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The COMMERCIAL and FINANC
FEB li) i960
usiness
administration
library
ESTABLISHED
1839
Reg. U. S. Pat. Office
Volume
Number 5926
191
AS WE SEE IT
Editorial
At
New York 7, N. Y.,
beginning of his recent farm message, the
President "once again", called the attention of Congress
to "a most vexing domestic problem—the low net in¬
come of
many of our farmers and excessive production
of certain farm products, largely due to economic dis¬
tortions induced by years of Federal interference." "It
defies common sense," the President adds, "to continue
to encourage, at the cost of many millions of tax dol¬
lars, the building of ever larger excess supplies of. prod¬
ucts that, as they accumulate, depress farm prices and
He then calls
particular attention to the wheat situa¬
to say,
"this program further distorts wheat markets
supplies. Its only future is ever higher cost. Inexo¬
rably, it generates ever larger surpluses which must be
and
expensively stored. Ultimately, if our government does
not act quickly and constructively, the danger is very
real that this entire program will collapse under the
pressure of public indignation, and thousands of our
farming people will be hurt."
^
The
4.
He is
i
r
People Have
a
Right
necessarily employs
Analysis shows much of the stock market became overpriced
these
Security
THIS
IN
earnings estimates and capitalization
and/or the amount paid for protection against price
rates
considerable number of sound
a
available at reasonable prices. As for
are
the future, the investor is
dangers of price inflation
depicted
facing the dilemmatic
as
very
significant drop in stock prices,
and is advised to purchase stocks selling at reasonable mul¬
tiples of earnings such as oils and food chains. Airlines are
or
By
most readers have been exposed to
now
railroad strike and
a
other
ous
factors
discussed
a
wide
Traders
journals.
in
areas
ferent
than
be
which
those
dif¬
usually
are
have something
new,
are
even"
is
stock
to
predict
begin with
now
is.
some
Candid
12
the
unavoidable.
position
taken at
appear
in
Housing,
State and
of
the
the
When
a
stock market
such.
We all know
concerned
tend
it
ping,
as
the
of
food
chinery
he
PICTORIAL
we are
to
move
also
together to
a
certain
a
aware
whole is
on
the downside.
This is
are
chains, mining, and industrial ma¬
all examples,
(Continued on page 27)
Boston
State,
SECTION.
and Public
Municipal
STATE
and
AND
MUNICIPAL
Lester, Ryons
So.
623
DISTRIBUTORS
&
Co.
Street, Los Angeles 17,
Housing
Agency
Bonds and
Members New York Stock Exchange
BONDS
Associate Member American Stock Exchange
Members Pacific Coast Exchange
Offices
SECURITIES
CHEMICAL BANK
Hope
California
of
in
Claremont,
Corona
del
Mar,
Bond
Oceanside, Pasadena, Pomona, Redlands,
THE FIRST NATIONAL CITY BANK
COMPANY
*
Burnham
BOND DEPARTMENT
MEMBERS
30 Broad Street
15 BROAD
New York 15
NEW
and
Company
YORK AND AMERICAN STOCK
STREET, NEW YORK 5, N.Y.
Dl 4-1400
TELETYPE NY t-2262
CABLE! COBURNHAM
Chase Manhattan
Monica
OF NEW YORK
Inquiries Invited
on Southern
California Securities
EXCHANGES
•
Department
the
Riverside, San Diego, Santa Ana,
Santa
p
Notes
Encino, Glendale, Hollywood, Long Beach,
NEW YORK
)
as
dramatically evident from the experience of 1959
when a great many issues declined or remained
virtually unchanged while the averages were ad¬
vancing to new highs. Oils, airlines, sulphur, ship¬
one
market
Winter Dinner
today's
UNDERWRITERS
INVESTME NT
;
underpriced.
are
,<
HAnover 2-3700
TRUST
as
Municipal
Securities
telephone:
implicit
now
the market
Dr. Robert H. Wessel
writers try to sidestep this
seems
current
photos
Feb.
on
some
it
me
the
assesses
ISSUE:
where
going should
sort of an estimate of where
Although
question, to
Association
is
rates
I view stocks
that they often pur¬
sue their own particular paths.
Thus some shares
fall during rising markets while others rise when
belief that any at¬
my
market
us
extent, but
to say...
It
capitalization
market levels.
that the prices of the many issues with which we
may
though only very slightly new,
tempt
compares
too
low, stocks
of stocks not
en¬
countered,; areas where I
it
time, earning
share change so that the
of
apply these standards to today's
market.
Before so doing, however, it is well to
point out once again the often repeated statement
that what we are talking about is really a market
my
somewhat
reality
overpriced when either earnings
optimistic or capitalization rates
too high.
By the same token when prospects are
overly depressed or when the capitalization rate
Rather, I shall empha¬
may
in
passage
shares
Let
views
the
and
or
consider
is too
those
prices
forecasts
the
the reader by bela¬
boring these much worked over
size
that
properly priced when realistic estimates of future
earnings are capitalized at reasonable rates.
I
Consequently, I will
Ideas.
With
estimates
in these
bore
not
items.
power
been
in
standards
of individual stocks and levels of the market
as a
whole should be evaluated in terms of the
earning
numer¬
have
of
identical share at different times represents
vary¬
ing real values. It seems to me that both, the prices
variety of commentary on the stock market out¬
look for 1960. Earnings
prospects, the relationship
between yields on stocks and bonds, the
possibility
of
misleading because
power and net worth per
conservative bent.
a
sort
standards
unlike
suggested for the speculatively inclined and convertible bonds
for those with
some
to follow his
U. S. Government,
Public
Copy
are, thereby enabling the reader
analysis without doubt or confusion.
Probably the simplest and most widely used of
these standards is historical experience.
Obviously
when viewed in this light the market is
very high.
Despite its simplicity, however, this standard is
in terms of unrealistic
columns of this and many other
people have every right
to expect the Congress to move promptly to solve situa¬
tions of this kind.
Sound legislation is imperatively
needed. We must quickly and sensibly devise the present
program to avoid visting havoc upon the very people
this program is intended to help." He, himself, favors
some
program which would "ultimately free the farmer
rather than subject him to increased governmental re¬
straints." One is entitled, so it seems to us, to expect
such pointed remarks to be followed by constructive
suggestions to Congress for the development of a sound
agricultural policy which would release the farmer from
the restraints now imposed upon him and the taxpayer
from the horrible burden current programs lay upon
him. Failure to do some such thing
(Continued on page 24)
PICTURES
a
help him judge whether it is too high, too
low, or
at a reasonable level.
Any such discussion is most
meaningful when the writer explicitly states what
University of Cincinnati, Ohio
thoroughly
that the "American
sure
Cents
Longer Term Prospects
By Robert H. "Wessel, Associate Professor of Economics,
investment values
tion, noting that the Federal Government now has about
$3.5 billion tied up in this grain. "Day by day," he goes
on
And the
inflation. It also insists that
farmers."
our
Price 50
Today's Stock Market Values
the very
endanger the future of
Thursday, February 18, 1960
Bond Dept.
Teletype: NY 1-708
New
York
Correspondent — Pershing
BANK
&
Co.
HAnover 2-6000
Net Active Markets Maintained
Underwriter
•
Distributor
To Dealers, Banks and Brokers
Dealer
ESTABLISHED
1832
securities
Members
Investment
%,
- •
Securities
New York Stock
American
Stock
Exchange
CANADIAN
canadian
T.L.Watson &Co.
Block
BONDS & STOCKS
Inquiries Invited
Canadian Exchanges
Exchange
CANADIAN
FOR COMMUNITY
DEPARTMENT
Teletype NY 1-2270
25
BROAD
STREET
MunicipalBonds
Commission Orders Executed On All
DIRECT
WIRES TO MONTREAL AND TORONTO
PROTECTION
Dominion Securities
MUNICIPAL BOND DEPARTMENT
NEW YORK 4, N. Y.
FIRST
gouthWCAt COMPANY
DALLAS
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
•
PERTH AMBOY
Corporation
Goodbody & Co.
2 BROADWAY
NEW YORK
m
1 NORTH LA
SALLE
CHICAGO
ST.
40
Exchange Place, New York 5, N. Y.
Bank
.
Teletype NY 1-702-3
WHitehaU 4-8161
of
America
N.T.4 8.A.
San Francisco
Los Angeles
2
The Commercial and Financial
(754)
The Security I Like Best...
Brokers, Dealers only
For Banks,
Cover the Entire Nation
A continuous
Call "HANSEATIC"
Take
advantage
wide
network
of
and
service
blanket
MITCHELL JAY
States.
trading
problem, don't limit yourself to
regional service. Our large trad¬
ing
department and
extensive
facilities not only broaden your;,
have
a
potential
markets—they also
sure
of accurate executions.
you
as¬
In
that.
dren
the
*
Exchange
WOrth 4-2300
lieve
Teletype NY 1-40
'
BOSTON
•
Private
CHICAGO
•
PHILADELPHIA
to
Principal Cities
sions
re¬
of
Corpora¬
Mitchell Jay Bayer
The
GROSSMAN
& CO.
INC.
Members
V.
JT.
Security
Dealers
Ass'u
first
the
the
of
year.
poration turned in a rather dull
performance in recent years. A
bitter proxy fight unseated the old
management who were able to do
little in the
way
of converting
be made.
BONDS
Bids
on
mer
Chairman
took
Odd Lots
over
interests
pany's
Exchange Place, New York 5
WHitehall
Rhone:
Teletype No
3-7830
manufacture
service
and
industrial equipment.
a
LYNCHBURG, VA.
L.D 39
Wire
expanding
add
share
It also held
Micro Path
divisions.
25
earnings.
.*
on
over
Industrial
United
in
ductors
rectifiers
..
F,
feel he will be
pany
company
was
,
'
1959.
Its
resources.
lation
Huntington
Diversa,
its
committee
utive
Gira
industry and
was
North
American
Inc., through
Com¬
network of
a
Canada, the U. S., and
Europe, is' in
constant
touch with
of Canadian investment
possibilities
—
and
government
municipal issues,
corporate
bonds
and stocks.
Nesbitt,
pany
in
their
hands
enced
The
ton
President
has
Gira
arid
.
and
Com¬
or
corporate
Canadian
investors
transactions,
rent
of
assets
total
assets
ending
sales
nish any information about Cana¬
with
net
dian
over
$2.4
be equally glad to
fur¬
investment.
mately
NESBITT, THOMSON
AND COMPANY, INC.
25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4
BOSTON 10
the
to
1
a
Lewis
o
s
s
$369,566
.
o
f
was
/Vs
$272,715 in the second
Third quarter operations
a net profit of $407,057.
Chief beneficiary ^of these gains
is Diversa's $1.25 cumulative, con¬
vertible
income
per
cents
share
per
is
dividends.
of
taxes
as of Jan. 1, 1960. This
currently available for
share
approximately
price
of $26
$40
after
preferred stock which has
dividend accumulation of $2.81 Vi
stock
until
mon
This is approxi¬
rminon.
95
a
1960 indi¬
million
30,
over
half
plus
March
will
into
1968
advance
the
capitalization
its
call
accumulated
Convertible
offers
rate
one
new
of
as
r
;
no
unless dividends
prior
earned
are
circumstances
solicitation of
a
»
I
r
.
•
.
i
-i
.
an
'
'
offer
<
J !
to
r-
Investment
to
to
Oct.
nearly
be construed
bur,
'
Bankers
in
Attracted
tax credit,
In
Dallas
C.
Finance
,
Companies
total
a
by the close
to this deficit
Murmanill Corpoacquired over
70% of the outstanding common
stock from the Glasscock family.
Murmnnill is
owned
by several
individuals
and
is
headed
by
a
ratiorir of
Consumer
giant rig, Mr.
$5 million
We
seek for retail off-street placement blocks' of inactive
preferred
or
stocks
common
Murmanill
1959,
re¬
of
dividend-
,
paying small-loan companies, sales
finance companies, oV factors.
ALBERT J.CAPLAN &C0.
Members:
Boston
Phila.-Balto.
&
Pitts.
Mann.
April
Stock
Stock
Exchange
Exch.
(Assoc.)
1516 LOCUST ST., PHILA.
2, PA.
the company
Bank
&
by greatly
interests and re¬
assets:
Trust
Petroleum
Chicago
•
City
Company, United
BOUGHT —SOLD
-
L. A. DARLING
Gas
Comoany,
Rich
Plan " Corporation,
Simi-Vallev
Development
Company,
and
American ' Acceptance
Corpora¬
tion. Acquiring these assets at cost
than
their
values,
much
higher
Diversa,
Inc.
'
'
♦
a
City Bank & Trust
(88%-owned) with de¬
com¬
at
the
to
are
1%
to
resurn£d
1,
1960.
Having
full year's divi-
confirm
growth
M0REUND 8 CO.
anr
an
Members
Midwest Stock Exchange
Detroit Stock Exchange
1051
Penobscot Building
DETROIT 26, MICH.
offer
to
sell,
or
security referred to herein J
its
Branch
Office
—
,
DE 75
Bay
City,
Mich.
established
'
pattern:
1956-$271,102;
1957-$394,052; 1958-$665,726; and
1959-$1,000,000 (estimated).
=•
The
Rich
Plan
Corporation, a
subsidiary, of
Diversa, Inc., merchandises home
freezers and frozen foods through
its
franchised
dealers
covering
wholly-owned
markets in 38 states.
sive
management
report
the
The aggres¬
of
Rich
Plan
following
impressive
pre-tax earnings figures: 1956—
$188,581;
1957—$132,911;
1958—
$434,134;
and '1959—$8-900,000
(estimated).
United
Petroleum
pany, founded by
Phillips Petroleum
Gas
Over-the-Counter
Com¬
three former
executives in
1945, wholesales and retails liquified-petroleum gas in Minnesota,
Quotation Services
for 47 Years
the
Dakotas,
Western
Texas,
Alabama, and Mississippi. Diversa
acquired the Murmanill interest
in
UPG
chased
in
all
exchange
as
'
WOodward 2-3855
The Chicago
standing
(This is under
&
111 Broadway,N.Y.SCOrtlandt 7-5680
the
with
combined
culminated
and
1958,
as
of
present rate of IV2 shares of com¬
mon
for each share of preferred,
after
something for everyone. There
Gus,
....
preferred requirements.
The
gas
resulted in
$12
Sept.
losses
casualty loss of its
bank
and
period.
over
of
Tokyo, Japan
Brokers
-
Company
posits of $106 million as of March
1959,
serves
a
population
of
750,000. Pre-tax earnings of the
of
gain
as
million, and
$26.5 million.
Stockholders' equity is over $18
million. Projection? for the fiscal
of
Affiliate of
share.
reported in the first three months
bright future.
Firiancially the company is sound.
Pro forma combined figures for
cate
will
John R.
experi¬
a
Company
York, Inc.
Yamaichi Securities Co.. Ltd.
issued to Murmanill 529,400 shares
of its common stock
at $5
per
foods,
estate,
consolidation,
with Hunting¬
United
Chairman
tional
appraised
a
new
company,
Diversa turned this loss into a net
new
of New
drilling in the Gulf of
Despite the high success
of
off-shore
drilling, a cyclical
downturn
in
exploration
work
adversely affected
the industry
toward the close of 1957. Opera¬
Prior
electronics
write
Mexico..
production.
o^(.195Pf
as
larger
a
rather
oil
throttle.
year
and
the
at
for
or
Yamaichi
■
Company
of
off-shore
drilling, and
it
So
Inc.,
interests
gas,
buyer for
are
to
equipment
participation
in
expansion
p
Aircraft
Aviation.
that there
seen
Oil
finance
liquifiedetrole um
no
September, 1959 indicate net cur¬
Thomson
is always ready to help in¬
stitutional
be
was
cock-Tidelands
banking,
•
can
stock
Call
,
Securities
the
frozen
•
electronics
component
7
.
component buyer for Douglas Air¬
craft. Herbert Peterson, Vice-Pres¬
ident,
and
Bell
at
chief
was
Thomson
offices in
all types
popu¬
are
For current information
;
$1.25 preferred
issued by C. G. Glass¬
Originally,
embrace
head of the exec¬
was
constantly expanding.
are
Nesbitt,
pany,
untapped
vast
Aptly
named,
electronics field.
to the
newcomers
Gira
and
7
expanding its
naming it Diversa, Inc. Accepting
only common stock as full pay¬
.i
.
and
real
while
nation,- has
.
aggressive
formed in April
new
a
team.
est
•
Glasscock-Tidelands Oil
G.
ing force in the new management
Huntington
STOCKS
real investment merit.
ferred has
following
C.
Company,
major driv¬
a
branch offices
ment, Murmanill placed into the
company at its original cost the
has
who
Gira
our
JAPANESE
majority of the Board of
having protective
rights as a senior security and
having participation in the com¬
pany's success through the con¬
version
privilege,
Diversa, Inc.
$1.25 cumulative, convertible pre¬
vitalized
>
headed
was
Y.;
a
of
U. S. Semicon¬
company
Bernard
Direct wires to
Directors. Thus,
,
Seattle, Wash.
.
ity. Those close to the new com¬
Canada, the world's second larg¬
per
The
stock
of
Corp.' is listed
shown unusual management abil¬
EXPANDING ECONOMY?
to
($1.25 Cumulative, Convertible Pfd.)
capacitators,
infrared
rough
and
Exchange
Mobile, Ala.
on
Taking advantage of the tax credits
U.
by
INTERESTED IN CANADA'S
cents
the New York Stock Exchange.
Diversa, Inc.
diodes,
The
lenses.
City'
It
area>
JOHN R. LEWIS
S. Science in
computers and elec¬
automation;
elect
Gerald
was
TWX LY 77
New
to
rapidly
a
should
heavy
York
—S-2S27—
Private
purchased for about
President, John R. Lewis, Inc.,
tronic equipment;
STRADER and COMPANY, Inc.
be
to
1959
supplies construction materials
,
transducers,
($437,500)
requirement
preferred stock in its third
quarter alone, Diversa could elect
to resume dividends on the pre-:
of
active in micro path systems used
in
Commonwealth Natural Gas
.ac¬
an
major
Life Insurance Co. of Va.
'
is
Topp Industries was primarily
electronics
firm
with
three
-
Bassett Furniture Industries
;
Stock
19 Rector St„ Hew York 6, N.
the
deficit
in
minority stock interest in Hayes
Bankers.
American Furniture
series of such
a
fiscal
with
Aircraft, a portion of which (less
than half) is being sold for $900,000
to
a
group
of Investment
Trading Interest In
dend
it
Stoker
Detroit
and
American Engineering which
and
American
Members
HAnover 2-0700
- - *11-1557.?
N*w Orleans, La*-Birmingham, Ala
$4,450,000. This company possesses
substantial
growth potential for
which
owned)
deals in military and government
electronics,
NY 1-2762
000
Aircraft
were
(80%
York Stock Exchange "
Members Neib
(Page 2)
off-shore
.
sales- of
$11,739,000 and earnings of $585,-
Corp.,
Equity
the
planned .for the com¬
announced on Jan. 29.
Milling Com¬
was
pany
in* May, 1959. The com¬
Armaments
40
of
is
The Southern Pacific
by Ellery C. Huntington, Jr., for¬
(Active and Inactive Issues)
-
quisitions
pany
management group headed
new
■
The first in
large current assets into earnings.
A
considered
be
to
liquidity which allows United to
be on the prowl for more com¬
panies as merger candidates. Cur¬
rent
profits
can
therefore
be
augmented by any acquisitions to
Industrial Cor¬
United
old
plus
combination of earning power and
which became
effective
market
Also
Industries
WEINBERG,
Steiner, Rouse & Co,
Seattle,
Inc.,
Lewis,
Corporation
the exotic electronics
which are changing the complex¬
ion of the company and may fore¬
tell
a
change
in
the
stocks'
earnings multiplier.
tion and Topp
S.
R.
Wash.
;
It has old bread and butter divi¬
of
United Indus¬
trial
John
The
pew ..company has added depth of
ferred stock before October 1960
management
and
scientific ' re¬ in order to
keep the conversion
search to it& sound financial base
privilege at the present rate. Divi¬
as well as new products and mar¬
dends must be resumed by Oct. 1,
ket expansion to its accepted in¬
1961;; otherwise,
the
preferred
dustrial product line. '
shareholders
have
the right to
such
this is the
,
pated over the coming years.
would
one
for
tronics
than
cent merger
SAN FRANCISCO
•
Wires
ties
of the
example
,
to offer sound potentiali¬
participation in the elec¬
expansion antici¬
appears
indicate. I be¬
120 Broadway, New York 5
.
Conv.
Cum.
($1.25
,
much
parts
Member
;
Industrial
United
Often
sum
1969.
Inc.
Pfd.) John R. Lewis, President,
share at 17
one common
until Nov. 15,
plus one
equal, a
can
Diversa,
1,002,726 warrants; each
purchase
always cor¬
one
are
addition,
Bought—Sold—Quoted
City.
Co., New York
(Page 2)
one-half
In
common.
Service
Stonehill &
two warrants entitle the holder to
we
one
of
there
Exchange
equals two. But we in the financial
community know that this is not
greater
1920
Established
Associate
American Stock
Stock
teach our chil¬
plus one always
grade school
total
Corporation
share
United Industrial Corp.
rect.
New York Hanseatic
York
New
into
convertible
each
New York, N. Y.
Members
you
Stonehill & Co.
Federman.
preceded
Corp.—Mitchell
Manager of Inves¬
Dept., Federman,
Bayer,
tors'
by 1,124,972 shares
of 5% preferred stock ($8.50 par)
ing
Manager, Investors' Service Dept.
cover-,
Jay
2,081,914 common shares outstand¬
BAYER
reli¬
dealers
Next time
Louisiana Securities
United Industrial
reaching banks, brokers and
throughout the United
age,
Selections
Their
participate and give their reasons for favoring a particular security.
wires,
and
fast
Alabama &
Participants and
of experts
nation¬
our
private
traders
affording
able
of
in which, each week, a different group
forum
the investment and advisory field from all sections of the country,
m
Thursday, February 18, 1960
.
.
.
Week's
This
Forum
,
Chronicle
Diversa's
April
of
1959
and
pur¬
National Quotation Burean
Incorporated
the
remaining out¬
shares
in
August
in
for
183,600 shares of
common
stock.
Continued
on
For
the
page
29
—
Established 1913
46 Front Street
CHICAGO
New York
SAN
4, N. Y.
FRANCISCO
Volume
191
Number 5926
.
The Commercial and Financial Chronicle
.
.
(755)
An Economic Forecast
CONTENTS
B.S.
AND
By Reuben E. Slesinger, Professor of Economics, University of
Pittsburgh, Pa.
views
finajicial
regarding 1960 discussed* by the author hold;
and security
(1).
and profits and
of
^decision;
^dividends will be higher than in
-
;
business spending's ylgor will not match that of
19%, but total jconstruction
'Atlantic Coast Line—Ira IS.
,
and (4) industrial
<
these
will
agreements
be
f
;
<
as
economy may
lation
"am-,
will
creases
markets,
~
wjhere,\ .'saljr'/
though ©f.iav^
'Peace
:
be
to ha ve a
the
;years.
-pected
(Or.5R.:£..Sle*mger
with
a
id .year iintervai,
the
TkIc
.
I960-
higher
slowdown
a
year
bps
will
14
BRITISH
15
„
INDUSTRIES
Against Inflation—Roger W. Rabson.
•
,
19
-
39
-
As-:We
See
Bank and Insurance. Stocks.^
Dlgby 4-4970
aS--Jl J*I--L__L___ 23
Bookshelf.__L,Jli-414-_-_ 1
Coming Events in the. Investment FieldL
This would make;1961a
o| (jeqision. It: could.vwithe33:;
i
c—>
-
-
4
.
29
Owens Yacht
40
l
Pealer-Broker Tnvestment Recommendations-—
occurred
inventory , situation,: it isJ rather /',
a ^context/that
ujreiv/fhat some adiustments. will.;
b\isinessraen must ,plan jor-oshort ^ak;e place
The using up t>f irn ^
range arid
yeaUy_- commitrucnt^, 'Vehtories -at an -unusual :rateAbe^- .v
and consumers analyze thejr huyr
a 6f the steelstrikein
1959 - •
1V
:
-
V
-
'
Copeland Refrigerator
^
~
Indicitionsiof .Current Busiiiess Activity38
Tvr,,t1151i
r„„je
\. 'i"
'
.
■,
•
..
,
,
BarChris Construction*:
-
?Mu.tualJPunds__^^^^_^_._^—_______i^_„.__^^,—£0
NSTA^nt^
■
- v"..
•'
- ~
ik-
^
'aSen^l mdeSlM Ml;
,
■
■
Pyramid Electric
Jamesbury Corp.
•.
From-Washington- Ahead ofrthe Ne.ws—Carlisle"Eargeron__:_12
a
.
.
12
^sswiat^iwitn
look. Jt is in such
Broadway, New ;York 5
It. (Editorial~ 4-i —:-i-ai-i;-4Cover
Businessman's
.
during ><*1^'JasA?-
as
J. EiE«Uly & Co., Inc.
Regular Features
>
.
,
•
■t —Herbert Hoover
show - a
rate of growth;
rate .evidenced
retrenchment stich
a
COHU ELECTRONICS
•
Some ^Observations: on Current American Life v** -; •'">
*
quarter.
within this
numerous,
MINERALS
Financing
Flexner____„__________^^________-_.___,_T.___ .13
—John L. Rowe__—
Hedges
lhe first haK pf, the year,
reached,, after mid-year,
peak
Vand
that Tthe
_de€ad«
t>eja golden . one. ,But,
that
*
evidence
•pern^ates.the. econ-^ a
There1 is
;
and prosperAy ieem to
'slogan "tor the ;-ensuing
Roughly, it can be ex-
somewhat uneven
seriousthreats
omy.
ALASKA OIL &
11
Slowdown at: Erid ^of: 196Q?/
i 'Sete
■
A general,
10
v,
.
subsidedand
wars.
Outlook—August Huber^——w
-.
■
cQdd'~{;:wMfri-'
-the future
as
.prices in. the United States, might
Tiseby between 1% % 'and 2%
during the year.
;
nearly, .-every-.;v
in
INDU5TRO
TRANSISTOR
The Turbulent Sixties and the American investor
.
ptner source be. kept in:hand. • rlt
can
bO expected,' however,: that
be^ffouwd'
of hot
e
effects. stemming from -any
ary
Optimism^may'
thereareno"
KRATTER CORP.
QreOnspan
—Kurt" F.
essential that the
ill e c t s of these well ;as inflation-„■
is
agreements
satisfied.
seems
it
iiiuawoudl'y
d d; jmo.rei
wants to .he
a
cautib«s,itypel
The tempo*, of >
7
Market-^Percy S. Weeks-v 10
Need for New Approach to Mortgage
pete in world markets and even V
retain some of his own. domestic ,,
Dept.
4-65S1
5
American, businessman is to com-r
in-
increased-
$Y>pu-
comes,
t —Alan
take a sudden .reversal. -If'the
"
Securities
WAU- STREET,-NEW YORK
Telephone: WHitehail
>Stoek and Bond Prices and Capital Evaluation
degree -unless, productivity -gains
nearly-; everybodyi
.for
each eector of the
look .iorward - to
99
9
Present Market
infla-
Thfc
year
Obsolete
,
Cobleigh.14---~~~'
Economic Situation and .the Stock
:
pay!'
ave
'
-
.
—Joseph A.
^
in :/l981 might mean a boom in 1963-64 and a
General G©»sHIeratioiis
«
Why Canada Should Re-Unite With the U. S.
but MP will gain 5% or 1tyr2% less
growth rate between 3-4%*^^
V»'
\
adjusted for inflationary rate, looking further ahead, Dr. Slesinger
decade's family income
1
__4'_
._ __
The Outlook for Utilities—Frederick
production will rise €-7% fairly distributed among the more signifi- v
cant sectors of the economy
SIesinger-4 * J.
not drop .as much due to some
may
increases in commercial rand industrial building;
believes .a recession
^:|7^Re,uberi'';E*.-.
'
t®55, and home building may decline between 4r to 7% and starts
if
-What to Expect of i960: An Economic Forecast
r -
—-*what prices
jt.
.Today's Stock Market Values and the Longer Term Prospects
7 —Robert H. Wessel.i...,^..^^;.,,..—.Cover
will set records in most
slowdown during the last quarter making 1961 a year
(3)
GEE-GEE
Page
t
1959; (2) growth will be uneven with a peak reached after mid-year
followed by a
OMPANY
r
markets will constitute the most uncertain
sector of the economy even though the year
economic sectors
C
,
Articles and News
Outlook
3
*Pro8pectue
on request
'
'
.
18
components
business in
stantially Jiigher, as much as
td 50% greater than iat jpresent
TButthe- return-to "a-
:
4
h^re'wr^v
*'■F&A ihveptory^. situation3KOpQC4e^
A -''4"
-4 A.
-4.' "
'
that year. If, J961 does become a '- Our Reporter's Beporti4_-,__^-,^_^_^._---„> -
&MACKIE,
omGovernihehts-4-^--C-4i™-4----.--—-.4;--"25
by
l4/el
rind
1960.
will be for the shorter
1960
1961
or 1962
*
«spv
-
-
-
-
'
-
--
•
HA2-9000
'*
•
"
Direct Wires
Chicago
21
Securities Now in Registration^.
realization. The boom rasso*
with population increases
of the late 1940's and 1950's would
managerial prerogative to de¬
termine in- a unilateral manner
the rules of work, it is unlikely,
that ether-industries will take an
adamant stand on this issue that
of
could lead; to a long
down.
well
"Compromises
aa
plant shut¬
en
this
as
other issues such as wages,
and fringe benefits seem to be.the
order in the numerous collective
bargaining agreements that - are
d\ie .tor, discussion, in I960. It can
ciated
!
Prospective Security
Offerings.--
;
Security Salesman's Corner>_>_«„^_i_^______4—4—29
-
manifesting itself, in the
;
The Market
-increasing rate of household' for- :
mations. But, caution is necessary
here: The flow of-industrial flue- ^
fixations is highly psychological,
there
danger
of
is
the
;
asso-
The
You-+-By Wallace Streete_
State of Trade and
Washington
and
For Banks, Brokers and
16
4—___
A
.-^4,
40
COMMON STOCK
overspend and go heavily
debt, future income is, mort-
-
gaged out of proportion to support
.
into
*
Column
not
available
Bought * Sold ' Quoted
this week.
Report Available on Request
-
have
specialized in
PREFERRED
Published
-
Twice" Weekly *
Copyright I960 by'-William B. Dana
Reg. V. S. Patent Office
25 Park
Spencer Trask & Co.
Albany
Nashville
Boston
Newark
r
COMPANY, Publishers
.
YORK 4, N. Y.
TELETYPE NY 1-5
Chicago
Schenectady
dens Falls
Worcester
Chicago
3,
III.
135
La
Salle
United
Union.
States,
and
$65.00
U.
8.
Members
oi
per
of
year,
Canada,
$68.00
per
Other Countries, $72.00 per year.
18, .1960
South
in
Territories
Pan-American
ir
St.,
(Telephone STate 2-0613).
Bank
$45.00
and Distributors
Complete Trading Facilities
TRADING DEPT. PHONE:
WHITEHALL 4-6627
and
Quotation Record •—Monthly,
per year.
(Foreign Postage extra).
Note—On account of the fluctuations In
rate
of
-exchange,
remittances
for
the
foreign
Underwriters
year.
Other Publications
'Every Thursday (general news and ad-vertising issue) and every Monday (com¬
plete statistical. issue r— market quotation
records, corporation'news,-bank clearings
state and city news, etc.).
Office:
Febru¬
Subscription Rates
Possessions,
WILLIAM DANA SEIBERT, President
Other
matter
ary 25,
1942, at the- post office at New
York, N. Y.; under the Act of March 8,1879.
Subscriptions
GEORGE J. MORRISSEY, Editor
Thursday, February
secondrclass
as
Place, New York 7, N.. Y.
REctor 2-9570 to 9576
CLAUDE D. SEIBERT, Vice-President
York Stock Exchange
TELEPHONE HAnover 24300
Reentered
Dominion
Founded 1868
25 BROAD ST., NEW
DANA
Company
.
CHRONICLE:
FINANCIAL
WILLIAM B.
Members New
on,,
Knowles Corp.
6
You
The COMMERCIAL and
i
Special Study,
Crompton &
Industryi^—--—-——.—^—4
expected that the Overall ef¬ It, and even businessmen ■ are inContinued on page 26 r
fect of the terms of settlement of
for many y ears w e
Dealers
7—-4——2
Tax-Exempt Bond Markets-Donald D. Mackey__
:
ciated with boom periods. 4 Con¬
sumers,
and
.
.
The Security I Like Best.*
psychological.,
over-optimism
♦
be
j
St. Louis
36
;
-
then be
and
Dallas
Philadelphia
San Francisco
30
—h.
tlevoland
Los Angeles
.
to
i96p's might
to
January,
the -steel '.strike 'during
With the concessions of manage¬
ment in^this instance on the issue
—
INC.
40txchonge PJace. N. Y.
Teletype NY TJ825 & 14844
16
putes^fnay^£b*r^JJ3expanding
importance by the sudden end of
'
subscriptions
and
advertisements
must be made in New York funds.
56 BEAVER STREET, N. Y. 4
Telephone: WHiteball 4-7650
Teletypes:
NY 1-4581-2
4
Steel Production
than
Electric Output...
The Suite of
.
:-
showing
comments.
In
a
"The
these
market
rate
of
in
ahead,
says
its
"
earlier
a,
are
year,
of
rate
a
In
minor
1955.
almost
under
are
Bank Clearings Down
1959
.
Bank
"
3.6% From
Week
clearings
this
will
week
show
rise thus far in the current quar¬
cities of the country, indicate that
for the week ended Saturday, Feb.
ter, and
will
at
stocks
ago.
Preliminary
figures
compiled by us based upon tele¬
graphic advices from the chief
13, clearings for all cities
continue
the
faster
likely
months, the more
rate will not be
the
that
inven¬
will
tories in coming
sustained.
in
rise
Steel
of
output
been
the
861,373,825
for
when
the
comparative
first
bank also
the
1959
$10,103,476
1,032,478
—10.6
Philadelphia
786,000
885,000
—11.2
534,758
633,718
0.6
Complete details of the bank
clearings throughout the nation
45 of
appear on page
Feb.
some¬
our
Monday,
15 edition.
Steel
A
10%
orders
10%
Below
are
below
"The
ago,
small
the
of
drop
the
level
of
Age"
of
and
deferments,
general
a
hesitation
contribute
at¬
to
lion to
steel.
5
Users
"
their
keep
tons
of
finished
determined
are
steel
stocks
at
to
the
January averaged 18,But
the
magazine
points out
that the bottom has not dropped
200 per selling day, 11% ahead of
the year-ago pace but below in¬
Deferments
the
largely confined to small
are
of
steel.
the
At
original production goal, sales of
domestically-produced autos
strike,
many
would have to average 23,000 per
cated
orders
selling
shut out in
day
in
the
first quarter.
would about equal the
cancellations
and
ble.
But
end
of
overbooked
for
the
fear
the
steel
or
dupli¬
of
being
post-strike
shipments
users
were
scram¬
better
.;;
.
,
4
is
because
than
of
One
product
of
Makers
is
service
warehousemen
centers
half
Steel
price cutting
has spread.
business
also
downward.
among
ware¬
Foreign steel
slipping.
Buyer's
a
Market
Return to
Steel
buyer's
market
A
to
steel
by
*
April,
Will
by April
will
return
Feb.
15.
Instead of
"Steel," the
predicted
rationing ton¬
nage,
producers
bling for orders.
In
some
cation"
The
of
:
,
ready
from
to
their
scram¬
steelmakers
strike
"allo¬
rapid
stockpiles
buildup
came much
reached.
Most
will
be
easy
to
get by April, but some will stay
tight a while longer. Flat rolled
steel
will
probably be
through June.
in
will
be
available
'sumers.
•
to
smaller
-.C. "• ■;'V■
rupted production is assured.
month,
million
consumers
tons
million
will get
finishedv steel
of
6.4 million, and add
use
to
stockpiles.
Last
received 8.5 million
users
up
6.8
1.7 million to
million, and
inventory.
weeks,
"Steei" reported.
dip apparently is the result
the
"tighter
done
credit policies that
are
adopting
this
"sitting on" a
portfolio of his own consisting of
the issues in the Dow-Jones Indus¬
trial Average.
Similarly, the
funds, after management expenses,
*
also out-performed, over the
longer periods, by the Standard &
were
Poor's
Index
covering 500
erating
repre¬
in
the
The
public's post-Crash disillu¬
sioned craving for the fixed tech¬
nique of "refrigerated" or no man¬
agement at all, is described thus
by John A. Straley: "Good stocks
all
are
right, but if I own them, I
anybody changing them
don't want
for
me.
.
.
sentative issues.
dle
Scrutiny of such over-all com¬
parative performance records has
been renewing interest in pro¬
posals embracing de-emphasis of
management activities.
.
Nobody's going to fid¬
list of holdings any
more."**
with
In
my
England and Scotland too, as
an on-the-spot
survey
revealed in
the writer made in the
mid-1930's,
disappointing management results
contributed
to
switching
fixed technique..-
Fixed Trust Technique
Britain's
early investment
days, the fixed trust played
important role. The pioneering
Foreign and Colonial Government
Trust, founded in London in 1868,
trust
issued
specified number of
a
tificates of
deposit
£ 100
with
cer¬
each, against the
private banking
different issues
of
a
18
1%%
to
No substitution of the
orig¬
inal securities
cepting
was
under
permitted,
certain
From
fixed
(notice
past
tense)
of management"
limited
to
other investment
criteria; as well
anticipation
already registered in the issue's
price decline.
^
the
as
pre-omission
Offsetting the disadvantages of
the
fixed
technique
be
retired
accordingly
of
per
were
to
than
24
more
sinking
were
1%
certificates
in .not
via
years
on
one-fourth
All
annum.
fund,
but
a
holder could instead claim his
pro
rata share of the
physical assets
at
the
termination date.*
And
Abroad
In this country, such fixed
trust
procedure
initiated in
the
early 1920's; with no substitutions
permitted
excepting in the
of,
mergers or dividend
But
it was only after
crash
ment
management's
errors,
ethical
ment-wise,
nique
event
omission.
the
1929
and the public's disillusion¬
with the revelation of
the
then
the
what
they
*cf.
as
that
cataclysmic
well
the
into its
came
filled
panies"
pp.
along
with
that
invest¬
fixed tech¬
own.
It
public's demand to
were
little
attitudes,
matter
ful¬
see
buying. Accord-
Story of Investment Com¬
by Hugh Bullock, N. Y. Colum¬
2, 20, 41.
Advent of Open-End Popularity
In any
event, the fixed trust
technique by the late 1930's and
early '40's on both sides of the
Atlantic gave
mutual
fund
management
way
—
to the open-end
combining
tinuous selling of fund shares, and
the holder's
privilege to redeem
them
at
or
near
also
to
with
unfettered
no
the
asset
value; and
routine,
closed-end
automatic
management but
privi¬
redemption
lege.
For
But
plete
In
Harper
"Steel's"
No.
1
price
heavy
composite
melting
Continued
grade
on
on
now
and
full
discre¬
offered by Edward F.
"What About Mutual
&
Brothers, New
Funds?"
York,
75-76.
MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS
Robinson-Huinphrey Company,Inc
of
page 28
RHODES-IIAVERTY BLDG.
*
ATLANTA 3, GEORGIA
JAckson 1-0316
:
compromise between com¬
flexibility
tion is
★ *
Managing the Average
a
STATE AND
The.
full
discretion with con¬
ESTABLISHED 1894t"
4
of
expense-saving and increased in¬
come yield.
V'/V'.-;/
as
"The
bia,
playing-the-market
capac¬
upturn of 0.3 point. Output:
About 2,693,000 ingot tons.
its
were
long-term ex¬
pectations in lieu of shorter-term
was
only 1710 rotary rigs op¬
(vs.' 1781 a year ago),
an
the
compels
failure to take into account all the
ex¬
specified
the
investing viewpoint,
technique offered both
advantages and disadvantages. Ri¬
gidity
in
automatically forcing
disposition of a dividend-passed
the
circumstances; and there was no greater
conformity to investment
self-liquidating feature. "Expenses
principles based
downriver terminals.
Last week, steelmakers operated
their furnaces at 94.5% of
the
to
,,
In
oil
of course, other reasons
why tubing and casing are not
moving.
........
com¬
pared with 1928.
there are,
ity
Exchanges
of
country goods
have decided
to take only part
of the steel ordered,
canceling the
rest. In the future, they will
buy
most of their tonnage from millowned
could
investor
better
PP.
Jobbers
NEW YORK
fund
mutual
1958,
year
;;/ >. "Refrigerated"
Management Here
Steel users are guarding against
overstocking
of
finished
steel,
recognizing that the mills have
adequate capacity and uninter¬
281
seven-fold
issuance of fixed
a
and semi-fixed units in 1930
con-
./:.■
ingly there followed
increase
2V2%.
"■/V.-j.-
products
that
concluded
the "load" being
With
79
be
can
of
tubemakers
.
41
it
bonds,
was
month.
14 WALL STREET
288%
311
house
settlement
10 Yrs. 1950
to 12/31/59
to 12/31/59
87%
quicker than had been anticipated
steel
;
87
—
when
the
5 Yrs. 1955
1958
37%
:
an
;
vocabularies.
unexpectedly
consumer
be
;
.
centers,
about
are
will
Year
periods, excepting the
Steel
revising their
are
first
are
—
S-P Averages
and
in each of the recent bull market
galva¬
are
Steel
D-J
Average Performance Funds 12.0
early April.
or
exception
vs.
41
the
of
Members New York, American & Toronto Stock
taken
19.4%
have
The
Dominick
dividends
concurrent
11.2
Thus
Manufacturing opera¬
good, but here, again,
overbooking was general. Second
quarter buying may be 30% below
first quarter. .
,;vv■;•:
three
&
Funds' Performance
Dow-Jones
appli¬
New
orders
for
oil
country
goods dropped sharply in the last
Dominick
pre¬
Standard & Poor's
tions
added
-
investor
Interval
overbooking rather
—
tons, chewed
'
mon
1059
will be up to desired inven¬
month,
OF INVESTMENT SECURITIES
share of 59 Diversified ComStock Funds plus capital
gains •< (reinvested), > and income
per
:
Year
business.
poor
Appliances
1.6
\
the individual
.
they
first quarter. This
the
in
products,
UNDERWRITERS AND DISTRIBUTORS
1959, show
in cash; and
the
changes (similarly ad¬
sumably could have achieved by justed) in the Dow-Jones Indus¬
simply buying the stocks in the trial Average, and in the Standard
Dow
Jones
Industrial
Average, & Poor's Index, during various in¬
and also, as an objective yardstick tervals extending back to Jan
1
of management achievement via 1950. ; v
:
:
: <
what
Equipment and Construc¬
booked
This
throughout the United States and Canqda
The data, extended
in the second quarter of what
8
Correspondents inprincipal cities
us,
er's calculation of the
average per
cent net change in the net
assets
-
,
strong
out of the steel market. Nor is
demand
Tin plate
it
likely to in the foreseeable and
galvanizing
facilities
are
future.
Steel consumption is at
booked solidly through the first
the rate of 7 million tons of fin-^
half
and
beyond.
Cold
rolled
ished
steel
a
month.
This rate,
sheets
look good through June.
if sustained, assures a good op¬
But
if
automakers
cut
buying
erating rate for the steel industry.
programs by 5%, cold rolled steel
dustry expectations. At the same
time, inventories rose to 800,000.
The largest inventory of unsold
domestically-produced autos on
record was 965,000 just before the
model change-over in August of
1959.
\'v'
To keep inventories below the
,-V-.:
.»
••
following table, constructed
shows: Arthur Wiesenberg,
,
level.
workable
by
compa¬
registering progress
in capital appreciation and income
receipts that is both inferior to
Machinery—Orders
are
to
cut inventory to a minimum. Some
plants will order as.- little as 50%
in
million
The
significant
the funds still
tion
a
re¬
addition, policies of' strict
inventory control have wiped out
a theoretical bulge of from 3 mil¬
lowest
attain
Farm
investment
broadly
to include the full year
inventory
level—about 20 days.
running
now
In
1955.
desired
the
implications.
\
Level
orders, the national
metalworking weekly observes.
automobiles, the
major steel-using
product,
also
have risen faster than anticipated.
Production
schedules
originally
had called for 2,250,000 autos in
the current quarter, 40%
above
last year and 7% above the pre¬
still
the
proach
Says
Iron
flurry
cancellations
of
and
^
of
carries
metalworking^ weekly,
titude
what.
level
-
April. But by that time, auto¬
houses
ports.
rather
vious record first quarter in
into
A Month Ago
quickly if demands of the auto
industry were to decline some¬
Inventories
1
•
•
.
makers will have put their inven¬
tories into balance and will -ap¬
prices
Orders
that while
further
•• •
.
newly up-dated performance
record
moment, automakers are
taking all of the steel they can
get. This is expected to continue
—15.6
%
+
1
month
ease
-
tory by late March
'
922,720
about
could
nies
expected
more are
nized sheet.
f
Boston
sheet, currently are in tight
supply, this situation is improving
pace
for I
centers during the
1960
Steel
notes
been
issues.'
.
t
The
Our
1959.
$10,162,768
13—
ized
This
in
r-—000 omitted
York
other types of steel, such as coldrolled sheet and bars and galvan¬
million
Our
Chicago
New
inventories
anticipated earlier.
Sales in
year.
readily than had been
more
and
the
summary
money
Week End.
being accumulated rapidly.
it now
appears
that
some types of steel—certain heavy
structurals and heavy plate and
pipe for use in the oil industry—
The
week
same
leading
estimated
flowing to users' hands
of
those
past week follows:
were
are
below
totals stand at $19,against $20,597,994,649
However,
what
MANAGEMENT?
600,000. Al¬
though only token cutbacks have
disclosed,
comparison with the Standard &
Poor's
Composite Index of 500
HOW MUCH
be closer to
now
ances
tons, 9% higher than
1959
3.6%
preliminary
Feb.
at 70 million
first-half
through
had
1960
be
corresponding week last
A
resulting slower rate
of inventory growth will tend to
dampen, though not necessarily
reverse, the trend in general busi¬
ness activity.
half
of the
United States for which it is pos¬
sible to obtain weekly clearings
period, say the bank.
The
decrease compared with a
a
year
rapid build-up perhaps
in the April-June
a
sched¬
revision.
constant
production,
orginally
at
over
700,000 cars,
scheduled
will
soon.
relatively low
levels in most hard goods lines
at the beginning of the year, there
has been an appreciable inventory
With
/
.
At the
the
monthly review, "Business
Conditions."'
the
selling at
2,000 per day.
now
Federal Reserve Bank of Chicago
in
in
factor
of activity
course
months
the
quarter of
foreign cars,
addition,
particularly' in ; the
steel -'and
steel-using industries,
is being observed closely for in¬
dications of the
first
record
build-up of business
trends:
Automotive—Production
February
inventories,
of
major steel
Iron Age"
reports
-
Commodity Price Index
ules
Thursday, February 18, 1960
survey-
users,
Business Failures
TRADE and INDUSTRY
.
.
A.'WILFRED MAY
BY
Food Price Index
Auto Production
The
of orders^ is
the magazine
up,
.
OBSERVATIONS...
and -duplication
now
Retail Trade
and the overbook¬
expected
ing
Carloadings
.
Financial Chronicle
The Commercial and
(756)
1954,
Volume
191
Number 5926
.
The Commercial and Financial Chronicle
.
.
5
(757)
Renshaw^and Paul
of
the
and
Affirmatively,
Feldstein,
we maintain that
performance record addition¬
ally evidences the advantage of
reduced
portfolio activity," with
of
Business
the
of
University of'Chicago. In an
article, The Case for an Unmanaged Investment Company in the
"Analysts
Journal"
stricter
out ..that
in
even
—in the absence of
of
case
dividual.
*
portfolio's assets to
the
market indexes. After
*
A consideration of the current
the in¬
Two
com¬
parative
performance as cited by
above, they come to the follow¬
ing conclusion, "The evidence pre¬
HANDLERS
strictions
on
funds,
vehicle
the
companies would be
better off if a representative mar¬
average
followed.
were
The
voted
The,
Is it because the
is
notion that
conceivably
market average? ,-Is it because
promoters
nies
it
because
great
the
deal
ment'?
investment
of
would-be
are
of
public
faith
.V;
the
compa¬
Is
places
in
a
for
case
focused
to
subject to
they must exercise,
discretion
same
as
men
of
discretion and intelli¬
gence would in the maangement
of their own affairs).
The Legis¬
lature's
negative
reaction
re¬
include
costs
and
the
address
re¬
it
would
make the reward
a
extension
for
good
greater
and
the
made
National
annual
of full dis¬
the
at
serve
Bank
of
of
to
the
and
Common
called
Trust
of
Powers
apparently
the
of
fund
ciaries.
average
tion
over
of
the
restrictions
tion
ances"
ministration
We
of
the
that the
over-all
comparative results
of
for
"churning"
..the
or
chairman
reported
of
a
leading
; chased
5
-
incidentally,
we
sales
and
two-way
of
trusts
fiduciary
such
^
dled
fiduciary conduct
trust
from
runs
Florida
with
and
situation
the
common
funds
South
Coast Railway;
whence, with its own
lines, it serves central and
Florida.
Its
5.637
miles
operated
road
includes
ing
lines
to
Birmingham
of
net-
directly
connect-
Atlanta,
Georgia,
Montgomery,
Georgia and
and
Alabama,
Augusta,
Spartanburg, South Carolina.
Tn
pHHitinn
and
shares
■■ville
t inp
Hear
fabout
and
823 427
34%}
'of
Nashville
ahnnt
Coast
Tine
miles)
West
Rirmincfham
'Among
T
^ fiRn
the
to
Is
as
connecting points
CoaTIine fr^m
in
N
raiirnad
extending
Atlanta1
at
T ouis
and
nnerates'
fit
from Coast Line
thp
L
hie
as
nwnc
rnmmnn
N
and
and
the henetitc
this
finaneial
i
A
(1)
.
valuable
Ire ±manClal
.
.
>
.
traffic
■
inter-
opera¬
a"geL
seeker
of
a
writer
would
continuation
fund in
role
—
its
of
the
present
guarding
genuine
a
mud¬
the
medium
from
investment
promotional
pres¬
leaving the' invest¬
frankly operating
as distributors of
participations in
stock market speculation.
'
.
★ ★★
...
.
.
...
....
,
,
the
at
$8 a share for
stockholders.
;
Coast
In the postwar years Coast Line
has
been
carrying
through
a
of depreciation charges, and bond
interest being more than covered
major
volving better road-beds, Central--
by other income,
Ahead
lie
some
ized Traffic Controls in congested
things:
sections of the line, and a new
headquarters' building for the line.
at Jacksonville, (for years a leading railway center in the South),
This handsome edifice is not only
prestigious, but a shrewd investment, since rental of space to tenants is calculated to produce
enough revenue so that the railroad offices cost nothing.
This
extensive modernization program
may
improvement
program
L
N stock at the rate of
&
$5
Board
of
Governors
of
Reserve
the
Fed¬
System, "Trust Powers of
Banks,"
Regulation
F; "also
"Common Trust Funds," Third Edition,
publ. by American Bankers Ass'n., 1956.
National
pleased
to announce
th
an
office
t
railroads.
o
field & Ohio
is
Carolina
Clinch-
393 mile
jointly
leased line, feeding export-bound
a
into
rji
Paris, France
j
....
-
earnings
be the best in postwar years;
(2) There is possibility of a dividend increase; (3) The spin-off
of Land' Company shares may
place;
take
Earnings
(4)
from
piggyback truck trailer .business,
begun only last year, should rise;
(5) possible merger with Seaboard could create many savings
and substantially boost earning
enjoy
To
power.
the
foregoing
ficient property.
Coast Line
0f its
Earnings
of
Coast
been remarkably solid.
I955
$5 60
the
have
can
The year
per
since
the
.road
Since the Connecticut
shares sell at 58 (AmeriExchange), an oppor-
Stock
Line
at
Moreover
a
years
for each share
common
tunity is presented
peak one, producing
share, but in each of
was
own.
company
Line
has
to buy
substantial
a
r°ads and reported $4.79
up
to
75c from 1958.
rising
revenues
This
a
shares
is
and
on
which sound equities are customarily selected, Atlantic Coast Line
due
common
improved' and
you
seems
are
a
worthy
asked
not
equity
to
pay
CCoast°Linee a^Spartanburg^ °PeratinS efficiency we would gaudy "electronic" price for it.
from
whence
Atlantic
port
it
is
delivered
cities.J
to
The
second,
joint operation, is Georgia Rail¬
road which includes the strategic
mileage between Birmingham and
Augusta.
Atlantic
Coast
Line
enjoys
a
V/hen you
trade in
SECURITIES OF
THE
Increasing industrializa¬
tion in the principal cities along
the rights of way, plus excellent
and
Port
ROCKY MOUNTAIN
Florida
Georgia,
large
We maintain
terminal facilities
Tampa,
Brunswick,
create
tonnage
and
a
and
AREA
large and active
trading department for
move¬
ments
in
aggregates, phosphate
rock, cement, petroleum products,
pulp and paper, forest products,
coal
and
agricultural
produce.
your
convenience.
TRADE
Coast Line is further fortunate in
WITH
that about 60% of its freight traf¬
fic
is
origin
handled,* from point
of
destination, on its own
to
lines.
LEHMAN
BROTHERS
Sizeable Land Company
LOWELL, MURPHY & CO.
r„
(incorporated)
February 15, 1960.
the
$3 yield-
ing 5.25% currently.
By most of the standards by
share,
year
Coast
discount.
dividend
the
"Connecticut"
M
First,
facilitate
7,- Rue Royale
interesting
year's
shares of the Atlantic Coast Line
Co. of Connecticut, a holding
company, owning 1.%
shares of
are
at
opening of
This
(1)
mediate future will be lower, and
maintenance expenses should be
substantially lower on a more ef-
share^ —- $4,117,135 per annum netted above $4 a share. For last
S1Irre
•
year, Coast Line was less affected
U50-50 partners "in two other by the steel: strike than many
waterfront
the
in-
has n°Y been Yirtuallf completed, benefits you may either buy stock
so capital requirements in the imin
Coast Line directly or buy
serves.
are
Line
a
good diversity of traffic from the
rapidly' growing territory it
We
itself is in fine physical condition
and enjoys a reputation for excellent management. Finances are
sound, with equipment trust maturities being more than met out
to determine accurately,
but one competent railway analyst
of our acquaintance estimates it
Solid Earnings
(3) A juicy, cash dividend from
Debt
-
opera-
and
50c extra at
$2.50
a
^on in prior lien bonds which
mature in 1964; and $70 million
of
extra
curricular
resources,
in General Mortgage Bonds which
Coast Line is in a favorable posi- alter mid-1964, will move up to
tion. Over 40% of its gross profits "a first lien status on the entire
come from non-operating sources,
railroad property. There's a small
There is the wholly-owned subissue (1,554 shares) of $5 presidiary, Atlantic Land and Im-- ferred
ahead
of
the
2,627,256
provement Co., rich in real estate, shares of common listed on the
It owns
the two port facilities,
NYSE.
Present price of 55 afmentioned
above, at Brunswick fords a yieid °f 3.64% on the $2
and Port Tampa; it owns extendividend or 4.55% on the $2.50
sive warehouse facilities, vege- Pajd in 1959. Dividends have been
table and citrus packing houses; Paid continuously since 1941 and
it has cattle ranches in Hendry the $2 rate since 1951. County, Florida and totally owns
Railroad shares have not been
some 244,000 acres of Florida
land, the glamorous ones in markets of
Partly forest and grazing land, recent years but that fact should
much of it capable of extensive not blind one to their inherent
building development. Because of values, and their capacity, in spestudies which have [been con- cific instances, to earn and pay
ducted for some months, looking dividends over long r. periods of
toward possible merger of Coast years. Certainly, a quite decent
L^e and the Seaboard, all this case can be made for Coast Line
land holding has been given a common at current levels. The
special look by investors, since it stock is selling at lly2 times 1959
is expected that the land company earnings, and 10 times expected
would be "spun off" to Coast Line 1960 earnings. The road serves
stockholders, preliminary to any an excellent territory growing
actual merger. The value of this rapidly in resources, population
possible
"spin
off"
is
a
little
and industrialization.
The road
,
yard
Birmingham,
while
sures;
ment companies
eral
'
Consolidated
(2)
tions at Atlanta and
rise in rate.
a
a
regular
reasonably predictable.
capitalization consists of
so
ing power derived apart from
railway business.
In this matter
difficult
Richmond
of
work
by
.
*
Served;
East
southwestern
would
with the
this
trust
"fiduciary"
imply absence of advantage
'
'
from
branch
interest
the
advocate
of the investment company to the
'
.
compulsion
For clarification of such
on
typical active individual investor;'
for we are convinced that, left to
his
own
devices, his own com¬
parative
performance
is
even
zero!
Jacksonville, where it connects
Mnntffnmerv
'
mutual
funds,
to
"fiduciary" conduct is
ascribed by much of their public,
able comparative performance re¬
worse.
to
also
We do not believe that unfavor¬
sults
of
confusion
to
tions
commis¬
sions and other expenses.)
---
strictly
'
common
who
pre¬
before capital gains tax
sume,
the
than
preserve
the,
recently repurprice advantage of
a
—
Delightfui
altitude
end
year
$60 million in equipment obligations, $1 million in notes, $37 mil-
.
to
stocks
at
10%
Line,
■
pride that parts of the Fund's
holdings were sold in the fall and
same
investment
as
Relaxation
Fund
appar¬
ent
the
fiduciary pur¬
and prohibiting their ad¬
other
(Significantly,; lead
Feb. 2nd with
on
Line
tn
portfolio activity,
from
portfolio
other non-invest¬
motivation.
ment
at
Territory
iii-t
Conflict With the Mutuals
not
or
the
'
on
Coast
The main line of Atlantic Coast
'
effectiveness
whether
the
op¬
"true
purposes.***
the in¬
proves
for
poses,"
demon¬
negative
of
(End of the Commercial)
frep
(17), providing for their
eration
"bsating-the-market.")
believe
do
contentment
train
"The Florida Special"
fidu¬
on
1
The keynote of the Board's pol¬
icy is contained in an added sec¬
a
stration
is
remaining
material relaxa¬
against
reasonably short-term provides
measure
of that management's
"ability" (our position being sub¬
stantiated
by the funds' high¬
ly fluctuating relative "perform¬
a
in
Syste m's
Governors, like the New
adamant
agree
market
Banks.
Legislature,
that compar¬
ing performance by an individual
a
the
on
National
Board
with
holiday, and this
the 13 preceding years,
trip was made in com-
transportation
Com¬
Trust,■, arrange¬
Young
York
Our Conclusions
Trust
Federal Reserve System to loosen
its
Regulation
F
covering
the
management
penalty
that is
management more
not
Florida
crack
Kansas
Mr.
ment,
But
do
investors.
in
v and
fort
American
City, Missouri.
Pointing out the "amazing growth"
pany
evident."
We
is,
year, as in
the round
reluctance to
Young, Senior Trust Officer, City
that may be ob¬
tained
bad
Its
v
formance of managed and unman¬
for
At-
discussion today. Your correspondent has iust returned from
an
,
advisory
service
will
be better off if explicit considera¬
tion is given to the relative per¬
paid
plan
Railroad.
addition, a rather
personal reason why this particular equity has been selected for
prudence,
the
aged-funds;1
Line
by
with
so
dividend-minded
There
turns from portfolio management., Bankers Association's Mid-Winter
In the long-run, both the investor- Trust Conference by Charles G.
and
Coast
Not
an
the
on
their capi-
solvency has been sedulously sustained
over
many
decades and,
today, the road has a substantial
bank
' ,V,i; V, cretion
to lay or otherwise incom¬
'unmanaged'
petent trustees.
investment
company
will have
Likewise manifesting the bankserved its purpose," the authors
trustee urge for flexibility is an
continue, "if attention has been
.
.
"The
had
compressed
31
portedly followed
'manage¬
>'v
in
the caveat that
the\
managers?
time defaulted
some
debt and
agreement.
lantic
Assembly
allow
to
and
to exercise full latitude
the
managed fund might
do better than the
a
bill
a
their
talizations
(opera¬
States, it permits fidu¬ look about -it, and its common
ciaries handling unrestricted funds- stock offers an interesting value
tive
average
captivated .with
down
State
weakest
a
on
der the prudent-man rule
investment company not come into
being?
York
in
States; but some of the
(or both), at
22
the
other trustees to operate un¬
and
perplexing question that must be
is why has the unmanaged
.raised
;investor
New
railroads
great
them, due either to the impact
depression, or to some financial or managerial shortcomings,
of
individuals'
investment
ket
for
ago
some
of
trust
common
>
>
undergo reorganization.
"strongest and all of the
comingling of
savings into a single
managed portfolio.
years
this paper supports the
view that the average investor in
have
the United
established
This
rate seems
,
We
us
sented in
so
to
events
a
for
run,
position of this distinguished railway,
many decades, that it has never had occasion
*
during
the past
highlight the continuing re¬
week
well
so
PEOPLE'S MONEY"
leading
legitimate hope for
In 1959, there was
By Dr. Ira U. Cobleigh, Enterprise Economist
the
OF "OTHER
man¬
citing
,'
long-term
—
by the
as
net of about $5.50.
a
is plenty of support for the regu¬
lar
$2
dividend
and
provides
•'
RESTRICTING
changes in the
agement is still needed to conform
a
"
an
company
market indexes used—some
to
positions
fund manager as well
of r January-
the
adherence
investment
February, 1960, the authors point
"unmanaged" investment
expect
the
Department of Economies
School
Most railway systems today are
valued
not only for their earn¬
460
DENVER
r
ings from
transportation, but for
the assets they, possess, and earn—
f
I
»
tii
:
CLUB
BUILDING
DENVER
2,
COLORADO
AComa-.2-4331
a
4ia?:. £ ^egi^ridertjJimgS
an<t»U'^riyatefy-negotiated issues'
from 2.80'/v for 1961 to 3.65'/< abouts.-This
.^financing
-■for 1984-1986 maturities". Yes- been ,'long ?delerredj
-
TAX-EXEMPT BOND MARKET
BY
DONALD
D.
MACKEY
terday morning's balance
•
about
■
Also
-
The state and municipal bond
market
has
shown
further
on
i
Tiresaay,
$4900
'
'
well that a dai4
seems
was
'
';
^
"Letters are
-Nf: -y
%///%'v-ViTf2"
J,-■
^^C(?v^inS the
■>-™'Vctv«"n§ the;
been;set.
been.set.
AIbuqu^s#Another/f^ble^-n<sw«-r« :
Mexico
w-
market has-risen m°fbv*thai/
'
$6,700,000.
,700,000.
awaxd-dfsue
00^"
seems
^ver
close to;
yjrglni4>
one-half point,: on the aver-:
•improvement during the last; age,- accorcung to <2
he-Corn--^ Phelos Fenri & Cdmbanw : 8 -as :Uhe date to offer: $25,4 Florida -Turnpike connection
week, although there is some mercial and Financial ChronM
fn' T
f ComDRhvii
000 000 - general
obligation to the' Orlando area ,still reevidence > that higher
prices -de*20 year high grade bond
&
bonds. Funds will be usSd for'mains an;.underwriting, possiand slightly heavier volume Index. The
averagey-teiu wa^V « * _•>.
*
^
^
...
,
men
bility for I960;
are
slowing down the ma'rket reduced from 3.50 %h on-;Feb
tempo discernibly,This, how- 10 to-yesterday (Feb.
'f.W v?
;mating,a 3 94# Jnterest €0^
f
.ever, is a normal situation and 17). The dollar, qUoLu
issues
;-The ^Lnd^ -were
s^led-ifr- •
a
-salutary rather than nega-band.. municipal revenue -yield from •3.00%'ih^l962!;toSIn the following tabulations- we list the, bond;, issues of
tive
circumstance /at ..this
4.00%
in
1978 -1979.
The" $1,000,000 or more for which specific sale dates have been set.
stage of the market - trend. a week ago, although quot
bonds due in 1980 were not
Dealers have over-sponsored tions have been
^Information, where available, includes name of: borrower,/
higher in th
The
the
bal-"amouhtkof: issuer maturity\ scale, and* hour at which bids 'daily
—
4
improvement: in interim. " Some ; reaction' oc- ®
^
^touis-Stone
WeK
.
"
.
...
..
prices* with
their
extremely curred on Tuesday and, more
competitive approach to all particularly, yesterday.' Thc■
i
.TiUy,r\?o
m^n
t? n\ j'
o'\/A r/
general market new issues of-;Illinois
Toll
Road
i
*—-1 at
ieved
:new
.
.
public sale. Although
1/1/95
435,000. At-the
high
as
as
79% last Thursday. -Yesterday
be
to
3^4%
bid
were
'
-eaJ*~
ii*
.•/
'ia //pi. r'jQVy •"
■'.//./■;•//';:
same tine,
,, •
- . ..
February 18 (Thursday)
,
syndicate headed by Sale-, ^iuiriinstofr'Gbinmuhity sen. iL^ist.,- •. <•,v
> .•*■•'
•-■
'• -/•'
m0n,:. Brothers;^'&f^Hutzler-^'- ivSf
v 1,620,000.-1961-1979wwp.m4
Af
•
white
4,
o.,
&&&&&Pariih, Lu.-^/-^--i> ;i,000,000
V-bft* Ma^i'ver Township Local School;-*;
Weld & CombAnv
.
■
fairly
,
u,
r
issues,, continue
.
4qe-nnn
well
received by
higher priced offer;
ing ' scales have i > tended to
slow, down sales,
although cent rise in this issue wai
not
seriously. Profit margins abrupt,; as reported1- in ' last
-have been reduced and, in week's column. Other .issues
•some
instances, unjustifiable have been subject to less corrisks are being involved with rection and, as a
whole, the*
1961-^0- -£2:0u p.m. <
f //f-'\Y/:.5.>44
:00 p.m.
vestors,
7:30 p.m.
ing was -made at yields from: Upper Neche^River Munic. Water
3.00% to 3.40%. The balance:;- AuO'orhy, Texas. r
.
the
hope
that
the
here
may
l«C0v00<)<;1B62,1995
V',V
-
new
,-Vi
is-;/ District,^)hio^„._
-
-
~
.
'
•
Ashtabula-Edgewood Local School
Pris^v.^the, .,$12,435,000 ^.^.- jEotor
•
.t
.
.
•
Coimty lnd. Sch ^i;t., lVxaj
:.i,;o8,000
'
.
Demand
Continues
Strong
nast few weeks.
•
r
'
•
-
v.
''
•
panv
'
Many state and municipal .--/-Recent New Business
at
group
^terest
'
3.29%
in-
bonds,
a
cost. .The
are;
b. Mimice Separate Sch. D.
J
1961.-1973
•
^f- Diablo Unified Sch. Dist.,
scaled to yield 2.75% in 1962
11:00
,1963-1992
with
1961-1989/
a.m.
7:00
:
p.m.
8:15 p.m.
are
going along
The Port of New York to 3.35% in 1980./ The issue.. KiChiend County s'.D. No." l,"sJc"r 1,500,000 .-•1962-1885
higher bidding -re-.. A uthority came to market on is about /half .- sold/at. this. San Diego County, Calif._-l._L-_-', 8,000,000 ,1961-1980;
.luctantly on the justifiable - Tuesday for $30,000,000. This-writing.
.......
/
/?
._
February 24 (Wednesday);
premise that yields generally constituted the week's heavi- p* On
'Monday (Feb. 15): a- Brandy wine; Sch. D. No. 48, Mich.
1,200,000: 1962-1987
still
satisfy most substantial est tax-exempt bond borrow- group of bankers
headed;by
:
a.m.
5:30 p.m.
7:30 p.m.
1982-1984'-
^k"r"-"":
bond dealers
11:00
1961-1980
Cal.
2:30 p.m.
9:00 a.m.
9:00 a.m.
-19614980
-
8:00 p.m.
:
;
.
4961-1980
to t"e ^McCon
'
; ,i;
'
2^50,0Q0 ; 1961-1980
February 23 (Tuesday);^
;• •/
••
,
5»:'Ssr sssass S!»afefeg.SSW. ™
general
improvement
evolve, but the pauses of tax-exempt investment has
be less refreshing,
- v!
been considerable during the
:
•
■
salq^on^ Wedne^a^cqrh-/,.
!™d ™,u
ther
$900,000.
-
..?The only important
list acts relatively welL- It is
market
was
mi
tii\
•2:30 p.m.
Noon
the
•10:30
a.m.
s
investors
-the
and
that
potential
therefore
market
nor?'
ing^ The^ serial .bond/issue Shields T & /Company;; and*
(1961-1980)
awarded
contin-
broad.
very
Periods
would
-
•
-
-
...
11:00
a.m.
.
-
-
have
gone
faster than it has
for
the
made
new
by
-
year
many
prognosticators
lower bond
of 1960 and
equity
-
important Company group,-represented-Phelps, Fenn & Company and- ;>;
° a- 3 68% ; ir»tpri^<:t-^nnct
THp innlnrlincr filnrp^_
a
ilk/r
,
v
IMofltfay)
®
steady.
bond %1979. The 1980 maturity
was
high bidder;;
publicly.; Initial Dallas,-Texas
completely change sales represented almost 50% ,fion limited tax bonds
their sights. This situation has of the issue..
-:_• •••.
same
day.-. Scaled
not reoffered
w
-
the
9Q
...
market
market;. Many
.limited
JJ
heralding
1 dealers have found it at least
difficult to
f
19614985
- -
; :2:00 p.m.
of
-
;
8:00 p.m.
Noon-
was
to, Phelps, Fenn & Company was
;
;
the group headed by Halsey,: the high bidder for $8,000,000//Irhprovement Di t4-f >tn.jt Tpx.
° 000,000 v; 1964-1999
11:00 a.m.
resistance will develop,
they Stuart & Company-Drexel
Dallas, Texas Sewer revenue
•
•
February 25 (Thursday) figure, but yields can be con- Company-Glore, ; Forgan > & bonds. The
group bid a net Alabama Education Auth. Ala/__r20,000,000 - 19614980/ 10:00 am.
siderably reduced before de- Company ' a n d i^ Ladenburg interest cost-of about
1961-1980
a.m.
3.428%/^yaho|ahc^^Y^i®-p"-:p-/ h10,460,000 : j1962-1985 ' •'11:01 p.m.
mand is shrunk to a serious Thalmann
1,100,000
8:00
/ &t Company
on Reoffering
yields ran from
extent. The market doubtless their bid
.1,270,000 .1964-19901. .5:00,p.m.
designating a 3.65^ .; 2.70% for ,1960 to 3.50%/ for; Northeastern Local, $ch., Dist,, Ohio ; .4.200.000 a-f9614-983 Noon
-ues
-
8,'0O0,a06f
Sheiby CounVi^Tenn.:n;^::::;;
Tarrant County Water Control and
oqo
'
market
improve-
Another important
Independent-
on,
,
new
3.50%/.for
is-
.
c 00^^'
-
;
■
19794 1980
Noon
1961-1980,
I,-,
in
early
when
less
1959
and
technical
stimulating
in
1958
factors
1964-1989/ 11:00 a.m.
were
than
ning
included Kidder
group
2,000,000 •/1962-1985'
11:00 a.m.
have
1989
8:00 p.m.
1980
2:00 p.m.
obtained in 1960.
.Yield Index Lower
During the past week
state
and
municipal
award
the
bond
was
interest
made at
cost.
The
a
3.629%
scale
ran
;
California (State)
Connecticut (State)
New Jersey
Highway Auth.,
New
New
3%
1978-1980
3.55%
3.40%
1978-1979
3.50%
3.35%
1974-1975
3.25%
'3.10%
3.25%
3.05%
1977-1980
3.40%
3.25%
33/4%
SVa
1978-1980
3.85%
3.70%
1980
IIIII
3.70%
3.50%
3Y2%
1980.
3.55%
by
3V«%
1979
3,75%.
3.60%
3.70%
revenues^
State
February 17, 1960
314%
1977
3%
1980
—Index
==
3.90%
.•
.
3.46923
.
4.05%
bonds
certain
-
?outh Carolina
Yoi-k .-State Thruway
(1961are
Auth,,
mverside city School
to / the.-Sfe
./ /;
•
:J -
^0»000,000
/
se-
highway
allocated
:5,000,000 r/1//
-March 3 (Thursday)
AT/
;/•./;/' •'";./
11:00 a.m.
Mich.,/.;/8 / 'HZol
Ctete County.
.
i'//;
;
-%
Dkf
Highway Department White Bear Lake Independent Sch.
/'
and to
the
City of Grand
District No. 624,
1,200,0001963-1981
Rapids. The obligations seem • ' /
; v:
March g (Tuesday.)/^I;
well
secured
by dedicated Cook County, 111—_______
25,000,000/ 1961-1970
10:00 a.m.
-
7:00 pm-
,
,
3.40%
City, TSf. Y.
3.40%
III,
Cincinnati, Ohio
New Orleans, La
Chicago, 111
New York
3.70%
3.55%
1978-1979
Calif.
Baltimore, Md._
'•
3.85%
1980-1982
3V2%
Housing Auth. (N. Y., N. Y.)
Los Angeles,
1978-1980
33/4%
33/8%
3Ys%
/ Vermont (State)
bonds
These
Asked
3%
York (State)
Pennsylvania (State)____
i
Bid
3%%
"III
Gtdlll
Expressway
cured
'
Maturity
of Michigan
plans to of$18,000f)00 Grand Rapids
1976).
MARKET ON REPRESENTATIVE
SERIAL ISSUES
Rate
fer
revenues.
-
,
It
that
is
:
reported
theNew
of
i-
March
on
_
1985
-
1U-
to
"■
due
..there-
*<
'
-i
No
v
•
423
;
?
Minn
'
r?lan-
"
'I '
N. C........
.
l.ooo.ooo"
1962-1979
'.,/,/•:
•
•'
•
10:30 am
;
v
,i.
March 21 (Monday)V-V/%:/
Dist
%
ocnvulslv
11:00 am
.
;
1,300,000
March 15 (Tuesday)
Hhtrhinc
t
/
' v
Hutchinson. Independent Sch
-•
-
100,000,000
————
Mo?tgo,,'ery Eoimty,
■
or
'
■
3, $50,000,000
1995
March 9 (Wednesday)
.
e of)
State
State-guaranteed bonds
irom
•
>
unofficially
York
Thruway Authority planssell
•
:r
•
•
;
.
:-/-/
,:;:
2,395,000 /1963-1990
;;
i
'
••
_
>3:00 pm
Volume 191
Number 5926
.
The Commercial and Financial Chronicle
.,
(759)
age cost of 4%,"resulting in prior
charges of $2,800,000.
Deducting
these prior charges from the
$6,000,000 * - of
allowable
earnings
4
•
'By Frederick W. Page, Partner, J^ & W. Sel'gman & Co., and
■.
leaves
Vice-President of Tri-Continental Corp., New York
City
•
Drawing
26 years of utility investment analysis experience,
upon over
Page rebuts popular fallacies and misconceptions held regarding
utility stocks' performance in general and electric issues in particu¬
growth
in
or
comparison
with
P/E
opinion, utility, stocks are
less understood by investors than
my
nthor-
anv
nf
matter
a
of
connritioc
bel'eve
the
investing
public is com¬
ordinarily
be
ah
1.8%
a
revenues
? 7? y
rising
ing to the in¬
dition,
vestment
gant
Among
the
_
prevalent
misconceptions
<i) utility -earnings are hurt
by inflation, (2) tight money-conditions have a particularly harmful effect on utilities, (-3)v utility
more
of
finan-
-15
•
capital
new
raised
is
times
are
electric
on,
there
is
of
use
average
that
is
of
ings.
sell
Since
at
tain
a
their
the
to
amount
produces
]?rom
wages
which
this
must
fjXed
new
leaving
be
$4,275,000
common
on
ad-
of
1^00,000
$9,000,000.
of
the
$4,725,000,
available
stock.
This
shares
for
amount
amounts
to
$2.85
a share as compared to the
$3 20 earned before the financing
extrava-
electricity;.during
__a
decline
can.
easily
and
effect of rising, interest
3c
on
of
11%.-
The
understand
public
this
cause
rates
pflrninps HPTirp^sant
will
we
assume
that
investment
book
value
growth
in'
to
earnings..
y
.
earn¬
i>//;
Utilities
it
is
Defensive
would
of
have
the
with
a
the
of
loss
of
at
in
market
a
the
the
Average
end
value
1959.
of
showed
year
maximum
a
a
book
28%
being shown for 1941. Your final
investment in the Tri-'
Continental
utility
would
had
have
would
quite
util¬
portfolio
value
a
of
$1,There
of Dec. 31, 1959.
as
have
been
only
one
year
covered when
years
year-end 'values
showed
a
loss,
and that would have amounted
character¬
only 10%.
istic and
they have limited growth
potential. It seems as if I have
we
to
Is it any wonder that
.a
favorable
attitude
.take
toward electric utilities?
heard these
thoughts expressed a
million times. Hardly a day goes
by that I do not read or hear
opinions to this effect. It is true
that many
these
But
look
then
I
our
results
over
and
evident
that
is
I am sure that there are
still many who have your doubts
about what I have said about ihe
characteristics.
at
vestment
it
Take the 1947-49 Period
Now
large well-known util¬
ities .have
beliefs
is
true
the
feel
true test of actual investment
another
large segment)of the industry. We
kept a record of the year-
perience over
that
period
a
that
ex¬
saw
rapid
inflation, rising costs, par¬
ticularly in wages, and a doubling
to-year results of our utility port¬
Tri-Continental Corpora¬
folio in
since
still
you
would
of
have
tion
and
flation and rising interest rates, I
like to give my thesis the
years
neither
for
industry,
electric utilities cannot combat in¬
in¬
own
of
1938,
interest
rates.
through 1959
and an investor
could not expect to get more fav¬
which
we
included
From
had such
the
a
1947
period
Korean
War
and, therefore, should • be, bought 1, The; theory
»that utihties^re1 s<?^d at a premium-of ■ 150-% -over
and a rapid industrial expansion
orable results in any industry.
only at times of uncertainty, and hurt-'
by:' inflation-, also" reasons I took.:, Many electric utilities are
Assume that at the close of 1938 which should have had a rela¬
(4) utility stocks are income pro-., that natural resource
companies? seUlnS
at f"ch premiums,.-and
ducers
but.. have
very
limited, are benefited But 1rv to convince somc are sellinS at over 300% of you
invested
$1.00,000
in
the tively favorable market influence
on
industrial stocks.
Standard & Poor's Utility Aver¬
growth potentials. In order to ap- the
During this
copper or 'oil people or the
book ™Iue' Under, this assumpperiod our Tri-Continental utilitypraise
the ^putlook
for utility investors in those industries that ^10n>'**- w0"
'be lsau* age, which includes many large
which
is
stocks vitus essential to examine
composed
„well known companies, another portfolio,
they are benefiting from inflation. ance, °f,
^n/nn
these
f /i e
universally accepted con- xhe
in the Dow-Jones In¬ largely of the growth companies,
natural
economic-law
of s?eacl,?f„„„0S£, ^ shares to raise $100,000
showed a year - to - year gain in
cepts,,
dustrial
Stock
/: •' ./.
~
"
"
Average, and a
supply and demand is a tougher
With ?200
final $100,000
in the Tri-Conti¬ every single year, whereas the
taskmaster 'than man-made law
Effects of Inflation
*•'
'
'
p
<K4'~
Continued on page 2.6
limiting the rate of return for 000 Shares outstanding, the $4,- nental utility portfolio. Your in¬
i h
The theory that utility earnings
utilities
are hurt by inflation sounds most
;
7.•-.,•••
logical on the surface. The reaEffects of Tight Money
- /
This announcement is not an
offer to sell or a solicitation of an offer to buy these securities.
zoning goes something like this:
;Xhe second misconception thatThe offering is made only by the
Prospectus.
•.
Utilities,
being regulated,
are
tight money conditions are par.
m,Standi3
..
,
.
,
_
free
not
to
increased
cannot
commis-
plausible
this approval
and
always
an
is
lag. Since utilities
to
^immediately
costs
on
to
earnings
market /
that
99
out
of
concerned,
,v</
for
of
first
my
inflationary:
ground'
the
jobs
/ ;
economy."
studied
we
1919-1920
to.
However/there is
'For back-
the results
period.
Thirty-Three Year
higher
a
■*
•
/
Dated
factor
that
is
a
difficult
had
more
: stand.;
of
explain
Many; i utility, :• executives
The
and many sophisticated investors^
fail to grasp the full significance
of the benefits to be derived
fr.qm
selling new stocks at a consider- :
Wage,, and
or
less
>/.<-, i' >7;
utility
con-
to.
spite of this,
have been in a
earnings
-though
have
I
studied
trend.
upward
the
not
that utilities weathered the storm
much better than almost any other
industry.
The
/
reason
/-
\
that
.
experience does not-conform to theory
is that electric utilities, have only
two major variable costs — fuel
and
wages.
ent
Fuel costs take about
clauses
in
have automatic fuel
their
rate structures
to the consumer
are
market
pass
anywhere
on
from
60%
the - increased
to
15
•
■.**. * .*
a..
"
t'..
;; ,■;
under pres-1
ladenburg, thalmann &. co.
wertheim
.
l.
f.
rothschild
&.
INC.
bear, stearns & co.
t
equitable securities corporation
conditions, and most
&.
co.
co. 1'
a.
c.
allyn
and
company
INCORPORATED
american securities corporation
The
easiest
significance
rates
and
stock at
a
way
to
show
of * rising
the
sale
of
-
coffin &. burr
dick &. merle-smith
'
INCORPORATED
hallgarten
co.
&.
bache
&.
co.
r.
s.
dickson
the
&
company
INCORPORATED
interest
ira haupt & co.
shelby cullom davis &. co.
wm. e. pollock & co., inc.
common
premium is to work out
baxter
&
company
gregory
&
sons
hirsch
&
co.
these factors
mathematically for a
utility. First take a
with $100,000,000
of in-
hypothetical
6%,
ital
or
capital
which
on
$6,000,000:
bf
it
Give it
structure
over
.
vK< n..
salomon bros. &..hutzler
//
e. f. hutton
a
-
&
/
company
new york hanseatic corporation
•
earns
ball,
burge &
kraus
•
)"
cooley
&
company
courts
&
co.
cap-!
"$70,000,000 of
prior securities and $30,000,000 of'
common stock, represented
by 1,,100% of
price of 000,000
shares ^having, a
bookfuel. Consequently,- it is
only the value of $30 a share. Assume, that,.
wage cost factor.that can have an ihe
prior capital has been sold important effect on earnings. But over a period of years at an averwhich
,
t
i
conditions, comlikely to be 'in'
utilities sell at premiums
ranging from 50% to 250% above
book value.
16% of gross revenues, and wages utility
about 18%. In the case of fuel,, vested
most utilities
.
electric
,
actual
stocks
Certainly that is true
and .French
me
-
i.
HALSEY, STUART &. CO.
favor and, if so, ivill sell at premiums-above their: book- value;
Al-
inflations, those who have tell
inflationary
mors
-personally
German
j
Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
able
tinuous inflation/In
pronounced
February 1, 1993
Pt •ice 101.198% and accrued interest
;
premium L over book value,
show a satisfactory gain. Through- -Under
tig h t money conditions
out the post World War II period
when interest rates are
rising due
have
Due
.
more
to
5H%Debentures
and" even more difficult to under-,
particularly / f u e 1/. costs % skyrocketed
at that time, but
still
electric
earnings,'were Table- to
we
v.; I7 :;'-
'
February 1, 1960
significant but very subtle offsetting
an
Telephone and Telegraph
any
some
ital and allow the utility
rate of return.
/
see
was.
/
are
commissions rec•: ognize this increased cost Of cap--
fare- in,
.
■*
to pay 5%%
prior
fivst place,
program, .and
utilities, would
Pacific
/
capital than they
they paid only 4%
compensating fac-,tors that often al,e ignored br
completely misunderstood. In the
1933, when. I first became a
student of the utility industry, the
New Deal had just, launched - a
how
$72,000,000
than,
child
a
-when
there
In
one
frequently
more
their
were
in-
'
inflationary
Not only
limited to
yestors accept this theory on -its
anx*? ythe facts; indicate
SG
ar/ fa electric
utiliti.es are
broad
the surface.
understand that utilities being
a 6%
return are worse
can
un&ble
100
utilities
other industries, but even
consumer,, their
bound to be hurt,
are
sure
on
to
utilities coming to the capital
are
«extended
are
harmful
pass y increased 0££ when they have
the
am
ticularly
necessary, and at the
best there
I
cover
^always be obtained to the
f
time
without
cosis
approval,
sion
to
rates
raise
goodbody
&.
co.
h.
hentz &.
co.
McDonnell
& co.
INCORPORATED
stern
February 17, I960.
brothers &
co.
swiss american
■
.
v
loss
of
loss
$100,000
and
of
shown
close
investment
had
$439,000
of
«.•
are
appeal
their defensive
have
the
maximum
Industrial
out of the 21
The final two fallacies
31,
worth
There would have been six years
when this account as of the close
Sluggish?
only
the
$100,000
584,000
Are
of
as
Dow-Jones
growth
•
,
Dec.
49% occurring at the end of 1941.
utilities
stronger
a
would
with
Your
of growth in
earnings, the
higher is the premium over book
value likely
to be.
The higher
this premium is, the more it will
contribute
loss
year
stock, the
on
of
been
would have
been 7 out of 21 years when
your
rate
these
P
But take all of the above assumptions with one exception,
celerates by more" than the amount -Instead 'of assuming that the new
necessary tooffset the added wage~ common
stock is sold at book
v/-/ value,
Average as
1959,
would
have
$253,000 and there
of
return
deducted
charges
the
are
In
earnings
Utility
-
ities is
6%
a
vestment in the Standard & Poor's
higher premiums, they ob¬
snow-balling, effect from
financing.
The faster the
similar—the
at
book
over
common
greater will be the effect
000 000
which
com¬
earn¬
share.
a
obtained
the sale
on
gross
energy.
.
$3.56
value,' requires the issu0f ; 500,000 shares. The invested capital then becomes
$150,-
With
costs.
of
the
on
produce
Thus, noi
only would the effect of higher
interest costs be
offset, but there
would actually be a gain of 11%
in earnings.
It is therefore, ob¬
vious that the higher the premium
which, when sold
room turning
off lights. Consequently the normal growth in
the consumption of electricity ac-;
arevdefensive in character
ings
would
book
be offset
a,-, more
an
$15 000 000
earnings
anee
in
devices
stock
common
at
and
of
of
stock
evident
is
can
wages
If
51/2%
to
are
stocks
rates
wage
of
cost
such periods. Air-conditioners and
TV sets are left
running and few
people bother to go fiom room
Frederick W. Page
stocks.
•
since
labor-saving
such
rphJ
The
value.
generally that both industhe housewife turn to
based
of
effects
co^mon^t^cT^s^soh? ^book
try, and
mer¬
the
.
gross. It is during these
basic
fac¬
eliminate
prior, capital, we will assume that
;
-the capital structure is maintained
"/at the 70-30 ratio, there are no
rising.
are
increase
inflationary
tors contribut¬
its
that
assume
stock
the
and
financial
a
■
rial factors other than the cost of
:
.
added costs
in
program
$50,000,000 of new
would
probably
five-year period. In order
£°me only during a pe- •prior' securities,
by
electric
utility
to
even
"Smg^l'0% annually, it
that the
in¬
an
vestment
company
Jnr ">creases, in, w?g„e' rates through the sale of $35,000,000
normally
we
can
the
expansion
which
'
industrials.
throughout industry
obtained
from
cover
nod of inflation when wage rates
.
both
to what
as
/
.
'
that
assume
an
common
share.1
a
which requires
this rising cost is
compensated Tor by other factors.
pletely misin¬
formed
of favored
ac
behevf thlit
that
I
fact '
ratios
Now
capital
lar. The investment company executive deals With their
growth record
and potentiality compared to the
industrials, the averages and the
usual examples of growth
companies, and shows why many singular?
utilities commonly judged overpriced are not in terms of their future
/
In
or $3.20
"f faces:
,
Mr.
..-
$3,200,000 for the
stock,
275,000
mon
7
corporation
iwr* t,
8
(760)
Corp.,
Warner
&
Swasey Co., and Houston Natural
Gas Corp.
American Insurance Co.—Analysis
—Hornblower & Weeks, 40 Wall
ment
TO
SEND INTERESTED PARTIES
N.
THE FOLLOWING LITERATURE:
Research
Company—Data—L.
& Co., 120 Broad¬
way, New York 5, N. Y.
Also
available are data on Swift & Co.
Louisiana
—Cooley
&
Co.,
Gas—Review
100
Hartford 4, Conn. Also in the
Bank
Index
Theory
Bulletin
—
circular
—
Draper Dobie and Company Ltd.,
Adelaide West, Toronto, Ont.,
25
Canada.
Stocks
111th quarterly
comparison of leading banks and
trust
companies
of
the
United
—
New
—
Corporation,
York
a
bulletin
.1-
York
Hanseatic
120 Broadway, New
Y. Also available is
N.
5,
Bank
on
Stocks
Treasury Refunding.
Analysis of 1959
—
year-end reports of a group of
leading banks—Blyth & Co., Inc.,
14 Wall Street, N6w^York
5, N. Y.
Burnham
View—Monthly Invest¬
ment Letter—Burnham and Com¬
15 Broad Street, New York
pany,
5, N. Y.
Also available in current
Canadian Agriculture—Review of
prospects—Bank
Toronto,
Ont.,
of
Nova
Scotia,
Canada.
Canadian "Convertibles"—Review
—Saunders
Cameron
Street,
Ltd.,
55
Toronto
1, Ont.,
Canada.
-
Stocks—Report
12 is¬
on
Tokyo,
ku,
tabula¬
a
appear
interesting—
Penington, Colket & Co., 70 Pine
St., New York 5, N. Y
showing
stocks
used
Averages
counter
the
the
compari¬
listed
in
and
the
the
industrial
Folder
—
up-to-date
an
between
son
investing in mutual funds
able
without
and
civic
his
&
industrial
Dow-Jones
35
over-the-
stocks
used
in
National
Quotation
Bureau
both as to yield and
market performance over a
20year period — National Quotation
Policy for 1960—Re¬
view—Bache & Co., 36 Wall
St.,
New York 5, N. Y. Also available
are two
suggested
portfolios, and
memorandum
on
New
York
Central.
Inc.,
46
4, N. Y.
Front
Street,
Sales
for
1960—Survey—
Bach Associates, Inc., 245
Henry
Fifth
Ave., New
($1.00).
York
Understanding Put &
Herbert Filer
Publishers. Dept. A-7,
tions
—
Avenue,
South,
New
(ten day
Y.—$3.00
16,
N.
Call
Y.
Op¬
Crown
—
419 Park
York
16,
free
ex¬
amination).
Western
nual
Canadian
edition—Including
Natural
&
son
York
Oils—14th
Gas—James
an¬
section
a
Richard¬
Sons, Inc., i4 Wall St., New
5,
N.
Y.
*
*
*
Addressograph Multigraph Corp.
—Review—Fahenstock & Co., 65
Broadway, New York 6, N. Y.
in
the
same
review
is
Japanese Stock Market—Study of
changes in postwar years—In cur¬
of "Nomura's Investors
Beacon"—Nomura Securities Co.,
Ltd., 61 Broadway, New York 6,
N.
of
Y.
Also available is
the
outlook
for
review
a
Plant
and
Equipment Expenditures in Japan
for
1959
and
brief
analyses of
Mitsubishi Heavy
Industries, Nip¬
pon
Co.
Flour Mills Co., Iwaki Cement
and
a
survey
of
the
Steel
Industry.
Japanese
mation
Stocks—Current
—
Yamaichi
Infor¬
Securities
Company of New York, Inc., Ill
Broadway, New York 7, New
St.,
Darlington
New
Beech
&
are
Allis Chalmers
Manufacturing Co.
—Report—Harris, Upham & Co.,
130 Broadway, New York
5, N. Y.
Also
available
are
reports
on
Airlines, American
Motors Corp., J. I. Case
Co., Cerro
De
Pasco
Corp., the Printing In¬
dustry, and the outlook
Non-Ferrous Metals.
for
the
Allis
Chalmers Manufacturing Co.
—Analysis—Carreau & Co., 115
to
with
Arkansas
Louisiana
Japanese Trade and Foreign Ex¬
change—Review'—Daiwa
Securi¬
of
Southern Company and
Oil Stocks.
Francis
and
Corp.
Report
Lowell,
—
Analysis—R.
—
G.
Co., Inc., 160 Broadway,
Corp.
—
Jack¬
Philco
Corp.—Report — Thomson
McKinnon, 2 Broadway, New
4, N. Y.
&
York
Phillips
Petroleum
—
available
Also
Photronics
is
an
analysis of American
Development Corp.
Re¬
search &
Crompton
&
Corp.—
Study — Simmons, Rubin & Co.,
Inc,. 56 Beaver Street, New York
4, N..Y.
3 ,,/
•
Co.
memorandum
Reading Corp.
Corp.—Review—Theo¬
Co., Inc., 82 Beaver
Street, New York 5, N. Y.
Progress
Manufacturing Co., Inc.
Sulzberg¬
Jenks, Kirkland & Co., Phila¬
delphia National Bank Building,
Philadelphia 7, Pa. Also available
er,
reviews
are
of Airwork
National
Public
Aeronautical
Corpora¬
Service
Corp.
Electric
&
Gas-
Goodbody & Co., 2
New York 4, N. Y.
—
Broadway,
Power.
Gear
dum—J.
W.
Works—Memoran¬
Sparks
&
Co., 120
Broadway, New York 5, N. Y.
Kalvar Corporation—Analysis—L.
H.
Rothschild
&
Co., 52 Wall
Radio
Corporation
Inc.,
N.
Railway Co.
Bulletin—A.
C. Allyn & Co., 122
La Salle Street, Chicago
3,
Y.
on
In
Salle
&
Township
Livingstone Counties
School
District
High
Bulletin
—
The
—
Illinois
of
America-
Kidder
&
Co.,
the
circular
same
are
Richardson Co. and Blaw
on
Also
available
Business
particular
is a report
Industry with
Forms
reference
Corp.,
Ltd.,
Uarco,
111.
M.
1 Wall Street, New York 5,
Knox.
Kansas City Southern
on
Analysis— A.
data
Street, New York 5, N. Y.
are data on MagnaCopper Futures, and
Wisconsin Electric
Co. and
bulletin
a
Inc.
to
Standard
and
Moore
Register,
Ennis
Business
Forms.
Rohm & Haas Co.—Memorandum
—Woodcock,
Moyer,
Continued
Lindberg Steel Treating Company
Inc.—Analysis — Cruttenden, Podesta & Co., 209 South La Salle
Street, Chicago 4, 111.
Fricke
on
page
Loral
Electronics
WHEN THE
Corporation—
Analysis—Sutro Bros.
Broadway,
New
Also available
Corp.,
B.
F.
&
York
5,
N.
Y.
9}
I^afi
reviews of
are
Goodrich,
IS FOR
Co., 120
Fruehauf
Analysis —
Cohen, Simonson & Co., 25 Broad
St., New York 4, N. Y.
California.
Cutler
dum—First
American Commercial
Barge Line
—Discussion in current issue of
Alstyne, Noel &
Street, New York
Commercial
Trailer and Allied Laboratories.
Broadway,
New York 6, N.
Also available are
memoranda
General
Cable, and Union Oil
"Investor's
Reader"
-
Y.
on
of
Merrill
Lynch, Pierce, Fenner & Smith,
Inc., 70 Pine St., New York 5,
N.
Y.
In
in the
Hammer
—
Analysis—Van
Co., 52 Wall
—
N.
5,
circular is
same
Y.
an
Also
analysis
of Arkansas Louisiana Gas
Co.
Cyprus
Mines
-
Corp.—Analysis—
issue are re¬
views of American
Motors, Black
Hill
Calif. Also available is
the
same
Decker, Carpenter Steel, Fair¬
mont
Foods
Co.,
Gillette
Co.,
Orange & Rockland Utilities, In-
Richards
&
Co.,
621 South
Angeles
14,
an
analysis
of Financial Federation, Inc.
Spring
Street,
Daystrom
Los
Inc.
reviews
are
For
financial institutions
cal
Co.,
Shell
tric
is
Currently Trading Actively—
—
Review—J.
A.
a
of
Monsanto Chemi¬
Lighting Corp.,
and Virginia Elec¬
Co..
Power
Co.
Also
memorandum
Leaf Tobacco Co.
on
.
First
Universal
American-Marietta Company
Haloid
International Recreation
Corp.
Corp., 84 Ex¬
change Street, Portland, Maine.
P.
R.
Mall or y
&
Parker & Redpath,
1705 H
Street, N. W., Washington
6, D. C. Also in the same circular
is
an
analysis
Talk
I-T-E ' Circuit
of
Mattagami
Lake
Mines
You'll get fast action
Memo¬
—
randum—Thomson, Kernaghan
&
and the finest co-op¬
Co., Ltd., 67 Richmond
Street,
West, Toronto 1, Ont., Canada.
eration from
Rubber
Company
An¬
financing and credit
Co., Inc.",
Building, Cleve¬
/;•.
.
National
Propane
South
.
specialists.
:
Corporation
Eichler & Co.,
James Talcott, Inc.
Spring Street, Los An¬
J
geles 13, Calif.
Niagara
Mohawk
Analysis
H.
—
Power
Hentz
Street, New York
Also
available
NEW YORK
221 Fourth Avenue •
ORegon 7-3000
Other Talcott Offices Serving:
1
Chicago • Detroit • Boston • Atlanta • Los Angeles
Corp.—
&
Wall
Co.
72
Southeastern Public Service
York—Bulletin—Laird, Bissell
&
is
5
N
bulletin
a
experi¬
commercial
enced
Mohawk
to
Talcott
Breaker.
453
City Bank of New
Factoring
Co.—Analysis—
Auchincloss,
Report—Bateman,
;
v
Financing 0R
Co.—Memoran¬
Maine
available
&
National
Insurance
Union Commerce
land 14^ Ohio.
Company — Analysis—
Joseph Walker & Sons, 120 Broad¬
way, New York 5, N. Y.
Ling-Altec
Maine
alysis—J, N.'Russell &
Pacific
Oil
&
Deere
Y
on
Primary Markets In
f,
Electronic Acctg. Card
Corp.
Horizon Land
O'SulIivan Rubber Corp.
TOP FLIGHT TRADER
With
TROSTER, SINGER
& CO.
#
is
experience
seeking
a
in
all
himself"
basis
with
on
opportunity.
.
a
.
IMC Magnetics
.
Daryi Industries
of
types
connection
large, reputable firm preferably
.
with
BarChris Construction
a
American Int'l Bowling
"prove
Box 210.
Trinity Place, New York 6, N. Y.-
HAnover 2-2400-
heavy
Securities
.
Members New York
Security Dealers Association
74
•
•
•
&
39
CALL
Knowles
Crouse-Hinds
a
dore Arrin &
Indiana
Building, Denver 2, Colo.
5, N. Y. Also available
is
Philadelphia &
on
Company-
Schweickart &
Co., 29
New York 6, N.' Y.
vox
bonds
New York
2
Memorandum
—
—Kidder, Peabody & Co., 17 Wall
Street, New York 5, N. Y.
Company, Incorporated, 231 South
La Salle Street, Chicago 3, 111.
Copperweld Steel Co.—Analysis—
W. E. Hutton &
Co., 14 Wall St.,
Newark
,
Papercraft
Review
Murphy & Co., Inc., Denver Club
.
Incorporated
Street,
Also available
La
—;
&
-
McFadyen Securities Limited,
Craig Street, West, Montreal,
Que., Canada.
South
O'Nuts—Memorandum
Co., 72 Wall St., New
Corp.
Commerce
N. J.
455
Re¬
—
5, N. Y.
Clute
and Weissenborn
er
Banks
Comparative
—
of Dec. 31, 1959—Park¬
as
son,
Dallas 1, Texas.
York
Co., 1 Wall
Home Oil—Memorandum
analyses
port—Eppler, Guerin & Turner,
Inc., Fidelity Union Life Building,
&
Inc.
Worth &
Burroughs Corp.—Analysis—Hayden, Stone & Co., 25 Broad St.,
New York 4, N. Y.
Chock Full
&
Pont
New York 38, N. Y.
are
figures
tion, Collins Radio Company, and
Heublein,
of Wells
Fargo Bank American
Trust Co. and Bullock's Inc.
—Wolfe
du
Celanese.
Montgomery St., San Francisco 6,
Transformer
I.
Jersey
—Analysis—Hallowell,
Street, New York 5, N. Y.
Also
available is a memorandum on
—
Central
Wur-
on
Pacific Mercury
Electronics.
Broadway Hale
Stores
Inc.
Analysis—Dean Witter & Co., 45
Calif. Also available
data
are
Company,
Harris Intertype—Memorandum-
bulletin
a
Co., 818 Sev¬
2, Colo.
Denver
Electronics, C. G. Conn Ltd., Brit¬
ish Industries Corp., Ling Altec
the
Co.
Street,
available
Also
litzer
Zellerbach
Hogle & Co., 40 Wall Street, New
York 5, N. Y. In the same
circular
The Kratter
Corporation
enteenth
on
&
York.
—Amos C. Sudler &
Gas
New
Companies
Broadway,
particular
Crown
Northern
Trust
24
Company-.
— Blyth
& Co., Inc.
u
Street, New York 5, N. Y.
Wall
Wall
40
analyses
Industry
Northern Natural Gas
Analysis
Hammond Organ Company—Data
Life
yielding 6% or
analysis of Crown
an
Seal Co.
&
Bulletin
Savers, Inc. —
Analysis — Reynolds & Co., 120
Broadway, New York 5, N. Y. Also
available
Cork
—
Report
Co.,
5, N. Y.
York
Nut
Paper
Corpo¬
Financial
Western
6 Co., 30
—
Stocks
and
ration—Analysis—Stanley Heller
Pine Street, New York
5, N. Y.
5, N. Y.
an
analysis of Sunshine Biscuits, Inc.
American
rent issue
Co.—Analysis—Vilas &
Hickey, 26 Broadway, New York
Bureau,
New York
Also
Investment
Ford
*
Corp., Great Northern Paper, In¬
ternational
Paper,
Kimberly
Clark, Mead Corp., and Sealright
Oswego Falls; United States Steel
Corp;
Anheuser
Busch,
Inc.;
avail¬
audiences—Kalb, VoorBuilding,
&
reference
charge for business
Co., Woodward
Washington 5, D. C.
Penick
Averages,
on
—
Great
Fiberglas,
Over-the-Counter Index
.
How Green Are
My Dollars
21-minute color film on value of
Armour &
ing
Manufacturing
Gray
Owens Corn¬
Hill,
which
sues
and Stewart Warner.
on
Beckman Instruments
N.
Favored
a
Chiyoda
same
CompanyAnalysis—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.
data
are
tion of spot, quotations on
leading
Japanese stocks on the Tokyo Se¬
curities Exchange.
Retail
Foreign Letter.
Yonge
Otemachi,
Japan. Also available is
Bank
States
ties Co., Ltd., 149 Broadway, New
York
6, N. Y. and 8, 2-Chome
St.,
Pearl
CoI"Pany~~
Steel
City
Analysis—Carl M. Loeb, Rhoades
& Co., 42 Wall Street, New York
5 N Y. Also in the same circular
are
data on
British Petroleum,
Kentucky
Utilities,
Tennessee
Corp. and Warner Lambert.
Y.
Arkansas
Rothschild
Granite
Develop¬
&
Railroad
more,
Motor
Ford
F.
Corp.—Analysis—Gruntal &
50 Broadway, New York 4,
Co.,
UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE
PLEASED
IS
IT
American
Thursday, February 18, I960
5, N. Y.
St., New York 5, N. Y.
AND RECOMMENDATIONS
.. .
New York
Meeds, 120 Broadway,
terchemical
INVESTMENT LITERATURE
Chronicle
and Financial
The Commercial
DEALER-BROKER
'■" |W* '" '
,
-
Teletype NY 1-376; 377; 378
The;iCommercial
-
25
Park
&
Financial
PLYMOUTH SECURITIES
Chronicle
Place, New York 7, N. Y.
•
C O
R
ORATION
P
•2 LIBERTY STREET
•
•
•
N.Y.
N/Y, 6»
'
Dlgby 9-2910
'
Teletype N.Y. M530
\
Volume
191
Number 5926
The Commercial and Financial Chronicle
.
(761)
tenders target at each other,. I
am
military strategist, but common
sense
tells me that though sub-
no
Re-Unite Willi the U.S.
Mr. Bower
was
where
studied
he
to the
financed
and
law
built
and
the
Ambassador
Windsor, which for its day
then
the author
and
has
entered
and
then
rea,
live to
proposal for union with Canada. Bis brief sets forth
believing such
and inevitable. He reviews the divisive and
merates five steps
ates that it is but
united
arguments;
and
a move;
for
Exactly!
Not only was Canada
our sister colony before the Rev¬
olution, but when we drew up
of
u?1?,n
fnr
^
National
Self-Preservation
,
.
•
,,
Nowhere else
...
,
on the Slob6 will
fmd anything resembling the
relationship of Canada and the
Confedera¬
m.
A
u
Umted States.
mittee
ford
of
"Canada,ac¬
ceding to this
Country, destiny has beckoned her
towards her one neighbor, whose
5,000-mile common boundary sug¬
fense
Confedera¬
gests that any relationship short
of union is unrealistic. But there
tion, and joining in the
is
of
;
all
to
the invitation has not
now
been accepted, but I believe I can
my fellow-Americans in
saying that its spirit still stands;
speak for
and
surely its renewal has never
been more timely than right now.
On the Ambassador
Bridge,
bronze tablet
a
which says:
Pilgrims at.the dinnef to
New
York
-
aim as its
founder to bind more closely to¬
gether two thriving Cities of two
great nations. Since that day, trade
between
was
the
Canada
has
tenfold.
In
my
United
of
persons a year now
der,
most
traveled
duties
custom
to
be
in
the
"manned
and
III.
interlocking ef¬
past has
made
makes
now
this, but liaison will
Can
to take
effective
prompt,
because
ordinated
the
In
spring
Whether
now
In
Byrd,
in the
of
da's and
we
and
are
not
1940,
loss
unified
boat
same
merely
hours
Windsor
of
generation
that
alone
During
passed
has
I
I
convinced that the time has
wrote
to
this
take
fresh
a
look
at
a
matter
which, though seldom dis—
cussed, has been in the thoughts
of the leaders
than
more
a
of both nations for
century—the amalga¬
mation of Canada
States
into
the
and the United
world's
most
ho-
mogenious, balanced, powerful,
and enlightened nation.
That Canadian sentiment
seems
to favor
growing intimacy short.of
union is shown by such expressions
as
the
September, 1958,
monthly letter of the Royal Bank
of Canada in which this significant statement was made: "Canada
and
the
United
completed
more
friendship
with
States,
than
a
having
century of
.
and
increasing
closer
r.QiUr
cally
together
'nnr!
and
,
growing
respect
cooperation,
today,
sniritnallv
spiritually,
Can
a
-
Prime
Minister
Winston Churchill offered France
union with Britain.
But France
not
already overwhelmed. Let
offer too little,
or
be too late
0f
18th-century proposal
marriage not only still stands,
is renewed with redoubled
earnestness and affection,
Catholics
th
h
h
iParnf^
+n
those who have Jearned to
.
of
Canada
United
-
States
with
Even
our
pooled strengths, comprising 13%
of the world's
population,
area
and 7%
in-
in
the
a
Canada is feeling and enjoying her
independence. Like a confident
youth who, for the first time, has
left the parental roof, our neigh-
with
Canada
that,
if
there
threat at all, the juncture
still be sound, doubly ad-
no
vantageous, and inevitable.
bor is
Natural National Affinity
Geographically
and
have been
we
anthroposociety
one
many centuries.
Reading between the lines of history, the two
basic causes for a parting of the
in 1775
(j)
New
Church
of
the
had
side.
her
and
course
the
marriage
The
prospect
as
pilot, flew
from
the North
Pole
a
Actually
the
and
many
rule,
few
are
a
will
and
Montreal,
who
back
A generation
—more
later, with the
are
economithan
man
anv
any
submarines
Nautilus
be
-can
expected
to
resist
would
showed
war
that
beneath
could
By
Montreal,
you
will recall, to
are
far
the
greatest
deterrents
the intangibles: Canada's traContinued
con-
on
page
offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.
any
of these securities.
1,000,000 Shares
;
„
■ ■■
■■
-
■
■
'■
,
\
■
V
/
'
Soup Company
coop-
Capital Stock
($1.80 Par Value)
Skate
be
fought
the
polar icecap. In the
of Comdr. William R. An¬
words
derson, USN, skipper of the Nau¬
tilus, "Man's last unknown sea,
Price $50 per
share
the ice-mantled Arctic
Ocean, has
yielded to the Atomic Age. Across
the top of the
world, blazed by
thousands of instrument
readings,
lies
maritime
a
morrow;—
highway
of
Copies of the Prospectus may be obtained from any oj the several underwriters,
including the undersigned, only inStates in which such underwriters are qualified to
act as dealers in securities and in which the Prospectus may legally be distributed.
to-
strategic, commercially
promising, and, I am convinced,
safe." Still more recently, Canada
announced
the
her $2 billion
abandonment
program
of
for build-
CF-103 Arrow jet interceptors
» a™r
missile
Bomarc.
Anyone who
knows that if
world
war
Kuhn, Loeb & Co.
we
the
have
Blyth & Co., Inc.
Drexel & Co.
Eastman Dillon, Union Securities & Co.
papers
another
it is most likely to be
between the U.S.S.R.
U.S.A., with Russia as the
gressor
The First Boston Corporation
0n U' S' guided
reads
and
ag-.
Glore, Forgan & Co.
,.
Goldman, Sachs & Co.
v
,
■
i
,
.
.
Harriman Ripley & Co.
Kidder, Peabody & Co.
Incorporated
|
Lazard Frfcres & Co.-
Lehman Brothers
.
.
Stone & Webster Securities Corporation
the
Chief Obstacles Psychological
not
valiantly.
so
in
and
spe-
from
proposal at every step.
February 17,1960
eration of Canada, and in our mutual defense, we built the DEW
be
the
self.interest than from conviction
Benjamin Franklin had gone to
Spitsbergen,
and
a
confined
small minority of
interests
ciaj
benefits
fairly distributed;
objections
chieliy to
New Issue
tri-
of
show of too much zeal from ei¬
ther direction.
city of Quebec, after they
taken
have fought
an
not
from
a
favorable
as
under ^British
as
Press
thought that the
get
about
Cana-
happy union could be harmed by
language and the Catholic
would
take
try. to
in
England;
If Quebec had
border
"positive
concerned with devel-
either
intolerance
(2) Fear of racial and religous
persecution in Quebec.
French
more
nature
were:
puritanical
the
and
oping and trying her own strength
than in submerging her individuality. Neither have we any serious
complaint against our own status
Quo. Except for defense security,
it would probably be best to let
for
ways
of
ours.
Fokker
rec-
ion
were
would
The
Not
the
dianism," every day, fundamental
forces are drawing the two societies closer and closer together,
This advertisement is neither
or
be
can
until
little hazard as the most hopeful
Pollyanna could wish, there are so
many other sound reasons for un-
of its
numerically
are
matter of time
a
been north
nationalism
combined population erals Montgomery and Arnold out
those of Russia-Siberia.
observance of
our
The merging of the two nations
across the polar regions, it is sig- the three battalions of French minificant to compare the combined litia which successfully kept genarea and
v..
very real danger of invasion from
the north.
But if there were as
Government
routes
in
Canadian
reassure
to
as
Nova
Without ^hing to cry havoc, I ognize this and vote accordingly,
have PurP°sely emphasized the In spitei of all the talk there has
trace
Circles
to
from
Brunswick,
tluZVZ
treatment under the United States
Great
New
citizens of both countries will
vlew the Slobe frora the top and
the
absorbed
we
and logical that I believe it
f.eahze h°w hjtle Q"*ck and effec- but
tive aid Canada could expect.
but
T
re-
de-
our
freedom of worship.
cai positions ana recent history, to
us
in making clear to our good
neighbor that our
that
banished
and
manner
thfe
name
some
after
the
it
since Canada lies directf
other'two important nations.-- "between us, it is the only area in
True! But are we close enough which it is practicable for the
con-
nations.
lone
Quebec
been
Scotia
great
depend upon them for
massive assistance in the event of
logically
the
dedication, the jLine across northern Canada to
conviction has
deepened within intercept air attack.
More
reme that I should speak out.
Now cently, the
voyages of the atomic
come
of
wasn't
population of Louisi¬
ana, including the Acadians who
.
a
out-
the French
not
15V2
hours, first demonstrating
become' that war in the skies could be congateway. The ducted across the
top of the world,
since
am
she
co-
of
it
continent—Cana¬
our
Floyd Bennett
over
And
had
Commonwealth
de-
integrated?
desperate
of
af-
us
the
on
1926, Lt. Comdr. Richard E.
acting as navigator, with
motor
sur-
pooled-our, strengths?
member of
our
But
too
Catholics has become in
feat at
a
that
one.
spects the greatest Catholic nation,
prise attack, the slightest confusion, delay, or disagreement could
prove fatal. Isn't it about time we
Canada is
leaders
friendly
who slammed the
gates of Quebec
in our faces guessed
wrong
The
United States with its 35 million
defend,
not as two nations depending on
a coordinating committee, but as
a
a
spoken in venting their anger at
Britain's liberality towards Quebee's language, laws and
religion,
implicit in the Quebec Act Those
and
nation! In the event of
was
forefathers had been
our
knows it.
She is sure
utmost effort to defend her.
But how much more secure will
each of us be when we can
one
Canadian
her
her
like
we
either of
chance
a
not, the United States and Canada
defense
vince
invasion
our
de¬
geographical position,
the
impregnable,
are
round
the bor-
cross
have reached nine figures.
the
1958
do
most likely battleground of World
War
south
of
this bridge has
and
the
more than
111 million
multiplied
excess
and
States
28
Communists have "aggressive dispositions" in the Arctic. And he
stressed the need for our northern
which
Here, at a strategic point on
the longest undefended
national
boundary, is a monument to Ca¬
nadian
United States" solidarity.
When this bridge was completed
it
Oct
on
Canada's
Ideas and Ideals
1929,
any-
to
suffice.
not
was
to
look at the globe
a
fended by closely
forts."
Expression of
Friendship in the Hearts
of Two Peoples With Like
in
now:
obvious
Dulles pointed out in his talk betoe the
frontier
The Visible
the subject
is
for
reason
planes, missiles, and submarines,
carrying H-bombs have changed
the strategy of modern warfare
and placed Canada in the direct
path of an attack on our continent
from the north.
As Secretary
con¬
necting the Canadian port of
Windsor with the United States
port of Detroit, is
up
reason
who takes
one
urgent
more
from the north and considers how
Joseph A. Bower
en¬
advantages of this union."
Up to
r
That
admitted
titled
much
a
bringing
United
States, shall
the
no
time to work out cooperative
procedures. We already have a com-
loosened her ties with the Mother
and
•
split-second war,, there will be
cant words:
into,
l
n+
Sr6at war, which in its initial
sta&es ls almost certain to be a
Only Canada s loyalty to the past has prevented her
from recognizing that, as history
be
±
After the shooting starts, in the
string was left
hanging out in
these signifi¬
the
nubpub
you
tion, the latch-
measures
recentlv
recently
nut
vital strategy.
on
•
•
AT
Articles
even
or
hrnnSht
as
eaTy6 U°SsSfor filtetorSffer
how
security,
Fnrnnp
MontgomerVs
Montgomery s
in
survival?
mir
in
Na7is
;
mutual
our
Field
U.S.S.R.'s—in
and our 6M> million square miles
against her 8V2 million.. Canada is
in no danger of attack from the
But
alliances.
Pve,r
,
the
mlnfwith Gegn°CTliyEisenhower attfck? 0ne h?s b"'to
the best weay toPlight The
SoTand
enu¬
assever¬
„
our
?r
will vote for union.
Re-unite?
to
us
utmost
history of defense coalitions
sharply points up the superiority
matter of time when the citizens of both countries
,
require
our
it
Our
one.
to
numbers, our 190 million inhabitants against Russia's 200
pillion,
over
to prepare the way for such
a
will
do
can
or
the
for
reasons
we
two nations
survival
and in Ko-
wars
defend Canada to
step would be both mutually advantageous, logical
a
as
own
the consummation of his
see
this conti-
on
that
know
we
again
an
Bower does not expect to
seas,
starting with Canada!
der in two world
Bridge connecting Detroit with
Canadian-American amalgamation. Now 79, though in excellent health,
Mr.
seven
of
already have
closely interlocking defenses; and
having fought shoulder-to-shoul-
conceived,
authority on international banking
affairs, and is well qualified to enunciate his views on
world
share
probable beginning will
Russian attack
a
(and Rus-
her
prowl the
may
most
than
As separate nations, Canada and
the United States
the largest suspension bridge. Since
was
become
banking,
these)
nent
and educated in the border city of Detroit
up
more
has
be
of Chemical Bank & Trust Co., New York City
brought
of both nations
sia
the
By Joseph A. Bower, Member of the Advisory Committee
Board of Chemical Bank New York Trust Co. and Former Execu¬
tive Vice-President
mannes
ferior
9
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Smith, Barney & Co.
•
White, Weld & Co.
Dean Witter & Co.
22
10
trols
The Economic Situation
,
in
are
cooling
words
And the Stock Market
checking
It
that
the
been
what
JJphdm & Co., Netv York City
Harris,
s
-
Street
uncertainties infiltrating the
analyst describes various
suggests factors to consider in shifting from
economy;
bonds in the event of a one-third or two-thirds stock
offers
and
the top
r
stocks to
describe
is to say
I believe the best way to
the state of
our
economy
that
of great uncertainty.
one
vig¬
We have been through a very
boom
orous
which
had
as
its foundation
period
a
of
heavy ex¬
penditures by
is
ucts,
and
below
coun¬
try-wide
housing
vast
eral' credit.
ket
Furthermore,
the
public, en
their
and
needs
This
has
their
of
credit.
on
almost
made
been
filling
in
most
largely
also
wants,
This
area.
irre-
the
rate
withdrawn
the
from
indicated
exists
It
buy
a
and
now
pay
surprising
not
that there
differences of opinion on the
ace
outlook.
boom
tion at
a
There
rea¬
was
steel
that
the
of
momentum
great.
believe
to
son
The
was
produc¬
capacity rate would
near
to meet current
necessary
quirements
tories.
It
reports
have
cerns
replenish
and
may
that
turn
so
already
but
some
their
met
re¬
inven¬
out,
needs
and
building inventories, is not
assuring.
*
be
re¬
our
obliged
increase
to
The
the
thought
same
among
answer
should develop.
drain
on
of
to
payments
in
our
adverse
an
caused
exports, and
by
par¬
balance
a
decline
increase in
an
imports, with foreign govern¬
ments
privileged
to
withdraw
The
ficient
industry,
so
finding demand in suf¬
to '
volume
manufacturers
a
early
million
seven
cluding imports.
There
are
>
the
support
predictions
car
year,
in¬
•
indications
that
cap¬
ital, expenditures by industry will
be
for
more'
modernization
vices
The
than
both
plant
balances
count
is
been
the
for
Still
it
it
low.
When
is
increase
foreign
in
ac¬
expenditures
of our
This situation has
partially
expedient to maintain bal¬
more
ances
here.
A
rates, which
would
decline in
appears
in
interest
prospect,
increase the problem.
abundant
is
it
available,
it
rental—in
other
est
demand.
that.
The
"Easy
come,
a
stantial
inter--
de-
from
cline
consequently :in
is as simple as
adage
applies:—
-
expansion.
«
in
the
cities
of 685
to
5,
uary
policy
on
Securities
Bond
vs.
partially
about
is not
has
been
so
goods
heavy
has
the
of
high
been
a
a
lot
political
interest
of
talk,
nature,
rates.What
sufficiently realized, is that
record
shows
monetary
to make
approximate
partial switch from low
yielding stocks to 5% bonds, with
levels prevail¬
large liquid foreign balances now
held in this country (with its ef¬
fect on our gold reserves).
ing last ' Sep¬
tember, June,
and April.
influenced
>
ously
common
was
least
at
sense
a
high proportion of short term is¬
a
At
sues.
the
be done
moment
that
cannot
advantageously, as the
was
too
generally
recognized. However, it would be
so
ation
normal
for
to ^observe
us
"over-valuation"
re¬
a
August Huber
apparent
which had
prevailing in the market generally
I have been advocating a cautious
From
market
stock
that
point further
transfer
might be practicable ex¬
cept in accounts where the book¬
in
painful, and provided the investor
prefer
to
follow
the
ing
anxiety entailed in rid¬
a
possible business
On
next
the
look I
been
the
it
said
golden
and
'60s.
dent
written
may,
peoplef coming to maturity
period with greater
needs to be filled, with new fam¬
ily formations in due course, and
It
is
from
them.
the
we
able
months
available
levels.
waiting
at
left
obtain
substantial
over
rather than
many
the
I
better
a
advance
earnings ratios)
-
basic
increases
objective
to
one
15,
•;
•«.
Stick
it.
to
investigation, and adhere
inviolable rule.
Use
com¬
sense.
by Mr. Weeks
Rotary
before
Range
1960.
sell
To be NYSE Firm
ANGELES, Calif. — Wagen¬
seller &
Durst, Inc., 626 South
Spring Street, members of the
large
Pacific Coast Stock Exchange, on
Feb. 25 will become members of
the
New
York
Stock
with the acquisition of
dent.
*
Exchange,
a
member¬
Other
Earl
F.
Murphy,
Marketing Department
Merrill Lynch, Pierce, Fenner
&
Smith
INCORPORATED
70 PINE STREET
officers
of
the
■
are
Offices in 112 Cities
Kitchel,
Alson
E.
firm
Ralph
E.
Abernethy,
Paul M. Waggenseller, Donald E.
Summerell, Rowe Sanderson, Jr.,
Pierce H. Wisdom,.. Frank Dyer,
Jr.y Sharon C. Moody, Wallace B.
Alexander,
^Hays
Walter S. Weeks,
William
NEW YORK 5, N. Y.
F.
Matson,
and
Vice-Presidents;
Phillips,
Vice-Presi¬
dent and Assistant
A.
ity
-
388
profit
margins;
(c) The economy is still cyclical
—growth doesn't proceed along a
straight upward line.
Economic
maladjustments require periods of
correction.
Thus,
forces
462
a
which
Secretary: Paul
Secretary-Treas¬
Robert
Nielsen, As¬
Covington,'
urer; *
sistant
and
Secretary.
•
,
can .be
mitigate at
"inflation"
the
Now,
increase
in
last
net
Dow-Jones
In
Industrials
share.
per
in
1958
factor.
investment
This
was
still
but
the Dow-
on
totaled
$20.74
from $20
up
below
the
$23
the peak price
of 685 regis¬
tered by the "averages" last month
the yield was 3.0%.
In the 640
about 5%.
price
area the yield is 3.2%.
Meanwhile, high - grade bonds
been
providing a yield of
prices
selling at 19
for
profits
17%
for
1960
earnings
on
would
the
be
(1) As
dividends
dustrials
we
"averages,"- the
market would be
evaluating esti¬
mated 1960 earnings
(allowing for
a 17%
increase) at 16 times.
The question
may be asked—
why have stock prices been capi¬
talizing earnings at higher rates
marketwise? Two fundamental in¬
fluences have been at work:
psychology,
prompting greater interest in equi¬
ties;
(2) The conception that earnings
continually advance so
will almost
that despite a stock
being over¬
valued when purchased the
growth
of earnings should
eventually
bring the market price to still
stated
previously,
1959
an
the
Dow-Jones
the
on
in
allow for
laVo
In¬
$20.74.
were
If
increase of about
1959, dividends
(a new all-time
cms year over
would
pGcik)
total
$24
*
(2)
On
the
to
basis
of
15%
a
in¬
at 630
would be 3.8% and in the 640-685
crease
sent
a
$24,,
the, yield
range—which could repre¬
cyclical top—the yield 3.7%
to
3.5%;
(3) Putting it another way, with
$24 dividends the "averages" in
to
decline
the
..
stocks:
common
price
a
'
Regarding the present yield on
order
higher levels.
yield
basic
1959, dividends
Jones
nar¬
16 times.
Inflation
the
a
consideration.
574
a
opinion that
Industrials
for
also
still
-
about $40.
640
moti¬
have
stock
allow
year,
is
Income is
680
was
was
largely
Dividends and Yields
There
420
earnings; 1936-37 it
times; in both 1946 and
we
have
tendency
for many
stocks
to
capitalize earnings at
abnormally high rates marketwise.
437
probable 1959 earnings;
if
considera¬
the
-
times
17-18
(1)
which
time,
a
there
see
can
work
583
price range could rep¬
cyclical peak.
In that
1956 the rate
At
we
at
for
-
heights.
the market
over
and
-
At bull-market peaks in the
past
we find that in 1929 the
top
was
prices
can
be in¬
productive capac¬
competitive factors play
521
while
—
new
,
been
Excess
521
the 640-680
19
has
fast—or faster—
as
selling
At
488
have been of the
resent
.
experience
their part in exerting pressure on
price
ship by William S. Hughes, Presi¬
.
I
to 20 times
Wagenseller, Durst
block?
Call,
range
soared to
the
Club, Ashland, Ky., Feb.
LOS
a
row
area
address
than
over
paid back in 1956.
Profits have been held in
I was
'
to
definite.
a
program
meeting
those objectives. Don't act on tips
^An
■
investment
an
in the
D-J Industrials
Formulate
Ashland
)
Make
add:
The
creased.
Price
nor
me
(b)
per¬
stock
recent years has been
the last to
1955__
$35.78
the. last to buy, but be¬
1956_
33.34
cause I have the responsibility of
1957
36.08
guiding others, it sometimes seems
,27.94
beyond human capacity to pick "1958
; 1959 (Est.)
34.00
precisely the best moment. Just
let
of
Earnings Per Share
don't like to be among
sell,
and
profits themselves:
faint
behind,
to
(higher price
reason¬
been
vated
Earnings
largely due to investors
being
willing to pay more for earnings
more,
so
event,
be
may
are
effort
prices
growth
more
There
for that
hearted
or
dynamic
see
may
stocks
12
Corporate
and
has
that costs rise
spective. To begin with, the long
my
next
thing
be
virtually every¬
inflated except
corporate profits;
tions
Stock Prices
an
°
*
could
and "earnings growth"
It may be well at this point to
again look at the fundamentals in
hope, that through
readjustments as are ahead
such
in
results
pru¬
the past five years
least
/
in the 1962-65
that
a
and conservative investment
Y
young
all
underlying eco¬
factors, how¬
policy.
that
Be
the 640-650 range
The
market
and
prompt adherence to
ever,
the fact remains that
there will bq a large number of
as
possible.
nomic
long term out¬
optimistic.; Perhaps too
has
about
is
year.
really
am
much
The severity of the recent slump
stock prices—about 9% within
trial Averages to
through
recession
bonds for
on
one
month—suggests interim ral¬
lying periods may be expected. A
recovery of the Dow-Jones Indus¬
market
and economic fluctuations than to
take
emphasis
investment funds.
ing of capital gains would be too
would
policy for somes time with
increased
of funds
mon
Like
been
prices re-tracing
between % and % of the decline.
in
covery
growth,"
psychology
by:
(a) The record shows that
the
Of
"earnings
Regarding
investment
consider¬
In
opportunity
without
con-
now also take into
the fact that lower¬
must
our interest rates could bring
about substantial withdrawals of
the
to
back
Fed¬
ing
the :market
of the year it obvi¬
turn
balanced
or
consideration
This
8.
Feb.
budget,
'
,
of
surplus; V ■
v;
(c) Theory that Federal Reserve
a
of 619
low
go" relates to
than to anything else.
easy
policy;
(b) "Prospect
eral
Jan¬
on
could be: 1 ;;.iri;
-money
slump brought
Equity
At the
Regarding "inflation" the influ¬
ences
1
; (a) Credit restrictions and tight
'
an
.
There
for
non-durable
Money Rates
V
"
r
Now, what are the forces which
change this line of reasoning?
can
all-time > peak
It
old
,
Flying in the face of glowing pre¬
dictions for 1960, stock prices, as
measured by the Dow Jones In¬
dustrial Averages, suffered a sub¬
is
cost
f
,
readily
higher
the
words
is
rate—and
money more
the
less
commands
lesser
an¬
relieved by some
gain in exports, and the fact that
our high interest rates have made
have reached its peak.
consumers
the
tourists abroad.
projection
housing
and
multiple
Demand
dollar
of
and
purposes
rehabilitation.
cause
and
structures
appears to
preparedness
economic
clearer.
high rates marketwise—to the disregard of income as a basic investperiods with a cyclical
D-J Industrial Average peak of 640-680.
ment determinant. He foresees interim rallying
t-
,my
Money
—
for
construction
business
through
economy
in labor saving de¬
An¬
contributing factor has been
advances to foreign countries
other
automobile
far is not
their dollar balances in gold.
other
our
When
It is true that the
supply has been
our
tially due
for
ret
.
by
to
some people here.
is, that is most un¬
likely .unless a dire emergency
con¬
are
of
gold has been
supply, and
our
our
be
of
will
My
basis.
is
likely to
Apparently there is some
expectation
in Europe
that we
checks, iall
■
estab¬
serves.
easy
on
is
threat
price of gold.
later
Some
are
trend
which
at
through liberal in¬
stallment terms, charge accounts,
credit
cards,
and
finally bank
slstably
be¬
may
degree.
manufacturers
our
There has been much talk about
:
themselves
indulged
losing
are
continue.
P. S. Weeks
have
masse,
far
lishing facilities abroad, in order
to compete in the common mar¬
lib¬
most
on
U. S.
scale, and
we
painful
a
prod¬
abroad
wages
markets to what
come
a
other
and production being
ours,
export
of
on
with
but
of
true
stream-lined,
con¬
struction
is
little
J"
:
]
perhaps :maKe
a
earnings growth considerations
largely responsible for stocks capitalizing earnings at abnormally
inflation and
mitigate the
apt to
commodity exchangeable for
goods and services. It is for hire.
slowing down in the near
appears almost inevitable.
At
this
point mention should
be made of foreign competition.
It is disturbing; If productive ca¬
pacity in Britain, Western Europe,
and Japan was greater, it would
be serious.
The tonnage of steel
products imported last year was
only a fraction of domestic sales.
same
'
.
ticks off the forces at work
of the market's over-valuation, Mr. Huber
-
a
a
expansion,
a
should
comments
future
The
industry for
I
■
trend.
policy which h^ definitively outlines. Still suspicious
ket investment
of this year, there
slowing
down Tn
activity, money should
the
Trash & Co., ISeiv York City
lightan commitments and to pursue a conservative, cautious mar¬
to
term
fluctua¬
expected^ but if in
to be
economic
'
that it is
short
on
Outlook
partner advises taking advantage cf a market recoyrry
Wall Street
obligations,
are
follow
growth stocks to become available at more reasonable levels.
;
return
Thursday, Febiuary 18, 1960
By August Ruber, Partner, Spencer
*
latter part
should
be
a
price recovery;
in interest rates has been seen, and he hopes that the market
,!\\t
hay
r.k.e^
mm-y'is
now
indicated by the some¬
as
the
■
readjustments in the next 12 months or more will permit dynamic
Right
Treasury
optimistic long-term outlook. Mr. Weeks opines that
an
mi
inctred
top in
lower
tions
an
.
.
The Present Market
other
aeionafy
personal opinion
my
seen.
easier,
By Percy S. Weeks,* Manager, Investment Advisory Department
is
.
in
time effective
due
a speeding spree—m
trend.
Wall
Chronicle
The Cornmercial and Financial
(762)
yield 5%
would have to
to
480;
(4) A yield of 4^2% would be
provided (with $24 dividends) at
a market
price level of 530;
(5) lit should be pointed out,
that in every one of the 20 years
from 1939
through 1958, the Dow-
Jones Industrial Averages at some
point in each year declined to a
price which yielded at least 4J/2%•
(20-year average at the
each year was 5.9%.)
I
have
discussed
the
low for
various
possibilities which exist in today's
market in regard to earnings and
dividend prospects relative to pre¬
vailing stock prices. While, what
may eventuate can be far different
from what should develop—it is
clear, nevertheless, that
a
market
Volume
191
Number
•••
5926
.
.
The Commercial and Financial Chronicle
.
•
,
(763)
11
policy should continue
to keep the
fundamentals of "value" firmly in
mind.
;
;
••
•
Nearer Term
'.
■
1
•
tion that stock
prices have already
will
the
be
divergent forces affecting
during the next few
C
'
market
'■
-
consultant
of securities and
(1) .Business activity generally
promises to be at a high level as
steel inventories are
replenished
and autos are produced above de¬
unravels
V
prevent
V
liquidation
deterioration
business
:
analyzes what prompts
the
a
!.'• ?;
economy
after the abnormal first 6
.
and
the
debt is already at1
movements to
high level relative to income;
the economy
; (4) Private capital1 spending for
plant and equipment should in¬ as a'. whole.
crease
to around; $37
billion, but First, it is im¬
this would still be under the boom
portant to rec-
I.
number
be negotiated
during
ognize
when
of
'
to
'
Market Policy
'
-
Considering all the factors which
bear
the
on
for stock
conjunction, with the
prices; ''in
precipitous
nessed,
I
further
'
prospects
decline
can
already
visualize that
recovery
retracement
of
may
about
wit¬
some
A
ensue.
of
50%
the
January slump would bring the
''averages" in the 640-650 price
area.: '
'
' •
•
;/
.
i
I would look upon such a recov¬
ery move should it develop as an
opportunity, for those who had not
already done so, to lighten com¬
mitments.
•'
It is my
has
opinion that the market
been
in
basic
a
downward
-
phase since last summer. The un¬
derlying
economic
and ' market
forces suggest that further down¬
ward
the
corrections
general
required
are
structure
of
in
stock
prices.
From
I
investment standpoint,
an
would
continue
cautious
and
would
conservative
a
market
policy
and
say:
we
•
(a)
Maintain
buying reserve;
a
off
.
(c) Concentrate
stocks
common
those selected
on
offering
compara¬
tive value on the basis of earnings,
yield and prospects.
i
minor
a
(a)
economic
tivity '
ac¬
rele¬
(3)
Alan
respect¬
periphery
&
Bond
Club
of
bv
by
are
.
Philadel¬
officers
annual
elected
at
meeting and election
the
were:
Edward B. Stokes of Elkins, Mor¬
ris, Stokes & Co., Vice-President;
John
Richter
B.
Sherrerd,
Ripley
[ The
the
E.
Williams
S.
ander
and
■
&
Alex¬
Harriman
of
Co., Inc., Treasurer.
&
following
Board
of
W.
elected
were
Governors:
Hoerger for
and
Butcher
of
Secretary
a
one-year
Marshall
.
to
Charles
term,
Schmidt
of
Hornblower & Weeks and William
F. Mills
of The
Philadelphia Na¬
tional Bank for two-year terms.
New
York
American
admitted
Bernard
W.
O'Brien
partnership.
come-producing
assets
—
whether; duction
and
interest
and
rates
hence further advances in the
general price level would require
ject to the same broad influences, very
large
increments
to
the
as stock exchange values and thus
money supply to be sustained.
are
constantly adjusting toward
;• (5) The forces underlying
these values. If the prices of equi¬
changes in stock prices are the
ties on the exchange rise sharply- same as those which
determine
and their yields fall, for example,
the
profitability of new capital
securities,
real
income
small
busi-
etc.—are
estate,
sub-
requirements
will
force
with
expenditures
those
the
on
stock
than
do
sales
and
and
hence
estimated
was
$1.7
of
the
United
of
the
end
as
trillion,, of
and
of
common
worths
net
individuals'
which
sumption
$465 billion represented claims in
the form of
0ut
h
fssue selling
However,
1920's
rough
-indicate
a
from
ultimate
more
ations
—
evaluation
tio„°ther, costs net out
*
i
in
in
of
ultimately
to
stems
;u
.
are
funda-".
crucially distort values for
a
short period.
follows a technical discussion of the factors determining
.
,
,
es¬
its root,
businessmen
ra¬
When
at
the
"rules
means,
can
of
can
the.
reason¬
anticipate the consequences
actions, they tend to make
commitments.
When the business environment
costs
in
which
act
men
becomes
con¬
fused and the "rules of the game"
no
will
longer
tend
to
clear,
situation
is
is
which
they
prehend.
the
•
their
subject
no
lest
committed
where
existence
individuals
withdraw
find 'themselves
t ,ey
to
a
business
forces
to
longer
can
com¬
During the mid-1920's the rules
the consohda-
n
Continued,
on page
24
respective States.
New Issue
February 16, I960
1,600,000 Shares
Tennessee Gas Transmission
(Par Value $5 Per Share)
Price
are
f^y are doubtl^s^highly
Stone & Webster Securities
+ln hand Wlth declining
urns
to
fall
ian
assets
would
increase
as
outlook
increased
the
certainly
confidence
and
in
nence
some
fall
in
White, Weld & Co.
Incorporated
Eastman Dillon, Union Securities & Co.
Harriman Ripley & Co.
Glore, Forgan & Co.
Kidder, Peabody & Co.
Incorporated
Lehman Brothers
•
Corporation
Goldman, Sachs & Co,
Lazard Freres & Co.
Merrill Lynch, Pierce, Fenner & Smith
.
Incorporated
-
Paine, Webber, Jackson & Curtis
Smith, Barney & Co.
Dean Witter & Co.
Incorporated
Clark, Dodge & Co.
Drexel&Co.
Hemphill, Noyes & Co.
..
F. S. Moseley & Co.
Hornblower & Weeks
A. C. Allyn and
Company
incorporated
Bear> Stearns & Co.
A. G. Becker & Co.
incorporated
W. E. Hutton & Co.
Bosworth, Sullivan & Company, Inc.
F
Hallgarten & Co.
Ladenburg, Thalmann & Co.
Jf
Hayden, Stone & Co.
Mitchum, Jones & Templeton
the
li-
R. W.
C
l
Pressprich & Co.
L
p„
Salomon Bros. & Hutzler
4
Reynolds & Co., Inc.
L. F. Rothschild & Co.
.
->
time
preference maturity schedules.
Corporation
The First Boston
in^risk' premil E(*uitab,e Securities Corporation
in risK premi
Willingness to be committed
direct
Share
BIyth & Co., Inc.
corre- Lee Higgmson Corporation
i^n^Fn hand^
^and
^nfidence"' a
L
per
Copies oj the Prospectus are obtainable from only such
of the undersigned
are
qualified to act as dealers in securities in the
respective States.
presum-
independent variables^ and
relatively staWe In the short-run
g0
$34.50
as
in
clear
of stocks, quidity
preference
would
fall.
capital assets and. Moreover, the
willingness to make
mechanisms by which these de- future
commitments, as business
termine
market
prices.
In the confidence
is
rising, could
be
analysis it is concluded that:
reflected
in
specific
Company
Common Stock
re-
bonds and other
of
is
of their
dealers in securities in the
.
are
individual. evaluations
evaluation
lose,
or
withdraw,
least
which
act,
a very
estimates
worths
a
than
The
tional.
very
businessmen
and
and
comprehend
liquidity
!aiea- A rise in expected earnings,
mental evaluative mechanism and:
(1)
conviction
fact, the
which
conviction
result
optimism
an
offer to sell nor a solicitation of an offer to
buy any of these
offering is made only by the Prospectus. This is published on
behalf of only such of the undersigned as are
qualijied to act as
of
a^ly
speculative moveanticipation of,
more,
„
Present
in
the surface of the
In
rises
causes
enough, the causes are not. In the
long-run the variables determin-
changes in real values. These speculative movements, however, ride
on
by
process
the
not
are
irrational
securities. The
thrown
be
While the effects of changes
present worth
values
preference.
Superimupon
these fundamental
made
of
This advertisement is neither
the abov« that
tons to capital play
liquidity
ments
will
cause
fluctuations-in the estimates
the Present worth of f^Ure
generally: time preference, income
expectations, risk premium, and
posed
evaluation
convic-
==
asset-income-con-
patterns
" is clear
f
differ-
capital
cases,
pessimism.
gain
mar-
for
their
.
by
increased
capital
expenditures and consumer expenditures puts pressure on the
fundamental consider-1
those
waves
and
are
calculations
decline
of
expectations
generated
S
negligible
at
rare
vre*e*V*ce through the decade,
stock
crucial
ences
from
t h e last 100-share -Perhaps
the crucial -role in a
trade
The reason for this is
of market economy. A rise in present
course
that the market price of worth estimates induces a rise in
any
particular stock is not ulti- the marfilna' efficiency of capital
mately determined by the bid and '
equity values — and through
offers for that particular stock in'
,.<?pmer' a,r.1Je in ,caP a ,fXr'
the quantities which one usuallyj peHdRures, and through the latter,
sees
on
the organized exchanges.
a ,rise *in consumption expendiThe
in
sentially, at
appro*imatfon
imbalances induces increased constock. Although it might be argued ;
sumption expenditures.
that these stock values are ficti(7) Finally, the increase in debt
.■
their
of line. The redressing of these
and preferred
,
extent
of
dependently of earnings expecta-
i
the
that
basis
depands
Changes in uncertainty, except
is very difficult to view
of risk premiums in-
ti
very
the
on
expectations,
upon
„
effects
a
materialize.
consumption per unit of
While it
the
plays
themselves
these
fundamental forces underly- game,"
the changes in capital effi¬
the rhanees in ranit.nl effi- ably
^Uafauhn^t'capitel
thus
tions
1937.
An increase in profit
future
commit
ma>ior Pea^s
1929
certainty with
participants in a market
hold their expectations
the
of
this
on
.
of
spect to average returns to capital
future, the extent to which
individuals are willing to act and
expectations.
Rising stock prices by generating increased capital values
The' total wealth
1959
clear
■
A
degree
in the
to
While the evi-
too
es-
ex-
change.
,
of
In fact» Profit margins clearly led
capital funds into real estate, etc., prices and capital expenditures
bringing the latters' yields into; tend to fluctuate together.
There
to
not
worth
crucial role in the cyclical process,
Given their expectations with re-
those of sales. Hence, they presumably have a greater influence
on changes in present worth esti¬
ciency.
essentially
are
.
•
Co., 61 Broadway,
City, members of the
Stock • Exchange,
has
is
important to
as
present
earnings expectations,
as
,
in
economy
(b) exmargin
expectations fail
■
more
Charles King &
dence
stoCL.„ and honds
unlisted
and
.
The
which
at-
subject, it appears that expectations of margins are revised more
often and to a greater extent than
ing
relatively few transactions on.»
\
organized
exchange, of the
J4) Price inflation (of goods
world, this is the process by which and services) during the postwar
all
income-producing assets, are period has resulted from a recontinuously, evaluated. Through establishment of historic relationthe competitive mechanism all inships between money supply, pro-
do not
Charles King Co.
Admits O'Brien
sales
of
recent experience.
&*« Tthl spreads
lower
a
Co., has
phia. Mr. Poole succeeds Charles
E.
Hoerger
of
Merrill
Lynch,
Pierce,
Fenner
&
Smith
Inc.
whose term expired.
Other
bonds
the
nesses,
premiums
neewtebdaema whole
gi?.s for 'h,e economy as s
transactions, the fact remains that
very large transactions oc-..
banking system and
cur, they are priced close to the
{n interest rates.
been elected President of the Mu¬
nicipal
and
corre-
Uncertainty and Risk Premiums
,
expectations, can
into (a) expecta-
down
future
that™Here ur.™S"naturu^uvver (capital
Jre°made
made
shares
of
risk
least
at
are
TT
equity
Margin changes, in fact, reflect
banks)
supply
liquidity
individuals: -
Yield.
iMdki
Greenspan
-
ket pi ices
to
urns
be
confirmed, they tend to be
changed to conform with the most
financial
,
quite
able
return
these
Should
mates
which
Since this series
fluctuations
"
foraewhaT'startling6 to^see ?arge
tr-f
Poole
to
of
ence.
(especially
\ requirements of
gated by some
t o
t h e
not
PHILADELPHIA, Pa.—Donald W.
Poole, head of the investment se¬
of
extent to
standi.ready
Elect Officers
firm
the
intermediaries
ernments.
profit
changes. Essentially both are projections of immediate past experi-
/
«
1
when
curities
•
■
the
to
pectations
(2) The average rate of capitalization of earnings for all assets
in: the economy is determined
by
are
tious, since prices are determined
by an incredibly small number of
Phila. Mun. Men
*
portfolio of assets.
segment \ o f
States
of principal; and
.
j
parceling
iine
.''■(b) Bonds are relatively attrac¬
tive for income and maintenance
tions
estimating
assets, (c) the. risk premiums they
attach to -these earnings expectations and finally■ (d) the relative
desire of individuals for diversification
and
in
their
liquidity
stock
not
i
*
dis-
we
cuss
1960.
'
,
expected
be broken
Hons of future earnings of
specific
-
,
,
that
prices
still
are
■'
corporate bonds and riskless gov-
timates
tached
stock
a
1957;."■■'
(5) A considerable
major labor contracts
;; .'
1945
fluctuation
schedule.!
moment
'
paper is to
assets
by
individuals
is
deterprinciples un- - mined by" (a) their rate of preferpricemovements: ence
for
current
income
over
implications of these future income, (b) their expecta-
months;? derlying
A (3) Consumer
•
:'v
liquiditysince
lates with stock prices better than
does profit margins, it is reasonable to assume that risk premi-
The
The. purpose • of this
define some of the
off
year of
in
ex-post
instruments, leaving aside for the,
:
crucial role in the business
cycle.
V: Gi'.w''
v
.
trail
may
changes
this
'
and
present worth of future returns to capital and, also, attributes to it
(2) The psychological influence
that
oacum
stabilizing techniques (to'
capital-values-readjustment) may prolong
and
economist
restricted
policy;
of speculation, Mr.
re-emergence
reopening of profitable opportunities. He
"managid currency" is an engine of cyclical instability. The
avers
,
hand, there will be:
of
a
and forestall
•
Continuation
Noting
historical
risk
This
be approximated by the yield
spread
between
medium
grade
from changes in earnings expectations and risk premiums.
,
the pricing
capital and, in turn, their effect
of
possible
by observing the
premiums between
bonds.
can
However, the
major changes in measured bond
yield-stock yield spreads suggest
the major short-term fluctuations
in present worth estimates derive
entering into
Greenspan points out the possibility of another financial
showrooms;
earnings during
this period should compare favor¬
ably with last year.
(1)
forces
to
imagine major
changes in time prefMoreover, a retracing of
preference schedules
implies little cyclical
in
is concerned that "New Era"
governmental
Corporate
credit
the
the evaluation
economic activity,
upon
mand to stock dealers
On the other
New York City
•
Economic
months:
(2)
Capital Evaluation
By Alan Greenspan,* President, Totvnsend-Greenspan & Co.
fairly large losses, there
hard
erence.
the
And
Looking at the nearer-term pic¬
ture, and taking into considera-7
is
short-term
Factors
•
suffered
It
Stock and Bond Prices
•.
,
==
Shields &
Company
Wertheim & Co.
William R. Staats & Co.
•r- •)
12
t
Financial Chronicle
The Commercial and
(764)
■>r:
Hi
jVYUH;
.
.
•
fused
to
cratic
CARLISLE BARGERON
BY
proposals.
four
...Ahead of the News
approve
bills
farm
price
support
1958
and
wheat
and
without
the
assistance
cruel
of
..
•
been making hay—and votes—out
price support approach sto
that crop, also cotton and rice.
On Aug. 22, 1958, Mr. Benson
said: "Efficient farmers have been
Now
the
Republicans
appear seriously
handicapped by cripdetermined
to
fight
back,
by pling
allotments
and
artificial
saddling the Democrats in Con- prices. Fortunately, Congress has
gress with the responsibility for
been progressively reducing this
the price support laws that are
handicap. Another major step in
in such low repute.
7
that direction was taken just this
With costs and surpluses mountweek by enactment of the new
ing while farm income declines, farm bill."
the Democrats are understandably
Mr. Paarlberg contended in his
reluctant to shoulder the blame.
-December speech that "most of
ible
is to blame
agriculture."
Their gains in farm belt elections
have been impressive.
"
Agriculture
for
the
The
Benson
in
"mess
cue
for the
campaign
was
December
in
Paarlberg,
a
who
now
new
given
Republican
late
last
speech
a
by
Don
former Benson aide
as
a
special
serves
-
the Administration's recommendations have been resisted by the
Congress, particularly those having
to do with price support
levels
and
production
control
policies."
assistant to the President.
"Almost
nobody
defends the
legislation on the books,"
Mr. Paarlberg told the American
Farm Economic Association. "The
farm
pertinent point is that this legis¬
lation was put there by the Con¬
If it is to be changed, it
must be changed by the Congress."
Pointing out
that
Democrats
have controlled Congress for the
last five years and for 22 of the
gress.
last 26 years, Mr. Paarlberg said:
"Present farm legislation does not
the
represent
policies
Administration.
.
of
On the
.
this
con¬
trary, it must represent the farm
policies of the majority
party
(the Democrats), since that party
put it on the books and left it
there despite having the power to
change it"
The
1954 law-passed by a Re-
publican
Congress — ended the
system of high, rigid
supports for corn, cotton,
wartime
price
wheat, rice and peanuts. The 1956
iaw
passed by a Democratic
Congress — started the soil bank
plan for retiring excess crop land
from production.
In
1956
campaign
the evidence
But
on
this
point
Senator
is subject to controversy.
Symington, a severe critic of Mr.
Benson, last year asked the Legis¬
lative
Reference
Service
of
the
Library of Congress to study the
fate
of
Administration
farm
rec¬
deserved
The report, much to the Demo¬
crats'
pleasure, said that of the
proposals made by Secretary
for
originating the soil bank idea and
identified
1956
as
•
"the
J.1.'
-
*
first
1
full
...
prices this year have begun to rise
farther
and
or
.
.
were
~
.
farmers themselves,
to
buy
any
Commissioner
Failure to cut taxes, Dr. Einzig believes,
equities which have already discounted
such a post-election step. The writer notes the unexpected drop in
our money ratesr the firmness of sterling* the preferable demand for
equities as against the moderate demand for higher yielding bonds,
and the optimistic business prospects.
,,
Tonerf'
steriing and the
outflow of
gold with growing concern, and
they expected the movement to
continue on an increasing scale if
money rates in New York should
James
continue
rise without
to
corre-
a
sponding trend in London. So they
C.
Kellogg, hroupht
ahrmt
a
sham
rise
in
has been elected Vice-Chairm0ney rates in London, on the
of The Port of New York assumption that New York money
Authority. The new Vice-Chair- rates would also move up. Much
man
man
succeeds
the late Hor¬
K.
in
Corbin,
who
the
to the
.
expert opinion in Britain, money
served
Port
thority
rates in
Au¬
as
12
and
at 3V2%
British
on
As far
tain
Feb¬
the
5.
Vice-Chair-
appointed
the
turn
rates
in
other fixed interest stock in Wall
Commissioner
by
Governor
.
He is a partner in
ncw»Faiuia m the brokerage
mc uiu&ciagc
analysis
of
the
1953-1958
period
Tn
In
Gersten, Frenkel
nnnnnorj
rfyiacc
blocked
key
parts
of the
Presi-
Abell
+V«o+
was
TJo+Vion
AVxoll
,
io
United
States
Rritain
nntxr
Pa.—Robinson
a
fin
tax
for income
the interest
as expense
purposes,
while
allowable.
Once
the
advan¬
tages of the new system come to
be realized, many people who have
utw
hithei to been deterred by the high
}[!?*? £ CL iJ c*lar&es are
bkely *0 embark on expenditure
?n■ cj).nsumer durable goods. The
in^ationary effect of such an in-
Tbo
nnf
p
Rank
.
0n
the
to_give
Stock
incided with
railroad
that
Opens
-
Own Investment Co.
GREAT
NECK, N. Y.
has
offices
formed
at
27
—
the
of
the
rneriy with
Jfcrrtj ©{jamas Sc (&a.t Jfttr.
County Road, Palm Beach, Fla.
-
TEmple 3-8407
Fvchanup
figures
an
strike
prices
to
new
firm,
Bruns,
for-
was
Nordeman
°
&
not
obligation
RENTAL SYSTEM, INC.
Offering Circular
on
I
for
thi
Now that
Now that the
a
number
ture.
In
fact
the
Government is
ma*«
is
of the industry
of
strike
The view is
now
raflroal
held that
when
th|
ri
decided upon.
business-from
are
H.
H.
a se-
offices
South Osceola Avenue.
Baskm, Jr.,
at
Offipresi-
1
dent; Chester B. McMullan,
see-
retary-treasurer; and T. R. Hudd,
irp„iri„nt
President..
a
many
« swu many Dusmessmen ana in-
V€:f1tors who h°Pe that Mr- Amory
il°l
??d,KhaUhe
fl the General Election last Au-
,subSa"be
in equities, the prices of
which have discounted some reduc-
7lucnnaveaiscoumeasome reauc~
tion in taxation. It seems probable
that tax cuts will be deferred for
a
future
occasion
economy
the
when
can
na-
better stand
for the infusion of additional purchasing
power.
pri.ce cuts als0
number
and
extent'
has^ot
yiyal of. inflation
vi.„
"^spuf^the'^inacing
tional
Enterprise Inc. is conducting
curities
.Phone
amnnnt
is ™-t0
almost to capacity, its further expansion calls for capital expendi-
sufficient to allay fears
cers
■fair
for domestic rather than for interUUUIC&UI. icllUeX Uldll 1UI XIUCI
fust
CLEARWATER, Fla.—Investment
I
nf
industry is working
S tionalized section
concerned.
(Special to The Financial Chronicle)
305
Name.
co
aggravation of the
outlook. The fact
_
JERRY THOMAS & CO., Inc., 305 S. County Rd., Palm Beach, Fla..
a
iudging bv
lunas irom aoroaa, judging py the
tne
taygi| »t- SSlSfiStrSS JW
good
businessmen and in-
rise to a fresh boom
Investment Enterprise
j
attrartwl
^intaimng its profit back
Inc.
Lane
&°Corey US
MEMBERS MIDWEST STOCK EXCHANGE
have
funds from aKroa(j
been re?
le?(d .4°
duced indicates that the steel inreductions. If it should
dustry at- any rate has heeded the JfPund. that such hopes were pre-.
Government's exhortations arid is riiature.it is
likely to cause a set-;
Morton
Globus,
Cow
in a securities business,
Globus, president and treas-
urer
that high interest rates
seems
<■
burst
tho rithov
publication of the
"
Morton Globus
Mr.
u
fniirvurori
jjjf
tieient
&
branch of-
Stevenson.
Globus
Price $3 Per Share
is allowable
^
engage
Address.
anomalies of the British system
of taxation, interest paid to banks
pros-
steel strike appears to have subsided to an appreciable degree. In
N«w Robinson Branch
with
the
fear -fnd ^h^TeUl^e'nt'of Ihe
fice at Charlotte and Prospect Sts
under the direction of Raymond
($l.Par Value)
fu
associated report of the Federation of British
formerly
POTTSTOWN,
S.
tho
the
optimism about business
nprts that
Congress. In 1959, a year not covered Ly the Library of Congress Gersten & Frankel 150 Broadstudy, the Department said Con- way, New York City, have an-
COMMON STOCK
CARS
annrppiahlv
bank
credits, is considerably lower than
that of instalment financing. The
latter still amounts to something
in the neighborhood of 20%. Moreover,
under one of the curious
,
of
CARS RENTAL SYSTEM, Inc.
*
though
Rnnirnjafi"^^^
feJw^ rSS-3
N. Abell Joins
an offer to sell nor a solicitation
of
of these securities. The offering is made only
without
even
,
Co., Inc. has opened
me
credits
popu-
the cost of such
higher'than^ thaFof ordinal
Street. There has been no corresponding revival in London. Even fy
though the gilt-edged market has
® 1
•—ln„nc
steel products have
send
achieve much
to
because
angry rebuttal, said the re- firm 0f Spear, Leeds and Kellogg, been somewhat steadier during i°a"£' are.
prt to Senator Symington gave and President and Chairman of the last week or two and Indus™°"ld bankVdeoM^d tn revise
a distorted picture" of the facts the firm of J. C. Kellogg and Sons, trial debenture issues met with
tne hanks decided to revise
by goring resistance and delays Inc. A former Chairman of the fair response, British investors unGcS
m P^trng Administration recom- Board of Governors of the New continue to prefer equities—apart
*<£jjJ® sake oi popu~
mendations into effect, omitting a York Stock Exchange in 1956-1957, from those who have taken a short iarizin§ me device,
number of specific requests and Mr. Kellogg at 21 was the young- view in anticipation of the railgees Bank Rate Continuing
faihng to take account of pro- est member in the history of the road strike. The number of those
Allow1no for nll thp_'
tempted by the relatively high
Srarns Passed by Congress despite Exchange.
tempted by the relatively hieh . Allowing tor all tnese circum
yield
on
fixed
interest-bearing stance.s, the firmness of money
Administration objections.
securities remains moderate.
??tes in London is not surprising.
The
Department ran its own
100,000 SHARES
Please
in
the
demand for Government'loans and
Kellogg iii
Robert B. Meyner in 1955.
7
side,
interest
United States has been mainly the
of a revival of investment
James c.
Port Author.
this
of
result
Kellogg
a
aruuAuiaui-
ity
from
trend
likely
larity,
not
it is possible to ascer¬
as
is
element in the instalments paid to
commercial or industrial firms is
Discusses Demand for Securities
his
ruary
was
lower than
9,
April
until
man
about 1%
are
Treasury Bill rates.
Vice-
as
death
At the time of
writing U. S. Treasury Bill rates
years
C hairman
1959
in the
York moved
New
opposite direction.
a
Commissioner
for
surprise of official quarters
London, and also of unofficial
ll' sphrof tL ™ct
to expand
that
large proportion of expenditure
on consumer durable goods is now
financed by the banks in the form
of personal credits.
This is an
innovation in British banking and
a
in a"
NEW ISSUE
I
u
•-
-
likely to cause a setback in
is
III
Agriculture,
by the Offering Circular,
305 S.
1
inflationary considerations.
persistent if moderate
Kellogg Named by
Port Authority
This advertisement is neither
offer
J,
,
a1
.
The Department of
'
y
.
Bank Rate is expected te be continued longer
intended, and tax cuts deferred, because, of. domestic
than originally
re-
planar a self-help ?ystem run by
were
seven
Last month's increased
,
C.
an
to
"
r
M
nrono^-
from
1953 through 1958,
"substantially fulfilled,"
were
"only partially met
delayed" and only five
totally rejected.
Benson
41
speeches,
credit
their
have
they
•;
rdrobrledIofXldsoiau^oftsedth0enir LONDON, Eng.—When the British capital expenditure, the resulting
or more
bi^hpr snrvnorfq
Bank rate was raised last month pressure on the economy would
members
.largely rates in New lated price cuts on Mthe of isotied to s?ric?er controls; rmi lti - » was doneinte7est on the assump- more than offset the effect general
wuiw..
.
price systems depending on the_>Y
.
ould continue to rise
The price trend
use of the crop; a direct payments
thnritipq
viewed the
Instalment financing contimiPQ
from
ommendations.
53
By Paul Einzig
duce price supports and remove-
ace
President Eisenhower denied that
Democrats
if
wartime demands . . . and this is Pr°duction controls.
the steps
the first time this-has happened ^ey think will bring supply and
since World War II."
in*° better balance,
In. 1958, another . Democratic
« they ^were not' confronted
Congress passed a bill ending Wlth the threat or the reality of
production controls on corn and a Presidential veto, the Democrats
the farm problem has
opened up a new phase in the
long political struggle over the
subject:
For six years, Democrats have
message on
.
faster
moved
——
recent
tobacco
and
had
undoubtedly- would
way,'
Eisenhower's
1956
in
'«•
Republicans,
«•
And in New York
far—omnibus
so
measures
»<,\yi<>V
in
Demo¬
vetoed
bills last year.
:
»
President
riiajor
He has
i C'
Thursday, February 18, 1960
.
dent's farm program, it is equally
true that Mr. Eisenhower has re*
•' *>riv: t//,,
%.«„
of
^Investment Clubs
a
re-
following
on
1hnnrS'3,• irlcreases • and
11)4-1%
n
i
•
iUlll OOIlVGIlLlOri
nr«rpnni
n/r-
u
n-nt
+•
sno.rter, Lours. This is one of the DETROIT, Mich.—The National
^"domestic reasons why the Association of Investment Clubs,
Chancellor .of the,(Exchequer is ,„n,
-,„V
ke.en °" maintaining high interest ^
°
l s ,10th Anniversary
..
"^t'o ESSS1*' de!?a.nd
expand, and if
there should
be
an
,
c°ntin- n°L
^'day and Saturday'
Oct. 28 and 29, at the Sheratonoo
m addition
expansion of
Cadillac Hotel in Detroit,
Mich.
.
Volume 191
Number 5926
.
.
The Commercial and Financial Chronicle
.
(765)
ily needs receive
with
the
needs
commerce.
An
equal attention
industry and
the
of
this
,
understanding of the
course
"
Banking's future growth and
success
recognition
which
is tied to its ability to attract
have
of
the
taken
place
has
housing boom in the next two decades will
will make the past seem modest by
which
occur
mortgage credit
discusses
found
are
the
comparison. Moreover, rules and
accounts.
national
He
that
adds
creation
of
conventional
a
prepare,
Americans
expected to make
are
The i next
two
decades,
Gross National
will
chiefly due to these factors; popu¬
growth and
living
in
the
during
1960's.
in economic
their standard of
decade
the
of
The.
Product
..
lation
from
-rise
billion
about
to
family income;
$750
billion in real
terms in
-
•
age
taken
There
will
about
35
lion
about
million
attract
Kurt
Our
Flexner
The
force
labor
lion additional
about 12 mil¬
in
is, of
will
by
increase
25%
over
during this decade to a level of
well over $9,000.
Average family
expenditures for housing will rise
from well under $800 in 1960 tp
well
$1,200 in 1970. Barring
disaster, such as a major war, the
people of the United States have
over
good reason for being optimistic.
Not only can the average family
live better than today;
expect to
for
but
scale
lower
families
many
the
of
curve,
it will mean a shift from too little
to
level
a
of
comfort
This
standards.
can
by Ameri¬
rise
in
our
standard of living will be achieved
technological
through
progress
increased
and
efficiency and will
be aided by our ability to meet
successfully the pressures of in¬
flation and consequent economic
declines.
major industry will be
by the growth expected
affected
the
in
1960's; but one industry
opinion, face greater
opportunities and challenges than
in my
other
any
that industry
—
is
housing.
Each
period
gives
tory
American
in
prominence to
ticular sector of the
his¬
a
par¬
economy.
the early 19th Century, the
phasis was on transportation
dustries. such
in¬
and
War
living
cantly,
as
the
came
dustries
World
of
em¬
.railroads, and in
industries such as coal.
power
Then
In
iron
when
began
to
consumer
and
steel
others.
many
I
our
in¬
After
standard
rise
signifi¬
such
durables
automobiles, refrigerators, and
radios experienced rapid growth.
Housing,
of
course,
also
made
as
but it was in the 1950's
really great housing boom
began — a development which I
progress;
that
a
will
think
the
era
1960's
make
and
the
decades
1970's
the
of
great
of housing in America.
to
level
a
build
rower
where
made
to
small
no
to pay.
the
of
credit
generated
the
by
will
still
ago,
be
ups
before
the
Added
factors
is
such
certain
the
to
en¬
only
next
see
will
the
availability
not be the
of
insurance,
better
supervision, and improved meth¬
ods of
appraisal. There is Tittle
doubt
that
today's mortgage is
vastly superior to its predecessor,
government
of
few
more
vious
ours
does
from
mean
on
construction
An
that
we
than
every
will
the
see
pre¬
such as
necessarily experiences fluc¬
year.
tuations
or
not
now
and
economy
adjustments
in
another sector of economic
one
ac¬
tivity from time to time.
This is
-the->way—the- ^market- mechanism
from
it
there
was
fore,
that
is neither
announcement
Commercial banks, there¬
busy
were
supplying
of industry, commerce, and
agriculture and paid little atten¬
tion
to
the relatively unimpor¬
of
needs
households.
an
The
the
needs
tant
This
concen¬
was
NEW ISSUE
offer
to
to
share
in
demand
modest
facilities.
the
in
true
home
This.,
area
for
of
financial
savings
our
if
still
,qjhead,
do
the job
can
marketable
a
can
to
be
this
intervention.
developed.
will
The
not
will
lies
conventional
will also
new
the
of
success
In my opinion,
about
come
depend to
technological
The
changes
curred
the
in
size
the
which
some
last few
and
oc¬
t1
.
»
/
,
our
cities
by the construction
*An
cities financially.
12th
sell
nor a
address
by Dr. Flexner before the
National
sored
The
solicitation of
an
offer
to
buy these securities,
the
altered
in
this
for
debt,
composition
country.
The
example,
States;
a
and
part
personal
of
of credit
Copies of the Prospectus
savings ac¬
important
system
undersigned
may
as
may
be obtained from only such of the
laicfully offer these securities in .this State.
are
eagerly competing for them. This
is only the. beginning, however,
increasingly
R. S. Dickson &
■
families will in the
amounts
more
on
will
success
we
able
to
and
attests
development.
have moved from what
a
to
producer's
We
was essen¬
economy
A. C.
Allyn and Company
Incorporated
Courts & Co.
Stone & Youngberg
'
Alex. Brown & Sons
.
A. G. Edwards & Sons
Piper, Jaffray & Hopwood
the
have already achieved
economic
tially
many
adequate reserves, .in
accounts. This change is
fundamental
'
I
and
be
Company
Incorporated
larger
up
savings
.in
housing,
families
build
■»
.
that
institutions
spend
j
$13.2 5'per Share
largest
so
credit
our
financial
all
'
'r,
,
Price
in the United
have become
counts
Share)
mortgage
is the
single private debt
Engineering, Inc
per
to
a
balanced economy in which fam¬
The Robinson-Humphrey
Company, Inc.
indus¬
Credit
Conference, spon¬
by the Credit Policy Commission
of the A.B.A., Chicago, 111.
has
properties
the
of
on
intro¬
The loss
j*
national income have significantly
extent
advances
decades in
distribution
soon.
housing
tries.
of
(Par Value $1.00
have
very
private
Class A Common Stock
ings and loan association.
are
mortgage with adequate mobility
to
point
exist
which
private enterprise
and
ownershio and gave rise to
rea¬
spite of the great demand for
housing
February 18, I960
the mutual savings bank and sav¬
sav¬
economy.
In
\
Soroban
a
mortgages
100,000 Shares
especially
was
institu¬
likely to benefit most from the
changes which have occurred in
during this period, however, fami¬
lies were beginning to generate
a
The
increase
financial
offer is made only by the Prospectus.
Even
must
able to attract
are
effective
the
funds
for
demand
and
savings.
continue
Those
sonable
duced
■
This
they
decades
substandard
hurt many
1960's
a
ings and willing to invest
property taxes from slums and
other
the
naturally went predomi¬
nantly to business enterprise, for
future
year
answer
which have deteriorated.
of
of
costs
great de¬
The funds re¬
will
save
sections
also
the
produce
largely
construction,
but
it
witness the rebuilding
large
in
system
for American
Greater-Than-Ever Housing Boom
will
tions that
Voluntary
great market for
a
residential
are
to
be done
alternatives which
The
increases
steadily.
Program
direct government
will
rising constantly and their ability
Certified
but
chal¬
income of the American people is
that
the
problems,
the
the building industries.
likely that the cost of
summarize,
Agency Program is another. These
or may
meet
adequately
The
effort;
to
foreseeable
-come
of
Credit
Mortgage
one
commu¬
mand for housing.
quired to meet this demand
interven¬
measures
this connection.
in
a
and
which
in
such funds
the
technological
To
inadequate
funds does
mobile. There is much to
World
Second
rather
mortgage
.
banking
but
in
not
1970's
believe
I
much
serious
remote
problem
government
make
may
There
to
mortgage
in
hance the investment status of the
this
decades
few
a
lie
tion
business fluctua¬
severe
of
a
and
answer
will
bor¬
a
American
been
responded to local
and
national
needs,
developed
along lines determined by the
pattern of our economic develop¬
Until
mobility
measure
of
the
not
This is
mobility,
Home
tions.
nation, which
ment.
that
Rising incomes have
average
War.
system
capital
are
in
construction.
to available mort¬
access
funds.
gage
which
areas
and lack
vital
the, ability
in
true
downs, but it is most unlikely that
they will be as severe as they had
structure.
financial
an
an
decline,
even
advances, in
future; but im¬
provements in technology will go
a
long way in avoiding further
capital does not do
adequate job. This is especially
to control
chiefly invested in business enter¬
prise.
The consumer and home¬
owner
played
a
relatively un¬
important
role
in
our
credit
The
of
believes
is
the
private
His
ability to pay is further improved
by the fact that we have learned
capacity to produce.
and
new
credit
were
Savings
financial
much better credit risk today.
our
up
the
his bank.
factor
connection is in
could afford- good hous¬
ing.
Until the last few decades,
we
used
our
savings largely to
trated.
Every
will,
output
to
for
and
Another
related
people
the
on
income
tional
all
at
that
impor¬
tance is the credit standing of the
average
American. Risk in this
employed. ing. Before we could have good
The increase in productivity will housing on a mass scale, we had
equal'"about 25% in output for to build up our basic industries,
employees.
Average family in¬ and we had to increase the na¬
come
itself
himself
surpris¬
course, not
provisions existed. It did not
it
interest
construction
marketability will give
because
do
with
conventional
finance
gage
our
persons
It
in the field of housing and mort¬
amortiza¬
requirements of the average home
owner.
If he made use of it, he
frequently
invited
trouble
for
-
economy
no
the
show
,
vances
ment intervenes from time to time
lend
increasingly important role
construction
Greater
to
that
community
lenge of housing in the next two
decades, part of that challenge
must be met by technological ad¬
is currently studying
possibility of creating a con¬
ventional mortgage with national
marketability, and in my opinion
the day is not very distant when
this will be accomplished.
today.
active
will
the
apply
turn
held
Although improved methods of
mortgage financing with the full
participation of commercial banks
Association
today is infinitely
affects
in
assets
the
Banks
in
nity.
mortgage a
greatly needed mobility which it
lacks today. The Federal Govern¬
tion
of funds.
sources
longer
no
which
affect
banks.
an
would prove a very profitable in¬
vestment for pension funds, trust
savings1 and
of finance for which
programs;
residential
of
will be increased by
in¬
rebuilding of slum
cities, which has
our
new
both
of
that
building
will benefit not only
directly but
also indirectly
by being recog¬
nized as community leaders with
of funds
sources
mortgage,;; The old mortgage was
a
relatively short term instrument
good start in the urban
and advances
mortgage finance, which will
in
11
by
interest
insuredand
superior to the mortgage that led
to losses in the past. In fact, it
is not even comparable to the old
a
renewal
more
families.
of
already
States
finance
largely
construction
the
in
the
dustries;
,
The mortgage of
aver¬
place already; technological
sections
the
in
United
which has
income
of
advances
be
mil¬
more
people
and
tion
1970.
however, for the tremen¬
area
new
ones
one
deteriorate
values,
well
may
a
ability;
but
they
are
greatly
handicapped... by
fixed
interest
rates, which lead to serious com¬
plications. The conventional mort¬
gage with national marketability
The principles and rules that ap¬
plied to banking the past decades
in regard to savings and
mortgage
redistribu¬
a
of
is
significance
to
property
guaranteed
mortgages have national market¬
are
an
Are Passe
..
the size of
creation
the correct
are
to
the
Quite apart from the bene¬
permitted
funds, etc. The American Bankers
large increase
signifi¬
a
Commercial banks
Why Past Rules and Principles
30-40 age group; a
increase in
cant
today
growth and
the
in
.'nearly $500
.
the
some
present
fits that such programs may bring
to a community, an area which is
housing industry. Govern¬
ment
mortgage credit.
however, should see both growth
and changes in housing that will
make the past seem modest by
comparison.
This boom in housing will be
considerable progress
in
many
the
to
dous growth that lies still head in
,
the
works.
lies
the
problem
great
banks.
mortgage with na¬
marketability which would
tional
important part
mortgage
finance
and
even
more so in a larger sense in com¬
munity financing.
They should
improvements to the Voluntary Home Mortgage Credit
governmental attempts to fill the gaps in capital mobility.
nection
many
in
Program and the Certified Agency Program will be the answer to
de¬
of
in
success
rebuilding dilapidated
the
not,
is
for
bring
already playing
mortgage with
America's
or
conventional
the future.
marketability will enable private enterprise to meet housing
needs and that
that
Program has met
whether
methods of
adequate housing can
successfully by private en¬
terprise if certain improvements
are
made
in
mortgage finance.
The biggest challenge in this con¬
many
For
.
believe
partly in home ownership will be
the road to growth,and
success in
superiority vf today's mortgages^ size ^ mort¬
debt in the economy and avid competition for personal savings
gage
banks.
of
cities; jbut
*
.
'
banks, the ability to attract sav¬
ings accounts and to invest them
longer applicable today. The author
no
prosperity
comrpercial
principles valid in banking's past decades with regard to savings and
also
and
new
"
Renewal
with conspicuous
be met
al¬
growth
a
the
•"
mand
ready become instrumental in the
vinced that
"
I
changes
savings and to participate in mortgage financing. Dr. Flexner is con¬
'
Urban
to
us/with
communities
changes which; occur are, I
think, a prerequisite for a dy¬
namic approach to bank policy.
The
mortgage; but
be done, and
needs
Suggests Mortgage Improvements
the
Bankers Association, New York City
still
furnishes,
challenges that lie ahead. '
which economic development fol¬
lows and an accurate appraisal of
By Dr, Kurt F. Flexner,* Director, Mortgage Finance, American
unamortized
much
13
Stroud &
Company
Incorporated
*""
'!WW'•
14
the
The Turbulent Sixties
ending'—that,
'happy
relations
ternational
western,
And the American Investor
By John L. Rowe,* Resident Manager,
Blair & Co., Inc., Tulsa, Oklahoma
/
the
bad
first
the
good
Such
an
but
win.
to
for
contented
Analyst
his
of
'Your
impending
factors
portfolio issues that
are
profit mrrgins,
supported
not
and
utility, tobacco and certain oil shares
as
The
U.
S,
Treasury
security trader submits
we
still
fives"
headed
are
due
in
toward
ade of peace and
their
dec¬
a
prosperity. Like
the
Roaring
counterpart
Twenties, they
exciting and
were
morable.
m e
Just
as
War
I
and
communism'.
45
the
for the
Republican
lar
kickoff
This
franc
into
the
five
to
World
franc"
the
set
for
stage
the
100
Re¬
off
Fifties.
If
striking
allel
two
John L. Rowe
/
decades, it lies in a
market.
Com¬
stock
mercial bank deposits were loaned
demand at
on
rates
ever-rising interest
the
finance
to
market
stock
record
pyramid of the Twenties.
In the
Fifties, and even now, combank deposits are loaned
demand at rising interest rates
keep not stock brokers but
merical
on
to
Uncle Sam in funds.
ord
Today's rec¬
market pyramid is di-
stock
rectlv
influenced
by record Fed¬
eral
peacetime spending, record
peacetime deficits and accelerated
m.onetization
Federal
Record
and
debt
of
Federal
manetization
the
propel
advance
salaries,
156 years
George
eral
Reserve
the
Washington
In
through
eight
years
of the Eisen¬
156 year total for all of Presi¬
Eisenhower's
In six
of
these
Eisenhower years,
will
be
be
re¬
quested again this year to advance
the debt ceiling.
Under our con¬
stitution,
Congress
executive
ceiling
House
The
is
brake
at
debt
$284.9
While
lifted
the
on
limt
is
now
ing.
It is
now
government
at
4%%
for
conventional
A
despite
emphasize the soaring inter¬
est cost
a
$1.5
ing
It
will
$9 billion annually—
billion jump in six
years.
World
an
cost
debt.
exceed
That
at
for Federal
War
over-all
II
was
financed
average
interest
considerably under the exist¬
statutory interest ceiling of
4V4% will be stressed.
With these
thoughts for background,
we
in¬
troduce the Turbulent Sixties.
Fiscal
and
Monetary Inflationary
Factors
Inflation
and
still
dominates
short-range business
and
long
in¬
bonds
are
F:d-
formidable
five
;
be
1995 should
thousand ,inthousand—their
Why loan your
maturing in
worth
stead
$700
of $800
market.
and
is
.
4
to
free
comprising ; two
European groups. The
Common
Market
Six
includes
France, West Germany, Italy,- the
Netherlands, Belgium and Lux¬
embourg. The Outer Seven num¬
bers
Great Britian, Sweden, Den-
ark,
years,
Austria, Switzerland, Nor¬
and
Portugal.
In
recent
Europe has accounted for
about
one-fourth
way
of
U.
S.
exports
impressive figure of $4
—an
bil¬
lion annually. These two
European
rival trade groups are capable of
a
high
aim
S.
self-sufficiency.
tariff
rival
tween
U.
of
measure
Reciprocal
reductions
trade
with
politically
should
of
race
be
recalled
the
bank
tial territorial
lems.
Does
gium
or
a
agree
and
the
Formosa's
on
arms
essen¬
Poland,
Bel¬
really de¬
Germany?
Does
General
want
to
the
Red
Russia
U.
and
S.
tax-exempt
feature
retention
100%
teed
of
allows
of
the
ngkis
fruitful?
disarma¬
summit meet-
Communism
or
ts
Senator
NSTA
cebt
tion.
debased
or
by
otey.;
r
is subtle repudia¬
political expat i ncy
money
Since
economic
our
debased
n
is
oney
Cur fiscal
France.
the
course
planning,
popular
parallels
MEMPHIS
with
debased
tight
money. ;
from
1959.
SAN
income
another billion this year.
the
of
down
President:
Reason:
up a
the
ingly
worried
the
ASSOCIATION
Leslie J.
r;
; Directors
the
of
association
for
1960
Albert
actual
rentals
billion
to
.
A.
Hewitt,)
Inc.; Joseph P. Ferriter, Jr., Hooker & Fay;
Inc.; Leqn M. Blum, Brush Slocumb & Co. Inc.; and Kenneth B.
Fazackerly, Irving Lundborg & Co.
'
are:
-
.
..
goal—
PITTSBURGH
SECURITIES
TRADERS
ASSOCIATION
■'■t
^
The officers of. the
percentage of
Pittsburgh Securities Traders Association
fair..re'-1960 are: T.
1 "
:
\
;
V
-
and
turn
storage
•
The First California Co.
between
difference
•
annually shifted ultimately;
farmers as the critical-,surplus
for;;
>'
-
realization.-,President*, Norman B. " Ward; Jr.; Norman'Ward & Co, -'
now^exceeding-$1-::^.; ^ Vice-President: Robert CUWetmore, McJunkim Patton &
'
; a
Co.
Treasurer:
4,y
problem diminishes. Shake-outs of %
the part-time or■ marginal,
Roy M. Hamsher, Cunningham*; Schmertz & Co.;:
Y
<
,■•■,'<< •;?,
\ %
Secretary: John W. Hoy, Jr., Parrish &
Company.
- J Directors:,; two-year term)_ Arthur, F.
Humphrey, Hulme,
Inc^
-,
,
.
,
■
„,
farmer,,;
of
the
domestic
..
.
auto-
KANSAS CITY SECURITY TRADERS
ASSOCIATION
,
credit slaves
are pinched
by tight
Rising wage levels will
adversely affect profit margins,
particularly for capital goods. Re-
of
the
United
increas¬
by
the alarming
capacity of Americans to believe in
;
fo1.%n9e6o
„
sales
(consumer
their
items)
record
>
will*.,
moderate
tSZ
tense
The
competition
from
natural
reducing the do¬
This fact
,
I960 officers
tion of Los
„
/
„
J-
and governors
Angeles,
are
as
of the
Security Traders Associa¬
follows:
President: Ralph
Dahl, Evans MacCormack & Co.
Vice-President: Patrick
Sheedy, Fairman & Co.
with stockholders
as
expenditures are reduced
is critically
T
'
.
SECURITY TRADERS
ASSOCIATION OF LOS ANGELES
instalment
below the $5.2 billion annual level
of recent years. Excess
production
curtails development as more na-
'
■•
•
generous
capital
.,
'?.•
Traders Association
Fogarty, Jr., Stern Brothers & Co.
Vice-President: David
Kramer, Bache & Co.
Secretary: Thomas P.
O'Sullivan, III, Harris* Upham & Co.
Treasurer: Joseph M.
Crowe, Luce, Thompson & Crowe, Inc.
.,
materially aided by in¬
charge ac
counts. Stability instead of growth
creased
for «*. Kansas City Security
President: John F.
money.
tail
a., D.,idVS!iSkW«,
.
jl
will Cehm'baevenYGLugh
billion
mestic fuel oil demand.
am
TRADERS
Howard, J. S. Strauss & Co. Inc. ' /;
Ralph E. Brown, Stone & Youngberg.
Secretary-Treasurer: Francis W. Muetzel, Walston & Co. Inc.
^
quota-type controls with the farm
subsidy making
SECURITY
'. .V Vice-President:
.
rejected
once,
Desired
ulo,
General Assembly of
Nations writes, "... I
fol¬
meeting of the San Francisco Security Traders As¬
sociation, the following individuals were elected officers:
acreage yields and lowest
prices jn 16 years. Yet nonfarm
prices climb steadily!
Both Re¬
publicans and Democrats embrace
Plan...,
the
At the annual
rising
variations
FRANCISCO
About
$2 billion last year.could be down
Brannan
elected
Secretary: James A. Wittenberg, M. A. Saunders & Co.
money.
Farm
has
Treasurer: Bruce Rader, Rader, Wilder & Co.
starts —down 25%
new
ASSOCIATION
President: William R. Grissom, Union Planters National Bank.
Vice-President: Albert Johnson, First National Bank.
on a par
by
DEALERS
Memphis Security Dealers Association
lowing new officers for 1960:
Business
1.1 million
SECURITY
The
Bonds will continue to be
redeemed
gas
President
•
1 gal
According to Vir¬
Byrd,
our
total
structure, government and
nongovernment, hovers now at $1
ginia's
counterpart state capitalism is
scaling the heights! A life¬
long U. S. friend, General RomTill
former
become a general partner in charge
of the firm's Baltimore office,
guaran¬
uptrend,
persist? What happens
the growing armaments of Red
a
come
spective city. Elisha Riggs Jones,
formerly a limited partner, will
a
national
income.
Kai-
ment aims
China in the event
San
-—-
happens to our military re¬
lationship with Japan, Indochina, characterizes the oil industry. In¬
Formosa, India and Korea should tegrated companies should be more
lo
is
of
long-term bones. Mu¬
nicipals have isolated status. Th ir
Straits
by default?
What
Soviet
Gilmour
firm's
Palmer
each of whom will beresident partner in his re-
in
continue
Chiang
Taiwan
China
and
McCarthy
D.
Mr.
the
M.
Marino,
commercial
basic
Soviet Russia
united
of
ss maeessms&tm c-—. »■>•<•"
political prob¬
France,
Daniel
Zeltner.
L.
It dampens institutional
purposes.
interest
loans for
mobile market.
international
is failure to
paul
member
Donald
and
are
John
Jr.,
a
balanced budget our sales department and is in charge
tight money policy doesn't : of private placement sales.
Mr.
discourage inflation. Rather it re-
their share
It
kelsey,
A
Gilmour,
hope¬
difficult.
Summit Meeting
cause
S.
Without
stricts
The
market
great
the inducement. Outlook
but
the
is
groups
our
be¬
d
current
tarded
alliances
aowerful
i0
with las* ,*ear.
Competition intense. Housing re¬
disturbing
related
New York Office of the firm
<.
money to Uncle Sam for 35 years
at 4.05% when you can loan it to
him for 26 weeks at 4%%?
Exchange.
.
per
per
Stock
York
latter has been approved as a
member of the Exchange and as
alpproval by the Board of Gover- a partner in the firm.
T
.nors.of .the New
York Stock;
Other proposed .new partners
Exchange.
: -are-John W.' Carlton
of Boston,
Proposed new partners in the Dwight H. Gravett of Las Vegas
admissions, with one exception, are subject to future formal
bill rate averaged 4%%. To match
this yield,-U. S. bonds with.a 3%
coupon
New
announcement made Feb. 17.
an
All
Not too long ago the U. S.
years.
op¬
Trade
to
years,
after
Paul Zeltner
Kelsey is a member of the firm's
buying department, Mr. McCarthy
a member of the trading department and Mr. Zeltner will represent the firm on the floor of the
& Co., 15
year,
five
o.
Dillon, Union Securities
Broad Street, New York
City, has proposed the admission
of eight new general partners effective March 3, 1960, according
Bills
one
mature
S.
Activity
evelopment
trade
handed
soon
antidotes.
challenging
shek
will
U.
in
before
deposits, building and loan shares
or U. S. savings bonds
up to $200
aggregate could prove rewarding.
The statutory interest ceiling will
and
Critics
mature
mature
dictates
which cost excludes vital
aid.
or
Certificates
cl oice.
ment
foreign
ninety days
Daniel D. McCa t.i/
Lloyd S. Gilmcur.
Kelsey
Eastman
year—thirty-sixty,
twenty-six weeks,
a
Debased
the
sire
—
chiefly centered in U. S.
less than
Notes
Jciin L.
.
.
bills, certificates and notes.
run
V
sagging
,,
ening time-payment contracts
point to the record 80% cost
increase for Republican govern¬
will
.
Commercial and banking
interest is
eral income tax exemption for the
annual interest from savings bank
a
maturing be¬
yond
five years.
Congressional
leaders,
particularly Democrats,
defense
to
ceiling
fixed
market.
.
;
the
of
„
trillion. Federal debt is reduced
ful
bonds
.
frugality, taxes
as
House repeat request to advance
the statutory Federal interest ceil¬
inevitable.
ating waste in defense and short¬
will be
bitter fight
expected
White
an
diplomats
inflation remedy. It will be argued
that closing tax loopholes, elimi-
Present
billion.
debt
generously,
looms
excesses.
billion.
debt is about $292
White
:on
Congressional
or
statutory
fixed
appropriates,
spends. The debt
the
broke
market
cide that high interest rates and
ti?ht credit are not the effective
predecessors.
the statutory debt ceiling
violated.
Congress will
the
bond
end, temporarily, the inflationary
spiral
following
World
War
I.
•Congress could again this year de¬
the
just $21 billion short of matching
dent
deliberately
government
summer
a
seem
continuation
present
is technically a creation
Congress, it has traditionally
acted independently. One memor¬
able example was the "inventory
panic" of 1919-20. Then the Fed¬
from President
hower Administration, total taxes
are
calculated at $565 billion —
the
francs.
and
wages
Truman Administration, aggregate
tax collections totaled $586.3 bil¬
lion.
100. A 10,000 "old
deposit is reduced to
Foreign
the
split. It is
for
market. While the Federal
prices.
In
govern¬
the French economy
within
a
manipulated
year-by-year rise in
living index. Here is he lifted
of the recurring agitation position.
the root
dol¬
dollar.
the
DeGaulle
Gaulle
of
cost
to
redemption
or
debt.
deficits
the
the
of
these
colortui
French
Reserve
a
exists
rewarding
to
the
ours,
money
par¬
between
De
operates
the
into
Fabulous
are
one
run
to
reverse
a
bank
Like
publican kick-
the
orders
franc
one
four
hundred
year
ment
II
from
to
The
gamut.
went
Roaring
Twenties,
War
executives
France
provide politi¬
Bond Market
depth and time. It took
for
devaluation
stage
.
to
years
g
.
and
III, IV, V, etc.,
inflation.
the direction. Discussion is
argues
makes
Historically, World
newsmen.
War
planning. Banking, busi¬
and insurance
ness
Eight
,
1964.
resigned to dollar erosion. No
related
World
set
vestment
Eastman Dillon to Admit
country
grandchildren will be divi
.
were
man
attitud;
propaganda
A
The Fabulous Fifties
TV
draw
is bound,
carnival atmosphere for
preferable for their
more
in¬
a
Thursday, February 18, I960
.
may
man
Summit meetings
cal
by record earnings
"magic
than
affect the
consider telephone, public
to
defensive
needs
to
apt
The investor is advised to weed out
during this decade.
comfortable
and
and
current
surveys
in
in
as
.
.
but if h
persists,
I
sadly
preen,t
t.iat
Khrushchev will be proved ri
a
under
economy
Financial Chronicle
The Commercial and
(766)
:
Secretary: Wm,
H.
Elliott, J. Barth
&
Co.
Treasurer: Del
Bakerink, Paine, Webber, Jackson & Curtis.
Governors: Robert M.
Green, Pledger & Co.; Jack Alexander,'
Dem?,Sey:Teg!le.r & :Co- and Graham Young, Weeden & Co.
TToKTioe
Ueb. 12,
at
960 .Dinner Meeting
the
of the association is being held
Windsor Restaurant.
shows
up in our excess refining
capacity.
It exceeds 1V2 million
barrels daily.
Despite hardships,
Continued
on
page
21
WASHINGTON,
D.
C.
SECURITY DEALERS
tnnlneir rlgular4 JaT?ua1ry
Lrovernors
Sec^nty
and, in
ASSOCIATION
meeting the members of
Dealers Association elected their
the
Washing-
1960 Board of
accordance with the
Association's Constitution,
Volume
191
Number
5926
.
.
The Commercial and Financial Chronicle
.
(767)
this
Board of Governors then electedtheir 1960 officers from
new
the board;
The new'officers and*other governors for 19o0 are:-
President:
Rear
Admiral
E.
G.
Podesta Named by
De Paul University
..
(Ret), h. f.
Peckham, USN
& Co.
?\
• ,/A'"
'>
Vice-President: Landrum Allen, Landrum Allen & Co.
Secretary: Donald Joy, FIF Investing Association, Inc.
Weekley
By Roger W. Bahsou
Mr. Babson
Treasurer: Martin
Lesser, A. T. Brod & Co.
George Mitchell, G.- J. Mitchell & Co.; E. A.
Burka, E. A. Burka & Co.; Stephen Balogh, Balogh & Co.; and
Irving Rudd, Sutro Bros. & Co.
•
v
;.V ■
.
returns, and discusses what
.
officers of the
new
1960
are
as
follows:.
;
^
; ^
georgia security dealers association
The
The
Georgia Security Dealers Association for
■.
j,
.
,
.
Townshend Budd, McNeel, Rankin &
Vice-President: Harrison Clarke, The Johnson,
The
officers
1960
of
the
are
A.
resident:
i
Robert
B.
Greensboro, N. C.
National
Independent
will
surely
year.'
P
Carolina.
'
r
,
bonds
and
are
gress.
of
best; but I think-that
turnpike- Revenue
fairly good at their
prices. If you buy them
later
and
now
v
do
loaning
it
is
money
wise
to
V':;
Association
NA$ H VILLE,. Tenn.—The Nashville Security Traders
announces
that in the' future the association will be
The
there
:
also
^
•
,'vn v'vrrrV 4;V-'; W
Friday, May 20—Luncheon, Golf, Dinner at Bellemeade Country Club.V;...'/
■"
-n...
/;•; ••••->;
V- \'.!W
of
Connecticut for
?:
r,
:
Vice-President:
1st
-
Hartford, Conn.
'
-r
Vice-President:
2nd
H.
Edward
,v\
Mathews, Coburn & Middle-
brook, Hartford, Conn.
Secretary & Treasurer:
Lawrence
&
•
,.•••:
•
Co., Bridgeport, Conn.
petersburg
st.
bond
^
.
Hine,
F.
.1
^
the
purchases
but
you
avoid
import
Various
can
as
you
ta^ces.
other
save
often
means
taxes On
be
can
merchan¬
These include "sales taxes,"
can
be
the
taxpayer
will
Robert A. Podesta
to
as
be
This will
Don't
be
ment
What About Death
These
you
are
"penny
married
are
estate
ol
and
-
persons
living
certain
states.
permits you
bills,
most
easily
the borders
near
There
certain
an
(if
also
are
amount
annually
are
doctors'
on
costs,
hospital
middle-aged, give
or
to
year.' You
every
free
20%
30%
to
to
religious, educational, and sci¬
entific bodies. Such gifts I make
regularly; this is really a joy.
The
large
investor,
however,
who misses this "joy of giving"
and is trying to
be {he "richest
man in the cemetery" has another
means
of
cutting death
taxes.
Certain
U.
be
Government
bought at
15%
more
or
taxes.
such
Hence, by investing
bonds
of
can 'save
to
an
estimated
death taxes, you
or
more
by pur¬
now
and holding
your
15%
churches, etc.; also exemptions for
•'•
taxes. Everyone can
certain
taxes
gifts
Bonds
discount
which will
a
accepted at par in payment of
death
in
S.
be
now
of about,
to
benevolent
$3,000
You also
give annually from
of your net income
chasing them
them against 'your
charges,
give
tax.
of
future
the
and
Midwest
Brothers, members of the
Stock Exchange, have
York
the
opening of an of¬
Royale, Paris, France,
Uri as their foreign
fice at 7 Rue
With
Pierre
representative.
i'
heirs
your
can
of
Lehman Opens
Paris Office
a
allowed to
amount
to make
medical
young
Association,
Governor
announced
singn
$60,000), but the Federal tax can
are
Stock
Excnange.
New
i,
leave
$120,000
over
Bankers
former
Lehman
Taxes?
hard to avoid
very
of
save
charge
wise and pound foolish."
,
Associa¬
tion
Firms, Chairman of ine
State Legislation Committee, Cen¬
tral States Group, of the Invest¬
$25 and will per¬
less.
Podesta
Exc" ange
employ some
locality to make
money—the
the
have
you
to
not exceed
haps
can
avoided
allowances which your tax return
<
•
and
This is the1 only honest way
of
',••.•
in
as
by
•'
Inc.
stay
U.S.A.
$200
time;
one
must
very
purchases
dise.
following officers were installed Feb.
Smi h
any
to
Japan,
low
and
You
outside
limited
which
club
Buffalo,
as
selling at
countries.
found to
Ramsay
13 for the St. Peters¬
burg Stock and Bond Club at a dinner held at Suwannee Hotel.
^resident: Edmund D. Read, A. M. Kidder & Co. Inc. <
T'ice-President: Paul B. Good^ Thomson & McKinnen.-;; '
^
cecretary: E. Pat O'Brien, Bache & Co.
>
•
T easurer: Maurice L. Foisey, Merrill Lynch, Pierce, Fenner &
The
in
hours
at
!v
•
^
•-.
other
to
:
''LV.
.
Smith
taxpayer
accountant in his
.
wish.
&• Co.,
Putnam
^
make
V>. .V'i.:
Schieber,
are
are
•
/y'
F.
Kenneth
cities, such
Germany,
;.48
Angelos, Chas. W. Scranton & Co., New.
\/'y..:L 'AS
Certain
prices
officers of the Security Traders
1860:
If
out his tax return.
■
Imported Goods
on
goods that
;
'.//'v
Haven, Conn.
Duties
>
offer opportunities to buy foreign
■
,,
Association of Connecticut
President: George H.
be
Mr.
is Governor of
they
be reduced in various ways. If
you
: ;
Club.
Association
board.
tax
payment,
absolutely honest
the 45th
member of the
is
man
every
,
-
The following have been elected
Con¬
fairly
a
'
be¬
comes
helpful
mathematics.
way
discuss this later.
Mr.
Podesta
from
pay
announced
.
security traders
no
President.
tell you how you could have saved
tax money.
It therefore will
to hedge against
called the ' / "death.,taxes"
except by- giving
"/ money away before
better description of :
you die. I will
the following program, for
their Spring Party:
V": .>•.i Vr"'*
^Thursday, May 19—Cocktails & Dinner at Hillwood Country
has
group
is
income
J.
alley,
C. jvL, De Paul
paid too much they will tell you
so, just as they would if you had
paid too little. But they will no
the taxes as part of the rent,
This has many advantages and is
fair
to
all
parties.
Of
course,
-
at
are
by
Very Rev.
helpful tax
mort¬
on
make
most
Busi¬
Harder, President.
will
can
When
The
the
like
not
pay
-
r*
t
board
nounced
the
This Associa¬
some
legislation
Wilson
your
them,
probably sell them at a
:profit. You need not keep them
until maturity.
;
'
:
"Security Dealers of Nashville,? which is a
the membership of our club..• :
Uni¬
of lay trustees,
has beeen an¬
When the Federal agents check
the
are
current
Company,
\;V'"
other
C.
they have been for
The "full faith" Municipals
Bonds
of Independent
Its headquarters
tion has secured
C.
.
of
Business
Burlingame, Calif.
rated
gage
OF NASHVILLE
SECURITY DEALERS
Inc.
ness,
Bonds
non-taxable
most
"
-
These
serious each
low
rate
of
McCall, Alester G. Furman Co.,
interest, plus your
approximate
income
tax.
Then
Inc., Greenville, S. C. • .
; ■
v
V
your
."•*
mortgage interest will be
u^cretary: Robert Walser, Merrill Lynch,: Pierce, Fenner &
net. Certainly, in the case of rents
Smiui Inc., Greensboro, N. C.
:
•;p..
■ 'r
:. reasurer: Phil Pearce, R. S. Dickson &
Co.,. Inc., Columbia,. Vyou should insist that the tenant
Soutn
Federation
the
to
Paul
O'M
are
--/.'J'
Arthur
ice-President:
v
De
Comerford
you
Securities
United
Dixon,
to
cheaper than
Securities Dealers of the
.
anxious
years.
-
CAROLINAS
,
bankers,
-
Federation
All
.
The officers for the year 1959-60 for the
Cannulas are:
is
three main handi¬
Non-Taxable
J.
RITY DEALERS OF THE
investment
♦
versity
investor
taxes.
more
.
Warner, Stein Bros. & Boyce.
National Committeemen: Charles C. King, Bankers Bond Co.,
Inc., and Russell Ebinger, Almstedt Brothers.
V
/
V
SEC
Co.,
If you are an average business¬
as
well as an
investor, you
should at once join the National
follows:
as
& Co.
•
Co., Inc. LSLf
Secretary: Charles T. Lang. Merrill Lynch, Pierce, Fenner &
;v '
Smith, Inc.
■[ ■■■:"!: [c
Treasurer:
making out tax
man
be
President: Craig Culbertson, Jr., W. L. Lyons
Vice-President: M. George Martin, Walson &
:
in
be done about death taxes.
(1)
Inflation;" (2) { labor
leaders, and • 1(3) taxes. Let us
consider, this week, hedging
*
:
Louisville
of
fairly good at
are
against
"
'
Club
Bond
can
CHICAGO, 111.—The appointment
of Robert A.
Podesta, managing
partner of Cruttenden, Podesta &
that offer the possibility of
areas
caps:
.
Corporation.
;> ■
:''
•.*" ..'
Secretary-Treasurer; John B. Ellis, Courts & Co.
bond club of louisville
wise
hedge against
J-i '• [
Budd, Inc.'
Lane, .Space
■
•
r
President:
highlights significant
reducing one's tax burden. He finds turnpike bonds
their current prices, advises use of an accountant
Governors:
.
15
T. Symons Opens
-
WILMINGTON,
Symons,
with
Inc.
Trust
Del. —John
has
offices
in
Building
securities
been
the
to
in
engage
business.
T.
formed
Delaware
Officers
a
are
John T.
Symons, President; James
Divizio, Vice-President; and
P.
Reynold
W.
Symons,
Secretary-
Treasurer.
"i
'
■
"
■
With Manley, Bennett
DETROIT,
Seeber
nett
&
York
Mich.
and
changes,
Detroit
as
a
sentative in the
Buhl
—
Robert
P.
has joined Manley, Ben¬
Co., members of the New
Stock
registered
Ex¬
repre¬
investment firm's
Building office.
He formerly was with First
Michigan Corporation.
of
death
hedge against
Martin Poll Onens
#
1
directors:
Soren
D.
Nielsen, Beil & Hough, Inc.; William A.
Eir' rsoti, Merrill Lynch, Pierce, Fenner & Smith Inc.; and T.
Ray Gaither, Francis I. du Pont & Co.
•
t
.
civ cnn ati stock & bond club
Thr
1960
of
fficers
the
Cincinnati
\
rft Vice-President:
*"nd
.
can
your
secure
local
a
list
of
requires
but
it
thought, pre-plan¬
ning, and the help of
bank.
the
for
tax expert.
a
BRONX, N. Y.—Martin H. Poll is
conducting a securities business
r
from
offices at 807 East
year
y
Charles A.: Butz,- Harrison
J. Altenau,
& Co.
Merrill Lynch, Pierce, Fenner
& Smith Inc.
'y
Company.
\
■ ;. ;
Hoefinghoff, L. W. Hoefinghoff
& Cm: Paul Hood, Seascngood & Mayer; Richard Strubbe, We-d>
hei
er
& Company; Joseph Vasey, Geo. Eustis & Cor R'chard
WeTt'nghoff, G. J. Devine & Co.; and Taylor Alter, W. E. Hutton Vm
■
care,
extent;
George Kaler, W. D. Gradison & Co.
Vice-President:
Vecretaryy Henry
:
Club
Bond
Rogel, Chas. A. Hinsch & Co., Inc.
r
-
You
from
certain
a
are:
President: Robert L.
:
tions.
these
to
v
■
&
Stock
;
children, and other deduc¬
asurer:
& Cn.
,
Bank Stocks
William P. Connors, Pohl &
Tbe Trustees for 1960
'
...
_
Lee
are
'
;
_
;
^
■
..
Our
of
;•r;
analysis of the 1959 year-end
outstanding banks is completed and
nashville security traders association
The fallowing
ciatvon
for
are
reports
/
cfficers of the Naihville Securi y Traders ASfo-
A
copy
will be
free
sent
of
now
a group
available.
upon request.
1960:
President:
Herbert
Vice-President:
Pettey, Equitable Securities Corporation.
Arning, Merrill Lynch, Pierre. Fenner
Robert
& Smith Incorporated.
'
.
Secretary-Treasurer: Edward G. Nelson, Clark, Landsfreet &
Kirkpatrick, Inc.
seattle
The
security traders association
Seattle Security Traders Association
for the year
I960.
President:
They
John I.
has elected
Rohde, John R. Lewis, Inc.
Central N. y.
T
...
•
Blyth SwCoJnc.
-
,
-
.
Gray, Hayden, Stone & Co.
;m
-
Coulter, Marine Midland Trust Co. of
,'m
.
•
..•
New YV
rk
Boston
•
i
Detroit
Pasadena
•
San Francisco
Philadelphia
-
m
Treasurer^—Marshall >W* Day, George D. B. Bonbrmht & Co.
Secretary: Russell Carlson, Onodaga County Savings Bank. <
small blocks at net prices.
v
\
^
'
-
Vice-President: Francis
or
prepared to
-y
Larry W. Sisson, Pacific Northwest Company.
President: Donald A.
r,'
sell in large
are
officers
new
following new officers have been elected by The Bond Club
of Syracuse:
or
actively in bank shares and
follows:
are as
bond club of syracuse
The
buy
; m
Vice-President: Paul G. Johnson, Blyih-& Co., Inc.
Treasurer: Robert Wight, Bank of California.
Secretary:
JVe deal
'
•
•
Minneapolis
•
•
San Diego
•
Chicago
Pittsburgh
•
•
Spokane
San
Jose
•
Los Angeles
Cleveland
•
•
►
Oakland
•
Fresno
•
Seattle
Louisville
•
•
Eureka
•
•
Palo Alto
Portland
•
Indianapolis
Sacramento
•
Oxnarp
175th
St.
16
1(768)
r.
j
,<
PUBLIC UTILITY
mission and the -Idaho Public jUtil- ; v :j f
'
4
*
,
.
Jties
,
rpTTTjl
for rate-making purposes." ;,
Washington Water Power has
been selling recently around 41,
and pays $2 to;yield about 4:9%. '"
0WEN ELY
BY
The
in
dividend
1958
tion is
Washington Water Power Company
Water Power is one
of the few large electric utilities
which uses hydro power, either
to
It
steam generating plants.
population
north
of about
central
and
eastern
in
Wash-
arrangements to
the
company
.
Idaho
from
purchase power,
to be able
of
add
.
merging
field
gas
by
Gas,
Spokane
Natural
which in 1956 had begun to
ply purchased natural gas to
sup-
over
loiooo
customers in Spokane and
surrounding suburban areas. The
also purchased gas dissystems
in
Lewiston,
Idaho and Clarkston, Washington
from Cascade Natural Gas Corpocompany
tribution
ration
August
on
15,000 customers
1958. Some
receiv•
29,
now
are
j^g gas
The
l^^perTwh
half
electric
company's
the
in'
national
kwh
3,366
The
out,
office.
ton.
8,214 kwh
a
e r
The increase in share
kw, and four in Idaho with some
222,000 kw. It has been construct-
1958 when there
in
1949
to
ings continued in each
back.
ling the big Noxon Rapids Hydro
was
However,
$2.66
about 400,000 kw, more than
doubling the company's own ca-
ings
since
The
an
of
American
since
Idaho Power Company
Other Sources:
Bonneville
17
Fund
Ad.
Inc.
issue
with
the
filed
was
Securities
Commission.
on
and
Subject
ket in the latter part of March
price of $20
a
construction
(per Share)
American
be
share.
per
Life
at
;
Fund
is
Inc.
to
closed-end,
a
diversified incompany with the ob-
23,000
__
104,000
.....
■
602,000
...
-
With the addition
the
2.29
.25
of
2.11
1.90
.06
.02
1.77
.12
167
52
V
XT
Production of power from Noxon
der its
m
1960, but of
purchased
the
other
applied
to
output of
buy
Chelan
the
plants
No.
1
of
Chelan
County
plants of
PUD No. 2. Priest
irJ?
commence
5
all
.
of
is ex-
operation
Wanapum
in
1964.
in
these projects
operation, the
for rate
Washington
some
$3
share: decisions
time
this
to
are
are
in
company's peaking
resources
attributable
contracts
will
be
these
to
approximately
262,000 kw.
ginning
use
expected
Water
will also continue
$400
of
folio
wor
of
January
1,
resuit net income in
invest-
with
invested
fire
life,
than
more
in,
and
the
casualty
stocks, the largest port-
insurance
stocks
in
the
*
'
de-
Edw. Crone Joins
deprecia-
purposes
1956.
1958
be-
As
was
A.
creased by about $355,000 and in
1957 by about $240,000. According
to
Inc.,
70
City,
as
is
stockholders, "This 'flow-through'
practice is followed by the com-
Pine
now
Street
asso-
department,
the
Com-
firm
For
a
limited time there
available.
If
you
are
are
some
rare
has
an-
was
M.
needs telling the years you are missing.
quoted.
A.
Write
Marks
&
Co.
from
Oc-
T,
serve
Bond
&
opened ra
South
L.
Share
Broad
BECK
management
Care of
Chronicle, 25 Park Place, New York 7, N. Y.
a
0
chum.
Telephone REctor 2-9570
office
has
123
Street,. under
the
Charles
Mr.. Dudichum
Dudi-
was
for-
merly-^associated" ^with. Delaware
when
summer
the
seasons
there
minor
argument
was
erage would finally find sup_
port. Technicians were able to
the
had
down
way
level,
and
the
to
600
rather
one
pro-
^hnced one around 580-590.
But th/fe wert\ divergent
how potent they
WC)Uid be in the face of the
erosion seen through
still
are
a
an u a r y and so far this
month-
good piece above
>
.
.
-
the November low. The
utilitv
The newish occupation was
L
:
^ 7^
^,
akin to that of the picking out issues, long-negindustrials, except that the lected and obviously not over-
i
.
story
1959
low
•
.
.
.
is
has
alreadv
been
priced, where yields of 5%
or
which leaves t h a t ™re Rut them in a position
f^eraSe, at a low_ Tor more to compete with the bonds
than 14 months.
/
*
There
yielding around the
*
wasn't
*
were some mitigating
real and some
factors,
some
fancied. Tales of
large boost in
a
prospective
the short intpr
..
..
a
same.
It
difficult chore with
®ucb quality items
as Socony,
Rock Island, Union Pacific
a
American Can offering
from 5 to almost 53/i%. But
^ Vf
these haven't heen nnnnlar for
?st
°Tt a 1 were circulating;in<:se naven 1 ceen popular tor
freely. It would be a construe- a f°ng time and, at least as
tive sign since the market ^ar as their recent actions sugusually makes a turn when ^est, the suggestions weren't
this interest is'either
exces- kinchmg any new interest in
sive, or negligible.
them. They were, however,
T
,
.
distinguished to a degree in
.
Xg wS^und
pri'ces
w h at
^asnA ^r§en.t • and
from
rp
la
rap
more
than
EWL-
+•
^
American
>«icixccni
•
nf
lactr-u
a
,.
atld
lows for the
=:
There
has
11 a a
,.a.
I
or-less
Lt
tinued
in
,
PoTarde l^rv
s
selling.
declined
f'rSt
t
no
In
in
favorablp
a
fulfill-
billion-dold
move' 01 are very far profit for any year scored
in 1959. it was oniy the secmove
were
much
eluding
qpllino-
V +Se.fng'
L
characteristlC role as
Chart one of the leading defensive
t!?at many key issues in the list. It was also
fact
the'
any
domestic
nudged
mark,
the
com-
profit
P
1
Unfavorable Auto News
iW' •'
m
to
former, one
being General Motors in 1955.
face
nmuc
,
that
had
the
spate' of stocM irAft*
balSL
time
startling pany
developments on which
to rest the blame for
the conmarket
steadv
g
year.
.
news
of
Telephone
± tuopiiont:
.
sessions
,
Ke
hst.
&
quidation. been a favorite throughout
llDmoyer was still hov- the month and a half of more-
l
f
*Distribittors,".'lnci-.r■■, .that
"
and
The
19f was posted- in
Pa.-Plymouth
at
of
peaks
new
cull out resistance levels all
November. So far they have
given ground grudgingly and
t0 lb
Corporation
branch
the market went
ovSSdSl™
ond
your
case
during views 01
•,
PHILADELPHIA,
clients. It pays!
EDWIN
1
the Steel strike and their low
Share Branch
your
And
as
dreary. They
been the weak section
ksjih
.
Plymouth Bond &
Prices will be gladly
Be prepared with complete sets to better
month.
i
.
..
Chronicle bound sets
interested^—do not delay.
this
The pattern in the rails isn't
tober, 1942 through June, 1959.
OPPORTUNITY.
earlier
in
1922,
to
before that. And
years
gave
quite
Mr.
career
several
strug-
a
Crone, who began
ai
municipal bonds in ering at a level that is subpreviously with Lau- normal compared to the hmv
nounced.
his
advices from the
rence
YOUR
area
Co., crumbled rather easily
^ork from lack of demand
New
of its syndicate
manager
time
a
were oracles who insisted it
posted in September wouldn t happen once more. '
dated with Henry G. Wells &
footnote in the 1958 report to
Washington Public Service
Crone
making at
business
spring
Rails Less Dreary
Henry Wells & Co.
a
in-
Edward
a
Securities
open-end
an
million
insurance
a
some
Power
liberalized
pany pursuant to
The company
530
Se-
Insurance
Fund,
shares
in
totalling
about
ad-
Insurance
spring.
Washington
cided
Idaho
or
Incorpo-
present executive direction
ment .company
company
increases
and
million
Trust
rather ' hot
bear market
in- violated)
investment
as
Fund.
—managed
power
partial offset,
a
®^er? .on ln tion for income tax
1960; Rocky Reach
of
Securities
act
to the
com-
a
as
generally is
going good. Those who favor
the; bright view ' make the
point that the market's record
in anticipating a business
downturn is only so-so. This'
bullish element not only
points-to the hesitancy and
dreary action of the market
at this time a year ago, but
also in the winter periods of
on
.
years-andCsinPc°erAus l^igse'un-
the
companies,
Moreover, last June the
Wanapum
and
jS
Rocky
also of the Priest
and
County
1959 and
and
course
amount
from
from Bonneville. It has
contracts
will
WiththeNoxon Project cornP>eted "?e 1"'eAre®t fredlt wl11 fal1
affording at least
long-term
portions of the
Insurance
rated
portfolio
se'ected
stocks
surancc
„
has discontinued the purchase of firm power
company
investment
an
visor
--will reduce
-
the Noxon
of
.69
sharply
-
Total System Load
2.44
.<
not
or
the
when
under in each
been
'
A
jective of achieving capital gains
through long term appreciation
28,000
__
has
down this week,
covering
1952
-T
..
Power
it
virtually without
614
1955.
1954—____
zz,uU0
__
Idaho Power Company
Montana Power Co.
When
Feb.
the
of
gle when the index reached
1956
_
Grant
Life
proposed
vestment
.
talk
who'n'u, r"; Yas ,n°, °f
statement
Exchange
int. cr. on
'
57,000
that
stock
share
1957
of Chelan
1
for a
Inevitably
running
-was
market, the
The low in the selling in- arrived. And each time
up
1953——
D No.
Rapids
the
the
368,000
County
was
in
the
as
sPired by the steel strike last
as
registration
somewhat
when
act
strong
a
that mark.
.
Boston.
Boston Corporation
is
managing underwriter
offering of 1,250,000 shares
of
Earnings
Long Term Contracts:
PUD
of
First
except
earnings
1952
follows:
Reach
..
for
earn-
first distributed to the public:
was
paeity. The company's peak load
in 1959 was 602,000 kw, taken care
Plant
-
Fund Issue
slight set-
a
1955 have been favored
ate
P U
much
an
as
years
.
emeLea°ther CompTny
Project since 1955, the first gen- by
the inclusion
of
increasing
erator going in last summer
and/credits for interest on constructhe fourth scheduled for operation
tion, resulting from the big Noxon
early in 1960. Noxon will gener- project. Following are the earn-
____
many
.
to
year
gloom to
boardrooms
rally.
sentiment
whether
is
o n
*
o w e
1959.
(net)
Lieweiiyn-Hubbard
T
a good show^ in the pagt decade increasing
t i
base is built up
a
as¬
for
...
earnings have made
IT
S
for the U. S.
company
Co. Generation
was
sociated
Street
■
ago
Bos¬
Mr. Hub¬
bard
-
average breaking below 600.
If it does, it will be the first
time since
February a year
Investment
of
Feb. 8.
a c
even more
Wall
there
National
Trust
brought
The
>•
Underwriter
of
unfavorable
substantial
corporation ;is
the
on
*
This
Street
average scrambled
support level debate
reached
around 616 but this
$1.02
as
the
Home
have SeneratinS capacity of
from
of
of
Boston
industrial
was
before
working
First Boston to ;.
^,000 kw and ultimately 1,750,Life
Washington W
t
P
r's Head Amer.
Resi-
average
average
service
force
tempo a bit more ac-
the
year was
has
six
hydro
plants in the state of Washington
with capability of about 132,000
,
the
^
on
"floor".usually means that
the selling has further to go
rates
1958™fesf than would
dential usage averaged
dealer
gather with Montana Power, PortJ?nc* General Electric and Pacific
Power < 8i Light, has organized
Northwest Power Co.,
^hich has applied to the FPC tor
permission to build the $178 mil^lon. high Mountain Sheep hydro
project. According^ to Standard &
Poors, .the project wilL probably
he financed with 80% to 85%
debt and the balance in common
stock. Participating companies
would each own 25% of the stock,
but Washington Water Power
also
company
natural
the
entered
the
1958
to
■
issues
since the absence of
representa tive.
He will
'
assorted quality have been certain to call for
erupted again in this market enthusiasm.
week's stock markets - and f
v
Pressure
the
a
mining (lead, zinc and under adverse water conditions,
silver), lumbering, aluminum, etc.
In J addition the company, to-
.■;
■...
^
raced below the
as
'
1
-
,
tive,
Llewellyn
H. Hubbard
farming,
In June
1
.
that
expects
BY WALLACE STREETE
<
with the
BOSTON, Mass.—Ralph S. Henry,
Pres., -Trust Securities Corpora¬
tion, 80 Federal St., announces the
appointment
,
principal city served, to supply substantially all its firm
in the area is largely requirements through 1964 even
Industry
-
With Trust Sees.
the
is
propor-
,
Company. Thus with Noxon added
ington, and northern Idaho. Spokane
kw
the
1959
for
tentatively fixed at 50.25%.
L. Hubbard
to Cabinet Gorge and its other
plants together with these various
serves
530,0UU
22,000
but
V,
tax-free
89%
was
-
Power, and in the year ending
September 1, 1960 is buying 73,000 kw from Montana Power
generated or purchased, for its
entire
output, with no standby
a
buy
t1
JL JL1.XJ
which indicate i
Commission
that this practice is'recognized by
them
Washington
Financial Chronicle .//--Thursday, February 18, 1960
The Commercial and
y.
^
ffer€d from indicabl.ons that production was
'i!
days?*would[ 'being
back>m-Spots^and
1
j
j.^,1
>yr<-+ 'trmMrnym
Volume
191
Number 5926
from expectations
such
.
.
more empt from taxes
coming attraction.
be
along soon. Here again the
point is made that "jitters
early in the year is an annual
phenomenon in aufo circles,
"
iwww *
...
1 v.itiLk,
The Commercial and Financial Chronicle
that
would
news
.
, .wvn*sw.iw ot^w^whwlwmvwww»iw»«»llw>l>«i|iti(mm1m»fwv«l'lll"«y.,
as an
to
added
lift
(769) " 17
profits
times
over
one
the
and
a
half
previous
period. This, and resumption
of dividends after a decade,
have suggest that Armour has fi¬
Meat Packers Act Better
parent company, joined Talcott in
Talcott Enters
1954.
He is a specialist in the fi¬
nancing of the sale and leasing of
income-producing equipment of
all types.
Before this assignment,
Leasing Field
James
Talcott, Inc. has announced Mr. Duncan was in charge of Talpacking shares
its entry into the field of equip¬
cott's
commercial
instalment fi¬
the better-acting nally turned something of a ment
leasing, through th£ forma¬ nancing department.
and, in any event, the com¬ ones on occasion without ever corner after a trying period.
tion of a wholly owned subsidi¬
pact cars are hitting it off big showing anything like the ex¬
ary, Talcott Leasing Corporation,
[The vieivs expressed in this article
Albert G. Woglom
with offices at 229 Park Avenue,
with the customers. Also, in uberance that switched in
do not necessarily at any time coin¬
Albert G.
turn from such groups as the cide with those of the "Chronicle*'■ South, New York.
Woglom, head of the
trying to fill, up the inventory
The company will operate by
pipelines depleted by the long aircrafts to the uraniums and They are presented as those of the purchasing new heavy industrial trading department for Clayton
author only.]
steel strike, production was lately the electronics. Their
and
commercial
equipment and Securities Corporation of Boston,
leasing
it
directly
to
business passed away on Feb. 2.
boosted beyond any reason¬ last fling, and short-lived, was
With Shearson, Hammill
concerns.
able expectation of a "nor¬ when price controls were
(Special to The Financial Chronicle)
James
Talcott, Chairman, and
mal" rate. Some arithmeti¬ lifted from meat after War II. SAN DIEGO, Calif.
With Mason, Garlington
John D. Herbert R.
Meat
been among
—
MacLachlan
Yet
they have been making
progress. Armour, for one, has
nual rate of as much as nine been diversifying busily. In
million cars when even the its last fiscal year it was also'
highest industry projections able, on a small sales increase,
for the full year called for
cians-figured that the high
production level ran at an an¬
Jr.,
has
become
as¬
sociated, with Shearson, Mammill
& Co., Mr. MacLachlan was form¬
with H. C. Hudgins & Co.
Woolrych, Currier & Carlsen,
erly
and
of
Silverman, President
Inc., said that
subsidiary's operations will
James
the
be
headed
John
by
its
ATLANTA, Ga.—James L. Steenhuis,
Vice-President,
Mr.
Duncan.
Duncan,
Vice-President
Assistant
Inc.
(Special to The Financial Chronicle)
Talcott,
of
Jr.,
is
now
the
3272
Peachtree
sales of 6V2 to 7 million.
But
despite the debates, the
of
mood
take the
market
the
,
to
was
pessimistic view; as
Motors, where a
in American
-
.
couple of services sell-recom¬
mendations happened to coin¬
cide, handle the stock rough¬
ly. Ford was also a bit more
heavy on occasion than the
others although it has built
up its compact car volume to
where it has upped producsecond
line,
and. added
schedules
tion
-
There's
profit for
a
•
you
a
compact model to its
action that belies any
an
reservations
management
in
about the boom.
Emphasis
The hunt for
uations
at
was
a
us
promising sit¬
very low ebb
culled out
and those
good earnings for
the Defensive p'
on
were
of
the
historically defensive
type. Colgate-Palmolive, for
instance, is one that normally
fights against market down¬
and
turns
An. important
built
that has
one
up its foreign business im->
portantly which would be a
prop in case of a domestic ;
slowdown
in
In
boom.
the
fact, on the same foreign sales
as
domestic, Colgate already
figured at making only one-_
third of its profit at home and
two-thirds a b roa d. Selling
around
12-times
anticipated
earnings is the
telephone
"■ {
!
:
can
they yield
*
user.
r
;
point about good telephone
way
-A
....
,-r..::
,
'
profit to-the
a
v.
";
■ ■ r
'«r
■
...
It is only through good earnings that we
do the research and the
long-pull plan¬
is
1959
sidered at
vv'." ?
for
or
more
with
issues
is the ;
growth
*
Utilities,
a
defensive group
some
normally, also came in for at¬
tention including Niagara Mo¬
hawk
which
Power
been in any great
a
series
of
of its
in
a
earnings
covery
1956.
was
the next
as
in
every¬
our
own
increases in cost
econ-.
.
NEW
that
Without
profits
a
The
modest
year
ice
to pare
1956
for
was
.
had not been able to absorb
operation.
destruction
in
both
1957. There
we
part of "
omies in
plant at Niagara Falls
rockslide
...
favor since
near
cumulative effect
v
through technological advances and
hasn't
reverses
started with
•
price of telephone, service just
greater if
❖
*
'
thing else. But they would have been far
appeal.
i
7*
r' v;
service and keep
for it.
Sure,-there; have been -increases in the
reasonable level
a
your
down the price you pay
profits, the issue is: con¬
when 20-times
rule
ning, that improve
,
you
adequate telephone
you'd like. And the chances
more
brand than you now pay for
re¬
and the
company
wouldn't have the kind of
good you'd -be paying
and
will
for
serv¬
AND
an
inferior
phone service in the whole world.
1
the
breakthrough.
SERVICES for telephone users
can
ony,
for example.
kind that
can
business with
only be undertaken by
good earnings
in position final¬
that has been
BELL
it
won a
promised since
rate hike
right before
the. strike. The issue offers a
return in the
a
5% bracket with
portion of the dividend ex-
„
TELEPHONE
The Transistor has been
possible by basic physical research of the
block the antici¬
ly to make the sharp upturn
major scientific
amplify electric signals up to 100,000
pated improvement. It leaves
the company
a
This mighty mite of electronics,
steel strike cut into operations
last year to
Telephone Laboratories
Transistor,
times, will play a big part in pushbutton teleph¬
made
the best tele¬
of
invention
which
are rvery
BETTER
from the Bell
come
SYSTEM
connected with
Mason, Garlington & Wilcox Co.,
an
over
,
a
progressive
the long pull.
Road,
Northeast.
18
National
can
NEWS ABOUT
tal
BANKS AND BANKERS
ber
from $2,500,000
Effective Feb. 3.
of
New Offices, etc.
•
value
to $3,(Num¬
shares
outstanding 30,000,
value $100.)
par
*
*
Thursday, February 18, 1960
.
the
420,000
of
sale
Feb.
*
:|e
.
\
its
The
com¬
John E. Bierwirth, was appointed
Director
a
of
of
The
New
meeting,
National
York
at
City
the Board
Feb.
Roebling, President
Chairman
and
of
the
Trenton Trust Co.,
has
16.
W.
Bowers
of
election
Vice-President.
joined
of
Executive
as
Bier¬
wirth
Board
elevated to the post
Mr.
Bowers
was
following the
meeting
of
the'
National
reorganization
Distillers
as
President
in
Board when the post was created.
He
has
served
as
Senior Vice-
President
1.949 following
nine
years
Mrs A
as
of
President
Elmer
He be¬
L.
vated
came
Chair-
dent
a
also
has
an¬
promotions.
Assistant
Vice-Presi¬
Vice-President; and E.
Leonard, head of Time
National
Sales, from Assistant Treasurer to
Distillers in
Assistant Vice-President. John A.
John E. Bierwirth
Green,
also
with
Bell
serves
as
Director
a
Aircraft
elected
and
Corporation,
Company, Inc.,
Dominick
Fund,
Inc.,
OwensCorning
Fiberglas
Corporation,
Panhandle
Eastern
Pipe
Line
Company,
Hugoton
Production
Company,
Colgate-Palmolive
Company and Bridgeport Brass
Company. He is a trustee of the
Hospital
of
New
Presbyterian
York and
in
a
Director of the Green-
charge
Loan at the Main
Stores
Mercantile
Real
Estate
sistant
By
Office, has been
Department,
an
As¬
Secretary.
*
*
increased
stock
its
from
Effective
shares
value
$100,000
Feb.
Lindheim
sfs
At
meeting
a
Senior
been
Cashier and Robert
Hutchinson
and
Trust
Co.,
increased
Hexter, Vice-
Dunckel,
the
Feb.
Senior
Wallis B.
Vice-President,
elected.. President
was
of
Board
16,
$700,000
Feb.
Di¬
and
rector of Bankers Trust Company,
New
York,
succeeding Alex H.
who
was
elected
Vice
Ardrey
Chairman
of
the
of
nouncement
Board.
An¬
election
the
was
made by
William H. Moore, Chair¬
the Board, who remains as
of
man
executive head of the Bank.
Mr.
with
Dunckel
Bankers
became
Trust
1923.
He
had
extended
experience
stock dividend,
capital stock
a
common
$2,000,000 to $2,400,000. Ef¬
fective Feb. 3. (Number of shares
outstanding
240,000,
par
value
$io.)
-vVxl'Va*
By
*
*
stock dividend, the American
a
National Bank of Vincennes, Ind.,
increased its
capital stock
common
from
$600,000 to $750,000. Effec¬
2.
(Number of shares
outstanding 15,000, par value $50.)
Feb.
#
has
*
*
The
District
National Bank, Chi¬
bond, investment, foreign and
trust phases of the Bank, and for
the past several years has been in
charge of the internal adminis¬
Sullivan Executive Vice-President
tration
Murphy
of
an
the
institution. He be¬
officer
President in
in
1939,
1944, and
member
of the Bank's Senior
Management
in
was
1957-
when
he
elected
Administrative Vice-President. In
October
he
1959
became
Senior
Ardrey
Company
Trust
dent
in
1930
joined
as
Bankers
Vice-Presi¬
a
and
named
was
Executive Vice-President in
a
he held
post
he
was
been
until
1948,
when
1956
elected President. He has
Director of the Bank since
a
*
*
*
*
York,
Trust
Co.,
increased
its
common
capital
$1,600,000 to $2,000,000.
stock from
Effective
value
Feb.
1.
Judge John A. Mullen
as a
of
Direc¬
*
*
100,000,
*
*
Vernon, 111., by
increased
stock
its
from
Effective
stock
the
Foley
stock dividend,
capital
a
common
$250,000
Feb.
Eastern
National
*
*
Bank
of
By
a
(Number
capital
stock
800,000
to
Feb.
(Number
4.
*
By the sale of
National
from
$3,500,000.
standing 175,000,
tive
its
shares
par
value
*
of
$2,out¬
$20.)
*
stock, the First
New
Milford,
Conn., increased its common capi¬
tal stock from
$250,000 to $400,000.
Effective
Feb.
3.
(Number
of
from
■
By
a
Bank
from
C.
of
Luce,
*
Feb.
5.
By
was
elected
a
Fidelity Union
Trust Company of Newark, N. J.
value $25.)
par
*
*
tional
Bank
of
increased its
West
Bend, Wis.,
capital stock
from $200,000 to $400,000. Effec¬
tive Feb. 5.
(Number of shares
outstanding 20,000, par value $20.)
*
roe,
*
*
St. Louis,
Company,
announced
by David
Calhoun, Jr., President.
was
*
*
its
common
$150,000 to
Feb.
3.
*
a
%
par
of
Effec¬
shares
value $25.)
*
stock dividend, the
$300,000
stock
Effective
$500,000.
to
from
2.
(Number of shares out¬
standing 5,000 par value $100.)
divi¬
stock
a
dend, increased its common stock
capital from $400,000 to $500,000.
Feb.
5.
$
The
(Number
outstanding
$25.)
Board
Bank
par
of
The
California, N. A., San
Francisco, Calif., has voted to call
shareholders'
a
meeting,
be
to
of common
capital stock. The
charter
of
issue
be
title The
Bank,
Feb.
The
Tootle
Joseph,
National
Mo.,
and
new
Tootle-Enright National
St.
Joseph,
Mo.,
effective
1.
*
of
the
National
Bank
of
Albany Park
in Chicago, 111., has
been elected President of Mercan¬
National
Miami
of
Bank
Beach, Florida, succeeding
G.
ard
Leon¬
Miller, who resigned last
Board
Chairman
Joseph
June,
Weintraub
announced.
stock dividend, the Citizens
Bank of St
Petersburg,
its
common
Florida,
increased
By
a
National
.
capital
stock
from
$600,000
to
$675,000, and by the sale of new
from
stock,
Effective
to $825,000.
(Number
of
$675,000
Feb.
2.
outstanding
value $10.)
82,500,
par
The National Bank of Commerce,
Miami, Florida
sued
Feb. 3, was is¬
The President is
on
charter.
a
L. A. Usina, the Cashier is Roland
M. Stafford. The bank has capital
$450,000 and
surplus of $326,-
a
250.
*
*
*
The Ouachita National Bank in
one
In
Finance
(Number of shares
Election
as
par
of
C.
National
Norman
Bank
of
announced
was
Ramsey,
of
Republic
Dallas,
by Fred
Texas,
F.
Flor¬
Chairman, Executive Com¬
mittee,
and
James
W.
Aston,
President
of
the
From 1929
to
bank.
1949, Mr. Ramsey
was
with the Citizens and
ern
National
He
was
a
South¬
Bank,
Atlanta, Ga.
Vice-President of that
before
become
a
resigning in 1949 to
Vice-President with the
Birmingham Trust National Bank.
t-
By
a
stock
National
its
from
~
of
Feb.
the
Tulia,
common
$100,000
5.
of
be
each
five
price to share¬
determined
later
to
First
1957
shareholders
$200,000.
of
(Number,
D.
Board
which
Murphy
as
are
held
par
approved
split, result¬
value of $10.00 per
time there
1,284,650 shares outstanding,
by | approximately
3,500
shareholders.
of
of
the
wholly
are
Morgan
& Co., Inc. It is
contemplated that
immediately after the sharehold¬
ers' meeting of March
29, trans¬
ferable subscription warrants ex¬
ercisable at any time
on
or
Guaranty
holders of record March 29.
The
proposed increase of The Bank of
California's
capital stock is, of
course, subject to approval by the
Comptroller of the Currency.
'
Rogers W. K i
President
Bank
*
b
m
and
*
■■■
:A, : AAA
1 i
e r
g, Vice-
n
Manager
of
The
of
California's
Portland
Oregon Office, died on Feb. 12 at
the age
of 52.
After spending several
years in
banking in Eugene, Ore., he joined
the staff of The Bank of
Califor¬
as
Assistant Vice-President on
1949, at the Bank's Head
1,
is
also
subsidiary
have
the
office
London
&
quarters,
The
Cashier
on
Aug.
assumed the posi¬
and Man¬
Vice-President
*
Crocker
on
*
-
May 1, 1954.
*
Anglo
Bank,
San Francisco,
appointed
Walter H.
Vice-President
and
National
California,
Van
trust
Cott
officer
at the Bank's main
office in Santa
Barbara, succeeding Charles H.
Franklin, who is retiring. Edwin
H. Ewig was also
appointed VicePresident
and
Beach, Calif.
*
By
-
the
Central
Oakland,
*
sale' of
Valley
*
hew
stock
National
He
which
operate
15
tire
in
" A'
•
Bank
new
Montreal
in
Limited
its
of
be¬
head¬
new
House,"
on
at
Nassau, B.- W. I.
the new building, the
Caribbean
LAM
*
.
the
"BOLAM
will
operation
be
en¬
of
BO¬
administered,
and
Bank's Nassau branch is
the
also
accommodated.
BOLAM
formed in
was
October,
1958, and is jointly owned by the
Bank
of
ited.
The
Montreal
and the Bank
of London & South America Lim¬
branches
Bank
in
has
now
20
tHe
Bahamas, Ja¬
maica, Colombia, Ecuador, El Sal¬
vador, Guatemala, Honduras, Ni¬
and Venezuela.
caragua
be
office
at
*
At
the
Directors
chiro
*
of
V>"
the
The
Tokyo,
year.
*
meeting of
Limited,
in
Board
Mitsui
Japan,
Satoh, President,
Chairman
succeeded
A Trini¬
Port-of-Spain is to
later this
opened
of
the
the
Bank
Mr.
was
of
Kii-
elect¬
Board
and
office
by Mr.
Masuo Yanagi, Deputy President.
Simultaneously, Mr. Kizo Yasui,
Senior
Managing Director, suc¬
Mr.
Yanagi
as
Deputy
ceeded
President.
Cars Rental Syst.
Stock Offered
Jerry Thomas & Co., of Palm
Beach, Fla., is presently offering
100,000 shares of common stock
(par $1) of Cars Rental System,
Inc. at
price of $3 per share.
a
Milwaukee Bond
Club Meeting
MILWAUKEE,' Wis!
26
ager of that office
to
*
■'
of
operations
gan
Vice-PPresident
of
formed
A'A./.'-A"*.;
Head
December, 1952. His transfer Hotel. At
Portland
(Oregon) Office as directors
occurred
in¬
foreign field.
•".r
to
Vice-President
1, 1953, and he
Guaranty
corporations,
been
waukee
and
Morgan
Vice-President of the two
Office in San Francisco.
In 1950
was
advanced to Cashier and
he
tion
of
before
April 19, will be mailed to share¬
*
com¬
owned
Company, heading its
ternational banking division.
ed
Unsubscribed
shares
will
be
distributed by a syndicate of un¬
derwriters to be formed by Blyth
Direc¬
Trust Company of New York.
Mr. DuBois is a Senior
Vice-
stock
At the present
Texas,
capital
Robert
the
panies,
dad
Manager of the
Bank's planned
branch in Pebble
*
dividend,
Bank
increased
Effective
*•
The
will
a
to
Vice-President
a
value $20.)
*
*
vA
*
,
Corporation has been an¬
by H. P. Davison, Chair¬
of
man
in
$1,250,000 to $1,500,000. Ef¬
♦
held.
for
ing in
Jan.
outstanding 75,000,
share
new
share.
increased its
capital stock
share¬
at the close
that date in the ratio
two-for-one
a
nia
from
on
to
new
by the Bank's Directors.
Monroe, La., by a stock dividend,
common
offered
of record
business
of
256,930 additional shares
will
holders
■
Seltzer,, one of the or¬
ganizers and until recently Presi¬
dent
of
holders
shares
* v
Samuel L.
.
Morgan
From
Directors
of
Mo.,
St.
of
nounced
$
Joseph,
Bank,
'•*
Guaranty Inter¬
national Banking Corporation
and
Morgan
Guaranty
International
held March 29, to approve the is¬
under
*
of
General Man¬
4..
,
.
:
Feb.
&
of
of
20,000
suance
stock
Ameri¬
capital
and The Tootle National Bank, St.
consolidated
.
❖
Empire Trust Co., St. Joseph, Mo.,
capital stock
$250,000.
(Number
ager.
Trust
*
,
Assistant to the
President
now
President
sonal trust department of St. Louis
Trust
til
has been appointed
of Cheyenne, Wyoming, increased
common
Canada,
business)
its
Effective
in the per¬
of
1955, has been appointed
Manager (non-domestic
business.) W. E. McLaughlin, un¬
subsidiaries
*
*
value
it
outstanding 2,099,-
The Stock Growers National Bank
shares
bank
of Mon¬
Wis., by a stock dividend, in¬
outstanding 10,000
By
*
shares
of
value $25.)
par
common
The First National Bank
shares
(Num¬
1.
825, par value $5.)
by
(Number
Sf!
stock dividend, the First Na¬
of
Feb.
common
ence,
a
tive
%
(Number of shares
ber
assistant trust Officer
Wis.,
capital stock
Effective
499,125.
❖
❖
*
capi¬
dividend, The First National Bank in Bill¬
$300,000. Effec¬ ings, Montana,
to
fective Feb. 3.
Waukesha,
outstanding 65,000,
the
of
common
fective Feb. 2.
from
Donald
*
$1,500,000 to $1,625,000. Ef¬
$50.)
Director
value $50.)
par
*
stock dividend, the First Na¬
creased
*
^
Effec¬
shares
Arizona, increased its
capital stock by a stock
Phoenix,
Joseph P. Dee has been appointed
of
$300,000.
(Number of
2.
of
Bank
stock
a
$200,000
tive
capital stock
common
outstanding 6,000,
shares outstanding 8,000, par value
*
par
*
$150,000 to
Feb.
tional
Effective
of
new
Bank
*
25,000,
stock dividend, the First Na¬
Bank of Hinsdale, 111., in¬
increased its
*
By a stock dividend, the FirstCity
National
Bank
of
Binghamton, New York, increased its
common
$500,000.
of
to
3.
National
Valley
Feb.
of McAlester,
shares
*
Vice-President
Long Island, Smithtown, N. Y.
Bank
by
tional
from
*
Carl B. Lundquist has been elected
Executive
Vice - President
and
Alexander
of
par
The First National Bank of Mount
creased
tor.
of
(Number
outstanding
$20.)
New
election
the
announced
P.
National
*
Underwriters
E.
stock dividend, the Exchange
Bank
of
Chicago, 111.,
a
*
Director.
a
outstanding
value $20.)
*
*
$10.)
*
shares
1948.
John
Michael
and
elected
was
'
By
elected
Director
a
shares
Vice-President.
Mr.
and
Vice-
a
a
Illinois,
cago,
capital
'
value
par
Okla., increased its
tal
tile
in
the
came
common
80,000,
The National
R.
from
tive
associated
in
Hutchinson, Kan.,
its
standing
Mo.,
ville, Indiana, by
Bank
to
$800,000.
Effective
(Number of shares out¬
4.
Union
increased its
National
from
$600,000 to $700,000
by the sale of new stock from
Cleveland, Ohio.
*
The
$10.)
*
Bank
and J. Delafield DuBois
*
$2-
General
tors
common
stock
and
President of the Continental Bank,
*
par
*
:!:
■'
#■
*
elected
Vice-President, Mark S.
Vice-P resident
and
Conser,
2,500,
of
value $20.)
par
A '..A
*
Royal
Election
dividend, from $8,399,300 to $10,-
The
*
of
held
'
$250,000.
(Number
outstanding
$100.)
outstanding 12,000,
*
has
capital
to
1.
from
par value
*
since
common
$200,000 to
$300,000. Effective Feb. 5. (Num¬
ber of shares outstanding 15,000
stock
capital
common
its
increased
Mexico
sis
stock dividend, the First Na¬
tional Bank in Worthington, Minn.,
*
Leon
'
■
a
The Old National Bank in Evans-
Directors
sis
'
Installment
Treasurer,
Schellinger, of the
*
*
of
Assistant
an
Richard
Wood Cemetary.
*
*
>
*
1958.
He
value $100.)
par
years.
Carty, head of the In¬
Loan Depart, was ele¬
from
to
William
of
n
past six
Roebling
stallment
Com¬
pany.
m
the
nounced several other
the New York
Trust
for
3,500,
Trenton, N. J.,
the
announced
Alan
Mr.
,
Mrs. Mary G.
from
Montreal, Canada, announces
the
following executive appointments
A.
F. Mayne, Associate
General
Manager (non-domestic
capital stock from $200,000
By a stock dividend, the Fifth
$300,000.
Effective Feb. 4.
Northwestern
National
Bank
of
(Number of shares outstanding
Minneapolis, Minn., increased its 30,000 par value $10.)
common capital stock from $150,A."/.,,.-, ;,AAV ' *,
*
000 to $350,000. Effective Feb. 3.
By a stock dividend, the First
(Number of shares outstanding National Bank of Ilobbs,
New
mon
^
Bank
3.
of Las Cruces,
increased
Mexico,
stock
to
$2,904,000.
Effective
(Number of shares out¬
standing 290,400
the
stock,
new
First National Bank
New
capital
common
par
$20.)
*
By
10,000
outstanding
shares
capi¬
.
.
to
Revised Capitalizations
•
Paul,
St.
common
stock
*
New Branches
•
of
Bank
Minn., increased its
000,000.
Consolidations
Chronicle
The Commercial and Financial
(770)
'the
Bank,
California, increased
its
annual
at
Bond
the
coming
—
Club
meeting
The Mil¬
will
its
hold
dinner Feb.
Knickerbocker
and
Kaiser
the meeting officers
will be elected for
and
the
year.
Now Jas. O'Reilly Co.
JACKSONVILLE, Fla.—James H.
O'Reilly is
investment
firm
name
now
of
James
Co., from offices
Bank
conducting
business
in
his
the
under
H.
O'Reilly
the
Barnett
Building.
B. C.
Christopher Adds
(Special to The Financial Chronicle)
ST.
LOUIS,
Mo. —George
F.
Barhorst,
Robert
J.
Callahan,
Robert
B.
Eccardt, William N.
Gustafson, Douglas E. Hermon
and
Elizabeth
J.'
Shields
have
joined the staff of B. C. Christo¬
pher & Co., Security Building.
"
1
•
1''
<•"
->rl
j
\
Volume
191
u;.
:
•
,
*f
r
Number 5926
.
.
•
Lie
,
,
u
.
*
,
*
,
•
•
•
«•
Jtn
*
.
•-•' "m-nm?*mrr»:^'gy"«'V^rr.nTr?-sy;^-r iW«.w«i.i>w,t»wg.
,'
•
.
The Commercial and Financial Chronicle
.
(771)
19
\
which
Some Observations
on
I know of
into
us and offers a reassuring bird's eye view of our funda¬
mental, winning strengths. Implacable external Communist conspiracies
our
law
The
minds
cans
of
today
thoughtful
greatly
are
ill-befits
these
Ameri-
troubled,
times
it needs to be
>
I
lunch
quips
have
and
It
to
entertain
with
the
'humor.
is
I
bluntly
speak
have
as
that
lived
seen
a
nation
rally, exert
surmount dangers
those which beset us
our
great
as
and
and
try to give
you
some
nessed the
two
of the
surance
45
We
six
of
Herbert
dangerous
Hoover
pie
have in the Communist
tions
enemies,
implacable
determination
na¬
them
that
fol-
During
in
millions of peoimplacable enemy —
were
our
Communist
whose
.
_
.
And
despite their disguises of peaceful cooperation—is
to
famines
from
years
among
crises.
We
compas-
world
sary
in
are
midst
gigantic
the
we provided the necesmargins
of
food,
medical
care
and clothing to 1,400,000,000
human beings—who would otherwise have perished. And included
of
America.
the
saved
lowed the two great wars.
fundamental
strengths
outpouring of
sion which
as¬
Russia.
,,
,
these
in
we
have
festored healthy mmds and bodiea to ove.r, 16,000,000 children —
succeeding yho w9
d
d
P?
ine
and disease—or
And
they are
y>
very doorstep.
would
-
at
our
We
we
their
infppfinn
lniection
nf
oi
the
actions
of
of
our
and
people
our
own
govern-
ments.
We
in
are
of inflation,
crisis
a
steadily saps the earnings
and savings of our people.
We are in a crisis in our foreign
which
trade—in
trade
•
in
are
of
j
crisis
a
of the domi-
unions
labor
some
gigantic funds
by
their
elec-
the use of
to influence
and
We
slump
moral
in
increase
From
crimes.
of
the midst
in
are
creasing
as
an
major
1946
known
1957
to
in-
witness
the
increase in these crimes was three
times
than the increase
and in 1958 these
greater
population,
crimes increased over 9%.
of
12%
over
those
of age.
We
:
can
In 1958
arrested
these crimes were under
for
18 years
'
V::'
"
hardly believe that in-
tegrity and moral steadfastness
are
increasing when we witness
the daily exposure of municipal
corruption, the operation of some
even
radio
and
television
the
programs,
operation
of meat,
fuel oil and retail shops.
this half
dozen tribulations at great length
I
Marx
is
j
Doaiesmy
seen
jzati0ns
,
and
T
of years, I
voluntary organ-
span
our
the
virus.
More
faiths
end
of
purpose
of
the
murders,
is
realize
the
And
It
disguised
as-
infecti0n
to
+u
the
be
•
from
of
men;
evils
which
in
decline
no
But
we
have
i
have
need
J{je Job of the Pa^ents, the schools,
eiectric
*be Pre®s> a cessation of corruption
through our mass communications,
aPd
ia
30b of the religious denominations,
ut we cannot ignore the fact
* at with the growth of slums and
conSested areas in our cities a
new Prahlem has
cannot b? reac1h?f
These
school
force(j
and
to
waking
the
is
play
kids
and crime are
—
The remedy is by
not by
f:nn
a
ran
policeman.
nnlv
for
where
gangs
rornf>
their
hours
streets
here
which
arisen
by }h.fe
outside
are
and
air
teen-age
tives to life
manv
prevention
And prevenalterna-
the streets.
on
a?pnripq
working
to
power,"
"the
*An
"managed econstate," and
Feb.
have
we
—both
in
the
in
Marx and
before
our
preaching
dwell
could
—but
some
it
upon
is
happier
to convey
comfort to troubled minds
I have witnessed great discoveries from scientific r e s e a c h.
With
the
advance
of
medical
Karl
—the
fact that commerce and
dustry cannot be taken
the
13,
over
people
by the government
dictatorship and the de¬
of all independent
thought, including religions. They
Lazard
without
Edward
London,
have
Brothers
11
The
these
rating
The
perform a great
spiritual service to the American
people if they would tear away
can
Brothers
de
tain
National
Co., Ltd. and
Co., both of
merge as of April
the
Sales and
name
firm
its
will
continue
connection
Freres
of
Freres
&
York
New
Cie.
well
the
respect
telephone,
speaking
the
electric lamp, the
track, the radio
tube, the airplane,
sound
broadcast
atomic and
nuclear
power
from
future
strength
America,
of
I cannot say to you that
we
may
A major crisis I have mentioned
is the slump in morals. From the
pulpit
you
strive,
hourly
and
daily, to mend these evils.
But
the nation is in need of something
gone
after.
through
with
We
inevitable
three
have gone
great
before
crises
and
through the
depressions from these
inflations,
with
crises.
have
dozen
accompanying
through a
crises of corruption in govWe
gone
A
Company invested $2,941,487 in its continuing
improvements during the
$2,953,466 and
A copy
program
of capital
year, bringing total capital expenditures for plant
improvement in the past 10
But with all these evidences of
great representative government
in history. We have gone through
seven
wars, with series Of crises
before and after each one.
We
inflations
The
us.
the
indicated in the statistical highlights below,
ac-
be without fear.
have
a
Philadelphia and Reserve!, Louisiana. Sales totaled
as
net worth
years to
$19,481,042. Long-term debt
was
amounted to $38,542,873 at the year end.
of the Annual Report giving details of operations is available
upon request.
'
STATISTICAL
Word to the Clergy on the
Slump of National Morals
HIGHLIGHTS
*
1955
Net
$144,856,086
Earnings
Earnings
Dividends
Net Worth
(per share)
(per share)
$3.25
$2.50
$1,850,929
$33,542,928
1956
more.
It needs to awaken from apathy,
a great stir of conscience,
It needs
that certain evils
For
Net
Sales
instance
you
by
ernment.
that
our
today we still possess most
of the Bill of Rights, as handed
I
be
ended.
could
authorities
$172,071,752
$2,558,258
$3.86
$2.50
$37,306,076
1957
$187,673,950
$2,191,066
$3.30
$2.50
$37,838,097
1958
to
statistics
$194,381,199
$2,321,909
$3.50
$2.25
$38,666,866
1959
$189,043,546
$1,070,519
$1.61
$1.80
$38,542,873
THE
NATIONAL
prove
ery
Yet
Founding Fathers
We are well fed,
well clothed, fairly well housed;
and we have the right to kick
about any crisis.
■
This American way of life has
down
by
years
proved to
the
ago.
be pretty tough.
But
and
law enforcement machin-
has become deplorably weakened.
Something is terrifyingly
wrong
in our law enforcement
system when in 1958 there were
2,340,000
persons
arrested
for
major crimes, and only 88,780 of
them landed in state, and Federal
prisons.
elude
This number does not in-
our
county
and
city
jails
SUGAR
100 Wall
REFINING
COMPANY
Street, New York 5, N. Y.
MANUFACTURERS OF JACK FROST
•
QUAKER
•
GODCHAUX
•
Lazard
ARBUCKIE'S SUGAR
to
main¬
with
Lazard
and
Lazard
of Paris.
The Nationalhomemakers andCompany supplied almost 1,000,000 tons
Sugar Refining host of industries during 1959 from its
to
of sugar
of
Co., Ltd. (incorpo¬
Edward de Stein & Co.)
Earnings for 1959
refineries in New York,
&
&
Sugar Refining Reports
$189,043,546 and earnings,
recalling some of the great
strengths of America.
This republic is now 184 years
old.
It is older than any other
by
169
&
Stein
will
under
people."
The clergy
T
To Merge
in¬
from
amounted to $ 1,070,519.
can
all
1960.
struction
has been greatly extended.
We
exert
London Firms
the
exhibits of gov¬
ernment in one-third of the world
science, our youth are taller than
their fathers, and the span of life
complishments of Russian technicians. But let us not forget that
they obtained the telegraph, the
to
Mr. Hoover before the
higher education until today our
institutions of learning are turning out more instructed men and
rest
can
United Presbyterian
States, New York City,
names and events of our
the
With
of
United
history.
each year than
of the world combined,
us.
eyes
of
by
Council
Men in the
others,
Yet
address
National
welfare
ostentatiously
proclaimed
that "religion is the opiate of the
born.
from
"
omy
embedded in children's minds the
women
a
against
+u
the
system,
it
has
practically
abolished illiteracy; and it has
inspiring
from
fall in this nation.
billions of dollars
elementary
devotion
and
beset
institutions—devoted
witnessed
of
growth
our
motion, there
or
religious service, charity, education, and community welfare
increase by tens of thousands in
numbers and by
in support,
be
the strengths which God has given
our Nation.
crabs
•
j
strength
expanded?
come
these forces
sa„r
an +r?j)e+Sil
which crawl into such terms as
.el?r#;8
tna*me remedy is "liberal," "progressive," "public
+
of
determined staunch stand
agents of
hermit
strength
this
can
and
freedom
re¬
organizations,
like
are
we
decline and
in his¬
people.
religious faith; from
nation by deluded and misled men
by
that
worry
the
bird's eye view, we
a
how
must
gov¬
duction of life to pure materialism.
This infection creeps through our
and
over
national
our
fundamental
sustained
com¬
industry, and the
may
the American
infection
is
we
take
we
the
see
the
this
us,
approaching
If
Karl
the
and
looking
in
tory.
of
,
repeated
also
leaders
socialism
in
scene
fall of the greatest nation
concern.
au*° thefts. . Their crime rolls fronts and cults. These
,
,
i
are
the
to
operations of all
ernmental
merce
of
current
round
us
The real meaning and
among us.
in
haunts
This
need
conclusion,
we take a worm's eye view
of the crises and forces which sur¬
Marx
word
spread
ultimate
Those youngsters arrested in
1958 accounted for about 49% of
all arrests for burglary and 64%
uiciuae
In Conclusion
In
the
on
Karl
particular
Christian
•
*
is
of
k>
,
life, if
Clergy
America.
your
conse¬
destinations
I have witnessed the growth of
tions.
and
*
of
That
one
arrested.
tically all our children. Whatever
complaints may be made about
hoodlums;
in
clergy
^ *°r 3 S^r °* nationa*
*
the
From
the
expose
ultimate
■
of
clergy
and
the
and the
this infection.
the
further
a
within
education expand to include prac-
flight
fear
the
ifr-Zu-
Withm
balance
dollar.
We
justifies
there
whole
Another crisis which
em-
only
-k
Word to
Infections
tion can only come irom aiterna
•
of
our
capital
of the stability of the
the
nation
and
competition
unfavorable
cause
from
the
the
disguises
quences
to
which
an
degenerate minds
dwarfed bodies
bave
have
danger to the world
and
•
their
wlth
both
ooia
in
in
Marx
lviaix
Karl
is.ari
thinking
the
with
but
conspiracies
the
with
wun
plagued
piaguea
onlv
oniy
not
noi
are
w,here
TT
edies.
.
efforts
—
destroy and dominate the free
world.
needs
Edgar Hoover stated that
Among the signs of our moral
spiritual strength, I have wit-
diffi¬
our
exapaple
conscience
v.,.
of
de¬
1957 an estimated 740,000 younglong life, and I sters ,u"der 18 years o£ a§e were
today.
culties,
A
and
exposure
They build char¬
the United States.
include
to
of
support
The Growth of National Strength
its strengths to
more
fitting
tougher right
•
after-
constant
T
I
that
try
usual
darkness"
enforcement
more,,
now.
should
of
In
I will detain you with
\
even
outer
chance in life.
the
meaning,
They awaken moral con¬
science, which is the sure guide
in life.
They need the organized
Teen-Age Delinquency
.
It
release
streets.
simply alternatives
They give the kids
street.
acter.
passioned force of the pulpit.
sustain and expand
strengths which he summarizes.
a
not
are
the
mands of the press for reforms in
Communist infections, our moral slump and our faster
crime rate than population pace are some of the forces Hoover de¬
cries. Optimistically he explains
why a worm's eye view of our retro¬
as we
to
nothing in the teach¬
Scriptures which ad¬
the
the
The
and internal
long
ends
cases
effective sentences in prison.
fronting
so
mostly pending
mad-dogs
fact, I in¬
terpret Christ's words on "casting
Former President Hoover bluntly assesses six
dangerous crises con¬
true view
the
vocates
onto
By Herbert Hoover *
a
of
ing
Current American Life
gressive forces is not
hold
and minor offenses.
iuiVIH....
.
•
*-
■
wt"«-
20
Glore,
$11.21 a share, on
After including
capital gains paid during the year,
this represented an 8% gain.
BY
ROBERT
E.
RICH
in
1921.
New
office
York
to
announced these quarterly
distributions from net investment
the
45
Wall
A Long,
Cold Winter
St.
Ignoring Fahrenheit, it has been
a long, cold winter in Wall Street.
Garrett-Bromfield Adds
Numbed
(Special to The Financial Chronicle)
by the cold figures, the
DENVER, Colo.—Gordon Reis has
crowd has been
wondering: "What
been
have
been
added
to
the
staff
of
Gar¬
rett-Bromfield &
teenth
west
Co., 650 Seven¬
St., members of the Mid¬
Stock
Exchange.
the funds
doing?." The
Franklin Almanac, published by
Franklin Distributors, recalls the
wise adage: "The man who wants
to
lead
his
Joins Paine, Webber
the
back
what
orchestra
the
were
eminent
Mass.—Joseph
Monaco
has
added
staff
been
to
the
Federal St.
Wind
of
Paine, Webber, Jackson & Curtis,
24
doing
managers
Bear
Canyon?
began
Big
Devel¬
(closed end Boston-
company)
buying the
Corp., Cameo, Interconti¬
nental
Electronics, the National
Key Co., Textron Electronics and
Zapata Off-Shore. Meanwhile, it
NATIONAL
was
nolds
and
Metals,
United
Plainly,
down
its
to
greater
did
last
from
jet
*
a
has
bankers.
with
been
fine
investment
They can be
theirs from the
depreciation
of
the
there's nothing
March
sion
of
sure
airlines,
in it for the
to
but
STOCKS
born Co.
SERIES...
holders
a
mutual
fund
with
securities selected for pos¬
sible
long-term growth of
capital. Send today for
Free Prospectus and de¬
scriptive literature.
an¬
have
backed
down
some¬
what from the alltime
Growth
Fund
K-2
income
and
"By reinvesting distributions in
seeable future.
to
common
RESEARCH CORPORATION
us
Hence, both in
maintain
to
substantial "re¬
a
short-term
in
serve
which
ernment
re¬
long-term bonds and
stocks, it seems wise to
liquid
immediate income and
flexibility.
gov¬
provide excellent
a
desirable
This allows quick
ac¬
tion on our part to take advan¬
tage of such buying opportunities
as
may
from
Boston,
the
quarter
of
1959
eliminate
to
its
dicates that shareholders
of
aware
the
over
.■
the
5%
cumulative
convertible
preferred of Tennessee Gas
ratio
15%
in
each
of
seven
Transmission, First National Bank
than
Construction
Yet
another
porated
these
in
&
Bostonian,
Investors,
changes
1959:
buy¬
ing Ampex, Farbenfabriken Bayer
ADR, Farbwerke Hoechst ADR,
Merck
and
while
selling such
Jones
as
public
Tube
Pechiney
&
and
Compagnie
kingpins
steel
Loughlin, U.
Youngstown
along
with
S.,
Re¬
&
Sheet
Life In¬
Aetna
surance, Chicago Pneumatic Tool,
Harsco Corp., Signal Oil & Gas
and
Travelers
New
Insurance.
York's
vestment
Dreyfus
61%
by
the
at
investments
start
midyear.
half
of
1959
During
the
of
Fund
was
increased its
Fund, Inc.
common-stock
/
the
to
from
80%
second
it eliminated
Allied Stores, American Viscose,
Carrier, Celanese, Panhandle
Eastern
Pipe, Lines,
Paramount
year
in
Thus,
only
listed
last year, against the
complete turnover 30
1959
and few:
York's
making, these
;n
Foil,"B."
electronic
Ampex, Litton and Texas
Instruments.
New
S.
were
.
Dreyfus Fund
was
commitments
months / before
the
Big
the
new
Blow:
American
BroadcastingParamount, Bankers Trust, Beech
Aircraft, Cessna, Chase Manhat¬
tan
Bank, Chemical Bank New
York
Trust, Columbia Broadcast¬
ing, Copperweld Steel, Crane Co.,
Electric Storage Battery, First
National City Bank (New York),
Hugh W. Long and Company,
Oil
Company
tinued
I.
du
while
Elizabeth 3, New Jersey
Franklin
Pont
in
de
in
of
Custodian
by
how
and
last
mutual
can
funds.
..
Nemours &
popularity.
More
Co.,
business
were
an¬
than
"
"
,
v
written
the
stocks
represented
total,
followed
by President, reported. A A
at 30%;. preferred stocks,1
According to Benedick,
of
during
vestment
the
1958
of
In¬
Year-end
companies
were
$17.5
1959
$14.9
billion
in
and
1958.
At the same time, the association
reported
.that
distributions
to
shareholders
from
net
realized
gains
1959.
were
$482,287,000
Distributions from
in
source
791,000.
1958
to 65%
of these capital
gains
distributions
work
by
cepted
kept
was
shareholders
them
155
Ahat
reached
year-end.
Of
this
associaf
the
companies,
accounts
at
ac¬
shares.
of
the 24
open-end
reports
and
reported
who
additional
in
*on
member
tion
$312,-
were
The Association said that
from 60%
shareholder
at
total, 4.276,077
4,554,077
mutual
accounts with
were
bonds,
it was
6%; real estate and mortgages;- the largest-January total, and the
6.6%, and other investments, 4.2%.* third largest of any
month, since
the company began
operations in
according to
Companies.
.
billion
to
assets of member
this
'
amounted
Association
capital
new,
month
1959
National
closed-end
in
last
in
of open-
investment
$464,135,000, compared with $415,-
Based
$14,750,000
was
ca¬
2,617,000
shareholders
.closed-end
during
estate
by Investors Planning Corporation
of ; America,
Walter
Benedick,
Common
56%
to
and
542,000
Newsletter.
$3.9
*
tributed
end
companies
planning
be applied in
.
to
by Investment
Companies in 1959
year
Funds
Franklin's
they
delivery
system
Income Paid
$33.33
its dealers and is designed to ac¬
quaint them with some of the
basic concepts of estate
popular
funds
•
.
2
Eurofund,
Inc.,
closed-end
a
company
concentrating
invest¬
primarily in the European
ments
Common Market, reports net asset
value, a share rose to $19.85 at
the
end
June
of
1959
11, when
from
it
$18.04
on
June of 1953.
Running well ahead
year's record rate, Janu¬
ary volume bettered the previous
of
last
month's"
figure'; ($12,600,000)
by
17%, and topped the January
1959, total ($10,425,000) by 40%.
began to func¬
were
.
American
dividend
Eurofund
of the year.
did
dends from
holdings
added:
and
not
most
until
of
"Likewise,
gains
its
this
European
They
long-term
year.
no
realized
were
1959, since Eurofund in most
did
not
hold
(Special to The Financial
divi-^
CINCINNATI, Ohio
Rottenberger is
Hutton
Bank
in
America
*
net
Investment
Co.
amounted
equal to $11.69
a
to
W.
J.
E.
National
With Jaffe, Lewis
(Special to The Financial
-
of
reports that at year-end
assets
First
*
-
.Mutual
$401,367,
share, compared
for both open-end
and closed-end
companies was 3,895,224.
These
shareholder accounts now repre¬
sent the investments of
two
million
Chronicle)
CLEVELAND, Ohio—Larry
Mandell
is
Jaffe, Lewis
Ave
Stock
now
&
.members
Exchange.
connected
Co.,
of
1706
the
■
more
and
individual
stitutional investors.
Shareholders
totaled
*
the
of.
companies
on
$15.8
Holders
of
'
than
in¬
-
open-end
received
billion
total of
$45,i 12,000
with
total
a
which
year-end.
their holdings,
shares
at
of
the
end company members
The
cases
its securities for the
*
&
Co.,
Building.
James
with
in¬
companies. At year-end
1958, the total number of accounts
pany
Chronicle)
^
now
closed-end
value
on
of
closed-
received a
investments
$1.7
billion
at year-end.
W. E. Hutton Adds
Hence;
receive
,
the
period "usually" falls in
the first half
capital
firms
with
vestment
dividends
(Special to The Financial
»;,■
as
278,000
$419,023,000 in investment income
Chronicle)
when
the
company
began_
OMAHA, Neb.—Don B. Rood
investing. S. Sloan Colt, chairman,
has become affiliated
and J. Russell Forgan,*
with ChilesPresident,,
Schutz
noted that "most"
Company, Farm Credit
European com¬
panies do not' pay dividends as Building. ...
often
and
investment
Chiles-Schutz Adds
$20,844,742„ againSt $18,944,-
(New
Marine
Midland,
Music Corp. of America, OwensIllinois
Glass,
Philips
Lamp,
of
portfolios,
required six months' period."
York),
share
*
their
of the
$464 Million in Investment
;
compares
planning department, it will be a
monthly publication distributed to
con-,
General Electric and Texaco
rising
a
Planning
Prepared
Standard
the" most
stock
This
close
the
$54,000,000, and
MCF.
1958. Net assets at
at
cost
distribu-' Investment income dividends dis¬
nounced publication of the Frank¬
lin
Estate
more
(New Jersey)
be
to
common
E.
that
21.
assets
to
billion in
years
Electric, General Preci¬
sion,
Gillette,
Hanover
Bank,
Hertz Corp., Manufacturers Trust
General
pacity
*
study of collegeendowment funds for
showed
net
pursu¬
by the Fed¬
designed to increase
$16,699,799, compared
with $15,956,588
a
year
earlier.
Meanwhile, shares increased to
523,122 from 478,705.
Fund
university
Dec.
engaged,
Commission,
Securities
year-end
a
Power
estimated
a
at the close of
one of
changed
336
U.
the
miles
in con¬
structing additional facilities
1929
Underwood
and
with
11,031
authorization
to
eral
$0.38 paid to stockholders
record
tion. Total assets at latest
reports
investments
be
included
The company is
ant
Opposing
will
market
Pictures,'-St. Joseph Lead, South¬
ern
Natural Gas, South Penn Oil,
New
fund.
slate
system
lines, gathering lines and
sales laterals, with a design deliv¬
ery
capacity
of
approximately
2,505,000 MCF of gas per day.
amounted to
Stocks
shares
of
with
could
119%-, compared with
1959.
Boston
making
of
of
Incor¬
was
months
tion
ago.
portfolio
principal
the final
Mining.
proxies
$31.92, after
fully
are
that
hands
Utah
filed
Vance, Sanders' Brevits, in its
latest issue, ..notes that the turn¬
of
Miami, Henry Holt & Co. and
the
of
Townsend
under¬
in Penn¬
areas
of pipe
proposed by the Channing
Corporation.
Both
groups
have
*
i
amounted to
second
the
board
thej years."
American
adding
benefits
7" '
.
over
while
the
Sholley. "Growth is a long-term
proposition,
and
this unusually
high
rate
of
reinvestment
in¬
holding of 15,000 shares of North
Aviation
directors
shares, the investor is and Exchange Commission.
taking full advantage of the com¬
A;;-.A- ■
A'.
*
*
AAA '
pounding and dollar-cost-averag¬
Istel Fund, Inc. reports net as¬
ing principles so important to a
sets per share on Dec. 31 totaled
long-range
program,"
said
George
Putnam Fund moved in the fourth
A
10.
additional
accrue
in the future."
occur
Also
Feb.
on
includes
the
coun¬
markets,
including
the
New
York
City
metropolitan area. At Jan. 1, 1960
weeks, failed
by nearly 500,000 votes at
the meeting. Townsend is spon¬
soring
a
nine-man
slate
for
the
at
meeting
the
sylvania and New York to permit
present for the
quorum
system
of
increased winter deliveries of
gas
sented
capital
earnings improvement in the fore¬
gains
a
section
areas
into
in the company's eastern
approximately 11 million votes is
required for a quorum. The in¬
terest headed
by the Townsend
Management Company was repre¬
(shareholders) reinvested 82% of
the $2,391,000 total paid from net
investment
have
Louisiana
ground gas storage
the
after the fund, for
The
try.
producing
gas
and
Texas
northeastern
mutual
fund, agreed to ad¬
annual meeting until
580,514 votes were present
in person or by proxy. A total of
■
year-end, President
S. L. Sholley said in the annual
report of the K-2 Fund.
NATIONAL SECURITIES &
.
Keystone
high estab¬
lished at the end of 1959, many
stocks are selling at levels higher
than can appear justified by any
lation
Established 1930
Trust,
firm, told its share¬
month ago: "While stock
a
prices
is
Investors
Boston
in
Louis
St.
a
company's
multiple-line
gas
transmission system
extends from
total of
The Funds Report
other
:
The
natural
AAA,4
.
in St. Louis. This deci¬
11
came
annual
com¬
'
,
second time in three
growing
stockholders."
the
journ
the
for
*
Funds,. Inc.,
we
as
and use the balance in connection
with its expansion program.
Contesting factions in the proxy
for
control
of • Managed
quotation
a
of
battle
investment leader: "The
one
age
getting
column
this
week,
per
Feb. 29.
appreciation
of
banks
of
its
investments).
So
(2.1%
cents
investment
1.3%, has also shown
The company will
apply the net
proceeds of the sale to retirement
$34,000,000 of short-term notes
share, consisting of
25
cents from capital gains and
2 cents from net investment in¬
come.
The dividend is payable:
had
which
airlines
mon
General
Securities
dividend of
Fund, Inc. declared a
27
•
Dreyfus,
gotten
by
Webster Securities
Corp.
White, Weld & Co. The stock
priced at $34.50 per share.
was
Northwest Airlines
Airlines.
writing
on
Stone &
$
!i:
:|t
Co.
common
stock
Feb. 16 by an under¬
group headed jointly
made
was
and
Over-The-Counter
eliminating American
Motors, American Viscose, Beaunit Mills, Industrial Rayon, Rey¬
selling Cessna Aircraft, IMC
Magnetics, Kalvar, Minneapolis-"
Honeywell
and
San¬
Regulator
was
GROWTH
year,
a
public offering of
1,600,000 shares of Tennessee Gas
Transmission
15, record Feb. 29.
was
we'll conclude
and
Barden
w
fus
the
sweep
Research
opment Corp.
based
the
...
American
;i
to
Well,
money
before
Philip
Morris,
Piper
Aircraft,
Ranco, Schering Timken Roller
Bearing and White Motor., Drey¬
turn
must
the crowd."
upon
(Special to The Financial Chronicle)
BOSTON,
this
following National
Securities Series: National Growth
Stock 3
cents and National In¬
come 7 cents, both payable March
income on the
has
of
removal
the
largest
corporate
equity financing transaction so far
Marking
Research
Securities &
National
Com. Stk. Offered
Corp.
was
firm
The
the
Tenn. Gas Trans.
❖
-1:
& Co. is marking
anniversary of its found¬
ing in Chicago as Glore, Ward &
opened
Thursday, February 18, 1960
.
1958.
31,
Dec.
Forgan
announced
.
.
with $16,263, or
MUTUAL FUNDS
the 40th
Co. Its first New York office
Chronicle
and Financial
The Commercial
(772)
Glore, Forgan
40th Anniversary
1'
A--1'
»"»»
mwwwwr www
1
$427,437,000 in net realized capital
gains distributions while share¬
holders
closed-end
companies
$54,850,000.
Investment
companies
have
spread
their
portfolios over an
estimated 3,500 security issues of
more than 2,000
corporations.
H
Midwest
in
received
Attilio Chiappan
with
Euclid
open-end investment com¬
shareholders
were
paid
Attilio
Chiappari of Walston &
Co., Inc., passed away on January
29th.
Volume 191
Number 5926
.
.
.
The Commercial and Financial Chronicle
PICTORIAL
MEMBERS OF
Dictum Meum Pactum
THE BOSTON SECURITIES TRADERS
ASSOCIATION
36th
ANNUAL
At The Sheraton Plaza Hotel
DINNER
February 12,1960
President
Vice-President
'/////»tm
'
Recording
Secretary
Corresponding
Secretary
Alfred Zuccaro
Warren A. Lewis
T reasurer
m, mm "t
John McCue
May & Gannon, Inc.
Edward J.
Opper
J. Russell Potter
/. B. Maguire &
Arthur W. Wood
Co., Inc.
Company
J
First Boston
Weeden & Co,
Corporation
GOVERNORS
•
*
f
;
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||g|
Hw"
"
s
lev
Joseph A. Buonomo
F. L. Putnam &
Company, Inc.
Wilfred G.
Conary
G. H. Walker & Co.,
Providence, R. I.
IP
Richard J. Corbin
Blyth & Co., Inc.
:y:>
|||flL
<
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Clement G. Diamond
T own send,
Dabney &
Tyson
Clive B. Fazioli
Frederick S. Moore
White, Weld & Co.
New York Hanseatic
Corporation
"
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PICTORIAL
2
White, Weld & Co.
111 DEVONSHIRE STREET
1
BOSTON 9,
new york
/'C■
C
MASS.
v
Chicago
philadelphia
Members New York Stock
and other
Exchange
los angeles
principal Stock
and Commodity Exchanges
v
-
san francisco
new haven
•
■
'1
*'
'•
•
••
.
..
rf-
■
'*•
minneapolis
hagerstown
FOREIGN OFFICES
LONDON
•
ZURICH
•
CARACAS
hartford
HONG KONG
•
winchester
Hardy, First Boston Corporation, Philadelphia; Lyall Wightman, Isard, Robertson & Co. Limited,
Toronto; John McCue, May & Gannon, Inc.; Ed Kelly, Carl M. Lceb, Rhoades & Co., New York;
Barney Nieman, Carl Marks & Co., Inc., New York; George Angelos,
Chas. W. Scranton & Co., New Haven, Conn.
Bud
Blyth & Co., Inc.
Public Utilities
Primary Markets
•
.
With Complete
Bank and Insurance
Trading Facilities
Bonds
NEW YORK
BOSTON
DETROIT
SAN FRANCISCO
•
•
PASADENA
•
MINNEAPOLIS
•
SAN
1
Municipals
Preferred Stocks
•
PHILADELPHIA
•
Industrials
n
•
DIEGO
•
CHICAGO
PITTSBURGH
•
•
•
SPOKANE
CLEVELAND
«
OAKLAND
•
SAN JOSE
•
•
SEATTLE
LOUISVILLE
EUREKA
•
FRESNO
<
,j
Common Stocks
•
LOS ANGELES
•
* '
•
PORTLAND
•
•
INDIANAPOLIS
•
SACRAMENTO
PALO ALTO
•
OXNARD
John
Our
McCue, May & Gannon, Inc.; John Hudson, Thayer, Baker & Co., Philadelphia; Irving LeBeau,
May & Gannon, Inc.; Charles A. Bodie* Stein Bros. <£ Boyce, Baltimore
Thirty-First Year
Making
Primary Markets in New England Securities
General Market Stocks and Bonds
|MAY & GANNON
.
140 FEDERAL
Joseph Cannon
President
STREET, BOSTON 10, MASS.
William J. Burke, Jr.
Vice-President &
BOSTON
HU
2-8360
CA
HARTFORD
Enterprise
6-2610
PORTLAND
9830
Bell
Treasurer
NEW YORK
PROVIDENCE
Enterprise 9830
Enterprise 9830
System Teletype BS 902-903-904-905
Carroll
Sachs
Williams, Laird, Bissell
&
& Meeds, New
York; Roger Bragdon, Goldman,
Co.; Bob Blair, Harris, Upham &
Co.; Jim Duffy, Reynolds & Co.
,t
K
W Wit
Volume 191
Number 5926
.
.
.
The Commercial and Financial Chronicle
PICTORIAL
3
MOSELEY & CO.
ESTABLISHED 1879
MEMBERS
New York Stock
Boston Stock
r
-
■-
Exchange
Exchange
American. Slock Exchange
Midwest Stock Exchange
\
Underwriters and Distributors of
CORPORATE
and
MUNICIPAL
SECURITIES
boston
Joe
Monahan, J. A. Hogle & Co., New
York;
A.
Maurits
Johnson,
G. H.
Walker
&
Co.,
Bridgeport,
new
•
philadelphia
york
•
chicago
springfield
•
'
-
indianapolis
•
worcester
•
Conn.; Speed Hughes, Clayton Securities Corporation; Charles Thornton, L. H. Rothchild & Co.,
'
r
5
'"V
:
Burt
-V-
Whitcomb,
New
York;
Harriman
Fred
Ripley
G. H. Walker & Co., Providence, R.
Harson,
&
Co.
F.
L.
Harson
Incorporated;
&
Co.,
Wilfred
Providence, R.
G.
I.
Conary,
I.; J. B. Maguire, J. B. Maguire & Co., Inc.
Securities of the United States
Government and its
Agencies
State, Municipal, Revenue and Housing
Securities
•'
'■
"
'
,
Bonds, Preferred and Common Stocks
of
Railroad
Corporations
CORPORATION
Bank Stocks
-
•
•"
Company Stocks;.
15;broad $t!>
"•
-■
Casualty, Eire and Life Insurance
*
-
Industrial, Public Utility and
,
•„
f
Boston
v
NEW YORK 5
•
' DIgby 4-1515
.-Pittsburgh r.~Chicago-'
Philadelphia
,
.
San Francisco r.Cleveland
Bankers', Acceptances
•\
Securities- of the International Bank for
>
Canadian Securities j
Reconstruction and
James
•
•
-
McFarland,
Lyons,
Allen
Stroud
&
&
Company,
Company,
New
Incorporated,
York;
Hanseatic Corporation,
Sam
Philadelphia;
Gold,
New York
New
York
Larry
Development
>
External Dollar Securities
Underwriter
^Lutrdutor
Q)eaier
\y
cdnreminent
^PecurilieA
\\}
* *
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PICTORIAL
rwr+tmntivr tu' *«?- -
The Commercial and Financial
Chronicle
.
■._,.
Thursday, February 18, 1960
'
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4.
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SPECIALISTS
-As
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v-v
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,
;"i>
'
MUNICIPAL
ebrdially .invite inquiries from
we;
-
.
.
•
'
■
New
'■
":
BONDS
those
'
;•
England
-,
.
dealers wJio doJiot. concentrate their time-on
this'type
time, we have special offerings
-
of security. From time to
underwritten
analysis by
.by' this
.
,
70
.
Tel.
firm
.
only
.
officers:
our
'
;
~
State.
after
on-the-ground
*
Haukmss
.
:v
of
one
If h
&
i,
INCORPORATED
Street, .Boston 9, Mass,
LAfayette"3-3310-*-
Z
.
Teletype BS 570
-
Tom
Brown,
W. E.
W.
E.
&
Hut ton
Hutton
&
Henry Larsen, First Boston Corporation; Gil Lothrop,
First Boston Corporation, Philadelphia
Co., New York;
Co.,
Boston;
Hardy,
Bud
HCWAINWRIGHTtf CO.
Established
1868
®«>
•
.
INVESTMENT SECURITIES
...
„
Members-.
....
York
Nev)
American
Boston
60
STATE
Stock
Stock
Exchange
Exchange
Stock
!
.
(Associate)
Exchange
.
STREET
120 BROADWAY
BOSTON, MASS.
v
V s;
NEW YORK
RHODE ISLAND SECURITIES
Gene
Hussey,
Leo
Our Trading Department Invites Your
Inquiries
First
Boston
Corporation;
Jim
McCormick,
C.
A.
Allyn
&
Company,
Newman, American Securities Corporation; Ed Opper, J. B. Maguire
&
Incorporated;
Co., Inc.
On All Rhode Island Securities
Open-end Phone to Boston
—
LAfayette 3-0610-0611
G. H. WALKER & CO.
Established
j
new
york
jv
ft
midwest
american. stock
1S WESTMINSTER ST.
1
TEL.!
27
UNION
3.
R.
I.
'
ST.,
v
PORTSMOUTH",
Bell
-
(assoc.i
NEW
york,
st.
louis,
'
l
4
*
»'
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.
! PAWTUCKET, R. I,
V
TEL.. PAWTUCKET
NjH.
Teletype
v
PR
TEL.
bridgeport,
GENEVA
43,
6-23B0
6-1500
'
^
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:
to
hartpord,
:
/ '
'
WATERBURY
_
.'Vr
.
/ 4
'
V 34 EAST AVENUE
J
x
;direct private'wires
•
'
y
j"
exchanges
1 \
:
I-4DOO
DANIEL
:
/
stock
exchange
Z
PROVIDENCE
•
1900
members
'
and
white
*
plains OPPICEs
'
;
-
-
>
Allan
Hart, Schirmer, Atherton &
Charles
Midland
-
Moors
Co.;
&
Ted
Cabot;
Robinson, A. C. Becker
Don
Whittemore,
D.
&
H.
Co.
Incorporated,
Whittemore
&
New
York;
Co.
Canadian Corporation
O
'
-
Smith,
^
t
-
''
Dealers in
-
Z' / 'K- Z
;
Canadian Securities
-
f
2
WALL
STREET; NEW
YORK 5
WOrth 4-5280
Affiliated with:
Midland
'
-
Securities
•
-
,
The Jnvestipent
-
:
:
\
'
•'«
Corpn; Limited Z;
'
-
.
Dealers'-Associatjon-of Canada"
^The' Midland Company
•
v
"
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'
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Member:
-
■
,
Memberi:
The Toronto Stock Exchange
-
:
;
-
4
•
4
-
.
Montreal Stock Exchange
'
\
TORONTO
Canadian.Stock Exchange
MONTREAL
-*
*.
*
~ \
LONIX)N
lj
ii
Th°mPSOn * C'~
' u
t-s,
i" t ank
Ed
Ht
tr
igton,
H.
Schaefer, H. D.
D.,Kn.x
&
. c.,
Co.,
/«.i
t
F v-.r Sam
-York'
,
WWWWWMl»»*Wli^^
1
'"
Volume 191
Victor
Number 5926
Dugal, J. B. Maguire &
Brown,
Lisle
&
Co., Inc.;
.
..
The Commercial and Financial Chronicle'
Jim Moynihan, J. 1$.'Maguire
Marshall, Providence, R. I.;
Lloyd
&
Co.,
Canfield, New England
Inc.;' Bob
Trust
'
^~
"
'
^''"^« "'"^"HII
iai I
llh
i
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PICTORIAL
"
5
Sorterup,
Company
Your Doorway to trading markets in
New England Securities
31
MILK
STREET, BOSTON 9, MASS.
Telephone HAncock 6-8200
New York—CAnal 6-8100
»
Members New York and Boston Stock Exchanges
American Stock Exchange (Associate)
,
Falmouth
•
Fitchburg ■ Framingham
Springfield - • Worcester
-
*
•
-
•
Barney Bernard, Schirmer, Atherton & Co.; A1 Tisch, Fftzgerald & Company, New York; Joe Eagan,
Franh C. Master son & Co., New
York
n
INCORPORATED
Investment Bankers Since 1912
Arihur Marphy, A. C.
Jim
Allyn & Company, Incorporated; James H. Giddard, J. H. Coddard & Co.,
n-.;
Dowd, Securities & Exchange Commission; Frank Daley,' Massachusetts Dept. of Public Utilities
MEMBERS
V:
:
V
New York Stock
i *
•*
; Tk.
i
.
>
'
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•
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■
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Exchange
*
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Midwest Stock Exchange *
*
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'
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:
■_
...
>"«.
.
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BOSTON
'
,
A.
Allyn
C.
and
Company,
Incorporated;
Frank
Ronan,
New
York
Corporation, New York; Robert Calvert, Cooley & Company, Hartford, Conn.;
'
Nick Fon Eisen, Fahnestock & Co.,
\
Hartford, Conn.
Hanseatic
:
'
30 Federal Street
■
'
■
r
"
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CHICAGO
'
,
e
.,y;
123 Sooth'LaSalle Street
Murphy,
*
*-
•'
.
Arthur
.
(Associate),,
•
.
•
>
American Stock Exchange
4
v •
,
'•
'.
'
■
NEW YORK
44 Wall StTeet
a
,r,
w-i **
^
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The Commercial
PICTORIAL
6
A^^ V' -
,
''
'
'w' C'* wVWw vTi" i rikiMr,*Wf1
and Financial
Chronicle
. ..
Thursday, February 18, 1960
UNDERWRITERS—DEALERS—DISTRIBUTORS
,
CORPORATE SECURITIES
TRADING MARKETS
MANY
IN
STOCKS
INACTIVE NEW ENGLAND
*
*
*
F. L PUTNAM &
COMPANY, INC.
77 FRANKLIN STREET
BOSTON 10,
MASS.
Russell
Potter,
Arthur
W.
First
Members
—
Boston Stock
Wood Company;
A1
Corporation;
Boston
Zuccaro, First Boston Corporation; Henry Larson,
Emil Kumin, Estabrooh & Co.
Exchange
Teletype Boston BS 522
Liberty 2-2340
Kidder, Peabody & Co.
Founded in
1865
Members New York, Boston, Midwest, Pacific Coast,
Philadelphia-Baltimore and American Stock Exchanges
Kenneth
New
H.
G.
Walker &
Thomson
Co.,
and
Providence,
R. I.;
Joe
Company, Inc.; Lowell
Rinaldi,
H.
D.
Knox
Co. Inc./
&
Dick'
Warren, Dominion Securities Corporation
England Bank, Utility and Industrial Stocks
75
Federal Street,
Boston
Teletype: BS 338
Telephone: Liberty 2-6200
New
LOWELL
' NEW
England Branches:
BEDFORD
SPRINGFIELD
FRANCISCO
SAN
LOS ANGELES
•
CHICAGO!
PHILADELPHIA
NEW YORK
•
Hilton,
Chamberlin, Nesbitt,
Trading markets in
-
;
NEWPORT.
TAUNTON
-
!
PROVIDENCE
»
WORCESTER
Wilbur
Krisam, John C. Legg & Company, New York City; Lyall
Wightman, I sard. Robertson & .Co
Toronto; Mickey McBride, Midland Securities Corpn. Limited,
Toronto; Bill Gliss, Jr.,
John C. Legg &
Company, New York City
|
Limited,
.Distribution
in NEW. ENGLAND
for
more
than 100 YEARS
;
Estabrook &Co.
15 STATE
Boston
STREET, BOSTON
Telephone LAfayette 3-2400
.
I
*
r
f
; :
Boston
W8M.
Teletype BS-288
New York." -I * Springfield
.
Hartford
,
Providence
Members New York and Boston Stock Exchanges
'
|
arles
R.
Clausen, Hoit, Rose <fi Company, New York} Jack
Putnam, W. E: Hutton & Co.; George
Angelos, Chas. W. Scranton & Co., New
Haven, Conn./ Warren Elges*
**
•
A
.
Af;
Kidder &
Co., Inc.; New
York
PICTORIAL
7
Bank & Insurance Stocks
Over-The-Counter Securities
Mutual Fund
Management Co. Stocks
Specialists in
Christiana Securities Co.
Common
Preferred
Inquiries invited
in all Unlisted Issues
Laird, Bissell & Meeds
"Duke"
Hunter,
&
Wellington
Hunter
Members New York and American Stock
Exchanges
Assodiates,
City,
Jersey
N.
J.;
Lewis
McDowell,
F.
L.
Putnam
120
Company, Inc.; Joe Buonomo, F. L. Putnam & Company, Inc.; Fred Moore,
New
York Hanseatic
Corporation
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
WILMINGTON, DEL.
Bell Teletype NY 1-1248-49
PHILADELPHIA, PA.
ZURICH, SWITZERLAND
NEW HAVEN, CONN.
SALEM, N. J.
UNDERWRITERS, BROKERS
DOVER, DEL.
and DEALERS
distributing
CORPORATE and MUNICIPAL SECURITIES
;
Gerry
McCue,
Den
G.
H.
Walker
&
Co.,
Providence,
R.
I.;
A1
Dykes,
du
Pont,
Homsey
&
'
since
1886
W. E. HUTTON & CO.
Company;
Elliott-Smith, Bear, Stearns & Co., New York; Sol Bass, Bear, Stearns & Co., New York
'Members New York
Stock'Exchange
<
and other
leading exchanges
NEW YORK
Burlington, Vt.
i
CINCINNATI
Philadelphia
"
'
Baltimore
Columbus, 0.
Hartford, Conn.
Dayton, 0.
Lewiston, Me.
■
Boston
.
Easton,Pa.
Lexington, Ky.
"
Biddeford,Me.
Portland, Me.
PRIMARY MARKETS
A. A.
Geller, Allen & Company, New York City; Mark Crowley, H. M. Payson & Co., Portland, Maine;
Hal
Murphy, Commercial & Financial Chronicle, New
UTILITY and INDUSTRIAL STOCKS
York
NEW ENGLAND SECURITIES
J. B. MAGUIRE & COINC.
31
Milk
Street, Boston 9, Massachusetts
Open-end Telephone Wire to New York
New York—CAnal 6-1613
i
'■
Bell
Boston—HUbbard 2-5500
System Teletype—BS-142, BS-145
Providence, R. I—Enterprise 2904
Portland, Maine—Enterprise 2904
Hartford, Conn.—Enterprise 6800
Private Wire To A. M. Kidder &
Co., Inc., Newark
Tor
Bank and Insurance Stocks
Sam
Colwell, W. E. Hutton <£ Co., New York; Joe Conlon, Grace Canadian Securities, Inc., New York;
Charles
Weil, Joseph
Walker & Sons, New York; Joe Smith, Newhurger & Co., Philadelphia
.
r'
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U'dutf -W
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8
The Commercial and
PICTORIAL
Financial Chronicle
.
.Thursday, February 18, 1960
.
Townsend, Dabney and Tyson
ESTABLISHED
Members
New
Associate
York
and
Members
1887
Boston
Stock
Stock
American
ExchangesExchange
,,
/
T
30
STATE
BOSTON S
STREET,
*'
'
UNLISTED SECURITIES
ORDERS EXECUTED ON ANY EXCHANGE OR MARKET
"•
r
'•
.
■
.
Private Wire
New York
f~r
~>'j
-r *
1
-•
^
rr
'•
*
••■L./j
Teletype BS-346 for Trading Department
BS430 for Municipal Department
*
!
X
Branches:
Branches:
Fitchburg, Mass.
Bangor, Me.
Greenfield, Mass.
Lawrence, Mass.
Portland, Me. Lewiston, Me.
Augusta, Me.
j
* •.;
System
Telephone CAnal 6-1540
*
•
Keene, N.H.
Norris
Rosenbaum,
Englander
Richard Bozsnyak,
&
Robert
TELEPHONE
New
1
England
j
UNLISTED
MARKETS
Hickey,
Moran, 'Vilas
New
York;
Hickey, New York;
York
t°l»°hONE
144T|
B$.
te«typE
Liberty 2-8859 1
Jim
.
Moynihan,
Primary Markets in
Textiles
—
Banks
\
Frank
York;
Albertson, White, Weld & Co., New
J.
B.
Maguire
&
Co.,
Inc.;
Industrials
—
William
Wells, Paine, Webber, Jackson &
Warren
m-Stec s.
New
"SENDANTHY"
ADDRESS
CABLE
Inc.,
3-7010
LAFAYETTE
BOSTON:
Co.,
White, Weld & Co., New York; Ronald Jones, Vilas &
S.
Thompson,
Carr
&
Thompson,
Curtis; Richard Corbin, 'Biyth &
Lewis, Weeden
&
Inc.;
Carl
Vl
Co., Inc.;
Co.
Utilities
Electronics
...
New York Bank & Insurance Stocks
Schirmefj Atherton & Co.
Members New York and Boston Stock
Exchanges
50
.I?'.
Congress Street, Boston 9
-■-**
TELEPHONE: New York—CAnal 6-3000
Portland, Me., Providence, R. I.—Enterprise 4280
*
.
Connections
Portland, Me.,
to
Branches
Manchester, N. H.,
Northampton, Mass.
Bill
Come
in
and
see
sometime
us
in
our
Kumm, Hill, Darlington & Co., New York City; Jim
Lynch, Paul D. Sheeline & Co.; Richard
Barnes, A. M. Kidder & Co., Inc., New York; George
Kilner, Brown, Lisle & Marshall, Providence. R. I.
BOSTON OFFICE
Alfred R.
Crampton—Vice-President
STOCK TRADING DEPARTMENT
Warren A. Lewis
John C. Marsh
MUNICIPAL TRADING
DEPARTMENT
Curtice N. Townsend
Phone Number
Address
HUbbard 2-6411
24
*
MILK STREET
Weeden & Co.
INCORPORATED
■...
NEW
YORK
CHICAGO
SAN
t
.
•>
<.
■„
\
FRANCISCO
LOS
ANGELES
Frank
Barrett, H. C. Wainwright
John «Li-McDonou gh,
H.
C>
&
Co., New
Wainwright
&
York; John
Co.; Charles
M.
Fitzgerald, W. C.
Drisccll, >dine,
Piti'ield
&
Webber/ Jackson
C
&
.;
tut.Ji
Volume 191
Number 5926
.
..
The Commercial and Financial Chronicle
PICTORIAL
DISTRIBUTION
RETAIL
BARK STOCKS
•
IRSORAHCE STOCKS
rOBLIC UTILITIES
"
'."'■jfc
r
-
IRBOSTRIALS
•
MUTUAL FURDS
s
^
'
9
/
*'*
GENERAL DISTRIBUTORS
'
'
1
V
'
*<•
OF BOSTON
Mutual Securities Fund of Bpsfori
CO., INC.
Lawrence
Inc.;
Keller, Keller Brothers Securities Co., Inc.; Herman Keller,, Keller Brothers Securities Co.,
S. Romanoff, S. Romanoff & Co., Inc., Worcester, Mass.; Rodney P. Kent, R. W. Pressprich & Co.
ZERO- COURT STREET, BOSTON
•RANCH: 95
STATE
our
System Teletype
v
'
Leahy, National Quotation Bureau;
Frank Ward, H. C. Wainwright
-
BS 630
Private Wire
we can
White, Weld & Co.; Guy R. Hogarth, Fahnestock & Co., New Haven, Conn.; Crandon
Tel.* REpwblk 3-6*17
STREET, SPRINGFIELD, MASS.
Be!
Harry Walker,
Telephone* Richmond 2-2530
give
System
you
PRIMARY MARKETS
& Co.
In Coast-to-Coast Securities
Member6 Boston and New York Stock Exchanges
and American Stock
■
Exchange,(Associate)
50 Congress Street, Boston
;
;
Telephone; LAfayette 3-4832
.5
Fall River
^Winchester *:
Hugh-Farrell, May. & Gannon, Inc.; Fred
.
delphia;
Jack- Christian,
A.
Janney,
W.
;
,
Teletype BSr537
Carter, De Haven & Towns end,Crovtter & Bodine, PhilaiDulles
Benkert &
& Battles, Inc.,
Philadelphia; -Mai Weiss,
Co., Inc., New- York
Incorporated
particularly of
New
England Corporations
^Inquiries invited from Dealers
*
.
11
and Financial Institutions
Maintaining
a
Retail Department
"with Distribution in New, England-
WASHINGTON AT COURT STREET
Member Boston Stock
F. E,
Maguire, Stroud & Company, Incorporated, PhiladelphiaJohn D'Arcy, F. L. Putnam fa-Company,
.
Inc.; Cal Clayton, CTayton Securities Corporation ; Dave Magid, Hill,, Thompson & Co.,. Inc., New~ York
^
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Haverhill
Milford
East Falmouth
Manchester, N. H,
Exchange
.
-
10
PICTORIAL
Financial Chronicle
The Commercial and
.
.
.
Thursday, February 18, 1960
■szmzmmzzzmzmmmzzszzsHmmzmmzmzzzzBzzzBHZszz^^mz
CLAYTON
UNDERWRITERS
SECURITIES
DISTRIBUTORS
.
" •;-
,
MEMBERS
MIDWEST STOCK
BOSTON
STOCK
DEALERS
y
CORPORATION
"
"
PRIMARY
EXCHANGE
EXCHANGE
TRADING
MARKETS
AMERICAN STOCK EXCHANGE
(ASSOC.)
Direct
,
79 MILK STREET,
BOSTON
,
#.j
'
iH
.i
■'
*v.'•
I.-
<«"v -r '••
.
HAnover
1
•'
,
j
Tel. HUbbard 2-6065
;.
2-7538
MASS.
9,
'
.
Telephone to New York
; Tele. BS-30
and to
;
.
Inc.*
Grace Canadian .Securities
New York
Portland, Maine
New York City; Bill McCullen, Hess, Grant
W. C. Pit Held & Co., Inc.,
John
Fitzgerald,
Inc.,
Philadelphia;
Bates, Draper,
& Remington,
Curtis
Yeatman, Mosley Co., Incorporated, Philadelphia;
Sears & Co.; Henry Kuipers, Lord, Abbett & Co., New York
Mundy,
James
Suplee,
DEALERS AND BROKERS IN
GENERAL MARKET ISSUES
HODGDON & COMPANY
10 State
Street, Boston 9, Mass.
Telephone CApitol 7-4235
■
Bell
"
-
System
Teletype
.
BS
849
Frank
Mullin,
White,
White,
Weld &
Weld
Co., Boston;
& Co., New
Bill
York;
Doherty,
Clive Fazioli, White,
Ed McCormack,
Fahnestock
&
Weld
& Co., Boston;
White, Weld <& Co., New
Co.,
New
Peter
Molloy,
York;
York
Inactive
BANK and
INSURANCE
STOCKS
Massachusetts
Maine
New Hampshire
-
-
Vermont
Pa ul D. Sheeline & Co.
31
Milk
Street, Boston 9, Mass.
Telephone HAncock 6-0170
Teletype BS 51
Bob
King,
Chas. King
&
Co.,
New
York; Jim
Hallgarten
&
Co.,
New
York;
Bett
AMERICAN CEMENT CORP.
BOTANY
Schult,
Jr.,
Gcddard
Adams
Troster, Singer & Co., New
&
&
Co.,
Peck,
Inc.;
New
Jack
Thompson,
York;
York
-
INDUSTRIES
OFFICIAL
Pike,
Goddard, J. H.
Peter
-
FILMS, INC.
INDIAN HEAD MILLS
W.
L.
MAXSON
MORGAN ENGINEERING
UNITED
-
STATES ENVELOPE
NATIONAL
COMPANY, INC.
LERNER & CO.
_
.
Investment Securities
10 Post Office Square
Telephone: HUbbard
2-1990
•
Boston 9, Massachusetts
Teletype: BS
69
Frank
Orlando,
Goodbody
&
Co.,
New
•y*WMW"i£'* 'fWCWTM*'iff*Wt<
New
York;
York; Louis
John
D.
Ohlandt,
New
Lerner, Lerner & Co.
York
Hanseatic
Corporation,~
•
T,
wm
Volume-191
Number 5926/The. Commercial, and
George Uihlein, Jr., Hanfahan & Co., Inc., Worcester, Mass.;
Haigney, Dayton Haigney & Co., Inc.
,
Jim
Torpie, Torpie & Saltzman, New York; Jules
Bean
&
Mackie, Inc., New
t)ay'ton
"
Financial
PICTORIAL
Frank
"Duke" Hunter, Wellington Hunter Associates, Jersey City, N. J.;
'
Joe Gannon,
Harold Brown*
Bean, Singer,
May
Breen, Schirmer,
& Cannon, Inc.
Atherton <fi
Co.;
11
Barney
Bernard,
Schirmer, Atherton <fi Co.
Wood, Struthers & Co.; Lester Doucet, Salomon Bros.
& Hutzler;
York
We maintain primary
Chronicle
Jim
Hafey, Hornblower
Charles Callon, Frederick C. Adams & Co,
Corporation;
&
Herb
Weeks;
Vin
Ryan,
Neu> York Hanseatie
Ferrari, Hornblower &
Weeks
markets in
American income life
•
Coffin & Burr
beneficial standard life
loyal american life
;
Incorporated
reinsurance investment corp.
Founded 1896
Established
southland life
1926
west coast life
Trading Markets in
Inquiries invited on block offerings of active
inactive
and
life company
II.
stocks.
J. H. GODDARD & CO., INC.
ESTABLISHED
New England Securities
D.
K
1925
NO X
INVESTMENT SECURITIES
85 DEVONSHIRE
Inc.
CO
&
STREET
BOSTON
NEW
YORK
H ARRISBURG
PORTLAND
BINGHAMTON
Stock
Telephone
System Teletype
-
New York Stock
MEMBERS
LAfayette 3-3520
Exchange
Bell
ALBANY
BANGOR
|"
MORRISTOWN
MEMBERS
BOSTON, 9
Members
Boston
HARTFORD
New
York
Security Dealers Ass'n
Exchange
Midwest Stock Exchange
Boston Stock Exchange
American Stock Exchange (Associate)
BS 274.
DEALERS
AND
BROKERS IN
1960
1930
Dealers and Brokers in
UNLISTED
SECURITIES
MARKETS
TRADING
Genera! Market Issues
Specializing in
11
SECURITIES
UNLISTED
New
Broadway
NEW YORK 4
England Securities
Telephony DIgby 4-1388
Bell System
&reeueat^Compcm\}
Bell System Teletype BS
*
f
Direct private
V
<
•
4 -
■
1
*
.
1.
«
^
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1
•*
ll
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wires to Los Angeles, San Francisco,
\
169
14
phone between offices
STREET
BOSTON
NEW YORK
WHitehail 3-7600
Bell System
HAnover 24850
NY 1-1126 & 1127
-J
MILK
BOSTON 9, MASS.
HUbbard 2-6442
Direct
Telephone
Teletype
31
Telephone CApitoI 7-8950
New York 5, N. Y.
37 Wall Street,
Carr & Thompson. Inc.
BOSTON 9
York Security Dealers Association
Members New
Teletype NY 1-86
27 State Street
* *
' 4
,
i
Dallas & Denver
Teletype BS 328
Branch: Worcester Massachusetts
»
lilt
ik
ijii.
www
Volume
191
Number 5926
.
.
The Commercial and Financial Chronicle
.
answer
The Turbulent Sixties
frorr\
Like book
14
page
another excellent year for the do¬
mestic petroleum industry.
Travel
and
recreation
isolated
their
charged
boom.
with
continue
The
inflation
air
is
psychol¬
Most
Americans are living
They spend more and save
Unemployment will
level
ogy.
it up!
less.
around 3.5 million. Chalk up another exceptional business year!
•
value, price-earnings
are meaningless
except for
comparative purposes.
Didn't H.
Porter's
tough
effectively
Thomas Evans
this point re¬
prove
cently with Crane Company?
Mr.
Evans pitched Crane's family man¬
agement for plowing $35 per share
of retained earnings back into the
business without a penny of extra
profits resulting.
Can
new
comer
Transitron
Dow-Jones
;
Last
replacements — AnaSwift, Owens-Illinois and
-year
•
conda,
Alcoa for Corn
Products, National
justify the dynamic fu¬
ture growth implied
by a priceearnings ratio of 38 times current
earnings for its shares? Electronic
giant, General Electric (96) sells
Steel, American Smelting and Na¬
at
tional Distillers &
ings,
Chemical—gave
this accepted market barometer a
needed face-lifting.
Assuming ru¬
mored
splits for duPont, U. S.
•
Steel, Union Carbide and Interna¬
.
tional
605
Paper, a Dow range of 710provide the astonish¬
could
ment and terror in
world where
a
not
much
by our election but
rather by whose astronaut is first
.
so
into
outer
Russian.
space
American
—
or
Regardless of its vicissi-
tudes, individual stocks within
.
without
Dow-Jones
will
or
continue
their individual
performance vari¬
Examples:
why
c a n't
ations.
American
rial
Motors'
team
push
alert
manage¬
ailing
Chrysler
from Big Three membership? Will
advancing techniques, coupled to
unique merchandising enable Po¬
laroid to increase again this year
'
share
its
of
the
film
and
times
estimated
while
patentee
of
the
tor, sells at
With its acquisitions and
managerial face-lifting, is a revi¬
talized Crane Company aiming at
Minneapolis - Honeywell's profi¬
Intense
will
prices.
>
to
Measured
stock, sells at 24
1959
net
•
competition
stock
Dow-Jones,
this Republican roller coaster has
had a steep climb.
Some breath-,
! There are
whiskey
price-earnings
implied
a
ten-year
soared
ratios
that
drunk for every adult in America.
When
the
burst
thinned
distillers
shares to
the
in
i
the
surviving
v
to
a
.
trade
around
32.
guaranteed
Yet, anfirst lien
their
important West Shore Division- trades at $550 per: $1,000
bond J The coupon is 4%. Current
return is 7%.
Last fall, Textron,
f Inc.
organized a new subsidiary
J called Textron Electronics.
Capi«'
talization 2.5 million shares was
subscribed
exceptions,
stocks
a
matter
of
weeks,
these
"when
t
subscription price of 7V2 to 18—a
125% ' advance.
Meanwhile, the
shares
climbed
from
the
parent shares declined from 28 to
23.
Ignored
whopping $15.7
million paper profit added to the
value of Textron Inc. capital stock
which
shares, incidentally, curI rently disburse $1.25 in dividends
from
$3.50
i
M
;
-
i
;
•
'
t
.
1
of
phase
sunk
specialty
eventually
lowly depths to stay there for
Cunning investors will
this
take
year
industrial
inventory.
show
record
earnings
fortable profit
For to many
than you
If
cannot
concern
was a
indicated
per
1959
share.
earnings
1928,
in
how
Democratic
can
choice
any
1960
for
White
and
an
now
com¬
margins, take heed.
stocks, it is later
law
a Republican
prosperity?
In
any
of
whether
Republican
or
Democrat follows President Eisen¬
hower, his work is cut out.
a
With
Democratic
Congress reasonably
the White House assign¬
certain,
ment
should
rugged
when
as
be
not
nearly
Herbert
Hoover
Deal
socially
and
cycles.
recurring business
Yields
pared
to
from
stocks
bonds
widen
as
bond
needs
or
for those
of
who
cou¬
clipping annoying, why should
telephone, public utility, to¬
pon
not
bacco
and
oil
certain
ceive- consideration?
try
find
,
for
pear, as
practical
secure
as
re¬
These indus¬
promise
groups
which
shares
dividends
purposes
ap¬
bond interest—
with this
striking difference. The
S. Treasury note due in
guarantees no less than
5%. interest each day to maturity
and
Jb) guarantees
5%
each
more
than
day to maturity.
Telephone,
and
no
gas,
gold
and
light
certain
petroleum shares promise neither
the
Yet,
first
from
cannot
by
be
status
a
these
backed
ices
nor
second
practical standpoint,
stable-type shares
essential
accorded
above
guarantee.
Come what may, these turbulent
Sixties will provide plenty of ex¬
hilaration, challenge, promise and
opportunity.
"'The
his
of
those
author's
and
own
of
views
his
and
opinions
be
construed
to
not
are
as
firm.
corporate
cost
best
long
as
in
The
sued
ate
Pacific Tel. & Tel.
railroad
at the
dicate
Stuart
Co.
P.
and
created
Resolution
of
syn¬
the
Feb.
on
$72,000,000
17
Pacific
1993, at 101.198% and accrued in¬
of
of
on
the
The group
issue
Feb. 15
at
on
com¬
its bid
100.53%.
proceeds
10,045,630
from
the
additional
sale
shares
stock, WHl be used to
of
,
of,
re¬
the
company's treasury
for expenditures made for exten¬
sions, additions and improvements
to its telephone plant.
The 1993 debentures will be
deemable
at
re¬
optional
redemption
prices ranging from 107.198% to
par, plus accrued interest.
The Pacific Telephone & Tele¬
graph Co., a subsidiary of Ameri¬
can
Telephone & Telegraph Co.,
is
engaged
in furnishing
com¬
munication
and toll
services, mainly local
telephone service, in Cali¬
fornia,
Oregon, Washington and
the northern portion of Idaho. Its
subsidiary, Bell Telephone Co. of
Nevada, furnishes telephone serv¬
ice
in
Nevada.
Pacific
Tel.
&
On Nov.
Tel.
30,
1959,
had
7,406,930
telephones- in service, of which
about 34% were in Los Angeles
and vicinity and about 23% were
San Francisco
subsidiary
in
service
vember.
had
at
and
vicinity. Its
52,121 telephones
the
Other;
end
of last No¬
communication
services furnished by the company
include
teletypewriter exchange
service and
services and facilities
serv¬
for
for
bonds—
television programs and for
private line teletypewriter
the
by
Senate
ownership or control of one
transportation by another,
declared, "it would be
AAR
real
deal
value
with
transmission
of
if a shipper could
single transportation
which could furnish for
a
several
which
"a
& Telegraph Co. 335Vs % debentures, due Feb. 1,
award
1958
radio
of
transporta¬
then
take
determine
must
measures
to
company
foi
to
render
select
such
the
service
the various independent
companies which may be solicit¬
among
ing
his business.
er-on-flatcar
traffic,
the
AAR
pointed out that common owner¬
ship would make this type of traf¬
riers
attractive
more
even
and
to
car¬
not
against re¬
strictions imposed to protect the
public interest and applied with
equal effect to all transport forms,
the AAR said. Their opposition is
directed,
are
rather,
"those
to
tional legislative
addi¬
and administra¬
tive burdens that
ly
are placed sole¬
railroads," it ex¬
the
upon
plained.
"There
tions
Act
in
the
Interstate
laws
carriers
motor
railroads
or
special
no
other
or
from
water
restric¬
Commerce
to
prevent
controlling
carriers,
prevent water carriers from
trolling
riers,
railroads
or
alternatives
to
or
prevent
con¬
motor
air
to
or
carriers
Rapid
growth
of
private
or
shipper-owned transport facilities
indicates
shipper
dissatisfaction
with the present lack of transpor¬
coordination,
and
and
serious
It
warned
unregulated
threat
tablished
forms
of
to
common
owner¬
expected
to seek an advantage
they would remain com¬
petitors.
It concluded that there
since
would be "constant pressure as to
who
gets
what
in
division
of
rates,
who
is
to
the
move
un-
routed
traffic, who will get the
undesirable traffic, and who will
get
the
First Boston Offers
Campbell Soup Stk.
t
The First Boston
associates
to
the
that
carriers
the
AAR
private
pose
nation's
common-carrier
Corporation and
offered
Feb.
on
16
Hi
■
1,000,000 shares of Campbell Soup
Co. capital stock, par value
$1.80,
at $50 per share.
trustees
being sold by
are
under
the
will
of
Dr.
John T. Dorrance, and none of the
proceeds will
the
to
accrue
After the sale, 28%
pany.
outstanding stock of the
com¬
of the
company
will be in the hands of the public
compared
sale.
with
The
19%
capital
prior to the
is listed
stock
the New York Stock Exchange.
This will be the second time
that
Campbell
Soup
Company
stock has been offered to the pub¬
lic. The first offering consisted of
1,300,000 shares and
November, 1954.
is
company
made
was
the
in
largest
manufacturer, in the United States
and Canada combined, of canned
and
soups
spaghetti
blended
and
vegetable
juices, and of frozen
prepared dinners, and the second
largest
manufacturer
of
canned
pork and beans and tomato juice.
For the fiscal year ended
Aug. 2,
1959,
net
sales
amounted
of
the
company
to $496,539,000
and net
$34,455,000, equal to
$3.21 per capital share outstand¬
ing, compared with net sales of
$501,386,000 and net income of
to
$31,530,000,
or
$2.95 per share, for
the fiscal year ended Aug. 3,
1958.
H.
Hentz
a
es¬
system
&
Co.
Branch
in
Boston
BOSTON, Mass.—H. Hentz & Co.
has opened a branch office at 585
Boyleston
Street
under
manage¬
ment of Herbert M.
Spooner. Mr.
formerly a partner
in Leavitt, Spooner & Co.
Spooner
was
Foster Marshall Branch
ROSEBURG,
Oreg.
—
Foster
&
Marshall has opened a branch of¬
fice in the Umpqua Hotel Lobby
under the ^management of Russell
H. Cary.
Last November, the $200 million
—and to the general public which
including
governments?
Has
it purposes.
Transwestern Pipeline was cer¬ not
Hayden, Stone Branch
For the 11 months ended Nov. only common carriers serve with¬
been
convincingly
demon¬
tified
to
transport
natural gas strated that their increased earn¬ 30,
1959, the company had total out discrimination.
VISALIA, Calif. —Hayden, Stone
west from Texas for the prolific.
Diversification among common & Co. has opened a branch office
ings and matching dividends pro¬ operating revenues of $948,102,756
California market.
Owner
of
a
vide
the
desired
cost-of-living and net income of $131,163,589. At carriers would tend to lessen the at 711 Linda Vista Drive under
half
share
of
Transwestern
for
security in relation to our con¬ the end of last November, the attractiveness of private transpor¬ the management of George K.
each issued share, Monterey Oil
to
shippers,
and
would Johnson.
tinuing currency erosion?
Solid company had capital stock equity tation
trades
around
23.
Last
year's
political and public groups who of $1,586,770,088; funded debt of therefore provide the public with
range, 36-21. Wouldn't Monterey's
E. F. Hutton Branch
oppose
deficit financing and in¬ $830,000,000 and advances from the economies that result from
ownership of 950,000 shares (15%)
creasing tempo of Federal spend¬ the parent organization of $78,000,- efficient, high-volume service, the
of Transwestern Pipeline with a
HOUSTON, Tex.—E. F. Hutton &
ing are countered by an equally 000. These figures compared with AAR contended.
Company has opened a branch of¬
cost of $2.4 million and worth now
The theory that railroads would
vocal group who claim our chil¬ capital stock equity of $735,499,fice in the Gulf Building under
$10.5 million appear worthless? dren and
grandchildren do not 042; funded debt of $515,000,000 become a transport monopoly if the
management
of
John
D.
Recent new comer to the bloom¬
expect our magnificent engineer¬ and notes payable to banks, $77,- allowed to own other carriers is Brown
ing electronic field was Transirefuted by the fact that railroads
ing and scientific triumphs to be 000,000 at Dec., 31, 1953.
tron.
Underwritten
at
36, these handed them on a silver platter.
now
are
"a
minority factor in
Bache Appoints Finkel
shares were avidly snapped up.
It is probably senseless and futile
Three With Paine, Webber freight transportation in the The
This seven-year-old concern re-,
United
appointment of J. Manfred
States, and their share
reasoning to believe
this gen¬
(Special to The Financial Chronicle)
ports 1959 profits at $6.5 million
continues to decline," the AAR Finkel as manager of the six New
eration will accept for long the
York branches of Bache & Co. has
from sales of $30.9 million — an
CLEVELAND, Ohio—Wesley E. declared.
austerity required to arrest in¬
announced
by Harold
L.
"The restrictive legislation lim¬ been
extraordinary showing. Transitron
Bass, Jr., is now affiliated with
processes.
We
shall Paine, Webber, Jackson & Curtis, iting
shares currently trade at 38 times flationary
participation
by
railroad Bache, managing partner of the
investment firm.
this year's estimated earnings.
companies in other forms of trans¬
probably convincingly learn this Union Commerce Building.
■%
^
long-haul."
car¬
engaging in any form of
transportation," the AAR pointed
out. Railroads, on the other hand,
can enter into highway and water
service
only in very restricted
ways and are effectively prohib¬
ited from providing air service.
noted.
other
of
econ¬
the AAR pointed out that
the parties to such rates could be
from
tation
our
ship,
income
are
the
as
fear
on
As
balance of competitive opportu¬
nity has swung heavily in favor of
railroad competitors."
As for joint rates
and
other
The
shippers alike.
Railroads
and
omy
founded
was
monopoly.
transportation helped by these
restrictions grew to maturity, the
on
Citing the phenomenal growth
in "piggyback" or highway-trail-
fic
railroad
These shares
himself the form of transportation
which best suits his needs, ana
use,
other
types
he often requires."
present," the AAR explained,
shipper
portation
to
Urging passage of proposed leg¬
islation to remove restrictions on
was
terest, to yield 5.05%.
won
in
303
study problems
transportation industry.
the
"At
Inc.
&
offered
of
petitive sale
is¬
Study Group — a
by Major General
Doyle (USAF - Retired)
tion
Telephone
year
was
headed
the
underwriting
an
which
issue
an
statement
invitation of the Sen¬
Transport
company
Debs. Offered
of
transporta¬
special, limited cir¬
staff
of
manager
trucks
can use
of
pro¬
lowest
at
cumstances.
the
Halsey,
they
as
"tools"
study
cannot
service
form of
isolated
public
now
the
Associa¬
Senate
a
railroads
John
cluded.
in
electric
tobacco
power,
vide
the
Railroads.
told
that
group
only
defunct
standard,
a
more
useful object typifies the
departed
Fifties
with
Tiffany's
solid gold
14-karat gold headed
putter at $1,475, Federal tax in¬
com¬
prices fall and stock prices climb.
AAR
tion
Twenties'
to
of American
The
other
common
our
tion
according
and
imburse
of
efficient transportation pos¬
sible,
financially.
capital
bottom
most
Whereas Mr. Hoover inherited the
debentures, together with pro¬
ceeds from the subsequent sale of
always deserves careful study near
the
elusive top and the elusive
from
offering a full range of
air, highway, rail and water serv¬
ice, the public will be denied the
so
followed Calvin Coolidge. Repub¬
licans have married the New-Fair
Net
multiply dollar wealth
long as individual transporta¬
companies are prevented by
tion
apostle
event,
from
stocks
into
bonds and vice-versa to maintain
or
Broadening of Carriers' Transportation Role Essential
As
House honors defeat
think.
parent and others,:, 5% U.
including Textron stockholders. In 1964 (a)
issued"
\
mark-up
decade.
by
;
;
Re¬
booming postwar market.
few
As
company
television shares in the first
With
took
now.
underlying
on
•
it
justify 1933 hopes.
television
Nixon
capture the White House.
competition
ranks,
sensational
of their
Richard
should
bubble
market
i Central
•
share
intense
for
years
call
whiskey
and
standard-bearer
to
The
too many enigmas
spread
favoring
corporate
place for comfort. • bonds, including Federal issues,
Examples: the shares of New York" averages now 2%. For defensive
i
;
per
In the 1933 repeal boom,
shares
RAILROAD SECURITIES
Hammering relentlessly a peace
and prosperity theme, Republican
indicated
$4.50
of
21
Turbulent
the
taking bumps are in sight. Unrestrained optimism is too universal.
It is bad when things are so good!
•
times
earnings
Switching
influence
by
times
Inflation
Market
business
continue
15
share.
table automatic control market?
Stock
(80),
transis¬
calculated
a
earn¬
Tel
amazing
camera
market?
1959
American
1959 earnings. Westinghouse (110),
another
formidable
electronic
scientists promise control of thun¬
derstorms, tornadoes, hail storms
and droughts.
Dow-Jones will be
favorably or adversely affected
29
these
Politics
ratios
K.
during
Sixties.
And the American Investor
Continued
(773)
~~
tf
22
i«mw»M^>wii«OT«wn»c«»'^^,W«^W,tt('i«l*vi<U,,,'jU,-iii.' ".
' «W jliS^^|»^««f1W
^iWWIIMW^^
i
cance
<
%
<i
Why Canada Should
i'»
1
*
't
•
■J
t
Re-Unite With the U.S.
1
»
'>
members.
the vanishing
and her linger¬
ing resentment of something else
which
has
passed: the seeming
disloyalty of her 13 sister colonies
in rebelling against British rule.
ditional
loyalty
British
1/
'«!
t
9
of
'
to
Empire;
It is obvious that Americans and
Canadians
not
do
if
h
i
■
.
(.
i
i
So Saskatchewan has not
always agreed with Quebec, nor
North Dakota with Alabama. Re¬
agree.
gional differences within each na¬
tion
are
more
pronounced than
When Amer¬
national differences.
i
I{
j
icans and Canadians meet, we are
from each
speech, or manners.
distinguishable
not
other by dress,
In the face of the apparent
tend¬
encies
of
nations
to
split into
smaller and smaller splinters, in
a
mad scramble for that will-'o-
the-wisp—sovereignty,
^
ing against
we
t
rr
consolidation?
urge
colonies
American
T.#.
!
trend when
The 13
world
a
are we go-
have
may
quickened this tendency when we
declared our independence.
The
colonies
of Spain
and Portugal
then followed our example. Nor¬
wanted
way
the
At
den.
divorce from Swe¬
a
Versailles
of
Peace
the
goal of self-determination set
several more fractional states:
as
nations.
And, since V-J Day,
Britain, France and Holland have
been
shedding colonies to form
up
nations, each with its
flag, anthem, military and
separate
own
diplomatic establishments, fron¬
tier
guards, passports, currency
and
houses
customs
—
seemingly
independent, but actually at the
mercy of new forces no less ty¬
than
rannical
the
bonds
of
nialism.
colo¬
;
Offsetting the centrifugal tend¬
which
encies
than
the
a
50
of living
which
been
has
into
persons,
stable
more
turies
more
is
centripetal
for nearly two cen¬
memory
states
created
sovereignties within
new
much
force
have
welding
weak
nations.
The
great
United States, in spite of its start
offshoot, is perhaps the best
example of "united we stand,"
having joined to the original 13
colonies, Florida, the Louisiana
Purchase, Texas, part of Mexico,
Alaska, and now Hawaii, forming
the world's most productive and
prosperous nation.
Closely paralleling her neigh¬
bor's expansion, Canada has grown
in the same period from Quebecas
United
plus-Ontario, first, to
to
now
dominion,
a
commonwealth
a
of
ten
provinces, and still progresses
among
the world's top nations.
'.)
Some
89
ago, both modern
and modern Italy were
years
Germany
fabricated
of
out
number
a
the
Soviet
states among our
We cannot
the
or
Arab
examples of vol¬
untary amalgamation, but even
they reflect the trend toward un¬
Canada
years,
and the United States, separately,
have followed the path of prog¬
u
ress
via mergers.
Canada had her
problem with secession when Nova
Scotia wanted out and it
until
1949
wanted in.
est
war
piece.
over
as
was
not
Newfoundland
We fought our bloodi¬
to keep
our
nation in
one
Both nations
and
each
we
that
over
places
have proven
again the high value
upon
solidarity.
Are
wise in foreseeing our joint
destiny
England and Scot¬
as were
The
to
Canada
nearest
at our door for ad¬
in 1849. Great Britain
knocking
mission
was
adopted free trade and Can¬
ada had been deprived of her fa¬
had
pire.
position in the colonial em¬
The outlook became so black
that
talk
vored
annexation
of
the
to
States
sprang
up
and a
published in Mont¬
real calling for union.
Again, at
the close of World War II, when
United
manifesto
was
count of 20% and the United King¬
dom
hanging
was
by its teeth
on
by means of loans from the United
States and Canada, there was talk
among some Canadians about how
much better it would be to become
allied with the United States than
with the United Kingdom.
War of
capitals
other's
each
burned
in the
since
estrangement
greatest
had
This
1812.
was
be¬
fore Canada had been made a do¬
common
and
more
in difference than Canada and the
United States.
of two state
The
religions
reconciliation
was a
greater
I
£•
ain's attitude and activities favor¬
able to secession and
expressed
we
resentment with greater force
our
than
justice by canceling our reciprocaL* trade
agreement
with
It
Canada.
at
was
that
time
this
both Canada and England came
realize
to
by
giving Canada
freedom,
Britain
could
strengthen the relations of both
that,
greater
North
American
which
Act,
Canada
made
two
The Brit¬
the United States.
with
a
nation, followed
after Appomattox. The
of
Canada
became
the
years
colony
Dominion
first
The
Canada.
of
to call it the "King¬
dom of Canada," but largely out
of consideration for the feelings
thought
of
her
was
republican
Dominion
title
neighbor,
the
substituted.
was
Canada's
prosperity has always
peculiarly dependent upon
been
trade relations with us,
favorable
cancellation
the
and
reci¬
the
of
procity treaty was followed by a
period of acute depression in Can¬
ada with mounting annual deficits
and an alarming migration of pop¬
ulation to the States. Liberal Prime
Minister
Mackenzie
failed
revive
us
to
and
of
in
but
tried
with
reciprocity
Macdonald
John
Sir
re-elected
1878
on
a
was
platform
called
"the National Policy." Repeatedly,
as at present, Canada has reverted
to a highly nationalistic policy as
which
protection
form
of
patriotism,
was
inevi¬
but
tably with disappointing results.
Macdonald's
program
was
not
lastingly satisfactory, and in 1911,
Liberal
Prime
Minister
the point of
on
U. S.
Laurier
reestablishing
trade reciprocity,
to the de¬
light of the wheat farmers who
expected to enjby wider markets
and
cheaper agricultural imple¬
ments.
industrialists
But
became
alarmed; the railroads feared the
loss
of traffic to
the shorter U. S.
the
bankers became
worried
over
the
possibility of
U. S. dominance.
A strong proBritish sentiment developed which
resented giving trade advantages
to the United States superior to
those enjoyed by Britain. Whereas
lines;
and
had
tended
to
cut
the
card.
It
?•■
5 £
in**
w
of economic relations. And
Congress should be brought into
the
picture by appointing
affairs
Canadian
on
a per¬
committee
House-Senate
manent
working
closely with its opposite numbers
in the Ottawa Parliament.
The
history of
tions
with
Canada
records
oft-
on the part
producers.\ Canada is
extremely rich in natural resources
but needs markets far beyond the
repeated frustrations
local
demand.
and
location
Her
transportation costs increase her
dependence on U. S. trade. With
cold
in
trade
encouraging
much
tariff
minor
at about the
same
time,
»w«nw»iikww
of
Because
larger
of
economic
have
changes
to
concern
base,
been
of
but they are
Canada, and
us,
of vital importance to
make, and have made, the dif¬
can
ference
between
prosperity and
depression.
As
this
is written,
there is complaint from the north
such matters
over
ing and duties
Why not put
lead and zinc.
end, for all time,
on
an
grounds for disagreement
and Canadian hardship by wiping
tariffs
all
out
nationality,
foreover in
united
duties were wiped
among the 13 colonies when
out
as
to
.
Although both nations have
much to gain by consolidation, it
develop¬
and
could stand on
the
on
as
needs
her.
if the
as
nation with
to gain is the less cogni¬
Canada; but Can¬
than
more
us
need
we
Militarily
she would be at
of Russia without our
aid, while we are by no means
dependent upon her assistance.
Economically, Canada's chief re¬
sources are iron, nickel, lead, zinc,
copper, petroleum, timber, woodpulp,
uranium,
water
power—
heavy raw materials and com¬
the
mercy
modities
costly to transport.
Canada is the captive of geog¬
raphy, the victim of location, the
slave of mileage and climate.
her
to
location
customers, we
in a
the rest of the
year must
try to compete with
nations which grow cotton by ex¬
her
for
needs
few
weeks,
staple fabrics
and
The second
porting her surplus.
drove up
friend
Canadian
home in
to my
handsome Cadillac car
a
for which he told me he had had
winters,
she
Founded
at
as
has
income-wise
distanced
the
time
and
she
ten
to
has
been
lacks
For gen¬
erations she has been swimming
against the tide in trying to estab¬
lish
national
self-sufficiency and
distant markets through
marginal industries propped up by
a protective tariff.
build
up
nation which is
in danger of
neighbor cannot be
blamed for fearing
to have its
imports cut off during wartime
A
attack
and
by
a
guarding
against
this
threat
by
encouraging the development
production by means
of high tariffs and subsidies.
No
doubt, in the early days,
of
essential
Canada's
policy
of
protective
tariffs to encourage home industry
influenced
was
we
had
invaded
by
the
fact
that
her
territory in
1775 and again in 1812. If Canada
were
absolutely assured that the
U.
S.
would
her/
about
at
never
she
her
Canada can fully
difficulties,
tariff prob¬
marketing
her
solve
S.-Canadian
U.
lems,
and
low-cost
get the full benefit of
transportation" to close-
markets, as well as unlimited
capital resources, is as an equal
partner with us in a single econ¬
cannot
climate,
could
but
give
one
as
to
done
be
Canada
our
nation, much
mitigate the
the
cease
expense
in
tables
and
and by
winter,
vege¬
encour¬
aging the wider use of our south¬
ern winter resorts.
The possibility
that
glaciers
will
again
cover
Canada is very remote, but there
should be
comfort to her in
some
knowing that in
Canadians
temperatures,
live
and
about
move
the
of extreme
case
Great
south
of
other
as
could
freely
Americans.
Lakes
as
It
their
than
more
considerations
Such
Mackaye, in
Though Canada is justly proud
having the world's highest ratio
of home ownership, lower taxes
than
debt
of
lower
a
capita
per
the
U.
cheap electric
her
homes
S.,
national
power,
the
parel,
TV
Canada.
as
automobiles,
women's ap¬
more
in
comes
to
cost
when
And
it
food, the average family in Can¬
ada must spend more than onequarter of its income to eat.
full partner,
higher living
standard. And perhaps nothing so
convincingly shows the
advan¬
tages to Canada of joining hands
with
us
the
as
added
many
forts
and
dians
will
as
a
much
our
realization
of
conveniences,
luxuries
the
com^-
which
enjoy when
Cana¬
the
5,000
mile border and all custom duties
world
have
affairs
only formula
which
Trade
forgive Brit¬
show
Nations
Pact
1958,
President and
our
John
Foster
Dulles,
tawa
where
Mr.
Canada's
went
the subject
on
grievances
have
show
to
been
which
lie
position;
solution
been
within
that
and
Canada's
such
much
hinted
as
Spiritual Gains
continental
business,
good
sense,
defense—from
almost
terial
there
angle
to
seem
be
—
there
should
stead
of
the
be
United
States
citizens
could
today
boundary
the
an
is
when
realize
we
between
States
Canada
is
and
never
geographic,
economic
debit
becomes
that
and
greater
sense."
clear
the
the
than
trade
United
that
be¬
tween any
that,
two other nations, and
round figures, we buy
in
three-fifths
of
Canada's
exports
and
supply three-fourths of her
imports.
This trade balance in
favor
our
our
is
of
neighbor,
of
U.
as
great
concern
to
is the preponder¬
S.
worry
disad¬
sources.
ance
chases
of
Canada
her
likes
our
exports and
pur¬
needs
make
of
no
greater mistake than to think that
material considerations alone
will
the deciding factor.
be
but
spring
to
nations
reserves
often
the
1776.
criticize
we
has
In
since
ceased
but
we
in the
are
happened
her
to
us,
to tell us
right
this
And
since
Canada is
our
defense
territory,
of
in¬
nations
we
long
sense
ma¬
doesn't
why
reason
two
But
one.
every
just
good
any
an
much
by
From the standpoint of common
no
much
at
side!
knows-
How
sound
a
union should not have
have much to live down.
the boundary is
debit, that it makes
troubles
for
blamed
deep
as
so
either
good
Hugh MacLennan, "The Canadian
that
at¬
and
will and
eagerness to help solve the diffi¬
culties.
Strange that we should
tempted
off when she thinks
In the words of Canadian author
ad¬
Eisenhower
dressed Parliament
of
our
late
to Ot¬
the
of State,
Secretary
wrong.
us.
the
us
or
ain the billions of dollars of debts
made
re¬
perfect
perhaps the United Arab
Republic?
way,
she still
military
will
and
Are we
going to wait and let the European
to
economic
inevi¬
made
vexations
all
other
of
insure
Yes, Mr. Mackaye, and the best,
quick
both
to
out
and
table."
when
wiped out. When that
the combined nation
owes
the
harmony in the astonishing part¬
nership
which
geography
and
happens
afford to
worked
be
vexations
have been
could well
a pop¬
large;
as
a
can
minimize
Next to safety, the greatest in¬
we
have to offer our
Canadian friends
of
formulas
ducement
is to share
times
national industry
financed in large part in another
country.
There seems to be no
reason
to
doubt, however, that
In
as
utilities,
sets etc.
"Part
neighbor with
a
ten
problem
then
plumbing and
heating, and 40% of her
household
conclude:
to
problem is insoluble:
problem
of
living
in
the
of
many
lack
households do not possess an auto¬
mobile,
Milton
Canada's
of
plenty
and
led
recent biography of
a
Diefenbaker,
affairs
Canada."
that partnership is union!
of
and
one
economy
political,
outside
determined
any
Sharing
—
in
Canadian
the
makes
the
Security
"This
warn:
trade
altogether too vulnerable to sud¬
den changes in trading policy at
Washington.
Canadians
do
not
wish to have their economic, any
move
Next to
to
of
channel contains inherent dangers.
ulation
to
and
Diefenbaker
improving the availability of
fruits
led Prime Minis¬
the trend which
shadow of
invade
subsidized industries
1939, our purchases from Canada
multiplied nearly eightfold
$380 million to $2,943 mil¬
lion; and her purchases from us
more
than eightfold — from $497
million to $4,003 million.
This is
—from
hardship of Canadian winters by
the use of our ice-free ports, by
warm-weather
now
have
omy.
We
such
at many points.
Since
the outbreak of World War II in
concentration
The only way
at
economies
overlap
ter
$16,000, largely due to the
voted to protect the
Canadian automotive industry ^
duty
or
defend
customers
our
high
long-term invest¬
ment
in
Canada—$11.8
billion,
against Britain's $2.6 billion, and
$1.1 billion from all other foreign
times
blockade
could
vantages of
all
that
best
becoming bet¬
are
better
and
rate
a
to pay
out¬
She
one.
and markets.
consumers
long
slowly.
same
population
nation,
our
grown
about
ter
other's
each
States
United
it needs, tak¬
ing the textile industry to illus¬
trate his point.
According to him
Canada's textile mills can fulfill
Due
her
and
of her resources and
but
so
fears
U.
S.
of
ownership as
to
velopment
industries,
disadvantages to Canada of trying
in that such items
me
investment capital for the de¬
our
by
stated: We need
to
more
1
was
me
zant of the advantages accruing to
her in taking that step.
Baldly
the
"""V-
UvM ".'
,l.,ji
WlfttMft
wmfti MiJfHkWSrf
domination
against our 25%. Our
average per capita income is 43%
above Canada's—$2,043 as against
her $1,433.
And the difference in
living standards is even greater
looks
'U*MM
Thursday, February 18, 1960
to make everything
central
they joined hands?
I
have proposed that stock in Ca¬
recently brought
nadian
corporations
owned
by
two Canadian
friends.
The first, a prominent U. S. investors be non-voting!
Not only are Canada and
investment banker, mentioned the
the
This truth
wheat dump¬
as
to such
her and
was
freedom
Canada.
with
.
up
tariff rela¬
our
.
bottom.
own
home
of Canadian
ada
1 *
•
common
range
looked
we
as
more British than
We had resented Brit¬
upon
her
Canadian.
than
defense
further step in
the right direction, a permanent
staff is needed to watch the daily
our
and
1867
any which we face. however, that a constructive and
Yet, 250 years ago, Scotland, with cooperative step of great signifi¬
hurdle
In July, • 1958, a new
was appointed
supervise our
As a
our
in
minion
opposite tack and, before the year
was
out, Laurier was in the dis¬
Scots
cabinet
joint
a
trade and commerce
on
changing administrations in Wash¬
ington and differing views on reci¬
we
procity, we have blown hot and
had far less in
the
other
During our Civil War came our
leading-strings of Mother Britan¬
nia, the Conservatives took the
centuries
include
to
many
problems.
the Canadian dollar was at a dis¬
fought
the English tooth and nail. They
For
fishing
committee
cabinet
to
ago
years
set up.
was
came
ever
of
settlement
committee
by
Overshadowing Neighbor
Laurier
land in 1707?
the
as
waters,
later broadened
was
the
Six
Back
Canada Held
was
ion for strength.
For nearly 200
Scots¬
or
it
individuality?
their
men
a
feuding principalities.
include
of
Has Scot¬
regretted her decision?
land lost her identity
an
and
to become a vital part of the
Kingdom.
Has Scotland
emy,
ish
i
to set¬
up
matters
rights, obligations and interests, in
time ranking with the Rush-Bagot
Boundary Commission of 1818 for
the peaceable settlement of dis¬
putes.
with
time
all
Tariffs; the
prises; the recognition of Commu¬
nist China—these are but some of
the matters about which we dis¬
,'f. U ''
their
her former en¬
for
disposal of surplus grain; Ameri¬
ownership of Canadian enter¬
*
such industries
S.
rights, dams, and hydraulic power,
can
*
Originally set
boundary
U.
three
concentrate
and
W*
*»»
ment of her natural resources
of
consisting
something more than half the area
of England, but only a small frac¬
tion of its population, cast her lot
eye-to-eye
see
all current issues.
on
the in¬
was
International
and
difficult
such
tle
use
Continued from page
Canadian
three
1
'■
't
,.
.
This
taken.
was
auguration of the
Joint
Commission,
mlS
'V*
►
,
Chronicle
The Commercial and Financial
(774)
M
ilMMWM'j.
,t
eyes
invade
have
we
We have
her
manipu¬
lated
our
for
prosperity, and we
patronizingly talked of "an¬
tariffs with little
regard
Canada's
have
nexation"
when nothing short of
partnership would be toler¬
able.
The
Royal
Bank
speaks
generously when it says: "These
things seem old and remote. Ca¬
full
nadians
have
long
since
wiped
from the slate of memory the feel¬
ing of
ran
an
both
judgment
the present-day relationships
be warped
by ancient mem¬
high
nations
on
to
old feud in which blood
at
the
refuse
to
time,
and
allow
ories."
Canada
has
quality than
no
more
admirable
loyalty to
Great Britain in particular. True,
she escaped some of the vexations
loyalty
—
Volume 191
the
plagued
which
Number 5926 ...The Commercial and
Financial Chronicle
founders
nation and led to our
our
of
separa¬
she reaped some of the
benefits of Parliamentary limita¬
tion; and
but,
embracing
Federal
and
strings than we had.
And, as
Canada grew from two provinces
net
50,
Great
side-by-side with
fought
Tommies
of
ties
The
in
and
Africa,
the
on
Nile,
two
British
in
South
world
sentiment
wars.
are
,
very
She still loves the pomp
and circumstance of regal pagean¬
strong.
It was but 19 years ago, and
try.
result of the first bill intro¬
a
as
duced by the then fledgling Die-
that
fenbaker,
Canadian
citizen¬
ship for Canadians took the place
of British citizenship. But, like a
healthy youth who finally out¬
U.
S.
law
systems
the
U.
of
with
upper house, but
is
cial
for the reason
design so far proposed
has been adequate to symbolize
her conflicting loyalties."
.
Is this lack
Canada
tive
is
.
.
proud
a
with
a
have
total of 20
suitably
strong representa¬
tion in the joint legislative
body.
Such
adjustments are
details—
of
none
than
them
formidable
more
difficulties
long ago over¬
come in
reconciling the needs and
prejudices of the 13 colonies to
each
other.
Those
'
who
have
studied
the
dynamics of planned
Nothing would be
apt to kill the proposal to
unite
than
for
the
to use pressure.
In
proposal would
United
come more
the
grace¬
With the
rea¬
ever,
sound as they are, how¬
it matters little from whence
they
come.
sons
as
The
only urgency is
the danger of sudden attack from
the other side of the pole. Except
for this, the juncture could come
about
ally
naturally and as gradu¬
Canada's step-by-step sep¬
as
as
aration from England. Both Can¬
ada and the United States have
of
age.
With
no
dowry, and with the
most honorable of intentions, the
now
come
thought of
a
suitor
now
can
of the
I
ask
for
the
hand
bride.
cannot
picture
Their security should
threatened;
■ •-
not
Canada
ever
deserting her Mother Country to
take up with a rival, but if union
with the States would mean actu¬
It should not be attempted
until the preceding major change
has been assimilated.
This
to
help
requirement
mine
of
message
tended
is
the
answer
advance
—
in¬
first
under¬
standing.
The people of both na¬
tions can help to bring it about,
not only by voting for it in refer¬
can
leaders
Macmillan
lines
with
like
could
half-Ameri¬
Churchill
and
standing on the side¬
encouragement, then
with
Canada would be doing the United
Kingdom a signal service by more
closely cementing relations
all
around—re-union, not just union.
We
speak
Both of
dollar.
keep
the
In
moving about we both
the right.
Each prefers
to
baseball to cricket.
celebrate
our
first
same
language.
same
buy and sell with the
us
And
Almost
nation.
Christian
every
political union, such, for example,
any
Canadians
much
same
do
the
world.
do
Americans
and
the
quently
in
things,
fre¬
and
them
together.
Obviously, neither nation can dis¬
trust
very
much
.
another
.
.
with
which it has such relations; which
goes
into similar hysterics over
the World
Series, uses the same
lotions
and
and
the
St.
By the natural
processes of propinquity Canada
has been gradually growing away
from the English way of life and
towards the American pattern. We
indeed two peoples with
are
ideas
and
ideal
and
ideals.
of
the
May
harmonious
like
idea
union
blossom and bear much
fruit.
That we are both
Americans is far more important
grow,
golden
than that some are Canadians and
others
Yankees!
having to
W. E. Burnet Partner
On
Feb.
1
Frances
admitted
was
Outstanding
the
are
Arizona
it
of
working out the mechanics
re-union, there is advantage in
ship
Wall
banks.
the
largest
growing Rocky Mountain
region, Valley Bank ended 1959
60
offices
4
its
statewide
network.
As
nancial
ley's
of the nation's most pro-
one
gressive
of
or
growth
bank
in
,
electronic
equipment
plan
"Loan
estimated
at
1.3
nearly double the num-
now
people
holds
second
to
States
all
extending lines of credit
to $3,500 to individuals.: Valley
Bank long has emphasized avail-
Physical
advantages
also
are
exemplified by beautiful yet prac-
nition
from architects—unique in
banking field.
While
new
opened
growth of agricultural income, life
insurance in force, rate of income
growth and bank deposit growth,
its
basic
plans
every
extending objectives a
five years ahead.
It makes
use
of constant research, including
self-analysis,
community
study,
and study of its competing banks.
Primarily a retail bank, Valley
has
emphasized instalment and
real estate loans in particular for
providing strong earning power.
A national reputation has been
earned for introducing many in-
lating
operations, such
to
those
as
instalment
credit
re-
and
Mexican
import-export
business.
for Valley's bank credit
continues
to
parallel
Arizona's
Demand
issue
.
Feb.
on
Credit
17
a
new
of
$203,000,000 of
4.80%
nine-months debentures, due Dec.
1, 1960, at par.
The offering is
being made through John T. Knox,
Fiscal Agent for the
banks, and a
nationwide
group
of
securities
dealers.
It
also announced that
$10,000,000 of 5y4% Sept. 1, 3960 out¬
standing debentures was reopened
was
and
sold
for
delivery
March
1,
1960.
Proceeds
from
will be used for
$170,000,000
of
the
financing
refunding of
the
41/2%
debentures
due March
1, 1960 and to provide
lending operations.
funds for
Two With Paine, Webber
(Special to The Financial Chronicle)
COLUMBUS,
Ohio
John
—
W.
Campbell and Peter S. Mykrantz
have joined the staff of
Paine,
Webber, Jackson & Curtis, Union
Commerce
Building.
Ohio Co. Adds
(Special to The Financial Chronicle)
COLUMBUS, Ohio—Roy L. Wittebort has been added to the staff
The Ohio Co., 51 North
High
of
St., members of the Midwest Stick
Exchange.
With McKee & Jaeckels
flourishing economic growth. Diversification of loans
in
the
and
can
be noted
1959
following
commercial
figures:
industrial
loans,
real estate loans, 26.3%;
instalment loans, 25.9%, and agri-
28.8%;
cultural
19.0%.
livestock
and
The 1959
loans,
for pos-
reserve
sible loan losses totalled $3,961,000
at year-end.' Total depositors now
-
(Special to The Financial Chronicle)
APPLETON,
Wis.
Martin
—
V.
Werner has become affiliated with
McKee
&
Jaeckels, Inc., Zuelke
Building. Mr. Werner was form¬
erly with the First National Bank
of
Appleton.
exceed 336,600 and loan customers
number
approximately
Valley Bank's gain
f n4%
ot
/o
outpaced
the
—Dec. 31,1959—
Assets
150,000.
THE FIRST NATIONAL
in deposits
CITY BANK
durine 1959 considerablv
duiring jy5y considerably
the
banking
advance
made
industry
by
OF NEW YORK
generally.
Bulletin
on
Request
Other
Cohen, Simonson Partner
Louis
Sapir became a
in Cohen, Simonson &
Co., 25 Broad Street, New York
City, members of the New York
—Dec. 31, 1958—
Laird. Bissell & Meeds
Dec. 31,1957
Members
—
19.2%
'11.4
39.1
6.3
370.9
(Real Estate)
Other
$119.2
securities!-
Loans
1
is¬
(In millions of dollars)
U. S. Governments' " 70.7
Feb.
to
bank
Intermediate
offered
Statement of Condition
Exchange.
On
six
months,
full
other
-
tions, and are quick to adapt policies in recognition of the growing
banking needs of the people, and
to
continuously search out new
opportunities.
Management
revises
Federal
Banks
limited to
were
three in 1959, eight branches already are planned for 1960 openings; management states 1960 is
going to be its largest branch expansion year.
in
The
count"
branches
most
sys¬
continue
Nine-Month Debs.
Checking Al>
up
the
should
paid
this
Fed. Banks Offer
will
recently received national recog-
growth, non-ferrous metal production and growth
of manufacturing employment. It
stock
outperform
opera-
tical banking offices, one of which
decade ago. Arifirst position in rate
a
were
managed,
Arizona banking
1959
which
clerical
many
earnings
Aggressively
sues.
tions by 1962. During the year it
also introduced its new revolving
credit
1959.
auto-
his own credit capacity.
of
employment
ranks
the
install
ability of loanable funds through
is due directly to the
population
Arizona,
zona
care-
fastest-growing fi- instalment credit in the belief the
institutions, much of Val-, consumer is an excellent judge of
success
of
After
and
Cash
59.7
(98.7)
—
assets
21.2
$103.0
18.7%
17.4
96.2
16.0
31.9,
(
(26.3)
3.4
5.8
(24.4)
120
(24,0)
18.9
Stock
Exchange
BROADWAY, NEW YORK 5, N. Y.
55.3
302.3
(74.4)
American Stock Exchange
5.5
54.7
New York
Members
19.8%
Telephone: BArclay 7-3500
Bell
Teletype NY 1-1248-49
Specialists in Bank Stocks
3.4
3.4
partner
Stock Exchange.
assets
$621.1
$39.2
—
with
offices
in
the
—
$484.6
Other
NATIONAL AND
6.3%
6.4%
$35.5
500.4
90.6
(163.2)
(28.8)
(136.7)
(27.3)
(26.5)
0.4
5.8
1.1
1.9
10.6
1.9
1.8
liabilities $621.1
100.0%
$552.3
Head
.
26
Office:
BISHOPSGATE,
1.1
11.8
London
100.0%
GRINDLAYS
LIMITED
Amalgamating National Bank of India Ltd..
and Grindlays Bank Ltd.
90.8
liabilities.-
Total
6.3%
91.4
2.7
LONDON,
54 PARLIAMENT
13
$484.6
E.C.S
Branches
ST. JAMES'S
STREET, S.W.I
SQUARE, S.W.I
—Trustee Depts.: 13 St. James's Sq.;
Rd.,
Nairobi;
Ins.
Dept.:
54
Govt.
Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
Net
has
100.0%
Selected Per Share Statistics*
Form Tennessee Investors
Inc.
$552.3
567.4
Reserves
Williams.
Investors
100.0%
BANK
(Time deposits)
Berens Branch
of George C.
Total
Liabilities—
Capital funds
Deposits
NASHVILLE, Tenn.
in
banks,
started to
mation
fast
with
other
mechanize
commer-
Favorably located as
bank in the nation's
Lee Kennedy
in W. E. Burnet & Co., 11
Street,
New
York
City,
Stock;
similar historic
backgrounds, go¬
ing back to English common layf
and Magna
Charta^
- IVlany ' un¬
written conventions of the English
Constitution hold good in Canada,
position
the top 50 largest
among
.
May,
limited partner¬
to
the fact that the two nations have
h
its
1959
tem's
its leader-
assure
years.
out.
banks,, Valley ful study of experimentation by
advanced
cial
third of
statewide
ship in future
in
the present low
yield of 1.9% at
the recent price of 52.
Only one-
face
management to
situations,
particular; it continues it£
phenomenal rise. By the end of
1959
soon
the banking industry, Valley Bank
has built up a strong second line
Bank in
trains."
In
growth
of
bank officers which will
among growth stocks
members of the New. York
cures
stand in streetcars and
zant
defen-
sound
as
novations in customer service and
its
colds and
with the WASHINGTON, D. C. — Berens
same
nostrums and creams, and Securities has opened a branch of¬
twists the language into queer fice at 1115 Seventeenth
Street
forms to express indignation at Northwest under the management
lipsticks,
poison ivy
banks
sive-moderate
bank
of
of Canada
other frontier
statehood
Alaskan
both
we
July.
The
eloquently
expressed what is in my! mind
when it wrote: "The boundary is
-crossed
by more trade,
travel,
tourists, money, television and
radio programs, trains, cars, news¬
papers, hockey and good will than
Royal Bank
to
>„
day something happens to under¬
score
the
growing Tightness of
national holiday the
week
given
•
as
as
in-
paid
The sizable plowback of earn¬
ings for expansion is reflected in
training. Fully cognithe shortage of qualified
Both personal income and retail
Record highs in deposits, assets,
sales rose
beyond 10% in 1959. loans
enda, but by talking it up. Ob¬
outstanding and capital funds
Such remarkable economic expanwere attained
viously
their
security will
be
by Valley. Bank in
sion
on
rests
strong industrial 1959.
strengthened.
It is plain that the
Loans,
now
exceeding a
union can succeed only if arrived growth, heavy military expendi- third of a biUlon
dollars, reinan
ever-growing
tourist force the bank's well
at by democratic processes.
And tures,
publicized
the last major change—Canada's business and a productive farm position as Arizona's
largest sinareacomplete political
separation
gle source of
credit.
Complete
from England—is now history.
Surrounded by a dynamic en- services are supplied through inMore than half of the residents vironment it is small wonder Val- stalment
loan, agricultural, trust,
of both nations live within 250 ley's
management
is
growth real 'estate, investment, commermiles of the border.
Geographi¬ oriented in its operational pol- cial loan and international bankcally, socially, and economically icies. The far sighted officers are ing departments. The major forwe
are
in
effect
already
one keenly aware of changing condieign activity is believed to be the
Lawrence Seaway.
nations,
stock
growth
opportunities, notwithstanding the general classification
ber
from fiat;
among the three
happen
dynamic
was
$1.00
annual cash dividend
is to be continued on the
increased
shares.
Bank Stocks
personnel
sev-
vestment
million
ally closer and friendlier relations
easily
eral
It should result from pre¬
viously established principles and
(5)
—
BANK, PHOENIX, ARIZ.
banking industry offers
soaring
......
"(4)
States
some ways
fully from Canada.
(3)
sensi¬
and
nation.
more
This Week
not
prophetic?
BURRINGTON
The
The
Canada,
Senators, would
1,679,860
brings the total stock out¬
standing to 2,099,825. A 3% stock
VALLEY NATIONAL
be
LEO I.
dividend
In
national flag,
no
BY
a
amalgamation,
the
on
outstanding at the end of
1959. The additional
419,965 sharea
from the recent 25% stock divi¬
dend
a
now
that
STOCKS
House of Commons to
correspond
to our House of Representatives.
an
share
a
shares
both
S.,
change call
the old homestead, Canada
attention to five steps in prepar¬
completely on its own and
ing the way for so radical a de¬
so independent of England, as Mr.
parture as Canadian-U. S. union.
MacLennan points out, that "Par¬
They are:
liament
could
theoretically ask
(1)
The
change
should
be
Elizabeth, in her capacity of Ca¬
understood in
ad¬
nadian Queen, to declare war on thoroughly
herself in the capacity of English vance;
(2) The people affected should
Queen." He also mentions that
"Canada has yet to adopt an offi¬ help to bring it about;
grows
$2.97
could
by Parliament.
In
legislative
set-up
Canada,
its
23
Net operating
earnings, which in¬
creased 25.3 %, were
equivalent to
BANK AND INSURANCE
members
ten,
to
both
our common
while we grew from 13 straddles the
she stood staunchly by England and
Britain; and her volunteers Senate as its
to
does,
(provincial)
and
easily ad¬
needs, in spite
of French civil law in
Quebec and
the designation of Canadian cabi¬
just to
royal
on
it
as
States'
Canadian
government
tyranny resulting
from our rebellion, and therefore
had less reason to cut the leadingtions
and
rights,
(775)
Year
% Earned
Operating
Earnings
1959
$2.38
Dividends
on
Book Value
Approximate Bid
come
1958
1.90
0.78
11.7
1.86
0.71
13.1
21
1.29
0.33
UGANDA,
41-20
1957
&
Cas¬
ualty Tower to engage in a securi¬
ties business. Lee Davis is a prin¬
1949
cipal.
♦Adjusted for stock dividends, including 19G0 stock dividend of 25%.
—
54
Parliament
13
Bankers to the Government in:
formed
Life
Depts.:
49-35
Tennessee
been
Tax
Price Range
13.0%
$0.80
>
<14.1
'v
-
St. James's
ZANZIBAR
&
St.
&
Sq.
ADEN, KENYA
SOMALILAND
PROTECTORATE
19
Branches
in:
INDIA, PAKISTAN, CEYLON, BURMA, KENYA.
TANGANYIKA, ZANZIBAR. UGANDA,
-
ADEN,
SOMALILAND . PROTECTORATE,
NORTHEE.N
AND
SOUTHERN
RHODESIA
wwwflfieBMW#wmM^w«»««a^^
i^j,Mtil„ „ii, I', rr|"^"'~^^M,*^'*l>>'mw'"**"
Financial Chronicle
The Commercial and
24
i
t
Ji
>
!
•.
is tantamount to
> •
i
I
self
f
j' •'
.
'.V1
is
IA
*
('
'
'■
■
i
t
*
*•■
.'
m
V>'.r'v :'<■
-'
*
■$■
i*
a
^<■;•■■%•
r
production, reduce domestic markets and in¬
crease the subsidies required to hold world outlets." We
must also "avoid direct subsidy payment programs for
excessive
*•'
H
\' \f
•
t r "vi
and "programs which would invite
by our friends abroad, or
which, while seeking to assist one group of farmers, would
badly hurt other farmers."
in surplus,"
crops
!)l
harmful
b'i.
i*
!' H
counter-measures
fv: it. I s
u
v
Expecting Too Much
pr
l> i-
•f'
,(
iK
of farmers, to develop
within these broad limits and he will sign
the resulting legislation even if it does not fully conform
to his own views. This, obviously, is a bit of political
tactics which we leave to others to appraise. What con¬
cerns
us here
is that the likelihood that any such pro¬
cedure as this in this year of our Lord will give rise to
■
a
r
A'i '■:••
«IV
'
•■».
,■
1
U
|
vf';
■
v
hi>-
-
most of whom must
and a substantial num¬
go before the electorate this year,
ber before constituencies consisting
'S-•;
V
|.;.lf
f . :t |
III!.; -H-
farm program
small start
even a
the road toward a sound
on
agricultural
policy is virtually nil. Neither in the limita¬
by the President nor in his own rather brief
and vague account of what he thinks ought to be done is
there to be found any basis for hope that anything more
at most than a mild palliative for the infirmities of bur
program or
tion set forth
agriculture will be forthcoming.
AAr-zAvAA'/h'At the risk of painful repetition, we again call atten¬
tion to the obvious fact that our real farm problem is
rr
simply that too many men devote themselves to farming
and produce far more products than there is any market
for. For this state of affairs there are a number of reasons.
One of them is,
of
course,
that revolutionary advances in
agricultural technology have brought our production po¬
tential to a point far in excess of anything that has any
economic warrant. Another is that through Government
interference, as the President puts it,, many
I f -|
I
I
*
i
in
I/'3
•3
\
]f,
if
their
Ff
III
I
II
H|
■V>
I
way
would have
:
1''
-
supposedly needed, for the time being.
f-
J:?1'
m
r- \
have
never
least the
•J—particularly, perhaps wheat growing—to find its own
place in a normal economy. First one thing and then an¬
n
:t
-j.
j
.
,f|
!* /' V-
u
I
1
<
the
what tariffs
ft
on
manufactured
,i
{
:
If
and
this
.
i'
i
i
I
i
,
I' 1
A
t,
*, J
i
•' l
i
'■
•
j
■'f
'
retain
in
full
flower
I
%
,
t
'
■>
•
I
f ''
—
its
supposed to be
economic growth
economic
health
and in not too distant
we
a
shall
future,
place where each sort of business
and each member of the community stand on their own
feet, and depend for their economic welfare upon their
own
initiative
and
a
Agriculture is by no means
alone nowadays in feeding from the public trough, but it
is one of the most costly of current programs of largesse,
and it has the unfortunate trait of making its own situa¬
tion worse by the very fact that it is being subsidized. We
could do worse than begin with agriculture—but not stop
imtil other broadly similar situations have been cleared up.
energy.
But where in all that the President
on
the subject of
I;
debt
generation continues. Pressure on
interest rates as bank reserves be¬
tight, accentuates.
marginal efficiency of capi¬
has stabilized with the stock
market, but as interest rates con¬
Continued from page
of
the
game
were
11
start
to
ease
begin
now
to
narrow,
Vulnerability
Untoward
to
Events
News
"peace scare." When a news
event
induces uncertainty, indi¬
a
on
clearly under¬
capital expenditures
off. Profit margins
tinue to rise,
And Capital Evaluation
this
At
poinlj, the stock market
their is extremely vulnerable to any
investments.
They untoward news event. All of the
convictions about their anticipa¬ speculative
factors militating
for
can
no
longer objectively calcu¬ favorable
tions of the future made longer
late the potential
have been
risks to their higher stock prices
range commitments. The apparent
capital.
Few investors
gamble. realized. Everyone, by hypothesis,
stability of the economy reduced
They prefer to "wait and see." is committed to their maximum
uncertainty to a large extent and
position.
An accidental
This, of course, causes stock prices equity
risk premiums fell significantly.
to fall, since, as uncertain traders exogenous factor, by introducing
The stability gave a base from
liquidate
their position, the some uncertainty, can release a
which longer-term projections
"longs" almost always exceed the large quantity of stock to the
could be made.
(The late 1920's
market where, with everyone al¬
"shorts."3 \
were
one
of the rare periods of
ready committed to stocks, sus¬
irrational optimism.)
Business Cycles and Capital
taining bids are no longer present.4
The period of
the 1930's was
Values
Even
if
no
exogenous
factor
one
hobbled by massive uncer¬
In
the
above,
we
have
at¬ arises, the marginal segment of
tainty. The outlook for continued
greater
with
Businessmen
stood.
viduals
workings of a free market econ¬
bleak. No one could be
sure that the "rules of the game"
would not be radically revised. As
omy were
result, longer-term expectations
severely discounted by high
a
from
disengage
now
has to say
agricultural legislation—or in anything
of stock
of
than
the
effective
rate of interest and the
price level
of
business
premiums. This was a period
stagnation.
Needless to say, the practical
cycle context
the
At
bottom
Once stock
under their
is
capital
depressed,
has
risk premiums
in
is
gins
as; are
thin. Stability sets in at
cycle—though it
are
usually drawn out over a number
the bottom of the
a rise often happens
After business activity
stable for a short while,
is the stability of
of
years
—
abruptly.
has been
the
and
to be in
have
a
price relationships seem
equilibrium, businessmen
set of cost and price re¬
lationships which if they assume
will continue stable, gives them a
calculate marginal
base to closely
lethargy. Never¬
theless, it allows businessmen to
start
recalculating profit poten¬
tials that have emerged
establishing
of
relationships
price
and
the recent
in
the
As
business.
in
decline
from the
costs
new
of
out
sta¬
bility continues, risk premiums
begin to drift lower, accordingly
stock prices and the marginal ef¬
re-
-
prices are somewhat
peaks sufficient time
the
for
elapsed
loss
of
the'
of" capital
increment
continuous
capital expenditures. Profit mar¬
decline
A
of
run
stock market
adjusts to somewhat lower levels.
in which uncertainty and cycle uncertainty is wide spread
premiums can gyrate is quite- i.e., risk premiums are high. Stock
wide—judging from the range of prices and riskless interest rates
measured stock yield—bond yield are low. The marginal efficiency
bonds.
has
market
business
range
tween
bull
the
steam, before the
risk
spreads, and of yield spreads be¬
on
follows:
as
the
of
for
dumped
for
risk
expectations
mere
price appreciation (rather
value) eventually gets
the market by "tired
longs."
In one way or_ another,
it is just a matter of time, once
a
whole
demand,
the
as
economy
through
for
held
stock
tempted to integrate stock prices
capital values in the context
and
goods and services. The above
relationships can be placed in a
were
gains to curtail effective demand,
production
begins
to
slip
and
profit margins weaken further.
The long-term stable outlook is
shaken, conviction is lost, uncer¬
tainty sets in—risk premiums rise
sharply.
Stock
prices and
the
marginal efficiency of capital, fall.
Now, not only has effective de¬
mand lost its capital gains incre¬
ment, but it gets hit with a sub¬
traction
capital losses — with
similar multiplier effects.
1
—
-
The decline, like the boom, is
self-reinforcing.
Stock/ prices,
capital values and earnings drop.
Earnings
expectations
are
con¬
tinuously revised downward, risk
profitability. This induces them to
go ahead with new commitments. ficiency of capital begin to rise.
The longer the stability of price Production activity starts to re¬
relationships continues the greater vive and profit margins begin to
the conviction that it will con¬ open up. Therefore, future earn¬
ings estimates are revised upward
and risk premiums fall still fur¬
premiums continue to rise, debt is
liquidated,
interest
rates
fall.
premiums, by definition.
ther.
making
calculations from a very complex
set of interrelationships it is hard
to
define the dividing line be¬
;
Theoretically, the decline can con¬
tinue until measured stock yields
to persist.
But the greater
conviction, the lower the risk
tinue
the
'
businessmen
Since
tain
for
are
"courage" and "foolhardiWhen
commitments are
of cer¬
assumption
the
on
cost-price stabilities existing
the next 20 years — that is
market
has
optimism.
A
by its nature,
new ideas and
irrational
clearly
economy,
to
change as
technical innovations
discov¬
are
a
crease
only
fall
can
on
the
basis of irrational optimism. Busi¬
nessmen
act with
would
overwhelming
conviction
and
very long-term projections
and commitments. Measured risk
would
premiums
these
However,
based
an
on
what
can
fall very low.
convictions are
unrealistic appraisal
be known
economic relationships.
disillusionment
rise in
the
almost
always
While
comes
fast
risk
premiums is
much more rapid
decline.
the
than
mistakes
made.
were
The
the
workings
of
rising
uncertainty on the physical pro¬
ductive mechanism
are
not
al¬
clearly available to us,, in
the speculative markets, the re¬
sults are rather blatantly obvious.
An
increase in
uncertainty al¬
ways
most
invariably - causes
stock
prices to fall.
Stock prices will
fall
for
monetization
when
there
example.
doxically,
they
is
a
war
Seemingly
will
fall
scare,
para¬
also
bond yields.
prices, and costs and
prices re-established at the lower
levels, profitable opportunities reemerge.
The rebirth of the upphase of the cycle requires only
a
recognition of this fact.
depressed
generation from
of these capital
capital
ex¬
the financial inter¬
especially the banks,
the supply of their
claims. But they will do so only
on
pressure
mediaries,
increase
to
at
In
both
in
fall
yields
stock
yields
'
rising phase of the
This
;
on
the
into
as
are
further declines.
a
realized
versus
being pulled in opposite
directions, as risk premiums under¬
go
on
losses
accentuates
now
order
back
rising interest rates.
bond
Finally, with capital
at
assets reshuffled among owners
penditure financing, being to put
to
get
If
we
that
cycle
economy
the paper
capital values must ha
the assets
and
hands of
new
the new, lower cost
,
the
sound footing,
reshuffled
owners
at
estimate.
for the moment,
prices remain un¬
assume,
consumer
unit labor costs re¬
and
changed
will continue until the fall in risk
main
premiums slows and the stock
yield - bond
yield
spread
ap¬
proaches its "natural lower limit."
The still rising rate of interest
in market values of capital
yields)
(bond
now
decline, in
further
aside,
(leaving
secondary effect on effective
demand) will mean that the losses
prevents any
stock
yields.
taken
the
expectations,
at- this
(risk premiums are low)
projected far.out at
by
the
capital
original
assets
propositions."
of
levels.
are
Further
difficult to
upward re¬
come by in
is
lost
(it, of
function
of
course,
the
rate
gains
had been
of
The
of
"one-shot
owners
new
owners
the
as
realistic sense. Thus, - with
yields and earnings expectations
flattened out, stock prices finally^ ;
stop rising. The increment to ef¬
any
fective demand from capital
are
capital assets, acquired at
substantially lower costs, will find
themselves in the same position
been
visions
for
a
the
point,
have
major fall
assets
the moment,
unchanged, then
Earnings
high
the
demonstrate
will
Ul¬
of the future
timately the facts
and
about fu¬
debt
gains—and also from
seeming
make
that
The
tures.
the
rise to their "natural limit" above
begin to induce an in¬
in
consumption, expendi¬
finally
The
Thus, there would seem to be
lower limit through which risk
premiums
of
|
Stock prices begin now moving
strongly
higher..
Capital
gains
ered.
ture
either—get back to
"i
'
were
country is to continue its
somehow, sometime
r
farming "as ;a way of
goods
per¬
hence
assets—and
manent
Stock and Bond Prices
politicians
costing them.
-
I,,
as
f
I
,
have been tried to maintain
of the Twenties were fond of
saying. And then largesse has become a "way of life" in
all too many instances. Pension scandals of earlier years
gave way to soldier bonuses and finally to GI favoritism
at the cost of billions upon billions of dollars to the rest
of us. Shipping, mail transportation and, in one form or
another, other subsidies gained enormously in volume.
Farmers ceased to demand supplies unburdened by direct
or indirect tariff costs, and instead pled for help to offset
life"
"built-into"
being
still
are
tal
made
been willing, or at
politicians have never been willing, to permit agriculture
other
gets
The
ness."
Unwilling to Accept Normalcy
we
halt
a
come
tween
«i
Since then
to
come
integrated into "permanent
as¬
sets." However, past capital gains
with
year
has
eration
has said in the past—do we find
to respond to the President's urgings
anything really constructive.
this
gress
into other occupations where their products
a normal market. We have always been defi¬
nitely physiocratic in our political oratory and in our legis¬
lative tendencies, but it was during World War I that positive action was taken to stimulate production needed, or
#•■!
:
farmers have
persuaded to remain in the business of farming when
other circumstances they would long ago have found
been
J
'b I.
'
Thursday, February 18, 1960
.
effect, he calls upon Congress,
In
{>' j?
hk
tj$,
.
suggestion of understanding of, these basic facts.
be an optimist indeed who expected Con¬
a
vague
i|
i
*k
a
.
And he would
rightly says cry to heaven for correction.
Yet candor compels the statement that the President's
tale of little meaning though the words are strong.
to find and enact a solution—subject only to very
reservations, so vague, in fact, as to be all but
meaningless. To gain his approval price supports must be
"realistically related to whatever policy the Congress
chooses in respect to production control." Price support
levels must not be so high as to "stimulate still more
4
}•
"i ■«
11
even
him¬
gress
'H:
■
/
■
Continued from page 1
neglect of conditions the President
Having delivered himself of these excellent observations,
he, in this, an election year calls upon a Democratic Con¬
'f "''
i1
else that he says now or
%
;<
,.
AS WE SEE IT
■;
.
(776)
i<
>•'
*^^w^t"^'mai^>w''''w*'*'''"*^^
a
increase
the former
to
with respect
consumer
owners
prices and unit labor
Thus, they will receive the
same dollar profits figures.
How¬
ever, if the dollar profits figures
are
measured
against their cost
of
capital, it will be seen that
there has been a substantial in-
costs.
*
in stock
take
fact
prices). It
several
that
the
may,
months
capital
however,
crease
in the return to capital,
the ^Obviously
then, one means of in-
before
gains
gen-
.3 But
consistently,
spectacular instances
there
have
been
of price advances
based
on
uncertainty when
shorts ex¬
ceeded the longs, e. g., the famous North¬
ern
Pacific
century.
corner
at
the
turn
of
the
-4 One can look at the process of rising
stock prices as the gradual shift of the
investing public from bears, to bulls. The
bids
to
are
are
bulis.
no
stock
generated
When
market
by-
bears
still
converting
is bullish there
bids tor project. the
higher.
everyone
underlying
Number-5926
Volume' 191
..
.
Th4 Commercial and Financial Chronicle
^capital;4is'strong dampening drag
creasing; the Teturn-to
one-shot destruction bf eapital yields.
market values, ' other "things re¬
:
a
■
stock
on
,
maintain
!o'ther 'things don't
remain equal; A "drop, in capitalThe institution of a managed
values does reduce effective de- currency to "meet the legitimate
mandJand curtail dollar; profits, demands of business" has introHence, it is only when the second- duced a money supply sufficiently
ary
effects on effective demand flexible to allow speculative capof falling
capital values peters ital values to have free reign
that, the new more profitable-within
their
"natural
limit* »5
out that the new more profitable-within their "natural limits "s"
Of
course,
of
values
.
25
instruments^
debt
some
We would
Change^ Allowed by Managed
Currency
maining
ket
at least in
; : ; :
.
(777)
>
years;
^-
certainly not wish to
the
that
marginal
pro¬
consume! out of; these
pensity to
capital gains is anywhere near ;
that out* of inc°me> although
BY JOHN T. CHIPPENDALE, JR.
studies of wind-falls in income
receipts do indicate high marginal ?
consumption expenditures.
:
Nevertheless, it is hardly likely —unless one wishes to postulates
—unless one wishes to postulate
capital cost, picture, emerges.
The debt generation reouired negligible
increments and de- Even though there has been some ready been seen. It has been more
The extent of
the downward to
sustain
increasing
capital jrements to real effective demand profit taking in Government is- and more evident with the passing
phase of the cycle depends in values must appear to the Central
^om
f
vZJ?^?lUvS°n 1* +iSe f® around most areas of time that returns on Governthp ratp nf caDi-' Bank
lpfbtimntp
Bank to hp legitimate hncinoec changes that they had to be a of the financial district is that ment obligations had gone -to
to be
business
large measure on the rate of capi-
•
nn
mPQcnrp
securities
^
which
levels
indicated
that
the
demands. The financing of ris_ very significant factoi in the f xed-income bearing
inff
canital
vahiPc
hnc
nnt
hi*,
magnitude of employment fluctua- will do better as time goes along, bond market, and this includes all
fective demand). Presumably the ing capital values has not his
tions during these periods,
.a
The demand for not only the kinds of fixed-income bearing obhigher the stock market gets at torically^ been
; The; fact
concentrated in
that in recent years short, but also for the intermedi- ligations, had been overdone on
(as reductions from ef-
tal losses
rJ;.:
Prp.nmahlv
thp
declinek requiSHo ^tSn^to"nhrmai"'
tb-^sljto'
^
^
Seater
greater
turn
they havd,iv
to
make
distinction
no
top
the
But
only push the required debt
re-
historically suggest strong specu- tractive short-term and middle-
/Z/pansion
into
and
cycle.;
mate„
the',,flpab^levpl -.^f ,|^tprest
rates. Thus, if the banking system
demand
,4-
will race
needs>
genera-
on
..
money
resistance.'fpnrj
tend
the
,
stock
might be argued that the change
in tax structure since previous
periods of low yield spreads has ties, there is still
distinguish beof
capital
forms
.
Any
supply
fppH
feed
fn
to
stock
mcrease
managed
rency
mand
attempt to rationalize cur-
--*-1
J
the
for
intermediate
The
Th
meeting legitimate business needs
becomes an engine of cyclical in-
lationship between the general
price level and the level of interest rates. In fact, a period in
which there is stability of outlook
is almost by definition a period of
low risk premiums. That is why
commodity price inflation ex-
Z .'
;
Those who
claimed that the fa-
*
certain?y nuking ^prcmer
fi-
blown,
full
above-described,
nancial decline.
—'
"
-
"
Generaljmplications
r
present worth
in
cycle
ness
0en0AiqUv
nfoe
ri*k
If
-
a
the
whUe
xai
the?t^id^n
values
iidve
appears^xo nave uw i.
the tluctuaiio
in
gone
marked
a
fluctuations
has
It
stock
capital
in
s
good
a^
simply
1
•
—
_
1
_"l__
_
cator
1- •
•
j.'
1
reflects
rather
111H
'•-
not
a
1
economic
been
periods,
stock
market
have
There
course, when
declines were not
not
-
But
induced,
as
get
it may
can
de-
sejecyve
find,
We
periods.
to
amounted
stocks
ferred
rV T0
Product in
forthcoming.
vpcprup^"
in
historical
nrp.wnru
not
economic
....
the
t
cnnipwhat
o
ipT
context..
manpy
ThP
The
-
.
,
mechanism
bv
vnlnp*
for
the
the
well
i?monthsatf0rom
months from
12
nanir<?.
:*
"Va
•
Gross
_
£1
iKc/
^sirri^ixr
roughly 45%^of
approximated
+
National"Product;
«•.,v»^r«A
twnvD
In
thou
1931
enw
hilwL
stoCkgmarketScapital
.
which
wpre
specuheld
in
PmHnrt
® a
,
I
Sold
laUve
•
with
values wer^
•??",
with
;vv
standard
nrevented
snecu-
from
realitv -S
irom
reaiixy
.disastrous
conse-
fHehtc
§
their
■
que^ces. rAn^-aItempt jtpr bid Up)
a
meager
the
[n
amount of opinion
great
that
district
financial
drop jn the return
on
the
f
These
estimates
i"
nrit
n
hand,
interest
nnvf
in
making the rate of return attrac-
re-
nending unon the needs for credit
penuiiig upun uie neeub xux ueun
financial
i
%
■»
rigidity of the policies of
Federal Reserve Board, the
opinions are strong that the over-
signifiliquidation
from
l-
all peak in
nrem
rise in risk
stemmed
money
would
Hividpnds
alVluenaS
has
rates
jt'T"
from
reopening of profitable opportuni-
ties!
likely in
al-
should
flow
-
of
Williston & Beane Adds
*
that
in
i
*4
"because
of
since
economy
better
II
Pa.—DeHaven
& Bodine,
members of
PHILADELPHIA,
some
the
&
Townsend,
Land
the
the
War
O.
World
Crouter
Title Building,
New
Exchange
Stock
York
and other leading exchanges, announce
B Barelay Kniiht is
goverZenta™ staSat
governmentalmore nounce that K. Harciay wnignt is
sta- now associated with their Philaand
a
techniques
delphia office as a registered representative.
.
6 The tax laws have made it cheaper
7 The
internatlOnal
the
t()
Named Director
change in argued that therefore the financial
contractions
of the past
cannot
lssue
b°nds rather than stock and
have made it cheaper to receive dividend
income
rather
than
interest
income.
These, of course, would have the effect
to
x
dp
funds
bear stock mar-
a
To
some concept of the sophisticated business community,
have somehow projected our■ dimensions involved, the return of. we '
-gtock yields to the historical 5%
sluck w
yicxus lu mc ihsluiludi 070
selves into a 'New Era'." It is
.
feresf rafes
watched closely to see what it will
SXOCK
be substantially greater.
*
wlthout any
tbe £ Sterling
dEriglind^^re^eing
*n England are being
'loss* in"^*Ditai "values With DeHaven, Townsendl
the
bilizing
_
Increase
2er has been added to the staff of
t
p.
ono Ca„'V,
divT ^ R. Williston & Beane, 208 South
fall and
xaii anu La Salle St* He was Previously
Alexander Kleine & Co.
aeiiaxe
in addition
quarters
^^ in
early
deterioration and prevent an
level
British Bank Rate
The increase in the British bank
^toek
deflate
WOUia
K has been maintained
values
__
ciencis, in addition/should
dends,,in auuiiion, snouiu toll and
^
88 W0Uld be
most
P^yent a liquidation from oc- woiid
the necessary readcapital
tlme*
CHICAGO, —.
111.—Herbert ~-ooDeggin-
dends
bv
Ut
could be argued that any attempt
cumng and
justment in
JYhl^h 1S not being forecast at thls
(Special to The Financial Chronicle)
j
__a
of the belief that bond prices have
been unduly depressed in the past,
if is n°f believed by most money
market experts that the level of
interest rates will go down too
much, unless there is a return of
depressed economic conditions,
the
the like
and
than taking gold out of here. In
face of this situation, and in spite
mamf monev market special- tionat*P°sition
Th
.
re-emereence
of
o e
xo exuoxgcxice
m
speculative forces during the last
reoccur,
dpCade
sueeests
that
®"fges^s.
-manifestation of the
the
latest
S
New Era
Will be put to its
fn mar- •-»«*•«» •« risk •»«*? <• So-called severest, test in the years immZ' to the fall in
in
premiums.
qi.oqj
.growth stocks, which depend for their mediately ahead.
♦An address, edited for publication, by
5 Although some argue that^ the -Fed current^value on
e?1 Z'
ecC' Par would tf0 shifts
0 t!f be chittt
of course,
other
short-term
ists that short-term rates will continue to move up and down de-
be argued that so-called
relate to stock only and do not
long-term real capital
ick up additional changes in real
productivity. The pre-World War,.estate unincorporated businesses, of i^werinar the yield spread
?,;!
line,
demand for Treasury bills
and the
^revesto
undesirable.
gains in 1958
phenomena, but rather appr0ximated 28% of Gross Na-exogenous
lative ranitnl
novel
any
any significant
ims could u^
be
by
in
nhoncfn
fho
thesis,
of
course
also mid_1928 to mid-1929. Conversely,
places the institution of the Fed-. durjng calendar
year
1930 the
eral
Reserve System—of "man- faB jn market value of - stocks
were
than
somehow prevent any
,
,
This
ai?pri"
self-
some
,^^+^0+00
the
On
was being done
instances by the owners
some
This
.
..
stabilizers
bujit-in
excess
different
in
economy.
—
supply, and hence no accelerated
contraction
in.
production, and
was
than
»
cant
un-
all
for
refunding which
pre-
formulation in terms of a "mixed
financially
.^se capital values, we have in th&
made
1946
1946:mates,o£ the change
the
effective
deflated
employment
1920's
risk
advancing
rapidly
rather
past
UlirstUl Ji'Salw: tX?mP!eVtharrommonaSand ^?e"
®n
of
uxi-"
ket value of common and pie-
demand
low
idea of the po_ taking piace.
it seems hardly
tentiai magnitude of shifts in efr Hkely that the deflationary forces
j
fective demand from changes in which would be set under way
To
hnsinecs
ivg
In
have been snecial cases.
special cases.
In
the
stock
market
decline
doubtedly
while
induced.
of
exampie.
for
was
development
fixed-income issues, whether they
be Federal or otherwise.
\
JI
the
was
/\iv»
/s
much fear
h^siness eontractlOns
GQnfractions
followed hv
f°"™ed by
late
the
of
sensitive to commodity price in
flation exnectations hardly moved
flatinn expectations hardlv move*
^forecast.but ment of expenditures w'ere not so
activity.
n
j
-i
issue
modity prices were stable. More-
issue of people losing
an
(<!
'
•
.
crucial- determinant--of
a
-1946,
'
i-^i
_
_
{<in_
confidence — they were actually
'PI/«iv»4nil
significantly poorer. Their curtail-
our
i1
It
demand.
effective
business, cycle.,
of-the
n.
—
"old
had
miums, are no longer necessary."
thesis, the historical lead
of stock prices as a cyclical indiIn
of
period
valu^v:;::>;;The resultant collapse in capital observing is more akin to the
that t^ values took huge chunks out of classical speculative periods of the
been
has
market
-
period
a
assumed
been
forecaster
was
Qne
_
tQ
necessary
wag argued> "the
business cycle
^g dead^ the insurance, or risk pre-
to have under¬
increase subse-
appear
i*
Government
sure" oneself against future sharp over, the common stocks which pushed down the return on this
S-- dr°Psarcniprf "thp hnsiness pvpIp Presumably pommoditv the most kind of issues, but there was more
in earni»gs- But now^ U <;pnsitivp to would be nrice m-
relatively stable,
values
This
which
normal
more
level, following the sharp decline
the
re-
10 times earnings for
stock.
-n
bagis„
longer
no
a
to
capi-
have
to
iu
appeals
was
g
good
^
cycle since the Civil
business
i^
^bai;
^
the history
views
one
been
significantly,
then
risk
miums were properly re-evaluated downward.
It was argued
duced
intermediary, especially
assets to changes m demand to
them.
had
getting back to
favorable
V
appears
1950's was a period, of high risk tion, there were repayments by
premiums^ and expectations of the Government of obligations iscommodity price inflation. It has sued by one of its agency accounts
been aueged that the current and these funds, according to adstock market boom is the result vices, were put to work in Treasof commodity price inflation ex- ury bills, some of which were in
pectations. But all during the 1958 the longer maturity range for this
and 1959 bull stock market, com- type of security.
fluctuations in
was argued that if
corporate earnings
market
money
fi#ve enough to the owners of foreiSn balances so that they will
miums and commodity price sta- of the securities which were just keep these funds in short-term
bility. The late 1940's and early paid off by the Treasury, In addi- liquid issues in this country rather
The
was
a
„
mmms,
tion of the sensitivity 01 nnan
induced
currency
presumablytoirrationallevels.lt
nrp-
and especially
sk P
with the magnitude of t
cychcal fluctuations being a
timates,
been con¬
institution of a
the
by
*
es-
be
«««
managed
above
The
sistent with low risk premiums
cycle had finally
trolled
description places
initiative forces of the busi-
the
wide-
belief '
spread at the time, that the .business
The
Th'e
evaluation
the
in the yields of Treasury bills rntes cannot go down too much
which was attributed to unusual in the United States since the in¬
circumstances that are of a non- ternational position of the dollar
recurring nature. One of the rea- must also be protected and mainpectations, with their distortion sons for the recent heavy demand tained. +V"»ic* icone of the ways kiV
And
in
in/4
svtn4
for the shortest and most liquid which this is carried out is by
°f profit expectations are not con-
early stage in the up-phase nious policy of monetary ease by
of the cycle. The subsequent de-- ^be ped jn 1927 Was the spark to
cline will clearly be less severe
ibe 1929 sneculative boom were
almost
and of shorter duration than the
very
-
inS» since the monetary authorities would beyond question make
changes in policy which would
Treasury obli-
Dissipated
consistent with the historical re-
interest rates, the stock
price rise with its multiplicative
effects will be choked off at a
stability.
term
alter
supplies cash only at sharply
and
higher
Wlth the inflation fear deteriorat-
issued
gations.
x.
«.
*
*
sizeable de-
a
recently
existing
program
of
rent yield spreads as reflections
of inflation expectations is not Abnormal Money Market Factors credit restraint. This would be a
Thus,! a curthe premise of
on
some-
what
necessarily would
mnitai vainpo
anH
capital values and
market.
comparison
the
changed
i
the
in
term Government securities. An interest rates is concerned, it is
enlargement of these purchases important to remember that the
will have a favorable influence downtrend which has been in eviupon the price of the aforemen- dence recently is not likely to go
tioned issues.
too far on the down side. There
; in spite of the fact that the re- *s no question but what the cost
turn on non-Federal bonds is of obtaining money and credit
more attractive than that which is could decrease with the business
available in Government securi- pattern
turning defensive and
spreads have moved to historically
low levels is, of course, consistent
with such a concern, although it
exist-
and
Thus, the Cen-
cannot
various
credit.
system is "tight"
If the banking
Bank
tral
™
,
business
tween
.
finally
run
into .^the,
described above.
loans
price fluctuations.
r
tor
fully, stock prices
sharply higher uptil they
it
claims; on
between debt
As far as the future course of
Native forces), would lead one to
definite
be
to
Interest Rate Prospects
•
be concerned over the possibility
of another financial decline. The
fact that stock yield-bond yield
Al-
areas
unfortiinatelv
are
aDDear.
^on |0r mortgage
ex-
ing hQmes debt for other «legiti.-
the-rapidm^oi rise
accommodates■> the
other
though the data
^Athe ;^^,de-
by
termined
^ S,d6-
short-term interest rates (which tions is being invested in the at-
the que^tjpn^of:j^clical
Qr
tbere
instability reststW#ty-the extent, correiations
"boom'Vphase jo|^the
'SfS
tailmen/"of^ZZrsZoZs ZiTl
Thus,
of the
have again seen major-.gains ate and long-term Government the down side just as much as the
the United obligations, continues to increase, stock market was overdone on the
jn capital assets both in
between
newly produced or newly marked
norma^t.,;^
.
lustlin eapftlfvlluls
demands to
fepei-y the1 decline
in economic activity.' Or, jalternatively, the.
the
tremendous rise in Price-Earn-
psychology
Directors of Eastern States Corp.
.
have elected as Directors Curtis
E.
Neldner
mann
to
and
...
t.
.
Kuss-
on
the
Board.
Mr.
Neldner
is
a
—
,,
E.
James
vacancies
fill
White,
'
Weld
Kussmann
&
Co.,
'
partner
in
while Mr.
,
is
associated
Regis Paper Co.
with
St.
!sf#0»mm«mwmwul«ww*
wmnvmm* **<*••
26
j' ffifw
tmm^
—
* " 1-1 .i»«w«* »>iwwimmmmmmmmmmmmm
The Commercial and Financial Chronicle
(778)
about 3%
'!•
t
>*
V*
f|
•<.(■*;
tv
i
■I
*-
■
What to Expect of 1960:
•"
An Economic Forecast
tories.
Thus, in spite of secular growth
expansion that the economy
should enjoy, there is almost a
built-in situation that will pre¬
vent
and
increase
continuous
a
readjust¬
But, in spite of such in¬
bring about periodic
ments.
periods of disturbance,
a depression proof
economy that we may look for¬
ward
for
the
present
decade.
tervening
almost to
it is
t' ik
VJ
I
1 t" t r
not at
are
Average family income which
risen
about
50%
from 1950
1960,
the
the
seller—including the one
with administrative influence—to
duce the
seek
higher
a
be
Thus,
of
increase
an
1958 and 1959, is
of
increase
reduced to
Among
real
a
doubling about
continues, this
of prices
25
every
years
substantial gain for
mean a
family, in spite of in¬
the average
flationary influences. Its real in¬
come,
in 1960 prices, a decade
hence, should be somewhere be¬
tween $8,000 and $8,500, annually.
is
It
unrealistic
not
ward
to
tween
and
3
of
rate
a
look for¬
to
growth of be¬
4%,
on
an
annual
basis, for these years.
f'
Effect
Inflation
on
year
that
be expected to take
can
this
be
about
of
47.3
1960,
cents
and
the beginning
at
be
can
expected
to
decline to
about 46.5 cents by
the
year.
Measured
the
end
of
in
terms of the consumer price in¬
dex, this indicates a rise from a
level
of
125.6
(1947-49—100)
at
the
beginning of the year to about
127.5 by the end. Increases may be
for in the prices
looked
ices
the
is
of serv¬
in
the index to rise
peak during
cautioned, that
a
as
It should
1960.
be
level which
peak
two
or
the
points
might
be
industrial
in
of
manufacturing, mining,
processing. These
gains in
and
total activity of 6 to 7%
should be
evenly distributed among
significant sectors of in¬
dustry such as durable appliance
manufacturing and furniture,
aluminum, chemicals, textiles,
ateel,
machinery,
and
general
equipment.
The' steel
industry
fairly
the
more
which has
of
cess
rated
a
tons
ex¬
will
'ull blast to make up for the strike
taxes.
Rents
should
operations
change.
Food
headed for
household
and
show
prices
little
may
be
drop during the year.
An increase in Social Security tax
rates
a
of
as
January has hit
every
wage and salary earner as well as
the
ffects. But,
of
vear
rate
The
were
of
going
total output for the
130,000,000 tons can
The automobile in¬
a
some
expected.
billions
JO.OOO
imports.
of dollars.
Causes
of Inflation
Item
Estimate
.
National
Gross
Consumer
Product-
Business
Let
these
view
now
..-.•f'A-A"
•
com¬
specifically. Con¬
spending is estimated to
gain of about $17"'billion,
Typical
this
explanations of inflation
presented in terms of both de¬
are
mand
pull and cost push. At the
present time, there
facets
of
the
are
economy
forces
behind
aside
from
exist
in
price,
the
the
furniture, automobiles, and
wares,
do-it-yourself items. The increase
should be spread somewhat
between hard
goods, soft
of
evenly
that
steel
the
strike. And, these should be ironed
out
as
shortly. But,
day
are
with
the
cost
creases
important
price increases to¬
of
cause
a
be
to
able
10%.
of
rate
a
growth,
than
more
indicate
to
but
factors
nercial
Unusual
Gross
Inventory
Unless
in¬
Let
the
increase
in
price.
stemming from cost ad¬
be expected
can
numerous
to follow
wage contracts that
scheduled to be signed in 1960.
The
fight against non-inflation¬
for the
duct for
of
the
settlements that was one
keynotes of the steel dis¬
pute
seems
to
have
been
com¬
promised by its settlement, al¬
though the terms of the settlement
are
i
t
J
.
influence of in¬
creased wage] costs
may not mani¬
fest themselves until near the
end
of the year.
■<,.
.
-.
■»
such that the
?
>.
J
Another popular explanation of
inflation
attributes price to the
desire
on
the
v
J
to
achieve
a
part
of
the
seller
certain administered
markup that provides him with a
set profit. It is then pointed out
that, in view of the fact that any¬
where from 75 to 90% of all prices
*
'I
gross
1960.
value
for
meh, there
at
Analysis
some
all
given
are
a
con¬
that presents the
of
a
esti¬
national pro¬
The GNP is
measure
narket
goods
period.
numerous
and
As
techni¬
cal details involved in its calcula¬
tion and
However
assumptions made
specific
components.
many
concerning
are
ary wage
look
now
us
mates
Product
erroneous or
vague some
of these
presumptions may be, so
'ong as they are consistently made
one year to the
next, comparisons
are
possible.
complete
assumed
the
"480
year
GNP
data
are
not
for
1959, but it can be
safely that the total for
will
billion,
representing
be
approximately
current
dollars,
in
an
increase from the
$441.7 billion of
1958, in 1958 dol¬
lars. The increase of $38.3 billion
between
the
The
1958
and
influence
of
influence
of
1959
to
item
cautiously
unusual
will
since
reflects
it
inventory
handled
be
must
situation
th°
that
the first half of
This factor was
responsible for a lower figure in
prevail
for
1960
correspondingly add
inventories are replen¬
as
ished. Rebuilding
lion
price
price
depleted inven¬
This
billion.
the
billion,
be expected
by about $4 billion to $38
rise
can
still
of
sectors
remains
business
one
of
of
be¬
$2 billion after-
dividends
increase in
about
These
billion
a
dollars
can
rise by
may
of
between
to
level
a
$14 and $15 billion.
optimism 'that
the unbounded
present during 1959.
have
rities
Many
bid
been
out
was
secu¬
of
pro¬
portion to their yields. Investors
are taking a wait and see attitude
in many instances:
such
Glamor stocks
electronics have been
as
un¬
in recent weeks and this
might continue for some
time. Borrowing has become cost¬
easy
trend
is
ly and money
tightening of
a
drain
the
on
and
ness,:
as
busi¬
exert
a
earlier than
Part of this
expected.
intentional..
an
of
could
pressure
otherwise
The
act
may
advance
even
downward
is
expensive.
money
policy
the
of.
4
Federal Government and the Fed¬
eral
Reserve, working
the
on
as¬
sumption
that
brakes
applied
against the money supply might
slow down activity/but they also
stem
the
inflationary pressures
that
might cause more
serious
problems in the longer run.
A In summary, thus it appears
this
early time, in advance
at
of
actual publication of many of the
final
figures
will be
a
year
for 1959, that 1960
that sets records in
economic areas. But, in no
will it be. a year of un¬
many
way
bounded business
the economy
One sector of
does
not
still
further
dnllarc in
propor¬
another
by
•
billion
I960, declining ib some
~
.
unstabilizing
least
no;
share
to
stand
tha4
: *VU„
among
•
ultimate
of
effects
settlement!
strike
the* steel
However, this
much
appears certain — that the
will show enough increase to
year
compensate for both the infla¬
tionary advance in prices and the
average
rate of growth,, and then
have
;
little
a
extra
remaining.
The Outlook for Utilities
Continued
from
page
that
7
Stock
Industrial
Jones
-
in
3
out
the
of
12
years..
activity
vigor
portfolio outperformed
Industrial Average in 8 out
the
of
the
12
For the full pe¬
years.
far
back
the projected
hardly do
fact,
1960
the
resumed
as
will
1955.
figure for
than
more
the
levels
that
had
hoped
to
match
neurs
as
entrepre¬
achieve in
mid-1959, before the steel strike.
Total
purchases
of
services
lion.
This
excludes
figure
gov¬
ernmental transfer payments such
interest
as
public debt, various
of
types
subsidy
the
in
on
pension payments, and
outlays.
Since some cut
military budget may be
expected, the Federal outlay
drop
Hightly
to
a
mav
The
be
in
component should
during 1960.
balance
Imports will increase, but there is
a
great
oossfbilitv
will do likewise.
\h?.'
"vnorf
Less barriers to
of
industrials
•
and
•
-
-
out¬
can
averages over a pe- '
riod of time. Because of this wide >
appraisal
of
the1
as
group
perform the
compared to 374.3 for
the Industrial Average.
566.6,
performance,
decided
in
.
power
that
>
the two
ex-
earning
market places on
there :
difference
.
tremes.
The
reason
for these result** was
some
that
became convinced
electric
companies,
contrary to public opinion, could
be
classified
as
strong
growth
early
we
that
many
Recently I received
very
fine
investment
long
b~t 'of
Although 33 stocks in¬
companies.
from
a
hou*e
a
st.ocks."
cluding
of
one
electric
going
through
.
find
could
not
was
group.
these
-
only
one
In
stocks
I
the
in
utility
pipeline,
gas
a
there
listed,
were
of
out
two
ings
for
earnings
the
twice
industrial
utilities
rate
the
past
growth
ten
the
stocks.
We
that
an
that
is
have
Dow-Jones
own
had
a
eight
faster
of
growth in earnings than
Eastman Kodak, Scott Paper, and
of
most
the
wv»e*i
It
utilities
whose
that
evident
there
are
record
from
Overpriced
defensive
and
utilitw"
supnort thr
many
would
as
should
earnings.
such
Florida
as
runs
up
feel
it
thinks
still
-
of
homogeneous group
a
18 times
sell
When
Power
at
15
to
utility
& Light
a
*
:
to 23 times earnings, they overpriced. Because of ♦
is
its relatively strong growth
po- [
tential, I am confident that it is :
not
overpriced
to look
if
is
one
willing
bit into the future.
a
Th" 1960-1961 Outlook
a*""
sluggish, and wiV
do
relatively poorly during in
flationary stock market condition**
However, it is equally evident
I
Particularly in the market placev
is
it
true
what
that
the
it
facts
is
are
public thinks they
not
as
are
much
so
what
the
that is im¬
portant. Because the concepts that
I
have mentioned
are
so
deeprooted, they have had and probably will continue to have a restraining influence on utility com¬
mon
stock
prices.
However,
a.
slow change has been
occurring
,
,
the
over
past
few
years
and
I
think this will continue. More and
of
more
the
funds
coming
into
the market
are coming in through
peension funds and mutual funds
both of whom
employ analysts to
the
economic and markettrends.
These
analysts
for
the
most part are, intelligent
people,'
and
the
popular concept that utilities
public
stocks
study
chemicals.
Stocks Are Not
is
the
th$
years
trend
of
rate
Although there has been
fanning out of price-earnratios during the past two
years,
trend than Florida Power &
whose
foreign
about
be expected, to
billion to about
a
in
level of about
$53 billion, but the state and local
best
a
at
large
of
that, because
of their superior earnings
trends, can keep pace with the
variation
shown
In
not
had
is
should be
level just slightly under $100 bil¬
it
there
selected electric utilities
riod, using 1947 as 100, the index
of our utility portfolio now stands
goods and
by all units of govern¬
ment might increase by about] a
billion dollars during 1960, to a
has
that
$46 billion.
growth
an
billion
thirty-three that during the past
ten
years
had a better growth
Light.
It surprises most people to dis¬
cover that Florida Power & Light's
per
share
earnings
during, the
1950's grew at a faster rate than
did those of Minnesota Mining or
Minneapolis Honeywell, two
widely - accepted.,
growth
com¬
panies. On an average, the electric
utilities
in
our
portfolio
have
that
advances
responsible for as much
$8 to $9 billion of this
increase,
making for a real advance of
about $30 billion.
Assuming a rate
secular
GNP.
Spending for plant and equioment
might be
normal,
of
component
inflation.
as
of
this
to
component can
rise bv $lVz-2
includes
represent
$4
or over
expected.
clines
Situation
Business
about $34
National
after
With the increase in prof¬
an
be
would
almost
of
taxes,
billion
Our utility
to
services
vances
building is
the offing.
n
neutralizing the cost position, the
expected result can be nothing
an
industrial
and
com-
and easily could
Average showed year-to-year de¬
by business concerns, which now
is running at an annual rate of
increase in
some
be
can
substantial
a
$26
as
This
taxes.
Dow
ment, since
associated
the
than
may
some
high
as
much
not
this.
tories may add as much as $10 bil¬
venient
Pressures
is
show
rise for the year,
in
gain
a
possibility that the totals for the
industry will not drop as much
as
indicated by the housing seg¬
operating costs of
industry are offset by correspond¬
ing advances in productivity, thus
other
in
There
Profits
40.
to
prices may continue to show some
vigor during the year, there is not
in the
of both price advances and
excess
to
million
or
around
sumer
spending, similar"* to the
projection for GNP itself, appears
1959
1.2
about
hour
plus
econ¬
market
third of his purchases. Con¬
1959 and will
which
be
stock
budget and account for
consumer
totaled
starts,
more
increases.
in
increases
building—
will
goods,1 $33 billion. -
will continue to loom large
Housing
drop
advances,
as
home
hour.
probably
minus one-half an
an
Although
omy.
and services. Purchases-of services
industry may suffer a decline
of between 4 and 7% for the year.
about
few
which
well
of
cost
$2.23
present
The average work week
markets
constitute the
security
will
most uncertain sector of the
the
the year at least.
in
disturbances
wake
the
!i
very
significant demand pressures
appearing as the causative
any
are
'
increasing
an
the
from
for/price
tionately in the increases for 1960
good
.is
agriculture..
Cash
.income
business
for- many
suppliers of
which dropped in 1959 below tha
consumer goods, particularly con¬
sumer durables, appliances, house-/ of
1958, may continue to decline
This
and
is too high
employment.
Payrolls, on the average for fac¬
tory employment, can be expected
to rise by about 15 cents an hour
mean
12%.
of
which
4%,
to be considered full
and
1960
billions after accounting
about
"ightening
aroundd
Financial
during
advances. This should
trend.
cost of money as
justed for the year.
This means
an
unemployment percentage of
Securities
.
optirhism. Many
forces are at play,
: which
are
the
national; political." elections
and
a
in current dollars, or about $10-12
the
only of the presence of inflation,
but also to inquire as to its causes.
employment will continue to be
us, and probably will hover
around 3 million, seasonally ad¬
with
more
spending can be ex¬
show an increase of
$8 billion, or a gain of about
of
unem¬
data. The labor force,
presently consists of ap¬
proximately 72 million, can be
expected to increase to about 73
million by the end of 1960.
Un¬
its,
•
pected
Because
and
which
fore
,
A* '99
'
/
...
74
98
spending-—
us
ponents
333
_
66
.
The construction
especially the
must pay
one
ployment
506
316
spending-—
Government
Projection
480
spending
that probably will
follow
nation,
employment
increase
one
everal factors—but
It is important to be aware not
to
taxes.
1960
1959
industry is
self-employed.
heed
and prog¬
taxes, or about $50 billion before
projected for 1960, in
as
not
the covered
the
of
ress
expected
compares
the health
measure
1959 and
a 7,000,000
including
about
year,
on
to
the
Market
■
»
go
dustry is talking about
vehicle
table
following
,
these components as estimated for
ex¬
beginning
when most mills
'960
be
the
and
goods
of
services, and the net balance
foreign investment.
over a
and
maintain
to
during
isting
purchases
not
be
transportation,
able
capacity in
million
143
general, including utilities
medical, and
personal, as well as in clothing
and
mental
show
should be manifested in almost all
to
com¬
ponents, namely consumer spend¬
ing, business r spending, govern¬
sumer
production
convenient
become
has
analyze GNP in terms of its
during the last quarter, as
completely stabilized by then.
areas
is less
than 1%. Here, we get an example
of how effective inflation may be
in dissipating some of the fruits
of growth and development.
ex-
inventory situation should be
Gains
pro¬
allowing for these forces,
can
expected somewhere during the
third quarter, and not an average
level for the year. A decline of
its toll not
only during the decade
of the 1960's but in the year 1960
as
well. The dollar, based on its
1939 purchasing power, was worth
160
about
to
the
$506 billion, or an increase from
1959 of about $26 billion or about
5%. However, if we apply the ex¬
pected inflationary rate of about
l%-2% to this figure and account
for growth factors of about 3%,
the real increase in GNP, after
It
as
measured
production, should
cause
of
analysis
jected GNP for 1960 may be made.
GNP for 1960 is projected at about
.
increase of about 6-7%
an
should
oected
have indicated already
inflation
; :
•
during the year. At the beginning
of the year, the Federal Reserve
index
of
industrial
production
stood at 150, based on a 1947-49
level.
The
increase
during
the
one
We
'
activity,
industrial
If
pattern
Pace
..
to
Business
similar
A
Indicators
of the other eco¬
some
Uncertainty in
Europe
in
nomic indicators that may be used
3%.
about
Thursday, February 18, 1960
.
;
Economic
Other
between
9%
some
appearing
are
.
and in the Pacific.
attributed to this
what appeared as
.
Overall Industrial Production
by
would
lower price at
or
given time.
a
has
1970.
that the historical
assume
in¬
is that cost pressures
case
witness
we
especially the effect
market,
of substitutes. What is more likely
$6,700,
approximating
now
not take
of
price does
administered
into consideration the influence
should be close to $10,000 by
U
price. However, it seems
present
somewhat naive to assume that an
and
will
administered, market forces
all responsible for the
are
3
over-expand their inven¬
duced to
*
factor.
trade
annually, about $14-$15
may
■«.'
Continued from page
f
billion
.
I
am
confident
that
over
a
period
of time their thinking on
the merits of utility growth stocks;
will
the
be*
more
market.
fully
reflected
in
Recently I have had
representatives of insurance com-'
panies, pension funds, investment
companies, and foreign investors"
«r
-""..•wail's™
rnrnfftmrnvmsm
Volume
191
Number 5926
.
.
The Commercial and
Financial Chronicle
.
(779)
approach me with the "discovery"
''that utility growth stocks repre¬
the
in
Where
IV/T
incustrial
^
excessive
^-i-
^
10Q2LV S UoOOK XYXCil
1V18XK0L VELlllftS
V Cl/IOLt/O
values in the market.
sent the best
field
at
'sells
times
49
at
times
General
+
not
the
and
smaller
All
stocks.
which I
these
of
have
or
composed of shares whicn
made up of issues that
ably priced
Having
or
to
me
The
be
can
the
groups:
the
;
two,
at
It
is
but in
any
val¬
1
results.
opinion
is
recently
the
have
the
if
:
ir
of
to
inflation
are
degree.
any
likely to change at
an
For many years the
utilities
,
have
sold
more
at
a
•
growth
nually
r
about
second
star
per-
ahead
years-
are
group.
a
bedge shares
is
likely.
All
this
economical type of inflation hedge
^
one
avajiab]ie
As
I
shall
point
pojnt
in
out
moment
a
possibilities for
In
,
view
cussed,
of
this
what
several
exist.
has
.Although we may quarrel
the period used in,the.r analysis
focus'
nonetheless
pectations
upon
been
dis-
of
on
Particularly,
our
realitv
*£&
current
of
but
the
SucT
well
General
as
known
Electric
price-earnings
ratio
International
Business Ma-
rather
Sound
one
price
earnings 20), and
1958
many
well
known
Although
or
(price-earn-
year-end
I
number
a
and
respected
feel
of
t,at
these
any
issues
ouperiiciany we couia, oi
But
how
expectations
to
seems
rails.
group
as
whole cannot
a
ably be expected
to do
the
reason-,
unless
so
JgSBgSSSfcW •d.™"S
that
In
answers.
there
the first
security
buyers
rristic about the
place
the rest
of the
a considerable number
avaiiabie at reasonable
stocks
manv
are
very
opti-
of
rate
Although some of these
depressed because of special
are
many
are
nonetheless
vestment
growth
fav0rite
of the economy during the 1960s.
Their attitude suggests that they
a
good
basic
expect continuous expansion at a
rate in excess of the 4.2% maximum
the National Planning
Association tells us is possible.
Seemingly they
have forgotten
that
there
ever
was
such
a
phenomenon as a depression and
represent
values.
as
The
in
case
in
gain
of
I960. At the
import
still
ap-
demand
for
about
rose
expected to
3 to 3.5%
from
time the
same
program
working
a
Here'the
is
Domestic
a
oils, long
point.
trend
petroleum products
4.5% in 1959 and is
show
in-
sound
inflation hedge, are
an
growth
parent.
that
notion
that
periods
forever
are
Sober
satisfactorily
new
to
seems
and
be
as
a
even
magnitude
I- do
not
during
the
to
mean
of
early
close
and
his
eyes
j
'60s.
that
assume^,
the
do
not
mean
dwell
to
the
on
length,
any
vestment shares which have fallen
,
Gf
disrepute because of problems
an
essentially temporary na-
lure.
Selection
In
other
words
-Wig. -
it
seems
ledhirfes
p,„,McU In cerlsln
too it has plaved up
the
to
re
diffi-
.
£
times
..with
ratio
basis
when
industrials.
earlier, there
better
or
and
As
has
on
Maurice
the
I
in
;
'
;
next few
years.
■
.•
.
f
Newbold Opens Branch
HARRISBURG, Pa.—W. H. New-
the
exhibited
only
tioned 5%
is
soundly
like
the
out of all proportions, to addition
a
it has ignored many sound values
which
lack
0f the
more
star
glamour
are
the
among
abovemen-
real growth
: hold's
.•branch
Son
&
office
Co.
at
has
125
opened
Locust
rp.„nnin(,
vir s
a
rate.
i
a
under the management of Samuel
,W. Fleming 3rd.
wm
Boysen
is
Calif.
now
'
—
Walter
associated
& Co.
tn
.
example,
fnrP
.yffftn
paying in
N.
to
e
rate
in
11
J
vearT
L
how
of
5%
nrrtpr
50
to
result
the
at
5%
lustifv
times
cur-
,
rent dividends tor us snares, since
on ce
those
others are virtually lgnored> T.sugg.est that the .oils aFe
n°^ S0 inferi°r to chemicals in
woruld see™ '°
.cieve,
Values,"
IX,
INo.
C.
Clendenin
"Growth
and
The Journal
4.
and
Maurice
Van
Common
Stock
of Finance,
o.
prices
some
Although
selec-
not
group
3--,
^
Jf
the
currently selling at reasonable multiples of earnings. The
are
oils> food chains, and for the
^rt.in2
likelihood
of
First,
further
if
the
inflation
shouid abate, a series of corrections, perhaps violent corrections,
might occur to bring the over-.
priced
the
sector
more
11^?.
more
in
reasonably
line
priced
Convertible
Subordinate
119 0 ftr
,
^Jnver
Many
of
this
other
reasonable
are
r^v! 1 mm arJ
decline
more
rapidly.
Although I do not think that this
Convertibles
r* h™
Yf
v" eLft J^1® JSf,®*
Sh'
' S?T
bQynd 0? fh? stSk info whi?h
w
JSL'SL "2S
ver,ible
bond
.rrent
e
m
l"L
of
quaUty
martet
on
Jvtra
The
™" J!«.„ ™ nii,v
is in reaiiiy
tioymeni
a^fum ^which3"^ ^osr^s??
?
it
„
^
rhean
to
me
since
ftne of securitv ?ivet
ly£* 0nUSn7
tHs
m.nv
Protecti°n
many
inveblors aebire.
Now Henry Fncke Co.
The firm
of
name
Executive
Se¬
curities
Co., 80 . Wall St., New
City, has been, changed to
York
Benry Fricke Co.
r>
With
r»
JDrown l>ros.
(special to the financial chronicle)
CHICAGO,
is
111.—James
affiliated
now
Brothers
Harriman
couth
Salle
La
C.
with
&
Bard
Brown
Co.,
135
St
S°Uth La SallC ^
*
•
o
WolL-^v
Joins G. H. Walker
(Special to The Financial Chronicle)
ST.
LOUIS,
most inflated prices would, on the
average,
securities
available at
now
available in the glamour
even
of
they
paying
attractive
are
prices.
investors
much by
a"Out
inft common at 60.
type
members of
panic
inflation
5,?'
Deben-
4.3%> along with the privilege _of
with
part
,a*
oimilarl^ Olm Matmeson s .5%%-
cur-
once
more
speculatively inclined, the airlines
are examples' of what I have in
mind- For those with a more conservative bent I suggest convcrtible bonds. Manv attractive
issues are selling at prices which
offer reasonable yields and at the
sam.e
time
Provide
protection
against inflationary price move¬
ments.
'
^or example, at around 105 the
Phillips Petroleum 4V4% Convertible Subordinate Debentures
Pr°vide, a yield of only slightly
an5*erl ^ and
,same time
hold forth the possibility of con-
priced as well as the high priced,
would suffer somewhat. Obviously, however, those shares with the
background,
as
themselves.
suggest
at
his
For the more venturesome
investor I would suggest purchases in the stock groups which
H- Walker
spector
iose
possibilities
Thus
out.
some
judicious
leading
many
commodity price levels. Fortuhowever, there is a way
Crosb
protection against potential pricethe
Three
Dilemma
other.
almost all shares, the reasonably
.
issue
cuestion really is whether or
not to° much is being paid for
because
only.
prices of
the
°f..thet mar.ket- si"ce.be substantial
a
adjustment would
necessary,
,
In regard to the inflation
increage„
John
hedge
characteristic3 of some shares are
Ereat,y over-emphasized
while
with
*
inflation
thig respect as their market
firm would
a
nn%rowine
40
cul-
romnuted
printiniip
com nue
(n
wn
pe
E. Hutton & Co., 1309 Franklin
"St. He was
formerly with Stewart;
Eubanks, Meyerson
have
A
(Special to The Financial Chronicle)
OAKLAND,
A
For
levels
With E. F. Hutton
u
future
basis of
rpar emwth
ii
would
;
the
be
thpv
rtripoo
[en«
St.
oxoected
fbaf
groups with much perspicacity. As
the
on
doomed to always be in
background,
tion
of
dramatic of the recent
performers.
issues
the
the
to
nately,
oils
exceeding
•
„
this .fear
industries
Solution
."long-term
growth' rates
average
.
T'
'
that
indicates
stocks
fanning
IJ believe
a
P/E ratios, but
that there is room for a
great deal
^more fanning out, as utilities are
;
Although
culties of
be asked. How much inflation is rently in the limelight
may prove
expected, and what stocks con-, quite rewarding.
5% v per
annum u are
very
rare stitute the best inflation hedges?
among major corporations unless Unhappily
most investors have
The Market Outlook
better understood, before the real growth is augmented by price- formulated no clear idea of the
Having
analyzed
where
the
growth utilities become
of
price-level
movement market now is, let us turn our
relatively level inflation."* Such outstand- tyPe
over-valued. I am confident that
ing growth issues as International thev expect and they have not attention to where it is going or
investments in this area will work Business Machines and Monsanto analyzed the anti-inflation charwhere it might go. I propose here
out comparatively well over the were included in their data and acteristics of the various security to deal with
longer term prospects
out
-
that
growth record of those based and cannot be dismissed
usually viewed-las growth Tightly, still two questions should
issues
mentioned
been
found
Cleave
Van
the 25-year
compared
possibility, although I consider it
the least likely of the three.
as
in-
into
developments lie ahead.
...M,
prices
They
are
only
mentioned
examples of basically sound
possibility
favorable
firmer
subject of the oils at
such
only
to
to
pil shares at little piore than the
conventional 10 times earnings.
some
forecast
should lead
provement in the inventory situa tion, the market is pricing many
lies
suggests
recession
a
no
higher profits than in 1959,
the industry's second best year on
record. Yet despite the favorable
long run prospects and an im-
possible trouble in 1961 and per-
haps
repetition of the flood
foreign oil is expected in 1960.
0f
and
us
prosperity
reflection
result
busi-
bad
behind
continuous
ahead.
of
-
35
rently quoted at more reasonable
figures. This
also
do finite
is a
definite
hedge against both
declining stock prices and rising
problems currently besetting certain industries, in most cases,
they
should this, be Ihe eeso- « ■>•»,
Is Selective
opinion ; the market^has: v Second, we know that many
V Wefeel
that', a
utility with : ,a been-, estimating future earnings people are willing to pay high
growth rate of 10%. should sell at ;too'generously and at the same prices for leading growth stocks,
Uor.
hnon
onnluinii
;.25 ; times earnings to be in line time" has; been applying fur tnn because t.h^v fear inflation. If a
far too hftfaiisf they fear inflation. Tf a
; with the slower
growth rate com- high a multiplier to these earn-. substantial price-level increase is
panies.- .A "15%, .growth; trend yings.-In an interesting study a few expected, the prices of many lead\ should entitle the company to a >'years ago, John C. Clendenin and mg shares can easily be justified.
-same
this
problem is to
toQ high>
two
are
withLr superior„ growth are
Why
entitled To a; much "higher ratio; tin
.
wage
to
Finally, a gradual decline in the
prices of the more costly shares
might be accompanied by a slow
rise in the prices of those cur¬
-- stocks
in the
Still
figures.
specifically can such
be
explained?
It
me
the
on
estimates
While
are
justify the-expectations un-.v events; however I do feel that the
•derlying the: prices these shares intelligent
investor
should
not
recently,
of
contribute
indicated, I feel that" he is'cmrently faced by two dangers, inflation on the one hand and the
possibility of a significant decline
market9
may
have,, commanded
rounds
All this leads to the question of
Available
;°"rse> using^. Jouyers expect
say
dollar earnings foi
that
using
Further
to
pres-
the
Investments Found
But what about
ratios,
ness
ratio
apt
themselves
which
earnings
and capitalization
stock prices are based. What .types
of earnings estimates underlie the
This
of
priced
>
base
and
highly
very
most
result.
the
I
?ncidental,ay do01,V
ftLus our
wnicn
that
market is overp^ced and
this belief not so much
Earnings Assumptions
Implicit in Stock Rise
ft.ey ,.co> nonetheless,
feel
i
much
Although I sincerely hope that
their expectations will be realized,
I
cannot
completely accept the
firms.
ratio, certainly
at
or
is
if strong inflationary
increases could
1952 through 1959.
shares
other
an-
disappear
This
felt.
the economy actually only
grew at a 2% per year pace from
and
15
mjght well
adds up to the fact that it would
be desjrabi€ to
find some more
Questions
ratio 33), U. S. Steel
are
selling very *close -to this
historical 15 ratio. - If these stocks
entitled to this
the
prob-
even
the
among this
ings
compared -to the DowIndustrial.- r growth rate of
those
of
that
place in the rest of
market.
...
(price-earnings ratio 55),
Eastman
Kodak
(price-earnings
'4%
are
It is
so.
spon-
unlikely
of
now
33),
stable
3%
highly
most
that
their
of
chines
as
J ones
.
seem
(year-end
are
These stocks With
rate ?,of
,
is
concerns
earnings. With their relative lack of
cyclical and competi,7 tive risks, this seems to be an aopropriate ratio.
market
take
may
the
If this
significant
downward
revjSjon tn the prices of inflation
immediately lmpend-
is
up
least subside considerably.
price-level
a
and perhaps go even
that at the same time
substantial amount of catching
a
sures continue to make
the
to
times
•
inflation
\ing,"
or
hedge
occur
part of the market is composed of
early
around
hones
will do
any
The
date, the market should continue
tp be greatly influenced
by the
growth factors.
.
group is composed
as Polaroid
(year-
not
Since
these two basic considerations
not
characterise
growth
formers
desirable than current
ravages
offset
growth
price-level
a
occurg
y
times dividends,unless a spurt oi
abnormal
to
win.
some
of
Although
glamour stocks may justify
it
able
dollar makes growth essential
the
be
felt
are
(price-earnings ratio
fondest
sors,
income, and the steady erosion of
,
and
estab¬
lost
touch
with reality
paying prices based upon
are
the
earnings
factor very heavily. This
more
y
many years to come.
these
effort to find growth is based on
two basic considerations.
High tax
prates have
made
capital
gains
much
possibility that cannot be ignored.
A
second
possibility
seems
likely. The prices of stock
in the overpriced sector may re-
more
type
rapidly
surely
for
reason
•
..
stocks,
thinking rather than sound
thorough going analysis. Like inexperienced horseplayers they are
betting on long shots with the
calm
assurance
t at
they
will
market has Weighted the
growth
the
two
known
this sector of the
to
favorable
very
that
of
into
wishful
The
price-level
p€rtod of price stability then
the demand for protection of this
speculative value it they sell
above 25 tnnes earnings oi 35
uptrends in the recent
whose earnings prospects
or
and
my
market
unfortunate eventuality will come
I consider it a definite
a
cluided-that
in
levels.
earnings, will give
k,s.
^te. Reasoning_in this
#
which
Ampex
past
-
:'this
1c
aP d
hold forth the alluring promise of
great things to come.
Investors
opinion that over a
period of time the P'/E ratios of
•the growth utilities will
expand
} and
this,
together with
rising
•
they
tion< sbould there be a significant
recession or should we experience
dramatic
case
current
firms
The first
47),
or
represent better
utilities
S
reason-
90), and many other newer companies whose earnings have shown
utility ratios will rise.
Perhaps there will be a combina-
ues
w
to piovide reasonable investment
end price earnings-ratio
72), Texas
Instruments (price-earnings ratio
the growth
the
well
of such stocks
at 21 times earnings, and Atlantic
'City Electric, with a 10% growth
.'rate at 19 times earnings, over a
period of time either the indus¬
the
nf
be-
part
divided
glamour
of
strong
tics
&
i times earnings, Houston Lighting
& Power, with a 13% growth rate,
of
rvnle
nf
.
have
Light,- with a
16% growth rate, is selling at 24
tion
shares
lished
much lower price-earnings ratios.
trial ratios will have to decline
life
a
group
it
view
overvalued
market
'
;
this
*
fii
,
t
Overvalued P
Part of the Market
sub¬
are
what
als0 runs another important risk main high
that rarely receives much atten- higher and
nsnallv
Clendenin^aiid Van Cleave conEven
the^most high
s
growth stocks are toovigoi-
identify each
and explain my
with respect thereto.
ing
•
'
reason-
industrials
mentioned
Power
are
of stocks
space
ject, in varying degrees, to cyclical
influences, competition, technolo¬
gical
developments,
or
style
changes.
In
contrast,
utilities,
1 which lack these risks to any im¬
portant degree, can be bought at
J Florida
are
undervalued,
even
stated
hooves
of
some
electronic
thrnnph
industries
cur-
substantially overvalued, the other
fantastic
price-earnings ratios of
•the
.
mention
even
and
nppt
one
Chemical, with growth rates
of 8Vz%
and 11%, respectively,
sell at 26 times earnings. I will
•
is
foiH
Dow
;<
po
K
firms
thiough a life cycle of slow
mfri
f01nt. on theThe
present S wttif thened by■ rapid e xpa 1
market situation
this.
sion and
declining ^ates Of
mf ? distinguishable
.eS? ft
ft0
lot'fjp nnrr!hprc
firmc
tn
fairly clearly Jr ft1
parts, Poet laige numbeis of firms To
earnings.
with an
Electric
both
ml
Minneapolis-Honeywell,
;11% growth rate, sells at 31 times
'earnings.
1
vaae
i»TZ?
in? n? mention a few The bear- g
earnings. Min¬
a 14% growth
44
after
seeKer
Continued from
nesota Mining, with
rate,' sells
i
sllbsequent
as
advances would cost them is they
held bonds. Observe also that the
find stocks of companies
;with
a
10%
to
16%
earnings
-'growth rate selling at 20 to 24
times
earnings.
IBM,
with
a
Slightly better growth rate of 18%,
you
'
for
think to be inflation proof stocks about,
tcday
;
can
prices
27
Midwest
^
Cn
f^
the
Stock
was
;
Walker
E.
^ftg
New
T
St
^T
^
York
and
Exchanges.
Mr.
previously with Yates,
Heitner & woods
Co.
—
has joined the staff of G.
WQl1rpr
Crosby
Mo.
and
T? AfJrlpn
Rr
28
close
STATE OF TRADE AND INDUSTRY
Intercity- Truck Tonnage 5.7 %
Continued from page 4
dropped another 50 cents a
scrap
i
it was $42.50.
;< U. S. brass mills are smarting
under the competition from im¬
ago,
ports which have increased nearly
in
tenfold
11
"Steel"
years,
re¬
ported.
*
has 1 million lbs. of
The industry
Above 1959 Week
.
truck
Intercity
ton, now standing at $41.50 a ton.
A year
SKSM&SS SSS "*
of
week
year ago the American
Associations, Inc., an¬
a
Food
Wholesale
The
6, was 5.7%
ahead of that of the corresponding
Price
In¬
standing
idlp while its
foreign competitors are booming.
New England mills, for instance,
working
are
weeks, fur-
shorter
loughing
workers,
and
[facing
other problems of dislocation.
The basic reason is the terrific
disparity
U.
their
and
manufacturers
S.
of
labor costs
between
foreign competitors.
In commenting on the continu¬
ing pressure of union leaders for
higher
wages,
ex¬
company
one
It
ties,
at
$5.77
40 lbs. of
imports cost U. S. labor
manhour." Over 199 million
Iron
American
Institute
the
that
announced
of its pro¬
output; of
728,000 units. Thus far in Febru¬
ary, output has run 8% below the
peak January rate.
op¬
erating rate of the steel companies
will average *168%
of steel ca¬
for the week beginning
1960, equivalent to 2,699,000 tons of ingot and steel castings
(based on average weekly pro¬
duction of 1947-49). These figures
pacity
In line with this
Feb. 15,
assembly
Ford
nine
Wis.,
ginning Feb. 8 was equal to 94.3%
of
annual
1960
net
970
Jan.
the
of
utilization
the
1,
capacity of
148,570,-
Estimated
percent¬
tons.
for this week's forecast, based
that capacity, is 94.7%.
age
on
(based on
operating rate
1947-49 weekly produc¬
tion)
*169.8% and production
1 A month ago the
was
2,727,000 tons. A year ago the ac¬
tual weekly production was placed
2,449,000 tons, or *152.5%.
at
.♦Index
?' I
1{
of production
weekly
age
Construction Contracts Set
1959
Ail-Time
Construction
United
and
States
(excluding
in 1959 set
Hawaii)
record
time
I
Record
contracts
of
$36.3
in
the
Alaska
all-
an
billion,
worked
trimmed
of
ac¬
despite declines in
manufacturers
on
either
five-day basis or
schedules because
a
their
"parts
shortages,"
"Ward's" said.- "Supply problems"
cut programming to three days at
Imperial (Detroit) and Chevrolet
(Atlanta, St. Louis) and four days
at Plymouth (Detroit, St. Louis)
and
Chevrolet
(Flint, Los An¬
said
"Ward's"
assembly
pared by one Big Three car maker
the
remainder
of
February.
It
added
that
another
of the
Big
Three reports
inability of trucking
companies
to
keep
pace
with
high-level factory output and finds
of
thousands
many
its
compact
languishing in Detroit area
lots awaiting shipment to dealers.
cars
Electric
Output
1959
7% Above
The
< t
total
for the
year
was
3%
ahead of 1958, the
previous record
Dodge reported.
December contracts totaled $2,224,060,000, down 3% below De¬
*
year,
14
cember of 1958.
Dodge vice-president and chief
economist
George
that
said
Smith
December
the
Cline
figures
showed encouraging
strength, de¬
spite the 3% drop.
"The December decline
smallest
in
months,"
any
Dr.
the
of
was
past
the
five
Week
November to 244 in December."
For 1959 as a
whole, contracts
percentage changes from 1958
were
follows:
as
Residential
building, $17,149,677,000, up 17%;
non-residential building,
$11,386,604,000, up 4%; heavy engineer¬
ing,
$7,732,263,000,
down
18%;
total
up
construction
3%.
'
•
$36,268,544,000,
,
energy
by the electric- light
industry for the week
Feb. 13, was esti¬
power
ended Saturday,
mated
14,071,000,000 kwh.,
at
ac¬
cording to the Edison Electric In¬
stitute.
Output
was
26,000,000
kwh. below that of the previous
week's total of
but
showed
kwh.,
a
7%
or
that
of
the
1959 week.
comparable
Lumber
14,097,000,000 kwh.
gain of 915,000,000
above
Shipments 4.3% Above
1959
Lumber
Week
shipments" of 458 mills
low
Barometer
were
9.3%
be¬
production during the week
Feb. 6, 1960.
In the same
ended
week
orders
new
4.7%
were
filled
of
these
mills
below production. Un¬
orders
of
mills
amounted to 37% of gross stocks.
For reporting softwood mills, un¬
reporting
Show
a
3.9% Rise
Above the 1959 Week
Loadings of
the
week
revenue
ended
Feb.
freight for
6, 1960, to¬
taled 587,933 cars, the Association
of American Railroads announced.
This
or
increase of 22,181 cars
above the corresponding
was an
pre¬
3.9%
week
.55,537
in
1959
cars
and
or
an
10.4%
increase
above
of
the
corresponding week in 1958.
!
^
Loadings irt the week of Feb. 6,
were
13,967 cars or 2.3% below
£he preceding,week.
^ f.
were
production; new or¬
below production.
with
the
in
1959, production., of re¬
porting \mills." was 6.4%
above;
Atlantic,
the
to
up
114, the South Atlantic,
able
declines
week.
Regional trends from 1959
were
mixed; four regions
273.44
and
corresponding date
year ago.
a
earlier
week
a
the
on
"
....
Good domestic and
export buy¬
there
change
two
had
Pacific
and
showed notice¬
from the previous
States,
suffered
casualties
of
week
five
and
tolls
higher
fewer
similar
was
the
regions;
also
to
up
little or
in four regions—only
Meanwhile,
no
and the East
11 from 4.
21,
43 from
Central,
the
in
than
last year.
From
kets
chandise helped overall consumer
tight.
offerings
Although
light,
were
dipped somewhat as
transactions were sluggish.
Oats
prices
corn
prices showed no change from the
prior week and volume was dull.
While
both
domestic
and
export
"lagged,
unchanged from
soy bearis;
of
purchases
remained
Consumer
picked
mestic interest
remained
The
was
the week, do¬
dull and prices
levels.
earlier
week
at
Week
Prior
Slightly
Up
and
Ago
Year
buying
retail trade
cif
a
in
up
move
this
ended
week
slightly exceeded that
Year-to-year gains
apparel, furniture, ap¬
pliances and
passenger
new
declines
in vwomen's
cars
mer¬
chandise.
dollar volume
total
of
re¬
tail trade in the week
ended Feb,
10
4%
unchanged
was
than
a
ago,
year
to
also
was
rise
marked
a
in
purchases for prompt shipment by
sustained
at
in
interest
Domestic
Cuba.
a
rice
high level and
of the
pre¬
Uncertainties
regarding Cuba's
marketing plans resulted in a dip
in sugar prices this week; sugar
trading
was
down
moderately.
There was an appreciable increase
in coffee
trading at the end of the
week and prices were up slightly.
Despite a slight rise in volume
gains
by
&
Dun
Central +3 to
-j-7; Middel Atlantic, West North
Central, and Mountain -f 1 to -f-5;
East South Central 0 to -f-4; West
South
Central —1
to
-j-3; New
England and Pacific Coast —2 to
North
East
ages:
-f-2; South Atlantic —4 to 0.
Attracted
sales
and
up
by
Valentine's
the
ground lost
period finishing
moderately
higher than a week
receipts in Chicago
down noticeably from
the
earlier.
were
Hog
preceding
week.
Although sup¬
markets were lim¬
plies in some
purchases of
steers were
ited,
steady and prices were unchanged.
A
fractional
occurred
Prices
rise
and
on
in
lamb
trading
was
the New York
prices
steady.
Cotton
comparable week
a
year
ago.
Business
Failures Continue High
Casualties
year
-
were
higher than last
when 292 occurred and came
increased
men's fall apparel, es¬
interest in
pecially overcoats and furnishings.
textile
Some
reduced
the
in
Declines
week.
in
expanded
broadcloths and
over-all
fibers fol¬
rise
recent
orders
orders;
reported
industrial
of
man-made
and
lowing
this
centers
supplies
fabrics
new
again
sales
of
print cloths held
volume
in
cotton
gray
below that of the prior
Trading
in cotton yarns
dipped
appreciably
during
the
goods
week.
a
textile
Boston
in
decline
woolens,
in
mills
re¬
transactions
worsteds, and
carpet
shirts
was
especially dress
volume
week,
this
ings
and
neckwear, and
apprciably
up
Incoming orders at New
dyeing
and
finishing
plants moved up substantially in
England
the
from
a
past two weeks.
Wholesale
foods
in
year
Purchases of men's overcoats
and
suits
dipped from a week
rise
during the week
in interest in spring merchandise,
over-all
in
volume
women's
trading
pecially
fell somewhat below last
The
inost noticeable
de¬
clines occurred in dresses, coats,
suits.
accessories
Volume
in
sportswear
remained
close
to
year ago.
goods
were
up
of
household
moderately
from
last
year, with principal gains in
appliances, furniture, floor.coverings and linens. Sales promotions
the
sets.
Furniture
the
best
upholstered living
stores
re¬
results
in
room merchan¬
dise and bedroom sets. There
were
appreciable year-to-year increases
in sales of housewares, kitchenwares,
week,
5%
food
was
sales
a
fractional
this week.
rise
in
In¬
Feb.
30,
reported.
ended
weeks
increase of
the four
an
For
Feb.
6
5%
was
According
the
to
System
serve
in¬
over
the
a
registered
period in 1958.
crease
Federal
department
sales
in
week
ended Feb.
New
York
City
Re¬
store
for
the
increased
6
8%
the like period last year. In
preceding week ended Jan. 30,
increased 6%, over the like
'over
the
sales
period
period
last
increase
Feb.
6
reported
Jan.
and
was
the
For
year.
ending
was
a
over
to
1
four
in¬
5%
the 1959
Feb.
6
the
6%.
A. M.° Lerner
Opens
'
JACKSON
HEIGHTS, N. Y.—Al¬
M. Lerner is engaging in a
fred
securities business from offices at
Thirty-fourth Avenue under
of A.
name
Co. Mr. Lerner
Bache
&
was
M. Lerner &
formerly with
Co. and E.
F.
&
Hutton
Company.
W. J. Meredith Co.
(Special to The Financial Chronicle)
ORLANDO, Fla.—W. J. Meredith
&
Company, Inc. is engaging in
securities
203
a
business from offices at
North
Main
Street.
Officers
W. J. Meredith, president; E.
Mickle, vice president and sec¬
are
L.
and
Selma.
Pennington,
treasurer.
Housewives
primarily
interested
in
canned goods, frozen foods, dairy
products and baked goods. Vol¬
ume—in- ^Valentine's
Day.,candy.
were
Board's
ended
week
for Jan.
was
retary;
silverware and gifts.
There
Reserve
the
for
6,
1960, increased 3% above the like
period last year. In the preceding
again helped volume in refrigera¬
ported
in
3% for Feb. 6 Week
Federal
dex
tors, laundry equipment and tele¬
vision
es¬
Department
store
sales on
a
country-wide basis as taken from
the firm
sales
Over-all
goods,
Interest
Nationwide Department Store
Sales Up
79-10
a
canned
vegetables.
ap¬
year,'
and
in
somewhat from a
was a slight rise
earlier.
parel
and
up
There
frozen
week and
fresh meat, poultry, butter, cheese,
and eggs matched that of a week
earlier, but matched those of the 'weeks
1959
period.
Despite
a
crease
noticeable
was
ago.
year
of
purchases
steady this
were
volume
similar
the
in
were suits
Wholesalers in
reported
Minneapolis
Day
their buying of men's furnish¬
prices finished below those of the
preceding week.
A substantial rise in trading at
the end of the week helped hog
in
of
sub¬
reported
were
furnishings.
same
promotions, shoppers stepped
towards the end of the week, cocoa
recover
most
best-sellers
year ago;
a
according to spot
collected
estimates
ago.
prices
was
but, volume.in coats,
suits,' millinery, and dresses was
up
moderately.
The buying of
men's spring clothing heightened
and moderately exceeded that of
higher
rice ex¬
Bradstreet, Inc. Regional estimates
panded noticeably, especially on varied from the
comparable 1959
the part of India, Israel, and Peru.
levels by the following percent¬
There
The
wholesalers.
most
somewhat in the
Wednesday, and
ago.
year
men's
offset
some
interest in spring mer¬
and
areas
in
weather
of
buying
export
but volume
wool.
The
during
up
Buying
Seasonable
week earlier.
Although export buying of flour
apparel occurred
below the expectations
little
ported
advance
slightly during the week, and of¬
ferings were light. Trading in rye
was limited, but prices rose mod¬
erately as supplies in some mar¬
were
spring
again this week,
week.
ing helped wheat prices
previous
Commercial and industrial fail¬
week ended Jan. 30, 1960, produc¬
tion of reporting mills was 1.6%
ures totalled 317 in the week end¬
below; shipments were 9.3% be¬ uing Feb. 11, dipping fractionally
low; new orders were 3.2% above. from 318 in thd preceding week,
Compared with the ^corresponding reported Dun & Bradstreet, Inc.
week
Middle
the
during
tolls
higher
week:
by Dun & Bradstreet, Inc., stood
at 273.28 (1930-32ir 100), compared
7.9%
Compared
year's level but neither
manufacturing nor service had as
many failures as in 1959,
Three
geographic regions re¬
Mountain
276.49
orders.
moderate rise in re-orders for
women's
a
Whole¬
reported
sportswear,
Commodity Price Index,j compiled
with
slight rise in new
A
stantial
among
to
orders were equivalent to
'Exchange
declined
moderately
days' production at the current from the
preceding week. Exports
rate, and gross stocks were equiv¬
during the week ended last Tues¬
alent to 48 days' production.
day amounted to
about 159,000
For the year-to-date, shipments
bales, compared with 150,000 a
of reporting identical mills were
week
earlier and
36,000 in the
5.4%. below
retailers to 164 from 174,
commercial services
to 19 from1 25.' Mortality
in the
trades and construction continued
earlier.
week
a
of floor coverings
and
South
on some
filled
ders
by declines
offset
to
salers
among
ported
price
the
19
Carloadings
casualties "rose
slightly to 49 from 43, wholesaling
to 33 from 27, and construction
to
52
from
49.
However, these
were
close
a
'frj--
ing week.
;
Manufacturing
up
earlier
reporting to the Natjonal Lumber
Tr^de
j
ceding week.
electric
of
amount
distributed
and
Smith
said, "and
the seasonally adjusted Dodge in¬
dex
actually rose from 231
in
and
The
as
grains,
lard, coffee, hogs, and rubber, off¬
setting declines on sugar, wool,
and cotton.
The Daily Wholesale
higher prices
prices matched those
five months of the year.
ment, and television sets remained
$100,000
of
with 37 in the preced¬
increases
in
interest
Bookings in lamps, laundry equip¬
excess
compared
with
lia¬
had
concerns
ceding week in the latest period,
was
the last
in
for furniture
markets,
centering on case goods, outdoor
merchandise, and bedroom sets.
year
a
with
a
Saturday over¬
will be steadily
to
bilities
Southern
a
hoticeable
a
43. Twenty-nine
were
failing
was
re-orders
in
rise
There
ago
than
from
prices
geles).
cording to F. W. Dodge Corpora¬
tion,
1-:;'-:';'..;;':-- - />\
close
ago.
of1 the similar event
those
year
119
and
plants
from
commodity
general
remained
level
alleged
time
is based on aver¬
for 1947-49.
production
13.
Other
[
Co.
factory at Kenosha,
operated through Saturday,
Feb.
week
Only
industry.
the
Motor
Rambler
the
with the actual levels of
*167.3% and 2,687,000 tons in the
policy, six-day
were
light
programs
throughout;
compare
beginning Feb. 8.
Actual output for the week be¬
production, it has be¬
that the auto in¬
in
by about 80,000 units
jected
February car
Steel
and
The
week's
the
this month will fall short
dustry
of Capacity
On 94.7%
The
with
apparent
come
Based
Output
Steel
said
"Ward's"
Change
over
of
249
above last
Preceding Week
inventories.
dealer
rent
Little
Shows
the
of
Show was
exhibitors had
most
anticipated, and orders were well,
year.
numerous
and' Drapery
better,, than
with
those
when there
"
Wholesale Commodity Price Index
their schedules downward
production with cur¬
last
size
less
prices at the wholesale level.
balance
to
decline
Week's
most manufacturers ad¬
as
justed
too.
This
a
month
pounds of
brass mill products
were
imported last year, and a
record is expected to be set this
year,
in
time
consecutive
the
for
declined
13
Feb.
ended
Curtain
,
Small casual¬
liabilities under
$5,000, held steady at 31 and were
this
on
.
fourth
the
week
a
the
exceeded
and
;
v..
•
.
287
against
as
earlier
,
ecutive estimates that "every 35 to
one
were
failures
stood
$5,000
from
r
%<
<,
Attendance at-the New England
or more
involved in 286 of the week's
by Dun & Bradstreet, Inc., remained close to the
prior week in the latest period.
Feb. 9, up
0.2% from the $5.76 of the preced¬
nounced.1 Truck tonnage was an
ing week, but 6.5% below the
even 1 % ahead of that of the pre¬
$6.17 of the corresponding period
vious week of this year. '
a
year ago.
,■
\■ ' •■:/£:■'
These findings are based on the
Commodities quoted higher this
weekly, survey of 34 metropolitan
week
were
flour,
wheat,
rye,
areas conducted
by the ATA Re¬
hams," sugar, * milk,
eggs,
steers
search Department. The report re¬
and hogs.
Down in price were
flects
tonnage handled at more
than 400 truck terminals16f com¬ beef," bellies; lard,' cottonseed oil,
V|yv.
mon
carriers of general freight cocoa, and raisins. '
The Index represents the sum
throughout the country.
total of the price per pound of
31
raw
foodstuffs
and
meat
in
Car Output Down for Fourth
Consecutive Week
.
general use. It is not a cost-of"Ward's
Automotive ' Reports" living index. Its chief function is
to show the general trend of food
said
car
output
for
the week
Trucking
of
slightly
was. up
last year.;
cent
of 293 in 1939.
Liabilities
specialties
compa¬
than
failed
businesses
more
"
in the dex, compiled
tonnage
the
in
319
pre-war level
'
Close to Prior Week
,
•
Feb.
ended
week
*
the
to
Thursday, February 18, 1960
...
rable week of 1958. Eight per
Wholesale Food Price Index
f
.
capacity
Chronicle
The Commercial and Financial
(780)
;
Henry T. Biishnell
Henry, Thompson Bushnell,
ber
of
the
New
change/passed
York
away
/
mem-,
Stock
Ex¬
February 1st.
Volume 191
*Number - 5926
;.
The Commercial and Financial Chronicle
,
(781)
about the, stockmarket. People do <
not invest their capital to lose it—:
they expect to
dividends
There .are
BY
hope
JOHN
a profit in
capital growth.
make
and
in
times
when too
much
customers to
wrong invest¬
can cause your
for the
there
overpay
and
ments
are
times
when
too much
Normal Forces Are
pessimism can help you
to upgrade their securities
and
make some changes that can' be
very much to their advantage a
Operating in the
Securities Markets
two; from
year or
••
now., ;,
Don't forget, we are not investThe security
Salesman who looks
his work as
a career whereis. engaged in advising his
clients as to the longer term inupon
stocks. He said he felt
he didn't look at
he
in
.
vestment
,
and
not be alarmed
period of declining stock
when a
prices
.
of .-their savings
_
should
capital,
takes
jplace. Such periods
normal. They are the'escape
valve on the boiler of speculative
enthusiasm without which a seare
vere
and serious financial debacle
could arise.
Here
who
man
000 worth of
|n
this
list
these
was
unpromising
$20 000
over
hPid
inw
vprv
stocks
h^e
nroducbie
io
people
are
enmp
to
hp
Tn
customers,
there
specific,
wp
ms
be
who
stocks
common
auhe
few
a
itable
them.
to
marginal
that have
When
a
are
prices
was
also
may
paying,
speculative securities
very cloudy outlook,
at
rising
to
new
daily, and specula-
highs almost
tion
They
non-dividend
some
own
peak,
a
months
these
ago;
held because
their
only
stocks
owners
few
a
were
had
a
feeling that possibly some of their
laggards might catch on and they
could get out even, or at a small
profit. Today that emotional aspect of hopefulness is reversed.
One of the most elusive phases
of security salesmanship is
of
capitalizing , upon the
the
most
to
speculations
aisn had a
of other good
but
holding
one
another
approxiof the portfolio and
certainly needed some careful
18%
it
scrutiny.
I had onlv one small transaction
W1th this
and
inMmp
vears that
years mat nave never peen brof
never been proi-
He
diversification
mately
hie
stocks and
of
one
dogs you could ever find In aggregate amount the total value of
crowd such
nf
or
common
was
beautiful collections of cats and
amounted
pprtnin
certain
business
y
man
smaii transaction
several months ago
fortunatelv
I
J^™.vaT®iy
1
sold
sX;a.
him
a
Jr, ,a
.
-°Und dlvl,fendl Payer £hat £hoJ.d:
T now owns* is- someone
m the market,The hst
he
which
else's
headache
and
he
is
some-
what inclined to think that maybe
m do better as an advisor. That
too is
When
a
natural investor reaction.
doctor doesn't
one
cure
about it. He told
candid
frankly
that
market
was
pretty
fairly
good
easy,
last
year
me
when
very
the
boiling he made some
profits, they came
and he listened to
friends, (in and out of the busi¬
ness) and he just bought. "Sort
of an easy come easy go thing,"
said he.
Here is that same man, intelligent and capable in his business,
who today tells me he would
rather not look at his stocks. It
of many so-called investment ac-
;
from the psychologir»nl st^ndnoint. Thej?e neonle are
ical standpoint. These people are
sidelining it. They have stopped
counts today
What Happens When Hope
Is High
IUU
One of the difficulties that face
the
security salesman is that he
by the emotional vaga-
is forced
ries of the investment and specu-
lating public to sell equities of a
risky and speculative character
when
stock
prices are being
moUoA
W
vidnrn,.c
pushed
upward by a vigorous
public demand for this type of
equity. The greatest supply of secondary offerings, the heavy outpouring of overpriced underwritings always seem to be„ offered
o
within
a
few months ,pf an inter-
mediate top in the market. Public
demand is such that sales are easy
and value is
disregarded because
people become careless and make
commitments they would nut asin
sume
nbF
ous
markets
such
as
we
are
experiencing. This is a s®richallenging problem that
and
it is difficult to cope with in the
securities business. The individual
salesman
can
sometimes hold his
adventuresome
more
clients
in
check during such periods, yet it
is almost too much to expect that
the
even
most
qualified
advisor
and
ablq salesman can avoid some
participation in these excesses
when they occur.
When Hope
The
Changes to Doubt
day I was talking
client during a. dull after-
other
with
a
noon
when the market
was
drag-
ging along and stocks were very
front
wasn't
was
thinking
about
Simi-Valley Development Com¬
put Diverse, Inc. into the
pany
real
estate
of
business with
1600
some
Simi-Valley,
Having
an
approximate $4 million
1960,
After
deducting the
depreciation
and
depletion,
a
projection of earnings of $2 mil¬
lion
is
owner¬
in
acres
Los
near
will
for
the.
Angeles.
83%-ownership
in
as
reasonable
1960.
for
of its $4 million
cause
Be¬
tax credit,
earnings will
of Sept. ,30, 1959,
be largely tax-free for the 1960-61
Simi-Valley.Development.piversa
one of
the
1954.
in
graduate
_
U1.
„
.
,
innnnA
.
Public offering of 100,000 shares
of Soroban Engineering, Inc. class
^10c0°Rmmonustoc^ at. a price of
Pe^ s.har.e Is 'being made on
^ 3y
JLr°"P
ed
R.
by
Dickson
S.
&
Corn-
of
.
of
Net, proceeds from the financing
be used by the
the acquisition of
expected
are
to
for
company
.
,.
.
J3"". 31f
aLtfinnoi
anS
rpi^+inn
P^uit,
nf
Murmanill
Corpo¬
Doyle Miller,
Diversa, Inc., is a
W.
Oklahoma
State
to
President of Dresser Industries.
deficit of $369,566
in the initial quarter of 1959, the
new
a
management
of
Diversa
p LP
,
,
the
second
quarter
co^^^^^^
246,-
~~
with official position of person
requesting booklet — Skil-Tests,
Marting
Publishing
Company,
3144 Fifth Avenue, San Diego 3,
Calif.
common
and
tions
the
in
Financial Institu¬
Postwar
Period—
G. Gurley—Superintendent
Documents, U. S. Government
Printing Office, Washington 25,
D. C. (paper), 350.
John
of
Locomotive
Inspection—48th
.
an¬
nual report, of the director to the
Interstate Commerce Commission
—Superintendent
Maximum
.
of
Documents,
Challenge:
Is
The
of the Western World
Splitting Apart?—Talks made be¬
Economy
iim;A„
rorm Junior investors
ST. PETERSBURG, Fla. —Junior
investors of America, Inc. is en-
stock
in
the
Postwar
Decade:
Economic
for
1947-1957—
Schultze— Committee
Charles L.
Development,
711
Fifth Avenue, New York 22, N. Y.
(paper),
on
$1.00;
prices
(quantity
request).
Industries
Manufacturing
Charles L, Schultze
—
and
Joseph L. Tryon—Superin¬
Documents, U. S, Gov¬
ernment Printing Office, Wash¬
tendent of
ington 25, D. C. (paper), 200.
Profit
Profits,
Markups,
and
Productivity:; An Examinatibh* of
Corporate Behavior since 1947—
Edwin Kuh — Superintendent 6f
Documents,
U. S. Government
Printing Office, Washington 25,
D. C. (paper), 850.
Public Policies Toward Business—
Clair
Wilcox—Richard
D.
Homewood, Illinois
Irwim
(cloth),
Mutual Security
Value of Service in Rate-Making
Commerce
—Interstate
Program—Report
Congress for the second half of
fiscal Year 1959—Department of
State, Washington, D. C.
ernment
Printing
.
What's
Ahead
Special Project Committee
Security through Arms Control
and a Technical Report by W*
town-Lower
on
,
for
Wash¬
1960—Booklet
Center:
World Trade
NPA
Office,
(paper).
prepared by editors of "Automa¬
tion"—Automation, Penton Build¬
ing, Cleveland 13, Ohio.
Country Problem and Arms
Control:A
Statement
by - the
Nth
Commis¬
Bureau of Transport Eco¬
nomics and Statistics—U. S. Gov¬
sion,
ington, D. C.
to
people out of a member of the New York Stock
unpromising investments is when Exchange and the Midwest Stock
his they are emotionally pessimistic Exchange.
711
Fifth
Avenue,
22, N, Y. (paper), $2.00,
(quantity prices, on request).
$9,60.
N. Y.
'tvtiQ
National
—
New York
Development by Sir Oliver Frank;
van Zeeland, Paul Hoffman
and Axel Iveroth—in Jan. 16, 1960
issue of Saturday Review (paper),
250,
Saturday Review, Inc., 25
West 45th Street, New York 36,
dent; and Dody R. Baldash, secre^ary and assistant treasurer,
Ralph W. Davis
Kalkstein,
and C.
Planning
Association, 1606 New Hampshire
Avenue, N. W., Washington 9,
D. C. (paper), $1,
Inc.,
Paul
Ralph W. Davis, partner in Ralph
M,
Hohenemser
fore the Committee for. Economic
gagjng in a securities business
from offices at 209 First Street
North. Officers are Franklin J.
Lacey, president and treasurer;
Michael A. Wagner, vice presi-
A-niLj. i TV/r*.
levels
Prices and Costs in
Liquidity
387,484 shares ot class b common
Jr'r*
higher
Prices, Costs and Output for the
.
IIow to Hire Typists—Folder sent
Pn request on company letterhead,
Washington 25, D. C. (papqr), 150,
.
convertible preferred
much
velopment,
—-
U. S. Government Printing Office,
.
cumiilsU
—-Committee
and
i4
believe
I
Paying for Better Public Schools
for Economic
De¬
,
868 shares of ctessl A^common^nd
«
tive,
Davidon,
s
design, de/eJ?,?™;".:„anjLife™fe
hares _f class A
which
coming months.
in
...
0f $550,362 in indebtedness,
steam
will move Diversa's $1.25
$272,715
^ ^
,
the
bank
.
,
Together these forces gen¬
erate
to
Melbourne, Fla., is engaged in the
,
stock, is
aggressively
advancing the stature of the com¬
pany.
turned operations into a profit of
ith
^
resumed
common
Creole Petroleum Corporation
(Subsidiary of Standard Oil Com¬
pany of New Jersey) and Vice-
w'R be _added to the company s
general mnos.
which
increases
to
1% shares unless
dividends have been
IV2
preferred
of
comDanv's
the
privilege
by Oct. 1, 1960. Fourth
and greatest of all is the com¬
petent management, which,
motivated by a large stake in the
and ^reduction^G Proceeds
added
sion
from
University and has a long and
distinguished career in the oil
industry as production manager
Overcoming
^
Tie Logic With Emo ion
nitric
My point is this. The only time, away janua^ JOth Mr. Davis was
you can move some
,
organized
o£
v;
and
1957-$208,774; 1958$149,227; and 1959-$331,265.
ration
1959^. ^thej companyjeportea
.
before taxes:
President
o0F<i959e th^compan^r^or^ed
.
reported the following net income
.
.
'
$407,057 in the third quarter.
Cash flow during the second and
third quarters totalled $1,683,693
,
^ial^
tial capital
^
and subject to all the hazards that
are present every day and even if
he wanted to forget it his stocks
wouldn't forget him. I suggested
that it was good business to protect capital and the only way to
do it was to weed out the very
risky, unpromising items and replace them with good, sound,
growing investments that have a
future and that are also reduced
in price from their former highs.
He, agreed with me that he hardly
would pick the same portfolio today if he were to invest these
funds and he agreed that we
might Strive to improve the situa-
and
31, UPG
that expects this project to be
so
and some have Cyen
comnSinff data^rocessing^and
stopped thinking and listening.
^
Such periods bring about readof
justments in stock- pnees and they eilcTo
mechaniSl
also make it possible for-.same of
these people to put their house in
.
..
..
Princinal comorder if the salesman can motivaPP^cauons, ^
aia thpm nrnn^riv nnw.
ponents manutacturea are paper
ate them properly now. /
tape
perforators,
coding
key; As for the man previously re,
,
nprforated
tane readers
ferred to, I took it easy with him.
electrically seauenced tvpeI did not criticize or preach, I did ^ters
not promise, but I suggested that
possibly the two of us working together, along with my research 30,
staff, could improve the situation,
$132961
eaual
to $31
He asked me which
stocks I ^e
a and c'lass B common
thought could be sold and re- P« claiis A and class B common
placed. I priamised do give him
completioh of tye ciirfeKt
some ideas. I mentioned to him in
..
r .
outstanding caPitalizaa pleasant way that his substan-
.
somewhat cool
to the idea of buying anything.'In
fact, he told me he wanted to get
away from the whole business. He
just
ui
buVing
S
telephone; rHe
our
us
maybe another will.
Anyway, I asked him why he
bought the very speculative stocks
and why so many of them. He was
the art
strong
emotional tendencies of both hope
and fear among investors so that
they will be motivated to act in
their own interest. Let us develop
this practical phase of investment
salesmanship and apply our con- hurts him in the pocketbook and
elusions to today's investment op- possibly in his own self-esteem.
portunity among those who are He is an honest man and he realholding stocks which should be izes that he just went along with
sold now and switched into more the crowd. That is the background
promising investments,
see
think
We
Continued from page 2
fiscal years ended March
period.
Capitalization , of Diversa, Inc;
includes 1,928,000 shares of com¬
its most valuable assets.
mon stock
help us
outstanding with the
American Acceptance Corpora¬
retire or live better. You can't do
management owning
approxi-*
££lat if you own too many border- tion is a wholly-owned, small mately 80%. Of the 500,000 shares
line speculations represented by finance company serving north of preferred stock authorized,
•,
.
commitments . in companies that central Texas. :
there
are
outstanding
350,000
are weak internally,- financially
Oil
and
gas
continue to
be shares of the $1.25 cumulative,
and competitively. Now is the major activities of Divers a. convertible stock. Long-term debt
time to clean house before prices Through Tidelands Drilling Com¬ financing is provided through an
lower. Good stocks come back pany (formerly C. G. Glasscock- insurance
company loan amount¬
-the others shrink in value and Tidelands Oil Company), Diversa ing to $8,265,592 as of Sept. 30,?
sometimes go down the dram ranks among the nation's leading 1959. A reasonable appraisal of
marine drillers, reporting that all the net assets behind the preferred
completely.
Your mature ana. responsible of its rigs are now busy and its stock amounts to more than four
fixes...
.
y^u ca?
giant rig, Mr. Gus II, is under times its present market price.
fwu
i? +° their. advantage to contract for the entire year. In
District
forces
at
work
in
the nine months to Sept. 30, 1959, Diversa,
£ Ar
qi^u^10^a^ue a? ofmr nfi
Inc.
should actuate a
holdings. This is the best time to Diversa
reported gross income of substantial advance for the $1.25
do it—most neonle don't eo to the
?? v mosi peopie ao.n i go 10 xne $1,228,744 from contractf drilling preferred
stock.
First
is
the
Doctor unless they hurt—and the and
$319,481 from oil and gas sales. depressed market level which is
more they hurt the more probable
Chief executive of these diverse equal to only about half its call
that they win follow his prescrip- operations is Gerald C. Mann, price plus accumulated dividends.
+jnn
Chairman of the Board. A grad¬ Second is the force of increased
■
:
uate of the Harvard Law School
earnings which should enable an
-rv
t\*
i
in
early resumption of dividends.
h?
X
1933, Mr. Mann served
as
I JiPXSOTl
Attorney General for Texas and Third is the force of the conver¬
AV#
x/rvnuv**.,
capital increase
acting completely s0J^e years hence it will
successful
a
was
and
periods should and do,
present opportunities for the experienced and alert securities man
to improve his relationship with
better when ing for a day, or aweek, or a few
the quotations.
months; most of us would like to
normal. Yet he held about $100,-
fair
Rather than become pessimistic
allow yourself to follow the
was
The Security I Like Best...
ship
•
.
29
A Proposal
for the Port of New York—DownT
Manhattan Associa¬
tion, Inc., 57 William Street, New
York. 5, N.
Y.
»«^W»liT«'!lW'(1,1
*MVK»t<«l*UV«. I l«..UM«W»-l»» »
W»MlHit«l»«Wt«*»»
vrf»WJ*<»«r»',r"
H
30
The Commercial and Financial Chronicle .". ; Thursday,
(782)
AD DITION S
* IN DICATES
Electronics,
Accurate
<
.
"
(2/19)
Inc.
*
uf uotmcauun; iou,uuu shares of com¬
mon stock
(par 25 cents). Price—$1.50 per share. Pro¬
ceeds—For research and development, advertising and
Dec
id
(ieaer
capital.
Calif.
Wholesale
Acme
&
St.
Lawrence
(letter
Green, Ky.
*
;
,
of
—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.,
Sept.
Inc.
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¬
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
17
five cents).
42nd
St., New York City. Underwriter—
American
Service
Life
Allied
29
Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas.
*
Insurance
M f\
-1
•>
*
*
;*»<
establishing airmail facilities
Office—518 Felt Bldg., Salt Lake City, Utah.
Underwriter—Edgar B. Hunt Co., New York City.
Price—$1
share.
Ark.
L.
Hedde, President of the issuing company and owner
of 10,000 of its 80,000 presently outstanding shares.
Mr.
Hedde will work on a- "best efforts"
basis, and will re¬
a
selling
commission;
sales
15
and
of
cents
12
per
cents
share
per
on
share
on
out-of-state
»t
!
j
uv r
,
>(
?/,
■
Business Investment
Corp.
capital
and
long-term
loans
to
small
business
Office—Washington, D. C. Underwriter—NASD
who
execute
a
selling agreement.
Offering—
>
•
American
Feb. 3 filed
Business
Systems, Inc.
100,000 shares of
warrants for
5,000 shares of
common
(3/1)
stock, and 3-year
common stock.
supplied by amendment. Proceeds—For new equipment;
expansion of the sales organization; discharge of debts,
and
general
corporate
Office—2929
"B"
I!
f"
warrants.
)
•
American
Land
purposes.
''f\
t
v<
.
t'T |rl
?
i?
\f
':
'
,
14 filed 300,000 shares of class A
preference stock
($15 par) and 300,000 shares of common
stock, to be of¬
fered in units of
of
share of preference and one share
Price—To be supplied by amendment. Pro¬
common.
ceeds—For
property
^
'j
acquisition
and
'
r
:
'
*;
■
)\
1
'
*■
I
'
M
i
'
1,471,709
1,882,718 shares of
common
shares
were
common
stock, of which
exchanged for all the
J
-
|
fi
the
properties cf Dewey Portland Cement Co.
basis of 8!4 American-Marietta
shares for each
»?
%
10
Price—To be supplied by amendment.
Proceeds—For acquisition of additional
businesses and
for general corporate purposes.
Office—101 E. Ontario
Street, Chicago, 111. Underwriter—None.
American
Molded
Fiberglass Co.
Jan. 29 (letter of notification)
300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
Paterson, N. J.
V
on
shares of Dewey.
For general corporate purposes.
1
stock
the
for
purchase
of
shares
5,500
together with
Price—To
stock.
mon
,
Corp.
warrants
125,000 shares of
supplied by amendment.
be
Pro¬
New
Office—85
Fifth
Underwriter—First City Securities,
Offering—In early March.
Ave
Inc.!
York, N. Y.
American Premier Insurance Co.
Feb.
stock
8
(letter of notification)) 5,000 shares of capital
(par $16). Price—$32 per share. Proceeds—For
'
'
$750,000
of
mortgage
first
6y4%
bonds,
due
Prices—For the debentures, at par; for
share. Proceeds—For general cor-:
porate purposes including repayment of loan, purchase
specified.
the preferred, $20 per
:
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.
stock
Andrea, selling stockholder.
Bridge Plaza North, Long Island City,
N. Y. Underwriters—W. C. Langley &
Co.; of New York
City, who, together with S. W. Muldowny, will acquire
(par 25 cents). Price—$1 per share. Proceeds—
capital. Office—1404 Main Street, Houston'
For working
27-01
—
(2/24)
Corp.
$750,000
Bankers Management Corp.
Sept. 10 (letter of notification) 300,000 shares of common
com¬
ceeds—To president F. A. D.
Office
be
to
■
2, Texas. Underwriter—Daggett Securities, Inc., Newark..
J.
Offering—Postponed due to change in structure
v
V'
N.
of issuer.
,
said warrants.
-.'.''Barnes Engineering Co.
it An-Son Petroleum Corp.
'
15 filed 50 participation units in the An-Son
Feb.
Feb.
Fund,
to
in
offered
be
Office—3814
North
units.
Santa
Fe
1960
Price—$20,000 per unit.
Avenue, Oklahoma City,
Co.
Jan. 28
stock
7
shares for each
new
share.
ing
on
Office
Underwriter
Lapham
—
Martin
111
—
Price—$4 per
&
Co.,
Street
Ashton,
808
of
I.
R.
it Apache
shares)
15 filed
Corp.
subordinated
common
shares
common
cost
$542,466.
unspe¬
an
of
the
company.
shares, at $150
unit.
The company
will sell the 500,000 shares of subordinated common
stock at 10 cents per share to Apache Oil, promoter of
common
the
per
Proceeds—$1,600,000 will be used to
Apache Oil
Tower
Rand
the
latter's two-thirds
ac¬
interest
and
Foshay Tower officebuildings
in Minneapolis
(included in this payment is the sum
required to repay the bank loan in the amount of $1,500,000 obtained
in
debentures.
Office—200
Fletcher
National
Bank
&
Truesdell
Ave.,
City
Securities Corp.,,
Registrar — American
—
&
Trust
Co.
shares
(par $1). The common
and preferred stocks will be sold only in units consisting of five shares of preferred and an unspecified num¬
ber
5%
LaPorte, Ind.
Underwriter
Indianapolis 4, Ind. Trustee
(par $20), 500,000
($.10 par), and
of its outstanding common from the family.
founders, the late James P. Morley. This,
The remainder of the proceeds will
applied to the retirement of the issuer's junior con¬
will
40 Exchange PI, New
116,500 preferred shares
f
;
its
of
one
be
Realty
Inc.
sink¬
ing fund bonds, due Jan. 1, 1975. Price—At 100% of
principal amount. Proceeds—To buy about 50.6% (67,-,
the basis
Proceeds—To repay a current debt and for work¬
capital.
Underwriter—Hayden, Stone &
.
Bastian-Morley Co.,
shares held.
10
'..
,
\
Jan. 18 filed $650,000 of convertible first mortgage
(letter of notification) 74,800 shares of common
(par $1) to be offered to stockholders
!
filed
fice—Stamford, Conn.
Okla.
of
9
50,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To pay off notes,
for expansion, and for general corporate purposes.
Of¬
connection
with
the
acquisition
,
it Bobbie Brooks. Inc.
Feb.
filed
15
200,000 shares of capital stock, as adjusted •
to be voted on:
at a shareholders' meeting Feb. 24, 1960. Of the shares ,
to be ofiered, 100,000 shares are to be sold
by the com¬
pany and 100,000 are to be sold by selling stockholders.
for
the proposed two-for-one stock split
Price
To
—
be
supplied by amendment.
Office
—
3830
Kelley Ave., Cleveland 14, Ohio. Proceed?—To be used
for property improvements and
working capital. Under- '
writer—Bache & Co., New York.
*.
V
Border Steel
of
Rolling Mills, Inc.
$2,100,000 of 15-year
said building); about $600,000 will be used in connection
Sept.
with
sinking fund debentures, due Oct.
the
development
of
a
shopping
center;
and
the
523
for general corporate purposes.
Office • —
Marquette Ave., Minneapolis, Minn. Underwriter—APA,.
Inc., a subsidiary of Apache Oil. Offering—Expected by
the
middle
Arcoa
Inc.
stallation
$6,000,000 of U-Haul Fleet Owner Contracts
$3,000,000 of Kar-Go Fleet Owner Contracts. The
contracts 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—
Hawthorne
E.
Boulevard, Portland, Ore.
■
SEC
clearance is expected about March 1.
•
Arcs
Feb.
10
Inc.
(3/21-25)
Office—Merrick Road, Bellmore, L. I., N. Y.
Underwriter—Myron A. Lomasney & Co., New York,
Arrivals, Ltd.
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.
PriceTo be supplied by amendment.
Proceeds—For invest'
common
stocks.
Office—301
W.
11th
Street
Kansas City, Mo.
Underwriter—Jones Plans, Ine., a sub
sidiary of R. B. Jones & Sons, Inc.
★ Automation Systems, Inc.
Feb. 12 (letter, of notification)
mon
stock
—For
common
stock.
Price
Proceeds—For
—
To
be
supplied
by
the
purchase of land and '
thereon, and for the manufacture and in- >
of
equipment.
necessary
Office—1609
Texas
Texas.
Border Steel 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
For
(par 25 cents).
general
corporate
150,000 shares of
com¬
Price—$1 per share.
purposes.
Proceeds
Office—150-34 12th
Avenue, Whitestone 57, N. Y. Underwriter—B. Fennekohl & Co., Inc., New York, N. Y.
Price—To be supplied by amendment.
general
corporate
Street, El Paso, Texas.
•
Bowman Co.
purposes.
Proceeds—
Office —1609
Texas
Underwriter—None.
(2/29-3/4)
Jan. 27 filed 290,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To
holders.
•
Jan. 29. (letter of notification) 44,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For work¬
in
subordinated
Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
held.
filed
purposes.
ment
6%
,
Industries,
100,000 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—To discharge
indebtedness; advances for research and development; to
buy equipment and the balance for general corporate
ing
of
construction
and
S.
shares
amendment.
of March.
Dec. 28 filed
filed
14
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
&
assets and
!• I-
par).
N. Y.
American-Marietta Co.
Jan. 25 filed
i
one
development. Of¬
fice—49 E. 53rd Street, New York
City. Underwriter—
Hemphill, Noyes & Co.
Offering—Expected in Feb¬
ruary.
I
•
>
?
Radio
filed
common
4707
Co.
Dec.
*
:
■
(no
Price—To be
St.,
Philadelphia, Pa. Underwriter—Bache & Co., of Phila¬
delphia, and New York City, who is to acquire said
;:
stock
Proceeds—To buy
balance
Expected in February.
?>
,
of
in
Sept. 29 filed 100,000 shares of common stock (par $8).
Price—$11 per share. Proceeds—To be used to provide
members
■
capital
property, repay bank indebtedness, and add
to working capital.
Office—10630 Sessler Street, South
Gate, Calif. Underwriter—Dean Witter & Co., San Fran¬
cisco, Calif.
quire from
Allied Small
concerns.
f
of
plant and
3
(a)
purchase 15,000 shares of the issuer's common at a price
shares
Price—To be supplied by amendment.
Feb.
(c)
filed
1972, sold to New York Life Insurance Co., along with
12-year warrants granted said insurance; company to
(2/19)
50,000
cified number of
Office—115 Louisiana Street, Little Rock,
Underwriter—The offering is to be made by John
equity
.■
filed
Feb.
sales.
M
18
Proceeds—For working capital to be used in
the purchase of oil and gas properties and related forms
per
Arkansas
!;/
and
Proceeds—For
airports.
Anadite, Inc.
22
of sinking fund debentures,
ey2 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 6V2%
cumulative convertible first preferred stock; \
(2/23-6)
Inc.
Mit¬
Washington, D. C. Underwriters—G. J.
Baltimore Paint & Chemical
Jan.
Dec. 8 filed 375,000 shares of common stock. Price—$4.00
share.
companies engaged in
or to further sup¬
other
more
Co., Washington, D. C.; and Ralph B. Leonard'
& Sons, Inc., of New York City.
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.
at
or
insurance or finance
chell Jr.
vertible
Dec. 3 filed 1,000,000 shares of common stock.
ceive
1;
Tower Bldg.,
purposes,
per
one
of
business
plement the funds of the three subsidiaries. Office1—930
Co.
Sept. 14 filed 300,000 shares of common stock (par 400).
Price—$3.50 per share. Proceeds—For general corporate
of investment.
I
the
York, N. Y.
Allied Producers Corp.
h
sub¬
corporate purposes;
general
.
Ansonia Wire & Cable Co.
Bowling Centers, Inc* (2/29-3/4)
filed
porate purposes.
■
City.
March.
$750,000 of sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For
general cor¬
:!•;
three
of
E.
Gabriel Co., Inc., New York
Andrea
Aircraft
Dynamics International Corp.
Sept. 25 (letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
■
company's
formation
J.
Pa.
.
the
of
and the re¬
maining balance will be -used from time to time for
the purchase of all or a substantial interest in or the
Jan.
•
shares
the
for
Agricultural Research Development, Inc.
Jan. 25 filed 200,000 shares of common stock. Price—$5
per share.
Proceeds — 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,
Dec.
in
invested
sidiaries;
it American Telemail Service,
in
Employees Corp.
2,500,000 shares of common stock. Price—$2
Proceeds—Together with other funds, will be
share.
per
Seaway Land Co.
America
Feb. 5 (letter of notification) 100,000 shares of common
stock (no par).
Price—$3 per share. Proceeds—To re¬
pay bank indebtedness, for advertising, and for working
capital. Office — 328 Washington St., Wellesley, Mass.
Underwriter—Clayton Securities Corp., Boston, Mass.
Corp.
it Aerosol
li
Aviation
ISSUE
REVISED
27 filed 538,000 shares of common 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.
of
(par 10 cents).
—
•
ITEMS
•
PREVIOUS
Feb. 8 filed
Jan.
A.
Corp.
notification) 295,000 shares of com¬
Price—$1 per share. Proceeds
-^To purchase merchandise for payment of notes and
accounts
payable, and for advertising and other ex¬
penses.
Office—410 Studekum Bldg., Nashville, Tenn.
Underwriter
Crescent
Securities
Co., Inc., Bowling
21
stock
mon
Registration
working capital and surplus. Office—15 N. Broadway,
Rochester, Minn. Underwriter—None.
American
SINCE
Office—60
Oflice—13215 Leadwell Street, N.
Hollywood, Calif.
Underwriters —Amos Treat & Co.,
Inc., New York and Arthur B. Hogan, Inc., Los Angeles,
for working
Jan.
in
Now
Securities
February 18, 1960
Co.,
selling stock¬
Underwriter—Wertheim
Office—Cleveland, O.
New
Britton
Jan.
19
mon
York
Electronics
stock
(letter of
ceeds—For
(par
Corp.
notification)
one
general
.
City.
cent).
(3/15)
225,000
Price—$1
corporate
shares
per
purposes.
of
com¬
share.
Pro¬
Office—213-20
99th
Ave., Queens Village 99, N. Y. Underwriter—First
Philadelphia Corp., New York, N. Y.
Brooklyn Union Gas Co.
Jan.
stock,
(2/24)
150,000 shares of cumulative preferred
series A (par $100).
Price—To be supplied by;
25
filed
amendment.
Proceeds—For
repayment
of
bank
loans1
outstanding at Jan. 1; 1960. Office—176 Remsen Street,V
Brooklyn, N. Y. Underwriters—Blyth & Co., Inc. and
Eastman Dillon, Union Securities &
Co., New York, N.
Y..
Burch Oil Co.
Sept. 25 (letter of notification) 120,000 shares of class A
common
stock
Proceeds—For
(par five cents). Price—$2.50 per share.
building and equipping stations and truck
''^mmmmmmrnmnumm
Volume
191
Number
5926
.
The Commercial and Financial Chronicle
.
.
and additional working capital. Office—C/o Gar¬
D. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town
Bank Building, Baltimore 2, Md.
stop
land
•
^ Burned & Co.
15 filed 200,000 shares of
per
•
v
stock.
common
Price—$3
for manu¬
Proceeds—To repay bank loan;
amplifiers; for establishment
share.
magnetic
of
facture
of
a
filter
division; for the purchase of new
automatic winding and testing and production equip¬
ment; and for working capital. Office—10 Pelham Parkway,
Pelham Manor, N. Y.
Underwriter — Milton D.
crystal
new
Feb. 16 (by
V,
amendment) 400,000 additional shares
Proceeds
—'
For investment.
—
Metals
Office
Los
;
•'
California
>
(3/1)
Captains Club, Inc.
Jan; 22 filed 500,000 shares of common stock.
share.
Corp.
a piloi plant; for measuring ore; for
assaying; and foj
general corporate purposes. Office—3955 South State St.
Salt Lake City, Utah.
Underwriter—Cromer Brokerage
Co.,. Inc., Salt Lake City.
Proceeds—For retirement
Price—$2
of
$52,860 of 6%
notes and the balance for operating funds and working
capital. Office—381 Fifth Avenue, New York City. Un¬
per
of
<
Capital Airlines, Inc.
of cap-
ital stock..
Angeles.; :v
July 27 filed 2,500,000 shares of common stock. Price•fV"At par (20 cents per share). Proceeds—For constructioi
-
•
Jan. 26 filed 909,659 shares of common stock on the basis
of one additional share for each share held. Proceeds—
broaden equity base.
Office—Washington National
Airport, Washington 1, D. C. Underwriters — Lehman
Brothers and Smith, Barney & Co., New York, N. Y.
Fund, /Inc.
^California
Office—Calpella, Calif. Underwriter—The offering
is to be made by Ramond Benjamin
Robbins, one of the
nine promoters, the list of which also includes Harr>
Ernest Holt, of Eureka, Calif., President of the company
To
Blauner & Co., New York.
,
California Mutual Co-Ply, Inc.
Sept. 14 filed 140 shares of voting common stock. Price
V-At par ($5,000 per share). Proceeds—To purchase the
mill and related facilities of Durable Plywood Co. foi
$690,000, with the balance to be used for working capi¬
tal.
Feb.
.
(783)
derwriters—G.-.Everett
Parks
&
Co.,
Inc.,
and
Sulco
Securities, Inc., both of 52 Broadway, New York City.
Cardinal
Nov.
30
Petroleum Co.
filed
Price—$4
share.
per
4
shares
200,000
of
capital stock.
general corporate
common
Proceeds—For
31
including
purposes
debt
Office—420
reduction, drilling and work¬
No. 4th St., Bismarck, North
Underwriter—J. M. Dain & Co.,
Inc., Minne¬
apolis, Minn. Offering—Indefinite.
capital.
ing
Dakota.
•
Carolina
Natural
Gas Corp. (2/23-26)
120,000 shares of common stock. Price—To
supplied by amendment.
Proceeds—For debt re¬
duction, construction, and working capital. Office—256
First Avenue N. W., Hickory, N. C.
Underwriters —
Cruttenden, Podesta & Co., Chicago, and Odess-Martin,
Inc., Birmingham, Ala.
Dec. 30 filed
be
it Cascade Manufacturing Co.
8 (letter of notification)
5,000 shares of common
(par $10). Price—$44 per share. Proceeds—To re¬
pay outstanding debts.
Office—2201 N. E. 201st Ave.,
Portland, Ore. Underwriter—None.
Feb.
stock
•
Cascade
Pools
Corp.
(2/29)
Nov. 30 (letter of notification)
100,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
general corporate purposes. Office—River & Wood Sts.,
Butler, N, J. Underwriter—R. A. Holman & Co., Inc.,
New York, N. Y.
,
• Centennial Acceptance Corp.
(letter of notification) 275,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—For operating a finance office.
Office—314 First Na¬
Feb. 9
tional Bank Bldg., Colorado
Springs, Colo.
Underwriter
—None.
Century Properties
ISSUE
NEW
(Amos
Electronics,
Treat
&
Co.,
Inc„
Stoltz
Anadite, Inc.
Inc
B.
(Michael G,
Kletz & Co.,
Inc.
and Amos
American Telemail
Natural
Hunt
Gas
Walnut
(Francis
(Kidder,
Sonar
Walnut
(First
152,241
&
Co.)
150,000
&
Secode
shares
Co.,
Inc.)
164,689
Inc.)
$585,000
Baltimore
(P.
Chemical
&
Brooks &
W.
Baltimore Paint &
(P.
Brooks
W.
Co.)
Chemical
(P.
Brooks
W.
Brooklyn Union Gas
(Blyth & Co.,
&
Co.)
Inc.
and
Securities
&
-BHs
March
$20,000,000
Onyx Chemical Corp
(McDonnell
Inc.)
Co..
140,000
shares
&
Co.;
Bear,
Co.
Service
Co.
(Bids
Sunair
Electronics,
(Frank
Texize
;•
-
of
11:30
and
Sutro Bros.
Oklahoma
EST)
a.m.
&
&
$12,000,000
—....Common
(Bear, Stearns
&
Co.
H.
and
'
M.
Byllesby
Unterberg,
February 26
(Myron
March
28
Inc.)
& Co.,
—!
Towbin
Co.)
Common
110,000
shares
Lomasney
A.
Bonds
&
Allied
April 5
April
Co.) 36,400
Bowling
(Monday)
<
Centers,
Power
April 11
(Wertheim
(R.
$750,000
Commerce
&
Co.)
Drug
290,000
&
&
Co.,
Sulzberger,
Inc.)
$585,000
April
12
Mountain
Kirkland
Whitmoyer Laboratories, Inc
(Hallowell,
March
Sulzberger,
Jenks,
&
Co.)
.....Debentures
Capital
(Lehman
Airlines,
Brothers
Dworman
100,000
Co.)
.Common
(Charles
Barney
j
Plohn
&
Co.)
-—
&
Co.)
M.
Kirsch
Co.)
Common
$300,000
Puget Park Corp
(Hill, Darlington_& Co.)
stock
underwriter
will
offer
unsubscribed
9
(par
one
75,000 shares of class A
Price—$4 per share.
cent).
general
corporate purposes. Office—121
New York, N. Y. Underwriter—Lloyd,
2605 Connecticut Avenue, N. W., Wash¬
Street,
&
Citizens
Casualty Co.
of New York
250,000 shares of class A common stock
Price—To be supplied by amendment. Pro¬
filed
,
be
invested
in
income-producing
Office—33 Maiden Lane, New York City.
Lee
EST)
Bonds
$25,000,000
securities.
Underwriter—
Higginson Corp. Offering—Postponed.
Engines Corp. (2/25)
350,000 shares of common stock.
Price—
To be supplied by amendment.
Proceeds
To reduce
Jan.
filed
11
indebtedness.
Bonds
be
invited)
$19,500,000
Debentures
be
to
Invited)
$18,000,000
Telephone & Telegraph
Debentures
to
be
invited)
M.
Loeb,
Lehman
Rhoades
Common
&
Co.;
The
First
Boston
Corp.;
Brothers; Goldman, Sachs & Co.) $10,000,000
June 2
(Thursday)
(Bids
be
invited)
Park
Ave., New York City.
Underwriters
Bear, Stearns & Co., New York City,
and H.
M. Byllesby & Co.,
Inc., Chicago.
—
Colanco, Inc.
19
(letter of notification) 300,000 shares of pre¬
ferred (no par), seven cents per share dividend
paying
after March 1, 1962,
non-cumulative, non-voting stock.
Price—$1 per share. Proceeds—To purchase land and
for development and working
capital. Office—3395 S.
Jan.
..Bonds
$40,000,000
Street, Englewood, Colo. Underwriter—Diver¬
Securities, Inc., Englewood, Colo.
sified
Cold
Lake
Pipe Co., Inc.
200,000 shares of common stock. Price—$6
Proceeds—Repayment of loans and indebt¬
edness, working capital and expansion.
Office—1410
Stanley St., Montreal,, Canada. Underwriter—None.
Feb.
pe^
Generating Co
to
Office—250
Bannock
$40,000,000
West Penn Electric Co
July
(Friday)
1
filed
5
share.
it Collins
Valley Authority
(Bids to be invited)
Bonds
..Common
$816,725
Feb.
.
-
17
(Thursday)
Preferred
be
(Bids
invited)
$50,000,000
be
September 13
invited)
$5,000,000
(Tuesday)
Virginia Electric & Power Co
(Bids
November 3
to
be
invited)
.*
Bonds
$25,000,000
(Thursday)
Georgia Power Co
(Bids
to
of
convertible
subordinated
Proceeds
—
Price—To be supplied by amend¬
For general corporate purposes.
Of¬
Rapids, Iowa.
Underwriters—Kidder, Pea¬
body & Co. and White, Weld & Co., both of New York
City.
Bonds
to
Co.
$12,000,000
fice—Cedar
Co
to
Radio
filed
debentures, due 1980.
$50,000,000
ment.
July 7
Gulf Power
shares-
909,659
Common
&
Varick
Combined
Oct
$3,000,000.
Palm Beach-Dade Corp.
(T.
stock, to be of¬
record
Clinton
shares-
....Common
Smith,
the
it Circuitronics, Inc.
Feb. 9 (letter of notification)
(par $2).
Gulf Power Co
Inc
and
Corp.
of
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.
ceeds—To
Light Co
a.m.
common
to
Nov.
$450,000
$510,000
Kirkland & Co.) $500,000
American Business Systems, Inc
&
Inc.)
—,
Tennessee
(Tuesday)
(Bache
Co.,
(Tuesday)
(Bids
1
&
Gas Co
States
Common
Inc
Jenks,
date,
of
share, initially; after 15 days from the of¬
per
fering
snares
stockholders
Jan. 1 at the
shares for each three shares then held*
new
Co.,
ington, D. C.
Stock
to
Southern Electric
shares
Common
Laboratories,
(Hallowell,
Price—$2
Speedway, Inc.
304,000
common
$100,000
Co., Inc.)
Co...
Sloss
to
Miller
(Monday)
Fuel
Common
Holman
(Marron,
Whitmoyer
.
Common
Corp..
A.
$375,000
Co
(Bids
(Carl
..Debentures
Inc
-
Pools
Common
**
Lomasney & Co.)
11
(Bids
300,000 shares
Inc.)
Bowman Co.
Cascade
filed
21
fered
Proceeds—For
(Thursday)
\
Common
(Rauscher, Pierce & Co., Inc.)
,
Bonds
$4,000,000
shares
_____—Common
Bowling Centers, Inc
Allied
EST)
(Tuesday)
7
National
& Co.)' $300,000
(Rauscher, Pierce & Co.,
Bonds
(Tuesday)
Co.
February 29
"
Co.
Common
Carolina Power &
Alabama
$25,000,000
Transit Freeze Corp
(Jerome Robbins
.
$15,000,000
Bank of California
Nord Photocopy & Business Equipment Co.__Com~
(Myron
Service
Hamilton,
_•
Karasik
(Bids
EST)
a.m.
Godfrey,
$497,250
Co
(Frank
(Bids
Dayton Power & Light Co.
11
mortgages. Office
Underwriter—Commonwealth Secu¬
Corp., Columbus.
shares
(Monday)
Panel
(Friday)
(Bids
A.
Proceeds—To pay
—
Lewis Business Forms, Inc..
E.
and
Inc.)
Industries, Inc
shares
350,000
(C.
Common
—
>
$25,000,000
invited)
a.m.
share of each class of stock. Price
one
unit.
per
rate of two
(Blyth & Co., Inc.) ,256,930 shares
(Thursday)
Clinton Engines Corp
$14,000,000
Co
11
250,000 shares of class A stock ($10 par)
shares of class B stock (20c par), to be
Charlotte Motor
Jan.
(Monday)
March 29
(Kidder, Peabody & Co.) 174,576 shares
February 25
Arcs
Pacific
Co., Inc.), $600,000
$225,000
Bonds
Co.,
be
250,000
offered in units of
common
Inc.-___-__-_.^__-— .Common
Karasik
Chemicals, Inc
■
(Bids
Co.)
-—.Bonds
Corp.)
.Common
Co.,
Credit & Thrift Corp.
filed
—$20.20
(Thursday)
shares
400,000
Public
Common
Stearns &
to
Power
March 21
Phillips Developments, Inc
(Allen
17
Mississippi
Common
&
&
&
26
rities
EST)
a.m.
Corp.
(letter of notification) 200,000 shares of common
stock (par 50 cents). Trice—$1.50 per share.
Proceeds
—To pay off accounts payable and for working
capital.
Office—755 Nash St., El Scgundo, Calif. Underwriter—*
A. T. Brod & Co., New York, N. Y.
—Columbus, Ohio.
EST)
Northern Indiana Public
Union
$15,000,000
EST)
a.m.
a.m.
Ferman
(Bids
.Debentures
11
L.
capital.
Angeles, Calif.
Co., Beverly Hills, Calif.
Feb. 3
Certified
$1,500,000
Light Co
11
building in Torrance, Calif, and for working
Jan.
Corp._______________Common
11
price of property in Ven¬
the balance of construction costs on
pay
Underwriter—Daniel Reeves &
and
Philadelphia
Magnus
Dillon,
Eastman
Co.)
Duquesne Light Co
Common
Inc._._i______
(Robert
Debentures
....Preferred
Co., Inc
Lincoln, Nebraska and
& Co.)
300,000 shares
underwriting)
(Bids
$750,000
Co
Cruttenden,
Chesapeake & Jpotomac Telephone Co. of
West Virginia
—u...
Debentures
Goddard,
Baltimore Paint & Chemical Corp
and
$3,000,000
(Tuesday)
(First
Bonds
$750,000
Debentures
Nebraska
Co.)
of
Co.
to
Certified American Industries
$51,000
.
1
$1,800,000
&
Podesta
(Bids
Corp
Co.)
&
Lincoln,
Electronics
t.
Corp._.j.__Preferred
Inc.)
Debentures
15
(Wednesday)
Paint
Co.,
(Monday)
Central Illinois
February 24
shares
Corp.
Britton
Common
O'Neill & Co.,
14
March
shares
&
Products
Trust
(No
Common
_
Corp
(George,
March
68,000
Debentures
of
Cruttenden,
shares
Inc.)
Co.,
Products Co., Inc
Co.
Grove
120,000 shs.
Common
Pont
Peabody
Radio
Co.)
Inc
du
I.
Row, Peterson & Co
Trust
&
Holman
A.
Podesta
Common
&
tura, Calif.;
Common
Holman
A.
Grove
(First
Common
Podesta
Videotronics,
,
(R.
Common
Culligan, Inc.
Price—To
be supplied by amendment. Proceeds—For
repayment of
unsecured bank loans; for payment of the balance of a
down payment on the purcnase
Office—1738 S. La Cienga Boulevard, Los
Magic, Inc..
$1,500,000
Corp
Common
Inc
(R.
Co.)
-
(Monday)
Glass
-
(Cruttenden, Podesta & Co. and Odess-Martin, Inc.)
(Cruttenden,
7
Magic,
Co., Inc.)
Service, Inc
(Edgar B.
MPO
March
(Tuesday)
February 23
•
Inc...
Glass
Common
Treat &
$154,962.50
Jan. 25 filed 150,000 shares of common stock.
a
shares
$300,000
Carolina
.
Capital
50,000
Universal Transistor Products Corp....
Devices,
Co.)
&
E.
(Offering to stockholders—underwritten by C. E.
Stoltz & Co.) $537,788.75
•'
$225,000
i
Co.)
&
Inc.)
H'ogafl',
-----—
Witter
(Dean
Taylor
..Common
Arthur
and
Common
(Offering to stockholders—underwritten by C.
(Friday)
February 19
Accurate
Tayco Developments, Inc
CALENDAR
30
Electronics
Inc.
filed
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.
Bonds
be
Invited)
$12,000,000
Continued
on
page
32
w
,»«Ml.,v{ )'***.+
',.
■
■
.
—
~
-—;
;
The Commercial and Financial Chronicle
(784)
.
.
Thursday^ February 18, 1960
.
fered
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.
•
Computer Usage Co., Inc.
(letter of notification) 47,000 shares
Culligan, Inc.
Jan. 22
of common
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
First Albany Corp., Albany, N. Y.
Offering—Expected
«
V.\
t: 1
the
Development Corp.,
Pompano
i
.
24
and President of the underwriting corporation.
company
Consolidated
Dec. 30
24,900 shares of class A
(par $1Q). Price—$12 per share. Pro¬
ceeds— To
pay
in part bank loans.
Office — 327 S.
La Salle Street, Chicago, 111. Underwriters—Milwaukee
Co., Milwaukee, Wis. and Indianapolis Bond & Share
Corp.; Indianapolis, Ind.
m
'%■
y..i
Co.
(letter of notification)
stock
common
•Y
Water
■
Consultants
Bureau
Dec. 29 filed 147,000 shares of class A common stock, of
104.000 are to be offered for public sale for the
account of
s
■
*
{
{■
*
t
■?
iii
Vj'
Ifst>v
\%»
N.
'■
I-
•V A4,
•
Y.
t \V
Feb.
:
It...:
V",'*
■
'
t
.
s
*3
1/
*
j11
f
■
.
*
■
■
Fi
:
U
»
t'i
i.
'
-
1
'
<
.
V
•[
.
$ f
i
f
;
{':*
r
1
1
i
J*
,
i
f,)
i|
)i
t'
Co., Nashua, N. H.
•
Control Electronics Co., Inc.
Dec. 23 filed 165,000 shares of common
K
•tv
I
'■
i
1
i
1
•
.
>i
The
balance
11 i'
Cornbelt
t ;j
'
of
the
proceeds
Sept.
1
Office
will
be
added
to
10
Stepar Place, Huntington
Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose & Feuer, all
of New York.
c
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.
record
Offering—Expected in March.
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
—
filed
for
for each 10 shares then held.
be
Unsubscribed shares may
offered
publicly. Price—$4 per share. Proceeds—
To increase capital and surplus.
Underwriter—None,
but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.
Cornbelt Life Co.
Sept. 29 filed 100,000 shares of common sfdcic, to be of¬
fered to stockholders of record Sept. 15 on the basis of
one share
for each share then held.
Price—$4.50 per
ghare.
Proceeds—To be credited to stated capital and
paid-in surplus.
port, 111.
Office—12 North Galena Avenue, Free-
Underwriter—None.
Crusader Oil & Gas Corp., Pass Christian, Miss.
r
•
*
r;-
* '
&*'
I' #
'
May 28 filed 1,500,000 shares of common stock, of which
<41,613 shares will be offered on a one-for-one basis to
The remaining 858,387 shares will be of¬
stockholders.
—
'
Minn.
"
1
U...i:ULulMl
plus.
Mo.
Dayton Power & Light Co. (2/26)
26
filed
$25,000,000
of 30-year first mortgage
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 & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc. and White,
Weld & Co. (jointly); Lehman Brothers, Blyth & Co.,
Inc.
and
The
First
Boston
Corp. (jointly); Morgan
Stanley & Co. and W. E. Hutton & Co. (jointly). Bids
—Expected up to 11 a.m. on Feb. 26.
Underwriter—Stern Brothers & Co., Kansas City,
'
of
recent
sale
Products,
100%
of principal amount;
for the stock, $5 per share.
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—6310 S. W. 81st St., Miami, Fla.
Proceeds—From
Diversified Communities, Inc.
Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
Offer¬
ing—Postponed.
>_;V■.'//•:■ ■■■'
Don Mott
Associates, Inc.
Oct. 27 filed 161,750 shares of class B,
mon
stock (par $5). Price—$10 per
non-voting, com¬
share. Proceeds—
For general corporate purposes, including payment on
a
building and the financing of loans. Office—Orlando,
Fla. Underwriter—Lecn H. Sullivan, Inc.; Philadelphia,
Pa., on a "best efforts" basis. Offering—Expected any
day.-; //;/,/'.v.--filed
$20,000,000
Proceeds—For
termined
construction.
competitive
by
of
sinking
fund
debentures.
Underwriter—To
bidding.
Probable
be
de¬
bidders:
Halsey, 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 a.m.
(EST)
on
Feb. 24.
Dworman
Jan.
filed
15
'
Corp. (3/1-4)
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 & Co., New York City.
per
E. H. P. Corp.
:
Aug. 31 filed 160,000 shares of capital stock (par 10c),
of which 100,000 shares are to be publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
distribute automobile breakdown insurance policies on
.
.
thruways, parkways and highways An the amount of $25
of such breakdown insurance for the purchase price of
25 cents, and for a public relations and publicity pro¬
gram.
Office—Hotel Troy Building, Troy, New York.
Underwriter—John R. Boland & Co., Inc., New York.
Industries, Inc.
150,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—To repay $250,000 of borrowings used to purchase tooling for the man¬
ufacture of newly-developed toys; $300,000 to purchase
additional tooling for the manufacture of new products;
$200,000 to repay borrowings obtained to fund the pur¬
chase of Astral Electric Co., Ltd.; $200,000 to defray the
it Eldon
in
connection
improvements and in moving expenses
with
the
occupancy
of its
new
plant
at
Calif.; $150,000 for purchase of additional
injection molding equipment; and the remaining pro¬
ceeds to be applied against outstanding bank loans or
added to working capital. Office—1010 East 62nd Street,
Hawthorne,
Underwriters—Shearson, Hammill &
and New York; and Stern, Frank,
Meyer & Fox, Los Angeles.
Los
Co.,
Angeles, Calif.
Los
Angeles
it Electro Instruments, Inc.
Feb. 16 filed 78,000 shares of common stock (par $1), of
which 53.000 will be sold for the account of certain sell¬
ing stockholders and 25,000 are to be issued and sold by
the company.
Price—To be supplied by amendment.
Proceeds—To be used to construct a new 63,000 square
foot manufacturing
plant in San Diego, to purchase fix¬
equipment, for the new plant, to retire shortterm indebtedness incurred for the purchase of Interna¬
tures and
tional
Electronics
and
to. supplement
working
capital.
stock
common
stock
such
of
not
Straus, Blosser & McDowell, Chicago,
•
to
exceed 10,000
(par $1). Price—At the most •
on the American Stock Ex— .1,
Proceeds—To go to a selling stockholder. Office
West, Monroe St., Chicago, 111. Underwriter-
change.
Motors
Eshelman
111.
Corp.
shares of common stock (par $.10).
Oct. 26 filed 250,000
Price—$3.00 per share.
Proceeds—For general corporate
Office—Baltimore, Md. Underwriter — Leo
& Co., Inc. of New York City. Offering—Ex¬
purposes.
Hershman
pected any day.
Inc.
200,000 shares of class A common stock.
Estates,
filed
24
Dec.
Price—$5 per share. Proceeds—For purchase of various
properties, for development and subdivision thereof, and
to meet operating expenses, salaries and other costs, but
principally for the purchase and development of large
Office—3636-16th
land.
of
tracts
Street, N. W., Wash¬
ington, D. C. Underwriter—Consolidated Securities Co.
of Washington, D. C.
•
Federated
Jan.
filed
11
Inc.
Purchaser,
170,000 shares of class A stock.
Price—$4
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.
The balance will be used for inventory, working
capital, and general corporate purposes. Office—Moun¬
tainside, N. J. Underwriter—Milton D. Blauner & Co.,
Inc., New York City. Offering—Expected in late Feb.
Proceeds—To
share.
per
Federated
Jan.
filed
19
Reserve
Life
Insurance
Co.
(par $1).
Price—$10 per share. Proceeds—For capital and surplus of the company, which has not as yet done any life
insurance business but expects to sell all forms of it.
300,000 shares of common stock
-
Office—West
Memphis, Ark. Underwriter—The offer¬
ing is to be made through three promoters and officers
a
selling commission of $2
per
share.
it Forest Lawn Mortgage & Investment Co.
Feb. 12 filed 100,000 shares of common stock (with at¬
$
tached warrants for the purchase of an additional 100,000 shares).
The warrants are exercisable at $10 per
share.
Price—$10 per share (with warrants). Proceeds
general corporate purposes. Office — 1600 South
Glendale Ave., Glendale, Calif. Underwriter—None.
—For
•
Forest
Hills
Country Club Ltd.
75,000 shares of common stock (par 10^).
Price—$4 per share. Proceeds—To build a country club
in Forest Hills, L. I., N. Y. Office—179—45 Brinckerhoff
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome
Robbins & Co., 82 Wall St., New York City. OfferingJan.
29
filed
Expected in late March.
it Founders Mutual Depositor Corp., Denver, Colo.
Feb. 12 filed (by amendment) an additional three series
of certificates
aggregating $42,000,000. Proceeds—For
investment.
•
General
Devices, Inc.
Jan. 6 filed
60,888 shares of common sock, to be offered
subscription by common stockholders on the basis of
for
one
share
new
for
each
five
shares held on Feb. 16;
Price—$13 per share.,; Pro¬
land, construction thereon, new equipment,
debt reduction, and working capital.
Office — Ridge
Road, Monmouth, Junction, N. J. Underwriter—Drexel
rights expire
on
March
1.
ceeds—For
&
Feb. 15 filed
cost of leasehold
notification)
of
(letter
who will receive
(2/24)
Duquesne Light Co.
21
'
.
28
—714-18
Inc.
Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the debentures,
■
Manufacturing Co.
Ero
shares
Deluxe Aluminum
Proceeds—To increase capital and sur¬
by amendment.
Jan.
$10
products, and for working capital. Office — 715
Hamilton St., Geneva, 111. Underwriter—Old
Colony In¬
working capital.
'■<
r
:
Co.
,
;
!
Electric
Co., Inc., N. Y.
filed
11
vestment
N1#
f!
&
new
:»;>
J
I
'1 Sfc
1
David
260,000 shares of common stock. Price—
To be supplied by amendment. Proceeds—To retire out¬
standing bank loans, for expansion and development of
-
rf J
!1
stock,
share.
Underwriter—William
it Continental
•
:f<'V
[
company
Offering—Expected in February.
j
1
the issuing
outstanding
and 43,000 shares, rep¬
by the present holders
thereof. Price—$3 per
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,
resenting
1
payment of an outstanding mortgage note and working
capital. Address — East Highway 50, Vermillion, S. D.
Underwriter
Woodard - Elwood & Co., Minneapolis,
Employers Reinsurance Corp.
Feb. 8 filed 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
Jan.
Enterprises, Inc.
which
i
common
each
Jan.
Beach, Fla.
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
Nov.
stock (par 20 cents) to be offered in units,
consisting of $1,000 debenture and 200 shares" of
common
stock.
Price—$1,300 per unit. Proceeds—For
of
bonds.
above
Consolidated
•
(letter of notification) $100,000 of 7% subordi¬
nated debentures due April 1, 1970 and 20,000 shares
1
Chicago, 111.
(par 20c),
not subscribed for by the debenture
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 underwriter, $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.,
New York. Offering—Suspended by SEC on Feb. 12.
:U'
■■**.<: v* '
Electronics Inc.:'
Feb.
nance Corp. to permit expansion of its Culligan dealer
financing activities, and the balance for general cor¬
holders of
the issuing company's 6% convertible debentures, and
100,000 shares are to be offered to the underwriter, with
the remaining 150,000 shares, in addition to those shares
and
of
SanuDiegonCalif,, Underwriter.
New.Ybrk.^yVvMlt:'
porate purposes. Office—1657 S. Shermer Road, Northbrook, 111.
Underwriter — Cruttenden, Podesta & Co.,
Aug. 28 filed 448,000 shares of common stock
of which 1198,000 shares are to be offered to
holders
of common stock, of which
shares are reserved for issuance upon con¬
an
equivalent number of class B common
shares. Price—To be supplied by amendment. Proceeds
—To erect and equip the company's plant in Northbrook;
for investment or advances to its subsidiary, CWC Fi¬
Consolidated Development Corp.
described
(2/23-26)
152,241 shares
16,741
ing
version
:A\v.:y<,; -J;
day.
any
filed
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¬
stock (par
l/>
—Bear, Stearns & Co.,
publicly by the underwriter on a "best efforts"
Price—To be supplied by amendment. Proceeds—
For repayment of notes and for working capital. Under¬
writer—To be supplied by amendment.
Commerce
Dec. 29
Office—3540 Aero Court,
basis.
Continued from page 31
Nov. 30 filed
; "l>*
,,
.'.*-V.
,lf
.
,.^;r
32
VV"***1
Co., Philadelphia, Pa.
General
Jan. 7
per
Foam
filed
share.
Corp.
175,000 shares of
common stock.
Price—$4
Proceeds—To enable issuer to enter synthetic
foam
manufacturing business.
Office—640 W.
134th
Street, New York City. Underwriters—Brand, Grumet
& Seigel, Inc., and Arnold Malkan &
Co., Inc., on a
"best efforts" basis.
Offering—Expected in February.
it General Motors Acceptance Corp.
Feb. 16 filed $100,000,000 of
21-year debentures, due
1981.
To
be
Price—To be supplied by amendment.
added
Proceeds—
to
the general funds of the company
available for maturing debt or for the
and
purchase
Office—1775 Broadway, New York City.
Underwriter—Morgan Stanley & Co., New York.
will be
of receivables.
^-General Securities, Inc.
Feb. 16 (by
amendment) an additional
of
common
stock.
170,000
Proceeds—For investment.
shares
Office—-
Minneapolis, Minn.
Genesco, Inc.
87,186
filed 587'18® shares of common stock. Of the
total,
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
publicly. PTice—To be supplied by arrtendm'ent.c Under- *
writer—Blyth & Co., Inc., New York.
s
Volume
Number 5926
191
.
.
.
The Commercial and Financial Chronicle
★
Resources Exploration, Inc.
^ Geo
(letter of notification) 25,000 shares of common
stock (no par).
Price—$5 per share. Proceeds—For
mining expenses. Office—1801 Tabor St., Denver, Colo.
Underwriter—None.
Feb. 8
Magic,
Glass
•
Lexington Ave., New York
outh Securities Corp., New
pected in early March.
(letter of notification) $51,000 of six-year 6%%
convertible debentures to be offered in denominations
★
off current accounts payable; purchase of raw
and for expansion.
Office —2730 Ludelle
I C
Street, Fort Worth, Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y.
^
T
Inc.
convertible subordinated
debentures and 25,000 shares of common stock.
Prices
—For the debentures, 100% of principal amount; for
Industries,
enfranchising of bottlers, the local and national pro¬
and advertising
of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver
to be supplied by amendment.
Proceeds—
general corporate purposes, including expansion
reconditioning of plant.
Office—Providence, R. I.
Underwriter—Stanley Heller & Co., New York City.
For
Imperial Investment Corp. Ltd.
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.
Jan. 29
$600,000 of 6% sinking fund debentures,
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
filed
11
due Jan.
Industron
production equipment, and debt reduction. Office—920
Justin Lane, Austin, Texas. Underwriters—Hardy & Co:,
New York City, and Underwood, Neuhaus & Co., Hous¬
Jan.
•
Inc.
(3/15)
153,000 shares of
share. Proceeds—For
filed
$3.25 per
reduction
indebtedness
of
ton
stock.
common
and
Price—
general
corporate
pur¬
Office—1309 North Dixie Highway, West Palm
Beach, Fla. Underwriters — Robert L. Ferman & Co.,
Miami, Fla. and Godfrey, Hamilton, Magnus & Co., Inc.,
New York City.
poses.
Great
Price—To
be
supplied
general corporate
of
bowling
purposes,
lanes,
bars,
Michigan properties.
troit, Mich.
Chicago, 111.
(par $1).
Proceeds—For
restaurants
on
★
Office—6336 Woodward Ave., De¬
Corp.)
Feb.
one
share
of
—$28 per unit. Proceeds—For debt reduction and the
building of a recreation park.
Office—3417 Gillespie
Street, Dallas 19, Texas. Underwriter—Glore, Forgan &
Co., New York City. Offering—Expected in March.
:
■
Green
River
Production
;
,
Oct. 15
(letter of notification) 200,000 shares of common
(par 50 cents). Price—$1.50 per share. Proceeds—
For expenses for exploring for oil and gas. Office—212
Sixth Ave., South, Nashville, Tenn. Underwriter—Cres¬
cent Securities Co., Inc., Bowling Green, Ky.
-...: /
cumulative
of
Feb.
Associates
/
•
account
000,
Price—$10,000 per unit. •
one-half interest.in Harundale Mall, a
West
El
regional shopping
Office—14
Saratoga
Street, /.Baltimore,
Md.
Underwriter—
None.-,
.;///'J/,:V''' .0''!'..,
★'Hercules
Powder Co.
Intra
Feb.
16
Jan.
>
''
filed
509,802 shares of $2 cumulative convert¬
ible class A stock (no par) / and 458,822 shares of com¬
mon stock.
The class A stock will be issued to Imperial
Color
Chemical
&
conversion
rate
will
be
at
8/10' shares.
tached
Corp.
136,000 shares of common stock, of- which
125,000 are to be publicly offered and 11,000 have been
already acquired\at$T per -sharer by the President • of
M. L. Lee & Co.
Price—$5 per share. Proceeds—For
8
general
Boston,
eral
4,175
of
shares
filed
,
of
$1,800,000
10%
warrants
for
in
the
and
funds
real estate.
★
•,
Island
Nov.
23
v
the present holder
,
.
common
stock
of which
subordinated debentures
purchase
amount,
of
an
with
aggregate
at¬
of
working capital
and
will
be used pri¬
improvement of parcels of
Underwriter—None.
Industries, Inc.
$200,000 of 10-year 10%
registered debentures. Price—$100 per debentures. Pro¬
ceeds—For general corporate purposes. Office — 30 E.
Highway Trailer Industries* Inc.
/Sunrise Highway, Lindenhurst, N. Y.
Underwriter —
Jan. 29 filed $3,00.0,000 convertible subordinated deben¬
Heft, Kahn & Infante, Inc., Hempstead, L. I., N. Y.
tures, due August, 1975. Price—$100 per $100 debenture.;
Offering—Expected at the end of February., /
Proceeds-^For *exbansioh purposes and the discharge of
debts. Office—250 Pgrk Ave., New York City.
★ Jackson Hole Corp., Inc.
Under¬
Feb. 5 (letter of notification) 300,000 shares of common
writers—Allen & Co., and Van Alstyne, Noel & Co., both
of New
.Xprl^C.ity,.>>
y^.* ->;stock. Price—- At par- ($1 per share). Proceeds — To
r
outstanding shares of common stock
York.
($1 par).
corporate
working capital.
Landsverk Electrometer Co.
(letter of notification) 150,000 shares of com¬
(no par). Price—$2 per share. Proceeds—To
the cost of new quarters and for the development
,
stock
cover
of
and for working capital.
Office—641
Glendale,' Calif. Underwriter—Holton,
Co., Los Angeles, Calif.
Offering—Ex¬
projects
new
Sonora
Avenue,
Henderson
&
pected any day.
•
Works, Inc.
of 5-year notes wth common stock
Larson Boat
Jan. 8 filed $300,000
warrants
purchase
holder
each
the
right
attached,
to- buy
said
40 shares
warrants
granting
of the common for
$1,000 principal amount of notes held at $10 per
share.
Price—The notes are to be offered at
in denominations of $500. Proceeds — For
common
principal
(letter of notification)
Cooler Co.
9 filed 100,000
mon
Funding Corp. of New York
six series of
marily for the purchase or
corporate purposes. Office—702 Beacon Street,
Mass.
Underwriters—M. L. Lee, & Co., Inc.;
Milton
.
development
/
31,500 shares of common stock at $10 per share. Price—
Debentures
(with
warrants)
at
100%
of
principal
amount.
Proceeds—To be added to the company's gen¬
filed
D. Blauner & Co,„ Inc.,,;. and Kesselman & Co.,
Inc., all of New York City, on an "all or nothing" basis.
Offering—Expected'in March. 1 :
12
aggregating
V
Hermetite
Jan.
filed
the
Dec. ,28
3,675 shares are to be offered for subscription at $100
per share by common stockholders at the rate of one
new
share for each four shares held on Feb. 20.
The
balance of the shares are for the employee stock option
Feb.
which may
.
•
unit.
State Telephone Co.
★ Investors
The -common
shares filed represent the maximum number
be converted. Office—Wilmington, Del.
per
plan. Proceeds — For general corporate purposes and
payment of bank loans. Office—100 North Cherry St.,
Galesburg, 111. Underwriter—None.
Paper Corp.'in connection with the
acquisition of Imperial by Hercules, scheduled for April
1. Each such class A share will be convertible into 9/10
shares of Hercules common for 60 days; thereafter the
.
29
to
including inventory, leasehold improvements,
Office —165-08 Liberty Avenue,
Jamaica, L. I., N. Y. Underwriter—D. A. Lomasney &
Co., New York City. Offering—Expected in mid-March.
and
in issuer's 1960
;
general
for
Office—521 Fifth Avenue,
be added
purposes
Underwriter—Blyth & Co., Inc., San
Segundo, Calif.
will
LaFayette Radio Electronics Corp.
Dec. 4 filed 225,000 shares of common stock
Price—$5 per share. Proceeds—For general
company's general funds.; Office—
Francisco and New York.
in Anne Arundel County, Maryland.
center
stock, by
outstanding
La Crosse
& Co., New
Price-^To be supplied by amendment. Proceeds
—To be added to the
excess
Proceeds — To selling stockholder. Price—To
supplied by amendment. Office—2809 Losey Blvd.,
South La Crosse, Wis. Underwriter—Shearson, Hammill
are to be offered for public sale for the
of the issuing company and the remaining 60,-
being
thereof.
interests in Asso¬
Proceeds—To acquire '
Any
the company to be used from time to time
(par $2).
60,000 shares
Jan. 7 filed $1,190,000 of partnership
ciates.
Office—New York City.
oil leases.
:•
•
and
securities
by the company from time
Stock Exchange. Proceeds—
•
Price—$5,000
exploration
finance
American
the
on
acquired, which
so
resold
be
be
★ International Rectifier Corp.
Feb. 15 filed 120,000 shares of common stock, of which
-
Mall
exploration program.
Proceeds—To
purposes.
•
Harundale
filed ,300 participating interests
oil and gas
-
..
>,
•
Feb.
-
Office.—
45-14 Queens Boulevard, Long Island City, N. Y. Note: /The securities are to be offered first to holders of seciirities- in Guardian Loan Co., Inc. and Tilden Commer-,
cial Alliance,/Inc., subsidiaries of the issuing company.
Underwriter—None.
'-h.•
■: /•/;■;*
corporate
16
time
be
may
general corporate purposes.
New York City.
Underwriter—None.
Oil Participants Corp.
★ International
which
thereafter
mortgages.
Price—$3
general corporate purposes,
Office—1700 Broadway, Denver,
Colo.
Underwriter—
Speculative Securities Corp.,/ 915 Washington (Street,
Wilmington, Dei., on a "best efforts" basis.
*
rights
funds of
Proceeds—For
share.
per
be acquired
development of its Ebbets Field housing project
in
Brooklyn; and $800,000 for the prepayment of certain
Aspirin Corporation
filed 600,000 shares of common stock.
preferred '
(par $10b $1,060,000 of 15-year 8% subordinated
capital notes, and $1,250,000 of 12-year 7% subordinated
capital notes. Prices—At par;; and principal -amounts.
Proceeds—For •general
v
(no par).
7
Dec.
*
stock
(formerly General Finance
International
stock
may
$2,587,500 for the exercise of a right of a subsidiary to
acquire the interests of certain ventures in and to leases
and mortgage pertaining to the Kratter Building, and
112-122 W. 34th Street, in New York; $2,500,000 for the
St., New York City.
Corp.
shares which
Fla., and in the amount of $3,000,000 for repayment of
unsecured bank loans. The company also intends to use
bury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass. Offering—Expected in February.
Corp.
Guardian Tilden Corp.
Dec.
17. filed
100,000 •> shares
to
For invest¬
—
common
$8,000,000 to acquire the Americana Hotel, Bal Harbour,
Integrand Corp.
Oct. 13 filed 85,000 shares of common stock (par 5c).
Price—$4 per share. Proceeds — For general corporate
purposes, including the redemption of outstanding pre¬
ferred stock and new plant equipment. Office—West-
Price
common.
of
would
150,000 shares of common
Price — $2 per share. Proceeds — For
working capital.
Office—Avenida Condado 609, Santurce,. Puerto Rico. Underwriter—Caribbean Securities
Co., Inc;, Santurce, Puerto Rico.
Corp.
of debenture and
130,000 class A
(letter of notification)
1
stock
$11,500,000 of cumulative income deben¬
tures, due Jan. 1, 1975, and 575,000 shares of common
stock (par $1), to be offered in units of $20 principal
amount
Office—85 Broad
Insular Finance
Proceeds
share of
one
by the company in stabilizing transactions during the
offering of the preferred, and an indeterminate number
Ltd.
an additional 599,000 Institu¬
shares.
at the rate of
common
preferred for each three common shares held. Shares
.not purchased by stockholders may be offered for public
sale or in exchange for properties.
The registration
statement also
includes
130,000 preferred shares and
Co., Boston, Mass.
ment.
various
filed
10
&
class A and class B
(par $1).
tional Foundation Fund
including the development
and
Corp.
★ Institutional Shares
Feb. 16 (by amendment)
Underwriter—Straus, Blosser & McDowell,
Great Southwest
Dec.
amendment.
by
vertible preferred stock
writer—Shearson, Hammill & Co., New York.
Lakes
Bowling Corp.
Aug. 31 filed 120,000 shares of common stock
• Kratter Corp.
15 filed 1,300,000 shares of $1.20 cumulative con¬
(par $1) to be offered for sub¬
scription at $20 per share by holders of outstanding
Feb.
(letter of notification)
stock
Co., Inc. and Netherlands
Securities, Inc., both of New York.
★ Inland Credit Corp.
Feb. 12 filed 190,000 shares of class A stock (par $1).
Price—To be supplied by amendment., Proceeds—For
acquisition of outstanding accounts of Ardisco (affi¬
liate);, and the balance for additional working capital.
Office—11 West 42nd Street, New York 36, N. Y. Under¬
by subsidiaries for
use
Underwriters—J. A. Winston &
60,000 shares of class A
Price—$4 per share. Proceeds
—For
working capital.
Office — 55 Needham Street,
Newton Highlands, Mass. Underwriter—Schirmer, Ather-
Goddard,
29
14
common
ton, Texas.
Jan.
• Keystone Electronics Co., Inc.
12 filed 200,000 shares of common stock.
Of this
stock, 133,334 shares are to be offered for public sale
for the account of the company and 66,666, being out¬
standing stock, by the holders thereof. Price — $3 per
share. Proceeds—For additional equipment and inven¬
tory; for research and development; and the balance for
working capital. Office—65 Seventh Ave., Newark, N. J.
Feb.
Colo.
Glastron Boat Co.
Jan.
Kavanagh-Smith & Co.
C.; Allied Securities Corp., Greensboro, N. C.; J.
Sturgis May & Co., High Point, N. C.; Vaughan & Co.,
Wilmington, N. C.
motion
and
Teton
N.
and in the preparation of the concentrate
and
filed $500,000 of 6V2%
stock,
the
600,000 shares of common stock (par $1)
share. Proceeds—To further the corpo¬
per
rate purposes
.
2
Companies, Inc.
Inc.
Price—$2.50
Jackson,
—
145,000 shares of common stock, of which
115,000 shares are to be offered for the account of the
issuing company and 30,000 shares, representing out¬
standing stock, are to be offered for the accounts of the
present holders thereof. Prices—For 20,000 shares, to be
initially offered to company personnel, $4.50 per share;
for the 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,; McCarley & Co., Inc., Asheville,
(letter of notification)
June 29 filed
Address
resort.
Dec. 30 filed
Offering—Ex¬
stock (par one
mon
materials
Glass-Tite
•
100,000 shares of com¬
cent). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—125 E. 50th
Street, New York, N. Y. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth Avenue, New York, N. Y. Offering—
Expected in March.
$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—
Feb.
14
City.
winter
a
33
County, Wyo. Underwriter—None.
Underwriter—Plym¬
City.
York
Howe Plastics & Chemical
Dec.
of
pay
develop
200,000 shares of common stock. Price—$3
Proceeds—For working capital. Office—405
share.
per
Dec. 30
To
Conditioning Corp. of America
Dec. 29 filed
(3/7)
Inc.
Hi-Press Air
(785)
face
value
capital. Address—c/o Paul G.1 Larson, RiverDrive, Little Falls, Minn. Underwriter—Fulton,
Reid & Co., Jnc., Cleveland, Ohio.
Offerings-Imminent.
working
view
• Latrobe Steel Co.
Feb. 12 filed 116,000 shares of capital stock,
of which
60,000 shares will be offered for public sale by the com¬
pany and 56,000 shares are outstanding and will be sold
by officers of the company. Price—To be supplied byamendment. Proceeds—For new equipment and facilities
and
to
enlarge
—Kidder,
Electronics Co.,
Lawn
Nov. 25
the company's warehouse.
Underwriter
Peabody & Co., New York.
Inc.
(letter of notification)
133,000 shares of common
cent). Price—$1.50 per share. Proceeds—
For general corporate purposes.
Office — Woodward
Road
Englishtown, N. J. Underwriter—Prudential Se¬
curities Corp., Staten Island, N. Y.
The registration
statement will be altered and the number of shares re¬
stock (par one
duced.
• L-E-Gant, Inc.
_
Feb. 11 (letter of notification) 4,000 shares of preferred
stock (par $50) and 16,000 shares of common stock (par
,
Price—At par. Proceeds—For
fixtures, inventories and working
$1.25).
and
Waterloo,
Iowa.
Underwriter—None.
....
/.
office equipment
capital. Office;
.
.
Continued on page 34
_
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,
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*
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'
l
The Commercial and Financial Chronicle
D'
>
34
(786)
•
j
1
Continued, from page
33
i
.t' i,i"
r.
1
•*
I
i
ii
;••■
*
'M*K
'
remaining 15,000 shares are for
Price—To be supplied by amend¬
Proceeds—For the general fund, including con¬
■
'!v
■'v
jty
structing and equipping new shopping centers and work¬
ing capital. Office—721 S. W. 4th Ave., Portland, Ore.
Underwriter—Kidder, Peabody & Co.
Offering—Ex¬
J''
•'tT
'•>■
i
Jan.
■.
}•'■
Nov.
•
Co., New York City.
"
Falls Church, Va. Underwriter
Registration & Transfer Corp., Washing¬
—Securities
ton, D. C.
1!J '
f
O'?
('■■■■■
(>
ll-i
•
*
purposes.
expected.
1990.
!■' |«
•:!•>-'(.
to
'■•'
"
U ".•••'
x
* i'.,.
1;
Jf .V;
In,,
fit
\p":
I
h
Love
..'hi:i.
Mineral
Feb.
■1 |f AS!'
,
•#
'11If
M.
Co.,
UI!
stock
|-i :>;?s;f>
'
'
:M
4:iii
of
.'
per
share.
Proceeds—To
pay
City, Utah.
Corp.
Jan. 28 filed 200,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To repay indebt¬
edness
and
incurred
in
real
estate
operations, to acquire
develop land, and for general corporate purposes.
Office—14409
So.
Paramount
Blvd., Paramount, Calif.
Underwriters—Kidder, Peabody & Co., New York City,
and Mitchum, Jones & Templeton, Los
Angeles. Offering
| i ::)h
—Expected in early March.
•
). I-
?.i..' *
Nov. 30
Wit
•■!"»
;
i.u
Marine Fiber-Glass &
Plastics, Inc.
(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¬
," v./
* * '■'
\
•
1
and
ment
Mason
I'dJ;*; s1
{'»;'
'
i"
,v J h«
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.
.
«u* .j -1
'h
.
..
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;
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'
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.
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"'V
h
the
price of the
whole
mortgage notes to which
they relate. The offering price of the mortgage notes
will normally range between
$2,000 and $4,000."
The
$6,000,000 proposed maximum aggregate offering price
the
aggregate
will be paid to an
Inc.;
offering
price
of
the
mortgage
On each sale of
notes.
iV;
t\
and
a mortgage note a 7% commission
affiliate, Mason Investment Services,
the latter will
receive
the
preferred
without
charge. Proceeds—To be added
general
shares
funds and used
to the company's
principally to-purchase mort¬
Office—729 ,15th Street, N. W., Washington,
District of Columbia.
gage notes.
ir Mayfair
M
Feb. 17 filed
n
Industries, Inc.
300,000 shares of
be
common stock. Price—To
supplied by amendment. Proceeds—For general cor¬
porate purposes, including the repayment of indebted¬
n;
Office
ness.
Lafayette, La. Underwriter — Emanuel
Deetjen & Co. (managing), New York City.
—
Mayfair Markets
Oct. 1 filed 301,177 shares of common stock
(par $1), be¬
ing offered to holders of such stock on the basis of one
share for each five shares held Nov.
scheduled to expire in February.
new
13.
Rights
are
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.
7 (letter of notification) 300,000 shares of common
Stock (par 10 cents). Price—$1 per share. Proceeds—For
Jan.
4
f
^
Electronics, Inc.
214,500 shares of common stock, of which
200,000 shares will be sold for the company's account
and the remaining 14,500 shares will be offered for the
account of certain selling stockholders.
Price—$3 per
share. Proceeds—For general corporate purposes. Office
—89 West 3rd St., New York City. Underwriter—Pleas¬
ant Securities Co.- of Newark, N. J.
^
•
J
Missile
filed
Mississippi Power Co. (3/i7)
8 filed $4,000,000 of first mortgage 30-year bonds.
Underwriter—To be determined by competitive bidding.
Stuart
&
Co.
Inc.;
Kidder,
(jointly). Information Meeting—March 14, 1960. Bids—
Expected to be received on March 17 at the offices of
Mobilife Corp.
general corporate purposes. Office—100 W. 10th Street,
Wilmington, Del. Underwriter—Glenn Arthur Co., Inc..
New York, N. Y.
filed 250,000 shares of common stock (par 50
Price—$4 per share. Proceeds—For debt reduction and working capital.
Office—Sarasota^ Fla. Under-«
writer—Plymouth Bond & Share Corp., Miami, Fla. •
V
Life Insurance Co.-
nix, Ariz. Underwriter—Associated General Agents of
America, Inc.
;
.:
V
'
.
• Morrison-Knudsen Co., Inc.
^
(letter of notification) 9,090 shares of' common
(par $10) to be offered to employees pursuant to
Employees' Stock Purchase Plan. Price—At the market
price or from Harry W. Morrison Family Foundation,
Feb.
8
Inc., less $2 per share. Proceeds — To purchase stock.
Office—319 Broadway, Boise, Idaho. Underwriter—None.
offered
Products
Feb.
3
(Fred), Inc.
filed
400,000
(without par
account of the
shares
shares of common stock; Price—$7
Proceeds—Together with other funds, will be
used for the 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.
share.
MPO
Jan.
Videotronics, Inc.
J8 filed 150,000 shares of class A stock ($1 par) of
which 100,000 share are to be offered for account of is¬
suing company
standing stock,
the
and
are
50,000 shares, representing out¬
to be offered for the account of
present holders thereof. Price—To be supplied by
Proceeds—For general corporate purposes,
debt reduction.
Office—15 East 53rd Street,
New York City. Underwriter—Francis I. du Pont &
Co.,
New York City.
class
A
common
stock
value) including 300,000 shares for the
issuer, and 85,000 shares for a company-
May 11 filed 390,000 shares of
cents
common stock."
Price—60
share. - Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobboid
Block, Saska¬
per
.;
r
,
&
Watch
Co...\\
- <.• •
a
-
*
r
the
at
rate
three
of
shares
new
each
for
*
the record
on
v
.
and
for
convertible short term notes; and (5) 92,500 shares
in the company's stock option
plan. Proceeds—
use
•
Nord
Photocopy & Business Equipment Co.
(2/26)
Jan.
27
filed
shares
,v:
•
36,400 shares of
are
to
be
common
offered
for
,
stock, of which
the
account
of
the
r
Lomasney
&
Co.,
New
York
.
City.
*
—
Last Sept. 25 the same underwriter
offered to
quick oversubscription 100,000 shares of Nord
common v
at $5 per share.
rh'p ■■
?
North Carolina Telephone Co.
■'<,^
SepU 4 filed 576,405 shares of common
capital stock, to
be offered for
subscription by* holders of outstanding
stock ip the ratio of two nfew
;
'
■
shares for each five shares
'
held.. Price—$2 per share.
Proceeds—To reduce indebt- '
edness with the
balance, if any, to be used as working ;
capital. Office—Matthews, N. C..
Underwriter—One or 4':
®dealers will < be offered*
any shares not *
subscribed for at $2 per share.
;
"Northern Indiana Public Service
Co/ (3/15) ;$15,000,000 in bonds of first mortgage bonds. ;
Feb. 9 filed
Prnhihil11
h£^%ib\tde/S'n
r
on
•
u
March
15.-'
^determined by competitive -bidding.
-Xltte.r & CP, (to. handle the
:
Lynch, Pierce, Fenner ;
P®*
,
(joinOy). Bids—Expected
'
!
are
r<J^ee of
?
;
^
^
^
;
^nnVnfin°av2efd K75,0°2rSl?areLof common
200,000
to be publicly offered.
f
tones
to be received
-
Nu-Era Corp.
stock, of which
Price--$3.75
To reducemufflers.
indebtedness
and
gears
342
South
^ichi^an- Underwriter—Mortimer
on an
all
Co., Inc.,
or
r'
per share,
and increase inven-
Office
'
St
B. Burn- /
nothing best efforts"
basis.
;
eri1^Vl11 receiye $15,000 for expenses, a
5^5 selling commission on the 200,000 shares
comprising the public
>
:
«7^ ^ c£W
offering, and the privilege of
chasing 37,500 shares of the
s
The
are.
amendment.
including
(
date; (2) 250,000 shares of :
common stock 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; \
(4) 719,667 shares to be offered to holders of warrants /
side &
(2/23)
Clock
five shares held
O'l,
stock
at
pur¬
$.10
per
*
rendered.
Expected at the .end of
cents.
common
^37,500" shares thus far unaccounted for are
.ApPelb?um at $.10 per share in /
of certain services
consideration
M. & S. Oils Ltd.
of
for
Corp.
Dec. 28 filed 120,000
per
J
/
(1) 1,462,320 shares of common stock to be )
subscription at, $2 per share by common
stockholders
•
Meyer
Haven
New
.
Jan. 29 filed:
o
Electro
com¬
Option Plan for Officers and Employees.
stock
Morse
'
Planning Inc., New York, N. Y.
Note
•>
working capital. Office—811 N. Third Street, Phoe¬
North
Corp.
(letter of notification) 100,000 shares at
writer—Myron A.
4
(letter of notification) 47,687 shares of common
stock (par $1) to be offered to policyholders of Modern
Pioneers' Insurance Co. and the company for cash or
transfer of dividends. Price—$2 per share.! Proceeds—
|
attached
one
issuing company and 32,906 shares, representing outstanding stock, are to be offered for the account of the
present holders thereof.
Price—To be related to the ■
market. Proceeds—To buy
outstanding capital shares of ]
Television Utilities Corp., with the balance
for general *
corporate purposes.' DfficeL-New York
City.Under* y
Services, Inc.,
250 Park Avenue, New York
17, N. Y^ up to 11 a.m. (EST).
For
with
of common stock
holder to purchase
share
one
Feb./15 filed 94,442,shares Of its common stock, issuable
pursuant to the company's'; Amended Incentive;Stock
3,500
Southern
Modern Pioneers'
10
general corporate purposes, including reduction of '
indebtedness, development of a division, and mortgage
payments. Office—140 Hamilton St., New Haven, Conn.
Underwriter—None.
:
'
•:
Peabody & Co. and White, Weld & Co. (jointly); Mer¬
rill Lynch, Pierce, Fenner & Smith Inc.; Eastman Dillon
Union Securities & Co. and Equitable Securities Corp.-
Dec.
vpa*
For
Feb.
Halsey,
stocK
common
^ National-Standard Co., Miles, Mich.
(par 10 cents). Price—$3 per share. Proceeds—**
general corporate purposes. - Office—2300 Shames '
Drive, Westbury, N. Y. Underwriter—Mortimer B. Burn- ?
side & Co., Inc., New York, N. Y.: Offering—Expected
at the end of February. '
"p
bidders:
of
stock
—Fund
Components Corp.
For
Probable
50,000 shares
(par one cent). Price—$3 per share. Pro-;:
general corporate purposes.
Officer-410
Livingston Avenue, North Babylon, N. Y. Underwriter
cents).
equals
■
'"•?
H."-
ceeds —For
Office—1430 First National
'
of
11
mon
stock
5
Office—c/o ;
Un¬
company.
Investment Corp., Manchester, N.
National Lawnservice
Jan.
Jan. .18
from
•r.v;
*:!
Mortgage & Investment Corp.
of which
owned or under option by
Filing of the shares is to avoid
~
at '
of ;
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.
(letter of notification) 60,000 shares of common
18
ing warranty and repurchase agreements), together with
5,000 shares of cumulative preferred stock, 6% dividend
series ($200 par).
The investment contracts are to be
offered "only in connection with sales of whole second
mortgage notes and have no stated offering price apart
■
i{\
.
Missile
Feb. 15 filed $6,000,000 of Investment Contracts (includ¬
^
■'Yp-y
Y - ■'•
:
for
working capital.
Office — 2901 Blakely
Street, Seattle 2, Wash.
Underwriter — Best Securities,
Inc., New York, N. Y., is no longer underwriting the
issue. New Underwriter—Jacey
Securities, 82 Beaver St.
•jj?
[:?;■
•
of the
funds
warrant entitling the
are
Building, Denver, Colo.
Feb.
Macco
{U>'<
■
Price—$4
—
Ph'Vh
i
(par $1).
163,407
general corporate purposes.
Bank
Jan.
Properties, Inc.
1
(letter of notification) 75,000 shares of common
Salt Lake
.|;v|'
i*.«
■
bills, for acquisition of Lacey Shopping Center, and for
working capital. Office—603 Central Bldg., Seattle 4,
Wash.
Underwriter
Andersen, Randolph & Co., Inc.,
;
sisting
New York
possible violation in connection with their resale. Pro- .
ceeds—Almost all have been received and expended for;
Loveiess
Jan. 20
remaining
tpar $5)
each $500
for
stock
and 50,000 warrants to be offered in units, con- ;
cents)
Underwriters—Bear, Stearns
shares of common stock
473,107
*
Price—At face amount. Proceeds
converted.
general
filed
16
June
Concentrates & Chemical Co.
filed
;
Microwave Corp.
Narda
of debentures and three
be supplied by amend¬
$50
Price—To
officers and employees.
Robinson &
Underwriter—Wm. B.
Corsicana, Texas.
Texas.
Henderson,
4
The
Jan. 25
'
units of
common stock
such
of
shares
100
derwriter—Eastern
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.
Corp.
(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$1.25 per share. Proceeds
—For working capital.
Office—New Tyler Highway,
in
common.
'
?
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
& Co., and White, Weld & Co., Inc., both of
City.
Underwriter—To be determined by competibidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co., Blyth & Co., Inc. and Shields
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and Harriman Ripley &
Co., Inc. (jointly); Salomon Bros. & Hutzler, Eastman
Dillon, Union Securities & Co. and Equitable Securities
Corp. (jointly); The First Boston Corp. and Glore, Forgan & Co. (jointly).
,purposes.
ff )$'<:,J
of
Office—Tulsa, Okla.
ment.
.tive
:MV
offered
be
shares
$20,000,000 of first mortgage bonds, due
Proceeds — For construction and other corporate
filed
11
of
the
—For
subordinated deben¬
1,230,000 shares of common stock,
1980, and
tures, due
t
:y
Corp.
into class A non-voting
rate
debentures
it Mid-American Pipeline Co.
Feb. 17 filed $20,500,000 of 6V2%
Louisiana Power & Light Co.
Feb.
V>
ft
corporate
general
*
v
1.
t
1968
the
writer
ifX'l
P ?'
Proceeds—For general
ness,
Office —211 Ellicott
Street, Buffalo, N. Y. Underwriter—B. D. McCormack
Securities Corp., New York, N. Y.
Note—New under-
rl
!•.,.
Minerals, Inc.
shares of class A common stock
400,000
Price—$5 per share.
(par $1).
.
'/ ^ • l>\
Oct. 6 (letter of notification) $300,000 of 6V2% convert- \
ible subordinated debentures, series A, due Oct. 1, 1969. '
Debentures are convertible at any time through Oct. 1, ■
Mutual Credit
acquisition of properties, and additional working
capital. Office—500 Mid-America Bank Building, Okla¬
homa City, Okla.
Underwriter—None.
For
>•
»
filed
16
f
:
r '
'
Dec. 2i filed 100,000 shares of common stock (par $10).
Price—To be supplied by amendment, l Proceeds—For
working capital and debt reduction.' Office—174 E. 6th
St., St. Paul, Minn/UndeTwriter^-Piper, J affray & Hopwood, Minneapolis, Minn.
-•'•
Murphy Finance Co.
corporate purposes, including the reduction of indebted¬
Liquid Veneer Corp.
>
<
V:
of notification) 150,000 shares of common
stock (par 10 cents). Price —$2 per share. Proceeds —
j.
!
Mid-America
Nov.
.
Offering—Expected in early. March.
York City.
New
«•
j4M;; Uitrf;
{•■ yi <l
I )<
Hempstead, N. Y., is no longer, underwriting, this issue. *
The new underwriter is David Barnes & Co., Inc. of .;
.
200,000
•Nov. lb (letter
fid
:
\
(par 10 cents). Price—$6 per share. Proceeds—*
general corporate purposes. Office—Beech Street, 1
[slip, N. Y. Underwriters-Heft, Kafen & Infante, Inc., >
For
includ¬
ing the discharge of indebtedness, the expansion oi
sales efforts, and for working capital. Office—79 Madison
Avenue, New York City. Underwriter—General Invest¬
ing Corp., New York. Offering—Expected to be canceled.
Office—115 Mary Street,
hi !1'K
Products Corp.
(letter of notification) 50,000 shares of common '
9
stock
Proceeds—For general corporate purposes,
unit.
stock ,(par. 50 cents).
Price — $5 per share.
property and for working capital.
common;
filed
Manufacturing Corp.
Munston Electronic
•
shares ot common stock (par 10
cents) and 50,000 one-year warrants for the purchase ol
such stock at $3 per share, to be offered in units of 100
shares of common stock and 25 warrants. Price—$275 per
Proceeds—To acquire
r- I'M
16
Medical
Electro
Micronaire
Oct.
Swimming Pool Construction Co., Inc. '
^letter of notification) 60,000 shares of class A
lo
■>
Regina, Saskatchewan, Canada.
Securities Ltd.,
land
pected about the second week in March.
Lewis
.,
'»H;
■•tf
p<»
EI Unterberg, Towbin
C.
VW
f '■/
i I
company
company's modernization and expansion program. Office
—2432 Swan
Street, Jacksonville, Fla. Underwriter—
;' iVi'
I {i i
1
'
Underwriter — Cumber- •;
Canada.
Saskatchewan,
toon,
ment.
v
and 10,000 shares, representing out¬
standing stock, are to be offered for the account of
M. G. Lewis, President. Price—To be supplied by amend¬
ment.
Proceeds — To reduce bank loans, redeem 190
shares of the outstanding preferred, and continue the
'l
'i
,
110,000 shares of common stock, of which
100 000 shares are to be offered for the account of the
n>:
*
(2/25)
Inc.
.
.
I
The
estate.
connected
.
filed
15
Jan.
■
issuing
•:
Business Forms,
Lewis
J
■
,fv
*
.
V
'11
..
.
'
i-'i.-'-
officers and employees.
>
Thursday, February 18, I960
IK,
Gas
&
February;
Minerals,
?nnQSiaT^2?r
Trade
per
Mart,
'
;
Inc.
20fi.led 2®°»000 shares
Price—$2
*
Offering—'
' ,
-share.
of common stock (par :33
Proceeds—To
retire
ATnt ppyposes. ; Office—513
New
Orleans, La,
bank
Interna-
Underwriter—"
.4
3
V'tflw Mul /So^A/j AU<4'
i»>rf^ ^ v'i!
1
riin
ii 11
4!^. WVai'*
Volume 191
1-4
"' " Y
'
,',"(
• • -.
,
1
)(
5926~~The
Number
L.X.
V 10-1/
Co., Inc., New Orleans, La. The SEC
order" hearing, has been postponed from Jan. 23
Assets Investment
"stop
shares,
Feb.
to
.
/''/
r,
•
-r* .•'
•
;»
♦••.i i"-
;/,
,t
New
3 filed $2,000,000 of; 6% 'convertible subordinated
debentures,-due March 1,.-; 1975, ; and 100,000J shares of
common stock (par $1)./ Prices—Debentures at 100% of
Feb;
,
Prices—For'the
debentures,
par;
for the
com¬
★ Safeguard Investment Corp.
1 (letter of notification)
139,849 shares of class A
common stock
(par 50 cents). Price—$2.per share. Pro¬
ceeds—For the company to hngage in a* finance business.
Office—712 Midland Savings Bldg., 444-17th
St.> Denver,
be supplied by amendment. Pro¬
ceeds
For debt reduction, plant
construction, and
equipment.
Underwriter—John R. Boland & Co., Inc.,
.inc.1 upp.-v-:!■;:'&{*
One-Hour Valet-*
s
Feb.
mon,/ the price will
.
■
York
City, who will work on a "best efforts" basis
a commission of $120 per $1,000 debentures
„
and receive
sold.
*.
.
-
f
Colo.
•
City.■V->
• .-.Onyx
.
.■
•
r.-y.'x P\:P'
/-;"•■
Chemical Corp.
(2-/24 y&c f'P> *| ;<>
\
*A? -B
?<„<:&:
Jan. 15- filed 140,000.shares of? common /stock (no par);
price—To be supplied by amendment. Proceeds—To ac¬
'
,
Rapids, Mich.,.
^
v
"
*
..
Professional Life & Casualty Co.
Jan. 29 filed.
-
1
per
180,000 shares of common stock. Price—$10
Proceeds—Fob the company's insurance busi-
share.
for
Ovitrim Corp.,
•
Detroit, Mich.
filed •; 150,UUp.
/71
*
''.'A ..'••.v-,*
:vCo/:Chicago,'
;-X'•/•::/'
shares'-uncommon* stock
•
(par
•
1
t
sale
will
be
sold
on
best
a
efforts
basis
5% commission,/f
a
'
■
tures and 62,500 shares of class A common stock
-
Commercial
iu^entiai
cash
Security Mortgages,/ lite.
\
Nov. 30 filed $250,000 of il-year
sinking fund deben¬
Corp*,.
/
Uct. 21 (letter of notlfkraUon> (50/006 snares of commoi
>cent). J^ice^$6 per-sjiare.;Proceeds-rr-For research and i
; slock
ipar; one;cent);," Priee—$2 per share.
Proceeds—
wprklpg capital, tlinderwriter—Sutro /Bros. & Gov, New
./For general corporate purposes. Office—City of Dovei
York'. Offering—Indefinite. ■
"/r 1 -/v, ' :••/
/./"i1
"...
County of; Kent, Del. Underwriter—-All State Securities
' Oxy^Catatyst*: Inc*' •.•-/y-:--'Y.'"
v
Inc!, 80 Wall Street; New York,, N. Y., is no longer
Dec. 23. filed 28,637; shares of common stock. The com- *
underwriting this 'issue.:.'"/; %■.
;v;
party proposes -to offerH 1,37-2 shares for subscription by.',
its common ; stockholders of-record Jank 15,/. I960;? upon * r • Public Service Co. of Oklahoma (2/24)
subsequently' reduced
to
the basis" of one new share for each 50 shares then held., ;. J an.25 /filed .-$14,000,000,
Oct; 27/
the
through dealers who wilh receive
expenses, and working capital for the proquire Onyx Oil & Chemical Co/. Off ice— 190 Warren k
/qurement of business, .Off#ee—720 N, Michigan Ave.,
Street,/, Jersey City-/ N**J., Underwriters-McDonnell &
Co.; Inc., New York .City. Y \ .<■[<;V
•Chicago, 111. Underwriter—Professional Casualty Agency
.
-
Corp. (3/14)
'
Dec. 28 filed $1,500,000 of 6% convertible subordinated
debentures due July 1, 1965. The company proposes to
offer $300,000 of the debentures in exchange, for its:
6% convertible notes due July 30, 1962; $5'87,OO0 in ex¬
change for its demand notes totaling $587,000; and the
balance,, or $813,006, to'the. public for cash., Office—555
Minnesota Street, San Francisco, Calif.
UnderwriterNo underwriting is" involved; but the debentures offered
and
ness
r
Underwriter—None?
Secode
;
Preferred insurance Co.
principal amount,, and price- of the common stocis- to he
supplied by amendment. Proceeds-t-For the-repayment " Dec. 30 filed-59,364 shares-of outstanding common stock,
of indebtedness, renovation and expansion, and working-. .to be exchanged by certain of the issuer's shareholders
capital n Off ice; ^-1844 West; Flagler St., Miami, Fla.V subject to an agfeeinehCwith.Preferred Automobile UnUnder writer—Van Alstyne,, Noel & Cp. .of New York
derwriters > Co.
Office — 126 Ottawa Ayenue, N. W.,
-Grand
u«/
(par 15
cents), to be offered in units of 1 debenture and 25;com¬
mon ^ shares.' Price—$100
per - unit. Proceeds—To> invest
oru
in
equities and/or mortgages/Office
; . —
—
Underwriter—None.
.
Denver 2,
.
;
Colo. :
-
,,.
Shield Chemical Ltd: 1V
■i
1
(letter of
8
sept/
,
*
notiiicairon)
95,000
itock (paf 10 cents)*.
tf
,
1
officer and: employees -of, the -company upon
the
exer- /
options to purchase said shares, the option price
being $9.35 as to 6,575 shares and $11 as to 10,620.; Price
—For rights offering,.to be supplied by. amendment. Pro¬
ceeds—For additional working, capital. Office—511 Old
Lancaster Road, Berwyn, Pa.vUnderwriter—None/ 7 V??
cise of
,
;<
writer—To be determined by- competitive bidding. Prob;able bidders: Halsey/ Stuart & Co. Inc.; Salomon Bros.
& Hutzler; White^ Weld & CO/ and Shields & Go, < jointly); Rryth & Co., Inc:; The First Boston Corp.;, Equitable Securities Corp. and;; Eastman Dillon, Union Secu¬
//
Pacific Goldmine.
■'
/?A'v.- •
?-.• //;
/•
rities & Co; (jointly); and Glore; Fcnrgan & Co, Bids —
Dec. 9 (letter of notification) 75,000 shares of common
Ekpected up to 11:30 a.m, EST cm. Feb. 24, on the 21st
stock/Trice —At par ($1 per share).- Proceeds — Foi
floor: ctf 20 North Wacker Drive; Chicago' 8, 111.
•
'
,
Pacific
8
Panel
Co.
filed
Price—$4.50
filed
5
per
ner
200,000
Underwriter—Merrill
& Smith Inc..
&
Lynch, Pierce,. Fen-
:
'
•
-
•-
H
100,00(.
(par
$5.25 per share.- Proceeds—For general corporate purposes. >. Office—New. York. City,
Underwriter—Sutro
;
4
common.,shares
,
at
$3.25
per
share. Price
;
<
.
ri's^& Freed,
^day;;•.•
-
>
preferred:
Offering—Expected any
New York;
,
•;•.
'
yi
^ Pedgeon ( Walter); Steel products,; Inc.
:i•
Feb> ^ (letter of notification) -75,000 shares of common
i
stock;(par 10 centsj> Price-^-$4 per-share.* Proceeds-^
For tooling and/machinery of manufacturing plant, in¬
ventory-- advertising and working capital. ' .Office — 10
l Uriion^Avenue; BalarCynwyd; Pa;v Underwriter—Heft;
Kahn & .Infante, Inc.',' Rockville Centre, N.; Y.'-•/;/;' / n :;
Electronics ■ .Corp.'■/-y|"V
250,000 shares of. common ;stock; (par $l).
Price—$3 per share.: Proceeds
$115,000 Tor. payment
Feb.
,
4
•
;
Feb. 1 filed 70,006 shares of
the
111.
& Co., of New York City.
Projects.::',;vy
>
Oct.
r
exploratory fundi
•
will cost
r;.^/>
A
!
:
i
--
-
-
.
filed
ing
■
'■net
1959
.
common
added to
to be
-
6
was
about $1.48 per
share.)
Office—Evanston, 111.
Underwriter—Kidder, Peabody & Co., Inc.
an
offered in units of such, debentures
stock.
Price—To be supplied: by
common
Proceedsr—For
of
new
Building,
Southwestern Investment Co.
which
derwriter—None.
.
★ Standard Screw Co.
Feb. 17 filed 210,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—To estate of a
selling stockholder. Office—Bellwood, 111. Underwriter
—Hornblower & Weeks, New York.
Stantex
Corp*
shares of common
cents); Price—$1 per share. Proceeds-^For
quarters, expansion and working capital. Office—
40 N. 2nd Street, Philadelphia, Pa. Underwriters—First
City Securities, Inc., New York, N. Y. and. Frank P.
Hunt & Co., Inc., Rochester, N. Y.
Offering—Expected
any day/
'
." '
\
V
Dec. 28
(letter of notification) 300,000
stock (par 25
new
filed
effect" to the completion of the proposed offering,
operating profit in the fiscal year ending April 30,
exceed
15,000 shares are to be offered to employees of the issu¬
ing company and its, subsidiaries,* and 210,000. shares
represent outstanding stock held by previous stockhold¬
ers Of Southwest Acceptance Co., who may offer their
shares/Price—At market. Office—Amarillo, Texas. Un¬
the general funds of
Peterson & Co* (2/23-26)
164,689 shares of common stock, of which
157,346 shares are to be offered for the afceount of nine
selling stockholders and 7,343 shares* for the account of
the issuer. Price—To be supplied by amendment. (Giv¬
Jan.
Precision Transformer Corp., Chicago
Dec. 29 filed $700,000 of 6V2% subordinated
:
Price—To be supplied by amend¬
be
to
Nov. 2 filed 225,000/shares of common stock, of
•* Row,
,
not
working capital and:: the
plant.
Office—444 First National
Phoenix, Ariz.
Underwriter—White,
Weld & Co., New York City.
This statement has been withdrawn.
..
people; ,and. 150,000
such
Bank
'
"
company-connected
and
finance1 a larger volume of
underwriting and to expand its area of operations. Un¬
derwriter—A. G. Becker & Co. Inc., Ghicagp, 111.
This
offering will not be made in New York State. Note
Inc.
participationmf $16^)00. Proeecdf—For
Office — 2802 Lexington, Houston, Texas.
filed
stock,
mon
the company to enable it to
(letter of notification)
convertible
debentures, diie 1970," with attached warrants to pur¬
chase, 28,000 common shares; and >warrants for the pur¬
chase of 125,000 common shares, which may be issued
Proceeds—To
ment.
85,714 shares of common
stock- (par 40 cents).
Price—$3.50 per shares Proceeds
For general corporate purposes! Office —- Whitehead
Ave., South River;'N. J. - Underwriter—Arnold Malkan
& Co., Inc., New
York, N. Y. •
;
\Y';*.1
to
,y.
capital stock, of which 30,676
be
selling stockholders.
Inc*
Inc.
aggregate of $13,500,000
of subordinated income debentures, due 1985* and s com¬
Co*, Chicago; III..
shares of capital stock, of which
62,676 are to be sold for the company's account and 48,161 shares are to be sold for the account of certain
-
,
Ventures.
Southwest Forest Industries,
filed 110,83.7
20
the
minimum
Jan. 29
:
Reserve Insurance
Oct.
.
400,000 shares of common
Plastic & Fibers,
Jam 18
•
-
"
stock (par $1),
Price-—To be supplied by amendment.
Proceeds For
property development, possible acquisitions, and working capital. Office— 1111 West Foothill Blvd., Azusa,
Calif.,- Underwriters—Allen & Co., Bear, Stearns & Co.,
and Sutro Bros. & Co., all of New York City.
* r-;.
Dec. 21
•
1/.'
.:
on
Underwriter—The participations will be offered by of¬
ficers of the company and by certain investment firms.
Calif.;-Freehling, Meyerhoff & Co., Chicago, 111.; John
C. Legg & Co., Baltimore, Md.; Semple, Jacobs & Co.,
Inc:, St. 'Louis, Mo.;' Sutro & Co., San Francisco, Calif.
$ip,000. Gfficerr-iVIadisohj N.: J. Unuertrriter—
;Phillips Developments, Inc. (2/24)
a
exploration.
—
participation? in oil and gas
Price ^ The minimum participation
.
with
qualifying to transact business in other states, and the
general fund. Office—180 West Adams St., Chicago, 111.
Underwriters
Walter C. Gorey Co,, San Francisco,
i3 Tiled $1,500,000 of
..Mineral Projects Co., Ltd.
Price—To
10
them
Nov. 27 filed $2,000,000 of participations in its 1960 Oil
Gas Exploration ProgramPrice—$5;006 per unit,
supplied by amendment.
Pro¬
ceeds—To be used for financing, additional business; for
.
Feb.
and
construtcion
holders
stock, being of¬
shares
Growth
amendment.
are
10
.
of the issuer and the balance for the account of present
'
sinkipg fund debentures, plant
Underwriter—Stanley Heller
:*■
:
each
filed
.
Life Insurance
.
12
to be offered* for public sade for the account
shares
,
yy Petroleum
*:
—
new
Southland Oil
NTall,; Charlotte, N. C; Underwriter—None.
■pM: Rese«nf»'ktsi»i^©#^D®fekw,;^
renovation, new equipment, and the. balance; to
general funa..; Office—777 So: Tripp Ave.; Chicago,
.
Proeeeds—For adver-
Building,. Denver, Colb. Undferwriter
Stocks, Inc., Denver/ Colo.
, v
;
for
record
Greenville, S
C. Underwriter — Capital Securities
Corp., 121 So. Main Street, Greenville, Sa. Gaivom a
"best efforts'* basis, with a commission of 50 cents per
share.
■: /•
( .•
★ Reserve Einance Cerp.' ..
•
(letter, of notification) 135,000 shares of common
stock (par $1)1 Price—$2 per share. Proceeds—Ta operate a finance"business/ Office—Suite 531 Guaranty Bank
fried
in full of outstanding. 6%.
;
-
share
Co.
common
—
Feb. 4
•
10# Pentron
Price*—$25* per unit.
Service
stockholders of
Industries, Inc.
963,000 shares of common stock (par $1).
Price—$& per share. Proceeds—For investment. Office
Nov.
tising;, financing of; training and advances to registered
representatives and waking capital. Office—511 Charlottetown
t
^
one
Southern
.
>
Public
Pa.
•
Office—245 "W55th Street," New York : UnderwriterHilton Securities, Inc,, formerly Chauncey, Walden, Har- •
Price-—$5
bank loans, purchase
held;
rights expire March 1. Price—$11.25 per share. Proceeds
—For general corporate purposes, including investments
in the issuer's subsidiaries/
Office—70 Pine St,,. New
York City.
Underwriter—Bioren & Co., Philadelphia,
■
'
off
104,961 shares of
common
basis for
-
,
14 filed
fered to
Bros. &
—
Proceeds—To pay
Southeastern
Jan.
CoV, also> of New York City; Offerings-Expected
in, March;,/./..V'
$3.75 pei
■//V-V'
share!^ With whrrantsi"; Proceedsy^For general corporate
* Registerecf Fundfe, I'itc.-:,:"
purposesj ihcludihg the addition of working, chpital, thi
14Feb, 8- (lettfey/of
33^,3^ shares of common "
reduction /of indebtedness^ and- the-"provision; of the
stock (par
and 13,328 shares erf' 6% cumulative con$173,000 cash required upon the. exercise of an option tc
\ vertible. preferred stock
(par $10); to be offered in units
purchase the building at 245-249-W. 55th St.V New York ;
consisting of- five shares of common and two shares of
with' warrants to purchase; an additional
cents)
share.
Industries* Inc.
210,000 shares of class A stock.
and add to working capital
Office -— 42
Broadway, New York City. Underwriter—Amos Treat &
Co., Inc., of New York City, on a "best efforts" basis.
Offering-—Expected in March.
j
•
Pathe
filed
11
machinery,
,
,
News, Inc." v
u
Sept. 17; filed 400,000 shares of common stock
•
Corp, (2/23-26)
195,000 shares of common
filed
C®., Inc., New Y'ork, N. Y.
per
~
:
22
Dec.
it Falm Beach-Dade Corp^ ;.<3/1')1-- ' :•
Jan. .7 (letter of notification) 150,000 shares of common
stock (par one.cent). Price—$2 per share. Office—North
it Radiant Lamp Corp.
Miami Beach, Fla. Underwriter—T. M. Kirsch & Co., 52.
Feb. 10 filed- 120,006 shares of class A stock.* Prioe—$5
Wall "Street, New York.
; per share.
Y:
Proceeds — To repay a bank loan, and for
it
Rjy al Associates
:''
/;V -'S'. ?• working capital Office-^—300 Jellit'f Ave., Newark, N. J.
Underwriter—Amos Treat & Co,; Inc., New York.*" *
Feb. 16 filed $2,235,000 of limited partnership interests.
•
Price—$5,000 per unit; Office—New York. City. Under¬
Realty Equittefr Corp:■>«*■<
writer—Warren Securities Corp.
"
Feb. .2 filed 150,000 shares of common stock.
;
'
;
"
:
Price—
•
(no
South Bay
Fuget' Park Corp. (3/1)
'■■■:
*
Jan. 6 filed 125,656 shares of common stock. Price—$6.50
per share;
Proceeds—To buy land and reduce indebt¬
edness; • Office—Seattle, Wash; ,Underwriter—Hill, Darlington & Co., of Seattle and New York City,
;
Denver,
Sonar Radio
1
.
Inc..
stock (par 10
Price—$3 per share. Proceeds—To move to new
plant facilities; to acquire additional working capital;
to expand production facilities and for operations; for
research and development; for test equipment and for
advertising and sales promotion. Office—3050 W. 21st
Street, Brooklyn, N. Y. Underwriter—George, O'Neill
Inc.
being
Puerto Rico.
Christensen.
cents).
shares: of common stock, - 70,000
public sale; and the
outstanding shares of present holders,
i Price—To be supplied by amendment. Proceeds — For
expansion purposes. Office—Caparra Heights, San Juan,
..
•
Puebilo Supermarkets,
balance
100,000: shares of class A common stock.
share. ' Proceeds—For reduction of in¬
debtedness; for working capital;i for 'establishment 1 of
three additional stores; and to provide additional work¬
ing capital for a new subsidiary.: Office—1212 West 26th
St., Vancouver, W ash. - -Underwriter—Frank Karasik &
Co., Inc. •/. .••/,.
• //
y-.vi'*.' j ..:
Feb.
★
Jan.
shares of which are to be offered for
.
•
a
("V
industries, Inc.
(letter of notification) 50,000 shares of common '
par).
Price—$5 per share.
Proceeds—For
working capital. Office—c/o A. M. Hubman, 4061 Conover
Road, University Heights, Ohio. Underwriter—
Gaither & Co., Inc., Cleveland, Ohio.
■
stock
,
Feb.
Writer
:
Solon
•
'
share. Proceeds—-,
Jan. 26
•
...
:
equjpnieju.
derwriter^ Peters/
.
'» ing, Colorado Springs,;- Colo. Underwriter—Birkenmayer
& "Co.,-.Denver, Col:>■ .1 " :A //'/
per
advertising
and for working
Office—17 Jutlaruf Road. Toronto, Canada. Un¬
Colorado
~
mining expenses.- Office—404 Mining Exchange Build-
Price—$1.50
lnsialf ^.anulacturing equipment';..con-
aiur
rest.
aixt
apiial.
$12,000,000; of rfirst mortgage4; bonds; series" H, due
February 1, 1990. Proceedj ^ Foy censtructiorti Office
Public Service Bldg., 600 S/ Main; Tulsa Z} Gklaf Under¬
:
The. remaining 17,265 shares are to be- offered4 to certain
purchase
roi
.
•
shares: of capital
.
•
'
,
:
Hospital Insurance Association,. Inc^
Jan. 27 (letter of notification) 12,750 shares of common
stock (no par) to be offered for subscription by stockState
Continued
on
page
3S
;i^^^er.U<W«
J
■:» **w
yrn '!',.*
I.',iw
■
i*
' M
'f
The Commercial and
36
i
>
i
Jan. 15, 1960 and unsubscribed shares
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.
Development Corp.
Stelling
300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving roads, loans payable*, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
(letter of notification)
June 8
Su Mark Boat,
(letter of
Jan. 25
bank
and for
Mass.
'
Inc.
,
Y.
Note
—
incidental to the development of a frozen food
Office—152 W. 42nd Street, New York
City. Underwriter — Jerome Robbins & Co., 82 Wall
Street, on a "best efforts" basis^
Transworld Equipment Corp.
Un¬
City.
Supermarket Service, Inc.
14 (letter of notification) 9,000 shares of common
stock (no par). Price—$11.50 per share. Proceeds—For
working capital. Office — 103 E. Main St., Plainville,
Conn. Underwriter — E. T. Andrews & Co., Hartford,
Turner Timber
Supronics Corp.
stock. Price—
to reduce short-term
used for general cor¬
120,000 shares of common
29 filed
Jan.
share.
Proceeds—$50,000
bank loans, and the balance to be
$6
per
porate purposes, including expanding the business. Of¬
fice—224 Washington Street, Perth Amboy, N. J.
Un¬
derwriters—Standard Securities Corp., Herzig, Farber &
Lake
Salt
stock.
shares of common
share. Proceeds—
For general corporate purposes.
Office—141 Albertson
Avenue, Albertson, N. Y. Underwriter—None.
Universal Transistor Products Corp. (2/19)
Dec. 18 (letter of notification)
150,000 shares of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds
For
general corporate purposes.
Office — 36
Sylvester Street, Westbury, L. I., N. Y. UnderwritersMichael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.,
Price—
of the
sion
City,
Lake
Co.,
Hogle &
A.
Utah.
Underwriter—J.
Utah.
City,
111.
Champaign, 111.
Champaign,
None.
A. Taggart &
Wyoming Nuclear Corp.
(letter of notification) 10,000,000 shares of com¬
mon
stock. Price—At par (three cents per share)., Pro¬
ceeds—For mining expenses/ Office—Noble Hotel Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,
Sept. 11
Pittsburgh, Pa.
—$28.75 per share.
to
I ■;
■*
fU
V»
>
,,
bY
it Washington Water Power Co.
Feb. 8 (letter of notification) not to exceed 7,400 shares
of common stock (no par) to be offered to employees
Proceeds—For working capital and
patents on present inventions, and
to continue and expand research and development work
in the field of liquid compressibility devices and other
areas.
Office—188 Webster St., North Tonawanda, N. Y.
Underwriter—C. E. Stoltz & Co., New York.
—$28.75
:!"' i
?
'
per
share.
additional
secure
'
Taylor Devices, Inc. (3/1)
23 filed 18,705 shares of common stock to be of¬
fered for subscription by common stockholders on the
basis of six-tenths of one share for each share held. Price
-
i
,
i
Proceeds
—
To repay a short-term
•
il:
t
.
development, and the bal¬
executive
panded
,
lease
to
ance
;
or
sales
purchase additional factory and office
Office—188 Webster St., North Tonawanda,
Underwriter—C. E. Stoltz & Co., New York.
space.
'
Teletray Electronic Systems, Inc.
27 filed 150,000 shares of class A
r
Underwriter—A.
Md.
★ Tenax,
Feb.
-
16
cents).
of
/;»
U
T.
Brod
Co.,
&
New York
Jan. 29
City.
company.
150,000 shares of common stock (par 10
Price—$4 per share.
Proceeds—For expansion
freezer and food sale business.
Office—375
Wells Industries
Underwriter—Myron A.
Jan.
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
Proceeds—
Office—Greenville, S. C.
For general corporate purposes.
-
•
bonds,
series B, due December,
1969,
sinking
"
fund
(with warrants).
Warrants attached to each $1,000 bond will entitle hold¬
-
purchase 20 shares of class A common stock at an
share. Price—100% of principal
amount.
Proceeds — To pay $420,000 due to Western
Electric Co., Inc.; and the balance for general corporate
ers
to
initial price of $11 per
.
.
.
purposes.
4
Neb.
and
Underwriters—J. Cliff Rahel & Co., Omaha,
The First Trust Co.
of Lincoln, Neb.
_
J
l
Underwriter—None.
stock and war¬
300,000 shares of common
Feb. 5 it
file
Telephone Co.
Jan. 28 filed 1,120 shares of common stock ($50 par)
and $150,000 of 5% convertible subordinated debentures,
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
shares held, with 1,000 shares being offered to stockhold¬
ers and the remaining 120 shares being offered to em¬
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
ployees.
t
Inc.
•
reported that this company will probably
common stock in April.
Office—Glenwood
Landing, L.. I., N. Y.
City. (
Underwriter—
Lehman Brothers of New York
Co.
Power
Alabama
Dec. 9 it
was
(4/7)
-■ -v
regis¬
that this company plans
announced
Exchange Commission of
tration with the Securities and
$19,500,000 of 30-year first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
Halsey,
Co. Inc.; Morgan Stanley &
Stuart &
Co.; Lehman Brothers; The First Boston Corp.; Blyth &
Co., Inc. and Kidder, Peabody & Co.- (jointly); Eastman
Securities
Union
Dillon,
&
Co.;
Securities
Equitable
Corp. and Drexel & Co. (jointly).
Information Meeting
—Scheduled for April 4, 1960.
on
April 7.
Bids—Expected to be re¬
Pvegistration—Scheduled for March 4.
it American Life Fund, Inc.
t
;
i
»
.
'
filed
17
Price—$20
X
j
;
t
r
/
{■ }
)
t (
t
<
(par $1).
Proceeds—For investment.
In¬
1,250,000 shares of capital stock
per
share.
vestment-Advisor
—
writer—The
Boston
First
Insurance
Bank of California
10
it
was
I
Inc.
Under¬
Offering-
'
(3/29)
announced
that
this
Bank
has
called a
special meeting of stockholders for March 29 to author¬
ize the sale of 256,930
will
be
offered
the rate of
one
to
additional shares of stock.
shareholders
new
of
record
March
share for each five shares then
Proceeds—To increase capital and surplus.
—Blyth & Co., Inc., San Francisco, Calif.
Stock
at
held.
29
Underwriter
Bliss & Laughlin, Inc.
Jan.
for
27
it
was
reported 'that
registration fi&
-imminent
stock, to be exchanged for
outstanding shares of Sierra Drawn Steel Corp,, Los
Angeles, on the basis of 8/10 shares of-Bliss for each of
Sierra's 45,197 shares. Office—Harvey, 111.
36,157 shares of
common
the
i
(
Securities
Corp., New York,
Expected in the latter part of March.
-
)
Associates,
was
undetermined amount of
an
Feb.
City.
A
'
"
v',
Prospective Offerings
Acoustica
ceived
the purchase
1
<.
Office—849 Custer. Ave., Custer, S. D.
mining expenses.
Feb.
for
M
)
Price
Corp.
West Branch Bell
Underwriter—Kidder, Peabody & Co., New York, N. Y.
ic Tip Top Products Co.
Feb. 11 filed $600,000 of first mortgage
Philadelphia, Pa.
\
(letter of notification) 237,550 shares of common
— At
par
($1 per share). Proceeds — For
stock.
York
Chemicals, Inc. (2/24)
Jan. 22 filed 174,576 shares of common stock, of which
:
Jan. 29
of an additional 100,000 shares.
Price —To
be supplied by amendment.
Proceeds —
$350,876 will be used to retire certain debts, with the
remainder to be used for construction, equipment, and
working capital.
Office—6505 Wilshire Boulevard, Los
Angeles, Calif,
Underwriter—A. T. Brod & Co., New
Texize
■
29 filed
rants
•-
Price—$5
capital. Office—533
Underwriter—Stroud & Co., Inc.,
filed
Price—To be supplied by amendment.
offered
by the
per share. Proceeds—For working
Boston Post Road, Wayland, Mass.
of which 20,000 shares are to be
by Robert A. Waters, President and the balance
4
★ York Minerals, Inc.
bidders:
notification) 60,000 shares of common
(letter of
(par $1)
stock
Lomasney, New York City.
held.
Inc.
Manufacturing,
Waters
Inc.
Avenue, New York City.
Under¬
writer—None.
common
issuer's
Park
capital.
offering is commenced. Proceeds—For working
Office—East 1411 Mission Ave., Spokane, Wash.
N. Y.
stock,
Price—$3 per share.
Proceeds—For general corporate
purposes.
Office—880 Bonifant Street, Silver Spring,
Jan.
Products Co., Inc.
pursuant to Employees' Stock Purchase Plan. Price—
$38.50 per share, provided, however, that such price
shall not be less than 95% of the opening price on the
New York Stock Exchange on the day upon which such
establish ex¬
manufacturing personnel
and to continue research and
t
and
loan, for additional working capital, and to
t;,.
Walnut Grove
Ave., Philadelphia, Pa. Underwriter—Charles
Co., Inc., Philadelphia. •
Lancaster
(3/7)
Jan. 29 filed 300,000 shares of class A common stock
(par $2), and $3,000,000 of 15-year 6%% sinking fund
debentures, with warrants to purchase 50 class A com¬
mon
shares with each $1,000 debenture., Price—To be
supplied by amendment. Proceeds—To repay bank bor¬
rowings of $4,500,000 and replenish working capital.
Office—Atlantic, Iowa. Underwriters—First Trust Co.,
Lincoln, Neb., and Cruttenden, Podesta & Co., Chicago.
•
..
Wynn Pharmacal Corp.
v 1
i
29 (letter of notification) 4,380 shares of class B
stock (par 10 cents),
Price—$2.50 per share.
Proceeds—To go to selling stockholders.
Office—5051
^ Virginia Iron, Coal & Coke Co.
Feb. 4 (letter of notification) 43,200 shares of common
stock (par $2) to be offered in exchange for 27 Bakerton
Co. notes, face value $10,000 each. Office—325 W. Camp¬
bell Ave., Roanoke, Va.
Underwriter—None.
4'
/.
v
..
common
Dec.
*
"M,
,
Jan.
100,000 shares of common
Price—$3 per share. Proceeds—
(par 10 cents).
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.
(3/1)
shares of common stock to be offered
for subscription by common stockholders at the rate of
ten-seventy-fifths of a share for each share held. Price
Proceeds—For working capital.- Of¬
Cincinnati, Ohio. Underwriter
fice—3500 Madison Road,
For
Dec. 23 filed 5,390
■
8,000 shares of class B
(par $1)
—$12.05 per share.
(letter of notification)
stock
Co.,
Clegg &
Hurd,
—
Tayco Developments, Inc.
f
.H
1,
Underwriter
N, J:
V VK'
to be offered for subscription by stock¬
holders of record as of Feb. 8, 1960 on the basis of one
share of new stock for each 22 shares then held.
Price
stock
Vernitron Corp.
Feb. 2
Offering—Expected in March.
J., Inc., 844 Broad Street, Newark,
★ Williamson Co.
Feb. 10 (letter of notification)
York, N. Y.
New
System Finance Co.
Dec. 15 (letter of notification)
$250,000 of 6% subor¬
dinated notes due Jan. 1, 1966. Price—At face amount.
Proceeds—For working capital. Office— 610 S. Sixth St.,
'
N.
—
it Sutton Leasing Corp.
Feb. 9 (letter of notification) 100,000 shares of common
stock (par 25 cents).
Price—$3 per share. Proceeds—
For general corporate purposes.
Office—9 Rockefeller
Plaza, New York 20, N. Y. Underwriter—T. M. Kirsch
Co., New York, N. Y.
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Investment Brokers of
^ Ultrasonics Industries, Inc.
Feb. 12 (letter of notification) 100,000
stock (par 10 cents).
Price—$2 per
supplied by amendment.
Proceeds—For expan¬
business. Office—1935 So. Main Street, Salt
be
To
-
convertible debentures,
shares of common stock (par one
cent), to be offered in units consisting of $1,000 principal
amount of debentures and 125 shares of stock. Price—
$1,001.25 (plus accrued interest from 12/15/59) per unit.
Proceeds—For the acquisition of coal and timber prop¬
:
•
.i
erties, with any balance to be added to working capital. < Philadelphia, Pa.
Office—60 E. 42nd Street, New York City. Underwriter
Wilier Color Television System, Inc.
—Frank P. Hunt & Co., Inc., Rochester, N. Y. Offering
Jan. 29 (letter of notification) 86,403 shares of common
—Expected in February.
stock
(par $1).
Price—$3 per share.Proceeds—For
& Co., all of New York City,
Bruno-Lenchner, Inc., Pittsburgh, Pa.
Surety Life Insurance Co.
Jan. 29 filed 10,000 shares of common
.
Laboratories, Inc. (2/29)
Jan. 28 filed 85,000 shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at
$5 per share.
Price —For the debentures,, 1C0% 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.,
1969, and 250,000
due
McKenna, and Irving Weiss
and
-
100,000 shares of common
Whitmoyer
Corp.
$2,000,000 of 6%%
12 filed
Nov.
Conn.
*
199,900 shares of common
cents). Price—$1.50 per share. Proceeds
—For expenses for drilling and producing oil. Office—
1403 G. Daniel Baldwin Bldg., Erie, Pa. Underwriter—
Daggett Securities Inc., Newark, N. J.
(par five
stock
Oct.
"
(letter of notification)
;
stock (par $10)
(par $25). Price —
and equipment of
company's plant and for working, capital.
Office—300
Montgomery St., San Francisco,: Calif.
Underwriter—
None..
,v''
•
;
March 5 filed
and 40,000 shares of preferred slock
At par.
Proceeds—For construction
Petroleum Corp.
Tri-State
effective Jan. 29. The
Co. V
Western Wood Fiber
general corporate purposes.
Office—119 W. 26th
New York 1, N. Y.
Underwriter—First City
Securities, Inc., New York, N. Y. Offering—Expected in
early March.
Nov. 12
exchange offer
White, Weld & Co. Inc., New York' City,: and Piercb,
Carrison, Wulbern, Inc.,Jacksonville, Fla. (jointly).
139,832 shares of common
Price—$2 per share. Proceeds—
Street,
(par $.10).
prior registration
offering began Feb. 1 and ends Feb. 23. v Officer-Maple
& Third
Streets, Panama, City, Fla.
Underwriters—
(letter of notification)
(par 10 cents).
The statement became
common.
For
Price—$3.00 per share. Proceeds—For new equipment,
construction, and working capital. Office — Broward
County International Airport, Ft. Lauderdale, Fla.
derwriter—Frank Karasik & Co., Inc., of New York
(2/26)
trucking business.
stock
Co.
20-year deben7
said bonds for •"
units of $416,000 of 71/2% subordinated debentures, due
Jan.
1, 1960, 41,660 shares of lVz%- cumulative pre¬
ferred
stock, and 41,660 shares of class A common
stock.
Each $100 principal amount of debenture bonds
may be exchanged for one unit, such unit to consist of
$50 principal amount" of subordinated debentures, 5
shares of cumulative preferred, and 5 shares of class A
3
Jan. 25
>
-
amendment was filed to a
an
& Co.,
Muncy, Pa;. Underwriter—Blair
statement, said amendment covering an
to holders of the issuer's outstanding 6%
ture bonds.
The holders may exchange
expenses
Name has been
^ Sunair Electronics, Inc. (2/24-3/2)
Dec. 28 filed 200,000 shares of common stock
^
1 f
Thursday; February 18, 1960
City. ! • v
Florida Natural Gas
West
Dec. 21
(letter of notification) 75,000 shares of common
stock (par 10 cents). Price—$4 per share. Proceeds—For
working capital. Office—Stone Street, Walpole,
Underwriters—Street & Cos and A. .J. Frederick
Co., Inc., New York, N.
changed from Su Mark, Inc.
Transit Freeze Corp.
•
Dec.
notification) 96,250 shares of common
&
r
,
Inc., New York
New York.
(no par). Price—$2 per share. Proceeds—To pay
indebtedness, acquire new equipment and tools,
stock
. . .
South Main St.,
Metropolitan Municipality of
$41,318,000 of debentures, comprised of $6,864,000 of instalment debentures, due March 1, 1961
through 1980, and $34,454,000 of sinking fund debentures
due March 1, 1965 and at five-year intervals thereafter
to 1990. Proceeds — For various public works projects
in the Municipality.
Underwriter—Harriman Ripley &
Co., Inc., and the Dominion Securities Corp., both of
Feb., 17 filed
the
to
Financial Chronicle
^ Toronto,
35
holders of record
7
!n7t*»'•'
(788)
Continued from page
*
i'
»**' *'
M
"W? ftrtwfl'tt *. wiioift.
[. iff
t
»'fp<»'w<*»WV *
,
ii
i
>
)
i
5
i
1
Volume
191
Number 5926
.
.
.
The Commercial and Financial Chronicle
(789)
California
,»v
Electric
Power Co.
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Equitable Securities Corp.;
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
Feb.1 3
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Smith Inc.; Salomon Bros. &
Hutzler, and Drexel
bidding.
Probable bidders: Halsey, Stuart & Co.
Peabody & Co.,-. and White, Weld & Co.
Inc.,
Kidder,
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
(jointly); Eastman Dillon, Union Securities
formation Meeting—Scheduled for
July
Expected to be received on July 7.
Scheduled for June 3.
,
Street, Raleigh, N. C. Underwriter—To be determined by
competitive bidding.1 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. iBids—Expected to be received on
.
April -5 at/,11:00 a.m. Information Meeting—Scheduled
for April 1 at 11:00 a.m.
" '
■
'
•
.
-
Feb.
it
3
.
ders:
Halsey, Stuart & Co, Inc., Kidder, Peabody & Co.,
White, Weld & Co. (jointly); First Boston Corp.,
Blair & Co., Merrill Lynch, Pierce, Fenner & Smith Inc.
and Stone & Webster Securities Corp. (jointly).
and
Illinois
19
Jan.
announced
Light
for
issuance
of
$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
a.m.
(EST) at the offices of Commonwealth Services,
Inc., 300 Park Avenue, New York City.
Hamilton Management
Corp.
Feb. 3 it was reported that an
undetermined amount of
non-voting common stock may possibly be registered
the week of Feb. 23.
Office—Denver, Colo. Underwriter
—Kidder, Peabody & Co., New York City. Offering —
Expected in mid-March.
it
5
Co.
of West
reported that this utility expects to sell
of debentures. Underwriter—To be deter¬
was
$25,000,000
competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co.; Morgan Stanley
& Co.; First Boston Corp.
Bids—To be received on
mined by
March
15
at
11:00
was
reported
Commonwealth
it
9
about
•
there
is
to
expected
be
within
the
determined
be
six months.
Underwriter—
competitive bidding,
Probable
next
by
bidders:
Halsey, Stuart & Co. Inc.; First Boston Corp.;
Glore, Forgan & Co.
i
Consolidated Research & Mfg.
Dec.
16; it was reported that this
August
lic
as
financing in the
form
of
a
—Birmingham, Ala.
Underwriter
Leach, Birmingham, Ala.
Kenrich
it
20
founded
firm,
stock
common
containers
facturing
facilities.
Underwriter
it
9
Mac Panel
will be
a
offering
stock
stock filing for the account of selling
Office—Philadelphia, Pa.
Underwriter—
3
it
it
a
—
Co.
of
'"u1n
••
was
that
for
four
shares
Mac
of
Panel
common.
N. C. Underwriter—Bache
City and Charlotte, N. C.
&
Co.,
10
it
was
reported
that
the
expects
company
to
on
$30,000,000 of mortgage bonds in April
Office—500 Griswold
St., Detroit 26, Mich.
Feb. 16 the
company's Board of Directors authorized the
filing with the Securities and Exchange Commission of
a
registration
statement
for
the
issuance
and
sale
through competitive bidding of 650,000 shares of common
Proceeds—Primarily for
investment in operating
Underwriter—To be determined by competi¬
bidding.
companies.
Feb.
8
it
Telegraph Co.
was
Co.
Inc.; First Boston Corp; and Morgan Stanley & Co.,
all of New York City. Bids—To be received on
April 12.
National
Fuel Gas Co.
stock.
Feb. 9 it
pected
(4/11)
mined by competitive
Stuart & Co. Inc.;
Price—Reported to be $2 per share. Underwriter
—T. M. Kirsch & Co. (managing underwriter); A. J.
Frederick Co. and Street & Co., Inc.
Offering —; Ex¬
in
about5three- to
four
weeks.
near
Registration
believed likely
is still
7, at 11:00 a.m. Bids—Expected to be received
11.
Registration—Scheduled for March 2.
Nedick's Stores, Inc.
Nov. 12 it was reported that
in the
plating the placing
for
Fla.
for
each
shares
four
held.
Price-
increase capital and
Proceeds—To
$40
surplus.
per
Un¬
(11/3)
Georgia Power Co.
9
tration
with
it
of
the
announced
was
$12,000,000
of
that the
30-year
Underwriter
SEC.
—
plans regis¬
first mortgage bonds
company
To
be
determined
by
Gulf
Dec.
9
tration
year
Information Meeting—Scheduled for Oct. 31.
Power
it
bonds.
Co.
the
SEC
of
that the company plans regis¬
first mortgage 30determined by com¬
$5,000,000
Underwriter—To
company
of
of
be
construction.
Savannah Electric & Power Co.
Feb.
17
the
issue
contem¬
shares
will
be
of
sold
a
it
was reported that this
utility is planning the
$6,000,000 of first mortgage bonds, due in 1990.
Price—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb &
Co., Lehman Brothers and Salomon Bros. & Hutzler
of
Pacific
Jan. 29 it
at
least
Power
was
&
Light Co.
announced that, the company
plans to issue
$20,000,000 of securities,' the date and form of
which will be
j
announced
at
a
later
date.
Proceeds—To
retire
$20,000,000 of unsecured promissory notes, to
on or prior to
July 31, 1961. The notes will be
issued to finance part of the issuer's 1960-61 construc¬
tion expenditures,
which are expected to total about
$61,000,000.
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¬
body & Co. (jointly); Merrill Lynch,
Pierce, Fenner &
000
of
debt
South
Carolina
Electric
&
Gas
Co.
June
to
22, S. C. McMeekin, President, announced plans
sell approximately
$8,000,000 of bonds in December,
1959.
Proceeds—To repay bank loans incurred for cur¬
program.
Previous issues have been
placed privately. Note—On Dec. 31 Mr. McMeekin told
this newspaper he does not know whether the
bonds
rent
construction
will
be
placed
privately.
this summer; the precise
ket conditions.
He
expects
them
Office—Portland, Ore.
to
be
timing will be subject to
Southern Electric Generating Co.
sold
mar¬
(6/2)
plans regis¬
Dec. 9 it. was announced that this
company
tration with the SEC of
$40,000,000
mortgage bonds.
Underwriter
competitive bidding. Probable
—
To
of
be
30-year first
determined by
bidders: Halsey, Stuart
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.,
Blyth & Co., Inc. (jointly); Morgan Stanley & Co.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
&
Co.
and
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
Registration—Scheduled for April 29.
on
June
2.
.
Southern Union Gas Co.
Feb. 5 it
was
reported that $11,000,000 in new financing
Spring of this year, of an undeter¬
type.
Underwriters
A. C. Allyn & Co., and
Snow, Sweeney & Co., both of New York City.
is planned for the late
mined
—
most
stated
was
in
this company's prospectus of its
recent
offering, that it contemplates some addi¬
permanent financing in 1960.
The exact nature
tional
and
amount of this financing has not been determined
but the company
presently believes it will take the form
of senior securities.
•
Tennessee Valley Authority
(7/1)
that, pursuant to August, 1959, au¬
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
Jan.
20
announced
thorization
& Co., and Lazard Freres & Co.
nancing Officer: G. O. Wessenauer.
-
Power Fi¬
Transcontinental Gas Pipe Line Corp.
Sept.
29
it
come
to
market
announced
was
twice
in
that
1960
the
with
company
the
sale
plans
of
to
first
mortgage bonds, and common and preferred stock. Pro¬
ceeds—To raise permanent funds for the
financing of
its 1960 expansion program.
Office—Houston, Texas.
Transval
Electronics
Corp.
official, announced on Jan. 8 that
Norman C. Roberts 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¬
R.
F.
Downer,
an
quiries with respect to the issuance and sale of Transval
stock."
is
17,000
mature
(7/7)
announced
was
with
April
(jointly); Equitable Securities Corp.; First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Smith
Inc.; Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly). Bids—To be received in July.
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., 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
Nov. 3.
66%
the company's account and the
will be sold for the account of
sale
derwriter—None.
Dec.
About
on
remaining 34% bal¬
selling stockholder.
Underwriter—Van Alstyne, Noel & Co., New York.
if New Jersey Power & Light Company
proposed offering to stockholders of 150,000 additional
shares of capital stock (par $10) on the basis of one
share
amounts
Utah
the
in registration
ance
announced stockholders have approved
was
a
new
stock.
common
First National Bank of Miami,
share.
bidding. Probable bidders: Halsey,
White, Weld & Co.; Eastman Dillon,
Securities &Co.; Stone & Webster Securities
Corp.; First Boston Corp. Information Meeting—April
future.
Sept. 14 it
reported that there is expected to be filed
of debentures.
Underwriter—To be deter¬
Union
Englehard Industries, Inc.
was reported that this Newark, N. J., corpora¬
tion might make an announcement in the next two
weeks concerning a forthcoming issue of common stock.
Although no confirmation has been forthcoming, it is
understood that auditors visited the company in late
Dec. 2 it
December.
was
$18,000,000
announced
31, 1961. The. interest will be equal to the prime rate for
New York City commercial bank
loans at the time of
the 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
—
reported that this company is planning
"Regulation A" 150,000 shares of common
Commission
Securities
reported that $40,000,000 of debentures
will be offered. Underwriters
To be determined
by
competitive bidding. Probable bidders:
Halsey, Stuart
New York
Power
the
in
if Tampa Electric Company
if Middle South Utilities, Inc.
stock.
Federal
Seattle, Wash., utility to issue
unsecured promissory notes out¬
one
time, to be issued in varying
beginning Feb. 1, all such notes to mature July
to
Feb. 2 it
(4/12)
that this company is planning
the Spring. Office — Beverly
was
to file via
—
Co.
common
May.
tive
if Electronic Development Corp. of Florida
15
Office
Mountain States Telephone &
reported
financing sometime in
Hills, Calif. Underwriter—Bache &
City and Beverly Hills, Calif.
Feb.
Inc.
February registration is
that
Michigan Wisconsin Pipe Line Co.
Corp.
was
&
reported that the 200,000 shares of com¬
were expected
to be filed the week of
8, have been indefinitely postponed. Note—It'Was
reported that shareholders of Adams-Millis
Corp. and
its partially-owned subsidiary Mac
Panel, will vote on
March 23 on a plan to
exchange three shares of Adams-
City.
Electrada
Agee
Feb.
or
jKidder, Peabody & Co. of Philadelphia and New. York
Feb.
it
receive bids
common
stockholders.
15
Feb.
reported that sometime this month there
was
Sterne,
Maspeth, Queens, L. I.,
N. Y.
First Philadelphia
Corp., 40 Ex¬
change Place, New York City.
last
^Edgcomb Steel of New England, Inc.
Feb.
the
$25,000,000
standing at any
old
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¬
combat
to
reported
—
Office—High Point,
ice, snow, and fog.
Proceeds—For expansion. Office—1184 Chapel St., New
Haven, Conn. President—Marvin Botwick.
spray
Petrochemicals,
was
New York
Corp.
scheduled for next spring. Business—The company produes
15
Smith Inc.
firm—the
Hayes Aircraft Corp.
Millis
Delaware corporation, plans its first pub¬
a
this
12 it was reported that an issue
of convertible de¬
bentures is contemplated in the next few
months. Office
mon
Co.
that
$30,000,000 of 30-year first mortgage bonds filed,
probably
To
Edison
that
year
Feb.
..
reported
was
last
—
Feb.
Feb.
late
Harvey Machine Co.
is
planning its initial public
financing for the Spring.
Underwriters—Kuhn, Loeb &
Co. (managing) and
Tucker, Anthony & R. L. Day, both
of New York City.
•
a.m.
.
Harvey Aluminum Co., Torrance, Calif.
Jan.
Chesapeake & Potomac Telephone
Virginia
(3/15)
Feb.
was
of
•
It
(3/15)
plans to file with the Illinois Com¬
Commission
merce
Co.
•
(7/7)
announced that the company plans regis¬
50,000 shares of preferred stock (par $100).
Underwriter—To be determined by competitive 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. Bids—
Expected to be received on'July 7,
Registration —
tration
Puget Sound Power & Light Co.
Jan.
they had authorized
Feb. 9 it
reported that around July about $10,000,000 of first mortgage bonds will be filed. Underwriter—
To be determined by competitive bidding. Probable bid¬
was
Central
it
9
In¬
5, 1960. Bids—
Registration —
Scheduled for June 3.
Illinois Electric & Gas Co.
Central
Dec.
& Co.
Co.
ir Plainfield-Union Water Co. of New
Jersey
17
was
reported that the company has asked
the State's permission to sell
68,676 shares of common
stock.
Price—Approximately $19 per share. Proceeds—For expansion.
1
Feb.
up
Gulf Power Co.
-
&
37
Power &
Feb.
3
year
there
it
was
of
company
stock.
Light Co.
reported
toward
expected to be
about $25 million
Underwriter—To
bidding.
Blyth &
that
is
be
some
of
the
end
of
this
financing
by
this
bonds
determined
and
by
common
competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
and First Boston Corp. (jointly); White,
Co.
Weld &
Co.; Stone & Webster Securities Corp. (jointly);
Hutzler; Kidder, Peabody & Co.; East¬
Dillon, Union Securities & Co. and Smith Barney
& Co. (jointly); Lehman
Bros.; Bear, Stearns & Co.
Salomon Bros. &
man
Virginia Electric & Power Co.
Feb.
first
(9/13)
5 it was reported that approximately $25,000,000
mortgage bonds will be offered for sale. Under¬
writers
—
Probable
To
be
determined
by
competitive
bidding.
bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler;
White, Weld & Co.; Eastman Dillon,
Union Securities
& Co.; Stone & Webster Securities
Corp. Bids—Expected to be received on Sept. 13.
West. Penn
Feb. 5 it
Electric
Co.
(4/12)
reported that about $10,000,000 in common
stock will be filed, probably on April 12. Underwriters
—Carl
and
and
was
M.
First
Loeb, Rhoades & Co.; W. C. Langley & Co.
Boston
Corp.
(jointly); Lehman Brothers
Goldman, Sachs & Co. (jointly).
'
1 /
V*
'
'iVL
:S1
The Commercial and Financial Chronicle
' (790)
38
Thursday, February 18, 1960
.
.
.
I
m
1
The following
latest week
:S
«
Business Activity
#
-•■
jv; |
'W,
statistical tabulations
month available.
week
or
month ended
or
that date,
in
or,
that date:
of quotations, are as of
cases
■.ff
Latest
operations
Week
:•<
Ago
*94.3
*2,687,000
86.5
95.7
§2,699,000
2,727,000
.
*
oil
(bbli.
7,292,810
7,136,160
7,111,925
7,213,320
Feb.
5
1f8.199.GQO
8,149,000
8,396,000
of
aluminum
Feb.
5
29,050,000
,27,570,000
29,230,000
Feb.
5
2,368,000
2,428,000
2,731.000
5
13,696,000
13,570,000
■13,821,000
5
7,634,000
gasoline (bbls.) .at—;——.Feb. ,5
206,418,000
-
Feb:
(bbls.)
Feb.
Residual fuel oil output (bbls.)
Stocks at refineries, bulk terminals, in transit, in pipe lines—
fuel oil output
Distillate
Finished
unfinished
and
Kerosene
(bbls.) at-——_—:
Distillate
fuel oil (bbls.)
oil (bbls.)
Residual fuel
at—
.
at—————
.
1
>
-to,f"
...
173,742
v-'
140,962
131,124
'
138,'545
m
2,903,000
ions)—Month
Shipments > of * steel
15,009,000.
.Month
6,761,000
BUSINESS
203,184,000
193,948,000
198,908,000
25,025,000
20,649,000
'55,824,000
121,521,000
126,485,000
26,852,000
144,134,000
47,673,000
47,929,000
52,358,000
24,288,000
5
5
5
■
INVENTORIES
■If
5,500,000
m
*$51,800
$49,500
SERIES—Mopth of December
dollars):
of
9)317,385
; *4,800,000
OF 'COM-
DEPT.
—
*11,989,319
8,211,047 ;
;
i;
•;
•
$52,800
Manufacturlhg
92,018,000
.
12,043,000 '
—.
(hetV tons )—
Decemberl.__r—____-,'_l—
of
(Millions
■
produced
January—^
of
.
products.
,.,
*
;
INSTITUTE:
STEEL
AND
ingots and steel for castings,
(net
26,913,000
"
•7*240,000,
6,884.000
Steel
IRON
MERCE NEW
.Feb.
Feb.
Feb.
——
AMERICAN RAILROADS;
OF
ASSOCIATION
AMERICAN
8,025,000
tbbls.)
average
'*•'
-
153,665
tons)—Month
short
m
'
5
(bbls.)
(bbls.)
output
Kerosene .output
,
Wholesale
12,500
.* 12,900
11,600
Retail
23,300
*25,200
23,200
$88,600
*$89,800
$8 4,3 00
35,825,000
39,940,000
35,730,000
1,634,000
*1,860,000
'2,194,000
_
'
Revenue
freight loaded (number of cars)—
iFeb.
6
587,933
601,900
591,515
565,752
Revenue
{•
(in
2,449,000
Feb.
stills—daily
to
runs
Gasoline
A" (4
i
,
Of
gallons each).
Crude
j
Stocks
output—daily average
condensate
and
Ago
,
132,765,
Feb. 20
(net tons)
,/■
42
■'•
aluminum in the-U. S.
of November——,
(short' tons) end
of
of primary
Production
Year/
'
OF MINES):
(BUREAU
ALUMINUM
Month
PETROLEUM INSTITUTE:
AMERICAN
Crude
castings
and
ingots
Previous
Month
« r»»
Equivalent to—
Steel
Latest
v
Ago
§94.7
Feb. 20
capacity).—-
(per cent
Year /
Month
Previous
Week
S'JTEEL INSTITUTE:
AND
IRON
Indicated Steel
i
either for the
Dates shown in first column are
■if
■?
AMERICAN
;)
on
■i
the
production and other figures for
cover
freight received from connections (no. of cars)—-Feb.
6
566,123
564,863
503,618
548,975
Total
OUTPUT
COAL
$
■y
MINES)—Mpnth
(BUREAU OF
'
■.
•
CONSTRUCTION
ENGINEERING
CIVIL
i
—
of
ENGINEERING
NEWS-RECORD:
225,900,000
207,543,000
174,800,000
180,700,000
158,160,000
147,100,000
27,000,000
22,600,000
42,600,000
8,520,000
> 8,920,000
(tons).
coal and lignite
383,000
Pennsylvania anthracite (tone).
I ( S
AVERAGE
SYSTEM—LSI7-49
:
Feb.
100
=
ELECTRIC INSTITUTE:
EDISON
Electric
(in 000 jkwh.)
output
Stocks
Cake
^
y-''.
317
■
;
292
-
318
V '-A 292
.v,
steel
Finished
PRICES:
COMPOSITE
AGE
IRON
'V
(per lb.)-
————Feb.
——
<E.
.
2K
&
L'*
-33.125c
31.450C
,12.000c
12.000c
12.000c
12.000c
11.800c
11.800c
.11,800c
1.800c
;
13.500c
•:12.000c
13.032c
-
;13.500c
13.000c
13.000c
",12.532c
26.000c
26.000c
.26.000c
.Feb. 10
101.000c
100.500c
'99.375c
Feb. 16
83.58
83.56
80.33
83.91
7'*".
(
LIFE
f 'U
83.40
87.32
93.97
86.24
85.46
85.07
Feb. 16
83.40
83.15
83.28
Feb. 16
78.32
83.40
Feb. 16
86.11
Industrials Group
V
85.46
91.34
3,79
-
4.91
4.69
4.75
r-
—
4.91
4 93
(-
5.37
V
V
5.33
.Feb: 16
.Feb. 16
Railroad Group
Industrials
.
-
4.26
4.92
5.34
5.07
:
4.91
4.70
,
4.72
i
•.r-/-: 4.46
4-75
-Feb. 16
-
TO
;
\
-
;
,
V
.
.
.
:
^
4.32
^,400J)00
,,,.■
:
383.6
345,179
'
124,400,000
103,700,000
108)200,€00
97,000,000
$591,500,000 $592,200,000
ANfi":SALES- */' -■ \V'V
INVENTORIES -
$536,600,000
■
■m
;• ••:"."' :*'• y
(millions- of 'dollars):
'
■;'■,„
'$20,400
$27,900
22,600
*22,400
21,60.0
m
*'
$52,800
*$51,800
V.'-'
,30,800
WEIGHTED
Railroads
46,700,000
116,600,000
i
:
Industrials
p; ■ * .A-
54)300^000
54^800,000
116,300,000
COMMON
100
65/400)090
■;
10,100,000
'
^:'T©tal -
MOODY'S
50,300,000
„■:
,
$30,200
■■' ".;••>
V
$214,800)000'
$244,900,000
49,900,000
;1:
December
Nondurables
".."V
65.2
LIFE-
OF
November:
Durables
.
:M38
r'.Vioc
62.2
;
$244,500,000
Inventories/-•
4.90
.
379.5
376.9
3754
.
of
-st;
"4.52
-
INDEX
of
*149
*261
>y.*t
values
Month
'
.'Vl
.
'
'
/
164,400
•
i'
i'
PAYMENTS
INSTITUTE
—
4
M47
■63 A
Total
-
.:->4.44
-
'
157,900
,
middle ol.
payments
-
.?•
4:93.
.:
5.08
5.04
4.86
.Fteb. 16
Group
COMMODITY
MOODY'S
i:
.Feb. 16
Utilities Group.
Public
V
"
,
.Feb. 16
Baa
u.."-;,:4.i4
4.78
4.57
'4.53
-
A
COMMISSION—
dividends
Policy
4.44
4.61
4.91
'
:
(
.Feb. 16
.Feb. 16
,
"...113
payments.
Surrender
88.54
4.i9
4.87
.Feb. 16
corporate.
.
Annuity
.89.37
4.55
"
85.85
;
;
4.21
.Feb. 16
Aaa
Aa
i
:
^
:
■
endowments
MANUFACTURERS
DAILY AVERAGES:
U. S. Government Bonds—__——
-*■
benefits
Disability
83.53
,
81.42
83.15
81.29
84.04
MOODY'S BOND YIELD
Average
" 78.20
.
v'
'
81.78
Feb. 16
Utilities Group
Public
77.86
■
.Feb. 16
Group
■
BENEFIT
INSURANCE
Death
89.64
•'
291,3500
,
RE-
variation.
r-Kallway;'Employment: at
Matured
92.20
:
'161,700
.adjustment-:
INSURANCE—Month
'•■? 89.64
87.86
Feb. 16
Railroad
for. seasonal
POLICYHOLDERS
83.40
.
r
141,100
.224^800
\Depenxiber'f (i94T-49-^TOO
102.125c
88.40
„
January:-';.,'f;
of
seasonal
ot
Index
'
1-24.700C
Feb. 16
Feb. 16
SALES—FEDERAL
INTERSTATE COMMERCE
11.500c
,
i
:
.,
-132 )000 V
.
g-i
;'L
.i.
.
227,500
206.100
t 191)300
STORE
'
'
,,
v
'•■
(bales).
Adjusted
Without
86.38
.
"
Baa
.'(/
•
■>
*
112,400
'
*'165,600
'/ 159,400
237,1«0
31.
A3X)00
.
*
167^00
:'
■
SERVE* SYSTEM—^I94r-4i) Averaie=l(M)—
Month
-28.150c
30.7.00c
.Feb; 10
A
v
29:600c
v
33.700c
•
33:125c
.Feb. 10
Aa
Q
(bales)
Dec;
-Produced :.'(bales)
$43.83
$41.50
;
,
.Feb. 10
'
»-:■
$42.17
: 33.150c
Aaa
•
>'
;
Stocks
$66.41
:
-
G; ■>'> $40.58
.Feb. 10
Average corporate—
i
V
.Feb. 10
Bonds.
U. S. Government
?
•
Linters-^-
6,196c
V
67^500
161,700
i
•
$66.41
.Feb. 10
DAILY AVERAGES:
BOND 'PRICES
MOODY'S
-
:i
:
6,196c
..
'
.Feb. 10
at.
refinery at.
Lead (New York) at.
Lead (St. Louis),at—
tZinc (delivered) at—
Zinc (East St. "Louis) -at.
Aluminum (primary pig. 99.5% ) -at—
Straits tin (New York) afc.
I
■'■$ s'•'• f
-
$66.41
..
DEPARTMENT
Export
.'
6.196c
6.i96c
$66.41
M. J. QUOTATIONS):
A
reanery
:
:
.Shipped
Electrolytic copper—
Domestic
.
*eb.
Scrap steel (per. gross ton).
METAL PRICES
9
.Feb.
Pig iron (per gross ton).
i
31-—.—
< tons)
*
-
295,500
-
'
(bales);
-
*
76.500
267.200
341,100
338^00
'0':
Dec.
(tons)
.^Shipped
.
:'
314,600
-V
••
;113;100
311,900
...
.
;
j.i:
(110)400
31—
Dec.
■v..-.
I
.
562,900
1,929,900
;•
.
(tons)
Produced
'■v
V:.
'•
.
'-
%,
541,700
.
733,200
2,609,000
683,500
2,441,200
(tons)
Hulls— ;■■;
1,404,700
315,700
.--l—
(tons)
Dec; 31
(tons)
Stocks
Feb. 11
BRADSTREET, INC
13,156,000
14,236,000
14,097,000
14,071,000
V;;!:.•■;,vv ■:,'.;
—
Meal—
Stocks
.-Feb. 13
INDUSTRIAL) —DUN A
mills
(tons)
Produced
,
of
COMMERCE—Month
OF
(tons)
and
Stocks
108
PROD¬
SEED
•'..■:
at
Crushed
376,000
132
*111
'in
6
———
(COMMERCIAL AND
FAILURES
;■ ,i
INDEX—FEDERAL RESERVE
1
...
r.'ii'V.-
/'
8,415,000
.
■-
401,000
428,000
.
•
DEPARTMENT STORE SALES
9,000,000
;
—
tons)—
Seed—^
Received
'
tons)
(net
COTTON
AND
UCTS—DEPT.
Cotton
lignite
■■'-'December:
42,598,000
::
..
and
anthracite (net
SEED
COTTON
96,095,000
;
-
coal
Pennsylvania
138,693,000
189,700,000
147,800,000
MINES):
<U. S. BUREAU OF
OUTPUT
Bituminous
200,000,000
196,700,000
Feb.11
Federal,
COAL
$346,236,000
Feb. 11
municipal-
and
State
$415,600,000
Feb. 11
construction
Public
$377,400,000
Feb.11
construction-
Private
$374,800,000
Feb.11
U. S. construction
Total
January:
Bituminous
■
AVERAGE
STOCKS—Month
$49,600
'
*28,500
'3;'"
2.8,000
•*
; (
YIELD
of
Jan.:
Tel.)
(214)
< 125)
3.39
-
(25)
3.08
3.21
5.19 '
5.03
4.64
4:13 "
CQ1
3 J9
3.38
3.9?
"
ASSOCIATION:
NATIONAL PAPERBOARD
(tons)———
Orders received
.
Production
(tons)
.Feb. -6
326476
6
320,887
325^870
261,488
.Feb.
6
489,21.6
462,228
456,855
.Feb.
6
96
97
80
111.48
111.56
111.46
——
of activity-————
„
Unfilled orders (tons) at end of period.
Percentage
OIL, PAINT AND DRUG
*
?
431,708
•
•
•v'k'V: 93
-Feb. 12
2,653,060
1,798,999
Other
22
406,010
229,840
1,744,480
sales
2,428,910
2,834,920
1,504,956
1,734,796
!•
,
219,620
22,200
312,280
sales
356.580
685,350
935,190
mTT^ry-n-
-i.-nr -trrj — ~r .-~nr
rw.L, mrn--
transactions for account pf
n
846,223
Meat
115,020
Poultry
1,035,970
1,150,990
659,434
812,315
Jan. 22
757,854
945,325
566,864
Jan.22
3,077,480
.Jan.22
sales
480,670
.Jan.22
2,716,194
Jan.22
Other sales
3,196,864
sales
2,588,854
311,960
599,940
3,712,780
4,323.545
2,224,730
3,739,860
2,536,690
Dollar
„
r'i
value
1,87-1,526
$92,799,000
Jan.22
305,700
338,86()
300,210
469,310
305.700
338,960
300,210
469,310
848,530
960,730
396,240
827,560
sales-
sales
..Jan. 22
dealers— Number of shares
round-lot
i
Jan. 22
Jan. 22
Jan. 22
—„
WHOLESALE(PRICES, NEW SERIES
LABOR — (1945*49 = 100):
—
570,610
727^80
357.020
704,390
14,059,640
17,8^),870
11,554,720
19,592,360
14,630,250
18,588,150
11,911,740
20,296,750
■
119.2
110^
119.4
91.1
107.9
All
„—Feb.
foods
rommaditiefi
other than farm and foods-
22
87.0
*87.0
86.7
Feb.
products—
Processed
"
ESTATE
OF
FINANCING
S.
U.
BOARD—Month
Savings
and
Insurance
Banks
Mutual
loan
105.5
105:4
105.5
90.5
91A
101.0
128.6
•128.6
128.7
127.6
Feb.
Nov.
figure.
I
i
)
T26.
.
'■
,-504
274
"270
243
-V
;
,270
279
275
,!
139
v
::
savings
'
155
199
$845,788,860. $780,918,826
$836,945,^66
654,337,348
1__
77,309,675'
41,000,000
90,000,000
90,000,000, '
—
of
W:
,--■—
$1,162,274
'136,839
408.868
$931,797
.146,095
?
152,483
128,249
462.617
,
.
474 ©26
167-610
154,097
348,787
313,846
272,492
521.870
471.376.
"
477,843
7
$2,442,478
$2,799^453
$2,432,037
ASSOCIATION
December:
(Number
,
.
of)—
6,843,645
.
:5,476!I29
7,739,376.
.3,344,165
Inventory
Tires
(Number
-
of)—
~~~~~
Inventory
257,666
243,399
989,706
351,785
921295
3,135,185
3,0964)93
3410.974
3,611,733
10,535,652
3,755,874
3,490,958
9,917,968
8,616,988
39,244,000
41,890.000
39,188,000
28,968,000
42,566,000
45,200,000
43,638,000
28,856,000
27,550,000
InnerP-
~IZ
33
Production
Production
178^516
274,273
1,060,758
(Camelback) —
(pounds)
(pounds)
(pounds)
f'-'L
.
Shipments
Shipments
1,329,978
3.170,719
214,847
——j
—
Passenger, Motorcycle, Truck and Bus
Rubber
1,152,767
1259,437
3,137.422
of)-
" '
_•
*
(Number
981)919
1^00,575
3,355382
—
17,817,687
(Number of)-
Inventories
Implement
•8.046,197
21,995,753
1.098,667
Tires
7,088,030
23,578,057
_r
and Bus
I
II
SI
—
Production
Tread
56,366,052
$952,599
Shipments
Tubes
"
BANK
institutions!-—3—ZI
MANUFACTURING
INC.—Month
Truck
79,415)391
77,348,400
—
lending
&V7
655,979,401
78,775,316
omitted):
associations——
—
RUBBER
617,366,563
-
;
f
companIe§_l_i——"iSSil
banks—:
~i—~
—
Miscellaneous
,
,328
NONFARM
LOAN
(000's
Inventory
^Includes 903,000 barrels of foreign crude runs. §Based on new annual capacity of 148,570,970 tons
as of Jan.
1, 1960 as against Jan. 1, 1959 basis of 147,633,670 tons.
+Number of orders not reported since introduction of
Monthly Investment Plan. JPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
•Revised
•
J214
..
.
230
trust
Individuals
Total
IN
HOME
—
of
companies
and
Production
119.2
90.8
Farm
■
Shipments
Feb
199
217
88,445,465
Tractor
U. S. DEPT. OF
Commodity Group—
All commodities
;
'
!_
expenses^-—
Inventory
—.
I
151
,
"*V.v
199
r;
revenues-!—_!*—1_IJ-L
operating
Total, operating
Production
(SHARES):
_
150
(AS-
ROADS
Shipments
sales—
sales
.
-
RRs.)—Month
/
December:
of
Total
Passenger Tires'
STOCK
ROUND-LOT STOCK TRANSACTIONS
ACCOUNT OF MEMBERS
Total sales
.
SALES ON "THE N. Y.
Other .sales
\\i
1,180,790
$65,892,943
Jan. 22
EXCHANGE AND
Short
5,816
9,125
1,596,953
$79,334,122
Jan. 22
Round-lot purchases by
Total
4,018
9,329
1,420.898
$71,116,925
sales
TOTAL ROUND-LOT STOCK
FOR
AMERICAN
OF
——
Number of shares—Total
Other
1,877,342
Jan. 22
.
Round-lot sales by dealers—
Short
1,184,808
Jan. 22
.
Customers' other sales—
Dollar
$65,892,943
1,606,078
1.430.227
.Jan.22
short sales—
Customers'
$110,703,046
$99,080,818
.Jan. 22
220
i 256
'
234
AREAS
2,233,610
$110,987,325
»—
„
dealers (customers' sales )orders—Customers' total sales-
■*
•"1
:
165
148
EARNINGS CLASS T
SOCIATION
REAL
1,269,679
2,232,054
Jan.22
value
of
eggs
railway operating income before charges
Net income after charges
(estimated)——
1.973.226
.
213.
:
v.--
.
504
264.;'
4,339,800
Jan.22
shares
Odd-lot purchases by
Number
and
RAILROAD
4,141,793
4,130,090
610,765
■
Wool
STOCK TRANSACTIONS FOR
Number of
;:
216
?
238
products
animals
Net
ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON N. Y, STOCK
EXCHANGE— SECURITIES EXCHANGE COMMISSION
Odd-lot sales toy dealers (customers' purchases)—t
V-
•■
l
:
-
tnembers—•
Total, purchases.
260
206
,■)!.
J
174
491
Livestock f
Dairy
.
T~r
i
>
;
,
.
215
V
Tobacco
510,540
98,420
133,010"
crops
" Potatoes
.
468,340
570,235
59,920
506,944
.
Total round-hat
Total
Oil-bearing
198
,r
—
I..V..,,
■
.
228
;
,.;. -149.
206 ■!'".'
!
235,030
543,300
-
'■
hay-—*
and
: f
258
,'V 254
grains
212,830
471,555
.Jan.22
■■
grains
216
'
.Jan.22
sales
Other
fresh.
—
Feed,
42,200
.Jan.22
Totfcl- $B^S
vegetables,
•
Food
545,690
71,745
the floor
purchases
Short
541,840
44,300
23b
■■■.,■
'
244
•..■*■'
i-
228
-"Fruit
314,530
Jan.22
Short
•.
,
,2i^-
Commercial
„
transactions initiated on
Total
of /Dec. '.: 15:
products
Cotton
1:36
AGRICUL-
OF
109—As
2.72
3.28
■
«INDEX
FARMERS
DEPT.
S.
:
2,678,270
Jan.22
Jan. 22
-
BY
—" U,
Crops
2,235,550
2,082,430
Jan.22
sales
Other sales
Total
Other
.All farm
442.720
Jan.22
purchases.
Short
RECEIVED
NUMBER
-
.....
,
transactions initiated off the floor-
Total
•
2,749,880
337,950
Jan. 22
_
2 .70 -j
3.56
TURE—1910-1914
2077,600
—
sales
sales
3.68
(Insurance (10
Average ,(200)
..
22
&
...
;
.
3an
Jan.
Total purchases
Short sales
A me r.^ Tel.
incl.
(not
(15)
PRICES
TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered*— •
Other
Banks
;.
iii.io
.
ROUND-LOT
Total
Utilities
298.371
'
REPORTER PRICE INDEX-
AVBRAGE=4€0-
1949
352*417
.Feb.
.
293,514
-•
,_j
m
Vi
Volume
191
Number
5926
.
.
The Commercial and Financial Chronicle
.
South La
Dealer-Broker
Salle Street,
111.
French,
South Broad
123
randum—ModeL Roland & Stone,
Eastern Tran>miision
Fruebauf
on
Thermo
and
Company
Traileu
■"
data
are
King Corp.
:
;
/.-v
-
Lines—Memorandum—
TranscorL
Dempsey-Tegeler & Ca, 210 West
Seventh Street, Los Angeles 14,
Calif.'
;
Corp.
MIAMI
f
fit Broadway, New
A
i
Mannfacturiirg Iim?.
Re¬
—
Merritt Vickers Inc.* 37
Street, New York 5, N. Y.
Industries.— Bulletin
Vol Shan
Co.
&
Leason
of 2 shillings (free of United Kingdom Income Tax) per 10/- of Ordinary Stock
(1958—1/7d. The Special Interim Dividend of 2d. (free of United Kingdom Income
Dividend for 1958).
year
and Gas
York 6, N. Y.
1060
Tax) referred to above was paid together with the Final
Company
dividend of fifty (50<f)
cento* per share was declared, payable
Mardbt 24* 1960, to. stockholders of
qui
Treasurer
V
United Kingdom Income
—
Incorporated,
39
March
payable
stock,
10,
4.08%
4.18%
4.30%
5.05%
1960
to
close of
at the
stockholders of record
DIVIDEND NOTICES
.
business
February 26, 1960.
on
Per Share
,
$1.02
Series
.
Series
....
Series
....
Series
....
.
.
.
conversions
1.0 45
CONSOLIDATION
COAL
on
Vice-President
1960.
figures
PUBLIC SERVICE
POWER
THE DAYTON
United
Corporation
EAST
THE
OF
Outside
Dividend
2,964,078
£20,757,229
£ 2,399,854
7,185,843
the
ORDINARY AND
February
on
The first interim
15,
dividend on tye, jPflfc
£24,537,883
Payable March 15,1960
Record March 1,1960
1960.
Holders of Bearer Stock, to
Walter G. Clinchy,
BRIGGS & STRATTON
Treasurer
with the
must deposit
obtain this
Coupon No. 238
Morgan Guaranty Trust
Company
Tobacco
five clear business
E.C. 3, for examination
£21,785,843 1
British-American Tobacco
proportion is £10,846,111 (1958—£9,578,477).
adjusted figures for Consolidated Profit on
The balance
1958
to 30th September
are
British-American
brought forward from the previous year by
Company Limited is
£2,216,797 (1958— £1,247,986) making total avail¬
profits £13,062,908 (1958—£10,826,463) out of
able
before payment
days (excluding Saturday)
proportion is
Company Limited
1958 figure—£20,237,883), of which the
The
8.
Lombard Street, London,
of New York, 33
CORPORATION
,
dividend,
£11,246,111 (1958—£9,978,477). From the
the new basis and Group
£1,830,802 and £935,139 re¬
spectively less than the amounts actually shown by the Accounts for that year*
The adjusted transfer to Fixed Asset and Stock Replacement Reserves Is £600,000
lower, leaving the equivalent figure on the new basis for Group Available Net Profit
£335,139 less than the amount shown in the Accounts last year. Offsetting this, the
difference on exchange arising during the year to 30th September 1958 and
included in currency conversion adjustment would also have been £935,139 lower.
7.
(free of United
will be payable on
Kingdom Income Tax)
with In the Accounts of British- >
£400,000). Thus Group Available Net Profit Is
Net Profit for the year
Shillings of Ordinary Stock
the 31st March
•
profits-
British-American Tobacco
the
—
Company Limited
Stock for the year ending 30th Sep¬
tember 1960 of 7 pence for each Ten
February 5, 1960
Regular quarterly of 25^
per share
(1958
(equivalent
nary
GEORGE SELLERS, Secretary
transfer,
£400,000
WARRANTS TO BEARER.
1960.
this
Of
PREFERENCE STOCK
1960 to stockholders of record at the
business
Fixed
ferred to
Company, payable on March; 1,
of
in
£5,400,000 (equivalent 1958 figure—£4,300,000) has been trans¬
Asset and Stock Replacement Reserves (see Paragraph 9 below).
Group Net Profit
TO HOtDERS OF
NOTICE OF DIVIDENDS
the Common Stock of
share
close
interests
Company Limited is
American Tobacco
LIMITED
TOBACCO COMPANY,
declared
regular quarterly dividend of 60c
on
Shareholders'
proportion of the Group Net Profit dealt
The
BRITISH-AMERICAN
per-
.
£ 6,263,625
£21,361,890
Taxation
Leaving Group Net Profit———
OHIO
The Board of Directors has
o
February 16, 1960.
£ 4,382,345
Kingdom
Overseas
CROSSROADS
Street, New York 5, N. Y;
•
£53,958,591
from which must be deducted:—
-
•
£55,894,156
Consolidated Profit before taxation, is.
The
which appropriations are as
follows:—
is made.
1958
1959
I (Briggs & Stratton) :
The usual
the
on
E. I. DU PONT DE NEMOURS & COMPANY
%
half-yearly dividend of 2V2
Preference dividends
United
5% Preference Stock (Jess
30th
DIVIDEND
September next
the 31st March 1960.
on
must be
Directors has
declared
this
(50c)
day regular quarterly dividendsof $1.12Vi
share
Series
and
ferred
able
Preferred
87V2
<
25,
close
the
at
I960,-
Common
terim-dividend
to
of
$1.50
also
Stock
the
as
for
on
Series,
1960,
the
March
Pre¬
both
business
1960,
to
on
a
fifty
of
Corporation,
the
stockholders
payable
of record
of
business
P
.
S.
du
L. G. REGNEFt,
the
London* W.C. 2, for examination five dear
Stockholders
the
payment,
CYAIVAMIP
AMERICAN
eral
CYAN AMID
UNITED
ers
B
HOUSTON,
TEXAS
to
exchange of £696,795
the
at
March
1,
close
the
of
11.
1
share
has
been
declared
Stock of this company
I
I960,
to
of 50
dividend
on
cents
per
Common
payable March
of
stockholders
record
at
10,
the
Secretary.
holders
close
of
business
on
February
26,
1960.
at
1.
the
Secretary
under
New York,
S.
KYLE,
February
16,
Kingdom, to
901
the
can
Morgan
New
R.
Section
Secretary
York
Guaranty
obtain
Tax
II
giving
Taxation
par¬
to
.1 J. i.
■c.f
/
i
it
T
i
-
.c
i
i
1
Morgan Guaranty Trust Company of
by application
New York obtain certificates giving particu¬
Kingdom income Tax appropriate to all the above mentioned
dividends.
3?
>•
be entitled by virtue of Article Xi!!(1) of the Double
of the United States Internal Revenue Code can
lars of rates of United
men¬
LIMITED
Treaty between the United States and the United Kingdom, to a tax credit
under Section 901
Kingdom Income
appropriate to all the above
Company up to the 5th April next will be
of this dividend to the transferee.
February 1960
Stockholders who may
of
Company
7.2d. for each £1
BRITISH-AMERICAN TOBACCO COMPANY,
States
tioned dividends.
>
the 29th April next, the half-
Income Tax. Transfers received in
Stock, less United Kingdom
In time to be passed for payment
by application
Trust
of Preference
credit
a tax
United
certificates
ticulars of rates of United
1960.
The Directors have also decided to pay, on
order at the Stock Transfer Office of the
Xlll(l) of the Double Tax¬
of
to
1960.
unit
Treaty between the United States
the United
Internal Revenue Code
25, 1960, to the
of such stock of record
close of business March
March
C. H. McHEIMRY
1
and
be entitled by
may
jjt
l
3
V
M
i -V
to
dividend to
Warrants, the dividend will be paid against
yearly dividend due on the 6% Preference Stock amounting to
Stockholders who
ation
in time to be passed for payment of this
deposit of Coupon No. 113.
the
12.
virtue of Article
United Kingdom Income
in order at the Stock Transfer Office of the Company up
the transferee. In the case of Bearer
7, Milibank,
DIVIDEND
also decided to pay, on
due on the 5% Preference Stock
the half-yearly dividend
next,
23rd February will be
the
Westminster House,
business
Directors of Amer¬
ican
Cyanamid Company today
declared a quarterly dividend of
forty cents
(40C) per share on
the
outstanding
shares of
the
Common Stock of the Company,
payable
At the above mentioned Board Meeting, it was
Tax. Transfers received
A. D. McCORMICK
The Board of
the
(1958—£3,930,914 after adjustment by the amount of
in Paragraph 7) has boon charged against Reserves and
amounting to 6d. for each £l unit of Preference Stock, less
BY ORDER OF THE BOARD
London, S.W.I
quarterly
not resulting difference on
Tobacco Company Limited of the
referred to
31st March
the
February 1960
1960.
COMMON
A
British-American
exchange appli¬
Subsidiaries. The proportion attributable
£935,139
% Cumulative
record
changes over the yeor in the rates of
Undivided Profits in the Consolidated Balance Sheet.
days (excluding Saturday) before
DATED the 13th
Preferred Stock,
D, payable April 1, 1960,
holders of such stock of
maintaining
the Group represented
sterling for consolidation purposes of the current assets
liabilities of certain of the Overseas
and
payment can be made.
Directors of Amer¬
Cyanamid Company today
a quarterly dividend of
eighty-seven and one-half cents
(87 Vir)
per share
on the out¬
standing shares of the Company's
to
DIVIDEND NOTICE
Stock Warrants must de¬
declared
Series
There have been
Lombard Street, London, E.C. 3, five dear
ican
3 v2
10.
cable to the conversion to
business
The Board of
COMPANY
that part of the real capital of each company in
by Fixed Assets and Stocks.
after the 3lst May next hold¬
of Ordinary
the year
Guaranty Trust Company of New York, 33
DIVIDEND
PREFERRED
over
Meeting to be held on the 24th March
on or
regard to changes in price levels, should, in
opinion of the Directors, be retained out of Group profits towards
the
(subject to the
Stock Replacement Reserves represent an
The transfers to Fixed Asset and
posit Coupon No. 239 with the Morgan
COMPANY
CARBON
9.
of United Kingdom
1959.
estimate of the amounts which, having
being sanctioned at the Annual Gen¬
I960)
Kingdom
income Tax effective from April
Kingdom Income Tax).
To obtain this dividend
some
2,216,797
additional to the transfer thereto
income Tax of the surplus, amounting to
proposed transfer to General Reserve is
from Reserve for Future United
September 1959 of 11 pence for each
United
1,664,909
balance to be carried forward of.
a
750,000
2,771,739
£350,000 which resulted from the reduction in the standard rata
for the year ended
Shillings of Ordinary Stock (free of
Ten
1960.
the 31st
on
750,000
4,355,590
_
proposed.
the
I960, of a final dividend on the
30th
pont, 3rd, Secretary
c
Final Dividend
Leaving
issued Ordinary Stock
payable Morch
u
2,375,776
Transfer to General Reserve—
(excluding Saturday) before
payment is made.
May
1960
16,
February
Secretary-Treasurer
Wis.
Milwaukee,
quarterly in-,
February 23,
on
2,771,739
10/- Stock paid 31/3/1959..
10/- Stock paid 30/9/1959.
(1958-1/- per 10/- Stock) /
The
14, 1960, to stockholders of record af tha
close
2,375,776
2,375,776
7d. per
Court, Strand,
The Directors have recommended to
;
6d. per
deposited with the National Pro¬
business days
Nil
791,925
10/- Stock paid 29/5/1959.
2d. per
Interim Ordinary dividends paid—
Coupon No. 113
vincial Bank Limited, Savoy
1960.
26,
April
on
share
a
the
on
of
15,
February
pay¬
share
per
value)
stockholders of
first
1960,
par
Stock—$4.50
share
a
Stock—$3.50
April
record
8,.
the
on
declared
has
cents
capital stock ($3
dividend
quarterly
regular
a
Directors
of
Board
The
Wilmington, Del., February 15, 1960
336,375
352,969
(net)
Special Interim Ordinary dividend paid—
ending
will also be payable
Kingdom Income Tax) for the year
The- Board of
indicated
above)
on
150th Common
•
as
■
Secretary
DAYTON,
33 Pine
1958
/,
AND LIGHT COMPANY
Atlas
September
(equivalent
J. Irving Kibbe
Treasurer
&
30th
1960 to
31,
29, 1960.
John Corcoran,
15,
to
~1959
February 26, 1960. Checks will be mailed.
February
Group's operations for the year may be summarised as
stockholders of record February
of business
the close
at
payable
are
before March
or
at a meeting held today, declared a quar¬
terly dividend of 35 cents per share on
the Common Stock of the Company, pay¬
able on March
It, I960, to sharehold¬
of record
The results of the
6.
follows:—
.45
Years
COMPANY
ers
basis of conversion
1958 so as to make them
using the rates of exchange ruling at 30th September
.35
.
.......
dividends
All
such
exchange for those years, The
the average rates of
at
comparable with the figures for the current year.
Preference Common
Common
made
were
depreciation)
sterling at the rate*
the 30th September 1959, whereas in previous years
figures for 1958 given below have been adjusted to the new
1.075
1.2625
South Bend, Indiana
T..E. JEANNERET,
Secretary and Treasurer
of the Consolidated Accounts for the
30th September 1959, overseas currency items (other than
of exchange ruling at
$1.40 Dividend
Limited U. S. A. inc.
Drewrys
The Board of Directors of
year to
affecting the Profit and Loss Account have been converted to
Cumulative Preferred
the common
on
in time to be poised for payment of this interim
case of Bearer Warrants, the dividend will ba
In the
IMPORTANT NOTE: In the preparation
5.
Dividend
,
Stock
quarterly dividend of fcrT
cents per share for the first qua. etc <J
10/- of Ordinary Stock (free of
the 31st March next.
paid against the deposit of Coupon No. 238.
Class of
A
declared
dividend to the transferee.
ending March
on
Transfers received in order at the Stock Transfer Office of the Company up
4,
,j,
Tax) payable
.to the 23rd. February will be
31,1960,:
DBEWRYS
1960 has been
.
glared the following dividends
tor the quarter
30th September I960 of 7 pence pen
of the year to
DIVIDENDS
QUARTERLY
first interim dividend in respect
The Directors also decided to declare a
3..
GREENBUBGH,
G.
be in time to be passed for payment
of Bearer Warrants, the dividend will
case
paid against the deposit of Coupon No. 239.
be
•
JOHN
the
of the dividend to the transferee. In
received in order
Haymarket House, Oxendon Street,
Stock Transfer Office of the Company at
at the
London, S.W.I up to the 26th April next wilt
record a» the close of business March
.
of the dividend is confirmed, transfers
If the payment
2.
newark. n. j.
The Board of Directors has de-
—
Wall
ended 30th September 1959 of 11 pence (free of United Kingdom Income Tax)
10/- of Ordinary Stock (1958—7d. making, with the interim dividends already
paid, but excluding the Special Interim Dividend of 2d. (free of United Kingdom
Income Tax) per 10/- of Ordinary Stock paid on 29th May 1959, a total for the
Public Service Electric
quarterly
10, -1960.
decided to recommend
fixed to be held on
final dividend for the
was
per
February 10,
.•
which
the 31st May next of a
year
:
COMPANY
COPPER
Meeting of the Directors held today. It was
a
Stockholders at the Annual General Meeting,
the 24th March next, the payment on
NOTICES
01VIDEND
At
1.
to the
NOTICES
DIVIDEND
Trans" World' Airlines, Inc.—BulHiLevis' "{Jk;-*C6:c 63,
Wall Street, New York 5-, N.Y.
port
BRITISH-AMERICAN TOBACCO COMPANY, LIMITED
Buchannan
presidents; and Marguerite
Christe, secretary-treasurer.
\
Tranter
Elizabeth
and
vice
./letiri—John
■■
chanan
Bu¬
Roger
THE SECRETARY,
THE FOLLOWING STATEMENT HAS BEEN MADE BY
Clarence
are
president;
Christe,
Cor¬
poration-—Report—The Milwau¬
kee Company, 207 East Michigan
Street* -Milwaukee -2, Wis. ;1 Also
available
J.
39
295
at
KISCO, N. Y.—Buchris Cor¬
poration is engaging in a securi-
Broadway, New York 5, N. Y.
120
Texas
Co.,
120
N. Y.
offices
from
MT.
& Halske A. G.—Memo¬
Siemens
&
Form Buchris
Street,
Fla.
Philadelphia 9,
Kaplan
John
—
(791)
business
ties
Main Street. Officers
,
H.
Broadway,
Analysis
—
New York 5,
Continued from page 8
1
•
Vornado
Recommendations
Chicago 3,
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The Commercial and Financial Chronicle
(792)
...
Thursday, February 18, 1960
COMING
WASHINGTON AND YOU
BEHIND-THE-SCENES INTERPRETA TIONS
EVENTS
FROM THE NATION'S CAPITAL
IN INVESTMENT FIELD
Horatio Humphrey of
Minnesota, or former Governor
Ewing
Stevenson
of
WASHINGTON, D. C.—There is
great deal
a
Nation's
capitol
first
tion's
of interest
the
over
Hubert
the
in
Adlai
na¬
in less
Illinois.
primary will
heat
dent
Nixon Favored
than three weeks.
The
trial
serve
between
Richard
as
Feb.
is
There
a
Nixon,
the Republican from California,
Mr.
Nixon
and
war
hero
Senator
Kennedy,
Fitzgerald
Democrat from
Massachusetts.
The
there is
reason
Mr.
than
more
that
the
will
be
Nixon.
is
like
enemies.
Club of Houston
Brae Burn
of
popular
Philadelphia
General
has
his
share
36th
dinner at
Winter
annual
the
Feb. 26,
1960
Milwaukee
For
(Milwaukee, Wis.)
Bond
Club
instance, ex-Pres¬
ident Harry S. Truman thor¬
oughly dislikes him, and Chief
meeting and dinner
Justice
United
States,
fornian
and
in
the
Presidential
cam¬
paign this fall.
nedy
nor
the
on
Vice-President Nixon
New
own
party
trial
Hampshire
the
get
the
11
is
vote
and
the
If
Los
Convention
other New Eng¬
Angeles
in
July
nation
appears
Syming¬
Missouri; Senator Lyndon
Johnson
of
of
didates.
He
he is not
Limited Risk-Unlimited Profit
Stock
with
has
Market
put
a
cost
90 days)
book
Had
,
Transactions
visited
in
the
union,
and
revisits to
he
is
of
Senator
and
Kennedy gotten
been
nomina¬
defeated,
he
be a strong Presi¬
hopeful today.
Never¬
theless, his strong showing at
the Chicago convention in 1956
helped to propel him into a
front-running position of his
party early in 1960.
not
dential
President
Pacific
polls
have
Kennedy and
candidates
of
respective parties.
Among those keenly
edged
Boston, Sen¬
Kennedy comes from the
Atlantic. A Quaker protestant
from Whittier, Calif., the Vice-
of them.
from
comes
Coast.
family is
very
their
gage
Kennedy's
wealthy, whereas
on
Senate
campaign
are
three
colleagues of Mr. Ken¬
nedy,
who
Kennedy has made no outstand¬
ing enemies - in
his
political
climb, Mr. Nixon is hated by
many Democrats, particularly in
political
their
has
of successful traders and pro¬
purchase
"buy"
and
"sell"
(call and put) because they know
these
options can make big profits for
them
and
also
can
protect
unrealized
"papier" profits on the stocks they own.
shows
how
gains
to
use
hd? you^akTa5fortune!
you
and mail
can
examine
of
that
instead of
options to
Free.
New
Mr
nedy
Hampshire
J
free
I
If
I
or
examination.
not convinced
can
pay for
itself
many times over, I may return it and pay
n,othifl?- ot,herwiie 1 will pay you $3.00
Mr
Hampshire
similar.
race
in
as
have been
careers
Both
the
UP
Ken-
XVX1<
entered
World War
...
,
II,
..
both
,.
he
defeated
Douglas,... the
ultra liberal.
members
the
of
Con-
Democratic
attacked
?
side
Nixon
rather
President
assail
the
Presidency in the history of the
two-party system in this coun¬
try. However, he has shown in
both the 1952 and 1956 cam¬
paigns
that
he
the
take
can
criticism.
in
Eisenhower to
Hampshire primary
means is expected to be
no
decisive
factor
in
the
big
doings ahead, but it
have a bearing on political
political
could
events
in
the
subsequent
months.
^
Operations.
'
T„
10/ic
In
1946
Incidentally, President Eisen¬
hower, White House
unquestionably
sources say,
will
opntativAc
I
SeniatlVeS.
terms, Mr.
i
to
the
Affpr
bOtn
war
hero.
The
Democratic
ton and
Humphrey
Some
are
Washington
make
two
Hhugp
xiouse
Nixon
was
elected
1950.
After
Mr.
Ken-
three
nedy was elected to the Senate
■
city
■
5
p save postage, check here if you prefer to !
enclose check or money order for $3.00. Then I
J
we pay postage. Same moneyback guarantee. |
[
House
terms,
After
lashing-
was
serving
elected
to
two
years
No.
2
was
in
eleC-
tiye position in this country
1952 and
April
10-15,
of
1960
(Philadelphia,
Investment Banking,
School
of
Finance
Commerce, University
vania.
April 28-29, 1960
St. Louis
Sheraton
(St. Louis, Mo.)
Municipal Dealers Group
Spring Party: Luncheon at Mis¬
Athletic Club, cocktail
party
souri
banquet at Park Plaza
Hotel,
April 28; Field Day at Glen Echo
Country Club, April 29.
at Hotel
Because
of
the
conventions
in
heavy
big
load
work
July
political
the
and
House
are
Con¬
talking
about
foregoing the traditional spring
this
right
year
through
and
until
working
adjourn¬
ment.
The year 1960
promises to be
interesting
an
one on
the Amer¬
ican political stage.
[This
column is
(Atlanta, Ga.)
Stock
Exchange
of
Gov¬
Atlanta Biltmore.
May 19-20, 1960
(Nashville, Tenn.)
Nashville Security
Traders Asso¬
ciation
ahead,
gressional leaders of the Senate
recess
intended
to
re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
the "Chronicle's"
Spring Party; cocktails
May 19 at Hillwood
Country Club; outing May 20 at
Bellemeade Country Club.
and
dinner
June, 1960 (Detroit
& Michigan)
Security Traders Association of
Detroit and
Michigan Summer
outing at Western Golf &
Country
Club.
June 16,1960
(Minneapolis, Minn.)
Twin City Bond
Club 39th annual
picnic and
outing at White Bear
Yacht Club
(preceded by a cock¬
tail party June
15th at "the Nicol¬
let Hotel.
own
views.]
Attention Brokers and
Dealers:
Southeastern Pub.
in
reelected in 1956.
Serv.
*
Carl Marks
FOREIGN SECURITIES
BROAD STREET
TEL: HANOVER 2-0050
&
Co. Inc.
t
.
Our New
York telephone
number is
CAnal 6-3840
SPECIALISTS
NEW YORK 5, N. Y.
•
'
TELETYPE NY 1-971
UERNER ft CO.
Investment Securities
I
&
of Pennsyl¬
meeting of Board
Presidential
a
Vice-President
the
the
and may or may not coincide with
observers
20
Senate, the
at
Botany Industries
Indian Head Mills
Official Films
jn 1952.
the
meeting
ernors
Republican
a
nominees this fall.
and
King
TRADING MARKETS
Of
IWO
in
annual
Firms
hopefuls—particu¬
strongly at Nixon.
the
April 10-11-12, 1960
(Dallas, Tex.)
Texas Group of
Investment Bank¬
ers
Association of America 25th
May 9-10, 1960
Association
of
they apparently
larly Senators Johnson, Syming¬
Were
/viler
Senate
at
series of addresses in behalf of
elected to the House of Repre-
,
dinner
and
men
Nayy in the Pacific theater
i
annual
Edward Hotel.
Wharton
Campaign
The New
a
Association
28th
Pa.)
Institute
May.
by
April 8, 1960 (Toronto,
Canada)
Toronto Bond Traders
Dallas.
The Vice-President is 47 years
old. Senator Kennedy will be 43
Eisen¬
felt that Mr. Eisenhower is still
out
for
...
|
I
zone.... state
on
hower because
a
assailed
political
[
j Address
than
bitterly
Republican candidates
have
■
„
|
have
most
served with distinction with the
■
and
be
*
|
j
In
i
that it
an
Numerous
'
the
of
one
ladder.
I
publishers, Dept. a-7,
Park Avenue South New York
16, N. Y.
Please send me
Herbert Filer's
Understanding Put and Call Options for 10 days'
where
Gahagan
actress, and
gress
trial
•mnronri'jtft
ctppiuyi lcttc
is
Nixon
Somewhat
!
„
io
11 *
should
rivals. Their
in
419
I
I
bookseller,
Helen
Presidential
it
it
Skyrocketed
crown
.
•
New
T+
Fill
this coupon
today.
favorite
concur
race.
"PovUone
r e i 11 d p o
.
your
Senator
Parallel Careers
53 0fl' "
it
<
wise in staying out
was
the
heat
s-
Tn
To
candidacy.
they
pi2ff5t Sits T your st.°ck«
And
Minnesota
that he
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
to buy and sell puts and
calls, how to use
them
to
make
capital
6hort-term profits, how
his
announced
the
options
book
California
way.
running just as hard as Mr.
Humphrey, however. Friends of
Thousands
fessionals
This
Technically, only
Humphrey of the trio
'
are
the subject.
on
hoping
that
will strike
Mr. Johnson and Mr. Symington
by HERBERT FILER
authority
are
lightning
Senator
Options
#1
New
kick-off
PUT and CAU
the
the
that Nixon will be
Target
While the personable Senator
in
Asso¬
ciation 34th annual
dinner in the
Grand
Ballroom
of
the
Hotel
the
his Washington home.
on
Nixon
inter¬
mort¬
a
Hampshire
ested
feel
the
Mr.
the Vice-President has
the
leading
Understanding
Tennessee
ator
He
opinion
as
Senator Estes
A Catholic from
paying
placed
Senator
Vice-President
Nixon
is explained in this clear, simple
of
run¬
Fortunate
1956.
Vice-Presidential
would
-
can¬
money.
50 states
all
some
Public
or
of
the
tion
surrounded
lacking in
in
mate
Kefauver
able staff, and
an
has
call option, risk limited
the option (maybe a few
hundred dollars), you can make unlimited
profits (possibly thousands of dollars in
the
to
to
him out for the nomination.
operating political campaign
organization of any of the
Stevenson's
for Mr. Kennedy,
his
himself with
on
close
came
Adlai
as
ning
The Senator has the smooth¬
est
Texas, the
Senate Majority leader; Senator
How
Kennedy
dent
for the nomi-
ever
(New York City)
Security Dealers
Biltmore.
chusetts.
Senator William Stuart
Bains
New York
of
party.
He has
proved already that he is a
powerful vote getter in Massa-
that the nominee will be either
ton of
Governor
Congress Hotel.
April 8, 1960
the
Mr.
harder than
National
it
former
Washington political ob¬
servers
are
contending that if
Senator
Kennedy
makes
a
strong showing in New Hamp¬
shire, he will be off and running
Kennedy fails to
Democratic nomination
the
at
treasurer's
the
-
Kennedy Organization Effective
Senator
the
for
of
other manner, Cucumber?"
some
being nominated for Vice-Presi¬
land States.
get
qualified
disapproval
indicate
you
report in
than
joining Massachusetts and is
widely known in New Hamp¬
shire
"Can't
Eisenhower,
no
the
Industry
Conference
at
California.
gets. Neverthe¬
Senator lives in ad¬
the
sociation of Commerce &
7th annual Mid-West
—
Kennedy
less,
1960 (Chicago, 111.)
Chicago Chapter American Statis¬
tics Association &
Chicago As¬
Presidency of the United States
than
meeting and
Royal York
the
Mar. 25-26,
is
Capitol Hill that
blond
Chief Justice
on
better
annual
at
Hotel.
doubt in the opinion
of the President that Mr. Nixon
would appear that the Granite
State would give Mr. Nixon a
larger
there
28th
convention
;
reason.
wrong,
President
to
there is
Hampshire traditionally
Republican.
On
paper
it
Mr.
ciation
occasion—for
one
or
tall,
ment
Democratic
New
substantially
has
Presidential nominee. Although
Mr. Warren owes his appoint¬
delegate votes.
is
Republican,
a
6-9, 1960 (Toronto, Can.)
Prospectors and Developers Asso¬
Cali-
would like to be the Republican
Republican
delegate
votes, and Mr. Kennedy is cer¬
to
the
of
fellow
a
unexplained
speculation
14
tain
Warren
than
Right
hat run, each is assured of the
state's delegates of his respec¬
tive party. Mr. Nixon will get
t^ie
Earl
more
some
is opposed within his
in
I
Kaiser
Knickerbocker Hotel.
shown his dislike for Mr. Nixon
Because neither Senator Ken¬
|
annual
at the
March
other
!
Mid-
Bellevue-
Stratford.
of
passing interest in the contest
is the possibility that these two
widely known political figures
might be pitted against each
I
I
Tex.)
Feb. 19, 1960
(Philadelphia, Pa.)
Investment Traders Association
While
the
not
Nixon
(Houston,
Bond
outing at the
Country Club.
Dwight
D. Eisenhower, Mr. Nixon is a
hard-hitting campaigner.
John
the
doubt
nominee
Vice-President
Milhous
1960
and
annual
no
Republican
Vice-Presi¬
19,
Stock
Presidential
prefer¬
primary in New Hampshire
ence
10 Post Office
Telephone
Square, Boston 9, Mass.
...
HUbbard 2-1990
.
Teletype
BS
69
@FedFRASER