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ESTABLISHED 1839
FfB Z
log
"*yB»
Reg. U. S. Pat. Office
Volume 189
Number 5824
New York 7, N.
Y., Thursday, February 26, 1959
Price 50 Cents
a
Copy
EDITORIAL
■111
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• ? * •
-
•*
-
On
It is
knowledge that there is
common
deal of dissatisfaction with the
way
full
employment act worked,
or
good
a
Industry Basis
an
Should Not Create Pessimism
By THOMAS J. HERBERT*
the so-called
Executive
did not work,
By
Vice-President, Investors Management Co., Inc.
Elizabeth, New Jersey
ALLYN
P.
EVANS*
|
President, Lionel D. Edie & Company, New York City
'
during the late, unlamented recession.
For
while
downward
a
long
and
after
business
unemployment
tinued to
citear
move
whether
fvfinal
end.
duced
was
on
the rise, prices
upward drift has
sag
con¬
to
come
account.
a
The mutual fund investment officer
presents,
are
the factors
underlying
growth of the economy". A good deal is
about that subject.
More recently,
however, emphasis appears to have shifted to the
fact that revival does not
appear
basis, he cites experience of Zenith Radio and Lorillard.
still
or
to be
was
produce the best investment
results is the next decade. For
example, to iflttsfrafcs point
that you can't buy
management on an industry-wide
heard
to have absorbed
absorbing the unemployed
Now
expected.
real trouble is that
as
rapidly
as
our
is not growing
fast enough, and that chronic
unemployment is
likely to plague us more or less continuously un¬
til such time as a more
rapid rate of growth is
restored
or
economy
Seek to prevent
inflation
as
well
get together,
as
books.
are
a
as
these
Thomas
so
were
soon
taken
J.
this
the
to
♦An
address
Conference
26
page
is
Feb.
10,
of
by
the
Mr.
Herbert
before
Bankers
American
page
or
are
they' are brushed aside as
unimportant. --•< Rosy
interpretations
are
placed on every business news
release.
The
measure
of confidence has been re¬
flecting
great
current
state
reliable
AUyn P. Evans
a
year
If you
stock
as
expect 1959 to be
a
optimism.
of
the
was
year
32
♦An
1959.
address
un¬
year?
of moderate economic
Continued
the 40th Mid-Winter Trust
Association, New York City,
this
as
last
case
will not be disappointed, but if
you
Will
prove
a
forecaster of business this
believe
you
on
28
page
by Mr. Evans before the Republic National Bank of
Dallas, Texas.
-
tial undertakings in our "Securities
in Registration" Section, starting
on
State, Municipal
38.
page
Government,
and
Housing,
UNDERWRITERS
BROKERS
Municipal
and
STATE
,
AND
MUNICIPAL
Lester, Ryons
-
.
&
Co.
623 So. Hope Street, Los Angeles 17,
t
RAILROAD
Housing Agency
i"
Bonds and Notes
-.,
Members New York Stock Exchange
BONDS
INDUSTRIAL
IIAnover 2-3700
Public
,
California
DEALERS
Securities
tki.kiuione:
mind
as
securities
in
State and
market
SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a complete picture of issues now registered with the SEC and poten¬
DEALERS
Public
universally bril¬
When unfavorable reports are
released
growth
on
hopefulness
forecasts
liant.
over-emphasizing the'
Continued
Fortunately, however, not ail of
on
Herbert
of
ness
men
importance of industry trends.
Companies within a
specific industry just don't all go the same way at the
such
as
investment
of
mood
was
greeted
skepticism. Not so
today. Today the prophets of doom
have gone underground.. The busi¬
outlook will determine the diversifi¬
cation of a portfolio and assure a
successful investment experience.
I
think
few naive souls who
Continued
U. S.
word
with disbelief
inevitable question
an
the
A short year
ago, an atmosphere of fear and pes¬
simism prevailed.
Each statistic as
published thickened the gloom.
A
"which industry groups do you/
currently?"
This seems to im¬
ply that the selection of the groups
having the most favorable current,
specified growth rate to
employment is now supposed
that all would be well
provisions of law
statute
I cannot help but think how
quickly
sentiment changes and how
dramatically.
is,
some
full
Doubtless there
suppose
areas are selected to aid forward planning,
frequent cyclical swings than since World
War II are expected.
like
as
a
high rate of employment. The sug¬
gestion has also been heard that legislation should
fixing
Whenever
erage.
maintain
to be.
more
we study
industry trends in an
attempt to improve our batting av¬
all this has not escaped the attention
Congress whose ears are never far
from the ground.
Long ago the demand arose for
a
provision of law stipulating that national pol¬
be enacted
growth
and
that
Of course,
be nurtured
ent
each industry to weigh the merits of
individual companies. We might say
instituted.
of members of
icy must
caught up with capacity and new
large capital investment. Top ten differ¬
pressures cause
In our search for investment
opportunities an ap¬
praisal of the relative positions and prospects of various
industries is often a good starting
point—particularly a study of the
long term trends. We must lmow the
points of strength and weakness in
often hear it said that the
we
rate
1960 when demand has
of individual stocks that will
/"rate of
slow-down in the
strongly advises that acceptance of thi*
should not occasion misgivings in the minds of those who
currently are most optimistic. Mr. Evans p^Q-ppints the
near-term as being within the restrained "IntBrilfc Years"
of 1957-1962; stresses the
importance of^a^e distribu¬
tion in the population's
composition; and states the next
dynamic upsurge in economic growth will occur after
industry trends helpful in interpreting developments in
particular areas of the economy so as to assist selection
minds about the
many
a
of recovery and
however, what he believes
in economic output also in¬
state of anxiety in
a
started
upward, and it is still not fully
the
The
activity
Lionel D. Edie head anticipates
Mr.
Herbert favors de-emphasizing
industry trends and
industry forecasts in selecting companies in a common
stock portfolio and
emphasizes selection of individual
companies that best fulfill the objectives of the individual
'
,
Associate Member American Stock Exchange
i.'
.
Members Pacific Coast Exchange
PUBLIC
CHEMICAI.
&
CORN EXCHANGE
UTILITY
Offices in Claremont, Corona del Mar,
FOREIGN
THE FIRST NATIONAL CITY BANK
Burnham
yy
15 SROAD STREET,
CABLE:
•
•
Dl 4-1400
Bond
Net
Distributor
To
T.L. Watson &Co.
ESTABLISHED
1832
Dept.
Teletype: NY 1-708
Active
Markets
Dealers,
New York Stock Exchange
Exchange
Canadian Pacific
Block
Y.
Chase Manhattan
Southern
Brokers
The Canadian Bank of Commerce
Railway
1970
We
offer to
current
17,
1959)
BRIDGEPORT
•
PERTH AMBOY
-»
NEW YORK
t
I
MONTREAL AND TORONTO
a
'
for California's
market.
Toronto, Montreal,
Expanding
and
Halifax
Economy
DEPARTMENT
Goodbody
115 BROADWAY
Municipal Bonds;
j
Ottawa, Winnipeg, Calgary, Vancouver,
Victoria
DIRECT WIRES TO
March
buy these rights at the *
Direct private wires to
Inquiries Invited
CANADIAN
BANK
Co.
Domixiox Securities
Grpokahon
Associate Member of American Stock
Exch.
MEMBERS NEW YORK STOCK EXCHANGE
*
DALLAS
STREET
NEW YORK 4, N.
£}Olt£hW€At COMPANY
—
.
Maintained
and
Teletype NY 1-2270
25 BROAD
on
■
New York Correspondent—Pershing A Co.
(Rights Expiring
"*
TIRST
Banks
3Y8 %
Members
Stock
t
California Securities
TCLETVRE NY i-tUZ
Dealer
American
Inquiries Invited
STOCK EXCHANGES
NEW YORK 5, N.Y.
COBURNHAM
San Diego, Santa Ana, Santa Monica
DEPARTMENT
THE
Pasadena, Pomona, Redlands, Riverside,
OF NEW YORK
Company
MEMBERS NEW YORK ANO AMERICAN
30 BROAD ST
Underwriter
and
'
BOND
Ewcino, Glendale, Hollywood, Long Beach,
SECURITIES
BANK
MENT
BOND DEPARTMENT
'
1 NORTH LA SALLE ST.
CHICAGO
40
Exchange Place, New York 5, N. .Y.
Tel. WHitehall 4-8161
Tele. NY 1-702-3
MUNICIPAL BOND
DEPARTMENT
\
Hank of America
NATIONAL
jyftVcs ASSOCIATION
300 Montgomery St., San Francisco, Calif.
I
The Commercial and Financial Chronicle
a;®*!
*r
The
VvG y
For
Dealers
Banks,
only
Security I Like Best
A conditions forum in which, each
TffHANSEATIC"
pride in the abil¬
range
will
It
wide
and
you
pay
of
advantage
our
they to be regarded,
Los
selected
I
was
this
by
Best wall's
CHICAGO
•
SAN FRANCISCO
publicly held
following the
spin-off from
to Principal Cities
Certain-teed
Products, has
been
highly
It
volatile.
initially
was
Charles T. Jawetz
'50s,
sky-rocketed
to 77V4, plummeted in'57 to 3014
and this year reached a high of
R7U.
87y2. Thprp wprp spvprnl rpasnns
There were several reasons
behind
this
extremely
volatile
WEST VIRGINIA
VIRGINIA
■
|
NORTH CAROLIN
action,
f
SOUTH CAROLINA
on
itself
excellent
its
or
management.
call
Less than
.,{3232213'"
RICHMOND,
VIRGINIA
a
Owens
year
after Bestwall's
New
Stock
York
company allegedly
overtures
from
the
Corning Fiberglas
Corporation to merge on an exchange
of stock basis that appeared to be
-
favorable
This
holders.
99
WALL
sional
nectine
peering
Refined
—
great
a
by
profes-
jwho bought Best-
nrofit
to
oy
large
me
industrial
orpatpr
the
in
absorbed
to
advantageous
and
rewarding
company.
y-
iy aesuaoie.
.
m6rgei ^
,
,
successfully
reportedly
management
fi 11113.1 01x61
believe
to
be
It
did
16J6Ct6d.
DIgby 4-2727
of
a
Brokers
txl3t
is
internal
111
j
stock
arbitrage trans¬
actions
of
necessity being re¬
versed,
and
also
caused
some
large selling by those who thought
Bestwall; without
OwensCorning would not amount to
CARL
Boston
chain
of
installment credit makes
consumer
finance companies.
Commercial
the
of
one
small
Advertising
Corp.
of
events
was
took
place
approached by
Continental Commercial
in
engaged
extending
c
a
the
down
the
Johns-
arbitrage
& Co.
Denver—Lowell, Murphy &
Company, Inc.
a
the
growth
Corp.
business, of
installment
been
which
of
has
one
and
Bestwall
and
is
about
represented
sonal
would
never
bile time sales
had
not
have
below
sold
been for the
outlined
50
(1)
(2)
per-
technical
loans
and
loans
made
that
-
-
-
—
keep the
and
i-yXt
on
a
from
loan
basis
insurance
to
notes
and
as
19/30/58
Carl
E.
Bryant
Bank
the
purchase
PU1 ChaSe
of
discounts___.
Bank
loans
5'c
senior
notes
1961-70
n
to interrupdepression, and
to changes in the mode of living
of the average American family
which
required
increased
pur-
pany
than
and
in
its
on
of
the
management
anticipation of
a
com-
rather
lift from
the outside.
Based
on
the
prices
of
other
1920.
However,
i-j
due
^
T„
tions by war and
chases of durable goods on credit.
lsf^'
,,it.
"J
20-Year Performance of
35 Industrial Stocks
.55
2.62
FOLDER
ON
REQUEST
,
n
onnrnviSintPiv
*19 nnn nnn
/<U nnn nnn nf Jwh hi nl Lpfn
(S7,000,000 of which has not been
Continued
N. Q. B.
.16
the recog-
merits
York 7,
INDUSTRIAL STOCK INDEX
5.00
ntp
3.04
entirely
25 Park Place, New
OVER-THE-COUNTER
$14.04
$5.00
unsecured
nrnmkcnrv
9/30/57
—(Millions)—
Net worth (381,944 shs.)
the
FINANCIAL CHRONICLE
com¬
follows:
of growth approximated 10% since
of
THE COMMERCIAL AND
a
fry has been solid because it has
nition
V.' ~'
un¬
2/00
recov-
:in
'
the present
„
in the market. The
advertisement
'5
durables,
other
than 5v2^ sub. notes 1961-70
6Va#
automobiles, has had long-term GVitt subordinated junior
growth. The average yearly rate Con°^ibte preferred
converlibi^nreferred—
been based
place
funds. In
consumer
course
to
company
only
operate
j
(3)
for
to
moving
indicated
loans,
automo-
and
above
'^7*'
reduction in bank
loans. The changes that took place
in the nature of capital funds are
of which
sharply recovered. My
personal opinion is that Bestwall
it
it's/ smart
your
capital base and flexibility that
will permit taking advantage of
growth possibilities. In 1958 this
objective
was
accomplished
by
sale of $8 million long-term un¬
of
by
so
j
customers.
t
the secured
by
obtaining
longer
term
unsecured
capital
funds in order to create a larger
of the
stock down to its low from which
has
new
management has had as its objecbank
American
93%
reserves
recent years, however,
panies
the
•:
number of years, manage¬
secured
drove
useful tools in
charges.
secured basis with bank
tive
of the phenomena
small
credit,
buyers should disregard-its price
disregard - its
historv in determining it« -future
history in determining its future
Direct Wires To
For
loss
in
finance
earned
Consumer
'57,
securing
So
Sept. 30, 1958, its assets totaled
$16.9 million, after deducting $1.1
installment
of
the Pittsburgh
area,-financing retail and wholesale/ sales
of^ automobiles
and
making personaHnstallment loans.
Two
subsidiary insurance com¬
panies provide life and casualty
re-
factors
Angeles—Marache, Dofflemytfe
offices* in
versals, plus disappointed selling
by
professionals,
coupled
with
heavy year-end tax selling at the
end
most
business
•
million
living in the
past decade.
turn
offer. The
/ of
oi a ousiness
incoiPoraiion in
Corporation
consumer
the
credit,
standard
to
one
companies with possibilities
ment chose to
it
Trading Markets
Exchange,
Commercial
economy
Manville
is
fi¬
consumer
insurance incident to the business.
Stoek Exehange and
Johns-Manville, also on an exchange
of
stock
merger
offer,
After months of negotiating, during
which
time
professional
traders
were
busily arbitraging,
holders
Over-the-Counter
in
the
American Stoek Exehange
it in the best interest of its stock-
200
as
my
BRYANT
Members: New York Stoek
Continental
when Bestwall
Broadway,N.Y. 6COrtlandt 7-5680
At the close-of the 1958 fiscal year,
^
ilar
E.
the Bestwall management deemed
*
ago
Hayden, Stone & Co., Boston, Mass.
much.
Teletype—NY 1-1127
change
like best.
I
that
Telephone HAnover 2-4850
to
reason
in the best interests
resulted in these
1930
no
gee
opinion of several years
selecting Bestwall Gypsum
u
7
Investment Bankers
and
growth in the volume
<inrnrnnratinn in 1922 of
sufficiently
nor
&
over
favorable outlook for profits
Continental
whir-h
of
Ltd.
*7r
Tokyo, Japan
>
begun
of the Bestwall stockholders. This
Sreeiie<mi6ompaT\v^
all
7i
.
finance companies
both
by
ioan
Negotiations, however, were not
concluded after the
Liquid
inHustrv
Inc.
-
Yamaichi Securities Co.,
continue to
th^
in
Affiliate of
com-
and strengthen its posi-
earningS
7'
:
increase its !
'
is not a newcomer
continue to increase us to the business. It represents the
w;ii
Danv
'V-
installment credit is
the
consumer
for
nance
the
Meanwhile, I believe
of. New York,
.
long- and short-term.
consumer
further
"
,
Yamaichi
Securities Company
profits rose 267%, from $31.8 mil¬
lion to $116.8 million. Prospect for
stockholders
any
acquiring
•
write
largest finance companies of the
country increased their total as¬
sets 245% to $5.4 billion and their
its
to
or
fz?ua"d P™".4 ?akinL c?£acity'
In the decade just passed, the five
both
terms
on
credit
*
external expansion, have grown in
nlants
future, and it is my belief that at
some
future time Bestwall may
be
the
Call
outstanding
in
•
installment
h
information 7
current
|
perfontiameolthis stock on the panies in the, country.-It operates.
New York Stock Exchange.
be®
attractive
'
For
tjnn
not
Los
ing
acquiring the company must" certainly, at this time, be deeply regretful of their actions. Others
will look at the company in the
well
offices
About one-half of the outstand¬
the
missed
branch
reces¬
slight decline
lyde'sfrable
Export*—Importe—Futuree
Bell
both
have iooked
at
past, and those
opportunity of
eyes
Bestwall
our
japanese
was
differential than existing.
Many others bought Bestwall
Bestwall
Established
pro
will
Covetous'
growth
consumer
:
-
_
^eh
laree
the
bv
pronj
JO
price
SUGAR
—
caused
arbitrage
traders
stock-
Bestwall
wall and sold Owens-Corning, ex-
STREET
NEW YORK 5, N. Y.
Raw
of
amount
LAMBORN & CO., Inc.
the
to
further
wina^noniibilion lield
need hLe"oo7s which,
7
_
who
listing on the
Exchange, the
received
•
wires to
STOCKS
business
1957-1958
The
sion brought only a
ously expanding for an indefinite
period
of years as .the nation
attempts to house, educate and
internal
company
f
Mobile, Ala.
Direct
88%.
up
building industry, of which
it is a vital part, will be vigor¬
of which were based
operation of the
none
the
Product
National
Gross
and
The
upper
BONDS
MUNICIPAL
the
in
traded
the
For
NY 1-1557
New Orleans, La.-Birmingham, Ala
in the overall outstanding conof
retained
earnings. The 1958 sumer installment credit. Howannual report is expected to show ever, since the long-terqi pattern
earnings in excess of $5.50.'per: of growth has been that of :the
share, compared to $4.05 for 1957.7 growth of Gross National Product,
Any company1 that can show7a Lthe predicted rise in the latter, tobetterment to this extent in a year
near the $500 billion level before
as
difficult as was 1958 must be 1965 and the indicated resumption?
capably managed, which Bestwall of purchases of durable goods by
consumers
in
1959,
point
to
certainly is
' V.
nnnenmore
in
1 Q^Q
r»r»lr*f
in
the
became
stock
Teletype NY 1-40
•
Wires
unusually large institutional
buying. 7
The cash position of the com¬
pany is very sound and its expansion program is being financed out
been
has
"
M Rector St., New York f, N* Y>
personal consumption ex¬
penditures rose 72% in this period
strengthened
Bestwall
since
Members New York Stoek Exchange >'
Members American Stock Exchange
======s
•
while
disclose that the market action of
column
regarded
market action,
120 Broadway, New York 5
Private
highly praised the management of
the company in its 1958 annual
COMPANY.
Member
American Stock Exchange
■
HAnover 2-0700
GYPSUM
Established 1920
PHILADELPHIA
last invited to
highly
•.
..
credit has increased fivefold beso ago when
report. The first quarter reports tween 1.947 and 1957. Disposable
contribute to of other funds will undoubtedly personal income increased 85.3%
or
year
Steiner, Rouse & Go.
in the past decade. Annual outstanding
consumer
installment
BESTWALL
Corporation
BOSTON
a
>...
and
stock5
the
of
shares
^ {)(){)
Bought—Sold—Quoted
Corp.—
acquired the rate of growth has been higher
has
significantly
very
one
I
New York Hanseatic
Angeles Exchange
Gypsum
(Page 2).
1
-
■
,
search for
growth vehicles. The Lazard Fund
Ponciim '
Louisiana Securities
—
Bryant,
of
Hayden,
Co., , Boston,
Mass.
V,7
7
&
(Page 2).
acquired
of it daily is being
Company
Commercial
E,
Stone
by institutions in their
security I have selected as
I like best is the same one
The
the
WOrth 4-2300
and
American Stock Exchange
Raeiuiaii
Carl
them a11' A laige am0unt 0f the
.g yery ciosely field, and
more
Alabama &
T.
geles, Calif.
gtock
Members: New York Stock Exchange,
Bestwall
t-
Gypsum
Continental
repre-
outstanding value
sents the
A nfrflps
Los Angeles, C-ilif
Calif.
Over-the-Counter
Bestwall
stocks,
gypsum
Purtner, Daniel Reeves & Co.,
to take
nation¬
problems.
Associate
Participants and
Jawetz,
Partner,
Daniel Reeves & Co., Los An¬
are not intended to be, nor
offer to sell the securities discussed.)
as an
CHARLES T. JAWETZ
private wire service
prompt service in
your
Bestwall
(The articles contained in this forum
are
extremely
of contacts.
an
cover
broad
Thursday, February 26, 1959
.
Their Selections
Charles
ity of our large and expe¬
rienced trading department
to
.
This Week's •
Forum
week, a different group of experts
fat the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
'W
We take
.
#■
on page
44
National Quotation Bureau
Incorporated
16 Front Street
New York4tN.Y.
Volume
189
Number
5824
The Commercial and Financial Chronicle
(971)
Chemicals
INDEX
Buy ioi 1959
By R. B. JOHNSON*
B. &
Articles and News
Page
Analyst, Schwabacher & Co., San Francisco, Calif.
LicHTtnsTEig
llll «l
Recovery Rate Slow-Down Should
California analyst weighs the
and
pros
of chemicals and
cons
—Allyn P.
no
justification for the onus of disfavor placed on them.
Mr. Johnson opines that,
among the many industry groups,
chemical companies should provide
Not Create Pessimism
Evans__
sees
Fallacy of Investing
—Thomas
opportunities this
Chemicals
things,
fulfillment of
upon
best
to
in
be
sharp
;
|; easy, because
| * it involves an
previous summer's highs
twhieh
.prevailed
.
jV
¬
'v
ventories
ing
the
and, under the impact of still high
11
o u
j
economic
o
ok
as
well
a
rate
ferent
d
dif¬
the
j
j
r. b. Johnso,,
long
kept in mind:
be
may
income. It
tive
concerned
more
offering
is
greater
not
As
automobile
a
ance
or
was
for
to
that
industries
this
and
expect
to
recovery
the
possibility
uneven
of
in
course
technical
a
...
As
Chemical
projections
parcel
of
the
are
part
and
of
an
tunities this year.
The chemical industry
address' by " Mr. Johnson
Dinuba .Rotary-Club, ■ Dinuba,
l*An
were
specialized in
NYSE Members to
sooner
V
As
(allowing
"bottomed>
,
Bank
(season¬
are
effects
out of
on
Sales
J have
is
among
not
and
It
Regular Features
1160
City
(Editorial).
Insurance
.
!!!__!__•!___.
Stocks
48
Century Geophysical
13
Bargeron.
12
Singer, Bean
45
,
Mutual
Funds
&
17
HA 2-9000
.
arid
inflation
of
.
.
.
...
•
new
News About Banks and Bankers.
a
Our
Reporter's Report
a
Governments..!
on
San Francisco
33
—
as
Philadelphia
Public
Utility
f
to
Dallas
•
Us Angeles
Cleveland
Chicago
8
j
Securities
44
the past year
to increases
Securities
30
Western Gold &
38
Uranium
in both
"r Securities
Now
-Prospective
although the total is still be¬
of
Reporter
Railroad
addition
that
Direct Wires
Our
inc.
Exchange Place, N.Y.
May
and expanded com¬
slump
40
Teletype NY M825 & 1-4844
Observations—A., Wilfred
cost
Mack ie,
46
________
•
Northrup
8
From Washington Ahead of the
News—Carlisle
been :£
unanimous
Pacific Uranium
27
Indications of Current Business Activity..
.chemical
American Dryer
.Cover
______
Grant Credits to U. S. S. R.?"
V*
sales and production, employment
in the chemical
industry is also
year ago.
Securities
in
Registration..!.
Security
Offerings
42
^
Salesman's Corner
Alaska Oil & Mineral
29
,
.
The Market
Continued
on
page
and
You—By Wallace Streete
..
The
:
34
Washington
Security I Like
Best
2
You
and
Twice
Reeves Soundcraft
:___
Weekly
FINANCIAL
Reg
B.
48
Copyright
1959 by
York
Stock
Reentered
CHRONICLE
ary
HERBERT D.
-
WILLIAM
25,
as
1942.
second-class matter Febru¬
the post office at New
at
COMPANY, Publishers
New
York
7,
N.
Y.
SEIBERT,
Subscription
-
SEEBERT, Edlter & Publisher
DANA
President
of
Pan-American
Union,
Id
Dominion
Canada,
of
Thursday, February 26, 1959
Other
Chicage
Schenectady
Glens Falls
Worcester
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings
state
and
city new6
etc.)
.
Other
Chicago
Offices
3,
111.
l?*5
South
i*
(Telephone STate
8»n-
2-0613).
Rates
Subscriptions in
United States,
U.
Possessions,
Territories
and_ Members
Other Countries,
N. Y.
TELETYPE NY 1-5
Basic Atomics
b. Dana
York, N. Y., under the Act of March 8, 1879
REctor 2-9570 to 9576
Exchange
ST., NEW YORK 4
DANA
William
Company
U. S. Patent Office
Place,
Permachem Corp.
4
The COMMERCIAL and
PREFERRED STOCKS
Yonkers Raceway
16
The State of Trade and Industry.*
:
inventories totalled $3.7 billion —
right in line with the' year before.
TELEPHONE HAnover 2-4300
Lake
Leeds &
—
Figure*
sales
r.
See
r'Einzig: "Threshold of Danger to the West—Will Britain
Spencer Trask & Co.
Nashvflla
JCY
Direct wires to Denver A
Change in Commission Rates.___ 23
Dealer-Broker Investment Recommendations
,
illustrates.
In
City Stock Exch.
Exchange PL, Jersey City
16
'
petition... Nevertheless, the chem¬
ical industry has demonstrated an
outstanding ability to pull itself
Calif.
Boston
Members Salt Lake
Teletype:
Coming Events in the Investment Field
pub-^
a"* W-'
We
25 Park
Albany
J.F.Reilly&Co.,Inc.
Salt
Vote
,
Both
WILLIAM
25 BROAD
22
DIgby 4-4970
before
New
20
•
Ml
Members
Market—Roger W. Babson
Elizabeth E. Cook Questions
Effectiveness of Protests to
Legislators (Letter to Editor)
Published
For many years we
Stock
to continue, fear the possible -;\:
ery
low
sults of the business decline
the
or
in the third quar-
even
appears
re¬
15
1
,Let's look at inventories for. a
sales
cession with little, if any, serious .moment. '-With
increasing,
unbalanced inventories are being
or
permanent damage. And al¬
corrected. At the end of
October,
though by. the end of the year, re¬
have
PERMACHEM CORP.
of Change
*
those who expect the recov-
even
up,
to. have weathered the 1957-8
Berlin and
all-time high. When
$
-
1959,
analysts,
the
analyst, I should like to offer my
personal opinion that, among the
many industry groups, chemical
companies should provide betterthan-average investment oppor¬
the
Age
an
Crucial Challenge to the U. S. and
Capitalism Generally
—Elliott V. Bell______
\
estimated at $24.5 billion. Opinion
corrections.
function
*
$6 billion
new
however,
a
Industry
—
expected.
factors)
Relates
For
increases
Prefers
much
had
than
p
market this year with the upward
trend in prices punctuated by a
of
de-
high of $23.4 billion J.,'
1958. Several analysts in fact have
number
in
Sarnoff______________________________
k--
modest decline from 1957's record
the
continue
truly dynamic performance of
somewhat
oneV?
lished, chemical sales for the year
should total something more than
$23 billion — reflecting only a
year, I doubt that the stock
market will be able to duplicate
suggested
Society's Education
short b
a
trend
and \ production
more
ter
successful
I
ever.
a
BASIC ATOMICS
Energy, Economy and Society in
Transition—Boris Pregel____ 18
might continue
t'ull-fledged re¬
appeared
seasonal
this
the
12
Competitive Market—Jerome B. Cohen 14
•
industry's
the final results for 1958
companies —
more difficult
inay be
While
year
than
choosing
—
economic
a
—Brig. Gen. David
out, although the V
unusually • sharp, -it
short-lived. In fact, re¬
ally adjusted)
With the stock market averages
at
record
highs many analysts
agree
Free
out" in March and then rebounded
econ¬
of operation.
omy
into
many
sales
at¬
they
Volkswagen for
growth
HIGGINS, INC.
was
very
than
Ferrari for high perform¬
a
n
Strauss
Pricing for Profit in
'»
turned
covery
prospec¬
purchasers
it
decline
with
tempting to decide whether
want
•
Support of Businessmen to Help Defend Our
Economy
cession.
current
unlike
than
chemical
business
downward
may
shares
term
whether
each
be interested in high
performance growth stocks, others
i
ho
would
more
RACING ASSN.
f
:
to whether
as
decline
-
in :the
pause
investor has individual investment
objectives. For example: while
many
—-Norris O. Johnson.
•vf::dr^on» Lewis L.
VV
business
CHARLESTOWN
produc¬
or
beginning of 1958,
velop into little
■
consideration
be
sales
completely sure
was
■j, dition,a prime
also
either
9
in the Days Ahead
4-6551
7
Bond
___
stocks
groups. In ad-
must
:
production V V .b
'
At the
stock*!
:
than
tion.
of the relative
jan
in
operating costs, net profits, were
declining at even a more rapid
a s
de-
.tailed analysis
merits of
cutback
a
and Business
STREET, NEW YORK
6
Freedom of Competition in the Space
Age—George Romney__ 10
:
building-up—fore- )
were
appraisal of
1
WALL
Telephone: WHitehall
U. Cobleigh__
Anachronism?—Paterson
-
in-'
;
With Saks Appeal—Ira
an
Financing Government
-
\
Obsolete Securities Dept.
5
Government Securities
,
12^
Vv
j
Gimbel: The Merchant
months ago. At that time sales 'had v.
declined
considerably
from : the
.
•
_
Is the Stock Market
to
just
;
3
Lanston__
-»•••
j
that
j
Market—Aubrey G.
f;
contrast
vestment opb p o r t u n ites l b1 -This is-never .'
I:
Buy for 1959—R. B. Johnson
-The Decided Change Looming in the
recovery prospects
seem
Cover
99
His predictions rely, among other
,in-
I WANT TO GIVE
-
.
Periodically,security analysts reflected iin both sales and earn¬
jj attempt to determine which in- ings,
it,;«was
apparent
that in
j dustries — and which companies definite recovery was underway. '
The outlook, right now, would
f within such industries—may offer
the
'
Herbert
..Program—Louis W. Prentiss
,
and motivating
impact of research and developments, and he denies stock
prices are too high compared to prospective earnings' in
A
1959 and 1960.
1,
Industry Basis
AND COMPANY
Dangerous Road Conditions Ahead in the
National Highway
■
dend rates look much safer.
J.
an
on
II"
fe____Cover
_
better-than-average invest¬
year. The author reports: (1) sales are
expected to reach $24.5 billion; (2) improving inventory-sales
ratio; (3) polyethylene will be the first plastic to reach and
^ better a billion pounds;
(4) synthetic fibers are in the spotaii Jight, and (5) profit trend is definitely
upward—making divi¬
ment
3
Bank
and
$45.00 per
Note—On
the
per
$68.00
year,
per
WHitehall
—
Monthly
Teletype NY
3-3960
1-4040
& 4041
(Foreign Postage extra
account
of the fluctuations
Direct
in New York funds.
Wtra
tm
It
oi
exchange - remittances
foi
subscriptions
and
advertisements
must be made
INCORPORATED
year
Publications
Record
m V. FRANKEl & CO.
39 BROADWAY, NEW YORK 8
rate
foreign
S
$72.00 per year.
Quotation
year
$65.00
PHILADELPHIA
Chronicle
The Commercial and Financial
4
.
.
.
Thursday, February 26, 1959
(972)
price up to 9% above asset value
to cover selling expenses, along¬
side the similar entities readily
available on the Stock Exchange
at
discounts
from
asset value.
Observations
Y
Steel
The
State of Trade
insurance available to
depositor at the savings bank
asking, at a saving
THE U. S. vs.
Explanation and Implications
f
re
,
But'
public -im¬
pression, such
technical
mm.
de¬
not
does
Wilfred
A
apply to the
pending dramatic
action by the
Alexander
Guterma.
cussed
pinning of the; Govern¬
ment's action against the Siberiaborn,
missionary
educated,
The
"Junior
1951
United
the
Pakistan jute
on
wise
Surprise has been expressed
that regional SEC administrator
Paul
Windels
Jr. went to
the
books
completely chaotic
stock of any of the subsidiaries
be located except that held by
Louis
action
against
Motors
comprising
ing to the Christiana group to be
actual
the
Industrial
588, in the Dow Jones
The mean of
Average.
forecasts
the
Similarly
Mr.
Wolf son,
the Commission
relied on form-filing as the basis
of contradiction with his allegedly
fraudulent activities in American
Motors stock.
Involvement of Criminal Action
the
in
the
of
mean
the
category,
rail
forecasts
was
a
high winning
guess of 148 against a close of 161.
Only in the case of the utilities
with
110,
mere
a
disposed of via bloc sale, and the was there a forecast above the
million shares owned by the ensuing
closing price, although
too
the mean
of all the
individual du Pont stockholders, here
over
a
ten-year period, writers, at 75, again fell far short
might also be finally distributed of the actual finish at 91.
The over-caution
(in terms of
in sizable grouped amounts.
short-term market forecasting) of
In any event, and irrespective
which,
eventual mechan¬
of the size and
ics
the
of
tion,
a
du
Pont-GM
segrega¬
reminded of the Wall
we are
sudden expansion of the supply
a
stock
customarily
a
meets a
relatively
This is evidenced al¬
another
sophisticated
revealed
in
market's
short
time
the
interest.
high
record
is
group
behavior
short
of
An
the
all-
position
(of 1,027,484 shares) is reported
by the American Stock Exchange.
And on the Big Board there is the
sizable outstanding short position
4,127,940 shares.
Complementing the missing-ofby the wise ones has
as well as
boom, and for the old
been the profitable bullish market
vvarhorses as well as new issues
(as
Ford,; whose special grand participation of the amateurs as
debut category may disqualify it again confirmed by the current
sales under the Monthly Invest¬
as a precedent).
ment Plan.
The New York Stock
The cause
of this
frequently
Exchange"" announces
that
the
anomalous popularity
of special
number of Plans started in Janu¬
(secondary) offerings does not lie
ary were
the second highest in
entirely with the greater liberality
history. To the uninitiated go the
of the commissions earned
most
It will be recalled that
recent
from 444 to
43
high price.
creditors and sellers, and that col¬
was diverted through sub¬
its
General
the 19-odd million shares belong¬
of
lateral
in
the
stimulated demand at
can
sidiaries.
of
stock held by du Pont;
Street distribution fact-of-life that
condition, that stock registration
obligations were disregarded, that
no
behind
way
event of the intervening 32% rise,
all
tribution
getting a warrant for
arrest for "mere" non-compliance
with the obligation to make "In¬
siders' trading" reports with the
Commission. But, it must be real¬
ized, reliance on its form-filing
provisions is the only way an
administrative agency can directly
move
against suspected wrong¬
doing. In the present case, jacking-up the defendent on formfiling is directly relevant to the
SEC's principal charges to
the
Guterma's
tax-
wholly in¬
of
stance
through the ordered massive dis¬
extreme of
a
whose
others
was a
bare 450,
investors,
an
important
with
the
highest,
that of the
in investment practice is
winner, a full 23 points below the
brought to light. We have in mind
actual result. (Significantly, Mr.
the investor's habitually illogical
Ben Weberman, the victor, picked
reaction price-wise to a substantial
the same figure as he had in the
supply of an issue. This would, of
previous year's contest).
course, get a hard practical test
ity.
have been in
be amended
Street, should
include
irony
change Commission Form 4 may
look like resorting to a technical¬
Mr.
persecution
its
thousands
of
nocent
States in
midst that
rift with India, on his
failure to file the Securities Ex¬
that
with
Pont,
country's
effect
implications of the govern¬
ment's anti-frust action against du
who
flubinstein"
Serge
into
rode
Wall
to
..
May
authorities against Mr.
Leonard
the At¬
he main¬
-
contrary
vice
to
unfailingly in secondary dis¬
should
coping with
be
a
realized
that
in
of the present
case
wide scope, limitation of Commis¬
sion action to the mere injunctive
dating .from April 1958, is poised
for a thrust which will top the previous business highs attained
in mid-1957. So states the February "Barometer of Business," the
monthly business summary of the Harris Trust and Savings Bank,
Chicago. In December, industrial production had recovered 84%
available to it, is insuffi¬
to
their
To
efforts
as
they are
cient. The defendant
can
flee from
toothless injunction to injunction.
increased production but also to higher average prices: But even
eliminating prices, it seems certain new highs in physical output
will be attained this quarter. Personal incomes are* already at
peaks after adjustment for. price increases but income minus the
recession-induced increase in transfer payments (primarily social
"sold"
while unemployment is up
which unemployment has
due to
in
lieu
As
of
with
of
workweek
Racing
•
THE
RADIO PUBLIC AND
INFLATION-DEFLATION
The
public's red-hot interest on
inflation question is re-high¬
lighted by the extension of the
popular "Meet the Press" RadioTV program to embrace that topic.
Professor Sumner Slichteri fore¬
the
most
creeping-inflation protago¬
nist, was the guest "fall guy" last
Sunday.
Particularly significant
to those monitoring the proceed¬
ings was the clearly evidenced
debunking of the assumption that
Whitin Machine Works
Sterling Oil of Oklahoma
San Juan
Racing
•
•
of listeners
reactions
rounded
employed.
those
:>
not be
reported by a
a
of immediate concern.
cause
also notes that the rate of business recovery tends
be directly related to the intensity of the preceding business
The study
to
e., the greater the
the rate of recovery. Since
decline, i.
previous economic decline, the faster /
the 1957-58 recession was moderately
is only that the
expounders will bestir themselves
—provided
Tionesta Pipe Lines, Inc.
to
be
it
articulate
as
program's
previous postwar recoveries arid
perhaps slightly faster.
,
.
Nationwide Bank Clearings Up 11.4%
Bank clearings in the week ended Feb. 21
crease! compared with a year ago. Preliminary
will show an in¬
figures complied
advices from the chief
week clearings for all
cities of the United States for which it is possible to obtain weekly
clearings will be 11.4% above those of the corresponding week
last year. Our preliminary totals stand at $27,125,706,928 against
$24,346,062,617 for the same week in 1958. The telegraphic advices of the "Chronicle" show that the
three leading money centers compare as follows for week ended
Feb. 21:
'•
'
'
'
v
v :
*
" 7 \. •, *
by the "Chronicle" based upon telegrahic
cities of the country, indicate that for the
■
.
.
.
,
1959
New
-
——
Philadelphia
—
%
^13,975,209,739
York
Chicago
1958
$13,415,507,694
+'-4.2
1,364,352,570
1,201,000,000
7,135,355,847
-v 962,000,000
4-20.2.;
+24.8
National Summary of
The
following
conditions will appear
serve
as
questioners
were
from
the
Business Conditions
of general! business and financial
in the February issue of the Federal Re¬
summary
Bulletin.
activity continued to
remained at record levels.
Nonfarm employment increased somewhat while unemployment
lose about seasonally. From mid-January to mid-February whole¬
sale prices of industrial commodities advanced further. Common
production and construction
Industrial
expand in
stock
—
January and retail sales
prices receded from peak
Industrial production rose one
January. The seasonally adjusted preliminary
143% of the 1947-49 average was less than 2% below the
further
index of
levels.
Production ITp 1%:
in
prerecession level in August 1957. Nondurable goods production
was
4% higher but output of durable goods 5% lower than in
August 1957.
Activity in durable goods
industries increased further in Janu¬
mill opera¬
of capacity.
Although hampered by adverse weather, steel
tions rose more than seasonally and averaged 74%
ary.
of
By mid-February operations were scheduled at 84%. Output
aluminum and most construction materials was at advanced levels
Production of household goods increased, butja strikeshortage of glass, which has continued in February*
in January.
induced
Continued
on
page
36
Sorg Paper Company
"New
To
Products, Plant Modernization
Spur Improvement by Sorg Paper"
Reprint of article in Barron's
Weekly sent
upon
request.
the
pressv
G. EVERETT PARKS % CO.. INC.
Joins
,
"
52
Broadway, New York 4, N.Y.
•w Dlgby 4-2785
„
greater than the previous postwar recessions, it would be reason¬
able to expect the present rise to be at least as rapid as the two
up
by this observer, it is clear that
national solvency too is appealing
Alco Oil § Chemical
Investment Securities—Founded 1940
/
recent National Bureau of Economic Re¬
search study, almost all 25 business recoveries since 1954 have
carried to new highs in production, employment and profits. The
Harris Bank believes that the present recovery will be no excep¬
tion.
This study points out that the most rapid rate of rise in;
recovery typically occurs in the initial phase of the upturn and/
I hat as previous highs are reached, the rate of rise slows.
Much
concern has been expressed in recent months because the rate of
recovery appears to be slowing. Yet, if history can provide guides
to present trends, a slow-up should be fully expected and need
As
only in-flation can be made palat¬
able to the layman.
From the
Charles Town
1.3 million persons. The slowness with ;
declined as business improved has been
in the size of the labor force, an increase in
increase
an
productivity of labor and capital and a lenghtening of the average
point
in that direction.
Avenue" pressure in
„
and unemployment benefit payments) is - still slightly
below the previous high; .Employment after seasonal adjustment t
is still 900 thousand persons below the. July 1957 business peak '
security
Industrial
#
i-t
the American citizen's need to be
buying.
February
high. Current dollar spending on production of goods and
services is already above, the previous high due to not only to
1957
spoils!
great extent it stems from
a
recovery,
of
the-boat
self-propelled
the "Madison
Fuller Brush,
Hence,
criminal prosecution is cigarette, and cosmetic distribu¬
being resorted to, for which the tion, this p rinciple extends
U. S. Attorney's services are re¬ throughout the investment area.
quired. The SEC itself cannot It is clearly evidenced in the case
criminally prosecute. And so it of investment companies, account¬
came about that police cars in the
ing for the constant enormous
dead
of
night
invaded
Mr. sales of the mutual funds at a
process
economic
tributions in times of market bust
salesmen, stimulating
Industry
J
'The
by the
It
Price Index
Auto Production
Business Failures
of the decline and this month is within about 1% of the
skepti¬
with the cism is based on qualifications
regional U. S. Attorney, and outside of personal * association
hence was not done. If it develops with
market precedents.
Fore¬
that
this
contention is correct, most. among such sophisticated
perhaps it will happen that Mr. conservatives/ are > the 1 ;expert
Windel's allegation of Mr. Guter¬ financial writers, whose "costly"
ma's impending flight to Turkey prudence is strikingly revealed by
will turn out to have been a de¬
the just-announced results of the
vice to justify the criminal action. annual forecasting poll conducted
v;
''-.H
*
*
v
*v by Eastman Dillon, Union Securi¬
ties
&
Co.
Conforming to the
U. S. vs. DU PONT-AND THE
previous year's experience, the
STOCK-DISTRIBUTION
expectations of the writers, so
ANOMALY
knowledgeable in all the financial
facts-of-life, were in every in¬
Apart from the generally dis¬
widespread
to
clearance
for
narily
torney General, which
tains
is not identical
on
involved.
EXPERTS
"No one over the age of 35 has
that it was incumbent
on the
SEC under the statute to made real money out of this bull
refer
criminal action prelimi¬ market/' I the saying - current -in
grounds other
than the prin¬
cipal crime
actually
mow,
OVERCAUTIOUS
THE
that Mr.
exceeded his
authority,
convic-
t ions
has grossly
Windels
uently
to
q
'•
.
torney, Richard H. Wels,
compelled
seek
stated
is
law-enforcing
authorities are
sold!
reply to this conclusion, it
by Mr. Guterma's at¬
In
fax defi¬
ciencies of .the A1 Capones, Owney
Maddens,
Dutch Schultzes, our
for
prosecutions
Form 4.
on
dramatically exemplified in
As
the
Commodity Price Index
Food
and
of the expense
MR. GUTERMA—-
Retail Trade
window for the
of selling it to him,
Guterma's Green w i c h, Conn, nevertheless lags far behind sales
residence on a complaint bringing volume by the pushing salesmen.
criminal action for his failure to
The American consumer in all
file the share ownership changes
areas
willingly pays for being
Output
Carloadings
Similarly,
the
By A. WILFRED MAY
Productiaa
Electric
Hayden, Stone Co.
Straus, Blosser & McDowell
MEMBERS NEW YORK STOCK
BOSTON, Mass.
—
Peggy Stem-
pie has joined the staff of Hayden,
Stone
&
Co.,
10
Post
Office
Square.
DETROIT STOCK EXCHANGE
Tel: WOrth 4-1155
•
EXCHANGE • MIDWEST STOCK EXCHANGE
•
AMERICAN STOCK EXCHANGE ( Associate)
111 Broadway, New York
•
Tele: NY4-1385
:
Volume
185
Number 5824
.
.
The Commercial and Financial Chronicle
.
1957
j the ''biggest highway
1
of Federal Interstate
one
in
and
some
per
Highway
Trust
revenue
16-year period
be
Fund.
the
share
then
calculated
was
"I can't
for the life of
needs
(4)
cost
although the
income
the
how
great
public
works
gram
pro¬
so
fully
a
the
National
can
be
serious
fi¬
gram
culties
two
only
out
after it
years
started.
What
I replied that the
billions
of
a
dollars
of
ber
years
a
specified
with
and
num¬
higher
standards
prescribed
than
contemplated when the
were
in
original cost estimates
pared.
tion's
the
law
were
pre¬
Congress can't fix the
economy
either fixed costs
Congress
so
to
as
na¬
insure
Federal and 10%
fixed income.
or
wants
the
the
ways
and
to
means
adjust
v
make
for the Interstate Sys¬
37% above the original
estimates, were submitted to Con¬
tem,
,
.
gress.
An analysis of
showed
see
construction
struction
$59.4
under
miles with
(1) Construction costs
address by Gen. Prentiss before
Municipal Forum New York, New
City, Feb. 6, 1959.
million.
way
(3)
local
Cost of
The
estimated
capital
highway
1 In
but
instance
the
figure
for
project miles; i.e., miles
grading, paving
or
clearing,
necessarily
completed
usable
highway.
every
means
either
not
of
.
all
directions.
people
of the to¬
lor
a
Many of
over-expanded too
that
con¬
in
63%
a
in¬
in
the
covers
increased
Continued
cost
on
of
real
page
34
i'-mv
market
materialize.
that didn't
CORPORATION
soon
seem
to
These
people didn't
fine print that said, "it
approximately 21 months to
accomplish the preliminary work
read
Swiss bank
our
Head Office: BASLE,
SWITZERLAND
the
takes
before construction
can
start
on
a
Bienne
•
LaChaux-de-Fonds
Neuchatel
St. Gall
•
•
to
construction
in
excess
of
$5.8
billion annually ."
A
to
as
Geneva
•
Schaffhouse
erated
Interstate
increase
an
in
System;
However, despite the feeling of
many that the program was lag¬
ging, Federal Highway Adminis¬
trator Bertram D. Tallamy reports
that it is ahead of schedule. As of
hence,
authorization
for
Dec.
31, two and one-half
/VIVN
Lausanne
•
•
Zurich
r.
'
110,000,000 S. Fes.
;
187Z
Statement of
RESERVES
4J8,
•"
-
.
Condition, December 31,1958
ASSETS
Swiss Francs
Cash in hand and at Bankers
957,841,707
Due from other Banks
551,601,105
Bills Receivable
Tallamy's Encouraging Report
the ABC
CAPITAL
180,000,000 S. Fes.
683,445,259
Short Advances.
19,533,988
...
Advances to Customers, etc
1,356,469,196
Government and other Securities....
539,651,426
Syndicates
800,000
Other Assets.
9,212,587
Bank Premises and other Property...
Total S. Fes.
years
LIABILITIES
Capital
11,250,000
4^29,805,268
Swiss Francs
a
180,000,000
■.
Reserves.
104,000,000
Sight Deposits.
Time
Bank Stocks
2,537,726,530
Deposits.....................
Fixed
890,646,668
Deposits ("Obligations")
280,168,500
Bills
17,145,104
11,431,029
Payable
Acceptances....
Other Liabilities.
analysis of the 1958 year-end
outstanding banks is completed and
A copy
will be
free
sent
of
reports
now
Total S. Fes.
available.
Guarantees S. Fes.
47129,805,268
147,932,696
upon request.
NEW
actively in bank shares and are prepared to
YORK
lo
*
W. 49th St., New York 20, N. Y.
LONDON
small blocks at net prices.
AGENCY
15 Nassau Street, New York 5, N. Y..
49th Street Office,
or
30,485,683
."
Main Office,
sell in large
78,201,754
Profit
a group
OFFICES
99, Gresham Street, E.C.2, and 11c, Regent Street, S.W.I
AFFILIATES
Canada: Swiss Corporation for Canadian Investments Ltd.
360 St. James Street West, Montreal 1
Blyth & Co., Inc.
Morocco:
Banque Franco-Suisse
pour
le Maroc
73, Avenue du General d'Amade, Casablanca
New York
Boston
Pasadena
San Francisco
Philadelphia
•
Detroit
•
•
Minneapolis
•
•
San Diego
•
Chicago
Pittsburgh
•
•
Spokane
San
Jose
•
Los Angeles
Cleveland
•
Oakland
•
•
Fresno
•
Seattle
Louisville
•
Eureka
•
•
Portland
•
•
Sacramento
REPRESENTATIVE OFFICES
Indianapolis
•
Palo Alto
•
Oxnard
France: 31, Avenue de
l'Opera, Paris Ier.
Argentina: 616, Avenida Rogue Saenz Pena, Buenos Aires
Brazil:
j
law
equal
(4) Miscellaneous items such as
utility adjustments, lighting and
signing added 3%.
(5) The remaining 2% probably
systems for the years 1956-1959:
of
of
given
grade separations, inter¬
changes," other ; structures
and
frontage roads. This added 15%.
crease
a
"miles"
be
resulted
commerce
tures by all levels of government
Federal-aid and other
Requirement
needs
sideration with needs of interstate
expendi¬
•
or
12%
5% to the construction needed.
Con¬
8,394.4
on
1,178 bridges.
Share
buy
up
since 1954.
for I. ABC
construction $489 million.
roads under construction
new
in
Roads, in balance with the accel¬
We deal
increase
Nationwide traffic forecast
Roads
(authorized April, 1958):
for 1975 up 15%
over
previous
Construction completed on 2,688.8
forecast, resulting in more traffic
miles with 80 bridges.
Cost of lanes and other facilities, adding
billion in,4957, $2.55 bil¬
1958, and $2,375 billion in
1959, and immediately expected to
State money.
hereafter referred
*An
of
these esti¬
the
(2)
lion in
.
York
Our
that
due to the following factors:
was
/
..
,
up
mates
Cost of construction
F finds
up
In January of 1958 the new cost
miles with
Cost of construc¬
Emergency
stepping
stepping up the Federal
authorization from $825 million to
recognition of the need
keep construction of the 50-50
Federal-State
financed
Primary,
Secondary and Urban Systems,
(2)
program
financing."
it
to
carried out; Congress will have to
find
that
major Interstate project"; or the
30, 1956 when the 1956 Fed¬
fine print that said, "our contractor
eral-Aid
Highway Act
became
forces with their present equip¬
law.
The highlights of this Act
ment have a capability of accom¬
were:
plishing $5.8 billion of net contract
(1) Authorizations over a 13- construction annually" (in 1955
the work load was $3.6 billion);
year period of $25 billion to pro¬
vide for
the
construction
of
a
or
the fine print that said, "the
41,000-mile limited access system new construction equipment in¬
of Interstate and National Defense cluding trucks required for $1.0
Highways to be financed with 90% billion of new construction applies
specified mileage
roads within
bridges.
$2.1 billion.
engineering and the
of way acquisition,
constant
estimates
Construction
tion $3.6 billion. Construction un¬
der way on 16,754 miles with 4,-002
the
of the program.
60,112
bridges.
of
right
June
of
worth
10,217
of
reflect
on
on
expenditures, which include
cost
cost
$2,075
study and consideration by Con¬
gress in 1955-1956, culminating on
provides for the construction not
roads, but of
Roads
the
headlines
this program that received careful
to him was, "The program
Public
Many people within and without
highway industry read the
tal, however, or roughly $50 bil¬
lion. represented the needs of the
Federal-Aid Systems and it was
answer is simple and I gave him
what the income tax people would
call
a
"short form report." My
answer
Half
Inter¬
new
with
construc¬
the
but
Federal Aid.
a
miles i
of
Construction
Program:
completed
miles
of the other
is the answer?"
for
comprehensive study of the "Ben¬
efits and Beneficiaries" of high¬
way construction.
included the needs
city, county and state
systems which are financed with¬
Systems,
Louis W. Prentiss
nancial diffi¬
call
Cost
,
ABC
on
limited
not
way
basis and
cash
a
Byrd
placing
(6) The directive to the Bureau
of
cor¬
This study, of course, was
to
the Federal-Aid
billion.
Highway Pro¬
the
by the Bureau of Public Roads in
January, 1958.
lighting, unsafe signing and
congested intersections, the star¬
tling price tag attached to the
package was approximately $101
planned
; was
on
of
1958—$6,207 billion—up 10.7%.
1959—$7,138 billion—up 15%.
These
3,571 miles with
3,758 bridges.
Cost of construc¬
tion $2.3 billion.
state cost estimate to be submitted
poor
care¬
inclusion
program
(5) The
recting within ten years deficien¬
cies such as inadequate road ca¬
pacities, dangerous grades, narrow
and weak bridges, blind curves,
under¬
stand
The
and; expenditure
always be in balance.
completely upsetting the carefully
planned authorization schedule.
Clay Committee,
with the Bureau
expressed in terms of
to
to pay for the Fed¬
of the program at the
estimated
annual
Departments, completed the
comprehensive study of the high¬
way needs of our country in 1954,
said,
the
sufficient
eral
way
club back
m e
the
The
over
3,159
million.
$945
under
1957—$5.605 billion—up 12.5%.
accomplish¬
System: Construction
completed on
2,087 bridges.
tion
1956—$4,997 billion
implementing
following
reported:
are
Interstate
existing highway
estimated
a
total
in
cooperation
of
Public Roads and the State High¬
to his home he
the
$9.00
type taxes for support of this
program and placing this revenue
Highlights of 1956 Act
When
of
high¬
new
pay-as-you-go amendment
Dallas' leading newspapers. As we
drove from
'
levying of
the
ments
accelera¬
.. •:
would not
editor-in-chief emeritus of
If
:
after passage of the
Act,
user
Highway System—caused by higher costs
During o~r recent National Con¬
vention, I had dinner with the
an¬
1959
taxes amounting to ap¬
user
these
year
^
of
The
this
..
industry's spokesman reviews various solutional proposals and
analyzes their requirements.
,
an
and
any one year to amount available in Highway
Trust Fund which is based in part on Federal gasoline tax. The
"
of
and
1958
motorist
per
year over a
16-year period
and earmarking the revenue from
expenditures in
rj
in
for
1. /j; ;. "i
proximately
experienced than that estimated in 1956 and by restriction of
as
...
..
(3)
way
in history." In stating this,
Maj. Gen. Prentiss quickly admits that, even with this 15%
increase over 1958, highway contractors still would be oper¬
ating well below their capacity. The road-building officer warns
Congressional action is necessary to avert interruption in 1961
*
million
continue
to
tion..-.
will make 1959
year
$125
$25 million with the expressed
intent
Executive Vice-President, American Road Builders' Ass'n
$6 billion road construction planned this
increase
of
By LOUIS W. PRENTISS, MAJOR GENERAL, U. S. A.*
,
of
nual
Dangerous Road Conditions Ahead
In the National Highway Program
5
(973)
Praga Pio X, No. 118, Sala 1101, Rio de Janeiro
1-
6
(The Commercial and Financial Chronicle
(974)
making. I do not think, however, has occurred and the potential
regarding that it is fair to expect the Fed inflation that lies in prospect for
particularly that
proposed
and
actual
Federal to be" able to foresee and to fore- tomorrow
spending and in the budget.
stall every such event, nor would which will ensue if Congress fails
It is my belief that from here .that be the end of it.
The only to repair the finances of this coun¬
on we will find that the governmeans available to the Fed
are try promptly.
ment security market no longer ones which would involve an exThe Historical Results in the
will
reflect
largely
only " the pansion in the credit base of the
Budget From 1789 to Date
changes that take place in the country. "To put it another way,
One of my purposes in refresh¬
supply and demand for money, as the
means
by which the Fed
these are influenced by changes would meet such crises would be ing your memory on the historical
goes
Change Looming in
By AUBREY G. LANSTON*
Observing that the casual consideration accorded the
"sound¬
currency" affects government securities' attrac¬
of the Federal Budget
Mr. Lanston's analysis
holds that Congress must turn its back on Federal deficiteering
as a way of life or else be held responsible for "some uncom¬
fortable developments" in the security market. Unless Congress
alters its action, he warns: this will particularly affect long
terms; Treasury financing would be no easier in time of busi¬
ness downturn;
basic short-term rates would be more vulner¬
able to wide fluctuation; long term rates will go up faster
than they will decline; and commercial banking system would
become the only way to finance Federal deficits.
the
government security
and
*
market.
home and abroad.
equivalent" of- printing
the
na-
policies—the government security market will become
increasingly responsive to the
changing status of the Treasury s
dealer details the changed relationship
to
conditions
business
in
tional Credit
throughout the gamut of maturities, government bond
tiveness
Congress
-
President, Aubrey G. Lanston & Co., New York City
of the
in
on
—
Government Securities Market
ness
Thursday, February 26, 1959
.
.
security market and what
eminent
The Decided
.
cur-
lieu of issuing debt obli-
rency in
gallons,
is
rt
too,: that
belief,
my
the
attractiveness of Treasury securi-
of
results
government's fiscal
our
policies is ; to remind you that
these paralleled, if they did not
prepare the way for, the growth
of
small
few
a
colonies
into
a
become so re- great nation within an amazingly
This hasn't been the case' for dneed, as far as the public and short period of time. Let me il¬
lustrate for you the kind of fiscal
many years, despite the piling of jts savings
institutions; are conresults
t h a t.) accompanied ' our
annual deficit upon annual deficit, cerned, that we may find that a
(largely,; if not entirely,
because no one" questioned \ the/slackening in general ^credit- de- growth
free of price inflation) into a na¬
credit of this
government, and, mands, such as might result from
eredit—at
*
.
,
^ ties.;,;already
has
,
.
insofar
the credit
of the gov-
measured
as
ernment
only by*its
is
tapering off. or. downturn in
business activity, would
some
overall
tion
of
unequaled
productive
agricultural
into
industrial; and
nation
capacity,
whose
people long
improve the outlook for govern,in
currency,
no
questions*?.will./ment.' security, prices: by-little, if have enjoyed the highest living
standards? known to. mankind
arise. However, there does come a
at all, and the resulting, larger
time when the purchasing power deficit
financing- needs
of
the while simultaneously,; preserving
for each individual a maximum of
It seemed to me that I perhaps of years—and may have from here of the
currency in which the:govTreasury would be no easier to
freedom and of opportunity. h: - i f
might be more helpful if I painted on.
ernment's obligations will be. re- Handle than they are now.
The
with a fairly broad brush rather
(4) It then should be worth deemed, or for which they may be ~ demand for Treasury securities
Appended is : a: summary table
to
than with a narrow one.
that shows the number of years
I have while
explore
the
major exchanged
in the marketplace, of intermediate apd longer term
five things on
in which the Treasury enjoyed a
changes that have occurred in the
permeates
their market Values, might increase some, as other deownership of the publicly '- held Naturally, such an intrusion of-mauds
my mind:
slackened
and
the Fed surplus of receipts and the num¬
debt—for two periods, from the
ber in which it incurred a deficit,
depreciating currency Values into aimed to make credit easier and
(1)The Fedend of the war to the middle of
e r a 1
the market values: of they< obU-*m0re available;* but the increase beginning ,with the year 1789-to
budget
1957 and from that time through
and the gov¬
gations of the government is like- >in the deficit financing .needs of date, inclusive. I would like; to
ernment
the
secu-
more
and
I
as
it,
developments
be
will
related
to
outlook
the
forthe'budget.
(2)
to
Aubrey G.
I'd like
Lanston
refresh
your memory on
of
sults
the
year
(on
a
(5) Finally, the relatively heavy
financing schedule that confronts
the Treasury for the remainder of
this calendar year; it is a heavy
one
even
though the underlying
security
market
fiscal
tance.
in the govern¬
ment
this
of
projected basis); this will
-
point up why the shape of the
budget for fiscal 1960 and there¬
after has become of great impor¬
more
see
end
semi
rity market;
liability to redeem its obligations
the historical
government's
re¬
fiscal
is. that
the budget figures will work out
(in actuality) fairly close to the
assumption
ones
policies
—at
years,
year
over a long number of
specifically from 1789 to
date; I think you will find this
made
submitted
by the President
least, insofar as the calendar
1959 is concerned.
I
Federal
Government
We
into
a
Budget
and
Security
the
Market
to have been
entering
different and danger¬
seem
new,
be likely
would
to
the .Treasury
the
expand much faster:' Commercial
banks and, possibly, nohfinanciai
that
those
of
case
neaiv
are
offer
But, it also is rather in- corporations might be willing "to
escapable that when a government go", somewhat longer than one
(in this case, the Congress) con- '-year—then—but, .altogether, the
vinces the people that it regards question; would .become
one
of
the soundness of the currency as whether the volume .of -Treasury
a
casual
consideration, some I of financing with a maturity of one
invest in its
the attractions to
the
throughout
another,
'
(he
same.
X.
^
•
respect to this rec¬
■'
From 1789 through 1860—a span
of
72
48
record
24
Actually) the
than, you
better
much
is
en¬
of deficit and
years
of surplus.
years
might gain from such overall fig¬
ures. ; Successive
Treasury sur¬
.
achieved
were
of eight years,
<
the Treasury
years—-
countered
pluses
:
of
during this period
The largest num¬
history.
our
spans
over
and of nine years,
and of 12 years
Federal Reserve's Posture
-
,
less might not enlarge just
year or
entire
maturities.
range of
se-
lost, in one degree of
are
with
ord.
.
curities
additional obser¬
some
you
vations
dated.
In such circumstances, thereber of successive deficit years was
fpre, .there would be .every reafour.
This happened twice, dur¬
demands for the govern- son to expect that the Federal Reing the years 1812 through 1815
obligations tend to become serve System would not return to
Initially,
this
public ' reaction
may be somewhat obscured because
ment's
concentrated
The
rather interesting.
(3)
I plan to go over the
changes that have occurred in the
total public debt and in the pub-
have
I
to be greater in the case of
longer-dated securities, than: in
ly
a
short-term
in
a
secu-
might
that
posture
encourage
circumstances, if much in. the way of lower interest
the government's needs to finance - rates; the combined objectives of
are large and repetitious—as
has the > Federal; - Reserve
and
the
rities.
such
In
inclusive—the
in
again
1840
through
The latter period,
is •'sometimes) re¬
the Debt Repudiation
understand,
.
"Treasury-mightbe
1812—and
of
years
inclusive.
1843
I
War
the
ferred to
as
to oppose
tic's holdings of this debt since the ous kind of government finance.
much, if any measurable lowering Depression. There were two other
If this proves to. be correct, old
to the* Civil War
close of World War II; this may be
that the Treasury is obliged to of money rates in order that the periods -. prior
when the Treasury encountered
helpful in understanding why, for yardsticks for judging the values confine its financings largely to public and its savings institutions
a
number of years, budget deficits
less
of an
impact on the
had
structure
of
interest
rates
than
of government securities
out
changing
may
*An
I think
that
address
by Mr. Lanston before
the New Jersey Savings & Loan League,
Trenton, N. J., Feb. 16, 1959.
through¬
climates
have to be revised.
they have had in the last couple
but
a
it
business
be
can
what
goes
might be encouraged to absorb a
portion~r of 'ah ^enlarging
securities that will mature within
short time.
a
We
also
apt to ^larger
are
deficit. ;:.
find that the costs to the Treasury
demonstrated
close interaction has slowly,
persistently
tween
been and sterns likely to continue
to be the case—we eventually find
developed
be¬
in the gov-
on
and the returns that
available'
-:s
fCV
Now, deficits are n<k something
on short-term
Treasury securities-new Hor our government:*' We've
in the marketplace, will fluctuate; bad*-a lot -of ' them, particularly
are
three successive deficit years.
took
of these
Ope
place in 1847, 1848,
and 1849—The Mexican War—and
the
.other*? in
the
1858
years
-
The latter followed
the depression of 1857: )
through 1860.
in consonance with the rise
Civil
War4) years,4861
throughout the past 30 years. Yet, '•*:: The
through 1865) were marked by
we seem to have learned to live
deficits.'')'"'
*
quirements than with- anything, with them. During the early 1930's
else and long-term interest rates; some
people who were conservImmediately ' after ■* the
Civil
more
and fall of
Treasury financing re-
.
1959
vvill increase faster than, they
EDITION
decline.
Security Dealers
wilh- ative— perhaps ultraconservative
V
;
Of course, my analysis may be
information for
»,.
•
a
mailing list—for
a
you
get all this
by Congress to turn its back
business,
department heads
correct
address, telephone number and date of
establishment.
»*.
name
primary
or
secondary offerings. Names
sales, research and many
of managers of trading,
other departments.
descriptive
with your letterhead for important
obligation. Now published by
the
security market.
cash
•
New York
14, N.Y.
A860-1411
bv
needs
the) government
however,
put its finances in shape and for a
period of 28 years the Treasury
had an unblemished record,1 one
War
II
debt
was
reached
:
;
,
the
Trea<?nrv *
term
decisive
more
an
interest
it is not
money
find, in turn, that
to raise attrition
Such
wise
may
so
only—and I use the wo.rd "only"
with some hesitation — a modest
or
prospects
would
or
raise
problems
and
events
to
Federal
the
economy
problems
as
and
might
be classified as
psychological.
For
if the Federal Reserve
or
that
with
sometimes
of
a
speed
which
such
unfold
—
the
first crisis could be stalled in the
From
1900
was
in
ured
20
it also is understandthat s°me should' ask—'"Why
of all times, this emphasis on
balancing the budget? Some productive capacity lies idle, we have
an- undesirably high level of un¬
employment and consumer prices
h»ve leveled off. What inflation
would you-have us fight?"
years ago,
The
answer
is
—
the
<
brought
on
defi¬
:the
psycho-
»
[
1916, .the
through
not outstanding, meas¬
terms
of
of
years
sur¬
There
3.
of these,
two
were
followed
One
the
of
Panic
too.
1907
and the other surrounded the out¬
break of World War I.
observing,
of
was
-
1393
pluses.
The Treasury achieved 9
years of surplus and encountered
8
years
of deficit. The largest
number of successive deficits was
Treasury
it
of
(1894 through 1899).
record
most half as much
as
>■»*,.
•
"
inflation, considering
that the dollar is still worth al-
the capital- able
in general, for now,
example,
System is able to act with
equal
trouble-
for
whole—practical
that
the
amount
like-
events
some
for
System,
businessmen
thereafter.
so
and credit markets
a
3%%.
easy
day
a
In all events, considering that
we have lived through borrowings
vastly
greater
than
anyone
The
of
rate
.
Panic
The
another period of successive
cits
which
lasted
through
that the Treasury will meet with
the highest peacetime deficit in its
thought we could, that we have
lived with the resulting debt and
additional borrowings,, too, with
recently—the latter involving the
offer of a one-year security with
..
Spanish-American War—six suc¬
out cessive years of deficits altogether
sportd—if one is so inclined: "Who
said we're at peace?" ~
-
We
might awaken to find
rejections of a
Treasury new issue offering than
the mild ones of last August and
far
and, when it is > pointed
interest
rates.
short
in
creases
years.".
in
history, it's not unnatural to re-
emotional
345 Hudson Street
World
result in sharp, overnight in-
may
some
STANDARD & POOR'S CORPORATION
a
us.
some
brochure, sample pages actual size and price without
like
ernment
life may
Resefve
SEND THIS ADVERTISEMENT
money
War,"
sailor
lead to some uncomfortable developments in the gov-:
Federal deficiteering as-a way
on
Treasury
of syndicate manager to contact in connec¬
tion with
a
Any untoward enlargementsHn
of
partners, officers,
on 9000
American and 900 Canadian listings of Stock and
Bond Dealers. Lists over 20,000 individuals.
names
•the Exchange memberships and type of securities
handled.
•..
government
February,.1946 —— it stood at
$279.8 billion. That didn't break
us. We've had a number of deficits since then. They didn't break
contact list?
the firm name, character of
clear-cut
determina-
than
tion
of
can
^drunken
proclaimed
did not
matters,
•
the public debt surplus after another even
wrong. Before I get through, you would
hit $50 billion- and the through the so-called Secondary
may decide that it is. But, if I am
country would be ..broke. ^ That Postwar Recession. This began in
on
the right track then anything didn't happen.
The peak of the 1873 and lasted for almost six
less
Just Off The Press
Where else
the
if
Responsibility in Deficiteering y stop .spending
OF NORTH AMERICA
An Exclusive!!
financial
in
--that
;
these
17
over
JM: is worth
that taking
years as a whole/ the
accumulated a surplus
however,
$100 million.
Nineteen
through
seventeen
-
1919, of course, were deficit years.
But, again, right after that war
the government set its affairs in
flowed
pluses
for
the
These
were
debt
successive
Eleven
order.
years
surpluses,
used
—
to
rather
logical reaction to the inflation of
all the yesterdays in which this
you
as
know,
public
substantially — and
reduce
Continued
iiih
sur¬
into the Treasury
1920 through 1930,
the
on
vdne
24
—M——
Volume
189
Number
5824
.
.
The Commercial and Financial Chronicle
.
(975)
the
Gimbel—Th ? Merchant
By
A,.f
DR.
■
•
' v_V
■.
.
freei enterprise
our
consumer is
analysis
it
is
king.
his
rising buying
margins.
and
the
In
N.
and
Ira
T
Cobleigh
,
a. famous
J.,
(hear
a1ro4,r!(^
ri0(^
Dowcommon has
,
wlm
v!'.
-ne-
tu
t
u1 re mi
f f°re Cof
^1Ils' ^i e
+
-
■
i
four-big
mono-
stores
located
department
J
w? ]3'
«trrh+
c
^
Saks
and Milwau-'
"u !i
^een addeo
ou^tots. vThere s
Fifth Avenue with
its sleek
store
main
opposite
the.
^o
years,
a
for
Rockefeller
a
long enough
"
maximum
pe-
effi-
and full projected earning
It takes time to establish
secure a steady retail following, • correct inefficiencies in
iay0ut, operation, deliveries, disPlay. / °r r accounting;
and
frequently stores have been located
in areas where a rising popula-
tion
trend
relied
was
is
a
current
substantially
merchandising
'
*■
Capitalization
of
organiza¬
Gimbel
years.
7,
power
••
■
,
.
is
as
inflated market value
sighted selection of store sites in
an
*rently.
,.
There
dynamically growing communicoast
with
gorgeous
apparel, nes <1^ downtown down trend in
luxury and specialty items. While
\
'
,y
its dividend to $2 or more,
no
reason
to regard GI
there
,
has thus been ..shrewd ,and far-
NEW
C.
probably earn no
Gimbel, on a per share
Federated
in
1955,
and
1956
each
of
the
years
1957,
For
investors, the Gimbel policy
distributing around 50% in cash
of
dividends
has
d i
d
v
i d
e n
resulted
increases
Finally
there
is
the
department
ness
on
is
March 1st.
This
announcem
/
N. Y.
Security Dealers
To Hear Dr. McFarland
in
five
Dr.
since
1954
sultant
Kenneth
to
McFarland,
General
This
>>. '
is
years).
New York
This steady rise in stock¬
income, made possible by
holder
smooth
one
a
ascent
of the
livelier
in earning power,
things now bringing
market
following
at
the
Astoria
to
Viewing merchandise shares as
whole, 1958 total retail business
volume held up
33rd
annual
on
building
nual
(fiscal
a
^
cult
in
7;: • >.;y 7v
Wall
Street
always likes to' find a com¬
parison on the basis of which a
ent is neither an
for
1958.
In
earnings
the
Saks
Fifth
Avenue
line
of
perior
and
modish
apparel and resort
deluxe
su¬
accessories,
wear.
We don't know what Gimbel tells
risen
from
Oreg. — James M.
Lynch has joined the staff of E.
Form Noble, Caloudes
SANTA BARBARA, Calif.—
Noble, Caloudes & Co. has been
formed with offices at 922
Laguna
Street
to
business.
engage
Officers
we
do know the
mes¬
offer to sell
nor a
«,*
solicitation of an offer to buy any of these Bonds.
Prospectus.
/Important in the expansion
sales
net
and
conversion
of
;
Illinois Bell
Telephone Company
$5.1
million
(1954) to approximately
$7.$ million last year.
same
First Mortgage 4Vs% Bonds, Series F
:
of
Doted
.March
to
1959
Due March 1,
100f
profits has been the suburban
store
of
program
The day
recent
store
reach
attract
and
all
of
to
its
payable March 1 and September 1 in Chicago
or
in New York City
to
tra¬
Millions, both
of the well heeled and
moderately
Interest
huge
a
continue
can
ditional customers.
moved
years.
has passed when
downtown
those
more
circumstanced
have
Price 101% and Accrued Interest
the
suburbs, and they
prefer to shop there.
It's more
convenient,
parking
is
easier,
merchandise
is frequently better
displayed, and the suburban
stores, being newer, are usually
better designed and far more at¬
tractive places in which to peer
or >to
purchase.
Also in
some
areas, there's an important escape
from city sales taxes.
IvFrom
the
management
side
there have been powerful reasons
Copies of the Prospectus may be obtained in any State from only
such of the undersigned as may legally offer these Bonds in
r
compliance with the securities laws of such State,
"
store
expansion
cally
the
rived
cited
from
outlets;
profits
(both
Practi¬
program.
entire
(1^54/58),
gain
above
business
in
in
sales
and
for,, several
downtown
for
Gimbel
and
IllAT H &
new
■..'■J-:.
its
com¬
a
same
in
ads
that
goods downtown sell them
suburbs; the
of
7
KIDDER, PEABODY & CO.
branches
has,
LEHMAN BROTHERS
hicorporaled
MERRILL LYNCH, PIERCE, FENNER & SMITH
'
sell
in
'
STONE &
SALOMON BROS. & HVTZLEIt
fncorp0raied
WEBSTER SECURITIES CORPORATION
WHITE, WELD & CO.
the
same economies froni
wholesale central buying apply to
suburban stores; and the opera¬
tion
'
down
.
The
been
GOLDMAN, SACHS &• CO.
stores
■
trend.
have
THE FIRST BOSTON
HARRIMAN RIPLEY & CO.
years
.
CO., INC.
de¬
was
the
from
petitors)
MORGAN STANLEY & CO.
•
.
for Gimbel's suburban and branch
quite
gen-
February 26, 1959.
;
PORTLAND,
■
in
a
are
securities
Jean
'H.
Caloudes, President; T. Preston
Webster, Vice-President; and
sage it is conveying to its share¬
John R. Noble, Secretary-Treas¬
holders. Rising retail profits!
urer.
Macy, but
$50,000,000
an¬
period net
same
have
the Waldorf
Joins E. F. Hinkle
Jan.
31) rising steadily from $290 mil¬
lion in 1954 to about $385 million
at
(Special to The Financial Chronicle)
bal¬
ends
the
for the ag¬
gressive and well managed Gim¬
bel Brothers organization, and a
particularly good year for the
The offer is made only by the
impressively
year
of
Friday, April 3rd, 1959.
.
its sales with the
up
total
dinner
Security Dealers Asso¬
ciation to be held
common.
cur-
that
aug¬
huge and quite well
con¬
Cor¬
poration, will be the guest speaker
by two suburban branches,
catering to a more cost-conscious
anced chain has been
Motors
when the regular rate was $1 (as
it had been for the five preceding
mented
middle class clientele.
*
,
V*
Saks-34th
store,
Bau¬
five years in the investment busi¬
Saks
Fifth -Avenue
contributes
around one-quarter of total
sales,
Street
John
of
Co., Maritime
celebrating twenty-
.
it operates on much higher
profit
margins than the other divisions.
—
Investment
Building,
will
basis, for 1958; Gimbel reported
higher per share earnings than
ORLEANS, La.
Baumann, proprietor
mann
of
selling at 93% to yield 4.9%,
1,954,600 ' common
shares
crease
at Gimbel's
•.
than
dividend
Anniversary
For J. C. Baumann
remarkably well,
exceeding 1957 by a slight mar¬ F. Hinkle & Co., Inc., Equitable
gin. Tjhe $4 billion rise in con¬ Building. He was formerly with
and
sumer buying of non-durables was
Walston
&
Co., Inc., and Dean
listed on the N.Y.S.E. and now
pretty much offset by a reduction Witter & Co./ "
selling around 42. The stock had of over $3 billion in durables. Our
a
1958/9 range between 21% and rising
population and per capita
Louis Niver Opens
42. Assuming a 1958 net of $3.75
income, and the general resur¬
a
share, GI is selling a little over gence of our economy suggests
BLOOMFIELD, N. J. — Louis
11 times earnings and yields, on
that • 1959 will
be
an
excellent Niver is conducting a securities
the basis of the $1.80 dividend,
merchandising year with durables business from offices at 11 Donald
Street under the firm name of
4.17%.
(This
compares
with
a
more
widely in demand and the
Niver & Co. Mr. Niver was form¬
composite
Dow-Jones
industrial costly appliance price war a
thing
times/earnings ratio of about 20 of the past.
erly with Oppenheimer & Co.,
Moran & Co. and Investors Plan¬
and a yield 6f 3.4%.) As a matter
All of which indicates a favor¬
'of fact department store shares are
ning Corporation. *
able business climate
now
One of the factors in
rjsing earning
,
and
more
Bros..
Inc.; is not complicated, consisting
$56,408,000 in debt, $9,831,000
par value of 4 V2 % preferred stock
identical
an
Gimbel
■
Silver
In
for
common, the issue which
to mind is Federated De¬
$1.80
a
tions.-
upon
to
For not noted for high price/earnings
number of Gimbel ratios, but when you consider that
store service areas the population Gimbel may earn as much as $4.50
has increased by 20%. in the past a share in 1959,"and perhaps in¬
five
pays
is
a
branches
and
which
of
mil¬
bmki up sales year by year.
Center in New
York, and thirteen
serving the fashionable
the,'opulent from coast to
basis
$100
overpriced.
comparison
a
partment Stores which today sells
54 (12 points
higher) yet
major
al¬
of the largest
five
past
achieve
example, in
uUu?
v -
and
around
or
such
around
below the average rental ratio for
shopping
centers)
is
for
completion .next
in
operation
,
•
'
Nj*.
York
one
the
rental
on
Paramus,
number of them have not been in
...
department
«
cl!!
Roose¬
worth
of
i
Wn
New
the site of
i°n
^e^a<^e.s- ciency
r pa 1
?r tresis t°day is power.
Arhi+iJ^ wr??1?m«,S"
^
a unit>
™
f
at
;branch (at
new
curred
U.
.
t
store
the
branch
Gimbel Broth-
5/'
Calif.;
Since the major enlargement of
store
facilities
has
oc¬
in
the Midwest is
'
Springs,
year.
habitat of this
.
of $60 million on its 1/31/58
balance sheet,. (These would prob¬
outlets
appraisal.) In any event Gimbel
spends less than 1% of net sales
scheduled
favorite
as¬
sets
to
suburban
suburban
in boom times.
the; East
houses and showing net fixed
earn
Field, L. I., is being enlarged;
ready
prosperity
consumer
it starts to
both,
Gimbel
ware¬
Saks Fifth Avenue shop in*
new
and 'a
plateaus
of
:some
Palm
plush
Gimbel
velt
done
has
facilities.
on
a
to
the
lion
us
A
about
be
—
new;
discussion
ably
fa, spend it
that;, keeps
of
constructions. There has been
Gimbel
a
already
listed Gimbel will have, t%is year,
going in reCession, and
certain
on
store;, and- owning 20 of' its stores and
new
year
addition
os/willingness
us
a
real' money.
pi-edit)
and
the disposition
propels
power.
It takes Gimbel about
in the second
(or
money-
by. mortgages
advantages of outright
ownership (which ties up capital
funds) and rental or leaseback
.
to break in
year
part
relative
mer-
„v.
In the final
power—having
the -most
earnings, supple¬
..v ...
;
..
'
.• ••
erally, been done on higher profit arrangements for store
;/
system
sustained
for
retained
considerable
chandising organization with ascending earning
V.;.*
jhln;
comes
financed
of
mented
renowned
cheap
been
new
a
tively
seeking
out
COBLEIGII
A swift appraisal of Gimbel
Brothers, Inc.,
Tr '
the
U.
given- stock may be deemed rela¬
steady and quite substantial
postwar expansion at Gimbel's has
Enterprise Economist
.;,f
3
IRA
more than offset
rising suburban sales curve.
a
The
With Saks Appeal
,
City must be
by
7
■
it
8
The Commercial and
(976>
Financial Chronicle
Dry
New York
Recommendations & Literature
It it understood that the firms mentioned will be
to
send interested parties
pleased
Noel & Co., 52
20 Broad
Inc.—Analysis—Purcell & Co., 50
Also in the same circular is
analysis of Monsanto Chemicals.
Merritt Chapman & Scott—Bulletin—Dreyfus & Company, 50
Broad
to
colleges and universities,
curities
Inc.—Atomic Development Se¬
Co., Inc., 1033 Thirtieth Street, N. W.,
Washington
7, D. C.
!
Bank Stocks—Analysis of 1958 year-end reports—Blyth & Co.,
Inc., 14 Wall Street, New York 5, N. Y.
Bond Market—Review—New York Hanseatic Corporation, 120
Broadway, New York 5, N. Y.
—
Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
able ia current Foreign Letter.
Business Review—Monthly bulletin—Wells Fargo Bank, San
Francisco, Calif.
•
3.;^ ;;
'
Economic Conditions in Japan—Quarterly review—Sumitomo
.
.
Ltd., Kitahama, Higashi-ku, Osaka, Japan.
Japanese Oil Industry—Discussion with particular reference to
Mitsubishi Oil Co., Showa Oil Co. and Maruzen Oil Co.
Co., Ltd., 61 Broadway, New York 6, N. Y.
Japanese Stocks—Current Information
Yamaichi Securities
Nomura Securities
Company of New York, Inc.,
Ill Broadway, New York 7,
New York.
New World of Plastics—Review—Bank of
'i
Nova Scotia, Toron-
to, Canada.
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 20-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
Over-the-Counter Index—Folder showing an
4, N. Y.
Securities
Outlook
—
Review—G. II.
Walker
&
ance
were
to
Broad¬
Nunn
East Michigan Street,
York
New
bulletin are data on
5, N. Y. Also in the same
Bristol Myers.
Inc.—Memorandum—Cruttenden, Podesta &
Co., 209 South La Salle Street, Chicago 4, 111.
Standard Gilsonite Company — Analysis—Carothers & Com¬
pany, Inc., Mercantile Bank Building, Dallas 1, Tex.
Stewart Warner Corp.—Memorandum—Green, Ellis & Ander¬
son, 61 Broadway, New York 6, N. Y.
f
Sorg Paper Company—Reprint of article—Straus, Blosser
McDowell, 111 Broadway, New York 6, N. Y.
Texize Chemicals—Memorandum—Kidder, iPeabody & Co., 17
Wall Street, New York 5, N. Y.
Title Guarantee Company—Study—Robert H. Huff & Co., 210
West Seventh Street, Los Angeles 14, Calif.
Also available
Richmond Homes,
issues
sence
a
bulletin
Company—Analysis—Emanuel, Deetjen
N. Y.
Travelers Insurance—Analysis—Boenning & Co., 1529 Walnut
Street, Philadelphia 2, Pa. Also available are reviews of
Stocks.
621 South
Carbide
Air Express International
Corp.—Brochure—Troster, Singer &
Co., 74 Trinity Place, New York 6, N. Y.
Iloist & Derrick Company — Analysis—Harold E.
Wood
Company, First National Bank Building, St. Paul 1,
the
are
■
More than 150 persons
a
of the South.
Brooklyn Union Gas Company
—
Analysis—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
Butler Brothers
—
Memorandum
—
Walston &
Co., Inc., 120
Broadway, New York 5, N. Y.
City, by the employees
of Reynolds & Co.,. stock brokers
and investment bankers.
-are
funds
with
in
turn
an
existing
the
to
fill
to
effort
in
be
or
a
con-
solidator of international
cargo with a network
of 278 offices and
agents throughout the world.
corporate
has
been
tions
with
74
Trinity Place, New York 6, N. Y.
HAnover 2-2400
to
new
of
mass
their
made
breakfast followed
at Our Lady of
of
up
families
10
and
a.m.
Victory R. C.
and
the
gave
only
with
face
of
holders
last
a
while.
But
at
asked.
This
some
this
1041/4
quoted
of
in
a
situation,
30
securities
of
where
off
the
year,
to
funds,
the
loathe
prices
bottoms
are
basis
organizations
such as
trusts
and
net
drop
in
New
York
and
Boston Stock Ex¬
the changes.
Available
must
either
turn
Bank & Quotation
would
Feb.
1938
actually
calendar years
Record running consecutively
to
Jan.
cover
1957
inclusive. /Which
quotations for the full
1938 through 1956 inclusive.
D
,
Write
or
Phone
—
1
REctor 2-9570
insur¬
companies, find themselves
rather trying situation.
They
a
points
of
invest,
to
the
,
apple has become affiliated with
Atherton - &
Co., 50
issue is being Schirmer,
bid and 104%s Congress Street, members of the
indicates
from
and
i
BOSTON, Mass.—Joseph Wine-
,
today
marketing
the
this
even
money
pension
(Special to The Financial Chronicle)
issue
an
auspicious opportunities.
considerably
late
new
market something of a "chill" for
market
issue
with
anaemic
reaching
sell
ance
Teletype NY 1-376; 377; 378
Good Barometer
balance
the
members
rollover.
stage. True, the roster of prospects
is growing, but a cautious attitude
still appears to rule potential bor¬
rowers who seem to be hoping for
In
Members New York Security Dealers Association
new
occasional issue of sizable propor¬
more
Troster, Singer & Co.
of the
that
considerable period now,
the
largest forwarder, clearance broker and
said
early April, except
for its weekly bill
For
knowl¬
Treasury will not
market, at least until
the
period
their
the
that
late March
The
Committee,
the first such affair spon¬
friends.
investors
to
edge
Express International Corp.
was
with
operating
make
factors
needs. Among them is the
Air
this
Traders point readily to the im¬ Church, Pine and William Streets.
Principal speakers at the break¬
provement that has been under¬
way
in the fixed-term security fast were: Rev. William Wood,
Pressure
of investment funds market and are quick to cite as S. J., director of Jesuit foreign
seeking employment continues to an illustration the behavior of missions,
and
the Hon. Frank
make itself felt in the seasoned Southern
Bell
Telephone
Co.'s Composto, New York State Sena¬
corporate bond market. The effect 4%%
debentures
brought
out tor representihg the 13 district of
is
Brooklyn.
William
lacking
in
the
spectacular early in December.
CaunitZj of
which attends current buying in
Priced
for public offering
at Reynolds, was master of cere¬
monies.
the equity market, but bond yields
101.307
for
a
yield of around
have been cut back a bit in top4.55% to 4.60% at that time, the
rated obligations.
With Schirmer, Atherton
bonds dragged for a considerable
market
Off the Press — A Brochure On:
Breakfast
The
Several
financial institutions only—
Club,
New York
of being able to get a sored by employees of a major
prospects as these brokerage house. In the group
brought to the public offering were 130 of Reynolds' employees,
of
A
persistently
For
attended
communion breakfast held Feb.
21 at the Downtown Athletic
hope
review's of Clinton Engines, Cudahy Packing and Sears, Roe¬
buck.
Company—Report—Thomson & McKinnon, 11 Wall
New York 5, N. Y. Also available is a report on
General Tire & Rubber Corp. and a survey of common stocks
'
Communion Breakfast
*
such funds crave.
Homsey & Company, 31 Milk
Also in the same circular are brief
clue
Reynolds & Co,
Employees Hold
stage. Meantime, money remains
idle which is not what holders of
Atlas Powder—Data—du Pont,
Street,
bankers
100,000 shares of Western
Casualty and Surety Co. due out
Thursday.
/
share
analyses of May fair Super Markets, Inc. and North
Blaw Knox
Light Co., to its
with
William Ward, Chairman
Canadian Oils Ltd.
Corporation—Analysis—Mitchell, Hutchins &
Power &
with
existing market and shop around
for their needs or sit idly by in
Investing Qorp., 55 Broadway, New York 6, N. Y. Also avail¬
the
for
shares of
Beyond that one only a few
small equity offerings are slated,
Corporation, 30 East 42nd Street,
Appliedt Science Corporation of Princeton—Analysis1—General
Co., 231 South La Salle Street, Chicago 4, 111.
prospect
common
Tuesday.
011
—
.■/,
ab¬
to bid for the "standby" operation
Corporation—Annual Report—Secretary,
Union Carbide
major
207,852
of
shareholders,
Analysis—Hill Richards & Co.,
Spring Street, Los Angeles 14, Calif.
Limited
their
*
Pacific
Co., 120 Broadway, New York 5,
Gold Stocks and Uranium
Co., 1 Wall
for
conspicuous
The
ing
Townsend Investment
&
>not
week takes the form of an offer¬
Nationwide Corp.
on
has
rather than their preponder¬
ance.
.
is
picture
changed so far as the flow of new
offerings into the market is con¬
cerned. Again next week, the cal¬
endar is extremely thin with debt
Co., 52 Wall Street,
American
Bethlehem Steel
yield of 4.32% to the
a
overall
The
Milwaukee 2, Wis.
Philip Morris—Data—Herbert E. Stern &
Stern, 30 Broad Street, New York 4, N. Y.
Street, Boston 9, Mass.
by the SEC, probably today,
indicated at a price of 101
return
.
Broadway, New York 5, N. Y.
Bush Shoe Company—Report—Milwaukee Company, 207
120
Union
New York 17, N. Y.
Vanadium Corporation of America—Analysis—Dean Witter &
Co., 45 Montgomery Street, San Francisco 6, Calif.
1
Wisconsin Bankshares Corp.—Memorandum—Lamson Bros. &
Co., 141 West Jackson Boulevard, Chicago 4, 111.
are
to
interest
two years ago, carried
a
41/4% coupon and a yield of
4.17%.
;
; jv-,New Issues Still Light
* /
Corporation; 120 Broadway, New York 5, N. Y.
William II. Gumpel's Recommendations—List of stocks—Herz-
able
4}4%
a
company,
Tube Investments,
Minn.;.
offered
group
for
buyer. Previous financing by this
Street, New York 5, N. Y.
Synthetic Fibres—Discussion—National Securities & Research
feld &
;third
a
101.83
with the
bid of 100.0199.
Plans for reofl'ering upon clear¬
York—Analysis—Halle &
Company—Bulletin—Laird, Bissell & Meeds,
New York Trust
Burnham View
Bank
while
pay
runners-
bonds,
rate.
Street, New York 4, N. Y.
Redpath, 52 Wall Street, New York 5, N. Y.
National Cash Register—Bulletin—Reynolds & Co., 120
way, New York 5, N. Y.
100.28. The
the
same coupon, on a
Stieglitz, 52 Wall Street, New York 5, N. Y.
John Morrell & Company—Analysis—Auchincloss, Parker &
radiation instrument industry,
on
and discusses Salem Brosius,
sought
up
awarded the issue
which made
group
a
the top bid of
Oil Industries
Morgan Guaranty Trust Co. of New
groups.
to
as
Broadway, New York 4, N; Y.
grants
three
The company
an
Plywood Co., Daitch
general
from
Wall Street, New York 5, N. Y.
Corporation—Annual Report—Household
Street, New York 5, N. Y.
Kerr McGee
Trinity Place, New York 6, N. Y.—15c per copy; $1.00 per
year. Also in the same issue are articles on Peninsular Metal
Products Corporation, Wood Newspaper Machinery Corp.,
Saxton Paper Co., Teleprompter, Textile Outlook, Industrial
Crystal Dairies, Inc.
45—Commenting on effects of AEC
Ltd.—Bulletin—Osier, Hammond &
Finance Corporation, Prudential Plaza, Chicago 1, 111.
Howe Sound Company—Analysis—Blair & Co. Incorporated,
Age of Expectancy—On developments in aeronautics—In March
issue of The "American Investor"—American Investor, 86
position of
investment picture
found reflection
in bidding for
Illinois Bell Telephone Co.'s $50
million of 35-year, first mortgage
bonds which brought out tenders
Finance
Household
Atomic Letter No.
the
Nanton, Ltd., Box 924, Winnipeg 1, Canada.
Emerson Electric Manufacturing Co.—Analysis—Van Alstyne,
the following literature:
to
4.25
Reflecting the Change
5, N. Y.
Dominion Bridge Company
around
to
The recent changed
120 Broadway,
Daystrom, Inc.—Report—Harris, Upham & Co.,
level
4.30%.
Broad
Dealer-Broker Investment
Thursday, February 26, 1959
.
.
yield
Corporation—Analysis—Hayden, Stone & Co., 25
Street, New York 4, N. Y. Also available is an analysis
of Calumet & Hecla, Inc.
Celotcx Corporation—Analysis—Schweickart & Co., 29 Broad¬
way, New York 6, N. Y.
Canada
.
Edwin L.
Beck, c/o Chronicle, 25 Park PL, N. Y. 7
Volume
IBS
Number 5824
.
.
The Commercial and Financial Chronicle
.
(977)
construction
big job of educating
part of the public that never be¬
fore had thought of stocks. Gov¬
growth
By FATERSON BOND*
&
mon
industry.
The
re¬
grinding to a halt.
analysts found
some bright spots.
The food in¬
dustry had held up well and had
ernment
was
Stock
An Anachronism?
Manager, Orvis Brothers
better to
cession
Is the Stock Market
houses
and
Co., Plainfield, N. J.
market
prospects.
were
growth
Former banker turned stock broker examines the
phenomenon
and
events
Aiding
abetting
is,
the
of
one
financial
wonders
resurgence in
of
out
this
century. I receive calls from
bankers
fre¬
quently
ask¬
ing about how.
the
market
and when
is
was,
It
in
of
that
this
has
Jfarerson Bond
term
cer¬
investing
public. It has given rise to quite a
stories. The simplest one is
that the only people who have
made
any
real money
in this
market are
and
those
Another is
in
the
who
can't
the
ana¬
on
one
latter
part of
the story
analysts found that stocks
on
a
ratio of price times
annual
depression,
return.
market
analysts
Later
relied
improved,
price times
earnings ratio. When these
began to be exceeded, the
analysts turned to a price times
on
a
ratios
flow
ratio.
And
they
now
times
value. Certainly the bull market
of 1958-9 is a real phenomenon.
they
say
sell
at
so
many
discuss
the
1958
it
the stage. Money was tight
months
summer
stock
during
market
started
to
of retail
slip
in
peak
the
This
some
real prob¬
fall of 1957 and this
created
in
lems
the
of
course
of
in turn
your
was
a
problem
borrowers. Nevertheless,
money was kept tight in the early
fall months. By the end of the
year it became fairly obvious that
business itself was slipping. We
started
were
II.
War
the
this
At
the
ease
the
on
since
cession
sharpest re¬
of World
end
point
moves
supply
money
to
were
taken. The first result was to im¬
the government bond mar¬
prove
ket. This looked to be such a lead
cinch that many otherwise
smart people were encour¬
aged to go out on a limb and
load up on government bonds on
margin and some of them — more
courageous than wise — were on
very thin
margin indeed. For a
pipe
very
in
while
this
was
the
a
early
part
of
successful
very
1958
opera¬
tion.
The
story
was
with the recession
week,
be
for
money
«An
stitute
committed
a
address
Elizabeth
of
attractive,
deepening each
would
government
the
surely
very
long time
by
Chapter
to
easy
to
come.
Mr. Bond before
of the American
Banking,
Elizabeth,
easy
near
money
recession
problem.
lurking in the back¬
The
solution
no
lengthen
maturities
but
had
gov¬
just
we
Market
That
Would
Not
dropped
N.
that
gov¬
gubrious
idend
accompaniment
cuts
and
of
alysts
growth
and
geoning
cash
of
nurtured
flow
shock.
a
$12
the
billion
troubles
deficit.
of
maturities here
raise
The
was
billion
$12
trap
was
in
Added
This
to
stock
market
of
attracted
first
The
too
generally
on the big rise that made
history in 1958.
very
then
started
Looking back the recession
self
it¬
made
out of stocks.
an¬
government
in
the
the
In¬
J.
Reserve,
not
in
been
Nor has
nor
are
the
of
the
fi¬
members
cold
of
the
last
have
better
and
big
begun
nightmares.
remains
Out
to
have
spree
occasional
.
j
Be
Done?
of
the
is
being
to
be
done
done
and
to
that the Federal Reserve
fects
on
now
the
But
scared
they
back
the
last
15
years
since
what
that
see
fright came a lot of
savings.
Since v personal income
was
still
at a high level these
savings were substantial in the
aggregate.
Some of this money
in a good year would have gone
into big tag consumer items like
particular piece of history
repeat itself?
It is not
realistic, in my opinion, to expect
does
the
not
discount
fective
people
wanted some¬
on.
And over
rate
its
as
tool—because
general
can
what had been
be
for
this
develop? Preventing substitutions
in existing loans might be used
temporarily but this seems un¬
fair to stockholders.
:cent
per
One hundred
margin
requirement
would have little effect: Restraint
on
voluntary basis
a
situation
be
may
collateral
is not feasible in
on
present
competitive
banks.
There
among
scrutiny by the su¬
agencies of "purpose
more
pervisory
loans"
this
might
be
ef¬
although it would be an¬
noying and there would be a time
lag involved.
and
fective
What
we
would
all
derly.
Just
as
there developed
demand for stocks
ures
the
business
on
spring
stocks
may
results
are
as
released in
1958, a supply of
develop as brighter
being reported in the
spring of 1959. And if this hap¬
pens the stock market will again
appear to be an anachronism.
It
is
opinion that this is
happen.
my
will
rate
Valley Group
Bankers
will
the
is
alone
some¬
the
hold
Investment
of
their annual
a
NEW
Treves & Co. Admit
On
February
Kantor
will
nership
in
1175
26th
Treves
Broadway,
&
New
members k>f the New York
increased from the 2^2%
rate.
Exchange.
an offer to sell or a solicitation of an offer to 'buy these securities.
offering is made only by the related Prospectus.
ISSUES
Government of Jamaica
plainer
stocks
flat
literate
They
But
who
for
respect¬
could
this
blame
at¬
OFFERING
PRICE 95'/2% AND ACCRUED INTEREST
the
Professionals,
semi-
and
amateurs
the
and
didn't
short
com¬
Copies of the Prospectus
may
be obtained in
and others as
writers named in the Prospectus
yet
break
the
pronged
open.
bottom
between
base
for
what
51/2% Serial External Loan Bonds
a
hap¬
Due
pened later.
Two
Groups That Went
What
State only from such of the several under¬
lawfully offer these securities in such State.
$2,500,000
Febru¬
and April that proved to be
strong
may
stock
wide
In fact it gave ground very grad¬
ually
indeed.
It
made
a
two
very
any
interest
crowded month
more
month
market
5%% Sinking Fund External Loan Bonds due March 1, 1974
short?
make
bigger and
after
In
selling stocks
did.
to
$10,000,000
makes that kind
ever
professionals
bined
self
no
statement.
mosphere
them
are
lot.
ing analyst
a
of
language that means
going to go down
that
whole
some
happened
then
Wrong
in
The Serial Bonds are being offered in eight series, of
substantially equal amounts, maturing semi-annually.
the
spring of 1958 that provided the
solid fuel for the missile-like rise
of
the
latter
part of 1958 and
1959 to date? Two
groups of wise
guys—mostly—had trapped them¬
selves with fine logic but
very
unhappy results for themselves.
September 1, 1960-March 1, 1964
AVERAGE OFFERING PRICE 99.10% AND ACCRUED INTEREST
One
group was those government
bond traders on a shoe
string. The
other
ket
group
the
was
stock
mar¬
shorts.
Business
in
completed
the
an
meantime
internal
down that got costs under
control
and
net
income
Copies of the Prospectus
and others only if they
may
may
be obtained in
any Stale from the undersigned
lawfully offer these securities in suck State.
had
shake¬
Kuhn, Loeb & Co.
tighter
stopped
sliding so fast. The easy money
policy had proved effective in
supplying needed money for the
February 26, 1959
D.
part¬
Company,
York
may
figures. Instead of the
happy bulletins on unusual
opportunities
Marvin
be admitted to
instances
some
America
fall meet¬
ing October 22nd.
ef¬
Right
of
Association
downtown
reaped
erstwhile pet
what
Ohio Val. I. B. A. Group
To Hold Fall Heeling
bur¬
into
a
of
it
reason
is
gloomy fig¬
were
This advertisement, is not.
The
prefer
that supply and demand will
op¬
erate
to
keep the markets or¬
use
what out of line with the bill rate
and
to
halt speculative excesses that
may
only ef¬
of
business.
discount
the
further
done
CINCINNATI, Ohio—The Ohio
that
What
be
can
aftermath
speculative
What Will
still had large profits and weren't
to pay the taxes on them.
What
red
usual
ary
has
happy about all this.
People
about
on
showing sharp earnings de¬
and
in¬
and
time.
some
disregard
have
must
harvest. They saw
of
attention
obtainable
yield factor.
itself
than one day at a time and
especially those of us who lived
psychology, through cut¬
ting down tax receipts and in¬
creasing benefit payments to the
unemployed, it scared the people
of
the
country.
But
it didn't
them
big
ex¬
excitement
more
flation
scare
the
was
this
community.
Not that a
strong
stock
market
is
not
a
pleasant thing. To a stock broker,
of course, it is literally food and
drink, but those of us who live
f
to
seem
the
nancial
Circular Sales-Income Flow
Buyers
banks
big
Adequate
been
from growth stocks for
at
trading, and
trading itself
Federal
not
of
made
more
event.
any
have
loans
the
responsible
in
view
and
terest.
the
and
yields
discount rate might
effective curb on spec¬
an
ulation
it
for
citing and
put
bad
what
volume
se¬
lectively
is
short
money.
already soft, plummeted as mar¬
gin traders were liquidated and
the
in
Other
they1
could
they sold,
but each time they sold
they had
money to
invest and since the
market
kept on going up they
turned around and bought again.
Treasuries,
sprung.
came
numbers.
so
of
new
the
investors.
saw stock profits
time when business
a
still
was
volume
many
a
from
investors
necessity to
too
flight
high
a
not
Our
by
went
The
very
But
div¬
omissions.
postwar crop of stock
who had been weaned
young
In
be
investors
hardly believe
receipts badly below
The necessity to spend
being forced on us. Sud¬
denly the truth dawned.
In
a
peace time year there would be
were
Meanwhile, .the stock market
was
slipping gradually to the lu¬
a
to
larger
smaller
develop at
The
the
The
increasing
small
the
us.
still
thing to fall
Collapse
issues
started
automobiles.
and
weren't thinking about this at the
state
they
spent most of their time selecting
especially vulnerable situations.
demand plus a stern tight money
policy
for
The
loan demand.
bank
the
buy
mid-July while business was still
holding very well. Last August and
September represented
and
—
late
the
1957.
of
all
was just
primary long
was
When stocks started
among
Later
quite a contribution to
the market rise.
Besides adding
During^ to
the deficit which revived in¬
is
time.
even
tight
see
been found to
creases
kept
world
maturity
forgotten. Literally,
the
still
ground
mal last half of 1957 which helped
to set
had
gan
in
came
of
tremendous
was
ernment
is necessary to go back to the dis¬
and
Gov¬
that it
the
necessity
Inflation
a
market
interlude
now
was
combat
yet
time.
one
—
could
we
term
to
at
psychiatrists
Market
Traces Present
To
of
business
as
conditions
net
cash
situation
ernment's
the
and
few
sold
S.
trend—inflation and the gov¬
all
goes,
U.
an
col¬
indictment
an
money
problem
bankers
Back
world,
on
best
financial
interlude
an
Bro-
great
the
the
all know
we
wide¬
the
the
for
is
in
easy
tainly shared this incredulity with
lysts.
recession
present
us
the
think
we
This incred-
stock
the
perhaps
all
it last?"
read.
basis
all
us
still with
holdings of long end governments.
going u p?"
long can
ikers have
the
some used
this fine opportunity to
pare down
"How
spread.
than
ernment bonds. I know
^What it's still
.
contracting
they offered loans
so
lateral
incredulous
been
faster
attractive
an
ulousness
strong
necessity, were the i large
They had a lot of
around, their demand for
was
buy¬
taking
estimates.
Government bonds,
loans
remind
recession
bankers.
even
they
is
City
money
business
hear, the most
frequent re¬
sponse
of
this
to
was
was
and
rise
ernment tax
Spring of 1958.
The 1958 stock market
was, and
its
1959 follow through
still
■y
along
develop, as brighter results are being reported, in the
Spring of 1959 making the market an anachronism as it was
<
to
Selective
Cold War
may
in the
declines.
dollar and government bonds be¬
defense funds.
Then the Lebanese crisis
specula¬
supply of stocks
if'
on
attractive.
nor,
*
com¬
Funds
bonds were
declining
people just don't like to buy
and
firms
than
on
Mutual
a
long
Electronics
ing
of
importance was
place in the stock market.
for that matter, other measures
V
designed to halt future
tive excesses. The writer wonders whether a
\
»'<•
done
The
in
leading to the current market and its immense
>
had
year
their
back
began to get larger commitments
strength to see if there are any lessons with predictive value.
Mr. Bond doubts high discount rate can curb
speculation
,
trend.
drug
good
a
in
back
were
The
having
fall
stocks?
9
City,
Stock
The Commercial and Financial Chronicle
Thursday, February 26, 1959
.
.
basic industries, the competitive
First, however,.let's review the
discipline of the market place has way in which the principles of
reduced the number of companies consumerism have operated in the
power.
This, in turn, produced a to a mere handful. In the case of automobile industry,
more equitable distribution of nathe automobile industry, in my
Henry Ford developed the au-tional
income.
It seems to me
opinion,^ the five passenger- car (omobile as a basic transportation
genuine collective bargaining is companies left constitute barely unit at the time when consumers
an essential ingredient in achievthe minimum necessary number wanted dependable low-cost cars
ing an effective economic role for for adequate consumer choice and In his hist0ric battle to avoid be-
employer domination and abuse
KOMNEY*
By GEORGE
Corporation
President, American Motors
Auto industrialist maintains
workers.
that competitors of General Motors
them. Mr.
situation be ended by break¬
ing GM into two independent companies and that, at the same
time, labor be subjected to anti-trust curbs. Charging that our
country is confronted with an excess of concentration of indus¬
trial power, the industrialist terms his proposal a complimen¬
tary and not a derogatory indictment of GM. He also recounts
other impressions and conclusions about our economy, the Cold
war, and undue silence on controversial matters*
we
I was convinced
that our company had identified
eome product problems in the au¬
tomobile industry. I was also con¬
vinced that
have
of
in product
of
freedom
in
this
is
I have since
of
the skill which
to
seek
It is one thing
to identify
truth and problems
and quite another to express them
in a way so that others will un¬
It took
communicate
effectively
Nevertheless,
our
to
are
express
economic system,
they must know
can they know
about it unless those engaged
about it. How
more
about
the
as
conviction is that
My personal
in
one
mental
ership should not excuse himself,
for
of inconvenience, bus¬
reasons
iness
personal obliga¬
tion
or
corporate
relationships,
from speaking out publicly
on
vital problems that require wider
public understanding. Unless those
qualified by experience and first¬
hand observation of problems do
speak up, how can the public generally have the necessary facts on
pressures,
,
fnr
_
to
make
intelligent
deci-
sions?
convinced that the
we
.
..
,
.
in
strength
+.
and bosses of
and-nation.
It is
beginning to cost and price our
goods out of world markets and
increase
imports.
An eminent
economist, Sumner Slichter of
Harvard, has recently described
our
The
of
resuits
be
and
workers
among
consumers,
in the hands of consumers.
result of competition, the
a
tration
has
of
any
share their information,
resulted
....
The
of
collective bargain-
the accomplishing
bile
industry for about 20 years.
During that period I have worked
entire
industry in its cooperative activities, and an almost
equal length of tihie in the competitive arena. Prior to entering
the automobile business I had both
to
exposure
the
a
system, is oi the people, for the
people, and by the people."
The development of this unique
been in the automo¬
now
operation
of
reflecting the
economy,
principles
work,
forms
of
choice.
.
the
an
consumer
product.
This
num¬
ber should be sufficient to stimu¬
in
maximum
Motors'
competitive effort
product development, cost re-
and marketing.
In. the
goods field it should
duction
offer customers
Even in the
a
of
How
subsidization and
or
the
benefits
which
the
industrial
an
functions.
I
witnessed
Federal
way
primary means of disciplining our economy and protecting
as
citizen
the
role
in
effort
a
and
economic-
What I have to say is
full recognition of the fact
a
that it represents merely my con¬
clusions and my impressions.
While
i.
,
,
on
political
.
country
our
,
lished
sound
and
*An address
Adcraft
Club,
estab-
was
.
,
spiritual, human,
economic
coxicepts,
by Mr. Romney before the
Detroit,
Mich.,
Jan.
30,
development
their
used
to
ganized
problems.
an
some
superior
deprive
workers
of
our
produced
of which
economic
their
the
dization
enterprise.
student of
our
establish
to
aluminum
case
try, the
ii
1
,
.
four
.
addi¬
companies.
In
of the automobile indus-
President
of
the United
States, about three years ago, directed the
use
of Defense Depart-
ment procurement
sidize
the
to subof one of
powers
continuation
the five remaining passenger
companies.
car
a
com¬
if
competitive
discipline
sumers.
-
by
con¬
in
the
1920s
economic pic-
Furthermore,
could
except
instances, employees
effective
participation in
denied
the
forts °f *he, enterprise. The
ef-
pas-
sage of the labor law^s and organization of effective unions removed
magnitude of GM's contribu¬
to the automobile industry
*
v.*
-
**
Five Alternatives
can we
of at least
five
comnetin0-
oeneiit 01 at least live competing
general respect. Like all com¬
panies, GM has made mistakes.
However, their mistakes are mag¬
because
nified
a
competitive society.
economy
"f^arl'^ompetit.v^2^5
impossibility.
'•
(2) The restraint of competitive
effort to permit the survival of
weaker competitors.
To the ex-
that this practice exists, it
deprives our nation and individual
consumers of the benefits of gen-
tent
uine competitive effort, and may
lose for
us
the struggle for inter-
national leadership.
We cannot
afford competitive slowdowns.
(.3) Government action to sub-
(4)
sive to
consumer
desire and need,
of
government
...
It, too, is "statism".
vision for cost-of-living increases"
and the "annual
tor"
have
third
thousand companies have been
eliminated.
Indeed, in most of
our
improvement fac¬
proved
was
a
departure
post-war
was
a
hiatus
in the tradi-
tional GM policy of industry cooperation
General Motors and the other'
companies
are
started the possibilities of eSnomic development and''consurirensm' that open the door for the
Sweater apphcation of the .prcndi^
of
pies
as
well
as
economic
death.
This
by
specific
mendation.
example
'
and
recom-
economic
freedomip
America.
What need is there then for any
basic change in our national eco¬
nomic
policy
as
it
relates
to
As
in¬
•' '*
dustry?
result
of
competitive
basic industries are
by one, two, or
large companies, and there
a
deaths,
many
dominated
now
three
comneUUon
p
d°Ut>t ab°Ut adequate
j11?6 Peop^e arSue; that we don t
n^ed *° be concerned about plenty
^ competition in the automobile
m.dustry and other major mdusnnt
Tn thP rovi
..
t
trary,
T
I
believe
the
competitive
principle has operated in the au¬
tomobile
.
(5) Provision for economic birth
In the automobile industry, about approach I would like to develop
a
process
through the faqied "escalator pro-;
It leads to "statism".
Some form
It keeps nopoly.
healthy and respon-
in the
ppfinnmin
tional policy.
our
GM's
for
equity
collective bargaining
a
estab¬
efforts to
well-intentioned
formula
enormous
economy.
laS^mitomobile
I am concerned, this approach is
unthinkable as a matter of na-
Through
this process, consumers decide
which companies and which industries shall grow
and
which
GM's
of
the
on
are, only five altei natives, la g
e
ised
the
Through the ability of each
.
j
their contributions and
of the remaining- companies to ™ " ™ J"elr xnt-Lceu, lixe s una
-fQilnr#x
Tn
liaht
icbunii.
exiiiic:
escape economic failure. In light automotive industry has demon-
that successfully meet
so.
gen¬
and
fourth
continue to have the
their preferences and reject com-
companies
industry
erally, deservedly commands great
sidize weak competitors. As far as
consumers
American
to
and
previous statesmanlike poli¬
cies in relationships with dealers; A
to reward
in isolated in
were
The
tions
from
•
regulation. This approach would
scarcely
involve arbitrary government acavoid the conclusion that generally
the superior economic strength of. shall be eliminated.
Elimination, tion to preserve marginal or subemployers was resulting in a mal- or economic death, is and should standard producers or lead to in
distribution
of
national
income, be the penaltv of economic failure dustrial
concentration ; a"d mo_
mo
ture
tional interest.
to be built-in
accept the risk of death, factors from which serious baritself, without seeking' gaining begins.
'*
political intervention? Such interAnother mistake was the sacrivention is already gradually sub- fice of sound merchandising polstituting public subsidy and con- icies in a short-sighted battle in
trol
for
economic
freedom
and
1955 for No. 1 sales position. ^A
Now, the competitive principle
also enables
and practices based on
industry interest and na¬
policies
overall
death
and
panies that fail to do
unor-
benefits
equitable distribution of the
results of the
A
consumer
a
rendered ineffective after
strength
of
economic
However, his
as
large corporations,
complete monopoly position in our
economy.
This
experience
has
brought sharply into focus certain
with
power
industrial
Government's
his
in
consumer.
a
monopoly
apply the antitrust laws to
company that admittedly
had
truths
ii..
tional
first-hand
to
economic
companies are
reauired to provide adeauate competition. During and alter World
War II, the government broke the
monopolistic position ot the Aluminum Company of America by
using indirect government subsi¬
the
the
was
the
political frame¬
possible by the
five
of
so.
be "retained
economy
benefit
least
science
ing to
How
at
tion
ington
to
made
basic
antitrust laws and the labor laws.
economic
also
that
pro¬
individual enterprises are unwill-
similarity of product such
a
ability to
products
determined not to do
can
industry
an
or
obtain special govern¬
help
were
variety of choice.
case
darkest
die
or
petitive
area
The
particular
this,
consequences.
de¬
sell
the
of
aptation to collective bargaining,
With few exceptions, GM followed:
lish
mental
adequacy of this
choice
is
dependent
upon
the
number of enterprises producing
a'
the
pay
If
vigor.
difficult period, we
and
development
of management, including its ad-
impact
we
.
.
to maintain
and
would either live
we
the
not seek
vital functions:
some
offers
The antitrust laws made competi
the Federal Government in Wash¬
and
our
as
was
same
P.
leadership to the solution
public problems in the area of
that free
customers wanted to buy. We did
importantly
.
ap-
unable to do
are
us
most
duce
principle per-
competitive
life
the basis of Our
on
concen¬
now
petitive principle.
T.r
will be limited.
Alfred
of
because
,
American
In
cided
with an excess
of corporate power.
this
our
upon
render other services
or
should
we
governmen't'apTarently^concluded
the opportunities for social prog-
0f
companies should
continuing ex-
depend
economic
our
erism," not "capitalism." Our economic system, like our political
Unless the informed make it their
of
dustry
a
in sufficient quantity
leaders1'on
matters,
era
Sloan's wisdom, GM, working with
reward
and
to produce cars and
with
controversial
the
through lowproduct dependability aloqe.
Largely
it is not realistic
consumer
ing is
indus-
■.
pliances,
from the effectiveness of the com¬
late
(in
ended
I Good Deeds and Mistakes
new
that customers voluntarily pay for.
"laboristic." For-
Paradoxically,
antitrust laws, the expansion of
voluntary cooperation and the division of the fruits of progress
which genuine
-.y;
^
'
automobiles
cost
I think American Motors'
....
.
confronted
concentration
It
principles have not only
provided freedom in enterprise
but have placed ultimate economic
As
risk
should
future
and
owners.
These
power
the
Thus,
guaranteed
istence.
Now, unfortunately, America is
again
distribution
of the
increased productivity
efficiency
or
of
basic
many
five automobile
economy
our economy as
funda¬
principles:
(4)
warrant
jnvoiVed.
economic cjpai beneficiaries
four
in
concessions
economic
;.
tries appears now to be too great other companies, applied its bi¬
.
.
,
rrn,~
requirements for
establishment
of combined, lo
use
political
neak-
of
; •
customer satisfaction
companies
vital means) we have developed an economy of consum-
an
ol
minimum
successful
Unfortunately, there is too much
eelf-imposed silence from business
for the
^Z^y Stknateh/^n
comfort;,■■beauty-, and convenience
economic
The
Fnrd
_
.-"XftTnn
Prv
w
competitors?
.
I have
operation
adequate
an
■
ress
the
of
? r And,
e
23
n%'
the
enabled
that
twMh'the' lasftew t°'expect new companies to be safety, highway development, taXhaveexceeded annmfl pro-r: lorme<l
replace companies elim- ation, world trade policy, factory
ductivUy hnprovemen? This trend tnated; through
the competitive dealer relations, and in many other
cooperative areas.
Probably no
ttSffi SraSS'Pr0CeSScoonerative areas. Prohahlv no
Certainly, none of the remaining company has contributed more to
Competition.
(2) Voluntary cooperation.
(3) Reward related to contribu'
j
owners
Too Much Silence
duty to
1
p
Fnrd
thp
flmnM
tributions
work™
between consumers, workers and
which
i
n c
A
Th
vears
(1)
position of business lead-
a
and
secured
American
through
realization
experience them?
we
jowei.
Expect New Companies
Can?t
concepts from our reli- tunately, it is not that yet. Nor
gious
and
political convictions, is it now capitalistic. It is "conhas aiready provided an unparal- sumeristic."
ielecl degree of opportunity for
individual contributioii and selfCharges Excess Concentration
speak out more fully
economic facts of life
will
it
in
i
p r
effective
number of
mental
themselves intelligently about our
more
.
TT
Union
is.
has
Principles
our
.
,
economic
which derives its fun do-
economy,
it.
Americans
an
Cites Four
several years
us
all, is
,,
that
as
dom.
product ideas, but we finally made
If
continued
wage-price increases and the expansion of union objectives, into
the political area. They are more
dangerous
than existing union
racketeering and corruption, bad
self-realization, than to complete
our establishment of political free¬
com¬
municating ideas.
to
industrialism
opportunity to achieve
George Romney
the
—
derstand.
labor
our
The principal opes maintain
own-
event of the last
70 or 80 years.
It will probably
take much longer to perfect the
economic principles that will per¬
mit every willing American the
after
even
the im¬
of
of
concepts
the terrific union power prin-
are
America's industrial development,
preciate
skill
disciplinary function
the
excessive power o£, competitive
This power, based 011 thed further, are
multiplied by
adequate
vehicle
were
on
sharing of
profit results in the forn? of
prices and higher wages.
the
nmnpritors^
competitors? r.nn wip further jiotpa
Can we (nrfnpr agree
that we do not want to moderate
the
monopoly
beginning stages;
its
in
only
principles of
modern
to
freedom
the
of
application
learned to ap¬
portance
all
lor
country
citizens, yet we still have millions not privileged to vote. Our
truths.
men
unions.
our
new
perfect
by
profits
service and his. historic
political cipally responsible for recent
establishing
product
more
ened
the Republic at the
of
problem
de¬
found
some
Ford
emphasfs
r
c\q
as well.
Internally, our development of
economic freedom is now threat-
"0r*inK?nce<
x-
velopment we
had
ondo
working
been
founding
research
our
industry
deaths. Do we agree that consumer
choice and economic stimulation
lenge; m its most fundamental are dependent upon an adequate
aspect it is an ideological chair minimum number of competent
eaxxy
very
always snould be the likelihood ot
further company failures and
Externally, we face the_challenge: of communism.
It is not
only a military and economic chal-
lenge
through the Selden
ing throttled
Yet as long as the competitive patent, Ford also helped preserve
principle is opiating, there is and
competitive. principle in our
as
result
the
the
in
only
are
disciphne.
a
.
obstacles.
internal
Romney proposes this precarious
Four years ago
r
.
,
\ Now,
at present, America is
confronted with both external and
only because General Motors tolerates
have existed
of
employees as a major obstacle in
our
development of economic
Competition
In the Space Aje
Freedom oi
,
.
(978)
10
industry
and
,
other
in-
,
QUStlies to^ the point where excess concentration exists.
Not only hias General Mot^s
aominatea me maustry ior -ine
Continued on pcigte 26
Volume
189
Number
,%24 \
.'.The Commercial and Financial Chronicle
*
•**
■
(979)
could
Government and
tunity
:
;
of
uank
of New
slowing in the absorption
mortgage
weacner
>
York
New York banker weighs the impact of Government finance
on
the money market and business finance.
Mr; Johnson
observes: (1) Treasury decision to pierce
'i
9V.1.
The banker deplores anti-recessionary
•
money.
.
touch
deeper
with
importance
the
price
of
In
4s
ury
.
..
impetus
t
modest
involved, the
of
1980
to
new
should
further
view
no
doubt
.
flow
influenced
was
proved
returns
vestments
a
continuing
business
business
will
needs
more
feel
for
These
ment
sitions
as
factors
1958
held
progressed.
down
the
seasonal
on
any
acute
of
recovery,
pressures
cash
to
inventory
situation
m
spiraling
boom
conditions.
enlarged market for Treasury
bills. Corporations were in
shape
to
give deficit-financing major
give
costs
In these circumstances
corpora¬
tions will be competing with the
help,-\/'
The
Treasury,
done
the
bulk
its
Treasury
instead
•
-
know, has
as you
of
■-
under
borrowed
helping
<
The
deficit-fi¬
for
of
deficit;
intensifies
money
finance
<
in
-
-budget
sage,
his
:*}
£
deficit will be
-:$12.9
\
President,
as
know,
you
retrenchment in Federal
nancing at short term. The out¬
standing volume of Treasury bills expenditures ,to $77 billion, equal
has been
increased $7.9
revenues
billion to
optimistically pro¬
since
June
30
and
$3.6 billion jected. The achievement of this
more has
been borrowed on cer¬
objective would be a great relief
tificates
maturing
within
the to the money and capital markets,
cash
icit
$13.2
bil-
•ylion.
v
Jonnson
is
to
tighten
raise
the
rates
All
to
pected.
things
.
have
...
.
must.. supply! the
,
money;
.
4 and
the
4
have to give aid if the
may
Federal
ket falters.
f
-
-■'■-The
which
Reserve,
mar¬
last
wisdom
a
reckoning
billion 7was
•7.
grand
scale
where
the
was coming, from. An inin the debt limit to $288
cfease
authorized,
but
not
the offer of tax exemptions or any
•fother
■f
new features to make U. S.
more
attractive
to 7 the
buyer.
/ The party most personally con¬
bonds
,
7
cerned with
—
and alert to
deficit^financing problem
—
was
of
close
have
heard
The
swollen
least
$6
the
'58
cash
billion
fiscal
Still
upwards of $20 billion
became" available
long-term
and
accumulations
painful readjustment to
have
curious
habits,
chasing the butterflies of pleasant
7 Illusion and then awakening to
*'
the facts of life. In May and June,
v
when
appropriations
were
being
passed to put government expen5u,.^„n arnnnri SROhiliinn govditures up around $80 billion, gov-
securities
were
commanding
the highest prices in
three or four years. The market,
ernment
the fact that recovery
recession was .already un¬
blind-to
from
derway,
•
was
An address
counting
on
irWw
the
by Mr. J«hnson before the
National*
Industrial
Conference
(Round Table Discussion on the
Ywk
City.
interest.
Board
Public
equity
issues,
a
and
state
is
we
have
Federal
in
money needs
Government that
from
3V2
to
4%
was
in
ad
Sep¬
tember.
As I mentioned
market
bills
up
for
earlier,
short-term
a
broad
helped
,
by
the
to
rates
are
needed
as
>
He
billion on June 30, moved up to Street.
was
formerly
$13.8 billion in the third quarter. Oscar G. Werner & Co.
in
The Thomas & Betts Co.
savings deposits with
year evidently J averaround
$500
million ; a
banks
last
agecj
month;
increase
the
ancj
for
associations
(Par Value $1 Per Share)
about
size.
same
We
Common Stock
savings
Was
have
had,) through the re¬
cession, a fortified flow of funds
for long-term investments at in¬
terest.
This
flow
main financial
in
has
support to the rise
home.:building;
of
corporate
first
nine
months
for
over
it made pos¬
heavy volume
issues in the
a
bond
residual
some
of
1958.
money
purchases
And
;
left
was
of
govern-
ment bonds.
Favors 4 to
limited
it
rate
law
to
pay
by
can
on
nately the range
one
which
ment
has
4J/4%
is
the
on
a
definite
is
inves:-
Paper paying 4%
1957 has had a favor-;
able market experience. Four
cent is better than the yield
most
most quality stocks.
quality siocks.
pei;
rates
It gives
a
and
good margin
provided
to
over
on
savings
actuarial rates
insurance
and
pen¬
Harriman
adjusted
& Co.
Goldman, Sachs & Co.
the
Ripley & Co.
'
Horn blower & Weeks
Incorporated
Kidder, Peabody & Co.
Merrill
Lynch, Pierce, Fenner & Smith
the
Treasury had an op¬
portunity in January to cover a
modest part Of its deficit at long
term
Dillon, Union Securities
over
sion contracts.
Thus
Eastman
The First Boston Corporation
It is
it is greater
greater.,
currently offered
accounts
Blyth & Co., Inc.
on
than ir}e
indn. the experienced rate of depreciation m the value of the de¬
lar.
Smith, Barney & Co..
bdnds. Fortu¬
of 4 to 414%
appeal.
put out in
announcement constitutes neither un
offer to sell nor a solicitation of nn offer
buy these securities. The. offer is made only by the Prospectus, copies of which
may be obtained from the undersigned only in such States as-the undersigned may
legally offer these securities in compliance with the securities laws of such States.
Range
know, the Treasury
you
This
to
4*4% Interest
Rate
As
Price $17.50 Per Share
the
been
amount—
$750 million—to what it thought
'
February 26, 1959
for¬
*
7
300,000 Shares
in
crease
to
(Special to The Financial Chronicle)
•
The 'in-
in¬
save.
bul¬
advances
saver.
the
PASADENA, Calif.—George R.
corporations, whose
Duffy has become associated with
holdings of U. S. obligations had
Lile
&
Co.,
1001. East
Green
dropped to a postwar low of $13."o-
Savings institutionsenjoyed
an
invigorated
offered
of
are
Nonfinancial
month.
rates
local
With Lile & Co.
Treasury
yields moved
and* beyond 2 and, ZV2°/o;
appeared
interest
tify the will to
wark, providing around $600 mil¬
a
and
suggest that we could
have stimulated
recovery cheaper
with tax reforms than we did with
unbridled Federal spending. As it
fund
main
a
on
fi¬
home
dare
year
pension
,
are
sonable cost
that*
correa-
I
money)
for
new
last
investment at
Insurance
above a normal
needs to bor¬
the realities of the fiscal situation.
*
Markets
is
fact
-
are a
little scarce at the, present juncwe should not forget
that the bull market in stocks af-
to
projects.
bank loan rate
vanced
^ew corporate offerings
prefer
growth,
Treasury bill yields* consistent with full-scale
recovery
has
brought
corresponding
re¬
of the private sector of the econ¬
adjustments in cost of money bor¬
omy. We can only- hope that peo¬
rowed
in
the commercial paper
ple will continue to save and that
and bankers acceptance markets.
Congress will understand if higher
The prime
,.
f°r(ls a rare opportunity for
Porations to raise money at
at
row
during the third /quarter
V when the bond market was under¬
a
the
building,
issue,
in July to 2 ^2% since October.
will need eventually to pierce
for long-term
borrowings
good market for selling bonds,
industrial
initial
on
underwriters, but the tempta¬
The rise
would .much
these
discount rate advances from l3/4%
the stock
or
The business borrower still has
a
Certainly there is reality
this, at least among what we
call
sophisticated individual in-
minimum, reduced
taking
_
to
of
year,
balances,
I do not think that the
which
nance
acquire
they might otherwise have
hang on to them has been
discouraged by Federal Reserve
depend on the spending decisions of the 86th Congress,
ary psychology and the aversion of
people for long-term bond invest-
vestors.
as
may
inflation-.
about
Banks
sorts of securities
4J/4%
around
are
rates.
tion
ury
in
multi-
a
term
market if you wish, are
prepared
to arrest the business
recovery
at this stage. Whether the Treas-
at
the r long
and
independently. We
lot
a
sible flotation
had its cash balances as high
$10.7 billion late in June, near
the
2V2%
up
yields
look
us
the
qry
"as
bill
the
i Treasury Department. The Treas-
7-
opening
markets
growth,
Congress, trusting to
of the Treasury and
) appropriated' on
^money
Let
short
have
f the resourcefulness of the market,
^Without
above
year.
These increased' is¬
naturally have firmed short-
sues
rate
Favorable Financing Climate
lion
-
,
What Congress Did
■
the
to
4V4%
felt to
Congress, the people,
ments.
■
> ;^There are four directly inter7 ested parties in the deficit-financ^ing problem; the Congress, which
.^authorized the spending and bor\ rowing; the Treasury, which must
p raise the money; 7 the market,
L which
September,
availa-
reduce
happened,
v
though perhaps in lesser degree,
;.so far, than might have been ex5
June
the
ular, and to the business recovery
in general.
long
on
is
home-building industry in partic-
to v3%.
market
money
and
these
in
Currently
jbility of credit to other borrowers.
%
rallied
and
yields
billion demand outside the banks,
this
scale
when
bonds, below 3V4% in May
June, approached 4%. At the
1%
of Federal bor¬
on
steadied
demand.;
short end of the market, Treasury
bill yields moved up from below
effect
rowing
October
there
fiscal
several
on
on
bonds, as well as the
damage that could be done to the
S.
and
The
7 natural
market
in
not seeking
long term This
difficulties
limit
touch
of
out
investment
into
scores:-
Market prices had
completely
U.
def¬
severalbillion at
the
prices-in
cize°the T?Lsuvy C
runs
point where yields had
a
solid
The
billion,
the
.
.
gotten
with
ad-
ministrative
the
quarter.
risen to
mes¬
the
,
security
third
the.situa¬
M.up
of
ernment
Presidentsizes
tion
the , dramaticdeclines in gov-
swiftness
As;.: the
,
the
.
proposes
-
caught napping
June: *- hence
.
4tory..
was
■
.
,
The market
in,his-
be¬
plant and equip¬
outlays begin picking up in
important way and wage-
price
an
Treas¬
.
peacetime
and
can
if
,,
est
of
finance
growth in bank loans to business
during the fall and also created
long-term money to corporate
recovery
borrowers or
to
the
mortgage
; '
is not thwarted by Federal needs.
market., And so long as corporate
bond offerings are in reduced volWe; are in the midst of fiscal Federal Reserve to release more;
Ume,^ there should be a continu¬
al 959 which hasvthe distinction of
lending power by reductions in ous heavy flow of funds for the
recording a $9 billion increase in legal cash reserve requirements of
'mortgage market,
i Federal
expenditures and the larg- the banks. .•
:
r
<
'
^"
^'
'
Some mav feel moveH in nriti
/.deficit
in¬
New
York
market.
Anxieties are not unnaturally
felt for the months ahead.
With
come
corporate ca^h
the im¬
by
the
money
po¬
to
higher
available
in
higher levels
activity.
The
aid
much
are
Foreign and miscellaneous
buyers have come forward
to
buy short-dated governments
as yields became attractive.
Prob¬
ably the slowing of the gold out¬
other
further
of
in
or
and
now.
contracting inven¬
tories, and improving profits gave
of
not
rise
programs
ital, outlays,
of
..
blame.
to
corporations re¬
cash
positions,
their
nancing their capital
in
amount
money
.
foresight
1958
that wanted- to avoid inconven¬
ience from another credit
squeeze
like that in 1957.
Slowing of cap¬
non-
inflationary finance.
.rather
have
issues during the first nine
months of the year came from
firms that had not completed fi¬
deficiteering Treasury
a
of
During
plenished
will
it¬
"perma¬
only its
bond
the
v
.
of spending
nse
in
«•
a
capital
lacK
own
finds
on
so-called
ae-
r/-'' menvs might have preferred this,
there is
keeping
nent"
later
of
previously
strained
by
capital
spending. The heavy volume of
y pr±ce rally. Although many holders. anxious to get out of
govern;•
that
short
and
Ifv the Treasury had not come
into, the long-term market, the
buying
power
might otherwise
* have oeen dissipated in a bond
.
self
building,
V
instead of tax reforms, hopes people will save and
Congress
will allow higher
savings-inducing interest rates so
*
cold
as
company
investment
.X
*
business recovery, as business ceases helping to finance the
Federal deficit and competes with the Treasury for borrowed
-
money
retards
year-end
t-.mands.
4^4% legislative
ceiling would depend on the spending decisions of Congress;V
:
(2) Treasury's absence in long-term market could induce a
bond price rally; (3) reduced volume of corporate bond
flota-J
tions could cause heavier flow of
mortgage funds; and (4)
■7?3V'
~k&-> climate is favorable for private
capital financing. Mr. Johnson
b'-pl anticipates acute financial situation, if there is continuing
V
dis-
improved by the lull
was
normal
*
without
in corporate needs for borrowing,
seasonal
By NORRIS O. JOHNSON*
%j^y
absoi*bed
'
Business in the Days Ahead
Vice-President, The First Nano.iai
be
.rupting the mortgage and corporate
bond; markets.
The oppor-
11
Incorporated
Lehman Brothers
1
White, Weld & Co.
with
The Commercial and Financial Chronicle
12
(980)
.
Thursday, February 26, 1959
.
.
\-
;•
System which
Lincoln described as adding "the
fuel
of
interest
to the fire of
Support of Businessmen to
Help Defend Our Economy
Admiral Strauss deals directly with two
hazards:
one,
the need
price stability and, the other, the need for government
to forge new instruments to combat U. S. S.
business
legitimate trade.
slave-economic warfare against
submits
investment banker
demands for
on
program
headed by suggestion for
action for business
torium
seven-point
a
The Patent Office
and
|
The former
of personal
well
is
statement
Ralph
by
in
illustrated
ably has
approximately
that
one
out
w
of
home
made
-
threat
therefore, examine
current conditions, survey the hazards
and
take
a
good look at
fold.
the
to
eco¬
stability
growth.
As
a
thing,
As
sentative °f
'
Ad¬
was
likewise
born
a
Chicago
convention,
I
assure
area
you
^
the nation
by protecting the value ol the dotof
serve
lar and
that Federal
so
beRestored
can
line
on
finances
to apay-as-we-go
bidget.
balanced
a
At the outset I should
that
say
are
and
per-
,
'
.
.
,T
v,
t
.
Unfavorable Growth. Factors
this
At
point, let
us
turn
to
a
Can
have
on our
the
an
unfavorable
growth,
impact
three
quite
months
business lor
experience
and
The
straint
tnc »asis
re-
a
as
articles
seven
Constitution
26
times
Rill
the
in
used
government, appears in
on
the original
have filled about o,600 cargo ships.
We als0 sold abroad one eighth of
o^. harvegt machines and com_
hjnes, one fourth of our construe-
whl be toe basis
"no"
word
times
of
five
and
The
Recently, we witnessed both the
civil aircraft pro- iar chest-thumping preceded the
to mention other five previous plans, none of which
one third of our
friction
items.
—
n°t
hit the mark.
a
it
use
now
stoplight
on those pressure
whose fascination for defi-
groups
spending
cit
constructive
We need to
and
grams
^iovemment
growth and
pro-
unnecessarv
expose
to
us
rlis-
the
easeof hiflatira
1
m,
The propaganda for spending as
proponents
mg
even
often
I
to°
we
spend-
are
llU1f • A steady increase in
spending, and even
private spending, are
essential parts of an overall policy
to build our national strength."
so
111
,
Edmund
that
All
forces
Burke
is
of evil
warned,
for the
once
necessary
to
win
for
is
.
enough good men to do nothing."
If good businessmen sit this issue
out, all business and the entire
country will be the losers because
our
As
abdication
a
task
indifference.
or
force
in
the
battle
aeainst fiscal recklessness and
against
which
wnicn
nn
on
the
tne
Sccrctarv
secretary
Commerce also serves.
is to
study
sonable
ways
price
enhanced
as
rea-
an
es-
sustainable raie
rate
susmmaDie
of
ot
economic
economic
project
attention
on
its conclusions.
We
Department
designed for
national
Chl^^.^LUon S:rc"m^«.e a'„h5
1959.
the ad-
are
reform legislation would
the light of day.
That is the reason the Adminisis insisting that the bills
be considered together. Once they
never see
.
tration
are
sepai-atdjiyttie.chances of 'any
real legislation affecting Xafcor
are
local
walk in and demand
that the employer deal with him.
and then just
Democratic can-
the
didate will depend largely upon
the labor vote. It is understandable that the Senator would not
does want to incur labor's disfavor. But
the
organized
labor
situation
cmells to high heaven as a result
be that the employer
It may
didate, and
employ anybody but he operates a music box, or as they are
better known, a juke box. If the
not
Gf the McClellan
Committee dis-
employer does not deal with
half—he will find him-
instances
self
picketed
timating growth.
p0r instance, the Soviets boast
that the annual rate of growth of
their steel industry is faster than
that
of
our
then
beating
a
lation to follow?
by
.
or
With A. C. Alljn Co.
in
order.
The
(Special to The Financial Chronicle),
A
Piedimonte has become
with A.
ated
has
Committee
McClellan
;
v,
KANSAS CITY, Mo. ^ Daniel
.
is
bomb
a
Daniel A. Piedimonle
associ-
C. Allyn and Com-
incorporated, 101 West 11th
y
practically every tavern
restaurant or soft drink em¬
more
massive industry.
mature,
more
Their actual ca-
or
porium
and
the
in
stances
—
Chicago
populated cen¬
victim of these under¬
In
characters.
world
in
East,
other thickly
ters is the
many
of
connived
with
—
machines
the
operators
some
instances
in¬
the
have
underworld
the
character, posing as a union leader,
to restrict trade.
In other words,
he
ball
plays
and
leader
the
with
the
leader
to restrict the number
agrees
r<
"union"
"union"
of
machines that can be located in a
certain neighborhood.
Anything
a
does
union
Daniel Piedimonle
nowa¬
days is in behalf,
,
Jme
,
„
.
Atlantic
to
the Pacific.
It
is
the
greatest public works project in
history.
By 1972, the Amen-
nponiP wni
Laup inveuteH
faI? pe°ple will llave ^vested $37
.
ann0UnCed bv
the President
a2?n°unfea by tne■ t resident
.
in
^ls Budget Message, the Secrepnmm
linHprtnirini*
CommCT :e is ui'dertekmg
portation, including the appropriate Federal role in the entire field
Its purpose basically
Is ?o
feasible ways to reduce
action
needed
tation
self
-
and
to
in
explore
or
elimi-
recommend
make
supporting,
transpor.
vigorous
Economic growth in the United
States has stemmed in large
111
meas-
steej ~caPacity a^"
millfon
make
deal with him or else.
Kennedy-Ervin Bill, which
a
The
l/eOwouWadd «
is the only labor bill that stands
metric tons to their previous ca- a fair chance of passage at this
pacjty Meanwhilei since 1949 the session, seeks mainly to deal with
United States has already added the union's welfare funds. Organ¬
now
with Jamieson & Company,
First National Soo Line Building,
tnrough I9buwouldl aaa 42; minion
minion tt
S
tons
to
its steel-
million u. c>. ions to its sieei
making facilities up to January,
ig5g
And by the year ig65> when
Projected capacity of the
U.S.S.R. may be estimated to reach
a
totalp£ 9?,~Tt Tn?" -°nS' T
DepartmentscapacityDivisioninestiSteel to be
mates U. S.
the
170,180 million tons
Mikhail Aleksandroyich Suslov,
range of
a
and dvnamic
industry, Chicago,
in., Feb. ii,
ditional
purportedly, of
,
growth is the construction of the pacity, however, looks much less the so-called working man. In Street. Mr. Piedimonte was for¬
great Interstate and Defense High- formidable
tius juke
box racket, the
only merly with B C. Christopher &
Way System.
It is progressing at
ig2g '
.
Russian output
rates
above
the
straight line
1, ' 3
nussian output working man will be the proprie- Co. and prior thereto was manager
tor and maybe a bartender or two of
the trading department for
schedule
was 51'2 million metric tons, our
suituuii..
steel industry s output was equiv- who belongs to the bartenders Barret, Fitch, North & Co., Inc.
Recently one of our engineers
j
t t
56'mlllion metric tons. union.
gave me a graphic example of its si
th
we have added mil_
The teamsters, of course, have
Two With Jamieson
magnitude.
Steel required tor j.
f t
more t
our
te u
operated
on
this basis.
They
bridges, reinforcing and other
ducing capacity than have the never try to sell the truck drivers
(special to the financial chronicle)
needs, he explained, will be equiv- j?ussians
on the merits of unionism.
They
MINNEAPOLIS, Minn.—Jack S.
alent in tonnage to rails for 19
'
,
,
simply visit the
employer and Rice and Richard L. Randall are
railroad tracks crossing from the
The target for tonnage-increases
subsidies
growth"-and then to focus public
years'
Trade
last
by
extension of the Reciprocal
Its charge
to "maintain
stability
nf
ot
sential basis for achieving a high
and
ana
further
in-
jjscai lecKiessness ana in
flation, the President recently appointed a panel of Cabinet members, headed by the Vice-President
and
ana
tunity to share this prospect, now
v
believe
government
more
of
million American woikeis. The though the increments are small.
Middle West has a great oppo1'- Volume is a better foot-rule in es-
nS TnvnV?H e lecently Agreements Act.
«t
invoked
Another Commerce
mnd
most
stated.
subsequently be
is an influential
found that
5™°t 1^0nrp tha^ 4V* starts fj°m a low base figure, the
A® *[25? ®
Tht J?
5f,,clll?b can aPPear high
as
just had its most successful
,
competi-
negative
the
for
He
up.
mittee and the chances
so-called mem¬
bers of a labor union. They don't
belong to any labor union.
They just march up and down
7-year Plan. He assumes that by
5955 the Communist bloc will pro- in front of the employer's premises
and say that he is unfair to or¬
duce more than half the world's
industriai output and by 1970 the ganized labor. If this doesn't' suc¬
u.S.S.R. will surpass the physical ceed in closing out the operator
tion with private industry would
scuttle prosperity, stunt economic
respect
passed and that other re¬
legislation
member of the Senate Labor Coin-
Its union
stationary to set up a paper
We imported all of our coffee
He boasted also that the Soviet
and liatural rubber; most of our annual rate of future industrial
tin' ni.clteb and newsprint and growth will be much faster than
much iron ore, copper, bauxite 0urs. It is an economic axiom that
?nd otheJ materials vital to de- high percentage rates on growth
iense an(* civilian production.
should be considered in relation
Time does not permit a ful1 caV to the base. For when expansion
Founding Fathers quite evidently
had
be
taken
possible for a man with a set of
Uon and mining equipment and volume of U. S. production. Simi-
of the
Riehts
products could
oxport of farm
30 years. That
Department re-
some
portsandCounsel
formy remarks?
Bargeron
him, closures. Are we to spend all this
give him
a
percentage of the'-money and time on the McClellan
served at first hand Mr. Mikoyan's profits from the machine—in some Committee with no remedial legis-
certainly
I
bill
form
Carlisle
bulging at the seams,
are
,
posed. Under the banner of or- nil.
ganizational picketing which the
Senator Kennedy is .generally
Taft-Hartley Act authorizes, it is looked upon as a Presidential can-
from the United States. Last year, carrot and stick of Communism.
the volume ot our exports and lm- \ye read Comrade Khrushchev's
ports was valued at approximately b0ast at the 21st Congress of the
!l0n '? ex" Communist Party. We have ob-
not
for
the
Congress lias
reform legislation.
Congress will then rest on
that
labor
Senator Kennedy insists that his
in politics.
one thing the Taft-Hartley
Act
has
made
possible is
the
Jioodlunism and gangsterism which
the McClellan Committee has ex-
developed by
offensive, others
has
of pasasge.
out
that.
or¬
year
P°rts, $12.o billion in imports.
Exports in 1957 included more hard and soft-sell tactics,
would not pose as an authority on *,ian. half oi our wheat and cotton,
Mr. Khrushchev resorted to the
the Deuartment nor as an oracle a
of our soybeans and a filth crystal ball rather than to reliable
on tim economy.
I was in private "o£ 0111 'al!d output. In fact, total rec0rds in describing his latest
Secretarv
Commerce
as
The
membership
proposed by a few of our friends
*otal world commerce flows to and
go
that it has ever known.
some
Communist
labor
est increase in
brief examination of factors which
like
very little
The idea is to
the relatively mild .Kennedy-;
pass
Rut
sonal well-being.
some
Ervin Bill and then have the word
had the great¬
vantage of this new artery. The who preach the incredible docpotentials oi tiade aie piodigious. trine that it is more blessed to be
Approximately one third ot the ,n debt than solvent.
with active heln to hold the
basis
I
l'arsighted plans to take full ad-
L. Strauss
Lewis
intend to pre.the strength
w
so,
The businessmen of this
to be congratulated on
Seaway.
firmly
we
doing
for
economic growth.
One of them is the St. Lawrence
in
that
setting
would first describe briefly a few
,of the programs of the Department
of commerce designed to
foster
ministration,
which
the
betterment
for
Bill
ministration
movement has
people with continual oppor-
tunities
In
doesn't
union
chance
the
It has
forcing
employer's political philosophy1.
as of this writing, the Ad¬
passed
coflers
the
man's
a
to
But
ganized labor
competitive enterprise
system its head, resist overloading
it with unnecessary burdens and
0U1, economy will grow, supplying
our
view
a
employees to join up?
instances
one
h
c
with
kind
For
bee
°m"
Fo,storing Economic Growth
repre¬
another
us,
possible constructive action.
nomic
and
Let
the
an
meant.
#
and
li i
picket line around
a
business
of
but
the
not
—
seas
up
some
slavery
Cordiner of
the General Electric Co., who said
century after Lincoln's
a
slave
a
aspects
a
shall welcome allies in this cam- every three G.E. employees works
passing, the nation again is in paign of education and action.
today on products that did not
crisis
this time through the
We businessmen usually do what even exist 20 years ago.
intensified cold war of nuclear- needs to be done when we see it
I join with businessmen in sayclearly. The most formidable ob- inS- Keep our government from
armed Com¬
stacle to such resolve is the blind- spending beyond our means, give
munism over¬
Almost
be
in
practice to be
anything but
that. It prob¬
the econ¬
supplied by research and in¬
vention
was
Organized labor is fighting this
to the bitter end. Why should it
possible for a union to throw
to
scream
proved
The forward thrust to
programs
to
labor law, has
alone.
omy
leaders
high heavens lhat it
patent applications were filed at
Patent Office in
December
one-year mora¬
labor
ized
our
would help local
industry. The Secretary appeals to business to acquaint the
public with inflation's tragic consequences.
if such
President's budget, even
is another of
responsibilities of the Depart¬
ment of Commerce. Around 7,000
the
R.'s
By CARLISLE BARGEROX
day.
spending than that allowed in
more
of the News
The Taft-Hartley Act passed in
1948 and which caused the organ-
birth-
Washington in honor of his
reasonable
growth evolving with fiscal solvency and
for future
Ahead
dated May 22, 1849.
Its
model, said to be whittled by his
own hands, was placed on display
at the Smithsonian Institution in
Washington, D. C.
Chairman of the Atomic Energy Commission
Former
Washington
6,469,
of Commerce,
Secretary
S.
U.
From
genius."
Lincoln, himself, invented a de¬
vice for
buoying vessels over
shoals
and
received Patent No.
STRAUSS*
By IION. LEWIS L.
i
,
\
from the Patent
ure
member of the Soviet Presidium,
is rcPorted to ^ve told the Mos-
Continued, on page 22
ized labor
has said that it
The
Administration is in-
sisting that the secondaiy boycott
be outlawed as well as the socalled organizational
would provide
that
a
their desire to belong
lished.
a
CINNCINNATI,
Crisier
formed
&
Co.,
Ohio
Inc.
with offices
—
has
in the
C.
been
R.
Fifth
in
Third Bank Building to engage
a
securfties business. Officers
are
.
picketing. It Richard C. Crisier, President and
certain per- Treasurer; Paul E. Wagner and
centage of members must
before
(Special to The Financial Chronicle)
would
accept this bill. It only scratches
the surface of the wrong-doing in
labor.
Form R. C. Crisier Co.
signify Stanley S. Straus, Vice-Presidents; David G. Gamble,. Secre-
to a union
picket line can be estab-
tary; and Janet M. Huber, Assistant Treasurer.
"Volume
189
Number
5824
.
.
The Commercial and Financial Chronicle
.
Threshold of Danger to West: Will
Britain Grant Credits to U.S.S.R.?
By PAUL EINZIG
ceptance of large orders from the
Government entails con¬
Soviet
siderable
Emzig is fearful, for various
he
provides, that
Mr. Macmillan will come back with a trade
Agreement with
U. S. S. R. entailing granting of credits. The London
reporter
v.
indicates economic and political disadvantages that far
; 1
weigb immediate advantages that
■
range
appearing
"The
the-
Soviet
An article
City page of
Feb.
on
outlook '
trade
not
with Mr. Mac-
millan's
will
the
visit,
Mr. Macmillan to agree
to
tion under which
the
possibility
of financing
credits by British exporters would
exports to the
application
U.S.S.R
guarantee
scheme
Russia.
is
the
with
i d
a
be
o
f
encouraged
of
It
credits.; Ap¬
ever,
that
such
by
the
to
to
the
of
official
be
Mr.
granting of
means
execution
should
of
of
necessitate
machine
tools
costly capital equipment
which would only be suitable for
the production of goods for Rus¬
sian specifications.
If in addition
there
is
also
credit
export
to
hoped, how¬
Macmillan
will
parently. in
resist
recent months
derived
proaches have
credit
risk
then
firms would
wise if
they yielded to the temp¬
expanding their markets
be
very
un¬
tation of
in
Russia.
wanted to
for
credit
fense,
is
So
that
cial
if
Soviet
without
all he
have
would
objections
to
arrangements,
request
causing
would
there
Macmillan
Mr.
decline
be
to
provided
say
offi¬
no
private
of¬
credit
that
the
Soviet Government is able to ob¬
immediate advantages as might be
tentative ap¬
a
British
solu¬
a
foreshadowed
the
orders
installation
and other
negotiations. There
strong temptation for
a
the
following re¬
vised schedule of luncheon meet¬
The Pension
will
hold
pension
one-day
and
March
on
Planning Company
seminar on
profit-sharing plans
a
19th,
1959.
ings to be held until June:
speak
on
of the
Electronics
March
arrangement does
absolute safeguards
provide
Soviet
of the
be
announced
will
an
against losses if the
British
course
de¬
on
Offers Suggestion
Even such
plus to Russia by means of credits
might conceivably arise in the
connection
guarantee
goods
CHICAGO, 111. — The Invest¬
Analysts Society of Chicago
has
Planning
Seminar to Be Held
ment
tion
imports of
Russian
goods. That being so, the question
of financing a British export sur-
19, dealing
for
Anglo-
would
for
a
be obtained.
of
—
the
on
Times'"
with
in
Eng.
bank
payment
arrangement
•
Pension
„
(
.LONDON,
London
that
from the Soviet Government.
^; f,ties to provide credit, and suggestion is tendered for U. K. to
j offer U. S. S. R. all the trade she wants up to the amounts of
can
total of the orders
Under
Chicago Analysts
Revise Meetings
12
"Investor
—
The
March 26
mobile
—
Trane
Forum
on
Com¬
Alfred
the auto¬
outlook, Chairman
Maas.
1
—
Bill
,
April 2
All day field trip of
Sundstrand Machine Tool Co., at
Rockford.
\
—
;
Jonsson,
Haggerty,
8
April 30
—
dent.
J.
P.
P., Drake,
Presi¬
; •'
-•
21
—
National
Gypsum,
Melvin H. Baker, Chairman.
June 4
—
Corn Exchange Bank.
The Fund provides
vestment
American
estates
au¬
thorities*
increasing
medium
a
legal in¬
for
*
tain them.
;
.
i
•«.*
•
This
are
York State.
Milwaukee Bond Club
Meeting and Election.
waukee
•
will hold its
and
election, of
officers; on Feb. ,27th at the:Rfister
Hotel. Marshall A. Loewi,
&
Telephone,
Bond. Club
meeting
of
Loewi
Co., Incorporated, is chairman
London
A
concerning
fsimiliar
Mikoyan
the
occasion
with
is
There
British
the
arrangements
committee.
Washington on
recent visit,
refusal,
in
larity
his
of
definite
nothing
he construed as an offer to sell or as a solicitation ofan offer to buy
herein mentioned. The offering of these shares is made only hy the Prospectus.
would
be
in
the" securities
NEW ISSUE
Twenty Years Ago
to
that
of
20
years
when shortly before the
made
many
efforts
war
to
ago,
150,000 Shares
Ger-
secure
British credits. By that time Ger-
to
up
official
Tariff is twenty, dollars.8;
The situation bears much simi-
by
categorical
attitude
spect of
Recalls
credits.
made
indicate what the
to
now
Einzif
trade
approach,
Mr.
met
Paul
Scanlon, Treasurer.
announcement is not to
in
Dr.
John J.
.
industries
man
in
gaged
re-
heavily
were
preparations
for
James Talcott, Inc.
en-
war,
request for credits. The and their capacity for producing
"Times"
points out that under goods for civilian requirements—
existing arrangements
there
is whether at home or for export—
nothing to prevent the Export had become reduced.
Having to
Credit Guarantees Department choose between
"guns and butter,"
a
Common Stock
$9 Par Value
from
guaranteeing credits gi ven Germany chose the former. But any
British exporters to Soviet substantial credits abroad would
by
Russia.
have
Official
circles
rather
are
of
tivp
include
thp
department
Macmillan
Mr.
accompany
Moscow
to
a
Roird
of
unde'
the
Nazi
the
auspice^
whose
official
export guarantees would
come.
His presence does not in
itself indicate, however, that the
the*
G
+"
cilitated the task of reaimament.
^
N
+i'C
•
penetration
p
.
.
try's
British
resources
purposes and
of
The
the
the
for\the requirements
economic
Soviet
F. Eberstadt & Co.
White, Weld
&
Co.
is used for military
cold
Government
February 25,1959
Since
war.
is
de-
S'P
published
press
Copies of the Prospectus may be obtained from the undersigned only in states in which the undersigned
qualified to act as dealers in securities and in which the Prospectus may legally be distributed.
are
^Southeastern Europe that was
will be made to increase the vol¬
of Anglo-Soviet trade
Price $31,375 per share
f
^
economic
.
subject of credits would be raised,
It only confirms that an attempt
Offset Export Decline Elsewhere
■
p.-iitatpH
History is repeating itself. In
Soviet Russia too, the volume of
consumer goods is limited because
a large proportion of the coun-
ume
A
with guns
representsTmde
•
regime to
g?.rmTfy
non-
committal when sounded in respect
of their intention.
The officials
who
enabled
^pecUvtSalasesTnd^tode
""committed countries,
S tPor0rtdiver0t£ednboth°frr™ &£
Qivciicci DOin XxOm £Ullb
in
nffipifll
rirplps
£120 million
Tho
fifftirp
of
,
c<?n"
mentioned, but
Macmillan, when questioned
Mr.
was
^ economic assistance'
»ieans
inconsiderable '
vevldUhnTfhis wa~rnev":
talk
naoer
no
Even
there
so
is'very
doubt that he
be
can
anxious
to
bring back from Moscow
trade
agreement leading to
a
an
sources
in
are
found ta
underdeveloped
Asia
and
^ouTd
be
Africa.
serve
financial advisor
lo
re-
the
?e^atio.n
in
if
as
by
Atlas Powder Company
countries
Such
increased
The undersigned acted
resources
the
Soviet
fecuL
RussfaSi0Ex^rfS 'o mtnv°rLr°
fe's marketfare exoecled to
Government succeeded in
ing credits from abload' Alteraa'
de-
«fSE
p=,a ei^
in connection with its investment in
Solar Nitrogen Chemicals, Inc.
^SerSon cotlTbTeaSly
va"taSe. as a result
the increase
of°^?atioi^y "me^uresf but^xduring
perience
months
or
so
the
appears
that this is not
so
last
two
to indicate
easy
as
it
was
expected to be. So it would not
be
surprising if Mr. Macmillan
to
were
fort
in
make
a
Moscow
creased market
considerable
to
secure
for British
.
kThe
not
difficulty
much
scope
is
an
efin-
goods.
an
there
is
increase
F. Eberstadt
he to secure new markets, none
them would be prepared to
^asses arising from cancellation of orders by the Soviet Gov-
,
that
for
theabsence of official faC1"ties the Soviet Government
w011"* stand no chance of obtaincredit in Britain. No matter
J10^ anxious British firms would
ernment.
cash
Even
payment
on
on
the
basis
delivery the
of
ac-
February '21, 1959
&
trusts,
and
exports
credit terms would be heavily
outweighed by economic and po¬
litical disadvantages.
by
the Soviet
from
Such
been
guardianships which
administered by banks in New
annual
Bergman, Chairman.
May
has
MILWAUKEE, Wis. —.The Mil¬
Lily-Tulip Cup Corp.,
—
Hauser
president of the ' Bank
Fiduciary „ Fund. Mr. Hauser > is
vice, president of the
Chemical
E.
Pennsalt Chemicals
.•
May 7
W.
Chairman,
President.
Corp., William
H.
elected
,
April 9—Consumers Power Co.,
R. P. Briggs, Executive V. P.
April 23 — Texas Instruments,
E.
Fiduciary Fund
Names Hauser Pres.
D. C. Minard, President.
pany,
J.
Bank
Evalua¬
Industry."-
on
been made-
temptation.
a
13
—
-
private credit that
Soviet
livery. Such a guarantee is only
Feb. 26
Warren B. Hayes,
given, however, if the.. London
Pacific Semiconductors,
bank itself has adequate
Inc., who
security
;,tl. transaction, and recalls similar situation of twenty years ago
;
concerning Hitler's professed desires. Stress is placed on
unwillingness of all but governmental sources of credit facili-
•La"
the
is
ing the grand
the
out-
be derived from such
may
unless
prepared to ar¬
"confirmed credits" cover¬
placed.
reasons
risk,
Government
a
Dr.
(981)
Co.
"
j
iyi
~
The Commercial ar.d Financial Chronicle
14
10%
a
bid
School of Business and Public
of New York
■/
should
"We
take necessary antidecisions are infla¬
tionary the inflationary psychology will spill over from the
misgivings as to whether we will
inflation steps and fears that if mid-year
not business advice
stock in
owes
public duty to pay more
There is
any
the law demands."
han
nothing in the anti-trust laws or
trade practice regulations, which
requires an
industry to drive
iiself out of business. At a time
when
corporate bond
average
an
yields 4.5 percent and many sound
vines
can
be purchased to yield
ii
percent,
an
industry
which
averages only 5.5 percent return
on
total
investment, ought to
consider the question
competition.
If it
withdraw its capital, in¬
and
pause
excessive
of
to
were
vest
sit in the sun
and relax all year and do nothing,
it. would realize as good, if not a
then
it, and
better return.
Pricing Principles
Pricing is
major area of de¬
cision of any firm. In some in¬
dustries, where sellers are few
and large, prices are established
achieve
to
vestment,
leader.
a
target return on in¬
a
by
or
ber of sellers
to
a
recognized price
the num¬
greater, pricing
In others, where
meet
are
follow
or
competition is
There is the extreme
found.
mar¬
ket structure, an industry of many
small sellers, no one of
which has
determine
price. The price seems to be de¬
termined by and in the market.
This is pure competition in the
the
to
power
classical
set
or
It
sense.
charac¬
not
is
teristic of very many segments of
American industry.
Or as some¬
put it, "things
used to be and
one
vitey
In
aren't
never
what
were."
pricing
decisions, the large
competitive indusA-ics tend to take a longer view
than do the many smaller firms
in
Arms
n
less
highly competitive industry.
a
Maintenance of the price structure
in the
industry is more important,
significant impact on
earnings record, than
pursuit of a particular order at a
given time. An industry may be
too competitive for its own good
5
the
a
more
annual
where
the
little
will
fellow
do
anything to
get a certain order.
margins will be eroded.
Profit
The financial
panies
in
weaken.
>r
position of the
the
There
product
com¬
industry, will
will
be
basic research.
The
funds
no
improvement
or
for
unable
t
pay
hhid.
Actually most prices in our
economy
are
administered
and
most
markets
Danger
In
a
of
are
imperfect.
Volume
Operations
growth industry it is only
natural
that
a
smaller
company,
not
watching or perhaps not even
knowing its costs, will be tempted
to go after volume.
cn
Putting orders
the books often makes
feel
nessman
something.
If
he
.
you
year's volume to $8 million
the
orders,
*From
compulsive
build
a
talk
volume,
by
Dr.
to
unfortu¬
Cohen
made
at
the
National
Flexible
Packaging Asso¬
ciation, New Yn-k City, Jan. 20, 1959.
New
:
business
do
not
that
capital
have
yet
business
is
substantial increase in
a
plant and equipment expenditures
in
1959.
,
•
.
Equal business caution seems to
be exercised in rebuilding inven¬
Thus far it Would
tories.
that this
is
siderable
care.
appear
being done with
con¬
By the end of 1958,
liquidation had about
to an
typically
produces inventory accumulation
it is still too early to say how far
this will go and at what rate. :
and
end
In
some
areas
we
seem
"d
the
off
is
y,
•AV'V''-.
.
i.: "
'' ■'
.
vV''.VA''
•
'
'
Dealers :
;
Sterne, Agee & Leach, Montgom¬
no
Ala., was elected Vice-Chair^
Ralph L. Atchison, with the
office in New Orleans, is
District Secretary.
ery,
man.
NASD
port. volume may sink lower.
;•*'
Securities
of
Cohen
comprises
the states of
Alabama, Arkansas, Louisiana,
Mississippi and a part of Tennessee.
Mortimer A. Cohen, Partner,
to be in
tinue to rise, our commercial ex¬
■
A.
National
which
$3
some
there
and
Lewis, Jr. Mortimer
Association
billion in 1958
indication, that
there will be any recovery in this
area in 1959. Indeed/ if prices con¬
were
S.
Committee No. 5: of the
of pricing ourselves out
export market. ; Exports
danger
of
come
while recovery
•
'
:.
■■
■
■
: :
••
i.
o:'
:'
Oncoming Labor Negotiations
Wo
are now
the
of
entering the period
when business sea¬
sonally* is poor.. Normally unem¬
year
Women Shareholders
|
Luncheon Discussions:
ployment reaches its
the
in-
first
.
.
.
in
be fortunate.
as
part of an industry pat¬
tern, to minimize price conflicts."
What
First
Industry
•
A trade association
are
.
the
:
-
plusses
Another factor which makes the
side
provide
operating
profits of a
can
is
on
the list
on
mid-year troubled
is
the
problem of the Federal
Budget.
Currently the $10-$12
billion deficit is a large factor in
:
and
disturbing inflationary envi¬
Congress is
likely to
the
ronment.
for
press
the favorable
spending; much
the brevity of
1957-58 recession must go to
consumer
President
for
spending.
The
will try to hold the line
more
budget.
balanced
a
Should
prevail, the spread of
inflationary anticipations may re¬
the
ratios, of costs and
tard economic growth by discour¬
the strength of consumer expen¬
most
representative
sample
of
ditures.
Except in the hardgoods aging business investment expen¬
companies in that industry. Study
ditures. If costs continue to climb,
area consumption was well main¬
the most
a
detailed
yardsticks
as
planning
points
and
of
its
for
pricing;
difference
study
between
own
the
the
profitable and the least prof¬
companies;
and
operating procedures by
own
best
of
of
profitable group of com¬
A firm can use their fig¬
panies.
ures
analysis
improve
compar¬
companies in the
indus¬
credit
tained.
It
is
for
expected
that
personal income running at
with
a new
peak consumer spending will ex¬
inefficient
businessmen would not be illogical
in
or
credit
a
new
record
other factors.
restrictions
in
may
1959, but
limit the
year-to-year gain to 5%, scarcely
comparable to
the
1955
surge.
As Financial Advisor
F.
nancial
opportunity
will
again
itself about mid-year to
inflation
in
hand
and
re¬
stability for steady and
sustainable economic growth. Per¬
establish
sonally, I doubt, however, that we
will do it.
Just where does that
leave us?
Thus far. the inflation¬
Feb.
on
advisor
Co., it was an¬
24,
as fi-*
Powder*
acted
Atlas
to
Co., in connection with its invest-f
Nitrogen Chemicals,
ment in Solar
The
Inc.
formed
corporation
latter
was1
by Atlas Powder Co. and
Standard Oil Co.,
(Ohio) to make
agricultural and industrial chem-'
icals.
Solar
The
&
Eberstadt
nounced
ammonia
take
are
Construction outlays are expected
F. Eberstadt & Go.
replacement plans.
even
mism. But there
set
women.
deciding to postpone expansion
present
company's Federal, state and local govern¬
ment spending are likely to rise to
pursuit of volume, in ignorance
new peacetime peaks.
of its real costs won't
help it any
The question marks are in con¬
but will only hurt the whole in¬
sumer
durables, business capital
dustry. It's perfectly legal to make outlays, inventories, and exports.
The
Congress
pand further this year and this is
the basis for much of the opti¬
to
figures with those of
the
among
outlook beyond
minuses of the situation?
Advises Comparison With
com-
take
in.
rise
.
fore¬
but
try.
urge
on';a
planning
therefore taken shape as rules or
reflexes
applied
independently,
the
is
of
:
JACKSON, Miss.—Edward S.
Lewis, Jr., Senior Partner, Lewis
& Company, Jackson, Miss., was
elected \ Chairman
of
District
unemployment remaining from
will heavily depend'
spending."
We
any
indication
1955.
Today unemployment is
probably close to 5 million. Con¬
sumers
bought 7.2 million auto¬
mobiles in 1955.
If they buy 6
million in 1959 the industry will
ing its
rared to $6 million last year, there
.
considered as a possible pricing
policy. The mechanisms for avoid¬
ing direct price competition have
busi¬
raise this
but rather his:
year
Elects Officers
the recession
trade—an economic fore¬
beginning of the
NASD District No. 5;
.
.
accomplishing
can
cloudy
—
most
a
clear to
>
.
itable
is
seems
somewhat
but
thereafter.
yearly high
The first of the annual spring
quarter.
Consumer series of luncheon discussions on
buying of durables fall" o'f
Con¬ Current Events and Your Invest*
struction
is
curtailed
by
the ments will be held
industry
was once
Saturday, Feb"The four major ingredients of weather. H: But
then The: Spring
ject of extensive anti-trust prose¬
'/H.
tne Federation of Women
cution, Dr. Simon Whitney, now recovery — inventory changes, pickup usually follows and this Shareholders in American Busi¬
chief economist for the Federal home building, consumer spend¬ year it looks as if it might pro¬
ness, Inc., at the New York Uni¬
Trade Commission, declares in a ing on nondurable goods and serv¬ duce some new economic highs—
versity Club.
ices, and government purchases— in consumer spending, in indus¬
recent book:
A. W. Zelomek, President, In¬
arc expected to bring further ex¬
trial production, in construction
"The
competitive situation in
ternational Statistical Bureau and
pansion
in
1959,
although i not and in retail trade. A momentum
cement, once kept in check by the
author
of
"Changing
America"
necessarily as rapidly as in 1958." seems to have developed which
basing point system, is now con¬
will
speak
on
"How Changing
may carry
up ufttil the time of
trolled only by the self-restraint
Author Stresses Caution
America Affects the Stock Mar-/
the
likely Steel strike at mid¬
of the individual companies. Price
ket."
Other forecasts run in the same year' when the present contract
competition is not important
Alpheus
C.
Beane,
directing
tone.
Some are positively exu¬ runs out. Whether the wage-costProfits are very high today in re¬
of
J.
R.
Williston &
I would
stress caution. price spiral will receive new im¬ partner
lation to net worth, but over a berant.
Beane, the "Beane" formerly;, of
While
GNP, due to the higher petus depends in part upon the
long span of years they have not
outcome of this negotiation.
If a "Merrill, Lynch, Pierce, Fenner &
exceeded the average for all man¬ price level, may well hit an alltime high of $470 to $480 billion, wage
increase
of substance
is Beane," will speak on "The Stock
ufacturing industries.
.In brief,
Market
As I See It"
yj"there
are
important differences granted and then passed on in the
the
cement
industry
is" one in
Wilma
Soss, President of the
form of higher .steel prices, de¬
which sheer self-interest operates between 1955 and 1959. Then there
Federation of Women Sha -eholdf
mand for wage increases in other
to minimize active price competi¬ were raw material and industrial
ers
NBC analyst on "Pocketbook;
Today raw industries are not likely to be re¬
tion under all except
desperate capacity shortages.
News" will be moderator.
•
,
materials are in ample if not ex¬ sisted. There are other important
circumstances.
."
A. Wilfred May, executive
cess supply and prices reflect this.
negotiations
due
in
aluminum,
edi|
In their study of "Pricing in Big
Commercial and Financial.
Industrial capacity, having been meat packing,; railroads, as well tor,
Business," Kaplan, Dirham & LanChronicle
will
be
a
guest
of;,
expanded sharply over the past as steel. The inflationary pressure
ziletti declare:
honor.:.
.;.Kfew years, is now not only ; ade¬ will mount and there will be a
Men are welcome. Proceeds go
"It
goes
without saying that quate but is not yet being utilized renewed squeeze on profit mar¬
to
eliminate
financial
illiteracy
open collusion with rivals is never to full capacity.
Labor was tight gins.
best talent and it will fall be-
ie
to
in
casts have been uniformly opti¬
nately all too often regardless of
mistic but temperate. One leading
price and of prdfit. In a free en¬
investment service declares:
terprise economy driven by the
"The question naturally arises
profit motive, it is frequently
whether the year ahead will wit¬
surprising how many firms book
ness
an
upsurge
comparable to;
profitless business. Why, because
that of 1955, the previous recov¬
they don't really know their costs.
ery year.
In 1955 Gross National
In his stimulating book
"The
Product
rose
almost
10%
over
Affluent Society," Professor John
1954, industrial production rose
Galbraith has $ chapter on "The
12% and corporate net earnings
Concept of the Conventional Wis¬ rose 37%.
dom." In it he says: "No society
"We believe 1959 will surpass
seems ever to have succumbed to
boredom.
Man has developed an 1955 in some respects although it
obvious capacity for surviving the may not be as exuberant."
A leading bank writes:
pompous reiteration of the com¬
"The
outlook
for
continuing,
monplace."
Perhaps it is a pompous reitera¬ gains in business activity in 1959
is generally promising.
The rise
tion of the obvious for me to sug¬
may not be as spectacular as in
gest that there is no law which
the 1955 recovery, but this could
requires a firm to go after volume
which yields no profit, that there prove a blessing since the 11955
superboom produced troublesome
is no law which prevents it from
distortions. By the end of 1959,.
understanding what its costs, and
GNP could easily be running at
those .of competitors, really are,
$475-480 billion, 5% or 6% above
and pricing for profit accordingly.
the present rate."
In commenting on the cement
Another leading bank declares:
which
the sub¬
industry will
for or attract
be
Thus the outlook
midyear
monthly re¬
view: "Economic expansion vigor¬
ous enough
to take up the slack
1959 Forecasts
The
Bank
Reserve
*
we have
.recently
'''A-",:i
emerged. :
Indication
no
.
business setback than
that from which
York said in its latest
cast.
commodity markets. Concludes the
clear to mid-year but somewhat cloudy thereafter
give
surveys
concerned, Federal
be
once
securities markets into the
seems
all
said, "because we have to
spend the rest of our lives there."
Naturally when you invite an
economist to talk to you, you want
ing
expresses
decision on taxes, Justice
Learned Hand once held: "Nobody
ventory policies, out of which can
only come in due course an even
more severe
yet of any vigorous upturn. The
as
.
about the future," Charles Ketter¬
of the outlook to the midyear and beyond. The
anti-trust economic specialist evaluates the pluses and minuses
in the foreseeable future and adopts a cautious prognosis. He
outlook
bu3ines3- recent^
like.
his analysis
In a
an
little reward isn't very
petition and the danger of pursuit of volume for the sake of
volume alone, are reviewed by Dean Cohen prior to presenting
.
after
go
proper
achievement comes with the in-1, lion in 1957 and then
dropped to
creasing acceptance of the notion' about $30 billion in 1958, have
that great activity and effort tor now
apparently bottomed out but
I
considerations, with emphasis on excess com¬
Practical price
f
/Thursday, February 26, 1959
.
.
Administration
College of the City
or
taxes on There is no evidence as yet of any
not to upsurge in consumer purchases of
order if the hard goods. It may indeed come
after
.
Professor of Economics
Bernard M. Baruch
profit
price you have to offer doesn't but it hasn't as yet.
A
r
yield say a 10% net profit.. As
Weakness '£ in <; business
invest¬
growth industries level off, ma¬ ment spending accounted for a
ture and stabilize, price and profit substantial
part of the recent re¬
stability come to be regarded as cession. Business plant and equip¬
increasingly
important.
Their ment outlays which were $37 bil¬
B. COHEN*
By DR. JEROME
net
It's perfectly
sales.
Pricing for Profit in a
Competitive Market
ha
.
(982)
will
Nitrogen
and
acquire!
related petrochem-;
of3
subsidiary*
of Standard Oil Co. (Ohio), and"
will take over Sohio's business in;
ical
facilities
Sohio
at
Chemical
Lima,
Co.,
Ohio,
a
Sohio will con-*
plant and act
sales agent for Solar Nitrogen*
these
products.
tinue to operate the
as
Chemicals,
psychology has been confined
the securities markets.
But if the decisions at mid-year
f!
Inc.
ary
n.j
mainly to
are
it
inflationary, as is likely, then
may
spill
markets,
into commodity
into business in¬
over
and
Earle
Earle
H.
H.
Rodney
Rodney,
-5II
partner'-.in-
Hayden, Stone & Co., passed away
17 following a long illness.
!
Feb.
Volume
189
Number
5824
.
.
The Commercial and Financial
Chronicle
.
(983)
Free
development,
Society's
in
pv.».ic.u
improve
our
postwar
developments
:
*
"
•
-
should
we
educational system.
consider
and
do
to
dawn of
Mindful of such spectacular
nuclear
been
No
as
startling change in the ten
distinguished
and
scholarly
President,
Dr.
Abram L.
Sachar.
One
paragraph
seemed
to
cut
to
meas¬
ure
as
me
text
a
for the few
thoughts I in¬
tended, in all
humility
present
are
be
David
Sarnoff
school
in
which
the
quisition of skills and the devel¬
opment of techniques.
Unyielding
in the face of the
defeatism which
inherent
in
various
phases
nihilism, Brandeis will be
dwelling place of permanent
ues—those few
of
beauty, of
of
the
val¬
unchanging values
righteousness, cif
freedom,
which
sought to attain."
"{For
has
man
ever
half a
century I
have been busy with "the
acqui¬
sition of skills and the
develop¬
ment of new
techniques." It may
seem
paradoxical, therefore, when
I say "Amen!" to Dr.
Sachar's sen¬
timents. But the paradox is more
seeming than real.
Those of
us
science and
technology sometimes
more
clearly than
danger
that
man
may become the
slave, rather than
master, of the tremendous
physical forces he is now unleash¬
ing. Precisely because this is a
the
of
tumultuous
and
rapid
change, we feel the need
steadying certainties. We need
solid
anchors
of
Change—The Keynote
Change
great
has
come
tidal waves,
and
social
realm of sci¬
political
affairs.
The
change, indeed,
closely intertwined.
advances
in
in
us
technology, but also in
and
different types of
are
stimulate
Scientific
social
unrest
formerly "dark"
areas of
our
Sometimes it is not
easy to
distinguish between cause and
globe.
effect.
The
late
philosopher, Alfred
Whitehead, is quoted as
having
1945:
said,
back
in
September,
"The conditions of
our
lives
have been
basically more altered
in the past fifty years than
they
in the previous two thousand
were
might
three
say
thousand."
Unquestionably he
in
the
there
13
has
was right. But
that have passed
years
been
even
mental alteration
century
this
arc
We
of
<
*An
the
York
address
Brandeis
Dr.
need
Whitehead
only project
acceleration
future to foresee
by
funda¬
than in the half
to which
referred.
more
even
Brig.
Gen.
University
into
the
greater and
Sarnoff
Dinner,
City.
New
the
Already it has
enough
and
demonstrations
are
on
view to indicate its coming revo¬
lutionary impact
home.
also
The
brought
on
industry and
period
same
successful
harnessing solar
has
work
in
'
energy.
Together they promise to fulfill
the
old
and
economical
dream
inexhaustible
of
sources
of
power.
Whether the dream will turn into
nightmare of destruction,
a
be
to
boon to
a
of' the
"atomic".
add
the
yet it requires
will,
Or
be¬
or
humanity, remains
As
seen.
effort
fixed
a
office,
moon
to
as
speed
is
projects in
This,
out in
est"
to
the
giant
strides
this domain.
a
the
when
"hydrogen,"
word
"bombs."
we
an
say
not
It is sometimes
as
of
has
made
sides
with
a
ceed
pos¬
the
na¬
of
the
we
the law"
lonial
are
revolting against
controls
and
the
as
the
plished by
technology.
the
of the so-called colored
caught
terial
oped
a
vision of
existence
fierce
and
have
resentments
our
and
only
maneuvering
erode
self-confidence.
burning
that
the
us
advent
The
of
only way—to head off
of
array
I
ma¬
margins
devel¬
remote
fantastic
guidance
of
of
our
energies
Continued
against
of record.
and
missiles, the orbiting of man-made
"moons"—these
are
the consequences of
.
»
.
•.
•
^
>
•
-
computers,
vehicles
but
a
few
of
The Magnavox Company
43A% Cumulative Convertible Preferred Stock
harnessing the
electron.
another area, the electronic
engineer has increasingly become
in these years a team-mate of the
($50 Par Value)
In
physician,
surgeon, biologist
The electron,
chemist.
indeed, is
indispensable part of every
now an
(3)
and
v
Although
it is essentially
nature, automation
merits separate listing because of
its far-reaching potential effects.
electronic
Well
it
in
launched
moves
to
a
during this period,
crescendo under the
impact of new scientific
edge and new tools.
On December
tion
30, 1958, The Magnavox Company called for redemp¬
February 5, 1959 all of its 92,561 outstanding shares of 4^4%
on
Cumulative Convertible Preferred Stock. Such shares
.
Pursuant
to
Standby Agreement, Blyth & Co., Inc. offered during
the period from December 29, 1958 to
February 2,1959 to purchase at a
price above the redemption price any Preferred Stock tendered to it and to
convert
a
such Preferred Stock into Common Stock.
Automation amounts to the abil¬
ity
to control or "discipline" a
large number of devices or func¬
tions within a machine, thereby
enabling rit not only to do man's
chores, but do them with much
Blyth & Co., Inc.
The
sen¬
applications of this prin¬
ciple. Few aspects of industrial
life have been unaffected
by this
convertible
through February 2, 1959 and all holders of shares
conversion privilege.
knowl¬
greater speed and precision.
postwar years have brought
were
into Common Stock
exercised such
February 26,1959
Hot War
But
believe, cannot be done
92,561 Shares
television, elec¬
"cold light,"
a
is to win the Cold War.
have
Redemption of
or
The Commu¬
to death
1
an
tu
territory
long been my conviction
best way—perhaps
the
most incalculable.
troluminescence
our
hierarchy, I suspect, would
settle for freezing us instead of
(2) In tandem with the atom is
another mighty particle, the elec¬
The changes it has wrought
the end of the war are al¬
Cold
of attri¬
nist
of
as a matter
the
process
to
This advertisement appears
that n
influence, and to undermine
It has
races
through
a
constantly
na.row*
awak¬
ampler
an
objectives
tion,
and
accom¬
alarm-clocks
But this
mean
inevitable.
War—through
co¬
Hundreds of millions
real and
away.
Communist strategy is to achieve
its
centuries-
ening of the East has been
ever-expand¬
War is
necessarily
Hot War is
long assumptions of white superi¬
ority.
What is described
The Cold
not
does
long-
so
an
cannot be wished
Again primarily
technological prog¬
whom
on
ing scale. It now extends to the
military and economic as well as
the
political and psychological
races.
those
«
developments pro¬
the Communist Cold
apace,
War continues
both
result of
'
of the Communist
Challenge
regarded, f in Rudyard- Kipling's
phrase, as "lesser breeds within
a
himself.
~
these
While
cultures.
between
—
different
T
enormous.
the
But
Chinese
the other two-thirds.
over
fronts.
ress,
re¬
"population explo¬
Penicillin, DDT, purified
water, the spread of elementary
hygiene, the new emphasis on pre¬
ventive medicine—all operate to
as
it
frontiers
on
among
,
future.
-
third of the hu¬
can¬
promise and
peril, are in the altered relations
for
both
diagnosis
and
therapy.
(7) Related to these triumphs
of medicine,
particularly the socalled
wonder drugs,
is a phe¬
nomenon
with vast implications
to
;
Russian
a
it reaches out pef-
and
race
to be
and
(9) Other fundamental changes,
niques
our
ion
globe.
tech¬
sion."
the
probably
sistently, systematically, with
ruthless determination, for domin¬
hand this is forcing
one
other,
common
of cancer but of other
formerly considered in¬
curable. Chemistry, physics, elec¬
tronics have all, during this
period,
for
man
violent conflict—in the past
largely restricted to peoples with
only
ferred
history.
Already the
orbit embraces
sible
scourges
and
geography
cross-fertilization
On
dedicated
tools
of
On the
a
researchers toward the eradication
new
is
single event in mod¬
ern
future
certainty.
concepts
packed
contributed
most fateful
celed out the old concepts of "re¬
The Magnitude
mote" and inaccessible places.
" ^
tions
not
immediate
coalition
and bewildering change. Today's
The cumulative 'impact on So¬
communications, transport and
long-range weapons have shrunk ciety of the ten areas of develop¬
ment I have mentioned, is bound
the planet,, obsoleted our former
types of cancer
already subject to cure. En¬
couraging beginnings have been
of
the
more
(8) We come now to a different
but, if anything, more important
level.
The political physiognomy
of the world has undergone rapid
Some
thousands
problems
food and political adjust¬
in
seems
and
more
China, with its
people, in the Com¬
million
munist
ment
are
by
The inclusion of
650
of space,
in
made
basis.
em¬
tempestuous change — a focusing,
as it were, of all the other chal¬
lenges.
; •
to
engender
symbol of
being
continues
"compound inter¬
Population pressures
a
throughout history. That they will
Astro-
been major breakthroughs in med¬
icine and health. The Salk vaccine
as
growth
of
reasons
phasis. For I consider it the prin¬
cipal challenge in our time of
have been responsible for coniiict
time there have
against polio stands
tory of change for
population of the United
The
alchemists of the
same
Communist empire and power. I
have left it for last in this inven¬
states.
Middle Ages, it turns
out, were on
the right path after all.
(6) At the
points
present
one-
new
(10) Finally, there is the great
expansion, since the war's end, of
ac¬
on
aspirations,
new
billion
his latest book, means that
accelerate
750
of
Huxley
Aldous
as
population
five
the
pass
sibilities,
perils."
cen¬
four years mankind adds to
its numbers the equivalent of the
have as yet no name have become
available for personal and indus¬
The
today it
It is esti¬
the end of this
total
a
dependence. But that, he empha¬
sized, "is not the end but the
beginning," since political inde¬
pendence "produces new respon¬
it
century.
ago the human
a
use
This is
with
every
Electronic Products Division—and
the name alone
says volumes for
the emerging world of fantastic
uses.
increase,
half
nearly three billion.
tury it will
orbital
our
of
in
con¬
million have attained national in¬
But
mark.
in
or¬
mail
up
all parts of the world.
of several
rate
double
mated that by
platform,
an
there were
people on earth.
ago,
double.
inferior
Since the end of the war, Sec¬
retary of State Dulles remarked
in a recent address, 21 countries
than 16 centuries for
to
and
ditions.
Christian
Less than 30 years
race stood at two
billion;
in
now
the
of
uses
today's
the
status
inferior
one
shaping of our future is not in the
atom; it is in the Adam—in man
sational
at
in
Developments
war,
other science.
North
•—I
practical
tron.
in vast explo¬
sions—chiefly in the
ence
upon
Postwar
revolutionized
since
of Our Time
occurred
of nuclear energy.
values which do not
change.
man
imaginative
of
years
population
should
new
or
birth
more
made
for
hu¬
have
develop¬
(1) The most dramatic advances,
of course, have been in the release
the
time-tested
of the
some
period since the last world
Lists
come
deeply engrossed in
discern, even
outsiders, the
time
a
years.
convenience, I have or¬
ganized them into ten categories.
But the arrangement is arbitrary.:
The
groupings overlap, interact
and transcend any verbal bounda- *
ries we may set up.
the
than
more
compressed into
or
For
war.
temper and climate of the mind
will take precedence
over the ac¬
is
that
short
"will
spirit—a
months
ments
school of
a
the
often
now
I shall list
here,
said,
indicate
post
at
point for communica¬
artificial
an
trial
to
University,"
he
to
as
war
the
world
have
we
mortality rat
about 250 million
briefly the dimensions of these
changes, in - order to underline
their aggregate impact and chal-.
change.
,
lenge. Because my personal fate
(5) Spectacular and significant
placed me in the electronics field,
I have had an unusually good van¬ change has in these years also been
tage point for observing the great registered by chemistry, particu¬
larly in the development of new
surge. * I
have
been
impressed,
above all, by its tempo. Develop¬ materials. A tremendous array of
new
plastics, ceramics, lubricants
ments of the kind that would have
and categories of substance that
required decades or generations
few
"Brandeis
v
us.
useful
more
practical
relay
a
of
ahead of
be
at home
as
Engineers in RCA are
tually working on the possible
more
may
space
tions.
years
It
The
bited satellite
the eloquent sum¬
deis University made at its inau¬
gural services ten years ago
by its
much
as
infant
prolong life at the other
1,958
It took
man
discern
and
At
the earth's surface.
is wise enough to fore¬
on
peace.
mary of the aspirations for Bran-
across
end
end.
shall be¬
we
adventure, whether in
He declares victory requires as vast and inflexible
dedication as the enemy's, and a facing up to the sacrifices
and the risks involved.
came
when
era
the consequences of this
see
resources.
I
an
interplanetary
energy,
Russian educational system's overemphasis on technical train¬
ing. The RCA Chairman maintains our victory in the cold war
requires much more than marginal use of our energies and
V
cut down
on
era,
almost
come
electronics, automa¬
tion, outer space, new materials, population explosion and Com¬
munist growth, Brig. Gen. Sarnoff warns
against "aping" the
as
e'x-
(4) Then there is the ever in¬
tensified exploration and
conquest
of outer space. The
beep-beep of
the Russian Sputnik heralded the
Chairman, Radio Corporation of America, New York City
what
be
can
repercussions
of leisure.
By BRIG. GENERAL DAVID SARNOFF*
Industrialist specifies
which
nave
employment, hours and conditions
of labor, education and the
growth
Age of Change
an
cu
15
on
that,
on
the
and
re-
page
29
The Commercial and Financial Chronicle
16
.
.
.
(984)
it is still
THE EDITOR:
TO
LETTER
ter
of
THE MARKET... AND YOU
Reader
Questions Effectiveness
Of Protests to Legislators
By WALLACE
a
candidate for
sedate
The
where wide
on
.
paradox said to
legislators' inattention to voters' reaction to fiscal tax
Stocks
worked
higher this troubled by lack of transmisTo some of the
decisively above the market analysts issues like
week, carrying the industrial sion facilities.
spending performance. She wonders whether taxpayers'
protests are going unheeded because legislators are not hearing
from the right people; urges everyone who cares to protest to
their representatives and to explain the urgency of the prob¬
lem to others; and suggests re-election be abolished as the way
to make legislators obey the majority's wishes. The correspon¬
dent decries inflation as the "cruelest tax" and hopes more
voters will understand that it is not possible to "soak the rich"
by bankrupting the Federal Treasury.
and
average
600 line for the first time in
a
bet¬
payout this year because
the
large gap between
earnings and its payments,
STREETE
V
Miss Cook is concerned about the fathomless
exist in
Thursday, February 26, 1959
Pacific Petroleum and Home
be
in
item
moves are
,
j:
era
an
blamed
small capitalizations might
Atlas Powder.
which
pany,
mere'
This
has
corn-
around
three-fourths of
a
a
mil-
pon shares
outstanding, only
expanded its 1958-591
uncertainty since the area had ing an important expansion in range past 20 points. The comA
repulsed the list several times their sales of gas now that a pany until recently did little
earlier.
pipeline exists, were even jn the way of diversification
Profit-taking picked up no- preferable to the United an(j concentrated on expld^
ticeably once the line was States ones.
sives for which demand jS
history and ended
note of Oil, with the chance of show- j u s t
a
broken and progress was re-
Rails
were
able
keep highly
to
cyclical,
Editor, Commercial and Financial Albany, Feb. 12, Gov. Nelson A. stricted, a not unlikely devel- step with the swings in the
Since World War II, howChronicle:
Rockefeller and Mayor Robert F.
opment.
industrials but again belie the ever, Atlas has branched out
Our metropolitan newspapers Wagner have made a secret deal
Avpmw„
story of the industrial average into industrial chemicals,
which will hit state taxpayers in
pride themselves on the
accuracy
general and New York residents
particular, it was reported here i
f
today. The Democratic Mayor re¬ ket at the highest level in hispeatedly has promised the Repub¬ tory brought n e w assaults
of their reporting. Their men
go
after the facts and detail them for
the informa¬
tion
F
in
of the
public from
lican Governor all the Democratic
hour
to pass a recordbillion budget, with
staggering tax increases of $277
million. In return, Mr. Rockefeller
is said to have promised Mayor
Wagner additional state aid and
taxing powers to bail the city out
to
smashing
What
they
print is be¬
lieved,
even
when almost
unbelievable.
Just
the
now
Freely
worthy report¬
ers are
writing
With
E.
Elizabeth
that New York
the
of
intention
mollify¬
of
are
letters
cut
constituents'
views
unmistakable
in
terms
the
and
less
In
most
at
Gov.
the
his
time realizing that
they face
the prospect of
being whipped into
line by the Republican
leadership
same
than
after
weeks
two
Rockefeller
submitted
had
budget, the legislators had re¬
blizzard of correspond¬
ceived "a
ence"
estimated
at
than
more
and forced to vote for the onerous
100,000
tax increases."
than 100 to
one
Two days later, Feb.
12, 1959, a
front page article in the N. Y.
"World Telegram & Sun" started
off "Report City-State Tax Deal.
taxes.
(N.
Y.
"Times"
Feb.
1959)
But
up
to
that
time
This
of offers
to
offer is made
buy
letters,
Governor
probably
an
any
had
offer to sell
more
opposed to higher
not
submitted
Continued
advertisement is neither
tion
on
page
1 here was much ammunition
available
solicita¬
a
The
only by the Offering Circular.
an
Illinois Cor¬
poration, is engaged in the design,
manufacture, fabrication
and sale of indoor and outdoor
electrified
plastic advertis-
The corporation leases
a
building of approximately 25,000 square feet at
Central Park Avenue,
Chicago, Illinois, where
1100 South
plant and executive offices.
It also leases
additional plant facilities of
9,000 square feet at 924 Inde¬
a
pendence Boulevard, Chicago, Illinois.
15,
the
with
Ameri
FACTURING
CORPORATION
a
copy
«» rail ^
,
..
...
Dlgby 9-2910
of the
Another company making
-ther drastic
Still Full of Steam
...
,
m
definite switch
was a
-
tional
STANDARD
Distillers
Offering Circular.
is
which
a
nV
has
.
The
pros^ects
which, in addition to its high beverage side of this company
having definite trouble at leverage, is also able to offer towered over the chemical
times.
Their success m the
dynamic possibilities through branch four years ago, the gap
small car field which the Big its
87% ownership of Aerojet- has b e e n
'narr0wikg con-'
Three .ignored up to here,
General, largest maker of stantly and projections for this
made them standout perform- rocket
engines for missiles.
are that
chemicals will
ers in recent months But now
General's yield was only
some $26 millions in
it appears definite that they
siightly over 1% on the cash ' etax
fit
*inst $30 mil.
are m for
competition in this paid iast year with traders
£ons fr'm
and that:
area from the
Big Three and much more interested in the bv iqen chemicals will have
£roduce
bev(frages
their followers
are
much
fJr„ed
more
140% improvement in profits
ahead
Although the
Big Three, in- in the final Bscal quarter last
to
cidentally, were far from be- year. Since the interest m
t
hi her divided payout
33 ing market leaders on outAerojet has picked up, the fhis J at the
e£t 'rJe
standing strength since it will stock of Genera has changed
tbe
is just above 3%
be months before they can get its
ways radically.
Where it whU> the
has a pre.
into the small car race.
held in a seven point range in
ferred
offering better than
The Troubled Oils
*955 and one of six points in 4^._ The preferred ^moreover,
cautious
The
^ expend
a
even
was
also
were
sore
a
when the rest
surging higher.
issues
were
and
ana
S last
list
The dolargely
extreme
extreme
broadened out to a
soot
of^the
caucau
recent hike in the tax bite in
Venezuela
make
undoubtedly
some
nations
of
review
the
j
1
hlprl
Pi?
thlg
which it
nvpr
:tc
.Y?
^ore
1nw
s
their
P
year
.
it
has
'
The
group
that
has
been
split-up neglected for
a longer period
than most of the current lag-
of
the
ine--..
stores at the moment is H. L.
arppn
Cn
which
acauired
a
president late last year
after the fortunes of the com-,
pany had slid downhill cohnew
sistently. Then it acquired a
southern chain, a Michigan,
an(* lai^e stock .mteFest
profits with the oil com!n United Stores which had
panies and at the moment gards is the farm equipment {^s\ Put together McCrorythere is an over-supply
in manufactures. Returns here McLellan Stores out of hyo
It was hardly
good market ac-
What investor interest
still
was
swirling around the oil
concen-
seParate chains. And the management is scouting around
maker.
for other regional chains as
earned last year was far in we" ,as engaging m an agexcess of the indicated $2.37V2 gressive building progra
dividend rate.
The 1958
internal y as w . '
profit was best since 1950 and Whether the turn has c
y_
rUn
the
past 4% in Deere & Co.,
second
largest domestic
The
$6 per share
trating on companies with
large gas reserves since the with indications that Deere been made 1S n0 >e w
vast expansion in the use of will do
better this year, it m the records but comp
y
natural gas in recent years appears that the earnings slide projections indicate
e
has lifted it to where it sup- after 1950 bottomed out in agement believes it has.
plies well past a quarter of 1956. Late last year the divi[The views expressed, in this
the energy consumed in this dend was raised 12cents to
^e^colnefde witTthose of X
country. The Canadian gas 50 cents a quarter, plus a «chronicleThey are presented
producers have been long year-end extra. Nevertheless as those of the author only.]
„„
Name
(Please Print)
Address
City
.Zone.
.State.
i.
convertible with all the:
dur" hed«e aSpects that SUCh
fhan dou. lss^ af^r^ gi j
in
on fnr
lhe expansion item in
..
stlll_young
a
comJpany
vear
will Farm Equipments Interesting
mid-East
section seemed to be
MANU¬
Litch
baker and American Motors
conducive to
plymouth securities corporation
me
recession been made up even
also had a rather quiet marlow-yield item that still ket life as the
of its
of emphasis in the motors, the showed no
signs of running expansion into chemicals deso-called independents, Stude- out of steam was General Tire
vel0ned slowlv
Where the'
,
There
tion.
Liberty Street, New York 6, N. Y.
gu> <>/0 which, with
institutional accounts have
higher both in 1930 and 1929.
"
world markets.
Offering Circular Upon Request
Gentlemen: Please send
ag
ag
a
greater protection offered though explosives themselves
by the senior securities, has currently are in good demand
past near- b£en
attracting what dabbling again.
™°Hke
neglected
negitxiea
Price $2 Per Share
92
an
natfonal''ergerou°pn which^vas broadened its 1958-59 low-tothe poorer one pricew^e. The
t0 m°re tHan 4°
MANUFACTURING CORPORATION,
maintains
several
at
plastic compounds and some
preparations used in the food
jong way to go to achieve even industry. Still dependent for
a near-term peak.
To many, some 60% of its sales on exthe fact that railroad mort- plosives, Atlas has yet to re?
gage bonds of quality are fleet the growing importance
-yielding ar ound 6% was of its new lines and the stock
j^ar<jQy an incentive to rush to is far from any historic peak,
buy ra^ eqU^ies. In bonds of well under its 1958 level. Nor
jesser qUaiity the yields run has the lost ground from the
Telephone^' which Told
can
mestic
(Par Value of 10c)
it
Chrysler, lor
reached
both
levrfs and
Oils
Class a Common Stock
one-story
it
price
others
150,000 Shares
ing signs and other plastic items.
since
one, is little better than nail
is
They have
^ielb
nor
of these securities.
Standard Manufacturing Corporation
STANDARD
a method of
markets level.
as
the
"Mr.
presumably,
receiving hun¬
recommended would be returned
telling them "to
to local governments to lighten
spending and cut taxes," or at
their tax burdens." (N. Y. "Times,"
least not to vote new
taxes, but
Feb. 10, 1959) Lighten? After the
they expect to vote lor all the new
tax measures the Governor has sums rubbed off on the way to
Albany and back to the home
suggested.
'
■
town?
Naturally many taxpayers
According to the N. y. "World
are asking why they can't decide
Telegram & Sun" of Feb. 10, 1959,
"These lawmakers are in the un¬ locally what services they want
from their local governments.
enviable position of
hearing their
dreds
averages
gauging
the
Rockefeller pointed
out that
$1,051,000,000 of the ($2,041,000,000) state expenditures he had
Cook
State Republi¬
legislators
as
opposition
ing
"market"
the
that sounds years back, yet it is one ot tne
usual. The public
were
damned."
be
the strangest
agamst the misleading aspects
of
translated
like "Politics
of paradoxes.
For example,
can
$2
of its financial mess."
trust¬
most
needed
votes
hour.
that
"v?1" historic high.
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
(985)
the
Bank's
22nd
Essex County.
-
News About Banks
Cashier.
NEW
$
»
.
_
First
*
♦
~
.
National
-
Bank
banks-have
The
Chase
Manhattan
Bank,
New York has announced the
ap¬
cording to
23
by
announcement Feb.
an
H.
J.
Marshall,
pointment of Russell F. Erickson
Both
to the
Loan Administration
advisory committee of the
Grand Central
branch
Lexington Avenue.
tp; •■"** 7'
**.
* '
'
«
at :
."l
John
of
P.
*
Dowling
and
Assistant Treasurer
as an
William
E.
Suneson
Prior
of
of
to
Department.
',
'
ft
State
s
Bank
the
New
ft
V
,
*
;
York
State
Department
Banking to increase its capital
stock
from
$300,000 consisting of
30,000 shares of the par value of
$10 each, to $450,000 consisting of
45,000 shares of the same par
Bank's head office, 44 Wall Street.
value.
He
is
St
•Mr. Suneson joined the Bank in
1951 and was appointed an As¬
sistant
Branch
Manager in 1955.
At present, he is assigned to the
Bank's
office at
221
Fourth
Ave.
*
.. ■
The
*
election of Walter M. Jef¬
fords
Jr.
as
Director
a
Federation Bank
New-
pany,
nounced
and
York
of
Boston,
to
been
an¬
by Thomas J. Shanahan,
President.
ft
*
John
W.
The Lincoln
N.
lyn,
President
of
effective
that
announces
Feb.
ft
its
com¬
10.
"The
<:
(Number
ft
Manufacturers
Bank
of
300,000
—
North
National
Attleborough,n
North Attleboro, Mass. changed its
title to "Manufacturers National
of
North
Attleborough"
effective Feb. 10.
The
a
ft
Boards
of
Directors
of
Union
County
Trust
Company,
banking office will be
opened* to the Public, at 12-16 Elizabeth, N. J. and Citizens Trust
Graham Avenue, on Feb. 28. The Company, Summit, New Jersey,
original building at 12 Graham voted on a proposed merger of
two
Avenue has been replaced with a the
banks, according to a
new one in the much
larger area joint announcement by George
W. "Bauer,
covered by 12-16 Graham Avenue.
President
of
Union
V"' '
County Trust Company, and Harry
; - ft
ft
ft
W.
Edgar,
President
of
Citi¬
A
ground breaking ceremony
zens
Trust Company.
The pro¬
Feb. 19 launched construction of
posal
was
approved
by
both
a
new
branch
office
for
the
Boards
of Directors,
subject to
Bushwick Savings Bank, Brook¬
concurrence by State and Federal
lyn, N. Y. at Drew Street and
Banking authorities.
Liberty Ave., Brooklyn, N. Y..
modern
.
_
With
*
M.
Harvey
elected
Smedley,
has
been
trustee of Flatbush Sav¬
a
ings Bank, Brooklyn, N. Y. it
was
Feb.
17
by John S.
Roberts, Chairman of the Bank's
announced
board of trustees.
*
.
t
Edward
of
#
J.
ft
Quigley, Postmaster
was elected to the
Brooklyn,
five
offices
ft
-t
and
.
Board of Trustees of the Hamburg
Cranford,
in
Trust's latest published
of
condition
Elizabeth
Union
reports
County
statement
of
resources
than
more
$73,450,000 and deposits
exceeding
$67,300,000.
Citizens
Trust, with an office in Berkeley
Heights, N. J. in addition to its
Summit headquarters at 30 Maple
Street, lists resources of almost
$16,000,000 and deposits ofi more
than $14,800,000. Following formal
Savings Bank of Brooklyn, N. Y.
approval
it
County Trust's deposits, based on
its
Dec.
31, 1958 statement of
condition, will total over $82,000,000,
making
it
the
largest
Feb.
announced
was
;
*
L.
Elwood
elected
ft
16.
ft
Martz
has
Vice-President
a
been
of
the
the
of
Central Bank and Trust Company
State
in
tion in Union
Great
L.
I.
Mr.
Martz
previously
was
of
Neck,
ft
The Franklin National
Patrick
Clifford
J.
vanced to
the
new
Vice-Presideht
to
Becht
Bank
of
that
has
and
of
been
ad¬
post of Senior
George
H.
Administrative
Vice-President.
*
*
Island,
Huntington,
its
increased
750
from
New
$4,589,080
York
capital
common
to
$4,726,-
by a stock dividend effective
11.
(Number of shares
standing —
value $5).
>
945,350
shares,
par
-
ft
*
J.
out¬
ft
Ungemack, Assistant
Treasurer
in
charge
of
The
County
Trust
Company,
White
Purdy
terms
two
of
the
proposal,
County Trust
shares for each of
theirs, plus a
cash payment of $25 per share of
President
will
be
of
merged banks
W. Bauer, with
Citizens Trust President
Harry
W.
Edgar becoming Vice-President in
charge of the Summit and Berke¬
Mr.
Edgar, David
H.
Knowles,
Cameron
ft
Brown
office
at
and
Lewis
E.
of Westchester,
as
Assistant
White Plains, N. Y.
Vice
Presidents,
ac-
personnel of
Bank
would
Community
N. J. and
Bank,
the
National
Rutherford,
Ridgefield National
/
Preliminary
approval
of
the
merger already has been given by
the Controller of the
Currency.
He is expected to give his final
approval
to make
the
consolida¬
tion effective Feb. 27.
The
bank
merger
will result in a
with capital
of $3,031,250,
comprised of 242,500 shares with
a par of $12.50 a share.
It is ex¬
pected that total resources will be
than
more
$1,000,000.
The approval of the merger by
the directors was given in the Jan.
29
issue
of the
become
Dime
with
Northeastern
affiliated
National.-
St! "
"Chronicle" page
*
.
of Paterson, N. J.
to
name
Passaic
First
Bank
of
County, Paterson, N. J.
ft
i
At
will change its
National
ft
ft
separate meetings,
Feb.
17,
the Boards of Directors of North¬
eastern
Pennsylvania
National
:i:
At
separate
Feb. 18
the Boards of Directors of
SpitzerRorick Trust &
Savings Bank,
Toledo,
Trust
Ohio and
Company,
Ohio
Citizens
Toledo,
Ohio
approved an agreement to merge
their respective
institutions, ac¬
cording to a joint announcement
made
of
Feb.
the
.19
two
Rorick
the
by
banks,
000
to'
dend
of
$200,000 by
shares,
par
and
Willard
by
I.
Webb, Jr.
the
State Banking
and Federal Reserve authorities
and ratification by stockholders of
both
banks, is scheduled to take
on or about April 30. It will
be
effected by an exchange of
common shares, the exact details
place
to
be
at
announced
a
later
date.
Following the merger, the sur¬
viving institution, Ohio Citizens
Company,
rency,
will
have
total
$100,000,000 and
Northeastern
one
National
Dime
share
stock
of
for
Pioneer stock held,
consists of both preferred
each share of
which
and
common
As
of
sources
stock.
Dec.
31,
1958,
total
re¬
of the Pioneer Dime Bank
$5,021,430.
Total
deposits
aggregated $4,646,511. Total re¬
were
This
announcement
Bank
By
the
sale
common
Sidney
Neb.
to
The
Third
Trust
!|:
of
Dayton,
new
stock
and
Ohio
common
effective
Feb.
11.
(Number of shares outstanding—
280,000 shares, par value $12.50).
Bank,
Sidney,
effective
1,100 shares,
!i«
By
National
tucky
Bank
the
of
increased
was
ber
of
shares,
shares
Other
of Union
members
bank's
of
Board—will
outstanding—1,000
*
%
:■>
Liberty National Bank of
Dickinson, North Dakota increased
its
capital
common
$100,000
to
stock
the
Summit
as
both
banks,
board
as
will
dividend effective Feb. 11. (Num¬
of shares outstanding—2,000
shares,
par
value $100).
Laramie,
ft
ft
First
National
Bank
of
increased
Wyoming
its
capital stock from $100,-
common
000 to $250,000 by a stock dividend
and from $250,000 to $275,000 by
the
sale
Feb.
10.
of
stock
new
standing—2,750 shares, par value
$100).
ft
a
stock
:t!
ft
stock dividend The First
of
its
from
Juneau, Alaska
$150,000
Feb.
11.
shares outstanding
par
capital
to $300,000
(Number of
common
—
3,000 shares,
value $100).
offer to sell nor a solicitation of an offer to buy
offer is made only by the Prospectus.
NEW ISSUE
any
remain
on
the
The
National
State
Bank
of
Newark, N. J. opened its Seaport
Office Feb. 24 in Port Newark at
Marsh and Terminal Streets. It is
of
Febniary 24, 1959
2,138,500 Shares
Terminal
Company
Common Stock
(Par Value #1.00 per Share)
Subscription Price $1.25
per
effective
(Number of shares out¬
Share
an
its Chairman.
stock
a
ber
Advisory Board to the Summit
and
Berkeley
Heights
offices.
Raymond T. Parrot, a Director of
new
from
by
$200,000
County Trust.
serve
stock
The
effective
capital stock from $1,320,000 to
$1,420,000 and from $1,420,000 to
capital
value $100).
par
Chicago, 111. increased its
common
Carlisle, Ken¬
from
$50,000 to
$100,000 effective Feb. 10. (Num¬
Stone, Jr., and John J.
Summersby, current Directors of
Trust, will be
named
Directors
11.
♦
common
increased
&
Feb.
stock dividend The First
a
National Bank
Fort Pierce Port
the
value $100).
par
*
By
a
stock
dividend
The
Cosmopolitan National Bank of
an
the
of
increased from $100,000
$110,000
By
is neither
stock
stock
National
was
The
Bank
new
(Number of shares outstanding—
ft
National
Company
increased its
of
capital
#
Si
capital stock
from
$2,500,000 to $3,000,000 by
and
President
of
the
Pioneer a stock
dividend and from $3,000,Dime Bank, Willis G. Blocksidge.
000 to $3,500,000 by the sale of
Pioneer
*
!;!
National
H.
capital accounts of approximately
of
stock divi¬
a
10/(Number
outstanding —, 4,000
value $50).
$6,000,000.
Shareholders
of
effective Feb.
shares
Presidents
Marvin
dale, Pa., voted to file application
Bank would receive
stock
The First National Bank of Carmi,
was increased from
$100,-
li".
with the Comptroller of the Cur¬
Ray M. Gidney seeking
merger approval.
The
joint announcement was
made
by Northeastern National
President
Frank
E.
Hemelright
ft
capital
Illinois
meetings
Trust
Carbon-
;
a
resources of over
of
ft
of Jackson,
stock dividend The Na¬
Michigan increased its common
City Bank of Cleveland,,
capital stock, from $1,282,365 to
Ohio increased its common
capi¬
$1,496,085 by. sale of new stock
tal stock from
$17,600,000 to $19,- effective Feb.
11.
(Number of
360,000 effective Feb. 13. (Num¬
shares outstanding—99,739
shares,
ber of shares
outstanding—1,210,par value $15.00).
000 shares, par value $16).
By
Pioneer
Bank,
ft
tional
Bank and Trust Company and the
Dime
*'
.common
The
approval
Effective March 2, the First Na¬
tional Bank and Trust Company
(Number
si:
The merger which is subject to
Sis
10.
outstanding -£• 75,000
shares,!par value $20).
\ * "
ft
548.
Si:
of
com¬
capital stock from $1,300,000
$1,500,000 by the sale of new
to
stock effective'Feb.
of
shares
The
Byerly, President.
S".
•■
1
the
Personnel
Department
of
Fidelity Trust Company, Pitts¬
burgh, Pa. according to John A.
■
"
Bonk
mon
$
Miss Esther I. Schmidt has been
elected an Assistant Secretary in
O
ft
■
National
Springfield, III. increased its
of
Bank, Ridgefield, N. J. have ap¬
proved the merger of the two
institutions..,
the "Pioneer
ft
First
Citizens
ft
Upham have joined National Bank
upon the acceptance of the
stockholders and final approval of
the Comptroller. All directors and
The
John K. P.
proval of the proposed merger.
*
■
drive-in
tive
a
.
>
•
one
Bank
sit
the
of
Currency,
two., banks
the proposal.
The merger would become effec¬
on
the
George
Feb. 25.
Y.
Si
vote
Citizens Trust stock.
A
meeting of stockholders of
both institutions will be held at a
later date to consider formal ap¬
N.
!•!
Stockholders
the
the
Union
Port Chester, completed 30 years
of
service
with
the
Bank
on
Plains,
would then
these securities. The
ley Heights Offices.
ft
Security National Bank of Long
Feb.
institu¬
receive
Long Island, N. Y. announced that
stock
Under
financial
stockholders of Citizen Trust will
ft
Bank
receive
National
County.
a Vice-President
Industrial Bank of Com¬
%
.
chartered
Union
merger,
New York.
the
merce,
National-
would
First
Sj!
ft
Savings Bank, Brook¬
Y.,
increased
shares
Bank
*
Hooper,
Mass.
capital stock from $2,600,000
$3,000,000 by the sale of new
outstanding
shares, par value $10).
the
Trust Com¬
has
ft
mon
of
|
ft
Rockland-Atlas National Bank of
stock
at;18th Street.
to
authorities.
Kenmore, Kengiven approval by
the Bank
assigned to the
Credit Department located at the
Dowling joined
1956.
of
of
of
-Mr.
stockholders
share
plans
on
-
Hudson
of
of
coming to
announced
by
Horace
C.
Flanigan, Chairman of the Board.
are,
West
of both
was
more, N. Y. was
in
Jersey
Harrison, N. J.
agreed
consolidate.
President.
in the Bank's
serve
Assistant Secretary of Manufac¬
turers Trust Company, New York
,
•
NBW, Mr. Jersey City for each nine shares
employed by Bankers held. The plan must be approved
Trust Company, New York City ,by stockholders of both institu¬
as Credit Group Head.
tions
as
well
as
supervisory
an
as
will
men
Upham
;
'
*
appointments
institution $1,500,000 by the sale- of new
$156 million.
stock-effective Feb. 10. (Number
of shares outstanding —^
15,000
shares, par value $100). "
'
\
Should the joint application re¬
ceive
initial. sanction
by ' the
>
Comptroller
Bank
announced that Directors
•'-The
of the merged
.
City, N. J. and the West Hudson
National
422
••
*
-
C AMTAIIZ ATION3
Bank's
sources
would exceed
stockholders
OFFICERS. ETC.
REVISED
►
serving
,
> •:
•/.
...
NEW BRANCHES
-
-
Manager of the Seaport Office is
Gordon
C.
Kelly, Assistant
CONSOLIDATIONS
,
office
■ >
17
Copies of the Prospectus may be obtained from the undersigned
or
from your own dealer.
Frank B. Bateman, Ltd.
243 South County Road, Palm Beach, Florida
The Commercial and Financial
18
Chronicle
.
Thursday, February 26, 1959
.
.
(986)
difficulties are still electric
installations, with our
example; plutonium present methods^ it could mot be
nuclear power, but very few wise is immensely radioactive. It is dif- transported to where it is most*;
thoughts have emerged. Actually, ficult to tool/ It presents great needed, to the hinterlands of the--,
poisoning
dangers.
There
are improverished nations. T; Y:
'V""-'
a discussion of the cost of nuclear
other problems—the disposal of
We may well repeat here: .This *power is not essential at this time.
ratioactive wastes, prevention of great discovery of nuclear energy/,
Whatever the cost of this power
may be, no matter how. it may. explosions, and so, on. But these is taking place just at the moment /
compare with
that produced in and other problems are mostly en- it is needed. Nuclear power plants :
conventional plants, we shall have gineering ones. The history of en- do not depend on altitude or water •
to
produce it and pay for * it, gineering suggests that inventive 6upply. They are independent ef'*
resouceful men,, will solve railroad or ship transport, of Ion- ^
whether we like it or not, because and
There
Energy, Economy
Society in Transition]
a
^
By
Former President,
President,
BORIS
PREGEL*
The New York Academy
New York
of Science
Uranium Corporation,
Canadian Radium and
City
has
been
a
about
discussion
great
deal
aspect
this
of
of
Many
nary.
unsolved. For
.
Retiring President of science group
asks his colleagues to be
we
sion
prepared to meet the problems that will be posed by the advent
of the twenty-first century. Emphasizing that "nuclear energy
is taking place just at the moment it is needed," Dr. Pregel
depicts upward population growth and how nuclear energy will
sustain it. The physicist foresees an inevitable role for govern¬
ment capital and outlines the major industrial and non-indus¬
trial implications of the exploitation of nuclear energy. He
predicts 20-hour work week will soon occur, and a world so
altered by automation and abundance of cheap nuclear energy
that it would bring about a class of "leisure-stricken" individ¬
uals who would replace the "poverty-stricken."
*
is
It
great discoveries
the moment when
ical axiom that
made
•re
at
they are needed. I believe we can
apply this to
the
discovery
of nuclear en¬
for,
ergy
not
had
been
very
a
dent
short pe¬
at
sombre
we
all
as
form
ap¬
fossil
that
we
must develop
new
And we must do it
In this study, I wish to
once.
some
detail the form
and some of its
possible effects on our economy,
know,
some
the
our
of the new energy
in
published cost figures, that they
are "guesstimates." It is my opin¬
ion that these figures are exces¬
To
consider in
future.
Energy,
Boris Pregel
other than the
exhausted
conservative idea of the
needs of the world, then,
it may be suggestive to take a
look at the added energy needs of
the United States as projected for
•energy
the very near future.
These curves show the
available
they
as
Furthermore/and this is very im- portant in regions where the num-:.
on
installations which were
engineers is limited,"
ber of trained
are
constantly rise in
a
will
clear
be
to
everyone
in
nuclear reactor is almost auto-
all
a
sively high, and that they are so- very short time, that nuclear enhigh because they are the result
ergy is the cheapest new energy
of wrong thinking based on inade¬
source
in the. world today.- And
quate information.
tomorrow,
with fusion reactors
Our information is inadequate
making available the virtually insimply because our experience in exhaustible deuterium- supplies of
producing nuclear energy is negli¬ the seas of the world, the cost of
gible. We do not have, anywhere : nuclear
energy-, will ^approach
in the world, a perfected reactor ;
practically nothing.V,/-'
of any type. Our cost figures are
We
must
not forget that' for
based
-
'
matically run and does not call for
a
large operating staff. Nuclear/
"guesstimateers" have predicted? energy is, in fact, the only po~
I believe it is clear, and that it tential power source which meets:
the
moment
we
using
are.
already obsolete before they were
completed. These cost figures also
include monies properly charge¬
able
to
developmental research.
The cost of constructing a proto¬
that
cost of later models.
politico-social organizations,
and
culture.
Since
the
data
the
of
requirements
.
of
this '
exigent moment in world affairs. ;
History shows that the hungry r
and the wronged attempt to better their condition with violence,
that prosperous and happy men
effect what may be truly revolutionary
changes
by
peaceful
'
.
.
Nuclear /.reactors
means.
will
r
-
bring the promise of peaceful ag-'1
grandizement to the have-not nations of the undeveloped sections /*<
the
our
"guesstimates" of the cost of nu¬
faulty, we cannot
clear power are
take
seriously
conclusion
any
drawn from them as to
erection of
or
the cost of
reactor power plant
a
We
must
the cost of
the energy it may
The
world's
sources, as
limited.
present
energy
pointed out earlier, are
may still make new
of
We
oil
may
fields
also
or
build
coal
all
possible
hydro-electric stations.
However, all this would be insuf¬
ficient.
because
some
We
know
less
In btu units, needed by
at
so
continental Europe has only
reactor.
theoretical
There
are
now
level
of intensive effort.
The United Kingdom's production
of coal for the last., ten years has
after
no
years
oscillated
objections to this de¬
and
225
between
tons
and
year,
per
type reactors which are designed
promote conversion of some of
stable U238, which makes up
99.3% of all natural uranium, into '
to
the
is not assured.
rope
Needs It?
Who
United
new
of
that
remarked
have
is
States
less
in
of
need
the
tive
world., A
For
crisis,
our
pipeline routes for the transport •
in
of
Middle
to
recognize
this
wealth.
of
ure
ference
At
first
the
supplies
peacetime \.uses
of
Geneva in 1955,
it was
brought out that world
production of electric energy today is approximately 1,500 billion
kilowatt hours. Of this, 40%—625
how insecure these
Moreover, even if
to remain available.
were
it
everywhere,
,
the
hours—was
Eastern oil to Europe,
are.
to Europe, the fact remains that
it is exhaustible. More important
still is the consideration that, like.
all
other
fossil
fuel
supplies
on
kilowatt
oil
this
con-
atomic energy at
billion
•
which
closed the Suez Canal and various
rela-
purposes
resolved,
yet
not
discussion, it may be best to
employ kilowatt hours as a meas-
our
recall the recent
One need only
than the rest
number of in-
could be cited to
wealth.
Suez Crisis
Recalls
the
energy sources
dices
,?
-
.
I
•
250 1
there
is no hope of increasing this ton¬
nage. Not more than 60% of westsolution.
ern Europe's present fuel requireThe same can be said
of the*ments are being met with coal,
problem of selecting the most ef- The deficit is being made up with
ficient reactors.
It is not appro- oil, mostly from the Middle East,
priate to discuss,- within the scope Sixty percent of the world's petroof this report, the/technical as- leum supply lies in that area, and
the continued delivery of it to Eu¬
pects of these problems.
million
velopment and the necessary re¬
search is well on the way to a
converter
plutonium 239. Early indications
suggest that the converter type
will be about three times as effi¬
the
from
prewar-1937
the
reached
will become apparent on the
day when we shall be able to pro¬
duce
electrical
current directly
plutonium).
about
efficiency is
the
why
ergy
of the U238 is con¬
verted into fissionable
We
discoveries
districts.
in
keep
is
low. The real value of nuclear en¬
,
which
on
projected levels of fuels,
Even if new oil fields and coal
the United
beds were discovered and every
the
dates
indicated.
'
last potential hydro-electric power cient as the crude reactor.
These curves are based on data
We know
still less about the
site were developed, we should
published in the McKinney Report hot
have solved the problem ex¬ breeder type reactor,
in which
on peacetime uses of atomic encept in a few areas. Fossil fuels more fuel will be produced than
orgy. And they are, I may suggest,
are
not evenly
distributed over consumed. When this type of re¬
•quite conservative.
the world, nor are water power
actor is perfected, theoretically,
With
these
data
in
mind, I sites, so that certain parts of the we shall be able
perhaps to ob¬
should like to ask you to think
world would be in the same ca¬ tain
a
hundred times
as
much
for a minute what may be the
tastrophic situation they now face, power potential as in the crude
onergy requirements, just in the
or a worse one.
The area of im¬ uranium reactor.
next 25 years, of six hundred mil¬ balance between have and haveOf course, all these figures are
lion Chinese, or of five hundred not nations is
ending. The new en¬ used by me only to show the tre¬
million inhabitants of India, or of
mendous possibilities which
ergy source, if it is to contribute
are•11 the other millions in Asia, in to the welfare of
mankind, must lying ahead of us, when the reac¬
Africa, and in Central and South tend to equalize the imbalance tors will be perfected. They are
America.
that
has
hitherto
existed.
The interesting only to show that the
Now I should like to ask you to
tides, the sun, the wind are being cost of fuel in the future instal¬
revise those estimates you have explored as possible
sources
of lations will be purely incidental.
mentally made by taking cogni¬ new energy. All of them are In such reactors, the U235 is em¬
zance of the demographic predic¬
promising, but extensive research ployed primarily for the produc¬
tion that, if nothing extraordinary and development will be required tion of neutrons which convert
happens to change the world's to make them feasible: The only the stable U238 into P239. We
population growth patterns, in 25 new source of energy available have only begun to explose the
years those six hundred million almost
immediately, and which potentialities of this radical ex¬
Chinese will have become one bil¬ can meet the requirements of the periment,
the
creation — not
lion and the five hundred million have-not nations, is nuclear en¬ merely
the
production—of
en¬
inhabitants of India will have in¬ ergy.
ergy. On Aug. 23, 1958, the United
The fundamental research need¬ States
creased to 833 million. And the
Atomic Energy
Commis¬
total world population will have ed to make nuclear energy avail¬ sion announced that it had op¬
to
men
evervwhere
has erated, in Idaho, a reactor with
increased from three to five bil¬ able
lion. By the turn of the century, largely been done. The develop¬ P239 as fuel. The AEC announce¬
if the curve continues, we shall mental research is underway. Pho¬ ment said that the reactor had op¬
have a world population of seven totypes of nuclear power plants erated at "substantial power" and
are
in operation, and there re¬ that the anticipated capacity of
and a half billion.
mains no problem whipv, js not the installation is thirty thousand
♦An nddress by Dr. Pregel before the
well on the way to solution.
kilowatts.
New v-rk Academy of Sciences, New
These data are only * prelimi¬
What of the cost of such plants?
York City.
•nd the
states
will
egltab-
Once
latitude.
or
lished, they do not call for a ^
continuous daily supply of fuel. :
cost, will nuclear energy prove to
be
excessively
expensive
as
mind that, produce.
when we speak of nuclear energy,
One thing we can be certain of.
thesis converts into
we imply great new developments
Engineering experience will re¬
and fuel, is the basic resource of
also in practically all the fields of duce
costs, probably sharply.
man.
Today presumably only in
application *and
manufacturing.
Let
us
examine, briefly, how
the first stages of his evolution on
These new methods will help to
meager our information on this
this earth, man's energy require¬
develop and create new synthetic subject is. We know that, in nat¬
ments have grown almost beyond
materials, new high-heat-resist¬ ural uranium, VU235 which is fis¬
the capacity of fossil fuels and
ant
alloys, new chemicals, new sionable occurs in the ratio of
hydroelectric installations to sup¬ electronic
devices, so that the seven parts per thousand: and we
ply thern. These needs are grow- , whole
aspect of
the world in know that one pound of fission¬
tng at great speed. It is certain
which we live will, in a few years, able uranium is the equivalent of
they will continue to grow, and
be much different from the world
650 tons of coal.
that they cannot be met from
of today, just as the world of to¬
Most of the world's experience
present sources for more than a
day is different from the world is based on crude reactors which
couple of decades.
of the 12th century.
convert only about seven-tenths
The United States is rich in
of 1% of their fuel into heat. (The
power. We possess very large re¬
What New Energy?
figure is slightly greater than this
sources of all kinds of fossil fuels.
photosyn¬
food, fiber,
filtered sunlight which
To get a
that fossil fuels
fact
can, keeping in mind as a former
high official of the Atomic Energy
Commission has said of previously
energy sources.
riod of time a
most
gitude
■
,
now
,
have
in
<
question
.
mankind
faced
short time.
«comparatively
a
is: with the
be! essential to our very existence.
foregoing facts in mind, and keepNevertheless, let us analyze the ?
ing in mind also th$ ^inescapable
cost of nuclear energy as best we
provide the energy re¬
quired by this population, we
have all but exhausted our irre¬
billion.
will
The
species on this
earth, up to now, we have reached
a
population of less than three
of
pearance
of our energy resources
in
and
them,
process of fission only -to replace
of the world,
• <" y;
: ^ '
^
fuel stores, and
the conventional
gone a long way toward exploit¬
fuels-^-in other
bears a similar,, promise to
words, the main part.of ,the.plant western Europe, a highly develing
available
hydro - electric
is* the same as? in a conventional
sources. If, within the next forty0pecj region, but virtually with•lnstallation.,
;
>
two years, we are to increase our
: ;
:
out petroleum and facing the pros-/;
type is ordinarily high, sometimes
We use the heat-produced by
present population by two and a
pect Qf inadequate coal supplies. extremely so, and very often that the reactor to
half times, it is abundantly evi¬
iproduce;.steam and Actually, the coal production in-k
cost is wholly out of line with the
achieved,
would
since
time
the
all
placeable
if
"must"
this
In
established philosoph¬
an
shall need the energy. Expan¬
irreplaceable. ,*
is
coal
and
oil
Since
are
of
far
value as petrochemicals
United States share,; though we; than .as fuel, it will be inexcusconstitute somewhat less than 5%
ably wasteful to use them to pro¬
of the world's population. Other
duce power when nuclear plants
sections of the world;, western Eucan take over the task of generatgreater
even RussiaV although poor
comparison'.with'the United
are rich... by;, .comparison
with many of the truly poor nations, particularly some'of those
who are only now; under impetus
ing electricity.
rope,
by
taken
of these :are countries
population
has:" spurted
two
generation or
moderate improvements
agriculture or industry
have
meant
prosperity,
ago,
their
in
A
would
Today,
peaceful evolution.
such countries, the pro-
and
progress
in
mouths
duction
of
benefits
obtained
the
outruns
nuciear fuels. Ex-
b
tation wU1 be required.
electric
of
insecticides.
over
change0ver from fossil fuels to nuctear ones, no adap-
with the aid of modern medicines
and
mind that
function of a trathat will be
t for lhe
status.
Many
*
kept in
ditionai p0Wer plant
tionalism, emerging from colonial
whose
be
ts the only
tMs
truculent—na-
ardent—even
of
must
It
States,
from irrigation
reactor,
the
Production
directly from
though beyond our.
energy
capacities at the moment, is certain
to
come
in
the
future.
But.
distribution systems will probably remain
largely unchanged,
then,
even
The
realize
our
present
English have been first to
their
need
for
atomic.
and they have built a num-.
of them on
industrial scale. They report
power
ber
an
0f reactors, some
hydio-electric no fossil fuel
installations,
of them have
that already the cost of electricity
produced by nuclear fuel is com¬
parable with that of electricity
seeking, and demanding, political £roduced by conventional installl /I
/-*
n
*
Most
1-*
r
resources.
and
Irt
ft
ft
v> ft
tVvrint 1'
.
Nonetheless,
economic
demands
ft-t *
can
they
autonomy
•
t
ft
I
are
Their
only be met by pro-
viding their peoples quickly with
relatively high levels of energy.
The report of the Geneva Conference of 1955 set six-thousand bil-
hours
the
prob-
lion
kilowatt
able
production of electric power
in
1975
.
This
is
as
four
,
times
the
1955 rate Even if it could be oro;e,:
duced from fossil fuels and "hydro-
fations
■ of
course
the
cost
of
electricity from fossil fuels is
hi hl
variable, depending on the
a^biuty
The
t
of fuel and other facplants
using
British
as fuel, appear to
»•
•
^
•
/xj
sufficiently efficient to produce
crude uranium
.
be
in
competition
plants
areas
with
fossil-fuel
of hieh cost
plams in^rea® 01 nien COSIContinued
on
Eng-
page
30
Volume
V*
<
189
Number 5824
.
.
.
The Commercial and Financial Chronicle
!$
'
■
)r
■-J
•.
*.
;
.j.
v;
'T"
C
:
ft'
■/
'
■'
;■
Millions of Dollars
''
*';
V'
1,600
.
r*
Vrte
'&v.
■
;id:
•■•.W-
;
-
3
">
'1—-•
4
.
UNION
CARBIDE
CORPORATION
1949 '50
* 'A-
(
'51
'52
'53
'54
'55
'56
'57
'58
*
■
a.;'
;
■■
•
i-
ft'.V.i
v.
*
Sales
i
•
•rfi-.rr.iiw
v'
.7
:B
trr'TT),
■
,y
;U/f
Y.
fsv
r
.
.
Millions of Dollars
"
m
"y"'
'i.t.
1958
1957
rs 7
t;,-
Sales.
C'"v
Net Income
>
$1,2.96,532,373
.
$1,395,032,817
124,936,845
......
133,740,818
*.
'■
uT;
Per Share.
.
.
.
4.15
.
Dividends Paid
Per Share.V.
•
108,265,402
:
.
.
-
.
.
*
/
•
4.45
•
i »#*-
108,307,512
3.60
3.60
622,201,752
■
605,530,309
>
1949 '50
Earned
;
Surplus
'51
ft'7 1
')
'52
'53
'54
'55
'56
'57
'58
Net Income and Income Taxes
"
"
a iHA
L
tbAua&iA
a
it?
Millions of Dollars
Current Assets.
Current
f
»
.
J-
...,.
Liabilities.,
$
...
653,350,387
:
$
639,1.90,691
213,802,203
216,302,892
1,530,476,376
1,456,353,350
30,093,183
,..
,
30,067,123
'
Total Assets
...........
...
,
•t.C
5 *,
'j*
•
01
•
.
■:-Ta
Shares
Outstanding..
.
Number of Stockholders
t
126,739
123,943
71,500
77,000
1918'20
'25
'|0
'35
'40
'45
'50
'55'58
'50
'55 '58
■a:
1'.
>
Number of
Employees.
..
Dividends Paid
(<
U1
i
'.)
Thousands
tl t
Of '■.
..
!'t i
■It.
Copies of the-Complete 1958 Annual Report of Union
rj
Carbide
Corporation will i>e furnislied
An illustrated booklet
ii
^
;
ft I'
-)
'processes
of Union Carbide-also is available. If
wish copies of these
.
Secretary,
?:« >
Jf. t
on request.
describing the products and
Union
42nd Street, New
you
booklets, please write to the
Carbide Corporation, 80
East
York 17, N. Y.
■
i
1917
'20
'25
'30
'35
'40
'45
Number of Stockholders
•t)
"
*
-ks
-01
3 5
•ol
'"JQs
far
%
The Commercial and Financial
Chronicle
.
.
Thursday, February 26. 1959
.
(988)
20
of despite its vast bureaucracy, has omy seems to have been growing
proved
more
flexible in this lately at an annual rate of about
C to
7% a year, i This is about
commodity that they produced in matter of foreign aid and able to
double our own average annual
excess of their needs.
act more speedily than we.
planners
Moscow's
to
Challenge to the U. S.
And Capitalism Generally
relieve
an
embarrassing surplus of some
Second, skillful use of trade and
persuade allies and neutrals
to turn their backs on the Free
World and look to Russia as their
BELL*
By ELLIOTT V.
of "Business Week"
Editor and Publisher
leader
'
'„
.
To thwart
that
USSR'* desire for world conquest we must meet
publisher Bell prescribes what we- should do in the
economic battlegrounds of economic growth rates, aid to
underdeveloped countries, and trade in the world market places.
Mr. Bell would confront Moscow's hit and run raids on mar¬
do this
last that in time the
Russian econ¬
actually could hope to out¬
strip the U. S. in production,
omy
Wp
equal to its own, mobilized as in war
through a government-financed trading corporation"; use more
international institutions and private investments in under¬
developed areas; and apply new thinking so our free economy
can increase growth, maintain stability and allocate resources
more effectively than does the USSR.
"with power
kets
.
.
i
and most
p
a
,
growth — based upon
rigorously enforced savings and
capital formation — at a pace so
Finally,
long-term
capitalism in general. To
country's challenge to the U. S. and
examples
nil-Ptriv cippn
hivp
2 \,"f
ts
r
lAIwmA
m
mm
C,
uiV
in
'r the West—notably
w,
t
,,f.
of in
1h
the case
ning to move into Western mar-
prices well below Western
In 1958, oil exports from
kets at
levels.
lized
underj
"our neonle
fiice
Communism
the
pur¬
irignien oHr a n
suit of power.
thO
United
The
;
States, by far
the
strongest i
risks t Of
:
■
to
resort
a :
'.which
European
include
now
former
did ancient
from
and
and
seasoned
been
Boll
v.
Elliott
are
of
NATO
stand
Athens
modem J38®8*: Umt^ ^States bombers,
loaded
hydrogen bombs,
I would like to discuss the eco- crulse 111 the an*.
riomic asuects of this great power
We have, up to this point,
struccle that is going on between thought of the contest as a race
cmrw Uiiccia and ourselves
to maintain at least military
..
^ fh
r«rinflift Parity—'the capacity to deter atine nrst Pnase oixne ..cuiuum.
in the way of SpartaV or
Britain in the way of Germany,
.
T.
by massive retaliation,; But
tack
-—tne
rhat
postwar
phase
Protracted negotiations,
When a technician is needed,
the Soviet simply plucks a qualilied man out of whatever he is
in lpf. him
f?n
America
dominated Rcre
.
nuelear
the
staleinate
<
graphs
vears
persuade his
deceptive. They make 1948
equal 100, and ignore the tremen¬
dous gap in absolute terms that
separated U. S. and .fSoyiet pro¬
are
duction at that time and-that still
us. But to the unioitiated, this is effective propaganda
separates
and could become iiicreasingly so.
in
is Ai
This, then, is the; nature of the
economic challenge to its.
There is no way Ad resolve this
Soviet
seems
into
move
of
aumber
an
Western
but impression.
the definite intention of
Favors
the past three years,
economic . aid. . actually
delivered has probably averaged
less, than $300 million a year, or
about one-tenth as much as ours.
However, the Soviet program has
been concentrated on a few coun-
precipitating panic among producers and traders. Any extensive
methods that amount to
"dumping" undoubtedly will force
theVU. S. seiHously to consider
establishing p government trading tries,
.
especially
on
does
J
tactics.
foes, alike, .were in aire neea or
pe^es w^h capitalism in terms of
econ0mic growth rates, aid to underdeveloped countries, and trade
houses. They desperate y
our
help just to be able
tones,
needed
the world market
jn
Lately we have been hearing
honeyed words on U. S.Soviet trade from Russia's First
Deputy
Premier, Anastas
Mikoyan. Well, let's take a look at
some
places.!
places.!'
;
I
with
raids
run
the
threat of
markets,
on
hit
we may,
have
suggested, have to be
to confront Moscow if
necessary with power equal to its
own, mobilized as in war through
a
government - financed trading
corporation.
as
prepared
the United
duces more technicians
deal
To
„,
counter
To
the
Soviet
aid
and
trade program in underdeveloped
the prospect oi political dividends
:
-
FederaJlji' I inanced
Agency
and
Over
breaking the; price structure and Soviet
i?.se of
the Russians.
increasing have completed their work. All
not this creates a
most
favorable
markets
jllst to earn foreign exchange
Communism com-
wiiere
ground
ersiwii 1.
ana
nienas
our
Soviet and American
production -since 1948.
of
The Soviet line shoots up and ours
rises gradually. True, the graphs
at-.,.10'.ue b£ 'I10.,' eC ' „ L L nothing to resolve the struggle.
,
••
, looked good.
;
V;,':
with the
shortages resulting 1_
jj merely shifts the war to new Facts versus Miyokans Honeyed
(^e Soviet economy grows,
TnPWes?ern Eu" <5rounds — the economic battle. - • ■
Words , . ;
and its educational system proinession
years,
ill
wesieiXI
rope,
itjAl
aireadyi;al*e
Calcutta you can see large posters
in store windows which show
perioo^ias enaea. -t sj10Uld be clear that maintain- corporation! to counteract Soviet Arab- Republic and India, where
was
in Latin
well.
preparing the ground for just such
a shift.
Today in New Delhi and
then nersuadp him
Bhilai
because
as
Tiie communists
to India, where Russia is building a
is rtot ' always
and Africa, but
Asia
in
industrial
&hen pervade persuade him
hb ~y'
to let him go, then
bound to*, the Russians may ovei* his job when
wep
strengthened,
perimeter
a
has
alliance
NAIO
The
armed.
' A''
contest except by,^\yinning it. To
likely that as province. Every Soviet engineer Win it, we must ifveet'-the Soviet
temporary surpluses develop in and technician works side by side challenge all along'the.Tine. A
new Seven-Year Plan, as they with
the Indian who is to take
^nd
cage
^s> ^^eenArestored and* re*
,.
/tofort^.'ir£ndy;i^
pay /for. goods
West.' But that -
^allies,
our,
surpluses,
agricultural
dramatic visits at the top level,
sPeedy agreements reached in a
blaze of publicity, and avoidance
j
toreiga-exchange needed to., steel mill, Soviet technicians re-
«»TO
naked force today are prohibitive.
Western
capitalist* J na- W.
tion, stands; in ;:
her wayi><TuSt
so
v
'
l
local
oi
a
to have 110 other PurPose thajl
postwar
'
huge,
rapidly growing, disciplined econ¬
omy presents a challenge to:the
they may have extracted greater U. S. and to the capitalist system
cre(jjt for their slender contribu- generally. If our present advan¬
tions
than
we
have
for
our tage in production should really
greater ones.
shrink strikingly, I fear that many
They have done this by low in¬ countries will be watching for: the
opportunity to shift their
terest rates, easy terms of pay¬ right
ment, willingness to help dispose allegiance from the West to the
,
u
.
East. That would be true not only
industrial materials- areand seem abstemiously, in accordance with
handled-' local customs. Thus at Bhilai, in
businesslike basis
on
the
The very existence of this
In amount their aid is far less
than ours; but by shrewd distribut,on an<* maximum exploitation
Moreover, their technicians are
In some cases, Soviet sales of required to; live modestly, even
■
for
im«o,dont
in
growth
period.
play hob.
nossible '
if
-ind
XXr:+u
„
of
rate
'
,
.
important
Western to go, and finally
economies, Soviet dumping could wife to let him go.
signed primarily
.digned pi imarily for psyrhnioeirni
psychologicaj.
to conand propaganda effect
nation mobi-
....
early sixties. With the
de-
he nlentv
be plen
ThPre will
There will
dents."
huge-
a
.
role oil plays in modern
phase of the world conflict is end¬
ing. I do not, of course, mean that
there will be no further "inci¬
up
to now.
the Soviet,
Union, 1 you .
In
have
j
,
military
primarily
this
Now
.
'S
g2 ? «££&
tal^entleianauuji. the threat of
backed by
massive
Russian Foreign Aid
6il is begin-
Now
aluminum.
of
kets
in^one'of ^hose g'ret^strug-
today
gles for power that are the esIS
sence of the human story as It nas
been written
*
aid to
trained in
must maintain our
where they contrib¬
ute to the building t>f essential
public services, such as irrigation,
countries, we
aid programs,
and
power,
prefer
to
see
transport.
I would
more of this done
foreign languages (and no doubt through international institutions
some
of them
as
intelligence such as the World Bank and less
agents) Moscow's aid program un- done by the U. S. Government in¬
doubtedlv will be enlarged both stitutions such as the Development
doubtedly
m terms of the credits granted Loan Fund. I would also like to
and. the areas covered. Africa may see the largest possible role as¬
well become a prime target. Latin signed to private investment A;,
restore our own
economy
to a that remarkable candor that dieAmerica already is the object of
Must Maintain Our Own Growth
peacetime status and to help our latorg sometimes use to confuse
Soviet efforts;'
Western European iiiends to get
(fgjjiocracies, spelled it all out in equipment—along with - chemical
And make no mistake about it: A Finally, to meet the Soviet chal¬
back on their feet, Soviet Russia
speech delivered shortly after plants—on credit. In view of the The nations that accept aid from lenge of growth we must continue
aluminum episode, that is an in- the Soviet Union are genuinely to
achieved an extraordinary success
grow ourselves.
If the U. S.
Sputnik I
in exploiting the misery and chaos
teresting but hardly very attrac- impressed by achievements of the economy maintains a vigorous and
V
< ;
live proposal.
left by the war.
U.S.S.R.
For Russia has made sustained rate of growth, there
Recalls Production-War Threat
sustain
to
life.
there may be no
doubt about the Communist thai-
.
While we were
order that
In
busyf trying to
By one device or another, the
established
them-
Communists
Premier Khrushchev, with
that trade. One of the items on
hie Soviet shopping list is rolling
equipment for non-ferrous metals,
The Russians have even suggested
that they might buy this kind of
"We declare war," he said. "We
will
win
over
United
the
States.
China, Poland, Czecho- The threat to the United-States
Slovakia,
Hungary,
and
other is not the ICBM, but in the field
Eastern European nations.
They 0f peaceful production. We are
made i probing
attempts
against relentless in this and will prove
Greece and Turkey.
They tried the superiority of our system."
to drive us from
Berlin.
They
it would be easy to dismiss this
launched
the
Korean War,
the as pure bombast—easy and dan-
selves
in
This simply
dom
of
an
underlines the wisthat Under
opinion
highly effective propaganda use
0f its third great weapon, its rate
Secretary of State Douglas Dillon 0f industrial growth. In India, the
recently offered on the; V. S.- Middle East, and 1 many other
Soviet trade question:
places, Soviet agents are now
"It seems apparent," he said, pointing to the record of the past
"that the U.S.S.R. desires to incur 10 years and proudly proclaiming
a substantial import surplus with that in another
10 Russia will
the West to be paid for in instal- outgrow the U. S., that it will eX=
will be little in Moscow's threats
that need frighten us. For growth
in the U. S. will not only main¬
tain
over
the advantage that we have
the Soviets in production; it
will stabilize the markets and the
economies of the whole free world.
One
thing is clear in "the strug¬
us: We cannot con¬
gle that faces
template
remotely
setback
economic
any
resembling- " the Great
Depression of the 1930s. Such a ca¬
fensives
against
Quemoy
and
they
confront us
new
threat to; force us
Now
Matsu.
with
a
from
Berlin.
^
All this
call the Cold War,
we
inappropriate name. The
aggression whereby Russia conquered vast territory and subjugated millions of people was,
in fact,
accomplished primarily
by force and the threat of force,
a
It
rather
in the
drenched
was
blood
of
countless innocent people.
made
of
a
possible
huge
that
had
after
the
had
our
the
by
Russian
of
demobilized
the
military
own
machine
war
been
not
defeat
It was
existence
Axis, as
establish-
ment, and by the fact that, neither
would public
at home nor abroad
opinion
supported
have
of the atomic bomb
viet
aggression.
Our response
—77~
aa
k
Executives'recfub
our
use
to resist So-
«*_
of
fk
«ol,
Chicago,
Digitized 30, 1959.
for FRASER
nomic
an
in.,
Jan.
new
that the United States and the
other industrialized countries of
the West have, in effect, been
easing of the armaments race, invited to finance the
On the
continuing
the Soviet
economy
in- new fields—in exchange for deferred payments of
raw materials which are, by and
large, competitive with free world
expansion
of
contrary, the expansion of
the Soviets' productive capacity
makes it possible for them to
compete more intensively than
ever in the development of weap-
rapid
that are new, deadly, and
enormously expensive.
A
Remember, also, that the mechanism of production and trade in
the free world is by
its very
nature
sensitive to shocks and
production."
The
Russians,
as
we
have
learned
to our cost, play for
keeps. And they do not hesitate to
use every trick in the book to
give
themselves
an
advantage,
This shows up in the way they
use the
second weapon in their
economic arsenal — their aid and
trade offensive
in the under-^
developed countries. In India, they
have made a tremendous impression with their steel mill and
ons
vulnerable
one
to
who is
creating
building
sabotage
Here
by some-
concerned with
more
confusion
markets
with
satisfying
than
and
* *• '
customers-'
are some
'
of the important
against
us
can
surely will take.
power of the world.
That may sound like
bunk to us,
but the Soviet system is a going
concern. Whatever we may think
of its brutalities or inefficiencies,
it has become — to much of the
world at least — an alternative
system to our own. In many
underdeveloped countries, Russia's
industrial advances under Cornmunism seems to have far more
relevance to their problems and
aspirations than our own, more
gradual, growth under free enterprise.
We all know that our position
in the world—the very fact that
obstacle in the path
of Russia's desires for world conquest—is due to the fact that we
are the most productive nation in
we are an
the world. But for some years
and almost with other industrial projects. In now, the Soviet economy has been
handling these, they show great growing at a faster rate than ours.
forms this Soviet economic offen-
sive
......
to the Communist
first of
all,: that
emphasis on an ecooffensive does not imply
Remember,
Russia's
skill.
Even after squeezing all the
particular markets, designed to
One thing that has come as a water out of Russian statistics, we
create disruption or, perhaps, just surprise is that the Soviet Union, must grant that the Soviet econ¬
First,
hit-and-run
raids
on
mean ruin for the
depend -on us for
tastrophe would
countries
that
It would make it easier
markets.
for the Soviet Union with its con¬
trolled
to overtake-and
economy
surpass
us.
.
The immediate
prospect is reas¬
suring.
We have come through
three recessions in the postwar
period without at any time en¬
countering the threat -of a. great
depression.
Currently, we are emerging from
a sharp but short setback. It is the
general opinion, which I share,
that
the
recovery
movement is
likely to continiie throughout 1959
and quite possibly well into 1960.
We are approaching a national
production rate of $500 billion—
half
trillion
a
dollars
—
a
level
which should be attained by some¬
time next year.
We
to
need
make
sources,
we
are
not
better
only to-grow .but
use
of
mir
material and human.
to meet
the
Soviet
re¬
If
chal-
Volume 189
lenge
ter
Number 5824
shall need
we
trained
more
.
.
.
The Commercial and Financial Chronicle
and bet¬
from
scientists,
engineers,
mathematicians, and highly edu¬
cated
people in
train
our
We
to
need
all
position
to
give
fields
of
to
We
re¬
leadership.
more
with
of
problems
of
more
our
gested cities,
people
of
Communist countries.
For
cut
war
under
the
the
Two With Grant Fontaine
it will
(Special to The Financial Chronicle)
OAKLAND, Calif.
Miller and Dale A.
ad¬
eventually destroy the enemies of
been added to
We
the
Fontaine
can
accept the challenge and win
ground
from
people, the enemies of
and
free¬
dom.
Ervin E. Stein Adds
(Special to The Financial Chronicle)
/
&
—
SACRAMENTO, Calif.—Aubrey
the staff of
Grant,
V.
Korves has been added
Street.
Company, 1414 Broadway.
-
'•
M:The crucial
questiph-
is: '-Can
society,' "* with
a;
^basically- freb
a •/'
^piivate economy that still does the
^Overwhelming share " of the : na¬
tion's work and a central govern-'1
{
vment.
that" provides : relatively^
•limited planning and control—can
such
a
society solve these prob¬
increasing growth, main¬
taining stability, and allocating
lems of
to
resources
.buses':
the
most
necessary
effectively
:/ controlled;., disciplined ■
Mike the Soviet Union? •'
V pf coarse
iWe
be,
than
more;
;/"•<
we
shall
we
;
economy
believe
we
must J; But
\
a
can.
have
-
to
to change, to new ideas:
open
^There is
no room for complacency.
ItUvill .not.be enough to do as
well
as
have
we
years. ;; We
done
do
must
example; ~ One; .of
in
recent
better.
For
baffling
rapid eco- >;
nomic; growth
while
preserving '
-reasonable price stability.. As our
economy, has developed thus far,
problems
full
our
is achieving
.it appears
though/growth and. V
as
employment
are
inexorably
inflation.
-7 <
accompanied/, by
.
.
Solving Price-Growth Dilemma
Up until,
now,
we
have
singu-
•
larljr;failed to solve this dilemma, */
Id! combating inflation, we have /
relied wholly upon the traditional/-'
,
of
means
monetary policy
striding the growth of the
re-
-
money
supply and boosting interest rates.
/ stereotyped
anti-inflation 7
policyhashad
the/.inevitable
This
j
.
effect of curbing economic growth,
even
of inducing recession; but
has had
.
/
no
noteworthy success in,
halting inflation.
;' ;
.
.
,
Clearly -we •! need some " new
thinking in" this area. It is. impos-
;
*
sible
that
to -accept
we
ri; In
this
tackle
the1 proposition
cannot do better than has
been done.
.l
'■"
*
connection
the
problem
we
of
need
to
keeping- ".
-1
wage advances in reasonable relation with productivity. And we
must also seek ways of reconciling
the conflicting aims and aspira-
1
/
.
tiohs of other groups in this coun¬
try, without producing inflation- /:
ary solutions /that then produce'
growth Arresting
;
-
government*^ and
*
a 6 lion's: by '
themonetary
authorities;My%,■£.i -y
All
-
ibis
-
will-
require'
an
im-
~
provement in public understand¬
ing of what the economic war Is
all, about. In many ways it is
easier to rally intelligent support
a hot war than for a cold one.
for
It is
need
even
In
easier to dramatize the
for sacrifices
1958 Columbia Gas System served
to
support an
uncomplicated arms race than for
with
an
overall; widespread economic
struggle for survival. But, with
,
determined-leadership from outstanding men in public and pri¬
vate life, I believe we can solve
our problems.
more
natural gas
In 1958, more than 3,000,000 homes and businesses
needed
'
f In
more
than 700 billion cubic feet of gas
provements, and contracted for billions of cubic
that
feet of
is
the
envy
of
the
Columbia— 57 billion
this total
To
a
world
flexibility
certainly that the tide
of refugees has moved
from
East
our
way—
Germany to the West,
new
house
Among
potential
heating customers.
these needs, Columbia Gas invested
new
new reserves
construction and property im¬
in the
before
industry^
Appalachian section and
1
To learn
ment
in
source
of Columbia's
more
continuing invest¬
service—along with financial details—write
for your copy
THE
of ethane for the petro-chemical
of
our
1958 Annual Report.
•.
COLUMI
SYSTEM, INC.
Late in 1958, Columbia Gulf Transmission Com¬
and
pany, a new
state
subsidiary, acquired the Gulf Inter¬
pipeline, to help
southwest gas to serve
institutions that the people of the
world desperately long for. It is
; no accident
58,000
than in 1957.
ever
people
the Southwest.
vitality that no programmed,
planned, centrally directed econ¬
omy can hope to achieve. And
above all, it has given us the free
.
meet
$82,700,000 in
—including the Communist world
that is trying so hard to equal
it. i Through
the years,
it has
demonstrated
were
more
than
more
operations during December, 1958, producing
propane, butane and natural gasoline. It is also a
from
dwelling on the nature of the
Russian challenge and some of the
apparent strong points, that our
antagonists have in this struggle,
I am not forgetting the fact that
the American republic has been
a
highly successful institution in
the nearly 200 years it has been
in
operation.
It has given us,
after
all, a productive system
assure
additional supplies of
growing customer needs.
COLUMBIA GAS SYSTEM SERVICE CORPORATION
^
COLUMBIA
120
Columbia
tion
Hydrocarbon Corporation's fractiona¬
plant at Siloam, Kentucky, began full-scale
HYDROCARBON
EAST 41»t
CORPORATION
STREET, NEW YORK 17, N.Y.
CHARLESTON CROUP: UNITED FUEL GAS COMPANY, AMERE GAS UTILITIES COMPANY,
ATLANTIC SEABOARD CORPORATION, COLUMBIA GAS OF
KENTUCKY, INC.. VIRGINIA
GAS DISTRIBUTION CORPORATION, KENTUCKY GAS TRANSMISSION CORPORATION...
COLUMBUS GROUP: THE OHIO fUEL GAS
,
to the
Co., 360 Twenty-first staff of Ervin E.'Stein Investment
Hng transportation system;;.our
Jvyater resources, 'f
-
Gilbert M.
Dopkihs have
con¬
choked and fail-
our
turn this economic
the
our
own
to solve the
decaying,
can
Russia
even
vantage of the entire world.
our
people—both physical and mental.
We need to do
world,
everlastingly to
advantage and to the
resources
improving the health
Hungary
to
the
West— the contest. Our victory will be
people could escape to one that we can share with the
whenever
freedom.
21
(989)
COMPANY, THE OHIO VALLEY GAS COMPANY
...PITTSBURGH GROUP: THE MANUFACTURERS LIGHT AND HEAT
COMPANY; COLUMBIA
GAS OF NEW YORK, INC.. CUMBERLAND AND ALLEGHENY GAS
COMPANY, HOME GAS
COMPANY...COLUMBIA GULF TRANSMISSION COMPANY...THE PRESTON OIL COMPANY
22
The Commercial and Financial Chronicle
(990)
Continued from page
help defend our economy?" Al¬
though it is probably presumptu¬
ous
of
me,
here
are
a
few
12
Support oi Businessmen to
Help Defend Oar Economy
Congress, "Capitalism is hav¬
cow
cold
could
war
weaken
so
torium
which
economy
really progres¬
sive system—socialism."
"Progressive?" To whom is he
talking? The American factory
worker in January earned an av¬
erage weekly wage of $87.38. The
average weekly
wage of Soviet
factory workers, including engi¬
neers
and technicians, is around
rent
ing its place to
to
deterrent to
a
$18.
"crimes
for
As
against
man¬
the Soviet slave labor
camps and the wholesale revival
of slavery in Red China are the
jest evidences of how progressive
kind,"
Communist system
the
its
A basic fact to be
in
be in
can
for human welfare.
concern
kept in mind
comparing the Communist eco¬
ized
challenge to the pace of our
economic expansion.
We
gress
future
also
Communist-
two
confront
current
strength and that of the future.
threats
created
to
the
The first is
our
Soviet
new
eco^-
nomic offensive—a serious menace
which the general
yet appreciate.
The fact that
shooting-war
a
be less disastrous.
recently,
world
generally was in historic
profit patterns. The sinister
novelty introduced by the Krem¬
very
trade
lin is the use of trade solely as a
political weapon.
The Kremlin
campaigns to disrupt world mar¬
kets
web
cost
into
commerce.
and
its
seemingly
the
by
innocent bait of
below
nations
entice
and
political
dumps
It sells
goods
to
destroy the market of those who
in business for normal
are
It
can
undersell
controls
slave
because
labor.
It
profit.
Moscow
is
not in
business for business but for
eco¬
nomic warfare.
Let
cite
us
tons
V
intended
an
I
sn^t
to
heeair-e voi r m n
idea of
because your own idea of
ol
tics for spending may differ
Search
estimated to yield.
nation
richest
the
If
richest year
cannot
its
pay
it
can
ever
earth
on
the
goes,
be solvent?
You
will
perform an urgent
public service if you help public
understanding of the need for a
balanced budget and for reason¬
stability
which
is
dependent upon it. Extra takehome pay becomes a frustrating
able
price
it
when
illusion
devoured
is
recognizing
in
and
nromnt
Re
in ?their
enterprise
free
defend
Communists
'
.: v
,
discussion
with
nhrn-id op on
abroad or on
visit nere.
visit hore
by
Sixth:
.
,
active
part
building public understanding
in
a
moie
protection
of
examples.
in
1958
from
rose
12,000 tons in 1957 and only 189
tons in 1955. The
1958
export re¬
cost-of-
a
living escalator clause—payable so
as the contract holds or the
employer avoids bankruptcy. What
of
the
rest?
The
white
collar
long
/."double-crossed'"
W.
Babson
I
/
Ger
,
Since
...
Street, Gloucester, Mass.)
the Germans met de-
Middle
after
|n \yQrld War
tive
mounting
cover
living costs.
<
The wage-price
spiral strikes
a
double blow at every worker en¬
abroad:
his family
budget is
a
a
us.
prices for goods we need to ex¬
port eventually force us out of the
market. Cheaper goods produced
to
once
the
take
overseas
was
M,en
ours.
markets
that
business
their
lose
lose
we
our
in
acting
of inflation
quences
on
the future
of
ageing
visit
recently sent to
/:•'*'./• «/"■•'■'
v
means
x
„
„
„
of them.
than any
Eberstadt-White, Weld /
Group Offers James
/
Talcott Common Stock
underwriting
An
man¬
group
aged jointly by F. Eberstadt & *
Co., and White, Weld & Co., of-/
fered for public sale on Feb. 24 a
new issue of 150,000 shares of $9
great
recent Berlin -.ultimatum, as par value common stock of James «
lonS as she fears China at her Talcott, Inc., one of the country's*
/h^k: /door"; /hoi the Germans oldest commercial financing +and*>
wIU not -wait too long./ .They qre -factoring organization s. The stocky
hi
in
action
lakon
our
legislative-v bodies,
battlefields
the
national interest, also can acquaint
the public with the tragic conse¬
was
teg®■ t'" wn,,r*To° r*.
to
-Russia will .want to postpone
the
and
have
communities
our
fingers :
her
/
to what the final" re-;,
be. « Charles DeGaulle
and: even on
when the chips were
wo
/'./
down.
overseas.
Businessmen,
danger
•
-
large slice of Berlin itself. The
• are
determined to " get
koyan
people in the past have
resulted from lack of !a
it
as
Germans
usually
a
tribes,/" with
will
"
<
Develop
American
■wort
Africa,
xx.xxxx.aj
to
the Berlin pro-l
;bal-
hit by
rising prices and his job is
endangered.
Continually
higher
-
crossed
I, Hitler rallied /suits
gaged in producing goods that are
pay
,/■-/
.
,
gram. v; This, is why England . re-p
tired gradually
iJf+he brbe^
Great Britain is now m the proc-<
.ess * of .turning
t •■
territory in Africa over to the na-f .
sold
longer
no
their
when
lose
V
than ever convinced! J
my recent
my; recent. visit
vjait
and Great Britain will be glad to :
aid Germany when she strikes
Republicans _iand Democrats ill •
.u
x
Washington should stop fighting
between themselves; but watch
Berlin and trust President Eisen- f
/ / a traitor to Germany, buf has se
thick skin, cured one-fourth of Germany and hower, who knows Europe better /
be heard.
Seventh:
more
'
-
___
this" back. / The Russians, figure?
prise and sees presto-magic only that if they can
get England,/
in excessive-spending and the ex- France, and the United States to
pension of government ownership /withdraw their troops,. Russia can
and. government operation/ / - /'- - peacefully - absorb
Berlin,
and
Our historic progressive pattern; perhaps later all of Germany-.- As
is
still
sound. Mistakes of
the a first step in this campaign, Mi-
checks
am
af-j//
saying I am J.
when
bullish.
40%
Roger
much
mind
in
fail
,
have thei
as
us
have this Berlin
I
Russians?
'
:them again to fight for the same
cause- "Pari Germanism": as•* they
ance,price stability maintained, Gallecl it, presumably with Rustno
anr)
npaltnv
'
J
the dollar protected and healthy sia's
help.
growth encouraged. Let your voice
£U£ Russia has not only -become
suit if the budget is kept-in
impervious
to
accusations
and
worker, the school teacher, the criticism from the element which
mailman, and all others on fixed distrusts and despises free enterincomes
keep
might/ need// We cannot forget ,
Germany's hideous and barbarous^
crimes under the Hitler regime'/^:
but have the German people ever •/
gationof Kaiser Wilhelm, pushed
south - to the JVIediterrangan £ea.
(As U reminder of him,, I have
the steering wheel of his private
yacht at my homestead at 58
goon
to
benefits to,re-
5; widespread
,
out of every 17 in the
civilian labor force has the tem¬
one
Take
but would be content™
the Germans well supT. plied with atomic or hydrogeiji
bombs /and
anything else the>%
bombed us,
'
The Germans, at the insti-. that the above is
mans.
■action / of
the
>
onerous
American labor leaders when they
unstable and rising prices.
Only
"bomb
where
bassy,
/I saw
of the
Alj^
a! war, .we would not
" Russia, ' unless
Russia^
such
in
be
United States would/.
the
though
Russian Em-/
business
surner.
Fifth:
finally^,
would
unism lor another 40 years,
n
mother:
her-
equally
—and think twice about the con-
it
as
Think
well.
in its history
way
*
Germany
allies.
•
costs
rising
\
Germany—and with hetk|
sia and
and
Mustard
about small
absorb
not
A
was a
.
into
down
I had an office
Berlin.
know
40% bullish.
correspondent for the New win. Wall Street believes^ iha(,f
nrio^-t York "Times" and my daughter this, wouldr.be the end of Com-j c
puon
prRah„n.1
conservatives
the ranks of
and
there before World War I. I also
temntation
the
Resist
Wond-
Third;
jobs at home when
few
a
Soviet exports of tin to the Free
World
of
approximately
18,000
metric
is
bearish
market, he explains why he is 60%
stock
....
trade-war is less
does not mean its outcome would
Until
between
the
junior echelons of your own. or-/ uved'■:in:: La- V•
ganization for ideas on means to cerne, .Switz-.
months
of
careful
weighing of cut costs, or to develop new tech- erland, while
I
traveled. '
priorities, the President has pre¬ niques and new products./ ://./
sented a budget that meets mili¬
Fourth:
Think
of
the
public throughout J.
tary and civilian needs.
Deeply welfare before agreeing/to un- Europe. Later *
bound up with the stable dollar warranted
wage
demands. 7 Big we owned a
and
an
expanding economy are business, in particular, has an h o m'e:'"fi,n/J
the
attempts to unbalance that extra-mural social obligation to Washington, ;
budget — to oppropriate more small business whose difficulties on 14th Street f
money
than present
taxes are are greater because often it can- adjoining the;
are
porary
a
than
dramatic
public does not
will be
and
President's
about
thinking
believes the next World War
Russia and Germany. In discussing Berlin
and other matters, and
us turn to problems
made at home.
After
let
Now,
which
when
Con¬
pro¬
any
expenditure
the
beneficiary.
tional defense.
billion; that of the U.S.S.R.
about $180 billion—if you want to
So much for the Moscow
is
prosperity
national
Continued
essential to afford continued na¬
in the
believe their statistics.
measures
in
locality
your
modern¬
weapons
and
are
invented.
newer
as
counter
nomic system with our own is that
our national product in 1958 was
:>437
For this deter¬
war.
Berlin
Germany's
Western
Babson .examines
Mr.
budget, even if your industry or
be constantly
must
for
Federal
not
are
By ROGER W. BABSON
:
a one-year mora¬
support
on
for
grams
our
that it might not be able
continue
our
great
defense
difficulties in staying afloat.
It will sink under the weight of
its crimes against mankind, yield¬
ing
Declare
First;
Thursday, February 26, 1959
.
.
the Stock Maiket
an d
Beilin
suggestions to consider—a sort Of
practical seven-point program of
personal action.
i,
.
'
;
//
In Abraham Lincoln's matchless
let
be
us
the bravest and strongest people is priCed at $31,37;^ per share./
hi Europe, If . World War III ,r The proceeds will be added; tQ;;?
this;.heaHeh-.:-g°Ws-'V^rwi^/"b?/ started . from general corporate funds. The inr;.
/•. ' - /% Berlin. The Germans believe that creased capital base will broaden <
words, let me leave
ing challenge:
"Neither
her
slandered
ill be ^bacjted secietly by the concern's borrowing capacity,-^
theyf
the Czechs,
false accusal ■
^S^ry^/Bulgarm,
, which will, in .turn,-, permit the *
a
world price drop of
persons.
More than
15 million tions against us, nor frightened an<^ aU
handling of a larger volume ofr
roughly 8 cents to 10 cents per Americans are covered by retire¬ from it
by menaces of destruction
business. • . /
s,
%t
pound.
ment pension plans. Inflation will to the government.
Let us °Y T
these,, ^..buffei?..-,.- ajuntnes,
Established in 1854, James TaLj ;
Soviet shipments of
million slash the purchasing power of have faith that
right makes might,
cott' Inc » supplies funds to con7/
tons
of
petroleum products to retirement
income.
Americans and in that faith let us to
wiu cerns in a large number of indus-^
Austria are apparently designed own more than 260 million life
end dare to do our duty as we
war lH
if
Jt comes'
tries throughout the
to create serious difficulties for
insurance
policies
bought
with understand it."
V.
®
pr when-it comes.,,
enabling them to make maximum.f
the Australian petroleum industry.
\
/'•
;•
Russia pretends that her. great use
their facilities.. The comr
savings. The widow and children,
sulted
security "of
millions
from
our
duty
by
in
^hy wihI Tire- her atomic bombs
.
.
.
United States,/
o^when
.
„
We
all
are
familiar
with
the
sale to the West Germans by the
Soviet —
Czechoslovakia — of
Egyptian cotton at 10% less than
the normal Egyptian price.
Even
more
glaring
are
the
whom
for
vested
the
husband
had
in¬
these
savings,
will
be
crueily, robbed of expected se¬
curity. These are. the innocent
^ (special to the Financial Chronicle) ;y
SAN
If we can protect healthy eco¬
nomic growth from being under¬
period 1955-1957 their alumi- mined
by « inflation;
we
can
r urn
exports rose to some 81,000
anticipate unprecedented oppor¬
metric tons from less than 1,000
tunities for employment, produc¬
short tons in the four preceding
tion
and
sales
in
the
1960-70
years.
This
was
dumping
at decade
just
about
to
begin.
lowered prices in the face of an
Expanding population, new family
admitted domestic shortage.
formations and increased inven-.
with
Soviet bloc sales of aluminum. In
ton,
the
the
Legitimate trade, facing such
procedures,
needs
new
instru¬
ments forged by government and
private business together. We are
at
work
on
these.
tion
are
tlhis
million
imposed by the nuclear threat.
The budget of the President—the
largest peace-time military de¬
the
strength
utterly
of
adequate
devastate
an
aggressor.
But
the
of
from
$453
billion
history—provides
maintenance
to
grow
National
of
a
habit
in
Product
to
an
an
■
Co.
the
effect
us
turn
to
the question, "What can we do to
the West and China on the East.,
who
has
associ-
in
on" the
formerly with Hooker & Fay and
^
J
"
William R. Staats Co.
main
win
been
business
Gulf
her
Street, members of
investment
the
Russian
been
Keller
added
Brothers
to
the
staff
Securities
Inc., Zero Court Street.
,
of
Co.,
is
today
to
satellites—Or
Washington cannot talk about this, but
those in authority know it. On the
other hand, so long as Russia is
able to destroy Germany with
bombs, I cannot believe'that Geris preparing to do.
would attack Russia; but
this I will discuss next week. All
depends upon whether anti-mismany
In
a
and
available.
are
the
recent
Stock
Column,
Market
I
*,
stated
40%
My
main reason for being 40% bullish
is because I believe that the next
World War will be between Rusthat
I
bullish
am
on
60%. bearish
and
the stock market.
/ :
/!
Total
Talcott
r
■
>
receivables
in
record $846 448 000
j
set
-
amounting
from
the
Net
company
a
income/
record.1
$2,265,171, up 30%:
$1,747,807 reported in
to
the previous year.
ings equaled $2.63
-0„1>10
compared with/
1957.
in
$748 364 000
processed by
to q!?
amounted
1958
Tn a
buffer states, so called. This, Ger-1
'many
Berlin
(Special to The Financial Chronicle)
BOSTON,
Mass. — Ralph
L.
Greenberg and James D. Mukjian
have
ta
and
objective
sile. missiles
,
n'at
get
indirect
control of Turkey and India; but
Henry F. Swift & Co.,
Anderson,
tA'
Germany would like to get to the
Cal.—Alonzo
become
iitahIh. Iilrn
time sales financ-;
industrial
ing
,
I repeat: Russia fears Germany on
floi'montr
1
Two With Keller Bros.
unbalanced budget and
dollar, let
—
$620
future growth and free¬
eroded
formerly
was
Pacific Coast for many years, was
^
examined
with
has
the
Advocates 7-Point Program
upon our
Anderson
Mr.
The
should
around
O
&
Coast
the Pacific Coast Stock Exchange,
current annual rate
billion
Exchanges. He
T""\
490 California
to
—
1970.
Pacific
SAN FRANCISCO,
W.
by 1970.
Having
dom of
cultivation
of unbalanced budgets in the long
a
morning
and
(Special to The Financial Chronicle)
figure—it was' estimated
Bureau of the Census at
214
York
Anderson With Swift
of
and
ical pro-labor party in the United
States—but not by destroying us.
become
Persian
ated
175,899/708
Gross
The second hazard, of course, is
indications
Mitchum, Jones & TempleRuss Building, members- of
Stock
Population should rise from the
current
around
Budget
fense budget in
sure
filtration—and the help of a rad-
New
! 11,
merely window-dressing.*. Russia
would like to take us over by in-
affiliated
has
with Dean .-Witter
what lies ahead.
by the
Nuclear Threat and Unbalanced
for
the
FRANCISCO, Cah-rr-Vernon
Ruble
J.
victims of inflation.
sssaBtorsus
Now With Mitchum,
Per share earn¬
a share on the
,
,
-in{(
If
on
787,148 shares outstanding
P0e^f
,r
'
trC
f~61 a share on 596^584_shares^.in.
^
i:
s10cQ.
dividend paid in December 1058,.
ear'nlngs ia
J w
navp.
.
equaled $2.37 a share.
Cash dividends, paid in every
year since 1924, are currently at
the rate of $1.32 per share annu-
ally. Stock dividends of 10% were
paid in 1950, 1953, 1956 and 1958.jq
In
1958, Talcott acquired the
commercial receivables of Credit*;
America
Corp.
_
(N. Y.), all of the;
capital stock of Lexington CorpJ
(Boston), and a $5,000,000 port**
folio from Merchants Acceptance^
Co. (Chicago).
a|
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
f
'
/
.
IYSE Members to
Vote
.•5100
approved
(The basic
more
Exchange
amendment
an
tvo
revisions
minimum
in
Under
2% plus
the
and
the
$6.00
minimum
,
.
recommended
of
$1.50
per
share,
involving SlOO
J. Maxwell Pringle
,
..
or
Broadway,
in
engage
,
New York
securities
a
are
J.
Mr.
with
Stern, Lauer & Co.
City, to
business.
Maxwell
and
fher—with
Frederick
Brown
Northeastern
ration
of
with
of
out¬
handling securities commission
business.
vV:-
\
..
C.
Paul
Duncan
J.
King,
A.
Harold
Ryan,
son
Avenue,
Officers
dent;
Meenan,
Jerry
in
a
New
Frank
Karasik,
Both
Secretary*
formerly
Planning
Empire
Corpora¬
.•
;
to
Special Exchange
action by the Board in March, the
."Schedule
was aoproved by a vote
•of the membership in April, 1958,
and went into effect May 1,* 1958.
I* April, 1958, the SEC announced
to
study the: commission
schedule proposed at that time.
plans
nThe
revisions
/
and
raise
others by:
on
( 1)
j
the
by
commissions
transactions
•on" some
them
approved
reduce
Reducing
missions
minimum
com¬
transactions
on
ranging
from $100 to $2,400.
This would
result in
lowering the over-all
1958 increase from
approximately
13% to about 11.5%.
*'
The
effect
would
be
of
to
the
amendment
reduce
commissions
transactions between $150 and
on
$2,200
basic
by $1.00 — although the
$6.00 minimum commission
transactions
on
remains
of
$100
unchanged.
or
On
more
transac¬
tions between
$100-$150, and be¬
$2,200-$2,400, the reduc¬
tween
tions would vary from a few cents
to a dollar. Over
$2,400, the com-;
mission would be unchanged,
v
(2)
v
Eliminating
"round-turn"
the
'■*.
so-called
commissio
n
<
HIGHLIGHTS FROM
HFC'S 1958 REPORT
on
transactions
completed within 14
The round-turn commission
days.
is
In 1958, demand for consumer
reduced rate that applies on
closing side for persons whose
purchase and sale of the same
security is completed within 14
days. On the closing transaction,
a
loan service
the
the
customer
regular
commission
$5J00 for
an
-
year
<
round-turn" rate
instituted
plus
.
Fifty-six existing
offices were
In
Sixty-eight
lems related
has
to
largely
anticipated
lower costs to member firms.
Jin
approving
the
-
took
,
,*
completely modernized#
new
offices
were
opened,
been located before.
never
For copy
•
of Annual Report,
write Household Finance
proposed
amendment, the Board
'in¬
fifty-four in cities where Household
these transactions
offset
*
expand and improve its customer
facilities.
proposing
to eliminate this rate, the Board
noted
that administrative prob¬
had
its eighty-one-
history, in addition, the
first
was
in
somewhat.
company—recorded
corporation continued to
1953, and called for
&-30-day turn-around period. In
1953, the period was reduced to
14 days and the commissions in¬
creased
finance
consumer
the second best year in
$3.00 for
or
down. Yet Household Finance
—America's oldest and largest
the
charge
round lot
a
odd lot.
f;The
one-half
pays
was
Corporation,
Prudential Plaza, Chicago 1,
cog¬
Illinois.
nizance of the fact that the roundturn
rate
especially after the
May,
1958
revision — had
not
achieved
its
desired
objectives,
and the
was
in
—
m
reduction in commissions
an area
where the previous
increase
percentage
had
HOUSEHOLD
been
FINANCE
larger than the average.
(Established 1878)
The proposed schedule of mini¬
mum
commissions is based,
present,
on
involved
shares
the amount of
in
or
a
an
transaction
odd
lot.
as
at
money
of
The
100
com¬
mission schedule—which averages
about 1% of the money involved—
is
probably
transfer
The
ules,
the
lowest
of any kind of
for
AT THE
1968
YEAR END
—$578,744,199
Customer notes receivable.
Number of customers
1,646,100
.
property.
shown below.
com¬
pleted by March 5, 1959.
If a
majority of the membership has
not voted by that date, the time
for
balloting is automatically ex¬
for,two weeks.
Changes
in the commission schedule, if ap¬
proved by the membership, will
be effective March 30, 1959.
tended
The Exchange added that under
proposed rule it will
announce
$539,987,008
1,625,237
$352
$344
$332
958
Average unpaid balance
890
832
Number of branches.
FOR
THE
YEAR
—
Net Income
.
Net Income per common
share
...
.$22,195,752
$23,932,860
$21,445,518
.$2.53 on
$2.88
$2.70
8,331,946 shares
a
1,686,147
•1956—
the
present and proposed sched¬
for each
100 shares,
are
^Balloting is expected to be
1957-
$579,844,571
on
7,910,370 shares
on
7,525,595 shares
Cash dividend per common
share.
$1.20
$1.20
$1.20
Stock dividend per common
share
5%
5%
5%
In recent years
Household has retained approximately 50% of net earnings, making possible the payment of six stock dividends:
1949; 10% in 1953; 10% in 1954; 5% in 1956; 5% in 1957;
pay
10% in
5% in 1958. It is the present intention, subject to changed circumstances, to
annually a stock dividend which capitalizes a substantial portion of the year's retained earnings.
City.
were
tion.
A.
York
Joseph Nadler, Presi*
are
Cpmmittee in March, 1958, after a
yfar-long study. After favorable
Board would
Corpo^
securities
business from offices at 285 Madi±
Secretary;
Treasurer,
assistance
formerly
Investors
is engaging
Frank W. Fell,
Close, and John E.
Glancy, Vice-Presidents; Lynn H.
side consultants and through dis¬
Hall
and
Gordon
L.
Pattison,
cussions with the SEC's staff—
Assistant Vice-Presidents; Frank
information on member firm costs L.
Brown, Assistant Treasurer;
the
were
Northeastern Investors
Pringle,
.
units; and develop and refine fur-
Walsk,
Pringle, Mr. Sey, Mr. Fell
and
& Co., Inc.
has been formed with offices at 26
or
.
Mr.
ProPosed constitutional change block discount rate
involving President; William F. Sey, Execu¬
commissions or other charges transactions of multiple 100-share tive Vice-President, Treasurer
Bpard were suggested by the Se- further study, - by a special comcuritids and Exchange Commission Imittee, to a so-called volume or
after lengthy consultations- with
the Exchange. An increase in the
Exchange's schedule of minimum
was
23
Assistant Secretaries.
any
ira-\; T^ Exchange said it wilhkeep
rpediately to the membership of th? Commission informed of dethe Exchange for a vote
velopments in the area of comThe changes approved by the Amissions and other charges; give
the Beard by a
2,399—
Officers
-amendment will be submitted
ccjrnmissions
to
commission i!pr .transactions
top minimum"commission
Exchanged sn
rates.
The by the Exchange g Bpard.
the
2"to
plus S3.00
V;o plus $7.00
$2,400 to 4,995—
\'a% plus $19.00
$5,000 and over—1/10'Jo plus $39.00
$400
30 days in advance of action taken
commission
399—
to
Saunders, and William M.
J. M. Pringle & Co.
-Opens in New York
S100—As mutually agreed
SlOO
$75 per round
or odd lot, would remain
unchanged. Also, the odd lot commission will continue
to be $2.00 lower per transaction than the round lot rate.)
has
to
Exchange's Constitution calling for
.
399—
$4.00
1% plus $8.00
$2,200 to 4.999—
Vsr.o plus $19.00
$5,000 and over—1/10</o plus $39.00
The Board of Governors of the
Stock
to
$400 to 2,199—
Commission Rates
New " York
Proposed
SlOO—As mutually agreed
Under
Change in
on
^Present
,
!
(991)
..
^
24
The Commercial and Financial Chronicle
(992)
.
Thursday, February 26, 1959
.
.
\:
Continued jrom page
to be cut by only S3 billion (via
debt reduction) without recourse
to the market—an additional $13
getting its finances in shape and
of keeping Federal expenditures
well within Federal receipts, for
long periods of time thereafter,
The
record
of
the
government
6
$15*<&
billion — but the public's
holdings will be up, this time, by
almost S16 billion!
Government
•
accounts which had been such
large buyers ($23 billion in the;
since the close of World War II and Federal Reserve open market previous 10 years have been unhas not been of that kind.
operations; therefore, an addition- able to buy anything on balance.?:
If we want to excuse this fail- al $13
billion reduction in the Further, the net purchases of the
ure on the grounds that the world
public's holdings ensued. A part Federal Reserve banks were offset*
to reduce the take of taxes from and a quite large one in 1948. is not at peace, we must ask how of this took place in the same an almost comparable decrease in
each dollar of an individual's inWith the 1948-9 recession, the long we can expect to remain sol- way as most debt reduction occurs the value of savings bonds held
idea that we should spend our vent.
come.
through redemption at maturity by individuals.
Or, can we keep solvent
P* •
Summarizing this period, from way back to full employment, et until the cold war has been won, for cash. But, and this is imporThis
shift
from
situation
1789 to 1930, we find that the
l~~1J
J
1
^
1J
*
1
^
Treasury met with surpluses dur¬
ing 96 of the 142 years—and defi¬
Bank of New York was the buyer. of it was bound to have a
cits in 46 of those years. The gen- out but we had a surplus for the
Changes in the Total Public Debt It bought for the account of the
eral philosophy
found
the government first
in
The Decided
Change looming in
billion of buying power was supplied by Treasury debt operations
Government Securities Market
i
it.
Jl
J-
—
>3
1_ «..1 J
.
■
it
_■
A.
_
1
1—
»
m
r
4-
•
.
it,
—.
V
.
k
..
AV
^1
Vw\
m
nvi
«-v
4-
4-
w-v
m
1
V
\tT
1
W
n
1
*
»
1
ft
linl
ft
.
—
of
cleariy
which these were oc-
year
within its income
and it did so '
Nineteen-fifty-two—Korea gothroughout long stretches of years jng full blast—ended in a deficit,
a clip.
Defieiteering was not a too. For 1953 a much bigger one
philosophy of- government. It was was proposed. The Korean war
not a way of life.> Deficits, when ended then but a large deficit was
they occurred, originated in war sustained. Nineteen-fifty-four and
and sometimes, .but not always, 1955 ended with deficits, too—atduring periods of. business reees- tributable, in part, to the 1954 resion or depression.
cession.
We achieved two years
at
'
The record for the remainder of
Another year of deficit (1958) and a
mammoth deficit for this year
has followed. This deficit, if it
may not properly be called the
largest peacetime deficit in our
history, rightly earns the title of
policy.1
The war vears of 1941 through the largest deficit during a year
>46 brought six more years of
1946 broughtmore VMM of whcn the United States was not
of surplus in 1956 and 1957.
history is in striking contrast,
Beginning with 1931 we ran 10
deficits in a row.-And, it seems
fair to say that this was almost
entirely a matter of government
our
deficit.
w
*-..—1.
—-
—-
This
looked
the
close
of
the
war
vears s
it
once again, the
?rCa- agt1?'
f
cits More
setting out to put
*r.
its house in order. The Treasurv
Treasury
--—niiicpo and
met with a modest surplus m 1947
—
-———
1 After
1934)
was
—
—
the
.—*•
Government
paign wherein it
billion
if
a
the
month
dollar
started
a
(in
riod of
cam
ina
.posed
proposed to borrow $1
for
or
live
first
The
ris-
seven
beginning in
_
1933
*
cal 1957, and a third beginning increase in the total public debt held
then and ending next June
was absorbed by government ac- lion,
I start with the end of the fis_
.
,
.1
j
p•
n
luut
took
place
iJlclv;c
l"ulv
via
via
+Vw*
tbe
Victory
^oan Drive' 1 chose the ?r4 of
^sca* 3951 as * en{* of ^bis first
Period »»d the beginning of another because that was a convenPoint at which to divide the
maybe
,
of
to be unbalanced for any,
_
with
plant
1933.
Deficits
that
average
timated
al-
average
12.8
was
clinw
Some
good
properly attributed
ta Government
spend-
ur.
the
figure
again to
for
1938?
It
had
thp
vpnnrrf
Miova
t
and after World War I
moved
ernment
did
the
beautiful
a
gov-
iob
of
TABLE I
The Financial Record of the United
States Treasury
(Showing the number of years — by selected periods —
during
which the Treasury met with a
Surplus and with a Deficit,
for the period from 1789
through 1959, inclusive.)
—
Fiscal Years
1860r_________
—•
1893
—
—
5
1919
For the purpose
Its
of market
9
11
Subtotal
142
96
_
■
j
1941__
1942
—
1946
11
to
do
so,
_
1947 —1959
13
5
of
increases
and
in-
decreases
money
fundamental change,
the
supply, to affect interest
rates and the availability of credit
right hand column of Table II)
to business, to home buyers, etc.
the total public debt will increase
by about the same magnitude as
J:
during the last period discussed
So
you
.1—:
a
may
observe
4U„
(from
—J
let's look at debt ownerships
First, on the basis of the changes
j-,,4UP.
ia
that
took
place during the 10:
J
are
government securities
held by the public and
now
on
So, when I speak
n—x
—
TABLE IH
of the public's
re¬
savings
From
From
June 30,'51
to
to
June 30/51
June 30/57
—
Savings Banks
—
7.5
June
June 30,47
June 30/57
—
'
"/£■
-
June 30,'59*j£
—12.3
—2.3
30/57
to
to
—4.8
1.9
From
From
.
June SO/47
Type of investor-
ft#
.
.■■.rjzZ
-Net Change-
H-
Mutual
of
..
(In billions of dollars)
Insurance Companies
holdings
.
Major Changes in the Ownership of the Publicly Held Debt
individual
3
of the budget, that.!
The impact
is
of the government (the budget)
side of the Federal Reserve Banks
and
government accounts, with
5
•
Major Changes in the Ownership
Of tlie Publicly Held Debt
however,
govern¬
ment securities which is held out¬
11
—
or,:
pros-
with the passage of time.
""
ferring to that amount of
.46
5
_
of
of
holdings of the debt I will be
—
1.
estimated)
amount
underwent
As
.
the
pective financing will be enlarged,
That means the public will be
asked to buy more Government
securities in an environment that
may well be far more unfavorable!
than the one we've been through.-
the total public debt, on debt
on
ownership by types of holders is
quite important. Such changes iiT
ownership bear on the degrees
by which the budget results tend:
to increase or to decrease the
ing due to changing market conditions have been relatively small,
p-
amounts
both—then
,
held is reasonably constant; fluetuations in the amounts outstand-
the
low
securities are outNow let's look at the third pethe form of savings riod, from June 30, 1957 to June
bonds held by individuals.
The 30, 1959-i-with the help of some
bulk of these savings bonds are projections from now to then. The
Series E issues and the total so impacts from the fiscal operations
—from
11
1931
.spending bef*
yond the proposed $77 billion figure or a shortfall in receipts (be-r
„
downward and yields higher,
considerable amount of
its institutions.
3
1920— 1930_
-
up
efforts
an-
government
standing in
that
3
1
3
a
amount
6
17
j
know>
T.._ 1
28
6
1916
1917
*
keep
ernment accounts.
so we
24
'
23
•_
Deficits
48
5
1894—1899
1900
Surpluses
72
1861—-1865
1866
.
maturity of its debt,
efforts
by the Treasury
average
These
also subtract out the amount
of savings bonds held by individmu•
uals.
The residual figure is the
Number of
Fiscal Tears
the
alydsit also is desirable to make •
worthy that after the Civil War a further adjustment. As you forcin2 government security prices
10.4 million.
1789
that
reasons
.
(ho
>eeP its finances in good shape,
rnaintain tllG CrGdlt of tilG
Treasury. It particularly is note-
JSrSd*tiS
was
for
.
Now, the amount of the public were unsuccessful. The average
fnii!.urina cfdhwinnio
rn«!v debt that is held by the general length of the marketable debt
}®Jll°wing starcmeniB oi lactmay pubiic is easily arrived at by sub- was measurably shorter as of June
tracting from the total public debt 30, 1957 than it had been as of
TTiiitoi Zl'niaJthe amount of government secu- June 30, 1951. Of course, this
®s
1° rities that are owned by the Fed- means that the Treasury found it
sincere -and,
takingthings aleral Reserve System and by gov- impossible to run fast enough to
together, a Successful effort to
..unemployment during
miiiionV in 1934—11.3.
portion of the deunquestionablywas attributable
1933
mid-1957
will later become apparent.
Commends Policies Until 1930
hYnm
K
miiiion.
$2
Thus, although the fiscal
•additional
prices," to reemploy idle
and equipment and men
and women.
The Treasury's deficit for
the fiscal year. 1934
was
$3.6 billion;this amounted to 6% of the gross nationai product for the proceding calendar.
year
bjh-S
debt may decrease by $1
billion between
now an^ June 30 next, the Treasoperations of the government (the Ury will be selling a lot of seculH
budget) were responsible for a ties for cash. When it was raising
$15 billion increase in the total money during the last half of lsst|
public debt, the net weight of this year it had to use such short-term
increase was relatively nil as far securities that it
is, in effect, in
n
as an increase being required in ^
the process of refinancing the deftr
the Publi?'s holdings.
icit for 1959. We'll get to the scale,
The prices and yields of gov- of prospective Treasury cash and
ernment securities, therefore, re- refunding financing later but
fleeted (1) the changing demands want to make this point right here.V
for capital and credit on the part if the budget for I960 looks like iV
,
counts.
"reinflate"
business
"
vr»nr
guarantee
to
By
summer.
_
mortgages
NRA and
up
point.
some
last
ing June 30, 1957, the public debt unfavorable conditions imagjn£"
increased by more than $15 billion able.
+
but as you may see (from the hotAnd we are not yet through--.
torn figure in the fifth column with the impacts of this larger
from the left) the public s hold- scaie deficit financing —• all
year 1951, a second beginning ings of the debt increased by only which must be placed with ifre*
with mid-1951 to the close of fis- $700 million. Nearly all of the public. Although the publicly+
™ "fee' ient
Wme'rt
at
were set,
ination, it is worthwhile to divide the postwar period into three
phases: One beginning with the
close of the fiscal year 1947 and
ending with the close of the fiscal
uui
Twontv-
less steadilv
costs
°
ma!"he
necessary
the
the at prices and yields that
13
lars fovmzve-
more
livine
fih
ytais,
dpfifits
94
effect on the -prices and:
yields of Government securitieie^
it
and
bought for government accounts—
in
deficits
know,
you
close ofWorld War
+»
—■-
devalued
we
of the
the record
Incethe
Reserve banks
Federal
That'point came
June 30, 1858,
Federal budget result in increases for the large part by the Fed; the total public debt had increasedi
in the public debt and surpluses the,«e prices clearly being much by less than $6 billion; puhli^;
result in decreases in the public higher than they would have been holdings had increased by hardly
debt. But, we are also interested had the sellers been obliged to more than $4 billion. The bulk ofin the resultant changes that occur find buyers such as, say, you and the increase in the total public
in the public's holding of the debt. me.
debt and in the public's holdings
por the purpose of such examDuring the next six years, end- were to follow- -under the -1
mpst—J—
As
11 i<? five surnluses md eiaht dei'i-
though,
l'
as
government
12
.
Of This Debt
cal yca^ 1947 because by the middie Of that year, the Treasury had
been able to mop up (by debt redepressing is the record duction) the large but unnecesctepresungisther.xoraga]e of Treasury securities
All in all
cessive deficits to 16.
With
—
engaged in armed conflict.
the string of suc¬
ran
And In the Public's Holdings
live curring (1951), just the same,
should
that it
was
—
4.2
—
0.5
VJ
0.8
'■tv.fi
bonds also excluded.
Subtotal
29
5
24
171
101
70
o
.
These
changes
—
in the
total
Subtotal
—
—7.1
9.4
—16.5
+ 9.8
1.3
i
+7.5
+2.4
,
■
Total
public
1
—r"
TABLE H
Changes in the Total Public Debt and in the
Public's Holdings of This Debt *
(In billions of dollars)
Net Change
**
/
As
or
June 30,
1947
Total Public Debt
258.4
As of
June 30,
1951
255.3
AS Of
-
Net
<
Change
—
From
June 30,
3.1
1957
270.6
'
.
„
As of
June 30,'51
June 30;
to June 30/57
i959**'to
+15.3
286.2
Non-Public t—
*-
Net
Change
From
June 30/57
June 30/59**
+15.6
accounts——..
41.0
+
8.2
55.6
21.9
Fed. Res. Banks
32.8
23.0
+
1.1
23.0
+ 14.G
55.5
25.3
Savings bonds—
—
0.1
+, 2.3
/
45.5
49.1
+
3.6
49.1
46.6
—
2.5
in this column)
Total
licly held
~twoi
<»
100.2"
113.1
+ 12.9
.-127.7
—16.0
142.9
+ 14.6
127.4
0.7
158.8
—
0.3
V"
158.2
142.2
o,»ii
,
+
the Federal Reserve
the
public's
State & Municipal Funds.
the public's hold-
A
large increase in the amounts held
government
increase in the
accounts
value
and
+ 2.3
Reserve
is
this*
banks,
re
Although
4.8
totaled
the public
tho
fisrnl
Aiinougn tne fiscal
operations OI the government (the
budget) permitted the public debt
—
2.4
2.0 ^ S
'
+ 6.4
—4.7
+
1.7
+
1.1
+5.3
+ 6.4
■f
—11.6
—2.6
—14.2
+ 0.7
^
J
-f 16.5
—15.3
+ 15.9
+
1.5
1.2
-
5
—16.0
-Oi.
IV
Tentative Time Schedule of Treasury Financing
Excluding Weekly Bill Offerings
(In
The significance of such changes
riebt
-
of
$13 billion.
deoi is inis.
—
TABLE
an
savings
bonds ' held by individuals
was
largely responsible.
Such addi¬
tions, plus net purchases by the
in who held what
,,
kss counts held by Government accounts,
Banks and also excluding savings bonds held by individuals.
JExcluded for the purpose of market
analysis, see note above.
•♦Partly estimated.
+ 15.9
in
ings decreased by $16 billion.
Federal
Remainder—Pub¬
and
holding of the debt—are set forth Individual Marketable
in; summary form in Table II. Nonfinancial Corporations
You may observe (from the third
Miscellaneous
column, from the left) that during Commercial Banks
the four years ending June
30,
1951, the total public debt de¬
Total
creased by $3 billion.
Also, you
"Tartly estimated.
may sec (from the bottom figure
by
U. 8. Governm't
held by individua Is
debt
billions of dollars)
Cash
Approximate Timing
Late March
Refunding*
$4 to 5
$4.4
Early May
Late
May
Late June-Early July
Mid July
Late
September-Early
Early November
Late December
—
$1 to 2
$4 to 5
'
'
*
October
$5.2
$5 to 6'"
J
V*'X
$3.7
$1
'
pr
•
♦publicly-held only, estimated, including May 15 hills.
r*
Volume
189
Number 5824
.
The Commercial and Financial Chronicle
(993)
upon
stimulating
ities, the buying
years
ending with the fiscal year
of 1957 and,
secondly, on the basis
of the
changes that have* been
institutions
taking
place
since
then
(once
with the help of some pro¬
jections to the middle of this
more
•'
year).
V
.
"
housing
be
may
activ¬
of
power
The
Financing Schedule That
Confronts the Treasury
these
needed
for
The
them that their wives and their
other friends do the
same, too.
table
you have gives you
government guaranteed mortgages in tentative
fashion, an idea of the
—along with the mortgage lending kind of
financing schedule the
power of the savings and loan as¬
Treasury will have to undertake.
sociations—if
the
FNMA
is
to
: You should
keep in mind that a
avoid becoming THE market for
difference
Table III shows the changes that
have taken place in debt owner¬
VA and FHA loans.
ship, by principal types of public
holders, throughout the same pe¬
longer
exists between the net
cash
borrowings of the Treasury
financing
example,
riods of time we have been dis¬ Treasury deficits or
much, if any¬ the Treasury has outstanding $3.6
cussing—the four years « ending thing, in the way of net buyers billion of March
tax anticipation
June 30, 1951, the six years end¬ of intermediate and
long - term certificates / and -$3.0 billion of
ing June 30, 1957 and the period bonds. It long has been plain that June tax
anticipation bills, a total
from then to now, once again with an
increasing number of State and of $6.6 billion. The
Treasury is
the help of some projections to local
governments have seen fit expected to redeem in
cash what¬
June 30 next. The table also gives to release themselves from
their ever portion of these is not ten¬
the figures' for
the cumulative earlier status—that of being cap¬ dered in
changes over the 10 years ending
June, 1957.
y';. " v'.;"~
it am going to
deal, first, with
State and local governments
appear
as
star
a
and the amount of cash
it must undertake.
For
no
buyer of
follows:
as
/State
and
the
were
";
:
Treasury.
non-Federal
local
best
governments
buyers although
One by
The
one
Government
obliga¬
tween
tions.
Some funds have sold gov¬
ernment securities to reinvest in
the
and
now
close
the
of
fiscal year arises from this situa¬
tion.
they ran a poor second to U. S. other, more remunerative invest¬
Perhaps I also should tell you
Government accounts./ Miscella¬ ments, too.
that this tentative
financing sched¬
neous
investors were reasonably
ule—a quite heavy one as you can
Individuals have been sellers.
substantial buyers, but foreign ac¬
see—is based on estimates that are
Nonfinancial corporations have
count bought more than one-lialf
not far from those submitted
been
by
good-buyers recently but
of the total and such purchases,
the President in his budget mes¬
proved to have been modest net
perhaps, should be considered as
buyers over the period. A corre¬ sage. We are about $1 billion less
■
one-shot operation.
a
Individuals
helped (largely through purchases
of savings bonds) but this was in
the early part of the period. Nonfinancial corporations bought on
balance, but only in a modest way.
The Fed helped absorb some of the
increase in the public debt, too.
There were two principal groups
of sellers.
The
insurance com¬
panies
and
together,
The
savings banks, taken
much the largest.
other
principal sellers
'I would like to offer
servations
Had
about
were
few ob¬
a
these
changes.
companies
and
insurance
savings
amount
banks not
their
reduced
existed
of
between
the
of
governments held by
nonfinancial corporations and the
their
liabilities
tax
Federal
income
outstanding.
due to the
ever,
reverse
How¬
Mills plan,
which is in the process of com¬
pletion, the peak amount of such
optimistic for the results of fiscal
1959; and not much less optimistic
than that
re the first half of fiscal
1960—that is, the last half of this
calendar year. I am not sure that
such
optimism is justified — we
simply approached it this way for
than
it
some
time.
to
used
be—at
Miscellaneous
least, for
working estimates.
our
One final point on the heaviness
the Treasury financing sched¬
income tax liabilities will be lower
were
commercial banks.
has
lation
amount
Offers Equip. Tr. Ctfs.
fathered
Communist
said
that
and
ideology.
the
Halsey, Stuart & Co., Inc., ancl
associates,
yesterday
(Feb.
23>
offered
$5,130,000, of
Marx
Chicago,
mothered
Karl
government
„
the
:
Rock
should
follow the precepts of "From each
of
The Treasury has made
ule.
some
in clustering its maturi¬
ties around four dates about three
progress
investors
appear
to have been selling on balance
months apart. The need to finance
except for foreign accounts but as
for cash, however, keeps
arising.
a group they can't be counted on
Hence, the Treasury is likely to
to buy much.
find, before this calendar year is
Commercial banks have bought
out, it will have been in the mar¬
Island
&
Pacific
RR.
4Va%
according to his abilities, to each
equipment trust certificates,
turing
semi-annually
Aug.
according to his needs."
1959
to
The
certificates
ernment
already
much of this.
attributed
to
Our gov¬
has^ done
too
yield
The other saying is
this:; "It is true that Liberty
Feb.
from
15,
scaled
are
3.50%
Issuance
is
precious—so precious that it must
be rationed."'
•
tificates
tion
.
and
to
;
of
the
the
Interstate
.
further
expanded
its
.
The
-
issue
is
to
600 box cars and
locomotives,
COLUMBUS, Ohio —The Ohio
Company, 51 North High Street,
has
.
under¬
be
cer¬
in
.
by
8 Diesel electric
'■
Associates
*://■"-"
secured
estimated
$6,840,000.
Dick &
r
Commerce
Commission.
Howard Gasaway Joins
Ohio Company
ac¬
subject to authoriza¬
are
of
to
4.20%,
;
sale
ma¬
J5-.
inclusive.
1974,
cording to maturity.
Nikolai Lenin. It is
payment of income taxes.
tive to the
Treasury hasn't enough free
these
funds
have been
granted cash to do this,
however, without
more
broadened investment au¬
raising some of the money in the
the latter—the 10 years eliding thority and their new
The cash
money is market
financing that
June 30, 1957; These may be sum¬ being* placed- in
mortgages and the Treasury will undertake be¬
marized
Halsey, Stuart Group
In times when the battle of the
budget takes on such vast impor¬
tance, I find myself recalling two
statements
made .by
men
who
have
23.
to
cosfc
v;
the
offering
■
are:
Merle-Smith; R. W. PresS-
writing, staff with the appointment prich & Co.; Baxter & Co.; Free¬
man
& Co.;
Ira Haupt & Co.;
Gasaway, who brings
McMaster Hutchinson &
a varied
Co.; and
background in manufac¬
Wm. E. Pollock & Co., Inc.
turing, management and account¬
\* **
ing to his new position.
of Howard H.
.
In
accepting
the
appointment,
Mr. Gasaway terminates a 12-year
association with Omar Bakeries,
Joanna
Kay Appointed by
Blair, Inc.
Lorraine L.
CHICAGO,
111. —Lorraine
lu
Inc., where he was manager, suc¬
Blair, President of Lorraine L,
cessively, of the Peoria, 111., and
Blair, Inc., 30 N. La Salle Street,
Omaha, Neb. offices. He has been has
announced the appointment of
general manage
of the
bakery Miss
firfti's Ohio division, at Columbus,
Joanna A.
Kay
as
First As¬
sistant to the President.
Miss Kay
addition, has been a member of her firm
for the past year and a
half, has since its
inception as cashier and
been Vice-President of Omar, In¬
trader. The company, only majoip
corporated. In the past, Mr. Gasa¬
investment house in the nation,
way was Treasurer and Controller
of Streeter-Amet Company, Chi¬ headed, owned and operated en¬
tirely by women, now has a staf£
cago, and has been associated with
of nine women registered repre¬
Burroughs Adding Machine Com¬
sentatives.
pany, and the accounting firm of
Miss
Kay, one of the first
Ernst & Ernst.
for" five
and,
years;
in
women
bank
consin,
had
Eastman Dillon Adds
executives
her
in
early
Wis¬
financial
training at the Home State Bank
PHILADELPHIA, Pa.—Eastman
of Milwaukee. She has also served
Dillon, Union Securities & Co.,
the market last year or the year Philadelphia National Bank Build¬ as Assistant Secretary ;df Brewbefore or even during 1953. Such ing, members of the New York Emch-Jenkins
Co.; Vice-President*
frequent financing is not helpful. Stock Exchange and other leading
Secretary and Director of Emcti
It keeps the market off balance
exchanges, announce that Harry
& Co.; and Secretary-Treasurer,
ending of the housing shortages, accounts—has run out of money. and more or less steadily under J. Binder has become associated
et cetera, would have been held
What has been going on during the threat of more intermediate with them as a
registered repre¬ Phillips Securities, Inc., Mil¬
back. It also is important to keep the
and
last
two
longer-term securities that sentative.
years
points
waukee investment firms.
up,
in mind that the government is therefore, what may go on if Con¬ might help to lengthen the aver¬
its own best competitor for the gress insists upon
handling Fed¬ age maturity of its debt—threats
government
holdings
by
such
had they been unable
a
raft
of governments since mid-
1957; it looks as though the banks
to do so for any reason, then; the may be the only buyers,left. This
seems
particularly likely to be
reconstruction
of
our
business
plant and equipment/the rebuild¬ the case when one keeps in mind
that "the big buyer"—government
ing of slum areas, of roads; the
amount,
or
investible
funds
of
institu¬
such
tions
eral finances
so
that further defi¬
ket
10
times.
number
that
in
tend
This
times
of
to
is
than
larger
a
it
was
push-up the
in
yields
the market well in advance of
(and of other holders of its
direct obligations). This is so be¬
cause
of the government's guar¬
cits
antee of VA and FHA mortgages.
These are looked upon by most
funds—will
investors
Altogether, it seems to me clear
ernment securities, while the total that the Treasury has quite a job
on
its hands.
It is going to be
public debt was increasing by
something less than $28 billion 2 difficult indeed for it to do much
Clearly, other buyers will have to financing outside of the banks.
be found if deficiteering is to con¬ Such a prospect carries with it the
tinue as a way of life for the gov¬ usual
inflationary
connotations.
ernment.
The
trouble
is
other Therefore, if Congress elects to
buyers seem to have gone to spend money over and above the
teed
government
as
obligations.
guaran¬
The holdings of
these by insurance companies and
.
savings banks have increased sub-\
stantially more than their hold¬
ings of the government's direct
obligations have decreased.
Miscellaneous investors is the
classification that includes savings
and loan associations. This cate¬
The two
ensue.
ers—U.
S.
Government
State
and
principal buy¬
and
local
not
be
accounts
government
there.
the dates
which such securities
on
be offered.
may
Annual
Since
Conclusion
the middle of 1.947 these two buy¬
ers
absorbed $32 billion of gov¬
holdings by $6 billion but "foreign
lunch.
Insurance companies and
savings banks are likely to be us¬
ing their funds to buy "guaran¬
teed^'—VA and FHA mortgages,
rather than direct obligations. In¬
dividuals appear to be poor pros¬
pects.
The same goes for non-
wasteful programs (the farm price
and farm income supports, for ex¬
accounts" took
financial
ample)
gory also includes personal trusts,
pension
unions
funds,
dealers,
credit
forth, plus foreign
As a group "Miscella¬
and
accounts.
investors"
neous
of
so
these.
increased
on
These
place in the
more
their
than half
purchases
took
corporations, at least in
what they might buy
of
terms
the
following the
govern¬
adoption
of
flexible
Miscel¬
monetary ment will have to sell.
policies in this country, as "go¬ laneous investors are hard to gen¬
ing rates of return"' were re¬ eralize about but, in the main,
years
versus
established for money market is¬
Now let's look at the principal
changes in the ownership of the
publicly held debt that have
since
curred
the
middle
projecting the figures
mated
now
basis for
to
the
the
oc¬
of
1957,
an
esti¬
on
period from
middle
of
the
year.
Keep in mind that this period is
the
one
wherein increases in the
total public debt have had to be
or will be taken in
entirely by the
public.
banks
sellers
on
companies
continue
balance.
and
to
The
ably
net
has
over,
—
counts
held
become
as
•
long
quite
to
amounts
-
total
low.
assets
More¬
Congress insists
be
inflationary potential will
enlarged.
times is for
grams
need
of
to
avoid
unnecessary
new
I
hope that we will find that
Congress is fully aware of what
is needed.
I hope that we will
find that there are enough people
in this country who care enough
Thus, we come down to the
banks. They seem to be about the
only
one
buyers
that
are
are
capable
of
likely to absorb
further necessitous increases
any
in the
of
or
public debt. Does this kind
situation have anything to do
a
with
inflation?
And
the
1960
Of course, it does.
2 It
of
interest
that
during
beginning with the fiscal
and
the
is
ending
with
the
fiscal
year
year
pe¬
1953
1959,
official
figures show an increase in
the total public debt of $27 billion. Dur¬
ing these 7 years the Government will
have
$23 billion to support farm
and to increase farm incomes, a
equal to 7/8ths of the increase in
public debt during this period of
prices
sum
time.
spent
Investors look to them for information
throughout
company
the
when
year
purchases for their portfolios.
on
planning
■>
happens
ADDBfiSSOGHAPH
SERVICE
to
it
to
that Congress will not be
tempted to be lax in its number
a
metal stencil in
for every investment
country,
arranged
our
Addressograph Department
banking and brokerage firm in the
alphabetically by
States
and
Cities,
and within the Cities by firm names.
This list is revised continuously and offers
you
the most
up-to-the-minute service available.
so
duty.
This
condition
is
the
of
to
repair the
government's
finances and to make it clear that
the credit of the Treasury will be
maintained
—
by
promoting
Our
list
charge
for addressing envelopes
(United States
approximately
or
9,000
for the complete
Canada) is $7.00
names
in
United
per
thousand—
States,
900
in
Canada.
a
stable currency.
You
a
and
I,
individuals, have
in what hap¬
I hope that you, therefore,
definite
pens.
the
your
We have
the house down from here
absorbing
ANNUAL report to the Investment houses of
appropria¬
tions for low priority purposes.
what
con¬
your
Country.
pro¬
scream
caused to remain
the
our
on,
are
Mail
Congress to eliminate
and
or
The
about
the
as
a
future
cerned about the dollar.
riod
during earlier years, prob¬
because the percentage of
governments
to be
sav¬
be
sold have been smaller than they
were
appear
the
good
particularly if foreign ac¬
budget?
Insurance
ings
they do not
bet
sues.
amounts
$77 billion proposed by the Presi¬
dent—for whatever purposes—the
Reports
as
interest
We
can
also supply
the list
on
gummed roll labels at
a
small additional charge.
will let it be known to your rep¬
resentatives and senators in Wash¬
ington, in unforgettable ways, that
you are concerned about the defi¬
citeering
and that you
want it stopped for once and for
all. I hope that you will urge your
wives and your friends to do the
same
process
and that you
will urge
upon
HERBERT D. SEIBERT i CO., INC.
25 Park Place
REctor 2-9570
New York 7
The Commercial and
those whose duty
so
^
.
.
Thursday, February 26, 1950
principles, and we should be on the road
wouldTe toough
to the objectives now set forth by those who wopld try tojy'the creation of more/ than -one
substitute their poor wisdom for the natural forces" which:
company from the hid company,
In other words, by the process of
can be counted on to bring out the best that is in us.
Lp
division, or economic birth. AdThey should proceed to withdraw from competition
herence to such percentage figures
with business, from all the meddling now indulged in,
guarantees the future existence of
four or., five. • companies in each
reduce expenditures accordingly, introduce basic changes
in our system of taxation, and see to it that competition
'basicindustry They do. not reis restored everywhere-including labor
unions, Mpsf.of ~ Motors, or ; any other company,
1
tional American
See
We
["As
.
it is to shape national policy are quite
gullible.
How to Do It
.
'
question has again arisen as
to how these objectives are to be reached. It has now be¬
come clearer than ever that there is wide disagreement as
As
a
result of all this, the
implemented
in actual practice.
Of course, the rank and file of the
Democratic party, naturally as a matter of practical poli¬
tics, are deeply dissatisfied with the way that the present
to how such
■
„
worries would then be oft the way
our
1957 and 1958 to prevent or
growth of unemployment. But there are dif¬
ferences even among the President's own party, and for
that matter among many commentators outside govern¬
ment. The reader hardly need be reminded that this broad
subject has in past years been the subject of long and
i tedious
testimony by all manner of people. As usual,
I though, these discussions and papers failed to convince
I in many instances.
In point of fact there was about as
; much disagreement among the doctors called in as there
i was and is
among the politicians themselves.
Contiruued
Nonetheless, further hearings
are now
being arranged.
of the rate of
growth
are
has indeed been raised
noW envisaged are as
tional
That is
as
to be explored.
to whether
The question
the objectives as
a practical matter consistent among
to say, certain members of the na¬
policy
legislature wish to determine whether any national
or program can in the nature of things at one and
at the
same
time
promote full employment, a higher rate
growth and price stability. There are, of course, a good
many who doubt it.
Many of these would not trouble
of
themselves much about inflation—or would undertake to
keep prices steady by fiat — and concentrate upon full
v
employment as a humanitarian objective and a more rapid
I rate of growth in order to keep pace with Russia.
Start at the
It is
probably
a
Beginning
^
good thing to have these problems
I thoroughly aired even if reference to the record of previous
hearings would provide much of what may be ex¬
pected from further inquiries. But these inquiries should
start at the beginning—as previous efforts did hot. The
-
■
first and most vital question to be answered is not whether
national policy can attain all these three objectives, but
whether
we can at
least in any of the ways proposed
hope to achieve any of them. What evidence is there that,
by injecting itself into the situation, government can
abolish or very greatly moderate what is known as the
business cycle over a substantial period of time? Certainly
this is a case where he who affirms must
prove. History
is strewn with schemes to maintain stable
prices. Argu¬
ments, particularly in connection with banking and credit,
are
to be found in the literature
almost without end.
No one as yet has, so far as we know, come up with
any
convincing evidence, either theoretical or practical, which
points to reasonable hope of success through direct action
of the sort now
apparently in contemplation.
As to
idea
setting
appears
some predetermined rate of growth, the
to be borrowed from the Russian experi¬
•*.l J*;'
:
thanE' two companies i
basis of General
into .4iaore
..
even
the
on
7 Motors' present position,:.. ~ ;
r 7
'/While some seem to think that
.r
'
In the
this is
I'..."-4'• V>'f
' t
»:
isn't
\
»*«*i:•.j-■
a
new
identical
radical idea, basically, it
at all. The basic idealib
that
with
.
anti-trust
■
in
used
to
laws
break
the
up
<
ap :
unlawful
Space Age
monopoly.
The
best
example of this Was the V
Oil Company which
known
old Standard
petitors, then its profit becomes was broken up into what has
a measure of its efficiency and
become 38 companies, of which
policy, its competitors ability and a measure or reward four are among the 20 largest
have existed because of the pur- for its contribution. To dehy a American companies. The basis of
suance by General Motors of polhigh profit level for reasons other that break-up was decided by th?
icies that permitted them to exist, than a company's domination of a ^overnmenf.
market or its lack of an adequate
Within the past year the Depast twenty years, but in the absence of an adequate and effective
antitrust
.
States GM Tolerates
Motors
to eliminate
from
Competitors
the
has
this
of
is
is
what
situation
the
in
this respect in
the automobile industry? Anyone interested, in this
a satisfactory average of
subject should carefully read' the■
profit for all industry, of testimony given before the
at
loss and
op-
6%, there would be fewer
companies left in the automobile
industry in a short time.
by T. O. Yntema,
because
of
their
tremendous
contribution,
General
.Company. He spelled out .wifh,
great clarity the fact that no auto-
Motors
mobile
say
Now,
is
entitled to
much more
Committee
Kefauver
President
jrresiaeni
of
ox
an
Floyd
to create within 10 years a separate;:
ago
Ford
rora
other
..
.,
ivipiur
Mptor
...
Fruit
united
centration
profit,
as
crea^on
to
years
con?
rather
a
period
for
needed competition*
Iri principal
just
entitled
Company's
isn't 10
than.Geh-longSation
is
average
Patterson
the
than
more
In this instance the Depart?,
ment ;Of Justice entered^ into> a
eJ*srj® ;,
firmncialfsrice-i
the
uie
company
year
a
oral Motors has sufficient financial
strength to he certain of,,.conaverage purse of tinuity. The rough-going pjp 19o8
the average heavyweilht To pro- for most of the industry ; has not
vide incentive
and
competition, improved the basic situation.
-,
than
partment of Justice has resorted
would be to destroy the effective? to the principle of economic birth
ness of freedom and incentive Jn to resolve an antitrust case in*?
the American economy.
' ; volvmg the United Fruit Comr >
Now
con-
If Gen-
should decide to
Motors
crate
power
industry,
ability
tained in its profit level.
eral
number of competent competitors
other companies
some
automobile
the
Evidence
^
0f
•
the proposal I
substantially
have
the
same
wouid be permitted to'determine
champion in industry should
Citizens and consumers must be
basis of the division or birth,
receive a champion's satisfied that profits being earned oniy if it failed to act within ja :
reward. If he does not, he reduces by a
company are achieved in reasonable time, Would the govor
eventually eliihinates the re- competition
with
an
adequate, ernment determine the basis; of
wards for everyone else. It is one number of competent competitors. division or divestiture
i
road to establishing and maintain- Unless they are satisfied, we are ^v?10" yrmyesaam.
ing a monoply position.
really exposed to the ability of :
■
Not a Penalty
,
;;-^7;
the
expect and
5
Additional
is
power
evidence
that
between
of
GM's
1952
and
'th°sa nbw_ attacking our qqononly
This
proposal would reward*
to persuade the people that the not penalize General Motors for
.
General government should intervene m
industry some manner that will seriously
matters
rendered
industry
co- imPa1*'
:"e functioning of5 our
operation in the non-competitive competitive system. This is, alareas relatively ineffective. Genready developing and spreading.
eral Motors leadership during that We are confronted with Muetant
period tended to follow a practice
wage-pripe
of prematurely saying, in effect, control. We
are^<
''This is our position, take it or UAW
leave it.
-for pi ice hearings prior to chm
panies' instituting price' increases
UAW's Advantage
and many other regulatory pro-•
the
fall
of
1958,
the
position in
Motor's
+
■
being successful. It would give us/
the advantage of two companies
with the potential competence qf »
General Motors, instead of one.,;
To illustrate my point, let me tell
yOU a little story.
•
.
^sidenhal hints of
• Abouj. 15 years ago, an elderly
threatened With. friend rwas- at -mv home one.1
backed^^^P^^^evening and my: five year old
rnesmerized.
beintr
was
posais.
Jonta®eous
expression
vr°"e °f
Another point of grave concern
that the championship level of
7n7
of
her
>
v.tW ; ;love and- affection she said, "I
The future of economic-freedoan wish I -could have two daddies,'
General Motors' profits has be- in this country is contingent upon
because
if
I
could
have
tvtfo
come
the
focal
point
of
the the people's confidence in the baddies ,you would" be one - of
UAW's collective bargaining de- principles of "consumerism" and •
^hem " '
^
j ;
mands
directed
essentially
at particularly competition. I ;beiieye ;
•,
K)jr0.t
General
Motors
and
has
used this depends upon strengthening.
on
to shv
General Motors' greater ability to and
modernizing
our
antitrust JT
-pay to convince the public that laws as well as effective public - 1 wisn you were xwms.
is
.
Ts
"
the
union's
demands
can
be
met
by General Motors without serious
financial difficulty.
The key question raised by the
UAW
collective
bargaining
any real economic
meaning, planned growth would have to blue-print the
course of each of the major
industries, indicating which
strategy is "Are General Motors
profits too high?" This question
must be answered to the satisfac-
should
tion
proceed at this and which at that rate. Mere
enlargement of total output could very well leave the
situation worse than before.
Meaningful growth must
mean
enlargement in the production of those things that
are wanted and needed.
Short of a complete socialization
of industry it is not
easy to see how really meaningful
progress could be made by government in promoting
growth—and socialization of industry could not fail to
bring disaster.
of
American
the
public,
Finding the right solution to our
national labor policy, our national
antitrust policy, and indeed, to
the
current
concern
over
the
Isn't-this
communication,
In
each
of
major tyasic.
industries, we need the certainty
of an adequate number df 'eompetent competitors to insure the
public that whatever profits :are,
.being earned, are being .earned as
a
result of adequate stiff competition.
We
should- =fix^^--^the
tolerance on the side of too much
rather than too little competition.
'
,
„
our
,
.:
:
.
Repeats Recommendations
m
essence
what I am
Iw+htrmore11 if^o^will
K
j
analyze
'
°„Lr'j
inru^trv
■
wth the government ad
^
bust laws are
nn12«
"J ^eir aPPllcatiou to c
Pai?
that clearly dominate an industry,
Experience
with
the
antitrust
laws-indicates that they do not
effectively apply to companies on
answer.
the basis of their possession of
I think to find the true answer provision for economic,birth as excess economic power or them
the people need to know this fact; well as economic death in our ability to monopolize mi industry;
wage-price spiral depends on arriving
at the
right,
the
true
-
that unless
stitute
Now if the powers that be
really want to do all
to promote full employment, a
10
page
Freedom of Competition
ments of the past two or three decades. We have already
in this column taken
pains to expose the weakness of most
of these popular
conceptions. To have
they
can.
rapid growth of in¬
dustry and trade, and as nearly stable price levels as can
be attained in this
very real world in which we live, the
proper course for them to pursue is plain as a pikestaff.
It is
precisely the opposite of virtually all that has been
tried or suggested in recent
years. What is needed is for
government to withdraw from the field of managing or
in any way tinkering with the economic
system. Let
Congress and the Administration begin tomorrow to plan
from
•;
General
) This time there- is the further complication that such
added objectives as prevention of inflation and control
I
7
c
to limit the
themselves.
^
out.
broad policies as these are to be
Administration proceeded in
:
.
percentage of the particular bush,
full retreat from the New Deal and a return to tradi-
a
Continued from first page
:
Financial Chronicle
(994)
26
we
some
are
other
going to submeans
of dis-
Preservation of the competitive
principle in America is dependent
upon its complete development by
major
,
basic industries. Before the Basically,
the piesent antitrust
Kefauver Committee I made these laws apply where excess powm rrf
ciplining our economy for the specific recommendations pgrtam- a monoply position^ rnsed
principle of competition—and the mg to degree of mairket domina- the
intent or
only other means I know of in- tlon ln such industries;
-■
tion. This necessity of proving
volves absolute authority of either
When an individual'company
intent
has been one aimcuit
a
public or private character
engaged in only one basiG industry aspect of applying
then the question of whether a is doing more than 35% of .the
to
growing
op.
particular company is making too business, or, when, a, company m American maustry.
- . v;
much money depends on whether engaged in more than one basic
I do not suggest that General
that company lacks adequate com- industry is doing more than -25% Motors "has
deliberately under-*
petition. If the company is earning of the business, such companies * taken to establish its present posithe money in the face of an ade- should be required to submit their-tion of power in the automobile
quate number of competent com- own programs for reducing their industry
for
the
purpose
of
with
monopoUstic^ae-
*
la^
the
concentrat
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
dominating the industry or estab¬
a. monopoly.
Nevertheless,
it ^has
established? the position
labor
lishing
laws
it
—;
would
result
in
gives it the power
do
to
so.
d,'
Stockholder. Protection
m*
Committee
amendment
Americanism.
of
the
warfare.•
called
*?£*-"':
Finallyr
for
laws
tax
conflict
threat
it
of
based
•!
•{*
would
class
on
"v
•
reduce
.•*.
the
regulation
government
to
and
postpone payment of a ; capital
gains tax in the event of birui by
and
a more adequate division
dispersion of private power,
decrease the justification for the
division
excessive
until
such
time
stockholder disposed
of
one
panics.
the
This
would
of
his stock
simply
not
of
the
as
continuing
would
the*. government
com-
make
the
..
birth, of
From
the
it
capital
companies.
new
stockholder's
a
stand¬
point, the greater the growth of
the? company in which he- holds
stock, the greater the opportunity
for
and,
ence
twice
attain
to
growth
l.v
trial
the
Of
source
trial
than
more
cohid become
achievement
order.
'
-
company
the
of
:
-
highest
'
...
-
where
the
policies
insure the effective opera¬
of the competitive principle.
This makes is unnecessary for the
government to engage in detailed
regulation.
regulation
trial
On the other hand,
the basis of indus¬
on
concentration
monopoly
or
invokes detailed regulation of the
-
one
{ monoply.
establishes
tion
laws
recognized indus¬
a
or
results
that
simply the modernization of
old. Building a- company to
point/where it became the
the
concentration
;
government
-
new
our
Competition-
comes
.
enactment .of
"
choice is between
competition and regulated indus¬
through full management respon¬
sibility. ' ■
?•'
V "
<
Adoption' of
a
birth -r policy
would, I believe, change the atti.-<
tude
toward • industrial
growth
without
Depicts Hard Choice
.
Basically,
experi¬
that
important elements of enterprise
compels the government to
substitute its decisions for * the
consumers' decisions.
and
Some have suggested that such
We are " moving in the direction
policy of economic birth would of-governmental control resulting
from a lack of confidence in the
deprive us of the benefits of size,
research,
improvement,. .' growth, adequacy of competitive discipline.
incentive, consumer benefits or Such central. control and regula¬
.
a
national defense.
Criticism
tion is The brute strength of com¬
this
of
trial and national defense practice.
munism.
It is not the superior
strength by which America has
achieved the highest known de¬
gree
of : human' well-being
and
But time
material abundance.
proposal on
overlooks its in¬
these' grounds
herent nature, and present indus¬
them
out
precludes
Let
now.
discussing
simply point
bigness and
of economic
my
me
it would not end
that
the
birth
is
principle
of
one
the
keys
to un¬
limited opportunity for industrial
element of human
We stress the
well-being and
self-realization ahead of
our
ma¬
terial abundance because in shap¬
ing our national policies and pro¬
rnust
give priority to
growth and progress/ Without this the opportunity for individual ex¬
principle, a company like General pression and/growth if we are to
Motors
at
some. point
is con¬ realize .The greatest results in a
fronted either with the question of material
way.: The two are
in¬
holding its percentage of a market terlinked. ,J
'
- '
grams
we
-
below
whatever
sidered
level
dangerous
to
fear, of antitrust law
faces ', the
trust
sion
or
—
ment
and
we
of
.
substitute
govern¬
regulation.-
.
assuring
the
maintenance
on
an /
adequate
minimum number of competent
competitors in our basic indus¬
tries,
the
how
would
this
benefit the nation?
-
Woodfow Wilson
:
proposal
.
spiritual
always
said, ."This
that
mines the material."
In
deter¬
the
long
this is true with individuals,
organizations and nations.
run,
When"
from
Aside
As
for;- nation cannot survive material¬
it istically-unless it redeems itself
anti? spiritually,",- Carlyle wrote, "It is
Benefit to the Nation
■fit
-
or
mandatory divi¬
and
control
con¬
exceed
action,
consequences
action
is
I
Kefauver
the most
llat
before
appeared
Committee
last
gratifying result
statement
at
the
end
the
winter,
was
of
but had been silent about the
effective industry
greater
for the
wielded
excess
a
principal
power
by. monopolistic
The
now
unions.
benefit
significance of this
shpuld not be underestimated. A
power,
dustry, unions
1
paving
By
or
the
whether in
way
for
elimination of the conflict in
national
in¬
elsewhere.
economic
the
our
policy — the
between the competitive
of the antitrust laws and
monopolistic policy
of
the
We
have
developing
economic
long
a
to
way
eco¬
concentration
of
in
go
present degree of
our
freedom
where^ it will
to
the
provide
point
full
op¬
even
It was deliberately politi¬
cal, therefore, when the committee
to
General*1'Motors.
situation
would
improved,
by
an
Our
be
attack
on
action
that
greater
concentration
of
would
past
accomplish¬
tional
structures
vided
that
pro¬
Fortunately,'
fundamental
have proven
we
essential
..
the
economic
\ Adherence to principles of con¬
is vital if America is to
age.
substitute "statism" for Amer¬
we
icanism.
Unless Americans
particularly
,
American
—r
and
business^
willing to witness the
they know it, and work
diligently on the problems as they
recognize them, there is no hope
men—are
truth
for
as
our
Carl
future.
better
Insurance
reported net
of $99,995,000,
$103,247,000 a year
volume
from
earlier.
There
writing
loss
was
under¬
an
about
of
$1,010,000,
versus a loss of
$6,125,000 in 1957,
a hefty improvement even though
underwriting was still in the red.
These figures are for the parent
company only. The combined loss
and
expense
ratio
said:
once
"If
with
only
was
102.80%,
was
There
105.55%.
a
vestment
premiums
nental Insurance
were
of
Conti¬
up
moder¬
ately from $72,429,00 to $73,172,000. Earned premiums were about
$2,500,000 higher than in 1957.
Underwriting loss of $3,140,000
was
down from $7,206,000.
In¬
vestment income reflected the im¬
provement in dividend income due
second
half
for
it
was
up
data
will
come
Maryland
Casualty
registered
premiums written of about 5.2%
above
the
year1 earlier; earned
premiums about 4% higher. The
statutory underwriting loss, while
still high, was well below
that
of 1957: respective totals $3,116,000 and
$8,545,000. The 1958 com¬
bined loss and expense ratio was
down
to
$100.87%,
106.04%.
was
about
was
with
while
1957's
Investment income
$300,000
higher,
As
particularly
among
the casualtys, Maryland
reported
a
sizable tax
refund
brought about by the several pre¬
ceding bad underwriting years—
so
many
cases,
$2,702,000.
Home Insurance showed
derwriting
loss
of
while that of 1957
an
un¬
$4,750,000,
about 3*4
was
There was u very
sum.
big shift in the underwriting loss,
for in the 1958 first half this fig¬
ure
$8,700,000, whereas
was
the
second half of the year turned in
underwriting
profit of over
net gain in the
year of $430,000. The loss in 1957
was about $8,800,000,
an
$9,100,000, for
a
St- Paul Fire & Marine was one
the better stock market in the
1958
complete
times that
Written
to
Sandburg
of the shining lights of the indus¬
try.
Its premium volume was
about 7% greater than in 1957.
24%. Insurance com¬
The 1958 statutory gain of $1,635,as a general rule do not
000 compared with the 1957 loss
do
much trading of their port¬
to the deniers and mockers then
of
$5,665,000.
The underwriting
will begin the rot and dissolution." folio holdings; but in 1958 Conti¬
nental registered a realized gain profit margin was 2.8%. Value of
The deniers and mockers who are
assets increased around $45,000,of $10,202,000, nearly V-k
times
already here and well organized
000.
the 1957 figure for this item. The
cannot
be
defeated
by silence,
Great
American
succeeded
in
increase
in
portfolio
valuation
conformity or expediency. It is not
was
$85,424,000, where as in 1957 reducing its underwriting loss for
just what we are capable of ac¬
there had been a shrinkage of 1958 to $8,220,000 from $13,000,complishing and producing that is
00p. There was a betterment of
in jeopardy; it is what we have al¬ $40,479,000. This big change was
also due to stock market trends, about 6% in investment income in
ready accomplished and produced.
the year,
t
primarily.
The inherent
America
forgets
where she
came
from, if people lose sight of what
brought therp along, if she listens
nature of
indicated
by
our
Thornton
Wilder
when
he
"Every good and excellent
thing, stands moment by moment
the
gain of
panies,
edge of danger and
must be fought for."
razor
There
—101.16%
the
human
unlimited
beings.
We need
a
capacity
of
It is world wide.
space
age
outlook.
do
need
by
modern
social
and
political,
pioneers and
formists Who
cannot
be
105.62%.
Per
economic
non-con¬
deterred
by material plenty, political ambi¬
or
social diversions.
Continental's
others)
(as well as
that the companies are
us
their way
out of the slough.
Phenix, Continental
Insurance's running mate showed
much the same proportionate re¬
Fidelity
United States Fidelity &
the
had
Three With Hecker
members
of the
Exchange
New York
two
Volume of writings in
almost the
but earned premiums were
same,
years
was
up from $231,313,000 to $244,854,000.
Statutory underwriting loss
was
much lower, $1,139,000, com¬
pared
in
$20,201,000
with
Investment
in
income
was
1957.
moder¬
sentatives.
f
writings
in
1957.-
ratio
.
26
demagogues,
the
litical
associated with their firm
partment-.
un¬
loss
97.2%,
and
expense
compared
Investment
with
income
in¬
by about $1,375,000.
This department rates these re¬
sults
as
showing
To make
underwriting
a
ihvorable trend.
of the reversals in
some
that
were
made
bodes well for the future, for the
insurance companies
surely had
serious
have them.
ure
in the
And they still
Note the January fig¬
problems
past several
on
to solve
years.
fire
losses,
$112,983,000,
about 13.1% above 1957's January.
Joins Keller & Co.
(Special to The Financial Chhonicle)
BOSTON,
Mass.
Daniel
—
C.
Ring has become associated with
Keller & Co., 31 State Street. He
was
formerly
with
Schjrmer,
NEW YORK
Head Office:
BISHOPSGATE, LONDON, E.C.2
TRUST COMPANY
London Branches:
Insurance
Co., 52 Wall
Research
The
was
Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
Bulletin
Bankers
Dept.:
to
54
Parliament
Street,
S.W.I
the Government in: ADEN, KENYA,
INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
the
modest, but the
BANK LIMITED
I
UGANDA, ZANZIBAR * SOMA LI LAND PROTECTORATB
in
turned
The increase in
Atherton & Co.
Street, New York City, members
of the New York Stock Exchange,
analyst
Casualty
Shipping: and Travel Depts.: 9 Tnfton St., S.W.I
With Herbert Stern
an
for many, many years.
was
54 PARLIAMENT STREET, S.W.I
Herbert E. Stern &
of 2.2%, a com¬
showing in a year of
be said that only 1957
derwriting gain of $6,663,000 com¬
pared with a deficit of $2,549,000
13 ST. JAMES'S SQUARE, S.W.I
"
ratio
can
and
Fischer, W. J. Hole and Robert T.
Hughes have become associated
with
them
as
registered repre¬
North
underwriting
an
good report.
a
of
expense
NATIONAL AND GRINDLAYS
Stock
other leading ex¬
changes, announce that Walter A.
with
Continental
Guar¬
decided improvement
a
and
margin
creased
Springfield Fire & Marine got
underwriting loss down from
somewhat over $5,300,000 in 1957
PHILADELPHIA, Pa. —Hecker
&
Co., Liberty Trust Building,
profit
100.0%.
sults.
its
*
them
was worse,
We need
and the divine rights of man.
left
Company
loss
with in the way of adverse condi¬
tions in
1958
a
report such as
ately higher, $11,087,000 compared
American pioneers with a world with $10,400,000 in 1957. The loss
vision and a world identity based and expense ratio was markedly
on
a
dedication to the principles better, down from 105.7% in 1957
This comes under the
of human liberty, social justice, to 99.6%.
world peace, economic abundance heading of decided improvement.
tion
America's
which it
We
fully establishing
freedom and more ef¬
can
ratio
ac¬
complishment. Our frontier is as
broad; as knowledge and space
and
versus
Insurance
improve¬
mendable
on
also
decided
the industry had much to contend
fundamental
has
a
share earnings were given at $2.24
after taxes, against $1.41.
While
assures
opened the door/for unlimited
was
ment in the loss and expense
The magnitude of our past suc¬
in America", though it con¬
fronts us with problems of a most
cess
nature,
some
task is
wrote:
on
from $12,468,000 to $15,517,000, a
by the great truth voiced
come
down
of
$1,000,000 in 1958.
over
later.
minor change in in¬
income, about $76,000;
but the gain in the value of assets
was $17,226,000, against a debit of
$2,933,000 in 1957.
leadership in the
However, this is in
jeopardy because we are approach¬
ing the point of no return in re¬
versing the trend toward centrali¬
zation of political, economic and
social power.
Heaven help us if
space
announced that Joel Price has be¬
puppets.
Aetna
premium
little
a
More
provide/world
centrated
po¬
promise
some
to
are
compared
in
or
fire-
while
sumerism
pqlicy
uninformed,
the
and,
they cannot be said to show good
results in underwriting, they do
organiza-
have
seljLrealization for all.
the.
conflict
power of industry are
judgment either deliberate
of
appear,
Insurance Stocks
things ahead.
Our
,
•
my
to
American.
ments have not produced
union
is a marrow and danger¬
ously short sighted political posi¬
tion.
Those who are exclusively
focusing their attack on the con¬
power
beginning
show
economic-
impaired, not
reports
—
casualty insurance companies
portunity for economic expression
and participation by each willing
majority limited their automobile
recommendations
1958
political
fectively developing the princi¬
ples of economic freedom.
We
union
By ARTHUR B. WALLACE
This Week
IJhe
my
reduce the ability of General Mo¬
opposition to excess con¬ tors to withstand the monopolistic
centration
of
industry
power power of the UAW.
wquld strengthen public opposi¬
tion- to excess union power.:. The Corollary Action Against Unions
latter problem will not be effec¬
To seriously propose the divi¬
tively corrected until a national sion of General Motors and at the
political
party
convincingly same time to ignore the even
of- excess
power—political,
nomic, social and others.
from 1957.
public
dedicates itself to the elimination
all forms of
•
=====
dispersion and distribution of
anty
power..
Jtn would ...remove
the
Bank and Insurance Stocks
■
ica
testimony
by
each
Democratic
member-.that they recognized the
need to divide, both the power of
baling that
excuse
principles
of
principles
beginning called for
These
have from the
also need to envision what Amer¬
_...
It would provide the basis for
cooperation by
necessary function on
a
greater, degree of competitive
equality.
'fundamental
the
As already pointed out, it would
unions
and
excessive
industrial
ingure
aiy adequate
degree
of
concentration.This
raised
my
consumer choice and competitive
hopes because of the fundamental
discipline. :
; »'
change this represented - in their
It /would remove the shackles
position. They had previously at¬
from corporate growth.
tacked
industrial
concentration
.
a political
party that will dedicate itself to
'
many
as
the
desperately
we
,
'country is
.
gain both through
earnings and capital gains. ' From
the
standpoint of management
personnel, the existence of two
companies in price of one provides
executives
Fed-,
need in this
self-discipline," and certainly this
principles necessary for our rush
is an indispensable part, ultimate
into/ the space age with all the
discipline, in any society must rest
economic, social and political im¬
on. the.
competitive principle or
plications T ot '-/ atomic power and
the exercise .of absolute authority.
electronics;?/
ford financial
opportunity
of
the University of
payable when stock is
sold, 'rather than at the time of
the
concentration
Henry Simons, late professor of
Chicago, voiced
a. fundamental principle when he
iraid: "Any community that loses
the discipline of competition ex¬
po, cs
itself to the -discipline of
arbitrary authority." '/;/' ,r
;v
Except Tor the part played by
;
deprive
revenue.
•
by
eral power..-
gains tax
but
what
the
The proposal I made before the
Kefauver
iru
Again,
employer and union responsibility
being organized on common eco¬
nomic principles and the end of
economic
that
27
(995)
Branches In
:
TANGANYIKA, ZANZIBAR, UGANDA,
as
De¬
ADEN, SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA.
Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock
Exohango
120 BROADWAY.
NEW YORK 5, N. Y.
Telephone: BArclay
Bell
7-3500
Teletype—NY 1-1248-4*
"
-
(L. A. Glbbs, Manager Trading Dept.)
Specialists in Banh Stocks
28
The Commercial and Financial Chronicle
(996)
Continued
a decline in farm income,
increased
competition in world
markets, a high level of unemployment, side effects of the Adminis-
Recoveiy Rate Slow-Down
Should Not Create Pessimism
will
continue to
rate
that pre-
business
that
vailed
in
the
the Federal
Reserve
Board's
fight against inflation, the
possibility
of
an
international
crisis surrounding the future of
Berlin, East Germany or the Mid-
by the current atmosphere
unrestrained optimism. The
r-mtA fVu>
<jle
of
rate
months
seven
tration's and
away
the
at
recover
war; (4) the realization of the true
Those who are sitting back tointent of the Soviet which neces- day complacently expecting hissitated large-scale annual military tory to repeat the experience of
spending; and (5) rapidly rising the last 10 years will probably
wages stemming from increased come to several years from now to
strength in union bargaining find that they have missed the
power growing out of a shortage boat just as many did a decade ago.
of labor at a time of very high
Whether you are a businessman
levels of demand which made it or an investor study your popula-
strike,
from first page
worries about
East,
Cf
scientific
Russia's less
economic
and
Thursday, February 26, 1959
...
profitable
hold
the
line
business
for
and
•
endure
"
—
tion figures, not only in-the aggre-
to
but
gate
strikes
...
Let
groups.
age
your
,
—
followed the low point of the
cession that terminated last April,
„
#
o
well be disappointed
confidence will
be so shaken as.to cause you to
make some poor decisions about
and many , unfortunate - business ery and occurring against a back- investment until in 1957 the physand investment decisions were ground of exuberant speculative ieal productive capacity of''-the
^§iM<%haC;iihe^ihjd^M^'•
made at that .time. The risk today phychology
could
result
in
a economy finally exceeded its con-'-tl^^fe^'^fi,e^f^i^t'Ah^th(e-14hst
is that those who believe that our SObering change in sentiment. It sumption ability. Capital expendibe
the future.
economy has entered a new dy- is to
namic upsurge closely paralleling sucb
then you may
and
perhaps
your
;
.
against the reaction of tures, which reached a level of the?phe|€^at^wfll!gi4ow the;fastest
in sentiment upon over $38 billion in 1957, have been
;yearspVand that
and perhaps exceeding in rateithe yourJ investment
and
business in a declining trend since.
i:hhtsdid;verylittld
10-year growth period that ended planning that I stress this point.
It is our opinion.that the begin- iri^h^ laktrlQ. yeWs- wiU xio matdin
1957 may become alarmed should. it develop, and I think ning of the next dynamic upsurge rikll^better in the next I0: years.
Ilfinpf*
in
V'<'>■' i'\
' r ' ;;
*' jj* X
should coming events not fully there is a reasonably good chance in 4-Urx i.r,fn of n/iAMAmirt growth
"
"
* ' -.y£*
.'V**
the rate of economic
V Outline's. Gro^vfh; Ptpspects
support this conviction.
- .
that it will, don't be drawn off will await an environment where
Whereas I have indicated we base—hold to your confidence that demand has caught up with capachave ^ad^barsystemiatic
think 1959 will be a good ousmesss the business trend will continue fty and a new pressure has been study ofithev^atiye;growth prosi
year, the recent rate of recovery upward. * ''
•
'
- created
for large capital invest- pects bf 60 indusfries.v^e top 10
,
First, let me give you the business picture as we sec it for this
•
and then move on to the
longer term. On the whole it will
foe a good year. In terms of physical production we will recover the
year,
during
gr ou nd lost
months of 1957
and
the later
opening
the
levels.
10
,
slowdown; in fact
point The average ioi the fourth
7% above 195a. The
Product, which is
the dollar value of all goods and
services
produced, will average
about $465 billion for the year, an
increase of 6%.
.
' - •
or
Gross National
ThW high point in physical
duction will
of the
pro-
Product
is anticipated."
;
uases
.
l or
liecovery
;
,
Now
lphon will pick
ventories
within
18 months
latmg to the
is
hillinn
we
do
not
ai^^::loUd1)igsi'
years
-» A basic
reason
(1)' Preduefs related to outer
re}
Aljmrinunv;.;
7) Drtigs..' •
•
for
this assertion is the substantial
change ln the population. mix by
groims
—
about $5 billion over nual rate of S88 billion in the
1958.
Furthermore, whereas in fourth quarter of 1957 to $95 bil1958 about $6 billion of inventories lion in the fourth quarter of 1958,
were liquidated the indications are
which was a gain of $7 billion or
that they will be accumulated to about 8%. Indicated
spending in.US
tel.im
situation
to materialize before the
'
.
'
' '
'
"
-
~
„
—
-
-,CT
estimate for the third quarter of growth period but before then we new family formations come chil- uiK'r"#ifh^uhgatt'sfifid^demand-land
1959 a little over 2%.
will live through the "interim dren and a new phase in the birth- opeifiti^i^t^l:©^ ,^-cap*icitfr
We have several reasons for anyears" which will form a bridge curve that sets off the multitude Sueh a^siiuntion.is -.in'ihe past. In
over
which
we
+hic
innrnom
enrtrmrt
will
cross
of economic consequences with
whlph V/111 are already fnmiHar
which you aTP nll'OQ^V familiar.
ecohomy \vhnte thereris unused
nQnaolfv
'mbforialri in ounnltr
capaclfy. and" materials .in' supply,
From 1947 to 1957 the number changes in inventdry policy occur
from the
"niriiomin Fifties" into +liA»"On!/i«
'Dynamic PiWinv" {vifrt the Scien-
tific Sixties."
1917-1962uo7
>
r
Restrained
Restrained
r
.
"interim
interim
•
Years"
up
Avlpnt.'^ nf nhr»if
with the new
up
This
expect
changed from the December rate the recovery in business will be , b *
L \'
•:
of 142. The secopd and third quar-^ more leisurely during the early > ©tresses i opuiauon s Age
ters should average a couple of part of this year than it was in ;,
; , .
Composition.: ,
points higher than the first quar- mueh of the past, year, and than • : The change in the number
ter with little difference between>it will be in the later part of this to 24 year-olds in the
the level of activity in these quar- year.
■
;
.
;
:
fis vital to the outlook for the econ- ;:In; yodrt forward .planning also
ters. The rate of recovery between *
io
nrtn
the second quarter and the, "
1
quarter of 1958 was 5*4%
why do we believe the re- ticipating this slow-down in the
covery will continue?
The basis rate of recovery. They are as folfor our calculations rests on the lows.' Purchases
of
goods
and
following estimates. Government services by local, state and Fedapending, local, state and national eral governments rose from an anwill be
r
-
_
at
will be some
30 odd billion dollars higher than
the peak rate in 1957. Consumer
expenditures will
big gain will be
durable goods where
of about 11%
•'
.
probably exceed the
Gross National
'
-
y
.
its peak annual rate
to
ment.
quartei^ of l^^aal40.^.esh- sutomobile year, etc. These then
mate an
^average for the current^are the Principal reason why.we
quarter of 142-143 which is little; believe that the upward trend of
high point of 1957 and the value
f.hf->
By the fourth quarter the cor-
slowed^down^and may tend *ection in steel inventories will
points
*
.
.
reach
new
high is expected to
-it has
will
a
i
,
months of 1958. The economic indictators
warn
of ^eoPle entering the 18* • tp1 "2'4•
yeaivold •. age
Between
,•
1957
brackett
and
1962
the*
Ampvi/>nn
w>nnnmv
haa
^..i
....
x
x:_i
,
^peqtieutli*^-an4-
14,a
declined, quicker; arid
the
in-
: Let me now discuss our theory creaSe in this age group will be
of the "interim years" that will moderate. After 1962 the increase
precede our next era of dynamic becomes more substantial and begrowth, Over a long period of y0nd 1965 the increase for some
fimA
an
rnu
„
Jt..n
mdre direct effect.
policies of the Federal Reserve^Board must be more
The .monetary
far
or
reaching. In order to stimulate
restrain certain sectors of the
economy
..
t
,;
fequires action which af-
-"s
..
•'
a
period of 12 largely responsible for the rapid- country this induces capital in- which preceded it and the period
definitely stimu- ity of the general recovery. Dur- vestment in order to raise the out- that will follow after it.
I
have a picture of ecoasize too-strongly tins
Since the first
nomic growth which reveals a 10personal income has been rising more subdued and little more than It is the surges in population
year period, 1947 to 195T, when in
Space does not permit my discpiarter by quarter. Increased em- a neutral force in the
economy.
growth which create imbalances physical terms we grew at a rate cussing such important questions
ployment, moderately higher
our survey ,qf private capital between the working age group of of 4% in comparison with a long- as inflation, the European comwages and larger dividend payexpenditures indicates little the population and the consuming term rate of 3% We are now in mon market; the freeing of inter¬
ments resulting from better corchange in the overall figure as be- but not producing age group. This a roughly five-year interim period nationa1'<?urrencies» and forei^
porate earnings assures the tween 1958 and 1959 but the trend creates periods of labor shortages when
the rate of growth will be competition, but thesetoo are part
economy.
ing the next few months the rise put of goods and services. It is not
quarter of 1958 in the inventory cycle will be population alone that is dynamic,
^
continuation
of
this
trend
so
we
charactei of chang€*
this
.
in the early period of this year which business strives to offset by more moderate, say at an average
personal will continue downward and then capital investment. Capital invest- rate of little less than
3%, with
Income in 1959 will be $14 or
$15 level off in the second quarter, ment is a major motor in economic the
prospect of a more dynamic
Pinion greater than in 1958. ResFinally, the effect of the wage ne- growth so that in a period where rate of growth beyond.
<
toration.pt public confidence will
gotiations in the steel industry a high level of capital investment
it took many businessmen and
cause tnese funds to llow into the
must be recognized. No one knows exists a high level Of economic investors in the late 1940's a
long
cpenamg stream. Basically, there- for certain whether or not there growth results.
time to recognize the powerful
of the changing pattern of the
times.
Jviw
year progresses.. Growth in the
next few years will be-at a more
We
year.
estimate
that
f^To^n
y1®1?1 wiH
on the
rests
2c. Sf
these
consumer ex-
•+1^
a
dustry.
x
strike in the steel in-
However,
the
prudent
The 10-year period that culmi- and far-reaching economic implinated in 1957
was
a
period of
ma-
cations of the changes taking place
To sum up and bring this paper
to its conclusion: Nineteen fiftynine will be a good business year
but not a super year. The recovery will" gain momentum as the
consumer of steel will strive to terial economic growth during in the
P^eet himself against either which our growth in terms of groups
shortages
or
price
increases
relationship of the age moderate rate than in the period
in the population. The 1947 to 1957 but as we move
as dramatic through the
1960's- this growth
ices increased at an average rate as the changes that took place in will accelerate into another dy0f about 4% a year, or approxi- the postwar decade. For example, napaic period, an era of scientific
mately 0ne-third more than the the Strain put upon family re- break-throughs on many fronts.
historical long-term rate. Thispe- sources to give higher education Don't be deceived by a slowing
rj0(j was characterized by several to the rapidly increasing teen-age down in the rate of recovery durkey economic facts: (1) a relative population will divert money cus- ing the nearer term. Keep your
shortage of labor because the birth tomarily spent on durable goods sight on the longer term; Ours is
rate declined from the mid-1920's and luxuries. The caloric require- still a growing economy but a
the late 1930's; (2) a pent-up ments of a teen-ager are mate- changing one. Opportunities for
by physical output of goods and
Luilding his inventories in the first
serv-
coming change is just
afhit is pot half of the year. This means a
SS force capital expendi- slow-down m the third quarter,
inH
IiInS m n?
either because of a strike or the
f^nps fn
^ S positive normal working down of the ternHowpw.
P<ThA^muKitL twSp icJpi ten
C01?1Pa:r^0n
can b.e misleading Will this slow-down in the rate^of
^a
S COnC?rnrep°Jer^l xF^f^f rmsgivmgs in the
the coming monttis mav'raove
Extremely ODUnSsSc^
demand for all forms of goods and rially greater than those of an in- profitable employment of our
inrhin**
hwJ
optimistic.
services resulting from the depres- fant or young child, as are also the talents arid capital exist for those
-ti^
n
an
wni
fhiQ
rnfA nf
i
_
*
in
SSipa
vl orr?,
I
There
certain negative facL auJna
iht warned tors to think about in the months
£r>cr
aLead insofar as sentiment is conI.Vif xxrotn k
L*
0cerned. The possibility of labor
i
oeing
carried
a
•
art oinef
«
j
troubles
culminating
in
a
sion of the 1930's and World War
II; (3) capital expenditures for
production and distribution of new
products and processes generated
expenditures for clothing, entertainment, etc. Time prevents going
into, an extensive discussion, but.
I think the foregoing is sufficient
steel by research carried out during the to stimulate your imagination.
Who have the imagination: to reeognize these changes. American
business has always met this challenge; JLet us face the future with
Vision and confidence.
Volume
Number 5824
189
.
.
.
The Commercial and Financial Chronicle
(997) : 29
Continued from page
15
despite constant material and
cial change.
But not until
Free
think,
Society's Education
In an Age oi Change
"scientific"
sources.
It requires much more.
It calls for a dedication to victory
as vast and inflexible as the ene¬
armed with
my's, and
up
to the sacri¬
fices and the risks involved.
_
Marxism.
of
the
Such
swift, as fundamental
being made.
grim
technology must stand
eternal warnings in a time when
more and more material
power is
being gathered into mortal hands.
Facing Up to the Challenge
\
"I'TVA'
Burgeoning
—On All Fronts
t? We
Normal
Demands
must face up manfully to
the Communist challenge on
every
larger,
front, and this most certainly in¬
gents
cludes the vital field of education.
of this technological age.
I have
myself offered proposals, at vari¬
ous times, for
stimulating science
Rarely has this nation been as
deeply conscious of the problems
of education
t
we
as it is today. I wish
pretend that this new
could
interest reflects
learning, But
sudden love
a
of
know, alas, that
it was touched off by fear—the
fear inspired by the growing tech¬
nical competence of Soviet Russia,
as
we
dramatized
by its Sputniks.
It is both ironical and
ing that
been
we
.
disturb¬
Americans should have
alerted
to
the
new
impor¬
tance of education by a brutal to¬
talitarian state.
We have always
~
equated education with
Certainly
we
must provide
ever
competent
contin¬
specialists for the tasks
more
of
studies and expanding the pools of
trained technical personnel so vi¬
tally needed to meet the require¬
ments
of
our
National
Defense.
Even if the
would
we
Soviets did not exist,
still have to meet the
burgeoning manpower demands of
industry, research, communica¬
tions, weapons. The Soviet accom¬
plishments along these lines have
simply dramatized this need and
more imperative.
^
'
But we would be killing the
goose that laid the golden eggs of
our civilization if, in the preoccu¬
made it
freedom,
specifically freedom of the mind.
Could we be outstripped
in} the pation with material progress and
classroom by a society which out- ' power, our institutions of learning
t
laws the free intellect and creative
audacity, by
a society rooted in
irrational dogma and buttressed
by censorships, • thought controls
v
;
and murderous terror?
We have rested our educational
t
faith
on
the
Biblical
injunction:
r"Ye shall know the truth and the
truth
shall make
in Soviet Russia
free."
you
only
But
carefully
a
restricted segment of the truth is
being
explored
-
and not to make
-
to
more
and
men
enslave
exploited—
free but the
them.
Has
our
faith then been misplaced?
Shall
"Ave allow ourselves to be intimi¬
dated
into
'
limitations
;J; Of
accepting the enemy's
on
course
truth?
the
answer
sober consideration
our
is No. On
traditional
•
equation of education and truth
'appears to be not only valid but
{more significant today than ever
in the past.
We should
try to understand the
nature of education in a totali¬
tarian state, in order that we may
not rush blindly into aping it. And
;
time, I
of those
validity
profound,
barbarism
new
the
so¬
,
own
Securities Salesman9s Corner
ideas and ideals been
subjected to
tests of change as
as
facing
a
exhibits
has
•
our
those
as
as
now
By JOHN BUTTON
Our generation has been chosen
by
destiny
More than
for
ever
great
Two Authorities Tell You How to
decisions.
Sell More
before, therefore,
require robust intellectual and
spiritual leadership. To ignore the
Effectively
we
On several occasions
during the
through life the better, and it does
past few years we have com- help to
say "thanks."
pressing changes would be to ac¬
mented on certain ideas that have
cept disaster by default. A keen
been taken from Modern
A Tax Saving Idea
Security
and continuing awareness of their
This same issue of MSS car¬
Services" which is published by
reality seems to me essential.
Voorhis
and
In discussing education a few Kalb,
Company, ried an article entitled "Double
members of the New York Stock duty." I'll just give you the highyears ago, Dr. Arthur H.
Compton
The
said: "Science is forcing man to Exchange, who have their editor- lights here —- as a sample.
ial
offices
in
the
Woodward great
flexibility
that
can
be
make
decisions that will either
Building, Washington, D. C. This achieved by alert tax planning is
ruin him or educate him to
great¬
helpful and practical service is illustrated in the case of a widow
ness." But science itself is no
help
primarily
devoted
to
assisting aged 70 and one grown son who
in reaching those decisions.
They salesmen in
meeting the prob- was married. The widow's taxmust be drawn from the ethical
lems involved in
merchandising able estate,
after probate
and
and esthetic wisdom of the race
and selling mutual funds.
other costs was $190,000. The Fed¬
of men: the wisdom
enshrined in
religion and art and instiutions of
justice.
Our fate will not be decided
material
tant
prowess
that is for
as
by
impor¬
mere physi¬
alone
our
cal survival.
Ideas and
hunger
human
for
—
ideals, the
and
dignity
self-expression, will weigh heav¬
ily in the scales. If our supremacy
in technology has been
opened to
doubt,
our supi'emacy in these ele¬
ments of the human
spirit is still
Ferd
whom
Nauheim,
we
have
the
known
viet
Tax
estimate
First
ing
Excess
$30,000
All her
property after taxes
in
the
investment
Another member
team
is Baron
G.
of
$160,000
13%
business.
•"
tax
—
$20,700
'
an
experienced expert in his field of
assisting investors to achieve taxsavings through the
intelligent
to
to her
go
—
-
tax
—
She
son.
was
wished
to
$9,000 on the top $30,009
her taxable estate. This wao
sa,ve
use of
trusts, gifts, and indirectly
helping salesmen to increase their
problem as she had not used
lifetnne gift exemption of
Following are two examples of $30,000. But if she made the gift
linquish that advantage.
the tvpe of suggestions which ap- to her son she would lose the init connotes. The problem, I some¬
Science provides tools and op¬
times suspect, is at least in part
pear in this service. Many of the
cTome }t<was Producing for her and
portunities, but it has no built-in
semantic.
One wishes, that is to vetoes on
the purposes for which helpful ideas presented can also she might need it sometime in the
be applied to the sale of general
say, that there were another word
*u;l„ire,*
they will be used. Thus its every
market securities.
to
.If she made a gift of the prin¬
distinguish education in the achievement is also
a
test
beyond
question.
humanism
and
Let
not
us
business
and
mutual
fund
her
sales.'
re¬
of
retreated from
the
,
.
all
.
older and
deeper
cation that is
and
sense
from edu¬
essentially vocational
utilitarian.
cipal and retained the
permanent values
emphasized by
Dr. Sachar. Our rapid
conquest of
Say, "THANKS"
Thankful
...
That
You
Did.
outer space will be an
empty vic¬
Here's the way this top-flight
compelling tory if it leads to
neglect of inner letter writer suggests that
you
need for more and better plumb¬
space—of man himself, his gifts of might write to a customer
who
ers—the plumbers of electronics,
contemplation, his passion for gave you the order:
nuclear power, space exploration
freedom and justice, and his hun¬
and the rest—without reducing all
Dear Mr._—_____—___
ger for salvation.
human existence to plumbing.
"Even though 1 expressed
my
Refers to Pasternak
The
greatest
truths, those of
appreciation yesterday I
had to
In recent months the name of
prophecy and poetry, cannot be
obey the impulse to tell you again
"proved" in laboratories.
They Boris Pasternak, a Russian-Jew¬ that your decision to
accept my
cannot be analyzed or appraised ish poet, has been
very much in investment
suggestions means a
by electronic computers. Yet those the news. He seems to have given great deal to me.
are, in the last analysis, the truths the Kremlin leaders a case of jit¬
"My earnest hope is that you'll
we
live by.
While maintaining ters because he wrote a novel— always feel well rewarded for the
leadership in science and technol¬ which they, of course, suppressed step you've taken — that you'll
ogy, therefore, we should not yield —placing
man
above the state, always call on me whenever you
We
can
admit
the only way her estate could
avoid paying the $9,000 in estate
was
the
taxes.
A gift was made to her son
of $30,000 in mutual fund shares.
A
inch in
respect for the free
society we mean to defend, and
the many-sided humanistic edu¬
our
love
above
above
In
class
political
an
struggle, virtue
dogma.
interyiew with
want
any
information
assist-
or
ance.
a
Swedish
examination of So-
.
——
.
.
*
and
she
found
that lack of income from the $30,000 somewhat handicapped her
style of living. The son and the
wife agreed to pay the income
they received to the mother but
if they gave it to her after it was
paid to them it would be subject
to
income
avoided
tax
to them.
by creating
a
This
was
Reversion-
Trust for her benefit.
ary
Under
the terms of this Trust the mother
received all the income and
ital
gain distributions from
fund.
mutual
"Cordially,
.
?
passed
year
k
an
income the
entire principal would be taxable
in her estate.
An
outright gift
You'll Be
educational
Trust
71
der
the
cap-
the
time
the
created the mother
was
was
old, therefore the value
years
of the
At
gift of income for life (un-
the
terms
Trust)
value,
the
of
Reversion-
26.2% of the $30,$7,960. (The Treas¬
ury Department has set up tables
ary
000
at
which
was
or
these valuations
can
be
determined),
This gift was "tax free" to the
and
son
nual
his wife under their
exclusions
emptions.
and
The
an-
lifetime
son
ex¬
named
was
Trustee of this Trust and his wife
successor
would
Trustee.
be
never
mother's
estate
The
principal
involved
as
she
in
the
had
never
title to it, only the income rights.
Mother is still living in her accus-
tomed^style,
she has saved the $9,taxes, and the son
and his wife are also happy about
the whole thing.
There was no agreement prior
to the mother's gift to the son that
the reversionary trust was to be
in
000
estate
established.
(This
is
important.)
The mutual fund shares had been
registered in the son's name for
a year and
they were transferred
to
the
cided
Trust
when
that
de¬
was
upon.
Can you see the possibilities for
security salesman,
any
or
mutual
"
loose
dead,
years.
.
from
moral
standards
restraints,, can
monstrosities. We have
humane
and
become
seen
the
hearts
Cannot
Mass Produce
Our education
Education
cannot, except to
hideous, dehumanized acts of those the peril of all that we most cher¬
Nazi medical research laboratories, ish, be diverted exclusively to the
attached to extermination camps, mass production of engineers and
where in the name of science hu¬ technicians. It must remain loyal
even
in the
of the Kremlin's long-suf¬
fering subjects.
Brandeis
University
happened
is,
in
the
to
the first time
MSS
him
I
before
ever
suggests that this
decide
to
do
(this
is
heard of it).
man
final analysis, engaged in nurtur¬
as
you
and educated REGARDING SUCH
TAX SAVINGS AS THIS?
1
may
suggested,
possibly at a later date; or if he's
ing that kind of love. It is, there¬ with some friends and
you have
fore, doing a work crucial and cen¬ demonstrated your knowledge of
tral to the solution of the dilemma the
subject and the conversation
man beings
were used as guinea to ideas and ideals which are tran¬ posed by this
Age of Change. It turns to investing or to mutual
pigs; and the ruthless Communist scendent and universal; which merits the support of all those funds the chances are
he will re¬
"liquidation" of entire classes of have served the human race who recognize the urgency of the member
you. At any rate, the more
the population in the
name
of through the centuries and millenia challenge.
friends you make as you journey
■
$9,000—
this talented
Helbig, also
as
was
years, is one of the most capable
creators of direct mail advertis¬
;
'
Estate
follows:
many
cation that has always been and professor shortly before he was
remains its hallmark.
awarded, and then forced to re¬
The foregoing letter is sincere
policy and purThis view was once expressed, ject, the Nobel Prize for litera¬
without being too friendly; it is
j poses gives us the right to doubt
with his usual felicity, by Sir Win¬ ture, Pasternak had this to say,
'7 whether
what passes for educa¬
and it should
concise
help any
ston Churchill. He said: "Our in¬ among other things:
tion in Soviet Russia—and now in
salesman to cement a relationship
"In this era of world
heritance of well-founded, slowly
wars, in
and
lead
to more business and
I Red China as well—is worthy of
conceived codes of honor, morals this atomic age, the values have
radiation.
that proud name.
and manners, the passionate con¬ changed.
We have learned that
Another novel approach is sendThe unlimited dedication to sci- victions which so many millions we are the guests of
existence,
ing a letter .after you have been
: ence
and technology
repeatedly share together of the principles of travelers between two stations. We
turned down. You have called on
advertised by Premier 'Khrush¬ freedom and
justice, are far more must discover security within our¬ a
prospect one, two or three times.
chev and his confreres is just one precious to us than anything selves.
During our short span of
He was interested, pleasant and
more aspect of their fanatic comwhich scientific discoveries could life we must find our own insights
cooperative but he did not buy.
mitment to purely material and bestow."
into our relationship with the ex¬
MSS suggests that in certain cases
istence in which we participate so
power goals. It has precious little
Nothing that has happened since
such a letter as this might be sent
to do with what mankind for milhe spoke, not even the Sputniks, I briefly. Otherwise, we cannot live!
to that man who did not buy.
lenia has regarded as education.
"This means," he
am confident, has shaken his faith
said, "a depar¬
U1_
,,
The Soviet hierarchs hardly bother
in that concept. And it is signifi¬ ture from the materialistic view
Dear Mr.___—
to conceal their contempt for all cant
that Sir Winston was speak¬ of the 19th Century. It means re¬
My warmest thanks. Yesterday
"the ethical and esthetic, liberal
ing under the auspices of the Mas¬ awakening of the spiritual world, you gave me one of the most pre¬
and spiritual values woven into
sachusetts Institute of Technology. of our manner of life, of religion. cious things
you have
some
our educational philosophy.
That setting, and the presence of I don't mean religion as a dogma of
your time. I deeply appreciate
...}
Soviet schooling is not concerned eminent scientists did not deter or as a church, but as a vital feel¬ the attention and the
courtesy
with the happiness and prefer¬ him from putting what he consid¬ ing." These are the ideas for which
you gave me. I enjoyed our meet¬
Pasternak was
ences and creative drives of the ered first things first.
degraded in his ing and only regret that I did not
individual man or woman, but
and became famous bring you something that will
It is true that our schools must hpmeland
solely with fortifying the might of place more emphasis on mathe¬ abroad.
benefit you.
a faceless state.
"Its aim," it has
His eloquent words have a spe¬
"My sincerest good wishes,
matics, chemistry, physics and
been well said, "is not to produce other such
cial dimension of power precisely
"Cordially,
disciplines, but it is no
whole men, balanced personalities less
true that our technical and because they derive from the
for life in a normal society, but
poet's experience in a time and
engineering schools must allot
MSS suggests that it is a star¬
half-men with bulging scientific more
a
country fanatically committed
space in their curricula to
tling experience for anyone to get
muscles for life in its own abnor¬ the
humanities. Most of them, in to materialism.
They prove, we such
a letter after
saying "No" to
mal environment."
fact, have begun to do so in recent must hope, that the love of right¬
salesman.
It
probably never
eousness is not
Science and technology, if cut
even a cursory
■'
eral
editor,
for
Now With
Proctor, Cook
(Special to The Financial Chronicle)
BOSTON,
Mass. — James
G.
Birmingham has become connected with Proctor, Cook & Co., 10
Post
the
Office
Square,
New York
Exchanges.
and
members
Boston
of
Stock
Chronicle
The Commercial and Financial
30
Thursday, February 26. 1959
.
.
.
(99,8)
Continued
jrom
be uncertain. The final arid defini¬
18
page
tive
Again demonstrating their usual
efficiency,
Norfolk
&
Western
Railway and Virginian Railway
have come forward with prelim¬
consolidation.
a
export
However,
tion.
at
of soft coal continue
a
complished. Rail observers are of port coal shipments. It is report¬
opinion that this accelerated ed, however, that demand for soft
action reflects in many ways upon coal from abroad is beginning to
increase and this should benefit
the operating efficiency of the two
both of these roads substantially
roads.
Both of these bituminous carry¬ in coming months.
It
is
interesting to note that
ing railroads have
approved a
almost simultaneous with the an¬
plan of merger which would call
nouncement of the terms of the
for a tax-free exchange of stock
Norfolk & Western and Virginian
on the basis of 0.55 share of Nor¬
folk & Western common for
common
plan, that the
merger
land
addition, th N. & W. would issue
start
the
New Eng¬
announced
of the groundwork for
railroads
have
6%, $10 par value, cumulative possible consolidations or at least
non-callable preferred stock with the coordination of facilities. The
voting rights which would be ex¬ roads in this group include: the
New York, New Haven & Hart¬
changed for the outstanding Vir¬
ginian 6%, $10 par value, cumu¬ ford; Boston & Maine; Maine Cen¬
lative non-callable preferred with tral; Bangor & Aroostook and the
Rutland Railway. Lately the New
voting rights on a share for share
basis.
One factor which has en¬ York Central has agreed to per¬
abled the two roads to formulate mit the controlled Boston & Al¬
bany to participate in the discus¬
a consolidation plan fairly rapid¬
capi¬
ly is the simplicity of their
The consolidations of these
sions.
would provide
railroads
talizations.
substan¬
since
they have relatively short lines
enabled the roads to move fast
and
many
duplicating facilities,
is the fact that large blocks of
especially yards which because of
stocks
are
fairly well
concen¬
trated.
Pennslyvania Railroad at high operating costs add consider¬
Another
factor
which probably
57.96% of
preferred
stock and 42.61% of the common
stock.
Eastern Gas & Fuel Asso¬
3957 owned
the end of
Norfolk
ciates
tial
97%
owns
Virginian
of
Corp. which in turn owns 3,807,905
shares of Virginian Railway, or
50.42%
of
Virginian
Railway's
ably to operating expenses.
the
been
quoted as stating that
proposed
merger
in
their
opinion is in the public interest
and will provide substantial bene¬
fits to the* stockholders of both
is
It
railroads.
that
reported
a
detailed
plan of merger will be
developed as promptly as possible
and submitted for approval by the
directors and stockholders of the
two railroads and also to the In¬
terstate Commerce Commission.
The presidents of the two
in
roads
stated that
thfeifc studies showed that savings
of about $1 million a month can
be realized through the elimina¬
tion of duplicating facilities, effi¬
a
joint
cient
statement
of
use
motive
and
power
Terminal Go. Stock
offering
Fort
of
shares
Terminal Co.,
2,138,500
Port
&
of
Pierce
common
stock at a
price of $1.25 per share was made
Feb.
on
24 by
Frank B. Bateman,
Palm Beach, Fla.
being offered
Ltd., 'of
shares
are
The
as
a
speculation.
proceeds from the financ¬
The
ing will be used by the company
repay
short-term
loans;
to
complete the first phase of its port
development program on the Fort
to
Pierce, Fla., harborfront. The bal¬
ance of the proceeds will be added
the
to
and
general funds
could be used for part of the
would
in
now
fact
being served and
"result
in
better
service."
The
new
consolidated
system
total
would
have
of
some
assets
$938 million. In 1958, Norfolk &
Western had net income of $43,-
second
phase of its development program.
Fort Pierce
to
& Terminal Co. in¬
in the develop¬
operation of its harborproperties in the City of
Fort Pierce, Fla., as a deep-water
port facility, including stevedor¬
ing and ship agencies, and the
development and operation or sale
of other portions of its property
as industrial,
commercial or resi¬
dential areas. Incorporated under
engage
ment and
the
laws
of
on
Oct.
16,
the
State
Florida
of
the
1956,
company
business
operations
501,898, equal to $7.57 a common commenced
share, on gross revenues of $203,- Feb. 25, 1957, when it acquired a
946,296. This compared with net
major portion of its property from
income of $44,535,759 or $7.75 a
share in 1957. Last year Virginian the former stockholders. The com¬
showed gross revenues of $49,754,- pany owns 3,000 feet of harbor527 and net income of $11,578,204, front
property in Fort Pierce with
equal to $3.24 a common share as
an area of about 49 acres, together
compared with gross revenues of
$64,624,675 and net - income of with 64.4 acres of submerged
$17,(397,290 equivalent to $4.93 a lands adjacent to the property.
common
share
in
1957.
Conse¬
quently, the savings could add
considerably to the earnings of
the combined companies.
Both of these railroads
haulers
of
bituminous
as
large
coal
are
highly dependent upon heavy in¬
dustry and, consequently, traffic
Was hurt by the general business
Digitized recession. Carloadings are begin¬
for FRASER
the French also announced
the construction of a plant to sep¬
year,
authorized
Total
of the company
000
shares,
shares,
were
or
capital
stock
consists of 3.500,-
of
slightly
which
1,229,500
more
than 35%,
issued for real property con¬
veyed to the company on Feb. 25,
1957
by
holders.
its
then
existing
development -- isof para¬
mount importance to the national
economy
and defense. "There is,
Euratom, which will receive an
important
quantity of enriched
uranium from the United States,
is
beginning
erection
the
large program of
reactors in
a
industrial
of
future, and there i^ evi¬
that other western
Euro¬
near
dence
nations are alert to the po¬
tentialities of nuclear energ/.
pean
The status of nuclear energy
reflects
States
United
the
ii
our
comparative wealth rather tha i
thoughtful foresight. The policy
of the Atomic Energy Commission
until
lately
can '• be
expressed
modo as follows: The
United States is a very rich coun¬
gro-sso
great resources in fossil
and with great hydro-elec¬
potentials still unexploited.
There is,
therefore, no urgency
to
begin
constructing
nuclear
power reactors immediately. Any
plants we build now will inevi¬
tably reflect our lack of engineer¬
try with
fuels
tric
ing know-how. They will be too
expensive to compete with fuel or
water-produced power. So let us
wait.
Let
investigate.
us
Let
us
out just,
which type of reac¬
will be most efficient. Then,
the
all
has
stock¬
n
There
read
to
seems
be
outlined
trend
a
and
change in
we
have
few days ago the
a
proposal
of General Electric for immediate
construction
of
series
a
of
reac¬
V:-
throughout the nation.
tors
development,
engineering
times
favor
competitor with
a
is
v.. c.
sufficient
to
may
great
a
,
advance.
It
some¬
"know-how"
new
a
/
stat^ simply
that the Russians are in a well ad¬
of development and
of power plants in
vanced stage
construction
comparision with anybody; else.
I
was
present at the Second
World Conference in Geneva and
to
still
the
that
note
this juncture
United
States
is
the
only nation able to pro¬
quantity the -enriched
uranium
fuel
required by ad¬
vanced types of reactors.
Dr. Walter H. Zinn, in his re¬
in
duce
the Joint Congressional
on
Atomic Energy,
thorough appraisal of So¬
atomic power developments.
to
port
viet
He
is
-
should be eliminated andmuclearfuel
a
strongly impressed by the
be
rent
the
come
Effect?
What Will Be the
substituted. If
rents
ment
sole
source
income,
of ^govern¬
tax
bookkeeping
The great upward-surge of the : and related problems of both gov¬
world's population; which is now
ernment and industry would. be
going on and which makes tne de¬ vastly simplified—and The indi¬
velopment of nuclear energy an vidual taxpayer's lot made mucn
immediate and urgent- necessity, more pleasant.
'
y
will be sustained by it. jWith this
Technological
unemployment
foreseeable increase in the num- ... will
wipe out entire strata .ftbf
hers of men, will come perhaps
labor. The ones to suffer-most.trill
less predictable but no less cer¬
be the so-called specialized work¬
tain changes in economics, affect¬
ers, many of whom will disappear
ing both capital and labor, re-' to join the masses of unskilled or
quiring changes in education and to be re-educated for technical
in
social anci cultural-activities.
employment. This trend is natural
Increased population will make
and irreversible. Already we?see
it necessary for large popu ations
the process at work as automa¬
to live in regions now but sparsely
tion advances, with machines tak¬
populated. Cheap nuclear power ing over the work of men's hands
will make
this population shift and minds as it
originally took
possible.
over
the handling of dangerou ly
The exigencies of manufactur¬
radioactive materials in our f*rst
.
and
history,
ing or communication by sea
rail
throughout
which,
nuclear
we
concentrations of
have determined
a
ties
small
relatively
electric
size.
\
•'
..
.
(c\
v
And this is one of the best prog¬
nostics
the
for
There
is
resemble
machines
aligned
in banks and insur¬
men
other
in
firms and
cial establishments
if the
that,
will
plants, great halls
patterns with only a
supervisors' checking dials
lights. Electronic -brains are
ance
commer¬
calling for ex¬
calculations. J*The V
tensive
cities of today were to con¬
to expand and the new in¬
dustrial revolution were to keep
big
sartie
displacement is going on in .re¬
and development, in road
tinue
search
building and other
present pace, we could expect
disorder and, inevitably, a
its
;
replacing
future.. ?;.
doubt
no
more
workers
in functional
few
*•-'! and
:'~y-
fewer
soon
power
automatic
with
in
uniform
and
More and
and
production lines. Authori¬
predict that our industrial in¬
stallations
New communi¬
in the future will tend to be
decisive effect.
ties
reactors.
fewer
see
the
on
population—as in the Ruhr, Lon¬
don, New York and nearby sea¬
board cities—will no longer have
-This
construction*.'
new indus¬
only in its in¬
already we are
The only way out - of it is the
gradual dissolution of these cen¬ witnessing the impact of obsolete
science on automation machinery
ters and the establishment of ho- i
as
massive
machines employing
mogeneous, smaller communities,^
vacuum
tubes
are
replaced < by
built
around
nuclear
reactors.
smaller devices using transistors
These communities will have to
social
government of dictatorial type.
r
geneous
ceptible
best
the
assurance
Even
is
so,
instead. Now before electronic de¬
vices
■
community is less sus¬
to extremist influences
offers
and
of the
aspect
revolution
trial
fancy.
of
have
assumed
-control*
of
developing
competent machines which
production,
more
will take
we
over
are
the human function
of
supervision, of catching and
correcting mistakes. It is alto¬
gether, possible that, in the future,
democracy.
These we shall be able to construct ma¬
communities may well be self-' chines that can think, learn, gfow,
sufficient or one-product,'one ac¬ and make duplicates of themselves
tivity grouping as a part of a gen¬ with built-in instructions to do
eral plan.
the same useful work. The proc¬
'.V■' '
perpetuating
,
Committee
made
producing investments.
For the long term, exactly the
opposite situation may be" con¬
sidered
as
a
possible develop¬
ment, and
reactors ■ could quite
properly support the government.
It is interesting to speculate about
this. Suppose, for instance, '(that
taxation as we now know itjin
all -'-"its*
incredible
complexity
paid for nuclear fuel were to be¬
Lately, in one of his public ap¬
pearances, the commissioner, Wal¬
ter H. Libby, mentioned that the
Atomic Energy Commission is de->
consist of technically educated or
veloping now the construction of *
re-educated
citizens capable of
a
dual reactor, producing power
useful work.
"-i-.?~
and plutonium, in order to eval¬
A satisfied, well paid and homo¬
uate its usefulness.
*■.
It is interesting at
priations.
By
all
means, f they
should not be regarded as income-
fully agree with Dr. Zinn's opin¬
I
every reason to as¬
such government invest¬
ments into future military appro¬
is obvi¬
ously apparent. In the complicated
been
tion.
the
winner
the
where
races
consequently,
similate
ion.
arate U235 from U238.;
company's
cost of construction of the
They also said that these
can be expected with¬
eliminating service to any
community
atomic
on
preliminary spade
done, carefully
and
methodically,: after all the
necessary
preliminary tests, we
shall proceed with a large pro¬
gram of nuclear
power produc¬
front
out
peacetime uses of
energy
in Geneva this
conference
when
Fort Pierce Port &
tends
economies
which, too, are on an industrial
scale. At the second international
work
equipment and economies in
transportation and
general ex¬
penses.
place in France which has erected
a
number of reactors,. some of
tor
Baleman Firm Offers
Public
Officials of Eastern Gas & Fuel
possibly other countries. The same
of
development
is
taking
sort
lind
voting stock.
have
particularly
savings,
;Western's
&
a
with a promising export business, bidding
higher rate of steel operations and on the erection of natural ura¬
a
pickup in automobile produc¬ nium reactors in Italy, Japan, and
the
each
share of Virginian.
In
in
engaged
already
ning to pick up currently
shipments
low level
These two roads announced their as compared with 1956 and early
Production abroad has in¬
intention of such a move only last 1957.
November.
A number of other creased and there had been some
Also, foreign coun¬
carriers have been talking about stockpiling.
tries did not wish to lose their
making studies of possible mer¬
dollar balances and this was an¬
gers or even coordination of facil¬
other factor in keeping down ex¬
ities but little so far has been ac¬
for
plans
inary
is
land
fi¬
must
nuclear installations is that
their
Eneigy, Economy and
Society in Transition
Proposal
Norfolk & Western and Virginian Merger
government
reason
nance
Government capital, in the form :
of
the
energy
is inevi¬
presaged by
sourcer
This has been
table.
ess
1
could continue
In
a
indefinitely.!
of the nineteenth cen¬
man
this concept would inspire
unreasoning terror. In a man of
mid-twentieth
century,
it
tury,
fact that Soviet technical progress
government ownership of hydro¬
electric
plants,
a : phenomenon
the
is
which has grown
should
rapid
with the
and
coordinated
of building in¬
closely
program
termediate and large size reactors.
As in the
U.S.A., the Soviet Union
several dif¬
reactor* but has a
is experimenting with
ferent types of
definite-policy, of rapid "scale-up"
with reactor types first built as
50,000 kw plants and then fol¬
lowed by large scale power sta¬
tions
with
capacities
up
to 600,-
000 kw.
generation of electric power.. By
contrast, conventional fuel-using
plants are comparatively inexpen¬
sive to construct and, in this coun¬
commonly been built
Nuclear power
plants will be expensive because
have
try,
with private funds.
their fuel constitutes a large
the
Conference
on
Second
peacetime
World
uses
of
atomic energy, the Soviets showed
a
film reoresenting such a large
initial
the
of
During
along with such
plants since 1910 when they first
became an important factor in the
investment.
part
Only
to
the
replace
part
used
nuclear
able
question which always
arises
The
auestiou
ural, but the
plex 'than it
We
are
answer
is
be
nat¬
more com¬
at first glance.
witnessing horse
seems
not
may
concern.
automation
most
is
merely
the
aspect
clearly visible.
I wish to speak not as sociolo¬
gist, or economist, or educator,
or political
scientist, b**t as an en¬
gineer. I wish to extrapolate, as
accurately as I can from the evi¬
dence
now
available, the major
of the
tors1?
The first
informed
address
myself here¬
after to the possibilities of a fu¬
ture of abundant energy, of which
to
fuel
is, are we or the Soviets
ahead in the development of reac-
tonium and power.
inspire
wish
small additional quantities of fuel
will be needed from time to time, implications of the exploitation of
nuclear power.
is,
government
monopoly. However, this is only
one reason
government wiU pro¬
vide
capital for nuclear plants.
Other reasons are that there :.is
not enough private capital avail¬
plant of 600,000 kw somewhere in
Siberia—this plant producing plu¬
I
initial
and
by
load.
will
to
This
remain,
finance
contrast,
a
such
there
plants and*
is -too much
of early
risk. The earning Caoac^y
plants in
the United States will
Implications of Nucleonic
Exploitation
rw
r..
Man's whole history, until this
moment, has been lived under' the
shadow
of-scarcity, of insufficient
inadequate
shelter.
This
scarcity has been a measure of the
availability of energy. Even/the
•food,
present relative abundance in the
United States has not ftifeant suf-
Volume
fieient
189
Number 5824
food
.
.
.
The Commercial and Financial Chronicle
adequate shelter be faced immediately, with courpeople-at the bot-. age and initiative, lest the trethe«ocio-economic ladder, mendous new energies we are
We still retain in our?
vocabuia^^hbjcwt,.to unleash be turned ignothe plirase "poverty-stricken"- and rahuy 'against us. - < - -
for those of
or
our
tom of
all> understand r-its
How a many- of us
connotations.
have
the
used
v?*»r
-
■«
-
.*•
•• •*•••„„■• y
■
■
on-Industry Impact
*.
>^^,r ,we have considered only
connotatioiis?^y?:i:;..jhe jrppaet lof nuclear energy on
phrase "leisure stricken?Vor giveny :
thought lo its
leisure wiU
-industry, It must be noted that
major problems with which* indi-. agriculfep, will also be affected,
vkluals,
families,
and
govern- - In the., Jast century, in the United
ments will be faced. -The*average States^.first automatic
machinery,
be
soon
one
of tl^
.
industrial.work .week will, prob- <as
ably^very
be
soon
no
-im-the reaper and thresher,
made it possible to substitute the
than
more
twenty, hours. In" the not-distant, energy-of draft animals for hufuturev it may very well ibe.less. ..-meh ^Ib^tf ^hen steam power supWhat
kind of problems will*' it:planted
horses,
especially
in
create?
"
/ >
*z\'
*
threshing in the great grain lands
,
.
°.f the west5 .in the last generaprbblems of leisure will be dif- "OI! 01 two, internal combustion
ferent for different types of per- ^nSllieSyhave all but completely
sons in different environments.
replaced draft animals in the field
%Ti the Pitied whibK'Wh..electric power in barn
>*rP\\
We
can
at
see
that
once
the
.nj.CrL.cAfQt'tTifet'Ppirl
r?,
fintrn
TYiarlA
it
-
Whose
iobs:
by
will
Beople, and constantly pile
u™
several
hundred
thousand
-
Sants
sdr
violence;
crime and
^an®ltl°
industry.
to
torg
'm
clear
in-
energy
Huet^n
,a
yelppment
can
.
see
is the de- '
of
fo0(f
families.
In
the
former
In-
factors—small
numbers
and
and increasing
of the less fortu-
some
the
in
world
today
mum
-
and
necessities of food, clothing,
That
poverty and
shelter.
use-
in
rtPPiivn
'^leisure stricken." They will
faced
will
world.
press, and
tions media to
this
••
.*■
;-.r
who
have
made it
inevitable, have
also,
They
mostly
made
who
are" men
educated
in
were
and
universities in which the old
con¬
cepts
and
of
an
world
a
cepted
divided
were
done
on
global
a
Some
unbearable.
ac¬
these
of
violence
to
of
change
their minds but their
me
to
ilar
not
only
Men,
and
govern¬
^V(Tendeli
them,
the
Willkie,
light fourteen
world—or
with the
threat
of
people,
particu¬
larly the present generation, has
not been prepared, through edueatibh or acculturation^ to spend the
leisure time that will soon accrue
to it in a socially desirable or digOur
'
a
velop
•
_
social
vanced
o
i
if
__
mi.
^
future—or
social
as
ad¬
scientific
tech¬
niques." Distribution of wealth is
essentially
a
local
turmoil,
can
tion
may
and
said
thus
be
prolonged.
made
dinner at the Chicago Bar Associ¬
ation The Investment Women of
Chicago
Meeting
To
speed
it
and
European
Common
the
Trade
community
should
Neel,
undertake
to
assist those to whom are entrusted
here that I do not
Free
will
Stein,
survive, that there will be
no nu¬
clear
of
ing social unrest and armed con¬
choice
our
will
The
war.
world
fear
masses
nuclear
to
the
discoveries
less
are
I
,
am
many
social
gap
who
will
elsewhere
colleagues
and
of
will succeed.
so
provide for us. We can¬
readily predict the uses to
which will be put
that
will
be
a
the new leisure
by-product of
abqndance. This will be a prob¬
lem for all segments of society, in¬
dividuals, families, and govern¬
ments. Acculturation cannot bear
preparing us
for leisure. Our culture has val¬
the initial burden of
than music, in¬
dustry more than art, food above
fun, labor above leisure. This, in¬
cidentally, is a good example of
the way in which technical de¬
velopments outrun social progress.
ued
money
more
of enter¬
grievously insuffieient to accommodate the needs
Because
our
resources
tainment are so
growing number of "leisure
stricken," it will certainly become
of
a
a
responsibftitv of government to
people to use their
free
time
constructively. .The
choice is clear, but we must act
immediately. It will not be easy
to educate large masses of people
educate
our
generation,
and, 1 *ear» this is 2111 the time we
have.' It is a problem which should
in one lifetime, or one
act
as
cling,
if
we
live in
instead,
to
a
and:" embrace
the
ENERGY
OF
EXPRESSED
XBased
THE
IN
Spear, Leeds & Kellogg; Wal¬
O'Hara, a partner of Thom¬
&
McJCinnon;
James
A.
O'Neill,, vice president of Conti¬
ter T.
U. S. A.
son
IN TRILLIONS OF B.T.U.
on
nental
"
Peaceful Uses of Atomic
Grain
Company;
and
Angelery, of Felder &
have raccepted appointment
Edward C.
McKinney Report op
Co.,
Energy) " T
.
chairmen
as
40
Divisions
tion
28
Kellogg will
of
man
ican
18
Stock
Mr.
16
in
14
12
10
of
L
J
1
I
0
2000
1980
1958
1900
Stock
New
Division;
will lead
York
the drive
Produce
Ex¬
Mr. Angelery will be chairman
the New York
Commodities
I
OF
ENERGY
'
'
\
McKinney Report
on
March
and
1,
to
raise $6,000,000 to meet
in the city and
Cross needs
ments.
Support is sought to enable Red
Cross
to
on
continue to aid
veterans and their
men,
service¬
families;
to maintain its blood, health and
safety programs; and to assure re¬
Peaceful Uses of Atomic Energy)
150
members
opens
its share of the national require¬
U. S. A.
TRILLIONS OF B.T.U.
EXPRESSED IN
(Based
THE
IN
for
is
part of a national drive to obtain
gifts totaling $95,000,000 to enable
Red Cross to carry on in the com¬
ing year. New York City ha3 been
Red
CONSUMPTION
FUTURE
AND
Division.
appeal
which
asked
ACTUAL
--7—-
lief to disaster victims in 1969.
A
TOTAL
With Lamson Bros.
(Special to The Financju. Chronicle)
CHICAGO, 111.—Edith M. Brown
"
has become associated with Lam¬
"
I
J
'
son
son
Bros.
& Co., 141 West Jack¬
Boulevard, members of the
New York and Midwest Stock Ex¬
70
As a matter of fact, and again
citing only the apparent need and
not attempting to specify the so¬
lution, it should be pointed out
that worldwide availability of nu¬
clear energy will make necessary
not only worldwide distribution
chair¬
Exchange
O'Neill
the
Exchange
80
,
as
York
serve
New
change Division;
Lend
Principle of Comparative
Advantage
the
Mr. O'Hara will head the Amer¬
20
changes. Miss Brown
was
with John A. Dawson
/
60
Red
Exchange Division.
22
longer to cling to nine¬
teenth-century thinking—that of
the era of the railroad. This is, of
course, a problem for statesmen,
economists, sociologists. As an en¬
gineer,*! feel impelled, however,
to point out that distribution of
essentials is a world problem and 100
requires
a
worldwide
solution.
90
whole problem.
York
chairman.
Mr.
24
merq stopgaps. They cannot solve
Exchange
New
Mr. Hooper, president of Man¬
ufacturers Trust Company, said
26
lease, Marshall Plan, point
four, all the piecemeal plans are
the
Chapter's 1959 Fund Cam¬
paign, it has been announced by
Eugene S. Hooper, Finance Sec¬
30
future.
not afford
the
of
of
Cross
SOURCES
DIFFERENT
railroad
Technically, we have moved into
the' twenty-first century; we can¬
to
James C. Kellogg III, a partner
tracks and the slow timetable of
the past.r We must abandon the
past
growth of
world market.
of
FUTURE CONSUMPTION
AND
ACTUAL
jet age. We
the
the
a
Aid Red Cross Drive
•
not
as
Wall Streeters
2
dance will
discuss
Latin America
American scientists
sure
their
to
apparent
them, especially because
and
bridge the
flicts.
destruction.
The beneficial aspects of the new
state
our
be
tribiiiion' of food, clothing, and
shelter was governed by a railnified manner.
*
/■;roa4 timetable. Today we live in
a
world or jet airliners. We are
We can predict with relative ac¬
unhappy-;\with our performance
curacy what use will be made of
because we lack the courage to
the goods ail economy of abun-r
the
and
growth of this market; aftd
institutions
Marjorie
H.
Rosen,
Mullaney,
in the easiest Wells & Company, Chairman of
and most successful ways, avoid¬ the Discussion Group Committee,
that,
"or none."., I believe mankind will
funds,
where
Roe
and
Mildred
Farnhatn,
the financial aspects of
cover
4
world
Market
Zone;
the
dis-
a
years, we
Discussion
a
painful, the scientific
The
in
have
"Foreign Trade."
make it less
6
nVed
will
on
The Panel will be composed of
Colina Clow, secretary to Dr. Melpainful chior
Palyi, who will discuss the
8
social technique.
Up until the last few
at
March
then. The truth of that statement
I must say
priced
were
were
CHICAGO, 111. — On Monday,
2 following their 6 pjn.
to
economic
and
^
techniques
'our
as
* _.x_. •!_
and
Chicago Inv. Women
Foreign Trade Panel
abundance. The process or transi¬
had
he
hasten the advent
delay the time when all will share
years ago.
none,"
the
insurrections,
in the thinking of statesmen. One
of
to
promised
changes inherent in it. Small wars,
be brought about
can
the
block
hearts, leads
expect, and hope, that sim¬
changes
debentures
trou¬
time, all but
ments, will be tempted to resort
scientists
could
The
100%
bles will seem, at the
unchanging truths hal¬
as
be
abundance.
of scarcity
economy
must
.
this
schools
The Banks for Cooperatives on
a new issue of
ap¬
Feb. 19 offered
offered through
Along with an understanding of John T. Knox, fiscal agent, and a
the promise the future holds, the nationwide selling group of secu¬
•»
i
world's peoplas must be warned rities dealers.
Proceeds from the financing will
of the trials xhat are certain to
be used to refund $72,000,000 of
accompany our transition from an
1.70% debentures maturing March
economy of scarcity to one of
2, 1959.
one
seen
Co-ops
Sells Debentures
that lies before
scale.
.world possible, who have
one
other communica¬
Banks for
31
bring to the masses proximately $78 million of 3.55%
understanding of the good 5-month debentures, dated March
us. And
this, 2, 1959 and maturing Aug. 3,1959.
fuller
life
..
scientists
truth.
a
world Of abun¬
new-
be,' inescapably,
:
The
are
famine any longer exist anywhere
adequately paid employment1 js the result of defective and ob£*A/iinl
clnKil iftf''
.*LL'
-^will assure social stability in solete systems of distribution. The
the reactor-centered communities
turmoil of the emergent nations
of the future/
•" - /•
and the;;kpiritual distress of the
/-' However, the acquisition of new west,'the anxiety we exhibit, the
skills, new jobs, and new homes gloom we feel, can be attributed,
I suggest, to our failure to de¬
will not solve all the problems of
be
dance
States, it
United
ful,
boredom.
the
sufficient'tb provide for every inhabitant of the globe the mini-
special-
These two
in
available
semiautomatic
manufacturing plants.
still
is, therefore, the
duty of the scientific community,
natp~natioris.'The energy supplies
of; course, many of the industrial
the
minum? The
common man
to grasp them, it
cellulose, Argentina on
beef, why should England allocate
limited acres to raising beeves, or
Egypt undertake-to produce alu*-
reproductivity of man.
unpleasant fact remains,
be; threat
beginning,
workers will be retrained
from
it is difficult for the
on
The
centered around a mo.tbfeat.to the
power plant. The inhabi- .is:;a, confMing
malnly specialists and members of
ists
technically complex, and their
implications so revolutionary, that
than
relatively .small however, that although famine is
of
i£hts of these communities will
their
nu-
use
proin the future are
communities
nuclear
Canada
excellent that, when they are
ciearly seen, they will put a stop
^ .Spectous philosophising about
the necessity to limit and regulate
5 ■'}
l,>\ 'A; Pai"f °f the solution which J;: the
V
engineer,
of
agriculture.
in
are
so
dtfplaced specialists wilUBe^m-
as'an
expedite the
reac-
the prospects for the
Retrainingjrf-these
.Pfo®. ye*'
improve
agricultural production. In the
fdture, Wide distribution of
Vfw m undesirable- results.
,vn°
these
fdrestal1
ered
vice
advantageously
and
^uceduFtood
our
the applications of nuclear energy
others,
why
should
Japan < or;
China build steel, mills? Perhaps
India should concentrate on
fibers,
virtually V
'"fh63*Wvfurther
mcitemen k of irrea,®1J?:Si or tbeir.
impulses. Unless we wish
more
believe
dangerous and explosive segment
baser
steel
for production.
countries, .like the United
produce and fabricate
can
grows more apparent every year.
Sdrv daefenromLs
lost ' entirely,, this
.or
States,
pro! •f'One
cul-
group will be downgraded-to the
status of unskilled labor, the most
world plan
a
some
seen
such
potential" " "displaced ' pe''so^'*
With dheir jBBs gbnie; deprived
st'atus,r their-earning, powers
predated.
If
lowed by ages. The fact that the
man to do the:
b/with^S^^S '
fiye^r more* A century
SS SISS agq,w.85%- of our population lived
matioh—thh^roductibh ^Vor^erk
>today fewer than
with1 ■-SoJklizeS- skillS "^id the viS^jiroduqe all the food required
workers
but
vw2"
oUr°chief co^eni1Cpe^^?s^^^Sd sibleyfprsingle
clerical
(999)
&
formerly
Co.
and
Thomson & McKinnon.
-
50
Schwabacher & Co.
40
'5
30
Los
'
-
-i
LOS
20
i.
"
0
1900
\, „;
i
■
1930
1
—
1—
1954
ANGELES, Calif.—Schwa¬
bacher & Co. has
*
10
;
office
1
,
1
i
,
1980
i
2000
l
1—
Opens
Angeles Branch
at
523
opened a branch
West
Sixth
Street
under the management of Edward
F. Call.
452
The Commercial and Financial Chronicle
(1000)
cities
Continued from first page
_
Management is the of most of the miscellaneous list
•nost important ingredient in the of companies selected on an in¬
success
or
failure of any com- dividual basis. So, we abandoned
the concept of industry concentra¬
t»any, and you can't buy managetion as a determinant of portfolio
merit on an industry-wide basis.
In the last couple of years, Aor diversification and for the past
time.
years have concentrated on
keeping the Fund invested in
pretty poor, but during this pe- about fifty companies with the
««€»d. Zenith Radio proved to be a strongest growth trends we have
This has
etc liar holding. Zenith did not go been able to identify.
overboard on automation or color resulted in holdings spread over
television and with a quality line a wide range of industries, includ¬
^example, the trends of the home
television and radio industry were
four
products maintained adequate ing several not ordinarily thought
fUiftfSt margins. It proved to have of as growth industries, such as
Oic best distribution in its indus¬ food, cosmetic and publishing. In
try and a company condemned by the cosmetic and publishing fields,
many investors as a one man op¬ incidentally our play has not been
€>f
eration showed sufficient manage¬
know-how to be the leader
ment
fn
industry. Everyone
on the basis of an
ailing
an
Who decided
industry analysis to avoid TV and
Zenith.
The mistake in too closely ad¬
radio stocks missed
hering to industry considerations
is* sometimes based on long range
es^well as short term forecasts.
It
develop strong feel¬
the favorable or unfavor¬
is easy to
ings
on
able trend characteristics
of
cer¬
tain industries. For example, many
of
us
for years have felt that the
tobacco
industry
Unattractive
represented
an
investment
of
area
Unless current income return was
of
importance.
prime
The
eco¬
nomics of the industry seemed to
despite steadily rising
chow that
prospective
the
csles,
gain
in
on
the products so mucn as on
toward
trend
the
direct-to-home dis¬
costs of
was
Changing Merchandising Trends
In
connection
this
it
is
inter¬
esting to note the changing trends
of merchandising. Years ago we
general stores and peddlers
and we progressed from that to
large department stores, apparel
and food supermarkets.
Now we
seem
to have gone all the way
This
the
is
as a
way to use industry
starting point for find¬
periods of economic re¬
adjustment. In this frame of mind ing the individual companies that
tnany of us failed to see the turn have the best change of surging
during
©round in the fortunes of P. Lorilin
a
Co.
which
has
ahead of the crowd.
Factors
sharp upturn of earnings over
comparable
rise
in
the
almost
market
Now
Cites Fund He Advises
Numerous other examples could
he cited of instances where the
run
an
individual company
counter to long or short
term
industry trends. It is necescary
to put industry trends in
proper perspective, and I strongly
cuggest
that
their
consideration
chould be secondary to the selec¬
tion of individual companies. Let
me
J
us
Behind Trends
try to look behind
industry trends at
able
fortunes of
let
a
few basic con¬
siderations that may create favor¬
price of the stock.
tiave
give you an example of what
About six years ago we
mean.
©et up a new mutual fund to be
invested entirely in growth stocks.
unfavorable
or
areas
of
in¬
vestment. Specifically let's briefly
consider
population trends, tech¬
nological or' scientific advances,
the expanding demand for natural
resources, cyclical industries and
the question of foreign competi¬
tion.-
'
•
;■
V
Changes in Population
Growth
industries
and
in
the
whole depends upon
There must be a labor
economy as a
people.
force to produce goods
and serv¬
market for all the goods
and services produced.
Our pres¬
ices and
a
ent U. S. population of 175 million
potential of above average
is currently expanding at a rate
capital appreciation was to be the
of 3 million a year and this rate is
primary objective, with no em¬
forecast to accelerate so that by
phasis on current income. We de¬
1975 population may reach
232
cided upon a policy of limited
million.
(Government
estimates
diversification so as not to dilute
for 1975 range from 216 million to
management's judgment in select¬
244 million depending upon which
ing the most desirable holdings.
Applying the industry approach, fertility assumption is used.) In
other words, total population is
4t seemed to us that over the years
-©head three strong growth areas likely to increase by one- third
over the next seventeen years but
ctood out above all others:
(1)
chemicals and drugs; (2) oil and the number of people in the age
Pas; (3) electronics and automa¬ group making up the labor force—
tion. The decision was to place 18 through 64—will increase by
two-thirds of the total portfolio only 25%. This estimate is fairly
^The
accurate
these
areas
which
meant
tions per se had contributed noth¬
ing by
of superior perform-tuice. There were laggards and
headers within each group. The
results attained had come priway
^♦nttrily from, the good performance
solid state electronics
now see
coming to trie fore in a new cycle
which will probably dominate the
electronic
electronics
state
the
for
art
next
40
This new pattern of solid
years.
will
tied
be
to
as
ferent
impact on various compan¬
by. and large they have
demonstrated an ability to earn
ies
but
maintain
and
of
dividends, because
finances,
improved
improved
ot costs and relative sta¬
control
ferrites, ceramics, micro miniatur¬ bility o£ price structures.. These
ization, transistors-and other semi- / companies produce* products and
conductor devices.
of
We
are on
the
important developments
not commodities and
not sub¬
are
ject to the1 price variables in world",
Looking at the question of popu¬ in the area of chemical conver¬ markets of such items as copper,
sion and thermo-electric conver¬ lead and zinc. If you believe with
on a worldwide
basis, the
same basic factors apply.
Present sion which could push internal me that the economic climate "
combustion engines completely out ahead is apt to continue the post- "
world population is about 2.8 bil¬
lion and is estimated to be in¬ of the picture both for airplanes war-trend of relatively* frequent
but short-lived; and not too severe
|.
creasing at about 44 million to 45 and for automobiles.
As we look today at the broad business readjustments, then vari¬
million people a year.
Allowing
for a large error in these estimates, fields of solid state electronics and ous steel, rubber, automotive atid
the magnitude of the figures is atomic energy, it is safe to predict machinery stocks should benefit '
nevertheless impressive. The pop¬ that a whole new pattern of in¬ from increasing investor accept¬
ulation trends will create favora¬ dustry and civilian industrializa¬ ance..
lation
-
ble
backgrounds for numerous in¬
Looking ahead, some of
dustries.
the fastest
growing areas to be af¬
fected will include:
Electric
Sales
Energy
Still
—
a
growth industry for the next dec¬
ade but containing relatively few
rate
return
of
much
and
of
the
growth is dissipated by the dilu¬
tion of equity positions to finance
the needed expansion of facilities.
Building and Construction—The
benefits should accrue to suppliers
erations.
tion and
instrumentation
will
be
at
the
through the refinement
development of these new arts
over
the years ahead.
In most
cases it may be too early to iden¬
tify potential leadership in these
areas
find
but
should
we
alert
be
to
which recognize
these trends and take steps to ag¬
gressively develop them up to the
level of acceptance.
companies
industries
Other
continue
which
benefit from
to
should
techno¬
favor
grocery
Expanding Demand for Natural
favorable demand trends. This de¬
stems
not
only from the
Manufacturers of Baby and population increase and the over¬
all growth of the economy, but
Breakfast Foods—would seem to
have a perfect play on the popula¬ from the development of new mar¬
kets
where
these
products are
tion trends.
substituted for others. Fiber glass
Drug Companies—Another bene¬
is in the same position. The for¬
ficiary of population trends as well
tunes of aluminum companies, are
as technical advances.
tied to both supply and demand,
Air Transport—This has been a
and with excess current capacity
growth industry for a long time it is difficult to visualize earnings
from the standpoint of usage. Up
rising sufficiently to match the
to now the strong growth trend
anticipated build-up in usage re¬
has been dissipated by rising costs
flected in the market levels of
of operation, quick obsolescence of aluminum
stocks. Yet the glamour
equipment and an inability to persists.
raise rates because the industry
The
oil
industry should con¬
ten years ago had a high return
tinue
to
fare
well
though the
on its limited invested capital. The
trends for the next decade may
situation is worth watching at the
not match the past or the oppor¬
present time. With the advent of
tunities in some of the other areas
jet planes the obsolescence factor that have
been enumerated.
The
may be temporarily lessened, and
worldwide over-supply is a nega¬
with the build-up in capital with¬
tive, together with the political
in the industry, rates of return
and tax uncertainties on the in¬
have been reduced to a point that
ternational front, and the deple¬
this regulated industry may be
tion allowance uncertainty on the
able to attain a better balance be¬
domestic front. Demand, however,
tween revenues and expenses.
should continue to expand at a
Recreation—Opportunities here satisfactory rate whitin our own
are
excellent
in
such
areas
as
country and at a substantially
boating and photography.
higher rate in the rest of the Free
This listing is not intended to be World. Natural gas may have an
all inclusive, but rather illustra¬ even brighter outlook.
tive
of
areas
that
should
benefit
trends.
or
Scientific
Other
trends
on
an
and
a
Things seemed to wax and wane
on
a
cyclical pattern. We have
seen the creation of energy change
from water to steam, to electricity
and
we
see
the
emergence
of
atomic energy which will probably
be
an
real threat of economic
.
com¬
petition from Russia. This country
is pricing itself out of many Pf
the world markets
high
as
■;
result of
a
constantly
and
rising
me
they have
cost
a
their
on
The
30% to 40% lower
English operation.
germanium
transistors
in
the
field
•
The
American
entertainment
etc.) is currently
threatened by Japanese imports of
good quality, low priced products.
turer
(radios,
cotton
manufac¬
cannot
compete with the
Japanese producer who buys his
raw
material from
the
United
States Government at
and
a
20% dis¬
his labor a frac¬
tion of our wage scales. I men¬
tioned
the
prospective Russian
competition. This is perhaps more
pays
imminent than many of us believe.
have examined catalogs for all
I
kinds
of
scientific
laboratory
equipment, optical goods and ma¬
chinery — catalogs,
incidentally,
printed in English—with low price
quotations and,with specifications
that some of my scientific friends
tell
me
equal or exceed our best
American products.
In looking at
companies in many industries this
broad question of foreign markets
and foreign competition should be
considered.
1
,
Summary
To summarize, I feel that the
study of industry trends and reli¬
ance
upon
industry forecasts to
determine the relative weighting
of different kinds of companies in
a common stock
portfolio is often
over-emphasized. I believe that a
better
investment
result
will
be
obtained by the selection of a list
of individual companies that best
fulfill the
ual
objectives of the individr
letting the industry
account,
diversification
will.
fall where it
Secondly, I have tried to explore
with you some of the factors un¬
derlying industry trends in a be¬
lief
that
basic
realization
a
considerations
of
these
will help us
all interpret the trends that we see
sults in the
next decade.
paper
Shearson, Hammill Adds
Industries
Many sections of
our
economy
(Special to The Financial Chronicle) '>1
CHICAGO,
111.-—Woodward
B.
relatively short
through
which
there is a favorable underlying
growth trend in reflection of the
Hicks, Jr. has been added to the
staff of Shearson, Hammill & Co.,
overall growth trend of the econ¬
R. J. Laude Now With
still
operate
..
market for
mass
resources
Cyclical
cyclical
V
Companies with plants
England and this country tell
in
favorable
on
swings
These industries include such
important factor until important segments as steel, rub¬
some time beyond the next dec¬
ber, automobiles and machinery.
ade. The electronics industry is a They afford many sound invest¬
continuation of inflationary pres¬
good example of changing tech¬ ment opportunities and in the past
sures.
'
'
nological trends.
For about 40 decade have demonstrated an
We can also anticipate further years the
expansion has sur¬ ability to operate relatively suc¬
geographic shifts in population, rounded the application of ■ the cessfully through periods of mod¬
continuation of the trend of move¬ vacuum tube. As these applications erate economic readjustment.
ment from, farms to cities, from seem to be reaching their peak, These adjustments have had a dif¬
not
Germany and the rest of the Free
World and to - the potential and
very
with
containers.
obvious bearing
the trends of many industries.
Specifically, I refer to the rise of
foreign competition from Japan,
natural
areas
and
Advances
These have
companies
industries.
numerous
developing in particular areas of
our
economy and may help us
spot the individual stocks that will
produce the best investment re¬
background would include
Technological
the
world-wide
some
are
that may affect
operating in
count
mand
from the population
trends
^
;
pf
labor costs.
Resources
methods
there
fence
side
negative
equipment,
chemicals,
companies engaged
Aluminum and other light met¬
in direct-to-home selling but other
areas
may become attractive
as als are generally regarded to have
merchandising
the
our
chains and the
new
On
logical advances will include office
time.
moment
Foreign Competition
created
and
Retail Distribution—The trends
those entering
this age
ap¬
proximately 22% in each of the group by 1975 have already been
three. The remaining one-third of born. Thus, on a relative basis we
the Fund was to be invested in can anticipate fewer people in 1975
individual securities with strong to produce goods and services for
growth trends irrespective of the the greatly enlarged population.
a
continuation
of
■industry in which they operated. This means
The portfolio was so invested heavy expenditures for research
-end at the -end of two years a and development to produce new
meview of its relatively satisfac¬ processes as well as new products.
It will require continued heavy
tory but not phenomenal per¬
formance disclosed several things. capital expenditures on the part of
T?he heavy
industry concentra¬ industry and to me it means a
in
we
brink
evolve.
resulted
the past two years and an
general
instrumentation, and
particularly
plastics.
of
residential materials,
to the
Anything having to do with guided
producers of cement and cement
missiles and space projects in the
products and the manufacturers of next decade will also have a fa¬
around the circle and we see a
air-conditioning equipment.
The
vorable trend but here it is diffi¬
geographical splitting up of the
desirability of stocks within these cult
to
isolate individual
com¬
large department store into smaller
product areas varies greatly.
units.
We see the food super¬
panies because of the rapid
Life Insurance—Investment op¬
market taking on nonfood prod¬
changes in technology, and chang¬
ucts and becoming an over-sized portunities here are only slightly ing military programs as related
dimmed by the prospect pf higher to
general store and we see the re¬
specific projects. Participation
field via electronic and
surgence of door-to-door selling taxes, but in numerous companies in this
in various fields.
All of these the strong trends are diluted by component manufacturers may be
changes create investment oppor¬ the cyclical casualty and fire op¬ the most realistic at the present
trends
and
in
continue.
had
raw
well than market averages except
tard
and
growth stocks since these are reg¬
ulated companies with a restricted
tribution of products.
negatived by rising
materials, processing tunities and in some cases nega¬
end promotion.
Historically to- tive the continued desirability of
tbacco stocks have performed less previously satisfactory holdings.
earnings
suburbs
growth on the West Coast
and parts of the South. There will
be changes in social, economic and
political institutions and in the
way people live.
The insatiable
demand of the American public
for a higher standard of living and
more leisure time seems likely to
Fallacy of Investing
On an Indnsby Basis
came
to
faster
Thursday, February 26,1959
..
.
208 South La Salle Street.
omy.
Goodbody in Boston
(Special to The Financial Chronicle)
BOSTON, Mass.
Laude
is
office
of
now
—
Raymond J.
with
Goodbody
the
Boston
&. Co.,
149
Federal Street. He has been asso¬
ciated
with
the
firm
for
many
recently as manager of the
Royal Oak. Michigan office.
years,
■
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
„
33
(1001)
Continued from
page 16
pensions
those
robbed
expenditures.
Ask
The
in
Governor, of
^insisting that
course, is right
the
not
state
outgo by reducing
Discrepancy
From
Washington,
reporting
an even
between
ancy
expenses.
at Federal
may-care. The
are
greater discrep¬
financial
wjsh-thinking, if
over
fact
and
President, the Sec¬
and
eral deficits lead to
flation,
with
of
power
monetary in¬
lower
the
that Fed¬
over
purchasing
dollar
and
erosion
pin savings;- But instead
of reduc¬
ing appropriations, bills
are
passed
increased
which
authorize
who
selves,
"cruelest
invisible
an
cannot
tax"
tax
protect
on
them¬
the
uneducated, those
only just enough, the
on
earn
out"
being
spending and threaten to increase
deficit, rather than balancing
to
their
for
save
children
the
education
for
or
their
of
own
Americans
liberal
are
spenders
thrifty, too. Savings
but they are
of various
kinds
1956 time
In
into
run
billions.
insurance
and
pensions
billion, government insurance
pensions
$3.5
is
money
$8
and
billion, life insur¬
$412 billion. All that
in force
ance
owed
to
Americans
dollars, dollars only,
in
matter if
no
to
a
newspaper
"Do these legislators want
the
man
dollar to go down to 10 cents or
less?" he might
reply, "They don't
care. They think
they are kept in
office by those who want to 'soak
the
rich/ and
will
look
that
that
like
big
to
spending
their
sup¬
porters."
There may be
hope of getting
majority of legislators to con¬
a
the general good until re¬
election has been abolished. How¬
may be
greater number
of, voters understand that it is not
possible to "soak the rich" by
possible to make
a
bankrupting the Federal Treasury.
"The rich," that nebulous
aggre¬
gation presumably useless except
for milking, actually is
composed
of ^individuals
who have had 25
to protect themselves against
years
the results of the
cies
inflationary poli¬
inaugurated
government in
"The rich"
formed.
by
the
national
1933.
are
The
few and well in¬
who cannot
protect themselves against mone¬
many
tary inflation
all; their
week
are
those who spend
money
from
whose
and
week
older
relatives
pro¬
hearing from "the little
tax-wise
he
is
the
big
the one who is being robbed
by inflation.
man,
No
755
research
of
the
deeper
"World
than
page
Almanac"
is
needed
to show whose taxes
pay
and salaries of Senators and Con¬
In 1956 Federal income
gressmen.
taxes
Number of
Taxpayers
Inc. Tax paid
58,340,440
Adjusted
$25,551,927,000
458,443
7,180,205,000
Gross
Income
$25,000
the
is
then
with
incomes
less
than $25,000 a year who
legislators.
Many of these
citizens, indeed most citizens,
elect
fall
would
asleep
trying to read
budget.
But
the
-Federal
youngest wage earner knows that
if he spends more than he earns he
gets into trouble.
Our national
treasury is in trouble for that
very
reason.
Any
small,
taxpayer,
can
the dollars
them
in
buying
he need
either
large
learn just how
sive Federal
not
his
can destroy
wallet, has cut
may
reduce
power
even
further.
even
in
effort
hold
to
-
his
down
bother to
their
But
learn
why. He has only to accept the
fact that many governments have
those
up,"
that
said
there
all
are
the
old
hope to get any
heavier
whose
except
more
taxation of workers
dollars
There is
already
have
figure in the "Federal
a
Reserve Bulletin's" analysis of in¬
called "transfer payments."
ing and
which
The
"More
Than
besides
cares,
protest
to
Every¬
his per¬
Washington,
should explain the
urgency of im¬
mediate protest to several
workers,
teachers,
savers,
white
collar
workers,
ambitious
clergymen,
or
persons
Cobwebs
social
on
by
the
ton
will
cleared out of minds in Washing¬
ton if Congressmen and Senators
find their desks piled
high with
letters
and
postal cards
from
the
really important people. If those
they think they are pleasing call
"Halt," they will listen and under¬
35 Wall
E. E.
1956.
$18.6
were
The
withering of
demand
great
suffering
and
Dr.
Diverse Comment
L.
Reis, President
Sayers is President of five
real
estate
corporations, repre¬
senting large realty investments
throughout the United States and
Canada, Chicago Management
Corp., Bliss Building Corp., Rambo
Realty
Corp.,
Say - Bar
Realty
Corp. and Radio City Building
Corp. of Montreal, Canada.
immediate increase in the cost of borrowing funds. President
press conference, said that the Admin¬
istration may soon have to ask
Congress to raise the interest rate
ceiling on marketable Government bonds above the present limit
of 41/4%. It was stated
by the President, however, that such action
would be taken
"Inflation
does
not
destroy
John
to
recently,
R.
point
that
out
it
Upham
Ahlgren
had
with Harris,
Carey,
associated
Langley & Co., New
W.
York
City, passed
C.
It is the opinion of the Federal Reserve
System that it is far
a foregone conclusion that interest rates
have to go higher.
There is not likely to be an
important demand in the need for
from
funds, according to the Central Banking System, until there is^
renewed spending by business for
plant and equipment, and for
the rebuilding of inventories.
But for the present they see no
conclusive signs of a swing away from inventory liquidation to
price
pays
Marvin L. Mainer Opens
a
securities business.
for
He
raise rents
can
bank
and
each
time
Rodger W. Bridwell
The
dollar
ice
and
than
has
losing
its
serv¬
a
how
to
this
stop
Congress goes
spending.
One
way
or
another, sooner or
later, everything has to be paid
for, arid Congress is not providing
increasing
any
public
of
means
extras
for
payment
except
by
taking
There still
lieve
the
of
who
of
those
citizens who be¬
they will benefit by
public spending at the
expense
rich"
are
that
heavier
it.
not a few money market
specialists, because it is through the
restricting of credit and higher interest costs that the forces of
inflation
the
who
"the
can
rich."
make
inflation
will
With wages,
be
a
It
is
"the
good thing
paid
hurt
are
ground to
.
halt.
a
Thus, in spite of the beliefs
that interest rates may remain in
of
the
Federal
Reserve
System
1
plateau for
a limited period of <
displays of such assurances among those inves¬
tors that could be buyers of the
longer-term Government bonds,
since they continue to confine their commitments in
Treasury
issues to the short-term liquid obligations.
It still seems to beliquidity preference and, as a further hedge against inflation, they
continue to make sizable purchases of common stocks.
time, there
for
by
hiost
by
savings, insurance,
Also,
a
are 110
long
as
Treasury will be
the Federal budget is unbalanced, and the
borrower of funds in addition to its refunding
as
a
of sizable amounts,
there is not going to be a great deal of ease in
And, in order to extend maturities, the Gov¬
to meet existing competition, and this could
higher long-term borrowing rate limit.
the money market.
ernment will have
&
Co., 1 Wall Street,
City, members of the
York
York
March
a
Exchange, on
will admit Benjamin H.
1
Form W. T. Hartline Co.
Stock
Brinton to
limited
DALLAS,
line &
with
partnership.
Elliott & Co. to Admit
in
Officers
Elliott &
Company, 25 Broad
Street, New York City, members
Exchange,
on
March
Elliott
to
5
will
admit
John
B.
Lennon
Street
with
are
to
business.
offices
—
at
The Jay
has
been
750
Main
engage in a securities
Officers are James A.
Lennon, President and Treasurer;
Esther J. Nazzaro, Secretary. Mr.
Lennon
formerly with Fed¬
Management Corporation,
Income
Foundation
Fund,
and
Coburn & Middlebrook, Inc.
erated
was
Kenwood
to
business.
William
Security
CHICAGO, 111.
is
nesen
Company,
—
Jack
with Union
now
29
South
E.
Ar-
Security
Salle
La
Street.
and
and
First Boston Adds
Alice
(Special to The Financial Chronicle)
BOSTON,
Form
Company
6936
securities
Secretary;
Mahar, Secretary.
partnership.
HARTFORD, Conn.
at
a
Assistant
Brickley
Osborne, Clark
Mass.
has
been
—
Philip
E.
to the
added
staff of the First Boston
Corpora¬
Osborne, Clark and Van Buren, tion, 75 Federal Street.
has been formed with offices
Inc.
formed
With Union
(Special to The Financial Chronicle)
Hart-
T. Hartline;
Treasurer; Jess M.
Irwin, Chairman of the Board and
Jay A. Lennon Co. Formed
A.
T.
Company has been formed
President
of the New York Stock
Texas—W.
offices
engage
futher
giant strides along the downward
path of debt.
out
however, quite evident that the monetary authorities are
move against the inflationary forces as they become
prominent, or as the inflation psychology or fear becomes a
reality. This will have to mean higher interest rates in the opinion
position to
result in
Brinton
New
thing costs more
few years ago. And
knows
deterioration while
on
It is,
a
Brinton to Admit
every
did
it
one
been
almost every
power;
represen¬
as
tative.
New
before.
no
..
No Credit Ease Foreseen
TAHOE, Nev.—Walston
& Co., Inc. has opened a branch
office
at
Zephyr
Cove
with
he
it buys Jess than
money
;
Investors Not Reassured
Walston Branch
LAKE
deposits the purchase price in the
takes out
business.
are
active restraint.
as
better for him.
as one
that be
continuing a neutral credit
poised somewhere between active ease and
powers
big
a
it, puts up a building,
large a mortgage as pos¬
sible from the savings bank. The
faster Congress increases the defi¬
cit and depreciates the dollar, the
gets
accelerated capital spending by
or
result, the
a
Feb. 3.
away
(Special to The Financial Chronicle)
district,
'
of
G.
with
CENTRALIA, 111. — Marvin L.
Mainer has opened offices at 806
South Poplar Street to engage in
business
There
years.
ceiling on the rates which the Treasury can pay for shortobligations; that is those issues which have a maturity of less
Ais against this statement by President
Eisenhower, that the
limit on long-term
borrowing rates might have to be raised above
the existing 4]/t%
ceiling in order to finance the needs of the
Treasury, the Federal Reserve System indicates that it does not
necessarily see interest rates headed upward for the present. It is
noted by the System that there is
quite a bit of slack in the demand
for funds, especially due to the current lower level of
corporate
borrowings both in the capital market and at the banks.
in
shrewd—by progressively diluting
the buying power of the dollar.
the
raised from 4%.
Upham &
George G. Carey
George
transfers
example, a real estate oper¬
buys a home on the edge of
was
policy described
become
much of it from the thrifty to the
Fof
only if interest rates continued to rise. The pres¬
set more than 40 years ago, on April 4, 1918,
was
more
he went
but
no
As
representative.
physical wealth," said Dr. Marcus
Nadler
rate
when the limit
accumulation
With Harris,
Interest Rate Levels
than five years.
director.
a
on
maturity of longer than five
Association, has announced
Mr.
is
an
Eisenhower, in his weekly
is
of West Side Federal Savings and
elected
securities, but this
rebound from what is termed
any
Sayers, Director of
Herman
a
The 41/4% rate which is
currently in force applies only to mar¬
ketable securities with a
West Side Fed. S. & L.
Loan
Government
In
The money market in the
past week has had to contend with
various opinions, one of which tended to
keep the pressure on
interest rates whereas the other indicated that there would not be
term
T. R.
distant
more
spite of the Federal Reserve System's opin¬
ion that interest rates are not
likely to move up for the present,
liquidity preference shows no signs of abating.
Street,
February 17, 1959
make
thousands of old persons a burden
to their younger relatives.
for the
oversold condition.
New York 5, N. Y.
those dollars year after year would
cause
;
a
not looked upon as more than
COOK,
Co. in their office at 99 Park Ave.,
New
York
City,
as
registered
payments"
in
Governments
on
*
Government
ent 41/4%
,
associated
billion
•
market took the statement by President
probable increase in the rate limit for longterm Government borrowings above 4J/4% pretty much in
stride,
after a minor dip.
There has been a limited and professional
stand.
national
"transfer
•
to be digesting the refund¬
money raising issues rather well, and the better tone
new
The
be
together
both
f
has
secu¬
the
For
local
-'
By JOHN T. CHIPPENDALE, JR.
Eisenhower about
rity.
governments
benefits.
and
.
factor in the money market.
Budget
a
injunction is clear.
who
sonal
forms, money paid out for nothing,
i.e., social security, relief, veterans'
•
been in evidence in Treasury obligations
recently is
being attributed to the short breathing spell which the money
market is having from operations by the Government. It will not
be long, however, before the
Treasury will again be the important
Battle."
the dole in all its various
are
i»
•
The Government market appears
come
They
'
■
do
the
that Theodore R. Sayers has been
shrunk.
exces¬
half,
not
or
spending
in
buy
and sick people who are receiving
a fixed number of dollars and can¬
30,478,510,000
citizens
the
President
get
Congress
spending.
And
will
Everyone who has
has a reason to sup¬
saved money
port
increasing
dollar
to
buying
It
the
less.
with¬
by
holding tax_-_
of
and
savings
under
Over $25,000—
Paid
less
and
the
and pay off his mortgage in
cheaper dollars. The home owner
were:
But
speak
"Wall Street Journal" in its recent
continues
ator
man" is because he does not real¬
that
that
on
tests of the many. And it must be
assumed the only reason Washing¬
ize
risk
M.
living on social security.
Congress might heed the
country.
editorial,
each year than the
debt
up
the
to
are
ton is not
building
from
in the meantime, it
ever,
Congress
as
more
:
■
the budget.
better
one
Reporter
'
^^===
government collects in taxes, it is
no
sider
long
spend
Our
be
luxuries, all very
themselves, which must
postponed
until
they come
had
the
the budget.
Jf one were to ask
pleasure in all the
"We don't know how many
peo¬
ple care about the condition of
when paid out the dollar
buys less
than when it was saved.
As
less,
taxes
can
within
and
savings deposits
were
over
$4.3
billion, savings
and loan shares $4.8
billion, pri¬
vate
of
wage
old age.
not actual devil-
retary of the Treasury, Mr. Martin
of the Federal
Reserve, Chambers
of
Commerce, trade groups, econo¬
mists, and others are explaining to
Congress
those
the
if is
because
and
in
their
is
sick and the old who cannot
earn,
and those who have
"gone with¬
Level
newsmen
Crue lest Tax
Inflation
who
well
citizens in this way.
a Frenchman.
The
must
continue to spend more than
it, collects in taxes.
What
the
voters are
trying to tell him is that
they prefer to balance income and
there
be
their
less
the bulk
fine-sounding projects for which
Congress is spending so liberally.
Just as in a
family, so in a nation,
German. Ask
a
worth
pay
will take little
Reader Questions Effectiveness
Of Protests to Legislators
plan for drastically reduced state
all
who
at
East 39th
10
City
to
Street, New York
in a securities
engage
,
1
n*
11
(Special to The Financial Chronicle)
With Coburn Middlebrook
(Special to The financial Chronicle)
BOSTON,
Nosek
.
INow With Joseph Mellen
business.
is
Mass.
now
Coburn
&
Federal
Street.
—
Walter
connected
Middlebrook,
H.
Ternes
with
E.
with
Inc.,
CLEVELAND,
75
Inc.,
Joseph,
Union
members
of
Ohio
—
Joseph
become
associated
Mellen
has
&
Commerce
the
Miller,
Building,
Midwest
Stock
Exchange. He was formerly with
Lawrence
Cook & Co.
The Commercial and Financial Chronicle
(1002)
34
the
3
Continued from page
balanced
represents about seven
supply at the current
sales rate which, we might infer,
is not a bad picture at all. Last
March, during the height of the
recession, chemical industry in¬
ventories amounted to over $3.9
of
In
fact, many companies
expected to be ahead in a
year-to-year comparison of final
quarter results. Tne year 1958, as
a
whole, will be one of reduced
profits for a number of producers
but—and this is significant—the
1957.
are
profit trend moving into 1959 is
definitely upward..
of sales.
Of particular interest in analyz¬
New Plastics' Record Expected
ing chemical companies is the re¬
covery which was revealed during
Among
the
various
product
the
past year.
Pre-tax profits,
groups within the industry, plas¬
under heavy pressure from in¬
tics last year — although accus¬
creasing operating costs since the
tomed
to a very rapid
growth
end of 1955, declined from about
throughout their entire history —•
16% to around 12% early in 1958.
billion, or more than two months
slowed down to
a
walk. Neverthe¬
less, 1958 will be recorded as the
polyethylene
be¬
plastics
field—pushing vinyls into second
spot. Incidentally, vinyls for the
first time now appear to have
over-capacity headaches.
Number
came
.
which
in
year
1
in
the
This year is expected to be the
in which production of any
first
Subsequently, however, a num¬
of factors helped to reverse
this trend.
The industry's heavy
ber
outlays for new plant and equip¬
ment over
the past three years
pense.
overall
The
Spotlight
on
New Synthetic
Fibers
The
ahead is almost cer¬
tain to find synthetic fibers in
the spotlight.
This should occur
for two reasons: rising produc¬
tion and increasing capacity.
In
fact, a survey just released by the
year
picture
in
sales,
margins is
earnings and profit
clearly revealed if you examine
quarter-by-quarter totals over the
industrial
chemical
All of this is
.
.
.
is
Pont
expected to put a
dacron expansion on stream at its
plant in Tennessee by mid-year.
At this expanded plant, capacity
Will be approximately 56 million
pounds a year which, incidentally,
more
than
doubles
the
plant's
earlier capacity.
In 1958, most man-made fibers
experienced a poor year
with
one
exception—acetate.
Produc¬
tion of this synthetic fiber in¬
.
.
.
Chemical
must
face
problems
firms,
up
if
to
the
serious
industry
is
to
continue to advance. For example,
costs must be kept under strict
control, and the burden of wide¬
spread
over-capacity
must
be
lived with until demand increases
sufficiently to utilize it.
On
the
other
hand, reduced
capital spending will result in a
lower cash
drain from start-up
up
costs, and the industry is now in
reason
for the increase
in this
a good position to step
up produc¬
particular fiber is the growing tion
quickly to meet increasing
cigarette filter markets.
demand
without
increasing
either
capacity or employment
Prices and Financial Aspects
significantly.
In connection with prices, the
The year ahead is not apt to
overall outlook is good. However,
witness such
creased
for
first
the
time
since
1955
and, production should hold
at least as well this year. One
.
—
a
number
of
uncertainties
dramatic economic
a
in
are
upswing — or at least at not as
prospect for the chemical indus¬
high a rate as has been seen dur¬
try this year. In the quarter just
ing the past six to nine months.
ended, price declines far out¬
Several chemical industry experts
numbered
advances
and
at
the
have forecast increases in produc¬
present time there are a number
of
buyers who
purchases
are
because
deferring 1959
of this price
uncertainty.
Now—let's look at the financial
aspects
While
of
it
chemical
is
companies.
true
both
that
sales
and
production recoveries were
being reflected by the end of 1958,
a considerably more dynamic re¬
covery was evident in earnings.
tion
in
1959
5%, and it
will probably be some time before
profit margins again reach the
highest levels achieved during the
past decade.
Nevertheless, over the longer
term,
the
chemical
industry's
growth rate is expected to con¬
tinue to outpace that of industry
as
a
whole.
For
net
income
at
for
about
the
25%
same
below
period
in
t
.
Discusses Dividends
Now
as
dends paid by chemical companies
reveal btit little change from 1957.
quarter
only 4%
.
.
.
earnings
were
and fourth
results—when
.
.
off
quarter
up better than many people had
expected. Overall total cash divi¬
they are reported In fact, a few companies man¬
couple of months— aged to pay out more to stock¬
are
likely to reveal very little holders last year.
change from the final quarter of
One combination of this was in
in
the
next
bit
a
may
more
.
ments to
ahead.
I think it is safe to say
that the
chemical industry has been one of
leaders
the
.
;
:
r,\r-■
Summary
;
In
summary
experienced
situated with investors than many
without
other
would
industry
;-"V"
in
not
is
industry
'
'
V
Robust
A
Let's
groups.
v ■
\
•
-
few
1
Industry *
from
page
' Wk'
:
think
in
real
seem
.
sectors!0 is
some
justification.: j It
to me that
there
are
opportunities of equal attrac¬
tion to match that apparent in the
chemical
forget, the chemical
a robust industry. It
Continued
I
that the
disfavor which the chemicals have
generous
industry for sharing, in
prosperities of tomorrow.
our
5
.
.
for research. It has been estimated
that at least 14%
tists
in
of all the scien¬
United
the
States
are
employed in the chemical indus¬
try.
As
result of the expenditures
a
of such sums
improvements in
ex¬
well as the
products, has
will, I should think,
continue
to
be
the
motivating
reasons
for the expected contin¬
ued growth of chemical compan¬
isting
products,
introduction of
as
new
and
been
ies.
Expected
It
has
Results
Research
estimated
been
that
by
1901, 14% of total chemical sales
expected to be derived from
products which were not even
made
in
1957.
The
specter of
rapid obsolescence in this highly
competitive industry virtually de¬
mands that successful companies
are
the
retain
available
talent
order to achieve and
in
maintain
leading
industry.
growth lies in
positions
the
Future
rections
still in
of
some
.
.
.
...
lion
for
estate
right-of-way but was
not mentioned specifically in the
Bureau of Public Roads' explana¬
rate
_
.
contem¬
o rig many
as
VabiA
plated.
In
passing the 1958 Highway
y.n
;
Act, Congress provided only, a
While the reported increase4was stopgap measure but, nevertheless,
37%Ait failed to include the cost one which will carry the program
of approximately 2,548 miles of through 1960.
The highlights of
tion.
.
,
this Act
interstate
highways which had not
designated at the time of the
preparation of the 1958 cost esti¬
mate.
Allowing about $1 million
a mile for this mileage brings .the
current estimate up to over $40
billion. But even this figure makes
been
provision
no
for
Toll
not
built
for
Roads
(1)
.,
Acceptance of the 1958 cost
estimates
as
the
basis
for appor¬
tionment of funds for 1960 for/the
Interstate System under
formula.
(2)
the meeds
«'
ofaV.
A step up in the Interstate
1959 of $200
reimbursemebt authorization for
and
Roads
Free
lion, for 1960 of $300 million, ;and
million in reeog-'
!
9t)-10 money, but
in the 41,000-mile
System.
At the-.same
with
for 1961 of $300
incorporated
Interstate
were:
nition of the increased costs.
(3)
A
suspension of
the
pro¬
di¬
many
which
are
the
report from the Secretary
on the estimated
annual
status
of
the
Highway
Trust Fund for the period from
vision of the Byrd Amendment for
of the Treasury
1960, thus permitting ithe
program
to continue with the
understanding that any deficiency
March
scientific
best
1,
in the Trust Fund would be made
closed
the
time,
a
1959 and
1957 through 1972 dis¬
alarming fact that the
♦
by borrowing from the Gen¬
of the Treasury.
This5
up
eral Fund
"pay-as-you-go" provision of the
Byrd Amendment would necessi¬
tate the cutting back of the inter¬
permitted the following interstate
authorization to be apportioned
embryonic stage. We
already seen evidence of
potential in the field of plas¬ state Program by $600 million in to the States:
1960 and $800 million each year,
tics such as polyethylenes, poly1959—$2.2 billion instead of $1.6.
This- cut¬
propylenes,
polyvinyls,
phenol- 1961, 1962 and 1963.
1960—$2.5 billion instead of $1.4.
in
authorization 7 together
ics and epoxies
agricultural back
(4) The authorization fob ABC
with the increased cost estimates
chemicals, fluorine chemicals to
roads of: 1960—$900 million; 1961
propel the missiles of tomorrow's gave rise to talk about a "stretch¬
—$925 million.
1/V 4
rocket age
c
f
boron derivitives, out of the program."
(5) The authorization of emer¬
new
ingredients
for
synthetic
gency funds on a 66%-33 Va, basis
A New Standard
fiber
polyurethanes for both
.for ABC roads in the amount of
I want to emphasize the state¬
rigid and flexible foams
and
$400 million, all of which to fye
rare
metals such as lithium and ment made in my opening para¬
put under contract by Dec. 1,1953,
zirconium.
Polypropylene, as a graph that for the first time in as an aid to
overcoming the re¬
matter of fact, with the first 20- history Congress in 1956 departed
cession. It also made an additional
million-pound plant built by Her¬ from its customary practice of au¬
$115
million
available
to ;loati
cules Powder has just skimmed thorizing so many million dollars
those States unable to raise 'the,
the
surface
of
tomorrow's
de¬ worth of Federal aid to highway
increased matching funds.
mand.
This tougher plastic with construction and instead author¬
(6) Delayed the submission of
present lower raw material cost ized and directed the construction
the Bureau of Public Roads' study
is
believed
to
be
only on the of a fixed number of miles (41,have
the
-
*
.
.
.
.
.
.
,
.
.
.
.
.
.
000)
Chemical stocks provide an in¬
vestment medium where a high
be
be
high standards and to
completed simultaneously by
premium has long been placed
earnings, in relation to selling
prices.
In my opinion this will
all
the
on
continue
time.
that
to
be
current
course
true
are
There
stocks
those
prices
for
some
who
feel
chemical
for
too
high. This of
begs the question: "high in
are
relation
to
now
what?".
criteria
tionably is
If
earnings
then I think the
we
use
for
answer
prices
as
yes
.
.
.
1958,
unques¬
are
prices for chemical stocks would
not, in
high.
my
This
opinion,
would
appear as
seem
only
high,
reason¬
able if:
(1)
we
are
to
return
to
our
earlier level of industrial activity
and'.
"
"Benefits
on
threshold.
high.
Despite If on the other hand we use as our
criteria, prospective earnings in
dividend payments held 1959 and 1960, today's market
third
.
a
managements
be
to dividends....
last year,
...
result, company people will realize that Ihe in¬
feel they can dustry's
up - to - date
facilities
in pay-' should contribute to lower costs
stockholders in the year as volume increases and, chemical
stocks should be more favorably
As
ago.
years
declines in earnings in many cases
1957
in the second quarter,
earnings'were running about 16%
below previous year levels
approaches—busi¬
a
v,
our
.
example, in 1958's first quar¬
ter, chemical companies reported
results
of about
of nearly $20
employs some 840,.".
and, again, in my
opinion, should continue to Out¬
perform the growth of our overall
it
...
—
within
admittedly,
several
investment
an
billion
000 people
—
to
Describes Oncoming Problems
has
(2) if general business this year
to be at a high level and—as
the end of 1959
Thursday, February 26, 1959
.
.
number of sizable ness may even surpass the record
on
tfee part: highs achieved in 1957.
~
of chemical producers.
In some
economy.
•
1 V r^(
If these are reasonable assump¬
cases
also, companies that man¬
Managements of leading chem¬
tions, then the demand for chem¬
ical
aged to maintain cash dividend ical
companies today are ;much
products should increase and,
better and are much more experi¬
rates, cut back on stock dividend
consequently, earnings fprthe
payments which they had been leading
chemical, companies enced than was the case, just a
distributing
to
shareholders
in should improve.
■*' A--AA few years ago. Future expansion
recent years as year-end extras.
That, in my opinion, willbe is scheduled to be directed toward
Now
with earnings showing
the time when the over-capacity plant' improvement
rather than
a much stronger trend toward the
in the industry which now con¬ adding
to capacity,. thus, com¬
end of 1.958 and into 1959
divi¬ cerns some investors may prove panies should not require nearly
dend rates look much safer. More¬
to be one of the bright
spots and, as much in the way of capitaf.exin fact, the real attraction of the penditures. Inferrably, one might
over, chemical firms will probably
need less cash for capital expan¬ stocks in this industry.
even pose a brief for higher divi¬
sion than they did a couple of
It would seem to me that more dend payouts on this basis,
manufac¬
turers.
;
is
reductions
past year for many of the leading
laying the founda¬
tion for continued recovery in the
Textile Economics Bureau esti¬
net income of chemical companies
mates
current
man-made
fiber
this year provided, of course, the
capacity at 2.3 billion pounds a
economy
as
a
whole continues
year.
By March, 1960, this ca¬
upward
and economists are
pacity should have increased an¬ almost unanimous in
predicting
other 120 million pounds.
that it will.
Du
com¬
allocating large
sums of money each year for re¬
has put new—and more efficient
search. In fact, a policy of con¬
—equipment into operation.
In
tinuing to spend more each year
addition, the recession prompted
on
research
remains,
in
my
alert managements of many com¬
panies to take a closer look at opinion, the backbone of this in¬
Chemical companies in
operating costs.
Economy
pro¬ dustry.
the aggregate invest nearly $600
grams—whether
they
involved
the disposal of unprofitable oper¬ million a year in their laboratories
this year, incidentally, com¬
ations, or merely a more challeng¬
ing look at too-long-coffee-breaks panies have budgeted $700 million
plastic totals a billion pounds.
This plastic is, of course, poly¬
ethylene. However, the picture is
not without dark spots.
By the
end
of
1959,
polyethylene
ca¬
pacity is expected to exceed 1.3 —have contributed immensely to
billion
pounds,
thus
providing the increase in profit margins.
over-capacity of about 30% for
Also, the increase in sales has
the trade.
Most of this idle po¬ had a big impact on profit mar¬
tential, by the way, is Ziegler gins.
Total productive capacity
and Phillips-type. Overseas mar¬
built up in recent years gives a
kets for conventional polyethy¬ lot of leverage to chemical com¬
lene, which today account for panies'
earning
power.
Many
nearly a third of total sales, are companies now can increase out¬
expected to tighten considerably put without much additional ex¬
this year.
by
dividend
Chemicals... Buy for 1959
weeks
pharmaceutical
However,
dividend
in¬
by drug companies were
creases
This figure
of
case
panies.
.
■
t
of Interstate expressways to
and
Beneficiaries"
A;:tV
until 1961.
built to
States
reasonably
sible.
fixed
fixed
in
close
13
years
thereto
as
or
as
pos¬
other
In
words, we have
mileage,
fixed
standards,
time
for
accomplishment.
The only variables and ones* which
cost estimate
to be made of the Interstate Sys¬
(7)
Ordered
a new
tem foi~ submission in 1961 instead
of
1962,
as
directed
in
the
1956
today
with
Act.
We
find
ourselves
the realization that
major legisla¬
made in tbife;
there Will
for 1961.
In his Budget Message advocating
Faced with this situation, the
a IV2S gas tax increase. President
Congress went promptly Jo work
Congress
trol
are
can
neither fix nor con¬
COSTS
income from
and
Trust Fund
existing taxes.
in 1958 to insure that the program
tive changes must be
session
of Congress
or
be NO Interstate Program
Eisenhower listed the Trust Fund
year-end balances under present
bog down. In. passing
conditions, as follows: :1960-;-1$241
the 1958 Highway Act it recon¬
million; 1961—$1,059 billion; 1962
firmed its
previously expressed
—$2,166 billion.
intention of seeing to it:.
" ^
Normally, apportionment^^
(1) That the program ;-is not
funds are made by the Burea'iiJof
stretched out.
Public Roads one year in advanfce
(2) That the Interstate System of the beginning of the fiscal year.
is completed on time.
Hence, 1961 apportionments should
(3) That the ABC Program is be made about July 1, 1959.-This
accelerated annually at a $25 mil- is necessary to permit the states
would
not
Volume
139
Number 5824
.
.
The Commercial aacl Financial Chronicle
.
35;
(1003)
whose; legislatures meet
bi-annually^to take ;, steps to raise vi the
necessary
matching
1962
quate in
In
that if
we
are
have
Congress,
approaching,
staff: and
I
we
it
1,
my
to
necessary
attitudes
basic
toward
decisions.
the
make
The
fol¬
lowing assumptions were made
a first step in our
study:
(1)
That Congress
that
the
41,000
still
mile
-
as
the
inade¬
amount of $10,225 bil¬
are
Interstate
earliest
practi¬
However,
First:
Highway Trust Fund
July 1, 1956, with a
balance, but with an
cash
billion
indebtedness
of
.(3)
create
upon
do
consider
be
assumption
our
Such
a
transfer
direct appropriation
a
sound
f;,*■',,
(4) The deficiency will amount
to about $5 billion
by 1963.
reasons
why
the
eral
welfare, national economic
growth, and national defense. The
(5).
The .total, income to the
Fund: through 1972 will be
inadequate, to finance the program
the rate of
it reaches
$25 million
a year until
$1 billion annual level.
a
objection to this approach is that,
with the Byrd Amendment in ef¬
fect,
apportionments
would
be
controlled
cash.
by
This
the
availability
would
have
ways
new
Thar, pending receipt of
-cost
estimate
not
due
a
until
January, 1961, Congress will ac¬
cept the 1958 cost estimate as the
basisr
*for
apportionment
1961.; Interstate
that5
the
made
of
the
authorization,
so
apportionment
can
be
schedule in July, 1959.
on
(4)
worth of
Second: How
been
sofar
it
as
applied
to the
appor¬
tionments for the fiscal year 1961.
'
(5) That, if Congress decides to
reimburse
the
States
for
the
equivalent of about 6,000 miles of
tolbroads and free roads not built
with 90-10 money but which have
been
incorporated into the Inter¬
state System, it will either delay
action until completion of the In¬
terstate System or will take specialr.action to provide for refund¬
ing'>outside of the Highway Trust
By making this assumption,
avoided a complication which
Fund.
we
financing
a
plan
the
for
highway
construction program
much more difficult one.
a
J6JnThat Congress will use the
fours- year economic study by
the Bureau of Public Roads of the
benefits
and
highway
program,
basis for
beneficiaries
the
due in 1961,
review and
a
of
as
revision
of the base of taxation which sup¬
port^ the
—
With
us,
program.
these
then
we
the
cost
assumptions
adjusted the
authorizations
Interstate
.
..
Several
There
before
future
to
cover
of the entire 41,000-mile
system, using the latest: official
cost estimates, but making no pro¬
vision for reimbursing the States
for the
toll
On the
10th of January, this year,
roads
and free roads.
can
pro¬
of
are,
cover
repayment.
propriate committees of Congress.
Some possible solutions are:
and
also increased the
thorizations
for
1962
ABC
au¬
and
yearly
thereafter at the rate of $25 mil¬
lion
at
annually until it leveled off
$1 billion in 1964.
i
,.
(1)"Increase, the Interstate
au¬
thorizations in recognition of the
revised cost estimates and make
estimates
cost
ever. new
are
Highway
Trust. Fund's
taxes
might
for
the
ap¬
increase
stantial
in
these
A{ • careful analysis was then
projected status of the
Highway Trust Fund, as prepared
by the Secretary of the Treasury,
and .the
rate
withdrawals,
Bureau
*
of
blessing
time
of
as
anticipated cash
forecast by the
Roads.
Using
Public
and,
rescission
time
to
from
of
the
the
General
might
We
tional
revenue
user
transfer
from
addi¬
so-called
taxes from the Gen¬
the Highway Trust
following
are
fre¬
quently considered highway user
taxes, revenue from which does
not go into the Highway Trust
Fund. The revenue figures shown
Fund
are
to
The
for fiscal 1958:
Billion
Auto excise taxes
these figures and rates as a guide
Truck & bus excise taxes
and
$1.30
Spare parts, accessories
basing our calculations upon
our, assumptions, a new table was
developed of the cash needs re¬
quired to permit the program to
excise taxes
Tax
rate.
'.This
table
disclosed
these
(1 )> Based upon the latest
lubricating oils
Total
proceed at the originally planned
alarming conditions:
on
A
0.12
0.15
$1.60
that the problem
offi¬
cial cost estimate, the authoriza¬
tions for the Interstate System for
of financing the
highway program could be solved
simply by transferring these
revenues
to the Highway Trust
very
The
Trust Fund through 1978, the plan-
the
until
future
benefi¬
after the
Roads
its
would permit the continuation of
Federal aid during the years when
the indebtedness is liquidated,
as
Interstate
1978
$1
.
Bureau
submits its four-
awarded
was
to
the
100.28%
which
named
coupoh.
The net proceds of the sale will
/
be
used
by
the
communications
to reimburse its treasury
for expenditures made for exten¬
billion
1.5
__
of
company
Annually
1973-1977
bid
4%%
a
.
follows:
issue
Morgan Stanley group at competi¬
tive sale yesterday (Feb. 25) on
(4) By continuing the taxes and
sions, additions and improvements
telephone plant. Construction
billion
to
ABC
1973-1978 —1
expenditures
billion
for
proximately
1958
were
ap¬
$140,000,000.
(6) The last approach to solv¬
ing our financial problem would
company . reports
large expenditures
are
be to
meet
The
further *
for
on
put all Interstate Highways
toll
a
50-80 %
of
Federal
the
and
the
cover
status.
Finance,
with
cost
State
say
direct
Funds,
and
balance with Toll Road
Revenue Bonds to be paid off by
toll from the users.
These, gentlemen,
the
and
The
company
The
Feb.
28,
which will
the careful attention of
receive
our
Con¬
The leaders of the highway
committees
indicated
of
both
Houses
determination
a
have
to
see
that corrective legislation is passed
in this session.
Before
closing, I want to add a
thoughts con¬
cerning the highway program.
few
miscellaneous
is
subsidiary of
Telegraph
a
bonds will be redeem¬
new
the financial aspects of the High¬
Program
to
American Telephone &
Co.
at
way
needed
telephone
operation
finance other improvements.
able
some
that
service, to expand dial
of
are
demand
106%
and
to
1961
and
including
thereafter
at
prices decreasing to the principal
amount on and after Mar. 1, 1989.
Illinois Bell Telephone provides
service
in
counties
Illinois
in
and
Indiana.
in
On
two
Dec.
31,
company had
3,708,763
telephones in service, about 49%
being located in the City of Chi¬
1958
the
The company reported total
revenues of $469,416,826
cago.
operating
(1) Nineteen-fifty-nine will be
biggest highway year in his¬
tory with the construction com¬
for 1958 compared with
$445,540,416 in 1957.
Total income before
ponent
periods
the
billion
amounting
of
$7.1
a
to
about
$6
billion program.
interest
(2)
Demand
will
increase
and
$63,899,945,
At
for
deductions
amounted
Dec.
31,
for
the
two
to
$72,964,463
respectively.
1958
the
company
had a total funded debt of
$205,=
equipment, particu¬
larly to replace obsolescent items 000,000. American Telephone owns
more than 99% of the
outstanding
with faster, heavier and more ef¬
construction
common
way;
such as steel, aluminum,
asphalt, tar, cement and all forms
of aggregate.
\
(4)
of the
Progress
will
made
be
stock.
Purch. & Sales Oiv.
Elects Officers
in
The
following officers of the
Sales-Tabulating Di«'
tation of
of
elected for the term of
of
of
the
rests.
At
basis
a
the
the
which
on
highway program
that
time
it
would
for
highway
program
among
beneficiaries.
Ijn order to carry out this solu¬
„
tion, the following
be required:
(a)
wider
steps
would
Suspend the Byrd Amend¬
Suspend
of
and
the
the
the
termination
Highway Trust Fund
date
of
the
taxes
electronics
and
at
radioisotopes.
of
will
Purchases &
be
made
in
a
meeting
on
President:
one
year
Feb. 21:
Carmine
(6) Despite the step up in the
construction program,
highway
contractors will be operating well
curities &
Carmello,
Richard J. Buck & Co.
(7)
standardized
of Wall Street, Association*
Stock Exchange Firms, were
bridges
resulting in greater efficiency and
economy and less delays.
use
their
capacity.
Despite the size of this great
construction program, its impact
will not be inflationary. The aver¬
number of bids received per
age
contract
seven
(b)
of
(5) Progress
the
ment.
date
use
nuclear energy in high¬
work, particularly the utili¬
below
What Is Required
aged
during
1958 has been
bid prices have aver¬
below the engineers'
and
10%
estimates in most instances.
which
1st Vice-President: John E. Ja¬
cobs,
Eastman
Dillon, Union Se¬
Co.
2nd Vice-President: Gerald Py-
Shields & Co.
Treasurer: Robert Gerber, Troster, Singer & Co.
per,
Asst.
Treasurer:
Nat
Faragasso,
F. I. duPont & Co.
Secretary: Frank Di Paola, Kid¬
der, Peabody & Co.
Asst. Secretary: Louis
Nardone,
L. F. Rothschild & Co.
Financial*
'
Secy.: John
Hayden, Stone & Co.
Rouse,
(8)
feed it.
(c) Cover the deficiency through
borrowing either:
1963 by
If emergency public works
expenditures are ever needed as
an
aid to
a
sagging economy, the
Form Market
Improvement
(Special to The Financial Chronicle)
industry stands
ready
(1) From the General Fund with
planned, fully justified proj¬
MIAMI, Fla.—Market Improve¬
(repayable 10-15 years).
ects. It puts money to work fast, ment Company has been formed
(2) By issuance of 10-15-year efficiently and effectively on bad¬ with offices at 6695 N. W. 36th
Highway Bonds.
ly needed construction which pays Avenue to engage in a securities
Officers
are
T.
(d) Provide increased taxes to quick dividends to the public in business.
W.
be effective July 1, 1962,
convenience
and
lower Smith,
President;
Daisy
Bisz,
adequate safety,
No public works program
to raise sufficient revenue to pay costs.
Secretary; and T. B. Moorhead,
off the indebtedness, pay interest has so broad and rapid an impact Treasurer.
on
for 10-15 years, and keep the re¬
our
economy both geograph¬
mainder of the program on a cash ically
and industrywise
as
the
Midamco Opens
basis beginning with 1964.
This highway program.
would require about $1.5 billion
OKLAHOMA CITY, Ok la. —
Midamco, Inc. has been formed
annually in new tax revenue.
Form Estate
highway
Planning
0.03
glance at this total indicates
whole
delayed until
were
way
Fund to meet peak cash d<Anands.
(3)
borrowing
after 1973.
zation of
if
coupled
Byrd
Amendment, would provide ade¬
quate financing.
After
1963
it
would
require
borrowing from
the
the
1, 1994. The bonds are priced at
101% and accrued interest, pro¬
viding a yield of about 4.32% to
maturity.
many
the
revising taxes
supporting the Trust Fund to fair¬
ly distribute the remaining costs
in¬
forecast for the 3c tax would pro¬
duce a total new income of $12.7
with
far less than the increased capital
cost
if the
construction
of
the
roads in 1960-72 made possible by
photogrammetry and in the adap¬ vision
now
tax.
Projecting this in¬
yearly
through
1972
in
proportion to the official income
tration
(3) The total interest on the
indebtedness would probably be
view the entire tax base
creased
Adminis¬
for
pay
firms that is offering for
public sale today (Feb. 26) a new
issue of $50,000,000 Illinois Bell
Telephone
Co.
first
mortgag#
4%% bonds series F, due March
Highway Program" in 1961. When
this study is completed, Congress
will be in a good position to re¬
crease
1963 has
are
ment
the
have
through
Morgan Stanley & Co. heads an
underwriting group of 29 invest¬
$10.2
"Benefits and Beneficiaries of the
support
basis
our
we
comprehensive study
tion
temporary
plus
and
good
and
of
taxes
$1,661 billion from the
present 3c tax, and presuming that
no reduction in
gasoline consump¬
a
be
(3) Demand will increase for
the items which go into the high¬
year
of
billion, which would be adequate
total but not on yearly cash
would
ficient models.
of Public
taxes.
the
roads
use
some
user
initially, only $830 million,
based, upon the estimated 1960 in¬
from
1972
This borrowing method would
give Congress the opportunity to
delay any revision in highway
pro¬
vide
Fund-
made of the
let
in
ciaries pay part of the cost?
proposal to
increase the Federal gasoline tax
by Hi*c from 3 to 4^c would pro¬
result
1940-1956
needs,
bill today for yesterday's, today's,
and tomorrow's roads?
Why not
Administration's
would
in
road
of
years
gram on a sound cash basis. This
solution would require a very sub¬
The
built
build
we
Trust
sufficiently to put the
appealing approach
sound justification.
attempting in 15 years to
building to standards required for
the traffic of 1975.
Why should
increase Federal
earmarked
Fund
eral
Limitations
been
in balance.
We
are
an
some
current
proved. Also, make provision in
all financing plans for support of
the
stepped-up ABC authoriza¬
tions needed to keep the program
(2)
is
has
build the roads which should have
provision for automatic future pe¬
riodic revisions as necessary when¬
highway
•
This
We
in
We
ficiency by borrowing with future
several
Offers III. Bell Bonds
(2) This balance of $10.2 billion
would be liquidated by 1978.
gress.
Fund de¬
possible solutions, all of which, no
doubt, will; be studied by the ap¬
basis. This solution oh
41,000-mile Interstate System.
an
Fund income earmarked to
the
the
time the authori¬
(5) Finance the Trust
course,
mitted
Secretary of Commerce sub¬
two plans for the consid¬
eration of Congress on this sub¬
ject. Neither plan calls for any
action until after completion
yof
construction of the remainder of
1960.
both the States and industry.
Solutions
Morgan Stanley Groan
•
the end of the present accelerated
program
Byrd
suspended
To complete
Trust
come
.
how
way,
gram be put on a sound basis?
would have made the problem of
finding
another
and
the
been
inadequate Trust Fund.
To be dependent upon a
yearly
appropriation from the General
Fund would again inject a factor
of
uncertainty, tending to discour¬
age sound long-range planning by
Highway Trust
avoided; or, stating the
f
(1) Outstanding indebtedness at
the
by the estimate of money needed
to do the job, not by the cash avail¬
the
through 1978. Some of the
results of the study
are:
of
zations, and apportionments made
under them, must be controlled
the future de¬
can
not
the program on
able in
financing of the highway
That
Congress will again
suspend the Bvrd Amendment in¬
a
in
be
question
the
for, 1959
highways?
ficiency
Fund
had
year
Amendment
of
number
last
case
of -the 41,000 miles of high-,
rather than so many dollars
years
'
(3)
given
a
General
be measured in terms of
gen¬
can
Trust
building -in
Fund
help sup¬
port the highway program, since
many of the benefits are spread
well beyond the highway user and
.
at
would
equivalent deficit in the
an
Fund should be used to
cal time," and is still
shooting for by about $12.6 billion.
a
13-year authorization. In. other:
The abdve points raise two logi¬
words/we assumed that there will cal
questions: y
/
\
be ho stretch-out..
;
First; With future fluctuation in
(2) That Congress still wants to: cost ■estimates
probable, what
maintain a balanced program and
should be done
to provide
au¬
hence
will continue to
increase thorizations which will
insure the
the ABC Federal authorization
user
cover
the
deficiency in the
Highway Trust Fund. There are
and
.
•
these
highway
to
not
1957
billion.
(4) Make
necessarily agree
with :someofficial
published
figures:
■ •.J/
...
to
General Fund.
"
approximately
$923 million by 1960. I emphasize
again that these are computations
based
spokes¬
Highway Trust/ Fund
annually, from the General
.the RED
will be in
hence
taxes
Second:
$1.98
1
'
>
Administration
taxes; and
The
.
two
are
interesting
they do not
excise
from^ previous unliquidated
authorizations.
there
have indicated opposition be¬
men
on
„
intends
System be completed by all States
to presently
approved minimum
standards "in
Fund.
serious difficulties:
•/
Congress will main¬
.certain
The
inherited
money;
highway program, and will
certain
an*
born
zero
must
study,
our
found
that
assume
tain
the
easy
two things:
More
authorizations. .....
more
as contained in
1958 Highway Acts
r
cause
(2)
was
see
accomplish
to
stated desires of
to
was
and
lion.
making a thorough study of
the. financial aspects of the
high¬
way situation, it
1956
totaling $15,725 billion,
What It Required
;
through 1969,
the
money.
Or,
(e)
as an
Cut
alternate step:
the
tax
increase
NEW
pro¬
posed in "d" above in half—or to
million
$750
tinue
$1
deficit
billion
a
annually—and con¬
financing at about
year through 1971.
I worked out the
last
solution
for
answer
the
to this
period from
with
offices
in
the
Mid-America
BEDFORD, Mass—Estate
Planning Corp. has been formed
Bank Building to engage in a se¬
curities
business.
Officers
are
with offices in
Wilfred
the First National
Building to engage in
business.
Officers
are
a
securities
George M,
Levenson,
President; Henry C.
Holcomb, Treasurer; and Joseph
V. Smith, Assistant Treasurer.
M.
Avery,
President;
Wilson, Vice-President;
Rowntree,
SecretaryTreasurer; and J. F. Gibson, As¬
sistant
Secretary and
Assistant
Louis
R.
John
M.
Treasurer.
36
The Commercial and Financial Chronicle
(1004)
Continued
Smith, Barney Group
Shr.
a
public offering of stock
of The Thomas & Betts Co., of
Elizabeth, N. J., a leading electri¬
cal products manufacturer, is be¬
ing made today (Feb. 26) by an
underwriting group managed by
The first
Smith, Barney & Co. This offer¬
registered secondary of
300,000 shares of common stock,
will be priced at $17.50 per share.
It will
represent approximately
20% of the outstanding shares.
The
selling shareholders which
include the Chairman, the Presi¬
dent and other key officers will
continue
to own
approximately
40% of the outstanding shares fol¬
lowing this offering.
ing,
a
Net sales of Thomas & Betts in
amounted to $17,084,414 and
1958
profit was $1,524,986.
The
company has declared a 20 cent
quarterly dividend on the common
stock payable March 31, 1959 to
holders of record March 16, 1959.
The shares being offered today
net
will
participate in this dividend.
Thomas
a
manufactures
Betts
&
broad line of electrical raceway
accessories
conductor
and
con¬
are in¬
designed
tools and equipment. These prod¬
nectors
many
stalled
with
which
ucts
throughout
used
are
entire electrical systems number
some
25,000 items and comprise
one of the most complete inven¬
tories of electrical "shelf goods"
available
in the
industry.
The
in
engages
company
continuing
a
program
of product innovation
and improvement and is constantly
designing and manufacturing items
to
meet
customers'
specific re¬
quirements.
In January, 1958, the company
acquired
developed
partially
a
line of continuous strip soldcrless
terminals
related
and
automatic
Activity remained at
reduced
plant in Elizabeth, a 92,000 square
foot plant addition is under con¬
struction.
Magnavox Conversion
All holders of the 92,561
Magnavox
tive
convertible
which
as
454%
Co.
shares
preferred
1959, have exercised
privilege
to
convert
said
.shares into
Feb.
2,
stock
common
standby agree¬
ment, Blyth & Co., Inc. offered
during the period from Dec. 29,
1958 to Feb. 2, 1959 to purchase
at a price above the redemption
price any preferred stock tendered
a
to it and to convert such preferred
into common stock.
.stock
been
James
and
man,
A.
Petti
have
added to the staff of Keller
BOSTON,
Shea
has
Mass.
become
3P. de Rensis &
Street,
Richard
—
associated
L.
with
Co., Inc., 126 State
members
of
the
Boston
Stock
Exchange. Mr. Shea was
formerly with Schirmer, Atherton
&
Co.
McDonald Adds to Staff
(Special to The Financial Chronicle)
CLEVELAND, Ohio
Marvin
.staff
of
has
been
—
added
McDonald
to
the
&
Company,
Union Commerce Building, mem¬
bers
west
of
the
Stock
New
York
and
Exchanges.
Mid¬
year.
has
Commodity
Prices:
Reserves:
and
Total
loans
and
Government
s>.
the usual
decline,
securities
increased
at
slightly, in contrast with
new Treasury issues in
late January exceeded reductions earlier in the month.
Member bank borrowings from the Federal Reserve
averaged
$470 million and
excess reserves $440 million over the four weeks
Feb. 11. Borrowings were about $220 million less than
in the previous four weeks while excess reserves were about
$160 million less. Reserves were supplied to banks through con¬
ending
currency
inflow
in Federal Reserve
and were absorbed through reductions
holdings of U. S. Government securities and
'/•
|
:
Security Markets: From mid-January to mid-February yields
on Treasury bonds remained near
postwar record highs and yields
on high-grade
corporate and State and local government bonds in¬
creased.
The Treasury bill rate declined
sharply at the end of
January, reflecting demands from investors switching out of
government securities involved in the large February refunding.
a
result of the large volume of ca«?h
redemptions in the re¬
funding, the Treasury on Feb. 11 offered for cash $1.5 billion
of
September tax bills, and the bill rate
rose
mills
are
warning customers that June carry-y
be the first post-strike business taken?
"
yy
Industry Verging
on
<
•
New Production Record
y
average of
the record week of Dec. 17, 1956.
bank acquisitions of
as
The
Last week, mills boosted operations 2.5
points to 86% of
capacity and turned out about 2,440,000 net tons of steel for ingots
and castings. That's only 85,000 tons less than they produced in
city banks declined $1.7 billion in January and early February
largely reflecting seasonal repayments of bank loans. Holdings of
U.
cushion?
%'yy^;-.
products.
investments
"a
mills will have to operate lat90% of capacity from March through June to break,
the six-month record of 62,607,172 net tons established in strikeplagued 1956.
y,':y'
y,.'
wholesale prices of all commodities changed little.
Credit
Bank
up
The metalworking weekly said
an
Meanwhile, prices of farm and food products declined, reflecting
mainly decreases in hogs and pork in response to large supplies,
and average
build
Upsurging steelworks operations supported by fear of a mid¬
steel strike and by improving metalworking operations may
f
establish
a
six
months'
production record in the first half,
"Steel" magazine said on Feb. 23.
Vyy,y\y;yyy>"y
Prices of steel
finished
efforts to
steel shutdown."
year
scrap, copper, cotton textiles, and some other materials advanced
and
there
were
scattered
increases
among
nullify
a
and July orders will
Steel
wholesale prices of industrial
mid-January to mid-February —
from
above the recession low last spring.
to
of.
care
Average
further
rose
level 2%
a
ended.
overs
.
to
tends
they're placing orders for third quarter delivery on the
assump-'
tion that they will be near the head of the line when a
walkout"
about seasonally and were substantially above the reduced yearearlier level.
'
.
Order backlogs are ballooning, "Steel" said.
In the last few
weeks, mills have been flooded with orders. One large eastern
producer attributes 35% of its current bookings to strike fever.
Orders are accumulating faster than they can be processed.
Since
Jan. 1, Jones
& Laughlin Steel Corp.'s backlog has doubled.
It's the largest in the company's history.
Some steel producers are becoming somewhat concerned over
the frantic rush of consumers to place orders, the magazine said.
They suspect that consumers may be overdoing it.
Makers of flat-rolled products are running their mills at;
capacity and have little tonnage open for the first half. February
bookings of hot-rolled bar producers are running 25% to 30%';
ahead of last month's. And steelmakers report that oil companies
are going "hog wild" in their efforts to replenish low inventories
of tubing and casing.
i. n
Signposts indicate that the recovery from the recession of
1958 is nearly complete, the metalworking weekly said. Twenty-;
one of the 30 barometers of
business important to metalworking
have turned up from their low points.
And "Steel's" industrial
production index is approaching an all-time high.
Abandonment by the government last week of its "open
door"7
policy on copper shipments to the Soviet bloc may be a prelude/
.to a new look in trade relations with Russia, "Steel" said.
The.
move might be the first in a complete re-evaluation of our trade
policies with the Soviets.
V
"Steel's" price composite on the prime grade of steelmaking
scrap held unchanged at $42.50 a gross ion for the second straight
,
somewhat.
(
American
v,
it
Economy Expected to Double by 1975
America's; total output should
can
move
more than double bv 1975, but
only as fast as construction will pace it, "Engineering
the McGraw-Hill publication, declares.
week.
News-Record,"
Just
so
the construction
as
industry has led the nation's
out of three recessions and
it
will
the article
economy,
as
econ¬
The
it
says.
tribute to faster economic growth."
In today's
prices, the Gross National
estimate.
1975.
This is
nearly
Product
double the
should
reach
Institute
announced
that
the
of
2,449,000 tons
Actual output
the
a
for Feb.
Jan.
1,
week ago.
16 week was equal to
1959 annual capacity of
86.5%
of
the
147,633,670 net
Estimated percentage for the week of Feb. 16 is 87.6%.
For the Feb. 23 week a month ago the rate was *135.6%
tons.
and
production 2,178,000 tons. A year ago the actual weekly produc¬
tion was placed at 1,475,000 tons, or *91.8%.
v
\
*Index of
Solutions to these problems will require billions of dollars
for the construction that must precede
higher output and improved
distribution.
For this reason, construction's
growth must rise
faster than the total economy. Outmoded
public and
must be modernized to keep pace.
This means, that by 1975, annual
than double.
By 1975,
private plants
construction
volume
will
(in 1958 dollars) heavy construction
Resorting to "Desparation" Moves
the final cost of the finished product."
ability of
Says
desperate
a
and
running into still another problem: the prob¬
freight
one
mills
shortage.
authority: "Within two weeks we'll be in
car
traffic
condition."
The
mills
are
they must ship by whatever
average
production
weekly
Car Output
Markedly Above 1958 Pace
on
Feb. 20.
•
Planned by the industry, according to the statistical publica¬
were
121,859 automobiles, 5.5%
total
since Jan.
last week.
It
was
more
than last week (115,859)
19-24
(126,843).
estimated at 25,012 units compared to 24,907
the fifth week in
a
row
that trucks
were
pro¬
grammed at approximately 25,000 units.
Age" said more steel users are talking to the mills
about lining up ingots and slabs for conversion to
sheet and strip.
"This is a costly arrangement for the steel
buyer and repre¬
sents a desperation move on his
part," said "Iron Age." "It usually
involves a lot of cross-hauling and extra
handling that run up
the
on
Passenger car production in the U. S. this week was scheduled
at its highest rate in a month, "Ward's Automotive Reports" said
Truck output was
accord¬
"Iron
metalworking magazine noted that both
production is based
1947-1949.
tion,
A note of panic is
creeping into the steel market,
ing to "The Iron Age," national metalworking weekly.
are
for
and best
Steel Buyers
The
Steel
and
■/'■%
how to expand production facilities and improve distri¬
bution.
where
capacity and
$437 billion in
reach its goals will have
resources and existing re¬
new
■
Iron
V:';;
of Current Capacity
steel companies will average *154.4% of steel
capacity for the week beginning Feb. 23, equivalent to 2,481,000:
tons of ingot and steel castings (based on average weekly producTi
tion for 1947-49) as compared with an actual rate of 152.5% of
utilization of
Construction, in order to
utilize
American
operating rate
"To do
this, the construction industry must solve some major
problems, and perhaps one of them," the article comments, "is
to do a better job of telling the public how construction can con¬
/■
Steel Production Approaching 100%
guided the postwar boom,
surpass—the upward swing of the nation's
pace—and
their customers
Clitus H.
prod-?
half of the
"Iron Age" said that more users have
begun to worry about
their inventory position after, as well as
during, a strike. So
adjusted retail sales, which had risen
December to a new high, were maintained in January.
Sales at department stores declined but, like total retail sales,
were 5% above a year earlier.
Unit sales of new autos declined
commodities
This
against the possibility of
in
contracts will total $40 billion.
(Special to The Financial Chronicle)
"
worst of it is," said the
magazine, "some steel buyers >
have waited too long to rebuild their stocks. The movement
comes at
a
time of rising industrial
output, and metalworking •
companies are chewing up more steel to keep pace with
better?
Distribution: Seasonally
4%
more
Joins P. de Rensis Co.
ibinge
V.
"The
adjustd nonfarm employment rose
million, reflecting advances in trade,
construction, and state and local government. Unemployment in¬
creased seasonally to 4.7 million and the seasonally adjusted rate
was
about unchanged at 6%
of the civilian labor force.
In
manufacturing, weekly earnings decreased slightly as average
weekly hours worked declined seasonally.. Hourly earnings were
unchanged at $2.19 and averaged 4% above a year earlier.
sources,
Brothers Securities Co., Inc., Zero
Court Street.
than
Age" said the boom in steel demand is due
largely to
of a; steel strike at
mid-year. Steel users are trying to re-5
build their inventories as a hedge against a walkout.
V
Seasonally
Employment:
1958
(Special to The Financial Chronicle)
v
all-
an
more
worst
"Iron
somewhat in January to 51.0
to determine how best to
BOSTON,
Mass. —Joseph
A.
Carmichael, Melvin W. Cohen,
Charles J. Hughes, George Katz-
sold out for the first
business.
$855 billion by
Keller Brothers Add
man.
the
fears
dential, highway, and public utility activity.
omy
to
are
$54.3 billion, 17% above the May 1958 low and 11% above a year
ago. The January advance was marked by gains in private resi¬
through
1959.
Pursuant
leading steel
is
may
stock
of Feb. 5,
the
"This
year.
Demand is strengthening for oil
country casing and tubing,
diameter linepipe hot- and cold-finished bars.
Standard
pipe, small linepipe, standard structucals and rails are still
lag¬
ging. Plate and wide flange structural are classed as
"tight."
'
cumula¬
called for redemption
were
a
the
of
large
As
Privilege Exercised
of
start
had," said
ever
Construction: Private housing starts in January were at a
seasonally adjusted annual rate of 1,350,000 units, somewhat below
the high December rate.
The value of total new construction
put in place rose further to a seasonally adjusted annual rate of
in float.
main
ucts
^
Mass.
company's
the
Age" said the logjam is worst in flat-rolled products
hot- and cold-rolled
sheet, cerneplate, enameling sheets, electrical
and galvanized sheets.
For all intents and purposes these
Expansion in nondurable goods industries was resumed in
January and over-all production reached a new high. Minerals
output declined slightly as curtailments in coal mining and oil
and gas well drilling were not fully offset by increases in other
mineral products.
' •
.
'
tinued
the
since
"Iron
total auto assemblies
levels in the farm ma¬
chinery industry, owing to work stoppages, but continued to
increase in other business equipment lines.
attaching machines by purchasing
the Kent Mfg. Corp..of Newt.oh,
At
we've,
Industry
limited output of a major auto producer and
which
of
company
hit
time
The State of Trade and
declined.
Thursday, February 26, 1959
.
.
Meanwhile, order backlogs at some, mills have
high. Unshipped orders at one, company have
4
page
doubled
Offers Thomas & Belts
Stock at $17.50
from
.
a
rapidly reaching the point
happen to be at hand.
means
The boom in steel demand has also showed
up a truck shortage.
This situation is expected to worsen in the months 1 ahead.
"Ward's" said that at the end of this week, car production for
calendar year 1959 will total an estimated 897,399 units.
The
1,000,000th automobile of the year will be turned out on Feb. 26,
according to present schedules.- This is 14 days ahead of last
year's pace, when the 1,000,000 point Was reached March 12.
Every corporation joined in this week's car production in¬
crease, "Ward's" said. Chrysler Corp., building up its volume fol¬
lowing a month-long check of assembly operations caused by a
glass shortgage, programmed a 30% boost over last week. Ameri¬
can
Motors, returning to six-day output after being limited to
five days the preceding two weeks due to low glass supplies,
looked for
a
Planning
General
21%
improvement.
increases
smaller
Motors
(2%)
and
were
Ford
Co., (6%),
(1%).
Stude-
Motor
Studebaker-Packard
Volume
189
Number 5824
The Commercial and Financial Chronicle
...
(1005)
baker-Packard however, is building
at its best level in three
cars
Wholesale Food Price Index at 1959 Low
years.
"Ward's"
said
480,000 cars
72,891 trucks in
and
the
month
same
last
Failure
year.
of
industry to attain the 500.000 mar^ m car output this month
attributed to Chrysler's limited activity.
<n:.\
■.
-
.
■'
'
1
the
Feb.
:
1
-"'i,
industry for the week ended Saturday, Feb. 21,
power
Output the past week
was
6.5%
were
pre¬
ceding week.
For the week ended Feb. 21, output increased by
100,000,000
above that of the previous week, and showed a gain of
a
cocoa
sugar,
higher in price this week. Down
milk, coffee, cottonseed oil, eggs, and
were
•:
.■
-
The index represents the
sum total of the
price per pound of
foodstuffs and meats in general use. It is not a
cost-ofliving index. Its chief function is to show the general trend of
31
raw
food prices at the wholesale level.
Wholesale
Commodity Price Index Declines
921,000,000 kwh. above that of the comparable 1958 week.
'
Loadings of
Reflecting lower prices on rubber, some grains, and livestock,
general commodity price level fell somewhat in the latest
On Feb. 20 the
Daily Wholesale Commodity Price Index,
compiled by Dun & Bradstreet, Inc., stood at 275.73,
compared with
276.49 on
Monday, Feb. 16 and 280.26 on the comparable date a
week.
freight
for the week ended Feb. 14,
totaled 567,134 cars, the Association of American Railroads an¬
nounced, an increase of 1,737 cars, or 0.3%, above the preceding
week.
The
33,948
revenue
total
the
for
latest
week
reflected
an
increase
of
above the corresponding week in 1958, but a
decrease of 108,832 cars or 16.1% below the corresponding week
in
cars
6.4%
or
1957.
Lumber Shipments Show 0.6% Gain
::
year ago.
7' Lumber
ended
shipments
were
Feb.
14.
6.2%
In
of
mills reporting to the National
0.6% above production for the week
480
were
the
same
week
of
orders
new
these
mills
above production.
Unfilled orders of reporting mills
amounted to 41% of stocks. For reporting softwood mills, unfilled
orders were equivalent to 20 day's production at the current rate,
and gross stocks were equivalent to 46 days' production.
For
were
the
year-to-date, shipments of reporting identical mills
below production; new orders were 5.8% above pro¬
0.2%
duction,
*7."
.'.'v
For the week ended Feb.
.
14, as compared with the preceding
was 3.3% below; shipments
0.7% below. Compared with
the corresponding week in 1958, production of reporting mills
was 2.0% below; shipments were 1.9% above; and new orders were
2.4%
below;
new
orders
were
11.7% above.
There
was
•
•
•
•
-
•
slight reduction in wheat supplies at the end
a
of the week.
Light offerings and sluggish trading resulted in a
slight de¬
crease in corn
prices. Turnover in rye and oats lagged and
prices
weakened. Declines in soybeans
prices reflected decreases in the
oil and meal markets and lower
support rates.
Purchases of flour moved
up moderately during the week in
market, and prices were slightly higher than a week
earlier, export buying of flour lagged. Both domestic and
export
trading, in rice expanded again and prices were sustained at
the
prior week's levels. The most sizable
purchases in the
the domestic
ket
There
and
export
made by Pakistan and
Indonesia.
were
week, production of reporting mills
were
:
••
Although most grain prices picked up at the end of the
week,
they finished fractionally lower than those of the
prior week.
Domestic trading in wheat was
sluggish throughout most of the
week, and prices slipped somewhat.
Export buying improved at
the end of the
period,, with sizable purchases by Yugoslavia and
Japan.
Lumber Trade Baromter
was
prices
a
were
mar¬
moderate decline in sugar
transactions this week,
down fractionally.
Although coffee trading was
close to the prior
week, prices fell somewhat. Cocoa volume rose
noticeably at the beginning of the week, but tapered off at the
end
period; prices were up slightly from the
preceding week.
Wholesalers in Chicago
reported a moderate decline in hog
receipts and trading slackened; hog nrices
dipped sheM.lv, c'oip.s
<
Commercial and industrial failures continued up to 310 in the
;
week ended Feb. 19 from 292 in the
preceding week, reported Dun
& Bradstreet, Inc. However, casualties were slightly lower than a
year ago when 317 occurred, although they edged above the 300
in
1957.
Some
16%
more
week of prewar 1939
concerns
failed than
in
the comparable
casualties, those with liabilities under $5,000, which
were
down to
42 from 43 a week ago and 47 in 1958. Liabilities exceeded $100,000
for 30 of the week's failures as against 28 in the preceding week.
industry and trade groups suffered heavier tolls during the
retailing where casualties declined to 151 from 158.
increases raised manufacturing failures to 54 from 50,
ning
mercial service to 31 from 22.
More businesses succumbed than
a
ago in manufacturing, construction, and services, with the
most noticeable upturn in the service group.
But the toll among
retailers fell considerably below their 1958 level.
Geographically, the week-to-week rise occurred mostly in the
Middle Atlantic States, up to 107 from 95, in the South Atlantic,
up to 33 from 31, in the West South Central, up to 17 from 11, and
in the Pacific, up to 67 from 56.
Three regions reported declines
from the previous week. Business mortality dipped below 1958
levels in five regions, held even in two, while moderate increases
from last year prevailed in the Middle Atlantic and East North
Central States.
January Business Failures at Eight-Month High
7;
Rising seasonally in January, business failures totalled 1,273,
eight-month high.
an
casualties remained
prises
as
Despite this 18%
increase from December,
slightly below1 January last,
The rate of failure stood at 51
occurred.
per
against 53 in the comparable month
year
when
1.279
10,000 listed enter¬
a
year ago.
Dollar liabilities surged up more strongly than the number
failures, reaching $73.6 million.
This volume bulked 29%
larger than December and 14% above the previous January.
//'
;
of
Retailers
upturn; 25%
were
largely
responsible
for
the
month-to-month
businesses succumbed in this group than in
compared with increases ranging from 7% in con¬
struction to 16% in manufacturing.
Tolls climbed considerably
among retailers of general merchandise, apparel, furniture and
furnishings.
December
more
as
However, neither manufacturing or retailing casualties were
.
in January 1958. Marked declines, in fact, were noted
in the automotive and building materials trades, and the iron and
steel industry.
Contrasting increases from last year's level oc¬
as
heavy
curred
as
in
wholesaling, particularly in the machinery line; in
primarily among those engaged in painting, exca¬
vating, and road contracting; and in commerical services, where
construction,
transportation
concerns
Another
new record was
set in January in the number of
business incorporations, according to Dun & Bradstreet, Inc.
At 18,773, the total exceeded the previous high of 16,458 set in
December 1958 by 14.1%. The level was ud a sharp 43.5% over
«
13,080 of the similar month
New
seven
a
year
ago.
stock
corporations rose from the preceding month in
of the nine regions, with the declines occurring in New
England and the South Atlantic States.
ported noticeable year-to-year gains.
All
of the regions
re¬
serial
Promotions Help Retail Trade Rise Over
Year Ago
Numerous Lincoln s
Birthday and Valentine's Day sales pro¬
motions
r ed.
J18,
helped total retail trade rise slightly in the week
ended
over
that of both
the
prior week and the similar 1958
period. While year-to-year gains occurred in
sales of men's and
women's apparel, volume in
major appliances, linens, and drap¬
eries fell
moderately. There were substantial increases in
chases
over
of
external
passenger cars
last year were
widened,
The
total
dollar volume
during the latest week, and gains
according to scattered reports.
of retail
trade
in the Feb.
18
week
unchanged to 4% higher than a year ago,
according to spot
estimates collected by Dun &
Bradstreet, Inc.- Regional estimates
was
varied from the comparable 1958
levels by the following per¬
centages: East South Central -}-3 to -j-7; West North Central
+2
to +6; East North Central and South
Atlantic +1 to +5; Pacific
Coast 0 to -f4; Middle Atlantic —1 to
4-3; Mountain —2 to 4-2;
West South Central —4 to
0; New England —5 to —1.
Best-sellers in women's apparel were winter
loan
bonds
due
by
Kuhn, Loeb & Co.
$10,000,000 of * 5%;%..
sinking fund external loan bonds
offer
due
March
1, 1974.
sinking fund
priced at 95V2% and
The
bonds
are
accrued
in¬
terest, to yield 6.21%.
bonds
The serial
priced to yield an aver¬
are
of 5.80%.
age
A
>
British
Colony
with
wide
political autonomy, Jamaica holds
the major part of its exchange re¬
in the form
serves
of
in London.
ances
member of
eration
lished
of
the
the
sterling bal¬
It is the largest
ten-member Fed¬
West
Indies estab¬
early in 1958.
The sinking fund bonds will not
be redeemable prior to March
1,
1969, except through operation of
sinking fund.
The sinking
fund, which commences Sept. 1,
1960, will retire 100% of the bonds
the
by maturity.
1, 1969, the
Net
On and after March
sinking fund bonds
optionally redeemable.
proceeds
from
the
sale
of
the bonds will be
applied by Ja¬
maica to meet a portion of con¬
templated expenditures for eco-*
nomic
and
social
development,
including
agricultural
develop¬
ment, general development—such
as airport, drainage, and
port and
harbor
development — housing,
supplies and municipal
water
works.
Standard
Mfg. Corp.
Glass A Stock Offered
Plymouth Securities Corp., of
City, is publicly offering
New York
150,000
shares
class
of
A
stock
(par 10 cents) of Standard Manu¬
facturing
on
a
Corp.
best
$2
at
efforts
share
per
basis.
,
The net proceeds from
this of¬
fering will be used to pay loans
Iroquois Finance Co.; for
from
machinery, tools and dies; inven¬
tory;
and
for
general
corporate
purposes.
pur¬
new
dollars will
(Feb.
semi-annually Sept. 1, 1960-Mar.
1, 1964, inclusive, and a group
According to the Census Bureau, domestic
The
Illinois
dress
Ave.,
corporation was formed in.
on
June 18, 1949. Its ad¬
is
1100
maintains
plant
South
Chicago
24,
Central
111.,
executive
facilities.
The
Park
where
offices
it
and
corporation
is engaged in the design, manufac¬
ture,
fabrication and
door and outdoor
tic
advertising
plastic items.
sale
in¬
of
electrified, plas¬
signs
and
other
dresses, suits,
sportswear, and coats. There was a marked rise in interest in
Spring millinery and fashion accessories, and volume was
up
slightly from a year ago. Total sales of men's apparel advanced
slightly from last year with interest centering on
furnishings,
especially neckwear, white dress shirts, and socks. The call for
boys' merchandise moved up appreciably from both the prior
week and last
year,
and slacks.
Hayden, Stone Adds
(Special to The Financial Chronicle)
-
PORTLAND, Maine—Harold S.
Davis is
&
now
with Hayden, Stone
Co., 477 Congress Street.
with the most noticeable gains in sports coats
Over-all volume in home furnishings
dipped below that of a
ago.
Despite a moderate rise in television sets, total ap¬
pliance sales were down appreciably. Consumer buying of linens,
With L. A. Caunter
.
(Special to The Financial Chronicle)
year
draperies, and floor coverings slackened during the week and
year-to-year declines were reported.
Increased buying of occa¬
sional
tables and
chairs,
case
ture sales close to the similar
goods, and dinette sets held furni¬
CLEVELAND,
Rose has been
L.
of
A.
Ohio—Frank de
added to the
Caunter
&
Co.,
staff
Park
Building.
1958 week.
Housewives were again primarily interested in Lenten food
specialties, especially canned and fresh fish and dairy products.
There was a slight decline from the
prior week in fresh meat,
fresh produce, and poultry.
Now With Murch & Co.
(Special to The Financial Chronicle)
CLEVELAND,
Ohio—Raymond
W. Rooney,
with
Jr. has become affili¬
Murch
.&
Co.,
Inc.,
Hanna Building, members of the
ated
Nationwide Department Store Sales Up 8%
new
today
26), with
aggregating $12,500,000.
Kuhn, Loeb & Co. will offer $2,500,000 principal amount of 5J/2%
the New York
trading revived.
boosted the total.
January New Business Incorporations Set New Record
the
on
consumption of cotton in the four weeks ended
Jan. 31 came to
687,360 bales, compared with
727,410 in the preceding five weeks
and /97,774 in a
five-week period to Feb. 1 a year
ago.
United
States exports for the season to Feb.
17 were estimated at 1 746
303
bales, as against 3,135,071 in the comparable
period last season.
com¬
year
made
two issues
Cotton Exchange
dipped at the begin¬
of the week, but regained their losses at the end
of the period
when
week except
Slight
wholesaling to 33 from 24, construction to 41 from 38, and
scattered and
were
the salable
supply was limited. Steer
prices moved down somewhat from the
preceding week. Both
supplies and trading in lambs were lower
during the week, but
prices were steady. Following the
dip in hog prices, lard prices
fell below those of a week
earlier.
Prices
Failures involving liabilities of $5,000 or more climbed to 268
from 249 in the previous week but remained below the 270 of this
size last year. On the other hand, a dip appeared
among small
All
of cattle
when they totaled 267.
r
-
be
will also be
of the
Business Failures Continue Uptrend
first offering of bonds of
Government of Jamaica pay¬
will
the
;
The
the
managed
kwh.
Carloadings Up Slightly Over Previous Week
Offers Jamaica Bonds
a
able in United States
bellies, lard,
hogs.
was
above the level of the
at $6.16, down 0.2% from the
$6.17 of
below the $6.59 of the comparable date
year ago.
Rye, hams, and
estimated sX 13,259,000,000 kwh., according to the Edison Electric
Institute.
the index stood
week earlier and
The amount of electric energy distributed by the electric
light
and
17
was
Electric Output Exceeds That of Previous Week
■
-
•
Kuhn, Loeb Group
Wholesale Food Price Index,
compiled by Dun & Brad¬
street, Inc., declined fractionally for the fourth consecutive
week,
and reached the low
point so far this year set on Jan. 13. On
February production totals will approxi¬
and 99,500 trucks compared to 392,112 cars
mate
"
The
that
37
Department store sales
the
Federal
advanced
Reserve
8%
above
week, for Feb. 7
ended Feb. 14
a
an
on
Board's
a
country-wide basis
Index
for
the
week
as
taken from
ended
Feb.
14,
the
like period last year.
In the preceding
increase of 9% was recorded. For the four
gain of 8%
was
in
the
an
increase of 3%
corresponding period in
1958.
was
noted
York
Stock Exchange. He
formerly with Eastman Dil¬
lon, Union Securities & Co.
Philip S. Adams Opens
registered.
According to the Federal Reserve System department store
sales in New York City for the week ended Feb. 14 showed a 1%
increase from that of the like period last year. In the preceding
week, Feb. 7, an increase of 6% was reported. For the four
weeks ended Feb. 14
New
was
over
the volume
(Special to The Financial Chronicle)
GRAYS
Adams is
business
celia
LAKE, 111.—Philip S.
engaging in a securities
from
Street.
with Norris
offices at
He
was
& Kenly.
125
Ce¬
previously
Chronicle
The Commercial and Financial
.
.
.
(1006)
38
:: i yy: y;y
y®'
'
Thursday, February 26, 1959
y
\ ■-
■,' ■:
"' ;\:
:.
A:
★ INDICATES
Now
Securities
Acme Oil Corp.,
Advanced Research Associates,
N.
shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C.
Dec. 1 filed 400,000
Alaska Juneau Gold Mining Co.
Dec. 29 filed 640,660 outstanding shares
Y.
Premier
American
Feb.
(letter
2
share for each share
of
accounts.
$1).
be
Algom Uranium Mines Ltd.
Jan. 15 filed 822,010 shares of common stock being issu¬
able upon the exercise of outstanding stock purchase
warrants of the company which entitle the holders to
purchase common shares at $11 (Canadian) per share
at any time to and including March 2, 1959. Proceeds-rTo be used for general corporate purposes and may be
applied to the redemption or repurchase of the com¬
pany's mortgage debentures. Office — 335 Bay St., To¬
ronto, Canada. Underwriter—None. Statement effective
12.
Allied Publishers, Inc., Portland, Ore.
Nov. 28 (letter of notification) 22,000 shares of common
stock (par $1). Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment
Corp., Portland, Ore.
* Aloe (A. S.)
Co. (3/25)
Feb. 20 filed $2,500,000 of convertible subordinate deben¬
tures due March 15, 1974. Price — To be supplied by
amendment.
Proceeds--For working capital and other
corporate purposes. Underwriter — Goldman, Sachs &
Co., New York.
American Asiatic Oil Corp.
Nov. 24 filed 100,000,000 shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.
American Buyers Credit Co.
which
4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
issuable under agreements with various policy holders
In American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them
to purchase stock at $1.25 per share.
Sales personnel
have been given the right to purchase stock at $1.25
per share up to the amount of commission they receive
on stock sales made by them.]
Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
states. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
derwriter—None.
supplied by amendment.
working capital for expansion
purposes.
(par $1).
Proceeds—For
Underwriter—
Alex. Brown & Sons, and R. S. Dickson & Co;, Inc.
Inc., Denver, Colo.
1,000,000 shares of capital stock (par one
cent).
Price-—At market.
Proceeds—For investment
Office—800 Security Building, Denver, Colo.
Under¬
Sponsors, Inc., 800 Se¬
curity Bldg., Denver 2, Colo.
American-Marietta Co.
Feb. 12 filed 3,500,000 shares of common stock
(par $2)
67,310 shares of 5% cumulative preferred stock (par
$100) to be used in connection with the acquisition of
stocks and assets of other companies, of which
677,900
shares of common stock and 2,500 shares of preferred
stock have already been issued.
and
American Mutual Investment Co., Inc.
Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first
trust
notes,
second
trust
notes
and
construction
loans.
develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬
may
dent.
•
Jan. 29 filed 486,325 shares of common stock
(par $25)
being offered for subscription by common stockholders
of record Feb. 26, 1959, at the rate of one new
share
for each 10 shares then held
(with
on
an
oversubscription
March 12. Price—$57.50
share. Proceeds-^To be used as the equity base for
the financing of substantial expansion
programs of sys¬
per
Telemail
>iock
ab
-t
a
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo.
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.
held,
share.*-
el aims discharged:
matting oi
shares
unsubscribed
in
currentyreditors
.0
payment
of aiJ
share- tor--each* $4
One
f
rights to expire about two weeks-'v
oiler, rPrice—$4 • y share. Proceeds—
f Addres
- -P.
O. Box-506,
pa>ycurreiu ■creditors
Bowling Centers, Inc.
—'None. Offer¬
Bridgehampton. L. I., N. Y. Underwriter
ing—Has been delayed, r
"
y
Dec.
lotmftage
19 (letter
development Corp.
of notification)
$2 0,030
Price—Al
convertible debeuli res.
par
oi tvy/lo-yeai
($500 per unit)
expansion and working capital. Office—
Brooklyn 27, N. Y.
Underwriter 15 William St.. New York. N. Y
Proceeds—Foi
offered for the account of
a selling stockholder.
Price
supplied by amendment. Proceeds—To acquire
new bowling centers and increase working capital
(pari
o
be used in defraying cost of acquisition of stock of
jwner
of a Brooklyn (N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
£!inendment.
Offering—Expected in two weeks.
Ave..
Seneca
901
be
3
offered'tor subscription by stock-1
1
1958 on the basis of one new
Nov
-out
oJicrf.o
>jk:
dicr
acqgunt of the company and the common shares will
Feb.
i'oj turn-,
tit
»;
Under¬
standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for lh<
Atlas
U» be
>
record
bj
Nov. 24 filed 300,000 shares of 20-cent cumulative con
/ertible preferred stock (par one cent) and 50,000 out¬
—To
-$1
(pai
holders oi
Sano
Co..
&
Fund, inc., Ne w Vork
(by amendment) 100,000 additional shares
capital stock. Price—At narket. Proceeds—For in¬
if Bullock
filed
Feb. 24
of
vestment.
Investment Co.
Butler
filed
Brothers,
50,000 shares of common voting stock (par
>10).
Price — $25 per share.
Proceeds—To purchase
additional contribution certificates of Great Basin Insur¬
Office—704 Virginia
derwriter—None.
Stores.
>
III.
Chicago,
Feb. 17 filed
ance
Co.
Street, Reno, Nev.
provides
•
Australian Grazing & Pastoral Co., Ltd.
4,000,000 shares of common stock. Price—
(56V4 cents per share). Proceeds—To purchase
improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
for
•
Bankers Management
.
Corp.
v
.
Corp.
one
share
for
each
six
shares
held
Feb.
18, 1959;
share. Pro¬
ceeds—To reduce bank loan indebtedness; for property
additions; to acquire manufacturing laboratory equip¬
ment; and the balance for general corporate purposes.
on
March 5.
on
Price—$16
per
Office—East Franklin St., Danbury, Conn.
Underwriter
—Shearson, Hammill & Co., New York.
•
Bargain Centers, Inc. (2/27)
20
(letter of notification) $240,000
convertible
shares
of
Carraco .Oil
Co., Ada., 0kla.(3/2)*/yy;b
(letter of notification) 199,733 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
development; drilling and other general corporate pur¬
poses. Underwriter—Berry & Co., New York/ Statement
Nov. 10
effective Feb. 25.
V^yVv-fy*-
■
(leffer of notification) 300,000 shares of common
(par 25 cents). Price—$1 per share. Proceeds—
For working capital.
Address—P. O. Box 1849, 3720 E.
32nd Street, Yuma. Ariz. Underwriter—L. A. Huey Co.,
debentures due Jan.
common
stock
(par
stock
/'yw.y-y
Denver, Colo.
•
Illinois Electric &
Central
Jan. 21 filed
fered
rate
for
of
145.940 shares of
subscription by
one
new
share
Gas Co.
common
for
stock, being of¬
stockholders at the
common
each
shares held
10
10
of 6% sub¬
1, 1969 and
cents)
to
be
Proceeds—To be used for construction and for payment
of bank loans. Underwriter—Stone & Webster Securi¬
ties Corp., New Yoi*k.
/
offered
ih^ units of $100 of debentures and 25. shares of
Price—$125 per unit. Proceeds—For equipping
and decorating a new store and acquisition of real estate
for a
new
warehouse and working capital.- Office—
c/o Edward H; Altschull, President, 1027 Jefferson Cir¬
cle. Martinsville, W. Va. Underwriter—Securities Trad¬
ing Corp., Jersey City, N. J. Statement effective Feb. 11.
Bargain City, U. S. A., Inc.
5,000,000 shares of class A common stock
(no par). Price—$3 per share. Proceeds—For expansion
and acquisition or leasing of new sites. Office — 2210
Walnut Street, Philadelphia, Pa. Underwriter—None.
at the rate of one new share
for each five shares held
of Feb.
13, 1959; rights to expire on March 2, 1959.
Price—$5 per share Proceeds—To d^chanee bank loan
and to replenish.working capital/ Underwriter—Janney,
Dulles & Battles, Inc., Philadelphia, Pa.
as
• Cen*urv Shares Trust, Boston, Mass.
13 filed
(by amendment) an /additional
n
Feb.
Century shares (par $1).
Price—At market.
y
Bellec**asse Mining Corp. Ltd.
common
stock
(par $1).
Price—Related to market price on Canadiah Stock Ex¬
change, at the time the offering is made
Proceeds—To
be applied over the balance of 1958 and the next three
yy
y>,
Century Food Markets Co. y.
Jan. 9 filed 118,112 shares of common stock (par $1) be¬
ing offered for subscription by holders of common stock
For investment.
800,000 shares of
of
17,1959 (with an oversubscription privilege):
rights to expire on March 5, 1959. Price—$32 per share.
stock.
Oct. 29 filed
as
record Feb.
Nov.
ordinated
,
Nov. 17
of¬
fered for subscription by stockholders at the rate of
rights to expire
,
Cemex of Arizona, Inc.
Jan. 22 filed 102,533 shades of common stock, being
new
corporation proposes to offer to purchase shares of
and
preferred stock of United Stockyards,
and/or at the option of the. holder, to exchange, shares
of Uiiited for shares of Canal-Randolph.
The rate of
exchange is to be supplied by amendment; Price—To be
supplied by amendment. Underwriters—New York Hanseatic Corp., New York, and Rea Brothers Ltd., London,
England.
The former has agreed to acquire not" in
excess
of 162,500 shares of Canal-Randolph common;
and the latter a maximum of 110,500 shares.-
y/yr"
Barden
•
common
•
notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share;
Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,
Inc.
100,01.2 shales of common stock (par SI), be¬
The
working capital: Office *
St., Houston, Texas. Underwriter—McDonald,
Kaiser & Co., Inc., New York.
/ y y'':,yy/y y:
Colo.
Calvert Drilling,
Canal-Randolph Corp.
'-/y- J'V'vCy l
'
28 filed 816,721 shares of common stock;:{par SI).
>
indebtedness and foi
Franklin
Jan.
Feb. 10,1958, filed 400,000 shares of common stock (par!
25 cents). Price—$1 per share. Proceeds^—To reduce out¬
1404 Main
Ber.
general corporate purpo.es. Office—204 South Fair
St., Olney, 111. Underwriter—W. E. Hutton & Co., New
Yoik, N. Y., and Cincinnati, Ohio.
:
Fidelity Lite Insurance Co.
Feb. 28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock pur¬
chase options. Price—To public, $6 per share. Proceeds—
For expansion and other corporate purposes. Office—AtUnderwriter—None
to
for
Bankers
anta. Gs
merchandise
24; rights to expire on March 10. Price—$13 per share.
Proceeds—For development of producing properties and
Underwriter—None.
Tex.
and
ing offered/for subscription by common stockholders at
rate of one new share for each five shares held on Feb.
par
Office—1301 Avenue L, Cisco,
Robert Kamon is President.
services
Underwriters— -None,
Jan. 30 filed
Jan. 13 filed
At
30,000 shares of common stock to be offered
Ben Franklin Franchise Holders.
Company
certain
to
Un¬
Dec. 29 filed
American Natural Gas Co.
privilege); rights to expire
States
16
60,000
Company
United
"
bridge tampton Road RacesCOrp. ^ Jy y
v
Oct. 23 (letter of notification) 15,000 shares of common
Treat
stock
American Growth Fund,
Nov. 17 filed
writer—American Growth Fund
Office—Salt Lake City, Utah. Un¬
&
Co., Inc., of New York
New Orleans, La.
Jan. 30 (letter of
Pensacola, Fla. (3/10-16)
280,000 shares of common stock
be
and Howard, Weil.
Bankers Preferred Life Insurance Co.
18 filed
Price—To
York
mon
ie
Underwriters— S. D. Fuller & Co., New
Labouisse,.Friedrichs '& Com--
vington, La.
pany,
Jan.
Co., Inc., New York.
American Fidelity Life Insurance Co.,
debentures. Proceeds—
for working capital
to be used for general corporate purposes; Business—Sale *
and distribution of liquified petroleum gas. Office-^Co-
Armstrong Uranium Corp.
Associated
units of $50^ of
Price—$500
be offered in
unit, plus accrued interest on
oer
Proceeds—To purchase equip¬
Name—Formerly
in
to
To retire short-term bank loans, and
Minn.
Service, Inc. Offering—Expected early in 1959
standing
Enterprise Fund, Inc., New York
Oct. 30 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For investment.
Distributor—Ed¬
Feb.
corporate purposes.
Change
(par $1)
debentures and 50 shares of common stock.
and for working capital and Other
and supplies
derwriter—Amos
stock
mon
March 10.
Inc.
filed 375,000 shares of common stock (par
Price—$4 per share.
ment
cattle;
Nov. 13 filed 5,000,000 shares of common stock, of
debentures'due Dec. 31,
American Telemail Service,
common
supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif. Underwriter—Lester, Ryons
& Co., Los Angeles, Calif. No public offering expected.
•
on
filed $1,200,000
29
Dec.
share. Proceeds—For capital and surplus
Office—15 North Broadway, Rochester, Minn.
Underwriter—J. M. Dain & Co., Inc., Minneapolis,
and the remaining 340,660 shares in the future.
ward A. Viner &
held; rights to expire
i
V
(2/27)
Hydratane Gas, Inc.
Blossman
•
capital-
Price—833 per
rent^
American
of
shares
(par $16) being offered for subscription by stock¬
holders of record Feb. 14, 1959, at rate of 9/16ths of a
Feb. 17,. 1958,
Feb.
Co.
9,000
stock
stock, of which 300,000 shares are to be offered cur¬
Price—To
Insurance
notification)
of
ISSUK
•y.yy.•
follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.; ■
Wright area in Quebec); for general prospecting costs;
and for general administration expenses.
Office—Mont¬
real, Canada/ Underwriters — Nicholas Modinos & Co.
(Washington, D. C.) in the United States and by Forget
& Forget in.Canada. Statement effective Jan. 27, :
Corp. Bids—Expected to be received up to
(EST) on Feb. 26 at 165 Broadway, New York 6,
a.m.
REVISED
years as
First Boston
11
PREVIOUS
ITEMS
\
To be determined by
—
SINCE
•
c-ampetitive bidding. Probable bidders: White, Weld &
Co. and Drexel & Co. (jointly); Blyth & Co., Inc.; The
•
Inc.
Underwriter
companies.
tem
Wichita, Kan.
(letter of notification) 95,830 shares of common
stock (par $1). Price—$1.50 per share. Proceeds—For
development of oil and gas properties. Office—Orpheum
Bldg., Wichita, Kan/ Underwriter—Lathrop, Herrick &
Smith, Inc., Wichita, Kan.
Feb. 4
:
Registration
in
400,000
Proceeds—
-"'A'-
•
City Lands. Inc., New York
y
Jan. 13 filed 100.000 shares of capital stock.
per
Room
Price—$20
Offiee—
3748,120 Broadway, New York, N. Y. Underwriter
share.
Proceeds—To invest in real estate.
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
—Model, Roland & Stone, New York. Offering-—Post¬
poned indefinitely.-' ,f • •'
•
•
18
1984.
due
Proceeds
competitive bidding. Probable bidders: v First
Boston
Corp.; Dillon, Read & Co., Inc.; Halsey, Stuart & Co.
Ine;; Blyth & Co., Inc.; and White, Weld & Co.
BidsExpected on .March 24.
> • V;
/
•
-
--v
r
Clute
Corp.
;
«
.v-*. ■ >
„.r. •
(3/11)
■
Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share; Proceeds—To
additional costs of construction; and fpr retirement
obligations and working capital..-Office — c/o John
Harlan Lowell, 2200 Kenton,
Aurora, Colo. Underwriter
-^Lowell, Murphy & Co., Inc., Denver, Colo.
pay;
of
stock, respectively, of
Engineering (of Dunedin, Fla.). State¬
General Nuclear
ment effective
Feb.
11.
^f.Cbleman Realty Co., Inc., Exeter, N. H.
0
stock
conipMe; extensive
owned
by
to; afh office building
acquisition of additional
renovations
the
and
company
Commerce Oil Refining Corp.
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures du«
Oct. 1, 1968 and 3,000,000 shares c;f common stock to b»
Dec. 16,1957 filed
(let ter of notification) 500; shares of common
(no par); Price — $10 per share." Proceeds — To
pieces of real estate. Underwriter—None.
ceeds—For
shares of
com¬
Price—At par (10 cents per share).
investment. Office—450 So. Main
stock.
mon
Pro¬
St., Salt
City, Utah. Underwriter—Earl J. Knudson & Co.,
Lake City, Utah.
Lake
★ Consolidated Credit Corp.
13 (letter of notification)
30,000 shares of class B
Feb.
stock
common
rants
(par $1) to be offered to holders of
offered in units as follows; $l,00u of bonds and 48 share*
of stock and $100 of debentures """"d nine
shares of stock
Price—To be supplied by amendment. Proceeds — Tt
war¬
originally issued with $1.40 sinking fund series A
cumulative
preferred stock.
Price—$2.50 if exercised
prior to March 1, I960; $3 if exercised after Feb. 28, 1960
and prior to March
1, 1961; $3.50 if exercised after Feb.
28, 1961 and prior to March 1, 1962.
ular operation of business.
,
Feb!
Commercial Investors Corp.
(letter of notification) 900,000
Nov. 28
Salt
Engineering, Inc.
Dec. 19 filed 64,011 shares of
capital stock to be offered
in exchange for
81,002 shares of the outstanding common
stock and for 2,131 shares of the
outstanding $100 par
preferred stock of General Nuclear Engineering
Corp.,
at the rate of seven shares and 3.4302
shares of Combus¬
tion Engineering stock for each 10
shares of common
stock and each share of
preferred
refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.
York.
—
Combustion
39
construct
$33,000,000 first mortgage pipeline bonds,
Repay $40,000,000 bank loans; balance for
general funds.
Underwriter—Dillon, Read & Co., Inc.,
and Eastman Dillon, Union Securities & Co.
—
±
Co.
1979,- and
filed
120,000 • shares of cumulative preferred
stock ($100 par). Price—To be
supplied by amendment.
Payment of bank loans and general
corporate purposes. Underwriter—To be determined by
•P-I,
17
due
Illuminating Co. (3/24)
§25,000,000 of first mortgage bonds,
filed
Proceeds
Interstate Gas
Feb.
Cleveland Electric
Feb.
Colorado
(1007)
Proceeds—For reg¬
Office—316 Johnston Build¬
ing, Charlotte, N. C. Underwriter—None.
★ Consolidated Development Corp.
9 (letter of notification)
20,000 shares of class A
stock (par $1)7* Price—$5 per share. Proceeds
Feb.
common
—For
working
and/or investment capital and selling
Office—46 W. Washington Lane, Philadelphia
expenses.
44, Pa.
Underwriter—None.
★ Consumers' Cooperative Services, Inc.
Feb. 19 (letter of notification) 3,840 shares of common
stock.
Price—At par ($5 per share).
Proceeds—For
■
"new issue calendar
general corporate purposes. Office—38 Park Row, New
Underwriter—None.
York, N. Y.
t/fFb '(p-K£? >■ February
I5/' American Natural
26
(Thursday)
.Common
11
(Milton
:
*
,
(Friday) :r:*>.■'
Securities Trading Corp.) $300,000
'
;
(Paine,
&
Co.)
$1,200,000
piedmont
fOffering
.v..',"..-,..,-/..
"'7
debentures
and
120,000
common
Natural Gas Co
56,301 shares
Webber,
White Stag
I.
du
Cleveland
Co.)
Electric
1;
*
i
| prug Fair-Community Drug Co., Inc.__Debentures
l!.
:
(Auchincloss, Parker & Redpath) $750,000...../ V
Ohio
Ryder System, Inc.
<Blyth
Inc.)
Co.,
March 3
.':i ^Pacific Power
'
&
150,000
shares
Edison
Co.)
24
4,000
units
(Tuesday)
invited)
25
Co.)
&
invited)
(Monday)
March
207,852 shares
_Com. & Warrants
/
$25,000,000
EST)
a.m.
31
(Tuesday)
California Electric Power Co
(Bids
/; (Charles Plohn & Co.) $375,000
9
PST)
a.m.
Common
300,000
shares
(Bids
March 4 (Wednesday)
Eastern Utilities Associates
Common
(Offering to stockholders—bids 11
Glass-Tite
"fc
EST)
96,765 shares
Industries, Inc..
;
f
'•
March 5
f-pr :/
Columbia
..Common
(Stanley Heller & Co;) $330,000 /
•;
20
a.m.
*:
./
;
•.">
(Thursday)
:
Gulf
Power
r>
(Ira Haupt
i
& Co.
and Savard
Hart)
Israel
(The
Research
Specialties
.
'■*Pioneer
;
t^
Co
Podesta
'
*
(Cruttenden.
W-.UK.-.3.
$300,000,000
Inc
and
Podesta &
Louisiana
Power
Bernet
(Bids
American
(Alex.
10
&
Sons,
$2,475,000
(Tuesday)
invited)
15
.....Preferred
$7,500,000
(Wednesday)
be
Bonds
invited)
April 23
Edison
$14,000,000
(Thursday)
Co
(Bids
to
Preferred
be
invited)
April 30
Clayton Securities Corp.)
Alabama
Power
$2,000,000
and
R.
230,000
S.
Dickson
&
Inc.)
Co.,
Co
.Bonds
to
be
invited)
•
Itek
'
Blyth & Co., Inc.
May 26
(Bids
150.000
i
Common
Common
stocKiiolders—underwritten
to
Jackson & Curtis)
by
Paine,
be
to
received)
$15,000,000
White
'
Stores, Inc..
(Merrill
■
Lynch.
Pierce
March
Colorado
•
j
'
Read
Union
&
Co.,
Inc.
Securities
\'L Colorado Interstate Gas
Union
-,
,
Smith,
$5,000,000
&
and
Co.)
Eastman
$33,000,000
&
Co.)
Barney
& Co.
^Investors
-
Research
"
Mississippi Power
(Bids
Co.)
Debentures
$40,000,000
Common
r
to1
$25,000,000
(Thursday)
Bonds
Invited)
$5,000,000
(Thursday)
Georgia Power Co..
(Bids to
Bonds
be
Invited) $18,000,000
.Preferred
Boston
Corp.)
$17,000,000
$5,891,280
Montana
Power
Co
(Bids to be Invited)
..Common
Bonds
$20,000,000
Pennsylvania Power Co
(Bids
to be Invited)
of
by amendment. Proceeds
—
For
outstanding indebtedness; for expansion
equip¬
an expected increase in inventories
Office—4890 South Alameda St., Ver¬
& Co., Inc.,
Eastern Utilities Associates
30
filed
San Fran¬
(3/4)
96,765 shares of
common stock (par $10)
for subscription by common stockholders
of
record
March
4, 1959 on the basis of one new
share for each 12 shares held (with an
oversubscription
be
offered
privilege); rights to expire
on
March 19.
Proceeds—To
reduce bank loans. Underwriter — To be determined
by
competitive bidding. Probable bidders: Kidder, Peabody
& Co.; Stone & Webster Securities
Corp. Bids—To be
received up to 11 a.m.
(EST) on March 4 at 49 Federal
St., Boston, Mass.
it Electronic Assistance Corp.
(letter of notification) 100,000 shares of common
stock (par 10 cents) of which 5,000 have been reserved
for sale to two directors, at $2.70
per share. The offer¬
ing of such 5,000 shares expires 24 hours after first be¬
Feb. 18
If not accepted such shares will then be
offered to the public. ' Price—$3 per share.
Proceeds—
For research and
development of ultrasonic
equipment
working capital. Office—20 Bridge Ave., Red
Underwriters—Amos Treat & Co., Inc., New
York, and Bruno-Lenchner, Inc., Pittsburgh, Pa.
Continued on page 40
and
for
Bank, N. J.
Bonds
$8,000,000
receivables".
ing extended.
Postponed Financing
Debentures
The First
&
be
and
to
(Tuesday)
$30,000,000 to
...
Price—To be supplied
Jan.
Co
to
$12,000,000
Fund, Inc...
(Bache
invited)
September 10
March 13 (Friday)
^
be
(Bids to be received) $20,000,000
-
Preferred
—
and
to
Virginia Electric & Power Co
.(First- Boston Corp.; Kidder,
Peabody & Co.: Merrill Lvnch.
Pierce, Fenner & Smith, Inc.; and White, Weld & Co.) $6,000,000
(Smith,
Invited) $25,000,000
2
Dillon,
Co...
Securities
be
June 25
Bonds
/ KLM Royal Dutch Airlines
v
Inc.)
(Dillon, Read & Co., Inc. and Eastman Dillon.
Equitable Gas Co
.'J
&
Investment
Drug Fair-Community Drug Co., Inc. (3/2-6)
Feb. 10 filed $750,000 of 5^% subordinated
sinking fund
debentures due March 1, 1974 (with warrants attached
to purchase 37,500 shares of $1 par value common stock
A).
Price—At par (in units of $500 each). Proceeds—
To finance current
operations, to open new drug stores
and to retire $60,000 of outstanding 8JA% debentures.
Office—Arlington, Va. Underwriter—Auchincloss, Park¬
er & Redpath, Washington, D. C.
Bonds
Public Service Electric & Gas Co
(Wednesday)
'
-
(Bids to
(Bids
Interstate Gas Co..
(Dillon.
-■
Fenner
11
Southern Electric Generating Co
June
.....Debentures
—
best efforts basis.
★ Dividend Shares, Inc., New York
(by amendment) 8,000,000 additional shares
of capital stock.
Price—At market. Proceeds—For in¬
non, Calif. Underwriter—Blyth
cisco and New York.
(Thursday)
Webber,
Bonds
Underwriter
on a
ment; and to finance
Bonds
May 28
164,842 shares
:
Northern Indiana Public Service Co
■rUMf,'
(Bids 11:30 a.m. EST)
$25,000,000
Co., Denver, Colo.,
program and purchase of additional facilities and
(Tuesday)
shares
Corporation
l( of feting
L'lri
working capital.
repayment
320,000,000
West Penn Power Co
shares
Ducommun Metals & Supply Co
for
Service
i Ducommum Metals & Supply Co. (3/16)
16 filed 150,000 shares of common stock (par $2).
"
^
(par 50
Feb.
(Thursday)
(Tuesday)
Fidelity Life Insurance Co..:.—Common
Brown
stock
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for
organization or acquisi¬
tion of consumer finance
Feb. 24 filed
Equip. Tr. Ctfs.
invited)
be
to
(Bids
March
$7,000,000
&
$2,500,000
•
Price—At par ($1 per share). Proceeds—To de¬
oil properties.
Office^—139 North Virginia St.,
Nev. Underwriter—None.
business, and balance £o be
Light Co
to
April
IiDebentures
Schneider,
Reno,
used
Wisconsin Power & Light Co
Debentures
and
be
&
(Bids
(Monday)
Co.
to
vr-
vestment.
Brockton
9
shares
(Tuesday)
••
$300,000 '"
Window Corp..
•Miami
■
Co.)
7
April 14
Hickman) $300,ooo
March
v|ir...
&
Co.
&
(Bids
;_^3.:_Common
Lomasney
Hydrotex Industries,
(Cruttenden,
r1
-rr
(Myron- A.
Israel)
for
invited)
Pittsburgh & Lake Erie RR
(Friday)
.Bonds
Corp.
1,799,057
(Thursday)
be
April
.Common
State of)
(Development
■
EST)
$1,500,000
(Offering to stockholders—underwritten by. Kidder, Peabody
> & Co. and Prescott, Wright, Snider Co.)
100,000 shares
March 6
i.
&
Western Casualty & Surety Co......
jo
■UZl
Common
a.m.
Bonds
to
stock.
Diversified Inc., Amarillo, Texas
6 filed 300,000 shares of common
Co
(Bids
Underwriter—None, u**
★ Diamond Oil Corp., Reno, Nevi
Feb. 12 (letter of notification) 100,000 shares of
capital
Jan.
System, Inc...
11
oorium, Pa.
$16,000,000
(Wednesday)
April 2
'
,5
Standard Security Life Insurance Co. of N. Y-Com.
"\i
April 1
Gas
Bonds
EST)
a.m.
(Offering to stockholders—bids
"
'
-
11
350,000 shares of common stock. Price—11
Proceeds—For new equipment, repayment of
loan, acquisition of properties under* option, and other
corporate purposes. Office—Toronto, Canada, and Emshare.
velop
Monongahela Power Co
| 1
June 5 filed
per
....Bonds
11
1740 Broadway, Denver, Colo. Underwriter—L. A.
Huey,
Denver, Colo.
Derson Mines Ltd.
$30,000,000
Co.__
(Bids
PST)
a.m.
30
Underwriter—Ross, Lyon & Co. Inc., New York.
Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10
cents). Price—$2 per share. Pro¬
ceeds
For repayment of
loan; purchase of plant and
office equipment; raw materials and
supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
$2,500,000
Bonds
be
purchase
warrants, each unit consisting of one common share and
one
warrant, to be offered for subscription by holders
of the common stock of Cormac
Photocopy Corp. at the
rate of one such unit for
every six shares of Cormac
Photography common held. Price—$2 per unit. Pro¬
ceeds—To finance the company's development and mar¬
keting program. Office—80 Fifth Avenue, New York,
—
$25,000,000
(Wednesday)
Sachs
to
March
Power
Common
.h'ifjTV Junior Publications, Inc.
-vvti'-"
&
Jan. 22 filed 108,667 units of 108,667 shares of common
stock (par one cent) and
108,667 common stock
N. Y.
(Wednesday)
■
Light Co
8
shares
127,500
Co
.
(Tuesday)
(Offering to stockholders—bids
Common
Co.)
Debentures
(Bids
Ohio
*\-
&
...Common
,
&
$300,000
(A. S.) Co
t
'
Common
;
...Debentures & Common
be
(Goldman,
'
shares
203,250
Illuminating Co.________Bonds
to
March
Aloe
$299,600
Curtis)
Co.)
18
(Bache
.....Common
(Berry &
Mitchum, Jones &
...Common
&
Pont
March
(Monday)
Carraco Oil Co
&
Thorncliffe Park Ltd
(Bids
;
Jackson
March
shares
United States Pool Corp....
_______-__l_Common
jd':4-Ross, Lyon & Co., Inc.) $300,000.
'
'■'/?March 2
and
Manufacturing Co
by White,"Weld & Co.)
?' *
•
Curtis
& Signal Co
(Francis
Common
to stockholders—underwritten
&
Templeton) $5,000,000
(Sano
:
Debens. & Com.
iS. D. Fuller & Co. and Howard Weil, Labouisse, Friedrichs
ijj
Jackson
.
-
Blossman Hydratane Gas, Inc
u>
V
Standard Sign
_^Debentures
:
Webber,
i:
,
Simplex Wire & Cable Co
.
February 27
'
Bargain Centers, Inc
\ (Paine,
l.
.Common
Co.;-Tnc:)-^GdOiOOO
&
Cormac Chemical Corp.
j
(Monday)
General Telephone Co. of the Southwest..Preferred
486,325-shares
'II
_
Bliumer
D.
EST}
a.m.
-lHa rman-Ke r don, I no)
Wr«r:-S'
March 16
Gas Co
(Offering to stockholders—bids
,
40
The Commercial and Financial Chronicle
(1008)
•
Ja^Mletter
Nov. 17
of"notification)
250,000 shares of series 3
stock (no par) to be offered for subscription
i»v stockholders on the basis of one share of series 3
<3tock for each three shares of series 1 and/ or series 2
common stock held; unsubscribed shares to other stockfioiders.
Rights expire 30 days from offering date.
IPrice—$1 per share.
Proceeds—For working capital.
•Office—333 S. Farish Street, Jackson, Miss. Underwriter
common
General Aniline & Film Corp.,
New York
filed 426,988 snares of common A stock (m
par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos
ton
Corp.
(jointly); Kuhn, Loeb
&
Co.;
Lehman
Brothers, and Glore, Forgan 8c Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) or
May 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25, D. C., but bidding has been postponed
/an. 14, 1957
—None.
Equitable Gas Co., Pittsburgh, Pa. (3/11)
,
.Feb. 13 filed 60.000 shares of convertible preferred istock
<5
Price—To be supplied by amendment.
<$100 par).
Pro¬
of bank loans. Underwriter — First
Boston Corp.; Kidder, Peabody & Co.: Merrill Lynch,
J'ierce. Fenner & Smith. Inc.; and White, Weld & Co.
ceeds— Repavrnent
& Steel Corp.
•
Jan. 9 filed 238.025 shares of common stock being of¬
fered for subscription by common stockholders at the
rate of one new share for each four shares held as of
Feb. 11 (with an oversubscription privilege); rights to
Erie Forge
expire March 2.
Price—$6.12% per share. Proceeds—
«Xo complete modernization and expansion program and
f or working capital. Underwriters?—Lee Higginson Corp.,
and P. W. Brooks & Co., Inc., both of New York City.
£ Evans Grocery Co., Gallipolis, Ohio
9 (letter of notification) 30,027 shares of common
*tnck (par S3.33V-;). .Price—$8 per share. Proceeds—To
selling stockholders. Underwriter—Westheimer & Co.,
Cincinnati, Ohio.
Feb.
-fc Evans Products Co.
13 filed 117,000 shares of common capital stock,
representing the number of such shares that may bo
issued on the exercise of stock options that have been
Feb.
granted or may be granted in the future
company's Employees' Stock Option Plan.
under the
•Jt Fairmount Finance Corp.
(letter of notification) 10,000 shares of 6% cu¬
mulative preferred stock. Price—At par ($10 per share),
proceeds—For making loans. Office—5715 Sheriff Road,
tC E., Fairmount Heights, Md. Underwriter—None,
Feb. 12
Dec.
$918,000 of 6% convertible subordinated
1968, The company proposes to offer
filed
29
due
$210,000 of the debentures to purchase the capital slock
Inc., a New York company;
$442,000 of the debentures in exchange for Consumers
debentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
of Federated. Office—1 South Main Street, Port Chester,
-of Consumers Time Credit,
Underwriter—None.
N. Y.
Federated
Finance
Fidelity Capital Fund, Inc.
18 filed
(by amendment)
Feb.
an
additional
500.000
shares of
capital stock (par $1). Price—At market.
ceeds—For investment. Office—Boston, Mass.
Pro¬
Industry, Inc.
Dec. 16 filed 200,000 shares of class A common stock.
/Price—At par ($1.50 per share). Proceeds—For working
Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot Bldg., Detroit,
capital.
writer
—
'Mich.
First
Acceptance Corp.
(letter of notification) 500 shares of 5% pre¬
ferred stock. Price—At par ($100 per share). Proceeds
Feb.
13
—For
working capital. Office—820 Northwestern Na¬
tional Bank Building, Minneapolis, Minn.
Underwriter
—None,
Telephone
(3/16-20)
19 filed 250,000
Feb.
of The
Co.
shares
of
Southwest
Virginia Corp.
Feb. 12 filed 1,154,730 shares of class B common stock
<par $1), to be offered in exchange for 38,491 shares of
stock of
Old Dominion Bank at the rate of 30
chares of First Virginia class B stock for each
of Old Dominion common stock.
Florida Builders,
one
cumulative
preferred
Price—At par
($20 per share). Proceeds — To
repay bank loans.
Office—2470 West Princeton St., San
Angelo, Tex. Underwriter—Paine, Webber, Jackson &
Curtis, Boston and New York; and IVlitchum, Jones and
Templeton, Los Angeles, Calif.
stock.
Glass-Tite
(3/4)
of common stock (par 10
cents). Price—$3 per share. Proceeds—To retire $35,000
of 6% preferred stock: for research, development and im¬
provement of new and present products; for purchase
of a high temperature atmosphere furnace and additional
test equipment and the balance will be added to work¬
ing capital and be used for other corporate purposes.
Office—88 Spectacle St., Cranston, R. I.
UnderwriterStanley Heller & Co., New York.
Jan.
30
Industries, Inc.
filed
shares
110,000
Insurance Co.
Feb. 4 (letter of notification) an estimated 2,000 shares
of common stock (par $4) to be sold in connection with
stock dividend (2%) payable Feb. 26, 1959. Price—At
the market.
Proceeds—To go to holders of fractional
shares.
Office —1021 14th Street, N. W., Washington,
D.
13 filed
2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common
(par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held
(1,334,570 shares are' now outstanding); (2) to holders of
common
stock (par $1.50)
of Government Employees
Life Insurance Co., on the basis of 1V2 warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of V2 warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
into
common
stock prior
to the record
date,
total of 164,733 common shares would be outstanding.
Price—$3
share. Proceeds—For capital and surplus.
Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
per
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing'—Indefinitely postponed pending Supreme Court de¬
cision
on
variable annuities.
Price—At
par.
Proceeds—For working capital.
(
Address—c/o Mrs. M. B. Jackson, Sec. and Treas., 11003
Childs St., Silver Spring, Md.
Underwriter—None.
Growth Fund of
Feb.
4
cents).
America, Inc.
250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment.
filed
Dec. 1 filed $4,000,000 of 6% 15-year
sinking fund sub¬
ordinated debentures and 40,000 shares of common
stock,
io be offered in units of $100 principal amount of deben¬
tures and one share of common stock. Price
$110 per
•anit. Proceeds—For purchase and development of sub¬
Office —1825
division land, including
Feb.
—
shopping site; for new equip¬
ment
and
project site facilities; for financing
ex¬
pansion program; and for liquidation of bank loans and
other corporate purposes.
Office—700 43rd St., South.
'St. Petersburg, Fla. Underwriter—None.
(letter of notification) 27,500 shares of common
stock. Price—At par ($1 per share). Proceeds—To ac¬
quire assets of E. E. Fordham Mfg. Co. and Tip Top
Coffee Co.
Ariz.
Office^*— 2118
East
Jefferson
St., Phoenix,
Underwriter—None.
Underwriter
—
Raffensperger, Hughes
&
Co.,
Jnc., Indianapolis, Ind.
fered
for
subscription
by
stockholders; unsold portion
be offered publicly Price—$12.50 per share.
—To repay notes.
Office—515 Candler
Proceeds
Bldg., Atlanta.
«Gu. Underwriter—None.
—
^Heritage Fund, Inc., New York
18
filed
(by amendment) an
shares
of
stock
common
Avenue,
Proceeds—To
loans, and
for
eliminate
common
$100,000
working capital.
of
Heartland
Oct.
23
offered
Development Corp.
of notification)
22,820
(letter
convertible
for
of
one
10
preference
subscription
by
outstanding
Office—520
Street, Westbury, N .Y. Underwriter—Milton
& Co., Inc., New Yrork.
Main
D. Blauner
shares
of
non¬
stock
(par $12) to be
stockholders on the basis
shares
1958
cise
share
of
convertible
preference
stock
market.
York, N.
Y.//J'
/
of
,
.
common
stock (par 25 cents).
ing
Price—At prices generally prevail¬
the American Stock Exchange.
Proceeds — To
on
selling
stockholders.
Underwriter—None.
Hinsdale
Office—250
Raceway, Inc.,
Park
Avenue,
Hinsdale,
N./%
* %
N. H.
Dec. 29 filed capital trust certificates
evidencing 1,000,000 shares of capital stock, and
2,000 debenture notes.
Price—The common stock at par ($1 per share) and the
notes in units of $500 each. Proceeds—For
construction
a
track, including land, grandstand, mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board arid
clubhouse.
Underwriter—None.
Home-Stake Production Co., Tulsa, Okla.
Nov. 5 filed 116,667 shares of common stock
(par $5).
Price—$6 per share. Proceeds—For working capital and
general
corporate
Office — 2202
Underwriter—None.
for
each
of common stock held on or about Nov.
1,
Stockholders will have 45 days in which to exer¬
the rights.
Price —At par.
Proceeds — To
debts, acquisition of investments, and for
general
repay
pur¬
Philtower
purposes.
Bldg., Tulsa, Okla.
★ Home Telephone & Telegraph Co. of Virginia
Feb. 19 filed 92,160 shares of
capital stock to be offered
for subscription by stockholders of record Feb.
17, 1959,
on the basis of one new share for each four
shares held;
rights to expire on April 3.
Price—At par
($5 per
share). Proceeds—To repay short-term bank loans.5 Un¬
derwriter—None.
Industrial Minerals Corp.,
Washington, D. C.
July 24 filed 600,000 shares of common stock (par one
:ent). Price—$1 per share. Proceeds—To develop and
jperate graphite and mica properties in Alabama. Un-
lerwriters—Dearborn
both of
&
Co.
Washington, D. C.,
ment effective Nov.
20
and
Carr-Rigdom & Co.,
best efforts basis. State¬
on a
18.
Co.
filed '174,000
the
shares of capital stock, represent¬
numbers
of shares initially issuable upon /the
exercise of stock options under the company's Executive
Stock Option Plan.
International
Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, twounit: series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
Dec. 29 filed
year,
3%
—100%
per
of principal amount.
capital.
Proceeds
—
For
working
Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C.
Investment Corp. of Florida
(letter of notification) 55,555
stock
(par two cents).
Price—$4.50
0
>
Oct. 9
shares of
per
common
share.
Proceeds
—For capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise
Boulevard, Ft.
Lauderdale, Fla. Underwriter—None.
ic Investors
Feb.
18
Planning Corp. of America
(by amendment) the following additional
$75,000,000 of Systematic Investment Plans
filed
securities:
and Systematic Investment Plans with
insurance, and
$2,000,000 of Single Payment Investment Plans. Price—
At
market.
Proceeds
investment.
For
—
Office
—
New
York, N..Y.
Investors Research Fund,
Jan. 9 filed 490,940 shares of
share.
per
Proceeds—For
(3/13)
Inc.
common
investment.
stock. Price—$12
Office—922 La-
St., Santa Barbara, Calif. Investment Advisor-—In¬
Co., Santa Barbara, Calif. Underwriter
—Bache & Co., New York.
guna
vestors Research
+ Investors
Feb.
filed
18
shares
of
Variable
(by
Israel
8
Fund,
Inc.
additional
5,000,000
(par $1).
Price—At market.
investment. Office—Minneapolis, Minn.
Proceeds—For
Jan.
Payment
amendment)
common
an
stock
(The State of)
(3/6)
filed
$300,000,000 of second development bonds,
part to consist of 15-year 4% dollar coupon bonds (to
be issued in five series
maturing serially from March 1,
1974 to March 1,
1978) and 10-year dollar savings bonds
(each due 10 years from first day of the month in which
Price—100% of
principal amount. Proceeds—
improvements, etc. Underwriter—Development Corp.
Israel, 215 Fourth Ave., New York City.
Statement
effective Feb.
(2 26-27)
stock, of which
the company proposes to offer 95,000 shares and
105,000
shares will be sold for the account of Bernard
Kardon,
Vice-President and General Manager.
Price — $3 per
share.
100,000
Price—At
Highway Trailer Industries, Inc.
24 filed 473,000 outstanding shares
for
shares of
additional
$1).
Office—New
Nov.
Office—101212
derwriter—None.
Harman-Kardon, Inc.
(par
Proceeds—For investment.
Investment
Proceeds—For mining expenses.
E. Windsor Road, Glendale 5, Calif. Un¬
Jan. 23 filed 200,000
Offering—Expected
Feb.
issued).
voting
Foundation Investment Corp., Atlanta, Ga.
Jan. 13 filed 231,988 shares of common stock to be of¬
.
Broadway, New York 4, N. Y.
For
selling stock¬
holders.
11
next week.
—Two cents per share.
bank
Foster-Forbes Glass Co.,
Marion, ind.
Feb. 25 filed 30,000 shares of common stock. Price—To
t>e supplied by amendment. Proceeds—To
Advisor
★ Hamlin Exploration & Mining Co.
16 (letter of notification) 5,000,000 shares of
fully
paid, non-assessable common stock (par one cent). Price
•
•jV Fordham IPlroducts Corp., Phoenix, Ariz.
Feb. 16
Connecticut
Washington, D. C.
Advisory
Service,
Washington, D. C,. Underwriter—Investment Manage¬
ment Associates, Inc.,
Washington, D. C.
Investment
Under-
Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
(par $1).
Price—$5 per share.
Proceeds—For
payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
•
it Greenbrier Acres, Inc., Silver Spring, Md.
11
(letter of notification) 750 shares of preferred
stock (par $100) and 750 shares of common stock
(par
$1).
Y.
;i"
Oct. 22
ing
stock
a
Box-348, Albany, N.
stock
Feb.
Variable Annuity Life
Insurance Co.
converted
O.
.-
★ Inland Steel
Underwriter—None.
C.
Government Employees
share
Inc.
writer—None.
Thursday, February 26. 1959
.
.
of
Feb.
First
common
± General
Nov.
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.
For
Tenn.
(
to be offered
Co.
Ncv. 17 (letter of notification) $300,000 of 10-year 6%
senior subordinated debentures. Price—At par (in de¬
nominations of $1,000 each). Proceeds — For working
Finance
^General Merchandising Corp., Memphis, Tenn.
18 filed 250,000 shares of class "A" common stock
(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment
Co., Memphis,
Address—P.
poses.
Feb.
^ Government Employees
Federated Corp. of Delaware
debentures
General
Alloys Co.
(letter of notification) 45,250 shares of common
itock (par $1) of which 16,900 shares are to be offered
to employees. Price—$1.1805 per share.
Proceeds—To
purchase and install machinery and equipment. Office—
367-405
West First St.,
Boston, Mass. Underwriter—
William S. Prescott & Co., Boston, Mass.
No general
public offer planned.
39
Continued from page
.
•
Itek
Feb. 12 filed
of
5.
Corp.
which
a
(3/10)
178,842 shares of
total
of
164,842
subscription by stockholders
for
each
four
shares
held
common
stock
shares will
at the rate of
be
(par $1),
offered
one
new
for
share
March 9, 1959;
to expire on March 24.
The remaining 14,000
shares will be offered to eligible employees. Price—To
be supplied by amendment.
Proceeds—To be used for
acquisition of Photostat Corp.: to purchase additional
on
or
about
rights
laboratory,
production
construction of
a
new
and
other
building
on
equipment;
a
towards
plant site in Lex¬
ington, Mass.; and the balance for general corporate pur¬
poses.
Underwriter—Paine, Webber, Jackson & Curtis,
Boston and New Y'ork.
Itemco
Nov
28
r
^
Inc.
(letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—$1
per
share.
Proceeds—To
*
Volume
v
189
Number
5824
.
.
The Commercial and
.
ial Chronicle
acquire machinery and equipment and additional space
for test laboratories;
and for working capital. Office—
4 Manhasset Ave., Port
Washington, L. I., N. Y. Under¬
writer
B. Fennekohl & Co., 205 East 85th St., New
York, N. Y.
A J. E. Plastics Manufacturing Corp.
Midamco, Inc.,
City, Okla.
(1009)
wholly-owned
a
subsidiary,
Oklahoma
it Ohio Power Co.
Feb.
24
Millsap Oil & Gas Co.
—
Feb.
Office—Siloam Springs, Ark.
16 filed
120,000 shares of common stock, of which
30,000 shares are issuable upon exercise of warrants, at
$2.50 per share, from Nov. 1, 1959 to Nov. 1, 1961. The
Dec.
24
and
8,000
remaining
Price—For
shares
90,000
shares
behalf
on
of the
will
sold
be
selling stockholders. Price
—
At
publicly; 50,000
and 40,000
company
current
shares by
market when
offering of 90,000 shares is made. Office—400 Nepperhan
Ave., Yonkers, New York. Underwriter—None.
it Keystone Custodian Funds, Inc.
Feb. 16 filed (by amendment) an additional
ticipation, series K-2. Price—At market. Proceeds—For
investment. Office—Boston, Mass.
-
-
Dec. 30 filed 225,000 shares of common stock (par $5) to
be offered in exchange for common stock of the Ameri¬
can
Envelope Co. of West Carrollton, Ohio,
the basis
of three-quarters of a share of Kimberly stock for each
share of American. The offer will expire on Feb. 27,
1959.
The exchange is contingent on acceptance by all
on
of the stockholders. Statement effective Jan. 23.
it KLM Royal Dutch Airlines
—
Underwriters—Smith, Barney & Co. and
share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.
per
J Lefcourt Realty Corp.
3,492,000 shares of
shares
issued
stock, $131.25
common
share.
per
stock, of which
common
in
Corp. some 3,784.9 acres of land on or
1959; and the remaining 120,000 shares are
account of a selling stockholder. Un¬
derwriter—None.
Life Insurance Securities Corp.
March 28, 1958, filed 1,000,000 shares of capital stock
(par
$1).'
Price—$5
control
per
of
share.
Proceeds—To acquire stock
aggressive and expanding life and
"young,
other insurance companies and related companies and
then to operate such companies as subsidiaries." Under¬
writer—First Maine Corp., Portland, Me.
! Ling Electronics,
Inc.
Jan. 27 filed 335,000 shares of common stock, to be of¬
fered in exchange for the outstanding capital stock of
Altec
Companies, Inc.,
stock for
one
to acceptance
on
the basis of
share of Altec stock.
one
share of Ling
The offer is subject
by holders of at least 80% of the outstand¬
ing Altec stock.
-
Feb.
Telephone Co.
(letter of notification)
11
1,562 shares of common
(no par) to be offered for subscription by stock¬
on a pro rata basis at the rate of one new share
for approximately each 75.1120 shares held at the close
of business on Feb. 2, 1959. Price—$32 per share. Pro¬
stock
holders
ceeds
Ninth
To
—
reimburse
St., Lorain, Ohio.
the
treasury. Office
Underwriter—None.
it Lucky Lager Brewing Co.
Feb. 3 (letter of notification) voting trust
—
203
W
the benefit of the voting trust. Office—2601 Newhall
St.,
San Francisco
19, Calif.
Underwriter—None. Voting
Trustees—Elmore
Meredith, Herbert Anscomb, Eugene
S. Selvage and Frederick W. Ackerman.
LuHoc Mining Corp.
Sept. 29 filed 350,000 shares of common stock. Price—$]
per share. Proceeds — For the acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar purDoses.
Offices—Wilmington,
Underwriter—None.
Del.,
and
Emporium,
Pa
'
Magic Mountain, Inc., Golden, Colo.
Jan. 27 filed 2,250,000 shares of
$1.50
per
capital.
Colo., on
common stock, Price—
Proceeds—For construction and working
Underwriter — Allen Investment Co., Boulder,
share.
a
best-efforts basis.
(3/31)
$16,000,000 of first mortgage bonds due
Proceeds—For construction program. Un¬
derwriter
To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Harriman Ripley & Co.,
Inc.; Equit¬
Feb.
24
filed
it Maryland Credit Finance Corp.
9
(letter of notification) 500 shares of common
stock (par $15) to be offered to the Philadelphia Life
Insurance Co. to satisfy warrants issued September, 1955
exercisable
share.
any
time
to
Sept.
30, 1961. Price—$25 per
capital. Office—National
Underwriter—None.
Proceeds—For working
Bank Bldg.,
Easton, Md.
^ Miami Window Corp., Hialeah, Fla. (3/9-13)
25 filed $3,500,000 of 6V2 % debentures due 1974
Feb.
(with
stock
shares
of
purchase
warrants
attached), and 150,000
preferred stock (par $8).
debentures, at par; and of preferred stock, $10
per share.
Proceeds—To pay accounts payable and for|
general corporate purposes. Underwriters—Cruttenden,
Podesta & Co.,
Chicago, 111.; and Clayton Securities
Corp., Boston, Mass.
70-cent convertible
Price—Of
Mid-America
Minerals, Inc.
Jan. 19 filed 100 units of participations in
Fund
Oil and Gas
(the "1959 Fund"). Price—$15,000 per unit. Pro¬
For working capital, etc.
Office — 500 MidAmerica Bank Bldg., Oklahoma
City, Okla. Underwriter-
ceeds
—
March 30.
able
Securities
Corp.;
W.
C.
Langley
&
First Boston Corp. (jointly); Merrill Lynch,
ner & Smith:
Kidder, Peabody & Co. and
&
Co.
11
a.m.
Co.
Welders, Inc.
60,600 shares of common stock, $43,333:31*
of 33/4% deb2ntures
maturing on or before May 6, 1965,
$692,000 of (?% debentures maturing on or before Dee,
31, 1974 and $123,000 of 7% debentures due on or befor®
May 6, 1965. The company proposes to make a publia
offering of 25,000 shares of common stock at $10 per
share.
The remaining shares and the debentures ar®
subject to an exchange offer between this corporation
O. K. Rubber, Inc., and O. K.
Ko-op Rubber Weldingf,
System, on an alternative basis. Proceeds—Of the publia
offering, wiill be used for additional working capita®
Dec.
The
and
Pierce, FenWhite, Weld
(jointly). Bids—Expected to be received up to
(EST) on March 31 at West Penn Power Co.'s
July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds
"Together with other funds, to be used to
repay $15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬
551
will
of Montana.
be
-Dec.
common
only
stock
Co., Inc.
Pacific Power & Light Co.
company
record
(no par).
to
proposes
on
stockholders
one
on
new
o2
share for
March 25. Pro¬
—
To bo
bidders:
Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock.
~
mum
ment.
Price—Mini¬
purchase of shares is $2,500. Proceeds—For invest¬
Office—404 North Roxbury Drive, Beverly
Hillj^
Calif.
Underwriter—Paramount
ment. Co.
Mutual Fund Manage¬
,
Packman Plan
Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1),
Price—At market.
Proceeds—For investment. Under¬
writer—Investors Investments Corp., Pasadena, Calif.
-
Pennsylvania Powar Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 19891
Office—New York, N. Y.
Proceeds—To redeem
Theatres, Inc.
a
like
amount of
5%
first mort¬
bonds due 1987. Underwriter—To be determined!
by competitive bidding. Probable bidders: Halsey, Stuar*
& Co. Inc.; Kidder, Peabody & Co.; White Weld &
Co.;*
Equitable Securities Corp., and Shields & Co. (jointly):*
Lehman Brothers, Eastman Dillon, Union Securities
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmanu
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith*
and Dean Witter & Co. (jointly). Bids —
Tentatively
had been expected to be received up to 11 a.m. (EDT>
on Aug.
27 but company on Aug. 22 decided to defer
sale pending improvement in market conditions.
Dec. 30 filed $20,000,000 5Vz% sinking fund subordinated
debentures due March 1, 1974, stock purchase warrants
gage
for 454,545 shares of common stock (par $1) and 485,550
warrants to purchase debentures and stock purchase
warrants. The debentures and stock purchase warrants
being offered in exchange for National Telefilm As¬
sociates, Inc. common stock and outstanding stock pur¬
are
principal amount of de¬
purchase warrant for one-quarter share of
National Theatres stock in exchange for each share of
National Telefilm. For each outstanding warrant of Na¬
a
exchange
stock, which the
common
March 3.
Paramount Mutual
it Nation Wide Securities Co., Inc.
18 filed
(by amendment) an additional 300,000
capital stock (par $1). Price — At market.
an
offer to
March 3,
Brothers, Eastman Dillon, Union Securities &.
Co., Bear, Stearns & Co. and Dean Witter & Co. (joint¬
ly); Ladenburg, Thalmann & Co.; Kidder, Peabody &
Co. Bids—Expected to be received up to 8 a.m.
(PST>
to bona fide residents
Telefilm, the holder will receive
(3/3)
common
Lehman
Feb.
tional
Underwriter—
ceeds—For construction program. Underwriters
determined by competitive bidding.
Probable
shares of
bentures and
207,852 shares of
1959 at the rate of
each 20 shares held; rights to expire
it Morrison-Knudsen Co., Inc.
' -•
Feb. 6 (letter of notification) 8,571 shares of common
stock (par $10) to be offered to eligible employees. Price
—At the market, less $2 between Feb. 13, 1959 and Dec.
10, 1959. Proceeds—For the benefit of employees. Office
—319 Broadway, Boise, Idaho. Underwriter—None.
Proceeds—For investment.
debt. Office—
Colo.
filed
5
Jan. 27 filed
Price—To be related to the current market
Offering—Indefinitely postponed.
Littleton,
100,000 shares of capital stock. Price—At*
(about $10 per share). Proceeds—For invest¬
ment.
Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York.
price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program through
1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
&
Ave.,
market
Co.
offered
service part of the company's
Grande
Oppenheimer Fund, Inc.
bidding. Prob¬
Halsey, Stuart & Co. Inc.; Lehman Bros.;
Lynch, Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld &
Co.;
Eastman Dillon. Union Securities & Co.; Kidder Peabody & Co., Smith, /Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room
2033, Two Rector St.,
New York, N. Y., but company on Aug. 22 again decided
to defer sale pending improvement in market conditions.
Merrill
stock
Rio
None.
writer—To be determined by competitive
Power
15 filed
and/or to
—
Montana
commoa
O. K. Rubber
—
Piedmont Natural Gas Co.,
Inc. (2/27)
shares of common stock (par $1) to
be offered for subscription by common stockholders at
Feb. 4 filed 56,301
war¬
rant for the
purchase of $11 of debentures and a warrant
share of National The¬
The offer expires March 16, 1959. DealerManagers—Cruttenden, Podesta & Co., Cantor, Fitzgerald
& Co., Inc., and Westheimer & Co.
for the purchase of one-quarter
the rate of
atres
Feb. 27, 1959 (with an oversubscription privilege); rights
to expire on or about March 16. Price—To be supplied
common.
writer—Waldron &
—
Pioneer
(EST)
on
interest.
(3/10)
March 10.
Associates, Inc.,
11
—
At
par
acquisitions, etc.
and accrued
Office—26?
den, Podesta & Co., Chicago, 111. and Schneider, Be met
& Hickman, Dallas, Texas.
Hotel Associates
$6,380,000 of Participations in Partnership
Interests, to be offered in units. Price—$10,000 per unit.
Proceeds
For working capital and to refinance bank
loans. Office—60 East 42nd St., New York, N. Y. Under¬
it Plaza
Feb.
16 filed
—
writer—None.
Prairie Fibreboard Ltd.
1
Aug. 18 filed 209,993 shares of common stock (par $1.50>
to be offered for sale to residents of Canada in the Prov¬
inces
of
Manitoba,
Dakota."
Price
struction
and Alberta and to
"only in the State of Norttw
Saskatchewan
residents of the United States
Oak Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share. Proceeds — Foi
working capital.
Office—11 Flamingo Plaza, Hialeah,
—
Proceeds—For
Meadows Bldg., Dallas 6, Texas. Underwriters—Crutten¬
To be determined by competitive
Fla.
Underwriter
Henry &
mingo Plaza, Hialeah, Fla.
Hydrotex Industries, Inc. (3/6)
(letter of notification) $300,000 of 6% subordi¬
sinking fund convertible debentures (fully regis¬
tered), due March 1, 1969. Price
ex¬
Lynch, Pierce, Fenner & Smith (jointly); Harriman
Ripley & Co., Inc. Bids—Expected to be received up to
a.m.
5
nated
common
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Equitable Securities Corp.; Lehman Brothers and Bear,
Stearhs & Co. (jointly); Eastman Dillon, Union Secu¬
rities & Co.; The First Boston Corp.; White, Weld &
Co.; Dean Witter & Co.; Blyth & Co., Inc. and Merrill
11:30
For construction program.
Pilgrim Helicopter Services, Inc.
9 (letter of notification) 12,000 shares of common*
(par $3). Price — $5 per share. Proceeds ■— For
working capital. Office—Investment Bldg., Washington
5, D. C. Underwriter-L-Sade & Co., Washington 5, D. C.
Feb. 10 filed $25,000,000 of first mortgage bonds, series
J, due Jan. 15, 1989. Proceeds — To be used for gross
additions to utility properties of the company including
prepayment of bank loans incurred for construction pro¬
gram. Underwriter
—
Jan.
Feb.
(110 par). Price—$27 per share. Proceeds—For
pansion and working capital. Underwriter—None.
Public Service Co.
share for each 10 shares held about
stock
Co., San Francisco 4, Calif.
Northern Indiana
new
Underwriter—White, Weld & Co., New York.
it Nichols,
Inc., Exeter, Inc.
Feb. 6 (letter of notification) 10,925 shares of
one
by amendment. Proceeds
Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬
fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
stock
Feb.
on
(par 35 cents).
Price—$1 per share. Proceeds—
development of oil and gas properties.
Office—ol2*
International Trade Mart, New Orleans 12, La. ; Under~
writer—Assets Investment Co., Inc., New
Orleans, La.
>
tional Telefilm will receive $11
for 6,705 shares of capital stock (par $5) at the approxi¬
mate value of $250,000 aggregate amount. Proceeds—For
(EST)
For
chase warrants. Basis of Exchange—Shareholders of Na¬
certificates
a.m.
Oil9 Gas & Minerals, Inc.
Underwriter—None.
April 1, 1984.
National
Lorain
11
Nov. 16 (letter of notification) 116,000
shares of
surplus.
July 1 filed 100,000 shares of
to be sold for the
Bids—Expected
to be received up to
con¬
stock
to
The
before May 1,
Proceeds—For
added
Mound
Trail
Harriman Ripley & Co. Inc., and Stone & Webster Secu¬
rities Corp. (jointly); Blyth & Co., Inc.
share; for special
struction program, to purchase shares of Coastal Chem¬
ical
Corp.
(a subsidiary), and the balance will be
exchange for all of
the common stock of Desser & Garfield,
Inc., and D. G.
& R., Inc.; 750,000 shares will be used for the exercise
of an option by the company to purchase from Big
were
per
able bidders:
Corp., both of New York.
Laure Exploration Co., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of common stock. Price—$2
Jan. 29 filed
stock, $8.75
(Union
(jointly)-
Montana Power Co.
Proceeds—To finance the acquisition of additional
jet aircraft and to provide for future working capital
2,622,000
200,000 shares of common stock (par $5)
shares of special common stock (par $75).
office, 50 Broad St., New York, N. Y.
ment.
requirements.
& Smith Inc. (jointly); Eastman Dillon
Securities & Co. and Salomon Bros. & Hutzler
filed
common
Pierce„
Fenner
Mississippi Chemical Corp., Yazoo City, Miss.
(3/11)
Feb. 19 filed $17,000,000 of convertible subordinated de¬
bentures due 1979. Price
To be supplied by amend¬
The First Boston
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and Merrill Lynch,
Underwriter—None.
it Monongahela Power Co.
1,000,000
shares of Keystone Custodian Fund Certificates of Par¬
Kimberly-Clark Corp.
tion program.
602,786 shares of common stock. Price—$1
Proceeds — For additional working capital.
share.
per
(3/30)
$25,000,000
of first mortgage bonds du®
Proceeds—To repay bank loans and for construe-;
Underwriter—To be determined by com-.,
1989.
Dec. 23 filed
filed
41
purpose.
per share.
Proceeds — For con¬
Office—Saskatoon, Saskatchewan,.
Canada. Underwriter—Allied Securities Ltd., and United1
—
$3
Securities, Ltd., both of Saskatoon, Canada.
Fla¬
Continued
on
page
42
The Commercial and Financial Chronicle
41
Continued from page
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
...
Prudential Enterprises, Inc.
15 (letter
Jan
shares of common
of notification) 200,000
(par one cent) of which 170,000 shares are to be
sold by the company and 30,000 shares by a selling
stockholder.
Price — $1.50 per share. Proceeds — For
stock
general expansion and working capital. Office—1108
16th Street, N.W., Washington 6, D. C. UnderwriterJohn C. Kahn Co., Washington, D. C.
Raindor Gold Mines, Ltd.
of notification) 290,000 shares of common
stock (par $1).
Price—$1 per share. Proceeds—To prove
and for road and camp construction. Office—At
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.
Arnold, Wilson Circle, Kumson, N. J. Underwriter—
Sano & Co., New York, N, Y.
up ore
Rassco -Financial Corp.
Thursday, February 26, 1959
$500 and $1,000. Price—At par. Proceeds—For work
ing capital and general corporate purposes. Underwrite)
—Rassco Israel Corp.. New York, on a "best effort#
of
common
stocltNpai^
ing of
seven shares of class B
stock of which 497 units are to be offered for
two
and other corporate purposes.
Office—1720 East Morris,
Wichita, Kansas. Underwriter—None.
^'Research Investing Fund of America, Inc.
Feb. 24 filed 200,000 shares of capital stock. Price—At
Proceeds—For investment
Office—Englewood,
Underwriter—First Mutual Securities of America,
N. J.
Inc.'
Rich well
None.
(par $1).
behalf oi
the company and 824,000 shares for the account of cer¬
tain selling «tockholders. The company proposes to offei
the 1,174,716 shares for subscription by its shareholderi
at the rate of
one new
share for each three shares held
(with an oversubscription privilege). The subscriptior
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to working
capital. Underwriter — Pacific Securities Ltd., Van¬
couver, Canada.
•
Routh Bobbins
shares of common stock. Price—$3
per share.
Proceeds — For investments and working
capital. Business — Real estate investments.
Office —
Alexandria, Va. Undejrwriter—None.
a
St.
Paul Ammonia
Products, Inc.
shares of common stock (par 2%
cents), to be offered for subscription by common stock¬
29 filed 250,000
holders at the rate of
one new
'
200,000 shares of common stock (par $2).
Proceeds —-To increase capital
surplus. Office—221 West 57th St, New York, N. Y.
Underwriters—Ira Haupt & Co. and Savard & Hart, both
of New York,
9 filed
and
share for each four shares
held. Price—$2.50 per share. Proceeds—For additional
working capital. Office—South St. Paul, Minn. Under¬
Selected Risks
Insurance Co.
(letter of notification) 8,500 shares of common
capital stock "(par $10) being offered to stockholders of
record Feb. 16, 1959 on the basis of one share for each
13 2/17th shares held (after giving effect to a stock di¬
vidend of 11%'%). The warrants expire on March 16,
1959, Price—$35 per share. Proceeds—For working cap¬
ital.
Office—Branchville, N. J. Underwriter—None.
Service
Life
Insurance
Co.
Sept. 26 (letter of notification) 3,567 shares of common
(par $1). Price—$18.75 per share. Proceeds—Tc
go to a selling stockholder. Office—400 W. Vickery Blvd.,
Fort Worth, Tex. Underwriter—Kay & Co., Inc., Hous¬
ton, Tex.
mon
stock.
(3/16)
($1 per share).
Price—At par
Proceeds—
promote and expand the development of the Safety
School Shelter business.
Office—c/o Brown Kendrick,.
To
Preston
6130
&
—Sano
Haven
Drive, Dallas, Texas.
Underwriter
market.
Proceeds—For investment.
Office
Life, Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To bf
Invested in stocks and bonds and to acquire other life
Insurance companies. Address—P. O. Box 678, Gulfport
Underwriter—Gates, Carter & Co., Gulfport, Miss
it Stein Roe & Farnham Balanced Fund, Inc.
Feb. 24 filed (by amendment) 300,000 additional
of
capital stock.
vestment.
shares
Price—At market.*; Proceeds—For in¬
Office—Chicago, III.
1033-30tb
St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment
Fund
Management
Corp.
Former
Name—
Shares in America, Inc.
Sheridan-Belmont
Hotel
6% bondi
and 975,000 shares of common stock (par 10 cents). Pries
—For bonds, 95% of princmal amount; and for stock $)
per share. Proceeds—To erect and operate one or mort
chemical processing plants using the Bruce - Williami
Process
to
beneficiate manganese ores.
Underwriter-
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital. Office — 3172
North Sheridan Rd., Chicago 14, 111. Underwriter—None
it Showplan, Inc., Los Angeles, Calif.
16 ■(letter of notification) 3,000 shares of class A
stock i(par $100) and 3,000 shares of class B stock (par
Feb.
$1) to be offered in units of 10 shares of class A stock
Proceeds—For
purposes.
working
Price
—
$1,000
per
unit.
capital and general corporate
672 South Lafayette Park
Office—Suite 25,
Place, Los Angeles 57, Calif.
Underwriter—None.
• Simplex Wire & Cable Co.
(3/16-20)
Feb.
19 filed 203,250 shares of capital stock (no par).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Office—7fl,Sidney St., Cambridge, Mass.
Underwriter—Paine, Webber, Jackson & Curtis, Boston
and New York.
Sire Plan of
notification) 500 shares of class A
stock.
Price—At par ($500 per share). Proceeds—For
drilling a well. Omce—buite 1401, 320 Broadway, New
York 7, N. Y. Underwriter—None.
"
/
Feb.
12
(letter
of
Texas
Instruments/ Inc., Dallas, Texas
shares of common stock (par $1)
and 737,974 shares of 4% cumulative preferred stock,
series 1959 (25 par—convertible on or prior to May 1,
1969), to be offered in exchange for common stock of
Metals & Controls Corp.
Feb.
11
,
Nov. fO filed $250,000 of 6% 10-year debentures and 5,000 shares of 6% participating preferred stock (par $50)
$50 debenture and one share
Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
a
of preferred stock.
Inc., New York.
Sports
Nov.
Arenas (Delaware)
Inc.
$2,000,000 of 6% 10-year convertible de¬
18 filed
bentures (subordinated), due J'an. 1, 1969.
Price—At market. Proceeds.
•
Price-*-JTo be
V
*Thorncliffe Park Ltd. (3/18-20)
(Canadian) of sinking fund de¬
bentures, series A, due March 1, 1974, and 80,000 shares
of common stock, to be offered for sale in units, each
consisting of $1,000 of debentures and 20 shares of com¬
mon stock.
Price—To be supplied by amendment.
Pro¬
ceeds—For repayment of a loan; to retire all of the com¬
pany's current bank loans; and the balance for working
capital and general corporate purposes. Address—Postal
Station R, Toronto, Ont., Canada. Underwriter—Bache &
Co., New York.
—
At
par
($100
per
equipment; construction of a plant and for working
capital. Office — 526 Plaster Ave., N. E., Atlanta, Ga.
V-
Underwriter—None.
•
TV Junior Publications Inc.
(3/3)
Jan. 26 filed 150,000
shares of common stock and warrants
purchase of an additional 150,000 shares of com¬
stock, to be offered in units of one share of stock
and one warrant. Of this offering, 120,000 units will be
offered for the account of the company and 30,000 units
will be sold for the account of selling stockholders. Price
—$2.50 per unit. Proceeds—To repay loans by company
officials and past-due payables owing chiefly to Promo¬
tion Press; and the balance for working capital and ex¬
pansion of circulation. Office—225 Varick St., New York.
Underwriter—Charles Plohn & Co., New York.
Union
Bag-Camp Paper Corp.
Jan. 8 filed 23,282 shares of capital stock (par $6.66%)
being offered in exchange for shares of capital stock of
Highland Container Co. in ratio of 0.58 share of Union
Bag for one share of Highland. The offer will expire at
3:30 p.m. (EST) on March J2, unless it is accepted prior
to its expiration of stockholders holding more than 25,000
of the outstanding shares, the exchange offer will be can¬
celled.
ers
of
If the exchange offer is so accepted by the hold¬
more
than 25,000, but less than 36,000 such shares,
exchange offer
change agent given
United
be cancelled
may
Union Bag by written
on
or
or
at the option of
telegraphic notice to the ex¬
before March
4.
To
selling stockholders.
/./V | Nc
cejit). Price—$2 per share. Proceeds—
capital and general corporate purposes. Of¬
Ave:, Newark, N. J. Underwriter—Ross,
Lyon & Co., Inc.*,. New York. /
fice—27 Hayrtps
.
United Tourist Enterprises,
Inc.
Jan. 28 filed 4,500,000 shares of class A common stock
(par 50 edrits).
Prick—$2 per share. Proceeds—For,
development... and construction of a "Western Village'/
and for construction of a Grand Estes Hotel and Con¬
in the immediate vicinity
in Larimer County, Colov
330: South 39th Street, Boulder, Colo. Under-;
vention Hall, to be! constructed
Estes Park/Ghaiet, located
—
writer—fMid-We£t Securities Corp., Littleton, Colo.
/ :
NU
April 30,1957 filed 1,250,000 shares of common stock(par
16 rents)/ Price—£o he suonlied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration,
..
Uranium Corp. of America,
Underwriter—To be
purposes.
V ' '
Portland, Ora./-';:
named by
•
amendment
Uriswold of Portland, Ore., is Pre»-,
r
Utah Minerals Co.
.
.
>
...
(letter of notification) 900,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
April 11
mon
Utah.
expenses. Office—305 Main St., Park City,
Underwriter—Walter Sondrup & Co., Salt Laks
City,
Utah.V'*••/
—For
mining
Utah Oil Co. of New
York, Inc.
(letter; of notification) 300,000 shares of capital
Price
At par ($1 per share). Proceeds — For
May 6
stock.
—
Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hurit
Co., Inc., Rochester, N. Y.
y, T
development of oil and gas lands.
(
.
&
/K'-v?--/-v ■: N:u
v:;; Venture Options, Inc.
Jan. 27 (letter, of notification)
60,000 shares of common
(no par). • Price—$5 per share. • Proceeds—To be*
deposi ted with/member firms of the New York Stock
Exchange ,tov guarantee Puts and Calls written by the
company and to cover expenses. Office—730 Fifth Ave.,
stock
New York
19, N. Y; Underwriter—Barsh & Co., 663 Main
Ave., Passaic, N.;J.
Walnut
Feb.
9
Iowa.
Price
—
Ghjo.' Underwriter—None.
(par one
^•Trans-Phonic Industries, Inc.
17 (letter of notification) 2,750 shares of class B
stock.
•
For working
non-voting
common
rt
(2/27-3/5}
(letter of notification), 450,000 shares of common
series
Feb.
//•*',
'
Chemical Corp.
States Pool Corp.
United
filed 691,851
Feb. 20 filed $4,000,000
:i$i%
/■
708,750 outstanding shares of common stock.
Office—Tiffin;
ident.
the
Elmsford, Inc., New York
to be offered in units of
Nov. 26 filed
Graham vAlbert
Southwest Shares, Inc., Austin, Texas.
mon
Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip¬
and 10 shares of class B stock.
United States Glass &
Office
Strategic Minerals Corp. of America, Dallas, Tex
March 31 filed $2,000,000 of first lien mortgage
for the
Co.
N:|.Vv v:
Life & Accident Insurance Col;N '
Aug. 22 filed: 120,Q00 shares .of class A common stock,:
Price—$3 per share.'Proceeds—To provide the reserves,;
requlreq /t^ he hpid in life and accident insurance
cies, and to pay the necessary expenses in producing
insurance./ Office—Louisville, Ky.
Underwriter—None.
of
I
and
Price—At
—
in units consist¬
of/class A and
United Security
.stock
share). Proceeds—For purchase of real estate; machinery
Industry, Inc.
Dec. 12 filed 50,000 shares of common stock.
,
share,
1959. Price—$200 per unit Proceeds—For working 1
capital.':Office—N6?Eliot St., Cambridge. Mass. Under¬
Jan. 16
Co., New York, N. Y.
State
•
shares of class A
shares of class B,
9,
...
300,000 shares of com¬
Stock
Shares in American
stock
one
\
,
Edmopci M. Smith,*is President.
Co.
(letter of notification)
17
writer—None.
Jan. 23
T-'/rV'
1.
-
subscription by stockholders on the basis of two units
for each shaNof class A and class B common stock fiow
held. Unsold units to go to others. Rights expire March '
-
Price—$7.50 per share.
*
of Notification) 640
(par $10) and 4,480
(letter
11
common
it Texas General Corp.
Investment Corp.
Jan. 29 filed 475,000
Dec.
Feb.
writer—None/' '
Standard Security Life Insurance of
New York (3/5)
•
Miss.
Ltd., Alberta, Canada
Petroleum
June 26 filed 1,998,716 shares of common stock
Ot this stock, 1,174,716 shares are to be sold on
stock (par one
Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—
cent).
?
"
it United Research Inc.
common
Inc.
(Delaware)
Standard Sign & Signal
itRental Supply Inc., Wichita, Kan.
17 (letter of notification) 30,000 shares of class A
stock. Price—At par ($10 per share). Proceeds
To purchase unimproved land and for working capital
market.
present
Arenas
Sports
Dec.
common
(by amendment) 2,000,000 additional United
Accumulative Fund: shares.
Price—At market. Proceeds
None.
basis. Statement may be withdrawn.
Feb.
Mo,
it United Funds, Inc., Kansas City,
Feb. 16 filed
—For investment.
expand
the number of alley beds by
Feb.
$1,000,000 of 15-year 6% series A sinkinj
fund debentures due 1973, to be offered in denominatiom
June 26 filed
•
.
.
establishments by increasing
eight at Yorktown Heights
and by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter-
to
Nov. 18 filed 461,950 shares of common
Jan. 28 (letter
•
.
(1010)
42
Grpve Products Co.,
<-*/
Inc.
/filed». $500,0001 of 6% sinking fund debentures,
due J969. Price—100% ,of principal amounts
B,
Proceeds—rFpr capital improvements.
Office—Atlantic,*
Underwriter—The First Trust Co. of Lincoln,
Neb.;
it Waste King^Corp.. -r'.yjN.v- :* NN.N*;
Feb. 20 filed;I00>000 -shares; of series C 6% cumulative/
convertible preferred-stock (par $17.50).
Price—To be,4
supplied -by vamendment. Proceeds — To reimburse the:
treasury for purchase :of 182,000 shares of Cribben &
Sexton Co.; towards the development and tooling of new'
product lines,; and. the balance to augment working cap-;;
i+al. Underwriter—Straus, Bldsser & McDowell, Chicago^
ill.
•//:-A
•
•
Western Casualty & Surety Co.
(3/'S>
Feb. 11 filed 400,000 shares of capital stock
be
offered: for
stock
held
subscription
at the rate of one
on
March
Price—To
be
.
^
(par $5)
holders of outstanding*1
share for each five shares*;
by
new
.4, 1959; rights to expire
supplied by amendment.
March -19./
Proceeds—To ,
on
increase
capital "and surplus. Underwriters — Kidder^
Peabody &, Co./New York; and Prescott, Wright, Snider/
Co., Kansqs City^ Mo. .,, .
/ / ...
it White Stag Manufacturing Co.
(3/16-20)
Feb. 20 filed. 127,500 shares of class A common stockf 61 *
which 65,000 sha^esrfare to be offered for the account/ of
selling stockhjolders.
Price—To be supplied by amend- v
Proceedsp—To be applied to payment of outstand-;
ing indebtedness of Marcus. Breier Sons, Inc., assumed
by the company upon liquidation of that corporation;-to.
reimburse the company's treasury for cost of reacquiring
5,951 common shares .outstanding prior to a recent re¬
,
ment.
,
capitalization^ of such shares into class A and class B'
stock; - and ^lie balance "for general corporate purpose^/
Office
— 67 *W6st Burnside St.] Portland, Ore.
Co., New York.
:
Under*
Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase.
Office — Wilmington, Del. Under*
writer—None.
Myrl L. McKee of Portland, Ore., i«
Inc., Wichita Falls, Texas (3/10)5
Feb. 18 filed, $5,000,000 convertible subordinated deben-'
tures, due March 1, 1979. Price — To be supplied by.,
President.
Inc., New York.
writer:
—Francis L duPont &
•
White
•.<
•
/•*■■ '
•
Stores,
amendment, 'Pr°ceeds—For
Underwriter
—
Merrill
general
corporate purposes.
Lynch, Pierce, Fenner & Smith]*
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
William Hilton Inn Co.
.Jan.
19
filed
Underwriter—To be determined by
competitive bidding.
bidders: Lehman Brothers and Eastman Dil¬
of
approximately three acres,,of ocean
front property on Hilton Head
Island, to construct the
Inn, purchase all furniture, fixtures and equipment
nec-;
to. operate
essary
the
Inn, and
to
-
Wilmington Country Club, Wilmington, Del. "
Oct.; 27 filed $500,000 of debentures due 1991 (nop
•
t ere St-
bearing)
and
800
shares
of
common
Stock
in
(pai
$25);''tar be offered to meipbers of this clubhand oi
Cqncord Ltd. Price—$375 per common- share and $1,000
debenture.
per
build
Proceeds
To
—
develop
property
and
certain facilities.
7'Underwriterr^Nonie.!^'^^ /*'1
'^v'./
/•T Wyoming Corp.
Nov. 17 filed 1,449,307 shares of
shares 1,199,307 are subject to
;
common stock/Of these
partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the additional 250,000 shares are to be offered
initially to share¬
holders of record Nov. 1, 1958, in the ratio of'one new
share for each 2.33 shares held on that date;
Price—$4
-
share.^Proceeds—$300,000 will be
per
used-for payments
contract to
on
•
purchase shares of International: Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur-.
ance company;
$500,000 for capitalization of a title insurance company; $500,000 for additional
capital'contribu¬
tion to Great Plains Development
Co.;J and $300,000 as
:
I
ah
additional capital contribution to Great Plains MortCo. Office—319 E. "A" St., Casperf^Wyo. * Under-
;> gage
writer—None.,
\
" "
,•
^J ^
.
jl
"
ty"
v
Dec.
-
*\;:
\
fAlabama Power Co.
•
y-: «v-.:
-iv-i
V
10 it
was
iSsue and sale
(4/30)
bbnds. Proceeds
For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers^Eastman Dillon, Union Securities & Co., Equitable
Securities Corp, and Drexel & Co.-(jointly)-; Harriman
Ripley & Co., Inc. and Goldman, Sachs & Co. (jointly);
—
'
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston
'
t
Corg. Regis-
tration—Planned for April .3.
ceived on April 30. /
•
All
American
Jan. 30 it
Markets,
Bids—Expected to be
Downey,
Calif.
T-
.
re-
•
'
//;' V
"
of Southwest
N.
A., Houstony Texas / v ?
is offering, to: its. stock¬
holders of record Jan. 20, 1959, a total-of, 62,500 addi¬
tional shares of,Tcapital stock (pac^
$20X-on^ber/hasis.of
ope new share for each 10. shares .held;
rigjits to expire,
it
was
announced
Bank
March 17,
on
1959.- Price—$40
.increasecapital and surplus.. /
4r Brockton
Edison
Co.
per
^
share. Proceeds—To
...
.
Feb. 23 it was reported that this
company plans >to issue
/and,sell 20,000 shares of preferred stock (par $100). Un¬
derwriter/— To be determined
by competitive bidding.
Co. Inc.; Stone &
Webster Securities Corp.; Kuhn, Loeb ,&
So., Salomon
Bros. & Hutzler and Wood. Struthers & Co,
(jointly);
'Kidder, Peabody & Co., White, Weld & Co.rgnd Shields
*& Co. (jointly). Bids—Expected to be.received on
April
Probable
bidders:,Halsey, Stuart
:2;kV//:u
/•/;:;
:y; •*.//;•.
California Electric Power Co.. (3/31) ?
21 it was announced that the
company plans the
"issue and/sale of 300,000 shares of common stock. Pro¬
i
Jan.
'
•
'
ceeds—To repay bank loans and for
expansion program.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Merrill Lynch, Pierce, Fenner & Smith
Inc.; The First Boston Corp., Carl M. Loeb, Rhoades &
"Co. and Bear Stearns & Co. (jointly);
White, Weld &
Co,; and Kidder, Peabody & Co. Bids—To be received
up to 9 a.m. <PST) on March 31.
•
Central Bank & Trust
Jan.
Co., Great Neck, L. I., N. Y.
13 stockholders approved
the sale of
an
additional
38,503 shares of capital stock to stockholders of record
Feb, 2, 1959, on the basis of one new share for each five
shares then held; rights expire Feb. 27, Price—$20
per
sh^re.
Proceeds—To
increase
derwriter—None.,
]
'
capital
^Jan. 26 it
reported
was
and
surplus.
Un¬
•
VCentral Power & Light Co.
that
,
the
plans to sell
$11,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lehman Bro¬
thers and Glore Forgan & Co. (jointly);
Kidder, Peabody
& Co.; Merrill Lynch, Pierce, Fenner & Smith and Salo¬
mon
company
Bros. & Hutzler
(jointly); Kuhn, Loeb & Co., A. C.
Allyn & Co., Inc., and Bear, Steams & Co. (jointly);
Eastman Dillon, Union Securities & Co.
Bids—Expected
to be received sometime in April.
•
Columbia
Gas
System,
Inc.
(4/1). '
.
'-Feb.v23-it
.common
mon
was reported
company plans to offer to its
stockholders. 1,799,057 additional shares of com¬
stock
on
a
l-for-15
March 31. Proceeds
—
basis.
To repay
debentures and common stock, but
details have not yet been worked out.
Business—Manu¬
facturer and distributor of
light meters, cameras, etc.
Underwriter—H. M. Byllesby & Co., Inc.,
Chicago, 111./
El Paso Electric Co.
:
Feb. 9 it
reported that the company is planning the
sale of
$3,500,000 of first mortgage bonds due 1989. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders;
was
Halsey, Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co.; White, Weld & Co. and Shields & Co.
(jointly) Equitable Securities Corp. and R. W. Press¬
prich & Co. (jointly). Bids—Expected to be received
some time in
May. ;
1 /
/."•
'
•
.
El Paso Electric Co.
Feb. 9 it was reported that the
of 20,000 shares-of
construction
plans the sale
(par $100). Pro¬
company
preferred
ceeds—For
stock
Underwriter—To
program.
be
determined
by competitive bidding. Probable bidders;
Eastman Dillon, Union Securities &
Co.; Salomon Bros.
&
Hutzler
&
Co.; Kidder, Peabody & Co., and White,
Weld & Co. (jointly); Merrill
Lynch, Pierce, Fenner &
Smiths Bids—Expected to be received some time in
May.
El Paso Electric Co.
Feb. 9 it
reported that the company is also planning
offering of common stock to common stockholders on
an
was
the basis of about
one new share for each 25 shares
held.
construction program.
Dealer-Manager
—Stone & Webster Securities
Corp., New York.
Proceeds—For
Florida Power Corp.
Feb. 4, W. J. Clapp,
President, announced that the cor¬
poration is planning to sell additional shares of common
stock on the "basis of one new share for each 12 shares
Proceeds—For construction expenditures.
writers—
Pierce,
Kidder,
-
Peabody
&
Smith
Inc.
Fenner" &
Co.
and
Under¬
Merrill
Lynch,
Offering—Expected in
June.
announced that company
was
Dec. 10 it
and sell
was
(9/10)
announced that the company
plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬
"Underwriter—To be
by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. fjointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co.
(jointly); Harriman Ripley & Co. Inc.
Registration—Planned, for Aug. 14. Bids—Expected to
on Sept. 10. • :
be received
"
Great Atlantic & Pacific Tea Co.,
Inc.
15
the new
common
voting stock outstanding
following-10-for-l split was listed on the New York
Stock Exchange.
A large secondary offering has been
Dec.
r
Price—To be named
on
outstanding bank loans.
Underwriters
May include: Blyth & Co.,
Inc.; Lehman Brothers and Smith, Barney & Co.
—
was
announced
that the company
is planning
an offering of
$1,000,000 to $1,500,000 of common stock.
Proceeds
For expansion program. Underwriter — J.
—
Barth &
Co., San Francisco, Calif. Registration—Expect¬
the latter part of March.
Offering—Expected some¬
ed in
time in April.
c
/
Gulf Power Co.
;,
.
.
(4/2)
(jointly); Lehman Brothers and Bear,
(jointly). Offering—Expected in May or
Louisiana
Power & Light Co.
(4/14)
^ was reported that the company plans to issue
and sell $7,500,000 of preferred stock (par
$100). Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;
White, Weld &
Co., Blyth & Co., Inc. and Shields & Co. (jointly); Mer¬
rill Lynch, Pierce, Fenner &
Smith, Kidder, Peabody &
Co. and Harriman Ripley & Co., Inc.
(jointly); Salomon
Bros. & Hutzler, Eastman
Dillon, Union Securities & C«.
and Equitable Securities Corp.
(jointly); The First Bos¬
ton Corp. and Glore, Forgan & Co.
(jointly). Bid's—Ex¬
pected to be received
Anril 14.
on
Mississippi Power Co.
Dec.
it
10
announced that this company
plans to
$5,000,000 of 30-year first mortgage bonds.
Proceeds—For
be
construction
determined
competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities
Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Plannedv£or May 29./ Bids—Expected to be re*ceived
June 25.
on
^ Natural Gas Pipeline Co. of America
Feb. 25 it
issue
was
of first mortgage
bonds later in
Weld
&
Co.; Kidder, Peabody & Co.; Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly). Offering—Expected during August.
Jubilee
Feb. 2 it
Records
was
North American Equitable Life Assurance Co.
was announced that the
company plans an of¬
fering of 950,000 shares of capital stock. Price — $19 per
share. Proceeds—To increase capital and
surplus. Un¬
Dec. 1 it
derwriter—John M. Tait & Associates,
Cincinnati, Ohio.
ic Ohio Edison Co.
Feb. 23 it
(3/25)
reported that the company plans to issue
$30,000,000 of first mortgage bonds due 1989,.
Underwriter—To be determined by competitive bidding.
and
was
sell
Probable
bidders:
Halsey, Stuart & Co. Inc.; Morgan
Co.; Glore, Forgan & Co.; Eastman Dillon,
Union Securities & Co, and White, Weld & Co.
(jointly);
The First Boston Corp. Bids—Expected to be received
Stanley &
March
25.
Our River Electric
Dec. 22 it
Co., Luxemburg
reported that this company plans to offer
of bonds. Underwriters—The First Boston
was
$10,000,000
Corp. and Kuhn, Loeb & Co., both of New York.
Penn-Texas Corp.
1
Jan. 28, Alfons Landa, President, said the company may
offer its stockholders $7,000,000 additional capital stock
through subscription rights". Piiffwse—To acquire Fair¬
banks, Morse & Co. common stock. Underwriter—Bear,
Stearns & Co., New York.
Pennsylvania Electric Co.
Feb.
10 it
that the company is planning
of first mortgage bonds.
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co.; Eastman
Dillon,
Union Securities & Co.,-Merrill
Lnych, Pierce, Fenner
& Smith Inc. and White, Weld & Co.
(jointly); The First
Boston Corp. and Harriman Ripley & Co. Ipc.
jointly).
Offering—Expected about mid-year.
the
sale
announced
was
of
$15,000,000
—
• Pittsburgh & Lake Erie RR.
Feb.
23
it
and
stock.
Proceeds—For
way,
sale
New York, N. Y.
expansion.
Office—1721
Broad¬
Underwriter—Not yet named.
Kansas
City Power & Light Co.
was reported that the
company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—
Dec. 29 it
and sell
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co.,
Inc. (jointly); Equitable Securities Corp.; Wtyte,
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Weld & Co. and Shields & Co.
(4/7)
on
was
reported the
plans to receive
company
April 7 for the purchase from, it of $2,475,000 of
equipment trust certificates. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Public Service Electric & Gas Co.
(6/2)
reported that the company plans sale of
$30,000,000 to $40,000,000 debentures. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn
Jan. 30 it
was
&
Co.
and
Lehman
Brothers
tatively expected to be received
(jointly); Morgan
(jointly). Bids—Ten¬
on
June 2.
Puget Sound Power & Light Co.
Feb. 6 it was announced company plans to issue and sell
$10,000,000 preferred stock this Spring. Proceeds—For
construction program.
Underwriter — May be Merrill
Lynch, Pierce, Fenner & Smith, Inc., New York.
^ Research Specialities Co.
(3/6)
reported that the company plans an offer¬
ing of 50,000 shares of common stock. Price — $6 per
share.
Underwriter—Myron A. Lomasney & Co., New
Feb. 19 it
was
York.
Ritter Finance Co.
9 it was reported that the company plans early
registration of an undetermined amount of stock, prob¬
ably to take the form of a convertible preferred stock
Feb.
issue.
Pa.
Underwriter—Stroud
Registration—Planned
Expected
•
announced that the company plans the is¬
of $1,500,000 of convertible preferred
suance
to pay off
York.
Stanley & Co. and Drexel & Co.
Jersey Central Power & Light Co.
10 it was announced that the company is contem¬
plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; White,
1959
$25,000,000. of bank loans incurred in connection with its
construction
program.
Underwriters—Dillon, Read &
Co., Inc., and Halsey, Stuart & Co. Inc., both of New
Loeb
Feb.
i
announced company plans to issue and sell
Dec. 10 it
Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra¬
tion—Planned for March 6. Bids—Expected to be re¬
ceived on April 2.
Underwriter—To
program.
by
ders:
and sell
was announced that the company plans to issue
$7,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith, Salomon Bros. & Hutzler and Drexel & Co.
(jointly); Eastman Dillon, Union Securities & Co.:
•
(6/25)
was
issue and sell
bids
«A" Greater All American Markets
Feb. 16 it
•
Co.
Dec. 29
(formerly F & R
Machine Works) is considering some additional financ¬
ing, but types of securities to be offered have not as yet
been determined.
Georgia Power Co.
Securities &
on
FXR, Inc., Woodside, N. Y.
Feb. 2 it
rumored.
.
.(4/23)
Corp., New York City
reported that the company is planning the
was
convertible
determined
wras
•Underwriter—J. Barth & Co., San Francisco, Calif. Offaring—Expected about middle of April..Registration—
Planned for April 1.
Bank
Co.
&
ceeds—For construction program.
r
reported that the company plans a commpii stock offering. Business—Chain of grocery stores.
•Feb..9
of
held.
that the company , plans the
$20,000,000 of 30-year-first inortgage
announced
of
sale
.provide*?necessary
working capital (and to reimburse- Sea Pines Plantation
for some $20,000 of costs advanced
by it. Underwriter—
The Johnson, Lane, Space
Corp., Savanrfch, Ga.
•
Securities
De Jur-Ansco
Jait. 27 it
tract of
a
Union
(jointly); Merrill Lynch,
Pierce, Fenner & Smith, White, Weld & Co., Shields &
Co. and R. W. Pressprich & Co.
(jointly); Morgan Stan¬
ley & Co. Bids—Expected to be received up to 11 a.m.
(EST) on April 1. Registration—Planned for March 5.
amount), 15 clpss A shares and 1.class B"share. Price—,
$1,160 per unit. Proceeds—Together with bank borrow¬
ings, will be used to purchase from the Sea Pines Plan¬
43
June.
Probable
trust
.
tation Co.
Stearns & Co.
lon,
...
together with The
William. Hilton Trust,
participation certificates, 9,000 shares
ofs class A common stock
(non voting), and 600 shares
of class B coirwnon stock
(voting) •: to be offered in 600
units, each consisting of 10 certificates
($100 face
$600,000
(1011)
some
ance
Co.,
this
time in March.
Ryder System, Inc.
Ian. 12 it
&
for
Inc.,
Philadelphia,
month.
Offering-
*
(3/2-6)
reported that the company plans the issu¬
and sale of 150,000 shares of common stock (par $5).
was
Proceeds—For
acquisitions.
Underwriter—Blyth & Co.,
Inc., New York. Offering—Expected any day.
•
Southern
Electric
Dec. 10 it
was
and
$25,000,000
sell
Generating Co.
(5/28)
announced that the company plans to issue
of
30-year
first
bonds.
Underwriter—To
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Proceeds—For
be
construction
mortgage
program.
determined
Continued
on
page
44
Chronicle
The Commercial and Financial
44
.
Thursday, February 26", 1959
.
.
\1?IZ)
f
Fenner & Smith; Kidder, Peabody
Weld & Co. (jointly). Registration-
Merrill Lynch, Pierce,
& Co. and White,
May 28.
Feb. 16 it
Power Co.
Jan. 26 it was reported that this company
(formerly
Southwestern Gas & Electric Co.) plans the issuance and
Sale of about $16,000,000 of first mortgage bonds. Under¬
writer—^ be determined by
competitive bidding. Prob¬
it
Dec. 11
was
issue and sale of about
bidders:
Probable
Brothers
$15,000,000 of first mortgage bonds.
Halsey, Stuart & Co. Inc.; Lehman
Dillon, Union Securities & Co,
& Co. Inc.
Eastman
and
(jointly); The First Boston Corp. and Harriman Ripley
(jointly); Kidder, Peabody & Co. and White,
& Co. (jointly).
Bids—Expected to be received
Weld
/V"
May 26.
on
<■/:,/'.
'
I;
(4/15) ..'
Light Co.
Jan. 12 it
the right to subscribe for 10,000 additional
shares of capital stock (par $25) at the rate of one new
share for each five shares held; rights to expire on March
$14,000,000 first mortgage bonds. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
Wisconsin
Jan. 15, 1959
loans and for
Underwriter—A. G. Becker &
5.
Transmission Corp.
•
Vice-Presi¬
21
it
announced
was
that
and Eastman Dillon, Union Securities
(jointly); White, Weld & Co., Kidder, Peabody
and Salomon Bros. & Hutzler (jointly); The First
Corp. Bids—Expected to be received on April 15.
the
company
plans
to
710,000 shares of common stock to
be offered for subscription by stockholders of record on
offer
additional
an
(jointly); Equitable Securi¬
& Co.
ties Corp.
(6/2)
Virginia Electric & Power Co.
Feb.
dent, that the corporation plans to raise about $90,000,€00 through the sale of new securities (tentative plans
call for the sale of bonds, debentures and preferred
reported that the company contemplates
and Robert W. Baird & Co.
s
"
was
Power &
the sale of
Proceeds—To increase capital
Price—$35 per share.
and surplus.
announced by W. Hargrove,
(5/26)
reported the company contemplates the
Uptown National Bank of Chicago
'
Jan. 15 the Bank offered to its stockholders of record
Co., Inc., Chicago, 111.
Texas Eastern
was
Underwriter—To be determined by competitive bidding.
increase capital and surplus.
pected 'March 2.
To pay outstanding
—
it
ing of 275,000 shares 'of common stock.
Underwriter—
Van Alstyne, Noel & Co., New York. Registration—Ex¬
shares of class A common stock, of which 60,the account of selling stock¬
Proceeds
holders.
the basis of one new share for
Proceeds —. For construction
Power Co.
West Penn
Dec. 29
it United States Servateria Co.
Feb. 25 it was reported that the company plans an offer¬
€00 shares will be sold for
additional work
Ore.:
reported that in connection with the pro¬
between this Bank and the First National
Proceeds—To
.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Merrill Lynch, Pierce,
Fenner & Smith, Inc.; Stone & Webster Securities Corp.
Bids—Expected to be received on June 2.
J; v
of
share.
Halsey, Stuart & Co. Inc.;
^ Spector Freight System, Inc.
Feb. 16 this company sought ICC approval for issuance
of 200,000
Bank, Portland,
■
program.
Baker, Ore, that the Bank plans to issue an
additional 23,000 shares of common stock on the basis
of one new share for each 49 shares held. Price—$50 per
Merrill Lynch.
Pierce, Fenner & Smith Inc. and Eastman Dillon, Union
Securities & Co. (jointly); Equitable Securities Corp.:
Lehman Brothers; Kuhn, Loeb & Co.; Blyth & Co. Inc
Bids—Expected to be received in April or May.
able bidders:
was
posed merger
Bank
National
States
United
'
Southwestern Electric
i
20 shares then held/
each
York.
Bids—Expected to be received on
Planned for April 17.
'
'
about June 2, 1959, on
or
Proceeds—To refund $30,000,000 of outstanding
bank loans, and the balance will be used for capital ex¬
penditures. Underwriter—Dillon, Read & Co. Inc., New
stock).
43
Continued from page
& Co.
Boston
Regis¬
/ /
tration—Planned for March 9.U"
the
Philippines subsidiaries, con¬
earnings
were
$2.97,
solidated
with
$2.86
in
1957.
Actually, if all the Philippine
earnings had been included, earn¬
ings would have been $3.20 vs.
By OWEN ELY
$3.04. Moreover, the $3.20 is after
allowing 150 a share for rate liti¬
General Public Utilities Corp.
gation involving Manila Electric,
which case is still pending before
General Public Utilities (GPU) shares. Actual remittances remain
the Philippine Supreme Court. A
being subject to the
controls the surviving properties irregular,
decision is expected in the latter
order
of the
compared
Public
Utility Securities
tric
which at one time
properties worth over
a billion dollars in a large number
of states. While the scope of the
System,
controlled
System has been greatly reduced
and now includes only two States
Jersey)
plus a foreign property, the great¬
ly increased investment in the
(Pennsylvania
and
smaller
number
brought
gross
New
of
subsidiaries
utility plant up to
$874 million at the end of 1958—
in another year or so the size of
the old System may again be at¬
tained.
„
GPU
owns
V
,
all the
.
common
.
•
stock
of Pennsylvania Electric and Met¬
ropolitan
Edison
(in
Pennsyl¬
vania), New Jersey Power & Light
and
Jersey
Central
Power
&
Central
Philippine
Elec¬
of the old Associated Gas &
Bank.
from
are
of
domestic
System
spent about $92
million for construction last year
The
Pennsylvania
and
one-
1959, including $10 million for
In 1960-61, expenditures
for
-about
42%
Manila
and commercial 21%.
Electric
serves
some
312,000
customers in the City of
adjacent areas; reve¬
are
about 44%
residential,
Manila
nues
and
26%
commercial and 20% indus¬
trial. The company is enjoying the
growth
rapid
and
typical of Florida
Utilities, kwh sales
increased 16% and reve¬
Texas
Laving
nues 14% in 1958.
It completed a
25,000 kw generating unit in Sep¬
tember, 1958, with the aid of tem¬
porary loans from the parent com¬
and has obtained a credit
of about $10 million from the U. S.
Export-Import Bank to provide
pany,
the
•of
dollar
a
component of the cost
60,000 kw unit to be placed
in service in 196*1.
However, like
idly-growing
Manila
some
other rap¬
foreign
Electric's
utilities,
counsel that
in their opinion the appeal should
being
ten
the
Continued
expected to average about $80
million
per
annum.
Two large-
generating units were com
The stock has been
from Manila.
the
selling recently around 48 Vz,
for
range
to
generate
4%
about
one
decreased
kwh
principally
due
to
greater efficiency. The "heat rate"
dropped about 3% to 11,025 btu
net kwh; and the average cost
fuel declined 1.4%. Late in the
per
of
year
a
Metropolitan Edison placed
165,000 kw unit in service, and
System capital structure is about
49%
now
long-term
on
the usual basis.
Under
the
terms
of
the
1958
offering
stockholders
at
could
the
buy
market
assets
the
of
conservatively
are
valued. Furniture and fixtures are
These conservative
book value of $7.96
common
stock, com¬
values give a
from
6
page
share
Vz
sets
of
with its market value of
and the liquid nature of as¬
from
which this equity is
that
Best
thereby
create
additional
down) have been arranged and
for with 13 banks in Pittsburgh, earnings for the common. In fact,
$12 million bank lines in
New York, Chicago, and St. Louis. with
taken
This
funds
available
brings total
full
the company would be
$23.3 million capital
use,
indicated
is
in
the
fact
consisted, on Sept. 30,
1958, of $3.8 million cash and
governments at market and $13.1
$23.3 million. Additional bank
lines will be added as required.
In its Annual Report for
fiscal
employing
1958, the management comments
follows
about
these
capital
they
less
receivables
million
reserves
total of $16.9 million.
Thus, the market value of 6V2 is
for losses,
a
only about 82% of net book value
represented
in conservatively
the past five years, earnings
to
as
"With ample funds to
services on the same
changes:
expand
our
conservative basis which
we
have
heretofore followed, we feel
we
are
on
the threshold of
a
that
new
the
10 years of plan¬
quote management
"we hope, prove to have been the
springboard
to
expansion
and
growth.
These changes give
the
company
greater flexibility
era." These changes represent
culmination
ning
and,
of
to
with the average rate of
and
income
to
capital
produced
net
valued dollar assets.
over
officers
The
of
directors
and
could this company have a large stake
al¬ in its future through their com¬
lowing for full conversion of the mon stock holdings which amount
preferred. This would be equal to to
102,788
common
shares, or
nearly $1 a share on the currently 26.4% of the outstanding total.
outstanding shares. Such results Common stockholders in this com¬
will not develop overnight. Never¬
pany are affiliated with a strong
theless, with automobile sales on management interest in the com¬
the rise in 1959 and with the in¬
pany's future.
rise
to
90c
a
share
or
better,
,
crease
in
small
loan
volume
the
is experiencing, realiza¬
such results may not be
The common stock of this com¬
company
the American
its 1958
range was 7%-6V\. It is currently
Past earnings and dividends of
selling at 7Y4 giving a yield of
for growth.
this company
should be inter¬
5V2 %. A comparison of the market
The shape of the company's fu¬ preted in the light of its opera¬
position of this stock with that of
ture expansion is likely to be both tions
on
a
completely
secured
some of the larger companies in
by increasing loan volume from basis. In fiscal 1958 earnings were the
industry whose stocks are
within and by outside acquisition. 70c a share which compared with
listed reveals that they have priceEmphasis on increasing the pro¬ 78c in fiscal 1957 and a five-year
earnings ratio ranging from 11.6
portion of small loan volume, average of 78c, 1954-58 inclusive.
to 16.3, compared to 10.4 for Con¬
.
which
about
in
fiscal
one-sixth
acquired,
1958
represented
of the
is
total vol¬
likely.
During
tion
of
too far in the future.
Net income
of
the
five
increased in four out
past
years
but
pre¬
ferred stock conversions resulting
additional loan offices in increased outstanding common
acquired and the company is shares, tended to stabilize annual
price without brokerage cost, and now in a
position to take ad¬ earnings near 80c a share. Shift¬
some
64,000
shares were pur¬
vantage of other such opportuni¬ ing a portion of capital to a longchased in this manner.
For the
ties as may arise. With more than term
basis will
help to freeze
first time GPU also permitted em¬
$7 million of unused bank credit some of the capital costs and im¬
ployees to
subscribe and some
lines, further expansion in loan prove earnings as volume rises.
I,000 employees bought a total of volume can be expected from
Dividends have been regularly
II,749 shares.
within.
paid for the past decade and at
System financing in 1959 will
The
company's equity capital the current 40c annual rate for
include the
sale of $15 million consists of
23,822 shares of 6% the past eight years. Total divi¬
bonds
by Pennsylvania Electric convertible
preferred,
$10
par dend payments
over
the period
and $8 million by Jersey Central
value, and 381,944 of common, $1 represented only 51%
of total
P. & L., around the mid-year. The
par value.
During 1957 the pre¬ earnings. Dividend requirements
other two U. S. subsidiaries are ferred
conversion ratio dropped on the basis of full conversion of
not expected to
sell any senior from 1.67 to 1.39 common shares preferred would represent only
securities.
The parent company
per
share of preferred and full 62% of average earnings over this
early in February asked the SEC conversion
would
increase
the period.
In 1958, dividend pay¬
for authority to borrow $15 mil¬
common shares to 415,056
shares. ments mounted to only 59.2% of
lion from the banks during the
Equity capital amounted to $3,- earnings for the year. Thus, the
coming year, for equity invest¬ 277,780 on Sept. 30, 1958 and total
dividend, conservative relative to
shares
Other
1958.
company
approximately carried at $1.
1958-9
38-52.
The Security I Like
ume
additional
fiscal
derived
¬
pleted late in 1958. In that year
the average cost of fuel required
below
years.
are
new
All of these ratios are well
loans.
a
1957
five
were
earning power
{from the viewpoint of the hold¬ ment in subsidiaries.
borrowed funds in use amounted
ing company) has suffered from
The System made a good show¬ to $13 million, or about four times
the
inflationary trend of the ing in 1958 despite a dip of 2% the equity. With the bank lines
Philippine
economy.
Last
year in industrial revenues due to the of $12 million in full use, the bor¬
transmittal
of
funds
from
the recession.
Domestic
subsidiaries rowed'funds would be about $6
Philippines to the U. S. was lim¬ earned $2.85, including 300 which for each $1 of equity. Thus, the
ited to 30% of net income, and reflected deferred taxes resulting
company could expand its loans
amounted to only about 120 per from accelerated
depreciation. In¬ by at least $7 million without
annum
on
the parent
company cluding the 120 cash obtained from raising additional equity capital,
increase of 120,
ninth advance in
the
industry average of
about 1.5%.
Loss reserves were
Payout is now about
74% of domestic earnings, or 71% $446,513 and represented 3.3% of
held at the end- of
of domestic plus actual receipts receivables
this
pared
Manila.
debt, 11% pre¬
ferred stock, and 40%
common
companies do not serve any very
stock and surplus.
Customarily,
large cities — Erie, Pa., is the
largest of the 1,350 communities rights are offered to stockholders
on
a
l-for-15 or l-for-20 basis,
served.
The total population of
such offerings having been made
this area is about 2.8 million, and
in June 1951, July 1952, June 1953,
about one million customers arc
served. The whole system is inter¬ May 1954, March 1957, and Octo¬
ber 1958, the latter being on a
connected and integrated.
Com¬
l-for-20 basis. The company does
mercial activities are quite well
not plan to offer any additional
tdiversified and industrial revenues
shares this year, but the next of¬
are
only 28% of the^total, with
residential and rural contributing fering may be about a year from
Domestic
While the company
1959.
raised to $2.12, an
is budgeted
and about $82 million
revenues
third from New Jersey.
of
has been advised by
Jersey Central a 138,000 kw unit,
Light, plus Manila Electric in the raising total domestic capacity to
Philippines. About 86% of rev¬ 2,268,000 kw. These new units
enues are obtained in this country
should further
increase System
and 14% in the Philippines; about efficiency.
two-thirds
half
generally successful, consoli¬ for both small loans and discount
earnings have been reduced paper. Even in fiscal 1958, a year
by about one-half the amount in of industrial recession, the ratio
on discount paper was only .75 of
controversy.
1% and slightly over 1% on small
The
dividend
last
year
was
be
dated
the
past,
servative
future
Past
seems even
and secure
more
con¬
to
Stock
have
on
where
tinental.
They sell at 1.65 to 2.48
with .91 for Continental and
4%
5.5%,
yields 5%%.
Commercial
Continental
would sell for
12
common
times its earn¬
ings and would yield 4.70%.
A
purchaser
Commercial
rent
level
interest
a
a
about
„
^
Continental
of
at
common
of
in
yield
while Continental
At a price of 8V2,
to
the
cur¬
7V4, gets
an
finance company in
favorable position to expand its
volume and
earning power and in
large managementstockholder interest through sub¬
stantial stock ownership by of¬
with
one
a
ficers and directors.
conservatively
sets
and
count
rate
earning
gets
of
dollar as¬
at a dis¬
well secured
power
and
return
investment
He also buys
valued
a
of
while
5% %
on
his
what
looks like favorable prospects.
awaiting
relative
been
Joins A. G. Edwards
accom¬
plished with conservative operat¬
ing policies. This is indicated by
the company's ratio of losses to
liquidations which over the past
decade has
listed
Exchange
times their book value, compared
possibilities.
results
is
pany
averaged less than 1%
(Special to The Financial Chronicle)
BELLEVILLE,
M.
111.
—
Orville
Streiff is now with A. G. Ed¬
wards & Sons, 13
Public Square.
Volume
189
Number 5824
.
.
The Commercial and Financial Chronicle
.
The following statistical tabulations
Indications of Current
latest week
Business Activity
week
Latest
AMERICAN
IRON AND
INSTITUTE:
STEEL
Indicated Steel
operations (per cent
Equivalent to—
"V"
"
'
Steel lngots
castings
and
(net
—Mar.
l
Month
Week
§87.6
month available.
or
month ended
or
Prevloui
Week
capaeity)
(1013)
Mar.
4
l
48
and
condensate
ALUMINUM
*2,449,000
2,178,000
1,475,000
(in
"
Feb. 13
runs to stills—daily average
Gasoline output (bbls.)
Kerosene output (bbls.)
8,129,000
6,851,985
7,520,000
28,488,000
3,234,000
15,420,000
15,009,000
14,751,000
7,629,000
11,961,000
13
(bbls.)—
(bbls.)
Ujs.v
-O'
Kerosenp
Distillate
Residual
(bbls.) at_
^ASSOCIATION
"tj
CIVIL
U,
.
Public,
'■
109,095,000
55,646,000
.55,824,000
59,368,000
-Feb. 14
CONSTRUCTION
V-
'construction
'•
1
-v
.
-
COAL
OUTPUT
n'»
,—
.
and
-.Feb.
AVERAGE
=
INSTITUTE:
ELECTRIC
(COMMERCIAL
COMPOSITE
AGE
'METAL PRICES (E.
.
$388,080,000
$388,506,000
181,677,000
206,403,000
109,377,000
37,349,000
'
42,598,000
&
DUN
—
—
;
J.
refinery
:■•;
•
HI
-587,000
,
379,000
>
108
-
;.-"r
lie
103
'
13,394,000
^Feb.
19
292
310
317
6.196c
Feb.17
$66.41
Feb.17
$43.83
6.196c
$66.41
•
$43.83
'
<lV
$66.41
1 " "
OF
29.600c
28.625c
28.450c
18
28.800c
28.225c
28.225c
20.050C
18
11.500c
11.500c
13.000c
18
11.300c
11.300c
12.800c
' Average
12.000c
12.000c
12.000c
18
11.500c
11.500c
11.500c
24.700C
24.700c
24.700c
26.000c
18
102.750c
102.000c
99.125c
94.000C
Feb. 24
—
18
86.29
86.31
85.00
94.36
Feb. 24
:
<
;
90.06
89.92
89.92
96.23
10.000c
Feb. 24
tr Aa
94.12
93.97
93.97
102.80
Feb. 24
—
92.79
92.64
92.50
100.16
Feb. 24
89.78
89.78
83.66
83.66
83.79
89.23
88.95
88.54
Feb. 24
,
Baa
90.06
Feb. 24
Feb. 24
89.64
89.37
89.37
-
Feb. 24
A
91.34
91.34
91.77
*
96.07
86.78
"
J
t Railroad
Public
-Group
Utilities
Group.
~
•;!'»!
KOODY'S BOND
YIELD
98.2E
-93.41
DAILY AVERAGES:
Feb. 24
3.80
3.79
3.93
2.98
4.41
4.42
4.42
3.99
4.13
4.14
4.14
3.58
Feb. 24
4.22
4.23
4.24
3.74
Feb. 24
4.41
4.43
4.43
4.00
Feb.
:
Aaa
Aa
24
Feb. 24
Average corporate
I
—
A
2,621
6,295
3,443
1,803
6,174
27,962
55,941
4,558,570
4.413,279
3,883,351
$250,974,000
345,691,000
$254,362,000
$272,821,000
460,866,0(10
13,015,000
15,057,000
11,180,000
155,009,000
229,289,000
374,940,000
113,270,000
82,920,000
65,040,000
249,694,000
tons)
1> O L L A R
—
ACCEPTANCES
FEDERAL
262,667,000
237,280,000
"
OUT¬
RESERVE
BANK
j
credits
exchange
Baser!
....
goods stored
on
foreign
and
•
COAL EXPORTS (BUREAU
Month of November:
U.
S.
exports
(net tons)
of
_
1,132,653,000 1,193,598,000 1,422,127,600
OF MINES)—
Pennsylvania
anthracite
198,440
North
To
Europe (net tons)
Central
and
America
tons)
;
252,489
239,990
161,200
173,730
162,282
27,392
(net
72,800
74,838
2,870
To Asia
(net tons)
South America (not
To
5,594
tons)__
9,840
Undesignated
COAL OUTPUT
of
349,303,000
shipped between
countries
Total
25
340
(BUREAU OF MINES)—Month
January:
Bituminous coal aiul lignite (net tons)
Pennsylvania anthracite (not tons)_________
COKE
Bonds
U. 6. Government
92.06
§5,501,000
DFcernber:
(in
To
,—...
Aaa
3,830
_____
10.500c
Feb.
Feb.
—Feb.
i
corporate.
of
warehouse
12.800c
18
280,728,000
■
6,173,000'
undelivered
and
smpments
13.000c
—Feb.
-Feb.
*289,639,000
8,464,000 ;.
NEW YORK—As of Jan. 31:
Dollar
29.650c
Feb.
at
280,399,000
___
—,
Domestic
/!</..!
—Feb.
at
export
;
Exports
18
It,572,000
27,596
order
on
Domestic
U. S. Government Bonds
-
cars
Imports
Feb.
(primary pig. 99.5Vo)
and
16,000
28,225,000
CAR INSTITUTE—
month)
BANKERS'
,
;
(barrels):
domestic
24,930,000
35,000
Intercity general freight transported by 364
$37.33
i't
25,039,000
47,000
(barrels)
229,430;000
204,484,000
'
25,199,000;
AMERICAN TRUCKING ASSOCIATION, INC.—
5.967c
.
1
$41.17
QUOTATIONS):
at
York)
of
of
$66.49
6.196c
,
MOODY'S BOND PRICES DAILY AVERAGES:
i(
Backlog
12.338,000
296
234,764,000
241,378,000
209,518,000 ? 216,304,000
29,026,000
28,885,000
25,073,000 " *25,549,000
__
Ovdel\s for new freight cars
New
freight cars delivered——..
Mon h
13,156,000
119,285
of December:
carriers
Feb.17
(delivered) at
Zinc (East St. Louis) at
(New
V
(barrels)———
:
stocks
STANDING
at
Louis)
consumption
all
12,026
213,485
142,499
gal-
;2____
(barrels)__
AMERICAN RAILWAY
.'(end
:
output
(barrels)
(barrels)
j
376,000
> 13,259,000
output
imports. (barrels)__
Indicated
PRICES:
M.
output
Increase
8.300,000
366,000
Feb.
INDUSTRIAL)
tZinc
'1
.
.
,
gasoline
oil
•344,796
17,725
333,035
INSTITUTE—Month
96,966,000
97,026,000
-
204,191,000
134,315,000
96,095,000
:
138,693,000
**8,255,000
.Feb. 14
100
Export refinery at
(New York) at
Straits-tin
Crude
.
Lead
Aluminum
Benzol
493,259
330,520
domestic production (barrels of 42
ions each)
____
—
Natural
,
•
•'
148,670
Refined product imports
207,543,000
;
Feb. 14
"
(St.
533,186
511,289
183,414
21,662
.___
S
RESERVE
.Feb. 21
AND
/{; Electrolytic copper—
Lead
V
534,064
$346,236,000
-Feb. 14
(per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton).
Domestic
586,254
551,334
123,759
*123,059
500,852
>
of November:
Month
Finished steel
V')i
186,439,000
138,189,000
48,250,000 i
Feb.
OF MINES):
lignite (tons)———;—
-BRADSTREET, INC.
;
.0 IRON
$398,333,000
PETROLEUM
*124,724
124,202
unit
__;
Total
<
Ago
December:
factory
—.
AMERICAN
-
.Feb-
——
Electric -output (in 000 kwh.)—
'FAILURES
V
of
appliance
_
Dryers
(U. S. BUREAU
coal
S VST EM—1947-4!)
EDISON
\
543,395
laundry
Washers
•
Year
Month
MANUFACTUR¬
ASSOCIATION—Month
home
Domestic crude oil
•*r
565,397
.
211,894,000
{DEPARTMENT STORE SALES INDEX—FEDERAL
JT-
14
_Feb.
yi; Pennsylvania anthracite (tons)_^.i——_——— —
•
567,134
.
of that dates]
Previous
139,836
(short tons) end of Oct.
LAUNDRY"
(domestic)
Combination washer-dryers
-
construction...—J——
f.Jj. Bituminous
!!
210,560,000
20,487,000
108,417,000
57,134,000
tons)—Month of October:
sales
ENGINEERING
—
—
•:
"
23,235,000
92,018,000
-
,
190,748,000
20,649,000
State and municipal—.
yfr ■v" *■Ffedera-l
j
-
•
*198,908,000
19,953.000
88,255,000
-Feb. 13
construction.!-.11-.'—;——
"Private
*
200,120,000
ERS
Total
7,615,000
OF AMERICAN RAILROADS:
ENGINEERING
s.
6,761,000
-Feb. 13
NEWS-RECORD:
Total*D.
r.
-Feb. 13
at—-——.
jrjf;ReVeilue freight received from connections (no. of cars)—Feb..
/.
7,354,000
(bbls.)
oil
freight-loaded (number of cars).
Revenue
-
( bbls:). at-
fuel oil
fuel
13
short
Stocks of aluminum
2,619,000
13
are as
primary aluminum in the U. S.
AMERICAN HOME
26,559,000
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
,
Feb.
r'Jtl
7,087,285
8,025,000
26,913,000
2,903.000
13
Distillate fuel oil output
fuel oil output
7,213,320
H,954,000
26,762,000
2,952,000
(bbls.)
Feb]
peb]
fc|,.'
Residual
7,154,820
Feb. 13
-Feb. 13
Crude
of quotations,
cases
(BUREAU OF MINES):
Production of
§2,481,000
in
or,
either for th#
are
Month
54.6
output—daily average (bbls. of
gallons each)
that date,
Ago
76.9
AMERICAN PETROLEUM INSTITUTE:
Crude oil
Dates shown in first column
Latest
,,
tons)
production and other figures for the
cover
Yea*
Ago
*86.5
on
45
34,820,000
38,230,000
2,194,000
2,324,000
2,197,000
5,240,491
5,107,768
5,630,500
37,700.000
(BUREAU OF MINES)—r-Month of Nov.:
Production
coke
Oven
Beehive
Oven
tons)
(net tons)
(net
5,176,712
63,779
tons)
(net
CONSUMER
PRICE
INDEX
—
(net tons)
1917-49
=
5,046,197
61,571
90,000
3,881,550
3,896,260
2,963,062
123.7
coke
coke stock at end of month
123.9
121.6
5,540,500
108—
'
Feb. 24
Baa
4.89
4.89
4.88
4.65
Railroad
a.1
.
Feb. 24
4.47.
4.40
4.52
4.27
Public
Feb. 24
4.44
4.46
4.46
3.86
Feb. 24
4.32
4.32
4.29
.Feb. 24
382.5
382.4
885.0
396.9
Industrials
Group
MOODY'S COMMODITY INDEX
NATIONAL PAPEBBOAED
Orders received
of
Feb. 14
289,084
345,179
269,666
310,348
298,371
305,778
7
93
:
j
409,012
431.72?
379,895
373,522
Fruits
Feb. 20
110.70
110.10
111.55
Gas
,
j >V
Short sales
Jan. 31
Other sales
•
•;
k
.
2,770,520
409,290
Jan. 31
2,365,440
—Jan. 31
sales
lotal
2,774,730
2,749,880
442,720
2,235.550
2,678,270
2,275,860
1,327,890
352,000
v'
;
r
-;
1,927,030
1,327,640
1
—Jan. 31
542.440
545,690
425,310
346,640
sales
-Jan. 31
44,600
42,200
35,600
Other sales
sales
'
—Jan. 31
Total
384,440
349,720
510,540
420,040
379,240
770,670
106,770
115,020
130,840
130,620
Jan. 31
964,226
1,035,970
705,307
637,415
768,035
-
sales
Total
772,710
Jan.31
————Jan. 31
sales
Other sales
-
468,340
568,780
floor-
purchases
Short
y
Initiated off the
524,180
-Jan. 31
Total
Other transactions
846,223
435,037
-Jan. 31
1,070,996
1,150,990
836,147
purchases
-Jan. 31
4,083,630
4,141,793
3,473,880
2.109,567
sales
-Jan. 31
560,660
599,940
518,440
428,890
Other sales
-Jan. 31
3,853,866
4,414,506
3,739,860
3,016,777
2,046,025
4,339,800
3,535,217
2.474,915
Short
Total
sales
-Jan. 31
DEALERS
EXCHANGE
—
AND
of
v
2,019,354
2,233,610
1,553,248
1,128,809
$102,617,671
$110,987,325
$83,646,908
$49,083,683
-Jan. 31
1,715,674
1,877,342
7,136
5,816
1,436,963
5,683
879,804
.Jan. 31
Jan.31
1,708,538
1,871,526
1,431,280
value.
.Jan. 31
sales
$86,131,861
$92,799,000
$71,023,101
$37,945,510
Man. 31
466,120
469,310
409,010
250,160
466,120
469,310
409,010
250,160
Round-lot purchases
Number of shares
by dealers—
.Jan. 31
744,010
827,560
530,290
504,600
FOR ACCOUNT OF MEMBERS
Total round-lot sales—
Short
Other
(SHARES):
'
108.4
108.5
109.5
100.2
.100.6
100.1
130.4
130.3
129.1
92.3
92.3
92.3
144.3
144.5
138.9
Public
133.3
133.6
182.4
Private
191.8
and
boys'.
and
girls'——
Footwear
Other
apparel
Transportation
Medical
—
goods
and
140.8
127.0
117.0
114.6
127.3
—
128.6
147.0
129.1
116.9
services
191.1
147.3
care
Reading and recreation..,
Other
104.9
129.0
care
Personal
127.3
126.8
DEPARTMENT STORE
SALES—FEDERAL RE¬
SERVE SYSTEM—1917-49 Average = 100of
January:
Adjusted lor seasonal variation__
137
*144
130
Without seasonal
106
*252
100
adjustment
EDISON ELECTRIC INSTITUTE—
Kilowatt-hour
of
sales
to
November
ultimate
customers—
(QOO's omitted)____
13,081
48,223,056
46,041,836
00,000
$821,372,000
$773,505,000
24,408
56.014,065
143
142
133
142
140
132
62.3
65.3
67.9
$32,036,000
$31,386,000
$31,661,000
WEIGHTED AVERAGE YIELD
OF
COMMON STOCKS—Month of Jan.:
Industrials (125)
3.21
3.17
4.40
4.54
4.60
6.80
3.89
3.87
4.64
3.92
4.00
4.93
3.16
from ultimate
customers—month
of
of
ultimate customers at Nov.
30:
-
55,092,196
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS
OF
Seasonally
FEDERAL
THE
=
RESERVE
J00—Month
of
Jan.:
adjusted
Unadjusted
INTERSTATE
of
COMMERCE
COMMISSION—
Railway Employment
January
(1947-49
=
at
middle
of
100)
sales
Total
—-—__.Jan. 31
697,830
704,390
629.810
774,230
—
—Jan. 3)
19,323,890
19,592,360
14,917,080
10,684,080
Jan. 31
—
sales
PRICES, NEW SERIES
LABOR — (1947-49 == 100):
20.021,720
20,296,750
15,546,890
11,458,310
U. S. DEPT. OP
119.4
119.4
119.6
119.1
Feb. 17
91.0
91.1
92.3
96.9
Feb. 17
foods
(000's omitted)
MOODY'S
Banks
(25)
(not incl.
107.8
107.9
109.2
109.5
Insurance
Average
Tel.
Tel.)
(24)
RAILROAD
2.51
IN
GREAT
BANK LTD.—Month
EARNINGS
SOCIATION
OF
CLASS
AMERICAN
I
2.54
3.36
3.34
4.56
£41,888,000
;
ISSUES
£8,635,000
£24,611,000
$836,828,096
BRITAIN
ol
Jan
ROADS
(AS¬
RIts.)—Month
December:
Feb. 17
Meats
&
(10)
(200)
CAPITAL
of
Amer.
(15)
MIDLAND
Feb. 17
commodities
Farm products
Processed
As of Nov. 30
NEW
Commodity Group—
All
MONEY IN CIRCULATION—TREASURY DEPT.
Utilities
•
sales
WHOLESALE
7
129.6
107.6
100
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
,
136.7
.Jan. 31
Other sales
Short
,
138.3
103.5
Index
shares—Total sales.
of
114.3
135.8
;
107.7
—
860,308
•Jan. 31
19,496
Round-lot sales by dealers—
Number
127.0
138.4
132.6
SYSTEM—1947 -49
short sales
Customers' other sales
Dollar
128.0
118.1
Railroads
.Jan. 31
Odd-lot purchases by dealers (customers' sales)Number of orders—Customers' total sales
;f
113.7
137.0
oil
100.1
101.0
103.3
102.7
Total
revenues
127.6
127.6
127.4
operating
Feb.17
125.8
Total
operating
expenses
L
commodities other than farm and foods.
(^Includes 994,000 barrels of foreign crude runs.
SBased on new annual capacity of 147,633,670 tons
as of Jan. 1,
1959, as against Jan. 1, 1958 basis of 140.742,570 tons.
^Number of orders not reported since introduction of
Monthly-Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-lialf cent a pound.
**As reported by National Coal Association.
•Revised
figure.
■
$809,534,673
$825,863,829
656,015,960
623,805,871
Taxes
All
683,569,046
79,026,045
82,006,668
Net
77,545,191
80,186,624
56,632,071
89,000,000
62,000,000
75,000,000
Net
*
114.9
103.6
Number
(customers' purchases)—t
shares
-Customers'
fuel
and
November
.Jan. 31
Number
113.6
114.6
113.9
■
107.5
Revenue
SPECIALISTS ON N. Y. STOCK
EXCHANGE COMMISSION:
SECURITIES
Odd-lot sales by dealers
112.6
132.0
Month
■TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
114.5
121.1
118.2
electricity
fuels
Month
Total round-lot transactions for account of members—
Total
and
Women's
29,520
—
100)
=
116.1
138.7
Men's
1,058,890
2,279,030
purchases
Short
(Jan. 1953
Apparel
268,750
other transactions initiated on the floor—
Total
114.3
Housefurnishings
Household operation
Transactions
31
106.0
128.2
Solid
of specialists in stocks in which registered—
Total purchases
—Jan.
113.5
110.7
home
at
Food away from home
109.19
131.8
120.1
vegetables
Rent
100
114.3
134.0
113.0
Housing
TRANSACTIONS FOR ACCOUNT OF MEM¬
bers, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
\
and
foods
119.4
117.6
134.0
bakery products
Other
ROUND-LOT
r;.
and
Dairy products
86
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
..
118.7
116.8
home
Cereal
259,233
94
Feb. 14
j)j Unfilled orders (tons) at end of period
=
-
Food at
238,539
Feb. 14
Feb. 14
activity
I94y AVERAGE
of December:
items
Food
Meats, poultry and fish
(tons)
Percentage
All
ASSOCIATION:
(tons).
Production
!
Month
3.85
Group.
Utilities Group—
:
railway operating income before charges
income after charges (estimated)
."Revised.
SDecrease all stocks (barrels).
57,711,335
•
The Commercial and Financial Chronicle
46
Thursday, February 26, 1959
.
.
Mutual Funds
ited; and Maxwell C. G. Meighen,
President
of
Canadian
General
By ROBERT R. RICH
Limited.
Investments
iiave
New Canadian
extensive experience
selection
and
supervision
Vance, Sanders & Company, in
United States, headquartered
Operation
Limited, a new
fund
investing in the common
stocks of leading Canadian and
U.
S.
business corporations, on
Feb. 25 commenced operation as
Canada
end company following
successful $7,500,000 underwrit¬
an
open
which
sold
are
dealers
ment
many
mutual
of
sponsor
of
mutual
Fund
American
Ncrth
The
fund
through
in
U.
the
Vice
Isaacs,
Boston, is the oldest and largest
Board
shares
-
Trustees
of
of
Trust,
Investors
setts
invest¬
S. and
Kenneth L.
Chairman
of the
Company;
Insurance
the
in
such
includes
leading U. S. investment men as
O. Kelley Anderson, President of
the
New
England
Mutual Life
vestments in both countries."
Fund Now in
also
Board
The
in the
of in¬
Massachu¬
oldest and
largest mutual fund in the U. S.;
William
F.
Morton, Vice-Presi¬
foreign countries. Net assets
Funds in the Vance, dent of the State Street Investment
the five
of
are in excess of
Included in the group
Corporation; and Henry T. Vance,
President of
Boston Fund.
Mr.
is
Canada General Fund Limited,
a
Canadian
Shelley is also President of Can¬
ada General Fund and Vice-Presi¬
Sanders
group
$2 billion.
investment
company
Canadian
economy/-~
Shares of North American
Fund
,
f."A
being offered on a con¬
tinuous basis through authorized
investment
dealers
throughout
Canada under the sponsorship of
now
are
Sanders
Vance,
of
Company
&
Canada.
Shelley, President of
Fund, said the
William F.
Fund will
be
bulwarked
by
"strong sponsorship and a unique
management
setup
featuring
a
Board of Directors that is made up
of
also
is
the
investment
companies amounted to over $13
billion and shareholder, accounts
had increased to over 3.6 million.
ad¬
We believe that the popularity of
million Boston
mutual funds among investors in
Fund, a U. S. mutual fund invest¬
Canada is on the threshold of a
ing in U. S. securities, and to the
similar pattern ol' growth."
;
abovementioned Canada General
Mr. Shelley explained that the
Fund Limited.
viser
the
to
$200
American
North
new
firm
leading
Canadian
and
U.
S.
business and investment men who
A MUTUAL'
INVESTMENT
FUND
North
One
work
Htlicnal
Boston
of
Management
see:k;
will
Fund
long-term growth of principal and
income by investing in a crosssection of companies in leading
industries with promising growth
Company,
&
Mr.
tive
basis.
The
Fuller, President of The Sha-
winigan Water and Power Com¬
Mividutd Sctieit
American
pany;
will include
portfolio
reasonable amount
a
of stocks of U.
Major-Gen. A. Bruce Mat¬
Fund's
S. companies with
:
Fund Rises 40%
In Year 1958
National Dividend Series
^
consecutive
shows
are
objectives ol this Fund
possible long-term capital and
growth for its shareholders.
upon
request
,
stated
EATON & HOWARD
New York
—
Chicago
—
Atlanta
—
to
din g to Mr.
Shelley, President of Canada Gen¬
$105,000,000,
eral
a c c o r
Fund, Limited.
*
of Dec. 31, 1958, .a total of
As
128,867 U. S. investors held shares
a total net asset value
Incorporated*^;
Share Value
Up
42% in 1958
shares with
derived
continuous
from
reten¬
tion and reinvestment of their in¬
vestment
net
-7,•"7f vy. ,;,f '7; V; '• *v■
during 1958 stockholders are tbld
in its Thirty-third Annual Report.
in
creased
.0vu®
gto
year was
On
holders
31, 1958, stock¬
informed, In¬
Investors'
total
net
were
corporated
also
assets stood at $306,877,908 shares
at
outstanding
stockholders
at
31,677,586,
and
66,170,t all record
' :
year-end highs.
[
Summarizing the basic reasons
for substantial new commitments
^
f
ity; and steel industries, Chairman
investor-purchases
William A.
responsible for
about;
total
net
assets,
approximately 88%
while
Parker and President
Charles Devens,
state in the Letter
Stockholders:
intensive
"The
research in the ethical drug indus¬
continues to bring about a
flow of new products to a waiting
try
and
of the year's
responsive market/The public
serve
rapidly ^expanding
utilities
reflected
growth
the
market
appreciation
of
values
in
broad
a
range
of
securities
of
enterprise
eco¬
territories. The
The
possible
compound
ers
by
in¬
dustry
—
which.. demonstrated
great inner strength during the
recession in its ability to show
development of
profits
eight Canadian investment
—
life insurance
dustry, which fills a basic human
need, is expanding at a rate faster
than the economy. The steel in¬
even
half capacity
when operating at
should remain the
—
backbone for continued industrial
long-
expansion."
Purchases
•
_
in
the
last
three
re-investing their net in-
Interested
CUSTODIAN
^OCjf
In
FUNDS
s4es';d %%
ATOMIC
FOUNDED
*>
Find out
}c'Pal
now
about this series of Mutual Funds
vestment in American
Prospectuses available from
Investment Dealer
117
seeking possible growth and income through in¬
'ncom e.
or
EATON & HOWARD, Incorporated
24 Federal St., Boston 10, Mass.
industry.
BOND SERIES
COMMON STOCK SERIES
INCOME SERIES
UTILITIES SERIES
Address
th
We will be
PREFERRED STOCK SERIES
Development Mutual Fund, Joe.This
more than 75 holdings*!
fund has
quarterly dividend
Ilea
share
FRANKLIN CUSTODIAN
64 Wall Street
•
FUNDS, INC.
New York 5,' N. Y.
March
from
stocks selected from among those
net
payable
31, 1959 to stock of
6, 1959.
growth in principal and income.
Atomic
"
WALTER L: MORGAN
President
companies active in the atomic
objective of possible
field with the
income,
record March
glad to send you a*ree
prospectus describing Atomic
of
.
□ STOCK FUND
Name
1928
consecutive
investment
□ BALANCED FUND
the equivalent of $9.96.
December
FRANKLIN
rioc^P
of P
o^e\r\c
:E£)H
your
value
per
share in¬
during 1958 from $7.01 to
$9.69, which figure adjusted for a
$0.27 capital gain paid during the
term benefits for their sharehold¬
on
asset
Net
to
were
per
recession
from
new
'|f
share
increased
42%
value
asset
lb
':
Incorporated Investors
.
"Capital additions through $12,-
type
Get the facts
re¬
during Canada's * made in 1958 in the ethical drug,
to
re¬
life insurance, growth/public util¬
income
companies—all of the mutual fund
bku®
National's investment
■M
than
S. investors rose more
U.
Canada."
Los Angeles
that
Canadians companies
qualified for sale
registered
nomic growth and
Lord, Abbett & Co.
on
$61,024,662 to $103,379f638, shaies
outstanding from 20,951,"438 to 25,-.
481,438 and shareowners from 46,970 to 49,894. • *>•: "
' '
"I %
In his message to shareowners,
president Henry J. Simonson, Jr., ■
whose shares are
contributing to the long-term
CONSIDER.
$2.91
staff believes that the business
Companies
income
Prospectus
pay¬
reported.
v.j
...
:;,i covery currently underway4 will
During 1958 total net assets un¬ continue at a good—but not fa
'
'V r r
der
management J of - the ! eight boom—rate in 1959.
crease
Stock Investment Fund
Investment
dividend
that asset walue ;per
share had increased from
12% of the year's $105,000,000 in¬
Fund
Broadway, New York 5, N. Y.
report
accompanying the
to shareowners
Established 1930
120
f
DlVUleilU
Holdings
Investment
Canadian
in 1958
A Common
_.i
#
Dec. 31, 1957 to $4.06 on Dec. 31,
f!958, a gain of 40%.
During the same period; total
assets of the fund, .sponsored and
managed by National Securities &
re-- Ttesearch Corporation, -went from
Increase
865,148 of
YOUR INVESTMENT DEALER OR
RESEARCH CORPORATION
S
ment
covery.
FREE INFORMATION
NATIONAL SECURITIES &
.
54th
transition
WRITE FOR
FOLDER AND PROSPECTUS TO
..
•
J>|atlOIiaI
Shelley
of
$393,725,525, or a per capita
explained, is that Canadian in¬
potentials.
"These
investments
average of $3,055 each. This com¬
vestment holdings are analyzed in
will be made in Canadian com¬
pares with a total of 127,399 in¬
the light of similar investments
panies
whose
fundamental vestors holding shares with total
in the U. S.
Each research spe¬
strengths, values and
resources net
asset
value
of
$288,701,702,
cialist now studies and follows the
can
be
expected to reflect the
representing
average
individual
same industries in both countries,
over-all growth of business and
investments of $2,266 each at the
he added.
the development of the country's
end of 1957.
'
/
I, '
North American Fund's invest¬ rich natural resources," he added.
"It is significant," Mr. Shelley
ment policies are directed by the
The new Fund, he pointed out,
pointed out, "that the bulk ol the
Board
of
Directors
of
which
will also provide Canadian inves¬ 1958 increase in the assets of the
George M. Hobart of Montreal,
tors with a means of participating Canadian companies
represented
President of Consolidated Paper
Corporation Limited, is Chairman. in the ownership of U. S. com¬ improvement" in market prices of
the securities which they hold and
Other prominent Canadians on
panies on a diversified and selec¬ the cumulative
long-term benefits
the new Fund's Board are: John
Research
A.
.
unique benefit which "North
the
American Fund derives from
:
.mT
Canadian Funds
151 U. S.
end of 1958 the assets of
Company for the performance of
basic research, and analysis work
for
the new Fund.
The Boston
-
'•
This
policy
contributed
sub¬
stantially to growth of the Cana¬
dian companies' assets during the
past year, it was pointed out. V
U. S. Investors
dent and Director of Boston
investing in securities of Canadian
corporations and owned by some
it
' j
'■
come.
Fund.
In
"We are convinced that a great
The initial offering of the new
future exists in the Canadian in¬
As the Canadian • economy
Fund's, shares, which is approxi¬ 35,000 U. S. investors. Total assets
market -for
mutual sumed its upward trend in 1958, <
this
company
are
approxi¬ vestment
mately the equivalent of a $75 of
funds," Mr. Shelley said.
average
per
capita ^holdings of
million underwriting in the U. S., mately $100,000,000.
"Just 10 years ago at the end U.
S.
citizens in4 -eight publicly
North American Fund is man¬
was the first undertaken by lead¬
of 1948, total net assets of 87 U. S. owned Canadian investment com¬
ing investment dealers in Canada. aged by North American Fund
mutual funds stood at $1.5 billion panies rose substantially during
The
syndicate was headed by Management and Securities Lim¬
and
shareholder accounts : num¬ the year, William F;: Shelley, co- *
Wood, Gundy & Company, Lim¬ ited, which has a contract with
bered 722,118" he "said.- "At the chairman
of The
Committee of
Boston Management & Research
ited.
f
ing-
distributing
in the form of taxable current in¬
plained, is designed to constitute
some part of the equity portion
of an investor's long-term invest¬
ment
program
and
while,
°f
course, the shares will fluctuate
in value, the long-term history of
common
stock. price movements
shows that stocks provide both a
desirable hedge agdiri'st inflation
and a productive participation in
the long-term growth of the dy¬
namic
than
rather
come
promising prospects for long-term
growth and which will comple¬
able Ray Lawson, Director of The ment by their nature the Fund's
Great Lakes Paper Company and holdings of Canadian stocks.
North American Fund, he ex¬
Traders Finance Corporation Lim¬
thews, President of The Excelsior
Life Assurance Company; Honor¬
a
.
(1014)
1
-
■
Development Securities Conine. Dept
1033 THIRTIETH STREET, N.W.
WASHINGTON 7, D, C
Volume
189
Number 5824
\
The Commercial and Financial Chronicle
.
.
(1015)
months of 1958
were Air Products,
P. Lorillard Com¬
Philips Incandescent Lamp
Works; Reliance Electric and~En¬
gineering
Company;
Southern
Named Director
"-v
Incorporated;
The election
pany;
Company;
and
and Power
Company.
cobs, Jr.,
Electric
Company, Hull, Quebec,
has be^ri announced by the com¬
~
pany.
Virginia
.
-Mr.
Company of America;
Aluminum
ited; -Canadian
Martin
Oil,
"
«'
-On
February 25.
and^a
closed-end
a
is
also
—
Edward Tempel
a
of Abacus
DIVIDEND
UTILITIES
DIVIDEND NOTICES
COMPANY
NOTICES
investment
director
of
DIVIDEND-
Pullman
The
-
*
per
TENNESSEE
...
cents
share
per
on
Preferred
the
Stock
93rd Consecutive
STEEL
March
"*
Jl,
P.
■
Secretary
On
of Directors
,,fj,The Board of Directors has declared a
/"dividend of 25 cents per share en the
10,020,000 shares of the Company's cap-
ffi jtal stock outstanding and entitled to re¬
ceive dividends, payable March 16, 1959,■
to stockholders of record at the close of
a
(75^)
March
on
common
share will be
per
of
14,
1959,
record
close
/
February 20, 1959
pany
the
Street,
Board
of
New
February
on
York
Directors
18.
this
1959,
'.
•
1
61
CIIAMP CARRY
Y.
share
Scries
the
on
the
New York 6,
President
Cumulative
Preferred
payable
company
Treasurer.
UNITED GAS
1
to
stockholders
of
business
on
of
at
record
March
1/.
the
a
The Board of Directors
1
"
.
Dividend
of ONE DOLLAR
Share has been declared
on
The Board
the
KENNECOTT COPPER
CORPORATION
payable April 1, 1959, to stock¬
holders of record at the close of
JOHN A.
Vice-President
KENNEDY.
and
business
Secretary
on
March 16,
161
1959. The
February 20, 1959
stock transfer books of the Com¬
a
j.
pany
;
Hervey
I"
the
At
will not be closed.
meeting, of
poration
Sec'y.
held today,
tribution
J. Osborn
Exec. Vice Pres. &
of
declared,
i
A'x
n
:
J
DIVIDEND
A
NO.
l
97
has
cents
today been
March
23,
B.
March
on
y,%~.;r.TyV
JESSUP,
■,;
,
•
3,
R0BERTSHAW-FULTON
CONTROLS COMPANY
Richmond, Vo.
Secretary
PREFERRED STOCK
A
regular
per
The
March
the close of business
,/
on
March
6,
v'|;
•
'
February 20, 1959.
y
*
A.
R.
BERGEN-'
J
Secretary/'
Directors of International
par
MERCK & CO., INC.
Harvester
1959, to stockholders of record
1959..
quarterly
share has been de¬
clared
on
Company have declared
quarterly dividend No. 176 of fifty
cents (50^) per share on the common
stock, payable April 15, 1959, to
stockholders of record at
:>f business
Jv
-
on
on
stockholders
close
of
of
record
business
at
on
March 10, 1959.
on
the $25.00
value 5
percent
Cumulative
Con¬
vertible
March
^ ■^Quarterly dividends
MERCKRof 35(;
GERARD J. EGER, Secretary
K
Hp the
the
share
a
stock
87Vz$
stock
business
have
pre¬
been
de¬
COMMON
A regular
payable
April
on
1,
1959, to stockholders of record
the close of business March
13,
holders of record at the close of business
March
10, 1959. The transfer books will
not be closed.
Secretary
February 18, 1959
HOME AND
Secretary
INDUSTRY
WITH ESSENTIAL BASIC PRODUCTS
EASTERN
GAS
FUEL
ASSOCIATES
SUNDSTRAND
MACHINE TOOL CO.
DIVIDENDS
COMMON
STOCK
A
regular
quarterly dividend of 40 cents
share, payable March 28,
•
—
a
DIVIDEND NOTICE
1959 to shareholders of record
The Board of Directors de¬
March 2, 1959.
clared
4 Z*%
CUMULATIVE
PREFERRED
A regular
quarterly
dividend of $1.12*4 a share,
payable April 1, 1959 to share¬
—
holders
of
record
March
2,
1959.
E. H.
250 Stuart
per
Common
payable March 20, 1959 to stock¬
Anderson,
February 24, 1959
STOCK
10,
JAMES A. WITT
Carl M.
AND
of
STOCK
quarterly dividend of 37J4c
1959.
SERVING
March
share has been declared on the
Stock
clared,
1959
1959.
MR .CONTROLS
share
a
$3.50 cumulative
ferred
at
20,
stockholders
record at the close of
on
common
and
on
payable
to
f
March 13, 1959.
Preferred
Stock,
RAIIWAV, N. J.
the close
BIRD, President
St., Boston 16, Mass.
a
regular quarterly
dividend of 2 5p per share on
the common stock, pay¬
able March
shareholders
20,
of
record
G. J. LANDSTROM
Vice
President-Secretary
Rockford, Illinois
Symbol is EFU.-
1959, to
March 10, 1959.
February 19, 1959
Our stock is listed on the
New York Stock Exchange.
Secretary
(
COMPANY
of
Corporation, payable
at
,
on
dividend of $0.34375
on
common
share
February 25,1959
per
stock
outstanding
this
I
(5c)
declared
the
31,
PAUL
INTERNATIONAL
I
■
.
(373^)
the Common
Stock of the Corporation,
payable April 1,. 1959, to
per
B. M. Byrd
was
a
HARVESTER
dividend of five
share
*•
"
Cbr/>omfi'oti
"
:
a
thirty-seven
and one-half cents
the
Shroads
declared'
date
dis¬
share
payable
1959.
•r';
t
cash
per
$1.50
the close of business
CQa\mercial Solvents
bii
pAUL e
Senior Vice President
of1
Board
1959, to stockholders of record at
.,'i j
-
the
a
on
25,1959,
this
Directors of Kennecott Copper Cor¬
'II*' I'
1
East42dStreet,NewYork,N.Y.
has
dividend of
of Directors at
February 16, 1959,
declared a quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
payable March 12, 1959, to
stockholders of record February
meeting
.capital stock of this Company,
close
LOUISIANA
Dividend Notice
^ TRAILM0BILE
of
1959,'
1959.*•
20,
*
CORPORATION
DIVIDEND NO. 179
A- dividend
SVsfl%-
Stock
April
J
N. Y.
117th Consecutive
declared
outstanding
v;
;
com\
regular quarterly dividend of $1:375
per
„.
John G. Greenburgh
Broadway
company
V»
N.
4,
of
„.
rec¬
March 5, 1959.
2, 1959.
International Salt
Broad
Secretary
■
.
CITY INVESTING COMPANY
25
rec¬
business-
D.W.JACK
,
BHREVEPORT,
The
of
ord at the close of business
to
March
'.
the
at
-
■-.Secretary:
'
••
the Common Stock-
Vice President- -Finance
f. vanderstucken, jr.,
"Vvo-
on
...
R. A. Yoder
*•'>/;
-
voted
1959, to stockholders of
cents
stockholders
1959, to stockholders of record
at the close of business March
4, 1959..
V
•
.
■
today
Company, payable April;
per
declared
paid
January 23, 1959, the Board
stock dividend of 12V2 cents per
share payable in cash March 17,
TEXAS GULF SULPHURCOMPANY
,';;iwrbusiness March 2; 1959.,;
Directors
dividend of 44 cents*
March 3, 1959.
fifty-five
share was
payable March 25,
cents
five
COMMON STOCK DIVIDEND NO. 116
ord
of
dividend
A
(55c)
A quarterly dividend of seventy-
NEUMANN,
1
;-""e.
Year of
CORPORATION
1959.
J.
share
of the
February 17, 1959
—
Quarterly Cash Dividends
,
business
390th Dividend
—
DETROIT
quarterly
a
a
NOTICE
1, 1959 to stockholders of
Y.
40 cents per share on the
Stcca, w .To d
..a,
stockholders of record at the close of
Common
■<:ie
1959,
of
Board
declared
CORPORATION
dividend ol
x>P 4:;3j
V195yi;: to
.
LODI, Calif.
fINNiSSIl CORPORATION
N-
•*
,
has joined the staff of Hannaford
«
1
—
*
—
& Talbot, 5 School Street.
GEORGE W. HELME COMPANY
o r
■jf
Co., Pioneer-Endicott
Arcade.
DIVIDEND NOTICES
^•Jj® >Rockefeller Plaza, New York 20, N.
.y
Investment
DIVIDEND NOTICES
Hannaford, Talbot
(Special to The Financial Chronicle)
•
DIVIDENDNOTICES
*
PAUL, Minn. — Victor F.
Stolpman is now with La Hue
Madison Fund, Inc., Government
Employees Insurance Co. and its
affiliates.
Ltd.;
.<•*-%« & '
'i
-
Jacobs, President
company,
Company.
•
,
Husky
Joins
ST.
.
Fund,
eliminated
British Aluminum Company, Lim-
j
director of Gatineau
Power
were
Securities
as a
With La Hue In v. Co.
of William K. Ja¬
47
February 17, 1959
UNITED CAS
SERVING.
THE
-
The Commercial ami Financial Chronicle
48
.
.
Thursday, February 26, 1959
.
(1036)
NY Hanseatic
BUSINESS BUZZ
on...
A
Behind-the* Scene Interpretation*
from the Nation's
*
WASHINGTON, D. C.
companies.
insurance
life
on
:) Just how much they will
5
)
mined,
indications
all
but
be
be deter-
remains to
increased
are
| the industry may expect to pay
j nearly twice what it has been
paying in recent years.
\ !
f
Obviously, th<e new impost
.
profits of the
will cut into the
The compa¬
growing industry.
have then'
they did not
expect to have them increased
as much as the House of Rep¬
resentatives voted a few days
nies have expected to
under the proposed perma¬
new formula.
''
ago
nent
.
House-passed measure is
The
pending before the Senate Fi¬
nance
Committee, which pro¬
poses to conduct hearings early
in March so that early Senate
immedi¬
floor action may follow
proposed new tax
formula is scheduled to become
retroactive
as
to
1958 taxes.
The
ately.
plans to
Senate
the
Thus,
ex¬
pedite action on the measure.
€M/
in
under
come
of
companies
are
expected to
investigation on
kinds
various
Hill during, the 86th
One thing apparently
inquiry
keen * competition
that
Capitol
,
Congress.
would be shown by any
the
is
prevails among most companies. I
show that no company
Records
line of insurance
leads in every
that it writes.
disturbed
ticularly
Frank
urer; Edward J. Busick, Control¬
ler; William P. Meyer, Assistant
Vice-President; Henry Scherping,
the
over
proposed bill before the Senate
Finance Committee, because
Assistant
they would pay the majority of
the increase. One spokeman for
sistant
the mutual group
Pritzkow
maintains that
the door for
form of sav¬
singles out the life
industry for tax V
borne by no other
opens
measure
Senate
the
and
mittee
the measure,
Finance Com¬
will
probably
like¬
do
The Treasury needs every
wise.
and
ings
insurance
penalties
Bache in
Louis
committee
a
well
very
versed
on
the general
words, he's
through and through!"
com¬
insurance
at the
At the end
provide
to
lowest possible cost.
the
of
when
year
mutual
a
has more money in the
coffers than it needs to fulfill
company
ment, and it is anxious to get
;the formula fixed as quickly as
all
scrape up
can
a
Admiral
logical
couraged, seems to lack
explanation..
taxes
surance
and
local)
times
Present life in¬
..
as
great
state
(Federal,
are
as
almost
three
the average tax
other forms of savings."
bill
for
tal
at
1959
and
gains under
flat
a
25%
di¬
marked
a
said the bill would not have any
small business
companies must always
hand large reserves for
vision between some stock com¬
panies
relative
the
to
companies
mutual
and
merits and
de¬
tax
merits of the proposed new
formula, the companies never¬
theless are anxious to get the
tax
plan
settled
to
where
see
they stand.
At this time the
companies are not quite sure
how much they are going to
owe the Treasury on their 1958
income. Nevertheless, it is estimated that under the proposed
J. 1959 insurance
company act, the
yield $540,000,000 a
will
tax
amount
would
This
year.
than $215,000,000
more
to
in excess
paying.
of what they have been
.
The
will
tax
not
growing
from
•companies
the
keep
and
prospering, barring some major
national
catastrophe.
For
in¬
the
on
payment of claims of policy¬
companies
Mr. Dawson in¬
are
now
writing
a
"family
which has proven fairly
plan"
"popular.
times
their
investment
as
n come
he:
Said
others.
i
as
is
"This
a
strange new principle in corpo¬
rate taxation."
For all
practical purposes the
new tax
measure
is
Administration measure, be¬
proposed
an
dominant
the
of
cause
role
played by the Treasury Depart¬
ment.
Nevertheless,
the
10
Republican
members
of
the
House Ways and Means Com¬
mittee sought to send the bill
back
to
committee
and
role
the
further
for
might
it
j
the economic scene,
on
Anti-Inflationary
Although
insurance
all kinds
growing. For
are
companies
the 52% corporation
that other companies pay,
companies of course pay
tax
the
instance, it is estimated that
121,000,000 people in this coun¬
other
try now have health insurance
of some kind, The Health Insur¬
Plumlev, President of the State
taxes—Federal, state and
local.
A
Mutual
from
letter
Life
effect
H.
Assurance
Ladd
Means
and
the
on
Com¬
statute
present
dealing with municipal bonds.
House members
Several
ing
discussion
of
the
bill,
assuming it
would
measure
becomes
be watched
law,
closely
very
"To
aid
in
offset
an
provides a tax
for life companies consist¬
of three parts.
They are
"free"
of
gains (or,
the
more
over
income base
treatment
available for
provided
the
three steps
13,300,000 to 16,500,000 in 1958.
to
Many individuals have asked
to
he
heard
before
the
Finance Committee.
resent
the
Senate
They rep¬
the stock companies and
mutual carriers.
The
com¬
income;
effective
1960,
and
effective
in
fully
1961,"
distributed, to shareholders, the
remaining
the "Chronicle's"
ment
income); and to the extent
gains
from
Chairman
on
under¬
Mills
own
views.\
said
Now With E. L
uted, applies only if more than
the amounts already, subjected
distributed.
that
the
be
closer
to
estimated
Hagen
(Special to The Financial Chronicle)
PORTLAND, Oreg.
—
James M.
"Also, this latter phase applies
only for 1959 and subsequent
Lynch has become affiliated with
E.
I.
Hagen
& Co., American
Bank Building. He was formerly
years," said he. "In addition, the
with Walston
day,"
said
oil
& Co., Inc.
the
$500,-
of
tentions
of
Government's
all
the
value
reserves
the
of
of
greatest
capital
taxes
in
of
insurance
forms
our
pool
world.
the
this
at
of
weight
a
The
CARL Marks
time
levy
upon
when
of savings should he
FOREIGN
Bellevue-
Hotel, preceded by
luncheon
member-guest
at
a
12
o'clock.
Feb. 27, 1959
(Milwaukee, Wis.)
Milwaukee
Club
Bond
Annual
Mar.
/
22-27,
1959
(Philadelphia,
Pa.)
Seventh
tute
annual
session
Insti¬
of Investment Banking.
TRADINC MARKETS
-
-
life
all
en-
&
no. Inc.
National Co.
Southeastern Pub. Serv.
United States Envelope
SECURITIES SPECIALISTS
20 BROAD STREET
are
long-term
To
the *
of
Stratford
Morgan Engineering
in¬
dollar.
annual
W. L. Maxson
possible
insurance
life
35th
midwinter dinner in the Grand
Indian Head Mills
sides to¬
Plumley,
"of
taking
(Philadelphia, Pa.)
Philadelphia
Botany Mills
Heywood-Wakefield
many
Mr.
Federal
York
Investment Traders Association
.
the
New
American Cement
inflation has been making upon
under the House
bill.
hear
"We
Feb. 27, 1959
rise of 105%.
a
actions to stop the inroads that
€00,000 mark than the $540,000,€00
or
ill
w
proved measure would raise the
tax too much.
They feel that
the total
estimated tax yield
should
an
of
Bowling Match.
Dinner at Pfister Hotel.
income when distrib¬
to tax under the other parts are
Association
annual
Ballroom
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
new
$4,050,000
-
In
underwriting
Philadelphia-Security Trad¬
ers
to 1961,
effective
in
tax would amount
increase from $1,975,000 to
the
House-ap¬
panies and their spokesmen
contend
says
of
1959
period
one-third
(Philadelphia, Pa.)
Traders Association
Investment
The exemption
is made effective in
over
Feb. 26, 1959
through
in
Field
Investment
is
pen¬
pany, Worcester, Mass., printed
in
the
Congressional Record,
Institute says
In
of
provided in view of the exemp¬
Com¬
the number
persons protected for major
medical expenses jumped from
ance
of
EVENTS
the
under
reserves
two-thirds
excess
operations
COMING
allocable to qualified pen¬
fund
1959,
accurately, oneof gains from
taxable invest¬
half of the
up
of $25,000.
provides for
being
investment
one-half
1956.
5% of
to
a
come
This
Co.,
&
Base, Philadelphia,, since August,
aid
sion
one.
Bache
McLean had been Com¬
mandant of the Fourth Naval Dis¬
exemption for investment in¬
investment
to? joining
trict and Commander of the Naval
special deduc¬
a
'trusteed' plans.
measure
net
to be
to
and
income
tion presently
The
Prior
Admiral
taxable
against
income
For future years it
sions
ing
full
maximum deduction
part
Views of Chairman Mills
allows
hill
tion is allowed equal to
to
ties.
by
growing
and
from underwriting
losses
free
base
the
companies
in the next year or two in order
uncover defects or inequities.
Evidently there will be inequi¬
Exchange, it was announced
Harold L. Bache, managing
partner.
separate tax
similar to
a
rate
new
investment
,
dur¬
indicated that the effects of the
the tax
-
life
the
Ways
writing.
Reserves Termed
do not pay
The facts are nearly
of
under
bill would pay
high a rate on
three
House
or
the House-passed
study
nies
bank
a
sists that some companies
play
10% greater than 1958.
majority of the compa¬
dif¬
a
on
other business.
stance, the major life companies
A great
life
reason
taxed
are
than
expect their sales in 1959 to he
about
this
For
holders.
ferent formula
Chairman Wilbur Mills of the
Bache & Co., 1510 Chestnut
Street, members of the New York
applicable to the capital
gains of other corporations.
,
investment
have
associated with the Philadel¬
Stock
that
mittee, who steered the measure
to passage, was peppered with
questions from colleagues. He
Life
is
there
While
Rear
—
of
subsequent
taxes net long-term capi¬
years
on
Companies Want Action
Pa.
Ephraim Rankin McLean
phia office of the investment firm
refund.
possible.
Philadelphia
Jr., (United States Navy, Retired),
a
pioneer in Naval Aviation, is
now
policy¬
holders it returns the unneeded
funds in the form of a premium
to
obligations
its
Assistant
an
PHILADELPHIA,
and
bore
economy
stock market transactions—in other
rep¬
life
mutual
24
"He's
York,
New
of
of
resenting
President
and
Dawson,
W.
Mutual
named
SUPPORT YOUR LOCAL 0OY SCOUT T»<*
States.
of
was
Admiral McLean Joins
H£LP FIGHT JUVENILE DELINQUENCY--
the United
business in
of
form
to meet
the bills of the Federal Govern¬
dollar it
|
Treasurer;
Treasurer of the investment firm.
holders, maintains that the sole
aim of a mutual life company is
with
and ' As-
the
tax raids on every
in
Department
Treasury
Vice-President
Samuel Gold,
Assistant
Secretary,
and
Jack
Honig, Assistant Secretary. Fred
panies with millions of policy¬
connection
Ronan
promotions: Frank J. Ronan, VicePresident; Alfred Lachhein, Treas¬
are par¬
Committee worked closely with
the
J.
<
Hit
carriers
The mutual
'i\y
/ :
j /
Mutual Carriers Hard
Chairman
and Means
Ways
House
The
JL
insurance
taxes,
but
raised,
taxes
New: York Hanseatic Corpora¬
tion, 120 Broadway, -New York
City, has announced the following
In addition to the increase
Fed¬
—
going up sharply
eral taxes are
gl
~
JljL I l/M
Capital
Corp.
Announces Promotions
TEL: HANOVER 2-0050
•
NEW YORK 5. N. Y.
TELETYPE NY 1-871
LERNER A CO.
Investment Securities
II Post Office Square, Boston
Telephone
•
lUbbard 2-1990
.
.
.
9, Mass.
Teletype
B3 09
@FedFRASER