47/s% note.
Banks

Central

for
it

George A. Bailey & Co., Managers
of Sovereign Investors, Inc.

the

is

part

such

of

a

this last

as

York

March

1

Exchange

and

will

will

partner in the Exchange
member firm of Eastman Dillon,
become a

Union Securities &

Co., 15 Broad

Street, New York City.

funded

New

&

York

March

on

Stock

will

1

partnership

to

in

Gardner, 400 Locust

Street, members of the New York
and Midwest Stock

Farm

Exchange.

the

Co., members
of the New York Stock Exchange,
has been formed with offices at 1
Wall
Street,
New
York
City.
Partners will be Gerard S. Smith
and Gerard W. Smith, who will

the

saw

fit

to

jor

formed with offices at 1420 North

Exchanges such
been

made

by

the Central Banks

switch

of

issue

in the past, and
holdings from a
into

with

one

tend the due date of the

debt.

in

are

with

to

seem

the

a

formed

Salle

William

Mc¬

has

offices

at

120

Street, to engage
business.

Officers

J.

McKeown, presi¬
dent; James, lp. Norville, secretary;
Norville, treasurer.
,

and Allan J.

F. J. Mohr
J.

FRANCISCO,' Calif.—Frank
Mohr is conducting a securities

business

change

Opens

SAN

obligations into an
umbus
note maturity does'
indicate any

with

J.

Inc.

Company,

securities

a

Govern¬

This exchange by the

maturing

issue
not

in

111.—William

and

a

Federal Reserve Banks of part of
the

Keown

maturity has helped to' ex¬

ment

Lincoln

are

McKeown Co. Opens
CHICAGO,

South La

have

Officers

Hankes, president; M. W. Hanks,
secretary-treasurer;
and
Byron
Watts, vice-president.
>

been

from

offices at 454

Avenue.

He

was

Col¬

formerly

with Frank Knowlton & Co.

policy of "bills only" for

L. H. Mooser

monetary control purposes.
Deposit Banks Important Buyers

To Form Lederman Co.

JUNCTION, Colo. — Ma¬
Underwriters, Inc. has been

ex¬

$2,000,000,000 of the
due November 1964,
the longer maturity in

one

h

"

GRAND

was

this

as

for

option deal.

note

S. Smith &

in

Extended

Banks

short-term

membership

was.

Major Underwriters

(Special to The Financial Chronicle)

notes

which

this

Form G. S. Smith Co.
Gerard

one

of their holdings in
securities that were being re¬

membership in the New 47/s%

Stock

the

and

admitted

change part
the

on

security when
package offering

tion

To Admit Partner
a

in

Exchange,

22nd Street.

Reserve

Zeltner

ex¬

However, in this recent opera¬
of the Treasury the Federal

Eastman Dillon

acquire

usually

near-term

Debt

Paul

bership

change their positions in obliga¬
tions which are being refunded

Manager

Dealer

LOUIS,
Mo. — Edward
J.
Cohan, Jr. will acquire a mem¬

four year-nine

joining the
firm, Scott
of

Federal

ST.

Reinholdt

tificates

Manager.

was

4%%

be

$3,507,060,000

local

Prior

new

ings of the maturing issues in for

A.

Scott

$3,421,000,000

Reserve Banks turned their hold¬

o f

o m a s

of

into the

Admit Partner

accepted

certificate. The

one-year

ap¬

$2,171,000,000

issues

4%% note due 1964, and

remainder
converted

was

T h

maturing

new

the

42

at

15th St.

South

the

of

owners

H.

The commercial banks,

accord¬

Opens

SAN

FRANCISCO, Calif. —Louis
Mooser, Jr. is engaging in a se¬

curities

ago.

business

slowdown include

•

Subsequent price

declines and/or

.(ft'

rate of return which is also avail¬
able
in
these
securities.
Other

borrowings
until April. This should not be an

from

offices

at

Possible factors
Lederman & Co., members of the ing to advices, were among the
520 Clement Street.
confu¬
New York Stock Exchange, will important buyers of the maturing
sion over new tax laws "threat¬
Feb. 15th issues, which were then
be formed as of March 1 with of¬
Robert S. Lansburgh
ening the industry" and the overr
turned in for the November 1964
fices at 52 Wall Street, New York
discounting of the future fro*11
note. In addition, these same in¬
Robert S. Lansburgh, a partner
City. Partners will be Stanley
extremely rapid gains during the
stitutions
made
purchases out¬ in Stein Bros. & Boyce, passed
Lederman, member of the Ex¬
first half of the 1950s. Competent
change, ' and Arnold .-Lederman-. right of the 4%% due 1964/The away Jan. 26 at the age of 83. Mr.
managements cah be counted upon
Stanley Lederman will retire from appearance of commercial banks Lansburgh had been a member of
to adjust to tax changes in a con¬
in the market for Government is-, the New York Stock Exchange for
partnership in Richter, Lederman
structive and profitable manner.
three

!

corporate

as

evidently

.

into

come

non-Federal

not be any new money

Pa.—American able forces
operation of

PHILADELPHIA,

small

so

maturing 3%s and IV2S

individual

their highs two or

and the fact

success

attrition

guessed

First National

less permanent re¬

or

Individuals

the

financial

The

will

great deal of

the

of

more

turn to the
money and bond mar¬

creased

and before
that spent time in the Orient with
Division

institutions.

marketable

tic

stocks over the
a
past decade have registered ex¬ acquire
traordinary capital appreciation in Exchange.
Although

"

■;

the

earnings and book values of life
ported

much better

a

tion

Eastern

their

refunding operation of the
Treasury. was
marked
with
a
the

pressure for

-

these

appears

The

the

financial1 statements

the

insurance

condition

for

Laird.BissbllOMebds
120

by

present for policyholders, they do
not easily reveal the company's

the

of Gross Income

Members New
Members

force

from $493.6 billion in 1958.

stocks reached

Breakdown

in

$534 billion,

might

Branches

54 PARLIAMENT

come

end

year

$6 billion gain over

a

Life

1958.

two

Office:

BISHOPSGATE,

high of approxi-

new

a

mately $113.6 billion during 1959

psychology

equity market and

that

the

indicate

purchases by the
deposit banks are just a response
to all attractive yield or it means

would
equities.

funding operation achieved

Far

Whether

these

,

also

to

conditions,

inflation

bond

but

lessening of the

passage of

certain

For many years he was Person¬
nel Director for The Great Atlan¬

Pacific Tea Co.,

some

1961

appears

funds ..from

ing of funds in bonds, which with
more

firm.

&

February
47/ss of 1964,

kets

securities

1,298

increased from $66.8 billion to
an estimated $68.5 billion.
Total
assets
of
American
companies

improving

of

bonds but there is also the invest¬

indicate

damental soundness of the essen-

is

income

small way is this at the

no

Petersburg in¬
vestment firm, most likely

holding of insurance
long-term growth. Fun-

Outstdg.

found¬

a

Stark, Inc., St.

the

Price

1959-I960

122—100

Gunther

President

Shares

those

investment.

Distribu¬ to have abated substantially and
Group, this could mean a less attractive

and

Indie.

for

have been put to work in

be noted in the table presented. If
current income can be

Price Range

85— 68

The

partner

INSURANCE

Ins.

for
and

Before join¬

less

Mean

Nat'l

Vice-

ing

stocks for

attract

to

funds

of

Mr.

Recent

American

The

gains.
This combination produces rela¬
tively low dividend returns as can

support

continue

have

Distributors expense
of
the
equity market.
Inc., have appointed Cas There is not only a shifting of
Gunther, of St. Petersburg, Resi- money from common stocks into

offer the

combination

a

CHIPPENDALE, JR.

Group,

than average capital risk with
po¬
tential
long-term
capital

Appro*. Bid

8

—

Florida

stocks

T.

market and the bond

money

who

bearing
ST.

Georgia.

Life

BY JOHN

which

AnnOITltQ (^-11 ntVim*

Cas Gunther

13—

com¬

issues

The

Investment

1

LIFE

MAJOR

consid¬

present

are

market

•

Life

as

they

-

more com-

continues

need

on

generally enjoy marketability and
sound operating records.

plex network of interdependence.

>4:;
Although past growth has been
impressive the market for life in¬
surance
coverage is unlikely to
reach a state of saturation.
The
current percentage of life insur■■"'■V

ture.

ever

Reporter

the

leading U. S.

necessarily

attractive

mitments;
ance

in

23

companies in order of the amount
of life insurance in
force.
All of

BVRR1NGTON

ered

point to 1960 as a very

Our

insurance

included
the

represent

them

indications

(679)

& Co. on Feb.

29.

sues,

not only to pick up the 4%sv 62

years.

:

I

!"■

S

(680)

that economic growth

A Correct Monetary Policy:

idea

these, perhaps, is the

of

all

is needed to

the vitality of our eco¬
political way of life.

express

nomic and

What It Can and Cannot Do
Continued from page

and
not
The

about without a price.

come
'

sav¬

did

intermediaries,

through

price was, of course, a rise in in¬
terest rates.
These rates, repre-

'

penalty to those who use
money and a re¬
ward to those who save and risk
their funds in loans and investsenting

else's

in some instances to
levels in three dec¬
What happened is readily

ments,
the

rose

highest

ades.

effective only so long as

situation.
the

whether

apparent: the pressure of demand
for funds arising from a combina¬
tion of
forces—a
large Federal

needs,

run

-

funds,

for

seasonal «ieeds,

meet

short

other

for

or

formation, and the basic
of funds through saving.

capital
supply
Federal

actions

Reserve

for long
above

cannot

enforce rates of interest
that

market

the

on

demands

to

include

realities

These

basic

a

someone

'<

policy is
it works
in
general consonance with the
economic realities underlying the
Monetary

exaggerated.

3

healthy flow of funds from
ers
to
borrowers,
directly

maintain

balance

a

rates

that

between

sav¬

the

below

or

either

are

ing and investment.

Changes

the

in

rate

of

mone¬

budget

tary growth can represent only a

construction

small part of the total flow
of funds through credit markets.
If the rate of monetary
growth
were raised with the specific ob¬

deficit, high residential
activity, rising ex¬
penditures for consumer durables
and

inventories

for

and

to

some

capital, plus the con¬
tinued high level of expenditures
«by State and local governments on
community facilities — converged
to bring about a competition to
extent fixed

that

borrow

interest

drove

rates

upward; the rise in interest rates,
in turn,
operated to induce the
savings and investment necessary

borrowing demands. In
the direct effect of the
enlarged credit demand

very

jective of adding to the supply of

interest rates gen¬

erally and to cause some changes
in
the
relationship
of interest
rates

credit

different

the

among

been

brought

mittee.

They

Com¬

terialistic

not solely ma¬
they are not all

are

and

subject to expression in statistical
terms. They include, for example,

quality of our edu¬
cational system and of our health
services
not
just
additional
school
rooms
or
hospital beds.
the improved

—

Despite difficulties in measuring
true
growth precisely with the
tools

at hand, we

now

some

more

and

progress

much

ago.

the

about

than

growth
years

have made
now
know
nature

known

was

some

Early in its existence,.the Board
recognized that measurement of

measurement

and

action

Such

would

gen¬

expectations of further in¬

flation

the part

on

of both groups.
place,

it

its

is

national product.

gross

output

This,

of goods and
measured by

output

which

services,

dol¬

involve any
growth. Quite aside from its
other evils, inflation brings about
misapplications of resources that
actually reduce the true value of

tivity is to reduce the
resources
required in

lars, but it would not

industries,

real

which

There must

production;

current

in a stable
develop¬

be sustained confidence

adverse

such

for

dollar

ments to be avoided.

dence

on

a

besides confi¬
stable dollar.
In my

of factors

in

a

view, the following are the
chief supplementary factors:
(1) Balanced and sustained de¬
mands for labor and for the prod¬

particular
those
in

consumption

consumption

as

a

creates

and
tural

problem

a

of

unemployment.
the

struc¬

Steps

economic

loss

to

to

the

and the hardships for in¬
dividuals resulting from shifts in

nation

the pattern of production are an
important public responsibility.
If
to

on

effect

to

to be able to continue

are

we

rely

the
the

in

price

mechanism

growing

a

of both

prices

adjust¬

necessary

economy,

„

(2) Improvement in technology

food'

of

slow, steady rate. The
process of moving resources ag¬
gravates our cyclical difficulties
at

grows

ments

of business;

ucts

such

amount of

especially

,

end-product

lessen

depends

growth

Sound

>

number

end products and

the factors
of production • must
skills;
move freely
in response to shift¬
(3) Adequate capital formation
and supply- condi¬
based on voluntary savings;
5 ing demand
Imperfections in the price
(4)
Greater
mobility
of - re¬ tions.

and

mechanism

and

sources;

is only part of our na¬

total

tion's

of industrial

change and growth.

is true,

National

Gross

the

Product measured in current

-

prices. The process of
inflation is widely un¬
derstood by both savers and bor¬

keep

to

Thursday, February 11, 1960

own

*

,

of

. .

suggested, when the rate of ex¬ problems of adapting workers to
the technological and
sociological
pansion slows down because the
demands of the service
industries
economy is operating close to ca¬
which
are
the
more
rapidly
pacity, that a more rapid expan¬
sources
of urban em¬
sion of bank credit and money /growing
would stimulate greater aggregate ployment.
Flexibility in the shifting 0f
output. In fact, such an attempt
would only lead to a bidding up resources, of great importance for
maximum growth,
of costs and prices as various sec¬
is extraordi¬
tors compete for limited resources.
narily difficult to achieve. £>ne
It is true that this would increase of the effects of growing produc¬

clearly temporarily

out so

hearings before the

the

average

attempt

an

rowers.

up

in

monetary

erate

to bid

has

physical output was essential for
proper formulation
of monetary
policy, and undertook a special
responsibility for the statistical

summary,

greatly

expands and is more
widely shared, agreement on ap¬
propriate economic goals becomes
more
urgent.
These
goals can
never
be blueprinted exactly—as
United States

in¬
terest rates down, the additional
dollars
in
the
spending stream
would
certainly work to
raise

in

funds

to supply

was

in the

abundance

economic

As

Chronicle ■.

Commercial and Financial

The

24

Sufficient flexibility of in¬

(5)

dividual prices.

Although there have been three

However,

be

must

rooted

out

wherever

they may exist, if
free
enterprise
economy
is
realize its full potential.

our

to

postwar recessions, demands for
Prospects for 1960
labor and for the products of busi¬
activity is a dynamic
/;
In early 1960 the economy con¬
ness;: have been reasonably well
tinues to show a sharp pick-up
unquestionably tend to increase central element;, growth in the /sustained over this
period. Dur¬
from
the
period
of
hesitation
borrowing and discourage saving physical volume of industrial out¬
ing each of these recessions, sta¬
and in all likelihood rates would put merits special study in its own
caused by the steel strike.
Eco¬
bility of consumption helped to
increase. /;/
nomic
right because of its central role as stimulate
activity is vigorous and
early revival. This sta¬
a force shaping
total growth.
prices
are
reasonably
stable.
In the longer run, the way that
bility in final demand encouraged
it is possible we
When
I
appeared before the entrepreneurs to maintain capital Nevertheless,
monetary policy can contribute to
a
lower level of interest rates is Committee last summer, I noted expenditures at surprisingly high may encounter a renewed spiral
in
the
upward
movement
of
through its role in maintaining a some preliminary findings of the levels even during temporary re¬
stable value for the dollar.
It is recent revision of the Board's in¬ cessions; Such expenditures fluc¬ prices, or, perhaps, find that the
only in an environment of con¬ dex of industrial production, prin¬ tuated moderately considering underlying strength in the situa¬
fidence in such stability that sav¬ cipally
the
greater
industrial their; long history of instability; ; tion is not so great as most ob¬
servers
now
feel.
In these cir¬
ings will accumulate and credit growth shown by the newly re¬
How much further the process
are faced
will flow in an orderly way and vised index. Since then, the final of economic stabilization can be cumstances, all of us
of the
new
index
have carried remains an uncertain is¬ with a particularly sensitive prob¬
in expanding volume. Efforts to results
lem of maintaining prosperity by
maintain an artificial level of in-, been published, thus supplement¬ sue. All men of
good sense want
endeavoring to prevent either a
terest rates, either too high or too ing the 'tools for; analyzing past to
see
our
economic

The incentives of the market

would

prospective,

and

present,

in

advanced economy, in which

an

industrial

.

markets; the resultant effect was
to
draw
more
funds
into
the
and

market

credit

shift

to

some

funds from accustomed uses.

Let

said

I

to
banking

add something here

me

what

the

about

system's service in 1959 as an
intermediary between the saving
public and the borrowing public.
On the one hand, the saving pub¬

.

.

lic,

purchasing

besides

securities

large

a

I

de¬

volume

of

scribed,

increased their time de¬

as

posits by about $1.5 billion.
On
the
other hand,
the borrowing
their

of

com¬

nearly $12 bil¬
to meet the

raise funds

To

from

obtained

loans

mercial banks by

lion.

amount

the

increased

public

heavy demands on them for loans,
the commercial banks sold about

their government
security
holdings in the open
market, while the nonbank pub¬
lic, as stated earlier, was increas¬
ing their purchases in that mar¬
ket.
Thus the banks, in effect,
drew out
of the market,
from
individuals and corporations not
of

billion

$8

engaged in lending, the funds to

credit

specialized

the

meet

mands

of borrowers

—

de¬

for in¬

as,

stance, many small business con¬
cerns—that could not themselves
-

in the

funds

raised

have

because their needs

able

for

market
unsuit¬

were

market partici¬

general

only lead to cumulative

can

Industrial
production/^ is ;V the
output of real goods produced by

economic

growth.

Whether monetary

policy

has

System

times, too

at particular
or too tight is a

easy

matter of judgment.

another,

or

in

erred

rection.

But the System

sistently

endeavored

Federal net borrowing of

quired

of around $19
Federal securities by

absorption

billion

in

other investors.

periods of slack and
in periods

pressures

when resources

were

sively utilized.
I want to emphasize again that
the Federal Reserve System wants
low and not high interest rates;

vestment

and

of

is

the

with

finance

to

suffi¬

the

in¬

for desirable
economic growth. We

rapid

stream

level of interest

a

necessary

cannot say

that

a

steadily swelling

saving^ and investment

only essential for satisfac¬

growth, but, especially in a
country where the
natural re¬

tory

sources

are

oped, it is

a

already highly devel¬

vital element.

Record of Economic Growth

Treasury

the

raise new funds
while shifts were taking place in
having

being inten¬

This, taking into

that

consideration
was

to

security ownership,
a long way toward explain¬
the rise in both long- and

The

subject of economic growth
has received exhaustive study by

government

the

goes

during the past year.
It is an
important subject because only
growth can produce the substance

ing

short-term

rates

that

we

expe¬

It is also
illuminating evidence of the re¬
sponsiveness of nonbank inves¬
tors to attractive interest yields.
rienced during the year.

What

Monetary

Policy Can Do

The relation of Federal Reserve

policy to changes in interest rates
is

often

Reserve

misunderstood.

release or
absorb bank reserves unquestion¬
ably influence short-term and also
long-term interest rates, but the
extent

operations

Federal

of this

to

influence




is

easily

year,

Joint

Economic

Committee

,

of

This

industrial

2%

over

words,

we

output

per

In

year.

other

producing

are

industrial

capita

per

31%

.

product for each

woman,'ind 1 child

man,

we

industrial
even

worker

more

of 3.7%

rapidly

per annum

Output

has
—

in

at the be¬

were

ginning of the period.

used

fully

/ will

with 1.7% for
is a growth in

compared

as

population.
real

America than

inflationary

consonant

$11 billion and bank sales of gov¬
ernments of nearly $8 billion re¬

con¬

^.

dex shows that, since 1947, indus¬
trial output has grown 4.1% per

tendencies in

is

years.

has

cultivate

to

economy;/

factories, ihines, and electric
and gas utilities. ' Our revised in¬

more

savings

this role was
in other recent

doubt

our

our

confidence in the stability of the
dollar—by combatting deflationary

as

1959,

time

one
no

degree in each di- I

cient

In

At

have

we

some

rates

scribed.

ad¬

been,

clear¬
ing house for credit flows is ap¬
parent in the circumstances de¬
much larger than

as

ministered by the Federal Reserve

role that the Federal

The vital

changes in. the .indus¬

torting and then disrupting healthy

low

securities market plays as a

future

financial disequilibrium, first dis¬

as

I

and

trial sectors of

it wants

pation.

resources

.

low,

per

increased

at the rate
the same

over

The revised index of industrial

production also introduces

grouping of total output.
measures

a

new

Output

for finished goods have

employment
opportunities available for those
willing and able to work. Satis¬
factory economic growth and rea¬
sonable
price: stability
are
not
only
compatible
goals,
in
my
view, but they are necessarily in¬

terdependent.
we

in

employment
are 1
probably
unavoidable
and
that, in the present state of the

this

new

grouping

Briefly,

suggests

that

postwar years, civilian
duction, and particularly the

pro¬

over

duction

of

consumer

goods,

pro¬

has
evi¬

expanded almost without any
dent slackening in pace at a rate
of growth of 3,7%.
Moreover, the

cyclical interruptions in the out¬
put of civilian goods, especially
goods, have been rela¬
tively small. It is mainly in the
production of equipment, includ¬
consumer

developments in

our

economy po¬

tentially favorable to growth.
Advancing technology and im¬
of

provement

general
Our

skills

depends
and

processes

cultural

on

the

environment.

national

pricked

by

nations

have

beaten

in

us

of technological

aspects

some

in

military

of

hardware

not

but

mounting competitive¬

the

rest

of

Products from abroad

the
are

world.

increas¬

growth primarily as

a

req¬

uisite of effective defense against

potential enemies.
as

a

means

of

Others want it

improving civilian

expanding trend.

If

we

are

our

part.
to maintain our

com¬

petitive position in the world, we
must also make regular additions
to our productive capital and to
our

efficiency.

formation

drive

of

Adequate
depends both

business

ceive

Continued Growth
While

to

capital
on

the

make

industrial

growth,

as

the
top
peaks in

of

successive

re¬

Near

postwar

activity, unemployment

put, many measures of growth are
expressed
in
terms
of
current

structural imbalances growing out
of the problem of transferring the

force.

nomic

against
dollar

We must

constantly guard

mistaking
increases
in
magnitudes for real eco¬
growth.
It is sometimes

gests that
a

condition

minimum

decline

of

reason¬

The relatively

fiscal health.

able

ity that

economic

in

activ¬

marked

jected

in

occurred

and

1959.

which

is

er.

In

part,

this

may

be

due

labor force from industries

to

made

obsolete

higher
balance

by growth to areas of
labor demand.
Such im¬
may

also stem from

the

pro¬

in the budget estimate

for

1960, results in a barely balanced
budget in 1960 and a budget sur¬
plus of no more than $4.2 billion
in fiscal 1961, the average result
of the full period is a net deficit.
Such

outcome

an

would hardly

symmetrical economic
policy. It would therefore appear
that larger budget surpluses are
represent

prosperity if
to make
persistent increases

needed

in

times

of

we

to

avoid

having

are

and

regular

in the public debt.

relatively

The

be¬

investment in
ahead, with the ac¬

saving

the

and

period
companying prospect of less pres¬
sure
on
the rate of interest, de¬
pends

in

large

part

the im¬
the Fed¬

on

proved fiscal position of
eral Government.
I

doubt

that

of

could be

anyone

limitations
monetary policy than are the

more aware

members

must

resources

continuous attention.

has tended to be somewhat high¬

dollars.

Experience since 1957 sug¬
a surplus of this size is

sage.

the

the production index,
physical volume of out¬

reflects

living standards. Still others re¬
gard growth as a way of assuring
employment of a growing labor

Transcending and including

Mobility of

Conditions Required for

as

the

in

tween

on

measured by

national

same

surplus of an amount at
large as the one outlined
President's Budget Mes¬

budget
least

aided

achievements

seek

indi¬

hope that our part
monetary authori¬
by a healthy

as

be

can

favorable outlook for balance

voluntary saving.

and

the

our

ties

ingly penetrating
our
markets.
This challenge,
however, may well
provide
the
stimulus
for
new

its

At

achieve

task

in this

develop¬

This evidence is found

only
ness

pride has been
discovery that other

aspirations.
time,
economic
growth is a confusing subject be¬
cause it means so
many different
things to different people. Some

vidual

to

//•;/;• /////'•'■ .vv'-'A •'

I sincerely

1957-58 re¬
sulted
in a
deficit of over $12
billion in fiscal 1959.
If a level
of economic activity as high as

capital investment and the avail¬
ability of adequate funds from

which

tendencies.
v,

pressures

deflationary

of

brief

arts, it is hard to see
complete stability could be
achieved
without
stifling
some

ing defense goods, that output has
shown greater fluctuation about

with

development

or

economic

also in the

also

of inflationary

renewal

how

for output of materials have

together.

time

same

prices and

ment.

grouped

At the

all recognize that some fluctu¬

ations

been grouped into the broad mar¬
ket categories for consumer
goods
and equipment, and the measures
been

good

of

men

have

want, to

educational

period.

all

and

of

of the real

the

Federal

Reserve

the area
responsibility which has been
given to us and in the discharge
of
that
responsibility
it
has
Board.

It

is,

however,

of

seemed

that the

most con¬

contribution

monetary

to

structive

us

policy can make to the vigorous,
healthy growth of the economy
in the present circumstances is to
maintain confidence in the value
of

money,

people

to

and
thus encourage
and invest in the

save

Number 5924 ...The Commercial

Volume 191

that

capital improvements

wic

AS WE SEE IT

nation's productive

to our
strength.
add

relevant to here refer to
„ip statements that I made in
f feeing portion of a letter to
Chairman Douglas on Dec. 9:
in

interest

kmv

use

directed toward a dollar of
value is not based on the
peling that price stability
is a
more important national objective

emphasize that I am
most | concerned with the preser¬
vation of freely competitive mar¬
kets and the correction of any
institutional imperfections which
exist in the working of the price
mechanism. While such imper¬
fections cannot be corrected sim¬
want to

ply by a sound
fiscal policy, they
be corrected by an

and

monetary

surely cannot
unsound finan¬

cial policy.

does

"Nor

general

sound

a

policy necessarily, in
itself, accomplish
the optimum
distribution
of
loanable
funds
among various sectors of the econ¬
omy. It is not only the right but
monetary

government to assure

the duty of

socially necessary programs
adequately
financed.
But,

that
are

again, this objective can never be
well served by unsound general

If, as
a matter of public
policy, the fi¬
nancing of school
construction,
for
example,
should
have
an
overriding priority in the alloca¬

all

this

complished in
but

be

can

we

not be

a

be ac¬

can

number of

wavs,

that it would

sure

accomplished by the

gen¬

eral expansion of bank credit and

money."
In

add

a

conclusion, I should like to
word about what monetary

policy

can and cannot do.
It can¬
effectively peg interest rates.
It cannot prevent monopoly. '*■ It

not

cannot

that

assure

needs

of

all

activities

financial

the

desirable

socially

without

met

are

inter¬

vention by government. It cannot
be relied upon to cover Federal

deficits.
not

Alone, it

certainly can¬
either
stability
or

assure

growth.
What
can

the

correct monetary policy
is to foster confidence in
a

do

dollar,

and

''■■■

•

will

that

so

and

save

future with

people can

our

invest

reasonable

the

in

assurance

that their plans will not
trated by
irresponsible

be frus¬

changes

in the value of
money.
^Statement
Joint
D-

by Mr. Martin before the
Committee, Washington,

Economic

C., Feb. 2, 1960.

.

a

The
a

other day

constantly in

use

is

JOHN

BY

also

He

some
or

up

fishing, and his fam¬
just about a suffi¬

a

around the

presence

looking for

was

busi¬

a

but

at

the

his

to

come

offers

needs.

"budgetary reasons." There
in

are

those who apparently

circumstances find the powers that be
doubly guilty—first in that "needs" are being neglected,
and, second, because a balanced budget-—always deflation¬

and wholly undesirable in this "brave

ary
so

all

too

New Dealers

many

seem

in

me

had
I

no

a

of

go

Here
ated

a

successful

a

had

place of respon¬
sibility who does not weigh the various defense elements
against their cost in formulating a general program of
safety would be seriously derelict in his duty—and all but
certainly would do the cause of defense harm rather than
good.

pleasant

a

personality.

Yet

some¬

ple,

product, and the
seek out

a

in

this

safety requires
Some of these

there

country

are

a

number

of

men

who strongly believe that

am

Congress

Requisites

Salesmanship

leaving

of

hire

would

Same

or are

Endeavor

such

Packard

have

Hodgdon
All

&

were

Upham

joined

give
are

and

his

Co.,

10 Sstate Street.

formerly

&

staff of

Harris,

with

Co.

To Be Director
Harry
a

*!

l

l.

Murray will acquire
membership jn the New York

•n

Exchange, and

,

will

become

Feb. 11

on

Director

a

Good-

of

Neufeld, Jordon Co., Inc.,
Park
Avenue, New York City.

400

Form Public Investing
Public

Investing
with

Inc.
has
offices at 16

I^th street, New
gage in
a

uifieers

are

York

securities

Joshuah

pjes}^ent; H. Barry

fresident;
'

and

to

business,
S.

Shultz,

Ressler, Vice-

Richard

fnrmSejHayes Co

West

City,

D.

°ecretary-Treasurer.

Mo-se-Hayes

.

been

Ress-

r

Co. Opens
'

Inc> bas

been

with offices at 116 West
to
Street, New York City
R',J.gage in a securities business,
Pa,.

?

would like to force
are

available today.

courses

businessmen

hind them

outlays,
as

still

who

pn

of t

Friedman

*s

a

This seems to us to

PriooiP3*




Requirements

They

requirements of greatly

increased defense

employed in enlarging our defense operations with¬
enlarging production or reducing outlays else¬
where. Attempts to build more and bigger rockets, more
and better missiles, and all the rest that go along with
broadened and enlarged defense operations without at the
same
time either making fewer, automobiles, building
fewer houses, producing less farm products, curtailing
labor

out either

capital expenditures, or in some other way
time activities can end only in futility and

reducing peace¬

inflation unless
we are prepared to step up total production substantially.
One great step forward in all this defense controversy
would be taken if we, one and all, gave up the idea that
there is something inherently harmful in prudent manager
ment of our public financial affairs. There is entirely too
much half recognized feeling that if defense expenditures
were increased substantially at the expense of a balance
in our fiscal operations, we should have one more "built-in
recession snubber to aid in the attainment of the objectives
are

con-,

If

of

im¬

these

meritorious,
opening an ac¬
are

for

are

later with

the

of it.

rest

conference

a

approach to
finest type of

business is the very

Re¬

salesmanship.

have

is

It

basically

sound because it evaluates

how

know

ation, determines
and it makes
that

situ¬

a

they
have

he

and
they
are
ma¬
they have devoted
at least six months of study ac¬
and

ments

under

placed
either

salesmanager or

a

salesman

and

closely with
■

start

out

a

be

investment

of

completed by the firm's
department.

a

senior
work

full employment act.-'*'

in real danger if

•

/*

election year politics must

determine our defense program.

of
not

without

York

to

accounts

years

many

experience

allowed

000

call
that

should^
in¬
insti¬

upon
are

tutional in character, or upon very

experienced and sophisticated in¬
vestors.
There are
trading ac¬
counts that also require the serv¬
ices of very

experienced registered

representatives.
A in
advertising
campaign should be directed to¬
ward one or all of the following
categories of investors: (1) Young
people starting out in life who
might
invest in mutual
funds.
(2) Retired or semi-retired indi¬
viduals who are not capable of
managing a diversified investment

portfolio but who would welcome
some assistance from
a conscien¬
tious firm who would help them
set

up

a

comprehensive invest¬
suited to their par¬

ment program

ticular

requirements,

suitable period of
ing, the next step is to
appointments to discuss the
pect's investment situation

v.-

.«After

a

be

research

Securities
Corp.,
of
City, on Feb. 10 pub¬
licly offered as a speculation 300,New

~

men

vestment

the

Mid-Town

Approach

Conference

investment
be

pros¬

and

should

proposal

shares

of

one

New

the

Corp. Offers Stock

through and given

test.

The

of

needs

people who need

meeting

fair

a

analysis

investment

Florida West Coast

stated

in¬
vestment help and guidance.
A
planned campaign along the fol¬
lowing lines should be successful
of

The

work.

They should
objective

them.

with

confidence through doing his own

pect's

should

they

own

self-

the

supervision

the

his

gain

only

then

should

they

business,

learn-as-

man

make

will

He

inter¬

second

new

and

earns

friends.

the

on

the

of

mechanics

the

Let

invest¬

of

knowledge

a

along

view.

After

quiring

is

man

judgment
ture.

an

need (if any),
overall appraisal
a

basically sound. I am not
in favor of sending a senior sales¬

well.

business

patience,
to study,
they

have

if it is followed

expenditures, as a matter of fact, go much deeper than
budgets and public expenditures. The fact is that we can
not on the face of things add greatly to the capital and

We

a

he

for

situation.

the

Such

fit into the invest¬

can

securities

ment

they

larger defense expenditures upon the
ardent advocates not of reduced but

Basic

of the so-called

wherein

department

chances

in

adequate training and
in investments.
There
excellent
home
correspond¬

good health and who have a life¬
time of business experience be¬

only balanced budgets but debt retirement. The fact is
that at least some members of Congress who obviously

The basic

for

arrange

good. Sometimes he will
only be able to J obtain partial
acceptance of the proposal but
this, too, is good. He can then fill

him

ence

complaint to

Coolidge,

the

con¬

Before

recommendations

and

research

count

and

man

a

schooling

tionately, (2) increasing taxes, or (3) incurring large def¬
icits at a time when all considerations call loudly for not

Stanley L. Emery, and Edmund A.

prospect.

recommendations

give him a better than fifty-fifty
rating for becoming a competent
investment man providing I could

active in shaping broad

enlarged expenditures in other areas.
be the essence of irresponsibility.

(Special to The Financial Chronicle)

should

conference

proving

in

'

BOSTON, Mass.—John

he

second

Successful

for

Are the

Lines

All

I

public policy. They rarely, if ever, face the fact That such
increases in defense outlays as they advocate can not be
effected without (1) curtailing other expenditures propor¬

'

With Hodgdon & Co.

his

elusions

tired

do, however, have a very definite

Administration

of

toward

the

....

against these advocates of larger defense
the informed and sincere advocates so far

are-members of

headway

promises to return with the

The

sphere are less well informed. There are others who are
demanding larger defense outlays because they think it
good politics to do so at this time. We certainly do not
consider ourselves sufficiently informed to reach an in¬

even

made

fidence

his

be quite well informed—if not as well informed as
the President himself, then not very far from it. Others
who are not satisfied with what we are doing in this

We

have

and he would work.

may

diverse elements.

prop¬

clientele in any line of business—

much larger defense effort on our part.
individuals, probably, are in possession of

facts not available to the rank and file. A few of them

make

necessary

is

gaining the respect and

practical rules that
to build a loyal

are

our

Step

the first conference

will

he would

sure

and the
(if any). In

erly handled by the salesman he

to

common sense

learn the very

and

a

dependent judgment upon the views of these various

If

product that had merit.

Beyond this I

Unquestionably,

Second

qualification to meet peo¬
intelligence to contact

the

those who would buy and need his

Sincere Doubters

deposits,
owned

investments.

thing mysterious about successful
salesmanship. I am sure that he
had the

loan
now

addition, the objectives of the in¬
vestor should be clearly defined
such
as
growth,
income,
both
growth and income, or defensive

business, he had
fifties, and he

he had the idea that there is

and

securities

retired in his early

fostered. Of course, real defense needs must not be neg¬
lected for any reason, but that official in a

women

retirement program
if any, life insurance carried, cash
in bank, government bonds, sav¬

something

who had oper¬

man

pros¬

estate owned,

ings

was

it

and

pect, family, state of health, real

like that."

world,"
to believe—is thus
new

confidence

following questions: Age of

surprise and said, "I've
a good salesman.
I've

make

build

should produce the answers to the

experience; I wonder how

could

the

should

were

been

never

conference

a

table) in the pros¬
pect's home (usually with the wife
present).
The
first
interview

liking. I suggested that
he take up sales work. He looked

such

entails

This

(around

that

attention

mutual funds, or some
bonds, but to discuss (on
confidential
basis)
the
pros¬

pect's overall financial goals and

not to his

for

of

one

in which he could invest and

had

him. The approach is not
salesmanship, or of trying

concerns

he

and

stocks

participate,

the

retired

to sell

ciency of his
house.

talking with

was

with idle¬

had

effort to convince the
public that this, that, or the other
decision in the field of national defense has been made
would

DUTTON

past two years he had

The

done enough

ily

I

had

much fed

very

ness.

ness

tactic

who

man

was

priate in other fields.

unworthy

1,

t

The Conference Approach

thing when they accept
authority and proceed from there on in good
taith to conduct themselves as all
good officers are sup¬
posed to do. Off the same order is the sly trick of
making
use of materials not
supposed to be divulged to give popu¬
lar impressions that serve
political purposes. The 'Teak"
technique, if it must be employed, is much more appro¬
Another

.

shameful

constituted

*

-

.

CORNER

means

monetary or fiscal policies.

tion of resources,

"

majority of their colleagues, but to make

individual services do

either maximum

"I

ol

25

SECURITY SALESMAN'S

at their
disposal to defeat or to thwart
policies which have been adopted after full
consideration of all factors.
According to reports, appar¬
ently reliable, efforts at times have been made and are
being.made to have it appear that men at the head of

nolicv

sustainable
growth or a high level of employ¬
ment but rather on the reasoned
conclusion that the objective of
orice stability is an essential pre¬
requisite to their achievement.

Continued from page 1

programs or

Sable

han

with the

riors or

monetary

a

(681)

officers still in service not
only to differ with their supe¬

is

It

and Financial Chronicle

cent)

at

share,

pros¬
as

it

(par

price of $1 per
"best efforts" basis.

on a

a

:

The net proceeds which is" ap¬
proximated to be $240,000, will bo
used
as
follows:
(a)
$30,000 of
such proceeds will be utilized to
,

acquire

100

initial

the

of

acres

exercise

will

invested

be

obligations

in

the

of

land

of

held by the company;

an

upon

option

(b) $200,000
short-term

United

States

of

America, and (c) $10,000 will
be added to general working cap¬
ital.
The
on

ida

company

Oct.

was

incorporated

22, 1956, under the Flor¬

laws.

The

is prin¬

company

cipally engaged in the business of

holding,

purchasing,

and

selling

unimproved tracts of land located
in

Southern

lated

areas

Florida,

an

popu¬

office at 950 Sey-

bold Bldg., Miami,
utive

near

close to the west coast.

It maintains

train¬
make

stock

common

Fla., and exec¬

offices at 30

New York 22,

N. Y?

East

60th St.,

26

the

the economic

and

mon

in
localities
where the defense industries are
concentrated.
Earnings of these
industries will decline,
and the
investment values of their equities

may

policies of the Com¬
Market with the Free Trade

Area.

large extent on whether the eco¬

growth will be as rapid as
or
more
rapid than in the past
and particularly whether the in¬
flationary procesfe will continue.
If the latter is the case, then the
nomic

policy at least for the
immediate future, irrespective of
intermittent swings, is indicated.
investment

In

that

few years.
noted : that

more

even

the

was

of

power

will become

than

protection of
trust funds

the

case,

purchasing

necessary

during the past

case

However, it should be
the

if

inflationary

continue, the economic
growth of the country will be re¬
pressures

tarded and there will be

a

result¬

ant

sharp
decline
in business
activity accompanied by consider¬
able

unemployment and
crease in equity prices.

de¬

a

labor-saving devices in the manu¬
facturing and service industries
should bring to a halt the infla¬
tionary pressures generated by the
cost push factors.

Growth

The Population
increase

internal

resources.

considerable amount
of open market financing or pri¬
vate
placement by corporations
can be expected.
To what extent
corporations
will
finance
their
capital requirements through
stocks

a

will

bonds

or

the

whether

depend

on

corporate tax is re¬

duced.
It is, therefore, clear that the
population growth will stimulate
the economy. It will at the same

It

deflationary pressures.

mains

be

to

well
they

decade is cited as one of the most

therefore it is not certain whether

affect

the purchasing power will remain
stable or continue to decline.

that

will

the American economy

during the
One may expect

present decade.

neighborhood of 215
compared with about
at the end of

tionary

will influence

The growth in

during

has

both

search.

unfavorable

infla¬

deflationary

as

and

materially the

decade

eco¬

of

children

research,

on

the

and

will continue upward.

18 is estimated to increase

during
the next 10 years by 14 million.
Most of them, too, will be nonproducers. The rapid rise of the
population of school-age young¬
sters

will

for

schools,

the demand

accentuate

playgrounds,
and
facilities; and this in turn
place a heavy financial bur¬

other
will

den

and

state

on

local

govern¬

ments. It is doubtful whether

alone

will

be able

to

they
these

meet

financial needs, and greater press¬
ure
for school assistance will be

placed
ment.

the

on

Taxes

education

Federal

to

pay the costs of
have to be spread,

will

and many new
be levied.

The

the

indirect taxes will
of

the

to

people

from

industrial

sec¬

tions of the country will continue,
and this will create not only eco¬
nomic but also social problems.
In

the

half of the decade,
formation
will
increase

second

family

rapidly and the demand for hous¬
ing will be strong.
These developments indicate a
strong demand for capital and a
large supply of debt obligations in
the form of bonds and
mortgages.
The demand will come from the

increased

need

for

housing

and

the rehabilitation of urban centers

from state and local governments,
to
finance
the
construction
of
schools

and

from

and

endeavor

public

meet

the

of

power

population

works;

utilities which will

to

for

ments

other

the

with

require¬
growing

a

rising

living

standards.

These factors will con¬
tribute to the economic
growth of

the country, but
centuate
the

they also will

inflationary

ac¬

pres¬

sures.

inventions

This will create

against

these pressures, the
next decade will witness a
sharp
increase

in

the

labor

force.

has been estimated that the
ber
of

of
18

people
to

64

in

will

the

num¬

age

increase

million, and this will

It

group

by

15

create keen

competition for jobs. This situa¬
tion will
be further
aggravated
because management, as
the past
effort to

the

terial

force,

and

ma¬

and

labor

and

processes.

new

create

products, it destroys the value of
employment opportunities. How¬
ever, while research creates new
old

It

ones.

tion, for it
older to

intensifies

causes a

competi¬

diversion from

products.

newer

It leads

to new methods of

production and

to the invention of

new

labor-sav¬

ing devices which will have an
impact on the demand for labor.
During
the
decade,
great
changes will take place in the
of

sources

of

ment

The

power.

develop¬

electronics

chemical

industry

the

and

will

create

products which today are only a
gleam in the eyes of the scientists.
values and

new

the destruction of old

serious
to

problems

officer.

ment

ascertain

of

pact

for

He

in

create

ones

the

invest¬

endeavor

must

advance

the

im¬

-

these

developments not
only on the economy of the coun¬
try as a whole but also on in¬
dividual industries and
will

of

how

they

affeet the investment values

the

various

securities.

As

in

the past decade, investment favor¬
ites will change; and what appears

today

sound growth stock

a

excellent

hedge

not be

may

constant

against

changes

this

them

cut

labor
of

costs

of

impact

mind
of

are

to
the

invention

an

now

advise

possible
on

the

tries.
The

International

introduction




of

new

effect

adverse

an

on

activity

adversely affected by the constant
in

services.

the

Reserve authorities
compelled to follow a

be

policy of restraint, the availability
commercial

of

however, will enable the govern¬
ment to reduce taxes and to in¬

play

an

important

shaping the economic and

investment

climate

of

the

U.

S.

during the present decade. During
the 1950's, the U. S. as a nation
spent huge sums of money abroad
to rehabilitate the war-torn econ¬

of

the

industrial

nations.

This has raised the productive

ca¬

pacity and productivity of the in¬

ful efforts have

ordinate
western

the

been made to

economies

countries

of

this

last

the

of

end

the reestablishment of

means

international

the

market
interna¬

money

that

portends
of

flow

the

funds

will

the

in

future be guided by the movement
of interest
rates
in the various

of

Europe.

co¬

the

By

the

Since

expenditures
on
nondefense items.
The most desirable
crease

development would be a reduction
in
corporate and individual in¬
come taxes. Such a measure would
have

i

effect

favorable

a

e a r n

net

on

the flow of capital and
not
always to the best interest of the

would

desirable for corporations to

with

racy

finance their

capital requirements
sale of equities and

would

foreigners is large and at least
portion thereof can readily be
into

converted
a

gold, this imposes
discipline on the U. S., both

new

fiscal and monetary.

These

have im¬
the Administration and
Congress the duty to combat the
prevalent inflationary pressures.
posed

developments

on

Otherwise,

American

will
become less and less competitive
abroad, which in the long run will
lead
to
decreased
exports,
in¬
creased
imports, and unemploy¬
goods

Unlike the situation

ment.

in the

1920's,

the U. S. today is not in
position to raise tariffs.
Such

a

action

an

would

not

make

only lead to

retaliatory
measures
by
other
countries, but would also under¬
mine the economic and political
leadership of the U. S. in the free

would

initially have

adverse

effect

and on certain

in the
for

long

production
home
ate

to

take

widened

advantage

market

of

the

and

the

lower

costs of production and investors
to participate in the growing prof¬
its of the European corporations.

The Soviet Union and its satel¬
lites

also

are

important
present
1950's.
the

decade
The

costs

countries

of

the

production in these
of

are

and

can

in

than

portance than in

they

a more

role

during the
productive capacity of
bloc is growing; and

Soviet

since

likely to play

economic

much

im¬

less

the

free nation,
compete more

will

aggressively in the world markets.
above

described

the whole

on

are

develop¬
sound and

desirable, for they will check the
inflationary pressures throughout
the world and thus create

investment climate.

better

a

Relative price
efforts of the

stability and the
industrial nations to increase
pro¬
duction and living standards in
economically
contribute

retarded

materially

areas

cre¬

favorable

investment

cli¬

a

whether
will

pressures

The

decade

marked

by relatively high inter¬
The demand for capital,

indicated before, will be strong;
the ability of the banks to expand
their investments will be limited;

as

and

return to the money

a

ute

to

which

on

a

number

their
will

growth
be

and

reflected

prices of their equities.
International political
ments will also have

bearing

on

vestment

an

of

contrib¬

profits,
in

the

that prevailed prior to
the accord in March 1951 or dur¬

ing the recession

the economic and in¬

climate

of

the present
possible that
years will witness a
considerable reduction in defense
expenditures. The effects of such

decade.

the

a

next

It

is

quite

10

development briefly will be

follows:

as

of 1953-54

years

and

1957-58

and

to the restoration

is

not

likely. This is
due primarily to the changed in¬
ternational position of the dollar
of the

ternational money market.
now

on,

short

rates

money

terms

be

deter¬

only by domestic busi¬
activity but also by money

ness

market

conditions
prevailing
throughout the leading industrial

countries of the
The

cost

world.

outlet

an

in

the

not

persist

whether

cipline is practiced.

tionary
the

pressures

Federal

riod

is

on

inflationary

and

plus, it will lead

capital
and

whether

pressures

fiscal

dis¬

If the infla¬
curbed

are

budget

balanced

money

bonds

mortgages will depend
or

and

stability

and

the

pe¬

over

shows

or

to

a

a

sur¬

more

ciaries

the

and

be

balance

be-

equities.

income

of

enable

benefit

to

nomic

growth

and

In-

in

the

the

the

eco-

nation

industries.

and

Great

selection
indicated

and

before, the fruits of

will

create

destroy old

If

the

values

new

ones.

inflationary

pressures

persist, investment should be con¬
centrated primarily in equities or
in bonds which

with equity

move

prices. However, inflation cannot
last long and will soon lead either
to

devaluation

a

to

of

the

dollar

decline in
Under
these

sharp

a

activity.

or

business
circum¬

stances, it is of importance not to
overstay
to

not

the

equiy

work

At
the

the

market

the

on

that the inflation

and

assumption
last forever.

can

beginning of the decade
is hopeful.
Monetary

outlook

discipline has been practiced in
spite of great political opposition
and
pressures.
The increase in
prices has slowed down, and the
steel strike settlement

producing
the

steel

provides for

fiscal

present

whole

should

not

the end of

since

The

war.

for

budget

year

to

seems

the
be

balanced, and for the next year

a

surplus of $4.2 billion is envisaged.
The people at large are beginning
to realize that inflation is harmful
to the economy as

well

as

to many

segments of the population.
V

The

Conclusion

environment

investment

during the present decade will
depend on the economic climate

be

which

'surplus

growth of population; the results
of research and international eco¬

higher than prevailed at the
beginning of 1960. A substantial

will

in

have

the

the

capital

Federal

favorable

a

market,

budget

effect

on

particularly

if

the surplus is used to retire
debt held by noncommercial bank
investors.
In that case, the

sup¬

ply

of

funds for

increase;

and

favorable
and

If

lead

the

this

effect
to

investment
will

lower

and

practiced,

it

pressures

fiscal
will

a

prices

interest rates.

inflationary

curbed

bond

on

will

have

are

discipline

induce

is

institu¬

tional

investors
including trust
companies td follow a balanced
investment policy between bonds

equities.!

and

Bond

prices

under

circumstances will remain

and

reflect the

prfces of equities

will

economic growth of the

country as w^ll as the increase in
profits of some industries and cor¬
porations derived from the results
of

research

their

and

rising

products.

If

demand

the

infla¬

tionary pressures persist and no
fiscal discipline is
practiced, the
effects

on

the

bond

market

will

be adverse. The demand for fixed-

income-bearing securities, bonds,
and

mortgages will decrease. The

desire

to

hedge against

stant

depreciation

will

become

even

of

more

con¬

dollar
pro¬

be

shaped

by

the

nomic and

political developments;
and, above all, by the response of
the American people to the chal¬
lenge emanating from the above
developments. As during the past,
so during the present decade, the
prime problems remain inflation
and the

rising cost of government

for defense

The

and civilian purposes.

important

operate

in

the

individuals 65

as

well

the

as

number

and

of

younger

as

will

contain

anti-infla¬

number
and older
sharp increase in

The expected rise
of

the

that

forces

economy

inflationary as well
tionary aspects.

in the

years

18

children

will

years

accentuate the

demand for public

services

hospitals, etc., and will
thus further aggravate the finan¬
cial
problems
confronting state

schools,

and local governments. The num¬
ber of people consuming but not

producing will rise; and while this
will
have a favorable effect on
business

activity

accentuate

the

it will

tend-to

.-iflationary

pres¬

sures.

At

the

the

will

the

force
thus
for

will

same

time,

increase

|

the

however, will be required in
of equities because,

care,

I
I
1

benefi¬

from

of

individual

of

even

growth; capital for all
legitimate purposes will be avail¬
able; and interest rates during the
on

will

trust

sound

a

will

economic

decade

these

the smallest increase in the cost of

of

long term
availability of

the

If

eliminated, the in¬

bonds

latter

From

notably

—

ones—will

in¬

mined not

for

develop¬
important

market

conditions

firm,

industries and

be

est rates.

these

effect

will

to

vestment in the former will assure
a

'
j

inflationary

environment

establish

tween

j

accu¬

companies
and other investors will endeavor

research

ahead

the

of

persist.

are

vestment

as

Rates

busi-

the Road

on

degree

any

pressures

the

Interest

the

American

lay the foundation
rapid expansion of
and
distribution
at

mate.

economic growth of all participat¬
ing nations. This will have a bene¬
ficial

to

securities, it would

and would

and

U. S. because American firms will

a temporarily
the
economy

on

and abroad

seeking

Western Europe will cause a con¬
tinued outflow of capital from the

program

run

more

a

may

desire

disarmament

a

world.

Instead of increases, one
expect during the decade a
lowering of tariffs. The forma¬
tion of larger economic units in

tax-exempt

tions less attractive to

in

'present, it is impossible

state

j

sooner or

decline

a

The Markers
At

It would also make it

and stocks.

to

activity and corporate profits
and to unemployment.

purchase of securities, both bonds
more

leads

ness

of

gs

inflation
growth; this,

however, is uneven and
later

!

Initially,

economy.

stimulates economic

corporations and
generate .funds
for the

n

of

amount

a

will

International economic develop¬
role in

the

will

torts

to

Towards

credit

reduced, and interest rates will
adversely affected. A re¬
continue
to
rise.
Inflation dis¬
duction in defense expenditures,*:

will be

while

decade, the leading industrial na¬
tions of Europe restored the free
convertibility of their currencies;

bank

be

strong

force

:

circum- i

stances,
will

i

the cost of goods
and
Under
these

increase

favorable,

anti-inflationary

well

investors will
shy
securities which are

from

away

obliga¬
individuals
in the high-income brackets. Thus

throughout the free world.

as

institutional

as

through the

the

Scene

dustrial nations of the free world

labor-saving

in

nations, one may

keener competition than
exists
even
today at home and
abroad.
This in itself will be a

ments

today to greater heights than they
ever before
reached, and success¬

The increase in the
labor

the

are

than

higher

remain

to

The

every

through

likely

other industrial

re¬

scientists

advande

in

from

new

institutions

many

in

a

value of securities of older indus¬

omies

only

not

operating with modern machinery
and equipment but also, because
of the creation of larger economic
units, will be able to engage in
mass production and mass distribu¬
tion. Since wages in the U. S. are

investment

the

on

fact

employing

inflation

resulting

research have imposed

with

an

in the future. The

one

sponsibility
officer,
and

or

during

decade, will make

introduction

devices.

ef¬

demand for

a

ments will also
As

unfavorable

as

They will create a demand
for new capital in order to exploit

The creation of

migration

South

Govern¬

well

as

The

fects.

new

under

world

the

of

na¬

have

business

short term dollar assets owned by

re¬

trend

number

tions

industrial

The

be

will

fruits of research will have favor¬

The

the

countries.

the section of the

be consumers but not producers.

in¬

of

climate

It has been estimated that

billion

able

strong

a

economy

Competition from abroad

increase.

tional

aspects.

By the end of the decade,
population rep¬
resenting those 65 years and older
will be four million larger than
at present. They will continue to

the

on

U. S. and hence on the investment

and

last year the U. S. spent more than
S8

fluence

-

investment

the

well

another,

one

economic force that

The second

and

180 million

however,

and

as

as

counteract

nomic

1959.

population,
favorable

million,

seen

Research

that at the end of 1969 the popula¬
tion of the U. S. will be in the

exercise

will

ments

re¬

whether

will

forces

the

decrease in defense

A

expect

population
by over 30 million during the next
favorable

and

economic

will

from

with

units in Europe
possibly elsewhere than was
case
before.
These develop¬

larger

climate.

However,

the pres¬

ent decade the U. S. will deal

percentage of this capital will be

as

the

of

either case, during

In

equipment wall be strong, and this
will create a demand for capital
from business concerns.
A large

time generate inflationary as
The

and

The demand for machinery

obtained

nounced, and individuals

expendi¬
tures will lead to a decline in the
output of certain types of goods

Market

mon

Decade's Investment Policy
1

Thursday, February 11, 1960

.

.

operate as an
economic and political unit. Great
efforts will be made to coordinate

Influential Forces Shaping
Continued pom page

.

Spending Declines

If Defense

decade, the Com¬

the

of

end

Chronicle

and Financial

The Commercial

(682)

the

even

labor
faster,

creating keener competition
jobs, further aggravated by

!

Number 5924

191

Volume

of manufac-

■

.

desire on the part
7 and service industries

'"51!re

to

production through

costs Of

The Commercial

...

markers

the

on

indicate

road

which

will

supply and demand fac-

tors and the

The

and Financial Chronicle

<

investor's preference.

of labor-saving devices
adoption of more effi^pfhods of production and

decade will offer
great
opportunities and equally great
challenges to the American Gov¬

fifibutfon This could bring to
end the increase in the cost of
811

ernment, management, and labor
leaders. It could go down in his¬
tory as the golden sixties or as
the decade of frustration and dis-

'E

1

the

i

91

4

fi"

of labor in par-

and

Hon

tSrtar

The growth of population
accentuate or curb the infla-

n

and thus, at least

forces;

fionary

■1nart the economic and mvestl climate of the decade will

Send

handle the

how we

on

jp^lems arising from the populaI ti0r?heaCfr°uits of research are not
unmitigated blessing for every¬
body Research creates new values
and destroys old ones.
It creates
Jew jobs but also eliminates
others' It has an important effect
on the growth
of individual in¬
dustries and thus on the value of
the individual groups : of securi¬

new

appomment.

beginning

of

vorable.

cold

The

the

There

decade

is

there

war;

omens

is

becoming more and more recog¬
nized; trade and payment restric¬
tions

balance

being

gradually elimi¬
nated; the productive capacity of
the

world

is

rising; and

the

once

pressing need to spend untold bil¬
lions

of

dollars

defense

on

diminished, much

is

could

be

more

these trends
ment

continue,j the invest¬

environment

ofr the

sixties

be favorable.

revulsion

against the ravages of
inflation; the importance of mon¬
etary and fiscal controls is1

What appears as a growth
today - may by the end

industry
of

the process

decade be in

of the

decline.
--v
International economic

adverse

America's

by

Dr.

Mid-Winter

41st

by

address

the

Trust

Bankers
Feb.

8,

Nadler

before

Conference

Division

Association,

of

sponsored

the

American

York

New

the

<

economic

our

In

economic
I

a

the

of

containment

inflationary pressures all over

the

world.
If

sound formula

tence

found

is

for co-exis¬

leading

to

large-

billion

Continued from page 15

labor,

leads

and

reduction

a

excessive

to

prices
in real output.

the

existence

of

mo¬

consumption,
let
us
lower prices still

aggregate

that

remember

sell

more

also

but

steel, more

more

cars,

tools, not only at home

machine

outside

markets

the

in

In

recent

Joint

testimony before the
Committee,

Economic

'

witnesses

number

of

concern

about

rate i of

our

a

expressed
eco¬

growth compared with that
the Soviet Union. Obviously,

nomic
of

a

longer afford to assign

no

can

priority to strengthening
forces of growth. At the same

low

the

initial im-; time, let us remember that eco¬
pact will be adverse, particularly nomic capacity is not synonymous
with military might. The volume
on the defense industries *and the
localities where they are concen¬ and the quality of our armaments
trated. This, however, will make
possible increased Federal expen¬

must

ditures

contain

decrease

vidual
well

debt.

purposes,

income

taxes—indi¬

in

well

as

as

civilian

a

as

corporate—as

reduction

Such

a

of

the public

but

able

effect

a

favor¬

current

the
meet the bills out

use

cant event of the decade.

billions

Interest rates during the present
decade will be higher than during

toward

the greater
part of the fifties un¬
less the government

operates with

a

large surplus

and

retires

sub¬

taxes.

could

We

this purpose some

for

securities,
both
equities and bonds.
It probably
would constitute the most signifi¬
on

ag¬

an

spending, let us get on with
of

have

to

the futility of all-out war.
calls for higher defense

this

job but let us

and

level
to

a

brush-fire wars

demonstrate

also

gressor

If

win

and

nomic

growth

at

maintained

be

which will enable us not only

development would
lay the foundation for rapid eco¬
a

in

1958

and

estimated

an

Behind the decline in
ance

our

bal¬

of trade lie two main factors

well

of the

each year in un¬

wasted

billions

supports. These
would
go
a
long way
balancing a larger defense
price

necessary

budget.

Balance

Restore

(5)

growth of

International

in

the devastation of World
the economies of Western

lowing
War II,

Europe and Japan have been re¬

and efficient
lines. New and modern facilities
along modern

these countries the
compete with us in
price, in delivery, in credit terms,
in marketing techniques, and in
the development of new products
and services. The reconstruction
have

is

halted,
there
shortage of such

countries, achieved partly

of these

through American aid, is certainly
a
welcome
development, to be

entire

the

by

applauded

unds.

ii

be

If

no

the

aed§e against inflation will be
dominating motive in fo,r-

he

uiating investment

policies,

oney rates will
rise; and after a

pvnPer*?d °f time, the economic
L P. wiH be retarded and the
thn\ WiU haVG t0 be Paid- With
restoration

of the international

But

serves

notice

the spiral of inflation, we
ultimately have neither a
high level of employment nor
economic
expansion. More than

free

to

15%,

billion, or
where present
$3

confidence

market, the movement of

rterP interest

rates will be
tern r
niore determined by inmar?'H011ai economic and money
sSV conditions.
The
rates
p,,-,
be higher than during the
ter
mn

that

we

also

can

no

be content with domestic
policies which permit inflation
give real incen¬

and which fail to

tive

capital replacement.

to

to

solution

The

our

balance

of

payments problem does not lie in
direction of higher tariffs,

the

subsidies, or

quotas,

import

These

valuation.

are

hide

or

excuse

our

de¬

devices to
ineffi¬

own

what

the dollar,

accom¬

withdrawal of

troublesome

deficit in our

The

international payments
from the fact that in re¬

results

cent

years

we

develop an

have been unable
export balance suf¬

ficient to offset the

heavy volume

loans

and

to foreign countries.
though imports to the U. S.

Al¬
have

of

our

government

grants
risen

exports have
sustained growth during

rapidly,

shown no

our

As a result,
the earlier

uf it: is imP°ssible to predict

the

past four years,

investment environment
4e decade wil1 be, it is
Mlto consider the forces
create the economic

the

export balance of

durin

PosJhi
that
clinw
te

i,

and

to

point

to

certain




disappeared
foreign claims against U. S.
or dollars have risen by $3.4

postwar
and

gold

years

has

share

per

and

1963

shares

must strive,
dedication,
to

resources,

with

we

renewed

the

strengthen

of

forces

free

enterprise and competition.
In the field of foreign trade, we
tackle

must

with

determination.
where

hand

we

of

pay¬

and

courage

Here

is

area

one

have been given a

opportunity

destructive

to

effects

first

the

observe

inflation.

of

I

this lesson will not be lost

hope

the American

on

balance

our

deficit

Sixties, the whole world will be
watching our record of economic
growth, of scientific achievement,
of

military

strength.

of

nuclear

stalemate,

In

our

age

we cannot
afford to be less than first.:
*An

address

by Mr. Shanks before the
of
Commerce,
Van-

Chamber

Nashville

Jan. 31,;
$7
per

at

addition, the company has
registered 107,500 shares of com¬
In

insurance

the exercise of warrants and
out purposes if re¬

upon
for

for

reserved

80,000

of

consisting

stock,

rounding

(the reserved shares) and
shares which are being
27,500
separately sold. The debentures
with warrants and the reserved

quired

shares

are

offered

the

by

com¬

The remaining shares are
presently
outstanding
and
are
being sold by certain stockholders.
The business of the company is
pany.

rental

the

ment

their

The

of

leasing

or

equip¬

business organizations to

to

meet

the

of

decade

the

During

public.

thereafter

stock.

mon

our

stock at $5 per

including

including Jan. 31,
of 7.5 shares
and 10 shares of com¬

unit)

the

productive allocation of

-

aggregate

(an

needed for this purpose. To assure
most

two

and

to

1965

mon

centive

and

and

efficient
equipment, and the in¬
to save the funds urgently
nqore

common

to

growth: the incentive to invest in
modern

of

consists

major

specific requirements.
types of equipment

presently leased include produc¬
tion,
processing and
packaging
equipment of various types for a
wide variety of industries, trans¬
portation and materials handling
equipment, air conditioning, re¬
frigeration and electronic testing
equipment and office equipment.
The debentures are redeemable

derbilt

27,

Tenn., Jan.

University, Nashville,

prior to maturity as a whole at
any time or in part from time to
time at the option of the company
or
through the operation of the

1960.

Joseph Mandell Co.
WALDWICK, N. J.—Joseph Man¬
dell

is

ment

conducting an invest¬
from offices at 48

now

sinking fund, but only on or after
1, 1964.

Feb.

business

Avenue

Hudson

the

under

Joins Peeler Staff

name

Joseph Mandell Co. Mr. Man¬
dell
was
formerly president of
of

Joseph Mandell & Co., Inc. of New

DURHAM, N. C.—Clyde L. Green

joined the staff of J. Lee
Co., Inc., Trust Building.

has

Peeler &

York.

inadequacies,
and
any
event
provoke

in

would

prompt retaliatory action

abroad.

growth solution to our for¬
eign trade problem consists not in
cutting
down
imports
but
in
The

up

exports. To this end

I recommend:

concerted

A

(1)

the

during
in

and

early

potswar years
still retained

cases

many

justification.

today without

balance of

shares of

share

more

unit

Each

principal amount of deben¬
tures,
each debenture with attached warrant initially exercis¬
able
for
the
purchase
of 3.75

and

ciencies

level

panied by a sharp
gold.
,

.

portion of the past decade.

in

reserves

a
are

unit.

$100

the 1960s impose upon us a
mandate to keep alive the basic
forces
sustaining
our
economic

longer

problem which must be solved if
the
sixties are to be a golden

to
sWw

pessimists

the

1, 1970, with common stock
purchase warrants attached, and
100,000 shares of common stock,
par value $1.
: V y *■
/The securities are being offered
for sale in 10,000 units at $250 per

■

their resurgence

world.

(2)
A strong drive by
our
just government to secure removal by
deterioration conequal to the total foreign claims foreign
countries
of
the
dis¬
.*naes' it will lead to a distortion
against them. Thus, there looms criminatory restrictions originally
P ! ,flow °f savings. The desire the
danger of a sudden loss of imposed against American goods

should

with

11

Feb.

Feb.

of

.

halt

to

.

decline

growth.

disagree

given

capacity

Our stepping

Accounts. The final

foreign trade. Fol¬

our

effort to im¬
stantial amounts of debt held by
prove
our
competitive position,
nonbank investors.
The demand decade of growth is posed by the
through more effective anti-in¬
tor capital will be
large to finance large and persistent deficit in our flationary policies, through more
the construction
of homes, public balance of international payments.
rapid improvement in our tech¬
The deterioration in our foreign
wu
and
needs of industry.
nology, and productivity, through
Whether the
supply of funds seeki¬ trade position has been brought more
aggressive marketing
by
ng an outlet in fixed-income home to the public by the dra¬ American businessmen, and
obligations will be adequate will
matic decline in our gold stock through
a
more
statesmanlike
depend on the movement of the
during the past two years. Our I approach to the wage-cost ques¬
Purchasing power of the dollar,
gold holdings have fallen by over tion by American labor.
t
its

overcome

will

$4 billion in 1959.

built

borders.

our

scale disarmament, its

for

to

ever,

we

a

manage

today

publicly

offering

$2,000,000,
National
Equipment
Rental, Ltd. 6% sinking fund sub¬
ordinated debentures, series A due

determined and successful effort

to

Of "The Golden Sixties"

-

response

the

we

the serious obstacles in the way

ments

in

have
tried
to
estimates of
of living we could
sober

some

standards

colonialism,

force

Burnham & Co. and associates are

I

decade,

present

capital

international competi¬
tion, (and should be a powerful

Equipment Units

aspirations for the

discussing the promise of the

new

develop¬
nopoly insulates labor and capital —first, the economic recovery of
ments will be far reaching. The
Western Europe and Japan, and
from the discipline of the market
last decade was marked by recon¬
place and thereby perpetuates the second, the rapid rate of inflation
struction and rebuilding of the
in our export prices. I remarked
inefficiencies
normally
weeded
economies of the war-torn nations.
earlier that, if we are to step up
out by
the competitive system.
The present will witness the crea¬
output for the domestic market, it
The result is less output, less em¬
tion of larger economic units and
is essential that our capital equip¬
and
less
economic
the emergence of the Soviet Union ployment,
ment be modernized and inflation
growth. In an age when the em¬
as a major economic
force in in¬
brought
to
a
halt. These two
ternational
trade,
the end
of phasis is on total production and factors are essential also for the

intensify

and

who argue that we must sacrifice

The Promises and Problems

Moreover,

to them. They will ac¬
centuate the demand for capital,

Offers National

on

leadership

price stability in order to achieve
full
employment and economic
growth. On the contrary, without

.

and the more rapid
development of the economically
retarded
areas.
These develop¬
ments will offer an
opportunity
and challenge to the U. S. A., and
the results will
depend on our

Burnham & Co.

1960s.

City,

1960.

repercussions

world

27

ac¬

hasty and ill-advised actions,

with

achieve if
"An

an

ties

take

the

iri the

international

our

counts, I am afraid we will, before
long, find ourselves compelled to

done for less fortunate nations. If

worldwide

a

are

fa-- will

are

thaw

a

the

at

(683)

firm position by
our government to the effect that
Western Europe, which has again
(3) An equally

leading industrial center,

become a

must
of

assume

our

must

a

common

shoulder

larger proportion
defense costs and
a larger share of

of aiding the
underdeveloped nations.
the

U.

S.

program

Nation-Wide Underwriting Group
Offers $98,560,000 New
headed by Blyth & Co.,
Phelps, Fenn & Co. and
Lehman Brothers, in association
with The First National City Bank

A

group

Inc.,

headed
Trust Company and

of New York,

Bankers

by
The

9

of

New

Bank

offered publicly

on

17 issues

Housing Authority bonds

according to four scales.
Scale

A

consists

of

$15,650,000

C., 3%% bonds
priced from a yield of 2.65% for
bonds due 1961 to a dollar price
of 99 V2 for the 1994-2000 maturi¬

Washington,

D.

ties.

Scale
the

B

consists

of

bonds

in

of

the

steps

now

are

being

reoffered

priced from a yield of 2.60% for
due 1960 to a dollar price

those

of 100 for the 1994-2000

maturities.
the

Scale D consists of bonds in

following amounts issued by

local

agencies
in:
$2,415,000
Decatur, Ala.;
$3,980,000 Mont¬
gomery, Ala.; $1,350,000 Kinloch,
Mo.; $8,205,000 Paterson, N. J.;
$12,655,000 Puerto Rico; $2,010,000
Morristown,
Tenn.;
$1,960,000
Virgin
Islands;
and
$1,040,000
Renton, Wash. All bear a 3%%
coupon
and are being reoffered
priced from a yield of 2.60% to a
dollar price of 99x/2 for the 1994public

2000 maturities.

following amounts issued by

Rated Aaa

by Moody's and A-l

agencies in: $1,300,000
Holyoke, Mass.; $7,530,000 Colum¬
bus, Ohio; and $10,765,000 Phila¬
delphia, Pa.
All bear a 37/s%
coupon
and are being reoffered
priced from a yield of 2.60% for
bonds due 1960 to a dollar price
of 100 V2 for the 1994-2000 maturi¬

plus

Public

Agency issuing thie bonds

ties.

in

opinions

local public

Scale C consists of bonds in the
being
taken
by
our
government are following amounts issued by local
agencies
in:
$1,050,000
fortunately in the right direction, public
Sarasota, Fla.; $20,150,000
New
and with sufficient public support,
York City, N. Y.; $1,570,000 Port
promise to go a long way toward
solving our balance of payments Chester, N. Y.; $1,075,000 Carbondale,
Pa.;
and
$5,845,000
San
problem. If we fail now to pursue,
carefully
calculated policies to Antonio, Texas. All bear a 37/s%
Some

and

coupon

a group

Manhattan

Chase

Feb.

and

Housing Bds.

by

bonds

Standard

are

&

secured

Poor's,
by

a

the
first

pledge
of
annual contributions
unconditionally payable pursuant
to
an
annual contributions con¬
tract between the Public Housing
Administration

the

The

United

and

the

Local

of bond counsel.
Housing Act

States

of

1937, as amended," solemnly
pledges the faith of the United
States to the payment of the an¬
nual contributions by the Public
Housing Administration pursuant
to the annual contributions con¬
tracts.

(684)

of

Manageable Federal Debt
Is Attainable Today

public opinion that was so im¬

portant in supporting the Admin¬
istration
in
the
battle
of
the

Budget last year

is absolutely

—

essential.

.

What will the achievement of a

$4.2 billion budget surplus mean
productivity
without to the nation's financial markets?
Continued from page 4
prices following suit, and vice The better tone in the government
hower said in his State of the
versa.
Some of the public opinion
securities
market
following the
Union Message: "We must fight
polls indicate this lesson is be¬ President's announcement of the
inflation as we would a fire that
ginning to sink in.
surplus provides important evi¬
imperils our home.
Only by so
However, in attempting to pro¬ dence that the impact is beneficial.
doing can we prevent it from de¬
tect the purchasing power of the
First of all, the achievement of
stroying our salaries, savings, pen¬
dollar, of one thing we can be the surplus helps convince inves¬
sions, and insurance, and from
certain: The battle against infla¬
tors at home and abroad that this
gnawing away the very roots of
tion will surely be lost if we fail
nation is determined to handle its
a
free, healthy economy and the
to maintain financial responsibil¬
nation's security."
financial
affairs
prudently
and
ity in Federal Government activi¬
responsibly,
and
this
in
turn
The President also pointed out
ties.
By financial responsibility I strengthens the desire to invest in
that "Inflation's ravages do not
mean
three things: a surplus in
end at the water's edge." He was
government securities and other
the Federal budget during periods
fixed-dollar obligations;
referring to our international bal¬
of
prosperous
business activity;
ance of payments position, which
Secondly, the more appropriate
has been in deficit in each year monetary discipline, so that ex¬ anti-inflationary posture of budget
cessive expansion in credit and
since 1949, with the exception of
policy, as reflected in the surplus,
the money supply is not allowed
1957.
Recently the deficits have
helps reduce the burden carried
to tip the scales toward inflation;
risen to a high level—about $3*&
by monetary policy in promoting
billion in 1958 and approaching and debt management actions that growth without inflation.
$4 billion in 1959. Large deficits support anti-inflationary budget
In the third place, the use of
cannot be sustained safely for a and monetary policies.
the surplus
for debt retirement
This Administration
backed
long period of time if we are to
increases the flow of genuine sav¬
have a satisfactory pattern of our by an aroused citizenry—has suc¬
ings into financial markets, thus
balance of payments and if the ceeded in what appeared a year
helping to relieve pressures forc¬
dollar is to function properly as ago to be an almost impossible
ing up interest rates and to in¬
the world's
major reserve cur¬ task: the budget for this fiscal
crease the availability of credit in
rency.
year will be balanced; in fact, a the
private sector of the economy.
small surplus of about $200 mil¬
;
World's Banker and Our
lion now appears likely.
But of
Disadvantageous Interest Rate
Payments Deficit
even
greater importance in the
Ceiling
1: This heavy and continuing defi¬ fight against inflation is the $4.2
If my story could end at this
cit in our balance of payments
billion surplus of revenues over
point, all of us would no doubt
situation is a relatively new phe¬
expenditures in the President's agree that the government's fi¬
nomenon to us.
For many decades
budget for fiscal year 1961.
nancial affairs, certainly far from
—

.

this

until

joyed

one,

have

we

generally favorable

a

of

ance

last

international

en¬

bal¬

payments.

Then, largely as a result of wars,
it became for a time extremely
favorable—the shortages of both
goods and financial reserves led

properly

us

nations

other

has

been

adjust

and

eliminated,

thinking
conditions, when

changed

industrial

some

Plan

The "dollar gap"

since

must

we

industrial
economies

Marshall

measures.

the

to

the

long

and

help
their

to

rebuild

through

our

countries

are

ac¬

cumulating surpluses in the form
of gold and dollars.
Whether

have

like

we

become

the

banker—like

it

not,

or

world's

we

leading
banker,

the

typical
have lent long and borrowed

we

short.

Short-term

claims

on

us

It

obvious that

is

sented

budget pre¬
January, 1960, for a pe¬

in

riod

ending some 18 months in the
future necessarily involves some

more

itures

and

tax

international
the

of

be

must

recognized
that
some
types
of
expenditure—notably, farm price
supports—are heavily influenced
by nature and by legislative com¬
mitments
istration

which the Admin¬

over

has little

control.

Assuming that current levels of
taxation

prevail, the budget's

estimates

enue

in

are,

solid ground.

very

The

in his press con¬

ference

recently
that
assumption underlying
estimates is

enue

rev¬

judg¬

my

a

number

of

As you know,

forecasters

<

taking

appropriate steps to try to reduce
payments

deficits,

these

steps will continue to
be consistent with our
objective of
promoting an expanding volume
trade.

But

it

should

be

readily apparent that a basic fac¬
tor is the cost-price structure in
this country. Our
ability to expand
our

exports

this

structure

-

In

will
is

be

impaired

not

if

competitive.

complex economy, produc¬
ing goods and services at a rate
close to a half-trillion dollars a
a

year,

the

bound

to

causes

of

inflation

are

be

complex; thus thero
simple cure to the inflation
problem.
Moreover, the task of
controlling inflation does not start
and stop on the banks of the Poto¬
is

no

individuals in every walk of
life, institutions of all kinds, labor,
mac;

management-—each and every one
of us must handle his
economic
and financial affairs on
the basis
of

enlightened self-interest.
In the Final Analysis

•

In the last

analysis, public opin¬

ion will tip the scales.
me

even

that

we

in

progress

there is

a

see

evidence of

some

this

respect.
Surely
growing realization that

wages cannot, on the
crease

It seems to

average, in¬

faster than the over-all
in¬




in¬

issues of

on new

than

more

have

of

prevailed

1959,

the

since

practical

the Treasury to do all of its bor¬
rowing by issuing securities of
five

years'

which

not

repeat

arguments
the

to

maturity or less,
ceiling applies.

no

will

that

Congress

which

higher.

valid

today
we

last

unsuccessful

believe

plus will undoubtedly generate
substantial pressures for a reduc¬
tion in taxes and/or an increase

move

4V\%

a

effect of this limitation is to force

the

national

of

maturity. In view of
long-term interest

spring

ceiling

is

and

of

that

rates

this calendar year.

Administration

of world

levels

a

means

size of the

years'

the

our

world.

artificial
is

consists

ceiling

five

for most of

the

is

I refer to the

restriction

terest rate

rev¬

the

gross

bank is operated.

but

wholly

there

Treasury securities of

I

that GNP will

the

story.

a

restriction

basic

a

an

The

the

archaic

the

that foreigners now
important stake in how
we manage our affairs
just as de¬
positors have a stake in how a

This

have

to

product of about $510 billion for

the basic

however,

that

free

reserves

currencies

It

rates.

President stated

as

at least

preventing
the continued upward trend of the Treasury debt
management from
ecdnomy during the next year and providing appropriate support to
one-half, and Congressional ac¬ anti-inflationary budget and mon¬
tions with respect to both expend¬ etary policies.
As you know, this

ment, on

lars supplement gold

fortunately,
fact

judgments. The actual real¬
of the $4.2 billion surplus
depends primarily on two things:

are

in better condition than they have
been for a number of years.
Un¬

ization

deposits in banks and Treasury
bills, have built up from under
$7
billion
at
the
end
of
the
to $17 billion at present. Dol¬

being in perfect shape,

broad

held by foreign countries, largely

war

a

removed
believe

now.

You

on

of
in

get the

arguments

—

are

even

will

more

recall

that

we

Warns Against
The

projected

$4.2

in

expenditures. It
important that these
withstood.
tax

Basic

especially emphasized the in¬
flationary implications of flooding

Pressures

billion

is

sur¬

crucially
be

pressures

reform

in

the

structure is

certainly a desir¬
but such changes
require a broad, carefully consid¬
ered
approach, rather than the
able

objective;

kind of

piecemeal corrections. The
House Ways and Means Commit¬

tee

on

a

bipartisan basis initiated

a careful
study of the income tax
structure last year and expects to
recommend legislation next year.

The

announced

objectives

are

a

broadening of the base and a low¬
ering of rates. The Treasury is
cooperating
Committee

actively with the
this searching re¬

his
and

President's

State

of

the

Economic

doubt

that

-

statements

Union,- Budget,

messages

the

in

leave

Administration

no

is

dedicated to the protection of the
$4.2 billion surplus for debt re¬

duction; it will vigorously oppose
any attempts to reduce the sur¬
plus, either in the form of prema¬
ture tax reductions

or

increases in

market

with

government

only

a

money.

short-term

very

securities, which

step
We

from

away

also

are

being

argued that the

ceiling completely prevents the
Treasury from achieving any sig¬
nificant amount of debt
extension,
which is especially
important in
view

of

the

marketable
five

fact

that

debt

I

years.

75%

matures

would

like

phasize, however, that
six

ing

of the

within
to

em¬

than

more

months' experience in operat¬

under

the

ceiling

—
during
Treasury
bor¬
rowed $47Vz billion through cash
and refunding operations
has

which

time

the

—

demonstrated

clearly that the ceil¬
ing is militating against efficient
achievement

of

sound

economic

objectives.

in

appraisal.
The

the

For

example, the evidence is
strong that the necessarily heavy
reliance
has

short-term borrowing

on

contributed

significantly

pushing short-term
to

the

1920's.

highest
This

has

interest

levels
had

since

to

rates

the

an

almost

immediate and substantial

year

must

be.

refinanced
short-term
rates.

at

as

the

vigorous expression

of credit to other short-term

Thursday, February 11, I960

and

consumers

as

.

the ceiling

last summer
argued that any re¬
Treasury
borrowing on

of

sultant

the

bor¬

bonds would tend to
availability of credit

long-term
the

reduce

building and also con¬

home

for

tribute

estate

higher

to

rates

real
these

on

told

We

mortgages.

line

with

omy

for liquidity instruments.

the

needs

of

the

the debt up to 1 year were

to $10

$5

billion,

under

debt

1

If

reduced

would

we

comfortable;

more

econ¬

feel

However, the

surely should
not be permitted to increase.
year

Our real problem is in the 1to
5-year area where $62 billion are
outstanding.
If, , chiefly by the

of

device

advance

refunding,

we

people that, if and when the ceil¬
ing is removed, we would have
no intention of flooding the mar¬

could offset each year the
erosion
of maturity caused by the

ket with

eral

long-term securities. Our

issues for cash would be rela¬

new

tively modest in amount, and most
of

debt

our

lengthening would be
by refunding outstanding
which were originally

effected

bonds

—

and

long-term

held

still

are

by

lapse

of time

in advance of their final
maturity. This technique, of "ad¬
vance
refunding,"- would avoid
the impact on capital markets that
arises
from
Treasury
sales
of
years

long-term securities for cash or in
exchange for maturing issues, in
which

the character of own¬

case

ership necessarily must be shifted.
Paradoxical

place

to

1-

one

year

do

can

we

is

maturity range, thus
a
modest amount
of

achieving

lengthening and also helping

to avoid the

inflationary pressures
generated by large-scale reliance
on very short-term securities.
But
experience With the 5% note is¬
in

sued

October

the

—

to

out

5-year

so-called

rest

of the

The E and H

Savings Bond pic¬
pretty grim last sum¬
when Congress was
debating

ture looked
mer

whether to lift the old interest rate
ceiling of 3V4%. .Sales decreased
and " redemptions increased, with
the

that

result

declined
March

total

about

October.
Beginning in
November, there was a turn for
the better, as you know; and at

end,

net investment in

E and H Bonds

lion

a

year

ear¬

lier. Small denominations and pay¬
roll savings are going quite

well,
sales and redemptions of
larger .denominations, have been

but. the

affected by the competition of the

Magic 5's and other high-yielding
investments. I.

The

'. >

increased

-

interest

of

your

customers in

marketables, the ex¬
change of F's and G's for 4%%

notes, and the newly offered priv¬
ilege given the holders of Series

F,

E,

and

bonds

to

J

have

considerable
the

banks

exchange

combined
burden

in

cannot

discharge
a - trying

spond eagerly to such issues at the

ity

rates which

but

for

to

of

recent

that

re¬

only $30 mil¬

was

below the figure

this,

will

outstanding

$300 million from

to

regret

investors

maturity

would be reasonably
content with the resulting matur¬
ity configuration. ;
we

"Magic 5's"—demonstrates clearly
individual

sev¬

and spread that

area

the

over

spectrum,

securities in the 4-

some

5-year

debt

the

the least that

area;

to

in

issues

period of

over a

years,

the, year,

Result

Paradoxically, the very result
feared by these people may come
to pass unless the ceiling is re¬
moved—in fact, an important part
of it has already happened. It is
obvious that the Treasury cannot
confine all of its financing to very
short-term

and,

lift something of the
magnitude of $20 billion out of the

long-term investors—a number of

a

work

months.

feel

we

H

put

on

We

that

we

responsibil¬
period and do

our

otherwise.

we

forced to pay;

are

large portion of the funds they
to buy these securities would
represent withdrawals from sav¬

a

use

ings
ings

loan

and

the

of

sav¬

with¬

than

removed

able

were

to

refunding and

amount

of

a

the

on

severe

were

Treasury

As

such

more

ceiling

advance

pursue

impact

market

drawals is much
if the 414%

and

associations.

the

consequence,

mortgage

banks

in

accounts

and

a

long-term

financing for casli. Such issues of
longer-term

tend

ment

private

with

pension

funds,

similar

cally

not

money

likely

not

to

market

to

be

the

infla¬

tionary

implications of piling up
short-term securities which

very

the next

thing to

people.
The 1950's were
of prosperity and progress,
the decade of the 1960's can

and

but

money.

nevertheless very

only if

strong im¬

the

be

generally

responsibly, relying

native

maturity spectrum.

That is the dilemma. The

the

and

you

be

can

Administration

assured

"An

will

address

12th

by

continue

of

the

American

Chicago,

III.,

Proper Tools
the

ceiling,
the

before

Baird

Association,

Bankers

Jan.

22,

the

spon¬

Commission

Policy
1960.

Now Marron, Sloss
The firm

name

Edens,

of Marron,

Sloss &

Co., Inc., 63 Wall Street,
New York City, has been changed
to Marron, Sloss & Co., Inc.

Now J. R. Holt Co.
DENVER,

firm

Colo.—The

Columbine

Securities

name
Corp.,

Denver U. S. National Center, has

changed to J. R. Holt & Co-

Gilbert L.
to

Hill

has

been

added

the firm's staff.

to

Debt Is Manageable With

believe

Credit

the

for removal of the interestrate ceiling with all the
vigor and
energy that it can command.

Given

Mr.

us.

CreditConference

the

Udo Reinach

press

the

by

National

been

that

upon our
and the hard

challenge to all of

sored

answer

lies, of course, with the Congress;

common, sense

lessons that experience both here
and abroad has taught us. That is

of
across

us—indi¬

a

those problems squarely

meet

and

the distortions it
creates, operates
to make interest rates
higher than

to

we

nation, and as a
community of nations—and only if

On

pact on capital markets, and par¬
ticularly on the mortgage market.
Clearly, the present ceiling, by

they need

rewarding period.
clearly identify the

an even more

But

the

other hand, to the extent we
reach out to the 4- to
5-year range,
we run
the danger of an indirect

a

loving

that confront

instru¬

in

years

as

especially

mention

live

also

vidually,

all of our
borrowing to
short-term securities, the im¬
pact on rates on Treasury bills

is

We

problems

the

other

initiative.

community of free nations that,
working together, can move for¬
ward in the drive to improve liv¬
ing standards for all freedom-

typi¬

purchasers of mort¬

confine

are

and

natural

and

very

severe,

fortunate, as
a nation rich
resources, a highly
efficient labor force and produc¬
tion system, and managerial talent

lodge-1 be

Treasury, so long as
the ceiling remains,- is confronted
with a
perplexing dilemma. If we

ments

indeed

are

with

we

Thus

and

We

public

which

in

Americaps, to live in

find

foundations,

institutions

are

-

and

to

gages.

impact

the cost of
carrying the public
debt, since $80 billion of our se¬
curities mature within one

appropriations.-.But, again,;this is higher
More¬
not a battle that can be
confined over, heavy
Treasury short-term
to
Capitol Hill and the White
borrowing is bound to reduce the
House; strong-grass roots support
availability and increase the cost

—such

moval

on

and

.

businesses, large and small.
Some of those who opposed re¬

moderate

presented

effort to

we

all

summer

such

rowers,

.

erroneously

,

in

crease

.

Financial Chronicle

The Commercial and

28

tools, by removal of
in the Treasury
situation is manage¬
we

\

Haupt

Reinach, partner in Ira
&
Co., New - York City,

passed

away

Udo

at

M.

Jan.

suddenly

23rd

the age of 72.

Form Physicians
PHOENIX, Ariz.

—

Fund
Physicians

able.

There will always be- prob-<
are not of the mag¬
nitude that many
envisage. The

Fund

lems, but they

Economics is engaging in a

securi¬

ties

at

debt

North

maturing within one year,
$80 billion, is not too far out of

of

the-: Bureau--of

business

from

Central

G. Mitten is

a

2025
Frederick

offices

Avenue.

principal.

Medical

Number 5924

191

Volume

.

.

The Commercial

.

and Financial

STATE OF TRADE AND INDUSTRY
5

Continued from page

cars or

9.3%

controlling inventories above the corresponding week in
::
'
,
week of Jan.
or 2.5% above

„mselv

.

increase of 51,368

an

1Prompted by a combination of 1958.
•
tL Most important is tight
Loadings in the
and high interest rates SO, were 14,561 cars

mnnev

^Mrh
yjniui

discourage the building up
«
lr.„cfa
ctnnb-Q
carrying of large stocks
factor is the 30-nxuixwx

"

.

the preceding week.
-.r

Avmthpr

Jel

contract. This assures
uninterrupted
steel
operations
Si 1962.
"
Also
important in. inventory
„i«is is the
ability of the steel
Sustrv to " produce and ship
inoueh steel to handle any anticlabor

,,o7o

Ab<>ve 1959 Week

,

Intercity truck tonnage in the
week ended Jan. 30, was 4.8%
ahead of that of the corresponding
week of a year ago, the American
Trucking Associations,1 Ine., announced. Truck tonnage was 2.7%
ioated steel demand. This makes ab^ad of tbat of the previous week
of this year.
it unnecessary to carry large sup¬
These findings are based on the
plies as a hedge against a period
weekly survey of 34
demand.

ol strong

-

Age" says that the
trend in inventory policies is
Iron

"The
new

affecting the steel market.
less tension in the
market; the end
of 'premiumnriced steel; liquidation of excess
R1
foreign and broker steel at lower
already

means

It

1

1.1

.

^TcTthe

steel industry, it means

inventories will have
to be carried by the steel mills.
And producers will have to be
able
to
handle
spot;: supply
that heavy

troubles as they occur.

Age" points
anticipated that .steel

Earlier, "The Iron
out, it was

inventories would build up to 16
to 18 million tons this

million

of

inventories

Now,

year.

not

million

than 13 million to 15

more

counted on.
this buying philosophy

tons can be
If

con¬

steel stock
buildup may not occur until early
1962, before the expiration of the
tinues, another major

steel labor contract.
In

inventory

of

spite

caution,

the demand for steel remains

high

and will continue strong well

into

the magazine
Steel consumption is still
up around 7 million tons a month.
Backlogs of orders for most prod¬
the second quarter,

reports.

ucts

close

are

and

three ;

to

months

about
85% of present rate of shipments.
There
is
some
apprehension
about automotive production. But,
to date, automakers are taking all
the steel they can get and are
keeping the market tight for vir¬
tually all products with
auto¬
motive applications.
incoming

orders

are

However, reports from Detroit
indicate there will be cutbacks in

Schedule

production

schedules.

makers

putting January new

car

are

figures

Belief is

under

that

j

microscope.

a

the

can't
produce
the • original
February
schedule of 725,000 cars without
overloading dealer stocks.
V

The

Steel

Output

Based

Iron

Steel

and

Institute announced that the operating rate of the steel companies
will
average
*167.5%
of
steel
capacity for the week beginning

Si 8' 1960' equivalent to 2,690,000
tons of ingot and steel castings
(based on average weekly pro-

duction of 1947-49).

than 400

truck terminals of

carriers

mon

and

These figures

2,683,000 in the week

beginning Feb.

,Actual

Auto

94.2%
Jan.

1,

i960

1»

annual

148,570,970 net
Percentage for

capacity

this

of

Estimated

tons.

week's

fore-

94S4'^based on tbat capacity, is
A month
ago the

operating rate

(based on 1947-49 weekly production) was *169 8% and production

2,727,000

tons

tualweekly

at

A year agothe ac-

production^wasplaced

2,371,000 tons,

or

*147.6%.

"777
a*e

l*lr prociuction

"weekly

Carloadings
Over

■Loading

be

en

of

week

otaled
of

>s

production

for

baaed on aver1947-49.

Show 3.3% Gain

ended -Jan.

.

;

freight for
30,

i960,

601,900 cars,; the Associa-

ja,444

cars

Since

Automotive
Reports"
estimated U. S. car production for
the

week

units,

ended Feb.

5%

less

5 at

than

165,960

last

week

when 173,231 were produced. Out¬

put

in

the recent

lowest

since

the

week

was

period

the

to

Lumber

Production

week's

decline

mainly

was

at

in

car

assemblies

the result of

Chevrolet Division's

the

a

strike

Manufacturers

Associa¬

tion

reports that the year's esti¬
mated production rose
9% over
1958 for the highest annual
output
recorded since

1956..

^

;;

7;

,

Included in the 1959 production

was

der
engine and pressed metals
plant at Flint, Mich. "Ward's said

Chevrolet, which had
planned
Saturday operations at seven of
its car plants, cut back to five
days, apparently to conserve parts
in the event of a prolonged tieup
at the Flint facility.
Rest of the industry, however,
is

continuing

tion

29,709,000,000

the strong produc¬
it set earlier this year,

pace

the

agency said.
Ford Motor Co.
maintained six-dav operations at

eight Ford and Falcon plants, the
Lincoln-Thunderbird plant and a
Mercury
assemble line
at
Los

of

production in

estimated

board

feet,

at

COrrespond]ng " week "in'* 1959!



and

in

wholesale

cost

this

week were flour,
barley, sugar,
coffee, and cottonseed oil. Lower

Decem¬

attained

Dearborn,

Mich., Imperial site which lost a
day's work on Feb. 1 because of

sented

the

first

such

the 30 years that

increase

during

1959's

final

ber 1958.

Production

also

month
over

Decem¬

AA

4

December

ship¬

1959,

ments of both softwood and hard¬

lumber

wood

production.
6%

were

5%

less than

New orders for soft¬

lumber, meanwhile, took a
over December produc¬
while for hardwoods, new

lead

tion,

orders fell 8%

the

end

of

mill
stocks of all lumber totaled 9,610,C-00,000 board feet—5% more than
the 1958

1959,

gross

year-end levels.

as of Dec. 31, 1959, were
substantially from the end of
1958. For softwoods, however, un¬

producers
off

than

a

were

5%

Business Failures Rise

in

Feb. 4 Week

Commercial and industrial fail¬
to

318

in

the week

in the pre¬

ceding
week,
reported Dun
&
Bradstreet, Inc.
At the highest
level
since
April 9
last year,

the similar week of 1939.
Electric Output 6.1 % Above

amount

Week

of

electric

energy

involving liabilities of

Failures

$5,000

or more

rose

noticeably to

287 from 250 in the

previous week
ago. On the other

distributed

and 235

hand, small casualties, those with
liabilities
under
$5,000,
held

by the electric light
industry for the week
ended Saturday, Feb. 6, was estimated at 14,097,000,000 kwh.. according to the Edison Electric Institute.
Output
was
236,000,000
kwh. below that of the previous
power

„,

w,

year

a

steady at 31, slightly below the 36
of this size in the corresponding

Liabilities ranged
for
37
of the
failures as against 35 in

the

Lumber

Shipments 1.8% Below
.

largely for

upturn, with its toll climbing
174 from 132 a week ago. Cas¬

to

ualties
Up

low

from

in the trades and
but manufacturing
failures fell short of their 1959
level
and
service
failures
re¬

orders

of

reporting

mills

of gross stocks.

For reporting softwood mills, unfilled orders were equivalent to
19 ^ Production at the current

rate an.I gross sto
alent to 47 days production.
For the year-to-date, shipments
of

reporting
were

identical mills were
production; new Or-

ders were 10.0%

below. produc-

tion.

Compared
with the
week ended Jan. 23, 1960,
tion

of

above.

tl

previous
produc¬

reporting mills was 3.1 %
shipments were 5.5%
new
orders were
Compared ,with the

1.2%
cor-

responding week in 1959, produc¬

to

and

4-7;

Mountain

West North

Central

,

sportswear

was

prices

slight

a

rise

volume edged

as

in

up.

all

from

oats

sets

somewhat,

expanded
showed

phia

change.

no

so

slight

down

was

some¬

in

:

■

There

food

was

moderate

a

sales

at

decline

retail this

week.

Grocers

reported
decreases
in
fresh
meat, poultry, and dairy
products. In contrast, volume in

goods,

canned

baked

goods

frozen foods, and
slightly

moved

ahead.

Nationwide
Sales Up

Department

Store

6% for Jan. 38 Week

Department store sales on a
country-wide basis as taken from
the

Federal

dex

shown

for the week

Reserve

Board's

ended

In¬

Jan.

30,
1960, increased 6% above the like
period last year. In the preceding

week, for Jan. 23,
8% was reported.
weeks

ended

increase of
For the four

an

Jan.

30

7%

a

in¬

registered over the
same period in 1958.
According to the Federal Re¬
serve
System department store
crease

but prices
Arrivals of

far this year came to 281,compared with 385,918
comparable period a year

sales

bags,
the

showed

what.

in New York and Philadel¬

cocoa

washers

and

appliance volume

rise

The

mod¬

increases from last year, over-all

In¬

in domestic
buying was attributed to the an¬
ticipation of Lenten needs.
Although trading in coffee was
light, prices were steady through¬
out the week.
Cocoa purchases
Cuba.

by

:

stores reported

year-to-year gains in up¬
chairs, bedroom sets,
and case goods. The call for floor
coverings and linens was up ap¬
preciably from last year, but sales
of draperies showed no change.
Although purchases of television

appreciably during the
week, rice prices were unchanged.
Sizable purchases were made by
also

rise

erate

moved up

was

moderate

holstered

week,
they
finished
un¬
changed from a week earlier; rye

interest

year

last year.

Furniture

the

creased

over¬

a

buying of women's
Spring merchandise, especially
dresses and suits. Volume in girl's
apparel
was
down
moderately

Trans¬

Nigeria.

Another

period.

levels; wheat supplies were ample.
Although rye prices moved up
fractionally towards the end of

and

somewhat below

occurred in the

in wheat were sluggish,
prices remained at prior week

Liberia,

sales

ago; purchases of sportswear
matched those of the similar 1959

actions

India,

Year-to-

coats, suits, and dresses held

on

trading was slow and offerings
were
light. Both export and do¬
mestic buying of soybeans sagged
and marketings were light;
this
resulted in a slight dip in prices.
Transactions in flour were slug¬
gish and prices showed no change
from
a
week earlier.
Although
export
and
domestic purchases

shoes.

and

decreases in women's Winter

year

during
the
week
and
somewhat
higher.

.

was

in

New

York

City for the

week ended Jan. 30 increased 7%
over

the like period last year.

In

the

ago.

slight increase in
steer prices during the week as
trading edged up. Cattle receipts
in Chicago were down fraction¬
was

preceding week ended Jan. 23,
sales increased 9% over the like

a

period
weeks

last

For

year.

ending Jan.

crease was

reported

30

the

over

.four

6%

a

in¬

the 1959

services

mercial

than

More

51.

last

to

businesses

failed

year

construction,

mained the same as a year ago.
Most
week

of
was

the

rise

during

the

in

the

concentrated

Middle Atlantic States, where cas¬

94,
and in the Pacific States, up to
77 from 56. Moderate upturns also
were
reported in the New Eng¬
land, West ..South Central, and
Mountain States.
On the other
ualties

increased

,

.

25 (from

week

amounted to 38%

+3

Central

+5;

wholesalers edged ary from the prior, week,. but period.
to 27 from 21 and amohg com¬ were, moderately higher than a

ended Jan.

filled

There

among

22.
Contrasting declines prevailed in
manufacturing, down to 43 from
55, and in construction, off to 49

production during the week
30, 1960. In the same
new
orders of these mills
were 9.4% below production.
Un¬

percentages:
to +8; East

+4

East
+1
and
West
South 'Central
0
to
4-4;
South Atlantic —2 to +2; Pacific
Coast —3 to 4-1; New England
——4 to 0.
"*
While interest in men's apparel
dipped from a week earlier, vol¬
ume
was
up
slightly from last
year; gains in Winter suits and
furnishings offset declines in
to

were

There

Retailing accounted

.

shipments of 458 mills
reporting to the National Lumber
Trade Barometer were 1.8% be¬
Lumber

preceding week.

week earlier and 276.47

a

slightly
prices

in

comparable 1959 week,

Price

Prior Week

Atlantic
Central

South

corresponding date a year ago.
Trading
in
corn
picked
up

411

$100,000

week's

Middle

the

above

the

-

273.65

week last year.

week's total of 14,313,000,000 kwh.
but showed a gain of 1,021,000,000
kwh., or 6.1% above that of the

to

following

the

by

North

Higher prices on some grains,
steers, lambs, and tin off¬
set declines on hogs, rubber, wool,
and steel scrap holding the gen¬
eral commodity price level close
to
the
prior week.. The Daily
Wholesale Commodity Price In¬
dex, compiled by Dun & Brad¬
street, Inc., stood at 273.44 (193032=100) on Feb. 8, compared with

greater

year ago.

climbed

& Bradstreet,
Regional
estimates
varied
from the comparable 1959 levels

sugar,

but

Unfilled order files of hardwood

filled order files

Commodity

Index Close

behind the month's

output.
At

show

a year

spot estimates

■

7% increase

a

to

Wholesale

in

monthly records

have been maintained.
scored

is

trend of food prices at the whole-sale level.
•
j
% A'/

level for that month in five years.
A 2% gain over November repre¬

parts shortages. Elsewhere in the
industry, American Motors car- casualties exceeded the 271 .oc¬
ried out Saturday car-building at curring in the comparable week
although they re¬
Kenosha, Wis., and Studebaker- a year ago
Packard's South Bend, Ind., works mained below the 342 in 1958. The
toll equalled the prewar level in
completed a five-day program.

1959

function

It is not

Its chief
the general

re¬

Inc.

.

index.

of

higher than

ago, according to
collected by Dun

in

cost-of-living

dollar volume

total

The

of

2,947,000,000
the greatest

ended Feb. 4 from 281

above;

,

3 was 1 to 5%

•

Higher

a

the

above;

Railroads

year ago.

and meat in general use.

Lumber

continued fivethe

feet

6%.

ures

of

that of the

tail trade in the week ended Feb.

7,225,000,000

day scheduling at all plants, with

exception

buying below

held

week's $5.90 and 7.0% below the
$6.19 of the corresponding date a

.

Angeles, Calif.
Chrysler Corp.

board

softwood lumber and

wood

six-cylin¬

lines

some

9%

ended

"Ward's"

con¬

in

prior week,' overall retail trade
Drops Noticeably
was up slightly from a year ago.
Following three consecutive in¬ While there were year-to-year
Greater Than in Previous Year
creases, the wholesale food price gains in men's apparel, new pas¬
Topped off with an unusual De¬ index, compiled by Dun & Brad- senger cars, furniture, and floor
cember upturn,
national lumber street, Inc., fell noticeably during "coverings, volume in women's ap¬
production in 1959 totaled 36,934,- the latest week. On Feb. 2 it stood parel and appliances was down
000,000 board feet. The National at $5.76, down 2.4% from the prior somewhat.
Lumber

During

According

pro*

motions

Index

Price

Food

29

slackening in clearance sales
sumer

Wholesale

1959

Jan. 9.

an-

-

1Q°bnced. This

Only three areas suffered fewer
casualties than in 1959.

below.

ber,

Early January

was an increase of
or
3.3% » above, the

American

com¬

"Ward's

j«% %elo^

1959 Week
revenue

of reporting mills was
3.1%
above; shipments were 1.1% be¬
low; and new orders were 12.3%

freight

Lowest

Jan. 30 Week

was
equal to
the utilization
of
the

of

general

Production

1.

output for the week be-

Snnning iFeb

of

throughout the country.

compare with the actual levels of

T67.0%

tion

and

94.4% of Capacity

American

(685)

price were wheat, rye, oats,
beef,
hams,
lard,
cocoa,
eggs,
raisins, steers, and hogs.
'
board feet of hardwoods.
The
Dun
&
Bradstreet, Inc.
metropolitan
Mill shipments of all lumber for
wholesale food price index repre¬
areas conducted
by the ATA Re¬ the year were
only 1% below the sents the sum total of the
search- Department.
price
The
report output. Compared with 1958,
per pound
of 31 raw foodstuffs
reflects tonnage handled at more
shipments registered an increase

The

This Week's
On

industry

Chronicle

to

114 from

hand, declines occurred in four
regions; the most noticeable drop
was in the East North Central toll,
down to 41 from 55.''In six re*

gions,
businesses
mortality
equalled or exceeded that in the
comparable. week pf last year.

year

Form W. F. Marshall Co.

The salable supply of
dipped
moderately,
and

ago.

lambs

ANAHEIM, Calif.—W. F. Marshall
& Company has been formed with

prices moved up fractionally on
steady purchases. A moderate de¬
cline in hog prices occurred as

offices at 300 Wilshife Avenue to
engage

trading dipped somewhat.
Trading in cotton rose slightly
during
the
week
and
prices
matched

those

of

a

Robert

E.

&

formerly with Walston
Co., Inc. and Eastman Dillon,

Union Securities & Co.

estimated at 150,000
the New York Cotton
Exchange Service Bureau.
This
compared with
247,000 in the

Lee

by

a

year

ago.

120

East

the

management

Colonial

Bowles.

.

Retail Trade Slightly Exceeds,

Higginson Branch

ORLANDO, Fla.—Lee Higginson
Corp., members of the New York
Stock Exchange and other major
securities
exchanges, announces
the opening of a new office at

prior week and 38,000 a year ear¬
lier.
Exports
for
the
season
through Feb. 2 came to about 2,832,000 bales, compared with 1,439,000 in the corresponding pe¬

j

and

was

were

bales

.

business.

Willam F. Marshall,

general, partner,
shall

States exports of cotton
during the week ended last Tues¬

riod

securites

a

are

Weiss, limited partner, Mr. Mar¬

week earlier.

United

day

in

Partners

>

Last Year

Although unfavorable shopping
weather
in
some
arpas
and a

>

Drive,

under
Robert W.

of
.

.

.

Charles F. Chaney, Paul Hayne,
Jr., Mary Ritter Collins and Earl
Pfantz are also associated with the
.

new

office.

30

and Financial Chronicle

The Commercial

(686)

.

.

Thursday, February 11, i960

.

* INDICATES

Aaronson

Bros.

Stores

(2/15)

Corp.

of 70 cent cumulative pre¬
ferred stock
(par $2.50).
Price —To be supplied by
amendment.
Proceeds—To pay for opening, equipping
and stocking three new stores in El Paso, San Luis,
Ariz., and San Diego, Calif. The balance of the pro¬
Dec.

filed

29

40,000 shares

ceeds will be added to the company's

that

stores

general funds and

to open, equip and stock additional
be opened in the future. Office—526

primarily

used

may

East Overland Avenue, El Paso, Texas. Underwriters—
Eppler, Guerin & Turner, Inc., Dallas, Texas, and Harold
S. Stewart & Co., El Paso, Texas.
★

Electronics, Inc. (2/19)
?
(letter of notification) 150,000 shares of
stock (par 25 cents).
Price—$1.50 per share.
16

mon

ceeds—For

research

Pro¬

and

development, advertising and /
for working capital.
Office—13215 LeadwelfTStreet, N.
Hollywood, Calif.
Underwriters — Amos Treat & Co.,
Inc., New York and Arthur B. Hogan, Inc., Los Angeles,
Acme

Wholesale

Corp.
Jan. 21 (letter of notification) 295,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—To

purchase merchandise

accounts

payable,

Underwriter

for

and

Office—410

penses.

payment

of

notes

and

advertising and other ex¬
Bldg., Nashville, Tenn.
Co., Inc., Bowling

Studekum

Crescent

—

for

Securities

Green, Ky.
Research

Development,

Jan. 25 filed 200,000 shares of

share.

per

Proceeds

common

Inc.

stock.

To

purchase land, to construct
buildings, and provide necessary equipment and capital
to engage in a hog raising
enterprise. Office—Wiggins,
Colo. Underwriter—W. Edward
Tague Co., Pittsburgh,
—

Pa.

Dynamics International Corp.
(2/15)
Sept. 25 (letter of notification) 100,000 shares of com¬
mon stock (par 10
cents). Price—$3 per share. Proceeds
—For general

corporate purposes.

Office—229 S.

State

Street, Dover, Del. Underwriter—Aviation Investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
Alaska Consolidated Oil Co., Inc.

Sept.

17

filed

3,000,000 shares of common stock (par
Price—$2.50 per share. Proceeds—For fur¬
ther development and exploration of the oil and
gas po¬

five cents).

tential

of

the

company's Alaska properties. Office—80
Wall Street, New York. Underwriter—C. B.
Whitaker,
A. J. Zappa & Co.,
Inc., New York. Offering—Expected
in March.

Electric Bond & Share Co.

Allied Bowling Centers, Inc.
29 filed $750,000 of

(2/15-19)
sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For
general cor¬
porate purposes.

Office—Arlington, Texas. Underwriter

200,000 shares of capital stock. Price—$8
Proceeds — To increase capital and surplus.
Office—1455 Union Ave., Memphis, Tenn. Underwriter—
Union Securities Investment Co., also of Memphis, which
will receive a selling commission of $1.20 per share.
Land

Co.

300,000 shares of class A preference stock
($15 par) and 300,000 shares of common stock,,to be offered in units of one share of preference and one share
Dec.

of

14 filed

supplied by amendment. Pro-

Price—To be

common.

property acquisition and development. Offiee—49 E. 53rd Street, New York City.; Underwriter—

Noyes

&

ruary.

Co.
Offering—Expected
'/v'x,-

in

,

Feb¬

American-Marietta Co.
Jan.

25 filed

To be

1,882,718 shares of common stock.

Price—

supplied by amendment. Proceeds—For acquisition
businesses and for general corporate pur¬
Office—101 E. Ontario Street, Chicago, 111. Un¬

of additional
poses.

derwriter—None.
American

Molded

Fiberglass Co.
notification) 300,000 shares of

stock

(par 10 cents).
Price—$1
general corporate purposes.

common

share.
Proceeds—
Office—85 Fifth Ave.,
Paterson, N. J. Underwriter—First City Securities, Inc.,
New York, N. Y. Offering—In early March.
1

For

American &
Jan.

filed

27

St.

Lawrence

per

American

Service

Life

Insurance

Co.

including, possibly, the acquisition of simi¬
larly engaged companies. Office — 113 Northeast 23rd
Street, Oklahoma City, Okla. Underwriter — First In¬
vestment Planning Co., Washington, D. C.
purposes,

★ American Steel Foundries
filed

122,856

shares of its common stock, issu¬
Option Incentive Plan for Key Em¬
ployees (1952) and its Restricted Stock Option Incentive
Plan for Key Employees.
Office—Chicago, 111.

Anadite, Inc.

Jan.

18

(2/19)
50,000 shares

filed

capital

stock

(no

par).

Proceeds—To buy
property, repay bank indebtedness, and add
to working capital.
Office—10630 Sessler Street, South
Gate, Calif. Underwriter—Dean Witter & Co., San Fran¬

cisco, Calif.

of investment.

★ Andrea

Ark.

Feb.

Office—115 Louisiana
Street, Little Rock,
Underwriter—The offering is to be made
by John
L. Hedde, President of the
issuing company and owner
of 10,000 of its
80,000 presently outstanding shares.
Mr.
Hedde will work
ceive

on

a

"best efforts"

selling commission

a

Arkansas sales

and

15

cents

of

12

per

basis, and will

cents

share

per

share

re¬
on

out-of-state

on

of

3

Radio

common

mon

stock.

for

the

purchase of 5,500 shares
stock together with 125,000 shares of com¬
Price—To be supplied by amendment.

Pro¬

ceeds—To president F. A. D.
Andrea,
Office — 27-01 Bridge Plaza
N. Y.

selling stockholder.
North, Long Island City,

Underwriters—W. C. Langley & Co., of New York
who, together with S. W. Muldowny, will acquire

sales.

City,

Allied Small Business Investment
Corp.
Sept. 29 filed 100,000 shares of common stock

said warrants.
★

(par $8).
Price—$11 per share. Proceeds—To be used to
provide
equity capital and long-term loans to small
business
concerns.

Office—Washington, D.

members who execute

a

Expected in February.

C. Underwriter—NASD
selling agreement. Offering-

to

stock

(par

be

offered

one

in

cent).

Springs, Colo.

exchange

fpr

par

3

filed

value).

ceeds—The

class

B

common
common

Office—416 N. Tejon St., Colorado

Underwriter—None.
★ American Business Machines
Feb.

Systems, Inc.

100,000 shares of common stock (without
Price—To be supplied
by amendment. Pro¬

company intends to increase its productive
by purchasing new
machinery, consisting of
rotary presses and certain auxiliary
equipment re¬
lating to the manufacture of business
forms, at an esti¬
mated cost of
$400,000. Approximately $125,000 will be
used to expand the
company's sales and service organ¬
ization by
training additional sales personnel and
by
banding present sales offices and
opening additional
offices.
Bank obligations of
$150,000, which were in¬

capacity
four

curred

tory

in

and

the

November, 1959 to finance additional inven¬
receivable, will be discharged, and

accounts

remaining monies will be
retained as additional workmg capital and be used for
general corporate purposes.
Bache &

B Street Philadelphia,

n

Co., New York.

★ American
*eb. 3 filed

warrants for

Pa. Underwriter—

Systems,

deloWa

Price—To be

Proceeds-For new equipment;
? or£anization; discharge of debts,

and

T?'

warrants




new

shares for

each 10 shares

held.

Price—$4

share.

per

Proceeds—To repay a current debt and for work¬
Office — 111 Martin Street Ashton, R. I.
Underwriter
Lapham &

Co., 40 Exchange PI, New

York, N. Y.

purposes.

Office—2929

vde,rW£iter~~Bache & Co.,
Wh°

"B"

St.,

of Phila^ to accluire said

i

_i*t

&

Minneapolis,

v

Minn.

Underwriter—None.

provide

for

the

operation

of fleets of auto¬
mobile-type rental trailers in the U-Haul Trailer Rental
System or the Kar-Go Trailer Rental System. Office
4707 S. E. Hawthorne
Boulevard, Portland, Ore.
SEC
clearance is expected about March 1.
'

★ Arcs Industries, Inc.
10 filed 100,000 shares of common
stock (par 10
cents). Price—$3.75 per share. Proceeds—To
discharge
Feb.

indebtedness; advances for

research

and
development; to
equipment and the balance for general
corporate
purposes.
Office—Merrick Road,
Bellmore, L. I., N. Y.
Underwriter—Myron A. Lomasney & Co., New

buy

»

;

v

filed

(2/24)

.

<

$750,000/of sinking fund debentures,
6V2 series, due 1975 with, eight-year warrants for the
purchase of 22,500 common shares at the rate of 30
shares for each $1,000. of debentures; (b) 90,000 shares
of .6Vz% cumulative convertible first preferred stock; ]
and
(c) $750,000 of 6V4% first mortgage bonds, due !
1972, sold to New York Life Insurance Co., along with j
12-year warrants granted said insurance company to
j
purchase 15,000 shares of the issuer's common at a price !
to be specified.
Prices—For the debentures, at par; for
the preferred, $20 per share. Proceeds—For general cor¬
porate purposes including repayment of loan, purchase
of land, construction, purchase of machinery and equip¬
ment, and for working capital. Office—2325 Annapolis
Avenue, Baltimore, Md. Underwriter—P. W. Brooks &
Co., New York City.
T •
/
22

Jan.

(a)

Management Corp.

Sept. 10 (letter of notification) 300,000 shares of
stock

common

Price—$1 per share. ProceedsFor working capital. Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark
N. J.
Offering—Postponed due to change in structure
(par 25

cents).

issuer.

of

///;,yy'../

.yf/y

filed

9

Feb.

50,000 shares of common stock. Price—To
Proceeds—To pay off notes,
expansion, and for general corporate purposes. Of¬

be supplied by amendment.
for

fice—Stamford, Conn.

Underwriter—Hayden, Stone &

Co.

★ Basic Securities, Inc,
(letter of notification) 50,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To in¬
investment

crease

portfolio, expansion and for work¬
Office—506 Frank Nelson Bldg., Binning-?
Underwriter—None.
^

capital.

ing

ham, Ala.

Bastian-Morley Co., Inc.
$650,000 of convertible first mortgage sink¬
ing fund bonds, due Jan. 1,_ 1975.
Price—At 100% of
principal amount. Proceeds—To buy about 50.6% (67,r
Jan. 18 filed

808
of

shares) of its outstanding common from the family
its founders,

of

one

the late James P. Morley. This
The remainder of the proceeds will

applied to the retirement of the issuer's junior con*
5%
debentures.
Office—200 Truesdell Ave.,

vertible

,

LaPorte, Ind.
Underwriter
Indianapolis 4, Ind. Trustee
Fletcher National

Bank

—

City Securities Corp.,
American
Registrar

Trust

&

"

A

&

'

Co.

Border Steel

Sept.

14

filed

Rolling Mills, Inc.
$2,100,000 of 15-year

6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50 par), to be offered/in
units of $50 principal amount of debentures and five
shares

of

common

amendment.

stock.

Price

Proceeds—For

—

To

be

supplied by

purchase of land and
thereon, and for the manufacture and in¬
stallation of necessary equipment.- Office—1609 Texas
Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
Texas.
y; .'■■■
'"'/Vy,, y'
■/;/•'>////■
the

construction

..

v

.

Rolling Mills, Inc.
Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record Aug. 31,
1959, on the basis of 49 new shares for each share then
held.

Price—To be supplied by amendment.

general

corporate

Street, El Paso, Texas.
•

ProceedsTexas

Office —1609
Underwriter—None.
purposes.

Bowman Co.
_

Jan. 27 filed

290,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To selling stocks
holders. Office—Cleveland, O. Underwriter—Wertheirn
&

Co.,

New York

February
•

or

Britton

Jan.
mon

City. Offering
early March.
y -

—
•

Expected in late
y

....

1

Electronics

Corp. (2/15-18)
19
(letter of notification) 225,000 shares of com¬
stock (par one cent).
Price—$1 per share. Pro¬

ceeds—For

general

corporate

purposes.

Office—213-20

99th

Ave., Queens Village 99,. N. Y. Underwriter—First
Philadelphia Corp., New York, N. Y.

Brooklyn Union Gas Co.
Jan.

stock,

★ Arrivals, Ltd.

25

filed

series

(2/24)
150,000 shares of cumulative preferred
A (par $100).
Price—To be supplied by
,

amendment.

Jan. 29

(letter of notification) 44,000 shares of common
stock (par $1). Price—$5
per share. Proceeds—For work¬
ing capital. Office—203 N. Wabash
Ave., Chicago, 111.
Underwriter—Craig-Hallum, Inc., Minneapolis, Minn.
Associations Investment Fund
Aug. 28 filed 400,000 shares of common stock.
Price—

supplied by

n

Baltimore Paint & Chemical Corp.

For

Arcoa, Inc.
$6,000,000 of U-Haul Fleet Owner Contracts
and $3,000,000 of Kar-Go Fleet Owner
Contracts. The

To. be

•

Border Steel

Dec. 28 filed

contracts

Sons

,

Apache Properties, Inc.
Nov. 20 filed 500,000 shares of common
stock (par $1)
to be offered in exchange for undivided
intere-ts in gas
and oil leaseholds located in certain
counties in Okla¬
homa. Price—$10 per share. Office—523
Marquette Ave.

Inc.

100,000 shares of common
stock, and 3-year
5,000 shares of common stock.

PPnAJi
<5 ?
corporate

of 7

York,

Business

f* by amendment
and

(letter of notification) 74,800 shares of common
stock (par $1) to be offered to stockholders
on the basis

—

(letter of notification) 36,350 shares of

stock

Cable Co.

Jan. 28

ing capital.

★ Allservice Life Insurance Co.
Jan. 28

Ansonia Wire &

Washington, D. Ci Underwriters—G. J. MitTY
nVi/I
D
1 rvUi1 D
t
Washington, D. G.; and Ralph B. Leonard
jnc
of New YorfcCityL

_

Tw_

jheir Jr.*Co.',

be

Corp.

warrants

sub¬

plement the funds of the three subsidiaries. Office—930

will cost $542,466.

-

filed

three

★

of

plant and

Price—$1

company's

Jan. 28

able under its Stock

★

the

.

★ Barnes Engineering Co.

Sept. 14 filed 300,000 shares of common stock (par 40£).
Price—$3.50 per share. Proceeds—For general corporate

8

of

Tower Bldg.,

Bankers

stock, of which
350,000 shares are to be publicly offered. Price—$3 per
share. Proceeds—To pay off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
Office—60 E. 42nd St., New York City. Underwriter—
A. J. Gabriel Co., Inc., New York City.
common

Price—To be supplied by amendment.

Proceeds—For working capital to be used in
the purchase of oil and gas
properties and related forms

,

shares

the

sidiaries; for general corporate purposes;. and the re¬
maining balance will be used from time to time for
the purchase of all or a substantial interest Tn or the
formation of one or more other companies engaged in
the business of insurance or finance or to further sup¬

Seaway Land Co.

538,000 shares of

in

invested

ceeds—For

Allied Producers
Corp.
Dec. 3 filed 1,000,000 shares of common stock.

share.

★ Aviation Employees Corp.
;
shares of common stock. Price—$2
share. Proceeds—Together, with, othef funds, will be

Feb. 8 filed 2,500,000

share.

per

—Jtauscher, Pierce & Co., Inc., Dallas.

per

Street,

per

Nov. 30 filed

Feb.

Dec.

Office—301 ;Wy 11th

-

City, Mo; Underwriter—Jones Plans, Inc., a sub-'
sidiary of R. B. Jones & Sons, Inc;->::y,/V
y\V-..

New York City.

.

Aircraft

stocks.

common

ISSUE

v

Jan. 29 (letter of

Price—$5

owner,

REVISED

Kansas

American Frontier Life Insurance Co.

★

Agricultural

the

Office—100 Church St.,

Hemphill,

Calif.

★

at-the-market by

in

PREVIOUS

ITEMS

•

ment

★ American & Foreign Power Co., Inc.
4 filed 200,000 outstanding shares of its common
stock. Price—To be sold from time to time on the NYSE

American
com¬

Registration

Feb,

Accurate

Dec.

in

Now

Securities

ADDITIONS

SINCE

amendment.

Proceeds—For

invest-

Proceeds—For repayment of bank loans
outstanding at Jan. 1, 1960. Office—176 Remsen Street,
Brooklyn, N. Y. Underwriters—Blyth & Co., Inc. and
Eastman Dillon, Union Securities &
Co., New York, N. Y.
Burch Oil Co.
A

Sept. 25 (letter of notification) 120.000 shares of class A
common stock
(par five cents). P~«"e—$2.50 per share.
Proceeds—For building and equipping stations

and truck

and

Number 5924

191

Volume

The Commercial

...

additional working capital.

Office—C/o Gar-

I

Nw

by amendment. Proceeds—To go to sellOffice—375 Memorial Ave., Camden
underwriter—The First Boston Corp., New

j

U

.

fjl

fhP

clown

—

*;■

'

•

•

rk«#.u
Office

■

t

minintf

n#

nloimc

to
Hie balance of construction costs on
*n Torrance, Calif, and^ for working capital.

Offering"—Expected in early March.
Captains Club, Inc.
:
v
jan 22 filed 500,000 shares of. common stock. Price—$2
per share.
Proceeds—For retirement of $52,860 of 6%
I notes and the balance for operating funds and working
I capital. Office—381 Fifth Avenue, New York City. Un¬
derwriters—G. Everett Parks & Co.,. Inc., and Sulco

A. T. Brod &

26

and

250,000

offered in units of

$20.20

Offering—Indefinite.

Citizens
Nov.

Corp. (2/15-19)
30 filed 120,000 shares of common stock.

•

(Eppler,

Guerin

&

11

of

Inc.

and

Soroban

Centers,

Debentures

Inc

Electronics' Corp.——
Philadelphia

Carolina Natural
(Cruttenden, Podesta

Cascade Pools
(R.

A.

&

(Marron, Sloss
&

&

Co.;

Co.,

Inc.;

Donaldson,
First

(Milton
.

D.

Blauner

Co.,
&

Common

General Aluminum Fabricators, Inc
Nord

Plohn

&

Co.)

MPO

Co.

&

Inc.;

(Hilton

Securities,

(P.
•

$300,000

February 16 (Tuesday)
(The

First

5.>

Boston

Corp.)

Capital

1,000,000 shares

Co.—;——-—Debentures

"-. (Lehman.Brothers)

-

$7,500,000

Industries, Inc.____,

Co., Inc.)

(George, O'Neill & Co.) $2,000,000

Debentures
Inc

Webster Securities Corp. and White, Weld & Co.)
■

'

1,500,000 Shares

Polymeric Chemicals, Inc.(Dominick <fc Dominlck)

February

17

Howe Plastics
*

'

'*

March

E.,,Unterberg, Towbin Co.)

Row, Peterson




.

•"*

~lnc.)

164,689

shares

$1,500,000

(Tuesday)
Bonds

Light Co._

(Bids

West
V:

11

a.m.

EST)

$14,000,000

Debentures

Virginia
(Bids

.

11

a.m.

$25,000,000

EST)

Brooks &

(Bids

March 29

Bonds

Service Co

invited)

$15,000,000

11

Bonds
$4,000,000

EST)

a.m.

(Tuesday)

Bonds

Light Co

Debentures

EST)

$25,000,000

(Bids to be invited)

,

Stock

;

(Tuesday)

$19,500,000

(Bids

Alabama

11

a.m.

(Thursday)

April 7

—Preferred

and Eastman

be

(Blyth & Co., Inc.) 256,930 shares

April 5

Bonds

$750,000

Co.)

to

March 17 (Thursday)
Mississippi Power Co

Preferred

Power

Bonds

Co

(Monday)

April 11

National Fuel Gas Co.—

Dillon, Union

—Debentures

—

$18,000,000

(Bids to be invited)

...Debentures

Co
11 a.m. EST)

$20,000,000'•

Common

Texize

EST)

a.m.

$12,000,000,

Common

(Kidder, Peabody & Co.) 174,576 shares

February 25
(Bear,

Stearns

Debentures
$40,000,000

(Bids to be invited)

(Carl

M.

Loeb,

Rhoades

-Common
&

The

Co.;

June 2

(Thursday)

-Common
shares

$40,000,000

July 1

(Friday)

Tennessee Valley

Authority

—

(Bids to be invited)

(Friday)
Dayton Power & Light Co.——
J
(Bids 11

February 29
Commerce Drug

a.m.

Co..

Bonds

$25,000,000

Co., Inc.)

Laboratories,
Sulzberger,

March

-Common

$585,000

Common

Inc.——

Jenks, Kirkland & Co.) $510,000

Laboratories, Inc.--—-—Debentures

(Hallowell, Sulzberger, Jenks, Kirkland &

Dworman

July 7

(Thursday)

Gulf Power Co

—

(Bids to be invited)

_____-------

&

Bonds

$50,000,000

^

(Monday)

(Marron, Sloss

Whitmoyer

EST)

Bonds

Southern Electric Generating Co

and H. M. Byllesby & Co., Inc.)

February 26

Boston Corp.;
$10,000,000

First

Lehman Brothers; Goldman, Sachs As Co.)

(Bids to be invited)

Corp...
350,000

Telegraph

&

Co.

(Thursday)

& Co.

(Tuesday)

West Penn Electric Co

Bonds

Chemicals, Inc.—

11:30

April 12

Mountain States Telephone

Sutro Bros. & Co.)

Service Co. of Oklahoma

Common
shares

.——Common

& Co

(Kidder, Peabody & Co.,

.

110,000

>

15

Central Illinois

$750,000

Public

(Hallowell,
.

Debentures
underwriting)

Carolina Power &

$1,800,000

(Allen & Co.; Bear, Stearns & Co. and
400,000 shares

Whitmoyer

Companies, Inc.—Com.

Lewis Business Forms, Inc..
(C.

——Common

(Hilton Securities, inc.) $100,000

(Monday)

Bank of California

150,000 shares

Brooks & Co.)

W.

Duquesne Light

71,090 shares

(Wednesday)

& Chemical

14

Securities & Co.) $15,000,000

.....Common

Co

—Common

Inc.

Corp.

.

^nnessee Gas Transmission
(Stone &
S.

March

Common

—

du Pont & Co.)

W.

Clinton Engines

Common

,(No underwriting) $143,509,000
\
"aciftc Telephone &
Telegraph Co.
..Debentures
rp
(Bids 11 a.m. EST) $72,000,000
;

r>

Devices,

shares

68,000

& Chemical Corp

(Bids

Preferred

Pacific Telephone & Telegraph Co

u-

&

i;j(Plymouth Securities Corp.) $600,000,

Lancer

TT

Common

'

r

Hi-Press Air Conditioning Corp. of America—Com.
'

shares

152,241

Co.)

&

Phillips Developments, Inc
—

Common

Inc

to stockholders—underwritten by C. E.
Stoltz & Co.) $154,962.50

(Bids

Holman & Co., Inc.) $51,000

(Bids

Campbell Soup Co.__.__

page

Chesapeake & Potomac Telephone Co. of

—Common

(Blyth & Co., Inc.

Hayton.Rubber,

shares

50,000

Brooklyn Union Gas Co,

Common

___

$225,000

on

(Offering to stockholders—underwritten by C. E.
Stoltz & Co.) $537,788.75

Secode

Inc.)

Hogan,

Baltimore Paint & Chemical Corp

(First City Securities, Inc. and Frank P. Hunt & Co., Inc.)

.

Co.)

&

Podesta

Videotronics,

(P.

Common

Stantex Corp.

Continued

Common

Arthur B.

(P. W. Brooks & Co.)

$1,300,000

Inc.)

of stock and $100 of debentures and nine shares of stock.

(Tuesday)

Baltimore Paint

(Hill, Darlington & Co.) $816,725

•

Refining Corp.

16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in junits as follows: $1,000 of bonds and 48 shares

(No

Magic, Inc

..Common

Puget Park Corp

Commerce Oil
Dec.

-Capital

Witter

(Francis I.

(Myron A. Lomasney & Co.) 36,400 shares
...

100,000 shares

Inc.)

February 24 (Wednesday)
Baltimore Paint & Chemical Corp

Common

$300,000

Inc

Drug Co. (2/29-3/4)
90,000 shares of common stock. Price—$6.50
per share.
Proceeds—To selling stockholders. Office—
505 Court St., Brooklyn, N. Y.
Underwriter — Marron,
Sloss & Co., Inc., New York City.

Common

Co.,

and

A. Holman

Photocopy & Business Equipment Co.__Com,

Pathe: News,.

Commerce

Nov. 30 filed

Taylor

—

(R. A.

David Finkle
and Gartman, Rose & Feuer) $165,000

(Charles

Glass

$235,000

Inc

Co.,

Inc.

800,000 shares of common stock (par $1).
Price—$2.50 per share. Proceeds—For general corporate
purposes, inclding expansion, new product development,
and working capital. Office—135 S. La Salle Street, Chi¬
cago, 111.
Underwriter—David Johnson & Associates,
Inc., Indianapolis, Ind., on a "best efforts" basis.

Common

Magic, Inc
(R.

L. B. Schwinn
Inc. and

Jenrette,

&

Electronics

30 filed

140,000 shares

Inc.)

Co.,

Inc.

(Cruttenden,

Glass

Common

Corp.)

Combined
Oct.

Northern Indiana Public

Co., Inc.) $100,000

Luskin

Co.,

&

February 23
Culligan, Inc.

Roosevelt & Gourd;

Albany

Control Electronics

Securities, Inc., Englewood, Colo.

★ Cold Lake Pipe Co., Inc.
Feb. 5 filed 200,000 shares of common stock. Price—$6
per share.
Proceeds—Repayment of loans and indebt¬
edness, working capital and expansion.
Office—1410
Stanley St., Montreal,, Canada. Underwriter—None.

$300,000

Inc.) 120,000 shs.

Computer Usage Co., Inc

$50,000,000

Universal Transistor Products Corp
Common
(Michael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.)

.Common

Holman

&

Common

Corp

sified

(Friday)

(Dean

——Common

& Co. and Odess-Martin,

EST)

Electronics, Inc

Anadite, Inc.

$225,000

Corp.)

a.m.

S. Dickson &

Treat

$750,000

Corp.

"

v

Gas

11

February 19
(Amos

Price—$1 per share. Proceeds—To purchase land and
for development and working capital.
Office—3395 S,
Bannock Street, Englewood, Colo. Underwriter—Diver¬

(Offering

Engineering, Inc
(R.

Accurate

(letter of notification) 300,000 shares of pre¬
(no par), seven cents per share dividend paying
1, 1962, non-cumulative, non-voting stock.

March

Bonds

(McDonnell

Co.)

&

19

Tayco Developments,

(Thursday)

Co

Power

Onyx Chemical Corp

Preferred
Stewart

Harold S.

Jan.

Park Ave., New York City.
Bear, Stearns & Co., New York City,

February 18

$300,000

Inc.)

(2/25)

,

Office—250
—

(Bids

America,

income-producing securities.
UnderwriterOffering—Postponed.

share.

a

Colanco, Inc.

in

Engines Corp.

indebtedness.

Common

Corp

International

(Rauscher, Pierce & Co., Inc.)

(First

Secu¬

filed 350,000

Underwriters

Allied Bowling Centers, Inc..
Common
J
(Rauscher, Pierce & Co., Inc.) 300,000 shares

Britton

invested

be

commission of 33 cents

Office

shares of common stock.
Price—
To be supplied by amendment.
Proceeds — To reduce

CALENDAR

Stores Corp.—

Bowling

be

share of each class of stock. Price

Proceeds—To pay mortgages.

Higginson Corp.

40,000 shares

Allied

to

Casualty, Co. of New York

(Monday)

Turner,

($10 par)

par),

250,000 shares of class A common stock
Price—To be supplied by amendment. Pro¬

Clinton

Jan.

(2/15)

Investors

(20c

Office—33 Maiden Lane, New York City.

Duke

(Aviation

stock

filed

ceeds—To

Lee

Nov. 30 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For

ISSUE

9

(par $2).

Price—To
be supplied by
amendment.
Proceeds—For debt re¬
duction, construction, and working capital. Office—256
First Avenue N.C W., Hickory, N. C.
Underwriters —
Cruttenden,' Podesta & Coj, Chicago, and Odess-Martin,
Inc., Birmingham, Ala.
/
J
'
-

Aaronson Bros.

B

purchasing stockholders for an additional 10
days, after which such shares may be publicly offered.
Proceeds—For construction of a speedway and its ac¬
cessories. The issuer expects to stage its first stock car
race in May.
Office—108 Liberty Life Building, Char¬
lotte, N. C. Underwriter—Morrison & Co., Charlotte.

M. Dain & Co., Inc., Minne¬

Aircraft Dynamics

class

one

unit.

per

shares of class A stock
of

shares to

Natural Gas

February 15

shares

Price—$2 per share, initially; after 15 days from the of¬
fering date, the underwriter will offer unsubscribed

shares of common capital stock.
prjce—$4 per share.
Proceeds—For general corporate
purposes including debt reduction,-drilling and work¬
ing capital. Office—420 No. 4th St., Bismarck, North

NEW

filed 250,000

111,729 shares of class A common and 70,000

selling stockholder, with the remainder of the offering
to be sold for the account of the issuing company.
Price
—For the class A stock: $30 per share; for the class C
stock: $25 per share.
Proceeds—For working capital,
construction, and repayment of loans.
Office—Yazoo
through Coastal employees with Miss. Chemical UnderCity, Miss.
Underwriter—The offering is to be made
writing on a
"best efforts" basis, receiving a selling

after

Certified Credit & Thrift Corp.
Jan.

Offering—

shares of class C
common, of which 50,000 class C shares
are to be offered for the account of Miss. Chemical
Corp.,

ferred

Charlotte Motor Speedway, Inc.

filed 200,000

Cascade Pools Corp.

Co., New York, N. Y.

Jan. 21 filed 304,000 shares of common
stock, to be of¬
fered to common stockholders of record Jan. 1 at the
rate of two new shares for each three shares then held.

Cardinal Petroleum Co.

Carolina

Corp.

(letter of notification) 200,000 shares of common
(par 50 cents). Price—$1.50 per share. Proceeds
-—To pay off accounts
payable and for working capital.
Office
755 Nash St., El
Segundo, Calif. Underwriter—

—Columbus, Ohio. Underwriter—Commonwealth
rities Corp., Columbus.

Securities, Inc., both of 52 Broadway, New York City.

apolis, Minn.

•

1738 S. La

stock

,

Underwriter—J.

the purchase price of
property in Ven-

£ Certified American Industries
Feb. 3

Iruary.;r
;>•^
• Capital Airlines,, Inc.
Tan 26 filed 909,659 shares of common stock on the basis
of one additional share for each share held. Proceeds—
To broaden equity base.
Office—Washington National
Airport Washington T, D. C. Underwriters — Lehman
Brothers and Smith, Barney & Co., New York, N. Y.

Dakota.

Price—To

<T<

of mining claims. Office—Toronto,
Underwriters—Pearson, Murphy & Co., Inc.,
I ond Emanuel, Deetjen & Co., both of New York City,
!„ a "best efforts" basis. Offering—Expected in Febcnada

Nov. 30

stock.

common

Cienga Boulevard, Los Angeles, Calif.
Underwriter—Daniel Reeves & Co.,
Beverly Hills, Calif.

of capital stock. Price—
amendment. Proceeds—For explora-

supplied by

Chicago.

Coastal Chemical Corp.

repayment of
loans; for payment of the balance of a

on

and H. M. Byllesby & Co., Inc.,
Expected in late February. «v

Dec. 7 filed

amendment. Proceeds—For

bank

payment

u'-ij;

12n°an^development

Dec.

I

unsecured

n. Y.

Can-Fer Mines J-td
22 filed 300,000 shares
ie

?derWr"er~R- A' Holman & c°-

York, N

Jan. 25 filed
150,000 shares of

•Jstockholders.

$L

& Wood Sts.,

Century Properties

qunplied

hp

31^
I.-**

Burch, at 707

n

a

(687)

5TorP°r®rte purposes. Office—River

Grattan Road, Martinsville, Va.
Iftrwriter—Maryland Securities Co., Inc., Old Town
'S Building, Baltimore 2, Md.
Campbell Soup Co.
(2/16) ,;
[
"ft filed 1,000,Q00 shares of capital stock. Price—
i

and Financial
Chronicle

Bonds

(Bids to be invited)

September 13

Preferred

$50,000,000

Gulf Power Co
$5,000,000

(Tuesday)

Virginia Electric & Power Co

—Bonds

(Bids to be invited) $25,000,000

Co.) $500,000

1 (Tuesday)
Corp.
(Charles Plohn & Co.) $3,000,000

Common

November 3 (Thursday)
Georgia Power Co

Bonds

—

(Bids to be invited)

$12,000,000

32

i

iK'

32

The

(688)

version

Continued from page 31

of

shares.

Price—To

York.

Proceeds —-To

supplied by amendment.

be

Underwriter—Lehman Brothers, New

construct refinery.

Offering—Indefinite.

Co.,

Computer Usage

Inc.

Corp., Albany, N. Y.

First Albany

Consolidated Development Corp.

issuing company's

6%

investment

for

-

-

w

~

convertible debentures,

and

underwriter, respectively, to be pub¬
licly offered. Price—For the shares to be offered to the
debenture holders, 75c per share, which is equal to the
price at which the debentures are convertible into com¬
mon stock; for the shares to be
offered to the under¬
the

writer, $1 per share; for the shares to be offered to the
public, the price will be related to the current price of
the outstanding shares on the American Stock Exchange
at the time of the offering. Proceeds—For general cor¬
porate purposes.
Note —This company was formerly
known as Consolidated Cuban Petroleum Corp., which
was
a
Delaware corporation with Havana offices.
Its
charter was amended last June, changing the corporate
name and sanctioning
its entry into real estate opera¬
tions. The SEC announced a "stop order" on Dec. 10,
challenging the registration statement, and the corpora¬
tion told this newspaper they planned to re-register.
An SEC hearing was scheduled for Jan. 25. Office—
Miami Beach, Fla. Underwriter—H. Kook & Co., Inc.,
York.

Development Corp., Pompano
Beach, Fla.
Nov. 24 filed 140,000 shares of common stock (par $1)
Price—$5 per share. Proceeds—To pay outstanding notes
and for working capital. Underwriter—Consolidated Se¬
curities Corp., of Pompano Beach, Fla., on a best efforts
basis. Note—Nick P. Christos is a director of the issuing
company and President of the underwriting corporation.
Water Co.

24,900 shares of class A

Mo.

shares

Price

—

Underwriter—None.

Davega Stores Corp.
25 filed 88,000 shares of common stock being of¬
fered to stockholders of record Jan. 21, at the rate of
one newr share for each three shares held; rights expire
Nov.

15.

New

share. Proceeds—For expansion
Office — 215 4th Ave.,
Underwriter—None.

Price—$7

other

York

City.

purposes.

•

Dayton Power & Light Co. (2/26)
Jan.
26
filed
$25,000,000 of 30-year first mortgage
bonds.
Proceeds—Will be used to repay $18,000,000 of
temporary bank loans and to defray part of the cost of
the company's 1960 construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart 8c Co. Inc.; Eastman Dillon, Union
Securities & Co. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc. and White,
Weld 8c Co. (jointly); Lehman Brothers, Blyth & Co.,
Inc. and
The
First
Boston
Corp.
(jointly); Morgan
Stanley & Co. and W. E. Hutton 8c Co. (jointly). Bids
—Expected up to 11 a.m. on Feb. 26.
Jan.

21

filed

Dec. 29 filed 147,000 shares of class A

common stock, of
public sale for the
account of the issuing
company and 43,000 shares, rep¬
resenting outstanding stock, by the present holders
thereof.
Price—$3 per share. Proceeds—-$100,000 to be
allocated to translating and publishing additional new
books; $25,000 to acquire and equip additional needed
space for the company's operations; and the balance to
acquire additional machinery and equipment for coldtype composition.
Office — 227-239 West 17th Street,

which

N.

Y.

104,000

are

be offered for

to

Undewriter—William

David

&

Co.,

Inc.,

N.

Y.

Offering—Expected in February.
•

Control Electronics Co., Inc.
(2/15-19)
Dec. 23 filed 165,000 shares of common

bentures.

Price—To

ceeds—For

general

be

supplied

corporate

working capital.

Office

—

10 Stepar

Place, Huntington

Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose 8c Feuer, all
of New York.

Cornbelt Insurance Co.,

Freeport, III.
200,000 shares of common stock to be
subscription by common stockholders of
Sept. 15, 1959, at the rate of four new shares

29

offered
record

filed

for

for each 10 shares then held.
be

offered

To

Unsubscribed shares

may

publicly. Price—$4 per share. Proceeds—
capital and surplus.
Underwriter—None,

increase

but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.

Cornbelt

Life

Co.

Deluxe Aluminum

purposes

Products,

fered to
one

stock, to bo of¬
stockholders of record Sept. 15 on the basis of

share

share.

for

each

Proceeds—To

share
be

common

then

held.

credited

to

Price—$4.50

per

stated

capital and
paid-in surplus. Office—12 North Galena Avenue, Freeport, 111. Underwriter—None.
Crusader Oil & Gas

Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
041,613 shares will be offered
stockholders.

on

a

one-for-one basis to

The remaining 858,387 shares will be of¬

fered

publicly by the underwriter on a "best efforts"
Price—To be supplied by amendment. Proceeds—
For repayment of notes and for
working capital. Under¬

basis.

writer—To be supplied by amendment.

CulEigan, Inc.

(2/23-26)
Jan. 22 filed 152,241 shares of common
stock, of which
71,500 shares are to be offered for the, account of the is¬
suing company; 64,000 shares are to be offered for the
account of the present holders
thereof, and the remain¬
ing 16,741 shares are reserved for issuance
upon con¬




Inc.

Oct. 15 filed $330,000 of convertible
debentures, and 70,000 shares of common stock. Price—For the

debentures,

recent

Proceeds—To go to a selling stockholder. Office
West, Monroe St., Chicago, 111. UnderwriterStraus, Blosser 8c McDowell, Chicago, 111.
change.

ESA Mutual

Fund, Inc.

2,000,000 shares of capital stock. Price—To

June 29 filed

Proceeds—For investment.

supplied by amendment.

be

frivrociiYiArtf

AHviQftr—Yates. Heitner

litc«

Estates

& Woods. St.

T.nnia

1 •*

shares of class A common stock.
Proceeds—For purchase of various
properties, for development and subdivision thereof, and
filed

24

Dec.

200,000

Price—$5iper share.

operating expenses, salaries and other costs, but

to meet

principally for the purchase and development of large
tracts of land.
Office—3636-16th Street, N. W., Wash¬

Underwriter—Consolidated Securities Co.

ington, D. C.

C.

D.

Washington,

of

100%

of principal amount; for the stock,

$5 per share.

Federated
Jan.

10,000 shares of the common stock, to
the present holders thereof; from the rest of the offer¬

ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
ic Directional Fund, Inc.
Feb. 8 filed 100,000 shares of capital stock.
38th

Proceeds—For

investment.

Office

Price—At

—

107

East

St., New York.

Diversified

common

stock

(par $1).

&

Goldman

Builders, Inc., with the balance to
working capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
Offer¬
ing—Postponed.
be

used

as

Don Mott

building and the financing of loans. Office—Orlando,
Fla. Underwriter—Lecn H.
Sullivan, Inc., Philadelphia,
Pa., on a "best efforts" basis. Offering—Expected any
a

Power Co.

(2/18)
Jan. 6 filed $50,000,000 of first and
refunding mortgage
bonds, series due 1990. Proceeds—For construction, the
costs of which are estimated to total
$155,300,000 from
Sept. 1, 1959 to Dec. 31, 1961.
Office—Charlotte, N. C.

capital, and general corporate purposes. Office—Moun¬
tainside, N. J. Underwriter—Milton D. Blauner & Co.,
Inc., New York City. Offering—Expected in late Feb.
Federated

Life

Insurance

Co.

of common stock (par $1).
Price—$10 per share. Proceeds—For capital and sur¬
plus of the company, which has not as yet done any life
insurance business but expects to sell all forms of it.
Office—West Memphis, Ark.
Underwriter—The offer¬
ing is to be made through three promoters and officers
who will receive a selling commission of $2 per share.
Finger Lakes Racing Association, Inc.
28 filed $4,500,000
of 20-year 6% subordinated
sinking fund debentures due 1980 and 450,000 shares of
class A stock (par $5) to be offered in units, each con¬
sisting of $100 of debentures and 10 shares of class A
stock. Price—$155 per unit. Proceeds—For purchase of
Dec.

land and the cost of construction of racing plant as well
as other organizational and miscellaneous expenses.
Of¬
fice—142 Pierrepont Street,

ing

Brooklyn, N. Y. Underwriter
Co., Inc., New York and Philadelphia. Offer¬

Delayed.

—

First Northern-Olive Investment Co.

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other NorthernOlive

companies, numbered "second" through "eighth."
Price—$10,084 to $10,6*98 per unit. Proceeds—To purchase

Ave., Phoe¬
nix, Ariz. Underwriter—O'Malley Securities Co.. Phoe¬

nix.

Statement effective Oct.

* Florida-Patsand
Feb.

4

Corp.; Morgan Stanley 8c Co.; Stone & Webster Securi¬
ties Corp. Bids—Expected up to 11 a.m. on Feb.
18.

Jan.

Duquesne Light Co. (2/24)
21 filed $20,000,000 of
sinking

Jan.

construction.

termined

by competitive bidding.
Probable biddersHalsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co.
(jointly); White, Weld
& Co.; The First Boston Corp. and
Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Bids—Expected
up to 11 am
(EST) on Feb. 24.
Dworman
15

Corp.

(3/i-4)

300,000 shares of common stock. Price—
share.
Proceeds—For general corporate
pur¬
poses.
Office—400 Park Avenue, New York
City. Un¬
derwriter—Charles Plohn 8c Co., New York

City

P.

Corp.

Aug

31 filed 160,000 shares of capital
of which 100,000 shares are to be

stock (par 10c),
publicly offered. Price
—$2.50 per share. Proceeds
To provide funds for the
purchase of vending machines which will be
—

used

distribute

automobile

breakdown

insurance

thruways, parkways and highways *n the

policies

to

on

amount of $25
breakdown insurance for the
purchase price of
cents, and for a public relations and
publicity pro¬
gram.
Office—Hotel Troy Building,
Troy, New York.
Lnderwriter—John R. Boland 8c
Co., Inc., New York
• Electronics Inc.

such

25

Feb*} J(1,etter of notification)

nated

debentures

of common

stock

consisting

common

stock.

$100,000 of 7% subordi¬
April 1, 1970 and 20,000 shares
(par 20 cents) to be offered in units

of

due

$1,000 debenture

Price—$1,300

per

and

unit.

200

shares

of

Proceeds—For

Price—At-the-market

Office—1601 Alfred I. duPont

Forest Hills

filed

29

per

upon

date

of

Bldg., Miami, Fla.

j

Country Club Ltd.

75,000 shares of common stock (par 100).
share. Proceeds—To build a country club

]

in Forest

Hills, L. I., N. Y. Office—179—45 Brinckerhoff j
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome j
Robbins 8c Co., 82 Wall St., New York City. Offering— !
Expected in late February.

★ Franklin Discount Co.
Feb.

1

(letter

of

L*

notification)

*

«

>

8% subordinated capital notes due in
eight years, eight months
and eight days after date of issue with interest to be

$50,000

of

j

compounded monthly. Price—At 100%. Proceeds — To
purchase conditional sales contracts and for making
loans.

filed

per

E. H.

1,987,000 shares of all of its outstanding
stock, for possible sale to the public by the

holders.

present

Price—$4

fund debentures
Underwriter—To be de¬

9.

Corp.

filed

common

sale.

each

Reserve

19 filed 300,000 shares

Jan.

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston

of

Price—$4

land in Arizona. Office—1802 North Central

Duke

$10

class A stock.

share. Proceeds—To eliminate bank indebtedness
of about $100,000, and to acquire and equip two new
branches, one on the east coast and - one on the west
coast.
Trie balance will be used for inventory, working

—Stroud &

Associates, Inc.

Oct. 27 filed 161,750 shares of class
B, non-voting, com¬
mon stock
(par $5). Price—$10 per share. Proceeds—
For general corporate
purposes, including payment on

•

filed 170,000 shares of|

11

•

Communities, Inc.

Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor

Inc.

Purchaser,

per

Proceeds—From

Jan.

Sept. 29 filed 100,000 shares of

Pro¬

including debt
reduction and working capital.
Office—Dayton, Ohio.
Underwriter—Lehman Brothers, New York City.

Proceeds—For

Sept.

by amendment.

day.

stock (par $3),
Price—At par. Proceeds—To repay $80,000 of bank
loans;
$50,000 to replace working capital expended for
equip¬
ment and machinery; $50,000 to increase sales
efforts,
including the organization of sales offices on the West
Coast and in the Chicago
areas; and $50,000 to further
development of delay lines, filters and microwave de¬
vices.
The balance of the proceeds will be added to

of common

—714-18

(2/16)
$7,500,000 of convertible subordinated de¬

Sept. 25 filed 367,200 shares of

Enterprises, Inc.

not to exceed 10,000
stock (par $1). Price—At the most
sale of such stock on the American Stock Ex¬

28

Jan.

Dayton Rubber Co.

Co., Milwaukee, Wis. and Indianapolis Bond & Share
Corp., Indianapolis, Ind.
Bureau

Manufacturing Co.
(letter of notification)

* Ero

per

corporate

market.

stock

Consultants

+ Employers Reinsurance Corp.
100,000 shares of capital stock, to be offered
for subscription by its stockholders at the rate of one
new share
for each share held. Price—To be supplied

Feb. 8 filed

(letter of notification) 75,000 shares of common
At par ($1 per share). Proceeds — For
working capital. Office—4925 Saint Elmo Ave., Bethesda
stock.

(par $10). Price—$12 per share.
Pro¬
ceeds— To pay in part bank loans.
Office — 327 S.
La Salle Street, Chicago, 111. Underwriters—Milwaukee

common

Minneapolisj

Minn.

Jan. 28

Consolidated

(letter of notification)

Cruttenden, Podesta 8c Co.,

payment of an outstanding mortgage note and working
capital. Address — East Highway 50, Vermillion, S. D.
Underwriter — Woodard - Elwood & Co.,

by amendment. Proceeds—To increase capital and sur¬
plus. Underwriter—Stern Brothers & Co., Kansas City

and

Consolidated

—

Thursday, February 11, I960

.

.

it Datronics Engineers, Inc.

Feb.

remaining 150,000 shares, in addition to those shares
above not subscribed for by the debenture

Dec. 30

Underwriter

Chicago, 111.

•

described

New

111.

brook,

100,000 shares are to be offered to the underwriter, with

and

its subsidiary, CWC fi¬

to

Corp. to permit expansion of its Culligan dealer
financing activities, and the balance for general cor- i
porate purposes. Office—1657 S. Shermer Road, North-

the

holders

advances

or

.

14, Md.

|

Aug. 28 filed 448,000 shares of common stock (par 20c),
of which 1198,000 shares are to be offered to holders of
the

—To erect and equip the

common

Proceeds
company's plant in Northbrook;

nance

(2/15-19)
Dec. 29 (letter of notification) 47,000 shares of common
stock (par 25 cents). Price—$5 per share. Proceeds—For
general corporate purposes. Office—100 W. 10th Street,
Wilmington, Del.
Underwriters — Marron, Sloss & Co.,
Inc. (handling the books), and Roosevelt & Gourd, New
York, N. Y.; L. B. Schwinn & Co., Cleveland, Ohio; Don¬
aldson, Luskin & Jenrette, Inc., New York, N. Y. and
•

equivalent number of class B
supplied by amendment.

an

Price—To be

Chronicle

Commercial and Financial

Office—105 N. Sage St., Toccoa, Ga.

—None.

:i

Gence &

Underwriter

/:,/>•

Associates, Inc.

Nov. 13 (letter of notification)

100,000 shares of common
(no par). Price—$3 per share. Proceeds—To pay
an outstanding
obligation and for working capital. Office
—1500 E. Colorado St.,
Glendale, Calif. UnderwriterCalifornia Investors, Los
Angeles, Calif.
stock

General

Aluminum

Fabricators, Inc.

I

(2/15)

Dec. 15 filed 75,000 shares of common stock,

each share
entitling the purchaser to buy one ]
share of common at $4 until Jan.
30, 1961. Price—$4 per
share.
To
reduce indebtedness, with the balance for
working capital. Office—275 East 10th Avenue, Hialeah,

bearing

Fla.

City,

a

warrant

Underwriter—Charles Piohn
on

a

General

"best efforts"

&

Co., of New

York

basis.

Devices, Inc.

Jan. 6 filed 60,888 shares of

common stock, to be offered
subscription by common stockholders on the basis of
one new share for each five shares held.
Price—To be
supplied by amendment. Proceeds—For land* construc¬

for

tion thereon, new

equipment, debt reduction, and work-

Volume

.

Number 5924

191

.

The Commercial and
Financial Chronicle

Office—Ridge Road, Monmouth Junction,
Underwriter-—Drexel & Co., Philadelphia, Pa.
Finance Corp.
filed 150,000 shares of
filed 150,000 shares

n
it 11

TTnf

common stock.
b-

0 /■»€»

1 ri cl

*"ki ♦

n

1

Price—$3

nrUU

rn 1

C

nnn

Proceeds—For working capital, with $15,000
King allocated for lease improvements and equipment
id supplies.
Office — Santurce, Puerto Rico. Under¬
writer—Caribbean securities Co., Inc., Avenida Condado
share.

Pr

Santurce,

criQ

Puerto Rico. The statement has been

with¬

"Insular Finance Corp" below.

drawn; see

General Foam Corp.
7 filed 175,000 shares of common stock.
Price—$4
Sr share Proceeds—To enable issuer to enter synthetic
lam manufacturing business. Office—640 W. 134th
street New York City.
Underwriters—Brand, Grumet
A Sei'gel
Inc., and Arnold Malkan & Co., Inc., on a
"best efforts" basis. Offering—Expected in February,
x Genesco,
Inc.
?eb 9 filed 587,186 shares of common stock. Of the total,
87 1 86 shares of common stock will be offered to the
common and class B common stockholders of Hoving
Corp, and the remaining 500,000 shares will be offered
DUblicly. Price—To be supplied by amendment. Under¬
writer—Blyth & Co., Inc., New York.
Magic, Inc. (2/23).
(letter of notification) $51,000 of six-year .6%%
convertible debentures to be offered in denominations
of $51 each./ Debentures are convertible into common
stock at $1.50 per share. Also, 68,000 shares of common
stock (par 10 cents) to be offered in units of one $51
debenture and 68 shares 'of common stock. Price—Of
debentures, at par; of stock, $102 per unit. Proceeds—
To pay off current accounts payable; purchase of raw •
materials and for •; expansion. - Office — 2730 Ludelle
Street, Fort Worth, Texas. Underwriter—R. A. Holmanv
& Co., Inc., New York, N. Y. •///.-' '.•v. j,-/vv/.Glass

.

Dec. 30

.

Industries, Inc.
/'
$500,000 of 6V2% convertible subordinated
debentures and 25,000 shares of common stock.
Prices
-For the debentures,
100% of principal amount; for
Glass-Tite

Feb. 2 filed

be supplied by amendment.
Proceeds—
corporate purposes, including expansion

general
reconditioning of plant.
Underwriter—Stanley Heller
For

and

lne

filed

11

$3.25

Co.,

New

York

City.

cial

153,000 shares of

common

Proceeds—For

indebtedness

and

use

stock.

Price—

by subsidiaries for

general

corporate

North Dixie
Highway, West Palm
Beach, Fla. Underwriters
Robert L. Ferman & Co.,
Miami, Fla. and Godfrey, Hamilton, Magnus & Co., Inc.,
New York City.
—

Gold

Medal

18 filed 572,500 shares of common
stock (par one
cent), and 50,000 common
stock'Purchase warrants. Of
the shares
400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,300 for the V

underwriter; and the remaining 50,000 shares

are

pur¬

chasable upon exercise of the warrants.
Price—$1.25 per
6hcre. Proceeds—-For
repayment of debt; purchase of
equipment and facilities and other
general corporate
purposes. Office—614 Broad
.SL, Utica, N. Y. Under-

J™r-~Mortimer B. Burnside
Change

—

& Co., New York. Name
Formerly Eastern Packing Corp.

Great Lakes

Bowling Corp.

Kn?

be

supplied

common stock (par $1).
amendment.
Proceeds—For

by

corporate purposes, including the development

boiling; lanes,

properties.
roit, Mich.

Chicago,

111.

bars,
;

and

restaurants

on

various

Office—6336 Woodward Ave., De-

Underwriter—Straus,
,

'

first

to

Note:

holders

of

se¬

unit; and series D, $3,500,000 6-year, 5% per unit). Price
of principal amount.
Proceeds—For working
capital.
Underwriter—Johnston, Lemon & Co., Wash¬

—100%

ington, D. C.

Harundale Mall Associates
7 filed
$1,190,000 of partnership interests in Asso¬

Intra

Price—$10,000

per

unit.

Proceeds—To

one-half interest in Harundale
center in Anne Arundel
West

Saratoga

Street,

None.

Telephone Co.
4,175 shares of common stock of which
3,675 shares are to be offered for subscription at $100
per share by common stockholders at the rate of one

,

plan.

filed

common

Aug.
the

stock, of which

L.

Lee & Co.
Price—$5 per share. Proceeds—For
general corporate purposes. Office—702 Beacon
Street,
Boston, Mass. Underwriters—M. L. Lee & Co.,

,

com¬

$3,000,000 convertible subordinated

deben¬

Blosser & McDowell,

■■■■/

^

^

'

the

in

necessary

of

Industries,

Kavanagh-Smith & Co.
filed 145,000 shares of common stock, of which
115,000 shares are to be offered for the account of the

Under¬

issuing

and 30,000 shares, representing out¬
to be offered for the accounts of the

company

standing stock,

are

present holders thereof.

Conditioning Corp. of America

initially offered to

Prices—For 20,000 shares, to be

personnel, $4.50 per share;
balance, $5 per share. Proceeds—For the retire¬
ment of $166,850 of bank
indebtedness, acquisition and
development of land, construction of houses for sale, and
general corporate purposes.
Office—114 North Greene
Street, Greensboro, N. C.
Underwriter—United Secu¬
rities Co., Greensboro.
company

for the
common

stock.

Price—$3

Proceeds—For

Howe Plastics & Chemical

Companies, Inc.

(2/17)

•

Certificates

Dec. 30

working capital. Office—405
Lexington Ave., New York City. Underwriter—Plym¬
outh Securities Corp., New York
City.

Dec.

Trust

certificate. Proceeds—To supply
to purchase the land at 1809-15 H
per

Sunrise Highway, Lindenhurst, N. Y. . Underwriter —«•
Heft, Kahn & Infante, Inc., Hempstead, L. I., N. Y.

(2/16)
share.

Beneficial

500

Inc.
(letter of notification) $200,000 of 10-year 10%
registered debentures. Price—$100 per debentures. Pro¬
ceeds—For general corporate purposes. Office — 30 E.

Co., and Van Alstyne, Noel & Co., both

Dec. 29 filed 200,000 shares of
per

1'"-

'

Nov. 23

tures, due August, 1975. Price—$100 per $100 debenture.
Proceeds—For expansion purposes and the
discharge of
debts. Office—250 Park
Ave., New York

City.

v;1?

St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington,< D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Ire., both
of Washington, D.
C., and Swesnick & Blum Securities
Corp.

Island

Co., Denver, Colo. Offering—Expected shortly.
Highway Trailer Industries, Inc.
29 filed

corporate purposes and
Office—100 North Cherry St.j

general

—

stock.

Price—At par ($1 per
share).' Proceeds—Tt
existing liabilities; for additional equipment;^ and
for working capital.
Office—East Tenth Street, P. C
Box 68, Great Bend, Ran.
Underwriter—Birkenmayef

Jan.

The

20.

purposes.

pay

&

Feb.

on

other properties; also for other corporate
Office—1950 Broad St., Regina, Sask., Can.
Underwriter
Laird & Rumball, Regina,
Sask., Can.

,

mon

filed

Price—$2,600

cash

quisition

.

Hickerson
March 11

held

,

Inc.;
D. Blauner &
Co., Inc.; and Kesselman & Co.,
Inc., all of New York City, on an "all or nothing" basis.
Offering—Expected in March.
>
/
:
,

For

—

shares

for the employee stock option

Irando Oil & Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of
explo¬
ration and development of properties and for the ao

Milton

Bros. Truck Co., Inc.
(letter of notification) 285,000 shares of

are

bank loans.

of

14

Trust.

125,000 are 4o be publicly offered and
11,000 have been :
already acquired at $1 per share by the President of
M.

four

Investment Trust for the Federal Bar Bldg.

Corp.

136,000 shares of

each

Galesburg, 111. "Underwriter—None.

machinery and equipment. Office—City Hall, WilUnderwriter—None.
8

for

Proceeds

payment

liamsport, Md.
Hermetite

share

filed

balance of the shares

★ Hejskel Engineering &
Manufacturing Co.
28 (letter of
notification) 20,621 shares of common
stock.
Price—At par ($10 per
share).
Proceeds—For
operating capital, production of government contracts

rJan.

29

new

Mall, a regional shopping
County, Maryland. Office—14
Baltimore, Md.
Underwriter—

Jan.

and

Offering—Indefinitely postponed.

State

Jan.

acquire

+ La Crosse Cooler Co.

14

(letter of notification) 100.000 shares of com¬
mon stock (par.one cent).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—125 E. 50th

Feb. 9 filed 100,000

Street, New York, N. Y. Underwriter—Hilton
ties, Inc., 580 Fifth Avenue, New York, N. Y.

Crosse,

I

outstanding shares of common stock.
Proceeds—To selling stockholder. Price—To be
supplied
by

Securi¬

amendment.

Wis.

Office—2809

Losey

Underwriter—Shearson,

Blvd.,

South

Hammill

&

La

Co.,

New York.

C Inc.

Lafayette Radio Electronics Corp.
4 filed 225,000 shares of common stock

600,000 shares of common stock (par $1)
Price—$2.50 per share. Proceeds—To further the corpo¬

Dec.

rate purposes and

necessary -to

including inventory, leasehold improvements,
and working capital.
Office —165-08 Liberty Avenue,
Jamaica, L. I., N. Y. Underwriter—D. A. Lomasney &
Co., New York City. Offering—Expected in late Febru¬

704

ary.

June 29 filed

Price—$5

in the preparation of the concentrate
enfranchising of bottlers, the local and national pro¬
and advertising
of its beverages, and where

and

vis

make loans to such bottlers, etc. Office—
Equitable Bldg., Denver, Colo. Underwriters— Pur¬
and Amos C. Sudler & Co., both of Denver

& Co.

Colo.

•

;V

Corp.
(letter of notification)
stock

general

&

;

$10).

Price—$10

corporate

purposes^

Pike, Mineola, L. I., N. Y.
&

Dec.
mon

of

share.
Office—22

per

'/

Proceeds—For
Jericho

'

,

Electrometer Co.

(no par).

the cost of

projects

new

Turn-*

Underwriter—George, O'Neill

(letter of notification)

28

stock

cover

60,000 shares of class A

;.V"

Co., New York City.
Landsverk

Price—$2

new

and

150,000 shares
per

share.

of

com¬

Proceeds—To

quarters and for the development
working capital.
Office—641

for

-

Sonora

Avenue, Glendale, Calif. Underwriter—Holtori,
Henderson & Co., Los Angeles, Calif.
- " *Z

Highlands, Mass. Underwriter—Schirmer, AtherCo., Boston, Mass.
v
:
-

Works, Inc.
$300,000 of 5-year notes wth common stock
purchase warrants attached, said
warrants
granting
holder the right to buy 40 shares of the common for

working

(par $1).

capital.

Newton
ton

r-

Price—$4 per share. Proceeds
Office — 55 Needham Street,

common

—For

($1 par).
corporate

general

Industries, Inc. (2/16)
filed 200,000 shares of $.70 convertible preferred

stock4 (par

,

14

Proceeds—For

Lancer

Nov. 27

Imperial Investment Corp. Ltd.
Jan. 29 filed $15,000,000 (U. S.) 20-year collateral trust
bonds, due 1980. Proceeds—To retire short-term bor¬
rowings. Office—Vancouver, B. C., Canada. Underwriters
—Eastman Dillon, Union- Securities & Co., and Nesbitt,
Thomson & Co., Inc., both of New York City. Offering
—Expected not later than March 2. u
Jan.

share.

per

purposes

Industron

p£- 31 filed 120,000 shares of

rrice—-To

offered

motion

Packing Corp.

June

be

Jan.

pur¬

Office—1309

poses.

to

Bank, Washington, D. C.
29, 1958, filed $5,000,000 of notes (series B, $500,000,
2-year, 3% per unit; series C, $1,000,000 4-year 4% per

Underwriter—None.

6%

Inc.

of

are

International

Dec.

—

of New York City.

.

share.

per

reduction

Office

purposes.

Guardian Loan
Co., Inc. and Tilden Commer¬
Alliance, Inc., subsidiaries of the issuing companv.

writers—Allen &

Co.,
Co., Hous¬

filed

and principal amounts,

par

corporate

in

Hi-Press Air

$600,000 of

Gocfdard,

general

&

Justin Lane, Austin, Texas.
Underwriters—Hardy &
New York City, and Underwood, Neuhaus &

Jan. 29

Prices — At

Boulevard, Long Island City, N. Y.

Office—Providence, R. I.

sinking fund debentures,
due Jan. 15, 1966, and 60,000 shares of common
stock, to
be offered in units consisting of $100 of debentures and
10 shares of common stock.
Price—$100 per unit. Pro¬
ceeds—For additional plant facilities,
including land and
production equipment, and debt reduction. Office—920

ton, Texas.

For

securities

curitiesi

Glastron Boat Co.
Jan.

r

—

Queens

ciates.

Tan

[the stock, to

PrLn

rroceeds
43-14

General
ieneral
'

oi

33

PflDjtal.

„

•

(689)

if Inland Marine Corp.
29 (letter of notification)

Jan.

$250,000

of

6V2%

Larson

con¬

•Great Southwest
vertible debentures to be offered in multiples of $500.
Corp.
Debentures are convertible into common stock at $6.25
tnr
filed $11,500,000 of cumulative income debencr; .s' due Jan. 1, 1975, and 575,000 shares of common
per share.
Price—At face value. Proceeds—To reduce
ock
(par $1), to be offered in units of
Minne¬
$20 principal ''bank loans and for working capital. Office
ount of
debenture and one share of common. Price
apolis, Minn. Underwriter—None.
k
j/H per unit. Proceeds—For debt reduction and the
if Insular Finance Corp. (formerly General Finance
stro ln?N
a recreation park.
Office—3417 Gillespie
Corp.)
Pn
at
DaHas 19. Texas. Underwriter—Glore. Forgan &
Feb. 1 (letter of notification) 150,000 shares of common

Boat

Jan. 8 filed

each

$1,000 principal amount of notes held
share.

common

Price—The

notes

are

to

be

at

$10

per

offered

at

j

face

—

Wew York

*'

City.

OrfGrit«", River

Offering—Expected in March.

Production Corp.

^letter of

notification) 200,000 shares of common
Fnr
^ cents). Price—$1.50 per share. Proceeds—
SiviKeXfenses for exploring for oil and gas. Office—212
ppn
e7 South« Nashville, Tenn. Underwriter—CresSecurities Co., Inc., Bowling Green,
Ky.

stnrV

/

0

c

Fund of America,

Feh

1>

cenki

Offini'

shares of common stock (par 10
r*ce—At, market. Proceeds—For investment

-1825

WacK;
mpn+

Inc.

eAn*

Connecticut

Avenue,

Washington,

D.

C

Advisor — Investment Advisory Service
D- C. Underwriter—Investment Managp

beoaL ss?rciates>
^came

Inc-» Washington, D. C. The statement

effective July 24.

Sep
i

Mra.nty ,ns"rance

Agency, Inc.

Mortgage Guaranty Insurance Corp., below.

Decndl?1n Ti,den
stool V
canit i
lllui

flled

Corp.

,

<

190,000 shares of cumulative preferred
$1°)' $1,060,000 of 15-year 8% subordinated

notes, and $1,250,000 of 12-year 7% subordinated




stock (no par). Price — $2 per share. Proceeds — For
working capital.
Office—Ave.buda Condado 609, San¬
turce
Puerto Rico.
Underwriter—Caribbean Securities

Co., Inc., Santurce, Puerto Rico.

if Insurance Investors Fund, Inc.
(by amendment) an additional 50,000 shares
of common capital stock. Price—At market. Proceeds—
For investment. Office—San Francisco, Calif.
Feb. 8 filed

Integrand Corp.
Oct

13

filed

85.000

shares of

common

stock

(par

5c).

per share. Proceeds — For general corporate
including the redemption of outstanding pre¬
ferred stock and new plant equipment. Office—Westbury LIN. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass. Offering—Expected in February.

Price—$4
purposes,

International Aspirin Corporation

stock. Price—$3
Proceeds—For general corporate purposes.
Office—1700 Broadway, Denver, Colo.
Underwriter—
Speculative Securities Corp., 915 Washington Street,
Wilmington, Del., on a "best efforts" basis.
Dec
per

7 filed 600,000 shares of common

share.

,

value

in

denominations

of

$500. Proceeds
Paul G. Larson,

working capital. Address—c/o
view Drive, Little Falls,' Minn.
Reid &

Fort
River-

—

Underwriter—Fulton,

Co., Inc., Cleveland, Ohio.

Lefcourt

Realty Corp.
$2,000,000 of six year 6% subordinated de¬
bentures, due Jan. 15, 1966, with warrants to purchase

Jan. 29 filed

300,000 shares of common stock at $5 per share. Price
—At-the-market, on or after July 30, 1960. Proceeds—
For payment of a $750,000 bank loan and
general cor¬
porate purposes. Office—375 Park Ave., New York City.
Underwriter—None.

Lewis
Jan.

15

Business

filed

Forms, Inc.

110,000 shares of

(2/17)
stock, of which

common

100,000 shares are to be offered for the account of the
issuing company and 10,000 shares, representing out¬
stock, are to be offered for the account of

standing
M. G.

Lewis, President. Price—To be supplied by amend¬

ment.

Proceeds

shares

of

—
To reduce bank loans, redeem 190
outstanding preferred, and continue the
company's modernization and expansion program. Office
—2432 Swan
Street, Jacksonville, Fla. Underwriter—
C. E. Unterberg, Towbin Co., New York City.

the

Lewis
Jan.

15

common

Swimming Pool Construction Co., Inc.
(letter of notification) 60,000 shares of class A
stock
(par 50 cents).
Price — $5 per share.
Continued

on

page

34

34

(690)

Continued from page 33

remaining 14,500 shares will be offered for the
of certain selling stockholders.
Price
$3 per
share. Proceeds—For general corporate purposes. Omce
—89 West 3rd St., New York City. Underwriter—Pleas¬
ant Securities Co. of Newark, N. J.

acquire property and for working capital.
Office—115 Mary Street, Falls Church, Va. Underwriter
—Securities Registration & Transfer Corp., Washing¬
ton, D. C.
1
y

.

it Light House, Inc.
Jan. 22 (letter of notification) 204,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—
For Saber Boat Factory and inventory of materials and
working capital. Office—Accokeek, Md. Underwriter—

Corp.

Jan. 25 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$1.25 per share.
Proceeds
—For working capital.
Office—New

Tyler Highway,
Henderson, Texas." Underwriter—Wm. B.' Robinson &
Co., Corsicana, Texas,

''■■y 'y ''/Sy

'-S

Loveless

Properties, Inc.
(letter of notification) 75,000 shares of common
stock (par $1). Price—$4
per share.
Proceeds—To pay
bills, for acquisition of Lacey Shopping Center, and for
working capital. Office—603 Central
Bldg., Seattle 4,
Wash. Underwriter
Andersen, Randolph & Co., Inc.,
Salt Lake City, Utah.
Jan. 20

Southern

Macco Corp.
Jan. 28 filed 200,000 shares of
common stock.
be supplied by amendment.

17, N. Y., up to 11
Mobilife
Jan.

18

in

real

Price—To

estate

Marine Fiber-Glass &
Plastics, Inc.
Nov. 30 (letter of
notification) 200,000 shares of common
stock (par 10
cents). Price—$1.50 per share. Proceeds
—For new plant
expenditures, research and develop¬
ment

and

for

working capital.

Office

2901 Blakely
Street, Seattle 2, Wash. Underwriter
Best Securities,
Inc., New York, N. Y., is no longer
underwriting the
—

—

issue.

February. Price—$10 per share.
Proceeds—For general corporate
purposes, including ex¬
pansion and working capital. Office—4383
Bandini Blvd.,
Los Angeles, Calif.
Underwriter—None.

Megadyne Electronics, Inc.
(letter of notification) 300,000 shares of
common
stock (par 10 cents).
Price—$1 per share. Proceeds—For
,

Jan. 7

general corporate purposes.

Wilmington, Del.
New

York, N. Y.
3

(Fred),

filed

(without

400,000

Inc.
shares

of

class

A

common

stock

value) including 300,000 shares for the
account of the
issuer, and 85,000 shares for a
companyconnected estate.
The
remaining 15,000 shares are for
officers and employees.
Price—To be supplied

ment.

par

Proceeds—For the general

structing and equipping

by amend¬

fund, including

con¬

new shopping centers and work¬
Office—721 S. W. 4th
Ave., Portland, Ore.
Underwriter—Kidder, Peabody & Co.
Offering—Ex¬
pected about the second week
in March.

ing capital.

Micronaire
Oct.

16

Electro

Medical

Products Corp.

filed

200,000 shares of common stock
(par 10
cents) and 50,000 one-year warrants for
the purchase of
such stock at
$3 per share, to be offered in units
of 100
shares of common stock and 25
warrants. Price—$275
per
unit. Proceeds—For
general corporate
ing

purposes, includ¬

the

discharge of' indebtedness, the
expansion of
efforts, and for working capital. Office—79
Madison
Avenue, New York City. Underwriter—General
Invest¬
ing Corp., New York.
Offering—Expected in a

sales

few

weeks.

Nov.

16

filed

400,000 shares of class A common
stock
Price—$5 per share.
Proceeds—For general
corporate purposes,
including the reduction of indebted¬
(par $1).

ness,

acquisition of properties, and
additional working
capital. Office—500 Mid-America
Bank Building, Okla¬
homa City, Okla.
★

Underwriter—None.
Minalaska, Inc.

Dec.

21

mon

(letter of

notification) 200,000 shares of com¬
(par 10 cents). Price—$1.50
per share. Pro¬
ceeds—For mining expenses. Off
ice
Ophir, Alaska.
Underwriter—B. D. McCormack
Securities Corp.. New
York, N. Y. Offering—Suspended
by the SEC on Feb. 3.
★ Mineral Concentrates &
Chemical Co.
ooCb«,t fiIed 473>107 shares of common stock of which
285,015 shares were
previously sold and delivered for
the proceeds of
$467,675, and of which 24,685 shares have
been subscribed for
and
delivered, but not paid for.
The
remaining 163,407 are owned or
under option by
officers and employees.
Filing of the shares is to avoid
—

possible violation

in connection
with their resale.
Pro¬
Almost all have been
received and expended
for
general corporate
purposes. Office—1430 First
National
Bank Building,
Denver, Colo.
Missile Components
Corp.
Jan. 18 (letter of
notification) 60,000 shares of common
stock (par 10
cents). Price—$3 per share.
ceeds

n^LFwTlL corP°ra'e
Drive, Westbury N. Y.
side &

Proceeds—

purposes.

Office—2300

Underwriter—Mortimer

Co., Inc., New York, N. Y.

★ Missile

Electronics,

Inc.

snnnnn1*!^ 214,^?1° Lshares
00,000 shares will be



sold

of

'

Jr

J

common stock,

for

the

.

.

of which

company's

account

For

general corporate purposes, including reduction
of
indebtedness, development of a division, and
mortgage
payments. Office—140 Hamilton- St.,' New Haven,
Conn;
Underwriter—None.

;

★ Norby Supply Co;
Jan. 27 (letter of notification)

stock

(par 50
Proceeds—For debt reduc¬
common

$250,000 of 7% bearer
denominations of $100. Ma¬
turity dated from Dec. 31, 1964 to Dec. 31, 1979, Price—

debentures to be offered

Under¬

At face value.

»r,

Insurance

Co.

of dividends.

and

the

Price—$2

for cash

company
per

share.

in

Proceeds—To be used to call in the
pre¬

ferred; payment of current accounts payable;
inventory
and for working capital.
Office—Seattle, Wash. Under¬
writer—None.

or

Nord

Proceeds—

T;/

.

1 -?

7;

■■

7

Photocopy & Business Equipment Co.

'

(2/15-19)

For working capital.

Office—811 N. Third Street, Phoe¬
nix, Ariz. Underwriter—Associated General Agents of
North America, Inc. ■r

Jan.

filed

27

3,500

shares

36,400

shares of

to

are

be

common

offered

for

stock, of which

the

account

of

the

..

issuing company and, 32,900 shares, ' representing out¬
standing stock, are to be offered for the account of the

Montgomery Mortgage Investment Corp.

Oct. 16 filed $3,000,000 of second
mortgage notes and
accompanying repurchase agreements, to be offered in
$3,000 units. Price—From $2,000 to $4,000 per unit. Pro¬

thereof. * Price—To be related to
the
Proceeds—To buy outstanding
capital shares of
Television Utilities Corp., with the balance
for general

corporate purposes.
Office—New York City..
Under¬
writer—Myron A. Lomasney & C04, New York
City.
Note
Last Sept. 25 the same
underwriter offered to
quick oversubscription 100,000 shares of Nord
common

repur¬

chase agreements.

Office—11236 Georgia Avenue, Silver
Spring, Md. Underwriter—There is no underwriter as
such, but Adrienne Investment Corp., an affiliate of the
issuing company, will act as sales agent, for which it
will receive

Morse

a

—

at

Products

be

common

Price—$7
Proceeds—Together with other funds, will be
opening of three additional retail stores,
and for additional working
capital.
Office —122 West
26th Street, New York.
Underwriters—Standard Secu¬
rities Corp. and Irving Weis &
Co., both of New York,
on
an
all-or-nothing basis.
per

for

the

Mortgage will
its

use

common.

&

New York

toon,

share.

—

For

stock.

share.
to

—

Saskatchewan, Canada.
Manufacturing Corp.
:

Nov. 9

Islip,

N. Y.

corporate

purposes.

Underwriter—Heft,

Hempstead, N. Y.

Office—Beech
Kahn

Office—Expected

in

.

Street

&

Infante, Inc.',
February.

Murphy Finance Co.
Dec. 21 filed 100,000 shares of
common stock
(par $10).
Price—To be supplied by
amendment. Proceeds—For
working capital and debt reduction.
Office—174 E. 6th
wood, Minneapolis, Minn.

stock

for

each

$500

of

debentures converted. Price—At
face amount. Proceeds
—For the general funds of the
company. Office—c/o
Raymond F. Wentworth, 6 Milk
St., Dover, N. H. Un¬
derwriter—Eastern Investment
Corp., Manchester, N. H.
Narda Microwave
Corp.
June 16 filed 50,000
shares of common stock
(par 10
cents) and 50,000 warrants to be offered in
units, con¬
sisting of one share of common stock with
attached
warrant entitling the
holder to purchase one
additional
share.
The statement also
includes an additional 10,000
shares of common stock reserved
for issuance to
key

employees pursuant to options. Price—To
be supplied
by amendment. Proceeds
To be used to retire bank

loans. Underwriter—Milton D.
Blauner & Co.,
Inc., New
York.
Indefinitely

postponed.

National Lawnservice
Corp.
Jan, 11 (letter of
mon

stock

ceeds—For

(par

notification) 100,000 shares of
cent). Price—$3 per share.

one

general

of

certain

corporate

.

purposes.--

com¬

Pro¬

Office —410

received

stock, of which

342

South

St.,

services

Gas

(

Minerals,

at

$.10

are

share in
Offering—

per

rendered.

'

Inc.

April/2 filed 260,000 shares of: common stock (par 35
cents.? Price—$2 per share.
Proceeds—To retire bank
loqhs and for investment purposes.. Office—513 Interna¬
La.

Underwriter

|

—

Assets Investment Co.,
Inc., New Orleans, La. The SEC
"stop-order" hearing has been
postponed from Jan. 23
to Feb. 25.

★ One-Hour Valet, Inc.
3 filed
$2,000,000 of 6% convertible subordinated
debentures, due March 1, 1975, and 100,000 shares of
common stock (par
$1). Prices—Debentures at 100% of
principal amount, and price of the common stock to be
supplied by amendment. Proceeds^-For the
repayment
Feb.

of
indebtedness, renovation and expansion, and working
capital. Office — 1844 West Flagler St., Miami, Fla.

c|y.

$300,000 of 6%% convert¬
ible subordinated
debentures, series A, due Oct. 1, 1969.
Debentures are convertible at
any time through Oct.
1,
1968 into class A
non-voting common stock (par
$5) at
the rate of 100 shares of

be

37,500 shares thus far unaccounted for

to John L. Appelbaum

Underwriter—Van Alstyne, Noel

Mutual Credit Corp.
(letter of notification)

Oct. 6

such

to

common

tional^ Trade Mart, New Orleans,

(letter of notification) 50,000 shares
of common
(par 10 cents). Price—$6 per share.
Proceeds—

general

The

% sold
Oil,

Price—60

exploration, develop¬

Office—5 Cobbold
Block, Saska*
Canada.
Underwriter
Cumber¬

7:7;

(3/15)

|

Expected in February.

Proceeds

Saskatchewan,

Bids—Expected

Corp.

consideration

acquisitions.

or

noi

comprising the public offering, and the privilege of pur¬
chasing 37,500 shares of the common stock at $.10
per

Street,

land Securities Ltd.,
Regina,
• Munston
Electronic
stock

(jointly).

—

M. & S. Oils Ltd.
cents per
ment and

\*

Underwriter—Mortimer B. Burnside & Co., Inc., on an "all or
nothing best efforts" basis.
The underwriter will receive
$15,000 for expenses, a
$.75 per share selling commission on the
200,000 shares

I. du Pont &
Co.,

common

shares

any

Rochester, Michigan.

thereof. Price—To be
supplied by
Proceeds—For general
corporate purposes,
debt reduction. Office—15 East 53rd

May 11 filed 390,000 shares of

working

are to be publicly offered.
Price—$3.75 per share.
Proceeds—To reduce indebtedness and
increase inven¬
tories of gears and mufflers.
Office

(2/23)

Underwriter—Francis

offered

200,000

holders

City.

as

C.. Underwriter—One

.

Nov. 30 filed 275,000 shares of

606 West Wisconsin Ave., Mil¬

New York City.

Inc.

March 15.
Nu-Era

amendment.

including

be used

any, to

Office—Matthews, N.

Smith

on

Proceeds-

($1 par) of
^yhich 100,000 share are to be offered for account of is¬
suing company and 50,000 shares,
representing out¬
standing stock, are to be offered for the account of
present

I

outstanding

$15,000,000 in bonds of first mortgage bonds.
Underwriter—To be determined
by competitive bidding.
Probable bidders: Dean Witter
& Co. (to handle the
books); Blyth & Co. and Merrill Lynch,
Pierce, Fenner

Jan. 18 filed 150,000 shares of class A
stock

the

balance, if

★ Northern Indiana Public Service Co.

its proceeds fo rexpansion;
Guaranty
proceeds for additional working capital.

Videotronics, Inc.

of

Feb. 9 filed

use

Office—(of both firms)
waukee, Wis.
MPO

Guaranty

capital stock, to

holders

shares for each five shares
!
Proceeds—To reduce indebt¬

security dealers will be
subscribed for at $2 per share.

Mortgage

share of

by

new

share.

per

common

more

Sept. 23 filed 40,000 shares of common stock
(par $10) in
joint registration with Guaranty Insurance
Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of
one

subscription

Price—$2

capital.

a

and

for

edness with the

Mortgage Guaranty Insurance Corp.

common

offered

held.

share.

used

]

stock in the ratio of two

stock.

|

Telephone Co;

Sept. 4 filed 576,405 shares of

Corp.

120,000 shares of

$5 per share.
North Carolina

selling commission of 7%.

Electro

holders

present

market.

ceeds—To purchase other second trust notes and to
main¬
tain a reserve for repurchase of notes under its

—

Shames
B. Burn-

for

of

St., St. Paul, Minn.
Underwriter—Piper, Jaffray & Hon-

stock

common
shares for each

new

719,667 shares to be offered to holders of warrants
(5) 92,500 shares
use in the company's stock option plan.
Proceeds—

(4)

(letter of notification) 47,687 shares of common
(par $1) to be offered to policyholders of Modern

Pioneers'

three

of

and convertible short term notes; and

4

stock

For

Mid-America Minerals, Inc.

shares of

250,000

Modern Pioneers' Life Insurance Co.
Dec.

rate

date; (2) 250,000 shares
of
common stoek for public sale.
Price—To be supplied
by
amendment; (3) 700,000 of outstanding shares
which
may be offered for sale by the present holders
thereof-

writer—Plymouth Bond & Share Corp., Miami, Fla.

will

★ Meyer
Feb.

Office—100 W. 10th Street,
Underwriter—Glenn Arthur Co., Inc.,

a.m.

Price—$4 per share.
tion and working capital. Office—Sarasota, Fla.

Dec. 28 filed

Oct. 1 filed 301,177 shares of
common stock
(par $1), be¬
ing offered to holders of such stock on the
basis of one
new share for each
five shares held Nov. 13.
Rights are
scheduled to expire in

offices

the

at

five shares held on the record

250 Park Avenue, New York
(EST).

cents).

-vVij;

■

Mayfair Markets

17 at the

March

for

Corp.

filed

transfer

Proceeds—To repay indebt¬
operations, to acquire
and develop
land, and for general corporate ptirposes.
Office—14409 So. Paramount
Blvd., Paramount, Calif.
Underwriters—Kidder, Peabody & Co., New York City,
and Mitchum, Jones &
Templeton, Los Angeles. Offering
—Expected in early March.
incurred

Services, Inc.,

on

,

(1) 1,462,320 shares of common stock to
be
subscription at $2 per share by

stockholders

Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Mer¬
Lynch, Pierce, Fenner & Smith Inc.; Eastman Dillon
Union Securities & Co. and Equitable Securities Corp.
(jointly). Information Meeting—March 14, 1960. Bids-

—

•

offered

★ Mississippi Power Co. (3/17)
Feb. 8 filed $4,000,000 of first mortgage 30-year bonds.

Expected to be received

.

(

Jan. 29 filed:

rill
v

Underwriter
,

(

Clock & Watch,Co.

Haven

New

Underwriter—To be determined by competitive

None.

edness

Livingston Avenue, North Babylon, N.Y.
Fund Planning Inc., New York, N. Y,

and the

account

Proceeds—To

Love

Chronicle.. Thursday, February 11, 1960

The Commercial and Financial

V\\,

-

&

Co.

of

New

York

•;'

•IOnyx Chemical Corp. (2/18-19)
j|n. 15 filed 140,000 shares of common

stock

j

(no par). ]

rice—To be supplied by
amendment. Proceeds—To aclire Onyx Oil & Chemical Co. Office —190 Warren

|t£eet, Jersey

City,

N.

J.

Underwriter*—McDonnell

&

Inc., New York City,
Ovitron

tab

27

c|nt).

Corp., Detroit, Mich.

filed

150,000 shares of common stock (par one
per share. Proceeds—For research and
Underwriter—Sutro Bros. & Co., New

Price—$6

qrking capital.
>rk.

Offering—Expected

in late February.

pOwens Metal Co.
Jap. 15 (letter of notification) 33,250 shares of common j
stock (par $2).
Price—$9 per share. Proceeds—To re¬
duce

short

term

bank loans and accounts
payable and
foi working capital. Office—1524
Crystal Avenue, Kan¬
sas
City, Mo. Underwriter—Stern Bros. & Co., Kansas

cm, mo.

jxy-Catalyst, Inc.
DeC.23 filed 28,637 shares of common
stock. The com¬
pany proposes to offer 11,372 shares for
subscription by
its common stockholders
of record Jan. 15, 1960, upon

the basis of one new share for
each 50 shares then held.
The remaining 17,265 shares are to be offered to certain

Volume 191 •

Number 5924

The Commercial and
Financial Chronicle

...

(691)

of the company

and employees
p

L
m

the

exer-

-Rnidentl.1 Commercial
Corp.
,(
0f notification) 150,000 shares of common
(par °ne cent).
Price—$2 per share. Proceedsf or
general corporate
purposes.
Office—City of Dover,
rnpUn«n ?xr
Del* Underwriter—All State Securities,
Inc., 80 Wall Street. New
York, N. Y.
otnrit

stock

additional working capital. Office—511 Old

-For

pjg

!

upon

options to purchase said shares, the option price
$9.35 as to 6,575 shares and $11 as to 10,690. Price
rights offering, to be supplied by amendment. Pro-

of

faster Road, Berwyn, Pa. Underwriter—None;
Gold, Inc.

Pacific

*

•

notification) 75,000 shares of common
wk
Price —At par ($1 per share). Proceeds —Foi
I mining expenses. Office—404 Mining Exchange Build\Z Colorado Springs, Colo. Underwriter-rBirkenmayer
I \ Co., Denver, Colo. \ ■
; i
>
(letter of

9

p

nnn nnnflleci
$14'000>000> subsequently reduced to
of
first
mortgage bonds, series H, due
bruary 1, 1990. Proceeds
For construction.
Office
Public Service
Bldg„ 600 S. Main, Tulsa 2, Okla. Underbe determined
by competitive bidding/Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros.
—

II pacific Panel Co.
/
; •'
8 filed 100,000 shares-of class A common stock.
I priCe—$4.50 per share. Proceeds—For reduction of in,

Ifeb'

feu1mWhite,
ki

rities
¬

V -• - /; //:
I Pacific Telephone & Telegraph Co.
(2/16)
Jan: 22 filed $72,000,000 of 33-year debentures, due Feb.
1 1993, and
10,045,630 shares of common stock, said
debentures to be offered at competitive bidding and
said common shares to be offered at par ($14 2/7 per
share), without underwriting. The common stock will
be offered to holders of the outstanding common and
preferred on the basis of one such share for each 10
;■

•

/

" •

.■

preferred shares held.

each 10

Inc.

Inc.,

:

general fund.

mated

balance

to

1

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1).
first to

stock¬

of record

Aug. 31, 1959, and 45,000 shares (mini¬
mum) are to be offered to the public, which will also be
offered any shares unsubscribed for
by said stockholders
Price—$5 per share. Proceeds
For general corporate
purposes, possibly including the enabling of the issuing
company to make application for licenses to conduct its
—

esti¬

Address—P. O.

Underwriter—None.

(2/15)

Proceeds—To

buy land

Office—Seattle, Wash.

Price—$6.50

and reduce

indebt¬

Underwriter—Hill, Dar¬

Realty Equities Corp.

Feb.

2

filed

Bros. &

Offering—Expected

of the issuer and the balance for the account of
present

Price—To be supplied by amendment.
Pro¬
ceeds—To be used for financing additional business; for

qualifying to transact business in other states, and the
general fund. Office—180 West Adams St., Chicago, 111.
Underwriter—Walter C. Gorey Co., San Francisco, Calif.
/ Reserve Insurance Co., Chicago, III.
20 filed 110,837 shares of capital stock, of which
62,676 are to be sold for the company's account and 48,Oct,

shares

are

to

be

selling stockholders.

sold

for

the

account

of

certain

Price—To be supplied by amend¬

Proceeds—To

be added to the general funds of
enable it to finance a larger volume of
underwriting and to expand its area of operations. Un¬

the company to

derwriter—A.

G.

Becker

&

Co.

Inc., Chicago, 111;
This
offering will not be made in New York State. Offering
—Postponed indefinitely.
•

(2/17)
Jan. 6 filed 164,689 shares of common stock, of which
157,346 shares are to be offered for the account of nine
selling stockholders and 7,343 shares for the account of
Row,

effective Nov.4.

—

Whitehead

Ave., South
River, N. J. Underwriter—Arnold Malkan
Co., Inc., New
York, N. Y.
■;/,.
*

,

J^i.s'°»

Transformer Corp., Chicago
Yfu' 29 flled $700,000 of 6V2% subordinated convertible
ftures, due 1970, with attached warrants to purfho
7000 common shares; and warrants for the purase of
125,000 common shares, which may be issued
people; and
150,000 common
2Ies;LPriccs-For the debentures, par; for the comthe Price will be
supplied by amendment. ProPriI1;S
For debt reduction, plant construction, and
NP„PJ?ent' Underwriter—John R. Boland & Co., Inc.,
anH
r-k City> wh°
work on a "best efforts" basis

Price—To be supplied by amendment.

(Giv¬

Secode

Corp.
(3/14)
Dec. 28 filed $1,500,000 of 6% convertible subordinated
debentures due July 1, 1965. The company proposes to

soldreceive

lhe account

a commission of $120 per $1,000 debentures

&

Co.,

Proceeds—To

retire

70%

of

the

common;

outstanding at the date of the stock offering; to
in the capital
stocks of six of the company's
bank subsidiaries; to repay a bank loan of
$6,400,add to working capital; to retire certain long-

seven

000;

to

^erm

indebtedness: and

-250

South

East

to

First

develop citrus

Street.

Miami.

Office

groves.

Fla.

Underwriter

—Bear, Stearns & Co., New York. Offering—Indefinite.
•

South

Dec.

Bay Industries, Inc.
210,000 shares of class A stock.

filed

11

share.

Price—$5-

Proceeds—To

pay off bank loans, purchase
and add to working capital.
Office — 42
Broadway, New York Citv. Underwriter—Amos Treat &

per

machinery,

Co., Inc., of New York City,
Offering—Expected in March.
Southeastern
14 filed

fered

to

basis

for

Public

on

Service

104,961 shares of

common
one

share for

efforts"

basis.

Co.

stock, being of¬

common

stockholders

new

"best

a

of record

each

10

Feb.

shares

10

on

the

then

held;
share. Proceeds

rights expire March 1. Price—$11.25 per
—For general corporate purposes,
including investments
in the issuer's subsidiaries.
Office—70 Pine
York

City.

Underwriter—Bioren

Southern Growth
12

filed 963,000

share.

per

&

Co.,

St., New
Philadelphia,

Industries, Inc.
shares of

,lt,

stock

common

Proceeds—For

(par $1).

investment.

Office

Greenville, S. C. Underwriter — Capital Securities
Corp., 121 So. Main Street, Greenville, So. Car., on a
"best efforts" basis, with a commission of 50 cents
per
share.
Southland

$300,000 of the debentures in exchange for its
convertible notes due July 30, 1962; $587,000 in ex¬

and

Gas

with

Minnesota

Street, San Francisco, Calif. Underwriterunderwriting is involved; but the debentures offered
for the cash sale will be sold on a best t efforts basis

No

through dealers who will receive a 5% commission.

Security Mortgages, Inc.

$250,000 of 11-year sinking fund deben¬
tures and 62,500 shares of class A common stock (par 15
cents), to be offered in units of 1 debenture and 25 com¬
mon
shares. Price—$100 per unit. Proceeds—To invest
filed

equities and/or mortgages. Office

—

Denver 2, Colo.

Underwriter—None.
Shield Chemical Ltd.

Exploration

Program.

Price—$5,000

per

unit,

minimum participation of $10,000.

a

Proceeds.—For
Office — 2802 Lexington, Houston, Texas.
Underwriter—The participations will be offered by of¬
ficers of the company and by certain investment firms.

exploration.

Southwest
Jan.

Forest

filed not

29

of subordinated
mon

and

stock,
such

to

construtcion
Bank

to

Industries, Inc.
an aggregate of $13,500,000
debentures, due 1985, and com¬

exceed

income

be

offered

common

amendment.

in

Proceeds—For

of

new

plant.

units

of

such

Price—To

stock.

be

debentures

supplied

by
working capital and the
Office — 444 First National

Building, Phoenix, Ariz.
Co., New York City.

Weld

&

Underwriter—White,

,

Southwestern Investment Co.
Nov.

2

filed

15,000 shares
ing company

225,000 shares of

common

stock, of which

to be offered to employees of the issu¬
and its subsidiaries, ,and 210,000 shares

are

represent outstanding stock held by previous stockhold¬
ers

of

Southwest Acceptance

shares. Price—At market.

Co., who may offer their
Office—Amarillo, Texas. Un¬

derwriter—None.
•

Stantex

Corp. (2/15-19)
(letter of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—For
n^w quarters, expansion and working capital.
Office—
Dec. 28

City

change for its demand notes totaling $587,000; and the
balance, or $613,000, to the public for cash. Office—555

Oil Ventures, Inc.
$2,000,000 of participations in its 1960 Oil

Nov. 27 filed

40

in

Avenue,"

of

amendment.
stock

6%

30

Haven

Dickson

S.

the company, and 457,000
shares, repre¬
senting outstanding stock, to be sold for the accounts
»f certain selling stockholders. Price—To be
supplied by

offer

Nov.

New

Sottile, Inc. (Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par
$1),
of which 1,543,000 shares are to be issued and sold
for;

Peterson & Co.

the issuer.

comPany-connected

Office—7725

—

Feb. 1 filed 70,000 shares of capital stock, of which 30,676
shares are to be offered for public sale for the account

ment.

indebtedness.

Price—$5
Insurance Co.

Underwriter—Kidder, Peabody & Co., Inc.

State¬

Plastic &
Fibers, Inc.
Jan. 18
(letter of notification) 85,714 shares of common
stock (par 40
cents). Price—$3.50 per share. Proceeds

r

bank

Melbourne, Fla.
Underwriter—R.
Inc., Charlotte, N. C.

Nov.

Reserve

161

be

quisition of land and erecting an additional plant,, for
tooling and additional equipment, for fixtures and gen¬
eral furnishings for the new
plant, and for reduction of

Co., also of New York City.

in March.

.

Engineering, Inc. (2/18)
100,000 shares of its common stock. Price;
supplied by amendment.
Proceeds — Fqr ac¬

29 filed

—To

Pa.

ment

Underwriter—None.

corporate purposes. Office

Soroban

150,000 shares of common stock.
Price—
share.
Proceeds—For general corporate pur¬
Office—New York City.
Underwriter—Sutro

per

ing effect to the completion of the proposed offering,
net operating profit in the fiscal year ending April 30,
1959 was about $1.48 per share.)
Office—Evanston, 111.

for general

•

Dec.

Jan.

insurance business in States other than Illinois, the sole
State in which it
is presently licensed. Office—222 W
Adams

Street, Chicago, 111.

and development; for test equipment and for
advertising and sales promotion. Office—3050 W. 21st
Street, Brooklyn, N. Y. Underwriter—George, O'Neill
& Co., Inc., New
York, N. Y.

holders.

—

offered

operating capital.

as

622, Little Rock, Ark.

share.

edness.

•

(2/24)

be

$600,000,

Rico

lington & Co., of Seattle and New York City.

the

(par $1).
Price—To be supplied by amendment. Proceeds—For
property development,-possible acquisitions, and work¬
ing capital. Office
1111 West Foothill Blvd., Azusa,
Calif. Underwriters—Allen &
Co., Bear, Stearns & Co.,
and Sutro Bros. &
Co., all of New York City.

to

research

•

So. Tripp Ave., Chicago, 111.
Heller & Co., of New York City.

are

to be offered to the

are

Puget Park Corp.

Office—777

55,000 shares

allocated to the

at

poses.

the

of common stock (par 10
cents). Price—$3 per share. Proceeds—To move to new
plant facilities; to acquire additional working capital;
to expaqd production facilities and for
operations; for

nvest

Jan. 6 filed 125,650 shares of common stock.
per

Sonar Radio Corp.
22 filed 195,000 shares

Jan.

filed

Box No.

Corp.

Dec. 21 filed 400,000 shares of common stock

of which

:

.

in the securities of its
subsidiary, Puerto
Meat Packing Co., Inc., which will use the
funds,

in oil and gas
exploratory fund. Price — The minimum participation
will cost $10,000. Office—Madison, N. J. Underwriter—

holders

-

ment

Petroleum Projects
Oct. 13 filed $1,500,000 of participations

I

•

organizers of the company ai
public in units
of $4,000 of
debentures, 500 class A shares, and 500 class
B shares.
Price—$5,000 per unit. Proceeds—For invest¬

$5.25

| Mineral Projects Co., Ltd.
Phillips Developments, Inc.

shares of present holders.
amendment; Proceeds — For

Office—Caparra Heights, San Juan,
Underwriter—Merrill Lynch, Pierce, Fen¬

par, the securities

v

equipment/ and

[Underwriter—Stanley

15

common

250,000 shares of common'Stock (par $1).
Price—$3 per share. Proceeds — $115,000 for payment
in full of outstanding 6% sinking fund debentures, plant

new

stock, 70,000
public sale, and the

Industries, Inc.
48,500 shares of class A common stock,
(par $1), 200,000 shares of class B common stock
(par $1)
and $388,000 of 6% subordinated
debentures, due July
I, 1971. With the exception of 151,500 shares of vlass B

Feb-. 4 filed

[renovation,

common

Puerto Rico

Oct.

York.

Electronics

^Pentron

of

to be offered for

are

be supplied by

Puerto Rico.

Proceeds—To reimburse

(2/15-19)

New

Feb. 24.

outstanding

nel Smith Inc.

general corporatt
purposes, including the addition of working capital, the
reduction of indebtedness, and
the provision of the
$173,000 cash required upon the exercise of an option tc
purchase the building at 245-249 W. 55th St., New York
Office—245 W. 55th Street, New York.
UnderwriterHilton Securities, Inc., formerly Chauncey, Walden, Har¬
Freed,

on

expansion purposes.

share, with warrants.' Proceeds—For

&

being

Price—To

Sept. 17 filed 400,000 shares ol common stock (par 11
cents) with warrants to purchase an additional 100,001
common shares at $3.25
per share. Price — $3.75 pej

ris

EST

a.m.

filed'200,000 shares

balance

issuer's treasury for expenditures made for property
additions and improvements.- Probable bidders: Halsey,
Stuart & Co. Inc., and Morgan Stanley & Co. Office—
140 New Montgomery Street, San Francisco 5, Calif.
Bids—Expected up to 11:30 a.m. EST on Feb. 16.
Pathe News,

5

shares of which

the

•

up to 11:30

• PuebLo Supermarkets/ Inc.

Feb.

-

shares held and seven such common shares for

common

—

Expected
-

Weld & Co. and Shields

& Cd. ..(JointiytFl & C°*> Inc-; The First Boston Corp.; Equi¬
Securities Corp. and Eastman
Dillon, Union Secu¬
& Co.
(jointly); and Glore, Forgan & Co; Bids

!
table

IHebtedness;

for working capital; ? for establishment of ?
three additional stores; and to provide additional work- i
ns capital for a new subsidiary.
Office—1212 West 26th t
Vancouver, Wash.
Underwriter—Frank Karasik &

(2/24)

*12,000,00°

;

Co!,.' Inc.

Public Service Co. of
Oklahoma

;

•

35

N. 2nd

Hunt

Street, Philadelphia, Pa. Underwriters—First
Securities, Inc., New York, N. Y. and Frank P.
& Co., Inc., Rochester, N. Y.

it State Bond & Mortgage Co.
(by amendment) an additional $4,000,000 of series
120 certificates and $10,000,000 of series 115 certificates.
Office—New Ulm, Minn.

Feb. 4

^State Hospital Insurance Association, Inc.
(letter of notification) 12,750 shares of common
(no par) to be offered for subscription by stock¬
holders of record Jan. 15, 1960 and unsubscribed shares
to the public. Rights expire Feb. 25, 1960. Price — To
stockholders, $11.50 per share; to the public, $12.50 per
share.
Proceeds—For working capital. Office—106 W.
Church St., Tarboro, N. C. Underwriter — Powell & Co.,
Fayetteville, N. C.

Jan. 27

stock

.

Deer?n ^Mred Insurance

Co.

riled 59,364 shares of outstanding common stock,
fXchanged by certain of the issuer's shareholders
der .,5 to an agreement with Preferred Automobile UnGrlJ£rs Co- Office —126 Ottawa Avenue, N. W.,

to

suhip

uran<? Rapids,
Jan

Mich.

r?o ^s,s,ol1al

•

r

Life & Casualty Co.

:

•

nesc

*

^ 180,000 shares of common stock. Price—$10
,ai?' ^roceeds—For the company's insurance busi-

Chi
Co

A

^nt
pi?'

exPenses, and working capital for the pro-t
of business. Office—720 N. Michigan Ave.,
* Underwriter—Professional Casualty Agency

Chicago,

111.




capital.

Office—17 Jutland Road, Toronto, Canada. Un¬
Writer & Christensen, Inc., Denver,

derwriter—Peters,
Colorado.

PerW.
curom

Sept. 8 (letter of notification) 95,000 shares of capital
stock (par 10 cents). Price—$1.50 per share. Proceeds—
To purchase and install manufacturing equipment; con¬
trol and test equipment; advertising and for working

Office—1200 18th

Solon Industries,
Jan

26

(letter of

it State Loan & Finance Corp.
Jan. 29 filed 13,222 shares of class A common stock.
Prices—$19 per share for 1,675 shares; $20 per share for
9,403 shares; $24 per share for 2,144 shares, upon exerciseof stock purchase warrants issued by Equitable Credit
Corp. prior to merger. Proceeds—For working capital.

Inc.

notification) 50,000 shares of common

stock (no par).
Price—$5'per share. Proceeds—For
working capital. Office—e/o A. M. Hubman, 4061 Conover
Road, University Heights, Ohio. Underwriter—
Gaither & Co.. Inc., Cleveland, Ohio.

St., N. W.„ Washington, D. C. Under¬

writer—None.

^ Statistical-Tab Accounting Bureau,> Inc.
29 (letter of notification) 5,000 shares of common
stock (par $1). Price — $10 per share. Proceeds — For

Jan.

Continued

on

page

36

36

The Commercial and

(692)

Continued jrom 'page 35

•

(The)

Oct.

7

stock (par one cent) and 30,000 common stock pur¬
chase warrants, to be offered in units consisting of $100

due April 1, 1980, being offered to stockholders
and
employees of record Feb. 5 on the basis of $500 of deben¬
tures for each 10 common shares held; the stock is
being
offered on the basis of one new share for each
five

of

stock

—$150

mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Underwriter—Stanford Corp., Washington, D. C.

Underwriters—Street

&

Note

—

Name has

been

Supermarket Service, Inc.
14 (letter of notification) 9,000 shares of common
(no par). Price—$11.50. per share. Proceeds—For
working capital. Office — 103 E. Main St., Plainville,
Underwriter

E.

—

T.

(letter of notification) 139,832 shares of common

Andrews

&

199,900 shares of common

Turner

120,000 shares of

stock.

common

per

porate purposes, including expanding the business. Of¬
fice—224 Washington Street, Perth
Amboy, N. J. Un¬
derwriters—Standard Securities Corp., Herzig, Farber &

To

Office—60 E. 42nd Street, New York City. Underwriter
P. Hunt & Co., Inc., Rochester, N. Y. Offering

sion

of the business.

Lake

Office—1935

So.

City,

Utah.
Underwriter—J.
Salt Lake City, Utah.
System
Dec.

15

dinated

Finance

(letter
notes

of

Co.

operating

properties, real and/or personal, includin#
office furniture, fixtures, equipment and office space, b*
lease or purchase.
Office — Wilmington, Del. Under,
writer—None.
Myrl L. McKee of Portland, Ore., b
President.;
'V .//;./

r

.

notification)

due

Street, Salt
Hogle~ & Co.,

$250,000

of

6%

subor¬

Jan.

I, 1966. Price—At face amount.
Proceeds—For working capital. Office— 610 S. Sixth
St.,
Champaign, 111. Underwriter
Hurd, Clegg & Co.,
Champaign, 111.

United Tourist Enterprises, Inc.
Jan. 28 filed 4,500,000 shares of class

•

Tayco Developments, Inc.

Dec. 23 filed 5,390 shares of
for subscription

by

ten-seventy-fifths

of

a

share for each share held.

Price

—$28.75 per share.
to

secure

Proceeds—For working capital and
additional patents on present
inventions, and

to continue and expand
research and
in the field of
liquid

development work
compressibility devices and other
Office—188 Webster St., North
Tonawanda, N. Y.
Underwriter—C. E. Stoltz & Co., New York.

areas.

•

Taylor Devices, Inc.

Dec.

23

fered

filed

for

18,705

shares of

basis of six-tenths of

i—$28.75 per share.

one

common

common

stock

filed

Price—$3

per

Md.

shares

Underwriter—A.

Tennessee

Gas

of

Brod

class

A

common

general

stock.

corporate

Co.

Chemicals, Inc. (2/24)
filed 174,576 shares of common
stock, of which
88,000 shares are to be offered for the
account of the
present holders thereof and the
remaining 86,576 shares
are
to be offered for
subscription by stockholders at
the rate of one additional
share for each eight shares
held. Price—To be
supplied by amendment. Proceeds—
For general corporate
purposes. Office—Greenville S. C.
22

& Co., New York, N. Y.

Tower's Marts, Inc.
Aug. 28 filed 300,000 shares of class A common
stock
(par 10 cents). Price—$3 per share.
Proceeds—To re¬
duce indebtedness
by about $300,000, with the balance
to be added to
working capital of the company and its

subsidiaries.

Office—210

East

Main

Street, Rockville,
Underwriters—To be supplied
by amendment.

Transcon
,

March 20
mon

(letter of notification)
300,000 shares of
Price—At par ($1 per

stock.

snare).

com¬

Proceeds—

J or. development of oil properties. Underwriter—First
Investment Planning Co.,
Washington, D. C.
notification) 75,000 shares of common
stock (par 10
cents). Price—$4 per share.
Proceeds—For
expenses incidental to the
development of a frozen food
trucking business. Office—152 W. 42nd
Street, New York
City.
Street,

on

a

—

Jerome

"best efforts"




Con¬

and

U. S. Polymeric

Chemicals, Inc.

(2/16)

-7

Robbins & Co., 82 Wall
basis.
Offering—Expected in

effective Jan. 29.

A

The

100,000 shares of common stock (par
$10)
shares of preferred stock (par $25). Price —
At par.
Proceeds—For construction and equipment of
company's plant and for working capital.
Office—300
Montgomery St., San Francisco, Calif.
Underwriter—
None.
v/
' <•'
\
V'V -v..

and 40,000
7

7 •

Whitmoyer Laboratories, Inc.

(2/29)

.

Jan. 28 filed 85,000 shares of common stock and
of 6% subordinated

$500,000
warrants

for the

purchase of 10,000 additional common shares at
share.
Price —For the debentures,
'7100% of
principal amount; for the 85,000 common
shares, $6
per share.
Proceeds—For general corporate
purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment...
Office—Myerstown, Pa. Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.
V vVy- /.v; Y
$5

per

•

—

Universal Transistor Products Corp.

Dec.

18

mon

(2/19)

stock

(letter

of notification) 150,000 shares of com¬
(par 10 cents). Price—$2 per share. Pro¬
ceeds
For
general corporate purposes.
Office — 36
Sylvester Street, Westbury, L. I., N. Y. Underwriters—
—

Michael G. Kletz & Co., Inc. and Amos Treat &
Co.,
New

Inc.,

York, N. Y.

Val Vista
29

Investment Co., Phoenix, Ariz.

filed

80

investment

contracts

terests) to be offered in units.
Proceeds—For investment.

Price—$5,378.39 per unit.

Statement effective Aug. 11.

Variable Annuity Life Insurance Co. of America
filed

Price—No
contracts

less
and

$4,000,000
than
no

$120

less

Variable

of
a

than

year

$1,500

Annuity

for

Policies

annual, premium

for

single premium
Proceeds—For investment, etc.
Office—1832
M Street, N. W.,
Washington, D. C. Underwriter—None

contt

Color

Television System, Inc.
(letter of notification) 86,403 shares of common
(par $1).
Price—$3 per share..
Proceeds—For

stock

-

general corporate purposes.
Office—151 Odell Avenue,'
Yonkers, N. Y.
Underwriter—Investment Brokers of
.

N.

J., Inc., 844 Broad Street, Newark, N. J.

★ Wynn Pharmacal Corp.
Jan.

29

(letter of

common

stock

Proceeds—To

notification)

4,380 shares of class B
cents).
Price—$2.50 per share.
selling stockholders.
Office—5051

(par
go

10

to

Lancaster Ave.,
Philadelphia, Pa. Underwriter—Charles
A. Taggart &
Co., Inc., Philadelphia.

Wyoming Nuclear Corp.

(partnership in¬

Underwriter—O'Malley Se¬

curities Co.

Wilier
Jan. 29

Jan. 14 filed 71,090 shares of
outstanding common stock.
Price
To be supplied by amendment. Proceeds — To

Sept. 11 (letter of notification)

10,000,000 shares of com¬
(three cents per share). Pro¬
ceeds—For mining
expenses. Office—Noble Hotel
Bldg.,
Lander, Wyo. Underwriter—C. A. Benson &
Co., Inc.,
Pittsburgh, Pa.
\7.; r
4 7
mon

stock.

Price—At par

.

..

★ York Minerals, Inc.
Jan. 29 (letter of
stock.

cts.

Price—At

notification) 237,550 shares

of common

($1 per share).- Proceeds — For
Office—849 Custer Ave., Custer, S. D.

par

mining expenses.
Underwriter—None.

;

ic Vernitron Corp.
Feb. 2

(letter of notification)

100,000 shares of

common

stock

(par 10 cents). Price—$3 per share. Proceeds—
For general corporate
purposes. Office—136 Church
St.,
New York, N. Y.
Underwriters—J. A. Winston & Co.,

Inc.; Netherlands Securities Co., Inc. and V. K. Osborne
& Sons, Inc., 40
Exchange Place, all of New York, N. Y.
Walnut Grove Products
Co., Inc.
29 filed 300,000 shares of class A
common
(par $2), and $3,000,000 of 15-year 6V2%

debentures, with

stock

sinking fund

warrants

to purchase 50 class A com¬
$1,000 debenture.
Price—To be
supplied by amendment. Proceeds—To
repay bank bor¬

mon

shares

rowings

with

of

each

$4,500,000

and

Office—Atlantic, Iowa.

replenish working capital.
Underwriters—First Trust Co.,

Lincoln, Neb., and Cruttenden, Podesta &
Co., Chicago.

it Waters Manufacturing,

Inc.

(letter of notification) 60,000 shares of common
stock (par $1) of which
20,000 shares are to be offered
by Robert A. Waters, President and the balance
by the
company.
Price—$5 per share. Proceeds—For
working
capital. Office—533 Boston Post Road,
Wayland, Mas3.
Underwriter—Stroud & Co., Inc.,
Philadelphia, Pa.
Jan. 29
rants

for

300,000 shares of

the

Price —To

be

purchase of
supplied

$350,876 will be used
remainder to be used

for

an

stock

and

war¬

additional 100,000 shares.
amendment.
Proceeds
retire certain debts, with the

—

construction, equipment, and

working capital.
Office—6505 Wilshire Boulevard Los
Angeles, Calif.
Underwriter—A. T. Brod & Co., New
York City.

Associates, Inc.

was

reported that this company will probably
undetermined amount of common stock in April.

Office—Glenwood Landing, L. I., N. Y.
Lehman Brothers of New York
City.
Alabama
Dec. 9 it

was

Power

Co.

Underwriter-

(4/7)

announced

that this company plans regis¬
tration with the Securities and
Exchange Commission of

$19,500,000 of 30-year first mortgage bonds. Underwriter
be determined
by competitive bidding. Probable
bidders: Halsey, Stuart &
Co.-Inc.; Morgan Stanley &
Co.; Lehman Brothers; The First Boston Corp.; Blyth &
Co., Inc. and Kidder, Peabody & Go.
(jointly); Eastman
Dillon, Union Securities & Co.;, Equitable Securities

—To

Corp. and Drexel

& Co. (jointly). Information Meeting
—Scheduled for April 4, 1960.
Bids—Expected to be re¬
ceived on April 7.
Registration—Scheduled for March 4.

American Jet School,
Inc., Lansing, Mich.
was

issue and sell

common

an

by

to

Feb. 5 it

Aug. 31 it

Industries Corp.

filed

Prospective Offerings
it Acoustica

file

•

Jan.

Wells

Transit Freeze
Corp.
Dec. 3 (letter of

Underwriter

Hotel

Jan. 29

Petroleum & Development
Corp..
Mangum, Okla.

became

-

April 21

(2/16)

Texize

Conn.

Estes

writer—Mid-West Securities Corp., Littleton, Colo. State¬
ment effective Oct. 9.

June

Street, Silver Spring,
& Co., New York
City.

Transmission

Underwriter—Kidder, Peabody

\

•

Jan. 19 filed 1,500,000
shares of common stock (par $5).
Price—To be supplied
by amendment. Proceeds—To re¬
tire short-term
notes, with the balance to general funds.
Office—Houston, Texas. Underwriters—Stone & Web¬
ster Securities
Corp. and White, Weld & Co., both of
New York
City.

Jan.

Grand

a

of¬

Bonifant
T.

of

the

—

Proceeds—For

Office—880

purposes.
*

150,000
share.

construction

be

Teletray Electronic Systems, Inc.
27

for

vention Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.
Office — 330 South 39th Street,
Boulder, Colo.
Under¬

on

to

stockholders

loan, for additional working capital, and to establish ex¬
panded executive sales and
manufacturing personnel"
and to continue research and
development, and the bal¬
ance to lease or
purchase additional factory and office
space. Office—188 Webster
St., North Tonawanda, N. Y.
Underwriter—C. E. Stoltz & Co., New York.
Jan.

and
*

stockholders.
Office—Stamford, Conn. Under¬
writer—Dominick & Dominick, New York City.

share for each share held. Price
To repay a short-term

Proceeds

stock

common

cents). Price — $2 per share. Proceeds — For
development and construction of a "Western Village"

selling

(3/1)

subscription by

A

(par 50

(3/1)

stock to be offered
stockholders at the rate of

common

common

preferred, and 5 shares of class

statement

debentures, due 1977, with

~

—

bonds

March 5 filed

United Employees insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5,
Price — $10 per share. Proceeds — For acquisition o

Main
A.

of

amount of debenture

unit, such unit to consist of
subordinated debentures, 5

Western Wood Fiber Co.

—Expected in February.

filed 10,000 shares of common stock.
Price—
supplied by amendment.
Proceeds—For expan¬

be

Co.

filed to

offering began Feb. 1 and ends Feb. 23.
Office—Maple
& Third
Streets, Panama City, Fla.
Underwriters—
White, Weld & Co. Inc., New York City, and Pierce,
Carrison, Wulbern, Inc., Jacksonville, Fla. (jointly).

—Frank

29

one

amount

The

common.

(plus accrued interest from 12/15/59) per unit.
the acquisition of coal and timber prop¬
erties, with any balance to be added to working capital.

Surety Life Insurance Co.
Jan.

principal

shares of cumulative

$1,001.25

McKenna, and Irving Weiss & Co., all of New York City,
Bruno-Lenchner, Inc., Pittsburgh, Pa.

»

$50

Proceeds—For

and

was

$100 principal

be exchanged for

may

cent), to be offered in units consisting of $1,000 principal
amouht of debentures and 125 shares of stock. Price—

filed

an

Each

stock.

Corp.

Price—

29

bank

*

Timber

Nov. 12 filed $2,000,000 of 6%% convertible debentures,
due 1969, and 250,000 shares of common stock (par one

share.
Proceeds—$50,000 to reduce short-term
loans, and the balance to be used for general cor¬

Jan.

$6

Corp.

Co.,

common

Conn.

Supronics

Gas

&

units of $416,000 of 1V2% subordinated
debentures, due
Jan.
1, 1960, 41,660 shares of 'llk% cumulative pre¬
ferred
stock, and 41,660 shares of class A

Bldg., Erie, Pa. Underwriter—

Daggett Securities Inc., Newark, N. J.

Co., Hartford,

amendment

Underwriter—Blair

a prior
registration
statement, said amendment covering an exchange offer
to holders of the issuer's outstanding 6% 20-year deben¬
ture bonds.
The holders may exchange said bonds for

(par five cents). Price—$1.50 per share. Proceeds
—For expenses for drilling and producing oil. Oflice—
Baldwin

21

Natural

Florida

West
Dec.

Petroleum Corp.

Daniel

Main St., Muncy, Pa.
New York City.

Inc.,

stock

G.

and the

South

,

1403

stockhold¬

remaining 120 shares being offered to em¬
ployees. Initial conversion price is $70 per share. Prices
—For the debentures, at
100% of principal amount;
for the common, to be supplied by amendment. Pro¬
ceeds—For equipment and working capital.
Office—31

•

Nov. 12 (letter of notification)

Oct.

1,120 shares of common stock ($50 par)
5% convertible subordinated debentures

shares held, with 1,000 shares being offered to
ers

(par 10 cents).
Price—$2 per share.
Pr®c_eeJ!r;
For general corporate purposes.
Office—119 W. 2btn
Street, New York 1, N. Y.
Underwriter—First City
Securities, Inc., New York, N. Y. Offering—Expected in
early March. '* ;■
;::.:-v
Tri-State

6tock

Conn.

common

Proceeds—For

stock

;

filed

28

and $150,000 of

Transworld Equipment Corp.

Jan. 25

Co. and A. J. Frederick

Co., Inc., New York, N. Y.
changed from Su Mark, Inc.

unit.

per

;

•

Boat, Inc.
Jan. 25 (letter of notification) 96,250 shares of common
stock (no par). Price—$2 per share.
Proceeds—To pay
bank indebtedness, acquire new equipment and
tools,
and for working capital. Office—Stone Street, Walpole,
&

debentures, 10

i959.

Su Mark

Mass.

7%

of

shares, and 5 warrants. Price
general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Statement was withdrawn on Dec. 2,

300,000 shares of common
Price—$1 per share; Priceeds—

For

•

$600,000

mon

Stelling Development Corp.
cent).

Thursday, February 11, 1960

.

Jan.

June 8 (letter of notification)
one

.

* West Branch Bell Telephone Co.

T Transportation Plan, Inc.

filed

.

convertible subordinated
debentures, due November, 1969, 60.000 shares of com¬

working capital. Office—873 Spring St., N. W., Atlanta
8, Ga. Underwriter—None.

(par

Financial Chronicle

announced

that the

corporation plans to

100.000

shares of common stock (par $1)*
Price—To be supplied by amendment. Proceeds—For ex¬
pansion of present Michigan and Ohio sales force to a
national one, and introduction of
dent study schools.

business.

new courses and resi¬
Business—In correspondence school
Kalamazoo St.,.-Lansing, Mich.

Office—1609

Underwriter—In New York, to be named.
is
presently negotiating with two New
writers.

-

The company
York
*

under¬

Number

Volume 191

1 ne

commercial and

Financial Chronicle

(693)

California (3/29)

Bank of

l

* *

Georgia Power

?Ph 10 it was announced^ that this^ Bank has called a
announced
this
has called a
fnecial imeeting of stockholders for lVlarcn za to auuiur:ial

ec.

of 256,930 additional shares of stock. Stock
Jf.lU
offered to shareholders of record March 29 at
rate of one new share for each five shares then held,
proceeds—To increase capital and surplus. TT~-1—roceeds—To
surplus Underwriter
L,
Pn
Tnr»
San Franrisrn
rialif
Blyth & Co., Inc., San Francisco, Calif.

with

*

.ii.

Laughlin, Inc.
Tan
27 it was reported that registration is imminent
for 36 157 shares of common stock, to be exchanged for
the outstanding shares of Sierra Drawn Steel Corp., Los
gliss &

Angeles, on

the basis of 8/10 shares of Bliss for

Bobbie Brooks*

9

each of

Power Co.

Dec. 9 it
tration

was

with

announced

the

that the company plans

mailed a proxy statement to stockholders stating
is considering a new public offering
of 100,000 shares of capital stock.
Stockholders meet
on Feb.
24. The company's first public offering, on
Feb 5, 1959, was handled by Bache & Co. Office—3830
Keliey Avenue, Cleveland 14, Ohio. ' . , ,"</

The First Boston

regis¬

Corp.; Equitable Securities Corp.;

p.d(ter, Peabody
L?
Smith
o

& Co., and White, Weld & Co. (joint^ ^0•, *nc*' Merrttl Lynch, Pierce, Fenner &

r

Feb. 3

Inc.; Salomon Bros. & Hutzler, and Drexel & Co.
(jointly); Eastman Dillon, Union Securities & Co. In¬
formation Meeting—Scheduled
for July 5, 1960. BidsExpected to be received on
July 7.
Registration —
Scheduled for June 3.

Peabody & Co., and White, Weld & Co.

Gulf Power Co.
(7/7)
Dec. 9 it was
announced that the
company plans regis¬
tration of 50,000 shares of
preferred stock (par $100).
Underwriter—To be determined
by competitive

California Electric Power Co.
it was reported that there might be some new
financing in the second quarter of this year, probably
in the form of bonds. Proceeds—For construction. Un¬
derwriter — To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc., Kidder,

which will be announced at a later date.
retire
$20,000,000 of unsecured

mature

on

issued

to

bidding/

Probable bidders: Harriman
Ripley & Co.; Eastman Dil¬
lon, Union Securities - & Co., and Salomon Bros. &
Hutzler (jointly); Equitable
Securities Corp.; Kidder;
Peabody & Co., and White, Weld & Co.
(jointly). In¬
formation Meeting—Scheduled for
July 5, 1960. BidsExpected to be .receivedon
July .7.
Registration —
Scheduled for June 3.

Street, Raleigh, N. C. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); W. C. Langley &
Co. and First Boston Corp. (jointly); Kuhn, Loeb & Co.
and
Equitable
Securities
Corp.
(jointly);
Lehman
Brothers; Blyth & Co. Bids—Expected to be received on

finance

was

Hamilton Management
Corp.

Feb. 3 it

was

non-voting

reported

that

stock

common

the week of Feb. 23.

an

;

It

reported that around July about $10,000,bonds will be filed. Underwriter—

may

White,

Blair &

Weld

&

the

15

Central
Jan.

Illinois

announced

Light

Office—Denver,

be registered
Colo. Underwriter

for

Corp. (jointly).

$4,500,000 of

Feb. 5 it

that

this

York City commercial bank loans at the time of
borrowings.. Proceeds—To discharge all notes out¬
standing under a previous credit agreement, to re¬
imburse the issuer's treasury for construction expend¬
itures, and to provide temporary financing for future

the

construction.

Feb.

9 it was reported that there will be

about $8,000,financing sometime in the late Spring or
early Summer, type to be determined by market con¬
ditions prevailing then. " Underwriter—To be determined
by
competitive
bidding.
Probable
bidders:
Halsey,
Stuart & Co. Inc.; White, Weld & Co. and
Kidder, Pea¬

000

of

debt

body & Co.
Smith Inc.

South

June

company

★ Commonwealth
it

was

reported

$30,000,000

Co.

there

that

is

expected

to

be

of 30-year first mortgage bonds filed,
next
six months.
Underwriter—

probably within

the

determined

by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.'
Inc.; First Boston Corp.;

Glore, Forgan

&

Co.

Consolidated

Research

& Mfg.

Corp.
1
firm, founded last
August as a Delaware
corporation, plans its first pubhe
financing in the form of a common stock offering
16

it

was

reported

this

that

scheduled
dues

for next spring. Business—The company prospray containers to combat ice, snow, and fog.

Proceeds—For expansion. Office—1184 Chapel St., New
Haven, Conn. President—Marvin Botwick.
v

F,®ctrada

Jdb. 3 it

Corp.

that this company is planning
Spring. Office — Beverly
p.1, , Calif. Underwriter—Bache & Co. of New York
Lhy and
Beverly Hills, Calif.
was

hnancing

reported

sometime

in

the

Englehard Industries, Inc.

Dec. 2 it
was reported
10n

dhght

make

an

that this Newark,
announcement in

N. J., corpora-

new

bonds.

Last bond

issues

were

'

placed

v'

was

reported that

an

issue of

common

stock is

the

next

two

broadcasting.
Mich. Underwriter—

Shepard St., Lansing,
York, to be named.

Kenrich

Jan.

it

20

Petrochemicals,

was

Underwriter

,

Mac

Feb.

it

3

stock

Panel

are

Co.

1

reported

that 200,000 shares of common
expected to be filed the week of Feb. 8. Office
was

—High

Point, N. C. Underwriter—Bache
York City and Charlotte, N. C.

&

Co.,

New

it Michigan Wisconsin Pipe Line Co.
Feb. 10 it was reported that the company expects to
receive bids on $30,000,000 of mortgage bonds in April
or May.
Office—500 Griswold St., Detroit 26, Mich.

it Mountain States Telephone & Telegraph Co.
^
(4/12)
Feb. 8 it was reported that $40,000,000 of debentures
will

be

offered.

Underwriters

To

be

22, S. C.~ McMeekin, President, announced plans
approximately $8,000,000 of bonds In December,

sell

Proceeds—To repay bank loans incurred for cur¬

this

program.
Previous issues have been
Note—On Dec. 31 Mr. McMeekin told
newspaper he does not know whether the bonds

be

placed privately.

placed privately.

^National Fuel Gas Co.

announced

stockholders

ew

of

share

Offering to stockholders of 150,000 additional
capital stock (par $10) on the basis of one
for

each

four

shares

held.

Price -$40

^r0C€eds—To increase capital and surplus.


derwriter—None.


-

-

~

-

:

r

•

•

::

.

■

sold
mar¬

:

.

Dec. 9 it

tration

Electric Generating Co.

(6/2)
announced that this company plans regis¬
the SEC
of $40,000,000 of
30-year first

was

with

bonds.
Underwriter
competitive bidding. Probable

—

To

be

determined

by

bidders:

Halsey, Stuart
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.,
and Blyth & Co., Inc.
(jointly); Morgan Stanley & Co.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Eastman Dillon, Union Securities &
Co.; Equitable Secu¬
rities Corp., and
Drexel & Co.
(jointly); The First
Boston Corp. Information Meeting—Scheduled for
May
31, 1960.
Bids—Expected to be received on June 2.
& Co.

Registration—Scheduled

for April

29.

/

•

Feb. 9 it

was

First Boston Corp. Information Meeting—April
7, at 11:00 a.m.- Bids—Expected to be received on April
11. Registration—Scheduled for March 2.
Corp.;

Oct.

5

Order Co., Lansing, Mich.
announced company plans to register an

Mail

it was

mined

issue of

(par 10 cents).
Proceeds—For

York State.

reported that $11,000,000 in new financing
Spring of this year, of an undeter¬
Underwriters — A. C. Allyn & Co., and

type.

/Tennessee Valley Authority
Jan.

20

(7/1)

announced

that, pursuant to August, 1959, au¬
thorization from Congres to have
$750,000,000 of rev¬
enue bonds
outstanding at any one time, it plans its first
public offering, expected to be about $50,000,000, for
July 1, 1960. Probable bidders: First Boston Corp. (man¬
aging), Salomon Bros. & Hutzler; Eastman Dillon, Union
Securities &

Co., and Lazard Freres & Co.

Transcontinental Gas Pipe Lind'Corp.

Sept.

29

it

come

to

market

announced

was

twice

mortgage bonds, and
ceeds—To

raise

in

that

Transval
R.

F.

Electronics

Downer,

an

Norman C. Roberts

plans

company

the

sale

of

to

first

and preferred stock. Pro¬
for the financing of

common

permanent

the
with

1960

funds

its 1960 expansion program.

Office—Houston, Texas.

Corp.

official, announced on Jan, 8 that
Co., San Diego 1, Calif., and the Los

Angeles office of Sutro & Co.

(home office: San Fran¬
cisco) "may be contacted regarding any and all in¬
quiries with respect to the issuance and sale of Transval

stock."

'

Utah

■

Power & Light

Feb.

3

year

there

stock.

reported that there is expected to be filed

$18,000,000 of debentures. .Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co.; Eastman Dillon,
Union Securities & Co.; Stone & Webster Securities

National

was

is planned for the late

it

was

reported

Co.

;;

"

t

that

toward

is

of

•'

expected to be
about $25 million

some

of

the

end

of

this

financing

by

this

bonds

and

common

Underwriter—To

be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Co. and First Boston Corp. (jointly); White,
Weld & Co.; Stone & Webster Securities Corp.
(jointly);

bidding.
Blyth &

Salomon Bros. &

Hutzler; Kidder, Peabody & Co.; East¬
Dillon, Union Securities & Co. and Smith Barney
(jointly); Lehman Bros.'; Bear, Stearns & Co.

man

&

Co.

^Virginia Electric & Power Co.
Feb.

5

first

mortgage bonds will be

it

writers

was

—

Probable

To

reported
be

that

(9/13)

approximately $25,000,000

determined

offered

by

for

sale.

competitive

Under¬

bidding.

bidders:

Halsey, Stuart & Co. Inc.; Salomon
Hutzler; White, Weld & Co.; Eastman Dillon,
& Co.; Stone & Webster Securities
Corp.- Bids—Expected to be received on Sept. 13.

Bros.

&

Union

Securities

Nedick's Stores,

have approved

J Proposed
shares

Southern

company

(4/11)

.

it was

He expects them to be
timing will be subject to

this summer; the precise
ket conditions.-

determined

by
competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; First Boston Corp; and Morgan Stanley & Co.,
all of New York City.; Bids—To be received on April 12.
—

expansion and working capital. Office—130 Shepard St.,
Lansing, Mich. Underwriter—To be named later in New

14

Co.

Gas

rent .construction

First

Philadelphia Corp., 40 Exchange Place, New York City.
'
/
—

understood that auditors visited the company in late
December. Registration is still believed likely in the
bear future.
<
ePt.

&

Snow, Sweeney & Co., both of New York City.

acqui¬

100,000 shares of common stock
Price—To be supplied by amendment,.

.First National Bank of
Miami, Fla.

v.-v'"-

Electric

Feb. 5 it

concerning a forthcoming issue of common stock.
Although no confirmation has been forthcoming, it is
ahu

Carolina

★ Southern Union Gas Co.

In New

-

Edison

r

mortgage

be supplied by amendment. Proceeds—For
sition of radio stations. Business — Radio

plans to issue and

establish commissaries and for
general corporate
purposes. Office — 1500 Clifton Ave.,
Lansing, Mich. Underwriter—In New York, to be named.

Dec.

City.

N. Y.

announced

(jointly); Merrill Lynch, Pierce, Fenner &
V

—To

Co.; Morgan Stanley
Bids—To be received on

chain of coffee
houses,

be

old

Inc.
reported that February registration is
expected of $175,000
of convertible debentures
and
55,000 shares of common stock. Prices—To be supplied
by amendment. Proceeds—For the expansion of manu¬
facturing facilities.
Office — Maspeth, Queens, L. I.,

common stock (par TO cents). Price
supplied by amendment. Proceeds — To build

To

firm—the

was

it

announced

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock
(par 10 cents). Price

utility expects to sell

Bell 100,000 shares of
*~To be

about

this

House, Inc., Lansing, Mich.

Coffee

9

that

Office—130

reported

Commission

mingham, Ala.

Telephone Co. of West

&
Co.; First Boston Corp.
March 15 at 11:00 a.m.

Feb.

year

contemplated in the next few months. Office—Birming¬
ham, Ala.
Underwriter—Sterne, Agee & Leach, Bir¬

$25,000,000 of debentures. Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.;
White, Weld &

Aug. 31

last

it Hayes Aircraft Corp.
Feb. 9 it

(3/15)

was

late

privately.

(EST) at the offices of Commonwealth Services,
Inc., 300 Park Avenue, New York City.
Potomac

reported

of

a.m.

Virginia

was

Hawaiian Telephone Co.
was reported company received
approval from
the Territorial Public Utilities
Commission to issue about

$14,000,000 of first
mortgage bonds, to be sold at competitive bidding. Pro¬
ceeds—For 1960
construction, expected to total about
$17,000,000. Probable bidders: Halsey, Stuart & Co. Inc.;
First Boston Corp.; Kidder, Peabody &
Co.; Eastman
Dillon, Union Securities & Co.; Merrill Lynch, Pierce,
Fenner & Smith, and Stone & Webster Securities
(joint¬
ly). Bids—Scheduled to be received March 15 at 11:00

^Chesapeake &

Power

New

*

Aug. 3 it

Co.

issuance

Harvey Aluminum Co., Torrance, Calif.

of New York

(3/15)
plans to file with the Illinois Com¬

Commission

merce

bidding. Probable bid¬

Co., Merrill Lynch, Pierce, Fenner & Smith Inc.

and Stone & Webster Securities

Federal

—

Kidder, Peabody & Co.,
(jointly); First Boston Corp.,

Co.

about

will

possibly

Harvey Machine Co.
is
planning its initial public
financing for the Spring.
Underwriters—Kuhn, Loeb &
Co. (managing) and
Tucker, Anthony & R. L. Day, both

000 of first mortgage

and

construc¬

total

they had authorized the Seattle, Wash., utility to issue
up to $25,000,000 -in unsecured promissory notes out¬
standing at any one * time, to be issued in varying
amounts beginning Feb.
1, all such notes to mature July
31, 1961. The interest will be equal to the prime rate for

1959.

undetermined amount of

—Kidder, Peabody & Co., New York City.

Electric & Gas Co.

To be determined by competitive
ders: Halsey, Stuart & Co. Inc.,

1960-61

expenditures, which are expected to
$61,000,000. Office—Portland, Ore.

,

Feb. 3 it

part of the issuer's

tion

to

April 5 at 11:00 a.m. Information Meeting—Scheduled
for April 1 at 11:00 a.m.
;
Illinois

Proceeds—To

promissory notes, to
prior to July 31, 1961. The notes will be

or

it Savannah Electric & Power Co.

it Carolina Power & Light Co. (4/5)
\
•
Feb. 8 it was reported that $25,000,000 of 30-year first
mortgage bonds will be offered. Office—336 Fayetteville

Central

,

announced that the company

was

plans to issue
$20,000,000 of securities, the date and form of

least

Puget Sound Power & Light Co.

SEC of
$5,000,000 first mortgage 30Underwriter—To be determined by com¬
bidding. Probable bidders: Halsey, Stuart & Co.

petitive

that the company

at

Jan.

(7/7)

bonds.

Inc.

^Pacific Power & Light Co.
Jan. 29 it

Information Meeting—Scheduled for Oct.
31.

Gulf

2

Feb

the company plans regisfirst mortgage bonds

30-year

the

Nov. 3.

Office—Harvey, 111.

Sierra's 45,197 shares.

that

SEC.
Underwriter— To be determined
by
competitive bidding.. Probable
bidders: Halsey, Stuart &
rw
' Morgan Stanley & Co.; Equitable Securities
and
.Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and
Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for
Sept. 26. Bids—Expected to be received on

be
oe

l

(11/3)

$12)900,000 of

the sale
!

•tp

Co.
it was
announced

9

37

per

Un¬

Nov.

12

it

was

Inc.
reported that

the-company is contem¬

plating the placing in registration of 17,000 shares of
common stock.
About 66% of the issue will be sold
for the company's account and the remaining 34% bal¬
ance

will be sold for the account of a selling stockholder.

Underwriter—Van Alstyne, Noel & Co., New York.

it West Penn Electric Co.
Feb. 5 it

was

stock will be
—Carl

and
and

M.

First

(4/12)

reported that about $10,000,000 in

common

filed, probably on April 12. Underwriters

Loeb, Rhoades & -Co.; W. C. Langley & Co.
Boston
Corp.
(jointly); Lehman Brothers

Goldman, Sachs & Co. (jointly).

;

38

The

Indications of Current
Business

Activity

week
Latest

IRON

AMERICAN

Indicated Steel

STEEL

AND

.Feb. 13

—

or

month ended

or

on

Month

Ago

that date,

Steel

gallons

42

Crude

condensate

and

average

(bbls.

Jan. 29
Jan. 29

27,570,000

Jan.29

2,428.000

2,943,000

Jan. 29

(bbls.).

7,136,160
118,149,000

Jan. 29

stills—daily average
(bbls.).

output (bbls.).
Distillate fuel oil output (bbls.).
Residual fuel oil output (bbls.).

13,570,000
6,884,000

Jan. 29

Stocks at refineries, bulk terminals, in transit, in pipe llnea—
Finished and unfinished gasoline (bbls.) at
Jan. 29
oil

(bbls.)

ASSOCIATION

OF

28,753,000

29,613,000
3,216,000

27,514,000
2,957,000

13,644,000

14,129,000

14,972,000

6,596,000

6,939,000

7,600,000

188,96^000

197,511,000

25,025,000

25,866,000

26,771,000

20,910,000

126,485,000

132,638,000

148,679,000

18,378,000

50,089,000

49,938,000

96,745,000
57,867,000

Intercity

Jan. 29

'

CONSTRUCTION

601,900

587,339

483,012

564,863

552,636

446,903

,

553,491

S.

Private

>

Public

Feb.

construction

and

4

$377,400,000

$245,200,000

$231,400,000

$284,240,000

Feb.

municipal

4

196,700,000

139,900,000

101,200,000

4

180,700,000

105,300,000

130,200,000

129,699,000

'Feb.

4

158,100,000

81,900,000

88,900,000

COAL OUTPUT

(U. S. BUREAU

OF

smelter

zinc

4

22,600,000

23,400,000

41,300,000

•276,084,000

279,048,000

13,259,000

8,464,000

5,741,813

4,648,122

export
301,332,000

.

.

348

by

5,040,372

—

(net

2,000

(tons

of

73,326

pounds)

period

To

8,650,000

7,325,000

8,585,000

To

Asia

364,000

320,000

521,000

To

of

Pennsylvania

anthracite
152,741

South

-Jan.30

112

113

14,097,000

14,313,000

(net

Electric output
FAILURES

AVERAGE

=

100

AGE

Feb.

AND

INDUSTRIAL)

Pig iron

6

4

318

PRICES

refinery

refinery

.Feb.

(net

2

Feb.

2

ton).

Louis)

(St.

(delivered)

tZinc
Zinc

(East St.

Aluminum

MOODY'S
U. S.

J.

6.196c

6.196c

6.196C

6.196c

$66.41

$66.41

$66.41

$42.i7

$41.50

$43.83

.Feb.

at

99.5%)

at

33.200c

29.600c

31.225c

28.600c

Single payment loans
Charge
accounts

12.000c

12.000c

Service

3

11.800C

11.800c

11.800c

13.000c

12.000c

13.500c

13.500c
13.000c

12.500c

26.000c

26.000c

26.000c

24.700C

100.500c

100.375C

98.875C

9

83.56

82.62

80.11

85.89

9

83.40

88.28

83.40

89.78

.Feb.

9

87.86

87.45

87.32

9

85.46

85.33

85.07

92.35

9

83.15

82.90

83.28

89.78

.

.Feb.

78.09

78.32

81.17

81.17

9

83.40

83.15

83.40

85.85

85.72

85.59

4.29

4.58

3.84

9

4.91

4.92

4.91

4.43

9

4.57

4.60

4.61

9

4.75

4.76

4.78

4.25

9

4.93

4.95

4.92

4.43

5.35

5.33

4.90

5.09

5.09

9

-Feb.

Group.
Industrials Group

9

5.37
V

5.08

-Feb.

9

-Feb.

9

9

■'ir-!.'"-

4.72

-Feb.

INDEX-

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

376.9

4.91

Jan. 30

4.93

97

4.47

4.73

325,870

_

4.91

4.74

4.30

378.0

326.476

Jan.30

_Jan. 30

377.8

_

at end of

period.

Jan.30

,

385.1

331,705

221,382

293,331

322,114

138,521

293,826

~

(tons)

Percentage of activity

•

44

92

462,228

459,259

424,821

375,635

111.56

•

95

111.63

111.61

AVERAGE—100

TRANSACTIONS

-Feb.
FOR

ACCOUNT

OF

5

sales

Other

2,653,060

2,807,240

406,010

442.530

.Jan.15

2,428,910

.Jan.15

2,834,920

2,804,110
3,246,640

.Jan.15

541,840

416,220

71,745
471,555

51,450

.Jan.15

471,560

-Jan. 15

sales

543,300

523,010

Other transactions initiated off the floorTotal

purchases

Short
Other

Total

sales

sales

transactions initiated
Total purchases

Short
Other

Total

.Jan.15

sales

Other

the floor-

on

526,890
583,590

852.659

133,010

133.660

107,330

184,650

812,315

872,065

788,220

1,032,569

945,325

1,005,725

account of members—
.Jan. 15

sales

4,130,090

4,076,119

•Jan.15

610,765

627,640

.Jan.15

sales

3,712,780

4,147,735
4,775,375

■Jan.15

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK

EXCHANGE

56,700

935,190

-Jan.15

sales

Other

491,330

4,323,545

826,895

895,550

3,736,315
475,110
3,143,560
3,618,670

993,710

1,217,219
4,515,300
806,440

4,123,079
4,929,519

Dollar

of

shares

by dealers (customers' sales)—
Number of orders—Customers' total sales-

.Jan.15

1,606,078

1,815,624

1,706,960

2,046,854

9.125

5,967

6,880

6,905

1,596,953

1,809,657

$79,334,122

$93,635,457

1,700,080
$82,164,421

$102,410,496

338,960

396,400

464,070

FOR ACCOUNT OF
MEMBERS
Total round-lot sales—

338,960

396~400

Jan. 15

464",070

sales

396,400

464,070

492,000

Total sales

WHOLESALE PRICES, NEW
SERIES
LABOR — (1947-49 =
100):

Jan.15
Jan.15

727,280

17,860,870
18.588,150

U. 8. DEPT. OF

709,140

18,171,170
18,880,310

583,160
16,097,920
16,681,080

895,990

21,512,010
22,408,000

age

Meats
All

119.2

119.5

118.9

Feb.

•88.3

85.1

-Feb.

90.8

105.4

105.8

-Feb.

2

commodities other than farm

and foods.

105.2

91.7

89.1

a

76

IN

128.6

127.5

-Feb.

128.5

128.6
annual

capacity

of

148,570,970

tons

orders not reported since introduction of
where freight from East St. Louis exceeds

76.250d

$2.80647

$35,000

$214,091

ASSN.—Month

used

29.000c

29.500c

$78,750

ONDARY

TIN

Not avail.

Not avail.

$1.75000

$2.00000

27.255C

26.800c

25.155c

24.700c

35.250C

35.250c

74.000c

74.000c

$2.25

$2.25

$251,000,000

$252,000,000

.

,

aver¬

of

~Z*

$2.25

,

v

DEPT.
,<

$255,400,000

FROM
MANU¬

January:
811,438

I

572,666

644,810

688,806

,

496,189

546,320

122,237

'76,077

98,315

395

400

175

OF MINES)—

24,111,000

27,794,000

16,623.000
30,800,000

77

70

AND SEC¬

UNITED

(BUREAU OF MINES)—Month

23,590,000

22,025,000

31,328,000
69

THE

26,100,000

20,328,000

(barrels)

cent).

IN

$52,000

$77,000

$1.30000
$1.40000

$1.38500

(barrels)

month

(per

32.590c

29.000c

29.500c

$1.48500

coaches—

mills

of

$218,000

29.000c

(barrels)
from
end

$35,000

32.590c

v

26.000c

SALES

(BUREAU
Month of December:

Shipments

99.345c

99.153c

$35,000

29.500c

STATES

of November

(in long tons):
Stocks

beginning

of

period

35,090

at

end

of

—I—

period

22222222

processed

Intercompany
Consumed

in

scrap

2J222

transactions

Primary

^Secondary

1

222S212

STATES

EXPORTS

OF CENSUS
(000's omitted):

AND

—

40,110

36,035

30,000
5,900
35,900
30,150
5,750

36,125

6,720
41,810

35,090

3,985

5,775

5,020

130

120

100

5,645

manufacturing

4,920

3,235

2,410

2,650

5,630
3,650
1,980

$1,476,200
1,204.800

$1,596,200
1,080,000

2,270
.

>'

IMPORTS

Month

of

Nov.

Exports

$1,478,600
1,283,200

96%

new

80.250d

$2.79845

32.590c

,_Z

PORTLAND CEMENT
Production

90.206c

91.375c

79.938d

35.250c

S.—AUTOMOBILE

motor

£72.932

$1.75000

weighted

FACTORY

U.

FACTURERS'

Capacity

91.375c

£74.884

.

28.100C

ingot

pound)

VEHICLE

PLANTS

at

£90.162

74.000c

(per

12.000c

13.000c
£95.190

£91.747

'

11.500c

12.500c

13.377c

$211,000

(per pound)

CIRCULATION—TREASURY
Dec. 31 (000's omitted)

Stocks

12.877C

-

pounds)

MONEY IN

MOTOR

£72.164

99.888c

price)
of

grade
(per pound)

Bismuth

of

£72.452

$2.79976

refined
(per ounce)
(per pound, delivered ton lots)
(per pound, small lots)

grade

12.467c

£71,851

£94.572

.

102.3

on




_

108.3

90.5

o?Jsnedi
bftrrel8 ot foreign crude runs,
Based
Monthly investmenf^Phfn^Prim» & \959
of "7'63j^70
dumber of
one-haBf cent
pound
<PrUne Western Zinc sold on delivered basis at centers

as

S.

flask

12.667c

12.323c

£72.696

£74.525

________

••Nickel

119.3

87.1

£227.292

12.523c

11,800c

Straits

(per

BUREAU

-Feb.
..

foods

£239.756

£74.781

Aluminum, 99% grade primary pig
Magnesium ingot (per pound)

All

commodities
Farm products.

27.927c
£230.101

12.000c

pound)

(check)

Aluminum, 99%

UNITED

Commodity Group—

Processed

York

Colbalt, 97%

Stocks

Jan.15

28.635c

30.801c

£255.443

£246.438

long ton)

(per

(per

Receipts
supply

STOCK

I

York

(per ounce, tl.

Platinum,

Total

22

New

Exchange

New

Cadmium

494~200

338,960

2,039,949

TRANSACTIONS
(SHARES):

sales

London

33.724c

33.555c

£259.263

ton)

([Antimony, New York, boxed
Antimony (per pound) bulk Laredo___
Antimony (per pound) boxed Laredo

„

TOTAL ROUND-LOT STOCK
SALES ON THE N. Y.
EXCHANGE AND ROUND-LOT 8TOCK

long

TIN—CONSUMPTION OF PRIMARY

•Jan.15

Other sales

33.654c

pound)

(per

Silver, New York (per ounce)
Silver, London (per ounce)

492,000

.Jan.15

sales

Round-lot purchases by dealers— Number
of shares..

Other

$124,660,797

.Jan. 15

Round-lot sales by dealers—
Number of shares—Total sales.

Short

$131,297,370

2,471,409

.Jan. 15

value

Short

$110,703,046

1,802,745
$92,607,588

.Jan. 15

Customers' other sales.
Dollar

2,569,740

$5,326

'

Number of

2,232,054

.Jan. 15

Customers' short sales-

months,

733

$5,780'

.

pound)

number of vehicles
Number of passenger cars—.
Number of motor trucks-

.Jan. 15

631

r

(per

ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)
Silver and Sterling
Exchange—

,

$3,962

585

1,041

QUOTATIONS)—

Total

.Jan. 15

Odd-lot purchases

J.

months, London (per long ton)
Zinc (per pound)—East St. Louis
§§Zinc, prime Western, delivered (per pound)

As

$4,154

579

ttThree

—

value

47,845,297

Common, East St. Louis (per pound)
ttLondon, prompt (per long ton)

SECURITIES EXCHANGE COMMISSION
Odd-lot sales by dealers (customers'
purchases)—f
Number

M.

(per

prompt

.Common,

Cadmium

380,040
32,320
304,280
336,600

.Jan. 15

sales

sales

Short

565,090

2,563,620
3,128,710

-Jan.15

Total round-lot transactions for
Total purchases.

Total

2,386,520

3,030,260

.Jan.15

sales

57,301,024

Nov.

of

■

refinery

Quicksilver

2,529,380
335,460
2,051,060

&

refinery

Lead

Gold

.Jan. 15

sales

Total

30.

INSTITUTE

.

..

Exports
ttThree

<E.
'

ttLondon,

Tin,

.Jan.15

..

PRICES

Sterling

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which
registered—
Short

47,845,297

$814,725,000

$6,078

Domestic

MEM¬

Total purchases

Nov.

at
—

Month

—

52,060,775
$891,122,000

$4,224

customers

PURCHASES

____________

January:
Copper—

111.10

OEL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

51,688,432

$881,613,000
51,688,432

._

Total

4.53

-Feb.

Group

Utilities

2,800

1,275

4.14

-Feb.

Baa

4.19

-Feb.

Aa

9

5,060

of

;__

Industrial

METAL

A

(tons)

omitted)

customers—Month

91.62

-Feb.

3,646

:;:r

omitted):

Ordinary

89.23

9

-Feb.

1949

(000's

ultimate

INSURANCE

(000,000s'

4,614
2,925

consumers—

88.40

-Feb.

-

Average corporate

Unfilled orders

ultimate

83.53

81.29

.Feb.

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds

77.86

9

.Feb.

GroupIndustrials Group

9

-Feb.

.

Utilities

Production

to

ultimate

of

LIFE

4,117

5,351

INSTITUTE—

November

INSURANCE

OF

93.97

Feb.

.Feb.

LIFE

11,506

3,037

.___

__

sales

from

8,570

11,656

4,176

•

._

November

Number
.Feb.

Baa

-

of

Revenue

2,350

9,684

12,564

-

_

ELECTRIC

Month

101.125c

.Feb.

COMMODITY

credit

Kilowatt-hour

11.500c

3
3

AVERAGES:

.

MOODY'S

_

12.000c

13.000c

8,923

2,683

'

9,945

.

DAILY

A

Public

credit

33.775c

3

14,237

9,687

2,704

____________

32.950c

3

loans

—

12.000c

.Feb.

Government Bonds

Railroad

loans

31.450c

.Feb.

Aaa

Public

modernization

33.125c

-Feb.

at

PRICES

Group

and

3

EDISON

34,080

16,669

*

goods

3

.Feb.

—.

at.

31:

credit

—

3

11.800c

term

__

consumer

Repairs

$45,586

38,723

RE¬

SERIES—Esti¬

credit

credit

.Feb.

at

FEDERAL

December

of

as

Feb.

Average corporate

Railroad

THE

intermediate

.Feb.

(New York)

Aa

and

consumer

Personal

at—

Louis)

BOND

millions

Other

QUOTATIONS):

at

OF

SYSTEM—REVISED
short

Automobile

$66.41

$42.50

$50,379

OUTSTANDING—BOARD

GOVERNORS

Noninstalment

(primary pig.

tin

Straits

M.

in

271

37,237

tons)
100

Instalment

2

-Feb.

—

at

York)

(New

Lead

A

242

copper—

Domestic

Export
Lead

(E.

281

155,248

7,541

tons)

America

CREDIT

SERVE

Total

ton).

(per gross

Electrolytic

13,292,000

CONSUMER

mated

;

METAL

14,308,000

PRICES:

(per lt>.)

(per gross

Scrap steel

106

DUN
.Feb.

COMPOSITE

Finished steel

112

OF

(in 000 kwh.)

(COMMERCIAL

BRADSTREET, INC
IRON

1

INSTITUTE:

ELECTRIC

192,485

205,350

$52,046

tons)

.•

212,891

10,243

(net

tons)

(net

42,146

America

110,490

39,482

Central

Undesignated
SYSTEM—1947-49

195,777

16,590

fturope

429,000

70,941

154,419

(BUREAU OF MINES)—

and

8,865,000

76,481

91,404

144,471

—

tons)

North

Jan.30

69,666

83,274

(tons)

December:

of

exports

To

MINES):

output all grades
of

of

end

Jan.30

EDISON

'

9,386,000

*

(tons

at

S.

21,822,000

Pennsylvania anthracite (tons).

29,026,000
23,722,000

—

pounds)

Month

U.

107,877,000

Feb.

Federal

30,355,000
17.284,000

INSTITUTE, INC.—Month of

COAL EXPORTS

154,541,000

Feb.

construction

State

Slab

Stocks

construction

47,000

29,421,000
25,458,000

(barrels)

general freight transported
(in tons)

Shipments

NEWS-RECORD:
U.

17,000

*

—

January:

582,456

ENGINEERING

—

17,000

234,764,000
209,518,000
25,199,000

■T-

I—;—

of November:

carriers

2,000

ENGINEERING

214,248,000
•27,439,000

TRUCKING ASSOCIATION, INC.—

AMERICAN ZINC

freight loaded (number of cars)
Jan.30
Revenue freight received from connections (no. of cars)—Jan. 30

Total

AMERICAN

stocks

•241,704,000

27,601,000

'

Revenue

CIVIL

Year

Ago

237,067,000

_

all

Month

RAILROADS:

Month

209,449,000

—

(barrels)

output

(barrels)

199,905,000

—

oil

crude

gasoline output (barrels)
Benzol output (barrels)
Crude oil imports (barrels)—4—..—;
Refined product imports (barrels)
Indicated consumption domestic and

—Jan. 29

at
at

AMERICAN

7,107,135
8,140,000

Previous

Month

J

Natural

Decrease

Jan. 29

Residual fuel oil (bbls.)

8,227,000

7,067,825
8,369,000

7,190,160

of that date:

(barrels of 42 gal¬

Total domestic production
lons each)

203,184.000

(bbls.) at
fuel

2,371,000

2,727,000

are as

November:

Domestic

output

Distillate

•2,683,000

INSTITUTE- -Mont

PETROLEUM

AMERICAN

of

Kerosene

Kerosene

§2,690,0(10

of quotations,

cases

—

output—dally

each).
to

runs

Gasoline

.Feb. 13

(net tons)

INSTITUTE:

PETROLEUM

oil

in

or,

either for the

are

Latest

83.7

95.7

*94.2

of

and castings

ingots

Crude

production and other figures for the

cover

Ago

§94.4

Equivalent to—
AMERICAN

Thursday, February 11, i960

.

Year

Week

.

Dates shown in first column

month available.

Previous

Week

INSTITUTE:

operations (per cent capacity)

following statistical tabulations

latest week

ChronicleK

Financial

The Commercial and

(694)

•Revised figure. tEstimated totals
based
of primary, 95% of

end

of 1957.

on reports from
companies accounting fpr
secondary tin consumption in 1957 and 97% of total stocks
UDomestic five tons or more but less than
carload lot boxed.
SJDelivereu
were
freight from East St. Louis exceeds 0.5c.
••F.o.b. Fort Colburnq,
sbttluded.
ttAverage of daily mean and bid and ask

l*g session

of

London

Metal

quotations per long tcsa«l

Exchange.

jnoFn-

Number 5924

Volume 191

.

.

The Commercial and Financial Chronicle

.

(695)

pending the FCC decisions

The

•

Continued from page 2
hv national networks, newspapers,
department stores, or - tightly ^or¬

with

overall

•

of:the two larger net¬
(NBC or CBS) ,and (3) a
VHF signal. In a few areas of the
country, companies televising on
one

tion in a

(See table

good market.

below.)
v
',
The net sales after deduction of

of Spring¬
Broadcasting Cor¬

commissions,

agency

field Television

Television

and

Radio

broadcast¬

ing
indicates
that
the
market
prices on these stocks' Currently
range

(from

high of 24.6 times

a

the net asset value

to

price of

a

2.11 times the net asset value and
some
11.3
times 1959 estimated

poration, are given, below, and
demonstrate the significant growth
and acceptance in its area, v ,.y;v earnings to as high as 44.1 times
1959
earnings.
There are
Generally speaking, investors in the
this field accept the fact that there many compensating factors land
have been no half-way perform¬ adjustments which must be un¬
Either the stations £have
been extremely successful or have
been complete failures. Successful
stations have been sold at prices
related to their gross
revenues
ances.

depreciation, contract termi¬
nation, etc.'have made net earn¬
ings not comparable
in all in¬
stances. The publicly quoted stock
of Gross Telecasting Corporation
since

(WJIM Radio-TV)'puts a value of
$8,000,000 on .a company -doing
$2,750,000 gross sales a year.
Up to this time, the three ingre¬
dients of success have been (1) a

large

sufficiently

independent

market, preferably in the first one

hundred, as defined by the adver¬
tising agencies, (2) an affiliation
times net

>4.8

tangible assets'$10
20.0 times the $1.45 earnings

operating
nothing.

works

One of the few the UHF
frequency have been suc¬
nublicly owned stations upon
cessful, notably Scranton-Wilkeswhich operating figures are avail¬
Barre, Pa., South Bend, Ind., and
able is owned by the Gross Tele¬
Springfield, Mass. In these three
casting Corp. (WJIM) in.Lansing, areas the other
ingredients "for
MjCh
the center of the State success
have been present—net¬
whose area is not dissimilar to that
work affiliation and a
large inde¬
covered by Springfield Television
pendent market.
Broadcasting J.Corp., .and whose
A
brief
analysis of the five
figures I cite since they are pub¬
publicly quoted stocks of com¬
licly available < and indicatethe
in
potentials of a good television sta¬ panies ; engaged exclusively
ganized syndicates.

dertaken

in each

dividual

of these in¬

one

situations.

However,

a

composite of all of them, for what
it is worth, does reveal that the
market

value

of

these five

problems,

•

com¬

panies is equal to 4.8 times the net
tangible assets and 20.0 times the

the

on

about

management

speculation

solution

of

the

on

nomic Committee of the Congress
of the United States, with Minority

ultimate
concerns

only Worcester. ' The basic earn¬
ings of the heart of the Company
should not be overlooked
because,
in the
meantime, young and
ag¬

gressive

could

management

velop ' the
market

Springfield

even

f

more

-

de¬

Holyoke

profitably,

and Other

about $4 per share. (This based
the industry's estimate of

by

station

a

Documents, Government Print¬
ing Office, Washington 25, D. C.
(paper).
ciations
Gale

rate

accomplished.

immediately

Qualified

believe that

ers

be

the

observ¬

satellite sta¬

tions and

translators will shortly
net earnings and in
the long run add
substantially to

add

to

of

the

the overall earning power by not
only attracting local revenue but
-also through increasing the na¬

Asso¬

Geographical, index

Research

Detroit

American

Co.,

Book

—

Tower,

26, Mich., $15.

Encyclopedia of Job Descriptions
in

Bankings-Louis rFalvey—Per¬
Evaluation
Wisconsin

.Institute,
161
Avenue,
Mil¬

,

waukee

earnings
doing $1,500,000 in
year.) If Worcester

could

■—

3, Wis.r (cloth).

Finnish

Economic

sallis

Review—Kan-

Osake
Pankki, - Publicity
Department, Helsinki, Finland. /<
-

-

France,

Troubled

Ally:

De

Gaulle's Heritage and Prospects—
Edgar S.*Furniss, Jr.—Council on
Foreign Relations, 58 East 68th

recent

earnings.

tional card rate.

ratio

produced by the

com¬

range 25

trading)

share

:

Substance

1960 — Con¬
Socialism —

and

reflects

the

strides

tremendous

this company has made in the last
two

in paying

years

and

shows

off its debt
healthy .financial

-a

condition where most of its plant

investment

and

has

expansion

been financed internally. (Net cur¬
rent liabilities-reduced from'
$377,-.
to

=

minimum

International Effects of U. S. Eco¬
nomic

stein

Policy—Edward

M.

Bern¬

DIVIDEND

to 29 in obviously limited
should be an excellent

conditions

one-tenth

cut

to

loss

Worcester

of

ran

has

the

up

as

necticut
the

River'"Valley

last

they

32 to

and the northern Con¬
area.

quarter

of

In
1958

situation

in Worcester, of
is quite different from that
of the Springfield area. The Wor¬
The

course,

which

of the

solution

the
lem

dependent

is

of local TV.

upon

overall prob¬

The speculative

value here will be determined by
the FCC when it decides whether

transferred to UHF frequency

Corporation, 41 h e
station in Worcester, Mass.

or

how,

had

losses have
of

profits

not the whole TV service is to

accumulated

-losses

running in excess of $700,000 and
which was then off the air. These
tax

local

be

Broadcasting
UHF

its market indicate itl

on

potentially a bigger market
than
the
Springfield - Holyoke
area, the translation of this into

or

merged .with,

been

big factor in
savings and upping the flow

cash

a

diverted to

retire¬

debt

ment.

As now-operated, WWOR-TV
■in
Worcester, by picking up many

Banking
States—

Press Company, 15 East 26th
Street, -New
York
10,
N.
Y.
(cloth), $6.

(paper).

>

Silver Market in

February 2, 1960

of

and

one

clared
pany,

1959—44th An¬

nual

review—Handy & Harman,
Street, New York, N. Y.

82 Fulton

(paper).
United

States

Dollar:

on

a

lishing Company, 75 West Street,
New York 6, N, Y.
(paper), $25.

per

Company

(Incorporated)

cent was

y

^

Racine, Wis., February 8, 1960
A
dividend of
$1.75 per share on the 1%
Preferred stock and 11.375 cents per share on

6^%

Second

Preferred

pany has been declared
to holders of record at

quarterly dividend

Preferred Stock of

or

DIVIDEND NOTICES

stock

three-quarters

the

Deflate

Devalue—Franz Pick—Pick Pub¬

March

12,

stock

payable

of

this

April

close

the

of

Com¬

1,

1960,

business,

1960.
L.

de¬

T. NEWMAN,

Secretary.

this Com¬

payable April 1, 1960 to Stockholders

of record at the close of business March 18,
1960.
Transfer books will remain open.

Checks will

be mailed.

JOHN R. HENRY, Secretary

single

Salisbury

.

On

been

is

then expanded on-Channel

Businessman's

monthly
a

Monetary
and
for the United

outlet.

statistics

Greenfield

preferred

of the local live studio

these

po rati on

sively expanding its market and
territory coverage by Channel 22
and when the
Springfield station
was
operating
profitably
they

Proper
System

J. I. Case

major local or re¬
gional interest. The monthly loss

field Television Broadcasting Coraggres¬

Power Authority: Five Years of
Progress—Power Authority of the
State of New York,
Albany, N. Y.

the

.

been

Brookings Institution, 722 Jack¬
son
Place, Washington 6, D. C.
(cloth), $10.00.' :
.yv .*/,■>/ ;

NOTICES

$38.50

$192,000; vgoodwill reduced by cester area receives five -good
about $65,000.) . ,
•
\ V
>
..j; VHF, ^signals carrying all three
The management of the Spring¬
network programs and while the
has

Politics of National Party Con¬
ventions—Paul T. David, Ralph M.
Goldman and Richard C. Bain—

—

With

and remotes of

under

Com¬

—

Peterson

—

29.00

2

California

Uncle

AMERICAN
-r

to

Russell S. Bock

Clearing House, Inc., 4025
Avenue, Chicago
46, III. (paper), $4.00.
West

businessman's risk.

changing many of its films has
kept
programming
costs
to
a

—

Label; Perils of
Atlas; Restoring Puerto
Rico
Water
Resources
Tools of Learning, etc.—Founda¬
Authority
Annual Report
tion
for
"Economic
Education, —Puerto
Rico Water Resources
Irvington-on-Hudson, N. Y., 50c.
Authority, San Juan, Puerto Rico
Playing

$48.00

>-$77.00

only 59,795 shares of
Springfield Television Broadcast¬
ing Corporation stock outstanding.
The Dec. 30, 1959 balance sheet

Guidebook

Taxes
merce

ald

February,
articles
on

taining

CAN COMPANY

are

England: Quarterly Inven¬
tory of Economic Research—Re¬
search Department Library, Fed¬
eral Reserve
Bank
of * Boston,
Boston, Mass. (paper).

following arithmetic:
per

_

There

New

Freeman,

Springfield Television
Broadcasting Corporation has net

tion

Association, 12 East 36th
Street/New York 16, N. Y. (paper).

Edited by James Washington Bell
and Walter Earl Spahr—The Ron¬

The

posite analysis, would result in the

Bankers

Street, New York 21, N. Y., $5.75.

Superintendent of Docu¬
earnings of ments, U. S. Government Printing
Washington
25,
D.
C.
$1.45 per share for 1959, the man¬ Office,
agement will probably pay a mod¬ (paper), 300.
tangible assets of approximately est quarterly dividend in 1960. It
International Financial Develop¬
$10.00 per share. Working with seems reasonable to expect a fur¬
ments— Advisory Committee on
the $10.00 as being the net tangible ther
improvement in net of 25%
Special Activities, American
assets and $1.45 a share as the 1959
per year in : 1960 and 1961.
The
earnings, applying the capitaliza¬ stock at the current market (1959
most

f

1960

Encyclopedia

on

develops as its territory could,
the $4 per share earnings could be
increased to $6 or $7. If the man¬
agement of Springfield were not
expanding their territory cover¬
age through satellites and trans¬
lators, earnings at the $4 ^per
share

Views—Superintendent

of

bringing down to net earnings
sonal
something in the nature of $250,West
000.. to
$300,000, or somewhere

gross sales per

Price

and

do

can

television ■'»

Growth

Levels—Report -of- the Joint Eco¬

Obviously, in this venture, all
the

Employment,

which

39

by directional antennae
mileage separations it will

and

carve

Worcester out of the metro¬

Appraisal

of

Business and

Stock

Prices—Nine-page report included

yj&i ALUS-CHALMERS

in Business & Investment

Timing
Service—Eight weeks' trial sub¬
scription $5 (annual subscription
$60)—Anthony Gaubis & Co.,s122
42nd

East

Street, New York

MFG. CO.
COMMON

DIVIDEND

A quarterly dividend of thirty-seven
and one-half cents (37J^c) per share

17,

N. Y.

ica—Edwin

Lieuwen—Council

pany

has been declared payable March

1960 to shareholders of record at
the close of business March 1, 1960.

■

Foreign

Relations, 58 East 68th
Street, New York 21, N. Y., $4.75.
Business

&

*

4.08%

Credit Outlook—Sur¬

Opinion—Credit
Commission,
American
Bankers Association, 12 East 36th
Street, .New
York
16,
N.
Y.
(paper).
<! of
Policy

vey

■

v

The Worcester division is pres¬

ently

operating

signed

on

an

program

a

economical

de¬

basis

Outlook

—

Harris

Corporation

>of

*

has been declared

Corporation
payable

.March 15, 1960, to stocki holders of record at close

of business

February 26,

1960.
C.Allan Fee,
Vice President and Secretary

A. D. Dennis,
i

and

Trust

No. 23

common

stock of this

Transfer books will not be closed.

Secretary

Savings Bank, 111 West Monroe
Street, Chicago 90, 111. (paper).
Carnegie

DIVIDEND

the

on

*

of business February 19, 1960.

Business and Money: 1960 Review
and

PREFERRED

A regular quarterly dividend of one
dollar and two cents ($1.02) per share
on the 4.08% Cumulative Convertible
Preferred Stock of this Company has
been declared, payable March 5, 1960
to-shareholders of record at the close

,

Banker

VHF

an

share

31,

on

from

if

A dividend of 62 Vi4 per

*

Arms and Politics in Latin Amer¬

all

markets,

i Common Dividend No. 161

Stock of this Com-

the Common

on

system
is the conclusion
their present studies.

politan

INDUSTRIES, INCORPORATED

No. 143

February 3, I960

New

February 5,1960

,

•••••••••••••••••••••**

York—Annual Report—Carnegie

.

ot

WWLP's programs and inter¬
V

/

aimed

at

ation in

4

'

T

"

t Broadcasting

! NBC affiliate

:

''

,

year

Lansing
Mich.

to three years,

Springfield TV R'dcasting

Gross Telecasting Corp.
VHF TV and Radio

'

,

self-supporting oper¬

a

one

Corporation
UHF TV Broadcasting
NBC affiliate
SpringfieldHolyoke
Worcester

Population
Metro '<Area—
222,000
'497,400
'278,500
Households
64,860
140,300
77,850
Consumer Spend. Income— $438,796,000 $907,199,000 $483,302,000
CSI per
Household
I—
6,765
6,466
6,208
Retail Sales
305,475,000
623,512,000 354,682,000
Population Rank
106th
50th
83rd
—

•

■

.

CSI

90th

52nd

Retail Sales
Retail Sales

88th

48th

85th
76th,

36th

38th

51st

per

Household

WRLP-TV
Net Sales After Agency Commissions
(Springfield, Mass.)
WWLP-TV

.

1958

$1,250,000
1,040,000

1957

950,526

1956

849,246
512,124
389,793

1959 Estimated-.

1955
1954


1953


:

195.347

Corporation of New York, 589
Avenue/New York 17, N. Y.

'

•

.AMERICAN

Fifth

PHELPS DODGE

(paper).
o

MENT

Columbia'University Press: Spring

CORPORATION

Catalogue—Columbia Uni¬

1960

CORPORATION

Press,
2960
Broadway,
New York 27, N. Y. (paper).
versity

■f

DIVIDEND

Democracy is Not Enough —'John

NOTICE

Scott—Harcourt, Brace and Com¬

The Board of Directors

The Board

750 Third Avenqe, New
York 17, N. Y. (cloth), $3.95.
pany,

4

Economic Almanac 1960—Confer¬
ence

National

Industrial

the

Congress

D.

Economics-in-Action

in

Industry—University

of

sin, Madison, Wis. (paper).

share

on

the

per

capital stock of this
■

i

•

Corporation, payable March 10,

of

the

regular quarterly
31 Vi

cents

1960

to

stockholders

of record

on

February 19, 1960.

$25 par value Cumula¬

I

tive Preferred Stock, payable

M. W. Urquhart,

'May 2, 1960, to shareholders
of record

25,

the Oil
Wiscon¬

a

dividend
"

20, 1960—Superintendent of
Documents,
U.
S.
Government

Office, Washington
C. (paper). $1.00.

of Seventy-five Cents (754)

April 1, 1960, to share-

1960, and

Jan.

Printing

•

holders of record March 18,

Economic Report of the President
to

"■

the Common Stock, pay¬

of Directors has de¬

first-quarter dividend

a

*

460 Park Avenue, New
York 22, N. Y. (cloth), $7.95.
Board,

—Transmitted

day declared a quarterly
'dividend of 25 cents per share
able

Conference

clared

this

on

Board Business Fact Book—

has

April 8, 1960."":""

'

J. H. ASMANN
Vice President
•

•

February 3, I960

"

February 4,1960
••

•

& Treasurer

••••••••••••••••••a* • •

Treasurer.

40

Financial Chronicle

The Commercial and

(696)

.

.

.

Thursday, February 11, i960

WASHINGTON AND YOU

ceiling.

"/0

[This

column

is

intended to re
fleet the "behind the scene"
inter
pretation from the nation's
Capital
and may or may not
coincide with
the "Chronicle's" own
views

BEHIND-THE-SCENES INTERPRETATIONS
FROM THE NATION'S CAPITAL

]

WASHINGTON, D. C.—Perhaps
the biggest economic story in;
Washington at this time is in¬
terest
rates.
By the first of

thereabouts interest
rates may well be a Presidential
campaign issue.
August

or

is

There

—until

question about it
removes
the

no

Congress

4ceiling rate

Treasury

on

bonds

(5-years or more) the
United States Treasury is going
continue

to

culty

in

having great diffi¬

of

the

of the

sec¬

management

ond session of the 86th Congress

House

the

Ways

and

Means Committee had not set
for

date

hearings

the

on

a

pro¬

the ceiling.
However, pressure is building
up in the Committee.
posal

raising

to

It appears to be only a
of

time

held.

until

will

interest

is

matter
will

hearings

be

Unless all signs fail, Con¬

gress

raise

ceiling

the

this

rates

unlikely to

it

But

year.

the

remove

on

ceil¬

The

flexibility

4

in

debt

of

com¬

lion. That

must

a

have

EVENTS

of

management

$290 bil¬

some

is why

COMING

the

in

paid

the Congress

IN

publicly held debt of under
year has leaped from about

to

5%.

Actually

should

tirely,
in

but

this

other

Congress

the

remove

this

ceiling

year

immediate

en¬

unlikely

seems

election

or

Feb.

any

The

President's

mitted

to

for

Feb.

tion

could

be

One

ton

the

pinches

in

the

5%

interest

@£oe«*

it
borrows, then various agencies
the

of

on

former

of

"I

Stock

There

is

nation

no

of

the

world

great

as

in

there

Treasury

on

issued

are

Interest Cost

is

obligations

for

less

than

five

but

ments

years,

it is obvious that interest
in

for

the

penditures

rates

short-term

securities

$9.5

next

budget

ex¬

while

$200,000,000

or

risen

more

than

in

substantially faster
the
long-term
area.

year.

This

Thus, it is clear why the Treas¬
ury
has not tried to do any

cents

out

budget spending proposed.

marketing
yond five

for

the

with

securities
That

Treasury had

is

While

be¬

why

issue

to

than

tion,

of

organization

money

Stock

Market

of

Transactions

the

Government at ZVz%,

House

Committee

Appropriations
his

told

can make unlimited
profits (possibly thousands of dollars in
days) is explained in this clear, simple

created
D.

Understanding

interest
tion

Cannon
for

rates

Credit

PUT and CALL

the

traders and pro¬
fessionals
purchase
"buy"
and
"sell"
options (call and put) because they know
these options can make big profits for
them
and
also
can
protect
unrealized
"paper" profits on the stocks they own.

interest

and

costs

make
can

mail this

a

up

you

only

$3.M.

It

Free.

billion

more

GI

all

but

loans.

He

Therefore,

said

interest

can

In

in

the

5V2%

pay

money

tentions,

that the interest rate

support their

generally

for

on

they

short-

expect

con¬

States Govern¬

the

sets

pays,

pattern

lending,

money

Because the United States Gov¬

Securities

ernment

is

Government

our

is

market

doubt that

no

world,

the

rate

is

pays

a

factor.
is

also

being

Hill

by

argued

on

opponents

raising the ceiling,

as

of

the Amer¬

ican Enterprise Association said
in

analysis

an

of

the

pending

Dept.

The

or

A-7,

Park Avenue South, New York
18, N. Y,
Please
send
me
Herbert
Filer's Lnderstanding Put and Call Options for 10 days'

free

If

examination.

not convinced that It can
pav for Itself

nnfth!ntime^.?ver" * mTaywill
rf,turn 'it
Otherwise I

nothing.

pay

Name..,,..

#

i

*

j

!
I

ts 00

I

as

*

^

j
j
f

Address.
City-

I

and pay

you

plus the postaee charge within
10 day#
payment in full.
J

Zone....State......

□ Save

postage. Check here if you
prefer to
enclose check or
money order for $3.00. Then
we pay
postage. Same moneyback
guarantee,




annual
at

meeting and
Royal York

the

-v.

Mar. 25-26,

1960

(Chicago, 111.)

Chicago Chapter American Statis¬
tics

Association

&

Chicago

As¬

sociation of Commerce &
Industry
7th annual Mid-West Conference
at

Congress Hotel.

April 8, 1960 (New York City)
New York Security Dealers Asso¬
ciation

34th

Grand

dinner in the

annual

Ballroom

of

the

Hotel

April 8, 1960 (Toronto, Canada)
Toronto Bond Traders Association
28th

annual dinner
Edward Hotel.

at

the

King

securities

States Government money in the

April 10-11-12,1960 (Dallas, Tex.)
Texas Group of Investment Bank¬
ers Association
of America 25th

long

annual

Treasury had to "sweeten" the
yield of new issues in order to

present

get

the

of

is

the

bring
as

argued

nation

the

flation,
terest
debt

market,
statutory

of the

that elimination

ceiling would tend to
the interest rates down,

the

about

case

ready market.

a

It

has been the

to

reduce

burden
as

the

of

the

the

Federal

government

flexibility in its debt

in¬

gains

manage¬

ment program.

Some

of the

Congress,
time

of

including

Senator

Douglas of Illinois,

economics
Hubert

professor,
H.

in

one¬

and

Humphrey

Minnesota, both Democrats,

interest rates

temporary.

are

Therefore,
has

short-term

to

rates,

if

pay

it

as

is now doing, it will be
the
least expensive in the long run.

But

that

the

if

tinue

cold, hard facts

Uncle

to

pay

Sam

5%

has
or

to

so

and

their

terest
and

more

out

money

savings
and

in

persons

of

and

are

its

cause

to take

savings

loan

asso¬

accumulated

in¬

insurance

securities.

companies,

them

put

short-term

Tight

in

money

meeting

at

the

Sheraton

Dallas.

April

10-15,

1960

(Philadelphia,

Pa.)
Institute

of

Wharton

Investment

School

of

Commerce, University

Banking,

Finance

&

of Pennsyl¬

vania.

con¬

for

borrowing, it is going to
more

ciations,

ultra liberals

United

They contend that the

high

higher

the

save

Government

banks,

"Liberal" Viewpoint

will

run.

only

gains confidence

future control of in¬

and

bills, that issuance of short-term

is

al¬

April 28-29, 1960 (St. Louis, Mo.)
St. Louis

Municipal Dealers Group
Spring Party: Luncheon at Mis¬

souri Athletic
and

Club, cocktail party
banquet at Park Plaza Hotel,

April 28; Field Day at Glen Echo

Country Club, April 29.
May 9-10, 1960
Association
of
Firms

(Atlanta, Ga.)
Stock
Exchange

meeting of Board of Gov¬

ernors

at Hotel Atlanta

Biltmore.

ready

pinching hard in the
housing field. That is why more
and

more

members of

Congress

Attention Brokers and Dealers:

TRADING MARKETS

World War I Heritage
To your favorite bookseller,
CROWN Publishers,

28th

convention

Biltmore.

Capitol

It

ciation

basic

some

to

ment

6-9, 1960 (Toronto, Can.)
Prospectors and Developers Asso¬

Hotel.

They argue, with

that the United

March

rate of 5%%."

coupon today.

419

Mid-

Bellevue-

which

Senator

to

the

money
market.
Rapid refunding of many issues,

Paul H.

required

rates.

the biggest market in the

Because of the ceiling, lenders

dried

housing loans, and has
FHA

interest

there

know that pressure is

ment,

of

Fill

this
Con¬

cannot relend it at the
It

ques¬

this

in."

has

the

it

psychological inducement
higher interest rates.

terms.

ceiling is designed to hold down

interest

a

the FHA program is now un¬
workable "because the Govern¬

use

fortune.

examine

rate

crippled

profits, how to use options to
protect profits on your stocks, etc.
book

and

$12.5

took

they

short-term

you

we

own

"Because

The head of the House
Ap¬
propriations Committee went on
to explain
that the mounting

do it and
how you too can make maximum
profits
on
minimum investment.
It shows also
how
you
can
sell options on your own
stock to increase income, where and how

you

added:

spent

gress

the subject.

to 7 %.
Cannon.

Mr.

answering his

Administration

Thousands of successful

And

asked

he

than

This

have

goes up

tion,

by HERBERT FILER

help

to

7%. The Mis-

Then

how to
instead

Produc¬

Associations

farmer's interest

Options

to buy and sell puts and
calls,
them
to
make
capital gains

the

sourian said this meant that the

"Why?"

how

said

annual

at

Treasury in 1959, meant that the

the

Admin¬

increase in interest rates.

been advanced to

shows

during

Roosevelt

Chairman.

book

colleagues

istration, had received notice of
an

This

many

is

re¬

short-term

Franklin

book

on

bill

a

sociations,

hundred dollars), you

authority

research
in

asserts

interest rates to increase in the

90

#1

ceiling will not
rates

rate ceiling.
is maintained by
experts that the ceiling

However,

sharply assailed the Ad¬
ministration proposal to lift the
ceiling. They contend that the

elements

year.

that the Production Credit As¬

How with a put or call option, risk limited
to
the cost of the option (maybe a few

the

a

non-partisan

the

move

have

has been

than

analysis of the proposals to

cooperatives,

borrow

the

down, the
Enterprise Associa¬

12

a

avoiding

Treasury

more

interest

American

did

short-term

ceiling for bonds,

Critics of the

bring

day Chairman Clarence Cannon

Limited Risk-Unlimited Profit

the

as

doing for

for

Treasury

with

thus

about

not all agencies get loans nearly
so
low. For instance, the other

on

just

increase

to

the

rate

dollar

mean

every

electric

the

fiscal

current

will
of

instance,

from

5%

the

but

borrowing

interest

starting July 1 call

billion

36th

dinner

Stratford.
continued

rates

certificates,

have

years.

Exchange!"

Winter

,

Rising

Tex.)

Club.

Philadelphia

a

:

(Houston,

19, 1960 (Philadelphia, Pa.)
Investment Traders Association of

is

the

as

The 1960 budget provided for
$9.3
billionin
interest
pay¬

ceiling
that

no

Country

the

that

debt

a

1960

Feb.

Sam pays.

its

Because

did NOT fall for that old chestnut about

certainly

buying the Brooklyn Bridge!—I bought the New York

years,

19,

Stock and Bond Club of
Houston
annual outing at the Brae
Burn

considerably less than Uncle

United States.

Flexibility Essential

Windsor Restaurant.

Feb.

Au.tN.jn,

money

Government, under acts

Congress

carrying

$50 billion to $60 billion.

(Los Angeles,
Calif)
Security Traders Association of
Los Angeles dinner
meeting at the

fcpg.

Government's debt policy is the
fact that the Treasury has to
pay

Plaza.

Feb. 12, 1960

applied to the debt.

of

(Boston, Mass.)

Security Traders Associa¬
Winter Dinner at the
Shera¬

favorable

were

$4.2 billion surplus which

a

12, 1960

Boston

Congress last month

said indications

(Chicago, III.)
Chicago annual

of

sity Club.

sub¬

budget

1960

Club

meeting and dinner at the
Univer¬

decrease in the

a

11,

Bond

ahead.

year

public debt during the coming
year looms fair, providing Con¬
gress will hold down spending.

history

one

INVESTMENT FIELD

should at least raise the ceiling

for

the

next year or
two is tremendous. The amount *
of

in

huge debt of

our

was

turn around and lend the money

volume

due

has

generation.
The
Treasury

of

ing entirely.

ing

October, which
highest rates

the

Prospect of

another week

began,

of

Government

national debt.
As

in

notes
one

j

!
•

j

4*4%

interest

rate

Botany Industries

ceil¬

Indian Head Mills

ing

grew out of the First World
War. In 1917 the Second

Official Films

Liberty

Bond Act authorized the Treas¬
ury to issue bonds up to 4%.
The Third
Liberty Bond Act
amended this by

increasing the

amount to

be

borrowed,

and by

raising the rate to 4y4%.
The
Liberty Bond Act kept
rate the
same, but
increased the net yield of the
bonds by
increasing the income

Fourth

the interest

tax

exemption

for

those

who

bought them.
After

World

Southeastern Pub. Serv.

Carl Marks
FOREIGN
20 BROAD

&

do. Inc.

Our New

York telephone

SECURITIES SPECIALISTS
STREET

TEL: HANOVER 2-0050

•

,

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERNER & GO.
Investment

I

interest

Securities

10 Post Office Square,
Telephone

War

number it

CAnal 6-3840

HUbbard

2-1990

Boston 9, Mass.
Teletype
BS

69