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Li
V u K b I ' \
MICHIGAN
U IM
i
OF
H
%
eb 4
'pi
i960
p
V'
usiness
administration;
ft
Mj
4
i
ESTABLISHED
Volume
New York 7,
Number 5922
191
of influential
number
Price
President and the others who
thorough knowl¬
Rises to New High
now
are
Analysis of investment companies' portfolio operations during
December
compels
us
defensive
final
the
quarter
the stock
1959
of
averages
'
funds
(when the market averages showed a net
under
;
rose
ter.
swelled
was
factor) / >/
In
any
.-
■■ •. >
engaged
■
.
event, of all. the
.
/
,
the
lessening
of
year-end
inherent soundness and
of the oil industry
investment companies
.
.
*
Municipal
UNDERWRITERS..
j
;
7 BROKERS and.* •
DEALERS
•' : ' 7/..'••
'
r
Lester, Ryons & Co.
.
STATE
/
-'J
-
MUNICIPAL
AND
So.
.
-
/'.
'
Hope
;
Street,
Los Angeles
California
*
17,
■
,
1
"Our conviction in
growth characteristics
(Continued on page 20)
has
*
•
V
-
INDUSTRIAL
BONDS
,
'
&
new york
,
'
■
in
Ciaremont,
MEMBERS
NEW
OF NEW YORK
Company
AND AMERICAN STOCK
YORK
15 BROAD STREET,
New York 15
NEW YORK 5, N. Y.
Bond
014-1400
Sew
York
Correspondent
—
Pershing
•
•
Distributor
1
,
\
V——;
.
To
Dealers,
.
New
York
Slock
Exchange
Stock
canadian
v
1
CANADIAN
bonds & stocks
Block
Exchange
-
.
FIRST
BROAD
STREET
OIRCCT
CANADIAN
BRIDGEPORT
DALLAS
WIRES TO
MEMBERS
•
PERTH AMBOY
2
Executed On All
NEW YORK
MUNICIPAL
DEPARTMENT
MONTREAL AND
1
NORTH
BOND
Dominion Securities
1-2270
EXCHANGE
LA
DEPARTMENT
TORONTO
Corporation
Co.
MEW YORK STOCK
BROADWAY
CIVIC
IMPROVEMENT
Exchanges
Goodbody
NEW YORK 4. N. Y.
goathuxdt COMPANY
BONDS
FOR CALIFORNIA'S
Inquiries Invited
Commission Orders
Teletype. NY
25
MUNICIPAL
Banks and Brokers
Canadian
American
——
securities
1832
Members
Investment
*
Co.
Markets Maintained
Active
T. L.Watson &. Co.
ESTABLISHED
M,
BANK
&
____
:
Net
Dealer
1
IIAnover 2-6000
.
\
7,
Chase Manhattan
TELETYH NV 1*2262
CABLE: COBURNHAM
*
THE
on Southern
California Securities
Teletype: NY 1-708
Dept.
Monica
1
"
•
Inquiries Invited
EXCHANGES
•
Bond Department,,
*-
Riverside, San Diego, Santa Ana,
Santa
30 Broad Street
*
■>
.
THE FIRST NATIONAL CITY BANK
and
Mar,
Oceanside, Pasadena, Pomona, Redlands,
SECURITIES
Burnham
del
Corona
Enc'iho, Glendale, Hollywood, Long Beach,
FOREIGN
company
BOND DEPARTMENT
: \
Notes
Members Pacific Coast Exchange'
Offices
PUBLIC UTILITY
'
Agency
Associate Member American Stock Exchange
RAILROAD
7/AUV,
|(,
l|"
Housing
Bonds and
Members New York Stock Exchange
chemical bank
Underwriter
the
and
Slate,
t
/
\
.
in
Hettinger
Messrs.
Mansfield of the Lazard Fund:
the
attending
noted
be
and Public
HAnovcr 2-3700
trust
Said
..
"TT*';:-:Securities"J,;',;:,'^:":
\
to
was
M
[Public Housing, 5
telephone:
added to the
so
previously
gloom
oils
quarter.
U. S. Government,.
State and
the
much-harassed
Midwinter Dinner of the
of Chicago, Inc., appear in today's Pictorial Section.
Traders Association
was
Re-Appraisal of the Oils
by
..
some
short-selling activities,
position by 30% during the quar¬
in
General Portland Cement
A
net liquidation by
several large funds
(in some of which calls for
redemption of their own shares may have been a
acquisitions
Net Sellers
bearish sector of the portfolio.
attitude, with their net purchases of
stocks declining by 27%. This decline in
common
equities included the
buyers of
reduced its short
ISSUE—Candid photos taken at the Annual
THIS
IN
partly
common
and large, showed a more
funds, by
Stock Buyers
net
Investors, State Street, General American Inves¬
tors, Lazard, and U. S. & Foreign. The latter closedend company, along with American Business Shares
and Group Securities Fully Administered Fund,
completely abstained from equities buying.
Oppenheimer Fund, one of the very few funds
from 8 to 18,
stock
The
contingent
Axe funds, Investors
restrained
.
Security
of
buyers
net
review,
our
stand-off
to 9.
commons were Boston
Fund, Commonwealth Investment, Eaton & How¬
ard
Balanced, Affiliated, Fidelity, Incorporated
while net sellers fell from
18 to* 10* (stand-offs totaled 3 against 5 manage¬
ments during the preceding quarter.)
stocks
15
;
year, the funds, generally stepped up their
holdings of equities.; .Evidencing the switch from
their defensiveness .during the September quarter
in
%
by industry groups.]
Among the net sellers of
of the
said
PICTURES
i
common
Mutual, Putnam Fund, the
3 Value Dine funds, Wellington Fund, Chemical
Fund, Dreyfus,! Eaton & Howard Stock Fund,
Fundamental, Investment Co. of America, MIT,
MIT Growth, National Investors, Selected Ameri¬
can, United Accumulative, United Income, United
Science, Niagara Share, and Lehman Corporation.
a
general, not to say vague, terms, so;
always easy to know precisely what is irf
the mind of the official making them, but certainly it is
difficult to reconcile some of the things that are being
case. It is simply, so we are told, total output divided
by hours worked by all men and women who are paid
wages to help produce the prod(Continued on page 27)
4
further :
rather
the
individual
cautious
The
25.
to
.
net-gain of 8%; and bonds sagged
(Governments by 2.6% , and others by
about 1%). In this atmosphere wherein the stock
market was rising to a new high reached on Dec. 31,
followed by its all-time peak right after ihe uirn
registered
29
Substantial
Telephone, and Youngstown
that it is not
many if not most school-boys could give a flip
which would accord with the superficialities of
and
transactions;
stock transactions
declined from
of foreign issues tempered by profit-taking.
Sheet. Popularity
In
predominated
Selling
paper.
.
American Airlines, General
were
to include the President himself and some
probably
*
from
rin agricultural
equipment, airlines, steels, and in most aluminum issues.
Most popular issues were international Nickel, Du Pont, Ford,
GM, GE, and Royal Dutch, Most widely, liquidated issues
and
nickel,
,
Washington—and have been for a good while
past—with ahy rational view of the role and ^require¬
ments of "productivity."
What is this thing they call "productivity," anyhow?
-Well, the term has been so much employed of late that
common
under, review, the net buyers of common stocks
gained from 41 to 52, while net sellers declined
chemicals, electronics, glass,
decline),'
the balanced funds,;!with their greater freedom of
action, returned to the buying side. .Whereas in
the third quarter theyjhad sold 38% more than they
bought, they followed this with a sharp reversal
to a purchasing excess of 83%.
Of the balanced
in
securities
,
policies of the September quarter, Favored
industries included autos, banks,
those who need to come to grips
with this question of "productivity" and its relation to
wage demands and prices that manufacturers ask for
their wares. Of course, official utterances are usually'
com'
stock and
total
'
other
quarter's rising stock market discloses stepped«up
21 and 26 show Fund's
pages
post ions;
buying of common stocks, with the balanced funds reversing
their
of his advisers among
on
parative investment
insistent that the
.
r Tables appearing
By A. Wilfred May
general public gain a better; knowledge and understand¬
ing of these matters.
.
*
Careful scrutiny of much that is being said on the sub¬
ject at the present time must, however, lead to the con¬
clusion that education on this subject should begin with
the educators, or so it seems to us, begin, that is, with
the individuals and officials in places of responsibility
and influence with the rank and file of the people. Can¬
*
Copy
a
*
tivity figures—such as we have—and we are accordingly
quite glad to add our endorsement to the words of the
answer
Cents
i
edge of the meaning of -'productivity" and its relation to;
such things as prices and wages. The President has of
late been quite emphatic about it, and so have some
other highly placed political figures. Needless to say,
we feel a great deal of sympathy for this viewpoint. We,
in our humble way, have often bemoaned the fact that::
so
much unwarranted use was being made of produc¬
couched
50
figures have >of. late attached;
great importance to a wider and more
dor
N. Y., Thursday, February 4, 1960
AS WE SEE IT
EJUonal
A
Reg. U. S.Pat. Office
1839
^
40
J
1
...
Exchange Place, New York 5, N. Y.
SALLE ST.
CHICAGO
Teletype NY 1-702-3
WHHehall 4-8161
Bank
of
America
N. T. & S. A.
San Francisco
Los Angeles
■
<c
2
For Banks,
Brokers, Dealers only
If it's Over-the-Counter
The
Security I Like Best...
A continuous forum in which, each
in the investment and
be
can
heating customers are ex¬
pected also to increase consider¬
ably as, in most rural areas, pro¬
pane can compete price-wise with
a
fuel oil-hydro electric combi¬
Toronto, Canada
Experience
Members Montreal and Canadian
Stock Exchanges
In
Superior Propane Limited
States, European
and
Canadian
markets, a specialist in Canadian
securities
must
be
particularly
discriminating
New York Hanseatic
when
ing
Corporation
for
Stock
BOSTON
•
CHICAGO
PHILADELPHIA
•
SAN FRANCISCO
Private Wires to Principal Cities
than
the
S. WEINBERG,
GROSSMAN
T.
Security
ing
look
Odd Lots
(Active and Inactive Issues)
40
Exchange Place, New York 5
Phone:
WHitehall
David B. Gill
now.
Fortunately,
there
situations
and
those
who
excellent example is
an
Superior
Propane
Limited,
the
largest
propane
distributor
in
Eastern Canada,
whose common
share earnings can be
expected to
double
in
the
should
twice
years.
industry in Canada
continue to
the
five
next
The propane
3-7830
Teletype No. NY 1-2762
always
are
for
rate
of
at about
grow
the
industry in
the U. S.
Cie. Financiere de Suez
(Formerly Suez Canal Co.)
A
Study
and close to three times
the rate of the Canadian
economy
as
a
whole.
This is a result of
a
colder climate,
lower
on
request)
Canadian
than
Members:
their
Broadway, New York 6
Telephone: Dlgby 4'4100
Canada, the world's second larg¬
est
has
nation,
resources.
lation
Its
popu¬
constantly expanding.
are
Nesbitt,
pany,
untapped
industry and
Thomson
Inc., through
Com¬
and
a
network of
offices in Canada, the U. S., and
Europe, is in
.
constant
touch with
all types of Canadian investment
possibilities
—
and
government
municipal issues,
corporate
bonds
and stocks.
Nesbitt,
pany
stitutional
in
Thomson
and
Com¬
is always ready to help in¬
their
or
corporate investors
Canadian
transactions,
of
the
stock
creased ten fold to
of about
an
throughout
the
and
the Toronto Stock
The
Exchange,
richest
market
The
and
most
o n e
populous
roughly 50%
market; the re¬
mainder
being shared by some
400 to 500
competitors, most of
which
and
as
It
is
were
not
at
customers
from
can
their
the
gallons
be
present
a
year
the
175
of
esti¬
Total Rev.
strides
under
dynamic
gallons.
pling the company's business. Two
STATISTICS AND PROJECTIONS
$5.0
1964
ESTIMATE
'
'
PROJECTION
4.1%
4.7%
10.8%
11.7%
Cash Flow per share...
12.8%
$1.33
$1.42
$2.13
Earnings
$2.65
$4.00-
$0.40
$0.48
$0.74
$0.88
$1.75-
on
Return
on
Sales
Net Assets..
per
share
ac¬
of
luxe
remote
controlled
"Con-
cert Grand" series which retail
for
as
a
no
circumstances
solicitation of
an
offer
to
to
be construed
buy,
any
seek
blocks
ment
or
for retail off-street
of
place¬
preferred
inactive
of
stocks
common
dividend-
paying small-loan companies, sales
finance companies, or factors.
ALBERT J.CAPLAN& CO.
Boston
1516
Phila.-Balto.
&
Pitts.
Stock
Stock
Exch.
Exchange
(Assoc.)
LOCUST ST., PHILA. 2, PA.
Opportunities Unlimited
IN JAPAN
Write
for
our
Monthly Stock
Digest, and our other reports
thai give you a pretty clear
picture of the Japanese
economy as a whole.
Nomura Securities Co., Ltd.
61 Broadway, New York 6, N.
Telephone:
Introduction
of
the
"Stereo
Theatre" 24-inch television stereo-
This Is not
orders
for
BOwling
an
offer
any
Green
or
Y.
9-0187
solicitation for
particular securities
phonic high fidelity radio phono¬
graph combination, which retails
for $595, last
spring met with ex¬
consumer
the
acceptance
already
distribution
of
During
and
very
high
1959
industry, representing 40%
all
that
Magnavox television sales
period. In June," 1959, a"
broader
line
of
stereophonic two
and three way television
combina-1
tions in the price range from
$400
to
$650
and
was
offered to the
public,
large share of this so far
untapped and very promising inar-^
ket should be gained
by the com¬
Over-the-Counter
Quotation Services
a
$7.2
$14.5
5.3%
-
$16.00
5.8%
portable
television
sets, distribu-1"
for 47 Years
tion
of which is
primarily aimed
the "second set" market. With
many console television sets be¬
at
coming older and obsolete this has
$4.50
$2.00
placed
the
company
advantageous
increase
(This is under
Companies
le
W<
Magnavox is also manufac¬
turing a complete line of 17-inch
who has been instrumental in tri¬
$6.3
5.3%
Return
BOSTON 10
stereophonic radio
has maintained its
stereophonic instruments
are
priced anywhere from $150 to the
in
125
(millions)___ $4.9
Finance
the
widest
two-cabinet and
r
of
Henry J. Low
tremendous
-
Consumer
chief
quality consoles sold by the
industry. The company's console
in
1960
1958
Bankers
the
company sold approximately onethird of all 24-inch television
sets
leadership of Mr.
Freimann, its highly re¬
garded
and
talented
President,
1957
Investment
before |
pany.
KEY
&
111 Broadway, N. Y. 6 COrtlandt 7-5680
offering
both
quality models.
1959
NEW YORK 4
of
successful
Frank
consumption
average
to
months
competing models
placed on the market.
be
cellent
During the past decade, Magnavox
made
Tokyo, Japan
Brokers
recession
company's
further added to the
share,
per
expected to in¬
annual
the
;
earnings of $3
that
Affiliate of
Yamaichi Securities Co., Ltd.
Members:
the
Company
York, Inc.
and
phonographs,
I
only twelve
mated
only about
60% of the highly stable residen¬
tial market has been
tapped so far.
In"
addition,
present
appliance
crease
six
New
of
intro¬
|.$1,250.
available
times
profit¬
of
large lead in the console field,
counting for about one-third
:
instruments,
small operations.
believed
J
television
are
costs, thus permitting
purchase of other propane
to
the
de
f
due
self-contained
e
fidelity radio
overhead
able
t h
equip¬
high
quality stereo¬
phonic high
are
businesses which
f
time
write
Yamaichi
first
took
choice
The
ment and
this
the
o
the
Magnavox,
tronic
present
one
man
operations.
respect, Superior, because
of its size, has obtained favorable
supply contracts
and
low
unit
In
it
could
j
pro¬
ducers of elec¬
1956
25 BROAD ST. 140 FEDERAL ST.
-
largest
company has
the
of
Magnavox Co.,
the
competitors
Magnavox Company
shares
in Canada.
areas
of
inventories
a time
when the majority of
leading
electronics
equities
are
selling anywhere from 20 to 50
times
earnings
and
above, the
Quebec,
At
or
Securities
de¬
stereophonic
instruments by Magnavox, the in¬
dustry was plagued by excessive
At
outlets
and
dian investment.
AND COMPANY, INC.
duction
annual rate
dealer
Ontario
This
nations.
information
current
Call
per¬
formance.
held
HENRY J. LOW
25,000,000 gallons and
branches
For
musical effects almost comparable
to an original live orchestra
Members, New York Stock Exchange
information about Cana¬
NESBITT, THOMSON
is
Since incorporation in
1951, Su¬
perior Propane's sales have in¬
favorably
very
and will be equally glad to fur¬
nish any
Commonwealth
Manager, Institutional Research Dept.
Gude, Winmill & Co., New York City
of
vast
30%
themselves
mately $9,000,000.
It now serves
over
50,000 customers, with 209
EXPANDING ECONOMY?
1951, has
guiding rapid
sound financial
in
similar
its
total assets eight times to
approxi¬
INTERESTED IN CANADA'S
it since
with
compare
STOCKS
stores through¬
Kingdom, Canada
Africa, will retain a minority
interest in Collaro, Ltd. and dis¬
tribute all of Magnavox's products
throughout the entire British
example, while the
maintains a particularly
American
which
JAPANESE
and
investment institutions. It is listed ;-!and
on
other U. S. industries.
Exchange
American Stock Exchange
39
counterparts,
record
of
the United
out
by European, U. S. and Canadian
companies
being able to offer better growth
Bacon, Stevenson & Co.
New York Stock
propane
Collaro, ; Ltd.,
in
manufacturer
with almost 3,000
For
some
supply situation, have resulted
prospects
non-resi¬
NY 1-1557
wires t(Tour branch offices
Direct
changers, tape recorders, sound
reproducing equipment and allied
electronic products.
Great Uni¬
versal Stores, Great Britain's larg¬
est
retail and mail order chain
present, com¬
50% for compa¬
a
interest
•
Exchange
St., New York 6, N. Y.
Mobile, Ala.
through purchase of ma¬
British
with
a
possibility of
doubling earnings in five years,
which is priced at less than 20
times current earnings—a situa¬
tion reflected
by the fact that
popula¬
in
(Copy
jority
Ca¬
Bell
industry
tion density and the fact that
per
capita consumption is less than
one-third present U. S.
consump¬
tion, because of a later start.
These factors, coupled with a bet¬
ter
on
York Stock Exchange
American Stock
New Orleans, La. • Birmingham. Ala
weeks ago he announced Magnavox's entry into the world export
market
at
with
Members
company
velopment will give Magnavox an
large sales and service organiza¬ immediate large market abroad
tion for its size, its 61 salesmen which otherwise
would take many
are
remunerated
on
appliance years to create.
sales only to emphasize customer
At home Magnavox is engaged
buildup.
.;
in
the
design, engineering and
Capitalization, as at Sept. 30,
manufacture of a varied line of
1959 (unaudited) was 45%
debt,
military and industrial electronic
16% preferred and 39% equity,
equipment including high quality
at book values, and 25%, 9% and
stereophonic high fidelity radio
66% respectively at market values.
phonograph and television instru¬
Three
hundred
and
eighty-four ments.
The company is the leader
thousand common shares are out¬
in the production of record play¬
standing, plus warrants to pur¬
ing stereophonic equipment and
chase an additional 45,000.
was the first producer to introduce
The accompanying table, with
stereophonic
high
fidelity
disc
projections based on the above playing radio
phonographs in
assessments, speaks for itself. '[
April, 1958.
This new develop¬
In summary, Superior Propane
ment, which " has revolutionized
the entire recording
common, now at $16 and paying
industry, rep¬
50 cents,
is one of few market resents a unique method provid¬
tested securities
in
a
defensive
ing space separated sound with
of
prospects are not encourag¬
investment in Canadian
securities
Dealers
BONDS
on
rate
leading Western European coun¬
tries, it is idle to deny that short-
INC.
from
stems
about
expansion
United
term
R.,
and
P.
Members New
'
It
However, only 35% of
successful
basis.
a
those
special
Bids
been
States and the
Members
N.
at
C.
Electric
sources
have been
the
in
run,
,
companies.
The company's strong manage¬
ment team, a majority of whom
economy will
continue
to
grow,
Canada.
Steiner, Rouse & Co.
2)
HAnover 2-0700
users
new
Gude, Winwill
Dept.,
Co., New York City. (Page
19 Rector
5,000 bulk customers
"Alcan,"
to
&
rable U. S.
Canadian
long
over
business
pared
con¬
faster
& CO.
one
fident that the
Teletype NY 1-40
.
its
dential
feel
Research
development
Eastern
General
Telephone.
American
can
Exchange
120 Broadway, New York 5
WOrth 4-2300
likes
While
Associate Member
now
nadian
and
potential
in
including
readers.
Established, 1920
American
has
invest¬
he
ment
for
available
select¬
an
research
services
Manager
Low,
the
best
— Henry J.
of Institutional
Bought—S old—Quotes*
Magnavox Company
■'
industrial, commercial
and agricultural markets,
Supe¬
rior Propane, owing to the lack
of major competitors, provides the
Because of recent trends in United
than 400 OTC Issues
1'
nation.
System
more
Louisiana Securities
Ltd.—David B.
Gill, Manager of Institutional
Dept., Nesbitt, Thomson & Co.,
Ltd., Toronto, Canada. (Page 2)
House
D.B.GILL
Speed
Primary Markets in
Selections
Their
advisory field from all sections of the country
Manager, Institutional Department
Nesbitt, Thomson & Company Ltd.
Nationwide Wire
Alabama &
Participants and
Superior Propane
of
sure
different group of experts
a
Thursday, February 4, 1960
participate and give their reasons for favoring a particular security.
Call "HANSEATIC"
You
week,
.
.
Week's
This
Forum
...
Chronicle
and Financial
The Commercial
(558)
its
position
in
to
a
more
greatly
growing share of the
National Quotation Bureau
Incorporated
*
•
[Established 1913
replacement market.
as an
offer
security referred
to
to
sell,
or
herein.)
Production of stereophonic radio
Continued
on
page
29r
48 Front Street
CHICAGO
.
New
8AN
York4,N.Y.
FRANCISCO
Volume
Number
191
5922
The Commercial and Financial Chronicle
.
.
A Credit Structure
(559)
-
That Will Not Collapse
CONTENTS
lICHTMIH
B.S.
COMPANY
AND
By John W. Remington,''President, American Bankers Association,
and President,
'
Lincoln Rochester Trust Company, Rochester, N.Y.* 1
,
»,
•
Bankers
cautioned to continue restraint in
are
3
Articles and News''
credit, real
consumer
;'
v '
estate credit and term loans. Mr. Remington similarly warns private
v'-' and public non-banking lenders against credit excesses and declares
;
? Funds
\
^
'
■
Step
Up
Buying
—A.' Wilfred
v
the
as
May--
»,
•.•;
...
Market
4_;
FLU?
ASIAN
>
■
.
Rises
Cough up those obsoletes
New High
to
and
Cover
_
head
sun!
the
for
•
they cannot plead that inability to "create" money places them in a >
.
'
special position. The bankers' spokesman outlines basic principles
and criteria to follow in the difficult task of rationing
and comments
-
-1
all, banks and other lenders are urged to counterpoise the legitimate
Rankers
be
can
justly
obligation
of
proud
which
contribution
the
of risks
-
y
the
a
banking business is making to our
of
Aftermath
services which will be needed.
years,
com¬
credit
other
and
-
Extension
per¬
cellent
ion
ex¬
While
/I."
'
in
meet¬
ing the credit
needs
in¬
of
tutions,
dividuals,
have
governments,
In
agriculture,
industry, and
gratifying
John W.
available
Remington
ment
are
we
serving
business,
—throughout
our
have
of
the
many
country.
results
sound
r
What Khrushchev
for
Shortsighted
and
unsound
credit practices of some banks and
twenties
resulted
in
the
in
other
credit
uted
to
and
which
..
and
in
"bust"
to
Edgar
ever,
avoided
not
credit
to
to
to
and
should
excuse
be
the
that
action
their
a
been
tant
policies
in
resources
have
private
of
institutions.
we
with
fied
should
should
ment
has
gone
loans i-
We
can
achievements
our
but
strive
constantly for the
full exercise of our capabilities.
It is
now
„
"soaring"
or
"surging."
the
"sad
-
warned
not
us
decade the
It
is
to
make
the
next
to
„Now let
may
have
specialized in
Wilfred
the
concentrate
us
on
on
1868
Nashville
»
in Registration
Now
Security
Newark
,
Offerings—
The Market.
.
.
"
Schenectady
Glens Falls
Worcester
inc.
40 Exchange Place, N. Y.
Teletype NY 1-1825 & 14844
33
Direct Wires to
40
Los
•
Cleveland
Dallas
Philadelphia
Angeles
St. Louis
San Francisco
31
T
and You—By Wallace Streete*.
16
A Continuing
,
The Security I Like Best
2
The State of Trade and Industry
Tax-Exempt Bond Market—Donald D. Mackey
Interest in
4
6
~
Fischer & Porter Inc.
Richardson Co.
and
Washington
You
Stouffer Corp.
44
Keyes Fibre Co.
*See article
vNote
:
cover
page.
article
page
<
"Funds
Step
Up
Buying
the
as
BOENNING & CO.
to New High"
Market Rises
-
on
cover
Established
1914
1529 Walnut Street
tColumn not available this week.
115
Philadelphia 2, Pa.
Broadway
New York 6, N.
CO 7-1200
LO 8-0900
ATT Teletype PH 30
Y.
28.
Twice
FINANCIAL
Weekly
Copyright
1960 by William
Company
CHRONICLE
Reentered
DANA
.
9576
February
President
4,
Thursday (general news and ad¬
issue) and every Monday (com¬
statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Every
Office:
3,
111.
135
South
(Telephone
La
Salle
Union,
St.,
STate 2-0613).
Bank
$45.00
and
per
Note—On
rate
foreign
must
.
of
per
in
of
per
year,
per
Life Insurance Co. of Va.
in
year.
year.
Record
and
—
Monthly,
Postage
the
exchange,
subscriptions
be made
S.
$68.00
(Foreign
account
of
U.
Members
Commonwealth Natural Gas
Publications
Quotation
year.
States.
and
$65.00
Canada,
Countries, $72.00
Other
the
United
of
Other
plete
Other
Dominion
in
.Territories
Pan-American
1960
vertising
Chicago
B&ssett Furniture Industries
Possessions,
SEIBERT, Vice-President
Thursday,
Febru¬
American Furniture
Subscriptions
J. MORRISSEY, Editor
WILLIAM DANA SEIBERT,
matter
ary
25,
1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
7, N. Y.
Park Place, New York
GEORGE
Publishers
COMPANY,
Trading Interest In
second-class
as
B. Dana
-
Subscription Rates
Reg. U. S. Patent Office
CLAUDE D.
TELETYPE NY 1-5
Chicago
MACKIE,
HA 2-9000
34
Corner
Salesman's
Security
Exchange
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
Boston
$
,__
what
page
request
on
Singer, Bean
&
27
—
Securities
Utility
Prospective
institutions to con¬
sustainable growth
Spencer Trask & Co.
Albany
May_.
Report
Reporter's
REctor 2-9570 to
BROAD
'!<Prospectus
be in store for banking in the
Stock
Simplicity Manufacturing*
Chicago
25
25
,
<"
pdrrcddrn ctfipk^
T II L | L II II L U 0 I UUllO
York
BarChris Construction
•
f
The COMMERCIAL and
New
r
*
WILLIAM B.
-Members
41
___
•
T
Securities
economic
Continued
Founded
'•
Business Activity
-i.
Magnetic Amplifier
$.•*.
•
16
Published
For many years we
;
enT
What's in Store for Banking
opinion that we can
expect great achievements from
our economy in
the next decade.
Banking not only can, but has an
my
'
_
Funds
Public
produce, through the'
adoption of enlightened policies.
"soft smug sixties."
News—Carlisle Bargeron____
'
i
13
:
18
Our
must
we
Pacific Uranium
8
_.
It behooves banks and all
other types of
tribute
observer
and
our
44
Recommendations
Our Reporter on Governments
in the past,
-
.
18
.
Investment
Observations—A.
such as those governT\
agencies which have
counter to Federal Reserve
growth.
sixties," and one
has recently
competent
Broadway, New York 5
DIgby 4-4970
Cover
NSTA Notes
credit
tire' financial
On the contrary, a few have cau¬
tioned that these year^ may be¬
come
17
News About. Banks and Bankers..
financial
dously important part of
_
Mutual
that, in the future,
commercial bank¬
ing will be operating as a tremen-r
as
which have been characterized by
as
-
39
Indications of Current
:
It is obvious
important for us to do this
as we go into the sixties,
—
some
17
Real
a
(Letter to Editor)
From Washington Ahead of the
cite develop¬
policy,^ and those agencies which
have
sought to shelter favored
groups of borrowers from prevails
ing money and credit conditions.
satis¬
not be
Stockpile
Jamesbury Corp.
ments
good one, but it is impor¬
a
that
Silver
Einzig: "Britain Believes in Boom"
sound credit structure.
have
record
1
:____
Our
(Editorial)
Dealer-Broker
economy,
Our
Dies
Terms
Coming Events in the Investment Field
by
their
utilize their
the
how¬
willingness to take certain
risks.
hycon mfg.
15
(Is
per¬
with
a
*
Bank and Insurance Stocks
of
use
easy
not
of
this restraint when it is coupled
calculated
Asset.
As We See It
operations of government
lending and guaranteeing agencies
the past three decades have
had some far reaching effects on
be proud
to
reason
*
Regular Features
from
come)
over
following
We have
'
14
J.F. ReilIy&Co.,Inc.
The
late
and
excesses
14
credit to
jeojardize
investments, but this simply
makes
it
more
important
for
every one of them to contribute
well considered
and conservative lending and in¬
vestment practices.
•
Strauss
National
in
mortgage
credit
and
agricultural credit, to name two
important examples. Some of the
effects of government credit
agencies have been constructive.
Some have not been good for our
been
Wistrand
II.
Simon D.
inability to
"create" money puts them in a
special position. All institutional
lenders are under heavy pressure
the
in
thirties. Since then,
banks generally
early
and
claiming
and
the
free
too
a
mitted
clearly contrib¬
"boom"
twenties
of bank
industries
Thinks—Roger W. Babson
•fi
Some
credit
deteriora¬
a
quality
advance
13
Financing Trends in American Business—Harry C. Culshaw__
and
tion
Mclean industries
12
accom-:
of credit
progressive banking
nonbank institu¬
should be held responsible
tions
mot
other financial institutions in
.__
and
policies.
only met a
variety of credit needs, but have
manifested an ability and willing¬
ness to provide new facilities and
to render new and enlarged serv¬
ices of all types to their customers
and in this process have built a
healthy banking system.
-
Economic and Investment Outlook
—Clay J. Anderson
has
should
—
the point where it may
of
owners
large, small and medium
—
Banks
the
customers
are
banks
to
1960
j
cross company
Bratt_____
to liberalize and enlarge
adequately and well the needs of
which
lenders
private
.
C.
seek and should not be permitted
feel confident that
small
growth
faster
types and kinds
and
10
kratter corp.
Monetary Policy: 1914 Model in the Space Age?
Nonbank lenders—both govern¬
can
'
Steel—Roger W. Blough
—Girard L. Spencer
;
which, in the last analysis, prob¬
ably should not have been ex¬
tended by commercial banks.
that we, on
the basis of
evidence,
f
by the willingness of
these
of
'
9
McKinley-
Supply and Demand for Long-Term Funds in 1960
■
modate
•
_____
—Leicester W. Fisher
private,
rapidly.
public and
much more
this
part,
some
especially
all
both
grown
been caused
It
commerce.
is
The
f
commercial
banking has
experienced substantial growth in
the past two decades, it is all too
apparent that other lending insti¬
fash¬
5
7
W.
in
—Elmer
..
formed in.
_
Pept,
*'
Responsibility—George Champion.
Securities
STRJEET, NEW YORK
Telephone: WHitehall 4-6551
Methodology in Long-Range Business Forecasting
;
WALL
99
Change in Federal Reserve Policy?
a
financial
Lenders'. Credit
Nonbank
Obsolete
,
:
.
4
—Gordon
A Banker's
;
at
;
U.'Cobleigh-—
Do We Need
least
substantial share to the growth
contribute
to,
Chemicals
on
;
Ira
;
:
that
so
economy.
In recent
mercial banks
have
3
Celanese: Increasing the Accent
*
credit structure will not collapse under stress.
our
-
:
Structure That Will Not Collapse
V—John W. Remington___
■?
v-
needs of credit with the avoidance or minimization
v
/;
limited credit,
what is in store for banking in the sixties. Above
on
A Credit
fluctuations
remittances
LYNCHBURG, VA.
in
for
advertisements
New York funds.
STRADER and COMPANY, Inc.
extra).
LD 39
Private
—5-2527—
Wire
to
New
TWX LY 77
York
City
4
Chronicle
Commercial and Financial
The
(563)
.
.
.
Thursday, February 4, ,1960
i
■
.
.
if'
to a quite diversified
chemical enterprise, stressing research to the tune of about $6
".'V:'.
company
Celanese—Increasing
million
Accent
Chemicals
on
a
*
:
5v>
•"
A
panoramic review of
in
product mix, plastic and chemical output, and ability to show a
showing significant improvement
proving.
Carloadifigs
■
-
-
Food Price Index
Auto
INDUSiRY
■■
■
Production
Business Failures
T-VT"T\TTOrnT>V
t
Commodity Price Index
,,
period
10-year
the
*
Retail Trade
■
both attractive and im-
In
Production
ElectrOf Output
'
•
The State of
_
stabilizing the markets for its
products. -It's the result of this
are
Steel
;
\
.•11 v.^
and
results
company
■
SS'lSSStS TRADE and
By Dr. Ira U. Cobleigh, Enterprise Economist
a
broadening
and
year,
•
•
'7Vi"'y
—
TshlrTZfBusiness:
of'roughly°$23
a cti v i t y is -moving activity moved in December
at the cash reg- ahead as. the new year begins, _the the earlier high. New orders late
ister. From a postwar low in sales Commerce Department s Off ice of in
Plastic Expansion
^?e strong
Thirty-five
years
ago
Celanese
of $147.6 million in 1954, the total Business Economics stated in the state of demand for factory outwas a little known name and the
Over
30
years
ago
Celanese
has risen impressively each year, summary presented in the Jan- put and with final sales approxienterprise had only one plant, 900 Corp. sensed the need for broader
Net sales were $192.3 million for uary issue of the Survey of Cur- mating production lates, there has
employes and total sales
(year diversification. In 1928 it was en-'
1925)
of
only $1.6
million. gaged in research with the Cellu¬ 1957; $223.7 million for 1958 and rent Business. ' The; agreement been slight opportunity to replenaround $260 million for 1959. For reached in the steel industry asish inventories ^drawn down durCelanese was the very first pro¬ loid
Corporation looking for a
this year a further increase in the sures that the current high steel ing the protracted strike period,
ducer of man-made fabrics and it
plastic as useful as Celluloid, but order
of $25 million is expected, output will be extended to, ,k>br\e-<.:*•< Auto assemblies
are fast apmade just one variety of these— less
flammable.
(You many re¬
Net .earnings have not, up to fit the supply position of major proaching
the
scheduled
acetate filament yarn.;, From that member the
high
ancient joke about
how, risen at quite, the same rate consuming industries.
This will average rate projected for the
meager beginning, Celanese Cor¬
the
Celluloid
collar—"it
looks
but should show a sharp year to permit expanded
output of du- first quarter.. Current production
poration of America has grown nice, you don't have to launder it,
year
improvement in 1959. rable goods.
A
schedules are aimed not only at
into a great company grossing over out it's
dangerous for a man who
Against reported per share net of
a quarter billion dollars annually.
Purchasing power is flowing at meeting
customer .demand but
gets hot under the collar!") Jok¬
$1.64 in 1958, about $2.40 a share a record rate
In volume of business it is the
the
OBE noted. als0 a* building up an adequate
ing aside, the inter-company re¬
indicated for 1959. .This is a sizesecond largest producer of manpers0nal income rose in Novern- supply of car stocks in dealers'
search was most effective and led
able upswing and does much to
made
ber and December above the pre- hands.
,
fibers, and ranks as the to a merger of Celanese Corp. and
volume
The
December
Steel mill operations had been
largest producer in the world of Celluloid Corp. in 1941, and the suggest that the present $1 divi- strike
dend
may
be increased., These flow of
acetate yarn.
$391 billion, at a season- generally maintained at the top
creation of what is now the Plas¬
figures take no account of the
^
adjusted annual rate
comrate achieved in December. While
tics Division.
Broadening the Synthetic
earnings generated and retained
*
with *384 billion last June, shipments of finished
steel are
Celanese now runs four plastic
Horizon
by the Canadian subsidiaries, nor ^
iarge part of tbe recent rise now moving to consumer markets
plants (three in New Jersey and of unconsolidated earnings of the
All of which will give you some
refiected gains in manufacturing in larSe volume, working stocks
one in Texas), with total per an¬
Mexican
and
South
American
background as to the business of
wages and saiaries
but increases of many sizes and shapes required
num capacity of 40 million
pounds subsidiaries.
Celanese,
and
the
information
were also apparent elsewhere.
for finished output are still someof polyethylene and cellulose
There was a 25%
stock divir
what
unbalanced
as
compared
that, historically, synthetic fibers
plastics. Celanese plastics have a dend in Celanese common last
Wldl increased employment m w-th the desjred SUppiy/ steel inhave been in the main stream of
durable goods manufacturing, the
broad list of end products—photo¬
year which brings the outstand¬
t
caDacitv increased nearlv1
the company's activity.
But this
on
graphic film; emulsions for paints, ing total now to 7,334,000 shares total number of employees
tons
ast
over-specialization created a con¬
a
coatings and adhesives; polyester" having a book value (as of the nonfarm payrolls rose to a sea- the . - * at
total
siderable
fluctuation in earning
year-end to 148.6 mil¬
resins for automotive bodies; and 1958
sonally adjusted figure of 52Vz lion
year-end) of $18. Ahead of
tons.
Current
power. This was especially notice¬
production,
This
assorted polyethylenes
and ace¬ the common lies about $112 mil¬ million in mid-December.
close to the previous peak in vol¬
able
after World War II when
tates
for
lamp
shades,
optical lion in long-term debt and $103 was virtually equal to the pre- ume
80%
of
sales
were
in
acetate
terms, represents better than
bottles,
industrial
and million in preferred. Of this, $100 strike record. Recalling of work¬ 95% of this
fibers and most of these fibers frames,
newly rated capacity.
ers continued throughout Decem¬
electronic housings, appliances million is in a 4]/2%
issue, con¬
wound up in women's wear, sub¬
Elsewhere
in
ber
and
manufacturing,
and appliance parts. The company vertible into the common at
early
January,
OBE
$44.
ject to the whim and caprice of
output has continued with little
recently purchased Royal Manu¬ This conversion is good through noted
fashion.
change in
the
prevailing high
Much improvement in the dur¬ facturing Company, a large pro¬ May 1, 1961 and to be invoked
Holiday Purchasing Brisk
rates, so that, overall, production
ducer of plastic bottles and con¬
requires a quite sizeable advance
■
ability
and
quality of earning
in
December
again approached
tainers.
This acquisition will fit of
celanese
common,
from
its _Tbe OBE analysis reported that
power has been achieved in the
the
earlier
top
registered last
past four years and for two rea¬ nicely into the company's present present quotation of 27Vz, within Christmas season buying by conspring.
'»
sons.
First, fiber sales in 1959 operations and the manufacturing the next 15 months. The market sumers reflected a new record
facilities of
While
Royal will, in due doesn't think this conversion fea¬ sales of holiday goods.
accounted for less than 65%
of
Construction Down from 1959
sales at department stores were
total gross and, second, broader course, be appropriately enlarged. ture is going to be worth much as
High
not
especially
buoyant
during
Celanese '!;4%'%
preferred
now
production and sale of newer syn¬
The Chemical Phase
much of the fall season, the gain
Construction
activity
in
late
sells at 81
yielding 51//2%.
thetics, useful in many other lines
1959 represented one of the few
In order to assure itself a suf¬
But something more construc¬ of 4% over the usual seasonal rise
in addition to women's apparel,
November
to
December major instances of lagging dewere
achieved. For example, ficient supply of the basic ele¬ tive should be said about Celanese from
ments needed for its synthetic and
common
"aT'271^ 'it is "selling" at brought the total for the fourth mand, with activity down from
there is "Fortisan," preferred for
curtains and draperies; a colored plastic production, Celanese en¬ less than 12 times indicated earn- 9uarter even with the previous last spring's high. Seasonally adtered the third major phase of its
ines
This is an extraordinarilv hi&h rate achieved in the summer justed
private housing starts in
yarn
"Celaperm," desirable for
activity
in
1946
by low ratio for a company so heavily Perl°d.
the final three months of the year
clothing and for bathing suits; and corporate
chemical division. engaged in plastics and chemicals.
"Arnel" a triacetate fabric some¬ opening a
At other stores which cater in
an annual rate of 114
sustained rise in
earning power*
begun to show
up
,
.
.
yfaLbrlng'ing
„
_
what
and
competitive with "Dacron"
selling for around half its
price. "Arnel," introduced in 1954,
has made great sales strides due
to its quick-drying and wrinkleresistant qualities. And there's a
called
newcomer
should
be
on
"Teron,"
the
couple of months.
which
market
in
a
"Teron" is not
only serviceable in apparel but is
thought to have a bright future
in
home
turned
furnishings.
out
in
a
It
will
brand
polyester plant, with
an
be
There
an-
in
Texas
(82% owned) and Columbia Cel¬
company
million
it
as
owns
about
IV2
of timber in British
acres
Columbia and
a
400 ton daily ca¬
in
Even
late
the
gradual
progression
16
a
of
large part to holiday trade, sales
also exceeded the normal seasonal
advance in the final month of the
Moreover, earnings here
nitely on the rise with a
defishare
distinct
The
41 Vs
look
Celanese from essentially a textile
as
So
ysis
common
last
year
dynamic
as
sold
take
part of
when it
it does today.
t
•
*
,
-
in
fall
was
OF INVESTMENT SECURITIES
the
-
best
-
Dominick
Members New York, American & Toronto Stock
volume
14 WALL STREET
f
NEW YORK
a
record
Net
re¬
.
accumulation
capital
of
were also exPanded substantially last year, so
that, on balance, they added to
their accumulated net equity—
s
that is, their assets less their debt
Recovers
operations by automobile f three years.
manufacturers again
approaching ' What this
ufacturinf
at
—
absolute rate
With
fU" *hedule' t0tal
,
,
ical and financial,
well
••
Activity
borrowed
of
use
assets by individuals, both phys-
previous showing
-
Manufacturing
-
about
in the
as
-
-
.
means,
—
same
■
OBE
Continued
•
the
preceding
stated,
on PaSe
We maintain active
trading markets in:
interesting stock.
has come a long way
motion
is
Colonial
Stevens
,
With Saunders, Stiver
CLEVELAND,
Ohio—Norman
Strachan
become
has
Stores, Inc.
per¬
Markets, Inc.
.7
,
Common
j
Stevens Markets, Inc.
C.
affiliated
5.90% Preferred
with
Saunders, Stiver & Co., Ter¬
Tower Building, members
the Midwest Stock Exchange.
Established
COLUMBUS,
Ohio —Arthur
INCORPORATED
*
D.
Evans has become connected with
Commonwealth
Securities
Cor¬
poration, 30 East Town Street.
1919
R. S. Dickson &
Company
With Commonwealth Sees.
'Special to The Financial Chronicle)
Exchanges
by
funds.
an
sistent.
of
&
purchasing power rather
freely, but have supplemented it
obligations
<
an
auto¬
principally
minal
Dominick
in
as
influence
creased
It
year.
off
'
UNDERWRITERS AND DISTRIBUTORS
limited
build-up
which
during the early
new-model
the
sales
1959.
supersonic aircraft.
The company
and
its forward
.
the
November
above
development, and ulti-
Celanese is
Correspondents inprincipal cities
the
this
thepotential of the new synthetic lu¬
bricants, "Cellutherms" for jets
throughout the United States and Canada
mobile
high
fmoratreocPkre0tsU'afso
and other
of
sponsible for the year-end
lag in
the total of retail sales.
Excluding auto dealers, sales held at the
least,
for
occurs
noted
was
over-priced.
nessee
inventory
normally
by ordinary methods of analyou
can
quite easily reach
season
v
Lowered
buoying business activity.
Incomes have been
expanding but consumers have
not only been spending their in¬
by the
arresting of usual production and
the
And, if you wish
appraisal with a
little romance, consider Celanese's
recently acquired plant in Tento
result
consumer
dynamic
range of choice occasioned
high
didn't
if not undervalued is, at
not
the
part
com-
mon
Rate
In reviewing 1959
mreviewix.g moa developments
aeveiopmeins
'
as
the conclusion that Celanese
Savings
purchases, !he, Commerce Department singled
out the
especially
conver¬
of the preferred might
place.
as
substantial
record of 1.4 million,
OBE reported that, of the major groups of consumer
only automobiles experienced a
lag. This situation was in large
to
common
mnlion, compared with the earlier
year.
are
per
figure of $2.75 to $2.90 a
possibility for 1960. And a rise in
that order would suggest an in¬
crease
in dividend, first because
it would be justified and second
because a higher dividend might,
sions
on
,
,
of
ratio
markets
times
seemed
where
.
reasonable,
soggier
have
would
levels
Trends in Earnings
We have dwelt long enough
the
January,
,
_
perchance, animate the
pacity sulphite pulp mill.
ultimate
capacity of 40 million pounds
plants
lulose Co. Ltd. (88% owned). This
latter
is
importantly
a
timber
new
nually.
two
are
specializing in petrochemicals, a
plant in West Virginia; and in
Canada, Canadian Chemical Co.
___
t
Member Midwest
v
CHARLOTTE
Atlanta
'
Columbia
NEW
Greenville
Direct
Wire to
Stock Exchange
YORK
Miami
All
Offices
CHICAGO
Raleigh
Richmond
42
Volume
Number
191
5922
.
,
(561)
The Commercial and Financial Chronicle
.
along to consumers in
of higher prices.
creases
form
and
argue,
through a reduction, in the
money supply will, when coupled
with the upward push on prices
tion
By Dr, Gordon W. McKinley,* Executive Director of Economic
Research,'Prudential Life Insurance Company of
and Investment
from
America, Newark, N. J.
the
suit in
alternative course than to pursue
no
inflation,
affected,
growth progress
",
adversely
are
call for
quantitative restrictive policy during
severe
,
normal; credit ease during a boom's later stages—when prices may
be
loans
and qualitative controls
rising;
least
at
or
fixed maximum
a
over
for
term
loans at
'■■tryr. -»• - more than 24 months.
-
.
Any
government
agency
which
has responsibility for the formula-
monetary and credit policy
inevitably'be subjected to a
steady
of
advice, crit-;
i
c
s
-
'
,
Re¬
The
ception to this
which
is
icized
ineffec¬
tive,
be¬
or'
it is too
cause
effective;'
be¬
eral
acts
it
cause
t
not
soon
enough;
because; the
too soon, or
c«, d„„ w. McKinley
its
is
not
sufficiently selec-
it
is adamant in the pursuit of its
goals, or because it is willing to
compromise. The fire of complaint
flickers on year after year, smouldering quietly in the pages of
learned economic journals, striking sparks in the columns of the
daily newspapers, or flaring into
blazing argument in the halls of
tive
is too selective; because
or
Congress.
....
gogic, or
be
be
dema-
self-seeking. But it would
of
those
world,
financial
the
in
us
all opposition
evaluate
to
Reserve
these terms.
policies
We have
Federal
to
can
ill-informed,
as
serious mistake, particularly
a
for
criticism
this
of
Much
dismissed
*!
?
;
.
has
significant
Reserve
-
leveled
been
«.?'.»
Reserve
has
have led
which
taken ; actions
growth.6 Unci"tt
The Federal Reserve thus
a
in
Let
u"
policies dehigh employ-
on
ment and rapid growth.
long
As
secure
as
the
whipping
but
boy,
growing awareness even among
the strongest critics of monetary
policy that some of the most im¬
portant causes of unemployment
and inflation lie outside the sphere
policy and cannot be
monetary policy, re¬
of monetary
corrected by
gardless of whether such policy be
restrictive or inflationary.
This
might well be shifted away
attacks
serve
the Federal
oh
advance
that
this
argu-
a
ensure
supposed
a
deficiencies in both the
the basic
,
of
employment.
(2)
exist
This
no
^ifcvof
■
the
the
what
matter
stahlo
^
this
sound,
mean
cannot be improved.
price
It
f^ft, and probably
^plovmlnTlithlallmlney^nd
with
orientation
today is
certainly does not
basic
the
of Federal Reserve policy
'
Reserve
Federal
Credit Terms
Although
.
will
-
difficulty
same
Policy and Consumer
serve
"
growth.
I would like
suggest two changes in mone¬
tary policy and" credit controls
which I believe would lessen fu¬
ture
undesirable fluctuations in
to
both prices and
nrirps'
■
that Federal Reserve policy
seeds
The
cession
are
employment.
of
inflation and re¬
usually
sown
,
to
much
too
chasing too few goods.
not been a demand type
beginning in 1955 and ending in
1958.
(4) The threat to employment
and growth is not monetary pol-
The all-out boom which de¬
veloped in 1955 arose from three
It
determination of strong business ge*eral
responsi-
corporations to protect profit margins
by
passing
these
cost
in-
business situation is goodi
In the first place, nothing would
and that the easy money policy of 1
the Federal Reserve is successful
in providing sufficient money to
take
off
total
output at rising
7
'
prices.
pleased to
are
seems
KELLY
is
associated with
noiv
firm
our
lack of demand for their
no
are
•
and will take
prices,
"'
attitude
It
as
Mr. E. Holbrook
the
of
expense
demands.
formerly President of
be charitable
the consumer.
Edward M. Bradley &
observing the rising cost
living and the tolerant attitude
business, will raise its wage
demands
still
higher. " WhereCs;
Labor,
of
ScUhtzin do., driii.
DEALERS
•
will
WILLIAM STREET
N. Y.
'
joined
our
firm
as
Manager of our New Haven
now
have to reconsider its policy.
office
If it
The
15
has
prices had been rising at an an¬
nual rate of 2%, they will soon be
going up at a rate of 4%.
UNDERWRITERS
NEW YORK 5,
Co., Inc.
(Established 1868)
of
•
Bradley
tolerant
a
labor's
toward
is always easy to
at
Manager of the trading department
BROKERS
pleased to announce that
products, will push for still higher
formerly with E. F. Hutton & Company
1
We
What, then, is likely to occur?
Businessmen, observing that their
costs
are
rising and that there
that
announce
WILLIAM
MR.
Federal
Reserve
attempts to hold inflation to the
2% rate, it will find itself in a
dilemma
in
which
a
monetary
;
policy sufficiently tight to restrict
inflation to 2% will cause a de¬
cline
CHANGED
BEEN
HAS
OF OUR
FIRM^
FROM
CUNNINGHAM, GUNN & CAREY, INC.
TO
i
■
•
.
>*
.
.
«
-
837
Union Commerce
Cleveland
"I
February
«
.
>
1,
'
<i
H
f
B.dg.
J
.
■
*•>*<.«
•
.
.
,
Tower 1-1070
1960
*i.
»
*
•»**■
which
case
;the
whole
Mr. Robert F.
Nichols
Tettelbach
There
is
good fceason
to expect
leapfrogging process will
be cumulative, because it will not
that the
for the public to realize
that, there is now no limit to the
rise.
Speculative activity
will increase, attention being di¬
verted from ways to increase proprice
have become
■
Registered Representatives
LAIRD, BISSELL & MEEDS
Members New York
and American Stock Exchanges
process
likely to be repeated, this time
a 6, 7,
or 8% rate, and so on.
take long
14, Ohio
employment;
step up the rate
of increase of\the money supply,
at
,
and
eral Reserve may
is
GUNN, CAREY & ROULSTON, INC.
output
Mr. Donald
a
criticism th^t its policies are re¬
tarding economic growth, the Fed-
in
•
in
sufficiently easy money pol¬
icy to maintain high output and
employment will endorse and en¬
courage
a\ 4% rate of inflation.
Being determined
to avoid the
yet
THAT THE NAME
WE ANNOUNCE
quite
early in a busines cycle, long be¬
fore there is any outward sign of
trouble.
Consider, for example,
the course of the business cycle
icy, but wage and price policy upward driving forces — heavy
consumer
purchases based on ;a
sets about providing an increase and the degree of labor and busilarge extension of consumer credit,
has
of in the money supply sufficient to neSs monopoly which makes curinflation, but a supply type of in- accommodate total output at these rent wage and price policy pos- heavy housing expenditures based
on an unprecedented expansion in
fiation. The upward push on prices rising prices. It is, of course, possible.
has stemmed from the drive of sible that the business situation
If
conclusions are correct mortgage credit, and heavy capital
strong labor unions to secure wage miSht be basically weak at that ..
wmjlH
hp
a
mistake for the goods expenditures based on large
borrowing. Consumer
increases in excess of improve- particular time so that even with Spdlml Reserl to abandon its corporate
purchases of durable goods rose
ments
in
productivity and the easy money a business down turn
°
,
achieve stable nrices
Continued on page 28
rfptprminatinn
nf
ctrnncr
hndnP«
might occur. But assume that the attempts to ac
J
P
•
due
been
not
m0ney
bility not only to support what is
sound in current monetary
and
We
Re¬
failure to
rapid growth and toward
for
prices are rising by 2% a year and
who
Those
ment point out
threre
is
strong labor
increases ir£ Suggested Changes in Federal Re¬
as
wage
of productivity and strong
corporations are able to pass these
costs along in the form of inflated
prices, it will be difficult con
sistently to maintain a high level!
creases which are demanded by
labor and business. Suppose that
the Federal Reserve observes that
bas
unemployment.
used
and
gress
(3) The critics of the Federal
Reserve are mistaken in believing
tained only if the money supply that an inflationary monetary polis increased sufficiently to con- icy wpuld proclpce higher employform to the wage and price in- ment or more rapid economic
good deal of
the inflation of the postwar period
inflation
of
The_ Federal Reserve is still
from
that high employment and rapid
growth can consistently be main-
should concentrate
signed to achieve
monopolistic practices which
to unemployment and slow
attention to the underlying causes
excess
suits of an acceptance by the Federal Reserve of the proposition
the Federal Reserve should cease
its attempts to curb inflation and
the
l<*ad
suggests that the attention of Con¬
*
•
4
(1)
unions
consider the probable re-
us
both high employment and
stable prices, so the argument goes,
gained by accepting inflation.
would, in fact, intensify
Inflation
against Federal Reserve policy? 1 private and government sectors of
think our conclusions should be the economy which constitute the
real barriers to such growth.
these:
7/
;
V
this upward spiral of prices
}e.ad to lagging production
and rising unemployment. But.l
think that those who would conelude that a solution for this dilemma can be found through an
abandonment of the goal of price
stability are hopelessly naive and
d° the country a disservice when
;they urge that policy on the'Fed-'
ZposZfeZ
is
*' •"
?
What, then, can we conclude
with respect to the principal crith
and business corporations which cism leveled in recent years
criticism' halt
against maY
to unemployment
«»*r«\
Answers Criticism of the Fed
.
policy in
t
face such a prices.
economy, there is a strong upwardi
push on prices from the cost side,
and there are strong labor, unions
mand.
v
have
of
impact
controls
.
Re-
dilemma. In the modern American
.
recent
years
is that the two goals of
monetary policy — high employment and * stable prices—are
incompatible, and that in attempting
to achieve price stability the Fed-
bedause
is
it
Federal
Federal, is from time to time, faced with a
Policy Unsound?
situation, jn which an attempt to
most
Federal
It is crit¬
rule.
•
,
Reserve
no ex¬
serve
the
that
does, in- fact,
serve
.
inflation
Is the Basic Orientation of
The
Federal
-
v
and
m,\
censure.
r
.
....
aimed at stable prices. Putting it
another way, it is naive to assume
that labor and business units will,
under a policy of inflation, suddenly develop a moderation in
their wage
and price demands
which they are unwilling to exhibit under a policy .of1 stable
the
question the validity of our eco-;
nomic
goals and the means .of'raise wages and prices even undei
achieving them. "7. J k V '
circumstances of: declining;, de-
stream
i
|"
...
which
dilemma
halt
to
believe
I
credit policy but to take the lead
in attempts to improve our financial machinery and constantly to
tion of
will
...
degree of easy money or any rate
through
tight money will cause unemployment, and an attempt to maintain
\high employment through easy
money will cause inflation.
no
:
-
;
instalment
consumer
consumer
great
tempt
stage, even though prices are not rising and unemployment is above
still
side, inevitably re-
Federal Reserve faces—that an at-
boom's early
a
the
is
long as proper non-monetary correctives are not em¬
so
ployed. Monetary policy changes, however, are recommended. They
ac-
sales, a subsequent decline of inflation which will enable the
in production, and a resulting-in- Federal Reserve to escape from
crease in-Unemployment and re- -exactly the same dilemma which
tardation of economic growth. This it ' faces
today under a policy
-
price stability during cost-push
if employment and
even
their wage
it that
demands "take "full
of
ume
Critique of Federal Reserves' merits and deficiencies holds Fed -has
cost
reduction of the unit vol-
a
to
see
price
be
count of the expected decline in growth. In the second place, even
though Federal Reserve policies
the value of money,
The important point to note in have not been entirely successful
in achieving price stability, they
this process is that there is no reason to believe that there is any have been successful in calling
the Federal Reserve to curb infla.
will
ish
circumstances, the
an'attempt by
Under these
„
^proponents
cluction to ways to beat the price
rise. All except the weak or fool¬
the
5
44
Whitney Avenue, New Haven, Conn.
NEW
HARTFORD
DERBY
WILMINGTON
MIDDLE TOWN.
February „1,.I960
YORK
PHILADELPHIA
*
'
f v
(
\ A
,«
-
6
The Commercial
(562)
Richmond,
TAX-EXEMPT BOND MARKET
BY DONALD
D.
also closed
was
MACKEY
hiSy^titivlbii1 ^S^hl-presen^
The
tax-exempt bond market ing the tax-exempt, has bemeasurably stronger come
more
active ;in
the
each
day during the past absence of underwriting volweek. There have been no ume. This has been
profitable
very important issues or ex- during January. This activity
ceptionally large issues to be has supplanted the tax loss
absorbed. The impact on the trading that accelerated busimarket of the
large Federal ness in a different way during
refinancing was fairly well late 1959. The secondary mardiscounted by the time of the ket has attracted investor atannouncement and
up until tention
to the extent V that
Tuesday (2/2/60) most of the : large blocks of bonds ($25,000Treasury issues, long and $100,000)
are
difficult
to
short, were substantially im- locate and- usually- fetch
proved. The price enhance- ^premium prices.- This situa-
The greater part tracts
serial bonds
has been
o" the
w.llbesecured by^er
awk ~
a issue
have been made, to the nego-
general market interest,
offering was worn by - Yields are usually better than tiated - type issue .calendar..
the Halsey
Stuart & Com- a v e r a g e. ■ This relatively The
noted
pany-Morgan Guaranty Trust modest underwriting program one is $45,000,000 Elizabeth
Company account, and offered should not seriously deter the R 1 ve r Tunnel Commission,
at yields representing a new enthusiastic bidding of Virginia .bonds to be offered
high level for the municipal dealers, nor surfeit the appe- under > the management of
bond market. It is reported tite of investors.
" ■' •
B l y th & Company - Alex,
that about 40% of the bonds.f The
Port of New York Brown & Sons-Merrill,Lynch,
are
sold out of account./In Authority has set Feb. 16 as Pierce, Fenner & Smith Inc.
_forma^r.
.
up
sales perform- the date for its public offering and B. J. Van Ingen & Gomduring the past week it of $30,000,000 serial• revenue pan-y, Inc.x sometime-late in
is apparent that an excellent bonds. The State of Michigan February,
job has' been accomplished.'
f _v %
• ' / z_/
n
l
J
1
J
T7i
/; o
1
Yesterday (2/3/60) at least
iSSUeS
D2lIQ
summing
ances
.
aM-JjWCgeY
-bCXieClUieCl
recent/?^V*Sslf ^
the followingrtabulations we list the
^
for
ment
Chronicle ..i Thursday,- February 4, 1960
and Financial
tax-exempts during tion obtains for most of the dozen,
week is perhaps best quality shadings, from excelexemplified in the fact that lent to poor.
'.//■; ///,%■.; quarter million each
the average
yield on the is- •
As new issues have recently
the past
or more. 1
r J
1
•
1' 1
J*
bond
/
•
issues of
I-''
'' '
*
-1 Information, where available, includes name of borrower,
/ am0unt
yields are
of ..issue, maturity scale, and hour at which bids
cle's index stood at
3.5807% from 10 to 30 basis points ;
In addition to the gratify- I will be opened.
:
on
Feb.
3,
compared with (0.10%-0.30%) less than the ing business in new issues, the
;
February 4 (Thursday)
%
3.615% on Jan. 27.
yields available from closely 'activity in toll road and other^
'
#
sues
comprising the
Chroni-
to
come
Revenue Issues in Demand
market,
.
-
Qreenvjjje School District,
type issues has been
revenue
The
smaller
volume of
m
very
number
new issues
,
and
!Ceeded
resulted qeve}
few weeks
^during the past present
area
of
mi
r
1961-1986
8i00
with
years,
these
the
few
bonds
past
tewLocal
done
York, N. Y
Oberlin,^Ohio __/-_A-_————-
well
-
general Hainwell Community School Dist.,
r- ^-Michigan
:
cases, while port.
A^eles, Wash.L—
t
,
market.
2:00p.m.
-
1961-1980
1,652,500 /1961-1981
if not better than the
i
2,000,000
t
Sch. DistOhio
exceptions/New
have
p.m.
>
'Drainage District, La.____—__—
.
through
^sues.
tax-exempt
•
1,865,000
Mich.-Drainage
stimulating renewed interest///District No. 1, La.—1,000,000 1961-1980
in these
formerly popular is-^J^er?on parish, FourtWeffeY§on i,
• •
..
/
/*
higher
clearly evident1 that
investors feel that the
many
have led the
way
a
week, it has been
..bidding. .qUite
aggressive
TJese issues, priced ahead of
the market
constantly to
Jefferson Parish, Consol.
2.00
,
22,000,000 /1961-1965
1,100,000 .>1964-1984 / 11:00
%
u-i
./•;
1,010,000
^.•
p.m.
/ 1:00p.m.
.,11:00 a.m.
^
1960-1985-
a.m.
.
8:00p.m.
In many
yields in sufficiently
.1,700,000
1962-1984 :
2:00 p.m.
generous to be pursued to an long-term - serial bonds have/Rubidoux Community Services
: ///
//
provement, even including ,even
-fluctuated
as
many
as^ 20/;. District, Calif.
-1,240,000 1964-1985
7:00 p.m.
higher price level withthe numerous discount offerout seriously
dollar -quoted /u./ / // /
• February 5 (Friday)
discouraging in- points, /. this
ings which offer less, current
vestment appetites.
'/V* ' category has - done relatively/ Berkeley County, County Board of %// ..%/;//;///'y1
return to the tax
exempt in-'
"
/%//.A better
Their large coupons *
Education, W. Va.__—---—•—'1,600,00(1^^.1961—1980
7.30p.m.
come
buyer.
The
simple'
Early Issues Cleaned Out / (tax-exempt) and their
for
secondary
market
bond
.
im-
.
-
im-/-/;-/ ...
>
February 8 (Monday)
0n Jan. 27 Houston, Texas proving intrihsic quality have Cassia and Twin Falls Counties,
buttressed mosx of these'i^v ^Qint;Class A Sch. Dist. No.. 151,.X:f ^
most
-Duuressea
oi
tnese
awarded $9,800,000
Limited
/fs-jr.,,Idahpj.
>1,000,000 •
be, small T
,erial bonr]s to the Kid- sues marketwise and added to iFairborn
mfcinal
ment
mU~
continue
to
volume, a period of stock market easiness, a renewed trend
to better balanced
portfolios,
^
,
continuing
and
mount-
even
City School Dist., Ohio/A
Peatodv
,h
£
-
Chase
Man-
Banlf Bankers " Trust
Bank:B#.?ra /r
a
,
Company and First National
v
^
■
/
'
™
■
t\
Bank of Chlca§° SrouP- De"
less
or
fewe/ inflatPonarv :SPite what seemed to be ful1
forces and me generous
Pricln§ the SrouP disPosed °f
xuxces, ana the generous tax
tax
iccup within
wppk
Thp
exempt returns that prevail. ^ nnn nnn
^
-^ 5f
ing tax problems
hone
a
for
a
w
The light new issue calendar, i assuming a continuance
ot
present
,
encouraged dealers and
traders,
aware
of
the
will
nice balance in technical
ket
factors,
gard
of
to
considerations.
lated
risks
handsomely
that
bid
possible
have,
in
mar-
disre-
long-term
These
have
calcu-
paid
off
the
dealers
perhaps
luckily,
to
been involved in
few of this
a
$6,000,000 Waco, Texas, G O.
1SSUe WA
was awardfd
same
day was also sold out
has eafiv
this
proportions,
/
'
week'bv the Harris
??/ Wls week / tk ® /arl/
^t Company-First National
£ /
V/r° "a
Bank / Cblca#° and Mor§an
-
j
Guaranty Bank SrouP'
The
$23,121,000
State
of
;their
'
general investment
^
tige
Issues
issues
which
wmcn
particularly
week
Noon /
-
.
-1,660,000
1961-1972
/ 1,575,000
the past ..Maumee City School District, Ohio
Illinois Turn-/Stbckton,,Calif/
i
1961-1983
4,563,000
•
1962-1981
•
11:00 a.m.
Noon ' /-
/- 8:00
p.m.
about twd
February 9 (Tuesday)
/
points; New Orleans Express- Florence;-Ky;
i
1,760,000
1963-1999 ' 8:00p.m.
way 4%
1994 up about one Haverstraw, Stony Point, Tuxedo, /
and
one
half
points; New
Woodbury and Highland Central
York Power Anthoritv 434% / .School District No. 1, N. Y.___._
3,435,000 >..1961-1990 ,» 1:00 p.m.
up
,
•
-
0ftnf Power Authority; 4 .4
zUUo
up
Regional
Port
about five points,,
1995 up
well
High Point, N. C.__/.____
.Chicago Otsego School District, Mich...___
District ' 4%-P u b 1 i c Housing Administration
_
(local Authority bonds).
San Diego County Water Author-
as
-
others
ns
'
•
I.ftnkino^
.
2,000,000
Ahead
,'
%
,,
ity,
California
1961-1978
11:00 a.m.
1,750,000
.
point;
one
1960-1985
8:00 p.m.
102,830,000
•
—j
1960-2000
'■//..
7,000,0001961-1993
Stillwater Independent Sch. Dist.
'/ ^No. 834, Minn.. 1,000,000.
Noon
-1.
.M-':
„
7:30 p.m.
:
r
>
1963M986
During the coming week WashingtomSuburban Sanitary /.%/;.v/;••.'•,;/
Maryland issue awarded on only three important-issues //District, Maryland
10,000,000
1961-1990
Jan. 12 was also sold out this are to be presented for bids,
v:..)./
s
February 10 (Wednesday)
week even though at the time Today (Feb. 4) New York City Alexandria, Va.
1—1..
4,137,000
1961-1980
of sale the pricing seemed will ask for bids on $22,000,- Canton, Lisbon, Pierrepont, Oswegatchie, Potsdam &c DeKalb Cen*
ahead of the market. The $7,- 000 (lQfil-10651 General nhli____________
year's successful underwritings; but few have been un- 000,000 Minneapolis-St. Paul,
successful. At present it seems Minnesota Metropolitan Air-
8:00 p.m.
*
Maricopa County;/Scottsdale Sch. ;/■•%
///;//%. g./ ,./
District No. 48, AiizL__//•:. 1,800,000 '1960-1969/ 11:00.a.m.
aainpd ^Maricopa County' Scottsdale High
/%.■./%/'i
%/;/
gamea
School District No. 212, Ariz..___
havP
nave
pike 3% % 1995
1961-1984
pres-
during
include:
v
1960-1979
1,500,000
1:00 p.m.
.'/• 1:00 p.m.
Noon
-
:
•
StionbondfThere wfl
^ S^?61QDi^ict No. 1, Ind.__
N. Y.
Sanitary Dist.,
1,496,000
1960-1988
3:30 p.m.
1962-1991
10:00 a.m.
1,055,000
1960-1989-
1,555,000
1965-1990
8:00 p.m.
_n___
least
1,470,000
_____
gaiion oonas.
4,700,000
1961-1980
10:00 a.m.
2,330 000
1961-1989
8"00p.m.
1963-1990
10:00 a.m.
1961-1985
Noon
mere will beat t
De at-Indianapolis
two
large bank groups Islip Union Free School District
set forth
convincingly that a Port Commission" issue which bidding for this issue. There ^No<-4' N- Y.._.
new
issue market
possessing was sold to the Halsey, Stuart should be considerable ddS^Z0 o?Qe??-ndent Sch°o1 District
considerable inertia is estab- & Company-Morgan Guaranty mand for tnese short matnri
these short maturimana
o
279% MTlnn
——
shreveport, La.
ou
lished.
group
over
a
week
ago
was
ties
at
the
present
market
South Haven School Dist., Mich.__
sold out yesterday with a
Gn„ "axinTfaday
single $3,000,000 sale. In the (Feb. 9) $102,830,000 of Pub- Concordia Parish
Trading, an important course of the week the small lie Housing Administration
Louisiana
phase of all markets includ- balance of an $8,800,000 bonds will be offered for Oakland, Calif.
„
x.
|ZYek
/■
February 11 (Monday)
Sch. Dist. No
10
______
1,155,000
3,000,000
_____
MARKET ON REPRESENTATIVE
Rate
(State)
SERIAL ISSUES
Maturity
31/2%
1978-1980
33/4%
Connecticut (State)
Bid
Asked
4.00%
3 85%
1980-1982
3 65%
3 50%
365%
3 50%
New
Jersey Highway Auth., Gtd.„
3%
1978-1980
New
York
3%
1978-1979
370%
355%
33/8%
1974-1975
330%
3'l5%
(State)
Pennsylvania (State)
__
Vermont (State)
New
2:00 p.m.
_
Trading Active
California
.
________
dealer
,,
and
,
so-called.
•
m,
banking
There
&
are
groups,
if '
splinter
3Vs%
Housing Auth.
Los Angeles,
competitive bidding. It seems
/
February 15 (Monday)
likely that only one bid will Dallas, Texas
10,000,000
be forthcoming for the
larger
//
February 16 (Tuesday)
issues, composed of both Albuquerque, N. Mex._________
6,028,000
(N.
Baltimore, Md
Cincinnati, Ohio—
_
330%
320%
1977-1980
3^0%
3^30%
groups which will function On
some
of the smaller issues.
1978-1980
4.00%
3.80%
1980
3.75%
3.55%
31/2%
1980
3.65%
3.50%
New Orleans, La
Chicago 111
3V4%
1979
4.00%
3.80%
31/4%
1977
New York City, N. Y
4.00%.
3.80%
3%
1980
4.15%
4.05%
February 3, 1960—-Index
1961-1980
10:00 a.m,
8i°00»000
1960-1980
1:45 p.m
1 420000
ioa?
AOOom
1
2,000,000
1962-1989
1L00
Fla.
8,000,000
1961-1969
11:00 a.m
1961"1980
"l980
n°30ant
11.30 a.m
1962-2005
3:00 p.m
r
District
No.
1:45 p.m,
9R, Colo.;..
.
loan
These
31/4%
Calif._
1978-1979
3V2%
32/4%
Y., N. Y.)
5 SiZr?!,,ZrA~c Y*T"A~~:~"t
La Plata County School
1961-1980
—
3.5807%
Lexington
Ky.
...
i:rla"?.0/tlllties Commission,
long-term serial bonds No^l-Macedonia Local Sch.
again please investors Port of New
YorkTu7hority~NT
with
their
relatively high Salt Lake County. Water Conserv-'
yield. On the same, day the
anc/ District, Utah____
.Washington Suburban Sani- Saa Antonio Independent School
tary District of Maryland will, Wilson,
should
-
30 000 000
'J0'000'000
2,000,000
!'»
1961
UMO'
a'.m
S
Volume
Number
191
5922
.
.
The Commercial and Financial Chronicle
.
this
most
the
:
v
By GeorgeXhgmpion,* President, The Chase Manhattan Bank
'
'•v
•/;
;>\v %
V'^:New York City
••••,
'•(
,
;.
••
not
main
(,v.
r
important
term loan.
and
i
particularly the
was
the
(563)
reminding bankers of thek responsibility as bankers, particu-
larly in
V
inflation,
the fight against
helping to win
Mr.
•
assails the government and government agencies for inconsistently
;.V
a
.
Champion
sition
^(aiding and abetting competitive
sources of credit. The New York . • *
; bankers note the prefixai word "commercial"
before banking in^dis-t:^:;^i
.
cussing loan consideration priorities in calling attention to right and
term credit, and in warning that failure to meet business needs
;
,
u ;' ,'
(iOuLthat commercial banks bear the brunt of the fight against inflav
/potion, he finds some critics falsely picture the Fed as being oversolicitoward
tous
banks and
urges
;:
,*
bankers to take the lead in public
-
-
meet
to
the
which
Today the
is
farmer
which
A
-education. ThereVno
panacea'in government controls he adds-in
A theme that is
is
viding
a favorite, of' mine
that will merely get us over the
theme! which neve? grows hump? Or is it a problem we must
old,] because it reflects life itself, learn to live with on a more or
and life is ever changing.
I refer less permanent basis? L don't think
which
that
with
agree
riod
as;;
in
•
bankers
most
nature
.not
only,
voir of
our
of
com-
muni ties v
well.;
an
the
as?
(
limited.v
are
is
society.
fine
a
own
help
but
line
was
to
the
that
George Champion
task
f
the banker cuts across the full
of
of
life
banker
broa
and
bankers
this
clearly
obligation
line.
We
need
to
is
to
uP°n
see
which they are
a part functions effectively in the
interests of depositors, shareholders and the general public. Banks
and bankers have long stood at
the center of things, but the trends
the organization of
them.
It has become neces-
for us to set priorities in
loaons. Moreover, in es-
sufficient
as
it
to
extinguish
matures.
We
not
der
Here
we
are,
owners can be neglected,
But having said this, I think
must recognize too that one group
duct
of
their business but in
our
/.I
am
time
>
all
on
not
going
spend
to
any
which
maxims
those
learned
•
we
will
-always endure—maxims which re•>.
late
to
,the
early and which
only -such
a
notice
comes
less to say, I pointed
who
are;
sincerely
portfolio
as. a
to
through
us
a
long
needs to be watched
■i.iVy. :
Home
intend
the
that
sarily
along. Need¬
Loan
it
our:
of loanable funds
was
This in
disposable.'
have at
many, re-
wanted
Board
ened
bit.
a
matter of fact, you may
interesting (although rather
'disheartening)
to
read
in
the
As
a
find it
•
Home Loan Board's annual report
•for 1958 that
of the principal
one
of
the
•functions
Federal
provides, the acid test of
tion
as
in
leaders
our
posi-
economic
the
whole
injectGovernment
Not
ings.
1
a
overall
is said about
not fit into
word
how this may
rthe
or may
situation.
economic
I
have
credits
in
mind,
employed
for
in
This
buy
history—a
history featured by the key role
which our institutions have always
Indeed, it would appear to give
[the Savings and Loans a
blank
check.
However, the report does
tivities of another group in Gov¬ go on to state that under existing
closely. ernment: The Federal Home Loan jpolicies of the Board, maximum
advances for this purpose might
Here
let me cite
example, Bank Board.
from
mortgage
article
an
is neither
announcement
any
an
which
offer to sell
appeared
nor a
solicitation of
Telechrome Manufacturing
played in meeting the credit
needs of commerce and industry,
New areas of lending which have
Continued
.
an
on
offer to
of these securities. The offering is to be made only by the Prospectus.
Corp.
$750,000
some very
6% Convertible Subordinated Debentures
commerce
thing
and industry.
[
Due December 1, 1969
finally
has
If.-.some-
"give"
to
Price $100
it
,
being, and progress of our cona¬
munities and the nation.
j
^ Over
the
v;;'7*
' ;1. h
past few. years,
"j\
You all have heard the saying,
of "Idle' dollars,; mean idle, hands."
.
course, this problem has taken on
added dimensions.
With lo:an/de-
posit ratios averaging 54%'; (and
ranging to I higher than 70% in
some of the big city banks), money
is tighter than at any time since
the '20s. As a matter of fact, it
.
can
be
argued
that
in
some
re-
tighter
position than in that earlier period. We can't forget that in those
days call loans bulked large in the
nation's loan portfolio, and those
were regarded
(rightly or wrongly) as being highly liquid assets.
Moreover, we must remember that
a
much larger proportion of our
resources today
is tied up in respects banks today
Squired
are
in
a
phrase symbolizes. ;the high
priority business carries as a borrower.
business
an
None
of
foreseeable
us
future.
meet this situation?
to
do
it
with
How
do
we
Is it possible
makeshift
policies
value)
ist
Price $10.50 per Share
unlimited license, par-
ticularly under conditions that
ex¬
Copies of the Prospectus
back and take
we
ties.
are
a
handling
may
be obtained from the Undersigned
in any
State] in which the Undersigned
shares
The time has come, in
opinion, when we need to sit
today.
my
in
:
.
legally offer these
compliance -with the securities laws of such Slate.
may
fresh look at how
our
responsibiliv
.
Right and Wrong Term Credit
During the days we all were
scrambling for loans we had a
tailored to fit the needs of specific
industries. We all recognize, of
course, that many of these tools
emerged in answer to the changing needs of business itself, and
:
(10c par
government itself will move in to
take care of them. .But none of
this means that banks .can grant
the proposition that.money is tight
and
will
stay tight over the
our
Class A Stock
And we know that if banks
tendency to broaden-our concept
for serving business. •' New tools
were
developed, many of them
on
'"V:
fail to meet the needs of business,
sets
a
ability to lend,
will disagree with
reserves,
lower limit
which
That
95,200 Shares
I
,
^
community.
Home
-Loan Banks is to
spects lies at the very heart of our ; should first be in lines that conresponsibility as bankers,' arid it tribute' least to the strength, .well.
only
too. rapidly and the
the
spigot tight¬
filling
fwas
and the
we
not
neces¬
serving notice that the feed trough
out to those
,
ume
did
advances
reduced;
be
indicated
Board
more
useful- services,, and to
the extent that we; can, we cerlike. Rather, I want to concentrate tainly should continue to provide
1 on some, of the principles .that I them.;;But in. my judgment we
believe might now govern the use should not do so at the cost , of
of,the large but still limited vol- failing to meet the basic needs of
toy meet
of depositors,
the
Unhappily, the
article
provide funds to
into all ele¬
—a balance "which varies with the
ments of economic life, regardless "the Savings and Loans when any
particular circumstances of each .of the need. Tf we really believe, extraordinary demand for home
bank.
Five years ago, with our ; as I do, that the Fed is right in 'building arises which cannot be
banks more liquid, we didn't have jits policy, we shouldn't hesitate ; met by'the normal inflow of sav¬
with the loan
*
of sprung up since the '20s do involve
credit-worthiness
loans, to our ability
our
cash needs
of de¬
V2 %
riod of easy money whose use now
we
of the decisions they must
forward- planning as well. ;'
than
'
in particular does bear a special
make.
I want first, therefore, to relationship to banks, and that is
review again some of the policies business—whether it be small or
which I believe ought to guide large. The very word commercial,
bankers, not only in the daily con- as applied to banks, comes down
i
more
Tribune
Herald
tightest
of.
restraints,
wrestling with the problem of how
the to make both ends meet, when
,
have acted to enhance the critical
;
no
commercial banks.
un¬
the
tabhshing these priorities we can- Vto be so concerned jwith the ma¬ -.as bankers to explain to other
sections of government errors or
turity of the loan'portfolio.
n°t
f?;.,
a bank bears a
inconsistencies which may show
responsibility to the entire corn- Warehousing and Other Loans
up.
munity of which it is a part. No
I might add that it is no less
group of borrowers—whether-they .- Mor&over, there were certain
be business, consumers or home- other tools developed in the pe¬ incongruous to read about the ac¬
and pressures of the postwar years
nature
of
more
from
Money
Government."
make
•
first .sary
that
is in order—that
house
own
to
indeed
are
position, their
is
they ever experienced, not¬
withstanding the issuance of the
tionable
*
not going to be able to meet all
responsibility.. the credit demands-that press in
of
arena
if
in
their
of the name canbe thrust into the
but
est
Now
stand
any
worthy
helo
not
and
community,
the
increase
total
year
hardly amused recently when
on my desk ari invi¬
there landed
be
f
is
fact
That
Loans,
those
institutions
have
been enjoying the biggest growth
our
can't
are
progressive
modern
to
run
bankers
as
•
plain
billion—an
$2
billion.
essential "those who manage things in Wash¬
ington had best do likewise.
I
we
fighting the
position creditwise if we > battle of inflation in Washington
,.y;, extend the
maturity beyond a rea¬ the inconsistencies in such a pro¬
Reminder on the Prefix
sonable period, or provide for a ceeding. The trouble is that such
r,.
.
"Commercial"
j
;
;
balloon note at
the
end
which an incident not only
reflects a
Once we put ourselves in this •quite * obviously
can't
be
paid. (lack of coordination; it also beframe of mind, I believe there are What is required with term lend¬ ytrays a lingering attitude on the
certain - conclusions that emerge ing today is a proper balance, not part of some that is difficult to
rather clear cut. First, banks are i only with individual loans but root out—an attitude which would
ing
,
the--
For
to
our
I
,
leaders,/
as
our;-
ebb
almost
$1.3
house in order,
point out that
getting
position;; we shall, find (ourselves (impair the bank's liquidity, but
in when funds available for lend¬ (also place our customer in a ques¬
society,- but
also,
natural with the
had climbed
posits. I should perhaps mention,
too, that while the advances were
being made to the Savings and
while
But
;
certain that the company's budget
shows a cash flow which is more
flow; of the business cycle—we Vthan
need always to look ahead to thfe loan
credit,
vital to
so
is
last year, those advances
from $700 million to
vember
■
periods of tightness and ease
—as
reser¬
many
cutting back rather
these various loans
step
.
shall certainly see alter¬ 'over the
we
nate
of a"-,
managers
great
while
as
in
right and tation to attend a two-day sym¬ Treasury 5's. In 1959 their share
-accounts increased
by almost $6
wrong in the use of the term loan posium in Washington concerned
for the extension
of credit, and with
(you'll never< guess what!) billion—more than twice the in¬
crease
in
time
banks often are tempted to
"How
to
deposits d«f all
Borrow;
and the '40s, and it has taken un¬
til recently to make us realize that
detect.
to
made
drawn between what is
The abnormal pe¬
history was the '30s
re¬
—
of
there
But
would
sponsibilities
bankers
on
hard
~
degree of financial flexi¬
contribution
me.
our.
a
bility which has made
short-run matter, and I be-
a
:lieve
-
.allof \
hold
us
it is
•.
for
be
Lending Activities
'fixed
a
to the respon-
could
drastically
loan, with its
period of amortization, is a
logical answer to this need, pro¬
sib i 1 i t i e s;
often
are
case
ernization. The term
stressing the need for sound money and sound fiscal policy.-
?
or
consumer
receivable.
instances
po¬
longer
seasonal fi¬
no
*
■
of
accounts
—particularly because they often than twice the average borrowing
add
to
inflationary
pressures. in recent months by commercial
Again it is up to the individual banks from the Federal Reserve.
bank
to weigh its own position Moreover, it represents about 4%
Industry and commerce are now and decide the extent to which it of savings and loan share capital;
supreme, and the need is for funds really
can
afford to grant such whereas commercial bank borrow¬
chiefly to help meet requirements credits
ijmder present conditions. ing from the Federal Reserve—
that arise
from
increased "sales,
which
for
any
individual
bank
Inconsistent Governmental
new products, expansion and mod-'
must be a temporary matter—has
-
would result in the government itself taking up the slack.-Pointing
wrong
•r
chase
dominant; and the
nancing which might still grow
out of agriculture has been largely
taken"'over by the government.
S
:
of
community,
to
was
.
chiefly from the domi¬
of agriculture in
the
American economy.
i
:
,
role
nant
the wholesale pur¬ article the Home Loan Bank Board
paper
and had become concerned over the
Then,
of volume of. advances to its savings
And well it
course, there are loans to finance and loan members.
speculative
security
purchases, might. From March 1958 to No¬
a
needs
—
all:
time,
when the
banker
necessary
needs
stemmed
-
them
was
ago,
the
provide credit
seasonal
After
-
long
so
job. of
warehousing for lenders who are in November in the New York
not part of a bank's immediate Herald Tribune. According to that
with
case
of
There
7
Amos Treat & Co., Inc.
Wm. Stix Wasserman and Co., Inc.
Hallo well, Sulzberger, Jenks,
Michael G. Kletz & Co.
Kirkland & Co.
Draper, Sears & Co.
INCORPORATED
Hess, Grant & Remington
February 3,1960
;
French & Crawford, Inc.
page
30
8
(564)
counter
DEALER-BROKER
the
industrial
National
stocks
in
used
Quotation
York
Bureau
Bureau,
Packaging
M.
SEND INTERESTED PARTIES
Front
Street,
&
York
Co.,
Inc.,
Stevenson
Wall
1
Analysis
—
Climax,
Firth
Outlook—AnalysisVan Alstyne, Noel &
Co., 52 Wall
Street, New York 5, N. Y.
Bank
Stocks
comparison
trust
111th
—
companies
States
of
New
—
quarterly
of leading banks
the
York
and
United
Hanseatic
California,
Riter
Corporation, 120 Broadway, New
Fruehauf
York
able
a
5,
N.
bulletin
Y.
on
Also
available
is
Treasury Refunding.
are
Indian
ment
Review
Business
Carpet
roe
and
Street, Chicago 90, 111.
t
Canadian
Government and Mu¬
nicipal Financial Statistics—
Booklet
Wood, Gundy & Co.,
Inc., 40 Wall Street, New York 5,
N. Y.
:
of
most
Dobie
active
issues
Draper
25 Adelaide
and
Candidates for Dividend Increases
—List in current issue of "Pocket
Guide"
Harris,
Upham & Co.,
120 Broadway, New York
5, N. Y.
—
Also in the
issue
same
are
lists of
selected securities in various cate¬
gories.
5,
Copper—Analysis—Bache
Co., 36 Wall Street, New York
N.
Y.
Also
available are re¬
ports
on
Bendix
Aviation
and
General Precision
Equipment
Corp.
't
;
Domestic Zinc
Industry—Bulletin
—Reynolds & Co., 120
Broadway,
New York 5, N. Y. Also
available
is
a
report
America.
Electric
Packaging Corp. of
on
Utilities—Memorandum—
way, New York
;
Investor's Aid,
suggested
61
&
1960
Co., 2 Broad¬
4, N. Y.
and
F.
Salt
Lake
Street,
City
10,
Foreign
Chemical
in
:
—
U.
S.
''Investor's
In
Utah.
Manufacturers
February issue
Reader"
—
of
Merrill
Lynch, Pierce, Fenner & Smith
Inc., 70 Pine Street, New York
5,
N.
!
Y.
In
reviews of
the
same
issue
Addressograph
are
Multi-
graph
Corp.,
Portland
Electric
Power Co., Pacific
National Bank
of
San
Francisco,
Sanders
As¬
Co.,
Broadway, New York 6. N.
Securities
Ltd.,
M.
of
Consolidated
orandum
Brimberg & Co., 26
Broadwav New York 4 N
Broadway, iNew York 4, w. Y
X..-_
Y.
Co.,
Also
the
available
outlook
is
for
review
a
Plant
and
Equipment Expenditures in Japan
for
1959
and
brief
analyses of
Ylitsubishi Heavy Industries,
Nip¬
Philadelphia
Phiiadeipnia
N
?oaeX0abili,t,y °-f D'sMbutionsPaid in
1959
Various Investment Funds
Y. Also ayailaMe is an
Stocks—-Current
Infor¬
issue
of
"Investornews,"
Projects
—
Y.
New
.
York
City
Comparative
Bank
figures
Corp.,
15
—
'•
Stocks—
The
Broad
First
Street,
New York 5, N. Y. Also
available
is First Boston's director
of New
City Banks, New York
nicipal
bond
dealers,
York
Municipal
New
York
-
and
Bond
City
Industry, Bond Yields,
dix Aviation Corp., Standard
Mining
&
Co.,
Street,
C., Canada.
B.
,p
ComDanv
Oil
Sun
on
.
E
Chemical,
n
0
Electronics
Understanding
Put
Herbert
&
Call
Filer
Op-
Crown
—
5657
Dept. A-7, 419 Park
South, New York ; 16,
Y.—$3^00 (ten day free
ex-
amination).
Memorandum
ment
Year Ahead—Bulletin
with
lists
of
business
on
selected
Air Control
an
Oil
?°^unc*'
Sf
are
analytical
^acturin^and to fnterLtin^Over
the Counter
Stocks
Blowerr cl
Stocks—Bulletin—Droulia
&
and
01
Allis
W.
Also
&
Co.,
110
East
&
Co.,
orandum
Los
Tidewater
;
,
Forms
;
5,
E
N.
the
circular
same
Consolidated
on
Foods,
Westinghouse
Industries,
Swift
data
are
Thomas
Electric
Co.
&
—
Paine, Webber, Jackson & Curtis,
25
Broad
Street, New York ' 4,
N.
Y.
.
Adjust-
Home
Wall
an
up-to-date compari¬
between the listed industrial
stocks
used
in
the
Dow-Jones
son
Trailer.
Averages
and
the
35
D.S. Kennedy
on
inc.
Electronic
Accounting Card Corp.
3ell
c.
.,5
Texas Eastern Transmission
»i
International Recreation
Corp. Cutter Laboratories
Coast
Line
Railroad
Telephone
,
—
„
Co.
__
of
.
Canada—
.
^
,
Copeland Refrigeration
Corp.
TiJ
-Ross, Knowles & Co.,
Ltd.,
Adelaide Street,
West, Toronto
^nt'irCanf'n -AnalyCo
A
BmksManufactunng
A & B
{
TROSTER, SINGER
ns—H. M.
!
Byllesby and Company,
Incorporated, 135
South
La
Salle
street, Chicago 3, 111.
Cenco
York
bulletin
5,
N.
Y.
data
are
on
data
'
.
York
-
Central,
Pacific, Western
Delaware
»
St
Paul
:
ChiPa-
&
World
£ ^.ayPsa"an£
cZnSion Bonds
&
Mary-
Hudson,
Milwaukee
Warner
Review
Also available
New
on
Northern
land'
—
& Co., 74 Wall Street,
ToU^
Swasey—Data
Itoad
in
cur¬
rent
"Monthly Investment Letter"
-Hayden, Stone & Co., 25 Broad
st' New York 4' N- Y- ^ the same
issue are data on Anaconda, Aeroquip
able
and
Hanson,
New York
a
Radiation.
avail-
Also
memorandum
Lease
on
Plan International.
woTthlngio'n
Pershing
Corp.—Analysis—Hanson
&
is
—
40
Exchange
5, N
Y
Place
:
New
;
'
Corp.-Memorandum
&
York
Co.,
5
N
120
Broadway,
Y '
'
-
'
^
x
-Ul!
.
Yale ^ Towne Manufacturing Lo,
-
Meredith
& CO.
'
York 6, N. Y.
—V.
S.
Wall
Street,
Wickett
&
New
Co.,
York
Inc.,
5,
N.
99
Y.
Chemical Products
Corporation
&
Gannon, Inc.,
140
Federal
Street, Boston
—
Analysis—May
10,
Mass*
Teletype NY l-37tf; 377; 378
'
—
Neu
&
Co.,
120
Ohio
—
r»
Webster
corp., 90 Broad Street,
n.
n"y0
Y.
Miehle Goss
k
Oppenheimer,
Broadway, New
Off
Shore—Memorandum
~A- G. Becker & Co. Inc., 120
Sottth',t4' SallB" Stfeet;1 Chicago
3. Illinois.
3, Illinois.
Dexter
Inc.—Analy- Zapata Off-Shore Co.—Analysis—
sis—Winslow, Cohu & Stetson, Joseph
Walker
&
Sons,
120
Incorporated, 26 Broadway, New Broadway, New York 5, N. Y.
York 4, N. Y. Also available are A1so available is an analysis of
memoranda
Autolite
Crane
on
and
Electric
Ryan Aeronautical Co.
Fruehauf.
Miller Manufacturing—Memorandum-Purcell & Co., 5
Broadway
New York
is
a
4, N. Y
New
York
on
Central
port—Thomson
&
Broadway, New
North
&
Judd
Analysis—J.
New
York
IMC Magnetics
System—Re~
McKinnon
2
Kellett Aircraft
York
4, N. Y
Manufacturing
—
Roy Prosser & Co.
11 Broadway, New York
4, N. Y.
Outboard
Universal Container
BarChris
Construction
American Int'l Bowling
Marine—Memorandum
—Courts & Co., 11 Marietta
W., Atlanta 1, Ga.
—Hill, Darlington
Street, New
Outboard
Primary Markets In
Also available
memorandum
St.
"
Railway
^uth^ to'eks3 .of'"g&Z
Sout"'
i;,,Zapata
^curfti«
&
Outboard Marine
Chesapeake
&
Company
Data
a" analy'
Publishing
Stone
-
^
C^"10
of Vendo
Central.
Instruments—Memorandum
Stillman, Maynard & Co., 61
Broadway, New York 6, N. Y.
Century Chemical—Memorandum
Security Dealers Association
Trinity Place, New
New
same
r
Loew's Inc.
—
,
Steel Corp;
Rothschild & Co., 120
York 5, N. Y.
I1 luUtAiLa Sane
V ri»Vaii
W of Chicago Banks
ul
fn l QM3
4
Atlantic
Analysis — Vilas & Hickey, 26
Broadway, New York 4, N. Y.
HAnover 2-2400
the
are
Manufacturing Co-Bulletin
Georgeson & Co., 52 Wall St.,
New York 5, N. Y.
Kroger Co.—Analysis—The Illi-
h
R
S. Plywood Corp.
.
Qhia
!
1
or^
H. Hentz
Pacific—Memo- New
Internationa, Recreation Corn
iniernationai Kecreation Lorp.
Analysis Jesup & Lamont, 26
Broadway, New York 4, N. Y.
Co! S
&
Pacific
Railroad, and
National
Company,
Inc.
Also
available is an analysis of
Lazard
una,
Currently Trading Actively-
74
bro-
Plywood
over-the-
For financial
institutions
Members New York
States
>
Northern
American-Marietta Company
analytical
United
Kentucky Utilities.
,
reports
Corporation
In
H.'Lewis & Co.,
Street, New York 5, N, Y.
—
showing
on
Broadway,
Review—
—
Carl M.
Analysis
Co., 25 Broad Street, New York 4, J. C. Penney and Union Carbide. Loeb, Rhoades &
Co., 42 Wall St,
N. Y.
American Vtseose Corp.-Bulletm .New York
5, N; Y.
'
Over-the-Counter Index
Folder —Goodbody & Co., 2 Broadway, Mercast
New York 4, N. Y. Also
available
is a report on Fruehauf
Securities,
Co.—Study—East-
illustrated
Data_L
randum —John
63
4,
sis—Osier, Hammond & Nanton
Limited, Nanton Building, Winni¬
peg, Man., Canada.
Ira Haupt & Go-' 111 Broadway,
New Y°rk 6'J Als° available
&
231
Toronto Dominion Bank-Analy-
Angeles 14,
'
-
Gray ,Manufacturing
Products—Mem¬
orandum—Jas. H. Oliphant &
Co.,
61
Broadway, New York 6, N. Y.
Also available are
memoranda on
Oil
orate
Y.
• -.
|
American
Co.,
Dillon, Union Securities &
Co., 15 Broad Street, New York
4, N. Y. Also available is an elab-
—
Joy
Memorandum—
&
European
on
J-Hutton & Co. 623 South ^Ver^'Cyclops
rnlif
Avenue, Milwaukee 1, Wis.
m
L! Gas—-Memo¬
&
Corp.
York
>
—
man
Inc.
~ S
Wis-
Oil
—
King-Oata-Sutro Bros,
WaUStriet. ,Naiw
Great Atlantic
Chalmers—Review—Robert
Band
consin
Star
chure
TexURs.
.t
and
analysis of ACF Industries.
and smdies
Company
48
Co., 120 Broadway, New York
5^ n. Y. Also available is a mem-
lyn 1, N. Y.
-
Allis Chalmers
attorneys.
q
Co.—Memoran-
La Salle Street, Chica'go
Corp., 16 Court St., Brook-
^ut^iLa Salle Street, Chicago 3 C^lif.
Ill,, Also available
Lau
&
°n
?°Mass SThe^i^eaYcufa?3^
The Kratter
Tex
se-
Products.Inc-Anal-
t'
Mu¬
comparison
of
earnings — Laird,
Bissell & Meeds, 120
Broadway,
New York 5, N. Y. Also
available
is
Stone
Security
—
Electric
&
Angeles 36, Calif.
Business
availahiL
Also
randum—McCormick
Corp.—Mem-
WilshireBoulevard,
Ennis
Y
Analysis
Orvis Brothers &
Co., 15 Broad
Street, New York 5, N. Y..
&
Mil-
^POTt
'
Capital
-orandum—Hayden,
.
^
Publishers.
outlook
Swift
1,
.
—
Corp.—ReviewCo.„ 65 Broadway
Pressprich & Co
street, New York 5 N. Y
Power
Report
N
Corp.
Shipbuilding
w.
West
'
&
rf%Law °EdhoKCb.
M.
Vancouver
Water
„
Sprague
821
&
•
IaanUkrtrCerP^ukeeaSt2Miwt
memoranda
—
Ltd.,
Hastings
Harsco.
tions
^.
Smelting
&
Canada—Analysis—C.
Oliver
S
N-
of
P.™" Consolidated
Ben-
road
New
Banks—Annual
Steel
Fahnestock
.
Co.
News
Dry Dock Co.
bUc
Co.,
P.ttston
Consolidated
new
monthly magazine being issued by
Francis I. du Pont & Co., 1 Wall
Street, New York 5, N. Y. In the
Securities
Progress Report—Smith, Barney &
Co., 20 Broad Street, New York 5,
Newport
Harris-Intertype.
York.
N.
&
General Electric—Memorandum-
Company of New York,-Inc., Ill
Broadway,
New
York
7, New
Major Revenue Bond
analysis
Report —Taussig, Day & Co.,
Inc., 509 Olive St., St. Louis 1, Mo.
Flour Mills Co., Iwaki
Cement, Montgomery Street, San Francisco
and a
survey
of the
Steel
4, Calif.
Industry.
*
*
*
Yamaichi
views of Rockwell Standard
and
Bait more
&
Ohio
Railroad, .BlawKnox Company, Glidden Co. and
Hoopers Co.,
Money
&
the
Dollar:
A
Dilemma—Discussion in February
40
Redpathi 2 Broadway, New York
4^ n, y. In the same issue are re-
Corp.. and data on
Frigikar
of
on
A?Hofil*
Analysis—Auchincloss, Parker
,
Inc.
Hammill &
Co., 14 Wall Street, New York 5,
,
Co.
—
7, Pa.
Freightways,
pon
mation
of Amerle.'
Analysis— Shearson,
—
61 Broadway, New York 6,; Avenue,
Y.
—
,
&
—
N* Electric & Gisafi o rfa I Bank Public ■ Service^
r,uiinj„inhio
selected
Hutton
Jeacon"—Nomura
Phdfaaeiphla"
Containing
Japanese Stock Market—Study of
uhanges in postwar years—In cur¬
rent issue of "Nomura's Investors
York
Estimated Capital Expenditures in
the Intermountain
Region—1960—
Discussion
First Security Bank
of
Utah, 79 South Main
Municipals
—
stocks
portfolios—E.
Boston
Ralph E. Samuels
Exempt
Bombay,
Circle Tower, Indianapolis
4, Ind.
Japanese
Chilean
&
Tax
Street,
—
Co. Ltd:,
West, Toronto, Ont., Can.
Street,
&
Steel
Industry—
Harkisondass Lukhmi-
—Bulletin—City Securities Corp.,
—
Canadian Mining Stocks—Outline
Knox
on
New
Society of Security
Analysts
UI
Tight
avail¬
Re.
the
Amnorandum_j. A. Hogle &
Co.,
Hallowell,
SulzWaU street> New York
5> N £
—
Rnildina
Building,
—
Pitney Bowes Inc.
Hamam
Indiana
and
Money —1960 Re¬
Outlook—Harris Trust
and Savings
Bank, 111 West Mon¬
view
Also
Iron
15 Broad Street, New York dass, 5
5, N. Y. Also available in current India.
Foreign Letter.
^
..
Co.
memoranda
and
—
pany,
.
Corp.,
F.
Associates, and
Trailer
Glass Inc.
Burnham
View—Monthly Invest¬
Letter—Burnham and Com¬
Polaroid
Shumway
,
Co._~
before
•
Small Airplane Producers—Mem¬
George A. Hormel, Cudahy, Sears,
&
Co., Standard Oil of
of a talk
by President R. G. Rincliffe
Philadelphia Electric Co., i000
Broadway,' Chestnut • Street, Philadelphia 5,
39
Co.,
ysis of United States Fidelity and
Guaranty Oo. of Baltimore.
sociates, Inc., Swift & Co., Wilson
&
Co., Oscar Mayer, John Morrell,
Hygrade
Food
Products,
Roebuck
&"
auon
corporation
colonial
Co. and Ranco, Inc., and an analAutomotive
prints
(formerly
Suez
New York 6, N. Y.
are
Metal
can
de
p;nancier
Broad-
;NewjtorK b, N. Y.
"0J-Study^-Bacon,
!tr.1f\,Ne.w„ Y_°„rk=i' N;J; *5?
available
reviews of Ameri¬
THE FOLLOWING LITERATURE:
^Schwekkart & Co 29
way,
Harves-
Philadelphia Electric
p.
Industry—Review—A.
Kidder
UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE
PLEASED
TO
Inc., 46
4, N. Y.
Thursday, February 4, 1960
ard Brands, Inc.
New York
AND RECOMMENDATIONS
.
ter Co., Kennecott Cop per
May
Department Store Co. and Stand-
both as to yield and
market performance over a 20year period — National Quotation
INVESTMENT LITERATURE
.
.
bulletin
5, N. Y.In the> same
data on International
are
Averages,
IT IS
Financial Chronicle
The Commercial and
Corp.—Bulletin1
&
Co., 40 Wall
York 5, N. Y.
Marine
Corp.—Review
PLYMOUTH SECURITIES
CORPORATION
92
LIBERTY STREET
Dlgby 9-2910
•
•
teletype
N.Y. 6.
•
N. Y.
N.Y. 1-4530
Volume
191
Number 5922
-
.
The Commercial and Financial Chronicle
.
.
that
Aftermath in Steel.
in
sary
'
to
prove
and
By Roger M. Blough,* Chairman of the Board, United States Steel
Corp., New York, N. Y.
-
,
\
>'•
Background and terms of the steel settlement
of
of
recent announcement
of not
contemplating
our
and
other factors,
hold
and that
commitment
no
based
asked
was
price rise in abeyance until after the election. The canning
industry's search for a cheaper substitute for steel is used to illus¬
Final settlement is
negotiating
competitive advantages to the
toward
of
contract.
judged less inflationary than those heretofore
summated after World War II. New advance in tin
its
a new
Basic
then
con¬
a
are
casting
that
rumors
in the canning
one
speculative
a
in
Realistically
some¬
times
call
"subs t i t
for
in¬
United
a
must
make
sible
for
steel"—
use
that they are
won d e rin g
what
a^
alu-
minum,
in¬
made
stead of
And
it
would
it
employee-point
,
view
of
only way that we
the -present
good
maintain
So
been
in
view
the
of
competition,
.
not
only in your field, but in
many other major steel products
told that glass and paper are
ing their competitive
edg¬
further
way
coincidence
that when
another
out.
.
outset
appears
'
v
_
_
;
....
.
upon
just
makers
can
have
fathered
In
in
off-shore
in
recent months.
economic
repeated
,j
.
saying this, let
basic
few base boxes of tin plate from
a
of
Hence,
will
it
the
that
anyone
hardly
surprise
topic
of
my
tion
Since
reached,
has
just
become
settlement
two. weeks
was
the
foot¬
force
sure
which
that
:
/
the
not
am
has
quite
^
statements
which
both
-
made
been
on
either
was
or
not—
was
might be—inflationthat the credit—or the
perhaps
or
and
ary;
blame—for
the
settlement
And
should
dential
*
candidate—a
\I know until after the
initialed.
was
but
it
auestions.:
the
Lacking
niscience, I
in
volved
a
few
like
start
.
there
;
;
of
om¬
at
was slightly in¬
settlement
there
simple
the
facts
mention.
to
And in the
•
unan¬
'
shall not attempt to
the
would
are
;
power
arise, but since I
-
T
all the questions that may
answer
-
many
^
that
Let
beginning.
beginning, of
there
is—as
I
me
always
must
be—the fact of competition.
(
intimated
made
of
from abroad,
before,
tin
are using
plate imported
some are
Some
minum.
.
..other substitutes
are
trying alu-
thinking
.
of
for steel.
point of view
•—and from an employee point of
; view—I can say that this poses a
:
-
o
From
a
lieve,
serious
deadlock.
in
The
union not
only refused to bargain
but after negotiating set¬
der these circumstances,
ministration
parties
company
challenge which: we mot only have
which
upward.
A
ultimately
great
have
recom¬
increase,
cent
both
made
in
confusion
the
that
surrounds
it.
nothing has been more con¬
tusing perhaps than the conflict¬
ing estimates of what the new
package will cost.
One way
the
of figuring the cost of
settlement
terms
union
cents
in¬
turn
And
the
cents
and
talk
to
used
in
by
the
many
ployment
millions
for
of
of
30
each
Do
pen-^
ture
another seven cents
of-two
finally
new
1.8
wage
cents
we
of
on
under
with the
that
had
cent months.
sions
Terms
period covered by the
the
contract
new
even
what
The
dustry?
incre¬
concerning
benefit
provi¬
insurance,
visions
a'
The
higher-
This advertisement is neither
;
\
,
objective,
the
crease
those'
and
from
come
present
the
a
wage
true pic
increase,
employees in
is
answer
some
in¬
our
ment
agreement will
in¬
total hourly employ¬
costs
Since
adjustments.
output
per
industry has
risen
by an annual average of
only about 2% over the past 20
years—and since this 2% is about
man-hour
the
in
same
in
as
our
the
the nation's
rate
of
increase
productivity—it is
Continued
obvious.'
on
page
an
offer
to
sell
solicitation of
nor a
offer to buy
an
any
of these securities.
The offering is made only by the Prospectus.
February 4, I960
NEW ISSUE
600,000 Shares
if
attained,
everyone—employees,
just
—
and Sons,
Incorporated
inflation
as
won
Capital Stock
(Par Value 70 Cents Per Share)
t
«
.5
.,
.
•
(.
t,
i
,
<
1
»r
•.
.*
three
when the last steel ne¬
took place.
And since
that agreement proved to be one
ago
gotiations
of the
most
Price
history, it was obvious that the
objectives were incompatible
and
-
--
It
for
-
bargaining progressed
things became evident.
became
the
an
that
•
the
several
clear,
union
for
would
be obtained in any state in which this announcement is circulated
from only such of the undersigned and other dealers as may lawfully
offer these securities in such state. ,
The Prospectus may
irreconcilable.
As
-■
example,
not
settle
Ira
employment cost increase
could
out
$10 Per Share
inflationary in steel's
two
Haupt & Co.
conceivably be ab¬
of savings that might
expected
on
the
basis
of
the
long-range gains in nor¬
productivity.
It
was
also
painfully clear that output per
A. C.
man-hour
Hallgarten & Co.
Allyn and Company
Incorporated
in
the
steel. industry
man-hour .have
risen
in
the
Shields & Company
Shearson, Hammill & Co.
had been rising at a much slower
rate than employment costs per
Blair & Co.
last
Incorporated
.
,
20 years,
despite the huge capital
expenditures that the steel com¬
panies have made in new, more
efficient plants and machinery.
Beyond ; that
it-was
apparent
Courts & Co.
illfflil
pen¬
30 months.
cover
new
Hill
■
re¬
;
Compares Settlement
As to the
been
steel union in
/
agreement than it had
years
offer,
contract
settlements
made
vacation costs J
alone;
costs
must
to the
me^ns
increases
for
previous
compares
last
industry operated dur¬
ing the past three years, and with
where.
2V2
insurance,^'about
three cents for
or
naturally had it3
objective; and that objective,
said, was to gain an ever richer
it
each
it
and
negotiators—to allow eight
sion benefits,
for
is
frequently
for
how
other
wage
two-tenths
and
companies'
of the companies by
an average of from 3V2 to 3%% a
Sunday premiums,
year, including cost of living, re¬
insurance, pensions, social seem,
duced
by
any
insurance
cost
rity
payments,
and
incentives
Since this cost increase
adds up in the end to 11 cents of creep.
will vary considerably from com¬
increased employment costs — not.
pany to company, it is not easy
seven cents.
to be more precise.
Do we help our inflation prob¬
In comparison with say 3%%,
lem
then by deluding ourselves*
the
seventh offer of
the
com¬
into
talking about seven cent '
panies made during the negotia¬
when the real cost push on infla¬
tions would have added, as I have
tion is 11 cents?
For the steel in¬
said, about 2.7% a year to hourly
dustry
the
difference
between*
employment costs without allow¬
seven cents and
11 cents is many
ance
for
possible cost-of-living
millions of dollars in direct em
holiday
con-,
that settlement "—' and
especially
about
the
economic
provisions in it—so perhaps it
would be helpful to you now if
I would try to clear up some of
And
with
more
for
and
seven cent
a
of this increase
contradictory
been
item
industry,
is
the
a
which the
job classifications, plus the effect
accepted.
many
statements
steel
for
sions
and
supplemental
unem¬
in¬ ployment benefits are for a full
the
36 months, while the wage pro¬
employment cost
that
in
parties
which
settlement
a
total
and
measure
our
with
little
the
set¬
the size
of
with
the
noses
volved
officials in Washing¬
ton-sought to bring the
together and eventually
mend
is
that Ad¬
steel
Turning then to the settlement
itself, we had better see what it
constantly rubbed into
thing called cost.
We
also have a good idea of what
pushes costs up and how difficult
it is to keep them within bounds.
Why then should we understate
our employment cost increases?
our
the
you
picture
*
business have
our
that
total cost is, I be¬
only meaningful way
the
actually
involved
are
with
the
settlement, or
that matter any settlement.
Understating Costs
who
hour
an
of
cost
where
The
in which to
effect
but shoulu
so,
total
is
mal
Some, in the canning industry,
I
of
historical
Competition
cans
to do
want
We
own
•
be
.
costs
public
sorbed
Starts First With Substitute
-as
tlement.
you?
hurts every one.
But the union
that
course,
kinds
production
costs
is,
of
the seemingly endless rise
that
eral
as
agreement
phase is
it will ever get,
leaves
still
far
so
So; that
about as clear as
swered
if you
41 "cents
to
That
in connection
.Now you can look at it this way
The union's refusal of that offer
and every one else in the gen¬
ers
which
name
had not been mentioned
<
39
com¬
on
offers.
various offers
real
read about comes into the
this
made.
customers, stockholders, pension¬
certain Administration officials or to others, even
including the father of a presi¬
-
rain.
cause
talking about here
deeply in the rising
would help
either to
go
-
in
the. increases -granted look
favorable
in
comparison
pretty
So our basic objective was to
obtain what would in these terms,
be a non-inflationary agreement.
sides, I gather that the set-
tlement
-
by partisans
infla¬
are
industry.
~
have
of
cost
of employment; for
employment costs—direct and in¬
direct, represent more than threequarters of all costs in American
heading
are
'y "
'
course,
in the
the ball and
line they
for. !•;
From
I
team
which goal
y
light-
viewed
protection
other bene¬
and
of their
those
,
And
in
or
increased
pension
the effects
man-hour, plus—at maximum
three
cent
cost-of-living
adjustments.
envelope
pay
of
in terms of the
important single element in
rising
such
skill
we
prices
most
Washington tackmystifying speed
respective
and
meas¬
cause
cause
the
of
causes
production
ball which has been passed around
fields with
the
not
streets
wet
rooted
are
it
ago,
well-handled
a
The
flation
steel
the
merely the
Bargaining Fundamentals
respects a
some
a
have
I
times before: that
are
inflation
like
repeat
that
it; that rising prices
paper\ is
"Aftermath in Steel."
For that aftermath has been in¬
teresting and in
trifle confusing.
me
fact
many
rising prices
ure
that
inflationary effect
production
costs
or
in our prices.
'
;
rise
a
in¬
an
costs
an
our
cause
prevent
employment
would exert
to complete the pic¬
ture, there is a hint that some of
the
or
basis—you might say that the
industry agreement involves
package of 26 or 27 cents
—two
at the '"cerning
us
negotiations, that
to
try
in
crease
quite often to edge
evident to
was
these
of
must
we
material edges in,
one
seems
•
-
■
;;And
it
well, it
as
into the container world—and by
strange
per
his
And that is why the steel com¬
panies have constantly presented
set-,
new
in
form
new
em¬
more
fits.
parcel of eacln with
earlier settlements that have
in expectation
been
was
efficiency that the
a
the
of
,
in
total
a
year,
created
cash
the
steel
non-
that
-
a
basic
a
nally adopted.
cer¬
jobs in the steel industry and de¬
velop new ones.
Roger M. Blough
Then, too, I
.•
the
can
cost.*.
-have
many
management of
lower
that this is the
d.
even.:what
would
two
automatically to the
ployee either in the form of
reckoning thi
your
plus a cost-of-living
protection different from that fi¬
a
goes
tlements have been announced
this
their
on
per-
m—a n
do
you
way—any
Nov. 15, the last
of
the seven
offers which
they
put to the union during the course
of the negotiations.
It called for
employment cost increase of about
2.7%
That additional four cents in cost
in
for
When- we help them
competitive problems,, tlements in other industries, with¬
drew its previous offer and raised
we then and only then also find
It is not only the face amount
its demands very substantially.
a
solution to our own;
' of a seven cent wage increase thai
So it was at this point—and un-1 touches off inflationary forces.
I
And may I add with emphasis
likeyand ho\y
it
plate and that is
to
too.
solve
look
Jor
pos¬
continue
our purpose,
lems,
steel,
would
we
and we realize
they have competitive prob¬
that
can
of
tainly
knows
to
in
us
competitively
canners
tin
our
of
one
Steel
it
but
happy to
accept,
every
States
e
t
u
to
we are
and
part
are
other.
of greater
but
challenge that
accept.
a
If
9
bul
—
creep
.•
efficiency in steel.
inconsistent issues;
not
are
they
maker.
alternative
no
the
our
eye
direction of what those in
dustry
two
or
industry, have been
our
rapid improvement
more
panies made,
There
the
negotiations;
or
and
the
Issues
were
the
productive
They
plate is hailed for
can
with
scale
wage
cost
nothing
pyramiding" effect of wage
increases
on
so-called
"fring.
costs," or for cost of living.
interests
connected
the
insurance
efficiency
the
in
nothing for escalation
inflationary agreement and co¬
operation
at* the
plant
level
a
trate the realities steel had to consider in
im¬
businesses,
Two
These
given to
or
in
ments
neces¬
was
ways-to
the road¬
constant -improvement
competitive position.
issues in
competitive
on
eliminate
i
,
increase in the gen¬
any
better
productive
our
to
it
way
find
everyone
head to dispel illusions held as to whether they are or are not infla¬
tionary-inducing. Moreover, Mr. Blough emphatically declares that the
era! level of steel prices for the present was
some
respective
blocks to
.
provided by steel
are
(565)
H. Hentz & Co.
Hirsch & Co.
30
10
Methodology in Long-Range
Business Forecasting
By Elmer C. Bratt,*
Areas
in
which
to
be:
manufacturing companies with
national
a
market, contractors, public utilities, community and regional planning,
and
demographic
developments.
Prof.
Bratt
stresses the
need
for
long-term forecasts in facing critical questions before these reach
critical stage
thetical
r.tle
-
ideas
Such
hensive
tion
a
table
all
a
and criticizes methodology employed in making them.
ing,
pleasantries
the ultimate is reserved for
those
The
that
if
not
do
going
happen a
months
hence, it is ri'
diculous to try
to tell what is
going
,
to hap¬
pen years into*
the future. To
highlight
the
whimsicality
it
is
almost
traditional
to
Dr. Elmer C. Bratt
that long-
say
term
forecasts
...
As
Barnett
has
tirement
of
at
a
time
so
far distant
that everyone will have
all about the forecast.
The
pleasantry
forgotten
be good fun,
but it is dead wrong. In the first
place, we do not wait until the
target date to see if the forecast
may
is
relationships
use
of
expressed
past unspecified
it, a
complex set
but
implicitly as¬
sumed to
be
exactly duplicated
in
the future.
Frequently, this
simply is not the case as demon¬
are
strated by close fits which imme¬
diately begin to show substantial
departure from the data as the
projection period rolls into history.
right. And in the second place,
it is just as crucial in the current
•outlook as a short-term forecast.
Let us say that you make a long-
That result is most likely if total
activity undergoes rapid change.
For instance, many secular trends
term forecast to 1970
fitted to
critically important period of this
data give a poor
postwar forecast. There are, how¬
forecast is up to about 1965.
ever,
lowing
for
prosperous
current
The
1975.
or
Al¬
depressed
or
conditions in the next
should
few years, should they occur, we
must judge whether or not the
forecast is coming close to the
the
of
Long before 1970, the out¬
If in the
get
of
use
materials
for unsatisfac¬
reasons
tory results.
we
mark.
1
prewar
other
or
an
to
i
trends
tion would produce
to assist in
cost of mistaken
For
to minimize the
policy judgments.
businesses the longterm outlook is as critical now as
many
the current
expansionary or con¬
tractionary development. Expend¬
iture
durable
on
investment
is
and
rapid
use
coal
The
jections
to
business
forecasts
represents
In
our
provide
long
by
range
-
no
pro¬
means
outdated
an
experience,
practice.
have noted
we
that many businesses
rely
on pro¬
jections
made in this way,
al¬
though frequently no mathemati¬
fitting may be involved.
Even in sophisticated
work, secu¬
logically founded on the long-term
outlook, but it is an extremely
cal trend
important factor in the short
lar
as
run,
indicated by the close relation
between plant and equipment an¬
ticipations and short - term eco¬
nomic change.
Some analysts,
who
emphasize
turbed
by
especially those
theory, are dis¬
the
idea is justified by our
knowledge
of
behavior.
Long-term
move¬
are
guided
functional
by
relationships, but sometimes
difficult
tion
to
defend
that
to the
term
Little
doubt
it is
assump¬
regarding short-term
ments.
with
move¬
respect
functional nature of long-
relationships should be found
in the minds of those
skeptical of
our
position,
for
they
cerned with models
fied
are
con¬
single functions.
Questions
might be raised on shortforecasts
developed.
If
which
not
are
so
skepticism re¬
garding the validity of short-term
our
functional
relationships is given
any credence whatsoever, the free¬
ing of long - term relationships
from
the
complications
of
tran¬
sient
shortages and excesses in
demand might be recognized as a
strong point.
trated
larity
For
This
by the
of
long
may
be
comparative
-
term
illus¬
regu¬
movements.
instance, in the past, growth
of the
steel
product
has
industry and of total
been
used
making
projections
because
better method is available.
in
no
fairly
similar,
disposable income to represent
important determinant of the
growth of many consumer goods
or
ap-
to
have
famous
been
"law
mind.
that
irresistible.
of
growth" in¬
symmetrical logistic
corporating a
or
a
Gompertz
curve
Although
to
comes
cannot
we
deny
the
employment of these
did, on occasion, serve a
curves
useful purpose, that has not been
the most common
experience.
Laws
of
growth
function
beyond
of
expressed
time
the
are
limits
of
as
a
generally
under¬
our
standing.
As
Daley's
pendent
other,
upon
with
growth of
tries
is
the growth of every
the
limitation
that
the
total
limited
all
the
by
which will
sources
of
interrelations
sub-"
ing secular-trend forecasting if
total
lem
at
of
developing
the
point
in
no
Total
ability
be best represented by
tial for some overall
re¬
energy
the
not
amount
of
of
for
BTU,
unit
to
requirements, is
of work and
put;
materials
product.
a
tracing
the
often
measure
a measure
physical out¬
work
a
fuel
tion:
motion;
simpler
ments
power,
variables
relation
in
to
each
are
etc.
studied
other.
On
a
level,
regional requirefrequently employed as
are
separate
a
breakdown, as in the
study of sales of the electric utility industry. An increasing use
be that, at the relatively concrete level on which the
analysis is made, the most important interrelations
between
less, it
heat,
The several
between
not
may
of
two
classifications is
Developments of this
or
more
apparent.
outlets is sensed without too much
sort
difficulty.
satility found in making single
industry projections than in relying completely on a master input-
End-Use Analysis
...
The purpose of end-use analysis
of
specific
separately sales
customers is to visu-
uct
the
as
made of
uses
ships.
a
clear
table
If
the
to
the
greater
study
ver-
relation-
input-output
available
were
prodresponsible for
forces
make
output
projecting
may
table
for
checking purit might, however, provide
growth
apply
poses
industry
concerned
is
to
ucts.
highly
a
of
Interindustry relationships are
effectively portrayed in in¬
put-output
tables.
Supply
and
tries
be traced
can
of
will
remain
output
product
any
constant,
table
to show the
in
could
impact
a
inputemployed
by
be
can
illus¬
is
an
first
industry
,
be
-
industry
car
1
of
of the
class
owners
and
of
replacement,
each
of
these
can
be
explained" and
assumptions derived to
employ in
groups
qifriculty is
replacement
When
broad
effected, it is
anticipate how
case
The
faced
in
because
greatest
projecting
of
7
n
n°I
as
sufficiently
were
into
the
possible to
detailed
use
industry
stability
thp
tr+n
urn
group,
i
in
nc
as
the
washing
saturation^
vfearie,
of
teS ®
ronoent
PrrtrUrvLxJ
A
Jhp
w
t
consumer
and
cood
g00d'
1-
1
the
the
'
de-
econometric
an
mediate range
of
is
yet
as
these
undeter-
methods
except
secular
Independent-variables,
however,
cannot
always be projected any
readily than the dependent
more
variables.
ticularly
a
This
difficulty is parto the use of
relevant
single econometric
demand.
Methods
equation of
for
providing
can
give fuller
\xt77
*'
•
Whatever the problem of prohL
g lnd(?Pendent variables may
*
•.
-
„
•
Silip IS
}f 6SS6nti<ll ill
essential in
forecast.
forecast.
a
}°?v
e?Fef
ScltisfclCtOiy
If we accept
If we
the
principle that the growth which
W
occur
°SCur *n any sector or indusa"y sector
i.ndtUuS;
5VLE-am m the
f'ep'endent°n growth
a* econ°my, the problem be.
comes one of tracing relationship
*
census
'
■
mand equation. The most effecfive type of analysis in the inter-
® fr0m of growth in explanatory vari0m T ables to growth in the total econ-
case
•
be-
facto.^-
because
domestic
the
intermediate
recognition of unsatisfactory pro-°
Vsections of some of the explanainnovation tory variables
'
m
open
considered
shifting greater flexibility
nllclment deT^hnfif
eustoml?erounneieit f4-ng?e
ties.
In the
if Ifaloi if
interrelationships
thrown
it
the
and
are
customer
marke't
discrepancies
might be brought into line, but at
be
th
automaticgrowth
sales^
of
chinas
satis¬
factorily remaining
be
co-
trends, the projection of
other independent variables is
implied,
owners, multi-car owners,
he-behavior
raniH
crrnw+Vi
rapid growth
development of
out of line with those made
for
other industries; After such
initial
industry
accepted
applicable to short-term de-
above,
tracing
households,
t.n
to
indus¬
appear
least
if
reduced
are
Constant
tween a flexible analysis of relevant classifications, discussed
following customer
fluciuating income
fore¬
try forecasts might clearly
would
is
single
rela-
explicitly,
catch-all
a
new
SMS*
suc¬
insofar
reliability
mand
appear.
making projections.
circular, successive
were
be-
complicated
curvilinear.
instance, that much is mined.
dividing
automobile
In all
into the
business
-
appear
to
customer groups also
employed.
It
would
in
more
might
by em-
up
or
for
groups,
Gross
available,
comprehensive
also
widely
sales
might make from all other indus¬
to
must
procedure
more
relationships. Instead of a
demand equation, several
conwlementary equations may be
input-output table employed. Such a procedure may
technique
gained
total
are
obscurities
necessarily
seem,
to
cleared
all
customers
forecasts might then be
distributed by flow coefficients to
then
ratio
difficult
The
product
some
be
influences
The
the relations
any of
to
after allowance for the
minor
much
the
The
independent variables
usually is not entirely
ignored.
and
Product,
here
will
product totals
would equal an amount consistent
the forecast total for
gross
national
product.
The
adjusted
bring the sum of the de¬
rived purchase requirements
from
each industry into line with
their
or
that
but
with
forecasts, and
be
problems.
many
even
that
comes
;
„
tionships would
the addition of the
revised
fact
•
in
dollar terms, plausibly reasonable
adjustments could be made so that
could
partly
partially
ployment of
independently for each
and for gross national
product. If the forecasted product
in each
industry is converted to
approximations
clear,
progressed
because their
In
end-use analysis a similar
difficulty is involved in estimating new uses.
Only crude pro-
These
simplified procedure.
growth
forecasts
have
A set of
projection
has not
unsatisfactory.
a
show the purchases each
is
The
of
required
measurement is generally
be
industry
tries.
This
current
uses
cast in any industry would
imply
relation to other industries.
potentialities
table.
factors
National
growth fore¬
with
The
however,,
range
efficients, employed in a single
cedures, such as projection of equation, may be unrealistic, alindustry proportionate
past miscellaneous though such a criticism is much
the
be
been
a
This is not unlike the per-
use
far.
-
by use:of these
tables.
Assuming the distributed
supply requirements for making a
unit
i.
put-output
Tables
market conditions between indus¬
use
plexity created by shifting flow
coefficients in the use of the in-
problem.
Input-Output
purpose,
appropriately
The use of a multiple correlashifting of the use tion equation to explain demand
factors would reduce accuracy ii is
sometimes preferred by econothey were assumed constant, metrists.
Such
an
arrangement
Shifts
might
occur
because
of develops final answers
by a mechange in design or because of chanical process which
may be
substitution of competitive prodkept relatively simple. There are,
various other industries to derive
the growth level for the individual
involved
has
determined,
the
shifting weights to
this
factors, coefficients indicating the
the poten¬
relationship to compet¬
ing and supporting industries may
well
change.
The derivation of
the
For
cessively
are
supply
types relations
to the industry
and
forecast
several
is classified by
consuming
sector, and, in turn, each consuming sector is classified by func-
outlet and another. Neverthe-
one
growth.
economy may not be repre¬
sentative of future potential be¬
cause
difficult
as
being
only
alize various
total
readjustments
employed
traced
are
to
become avail¬
resource
difficult
raw
these
of
both
to
ones.
source
ultimate customers.
demand to
In
the
inferior
is
Barnett's study of
Energy Uses and Supplies inf¬
trates
the
point.
Each
to
sales
or
industries- and
outlet
single classification
a
outlets
pertinent
types
casts. At first, revisions
would be over the cycle. After the war
for
clearly indicated-for some of the instance, prospects for
the doflow coefficients because of
mestic washing machine
con¬
industry
ditions implied by the
industry shifted from approximate
because several
Actually,
0f
a better
understanding of obscure
relationships. The more obvious
relationships might1 be more efaggregate, amount of sale of the dependent fectively studied
directly by cornbut it fails to indicate the distrib¬
industry for each unit of product paring relevant classifications in
uted growth among
competing in-= of the independent use industries; making the initial forecast.
•
dustries.
The past growth of an are
employed in end-use analysis.
individual industry relative to the Even
if
the
responsibility
for
Multiple Correlation
able.
by increasing amounts of
scrap.
Petrochemicals represent a most
final
end-use "analysis
are
of
principal
prob¬
reflect growth of the steel
indus¬
try because it was supplemented
same
two
taken
production
reflective of growth.
For instance,
pig iron production
for a long time failed
properly to
substitute
The
-
series
a
the
process most
case
dures.
of the
made
were
may
practical matter,
a
or
indus¬
made to
We should be remiss in discuss¬
mention
in-
long-term forecasting by
in
interrelations, when patently important,
illustration. are traced
by much cruder proce-r
An
of retail trade.
is
Assume
heyday of secular trend
forecasting, search for an equa¬
tion
depicting a universal law
seems
customers
for
of
trated
the
The
an
radios at first may have been
detailed
been made
In
depicting uni¬
rather
term
sometimes
are
Famous Law of Growth
idea of forecasts
which relate to different time
pe¬
riods into the future. We think the
ments
trends
xuxce
attain-
ement
stantially improve our forecasting
ability.
some representation of the ag¬
gregate economy, such as the use
produc¬
unsatisfactory
secular-trend
^ 10
l°
auncuii
into one customer group. For
stance, the sales potential
relations
the basis of any
most
of
use
time goes on ii
increauin'rri
as
become
to
elaboratei inter-industry
secular
projections.
anticipating and solv¬
ing problems and
steel
raw
the
recent
power,
long-term expectation reprojected.
Early warning signals are needed
of
in
occur
look must be re-examined and the
-
other
extremely
speedup should
atomic
future
near
rapid shift from
a
steel
likely
Specula-
available.
are
on
able
long-run forecast .of
per capita consumption tof fruits
time only as an independent vari¬
and vegetables based on income
able—the secular trend forecast.
Aside from deficiencies which may elasticity and expected income. In
other cases, such as the relation
arise from abnormality of activity
of steel production to total indus¬
included in the period to which
trial output,
the dependence of
the trend is fitted, especially dif¬
electrical
power
production' on
ferences
between
the
beginning
gross national product or of the
and ending of the period, and the
need for various productive
facili-;
type of equation employed, the
ties in relation to gross national
fundamental
assumption implic¬
product, the analysis may be con- :
itly involved is naive. That is, the
sidered too gross because relation¬
factors
determining the growth
ships actually are traceable to
being studied, whatever they are,
many separate, individual indus¬
are assumed to continue to follow
tries. In final analysis, the growth
the same average weight patterns
of each individual industry is de¬
in relation to the equation fitted.
be safely made since the tar¬
get date will come after our re¬
may
or
Relationship
relationships involves the
is
few
Most Primitive
The most primitive of functional
know
what
steel
an
line
we
the
industry shows far
greater short-period variation. '
relating to the long range.
logic appears to follow the
obvious
to
but
forecast¬
on
io
«
compre-
nor
is
Of
Furthermore,
y•+_
comparable, industry
and
forecasts
Thursday, February 4, 1960
the requisite
for neither
inmit-niitDut
jection of secular trends is fore¬
sworn.
In nearly all methods of
.
iwnn-
y
pu
are
.
proxima ely represented by households, but later there appeared
only indirectly.
is not fruitful on
use in automobiles, in separate
Growth of any industry or proc¬ experience of which we are awaie. looms in a dwelling and in conWar experience, defense models, nection
ess
does not occur-in isolation as
with outdoor functions,
secular trends appear to imply. In and investigations such as repre- The
problem is intensified beactual practice the most important
sented in the Paley Report, how- cause new customer uses may not
responsible factor in most, cases ever, do indicate that a study of be clearly distinct at first.'
long-run business forecasting are of major signif¬
shown
are
problem of developing the proper
series is important even if pro¬
.
input-output cept of- dwelling units is seldom
;
a completely satisfactory
universe
classifications in the
'
forecasting
Sociology, Lehigh University, Bethlehem, Pa.
icance
performs depends on the function
to which it, is put and the
ment
in
which it is used.
The
general impression
of the rate of past growth is an
influential factor, although often
Chairman, Department of Economics and
Chronicle
and Financial
The Commercial
(566)
.
In fact'
.
a to be
eon-
even if forecasts
of
independent variables appear
more reliable than direct
projection of the dependent van.
Volume
191
Number 5922
what these assumptions imply re¬
level.
run
Possibly equadevel¬
oped between ,.t h e explanatory
variables- to
be
employed and
a
unique one.
levels
.
called
intention to be¬
activity.
in past levels,
changes
or
achieved
-in
even-
■*
this
former.
represent
projections,
fully/checked against
pected developments.
the
other
ex¬
-decade.address
♦An
should note the
which are of major signify
-•Perhaps
the
practice of setting rate-of-change
assumptions which are not care¬
achievements for we
are
certain that a great deal is
now being accomplished
and that
marked improvements have been
such as 10% above 1955-57 or a Neither is it our intention to an¬
areas
/decline in fertility from the 1955- ticipate the ultimate form which
However the relationship is de¬
cance in long-range business fore;57 level to the 1949-51 level by may finally be reached in longveloped, the critical position' of
range business forecasting. We be¬
growth of ' the total economy; is casting./Recent developments are 1965^,70. Since no defense is given
lieve -the greatest need right now
highlighted. Without some under¬ most motable -in the manufacturr-"of these assumptions question may
is to see the most promising next
ihg field. Companies with national vbe raised as to whether they are
standing of overall growth,"long; ;
*
»♦.
markets
now
predominate
and *4he most plausible that could have steps.?
range business forecasts cannot be
Conclusion
satisfactorily formulated.
The they have become conscious of the/ been made under .the circumsame
In summary, we pointed out the
point can? be made at the importance of broad movements -stances./
in the economy. Those
level of planning. Plans for indi^
producingThe ^oblem mav he'further need if or longrterm'.forecasts to
economic
overall
in
rapid
Demographic forecasts, frequently
rate present
assumptions
regarding
levels depend- on past
been
have
forecasting meth¬
odology with promising possibili¬
our
11
casting
is ..most
developed
in
manufacturing
and
in - electric
utilities.
Recent
developments
.
of this paper is to
purpose
ties. It is not
jections,
fertility
Areas Promising for
Long-Run
Forecasts '
'
The
v
contrast present
sumptions employed. For instance,
in the most recent population pro¬
.
■
implied.-
attention' to the plausibility of as-
tional relationships can be
.
are
assumptions which
ness of related
garding'the future. By emphasizing-the development of a projection rather than a forecast, the
Census may have given too little
able, the credibility of the conclu¬ for these difficulties has been dission may be. Questioned unless a/ covered. If present levels" are not
at issue future long-run > changes
method of tracing relationship to
to be expected may be sufficient,
overall growth is established.
but perspective is improved with
The use of an input-output table
the
realization that the present
may be considered to represent
may not be a characteristic longsuch a method, but not necessar¬
ily
(567)
The Commercial and Financial Chronicle
.
.
.
by
bef-re
Bratt
Dr.
the
New
Association,
Statistical
American
we
Area
Chapter Memorial Meeting
Forecasting, New York City.
York
on
Robert Stonehill
.
Joins Firm's Dept.
.
growth of total industry.
If we
look on planning as a relatively
industrial
equipment rather than
consumer
goods have come, particularly to recognize the signifi-,
cance of overall changes/: In long-
continuous process, general move¬
ment rather than precise forecasts
to estimate the degree
important because . successive
adjustments can be made as time
passes.
Great precision in fore¬
casting growth of total industry
is
not of major
importance in
«
S
local
of Total Industry
general order of movement
of total industry is not too diffi¬
cult to establish if we can accept
the proposition that the growth of
total v industry
is • dependent on
the changes occurring in resource
.'availability. Otherwise, the growth
of total industry must be traced
to demand, just as in the case of
/• The
Modern
growth theory has shown that
indicating propensity re¬
lationships
clearly indicate the
models
possibility of growth unrelated to
resource availability.
In building
these models, theorists have prop¬
the
m
smaJ'-
k
business.: In
not
been
needs
to
local
has
made
gates
less
appropriate
.
mdfGS
in short recessions may
and
A—The
movement
of
ing
may
utility represents
long-range
be rated
as
We be¬
lieve, however, that modern capi¬
talism
is competitive enough
and/ or demand is guaranteed fully
,
enough in the long run that rea¬
sonably effective use of resources
can be assumed.
This means that
growth of total industry can
be forecast
in accordance with
labor force and productivity po¬
tentialities.
This proposition; is
essential to place long-range busi¬
ness forecasting
on a firm foun¬
the
investment
ger
,
would
ordinarily
department.
writng
required; a series of equations
approach the same function as the
use
of
outlet
classifications.
Growth of the total economy is
:
.
With La Hue Inv.
Chronicle)
(Special to The Financial
implicit in .all long-range business
forecasting. - Care must be
em-,
1975 to 1980.
Haupt
Minn.'—Edmund
PAUL,
ST.
1
V.
from
ployed
which
a
,
particularly
-
.'
-a
quarter of the ahnual change
/ from 1950 to 1956-58 to con¬
tinue to 1965, and the propor/ tion-would
/
level
off
there-
after.
D- -the 1956-58
proportion to con-
-'tinue until 1980.
We
Major
question
whether .any
of
utility
much less like
tention
flexibility
Ira
with
Co., engaged in municpal bond
trading and underwriting and also
over-the-counter; and with D. H.
Blair & Co. in its corporate under-
an
implied by the
service would have appeared
range
the
lacks
associated
ously
&
in setting the level from Haubrick and Frederick E. Meyer
long-range forecast starts are now connected with La Hue
1965, a quarter to 1975 and the and in obtaining an appropriate
•Investment Company,
Inc., Pio¬
V proportion
would
level off series-to represent the industry
".thereafter.
.to be forecast. Long-range fore¬ neer Endicott Arcade.
forecast-' C-
expenditure.
or
better
helpful. A single multiple corre¬
lation equation to explain demand
companies'.., have /these assumptions makes adequate
given a great deal of attention to;■ allowance
for female family
long-range • forecasting for some '.'members who may wish to set up
time. This is less true of water/their
own households. Also, we
gas
and
railroad
companies.
I question whether there may not
think the recent decisions of ma-,,be a rising tendency for such a
jor railway companies on passen- shift, which does not appear to be
electric
-
tions,- the development of several
1950 to 1956-58 to continue to
,
,
quarter from
of
'coordinate classifications has been
change
B- -half of the annual change
The tend¬
of Fortune's survey of build- '
ers' plans to be swayed by current V.levels is evidence.
' - :
•
/ ' "
ency
where
analysis
of
lidu
in
•
change from 1965 to 1975 and
'a
used
ability
1965, half of the
to
still
careful
nresent
1956-58
to
1950
continue
long-range forecasting.
The public
snouse
annual
;.average
vfrom
have given
construction, which- confidence
might be considered as implicit
area
married
Co., 70 Pine Street, New York
City, members of the New York
Stock
Exchange
and
associate
members of the American Stock
fitting secular trends, and
are
of the avail¬
methods.
The
Exchange, H. L. Federman, senior
-input-output table might provide
.partner, has announced.
an
important procedure for co¬
Mr. Stonehill is a son of Harold
ordinating interrelationships, but
Stonehill, a floor specialist, who
remains undeveloped. This need is
has been a member of the New
now
covered by end-use analysis
York Stock Exchange for 31 years.
or the tracing of demand to ulti¬
Mr. Robert Stonehill was previ¬
mate customers. In these connec¬
Mates no, mar ed, spouse present,
S ° were primary individuals in
mccordmg to the • folio wRe-/in4'vrP ?s'
contractors confidence in the
level
n0r
these
guides
sistance of construction to declines
current
on
worn
,
a T ^
proportion of females not in-
in facing
volved
companies-
covering the national market.
some
entirely convinc-
A^iimntionq
?g'
the
Department of the
newly-formed investment banking
firm
of
Federman, Stonehill &
Underwriting
critical questions be¬
fore these reach a crisis stage. The
earliest
method
employed
in¬
use
aggre-
as '
manufacturing
con-
develop/:.:
national
ment
than in
of
conformance
•
availability.
Without
..
appear
developed.
successfully
close
inadequacy r of promising. This is because of reld adjustments atively stable and rapidly growimplied in classical theory. Fur¬ ing markets. Also, public regula¬
thermore, it has often been shown tion of rates make interest'"rate
that, in following
experience payments of particular impor¬
rather, than theory, g r o w t h in tance, leading to careful study of
resource
.
of. such assumptions. For instance,/ the projection of female
Dri
'v
individual
households
Prlmary
individual nousenoias
.does not
e m a n
primitive economies is unrelated
or^ome
change.
of
-
erly1 emphasized
to
of
Census examination, question
ay be ;raised as to 'the plausibii.
.
national markets have
cases
struction
'
f
of
at
nature
The
automatic d
forecast
,
v
industries.
•
;i
most
individual
'
•
,
S
a
Growth
,
,
Contractors have done much less
forecast showing the
general order of movement will
suffice.
the
of company
total / markef/.'W^^e ,, rates
total market. ^
thn
the
in
in
Denetrat.ion
penetration
,
case;
bv
The ri>ost rec<ent Pjopublished at the end
range forecasting the first step is.0.^?^.'
assumptions involve
to project industry totals and then r:essentlally
extrapolation of past
is
this
mustra£d
the
has'joined
Robert* Stonehill
■
companies and industries
cannot be satisfactorily established
without some understanding of the
vidual
a
crisis if
had/been
planning;
more
assumed
change
at-
reduced rate
in
later
of
years,
to/long- 'We have some reasons for raising
,; : •/" /these"/questions, but inadequate
given
/Companies whose markets are ..information to answer them satconfined.to limited areas are de- isfaclorily. -We^ believe that the
dation.
.*•
* pendent upon development of the Census could, if they wished to
local
V, Growth forecasting depends not
community.
Community do so' provide reasonably adequate
only on the amount of change pro¬ planning has been rather back- /information for answering them
jected but also on the level from ward and seldom has generated' ^ sei*les on the number of total
which the projection starts. Only effective long-range to recast ^Persons" 18 years and over other
in cases where short-period varia¬
Partly because of this,; retailers "than household heads, wives, or
tion is unimportant does the ^start- have done less on
forecasting than'-inmates implied by each of the as-
COUNTY
NASSAU
ROOSEVELT FIELD:
'
1NWOOD
SQUARE
FRANKLIN
ROOSEVELT FIELD
BALDWIN
JERICHO
BELLEROSE
LAKE SUCCESS
BELLMORE
MINEOLA:
ROCKV1LLE CENTRE:
LEVITTOWN,
EASTGATE
SHOPPING CENTER
#
-
SOUTH SHORE
v
STATION PLAZA
COUNTY SEAT
ELMONT
HERRICKSROAD
FARMINGDALE
ROSLYN
..
'
...
1
FLORAL PARK
NEW CASSEL
SEA CLIFF
GLEN COVE
PLAINEDGE •
SOUTH FARMINGDALE
GREAT NECK
ROOSEVELT'
UNIONDALE
_
ring/level/present no difficulties.
If the projection is from a tempo¬
rarily depressed level, the growth
indicated will be artificially large,
temporarily elevatedlevel artificially small. Yet, pro¬
and if from a
jection fro m t h e present level
..without reference. to the current
demand condition is a widely em¬
ployed practice. A solution to the
-problem is less obvious in many
modern forecasting procedures
/.than it was when secular trend
forecasting was generally em¬
ployed. Fitted secular trends may
not locate the growth level cor¬
rectly but at least they ordinarily
vdepict it as falling below recent
highs>and above recent lows.
r'An
effectivev multiple-correlation
manufacturers.
some
but more information is needed,
taken
.
RIVERHEAD
.
Bank
The Franklin National
••
•
,,
t
■
•
of
.
granted. Manufacturers'have -Particularly, we need the above
given substantial attention to re- series shown separately by fegional forecasting,. but to a con- males, the extent to which the msiderable extent this represents a" crease in female primary mdividdistribution
of
national
Long Island
ing / on
Many industries
particularly.
a/ total
dependent upon demographic de- ifa]1
velopments. Hence demographic
data
often
planatory
are
variables
in
as
ex-
industry
forecasting. The forecasting
irfiESrtsassr
made
fh
.
1nH?pr
rate0orv
and
category, a
whlch may have been
occurring ln the size of Primary
P
u-
by
illustrative
assumptions based
on
past rates of change are not deEffective forecasting de-
fended.
,
,
(Par Value $5 Per Share)
u
any change
The Bank is
to
offering to the holders of its outstanding
subscribe for
185,000
new
purchase
period,
any
may
undersigned
^ectlons ot Past rates 01 cnange.
change employed. Thus, similar forecasts could be drawn from
business practice which likewise
'
the subscription
forth in the Circular.
unsubscribed shares and, during and after
offer shares of the Capital Stock as set
such as these are not answered by
.of
Capital Stock the right
$5 par value, at
shares of its Capital Stock,
the rate of one new share for each 16 shares held of record
on January 29,
1960. Subscription warrants evidencing such Rights will
expire at 3:30 P.M. on February 19, 1960. The several .underwriters,
including the undersigned, have agreed, subject to certain conditions, -to
$25 per share, at
Copies of the Circular may be
the
,
under
prob-M^^1 househol.ds- Questions
lem is substantially similar to that
forecasts
provided
Pi^ns> tR.e Pr9P°r^on bf
unrelated individuals who
are
emnloved
funds
/Social Security or other old-age
Demographic Developments
185,000 Shares
capital stock
uals represent older women liv-
forecasts.
t
present levels. Endpends upon setting up plausible would indicate that plausibility of
use analysis also ordinarily starts
and - the
use
of assumptions could be improved by
'with present levels. Unfortunately, assumptions
no
entirely satisfactory solution imaginative techniques to show examination of the reasonablewith
CENTRAL ISLIP
for
equation would
describer, the
Bureau of the Census are gener- / |We
offer this illustration not
growth level even better because
ally considered authoritative. The only because of the importance of
growth levels must be considered
Bureau disclaims the making of demographic data in business foredependent on explanatory vari¬
forecasts and denominates its; re- casting, but also because business
ables. However faulty the actual
suits projections. The distinction forecasts are too commonly made
equational relationship may be,
between forecasting and projec- by projecting past rates of change
projection based on a fitted period
tion is made because the several without effort to defend the rates
will not make growth depend on
starts
BAY SHORE
alsovvto
"is
LINDENHURST
NORTH
BRENTWOOD
/sMmPtipns in each of the projection years now is provided. This
that the long-range
a -start in the right direction
This
market, so
future, is more * frequently
graphic
present levels. On the other hand,
a
d e m a n d equation sometimes
SUFFOLK .COUNTY
AMITYVILLE
extent due to the stabler re-
tail
.
'Mi
as are
obtained only from such of the
this State.
registered dealers in securities in
Blair &
Co.
Incorporated
W. C. Langley
Hornblower & Weeks
& Co.
Bache & Co.
First California Company
Incorporated
Hayden, Stone & Co.
Grimm & Co.
Boenning & Co.
...
Hallowell, Sulzberger, Jenks, Kirkland
February 2, 1960
,
& Co.
12
(568)
*
■
•
'
"v
•
.
■
j
,
..
;
.
•
•.
."
.
By Leicester W. Fisher, Vice-President, VanStrum & Towne, Inc.,
Institutional Shares, Ltd., and Institutional Income
Fund, Inc.
Today's investment considerations
officer who
City
■
■
scrutinized
are
:
.
*
•
by mutual fund
concludes capital gains
opportunities exist in carefully
selected issues of firms making dynamic
progress. Appraisal of favor¬
able
and
that
1960
disturbing aspects of the economy suggest to Mr. Fisher
whole should
be an excellent business
year. He be¬
readjustment in equity prices is likely following
the probable establishment of new highs
during the year's first half;
the long-term trend is
undoubtedly upward; it is advisable for some
switching—not all—from stocks into medium term bonds; and con¬
lieves
as
a
downward
a
servative
investors
find
can
and non-taxable bonds
sound
well
as
as
in stocks of consumers
rowing amplitude of market fluctuations of
goods
stocks
common
first
aided
to
year
of
"Golden
under
get
the much
Sixties"
her-
promises
auspiciously,
way
Indeed it is probable that by
number
year a
•of
mid-
new
.time
11-
a
investment
individual
of
Many
should
reach
ing stock averages may well enter
new
high
territory. If interest
lower
bond
and
prices
favorable
>
will
1949 average =± 100 — reached a
peak of 166 last June and amounted
to
165, seasonally
adjusted,
in
December, up substantially from
November's 156. One
or
more
buying
••
will
have
been
-Such
Despite
from
the
level,
the
possibility of a
downward turning point
further
closely
stock
market's
capital
gain
continue
to
opportunities
will
rometers
Gross National
through careful selection of com¬
panies that are making dynamic
Product,
progress.
sonal
D i
s
Per¬
able
p os
,,
W.
Fisher
FRB
by
,
reach
first
fion
or
Index
new
of
ment
quarter. The
Industrial Producnew
economy,
be
may
a
Reflecting
the
in
.
during
second
mid-year.
growth
peaks
well attain
may
unemployment
high
further1
employ-
expected to
to
decline
'; v
;
Wages
and/or
fringe
benefits
increasingly
burdensome labor
expenditures for more effi-
plants
and
$590 billion being attained dur-ing the first half of 1960. The
record GNP reported thus far was
established in the June quarter of
1959 at $484.5 billion on an annual
basis.
This
represented
raordinary
jon
increase
within
an
ex-
of $14.3
bil-
quarter—a
one
cumstance
brought
about
cirto
a
ward buying in anticipation of the
nationwide steel strike which maSerialized on July 15. The GNP
declined to $478.6 billion in the
strike-bound third quarter but a
will
..
the
first
six
Consumer
months
credit
of
will
the
year.
reach
new
records
largely because of an anticipated high rate of automobile
sales. The demand for funds to
finance all this
rates
will
might get firmer—at least through
the
first
The
of
six
months
of
the
year.
foregoing optimistic appraisal
the
economy assumes that no
major work stoppages will occur,
H.
.But while the present
economic
is
generally
climate
v
there
work
favorable,
are
certain
which
further
will
expansion
influences
tend
over
to
at
next I
or
two.
Among these are
high money rates, an unsatisfactory export-import balance, declining farm
income, -curtailed
year
residential
construction, the
pos-
sibility
of
excessiveinventory
building and a possible excess of
consumer
credit
extension.
For
the next six months or
more, how-
1
ever, the forces
pointing toward
expansion should outweigh the retarding influences.
Taken as
a
whole 1960 should be
business year.
1
,,r.+,
an
prices
territory
•
in
and
bonds
at
substantially the lowest
levels
i
in
a
quarter century, some
switching from stocks
to bonds by
I^f^i^C01RC+0U| investors.is.. in~
evitable.
But
for
appreciationininded individuals,
carefully selected common stocks will remain
National-
Product
mean
of
Personal
Income of around $400 billion and
Disposable
Personal
Income
of
some $350 billion
compared with
the record reported to date of
$381.1 billion and $335.3 billion,
respectively,
second
established
in
the
quarter of 1959.
However,
these latter figures will
probably
hav6 bbdn" exceeded when the
fourth
quarter
known.
If
totals
made
are
#
,
1960
turns
to be
out
lively strike-free
a cross
year,
ingot tons.
Our steel analyst conservatively
estimates
output of
finished steel at 85 million tons
which, using
70%, would
duction
conversion rate of
a
mean
of
ingot
an
121.5
pro-
million
tons,
Other informed estimates range
high
130 million tons
as
Total
1959
production
or
amounted
to about 85 million tons of
+v,_
.
on
^ .pa *
as
more,
ingots,
^
,
^ years demand
for
with
1958.
erallv
*
ODtirriistic
outlook for
in
nesses
of
in-
crease
was
tained
in
power
output
trend.
The major electric utility
companies
revenues
compared
approximately
1959
and
should
will
and
1960
mainthe
enjoy' increased
earnings in 1960 as
with
1959
are
gen-
regarding
the
their respective busi-
the
coming
year;
On
industries, both sales and earnings
for
be
the
at
the
first
half
least
5%
of
1960
greater
should
than
in
corresponding period of 1959.
Available
information
in-
to
as
not
higher
jng
,
.
Most
are in
could
these
debt
possible
adverse
economy
as
earnings
over
the
three'years. At the
other
with
the
on
farm
destined to
population
experience
disappointng
next
same
be
tractive levels for
whole.
a
nation's
The
effects
at
existing relatively high interest rates, bond prices on
average
are at substantially the most
at-
obliga-
decidedly burdensome
selling
extraordinarily high levels 'in relation to current as well as antic-
of
without placstrain on the fi-
render
tions
averages
high territory.
Many
stocks are
new
On the other hand, in
reflection
consider-
of the people.
But any
downturn in employment
nances
sharp
stock
common
individual
to
figure
undue
an
uncertain.
Relative Merits of
Stocks and
Bonds
dangerous;
a
in fiscal
earnings
•
25 years,
some
Only in a few years this country
have the yields from bonds ex.ceeded those from stocks. This
circumstance usually occurs when
stock market levels are approaching a peak and public participa-
tion is high—such as in
1937, for example. C
'
an-
in 1960.
The Government's farm surpluses
are well in excess of $9.2 billion
year
;
;
Based
»on
therefore,;
and the total is likely to increase
-past
J
;
experience,
investor
an
1929 and
would
be
well-advised to-switch ai
portion
.of Jiis holdings from stocks" into
bonds. The risks of capital loss—
on a medium .term basis—would
appear to rbe lesa in bonds than
in stocks; But to switch an entire
these
enormous
for
pay
goods
be
services,
and
cheerful reading for stockholders,
principal
downward.
question
A
place
cautious
the
in
in
points
month
one
to
77,
the
.
import
balance.
The
balance
over the past
of
payments deficit for 1959 will be
second
half
of
more
optimistic
might set the transition
time
late
in
1961
1960
some
beyond.
or
The
outflow
the
of
poses
In
backing of
two
our
years
would
create
the
second
half
indications
of
pay
the
aees
nrofits
and
dividends
will
anticipate any of " these
moves
salp
Z,
r.
-
Board
mous
officials
,
,
are
factors
iiSuenws
As
Reserve
quite
unam-
that mfla-
the
in
'
_
Federal
their feeling
in
tionary
are
„
and
economy
a'wnsequeMe
^trongl^convLe'd
to which candidate
We
expect
ex-
history will be
However, tight money
high interest rates of them-
bespeak
high
a
level
of
accurately^ determine wh^T s17-
nificant changes in suoolv-demand
relaUonshios
relationships
will
will
occur
occur.
.
Meanwnile,
continues
to
the
creep
cost
of
upward.
living
The
s
xeadjustment m
i
+hP
new
dnrina
VGg
a
vPstnr
vpiv
Sfi Wri
ttv^hVp InH
wp?1
>onD0rtn^t!p«
non
as
1^. ST'&
pirty
thr0."gh careful; selection of comhat are;.making dynamic
will
L^polt'
in
the
first/; e
mote.
WHVl
„.HnT._i
?" '
,,
Q„n
oSf.0n
legfsls fvl'S
§
•
;
With Lakewood Sees.
^Special to the Financial chronicle)
1 'special to Tiie financial Chronicle)
,
*
,,
.
Dubray is
^""«es
troit
with
;wnn
f°rthcoming Inc.
iw
.l"6
1
i
Avenue."
He
Livingston
and
was
selling
formerly
Williams
Williams
Saunders,
&
Stiver
"
&
Co.,
Co.
-
Now With Walston
U- S. Government Clement; is
Such a move would permit
the Treasury to be
competitive
with private borrowers in
G.
Lakewood
Corporation;i4714 De-
llUl+ng ofTTthS 4 /4^° ceiling PORTLAND,
bonds^
Ohio —Gilbert
now., with
in Cleveland.
^ "
wo^ld SluenTf the economy
-;3^-^
.
.
qfork
pommon
establ^hmiJit ofS
nfS
ponfeivati
n^ndpd in-
hiVh«
°fte" caul!
that
connection
when
Aspects
:rgor hwfenth^ tVnDav'i f S/C°,k
Election Day
is"more"re
would
taxes
-large discour-
Drobable
in
businessmen to defer as much of
"?eir forward planning as possijS6'. .1 1,s Partly because of this
repeated.
selves
and
«"d what
for banking acHistorically
tight half than
high rates sooner, or when
later have slowed up business
pansion.
nf
tolae nfc)reeuncertailni-nethiSlikeIH LAKEWOOD.
demand
commodation.
and
Year
are
reluctance to
/.utilities. .Whether or not there will
Presidential election
be a turning point in the market
n
^
oeS of Tmk m 1960 capital :gain opportunities
risingybusiness Uncertainties is wiU continue -to be' available
th^
that
supply should be careful v
regulated to the end that brakes
be applied to an excessive snow-
money
Election
they
money
balling
Some
econ-
f^OC^QftnriC^fii^S
beancomfortably greater in 1960 I960.
Treasury
(5)
gains
^+1
t
sales,
stocks
capital
"paper profits"
duction in governmental expenditures at home to effect a soundly
present
continu-
long-range pospects for fur-
common
a
balanced budget and (4) increasaggregate ing the price of gold. We, do not
1960,
that
are
point in
some
laree and
are
omy
extent that has prevailed over
the
past
ffi PphS
ther dynamic growth of the
serious problem which might be
solved in one of four ways: (1)
any
pinpointing of the change the elimination or sharp reduction
from a rising to a falling trend, of foreign
aid, (2) an increase in
Allowing for the possibility that income taxes, (3) a significant reestly downward at
c^mon stocks ^ave
fuSnd WanS
comDanjes
-the
have
stocks
common
P™*r
our judgment there are too
many
imponderables involved to attempt
business may begin to turn mod-
^5
^[^S10(^S)
gold from this
early threat to
no
so.
rfar
increase
country
or
of
money but a
finding continuation of the outflow to the
at
30 years
Jheth*si
the
point
While
move.'
^
lowest figure since August 1940. "ably below ;
pr^eht - levels, at
The Department of ^Agriculture • some
^unpredictable-11 m e, the
warns that farmers may expect
^g-term trend ::is rundoubtedly
their -profit squeeze to become upward,
j;
v v? ^
eve" tigher during 1960.
It is of interest that the ampliAnother
cause
for concern
is tucie
of market fluctuation of
the nation's unfavorable export- ?ommon stocks has been narrow-
appraisal
turning
injudicious
-
average ; of
common stock
prices may well falb quite apprer
the flow of dollars into
the United States in 1960 and reminds of business analysts centers duce
the nations international
on
the.point at which the trend payments deficit to under $3 bilof
business
will
begin to turn Hon
The
an
The "parity ratio" declined two the
coming
orders
and
production $3,650,000,000 or more as against
plans, together with sales projec- $3.3 billion for 1958. In the opintions, pointy,to the strong likeli- ion of the Department of Comhood that corporation reports for merce, rising exports of
cotton,
the first half of 1960 will make iet aircraft and
machinery will
electric
exceed
ably
ers
.
the basis of opinions expressed
by
leading officials in a variety of
and
This rate
greater than
of approxi-
Corporation executives
of
year.
LJbl will be realized is
in reflection of
surpluses
and
mounting .numbers of livestock,
mately $32.5 billion for 1959. Such farm prices between mid-October
an
increase would compare with and
mid-November declined to
a
gain of. around 7% in capital the lowest level in 19 years ; in PPTtfulio of well selected
equities
spending in 1959 as compared relation to the prices which farm- into fixed, income Securities would
in this
a
h-
average of estisection of business
1960 should be 8-10%
the
projected total
electric power has been mcreasing at an annual average rate
7.6%
4
to
achieve^ budget- surplus
other issues do not appear
overvalued in relation to
based on historical appraisals.
mark,
executives, capital expenditures in further. Largely
rela-
a
steel production will probably reach a new
high in excess of 1955's 117,036,000
»
average
stock
near-record
high
Gross
excellent
xi.
With
A
retard
the
mates of
might
help»s500 billion would
activity will be
result that money
continue firm — and
great with the
the
on
be surpassed in the June quarter
early in the
— .once
again,
barring
major
while a
strikes.
billion
$50
tained this ratio is
seems
Generally
.Optimistic
•
Based
large extent because of broad for-
sharp increase is certain to be rerise. But
notwithstanding the high v'ealed when the figures for the
wage factor, aggregate corporation
Sipal quarter of 1959
become
profits should come close to estab- available late in Januarv. • If the
lishing a high for any first* six- '500 billion mark in the first three
months period.
Inventory build- months of 1960 is not exceeded
ing, on balance, will characterize there is little doubt that it will
equipment
Executives
'
t
3f
and
will continue to
go up as will the
cost of living. In reflection
of the
cient
Many forecasts have been made
recently as to the likelihood Of a
Gross National Product in excess
rise,
consumer
spending to reach seasonally adjusted record levels.
cost,
;,V
Record GNP Ahead
Leicester
,
should
the
v :-V"';"••,,
al In¬
and Steel
Production
.
available
Income,
iPerson
come
be
Business
recent
followed ba¬
as
-
-
tor.
tablished.
e s
.
new
highs in this index during the first
opportunities will be available for
half are virtually certain.
the conservatively minded inves¬
industrial
activity
the
indeed it could rise to
Industrial output, as measured
by the enlarged RFB index—1947-
j
ipated
amounting to about 15% of Disposable Personal Income. As long
as
the
economy
is well main-
greater. A similar increase
is anticipated for petroleum prod-
_
record $39 billion
a
4-6%
in 1960 while lead-
increase
approaching
bonds to institutions
while Total Consumer Credit has-stwo or
passed
in 1959 and, based on
the outlook for the first half, total
sales volume for 1960 should be
the
choice.
issues
record prices
drift
business
and
industry enjoyed
$24 billion
nar¬
in
chemical
record sales volume in excess,of
ucts.
rates
records
.for
the
long
and individuals
a situation
much
to be desired.
The President s Budget
recommendations, with particular
emphasis on military
expenditures
and foreign aid, will receive
close
attention
frorn
Congress.
But
whether ..the President's desire
is
Debt
Instalment
that
reveal
The
past 30 years.
The
Consumer Price Index ^fched a
high in.Mid-November at 125.6%
the
construction
industry.
The of the 1947-49 average nf prices,
Department of Commerce places but eased off to 125.5%, in Denew
construction expenditures in cember.
This index advanced in
1960 at $55.3 billion, an increase of six of the last eight months to
$1.3 billion over the 1959 total of December although each increase
about $54
billion.
Privately fi- was of small proportions., Based
nanced
housing starts, however, on this latest figure the 1947-49
are
likely to decline to around dollar is worth
79.6c. Further
1,200,000 units from about 1,325,- normal increases in the cost of
000 in 1959.
•
living are indicated oyer,the next;
Domestic passenger car output few monthsl
in 1960 could approximate some
ip„
6,700,000 cars compared with about
Some Disturbing: Factors
5,500,000 in 1959, a gain of around
The continuing
sharp rise in
22%. Passenger car production in Consumer
Credit
merits
close
1958 was approximately 4,300,000
scrutiny. Latest available figures
a
com¬
for the
reasons
Thursday, February 4, 1960
i
units.
buying opportunities in taxable
panies and public utilities. The writer lists five
.
establish
Investment Outlook
New York
.
.
The coming year will probably
a
new all-time high for
The 1960 Economic and
.
Chronicle
The Commercial and Financial
.
'
Walston
Ore.
now
—
Arthur
affiliated
P
B.
with
& Co., Inc., 901 SouthWashington Street He was
formerly with Foster & Marshall.
west
Volume
191
Number
5922
.
The Commercial and Financial Chronicle
.
.
(569)
Supply and Demand for
Long-Term Funds—1960
-
The
will be
and may even moderately increase, and high
grade corporate bonds and tax-exempts will be attractive to investors
the
up
London
deducted
from
these
from
the
estimates
of
the
Treasury
tions
could
have
major
a
memo¬
debt
impact
opera¬
durmg
the
onjhe level of interest rates, as well as
the prelfent yield structure for
Government
securities.
Although currently its debt-man¬
agement program is limited by law and
by
market conditions to maturities of five
year
:
less, Congress
the 4V4%
already
act to eliminate
may
interest rate
requested
or
trial
reconsideration.
The Administration
has
Treasury
be
relieved of this restriction, it will
certainly offer advance refund-'
ings to holders of some of its outstanding
issues, and possibly sell
limited amounts of long-term bonds for
cash as well.
Shifts
possible
tion
in.our international
relations, Federal legislation, and
labor stoppages also
may make necessary reconsidera¬
of these estimates at a later date.
Although some current fore¬
new
casts predict a slowdown in the
second half of the
year, the upward
movement in the economy is
expected to continue at least during
the first six months.
Some increase in the
price level is likely to
No letup in the demand for bank
credit in an
occur;
already tight
money
market is anticipated,
relaxation of
Federal
there
is
nor
Reserve restrictive
or
deficiency of $1.1
a
approximately 4% of the anticipated demand for long-
'
term
early
any
monetary policy.
The estimates submitted herewith
indicate
billion
sign of
any
funds
finance
to
real
estate
mortgages,
tax-exempts,
and
corporate requirements of $27.7 billion.
For
the
period ahead, the outlook is for
further moderate
continuation
a
comparatively high level of interest rates, with
possibility of
a
of
a
some
increase.
Nevertheless, yields currently obtainable^ high-grade-fixedciently attractive to
estimates
is
commitment
of
are
available
suffi¬
long-
types of investment issues.
The invaluable aid of
these
the
warrant
term funds in these
tax-exempt obligations
small group of specialists in
a
compiling
again gratefully acknowledged.
Estimates of the
:
accumulation
of
long-term funds in 1960 by
selected group of savers, and estimates of the demand
for capital
from private borrowers, states,
municipalities, and public revenue
Unless
ing
.
of
OF
LONG-TERM
FUNDS
much
check
to
output' by
months
is
Billion
.
Life Insurance Companies
Mutual Savings Banks
Pension
Funds
companies)
ance
Other
(not funded
with
'•
Long-term
and
for
pension
nonprofit
in
organizations,
included
in
the
and
above
leading Con
a
newspaper
ou.
came
emphatically in favor of
an
diate
wage
and
substantial
railroad
for
crease
imme¬
in¬
employees on
the ground that their wages have
not risen as much as those paid
in
other
industries.
it
But
is
a
wage
..
steps
boom
the
6%
within
titled
There
L
industries there is stil
unused
capacity that could be
used without any further capita
expenditure.
And
in
spite
o
this a very large number of firm?
.
•
.
planning to resume investment
in
plant extension and in new
plant on a fairly extensive scale.
are
Labor As
Wage demands
source
seems
that
in
of
are
of course the
view
the
of
it
But
worry.
atmosphere most of them will
lead
to
wage
increases
rather
than on strikes.
Even though in
the long 'run the resumption of
inflation foreshadows more
disinflationary measures, the im¬
wage
cient
purchasing
released
to
that suffi¬
will
power
consumers
them to buy up the
be
enable
to
increased out¬
This will encourage industry
having
to
worry
•
-J-
shorter
of
the
hours.
40
to
tha
Should
granted it would earmark with
stroke
one
the
than
more
about
receive
no
even
in
increase
trusted.
■
The April Budget
In
spite of the increase in the
possibly because of
it—many people expect the April
Bank rate—or
Budget
statement
further
tax
to
announce
This
reductions.
de¬
pends on whether there will be
any increase in' the cost of living
index between now and Budget
The fact that the increase in
output, combined with low
raw
material
prices
failed
to
cause
a
fall
in
prices in 1959
day.
the
rise
gives
to
that
fears
the
re¬
sumption of Wage -increases on a
large scale this year would lead to
a
resumption of price increases.
If/so the Chancellor of the Ex¬
chequer might not feel justified in
releasing purchasing power by re¬
ducing taxation. Nor is the state
of revenue this year sufficiently
satisfactory
warrant
to
an
as¬
sumption that Mr.- Amory would
have a surplus to give away. How¬
ever/ much
might happen be¬
tween
now
the
and
end
the
of
financial year.
full
if
they
Bache & Co.
Gallagher has joined
Wall Street, New
York City, members of the New
-E.
James
Bache & Co., 36
He will be
York Stock Exchange.
in
charge
Portfolio
Bache,
of
Institutional
the
Department,
Harold L.
of the
partner
managing
investment firm, announced.
wages.
Another major source for worry
is
French
the
There
is
almost
an
crisis
Algeria
feeling that
might happen
the Channel at almost any
across
moment.
The
from
Urban Mooney Jr.
Joins Baxter & Co.
hitherto
promising
continent are
on
the
clouded over,
prospects
now
over
uneasy
anything
and the news
Paris and Algiers is awaited
with much anxiety.
Indeed never
Urban
come
D.
at
following the radio news
bulletins so closely as they have
been
during
the
influence
This
nVvnnt
to
last
alone
give
days.
few
should
rise
to
be
doubts
70
Pine
Sales.
been
with
be¬
has
Jr.
Mooney,
associated
Baxter
the
in
Street as
Mr. Mooney,
investment
the
for
business
formerly Manager
many years was
of
Manager of
who has been
bond
for
department
Fahnestock & Co,
hnnm
announcement
is neither
estate
mortgages, tax-exempt,
personal trusts, nonfunds,
foreign
accounts,
retirement
and
other
long-term
an
offer
The offer is
sell nor a solicitation of an offer to buy any of these Shares,
made only by the Offering Circular.
to
6.9
_.
real
This
1.9
1.3
investors
100,000 Shares
...
..it
.
il.vt
not
categories.
NET SUPPLY OF LONG-TERM FUNDS___
Eastern Freight Ways, Inc.
$26.6
DEMAND FOR LONG-TERM FUNDS
Common Stock
Billion
Real
Estate
Based
on
Mortgage Financing
figure
gross
starts of 1,150,000
housing units, and a
mortgage funds of $27.8 billion.
From this
estimated amortizations and repayments of $10.8
for
billion, Government Agency purchases of $0.8 billion,
mercial bank acquisitions of $1.3 billion have
been
of
on
$7.6
estimated
billion,
from
fund
purchases
bank
acquisitions
Corporate
national
Based
bonds,
and
on
$3.0
$2.8
J
.
which
$3.1
have
deducted.
estimated
billion
been
and
(excluding
maturities
$0.6
billion
of
Price
billion
billion
of
gross
have
and
sinking
commercial
deducted.
Copies of the Offering Circular may be
flotations of $8.6 billion of
8.9
sinking
been
fund
and
other
redemptions
qAllen & Company
of
deducted.
DEMAND FOR LONG-TERM FUNDS---$27.7
■
^
DEFICIENCY
FUNDS
IN
1960
OF
($1.1
LONG-TERM
Billion)
-*'
.
February
obtained from the undersigned.
domestic
foreign and International Bank issues,
preferred and common shares, from which
INDICATED
Share
of
maturities,
billion
per
refundings)
(including foreign and Inter¬
borrowings in the United States)
estimated
$4.00
3.9
Financing
Bank
$0.5
estimated
of
borrowings
gross
.
and com¬
State, Municipal & Public Revenue Auth. Financing
Based
($.20 Par Value)
$14.9
estimated
demand
gross
1, 1960
&
Company in the New York office
since the Suez crisis have London¬
ers
sufficient
i.
workers,
organized
the
de-
is not conceded immedi¬
duction
is
all
which
to
extent
hours,
cut
ately. The employers of the engineering industry are prepared to
agree to a reduction of the work¬
ing week from 44 to 42 hours,
but the employees insist on a re¬
be
boom
at
resistance;
any
for
the whole
manded
gen¬
eral
effect will be
hardly
benefit of increased output for the
Source of Concern
a
is
demand
if
even
*
many
the
to
to come..
more
increases, workers in the nation¬
alized railroads, which make a
large loss year after year, are en¬
to corresponding increases.
it
nothing if not impres
pprporate, secprities, (by, individuals,
corporate
.
Recently
servative
the
views
absurd
expression
public
shows
prices.
lower
at
such
3.7
Funds___
investment
.
re¬
find
that
insur¬
T
Casualty Insurance Companies
Available
•
-
-
demands
wage
equities
tact
6.6
State and Municipal Retirement and Pension Funds
Fire and
buy
1.3
_
Savings and Loan Associations....
Corporate
wages.
quarters.
the possibility of unsold stocks.
$4.9
__
con¬
of
ceive support in some unexpected
The increase in the
some
sive, and there is
In
drastic
more
will continue.
without
■
•
wages
increase, and that dur¬
number
a
Excessive
to continue to increase the output
SUPPLY
to
while
previous years
the increase in the output
laggea
considerably behind the increase
Britain is simply in the
believing in continued
taken
are
put.
projects.
declined
tinued
warning
tion is sound and it justifies a fur¬
ther
rise
in industrial equities
mediate
a
tion
highly dangerous principle to con¬
boom, and that is all there is to it.. cede
that, because workers in the
Needless to say, investors and
booming automobile industry have
speculators
are
fundamentally a
scarcity value and are in a po¬
right. The basic economic situa¬ sition to receive substantial
main
income corporate securities and
the fact
are
pending; ana
from France is dis-
news
for
mood
Should-'the
to
This argument disregards
that1 during 1958 produc¬
creases.
to
disputes
quieting.
,
modify
ceiling for bonds.
its
L. Spencer
Girard
of
time
that the
•
years
or
pros¬
Budget
way
uttered
time in highlyplaced official quarters, refuses
to be
impressed even by official
action
aiming' at checking the
rise.
This in spite of the fact that
Wall. Street has been far from
cheerful; that some grave indus¬
Treasury financing is again excluded,-since
it is considered outside the
scope of this
randum.
Nevertheless,
words
from
-•<
.
.
.
and
Vthether the April
Exchange
public, having ignored all
vesting
demand
\
.
Stocx
After only two days of
falling prices there was a recov¬
ery that raised the quotations of
most; industrial equities to
the
vicinity of their pre-Bank rate
figures; Evidently the British in¬
demand
sources.
The
—
markable.
categories1
listed. As an offset, commercial bank
purchases
of mortgages and
tax-exempt securities have
been
economy's soundness
over
received trom banking
quarters a tew days
before the
change in the Bank rate, and
many of them accuse bankers of
trying to induce them to sell out,
so as to enable large corporations
depend on whether there
surplus to give away and the direction of the price iaval.
Eng.
investors
small
resentment
much
warnings
the by those in favor of higher wages
has. is that, since production has in¬
shrugged off the effects of the creased by 6% while wage rates
shock caused by the increase of have
only increased by 2y2%, the
the Bank rate to 5% is indeed re¬ workers are
entitled to a steep in¬
because of their yields.
only partially invested in the types of obli¬
make
the
pacing set¬
theTBahk rate'in¬
.
-The
format to those of
that
correct about
are
further stock price advance.
a
a
LONDON,
previous years. As in past studies, increases in
savings accounts in
commercial banks have not been counted in the
supply of longterm investment funds, because such
deposits
gations
>
■
This treatise dealing with the
supply of and the demand for longterm. investment funds for 1960 is similar in
are
By Paul Eiuzig
will permit tax reduction or not is said to
Spencer. He concludes the interest rate level will continue
high
for the period ahead,
-
they
pects for
the boom has resuipjed
vaxter; the
back .causea;by
inaeed
reasons
agrees
or about 4% of
long-term funds, is projected by
,
Mr.
d
couise
crease.
British believe in their country's boom, and
ignore inter¬
nal and external sources of
concern, are set forih by Dr. cinzig wno
Deficiency in capital funds amounting to $1.1 billion,
billion
its
snow
By Girard L. Spencer, Salomon Bros. & Hutzler, New York
City
estimated demand for $27.7
And yet
Britain Believes in Boom
*
r''» -
"
1
J i'
<
1
*
r 'r
11
4'
*1
'
4
14
credit
Monetary Policy—A1914
Model in the Space Age?
of Philadelphia
-
j
short
term
government's impact
1
f
Federal debt
j
(4)
itself;
growth
(3)
over-ail liquidity;
on
basically similar;
and
oligopolistic
ability
policy
have,
to
improved roads and
highways outdated the Model-T
Ford, some believe that far-reach¬
.
•
ing
structural
economy have
'rendered
in
,
gathered
available, liquidity pref¬
undoubtedly estab¬
lish a pattern of market rates that
would afford a strong incentive
for
increase in
an
the
short-term
volume
credit
solete
tradi¬
instru¬
the
and
wide
the
disof
the
growth
of
: nancial
fi-
inter¬
mediaries,
increasing
labor
Clay J. Anderson
unions
higher
ministered'
prices
significant
structual
which
wages, and
concentration
make
are
and
change.s
1959
our
the
economy
quite different from that of 1914.
Our central banking system, on
the other
hand, is essentially the
,
same
when it began operations
There have been amend-
as
in 1914.
1 ments
1
and
poses
new
powers,
such
as
authority to change reserve re¬
quirements and to fix margin re¬
quirements on stock market credit,
financing
with
achieve¬
.••■■■
-
.
There is
its
with
comparison
ments.
"ad¬
among
widely discussed is that
monetary policy im¬
burdens that are excessive
flexible
in
and pressure for
industrial
of
instruments
view less
a
of
vpower
traditional
The two princi¬
of this
view are:
(a) the frequency of
Treasury borrowing and refund¬
ing hampers the Federal Reserve
in taking restrictive
action, and
(b) the large volume of shortterm
debt
outstanding insulates
lenders and other holders against
the impact of credit restraint. "A
Federal
debt,
•
tremen¬
monetary policy.
it control. The
tribution
the
pal arguments in support
-huge growth
■
that
believe
growth in the Federal debt,
principally during World War II,
has impaired the effectiveness of
ments of cred¬
.
Some
and
savings
as
dous
central
bank
such
>
.
.
doubt that Treasury
no
does
times interfere
at
the
tuning of Federal Re¬
actions, particularly during
periods of credit restraint. Restric¬
serve
tive action
just prior to the date
Treasury is to announce the
the
terms
on
funding
a new borrowing or re¬
operation would disturb
private
ments
of
make
for
it
extremely
difficult
the
available
were
My
recen t
"Khrushchev
and
of
what
From
and
be
cannot
tional
reserves
converted
except at the ini-/
of
the
ernments
lenders
Federal
-
by
banks
transfers
Reserve.
is
and
funds
from
he
the
increase in the total volume
no
of
control
have
not
been
altered
substantially. It has been alleged,
therefore, that developments in
central
banking have "not,, kept
pace with those in the
economy
.which the central bank is to
serve.
.Is it true that economic
change
has
rendered
outmoded
effect
itral
our
and
obsolete
have
we
;bank
monetary
central
a
—
bank
that in
1914 model
cen-
trying to implement
policy in a space-age
economy?
I want to make it clear that
my
are not directed
toward
remarks
whether monetary
policy is effec¬
or as effective as we should
like it. The argument that
tive
mone¬
tary
policy
more
or
has
been
rendered
less obsolete implies that
structural changes have reduced
its effectiveness.
ysis is directed
the
on
po
Hence,
my anal¬
primarily toward
impact of structural changes
effectiveness of monetary
icy- I shall deal briefly with
the
three
structural
changes
which
have received considerable
atten¬
tion: growth of the Federal
debt,
growth
of
financial
intermedi¬
aries, and the increasing strength
of
labor
large
unions
over
corporations
wages
over
which
a
and
after
the
terms
immediately
have
been
an¬
brake
further ;c before
A
different
somewnat
that the Federal
point
is
large that a flexible- monetary
policy imposes burdens more than
difficult
for
the
There
is a tendency,* therefore,
Treasury financing operation
for
a
to
immobilize
action for'
a
further
period of at least two
three weeks.
or
restrictive
Frequent trips to
the market by the
Treasury seri¬
ously reduce the time available to
the Federal Reserve for
initiating
restrictive actions. It does not
nec¬
to
of
rates,
it ./is
more,
seriously impaired.
business
and
ury
the
financing may frequently alter
timing somewhat, but it does
not
as
the
to
the
private debt, the
imposed become larger relative to
the
benefits, derived from
ible
activity.
monetary
policy.
Liquidity
Argument
day
it
1914
virtually all of the outstand¬
ing debt was held by commercial
banks; today the marketable debt
is widely distributed.
The mar¬
ketable debt is held
institutions
such
mutual
as
contention
is
relatively large holdings of
short-term Government securities
insulate lenders and large
corpo¬
rations
from restrictive monetary
action.
It is true that short-term
Government securities are a
pre¬
mainly
by
commercial
savings banks,
insurance
companies, other corpo¬
rations, state and local govern¬
ments, and miscellaneous institu¬
common
ferred
instrument
liquidity needs.
for
But
it
satisfying
does
not
flex¬
tra¬
should
oi
once
helpful to
apparent
objective is
private property, but
to eliminate
end
are
six
different
Six n^ans to this
being employed in
now
countries:
(1) By
Russia; (2) by na¬
tionalization in England;
(3) by
taxation in East Germany; (4) by
public executions in China; (5)
by unwarranted price and wage
confiscation in
legislation
in
labor-union
tion
Cuba;
and
by
infla¬
in the U. S.
as
Meanwhile, let
time
(6)
and
demands
expend
us
more
and more money
developing
our
children's character,
health,
education, and other fundamentals
which cannot be wiped out by an¬
William St. Sales:
Names Two V.-Ps.
me
national
;
they
election
can
—
spea
Andrew G. C. Sage II
How Khrushchev Selects
Teachers
When Mr. K wants
teachers, he
City. Edward
announced.
Thomas J. Sexton
.
P.
President,
Eurr,
Street
William
Sales
be
I
see
no
real
merit
;
in this
what is necessary to get the
very best.
I have been told that,
is the national distributor for The
professors
Scudder
year
pays
—and
Argument
con¬
tention that the
get about $40,000
terms of our dollars
in
prestige. They
are
the lead¬
ing men
in every large Russian
city. They live in the best sub¬
large Federal debt
has
flexible
urbs, have the best tables at res¬
montary- taurants and private boxes at the
inappropriate instru¬ opera. Their children are looked
rendered
policy
an
ment of economic stabilization. To
fluctuating interest
and
unstable
bond
prices
burden, they are a burden
of not only a flexible
monetary
policy but of any kind of effective
a
regulation.
rates
are
As
long
free
to
restricting the supply and
ability of credit relative
rates,
and
vice
in¬
as
to as are those of
families. Yet some of
up
de¬
a
Stable
in¬
free market
that credit restraint by
raising interest rates puts
due
burden
especially
on
an
un¬
the
taxpayer is
shortsighted. Rising
increase the interest burden
of the debt only to the extent of
rates
necessarily follow that in the ab¬
new.
ing
borrowing and the refinanc¬
maturing issues, and the
of
cost effects of
rising rates tend to
Continued
on
page
32
for
in
for
the
Moscow
education, I
meant
When
rising interest
versa.
While
on
move,
to
more
our
richest
is
by
I
of
and
investment companies/
Mr.
Sage, a partner of Lehman
Brothers, investment bankers, has
been
pany
been
a
director of the Sales
associated
Brothers
Mr.
Com;
He has
since its inception.
for
the
with
past
12
Lehman
years,
Sexton has been director
i
of
public relations for the Sales Com¬
pany and will continue to super¬
vise its public relations, advertis¬
of
the
ing and sales promotion programs.
getting fact'
what i
"eggheads.'
explain that thi
scientists and other
our
learning
ception
at
are
called, I
was
Congressional hearings
than
University
if
allow
to
a
an
Presidents;
and
average of 30 stu¬
classroom
while
K insists that 17
must be the
imum.
Can
Fund
Canada,, open-
univer¬
I was then asked if
it is true that
any American man¬
ufacturer will get a better re¬
dents
of
football
head
term
not believed.
we
Street
Fund
Thomas W. Meeder
tried to
what
men
end
William
a
was asked
our
One
our
Physics Department.
avail¬
only when the supply of credit is
adjusted to changes in demand.
The claim
of a large volume of
shortterm Governments over-all
liquid¬
ity would be less. In a modern
sence
K's
Mr.
and
: "
per
controls
terest rates exist in
more
efficiency.'
"success"
service
,
these
that
Dismisses Federal Debt
terest
type of argument that
unselfish
top
credit
that
debt
a
For
conclude
some
modified.
credit
Answers
very
not
than
ness
real
our
ladies
feels this is most inefficient.
burdens;
pay
expansion and rising busi¬
trained
so-called
and
for
the
sities
credit
love
language of the country t
Consequently, >
which they are assigned.
Mr. K
public debt grows relative.]
The
Federal
one
last
or
coach
Another
Debt
the
rates
of
'
.
together
get
,
are
period
of wealth
to
positions becaus
contributed large sums of
to the political party whic"
they
restrictive
a
ple must change from glorification
important
very
the extent that
in
■-
peo¬
money
won
was
the
Federal
were
necessarily diminish substan¬
tially- the over-all
intensity' of
action
'•
-
be.
our
talk
to
whether
billion dollars. To¬
exceeds $285 billion.
In
1914
less than
the
Further-:'
that the yclume
borrowing is not
mand will result in
of
the cost
increases
said
during
a period of expan¬
usually not so brisk that a
change in the degree of restraint
is needed every week or so. Treas¬
"
the
to
continue
However, the desires of
who
on
my recent trip to Berlin,
War aw, and Moscow.)
But mos
of them were selected for then
influenced by a flexible monetary
develop¬
sion is
will
are
during
raising
credit is not very sensitive to flexible interest rates.
The pace of
financial
'
those
The masses
and
move
of
up
.
that all
policy, and the private demand for;
ditional
ments
by
the* debt.
Government
effectiveness
of Federal Reserve
action to restrict credit expansion
not.
have
have property and
now
building
its
restraint,
large Federal debt has im¬
paired the effectiveness of mone¬
tary policy is based on liquidity.
Growth
banks,
interest
reasons,
the
In
credit
essarily follow, however, that the
is
the
achieve-> eyed to Mr. K.
■V Our real missionaries today arc
'
the heads of the U. S. Embassie
to the risk: of
all over the world (let me
say
with
it
more
those who
Holders of the marketable
make
Treasury to market its securities.
prices,
many believe have led
cost-push type of inflation.
ments.
of. servicing
and
rapid basic changes due to
levelling down of
constant
the
foreign mission
-^-and collect perhaps $300 for the* Andrew G. C. Sage, II, and Thomas
J. Sexton have been elected Vicecause? yet the value of their auto
Presidents of William Street Sales,
mobiles and furs represent
$500,
000! The whole setup seems cock¬ Inc., 1 William Street, New York
debt has become
to
rs
'
churches
month
a
banks
und~rwfit
I
'
'
"
,.
When
most
it; really
begin* to take hold.
and
as
■'
holdings are like slack in the brake • aries,:. who were then
pedal; you have to push the credit" ambassadors. Now the
actions, if repeated, would dimin¬
ish the willingness of dealers and
act
when
prime, he consid¬
selling only kerosene.
America's Missionaries
:
debt are subjected
relatively
wide
swings-; in
the
prices of Government securities;
ceived
that
fortune;
his
at
was
ered
:V,
and
subscriptions
re¬
"pull.the rug" from under
purchasers and underwriters. Such
nounced
automo¬
D.
can
inevitably be
1 was a
boy, my mothei
Velocity may
other. World War.
increased, however, by funds" was much interested in foreigi.
missions. I even helped pack bar
being
transferred
from: less i to
more active spenders.
Liquid asset rels of old clothes for the mission*;
commensurate
instruments
the
of
John
Even
am
our
democracy
There will
survive.
But I
whether
be
in
and
am
offshoots
Rockefeller
other
of spendable funds.
Treasury to establish ap¬
propriate terms on its new issues.
principles
bile.
con¬
Further¬
told by cosmetics ex¬
lipsticks are but one
that
the
of
spend
they
church.
-
purchaser of the securities, via the
lenders, to the borrowers. There
Restrictive .action
basic
I
perts
into. addi-.
than
of
90%
America
their
to
more,
liquid assets
so
growing knowledge and skill
using monetary tools, but the
tribute
of
form
.present
he is not alone.
that
said
of
lipstick
on
more
Forythe
1492.
been
women
Rockefeller,
Sr. told me personally that auto¬
Unless purchased by the Federal,
mobiles
built
the
magnificent
Reserve, the liquidation of Gov¬
tiative
and
.
other
converted
has
It
the
discovered
Columbus
since
America in
whole, Government:;
economy as a
securities
are
cash.
and
reserves
money
*
built
control the terms
which such assets
into
today has
schoolhouses, and homes of mercy
liquidity purposes
that is important but whether the
on
reply: "The Auto¬
invested in autos
than in all the churches, hospitals,
more
for
can
I must
America's
is
thinks
K
lifetime, yet America
the
central bank
Christianity"
Although the first auto¬
mobile was built only during my
y;. >;
held
o?"
certain
from
more
discussion
mobile."
standpoint of mone¬
tary policy, it is not the kinds of
assets
Mr.
"God."
instru¬
temporary surpluses would be
in cash—the most liquid of
all assets.
things
more
has caused readers to ask me just
large part
a
few
a
worthy of thought.
instru¬
credit
are
long existed.
very
far
trip to Moscow,
my
on
here
but
held
the Government securities market
and
short-term
has
thought that a previous colurm
of mine had covered all trie
would
private
loan
associations, brokers and dealers,
and corporate pension funds.
-
our
ob¬
tional
:
changes
tions
$40,000 per year.
I
Government securities
not
erence
higher average rate of economic growth.
as
example, points out what Khrushcnev
whom he pays
ments? If neither Government nor,
Just
insure our way of life and,
thinks of top professo-rs
property, indicates what we should do to
for
common
short-term
policy, in helping to prevent an inflationary boom, contributes toward...
a
employed in different countries to eliminate private
lists six means
outstanding
Park com/iientator
prospects of our democracy. The Babson
survival
small,- '*■ interbank
balances,
paper, and call loans
methods of adjust¬
ing reserve and cash positions. If
balance, weakened monetary
on
covering such subjects as our spending diracaon and
and the U. S. A.
s.-ort-term
tool of cyclical stabilization. He points out that monetary
as a
securities
comparisons are drawn by Mr. Babson between Russia
Some invidious
earn¬
*
were
prices and wages. The author explains why he is not convinced
that these structural changes
liquid
When the volume of Gov-,
mands.
Thursday, February 4, 1960
.
By Roger Babson
and
invested in
are
ernment
of financial intermediaries and the
industrial-labor
(5)
in
were
raise
fully utilized
cyclical
financing needs and
seasonal
swings
.
.
banks, financial
others are con¬
problem of keep¬
resources
despite
was
Gurley-Shaw thesis that banks and nonbank financial institutions are
-
and
ing assets which can be drawn on
in periods
of strong credit de¬
of
size
ing their
funds
The speaker confines his discussion to whether structural changes in
the economy have rendered monetary policy obsolete. The ones examined are: (1) frequency of Treasury borrowing and refunding; (2)
i
economy,
institutions,
fronted witn the
credit demands. Temporary excess \
By Clay J. Anderson,'1' Econom'c Advisor, Federal Reserve Bank
|
Financial Chronicle
The Commercial and
(570)
Mr.
max¬
Democracy Compete?
I
believe
democracy is the ul¬
timate form of
government. His¬
tory shows that no
dictatorship
Thomas W. Meeder, a limited part¬
ner
in John A. Kemper & Com¬
pany,
Lima,
Jan. 9th.
Wm.
Ohio,
passed, away
Kelly With
R. Edelstein Co.
William Kelly has become associ¬
ated with Robert Edelstein Co.,
York
tracing
Inc., 15* William Street, New
City?
as
manager
department.
of
the
Mr. Kelly was
form¬
erly with E. F. Hutton & Co.
Volume 191
Number 5922
.
.
The Commercial and Financial Chronicle
.
(571)
operated in this country for over
American Business
By Harry C. Culshaw,* Executive Vice-President, James Tulcott, Inc.
Mr.
Culshaw provides
a
review and
.financing American business
tate. He
i
and
projection of the trends in
a.
expects
increase in the prime
an
notes that banks' ,ratio, of loans to
.
nWi
th
e
have
y
been
into
h
s
focus
a r
p
to
seems
that
to
low
get
small
view
re¬
and
of
un¬
derstand
business either
borrowing
e^ary
effects
lean
r
Harry C. Culshaw
business.
started
First Financing Cycle
I
attempt
financial
1
warrant
the
credit
existence
the
century.
present
paratively few giants in industry.
The banks were relatively small
and
financing was done largely on
a
personal
basis.
The
banker
knew personally most of his borrowing customers, their families
and their background Very little
reliance
was
given
to financial
nec-
finance
business
business
business '
normal
commercial*
i is,
stqff will joih
Wilmington,
or
-or
that
0 *
York
statements. If the banker felt the
borrower's
worth
the loan he
was
did
not
justify
seeking, he would
be required to give a mortgage on
his
home, his farm, .his plant,
t°
have
someone
endorse
or
^of substance
guarantee the loan,
Without too much change in the
or
basic
concept, these practices continued
until
1920.
During this
period the Federal Reserve came
into being,
banks and" business
became larger and the relationship less personal. World War I
took place and following it the
of *
precipitous- depression
very
4,1920-21.
TWO
,
■"
:
/
.
1QQ7
accepted by the banks,
particularly
the
larger
banks,
Two, many businesses turned to
the
security markets for additional capital rather than borrowing from banks or others.
The
tempo picked up rapidly and by
quickly
1926
almost
stock
was
everyone
conscious
market
even
the
to
extent of
speculating in stocks of
companies which they knew only
by name and did not even know
the
nature
the
came
October,
crash
five
1929
that
of
1930
reckoning
in
the financial
four out of
The full impact
with
hit
every
caught up with
in
Then
of the business.
dav
Americans.
tern
banking
our
1931
and
sys-
causing
to close their doors forever,
.'
'
"
•
'
'
Second Financing Cycle
many
'
.
We
come'
next
to
the
second
cycle in our financing of Ameridan
business—that period from
1930
The
Government
passed!'
Assignment of Claims Act of
whfch
to
1945.
The early 30's saw
time
possible the valid assignment
a
government
obligation
to
of
bank
for
the
first
a
financial institution which
or
and
mmmprHal
frnrn
directly
to
assignee
the
Federal Government
,
The
Smaller
War
Administration,- theoreti-
or
tween
R
50
SLd
^on
the
by
of its
one
by
in
engaged
made
to
in addition to
offering bonds for
.
n
s
1
4.
«
Light
Gas
& Co., too. predecessors
°,?dward became President in vwusly bought World Bank sem. Bradley & Co.,
He
in cunties.
*«*?•
If you have observed the Dec.-31,
1921.
1950, on the death of his father,
'The World Bank has not offered
the late Edward M. Bradley. As- ari issue in the United States since
sociated with
Mr. Bradley in November, 1958,
Laird,s Bissell & Meeds' New
Haven office will be Donald E.
_
_
TTT,
that.a freat many pipe lines are Nichols officer^bf ^h^BraSev
?mPty dHe \° the steel strike As former officers of the Bradley
mventones start to be replenished, Company.
;
the demand for loans is going to
The
Bradley Company wa
become greater. Every indication founded in 1868 by Alexander
y
bas about $70 billion of refmanc- 1885. Edward
^ ^rd
almost
ano
seems
was
rfL Shn^n
fn
cp
rf
With
the
4
and
nresent
AmerLn
evelp
J- A. G&\&Y& With
-
.7
—
--
-
VKMCU.U
Gregory, & Sons
Gr gory & So
72, WaU gt
t
third■
World
m
Wap
TI
refused to recognize previously.
In the first place it was accepted,
or
that
growing
a
concern
nre
Jnt on^
to
its
chased
h
the
tn
present
changed
ffrm
the
and
building
at
F;r's+
tue
Arew
Haven
on
Gagla'rd
Ga?ard was, formerly in, the
Municipal Bond Department of the
Bankers Trust Company,
.
T
T)
4-1
J* oQXtll 00»
"
&
Office, Laird, Bissell & Meeds has
To Admit Partner
National Bank
Con-
secured basis and
a
^nA^vch^nff^ fin6
iMauonai rsaiiK.
,
,
+
Ynrk
:
nacdcut
Through
its
wire
sys-
SAN
FRANCISCO,
Barth
&
Co.,
404
terns there is direct contact to all
Street, members of the New York
and Pacific Coast Stpck Exchanges,
United States
on
^
company.
.
^
+u
,
+
-
umiea piaxes.
together I feel confident that the
nnmncnioc
and
/>on
mill
mpof
*An
the
address
Kiwanis
by
club,
Mr.
Culshaw
I.
Feb. 11th, will admit .George
McKelvey Jr. to partnership.,
Seeburg Branch in N. Y.
fhp
WWMUig
vi uiivn
* '•
* *
Marshall
N.
borrowing needs of business,
attempt--19;
in fact such a concern could not
be completely out of bank-debt
once a year. Hence the term loan
idea came into full focus and a
willing to
make term loans for as long as
five years. The insurance com-;
panies recognized a - fertile field
and have actively solicited term
loans running as long as 15 to 20
years.
The second and perhaps
more important recognition is that
small
businesses,
fast
growing
businesses
or
undercapitalized
Seeburg and Sons,
opened a' branch office
W
,
*
1
Syracuse, n. y., Jan.
NEW ISSUE
having been sold, this announcement appears as a matter
of record only.
•'
-
are
133,000 Shares
:
B. M. HARRISON
ELECTROSONICS. INC.
Common Stock
(Without Par Value)-
cannot generally produce financial statements that will
justify the amount of borrowed
fuhds they require. Hence they
borrow
on
a
secured
Price $3 per
a
combination
of
several
I
believed
has
'
.
Copies of the Offering Prospectus may
be obtained only in;
such states where the securities may
be legally offered.
or
security,
Prior to World War II a concern
borrowing on its accounts receivable, or its inventory or its
machinery,
would
have
been
looked
Share
basis
using either their accounts re¬
ceivable, their inventory, their
machinery or possibly their plant,
upon
to
with
be
askance
virtually
largely
on
and
Regulation
changed
G. EVERETT PARKS & CO., INC.
52
the
that
January 26, 1960.
Yftllfliy
has
SPRINGFIELD, Mass.
Sidney
at 30 Rockefeller Plaza, New York Weiner has joined the staff of
City, under the management of Gerald M. Young & Co., 1421 Main
Theodore N. Trett.
Street.
Inc.
before
1960.
All these Shares
Jj
Joins oeraia ioung
businesses
must
J.
Montgomery
the leading financial cities in the
.•
.
ing to add new plant or facilities*
could not do its financing on a
30, 60 or 90 day basis or that
great many banks
Calif,
,
Working
finance
cial
.
'
business. The financii
industry
wLn Sed
name was
^ew
nounced that John A>
i3
npw associated with the firm in
the Municipal Bond Department,
will inevitably go to the commer-
finaririne'
in
Mr
N2
companies will of necessity have
'
Cycle
enter the
we
In
Warren &
C
then named H
moved
P
institu! VGry smalleratand accelerated Pace"
llkely an undercapitalized
The
termination of World
War II in 1945
,^®radley became
ihand in 1927 the
aImost certain.
to borrow
V
of the issue prior to matur¬
ity. As in recent issues, the Bank,
It is expected that the managers
of the underwriting group, in the
interest of broadening the market,
will again reserve a portion of the
Mr! Bradley started in the in- boiito:tar"Bti^rton. by uhdervestment business with H. C. writers and dealers to. sell .to
concerns
Present Financing
brink of bankruptcy.
larger busi-
50%
was
production.
war
in
harbored
a
Co.,
wju become manager of the New
Haven office of Laird, Bissell &
Meeds at 44 Whitney Avenue.
much for the evolution and
trends of financing American
business over the past 60 years'
What about the future? 11 is
my Personal belief that we are
Iossps
nf
finandng
a
V
o n
100%
and
loans
on
1 at i
e g u
cally designed for small business,
reality
be non-callable
10
years and will
sinking fund commencing
Aug. 15, 1970, calculated to retire
Springfield
an(J
There is every indication thereadopted which provided that the fore that the demand for bank
Governmeni would assume be- loans will certainly continue and
agencies.
all, for
R.F.C.
wil
first
cor<* Electric of New Hampshire
hank<?
commercial banks.
■
bonds
the
have
nn
accommodations
their
get
~
Re-
regular delivery, will extend to
| ?a.<* 1 ery ,
President of
institutional
certain
purchasers
E. Hoibrook Bradley
the privilege of making delayed
J!16 retiring
payment, giving them mc selecthe
an<J a
6ivmS
uiou
of_ C. Cowlesi - & Co., tion 0f Specifiecj quarterly deliv®
n^r£,ery dates through Feb. 15, 1962.
plough
business
would be acknowledged and paid
or
poration came into being presumably to assist small businesses, but
actually small business was the
exception rather than: the rule
for
E. Holbrook
In
assisting them to
profits back into
their
and strengthening their
financial
statement, the time
comes when they graduate from
f^e commercial finance company
for
in
The Reconstruction Finance
Cor-
-
P°lnts to a very stron§ economy. McAlister. It was known as Mcth<Thistory oF the'eountrv'made At the same time the Government Alister & Warren from 1878 to
1940
business failures by the thousands,
with
never
significant^things hati- brought into bold relief certain;
One, Mr. Alexander Wall facts that we did not recognize
pened.
gave birth to the idea of statement
and
ratio
analyses which was
-
ex£ aP£as'
the
at
before dreamed
& when volume was inordinately
out
0f
proportion
to
working'
of
-
-
Stock
Exchange and
this
from
ahead
qwmHii£a
the
The
New
-
Bank
construction
and
Development,
announced that the Bank proposes
to" offer during the week beginnihg Feb; 8; a new issue of $100,000,000 principal amount of 5%
25ryear bonds of 1960 due Feb.
15', 1985, through an underwriting
group*"of dealers and commercial
banks under the joint manage¬
ment of Morgan Stanley
& Co.
and The First Boston Corp.
P®L> members
bank
re-*^ « <* the
a"
in
nrmirrpd
«5lnmn
capital
and
some o f
of
President
Black,
R.
International
the
investment-firm* of New Haven,
Conn., i$ ending its independent
evolution there appear to be three
distinct cycles since the turn of
cycle was from 1900 to 1930. In
the early 1900s there were com-
Eugene
generally, had^ continuity of Warren
improve* when
to
eoine
was
t
ir
~
business.1959 statements of .the commercial
close of banks,
you will have seen that
the AO's
Then came Dec
7
1041
their ratio of loans to deposit
following
which
industrv' was liabilities are at an all-time high.
The ?■*first rallerf uoon to nroduce goods in Yet this is in spite of the fact
this
n
NEW HAVEN, Conn.—Edward M.
Bradley & Co.„ Inc., 92 year old
Channels.
fearful
de^^ssion w2?Ir
thb
business
Recovering
* review
to
not
unsecured
of
newpd
As
as
By 1936fhe most disastrous
and
over
was
went
was
the
or
did
of
amount
in
m e
rate
prime
Big business could
than it wanted, but
more,
financing of
A
weaker
statement
the
evolution
larger
or
by
competitors,
the cheapest
1/4%.
as
erly evaluate
must
from
setbacks. ..grewof
themselves
The
money.
present trends
one
to.withstand
this; period
commodity that business used
prop¬
expanding
expanding
undercabitalized
n
JdISSGH <&/ IVIGGCIS
.Co,mn!lsslon }^a? .gnnot^ -their business that Exchange and
undercapitalized
requirements other leading
the
able
During
me
company
ttv*
Laird, Bissell
& ;M e e d s of
rather New York and
io
to nwu ™i business,
help small uusmess
mIIluaiiv
Edward M. Bradley World Bank Plans
Staff to Join Laird, Bond Offering
It is the func-
commercial
the
of
1_ fanidlv
rapidly
,•
■
absorbing
I t
year s.
mar
Exchange Commission . was
given life. Those.businesses that
either
fifteen
past
■_
•*
economic-
the
in
,.
ties
com-
most
a
ket debacle in the 20's, the Securi-
were
brought
-
complement them.
Because of the stock
nesses.
and
industry is" now
with commercial banks but
still larger scale.
tion
it is my belief that
the present trends in
financing
American KllB.
business are not new:
but certainly
finance
important niche
in our economic life. Generally
speaking they do not compete
serving
1959. And he points' out that the latter
complements«-not competes—
Basically
words the factor
mercial
with the formeri and that both can look forward to
meeting the bor¬
a
was
other
deposits is at
an alltime high and that receivables financed
by factors and commercial
finance companies jumped from $1.6 billion in 1941 to $14 billion in
rowing needs of business at
companies since about 1905, their
in receivable financing
relatively small. In 1941 for
example the receivables financed
by factors and commercial finance
companies amounted to $1,600,000,000 whereas in 1959 the total
is ^estimated at: $14
billion.
In
volume
15
Broadway
Dlgby 4-2785
New York 4
16
(572)
Chronicle
The Commercial and Fitumciul
THE MARKET... AND YOU
BY
WALLACE STREETE
bilities of the future for divi¬
dend action, since the current
payout is less than two-thirds
I
of
the
probable
1959
profit.
NSTA
The stock has reflected
it, re¬
After several false starts the
to
sisting the 1960 selling, and
bankruptcy, holding at around a 4% yield,
which is less than it did when
ignored,
through
go
industrial average, which had But
all of this is
been pounded down more
it
_
than
,T
60
.l#
.
maintained
its
static
pay¬
points from its all£ * Money Hinders Utilities ment
policy.
high, was able to stage a : Utilities were no more vol*
*
'
*
/V"'
vigorous rally this week; in atile that the rails,
moving
To the
fact put on the best
detractors, the fact
one-day narrowly and still restrained
showing since late in. 1957 by the tight money market, that it stuck to a single divi¬
dend policy for a third of a
when a cut in the discount
Brokerage letters and suggesrate was hailed
wildly.
Hons of issues of value were century means that Telephone
*
*
Whether it
of the
pressure,
something
both
will
however,
else
.-
were
subnormal
on
in
the
.
Fridav
■
-
the
volume
ture
expansion
without
action
also
was
ways
—
can
average
the average by
margins while much of
the general stock market fola
dawdles
'
contrary
"
'
course
"
:
.
•
r
.77
,
Rails Lag
„
*
•
points. Where
•
v
the
selling
a
full dollar
indicated dividend
over
and
take
is
not
a
new
and there
ers
more
Edward H. Welch-
that
so
plans
them.
;.V-...
the
is
re¬
be
may
v
y
go
made
to
•
.
v*
,•
..
/•;„•
,
:
Security Traders Asso¬
-'7
*
;
7
'
7
;
Dallas Security Dealers Association, at its recent
annualmeeting, elected the following officers and directors to serve for
the ensuing year:-,
-'
The
..
the
of
Valley and then
DALLAS SECURITY DEALERS ELECT OFFICERS
.
Harold BeShong (Dallas Rupe
Oliver (Sanders & Company),
r
i
story. Yet here
of
Company,
Portland, Ore., please drop
The Annual Spring Party of the Nashville
ciation will be held on May 19 and 20.
a
friends, which
stock
era
and
committee
NASHVILLE SECURITY TRADERS ASSOCIATION.
change
& Son, Inc.); President; Allen
Vice-President;-James C.'McCorTurner, Inc.), Secretary; Herbert M.
mick
(Eppler,
Jones
bargain hunt¬
favorably inclined,
''growth"
note
a
Sun
in
and
accommodate
(Dallas Union Securities Co. Inc.), Treasurer.
Directors
Guerin
&
(
"
Edgar Franklin (Dittmar & Company, Inc.),
Stewart Storie (First Southwest
Company), and Ries Bambenek
(Dallas Union Securities Co., Inc.).
' ;
particularly where the
war II
Hotel,;
Security Traders Association,
Seattle
to
him
.
some
were
Sincere
Welch,
transportation
Convention
1960
on
the
within
Plaza
questing that members planning to attend the
-v':: Bargain Hunting
Oils had few
its
^ogress in sight this year, it
place
H.
the
of
National
though the current
rate
wTas-only instituted last
July.7/;777.v;%7 ; - 7
for
Hie more than 13-times earnjngs. With earnings expected
dividend
a
Bostom Securities
the
Sheraton
There will be a cocktail party for;
Club from 5:30 to 7:00 p.m.
p.m.
head
year even
aver-
Kan"
only at a
is
record that
might
■
ratio
to reach
The rails, for one m a
j or
group, were slow to join the
*
^sPower
.
.
*
price-earnings
-!til"ies is arou!?d
""
.7-
,
i
ge
or
*
*
:
Here the market
range for
959-60 has only been a minor
five
sway
wide
lows
.:; ■;
the blue chips
on
industrialized economy.
an
the
exaggerated — both
by all the attention
pinpointed
that
of
of
the
at
th/copley
Edward
last
a
years to
The
7:30
at
held
be
WHO'S FOR SEATTLE AND PORTLAND
gave the ap- nature of its service area has
heavy dilution of the stock
selling climax been the more mundane item that
was a feature of the dec
nor a return to
action by un- *n
lineup, even though ade. There
are
some
market
there has been a
fettered bulls.
sharp change
*
analysts around already on
in the area in recent
*
*
of
12
will
officers in
company had been able to
;T.
neither
pearance
Feb
guestLnd
change
heavy
But the
costs
Association
Traders
Dinner
Annual
Thirty-sixth
decade obscured the fact that
-
_
rush to
no
rate.
;
The
?nsas Bowel} & Light,
which suffered from the vicis- triple its profits, and that it is
now in
position to finance fu¬
situdes of the agricultural
;
decline and the rebound itself
which
__
in
new
expansion
widespread attention.
was
again since
latter stages of the
the
be
replete with specific utilities
the
signaled the end
did little to promote any
■
SECURITIES TRADERS ASSOCIATION
BOSTON
time
*
Thursday, February 4, I860
..
.
post¬
are:
.
.
is
now available at
rally and their participation > als° a candidate for a boost
half its
1957
peak. That is
finally was lukewarm. They :n the conservative payment,
Amerada which is the noted
still have a strike threat
hang- ^his would enhance its above- oil
finder in the
petroleum
ing over them. This is a par¬ '.verage return of around
group, having doubled the in¬
tial
V'2 %. And
explanation, but hopes
again, the pros¬
dustry rate in its crude pro¬
that they would come back to pects don't show in
the mar'
"
leadership * after long neglect
weren't
heightened
performance, / ..i '
by • the
7 ~ 7.
2t
action.-"
-
'77
-
:
•
Electronics Rally ;
•
»
\
The wonder: stocks of last
vear—the electronics—h a v e
Even the recent rail
merg- .
suffering along with the
ers, and merger studies have
.;enerai iist. if not
done little to
actually
spark
tl0tn Jn
notably
duction increase between 1952
and 1959 when the stock
was
busy dropping well below its
historic high.;.J V 7; ' ;
,
m
Koppers - Co. is also some¬
thing of a bargain item, sell¬
good ac-piping depress it by their ing at a third below its 1956
hnes involved, oer^ist8ent e^siness. A*d they; high and below book value as
studies being
,00> rebounded on the
a
rally. well. The company had trou¬
merger with
3ut
Left
Right: Ed Franklin: Jim McCormick; Paul
Fagan; Ries
Bambenek; Harold DeShong; Stewart
Storie; Allen Oliver; Herb
,
the
made
Jones.
ALABAMA SECURITY DEALERS
about
one
firm that, has had; bles in the last
Atlantic Coast Line and Seathree years but
mtle of the attention devoted, seems
to have turned a cor¬
board Air Line.
toother
*
*
*
.
Coast Line
portant
rightly
already has im-
interests
in
other
rails, notably Louisville &
Nashville of which it
third
of the
stock.
owns
This'
a
con-
:s
a
member of the group
Bendix
ronic
more
electronics and is
Aviation.
work
now
Its
elec-
ncluding work
contractor
on
as
a
two
it
Jones &
has
contract
a
missile
oxygen
furnace of that
has selected the follow¬
.: 7
7
.
President: Tunstall B.
Perry,
Inc., Birmingham.
/
III, Berney Perry & Company,
;;
;
:
,*?-
:
First
Vice-President: J. C. Andress, First National Bank of
Mobile.
;,7;V
7 '
•
.7
•
7.
Second
Vice-President:
John
Vincentelli, Merrill Lynch,
Pierce, Fenner & Smith Incorporated.
-
>
'
.
with
Laughlin Steel for the
prime largest
ASSOCIATION
Security Dealers Association
ing officers for 1960:
'
engineeringconstruction.; work was se¬
verely-depressed last year.
produces Now
than 40% of total
sales,
The Alabama
.
For one, its
ner.
X
to
Treasurer:
'
^
'
steel-making
Sam
Malone, First National
Secretary: Thomas
Bank
of
V.
,
Birmingham.
K.
Yardley, Hendrix & Mayes, Inc., Bir¬
type yet an¬
mingham.?
:
'
projects, as well as participat- nounced. Its
Executive Committee: S.
wood-treating ac¬
Brooks
ing in several others. Its ac- tivity was hurt
Holleman, Hugo Marx & Co.,
Birmingham; Frank B. Frazer,
by the trim in
Shropshire, Frazer & Co., Mobile;
tivity quickened last year in railroad maintenance work
Arthur
Stansel, Courts & Co.,
Birmingham; Harold B. Mayes, Hen¬
earnings of Coast Line itself 'ine with the
drix &
general econo- since the recession but seems
Mayes, Inc., Birmingham; Nolan
on its
own shares minus the
Darby, Merrill Lynch,
my, but- it- was still holding headed toward' a
febound. It -/Pierce, Fenner & Smith* Incorporated,'
value of L. & N. runs less
Birmingham; Arthur B.
iround 13-times the 1959 fis- is
Durkee, Sterne, Agee &
also
expanding into new
than
Leach, Birmingham; John B. Cox, Jr.,
8M>-times when a 10^1 year
Birmingham Trust National
earnings and at an areas in its chemical activi¬
times
tributes $1.67 a share to Coast
Line's profit before taxes,
Without this income, the true
ratio is about the
for
a
norm
rail stock.
*
*
-
wen
lower ratio
far
above
that
were
Unlike other carriers, Coast
Line didn't suffer as much
_!0nJmon *n electronics items.
Jarded its cash payments
from last year's steel
strike;
a 5% stock dividend to
in fact was able to boost
net
^art °ff this year, but still
respectably. It is expected to
do
even
better
this
year
in
a return
3/2%
around
the cash disburse-
on
raising its profit. It has a land ments. By any of the yardcompany with important sticks used, it would appear to
holdings in Florida, on which be an undervalued item in the
Humble Oil is
drilling for oil electronic lineup.
—all
items
speculative
that
would
stir
enthusiasm
anything other than
equity. It is, moreover,
the few roads that
a
in
rail
one
never,
of
had
Mohr
on
projected ties. At recent levels the issue
earnings for this year when was available at
nearly $18
ratios
*
,
,
855
As
*
its
was
upsetting
much dis-
cussion of the value of Amer-
Telephone and
the possi¬
value
of
Allen & Co. Sells
Freight Ways Stk.
They
dated Feb. 1, Allen &
Co. offered
to quick
oversubscription
presented
author
as
those
of
the
only. 1
Pursuant
to
an
LOUIS,
300
bers
of
has
been
Edward
North
of
Mo. —Warren
the
west Stock
D.
Fourth
added
to
Jones
&
Street,
New York
Exchanges.
and
common
20 cents) of Eastern
(Special to The Financial Chronicle)
staff
offering circular
BOSTON, Mass.
Close
Inc.,
F.
mem¬
(par
Freight Ways,
Carlstadt, N. J., based
car¬
rier.
the
Co.,
stock
and
was
State
Proceeds
to
now
—
Lawrence
E.
with
connected
Street,
v
Hayden, Stone Adds
BOSTON, Mass.—Philip H.Mont¬
gomery
staff of
priced at $4 per
sold
at
a
has
been
added
to
the
Hayden, Stone & Co., Kb
of
the
Joins John G. Sessler
premium
shortly after being marketed.
Mid¬
'
Post Office
Square.
The stock
share,
is
Harkness & Hill, Incorporated, 70
100,000
shares of the
Edward D. Jones Adds
ST.
Gauntt, Thornton,
Joins Harkness, Hill
[ The views expressed in this article
do not necessarily at
any time coin¬
cide with those of the "Chronicle
are
L.
Farish, Inc., Montgomery.
$58,
1959-60 low.
*
in
book
holding well above its
Langford
happens
markets, there
can
under
but still
Bank; William
&
*
'
BOSTON,, Mass.—Daniel
loff
offering
selling stockholders.
went
has
joined the staff
,M. Kis-'
of
John
Volume
LETTER
TO
191
THE
Number 5922
,
The Commercial and Financial Chronicle
.
.
EDITOR:
,
•
,
in the
the total
purposes
_
rently
"Chronicle"
in
silver
alleging
subsidization.
Maintains
of
excess
—which
in
the
holdings
not
the
slightly
are
light of World War II
If
stockpiles
of
critical
and
ex¬
Treasury raise priee from industrial
urges
the
The
can
,
December
10th
issue
the
of
silver
SIMON
D.
STRAUSS
duties
Vic'6-President,
consumers^-
American Smelting & Refining Co.
New York City
be
icle ^contained
tion
by
'
silver
t
i
B
o
M
n,
at
r
t
pointed
that
out,
it
sal
silver
dustry
the
in¬
copper
but
to
Simon
they
interests
"mining
subsidized
for .years,
relax their efforts
never
after more."- "
go
statement
pression of
1
•
gives
im¬
the
silver mining indus¬
a
the
which has grown fat at
expense of the taxpayers.
try
The
Record
/
;
<
of
average
to
year
declined
has
the
sented
a
year.
a
has not repre¬
windfall
a
industry.
./
Furthermore,
.
to
only
30%
the
the
as
ap¬
domestic
ounces.
constituted
now
stocks,
spread
added
12,000,000
or
over
four-year
a
that
from
now
mining
be
can
there
on
one
direction in which
ury
free
that
_
cussion
tional
price of 9OV20
appropriate
is
only
can
and
go
question
wise policy for the
continue to sell at
until
ounce
an
is
a
to
cents
the
last
has been sold. At that time
ounce
an
ounce
and
face
consumers
may
rise
price.
in the
a
sharp
very
V
Sales
Policy
Treasury's sales policy is
discretionary within the authority
of the Secretary. He is not com¬
pelled to
at
is
sell; if he does sell, 91
merely the lowest price
which
he
represented by the silver
certificates.
' '
;
,
annual report by Handy &
on
the
silver
market,
Harman
issued
that
Monday,
Jan. 18, reports
silver production in
world
1959
was
world
000
196,000,000
consumption
ounces
and
296,000,-
was
ounces.-
Ever
War II
since
the
end
World
of
consumption of silver has
been
of
ask
dustrial
selling at the lowest
price, the Treasury
consumers
and
to
might give
increase
an
is such
increase, the day
an
when
come
there
will
shortage that will be much
inconvenient for the
silver
than
Although
sions at
rill
Inflationary
trends
have
creased the price of all other
materials. In effect the
silver accumulated
of
War II.
m<:7 In
;
view
demand
pect of
no
production;
in
the
of
for
silver
rising
this
silver
and
world
the
pros¬
important increase in
an
price
eventual
increase
silver
appears
of
the
of
Bratter
major
this
Look
Needed
silver
analysts of the
silver
market,
including
Mr.
Bratter, might do well to stop
looking backward at conditions in
reason
&ales
of
Domestic
are
price
the
in
recognizes
use
S.
of
is
what
is
on
Mr.
today
a
material.
current
fields
raw
benefici¬
raw
all
in
in¬
ceiling
of
industrial
Two-thirds
U.
Forward
of
consumers
government
decorative
inevitable.
For
today
a
market
trial
indus¬
outside
Lynch
been
stocks
subject
the
of
of
II, these stocks proved their enor¬
mous
utility when about 1,500,000,000 ounces were put to useful
Silver
to
U. S. Treas.
Absorbed
.Output*
Purchases
Supply U. S.
By Industry
Manhattan,
U. S. Treas.
Sales
Mine Silver
To
i
Hotel, Park
Avenue and 48th Street, on Thurs¬
day evening, Feb. 11, starting at
8:15
That meeting will be
by Joseph P. Henican,
Vice-President in charge of
p.m.
Jr.,
the
575
33,101
15,451
17,650
10,301
held
in
torium
the
will
virtues
Brooklyn
College
whiqh
was
31,603
7,477
10,106
36
35,691
20,369
15,332
11,249
39,080
10,142
26,581
143,228
68,547
74,691
29,063
directed.
the
numerous
was
he
evident
Edgar H. Wistrand
endowed;
with which he
at
all
integrity,
times
with
in
his
And his charitable nature
ates.
flected in the varied social and
A
was
re¬
philanthropic organizations
connected.
was
meticulous
writer himself, Mr. Wistrand
always
pains to stress this quality in the work of the
members of his department. And, like most
busy execu¬
tives, he always managed to find the time to heed the call
for assistance from any member of our editorial staff.
Mr.
Wistrand
will
be
long remembered by his edi¬
fine attributes as an indi¬
vidual, and for his outstanding ability to analyze lucidly
the most intricate
developments in the sphere of corpo¬
rate finance.
His editorial competence^
fully exemplified
the high ideals and standards that have been the tradi¬
torial associates
at
We
sincere
for his many
publication.
.
V:
join with his
>
.
friends in expressing our
numerous
regret on the death of such
unselfish
a
friendly, kind and
gentleman.
Mr. Wistrand
his American
was
a
credit
Swedish forbears,
his
to
heritage and to all of
to be his associates
us
who
were
privileged
and fellow workers.
We, his "CHRONICLE" comrades, join in a farewell
as he crosses the eternal "bar" of the spiritual
starting at 8 p.m., at the Garden
requiem
State
Plaza
realm
State
Plaza.
be
Auditorium,
conducted
Garden
to
everlasting Peace, Salvation and Redemption.
The
meetings will
by Harry Litterest,
...
A. W.
Manager of the firm's office at the
Garden
State
Plaza.
Long Island,
a
session will
be held in the Garden City
Hotel,
Garden City, on Thursday, Feb.
11,
starting at 8 p.m. This meeting
will be conducted
by Jack Buckner, yice-President in charge of
the firm's office at 189
Montague
Street,
Brooklyn.
Heineman, Reader With Federman, Stonehiil & Co.
Stanley L. Heineman has become
associated with the newly formed
and
banking firm of Fed¬
erman, Stonehiil & Co., 70 Pine
Street, New York City. Mr. Heine-
CPA, will act
as a
Security
Financial
Research
Analyst
firm, members of the New
for the
York
Stock
ciate
member
Stock
Exchange.
investment
man, a
Harrison
Exchange
Business
and
the
To Admit Partners
WASHINGTON, D. C.
This
the
firm
Development
in
of
offer,
an
is
—
On
to
made
Feb.
4th,
Rouse,
Brewer,
Becker
&
Bryant, Washington Building,
ment.
neither an offer to sell nor a solicitation
buy any of these securities. The offer
only by the Offering Circular.
-
members
of
the
New
York
NEW ISSUE
February 4,1960
and
Philadelphia-Baltimore Stock Ex¬
changes, will admit Melvin O.
Wright and G. Leslie Sampson to
100,000 Shares
North American
partnership.
William R. Staats
Corporation
To Admit Meyer
SAN
JOSE,
Donald
J.
Calif.—On
Meyer
in
will
William
Feb.
Development
8
Common Stock
4th
become
a
Staats
&
R.
Price $3 per
Share
Co., First National Bank Building.
Mr. Meyer is the firm's resident
manager in San Jose.
Copies of the Offering Circular
may
be obtained only in
be legally offered.
Nicolaisen Opens
(Special to The Financial Chronicle)
ALAMO,
Nicolaisen
Calif.
—
Wagner
E.
has
opened offices at
1468 Sunnybrook Road to
engage
a
securities
business.
He
was
formerly with Grant, Fontaine &
Company.
•
HOWARD
111
COLEMAN COMPANY
Broadway, New York 6, N. Y.
•
BArclay 7-9414
now
the
Depart¬
is
announcement
asso¬
American
C. Reader is also
with
associated
of
Rouse, Brewer Co.
in
103,754
his
associ¬
took great
on
conducted by Gregory Canavan,
Manager of the 2231 Church Ave.
V
which
personal relationships
tional hallmarks of this
Tuesday evening, Feb. 9, starting
at 7:30 p.m.
The session will be
office, Brooklyn.
ably
'
Walt Whitman Audi¬
of
with
so
were
be
Bedford Avenue and Avenue H
27,951
6,554
26,173
office.
session
he
such States where the securities may
38,157
36,279
ending previous Dec. 31.
Avenue
a
Industry
1956
calendar year
Madison
Brooklyn,
,
1S57
*For
the
session will be
a
of
Corporation News
.Chief among these was that of
by phoning the firm's local offices.
(Thousands of Ounces)
Totals
stressed
held at the Park Lane
partner
Industry
Balance
U. S. Mine
June 3ft
••
ses¬
need for free tickets to be obtained
In
activities
Equally important
Investment &
Government
have
Year End.
1959
officials
years
editor
the
Apparent Total
1958
the
public, Mer¬
arts.
much criticism. During World War
Mine
conducting
cost to the
no
the
make
a
price.
aries
na¬
many
illness
more
increase
modest
a
be
consumers
steadily outrunning the new
supply. The deficiency has been
met ; by., drawing
on
stocks, of
prior to World
in
production of silver. Unless
there
will
higher price from in¬
a
incentive
some
world
in the
will
and
investment situations and ob¬
ous
sell.
can
permissible
could
of basic trends
economy
jectives during the months ahead.
On
Instead
whose
,
Paramus, N. J., sessions will
be held on
Monday, Feb. 8, and
again on Thursday, Feb. 11, both
The
for
was
his fatal
forums
In
Treasury's Discretionary
cents
.
In
silver stock
Treasury
$1.29 an ounce, which
represents the monetary value of
The
investment
specific suggestions to meet vari¬
the value of
as
free
the Treas¬
is down.
An
91
drawn
^
the
government,
acquiring silver from domestic
miners,
in
effect
realizes
a
seigniorage profit on every ounce
acquired. At present this seig¬
niorage
profit
amounts
to
the
difference
between
the
acquisi¬
silver
of
conducted
conclusion
in
tion
is
of this could be
free
ounces
whether it is
ounces
ounces
program
mines
an
This decline indicates quite clearly
that
Treasury
from
were
40,000,000
Under the law
\
from
60,000,000
35,000,000
S.
to
it
that
during
these
four
net receipts of silver by the
years
U.
this
From
years.
parent
The
show, however,
that since
the
1930s, when the
silver program of the government
was
started, domestic production
silver
Lynch, Pierce, Fenner &
Smith, Inc., members of the New
York Stock Exchange and other
leading ■ exchanges, - will hold a
series
tabula¬
a
period.
The record will
of
this letter
to
Treasury sales during the last four
D. Strauss
fiscal
states
This
-
Bratter's
-
abroad.
been
Mr.
U. S. Treasury purchases and U. S.
Bratter's
have
of
As
comparing United States
mine
production of silver with
silver
article,
in
appended
would have to
Mr.
stock.
active editorial
Department. An indefatigable worker, he
was
a
source
of inspiration to. those
-
Merrill
tion
industry
from
silver
free
Invest. Forums
ounce
an
haye
prices
would rise be¬
import
cents
.
strikes, world
cause
its
91
at
Wistrand
to
"The CHRONICLE'S"
article.. for the
public in New York and
Now
that
substantially all the suburban \
areas,
starting - next
lend-lease
silver
has
been
re¬
Monday. *
•.
v.
turned, the Treasury can make
Officials of the brokerage firm
additions to its free silver stock
will"present in the 90-minute
only to the extent that it buys
evening meetings a thorough dis¬
silver from domestic mines. I
during
silver
metal
ported
of
e s
to
Mr.
produc¬
12, this had been reduced to
174,000,000 ounces, instead of the
194,000,000 ounces in October re¬
not for Treas¬
ury
between
gap
WISTRAND
1960
nearly 40 years' association with
"The CHRONICLE," passed
away on Sunday, January 31
following a long illness. Survivors include his wife, Esther
Wistrand, three brothers and one sister.
to
Jan.
r
were
future
the
—
after
prior
consumption. Treasury is presently sell¬
from
r.
e
June
were
and
ing
situa-
the
The
Herbert M. Bratter reviewing the
in
done
bridge
article
they
as
last
and, instead, look forward to what
Commercial and Financial Chron¬
an
market
1898
Edgar H. Wistrand, who discontinued his
nation.
giving incentive to increase needed world production.
Editor, Commercial and Financial
Chronicle: '
•'
'
'
;
HILDING
validity,
then
the
silver
stockpile is a real asset to the
price rise inevitable. Asserts Treasury free silver stock must decline.
Strauss
EDGAR
other
materials
have
rising
world silver demand without sizable increase in production will make
Mr.
lit HJeittmiam
ounces
excessive
seem
17
Cur¬
in
2,000,000,000
does
perience.
strategic
Company official takes issue with H. M. Bratter's
article
effort.
war
Treasury in all forms
Our Silver Stockpile Termed
A Real National Asset
American Smelting
(573)
18
three
averaging
loans
and
Chronicle
and Financial
The Commercial
(574)
.
.
.
Thursday, February 4, 1960
one-
-The. bank's small loan
by far the largest in
half years.
business,
York, continues strong. Such
approximated $334.million
in
1959.
By year-end the loan
rate exceeded 5% rate. Early in
New
loans
STOCKS
BY LEO
BURRINGTON
L
First National took the
the interest rajte
for broker and dealer loans fromin
lead
This Week
Bank Stocks
—
THE FIRST NATIONAL
BANK
CITY
5%
in
world
wide
banking
though third in size among United
the.
States
munication, and public utility* in¬
dustries); • Metropolitan, whjch
services all New York City ac¬
counts; and the Overseas Division.
Foreign
expansion,
a
step ithe
bank
pioneered, is being given
strong emphasis., New offiqesr al¬
ready scheduled for 1960 openings
-
(petroleum,
banks, First National; City-
Bank carries out its efficient bank¬
ing business through 85 domestic
branches
offices
During .1959
nine
and
83
and
countries.
in
six
28
local
offices
overseas
were
opened.
The bank?s progressive manage¬
ment is committed to the
prin¬
u
ciple
of
banking
include
complete
both wholesale
services,
Its
preeminent
ing reputation rests
on
Recently
lished
diversi¬
a
individuals
network
tomers..
both
weir
as
Bank
as
within
its
with
personnel
Group
-
com¬
Ecuador and
in
Argentina.
"Common
Market
Service"
its
at
in
two
a
Paris
estab¬
was
office
to
meet
ing European market.
Statistics
its
presented include the
wholly-owned affiliate, First Na¬
tional City Trust Co., which serv¬
cus¬
benefit
from extensive training programs
and the broadening experiences
Earnings from
achieved
frequent shifts of
responsibilities.
Customer relationships are or¬
ganized under three major divi¬
have ranked
sions;
of White Plains has been blocked
ices
from
officer
National,
which
(In
ASSETS—
OF
fiduciary services
high with investment
recent
years
sec¬
as
12/31/58
12/31/57
continue
from
656.9
8.1
6.7
47.5
as
Combined
2.3
190.8
,2.4
$8,297.5
Capital funds
100.0%
$765.1
Deposits
Savings deposits
7,234.9
during
gain
$8,088.1
9.2%
earnings
1960
shares
7,127.8
(578)
(8.6)
9.4%
88.1
87.4
(8.1)
in
Wertheim
of
the
$8,297.5
100.0%
$8,088.1
100.0% $7,802.6
SELECTED PER SHARE STATISTICS
Net Oper.
Book Value
$3.00
61.09
4.92
4.92
2.84
60.11
-
at
9.0%
,
74—56
'
1.76
8.3
;
52.26
by legal and regulatory obstacles,
the two banks are continuing to
'
-
•
•
affiliation via the hold¬
company route.
6.6
68—59
and
deposits
last
of
meeting the
in
the
greater
face
of
slow
in
largest
single customer, all of the 100
largest U. S. industrial companies
"strait-jacket"
with
limiting
its
source of needed
deposits largely
to New York City. As the finan¬
center
of
the
world, city
banks face an existing world de¬
mand for loanable funds, thus the
present deposit growth limitation
is particularly severe.
By reduc¬
ing United
States
Government
holdings
30%
some
during
1959,
management at First National was
able to serve its
primary function,
the
readiness
term
to
meet
requirements
tomers. The bank
the
of
was
few among New
banks able to register
its
cus-<
of the
one
very
short
York
some
City
slight
Aided
by
possession
of
the
lending
capacity
to
a
though
the
second
largest
account for
a
centage
deposits, an es¬
timated
17%. Of total deposits,
time deposits* (including savings
deposits) are roughly estimated at
,
approximately 20%; with 8.6% of
total deposits representing savings
deposits..
•'
»
During 1959 the bank's total
re¬
ported loans increased 15% and at
the end
of
1959
were
presently
62%
they
of de¬
approxi¬
65%.
loans
BANK LIMITED
in
total
to
mate
GRIND^AYS
outstanding represent
About
two-thirds
of
term
Amalgamating National Bank of India Ltd.
and
Grindlays
Head
26
Bank
Ltd.
I|
Our
Office:
BISHOPSGATE,
London
LONDON,
E.C.3
Comparison
YORK CITY
BANK EARNINGS
STREET, S.W.I
13
Annual
NEW
Branches
54 PARLIAMENT
SQUARE, S.W.I
ST. JAMES'S
come
Tax
Depts.:
13
St.
54
Parliament
St.
Breakdown of Sources
of Gross Income
NORTHERN
AND
SOUTHERN
Bankers
of the
.
Exchange
Exchange
Specialists in Bank Stocks
of
$5.00
consisting
of
the
*
of
si:
same
has
been
par
elected
Vice-President, Chief
and
Gotham
Director
a
Feb.!
on
1
Loan
of
Bank, New York
announced
Talcott Plans
it
by
The
was
David
record
Mr. Freund has been associated
the
Chemical
Bank
New
York
Europe Offices
Trust
Company
predecessors
for
James
Talcott, Inc., one of the
nation's
leading commercial fi¬
some
since
time
and
1936
been
its
and
serving
Senior Loan Officer for this
Bank.
.
was
operatiohs
Talcott
is
the
to
Europe.
first
the
American
in
its field to make a
full range of industrial and com¬
mercial
financing
available
countries,
said.
Other
Mr.
in
Clark
&
is
Mass.
now
with
—
loca¬
are
York, it was announced
William A.
Lyon,
*
Edward
elected
S.
*
by Mr.
President. He
George M. Halk.
*
Backnick,
Vice-President
Brooklyn,
Transferable
evidencing
Blair
&
Co.
of
managers
Incorporated
and
a
that
group
are
will
underwrite
the offering.
(
proceeds from the sale of
Net
?
the additional shares of stock will
be added to
the Bank's capital
funds.
■
State
*
Bank
*
of
Long Beach,
Long Beach, N. Y. announced the
election
of
Charles
President,
as
E.
and
M.
Stahl, Jr.,
L. Bishop,
Vice-President.
*
The
*
v;
County
*
Trust
Company,
White Plains, New York, received
increase
to
its
Capital
from
$7,702,980 consisting
1,540,596 shares of the par value
of $5.00 each to $8,088,130 con¬
sisting. of 1,617,626 shares of the
same
par value.
1
of
'
sf:
„
t
*
Approval given to State Bank of
Albany, Albany, New York to in¬
its
crease
Capital
$6,633,700
shares
each
of
to
696,538
Stock
from
consisting
the
of 663,370
value of $10.00
par
$6,965,380 consisting of
shares of the same par
*
*
Approval given to First Trust and
Deposit Company, Syracuse, New
York, to increase its Capital Stock
from
$2,695,380
consisting
of
$388,010
of
Cumulative
Con¬
vertible
Preferred
Stock, divided
into 77,602 shares of the par value
of
$5
each,
and
$2,307,370 of
Common Stock, divided into 922,948 shares of the par value of
$2.50 each, to $2,741,527.50 con¬
sisting of $388,010 of Cumulative
Convertible Preferred Stock,
divided
into
77,602 shares of the
value of $5 each, and $2,353,-
517.50
of
Common
divided
Stock
into
941,407
shares
value of $2.50 each.
*
J.
of
the- par
Jr.
and
was
Mort¬
Sav¬
*
H:
Sweeney,
President
Senior
Viceand
Manufacturers
of
Traders Trust
Company, Buffalo,
New York,: died on Jan. 27 at
age
By
a
the
of 63.
stock
chants
dividend,
National
Bank
the
Mer¬
of
New-
buryport, Massachusetts, increased
its
common
capital stock from
$120,000 to $240,000. Effective Jan.
19
(Number of shares outstanding
12,000
par
value $20).
*
Franklin
*
*
Paterannounced the
C. Biggins as
President and
Chief
Executive
officer.
He
succeeds
Harold RClark, who was elected Chairman.
Herman W. Becker former Chair¬
son,
Trust
New
election
man,
Company,
Jersey,
of
John
becomes
a
member
executive
created
of the
com¬
mittee. Mr. Biggins and
Aloysius
J.
O'Brien, Vice-President and
Secretary, were elected to the
New York jBoard.m
n
.
<
> - •
* •
effective Feb.
1, according to an
*
*
*
announcement made
by Michael James D.
J.
Holman, a Director and
Burke, President.
executive committee member of
Mr. Backnick has
resigned from the First
National Bank of Toms
,
P.
each
held of
Carl M. Loeb, Rhoades & Co.
newly
gage Officer of The
Lincoln
ings Bank of
Nuveen
Company, 140 Federal Street.
of
succeeds the late
cur¬
Edward
John
position
promoted to
official appraiser
Dry Dock Savings Bank, New
Silver¬
overseas
With John Nuveen
BOSTON,
for
29.
the
for
stock
rights
to
subscribe for the additional shares
will expire on Feb. 19.
John
as
and
pany's
of
has
He entered the
factoring organizations,
banking world
has reported record volume and in 1927 with the Chatham
Phoenix
earnings in 1959 and simultane¬ .National Bank,. which later be¬
came
ously announced plans to finance
Manufacturers Trust Com¬
receivables in both England and pany. He remained
with this Bank
Italy through affiliated offices in until 1932.
Subsequently, he joined
London
and
Rome, in the near the Continental Bank &
Trust,
future.
which later became the
Chemical
Bank New York
Herbert
R.
Silverman, Presi¬
Trust Company.
Clarence Rainess, has also
dent, said that Talcott's success in
been
co-sponsoring
a
commercial fi¬ elected a Director of the Gotham
nance company in Puerto Rico in
Bank, New York.
1958 had provided valuable expe¬
*
*
*
rience
for
extending the com¬ John O. Johnsen
nance
share
new
Jan.
on
warrants
par
with
Telephone: BArclay 7-3500
Teletype NY 1-1248-49
420,000
value
$2,205,000
in¬
from
Berg, Chairman.
BROADWAY, NEW YORK 5, N. Y.
Bell
New
to
of
par
Freund
Officer
Vi
.
RHODESIA
Senior
of
rently under study, he noted.
Stock
of
consisting
*
Invest¬
Association
Laird, Bissell 8 Meeds
120
Bank
approval
v
shares
Walter
partner since 1930.
tions for affiliated offices
Members American
in:
a
Members New York Stock
PROTECTORATE
one
shares
on
.
Stock
the
of
to
*
value.
America in 1959.
man
INDIA, PAKISTAN, CEYLON, BURMA, kENYA,
TANGANYIKA, ZANZIBAR, UGANDA
ADEN, SOMALILAND PROTECTORATE
of
basis
sixteen
share
per
value.
value.
Capital
William D. Kerr
President
was
European
&
James's Sq.
Bankers to the Government in:
ADEN, KENYA
UGANDA, ZANZIBAR & SOMALILAND
Branches
he had been
company
Trustee Depts.: 13 St. James's
Sq.; Govt.
Rd., Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
each,
at the subscrip¬
price of $25
sfs
•
par
*
State
its
441,000
of
■
which
of
ment
*
$2,100,000
amount among New York's
banks,
relatively small per¬
tion
,
by
*
same
received
shares
Bank
of
•the capital stock
*
*
Royal
York
joined in 1927,
He
its
of
-•
among
posits;
NATIONAL AND
The
.
partner in.Bacon, Whip-'
and
the bank's customers.
Correspondent bank deposits, al¬
are
*
-
pie
& C o.ji"
loan -which
he
growth in deposits.
*
shares of the
formerly
The main problem remains
year.
one
assets
in
ap¬
to
International
on
value
par
crease
44—37
has
Collado
5,202,000 shares of
of $10
each, to
$53,060,400 consisting of 5,306,400
the
New
Mr. Kerr was
Trust
approval to increase its
Stock
from
$52,020,000
consisting
a
gain
demand
barriers
in
York
York
G.
*
Capital
.York City, at,
120 Broadway.
Typical of other New York City
banks, First National finds itself
cial
from
Irving Trust Company, New York,
Wertheim's
office
New
members
headquarters
Range
92—73
'
deposit
stock
New
Emilio
received
\
National
*
it was announced
Chairman Harold H. Helm.
will
Approx. Bid
8.1
,
'
Co.,
",1'
*
Long Island is offering to holders
of its capital stockjrights to sub¬
scribe for 185,000 new shares
1
Business,
his
Price
on
Book Value '
$62.51
2.94
.
Kerr
make
% Earned
Divid.
Earnings
&
•.
stock
Bank
Advisory Board
New
I
*
capital
Company,
Exchange.
Mr.
a
*
consisting of 13,430,340 shares of
the same par value.
Stock
York
artificial
Director
a
$164,587,500 consisting of 13,167,000 shares of the par value
of
$12.50
each,
to
$167,879,250
CHICAGO, 111.—William D. Kerr
on
Feb.
1st
became
a
partner
1.7
ing
its
crease
be
pointed
1.5
pursue an
and
Approval given to the Chase Man¬
Bank, New York, to in¬
Wertheim Partner
1.3
3.40
Vice-
Senior
a
1957
* 1
\
1"
The- Franklin
branch
the
•
Chemical
1.4
-
1947
Department.
;
,
approval
104.1
1957
in
hattan
Wm. D. Kerr
9.2%
important
official positions in its real
Estate
and Mortgage Loan
The
outstanding total 12,240,000.
108.4
1949
elected
was
*
Common
issue.
was
last July.
expected with increased earnings
bank
of
head
President in
The
stock
presently
priced at 87 is judged reasonable.
Unallocated reserves exceed $11 a
1.2
_
sen
probable.
can
He
office division in 1956. Mr. Peter¬
conserva¬
increases
1928.
Vice-President
a
became
and
tively estimated at $6.00 a share,
appreciation. appears
Dividend
since
Bank
elected
healthy
a
President in
been with
elected
being
be¬
1957. Mr. Petersen has
the
further
2.4
1958
fore
100.0% $7,802.6
$747.8
87.2
(610)
$5.55
with
and,
1959
in
197.5
_
op¬
The stock appreciated 21%
gain.
100.0
Year
net
pared with $4.92 for 1958, a 12.7%
Other liabilities
•1959
share
per
division
administration
loan
erating earnings for 1960 were
$5.55, adjusted for the recent 2%
stock
dividend
declared,
com¬
Reserves
.
as
2.9
LIABILITIES—
Total liabilities
well
,
49.6
191.7
as
administrative officer. Mr. Murphy
from an
joined Irving Trust in 1931.; He
orderly liberalization from legisla¬
had been in charge of the per¬
tive
restrictions
by New York,
sonal trust division and then the
either this year or later.
quirements
quality
3,839.1
and
mittee. Mr. Peterson will be chief
vault cash and lower Reserve re¬
15.8
6.8
Director
as:, a
Chairman' of the Executive Com¬
of
relaxation
permissive
19.6
53.3
Other assets
__
expenses
performance for this leading, high
568.5
Total assets
of
25.0%
4,420.0
Loans
the Chase Manhattan Bank
where
since 1937 he has held
.
which; is
will also be chief executive offi¬
aided by automation controls, im¬
cer. He succeeds Richard H. West,
proved
physical
facilities, and
who-is
retiring. Mr. West will
proficient management. Benefitscontrol
22.4%
$1,813.3
1,588.0
13.4
outlook
share.
$)
24.2%
1,108.3
Other securities
business.
CONDITION
millions
$2,009.0
U. S. Governments
trust
ondary sources. Although the ac¬
quisition of The County Trust Co.
12/31/59
Cash
bank's
earnings in
includes
STATEMENT
the
viewpoint
National's
increased
interest in this grow¬
the intense
fied, though closely coordinated,
organizational base. Emphasis is
on
each
and
Counseling
bank¬
Industries
transportation
.
one
Jamaica
performing
retail.
and
Special
investor's
the
George
A.
Murphy,; formerly
for First
President
of
the
Irving
Trust
earning power rests on
Company, New York was named
•such
constructive, factors as' its;
a Chairman. William E. Peterson,
strategic position in the fast grow¬
a - Senior
Vice-President,
was
ing
overseas
market; excellent,
elected
President. - Mr,* Murphy;
the
First
W-V-.*'-
5%.%-.
to
Revised Capitalizations
•
raising
From
YORK
OF NEW
New. Offices, etc
New Branches •
Consolidations •
January,
.
Volume
191
Number
5922
.
.
The Commercial and Financial Chronicle
.
19
(575)
River, N. J.
elected
was
a Director.
William G. Klemt and William J.
Hunt
were
mercial National Bank
Illinois
named,to Vice-Presi-*
'•
*
•
f
'
'
dents.
*
s[:
capital ,stock
*
(Number
New
dividend
Jersey,
by
increased
Elmhurst
capital
stock
from
$800,000
to
$900,000. Effective Jan. 19. (Num¬
bers
of
shares
*
announced
S.
stock
$
Carll
Pennsylvania,
the
Executive
election
Chairman
as
Officer.
of
has
and
Wein-
A.
The
the
Bank
-
election
Schnader,
Executive
committee
Chairman.
James R.
elected
dent,
H.
By
an¬
and
Secretary
Everly
Bellefonte,
the
Trust
its
ville,
Virginia,
by
dend increased its
stock
from
Effective
National
Lincoln,
shares
19.
Effective
shares
70,000
First
par
stock
dividend,
The First
National Bank of Bassett, Virginia
a
increased
its
capital
stock
from
$200,000 to $600,000.
Effective
Jan.
21.
(Number of
shares
outstanding
60,000
par
value $10).
common
*
The
Parkersburg,
its
creased
from
$250,000
tive
outstanding 25,000
*
Hostetter
Society
as
B.
France,
National
Mr.
President
of
in
was
Society
A
of
Miami, Florida, where he
and
Company,
the Tootle
and
land from the First National Bank
Vice-President
increased
consolidation
Trust
Cleve¬
to
comes
its
par
they will
W.
Commerce
of
by
an
More
12,000
Bank
Portland,
A.
Roger
than
election
Bank,
of
Portland
or
of
shares
a
of
was
Harris,
as
three
Vice-President
of
served
the
Colorado,
;
of
St
the
Empire
Joseph,
National
Mo.,
Bank,
as
the Tootle-Enright National Bank,
was
was
announced and became effec¬
tive
as
>
capital
of
ber
par
of
shares
Un¬
of
000
Security
for
be formed with
Bank
and
of
give
the
approximately
total
de¬
as
California,
will
office
Monrovia
its
open
Street, New York City, to
engage in a
securities business.
Nathan
March 4, in the Monrovia Shop¬
ping Center, at 320 West Hunting¬
ton
Drive.
be
the
The
Monrovia
office
70th
office
for
Cali¬
has
active
been
stock
broker
The Messrs.
Planning
engaging in a
Mich.—Harris
Building,
members
New
Feb.
11th,
will
admit
Marentette
Corpora¬
securities
York
and
Robert
berg
Stock
&
*
*
K:
P.
Quayle
of
G.
Kirkwood,
Lincoln, Jr. ' and W.
as
Vice-Presidents
National
Central
Ohio
land,
W.
was
Bank
*
of
By
H,.
Hardin
of
$300,000
the
to
Gelbach,
Board.
were
the
announced
New
new
of
members
as:Gregory S. DeVine,
Vice-President, John P. Dragin,
its
E.
Marentette will cease to be
Ave., New York City.
ited
a
Administration,
Robert
D.
McCreery,
Vice-President,
and
Alfred E. Wolf, Senior Vice-Presi¬
Glasgow,
increased
from
$110,000
ft
By ;
a
stock
facturers
cago,
to
National
Bank 1 of
increased
stock
its
Chi¬
com¬
by
stock
*
❖
dividend,
Bank
of
mon
capital
stock
from
$150,000
Jan,
21.
to
Spartanburg,
creased- its
,from
South
Carolina,
common
$600,000
dividend.
to
in¬
capital stock
$750,000,
by
Effective Jan.
a
21.
■
a
stock
*
*
dividend,
The stockholders of the First Na¬
the
Com¬
tional
Bank
in
Palm
Beach,
December
31, 1*53
31, 1959
Billings during the period from ship¬
and
ship- conversions
building,
repairs,
hydraulic
turbines and
$46,923,377
First
com¬
December
31, 1958
31, 1959
other work
The
Year Ended
December
December
$60,499,466
$196,070,624 $180,587,648
At December
Morgantom
$500,000
Effective Jan. 18. .(Number of shares outstanding
of shares outstanding ;75,p00, par value $10.) value $20.)
#
Three Fiscal Months Ended
a
$1,000,000.
50,000, par
and Number of Employees
(Subject to audit adjustments)
increased
stock
North Carolina, increased its
stock
from
Quarterly Statement of Billings, Estimated Unbilled Balance
of Major Contracts
The Commercial National Bank of
dividend,' The Manu¬
Illinois,
(Number
By
$22(^000.
>i:
capital
mon
to
Newport News Shipbuilding and Dry Dock Company
»
$300,000.
Effective
(Number of shares • outstanding
Effective
Jan.
21.
(Number of
shares outstanding 2,200, par value .12,000 par value $25.)
$
t|:
-k
$100.)
stock
.
its } 'common"" capital-
a
National
•
Indiana*
capital
❖
stock dividend, the First Na-;
Valparaiso,
*
Kentucky,
common
By
Bank,
from
Farmers National Bank
dent-Finance and Accounting/
tional
y
dividend, from $100,000 to
$200,000. Effective Jan. 20. (Num¬
ber
of
shares outstanding 2,000
par value $100.)
and
a
stock
>):
partner.
increased
value $25.)
par
King,
L.
At December
31, 1958
31, 1959
Estimated balance of major contracts
$277,669,961
$350,650,514
14,389
unbilled at the close of the period
11,723
Equivalent number of employees, on
a
40-hour basis, working during
the
last
full
work-week
period
.
On November
cargo
The
the
.
30,1959 the Company submitted
a
bid of $44,539,340 for the construction of four Mariner-type
vessels for States Steamship Company which has been designated officially
Company reports income from long-term shipbuilding contracts
income for any
period will therefore
unbilled balances
'
of
are
"
vary
from the billings
on
on
as
the low bid.
„
.
the percentage-of-completion basis; such
the contracts.
Contract billings and estimated
subject to possible adjustments resulting from statutory and contractual provisions.
'
By Order of the Board of Directors
January 27, 1960
R. I. FLETCHER, Financial Vice President
R.
Stein¬
to general partnership.
business from offices at 2133 Third
stock
Executive Vice-President-Finance
By
_■
Frank
on
Lloyd
Eliza-
Bank
capital
:J:
The
of
Bank,
the
Exchange,
First-
$500,000.
Effective
(Number of shares out¬
also
Loring <L.
The
Kentucky,
standing 20,000
Directors
new
fornia
*
to
22.
Jan.
President.
elected
National
its '.common
by
Loring L. Gelbach, Chairman and
Four
*
dividend,
bethtown,
Cleve¬
announced
stock
a
Co.,
of
'
election
The
in
Powell
officers of Powell and Co., Inc.
DETROIT,
Planning Corporation
is
Kistler
individual
To Admit Two
Northeastern
Northeastern
tion
Powell,
Needelman
business
for
an
Book
Form
J.
Harris & Co.
192nd
are
Robert
Opens
J. K. Norton & Company has been
formed with offices at 569 West
new
110 Old
Kistler, member of the
Fayetteville.
Angeles,
Los
<
Mr.
Jr.
and Miriam Needelman.
Bank,
offices at
Exchange, and Robert J. Powell,
excess
$13,500,000. Capital funds (in¬
cluding
surplus
and
undivided
profits) is in excess of $1,800,000.
Partners
be
Charles E.
$12,000,in
resources
will
ners
Se¬
total
Oregon
of
3,750,
,
California
Watt
FAYETTEVILLE, N. C.—Powell,
Kistler &
Co., members of the
New York Stock Exchange, will
ex¬
are
common
outstanding
-
in
Powell, Kistler &
Co., NYSE Firm
the
de¬
exchange.
J. K. Norton
from
value $100.)
partners
& Watt.
the
been
had
will
merger
Bank
posits
Peoples
its
Company Limited,
Street, effective Feb. 15th.. Part¬
curity
as
'$250,000
to
$375,000. Effective Jan. 20. (Num-
will
of February 1.
increased
stock
Osier
formerly
were
merger, Bank of
stockholders
will
be
shares
The
had
E.
Jordan Street, members of the
Toronto
Stock
Exchange.
Both
stock.
prior to his
Republic
National
Harris
A.
11
un¬
of
$100 per share, or may
change one share of stock
years
at
Mr.
have been elected Vice-Presidents
author¬
two-thirds
outstanding
Portland
announced.
nine
stock and Frederick W. Wittstock
re¬
der terms of the
Assistant Vice-President of the
was
With A. E. Osier
TORONTO, Canada—Roy C. Witt-
had
regulatory
posited for sale
Republic National Bank of Dallas,
Texas,
R. & F. Wittstock
tk
*
by
Exchange firm of Rudd &
Co. in Washington, at 734 Fifteenth
Street, Northwest.
*
paid
of
formerly
ities.
stock
a
con¬
Stock
$4,90Q,000 and deposits
of
-
the New York
Hellman,
about
approval
n
conducted
Irving G. Rudd
Date of the merger awaits final
Effective
it
common
Officer.
Trust
Bank
of
that,
iness
Security Bank.
of
a
tinue the bus¬
$4,000,000. Capital
$600,000, surplus $150,000 and
divided profits $179,000.
$
Texas,
Houston,
Election
capi¬
capital stock from $750,000 to $1,000,000. Effective Jan. 19. (Num¬
ber of shares outstanding 10,000,
par value $100.)
Bank of Cleveland.
Hostetter
of
of
Jan.
18.
(Number
of
shares outstanding
577,500, par value $20.)
stock dividend, the Colum¬
a
Missouri,
Feb. 2 by Mervin
on
$500,000.
100,000,
Bank
sources
dividend, increased its common
capital stock from $11,000,000 to
>.
Trust
Bank's
Cleveland, Ohio
made known
By
W.
Officer
Trust
a
National
Department,
Dwight
of
stock divi¬
a
common
to
(Number
*
National
The
St.
bia National Bank of Kansas City,
of
*
Fremont,
in
stock divi¬
a
outstanding
The
Sutro
nounce
-
f
appointment
L
*
Portland into
San
com¬
-
value $20.)
par
of
of
Gen¬
Bros,
institution.
new
as a
ously,
will
Security Bank of Oregon at Port¬
land, Ore. is merging the Bank of
Bank
21.
of the
$15,400,000 to $16,; National Bank of Tyler.
940,000. Effective Jan. 18. (Num¬
,'t
./*
!|i
*
ber
of shares outstanding 4,000,
By a stock dividend, the First Na¬
par value $100.)
tional
*
*
*
Bank; in
Fort
Collins,
in¬
one
bank stock
par
*
$250,000
$11,550,000.
Bank
by
bank.
&
840,000,
:|:
Jan.
si:
its
plan
merger
new
and Chief Executive officer of the
value $5.)
par
D. C.
eral Partner.
C.
merged
G.
of
Washington,
supervisory
Kirk, Chairman of
American Trust, will be Chairman
tal stock from
capital stock
*
Missouri,
increased
Harris
Irving
Rudd
Trust stock outstanding.
$8,000,000 to $8,400,000.
21.
(Number
of
from
shares
❖
National
First
Louis,
to $500,000. Effec¬
(Number of shares
Jan.: 21.
The
The
Bank,
Virginia
West
common
stock
a
90,000,
s|s
capital
the
announce
of
exchanged for each share of
Wells
Fargo
and
of
American
*
National
Effective
For
dend
National
*
capital stock by
dend,
of
Stock
ad mission
be
Jan.
First
C. —Sutro
D.
Co., members of the New
Simultane-'
the
share of the
Mo¬
Angelo, Texas, increased its
stock
a
Ji;
:!:
Parkersburg
by
Bank
by
Bros. &
American Trust, will be President
mon
Commerce
■
of
stock dividend, the First Na¬
a
The
shares
dividend,
increased
its
common
capital
stock from $200,000
to $300,000.
Effective • Jan.
21.
(Number
of
shares
outstanding
12,000,
par
value $25.)
t
By
National
Nebraska,
:
;
of
$1,650,000 to $1,800,000.
19.
(Number
of
*
WASHINGTON,
>k
the state and Federal
Effec¬
#
*
*
by
re¬
and
stock dividend,
a
outstanding
value $10.)
Jan.
of
Davis.
Exchange,
Under
Bank
shares
value $100.)
par
outstanding
$20.)
value
$700,000.
(Number
outstanding
value $10).
stock from
divi¬
capital
#
Effective
dividend, increased its common
capital stock from $1,500,000 to
$1,650,000, and by the sale of new
Dan¬
to
par
capital stock
of
G.
President of Wells Fargo, will be
Vice-Chairman
of
the
Board.
Ransom
M.
Cook, President of
By
./,,
Nebraska,
of
common
50,000,
(Number
Bank
stock
a
$600,000
Jan.
18.
by B.
approved
by
the
stock¬
holders.
The
consolidation
will
become final when approved
Jan.
,
In Sutro Bros. Co.
office
new
tional Bank of Fort Worth, Texas,
increased
its
common
capital
of
*
*
#
First National Bank
The
i
the
at
stock from
(Number
common
Company,
Company. Effective at
*
capi¬
staff
been
$1,500,000 to $1,875,000.
21.
(Number-of
shares
outstanding • 75,000,
par
value $25.)
Bluffs,
Rudd to be Partner
;
York
*
.
common
*
Jan.
Gerity, Jr.,
stock from
$200,000 to $400,000.
tive
the close of business Dec. 31.
*
its
Effective
an¬
banking authorities.
National
increased
-
common
:|:
outstanding 4,000,
under
First
-
Fargo Bank, San Francisco, Cali¬
fornia, and the American Trust
Co., San Francisco, California, has
of
Bettendorf
bile, Alabama, by
a
from
First Bellefonte Bank
#
The
Board
The proposed merger of the Wells
Bank
Gumenick, Alvin Cas-
Joseph
Shepard Broad.
the
Miller, manager, will
*
James
tired,
stock dividend, the Clinton
National Bank, Clinton, Iowa, in¬
By
common
Pennsylvania
title of
and
Trust
#
21.
the
•
and will be assisted in its admin¬
istration
sell, and S. L. Seltzer.
$300,000 to $500,000.
Jan.
directors:
new
*
Council
si:
$200,000 merged with and
Bellefonte
into
*
of
$1,capital
Miami Beach, Florida, named four
capital stock
outstanding
$10.)
value
creased
stock of
*
tal stock from
shares
The First National Bank of Belle-
fonte, Pennsylvania with
par
$750,000. Effec¬
(Number of shares
Bank
Effective
was
Vice-President.
a
;
head
to
of
Robert F.
>
iji
National
Nathan S.
to
20.
bank
total
Two former board members
Iowa, increased its
Charles
and
32,000,
of
stock dividend, The City Na¬
a
tional
Senior
Vice-President,
McClurken, Vice-Presi¬
Samuel
Jan.
/
Vice-
and
$800,000/
to
outstanding 37,500, par value $20.)
William
Trimble
Mercantile
capital
#
$600,000
tive
Chairman of the
as
❖
a
from
com¬
also
of
I$1
of the
making
Elm-
(Number
increased its common
and
mittee, succeeds him as President.
Caspar Drueding, who had been
Chairman,' becomes honorary
nounced
'
.
Chairman
nounced;-,
capital stock
stock dividend, The First
National Bank of Ottawa, Illinois,
Chief
Samuel
..
.
..
By
$600,000
19.
25%
funds of $5,367,000.
Bank,
common
Jan.
the
stock
500,000,
stock dividend
a
ratified
previously approved by
Comptroller of the Currency. This
$300,000 stock dividend increases
*
outstanding
$25.)
value
Elmer
rott, Senior Vice-President
Chairman of the Executive
Chairman.
from
shares
Industrial Trust Company of
Philadelphia,
s>s
its
Effective
*
...
The
■*
National
increased
outstanding 36,000
Florida,
dividend
shares
outstanding
value $20.)
hurst, Illinois, by
value $25).
par
Peoria,
from
s|:
common
of
common
of
par
stock
a
its
150,000,
its
$2,500,000 to
Effective Jan. 18.
$3,000,000.
The First National Bank of South
River,
increased
Mr.
lim¬
20
Funds
Interested in possible
the
"At
to New
High:
...look into
who
risen
new
that
60s.
It 'is
taken
bring
to
is
ours
econ¬
strong
a
but this strength cannot be
for granted and expected
omy,
holdings."
'
; 'conservative,'; it would not-*,, ne¬
"We. don't believe all the trou¬ glect Democratic 'inflationary im¬
bles of the industry will evap¬ plications.' After all, stocks have
the
that
true
our
with
likely
more
they shall be Sobering
agement-labor procedures. While
the stock
market might take a
caused
us -to
disregard currents
favorable view of a Republican
market pessimism, and add mod¬
orate
it
'60s.
Soaring
us
promise
believe
We
Continued from page 1,. u
FUND
of the decade we
turn
whoieneartedly join those
cannot
erately to
Blue
Ridge Mutual Fund:
LONG-TERM GROWTH?
ABERDEEN
Thursday, February 4, 1960
.
.
,
of
President
Popovic,
D.
'
Financial Chronicle
The Commercial and
(576)
uninterrupted
an
us
growth at a fanciful rate more or
automatically. Our ability to
less
under-each of the last three
year," opined ;
expand will be somewhat tem¬
r
'
Barringer,'of the Del-; Presidents." * 7
'/ pered by the problems that were
Fund,-"or that oils will1
"Corporate profits in 1960 will built, into. Our economy in the
soon
again dominate speculative make new highs, rising about 15%
postwar years and by tne rise in
activity of the' market. 'But we ' on average," Mr. Rubin continued.'
competitive frictions on a world¬
do .'think that emotional pendu¬
"Corporate dividends will rise. v.7
wide; basis.- This.vis a rapidly
lums
frequently swing too ' far, ; The Dow-Jones Industrial Stock
changing economy now, due to
and
that when they do,
worth-, Average will make a - new alltechnological improvements which
while-values-may be found." (Im-"' time high.
Stock prices should
may be either constructive or un¬
plementing.: this observation,- his - rise in reflection of much better
settling in their effects upon dif¬
,^Delaware Fund established a new earnings, and the rise should be
ferent industries."
v
7 7
position of 15,000 shares in Phil- ; broad
enough .-to
include
less
Charles Werly, Manager of Put¬
;lips Petroleum and bought 1,000 glamorous issues for awhile."
nam
Growth Stock Fund, which
"shares of Texaco.)
Among others making bullish reduced its common stock hold¬
Other buyers of the petroleums
predictions is the President of Na¬ ings from 93.7% to 88.7% during
included Group Securities Com¬
tional
Securities
&
Research, the year,: asserted; "This is the
mon
Stock
Fund, Aberdeen, T.
Henry J. Simonson: "Considering year we should probably exercise
D.
Moreau
aware
Prospectus from yOur dealer
mall coupon today to:
or
DAVID L. BAUSON-
j
MANAGEMENT CORP.
j
Dept. CFC-67
IS William
Street, New Yorlt 5
.
Please send Aberdeen Fund
Prospectus.
.
Name
,
Street
4
| City
State.
.
.
«,
•
!
^; Rowe
»'
J;",';
there is
ONE
only
Price;
vestors
heavily,
and,
Mutual
(buying
In-,
earnings and dividend trends, as
issues^ we estimate
them for 1960, we an¬
8
-/^'-and selling none),
ilj
On the other hand, sellers of
jv ; the oils included Tri-Continental,
'
ticipate that
common
should show
improvement, allow-,
stock prices
ing for the usual deviations from
eliminated its holdings of r
the
major upward trend."
His
Phillips.
A voice from the oil "
predictions- added up to an esti¬
; country, Texas Fund, sold 7 oil
mated 1960 range for the D.-J. In¬
.issues.
^
,• ' 7j' :
dustrial Average of 755-625.
the bullish
A voice in the
present electron¬
contingent
ics "wilderness" is Ralph E. Sam¬
Great optimism was voiced by
uel, President of Energy Fund:; which
mutual
.
;+
i
investment fund
*
-<
.
named
Anderson: Y*"*
-7
'
"During
FUND
7:3-pressed
\
||§
^
-
7
if
IT IS THE ONLY FUND CdNCtNTRATING
'I
i/j ufiTLi ENERGY FIELD THAT IS OFFERED p'2
IN THE
WITH
™.«neomu
NO
CHARGE
COMMISSION
OR
.
:
SELLING
OF
ANY KIND.
Shares
offered at net asset value.
Said Herbert R.; "Comments
Group Securities.
ENERGY
:
are
;
V'v-
the
7.
,
decline
•
we
.
7.*ex-
•
the
then,
that
the
general
If
-
■
-
oS and" pV electrKndS's utilities
other'activities
and
to
impact
of
| |' Shares:
7
'
-
Selected
'through'
■i-'M
Ii 7
Distributor
RALPH E. SAMUEL & CO.
Members N. Y. Stock Exchange
2
in
7
Broadway, New York 4, N. Y.
\
■
values
were
is
will
not
be
a
leading
party
radical,
nor
against free enterprise. Both
parties recognize the need for ac¬
celerated growth, lower tax rates
feasible,
workable
man-
rewarding in the
the
past.
.
,
believe
electronic
their
from
of
many
stocks
brilliant
have
dis¬
future!
It
judgment
of
be
that
field will
startling."
In the
van
of the
cautious
market
I
:
r
Farnham
&
low 3% and
Dlgby 4-5300
able
yield obtain¬
high-grade corporate and
on
bonds.
treasury
look forward to
"We
confidence
the
that
general
forded
that
we
is
yields
are
higher than they have•
been in the past
few
carefully
-
attention
our
25 years, and to
selected
valued
or
steady growth
possess
characteristics." .>
A
adherent to the bears is
new
deVegh
been
Mutual
reducing
Fund, which has
its stock holding
since the first of the year.
the
by equities
compare
ition
the
of
boom
seemed
earnings prospects for
1960."
popular issues
Split-elect "Nickel," which had
been runner-up to General Motors
very
in
without
grouos,
Sharing
time
were
securities
with
11
in
ments
fixed
income
"Looking beyond the next few
months there is
how
the
long
rent
reason
the
to
upward
will
economy
when
be.
the momentum
question
trend
of
sustained
the
of
thrust in output abates.
cur- -
and
should
diminish
year
credit
available
sumer
will
and
be
less
more
costly,
con¬
probably
The
general
credit
continue
to
buyers
these
and
3
leaders
,
stringency
depress hous¬
issues in disfavor
Leading
the
unpopular
-
(replacing*
Telephone's threeoccupancy
nrffrh).
most
-
Next
of
widely
Youngstown Sheet & Tube.
foreign
issues draw
mixed reaction
The impact of
influences upon
corporate earning power could be
quite pronounced. If the advance
The
levelling
activity is brought to
profits
would
probably
.
despite a persistent
price level."
:
rise
halt,
a
decline
in
the
sues,
.
enthusiasm
which
during
the
went into
the
at
at
an
over
all-time high and
times estimated
19
had
foreign is¬
generated
quarters,
considerable decline
South African
the
for
been
preceding
vear-end.
with
Sold
were
of
GROUP SECURITIES, INC.
gold mining issues',
of still-liked
State
Geduld;
British
Ford
Petroleum and Burmah Oil,
of
England, Bowaters, De Beers,.
of
Wales,
and
Rhone-(
Poulenc (such sales being for the
most part made by a single fund).
Liked
in
the
foreign
sector
were Philips'
Lamp, Royal Dutch,
Continued on page 23
Steel
mon
stocks
of
the
LIMITED
THB
A prospectus
investment
relating to the shares of
funds
may
any
of these separate
he obtained from authorized dealers
PUTNAM GROWTH
or
FUND
advertisement.
:fc
VANX i; SANDlUf S is.
Name.
Ill
Address.
.State.
DISTRIBUTORS GROUPrINC.
NEW
61
63 Wall Street,
New York 5, N. Y.
YORK
Broadway
COMPANY, INC.
Devonshire
Boston
City.
''Bosto
aviation-
electronics-electrical equip¬
ment industries is offered
by
this 25 year-old mutual fund.
Mail this
Qeorge
"A BALANCED FUND"
Canada General Fund
growth
possibilities of selected com¬
9,
Street
Prospectuses
CHICAGO
■
lio'-South
Emphasizing possible long-term Capital Growth
Mass.
UaSalie
LOS
Street-
lio
ANGELES
Putnam Fund
West.Seventh Street
60 CONGRESS
New York
Chicago
at
leading
exception
of
Equipment Shares
An investment in the
this
sold
during the quarter were General.
Telephone
&
Electronics ' and
PUTNAM FUND
Century; Shares Trust
issues
American Airlines
was
investment.
The
.
were
Motors, General Electric,'
Royal Dutch."
and
-Massacjmsetts
Investors Trust
•
more
sellers.!
General
ing and to inhibit the rise in busi¬
erages is
Electronics-Electrical
seller,,
a
once
»uarters-long
readily
spending for durable goods
be less vigorous
will
Ford
American
thus providing a re
straining influence upon activity
progresses,
Since
this
un-split du Pont,
buyers and nary
14
seller.
spot
The
the
as
sihgle
a
runner-up
still
Following
ventories will be built in the first;
half
the
high-flying
with.
extremely rapid rate at which in¬
sells
Aviation-
near
appeared also that the pre¬
ceding rise had reasonably fully
discounted ^ the
highly favorable
invest¬
available from
now
rf
.
"With
of the steel strike," said
deVegh, President, "the fru-'
end
Imre
booklet-
describes
a
common
stocks which appear either under¬
Growth Stock Fund
prospectus
his¬
to the short- and
bond market where'
more
medium-term
turns
"The stock,
market, as measured
by the Dow-Jones Industrial Av¬
Massachusetts Investors
direct
may
1960
in
unfavorably with the generous re¬
sachusetts Life Fund:
MINDED INVESTOR
market
high.
Under such cir-'
cumstances, therefore, it is likely
the third quarter "popularity
captured
first place
priced, both in relation to current contest,"
earnings and to those in prospect. during the fourth quarter. It was
In addition,: dividend yields
af¬ acquired by 12 fund managementappear
Desirability of stock - to - bond
switching is cited thus by Law¬
rence A.
Sykes, President of Mas¬
Boston Sfund
1960 with
recognizing, however
torically
Free
FOR THE GROWTH
considerably less than
better than 5%
the
-
Tel.
compares
during most of
previous boom period 1955,
1957. In addition, yields on
many
blue chip stocks are
slightly be-'
:
outlook, the stock
high.
Common
to be very fully
seems
stocks
in
con¬
tingent was, as previously, Milan
Fund:
immediate
these
sober views
Roe
which
times
the
"Perhaps influenced unduly by
the
ness
enterprises in
'
Stein
Balanced
the
age
caution
of
words
Harry H. Hagey, Jr., Presi¬
dent
should
our
...
earnings,
12-15
and it
7
:
,
from
that.:the ; elec¬
is just beginning, and
that earnings growth of many of
domi¬
is
in
don't
counted
tronic
nating factor in the stock market.
when
these
,
far
are
Indeed 'should
more
than
"We
American
.
Neither
future
this
and
far
prove
.
"Elections
SEND FOR FREE PROSPECTUS
Write Department
politics
of
-i' election year is the topic of the
fS' following from Edward P. Rubin,
II i. President
'
'
-phe
'
the
fields
energy
j
related
.
effect
through,'
were
old-fashioned
management
economy
'■
fuels; missiles and other^
the
view
that
'despite 1
going to count once more, that
corrections, the stock
realism ' had succeeded
imagina¬
market is in an uncompleted up-;
tion 7. in 7 appraising electronic
trend.'
The general stock mar- shares.
We had
all read .senti¬
ket averages have now recovered
ments of this sort from morning
virtually all of the ground lost
till night. But we do want to say
during the third quarter, and we
that in our view
the
electronic
expect this favorable price action
stocks that are featured by topto continue. It is our
•7, Energy Fund Is
energy
dime-a-dozen
a
s
'*
these
And
v
short-term
conclusion,
f-i
were
'the-street', to
that 'glamor stocks
that
|: I and stock market averages should
a mutual fund investing **'*
reach new highs during the corn¬
el for growth possibilities in electronics; 7?f • ing year."
•
around
restraint."
19 59
with
on
Request
Distributors, Inc.
STREET, BOSTON
Los Angeles
Washington
Orlando
Volume 191
Number 5922-... The Commercial and Financial Chronicle
Changes in Common
(577)
21
Stock Holdings of 67 Investment Management Groups
(October-December, 1959),'
Issues in which transactions
by more than
management group-occurred.- Issues which more managements sold than
bought are iu italics. Numerals in parentheses indicate number of
managements making* entirely new purchases or completely
eliminating the stock from their portfolios. (Purchases shown exclude' shares received through stock splits, stock dividends,
spxn-offs or mergers. Number of shares bought or sold prior to a stock split is expressed giving effect to the split.) ••
«,
one
Bought—
-Sold-
No. of
No. of
Mgts.
Shares^
i*
'
e
1
!
*
,
Agricultural Equipment
5,000
'Mgts.
'y?
1
38,100
4(1)
Bendix Aviation
1,325
2(2)
li;200 :
2
5,900
2
Gessna Aircraft
5,300
2,500.
9,875
2
;
4(1)
3
Marquardt
Martin
22,372
•
1(1)
None
United
2,000
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
4(1)
•;
.
;_
______________
2(1)
3
'
1(1)
Eastern Air Lines______________
Pan American World Airways—
2(1)
American
52,000
2,500
1 176,400
8(3)
108,600
24,433
mi
None
1
Airlines_
4
___
United Air Lines
—
(4)
M2P
1,500 :
20,000 !
14(2)
10(1)
Chrysler
68,600
42,035
7,120
4
-.
,
2(1)
30,000
__________
_
_
4
17,500 i
25,000
General Motors.__—i______
None
None
None
•
9,200
25,000
Thompson Ramo Wooldridge
Timken Roller Bearing
Champion Spark Plug___
Eaton Mfg. _____v_________
None
*
J
Id)
20,000!
5,000.
_______
Electric Autolite
1
_
-
^(2)
Norte
None
None
6,000
;
__
-
*
<
f(l)
2
Norte
-
2
26,912
10,800
11,300
2
15,000
2
__
30,000
1
__
i
_
_
*
3,100
FUND
2(1)
4(1)
__
Chemica Is' j
PIONEER
1(1)
Norte
7,800
J— J
2
_____
Spencer Chemical
3,200-
_—
___
"
INC.
Coal and Coke
Consolidation Coal
18,500
Norte
None.
i,
Pennsalt
1
4
»4.
None
Electric Storage Battery
__
Diamond Alkali
Cantainers*
2(1)
4(1)
American
21,000
45,900
Can
Continental
_.
Can
\
2(1)
.
None
A
mutual investment fund
offediig a diversified; managed investment in securities
selected for possible longterm growth and income.
"
Drug Products
None
•
"
1;
<■/*.■,:■:
;
5(2)
29,500
20,500
5(1)
5(2)
3(1)
4(2)
;■
4
'
2
None
1(1)
None
None
First Nat'l City Bank of N. Y.__
500
1(1)
None
None
Manufacturers Trust
None
None
Marine Midland Corp.____
Morgan Guaranty Trust.
National Bank of Detroit—
Non6
None
^
None'
A
'None
None
Security-First Nat'l Bk. of L. A.
None
i
\
■.
^
3(1)
1
_
_
_
—
_
_
_
_
_
_
_
_
_
_
...Beverages
14,800
32,600
4(1)
_■
2(1)
4,000
Lilly
(Eli)
Mead
None
National Distillers & Chemical, i
,
None
2
67 WALL ST.
N. Y. 5, H. Y.
•
4(2)
3(1)
2
4
11,700
Electrical Equipment and
v
*Norie-
"None
CocarCola
MANAGEMENT, INC.
'
•None
*
^_^2__
Pepsi-Cola
UrC.ola
2,000
•
13,400
51,000
1,500
Warner-Lambert
7,000
i
2
2
6,500
__
'
None
10,700
John
FUND RESEARCH AND
None
15,000
__
1
v
!
None
None
__
'
'
::
t(2h;
„
•""'= Electronics--;
r....''
.
-
;
Do: tlie
:
,
'
4(4)
8,800
1
2,500*
'
Investment
.'
'
nt
Building,. Construction and Equipment
1
10,000
1,000
24,000
20,600
4,000
,1
3(1)
2
I
1
■
>
3
2(1)
3
ss:
5
:
:
1
3(1)
4(3)
4(1)
1(1)
None
-
id)
None
American
7,400
:
,
-
Standard
_________ _
_
1
None-
Georgia Pacific
Ideal Cement
Jbhns-Manville
_
_
11,466
_______________
;•
2(2)
1 M-1
f I1)
:
v
1
750
-
'•
.
8,000; ;•
Nonie
None
None
None ;, "
None
1.(1);
None'
None
10,102
Otis Elevator _^__i____r_______^.
Penn-Dixie Cement _L^________
Robertson
'
17,000^
_
National Homes "B"i__
National Lead
;
15,'000;
None
General
21,300
Altec
Litton Industries
McGraw-Edison
_
_
_
_
_.
Phi-leo
None
None.
.__
None
/-'4s
34,500°'
._4
None
None'
4(1)
28,800
None
3,420;
ELECTRONICS
None
4,000
1(1)
None
91,000
TELEVISION^
None
.
None1
.
WHY NOT
INVESTIGATE
3(1)
92,356
37,400
10,100
30,000
interest Vout
None
None
_•—_—
ELECTRONICS
1(1).
None
Electronics—
Possibilities in
None
Continued
.
on
FUND, INC.
None
page
22
$&£
7,600
22,500'
i
w
.,1
14,000
>
:
2.
■
)
*
-
Wets arfl primarily
Invested for possi-
^ble long-term,
2d):
;
'■
.
jf ' A Mutual Invest|§; Theht Fund wUose,
2(2)"
1.(1)
18,000"
_______
U. S, Gypsum-—
None
l-
^
None
-
13,200'
3,900
Lone Star Cement.______
5,000
4(1)
None
None:
1,600 s riv-s-'
1(1)
20,000-
(H. H.)____________
_______i__!
.
.None
__v
None
"
Celotex
*-
•2(2)
3,200.
11,300
36,700
16,000
15,700
5,300
45,300
-Nobe
None.
Yale & Towne__^___^______^__^
Carrier
None
-A,;.
'
1(1).
*
None;.
12,900 ''Trane
4
28,000
U. S. Piywood_*____:__i________
7,400
10,000
•2(i)4(1)
2(1)
None
__i
2(1)
4
Missouri Portland Cement____i*_
National Gypsum1 ____"____
,
r
1
Lehigh Portland Cement___
i.
Minneapolis-Honeywell _r_-__^
640
9(1)
1(1)
•None
•*"
lOjOUU
_
_________________
\
,
10,000;;
7.
1ft ftAift-. '
_
\
H:.
:-- id);
20,000
^
General Portland Cement-_
7,300
11,300
8,100
4(1)
Cement
Crane
36,400
14,000
13,500
2,500
5,300
4,159
•2(1)
3(1)
2
American
growth of^ capi-,
-•
arkJincon^
laf
2,(2)
in
companies actively,
engaged in the Elec¬
2(1)
tronics field.
:
-
-
objectives of-! this "Fund
long-term
capital
and
growth ' for its1 shareholders..
'
.
Prospectus
upon
request
Chicago
Atlanta
Los
Angeles
-
«
'
4
-
-
Television Shares"
135 S. La Salle Sf.,
115
Chicago 3, III.
Broadway,jNew-York 6, N.Y..
C
Nationally, distributed through investment dealers by
Delaware Management Co:. Inc.
Lord, Abbett & Co.
New York
i.
possible
income
or
IVlahasement Corp.
'A Common Stock Investment Fund
Investment
Get thi Booklet-Prospectus ot this
Mutual Fund now from your invest-*
ment dealer
Fund
.are.
901
Market
Street
;
'
Prospectus upon request
from your investment dealer,
or
fromt; ■ •
j
1
None
______
__
,■
L
2
None
None
Schering
Searle (G. D.)_
None
1-
5(1)
None
__
None
•
1
42,500
29,800
None
_
1
300
—
RexaU Drug &
2,000
1,000
1
16,500
Merck
500
i
.
1,000
__
__
32,200
32,300
20,600
13,000
4,500
55,00.0
>
1
2,500
Firstamerica_
13,500
42,000
3(1),
None
°
American Home
200
.
2(1)
8(2)
4(2)
4(1)
3(1)
3(2)
2(1)
None
1,000
Hanover Bank
17,200
15,450
12,100
25,249
12,750
None
'*
_________
6,000
2(2)
'-'7-
Bankers Trust
Chase Manhattan
Chemical Bank New York Trust
22,500
18,500
5(2)
2(1)
>••
Banks
Street
17, N. Y.
1(1)
None"
-—-
42nd
2
,5,000
_ _ _ _ _
-Carbon-1__
Columbian
320
•.
Smith (A..O.)
3(2)
None
None
1
v
Wyandotte Chemicals *
____________
East
NATIONAL DISTRIBUTOR
-
:
5,000
U.S. Borax &.Chemical—
8,100 *
1
;
1
Nohe>
United Carbon
None
-
White Motor
1,600
19,000
3,200
4,318 *
3(1)
—
New York
•A
78,783
7,500.
'
1
None ;
1
v
Thiokol Chemical
Union Carbide
2(2)
3(1)
Mack Trucks
14,200
2
____________
6,000.
2'• 1
__
Ford
2(1)
2(2)
& Haas
60
2(1)
887
Stauf f er Chemical
1,535
1(1)
12,500:
.__
Automotive Equipment
,
Rohm
____________
18,800
American Motors
149,000
Rayonier
—
of America
None
78,500
2,800.
5,860
1,000
> 1,200
& Chemicals
Monsanto Chemical
Olin Mathieson
Kl)
3(1)
None
.'
^
INVESTORS PLANNING CORP.
None
None
_______—
Chemical.
Prospectus and Uteratur*
(torn
1
1.
31,800
33,100
Machinery & Chemical—
jnternat'l Minerals
5,340
Automotive
1(1)
2(1)
Hooker
\
50
——-
Freeport Sulphur
.
Northwest Airlines^—
400
I-
KD
(DM
Bayer
Hercules Powder
2,000,
1Q,643
29,000
31,570
2,207
115,400
41
Nbne
2,000;
____________
32,000
,
3
5(2)
,Kpd?ik
equivalent)
Food
1
None
Farbenfabriken
or
ua
None
2,850
——
8,400
27,500;
16,900
2(1)
14,100
12,300
58,000
;
2,000
Kl)
Eastnaan
,
2,575
2,000
KD
None
Dow Chemical-
2
INone
duPont
35,200
32,760
»
-3(2).
4(2)-
.Airlines
2
67,437
1
None
5,400;
1,500
2,500
J
Powder —v——i'—
27,400
7(2)-
4,650
None
_
Allied Chemical
2,400
Mgts:
j
y
American Cyanamid
American Potash & Chemical-
.
=.
1
*
,
52,100;
Atlas
For Income
No. oi
* Shares'
>
—
Air Heductiori,
Aircraft47,000
North American Aviation______
11,500
1
•1,300
,42£75
;
^
_
1(1)
t
18,900
30,700
7,;;.
3(2)
.None
2,000
5,000
______
_ _ _ _
•'
,
Air Products
vV. 8,300;
4(1)
None
None
:
_
____________________
___
Grumman
-
None
_
Gurtiss-W right
None
3
_
General Dynamics
Lockheed
_^
_
3/
:
_p,
f
i..
500
.
^6(4);
Aircraft and Aircraft Equipment
3
No, of
Chemicals and Fertilizer
82,074
"
1
„
Sold-
f
Mjgts."' -'Shares'-
•
\ "
International Harvester
7T:
.
.
No.of
-
Deere
9>500
»
*
r
No:of
No. of
Shares
.
•'is
—Bought—
No. of
*
t
Wilmington 1,Delaware
-Name
-
•
—
'Address.
Cify-Slate.
22
(578)
Financial Chronicle
Commercial and
jfie
Continued from page 21
. . .
Thursday, February 4, 1960
S old—-—
—Bought—
No. of
No. of
—Bought—
No. of
:
;•
u
■Sold
No. of
No. off
Shares
Shares
,
38,500 *
Westinghouse Electric
None
2
7,975
4
10,500
1
2,000
2(1)
2
investing
1
diversified group of secu¬
a
rities
American Metal
2(2)
2(1)
2
2(1)
25,500
2,092
3,800
American Smelting & Refining-.
Beryllium Corp.
—---^~
V
5
2(1)
Commercial Credit
Heller (Walter E.)—_
Household Finance
Talcott
500
(James)
~
None
None
None
&;.T
14,500
8,000
Arkansas Louisiana
Hugoton Production
None
3
tfeeen
2
2(2)
6,800
4(2)
11,000
Corn
A.
BAILEY
TITLE
LAND
BLDG.,
&
PHILA.
3(1).
41,300
15,400
General Foods
Kellogg
CO.
10,
2(1)
7,000
2(1)
PA.
„_
1
900
None
4
137,075
Tennessee
Gas Transmission
2(2).
3
Texas Gas
Transmission.—i__None
None
5(1)
,8,860
24,700
1
3
1
1
1
2
Armour
None
21,500
2
None
None
None
Products
Standard Brands
24,000
None
19,600
United Fruit
40,400
2(2)
Pioneer Natural
Gerber
American
Gobain
7(1),
1(1)
800
KD
4,300
2(1)
7(2)
25,100
4(2)
6
33,812
5
13,800
516
3(1)
8,700
6(1)
16,200
2
Owens-Corning Fiberglas
5,000
1
5(2)
3,000
16,700
Owens-Illinois Glass
1,800
1
2
5
67,320
Pittsburgh Plate Glass
2(1)
6(1)
39,300
1
9(1)
53,400
For Investors
Seeking Long Term
GROWTH POSSIBILITIES
1
Corning Glass Works
Libbey-Owens-Ford
2,000
St.
Gobain
Insurance
700
chemical science.
F.
roqvesf bom your doalor,
EBERSTADT
or
&
Fire &
—
1,000
_
Maryland Casualty
10,500
U. S.
200
Insurance
—
Aetna Life
64,600
Transamerica
21,036
„„
Socony Mobil Oil.
12,732
Sunray
18,864
Texaco
2(1)
43,900
None
4(1)
Machinery, Machine Tools
1
and
24,900
2
ORGANIZED
IN
1,100
2
14,000
1
1924
mmmmmmmm
3,400
1
2
A MUTUAL FUND
Wisconsin
Fund, Inc. has
1
di-
a
selected for
term
1,500
23,900
Y
••
dealer
from
or
your
5,000
Joy
Edgar, Ricker & Co.
31,800
Reynolds Metals
1
1,500
U.
17,500
3(2)
Cerro
5,800
2(2).
3(2)
27,000
3(1)
3(1)
14,500
20,900
10,105
18,500
2(1)
9,000
None
None
de
v
4(1)
5(1)
20,900
„
11,270
3(2)
6,000
None
Pasco
_
Union
Warren
Phelps Dodge
Revere Copper & Brass
Magma Copper
_
1(1)
1
1,135
None
2
26,000
2(2)
1
19,900
42,200
_
30,500
_
11(3)
1
353,496
6(1)
2(2)
4,500
__
1
Metals and Mining
—
Gold
i
>•
i>
1
10,000
Dome Mines
3(2)
10,000
2(1)
O
%. 4,
10,500
Giant Yellowknife Gold Mines.
Homestake Mining __Y_.
KD
1
'•
None
None
None
5
3
Metals and Mining—Nickel
20,000
2,000
36,700
5,300
1
:
2(1)
r
2(1)
;
12(2)
•\
v
investing
*'
_
1
•
^
'
•
•
-
;
MUTUAL FUND; Inc.
«
r
.
-
INDUSTRY, INC.
Thirtieth
Washington
Address
Telephone
Street,
1,
D.
N.
fully-managed mutual
8(2)
'
1
2(1)
15,000:
Bag-Camp Paper.—.
■.
12,000"
90,440
:
1(1)
None:
None
(S. D.)
None
None
? ~•'*
None
1,500
None
Louisville Gas.&
Montana Power.
New York State
—
—
None
1
None
4,000
KD
2,000
—_
2
140
1
5,800
—
2
10,000
—
5,000
••
None
4,100
—
Electric^ZICI>
16,800
Electric & Gas
1(1)
l '
l
•
l
l(l)
None
1-
•:,
None
Nohe
None
ture available
common
on
Broad
GENERAL
KELLER BROTHERS
Prospectuses and litera¬
CO., INC.
request.
BLUE RIDGE
67
stocks.
MUTUAL SECURITIES FUND OF BOSTON
DISTRIBUTORS
Prospectus
Request
On
ASSOCIATES, Inc.
Street, New York 4, N. Y.
WH
4-3470
ZERO
COURT STREET
TELEPHONE,RICHMOND.
g-253<i^
BOSTON
^.
:
None
-
—
>
fund
policy is to seek possible long-term growth of
investments in
,»
___
whose
a
.
capital and income for its shareholders
largely through
W.
C.
1.
None
2
7 None
-------
BLUE RIDGE
SHARES IN AMERICAN
1033
None
-
:
l
l
I
capital
and income;
v-■
__________
1
•)
•
American securities
;
International Nickel
'16,700
:.
KD
480
Florida Power
J——_j__—j;
3,000
Florida Power &
Light
—3,000
General Public
Utilities—18,800:
Houston Lighting & Power.——
4,500
Idaho Power
None^
8,000
1
Falconbridge Nickel':
in selected
for possible
growth of
"'
.52,400
44,900
'
2
5,270
—
A diversified mutual fund
•
v
1(1)
2(1)
7,000
Consumers Power
Empire District Electric.-
10,400
-
4,100 ".
Commonwealth Edison. —___—J
10,300
:
29,600
—
City Electric
Baltimore Gas & Electric
Central & South West-.
'
;
3,000
None
——
Atlantic
686;
2(1)
2(1)
't
Kiii'
:#Z.
3(2)
3(2)
:.
American Electric Power..
Arizona Public Service
100,800
*
★
2(1}
3,460
8,500
102,000
•1?ublic Utilities---Electric
and Gas
4(3)
None
_
2(2)
.
—„
17,500
:■
.
Mead
21,100
None
—
Oxford Paper——.
25,200"
-•
24,400
_
>'
2(2)
29,750
St. Regis Paper
Scott Paper
5,900
Noranda
,
28,160
4
'•>.
Copper
Yr
2(2)
2
2(1)
,
Kimberly-Clark
9,900-
2(1)
___
2
6,400
42,600
Fibreboard Paper Products—.—
International Paper_____L______
1(1)
-2(1)
•
—
Crown Zellerbach.
5,000
.5(2)
:
Champion Paper & Fibre—.
Container Corp. of America——
2
None
5,300:
Paper and Paper Products
;
:
i
3(1)
None
Kennecott Copper
15,220
3
^
Anaconda
28,500
2(1)
0$
20,500
2
6(1);
S. Foil "B"..
Metals and Mining
4
//v
V
3
•
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None
6(3)
None
1,700
Pechiney Cie. (France)
6(2)
2(1)
.
.
None
13,000
Aluminum Co. of America
.1,000
None
2 .>.7,
49,800
3,000
DISTRIBUTOR
SHARES
11(1)
None
Aluminium Ltd.
8,750
6(1)
^
None
Skelly Oil
Superior Oil: (California)_
Union Oil & Gas of La
,None
2(1)
4(1)
16,000
Pure Oil
1(1)
4(3)
10,200
4,000
33,500
2(1)
Michigan Street
Milwaukee % Wisconsin
Oil
Oil..
5,100
None
;___
Mfg......
2
207 lost
Ohio
—___2
11
v:
43,000
Kewanee
600
*
—
11
25,000
Metals and Mining—Aluminum
5(2)
;
293,900
8,700
10,300
_____
KD
KD
KD
3,500
Bucyrus-Erie...
2(2)
None
11
55,700
15,800
.____
Honolulu Oil
None
;
None
None
3,500 :
J
_
Machinery
Warner & Swasey——
Worthington
investment
write:
GENERAL
2
4,500
2(1)
KD
None
__Y
None
income. Prospectus may be ob¬
tained
39,200 :
Cities Service
2
3(1)
Refining
None
:1
None
7,200:
_
7,400
2
!
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Tool
Sunstrand Machine Tool
United Shoe
20,000
None
growth of capital and
None
Ingersoll-Rand
2,100
3
possibility of long-
*
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Cooper-Bessemer
Ex-Cell-O
.
Atlantic
British Petroleum
KD
KD
2(1)
12,000
None
Amerada Petroleum
3,000
1
1(1)
77,000
'
None
Wilcox
Caterpillar Tractor
Chicago Pneumatic
500
2(1)
2(2)
versified portfolio of securities
-
Babcock &
Mid-Continent
None
None
Oil——
(Ohio)
rNone
Industrial Equipment
4(3)
12,300
.
1
Texas Gulf Producing
Texas Natural Gasoline
3,280
Oil
1
4(1)
6,000
30,600
Standard
.
Kl)
61,800
3,200
37,020
Standard Oil (N. J.)__
4,300
2
1
'
Standard Oil (Ind.)
13(1)
2(1)
None
13,100
69,800
1(1)
3 "
r*T£r: ■ •
3
1,300
300
+.—
7
•
10,334
2(1)
4(3)
2(2)
3(1)
2(2)
;7.77 77?
V7
6(1)
1
t
1
None
3,400
3,000
Barber Oil
Continental Oil
4
1
Life, etc.
4,305
—
16,730
1(1)
3,600
—
Gas
—-
33,500
1(1)
5,000
Fidelity & Guaranty
10,400
Gulf Oil
89,479
Louisiana Land & Exploration.. -None
Monterey Oil
' 10,600
Phillips Petroleum
54,200
Royal Dutch Petroleum
10,000
Shamrock Oil & Gas
—6,000
Shell Oil—
41,000
Signal Oil & Gas
77,696
Sinclair Oil
7,500
25,760
-
3
None
14,800
Travelers
54,700
•
Broadway, New York 6, N. Y.
4(1)
None
:
,
1,000
4
Continental Insurance
Hartford Fire
6,900
j
INC.,
Manager and Distributor of Chemical Fund, Inc.
65
__
Casualty
1,350
moil coupon fc»Jo*r #0e
CO.
40,700
(France).
companies in many industries which are active ia
upon
—25,200
1
This Mutual Fund seeks possible growth of capital
and income by investing in a diversified fist of
PratpUdui
___
9,200
Line...
IBM
—
National Cash Register...
9,500
24,257
17,000
_
Gas
1
Office Equipment
Oil
American-St.
14,900
53,310
—1
Southern Natural
None
610
Natural Gas
Panhandle Eastern Pipe
Glass
■
Gas
Interstate
Colorado
2(1)
4,000
Gas
United
3(3)
2(1)
None
Mississippi River Fuel
Northern Natural Gas
3,330
8,000
7,300
None
1,000
None
None
1
1
2(1)
6,200
Wilson
2,000
KD
1(1):
None
___
Swift
48,200
1
10,200
8,500
11,400
200
10,200
49,300
16,200
41,900
National Biscuit
1,400
3
2(1)
None
None
Products
i\ut-Life Savors
1(1)
HD '
2(1).
2(2)
3,500
None
.
8,000
15,300
None
None
-.'V;
Gas
Natural Gas.
El Paso
3
2(1)
3
GEORGE
3,500
Natural Gas
1(1)
None
Food Products
Send for FREE Prospectus from your
Investment Dealer or
33,200
1
/ v;
None
1(1)
2(1)
of capital and
income. Free of Pennsylvania
Personal Property Tax.
21,400
12,900
-
None
None
.
None
None
Ventures Ltd.
Algom Uranium
-Consolidated Denison Mines—..
None
None
Associates Investment...
growth
Vanadium
500
1,000
None
1,500
300
—
None '
Hanna Mining
None
selected for possible long
term
845
10,000
None
-
9,800
Climax---r,--r-
1
1(1);
C. I. T. Financial
*JV(gts.
Mining —Other
and
Metals
Mgts.
5(2)"
7,000
6,900
Beneficial Finance
7,100
18,450
13,200
2
A MUTUAL FUND
Mgts. v Shares
No. of
Finance Companies, etc.
$30
or more.
in
■
1(1)
%MJ
ically accumulated in
amounts of
Consolidated Electrodynamics.
International Tel. & Tel
Texas Instruments...
2,000
1,800
Shares may be systemat-
12,900
12,700
—
*
1
No. of
Shares
No. of
9, MASS.
,TEEkTYP£s BS 630
'
Volume 191
Number 5922
.
.
.
PICTORIAL
The Commercial and Financial Chronicle
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SECURITY TRADERS ASSOCIATION
OF CHICAGO, INC
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ANNUAL MIDWINTER
At The Ambassador West
DINNER
January 25,1960
C
President
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Leonard Friedman
John D.
Kipp
Walter E. Cooney
Boettcher and
Company
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Incorporated
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Kidder, Peabody
i4. C. Becker A Co.,
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PICTORIAL
The Commercial
and Financial
Chronicle
.
.
Thursday, February 4, 1960
.
I
Norman
H.
P.
Lester
J.
Nagel, Sincere and Company; Samuel Sachnoff, First National Bank of
Chicago;
Brien, Sincere and Company; Raymond W. Hillstrom, Stein Roe & Farnham;
Tom Drisccll, Sincere and
Company
Edwin
O
Thorsen,
Leonard
Glore,
Forgan
&
Co.;
Ed
Kelly,
Carl
M.
Loeb,
Rhoades
&
Co.
Friedman, Boettcher and Company; Charles Scheuer, Wm. H. Tegtmeyer
if it's
a
matter
(New
J.
York);
& Co.
Tegtmeyer, Wm. H. Tegtmeyer & Co.; Charles Scheuer, Wm. H. Tegtmeyer & Co.; William
McGregor, Wm. H. Tegtmeyer & Co.; Joseph E. Hart, Wm. H. Tegtmeyer & Co.; Bill Kougias,
Wm. H. Tegtmeyer & Co.; Don Craig, Wm. H. Tegtmeyer & Co.
Wm. H.
William
Tom
Creamer, Schirmer, Atherton & Co. (Boston); Edward H. Welch, Sincere and Company;
Driscoll, Sincere and Company; Leslie Barbier, G. A. Saxton & Co., Inc. (New York);
Martin L. Magee, H. M. Byllesby and
Company, Incorporated
of
When you have
a
question involv¬
ing tax-free Public Bonds
you can
profit from Nuveen's specialized
knowledge. Over sixty years of
experience and nation-wide
contacts enable
us
to
provide...
"^T
Close markets and
prompt
quotations on all tax-free
Public Bonds.
★ Underwriting skills that
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■
in¬
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problems
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public finance.
★ Up-to-the-minute
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Your inquiries
on
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request.
invited.
Chicago
New York
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Boston
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■
Detroit
Los
Tax-Free Public Bonds
Exclusively Since 1898
Angeles
Omaha
Seattle
St. Paul
"""
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Volume 191
!
,
:
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>■
•
Number 5922
'
.
.
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The Commercial and Financial Chronicle
.
'i<
PICTORIAL
3
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Robert
Leonard Friedman, Boettcher and
Company; J, F. Bickmore, Boettcher and Company; John P. Donovan,
Boettcher and Company; Wm.
Armstrong, Boettcher and Company
Charles
&
Thompson M. Wakeley, A. C. Allyn and Company, Incorporated; Vernon O. Larson, A. C. Allyn and
Company, Incorporated; Gerald L. Lewis, A. C. Allyn and Company, Incorporated;
Donald J. Guild, A. C. Allyn and Company,
Incorporated
D. Diehl,
Paine, Webber, Jackson <ft Curtis (Los Angeles); Walter
Cooney, Kidder, Peabody <fi Co.; Ralph Dahl, Evans MacCormack
& Co. (Los Angeles)
A.
.
o.
MEMBERS
New York Stock Exchange
Midwest Stock
Exchange
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Joe
Krasowich, Gregory & Sons (New York); Milton J. Isaacs, Straus, Blosser & McDowell; John P.
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cun
and "
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Complete Jwi&sttyenJ: Service4
UNDERWRITERS
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Members New York Stock Exchange, Midwest Stock Exchange,
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Volume 191
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Robert
W.
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&
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Incorporated
(Milwaukee)
Doyle, O'Connor & Co.; George W. Smith, Link, Gorman, Peck
A, Freeman, Television Shares Management Corporation
to
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F
•
5
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suit every
need
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Harris, Upham & Co.
Securities of the United States
The
Government and its Agencies
State, Municipal, Revenue and Housing
FIRST BOSTON
Securities
Bonds, Preferred and Common Stocks
of
CORPORATION
Industrial, Public Utility and
Railroad
Corporations
Bank Stocks
1
15 Broad St.
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Casualty, Fire and Life Insurance
Boston
•
NEW YORK 5
Pittsburgh
•
Chicago
DIgby 4-1515
,
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Company Stocks
Cleveland
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Bankers'
Acceptances
Securities of the International Bank for
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Canadian Securities
External Dollar Securities
Russ
Sparks, Barret, Fitch, North & Co., Incorporated (Kansas City, Mo.);
Barney Nieman, Carl Marks & Co., Inc. (New York); Dick O'Neil,
Fairman & Co. (Los Angeles)
,
^Underwriter
j
QjiAtrihutor
Q)ea/er
i
■SnvMtment
tyecuiUtiei
6
PICTORIAL
The Commercial and
Financial Chronicle
.
.
.
Thursday, February 4, 1960
j3o&on77ffirppte & Go.
r-
Investment Securities
"'if
&-■'
....
members
'■'
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new
york
stock
midwest stock
exchange
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exchange
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stock
exchange
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&
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UNDERWRITERS AND DISTRIBUTORS
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PRIVATE FINANCING
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David
J.
Burke,
Blunt
Westheimer
135 South LaSalle Street
1
Chicago 3
Ellis & Simmons; Paul Bax, First Boston Corporation; Harry Hudepohl,
Company (Cincinnati); George D. Parise, Shearson, Hammtll & Co.;
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For
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Boettcher
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other
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Newhard, Cook & Co. (St. Louis); Kenneth Kerr, Fusz-Schmelzle <ft Co.,
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Stifel, Nicolaus and Company, Incorporated (St. Louis)
-
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denver
junction
•
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colorado
springs
pueblo
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&
Cummings, Bear, Stearns & Co.; Bob Williams, Weeden &
Co.; Roy Dixon, Goldman, Sachs
Co.; Howard S. Levine, Dempsey-Tegeler & Co.;
Raymond C. Wauchop, Doyle, O'Connor & Co.
1930
i960
'"
h. m.
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Byllesby and Company
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(Incorporated)
TRADING
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MARKETS
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of
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AMERICAN STOCK EXCHANGE (ASSOC.)
Street,
•
Walsh,
(St. Louis);
Company
and
MEMBERS NEW YORK STOCK EXCHANGE
Ricbard
Washington, D. C.
...for
you
Security Dealers Association
Street, New York 5, N. Y.
Teletype
Telephone
NY 1-1126 & 1127
Direct private wires
.
to
Los
HAnover 24850
Angeles, California; Denver, Colorado;
Dallas, Texas
<bt<ui,
Volume 191
Number 5922
.
.
<rt"
.
,*.\
imtmmmmmmtiiMiKXirJ
JjJTii
OFFICERS
President
ELECT
—
T reasurer
V ice-President
^
Theodore E. Wouk
Reynolds & Co..
Tegtmeyer
'
Glen J. Thoma
First National Bank
George F. Hummel
Charles G. Scheuer
7
1960-1961
r
Wm. H.
!' * '/?!'■' .*•
»3 *,
PICTORIAL
The Commercial and Financial Chronicle
.
««,
Harris, Upham <ft Co.
of Chicago
& Co.
DIRECTORS
mm
Leonard Friedman
Adolph C. Egner
J. P. O'Rourke, Jr.
Morey D. Sachnoff
James H. Scott
Boettcher and
Shearson, Hammill
J. P. O'Rourke & Co.
Cook Investment Co.
Blyth <ft Co., Inc.
Company
& Co.
SERVICING
V
•'
BROKERS AND DEALERS
7'
SINCE 1878
Listed & Unlisted Securities
Underwriters—Brokers
Straus, Blosser & McDowell
MEMBERS NEW YORK
DETROIT
39
STOCK EXCHANGE
EXCHANGE
STOCK
•
•
MIDWEST STOCK EXCHANGE
AMERICAN STOCK
EXCHANGE (ASSOC.)
ASIEL & CO.
SOUTH LA SALLE STREET
.-■a*'
Members New York
CHICAGO 3, ILLINOIS
<
NEW
Members
YORK
DETROIT
KANSAS
CITY
TELEPHONE
ANdover 3-5700
TELETYPE
CG
Stock Exchange
Stock
Exchange
MILWAUKEE
GRAND RAPIDS
MT. CLEMENS
20
BROAD STREET
NEW YORK
5, N. Y.
650
Telephone HAnover 2-5000
Retail
American
Trading
Teletype NY 1-1110 & NY 1-1111
■
■-
8
PICTORIAL
The Commercial and Financial
Chronicle
.
.
.
Thursday, February 4, 1960
UNDERWRITERS
MEMBERS
Midwest
Stock
DISTRIBUTORS
Exchange
CORPORATE AND MUNICIPAL BONDS
INVESTMENT STOCKS
'
MULLANEY, WELLS & COMPANY
135 S. LA SALLE ST.
Si
Wm.
i
J. Gratza, Westheimer and Company; Jerry Schoettler, Wayne Hummer &
Hornblower & Weeks; Chapin N. Wright, Stifel, Ntcolaus & Company,
Co.; Louis Holmes,
Incorporated
CHICAGO
FRanklin
3
■
TWX—GG
2-1166
mm
1110
mmmmmam
Underwriters and Distributors
Corporate
and
Municipal Securities
♦
/
Specialists in
Arthur
Rights and "When Issued" Securities
MC
"**
E.
Farrell, James J. McNulty & Company; Lawrence N. Marr, A. G. Becker
&
Incorporated; Chris J. Newpart, Merrill Lynch, Pierce, Fenner & Smith Incorporated;
Orville H. Strong, First National Bank of
Chicago
Co.,
T)ONNELL &
A
INCORPORATED
Established 1905
Members
New York Stock
Exchange—American Stock Exchange
}
208
So.
LaSalle
St., Chicago 4
DEarborn 2-6933
New York
—
Detroit
—
San Francisco
—
Los Angeles
Duke
Call
Hunter, Wellington Hunter Associates
(Jersey City, N. J.)» Tyrus R. Davis, Bankers Bond
Co., Inc. (Louisville, Ky.); Thomas
Graham, Bankers Bond Co., Inc. (Louisville,
Ky.);
G. Fabian
Brewer, William Blair & Company
Fl 6-2900
in
w
if
Chicago
Paine, Webber,
Jackson & Curtis
UNDERWRITERS
•
DEALERS
MEMBERS NEW YORK STOCK EXCHANGE
AND OTHER PRINCIPAL STOCK AND
COMMODITY EXCHANGES
44
OFFICES
xa
K
IN
40
CITIES
JvTn
4
Company,Incorporate
fst.
..
trrr
Loul.); Ralph
J
,
---fff
b.hn,
cian.
'
*
*"
*i#rt| r;
m
Voiume 191
Tcpol,
Bob
Brothers
Greene
(New
and
Number 5922
,
.
.
The Commercial and Financial Chronicle
PICTORIAL
9
Company
York);
(New York); Robert! Rosenbaum, Lehman
William Gregory, Gregory & Sons (New York);
Edward F. Hoban, McMahon & Hoban, Inc.
William D. Goodman, Freehling,
Buehler, Chicago
Frank J.
J.
Wm.
Title <&
Meyerhoff & Co.; Henry P. Meyers, Goldman, Sachs <ft Co.; Henry M.
Trust Co.; Wm. E. James, William Blair & Company (Chicago);
Irving Clarke, Swift and Company
(New York); Gary A. Galdun,
Erb, Green, Erb & Co., Inc.
Jr., Peters, Writer & Christensen, Inc. (Denver)
Ronan, New York Hanseatic Corporation
& Co., Inc. (Cleveland); Robert
Mericka
(Cleveland);
Gerald P. Peters,
Harry Williams, Quail & Co., Inc. (Davenport, Iowa); Homer J. Bateman, Pacific Northwest Company
(Seattle); Jerome Marquardt, William A. Fuller & Co.; Walter C. Gorey,
Walter C. Gorey Co. (San Francisco)
1 ■
.
Service
•
Allen
L.
Oliver,
Corporation
\
j
.
*
v
.
Basic analysis
•
*
Market facilities
•
.
Singer, Bean & Mackie, inc.
& Company (Dallas); Rubin Hardy, First Boston
(Philadelphia); Harry J. Niemeyer, Robert Garrett «ft Sons
Jr., Sanders
(Baltimore, Md.)
40
New York 5, N. Y.
Exchange Place
NY 1-1825 & 1-4844
HAnover 2-9000
FIRM TRADING MARKETS
IN OVER 450 STOCKS
Direct Wires to
Burton J. Vincent & Co.
Cleveland
Evans
MacCormack
Los
>
Angeles
Stifel, Nicolaus & Co.
St. Louis
-
Maurice Hart, New York Hanseatic Corporation
Don Sherwood, Reynolds & Co.
(New York);
Dallas Rupe & Son, Inc.
Saunders, Stiver & Co.
Chicago
& Co.
^
- —*
Dallas
Stone & Youngberg
San Francisco
Warner, Jennings, Mandel & Longstreth
Philadelphia
1
,IMI
vx:
V' 4 i ..iif
V
M
t1,1.
!
>
*
'
i*
V"i.14.
i
*
^f,W|in#wasiHiiMw
i
uAwuU'.mWA-ulii."!
-i i ui
ilxJtUitaVn-JJW«u U
V
10
PICTORIAL
The Commercial and
Financial Chronicle
,
.
.
Thursday, February 4, I960
1
J*
.
We have
v
\;
interest in:
an
N&y
*
/
.
..
.
,
(. '*
|l.
AMERICAN DRUGGISTS INS.
1
y
■
''
J
,
NORTHEASTERN INSURANCE
AMERICAN MOTORISTS INS.
NORTHERN LIFE INSURANCE
CENTRAL STANDARD LIFE
ROCKFORD LIFE INSURANCE
FARMERS UNDERWRITERS ASSN.
SECURED INSURANCE
KNIGHTS LIFE INSURANCE CO.
UNITED INSURANCE
NATIONAL RESERVE LIFE INS.
WASHINGTON NATIONAL INS.
NORTH AMERICAN LIFE
WOLVERINE INSURANCE
■
f**
f
'
.
.
i
■
Cariwright, Valieau & Co.
Members Midwest Stock
■
;
Board of Trade
•
Exchange
*;•
Robert
*
•
F.
Boedeker, Dean Witter & Co.; Thomas Mullins, Dean Witter & Co. (New York);
Strauss, Hayden, Stone & Co.; Dick Murray, May & Gannon, Inc. (Boston)
Arthur Burian, Hayden, Stone & Co.
Building, Chicago 4, Illinois
Telephone WAbash 2-2535
Teletype CG 1475
Wv.
.
'
4
Robert
ppP$P> %X ,0
'
s
>'$
^
^
v
;
:
••
•
>
'
•
..
.
■■."i;,
•-
y vy;:
's
'
•
yf.vWV^'*
•
•
s
;>
1
■
1
.
.
1
VV'Ay
'
'•
r
-
BROKERS and DEALERS
«v':
•;. '
v'-?- ?'*or- '•
.
,
:
yy
v
•«..•■!;■
„
•
.
.
£
•
'
■
.
With Own Private Wires to
,."S X~/' '
'//
;
*'
•
John Wasserman, Asiel & Co. (New York); Bud
Barth, Dempsey-Tegeler & Co.;
Haas & Co. (New York); Roy S. Reed, The Marshall I
S.
TJie^Marshall Company (Milwaukee);
"*
;
•
•
'
•
~
Los Angeles, Cal.
i" *"•
..
■
/
'
•<
.
St.
'
•;
*
;
*\
Paul* Minn.
■
•*"
•.
Madison, Wis.
'•
'
K-
Gregory <£ Sons
-■
Reg Knapp, G. C*
Jim H. Sheils,
(New
V
Milwaukee, Wis.
William A. Fuller & Co.
Members of Midwest Stock Exchange
209
S. LA SALLE ST.
CHICAGO 4
Tel. DEurborn 2-5600
Teletype CG 146-147
James-
FIRM
MARKETS MAINTAINED
SOUTHERN
CALIFORNIA
CORPORATE
SECURITIES
Direct Wire
to
SINGER, BEAN & MACKIE, INC.,
Connecting Wires
Burton J. Vincent & Co.,
Dallas
IN
Moriarity, W. E
Hutton
&
Co.
(Cincinnati); John N. Fuerbacher, Walter, Woody
Heimerdinger (Cincinnati); John P. Pollick, Cook Investment
Co.; Thomas Euper.
Revel Miller &
Co., Inc. (Los Angeles)
NEW YORK
to
Chicago
Rupe & Sons, Inc., Dallas
Stifel, Nicolaus & Company, Incorporated, St. Louis
Saunders, Stiver & Co., Cleveland
Reynolds & Co., Philadelphia
EVANS Mac CORMACK & CO.
Member Pacific Coast Stock
453
South
Spring
MAdison 7-4191
Street
Exchange
Los Angeles
Teletype LA 456
13, Calif.
or LA
24
Elmer
W.
Hammell,
Leason, Jr.,
First Securities Company of Chicaao'
4 Co., /nr.,
Whit."
Gp*™
r
„
*
r*
r
1
W/.S i Company (S°!°Lofu, Mo.)"' '"
&
Volume
191
Number
5922
.
.
.
PICTORIAL
The Commercial and Financial Chronicle
Herbert
Hugh Schhcting, Wm. P. Harper & Son & Co. (Seattle); Morey D. Sachnoff, Cook Investment Co.;
Eldridge Robinson, Dempsey-Tegeler & Co.; Floyd D. Cerf, Jr., Floyd D. Cerf, Jr. Company,
Incorporated; Elmer W. Erzberger, Smith, Burris & Co.
Scotty Keith, Schneider, Bernet & Hickman, Inc. (Dallas); D. Raymond Kenney, D.
& Co. (New York); John D. Kipp, A. G. Becker & Co., Incorporated; Leonard
A. G. Becker & Co., Incorporated
We
the
are
John
F.
J. Burke, Cruttenden, Podesta <fi Co.; M'ike Kraft, Oscar F. Kraft & Co. (Los Angeles);
McLaughlin, McLaughlin, Kaufman & Co. (New York): Stanley Dawson-Smith, Cruttenden,
& Co. (New York); Jim Fraser, Stern, Frank, Meyer <fi Fox (Los
Angeles);
Ernest A. Mayer, Cruttenden, Podesta & Co.
Podesta
H. Cooley, Television Shares Management Corporation; John J. Colnitis, A.
Levering Cartwright, Cartwright, Valleau & Co.; Harry O. Valleau, Cartwright,
William Chorn, Television Shares Management Corporation
William
Ra
> :d Kenney
J. W-?lf, Jr.,
A. Harmet & Co.}
Valleau & Co.;
pleased to announce
following organizational changes,
effective
January 1, I960
Doyle O'Connor & Co,
CARL G. COFFEY
Assistant
formerly of
is
now
135
Vice-President
Salle St.
S. La
CHICAGO
New York Office
our
located in
as
our
Chicago Office
CG
DE 2-6161
1200
Resident Manager
and
McSPADDEN
FRANK W.
Assistant
formerly of
is
now
our
located in
Philadelphia
CG 625
Charlotte Office
our
New York
CHICAGO
Vice-President
Pittsburgh
Cleveland
Chicago Office
Detroit
as
Assistant Resident Manager
St. Louis
Troster, Singer &
Co.
Kansas City
Denver
Coast to Coast Wire
R. S. Dickson &
System
Dallas
Company
Houston
INCORPORATED
Members Midwest
Wm.
Stock Exchange
Los
H.
Angeles
San Francisco
CHARLOTTE
Atlanta
Columbia
11
NEW YORK
Greenville
Miami
CHICAGO
Raleigh
Richmond
TEGT MEYER
& Co.
Financial
6-7405
and
other cities
_
^
I
-12
P.
J.
Fred
PICTORIAL
Cummings,
T.
Rahn,
Bear,
The
The Commercial and Financial Chronicle
Stearns & Co.; Brenton H. Rupple, Robert W. Baird
(Milwaukee); James H. Scott, Blyth & Co., Inc.
Illinois
&
Co.,
Company Incorporated; Clyde H. Keith, Taylor, Rogers
A. Cochran, William Blair & Company
.
.
Thursday, February
.
(4, 1960
Incorporated;
William
Tracy,
&
J.
Candee, Candee & Co.
(New York);
Harry J. Gawne, Merrill, Turben & Co.,
(Cleveland); William Kumm, Hill, Darlington & Co. (New York); Otto J. Koch, Jr.,
The Marshall Company (Milwaukee)
Don W.
Inc.;
Loren
Miller, Don
W.
Miller & Co.
Hal
(Detroit); Fred J. Casey, Doyle, O'Connor & Co.;
Porter, Wayne Hummer & Co.
FLOYD D. CERF JR. COMPANY
Primary Markets
INCORPORATED
Complete Trading Facilities
Underwriters
Cruttenden, podesta
Members Mew 7ork Stock
&
Distributors
~~
Co. :
Exchange and Other Principal Exchanges '>•
120 South La Salle Street
209 South La Salle Street
DEarborn 2-0500
NEW YORK
•
Chicago 4, Illinois
Teletype CG-2686
SAN FRANCISCO
DENVER
CHICAGO
Traders
j
3, ILL.
•
:'-;s
AND OTHER CITIES
Ingraham
Building, Miami 32, Florida
Association
SPECIAL SITUATIONS
SINCERE and COMPANY
of
EST. 1906
231
S.
Chicago
SOUTH
LA
CHICAGO
\
STREET
CHICAGO
4, ILL.
MEMBERS
CHICAGO BOARD OF TRADE
and all other
SALLE STREET
Annual
3
y
Telephone STate 2-6000
SALLE
NEW YORK STOCK EXCHANGE
LEASON & CO., Inc.
39
LA
Principal Stock and Commodity Exchanges
■
Teletype CG 364 and 365
Mid-Winter
,
DISTRIBUTORS, BROKERS
&
J
■
DEALERS
Shillinglaw, Bolger
Dinner
FOR THE
MEMBER MIDWEST STOCK
MIDWESTERN MARKET
&
Co.
EXCHANGE
Established 1933
★
Taylor, Rogers
&
Tracy
Jan. 25,1960
UNDERWRITERS and DISTRIBUTORS
of
f
INC.
INDUSTRIAL SECURITIES
Member of Midwest Stock Exchange
★
105
S. La Salle Street
,
CHICAGO
TELEPHONE! FIbidcIII HIM
120
SOUTH
LA
SALLE
STREET
CHICAGO 3
Telephone STate 2-5850
TELETYPESi 00 117-918
mum,
'
Teletype CG 1070
a,
If
VINiptlMffttilHW U 4
Inc.
-Volume 191-
Number 5922
.
The Commercial and Financial Chronicle
....
—Bought—
(579)
—Sold
No. of
No. of
No, of
Mgts..
'Shares
Shares
No. of
Mgts.,
Funds
'•'
V
3
2(1)
3
2(2)
3
3
Northern Indiana Public Service
Ohio Edison
12,500
1,800
.6,100
.12,000
15,200
123,200
8,000
17,900
.35,000
34,000
8,900
J
4(2)
4
3(1)
Tampa Electric
3
None
None
None
None
None
_
14,000
13,600
1,000
2,000
None
,
1
_______
Public Service of
_
Indiana
Rochester Gas & Electric
300
'/•
None
—
24,500
Western Union
2
15,218
2,170
American Tel. & Tel
General Telephone & Electronics
1
3(3)
2(1)
2(1)
2
2
3
3(1)
2(1)
4(2)
2(2)
2
-
*
40,000
37,524
1,000
7(1)
Kl)
1
17,800
3,100
Id)
9,000
3(1)
13,400
Railroads
4
21,100
37,100
23,500
5,000
2,500
21,715
2.0,000'
2
3(1)
3(1)
3
Atchison, Topeka & Santa Fe_:
-Denver & Rio Grande Western.
Great No.rtbern
Illinois Central
N. Y., Chicago & St. Louis.
,
,
6
,
2.
;
.
3
4(1)
29,000
10,000
5,000
l-
J(D
None
:
2(1)
2::
2
,
Texas
2,500
"
-
attitude
prevailed
toward
the
aircrafts,
drugs, natural gas, oil, textilerayon, and utilities.
on
Stein
and
Pnnd
purchases
were
Roe
AD^)
(5,000
made
by
four
.
ing spiit opinions bv the experts,
We^tinghouse
b
fi
on
each
Lonnnwea on page it
•
■
in this group was
which Wellington was
tbe
iargest
purchaser,
with a
whopping 6,000 shares, followed
b
Chemical
Fund
with [ 3,803
ghares Weii_acting Dow found its
largest, buyers in Tri and its
"sister" National Investors, for a
combined new position of 58,000
sbares
Monsanto had its largest
buyer
in
Seiected
American
..Begt bought
.
Bu p0nt,-of
arid
(7,508),
only
its
^nda^entai
seller
PHILADELPHIA
FUND
INC.
A Mutual Investment Fund
Prospectus
Request
c(dg,
DISTRIBUTOR
(established
.
•
issi)
Members New York Stock Exchange
2 Penn Center, Phila.
*
2, Pa.
LOcust 8-6800
'
Stauffer Chemical,
Guardian.
on
S*a/ineAtocJe
]
in
(5,860). Largest
buyers of Allied Chemical inciuded ^be Tri-Group (24,400) and
tbe united Funds Group (25,000
Vtnd ^1^
•
was bought and sold
managements
e
b* flve
*
.
As shown
NAME
2
2(1)
3(2)
8,500
19,500
"2,400
3(2)
2(2)
None
None
will
None
was
None
None
remembered
be
that
there
'
1(1)
1(1)
None
second
a
Madison
10.
was
(4,500 shares),
the
among
j
"Glamorous"
was
American
eliminated by Dreyfus
...
.
Banks Strongly Bought
.
being
coppers,
; bought
by
six
managements, without a dissenting seller. The former included
National Securities Stock Series
(5;000 newly), United Accumula(4,000), arid the Axe Group
Motors
were
Investors
Mutual
(3,500). Noranda Mines, which is
(23j200) and Fundamental (18,- both a copper and a gold stock,
000). The sole seller, was Wellirig- -was also
bought by; the Axe
ton
(25,000) with its switch to Group
(1,000
newly)
arid
by
General
(30,000), more than offsetting a
new position: established by New
England Fund (1,500).
:
STATE.
Reflecting the
rates,
more
b
a n
k
rise
stocks
t
_.
of
Largest ( buyers
Motors
;
offering of
public
two million shares of this issue on
Ford.
•
CITY
,
None
:
ADDRESS.
stocks.
W"ith
14
fund lished large new positions (with
groups
buying it, Ford would 81,000 and 25,500 shares, respec- p—
have qualified for the very top
tively).
On
the
other
hand, J
spot, had it not been for three Chemical Fund sold 65,444 shares. I
selling managements. Largest
>
'
buyers of Ford were Fundamental Coppers in Mild Demand
j
(30,000 shares), Wellington Fund
As in the preceding quarter, j
(26,200), and Fidelity (20,000). It. Anaconda-led the demarid for thej
sellers
in
interest
were
tive
Affiliated
hand,
a
|:
j
(14,220). On the other \\
opinion'
and
Kennecott
was
divided
on
Phelps Dodge.
.
v
Electrical
Equipiment and
Electronics Moderately
Bought
in popularity by far I
General Electric, with Well- I
Leading
even
actively bought; with nary
j
was
2,700
■—
Continued
(
f. \
on
The
».
Mutual Investment Funds
ONE
ONE WILLIAM
STREET
WILLIAM
J. • T'. •, ^ • Bond Series,
•
"
attractedfavorable
THE FAVORED GROUPS
Rolling
ADRs)
bought
/
Spiegel—
:
quarter,
2
V
None
' ••
preceding
10,200
.14,000
i 5,800
•
None
the
2
28,400 f rACF-Wrigley Stores___'____-_'-_ !v29,000
•2.7- •'
11;500 . Allied Stores
—
4,000
2(1)
5300 \ American Stores^—_—__j__—_ * None
2(1)
10,800:. .Associated 'Dry*GOods-u-____^-^
4,400
3(1)
12,500 •Federated Department Stores.__
7,500
3(1)
25,100
Gimbel Bros.
_____r._——14,500
3 /
5,500
Grant (W, T.K—
None
1
-1^000
May Department Stores._—___
2,400
1
1,700
Mays (J. W.)
- 300
3
11-900
Montgomery Ward..
;
None
3(1)
12,400
Murphy (G. C.)
•
None
7,000
Penney (J.C.),
—
—
9,100
2(1)
:T3v300" r- JSafeWay' -Stores_7_7_7——_7.. " None
7(1)
61,565
Sears, Roebuck
—None
2(1)
28,750
Stop & Shop
None
2(2)
12,410
Thrifty Drug Stores.—_7i7—__
None
2(1)
20,200
Woolworth (F.W.)__
2,000
None
Food Fair Stores-—---.
___7_
None
11,500
•''
some ex-
a^mmums'
or
nqutral,
Dec.
>•
„
29,000
None
Retail Trade.
1
'-'v
•
,
in
.
Mixed
AUtos
/25 000
^ced
above, both Ford and which merged with Victor, was
General Motors ranked high on
subjected to divergent attitudes,
the overall list of the most widely. Wellington, and
Lehman estab-
None
None
;
.
AmericanBrake Shoe__________
.General Amer. Transportation-.
New York Air Brake——.—
.
3,700
r;
Pacific
Railroad Equipment
1
25;000
I
&
2(2)
None
—_.
None
.
KD
w/r-
stocks, and to
Siemens & Halske by Wellington
-sales.-Consistent-with the pervad-
es iVlotieraw;*y
National Lead
.
2(2)
2
12.000
6,500
_______
17,800
2'.
54;000
32,600
Norfolk & Western.
j.; Seaboard Air Lihe-_^^_____u-__.
Southern Pacific
Southern Railway
Union Pacific...-.:
Chesapeake & Ohio
Louisville & Nashville
27,900
.
favored
1(1)
None
None
"uf
As
and steel
1
5,000
31,556
214
________
3,000
2
American Broadcast-Paramount
Columbia Broadcasting
Magna vox ^
1
Twentieth Century-Fox
United Artists
Motorola
°.U
1
6(3)
Radio, Television and Movies
1(1)
^
attention, moving from the second
The following analysis of portt0
-fjrst popularity spot in this
folio, changes, drawn from our
group
its
largest buyer was
tabulation on page 21
of trans- Broad Street (5,000); on the other
actions in nearly 425 stock issues,
hand,
Lehman
sold
its
entire
is
based on the number of
gnidloh-nam Also liked
(10,102 shares).
agements: buying or selling, rather were
Otis, U. S. Plywood, and
than on the number
shares in- Yale & of
T;wne. As before, U, S.
volved.
Gypsum was sold.
During the December quarter
fund
managements
particularly Chemicals Well Regarded
,
In
established
a]so
u
,
cuQl.nc
.
5(1)
2(1)
3
,
_
POLICY TOWARD
.
larges^byyei^,Uh^re being not a
singie seller: rNeither) was ihere a•
seller 'of. "philipsVrDamp
Works,'
which found the; largest, buyer of,
its 50-guilder shares Viri .Dreyfus
(newly with 30,150), Ihffial posi-
usi _J X
rykTav managements in both "McGraw*irst National City Bank of N. Y. j^gon and Sperry Rand; With no
automotive, bank chemical, electronic, glass, nickel, and
paper
shocks. Also fairly well
bought, although more moderately, were building, copper, insurance, rail, rail equipment and
tobacco stocks, and, to a still lesser
extent, retail and rubber stocks.
In
pronounced disfavor were
agricultuial
equipment,
airline,
2(1)
15,900
7,500
16,400
________________
;
INDUSTRY GROUPS
1
Public Utilities—Telephone & Telegraph
3(2)
Hoogpvens.
foreign issues, Philips' and
Unilever N.V., constituted the two
largest holdings in the Investment
Company of America portfolio.
1(1)
KD
3,000
2,500
9,300
51,300
34,900
46,249
6,700
8,300
11,000
England Electric System__
Niagara Mohawk Power
^
Pacific Lighting
z
bankers Trust (in which One
William and Dreyfus established
new positions) jDh^se Manhattan,
also bought by, th^sd Jtw,o funds
and olhprs. Chemical
York
Two
x'6,000
New
'None
KD
(N. Y"J—!—
and
.
seller. Leading, the-parade were
Halske, Farben Bayer,
Farbwerke Hoechst, Imperial.
Chemical Industries, Montecatini,
Pechiney, Unilever N.V > Beecham,
4(1)
__
Middle South Utilities
None
None
1
_
Duquesne Light
Gulf States Utilities
Kansas City Power & Light
1
1
1,000
None
None
1
1
400
Consolidated Edison
1
None
14,500
None
1
None
;7
_____._
,4,200
None
2
•
,
6,000
None
3,837
.7,600
Virginia Electric & Power....12
25,000
West Penn Electric___
4,000
American & Foreign Power
143,600
Carolina, Pgvoer & Lightr.......
17,300
2,100
"
2
Continued from page 20
Siemens &
i—7'
_■_
^
.
None
200
———
4.x
None
None
Service—
Union Electric (Mo.)
United Utilities,. -i_-1 7_u
7,1005,(100
1(1)
1
10;OOO
Texas Utilities
to
1
Norie
Southern California Edison
Southern Co.
Public
'
None
Public Service Electric & Gas__
Puget Sound Power & Light——
South Carolina Electric & :Gas__
18;400
2
500
Potomac" Electric Power______i_
Public Service of Colorado."—
Southwestern
V-
4,300
_
Peoples Gas Light & Coke______
500
1
4
'500
-
ington
(19,500), -Dreyfus (7,700
newly) and Investors'Mutual the
Step Up Buying As
*
3(1)
23
Balanced Series
Preferred Stock Shies
-i
I
#
lncome Series :
-j
-
FUND, inc.
Stock Series
Dividend Series
A
#
Growth Stocks Series
diversified mutual fund investing selectively in securities
ol American business and
industry with the objectives
of
.
IniTorinauon Folder and Prospectus
on
Request
NATIONAL SECURITIES & RESEARCH
a
fair and reasonable
current
return
to
share
owners.
New York 5, N. Y.
Hugh W. Long arid Company, Inc.
;
CORPORATION
Established 19SO
120 Brood way,
achieving reasonable capital growth and of providing
"Prospectus
on
request WILLIAM* STREeV ^A'LE'G,'INC.' *
One
William
Street,
New York 4,
N. Y.
v;';.
187B.
j
I
Elizabeth 3, New Jersey
■
1
24
Financial Chronicle
The Commercial and
(580)
Thursday, February 4,
.
.
.
1960
-Sold-
—Bought—
Wilbur Davis Opens
No. of
No. of
No.
No. of
No. of
Mgts.
MILLSTADT, 111. —Wilbur A.
Davis is conducting a securities
business
here.
Mail address is
No. of
Shares
Shares
Mgts.
1(1)
33,000
6,500
2
5,000
7
Armstrong Rubber
Firestone
12,998
4
Tire & Rubber._.
General Tire
4,100
Massachusetts
•
7,050
Rubber___.
&
30,000
Goodrich
3
14,880
45,000
U. S.
2,000
5,600
5,000
17,200
Goodyear Tire & Rubber.
4
2(1)
None
None
(B. F.),
Rubber-^.^^...^..
■
U. S. Shoe—
7VT
Brunsvoich-Baike-Collender
Wnno
o
1
10,900
12,000
9,000
Equipment
American Photocopy
None
None
None
9,300
2
-------
None
None
KD
2(1)
1(1) '
2(1)
Freight....
S.
U.
None
None
•
1(1)'
None
(ADR)__
N.V.
Unilever
5,000
1
3
,
-
3,300
Time.
6,100
•4(1)
2(1)
-
Mgts.
Shares
Rubber and Tires
112.
1, Box
No. of
Shares
No. of
Mgts.
Sold—
—.Bought—
(Special to The Financtal°Chronicle)
Route
No. of
Tennessee
----
Corv.
-
:
iKL-
'
Steel and Iron
Life Fund
A balanced mutual fund
1
2,000
2(2)
providing
Kl)
6,300
1
6,500
28,500
3,500
6
2(1)
JfCoafrilafSEifSa
4
1
Investment Dealer or
51,000
U. S. Steel
Youngstown Sheet & Tube.
American
Viscose
Burlington
375
Beaunit Mills
None
United Merchants &
8,900
Mfrs...
11,600
31,200
American
19,000
Liggett & Myers
3(1)
21,000
Lorillard
5(1)
27,500
Philip Morris
4
24,000
Reynolds Tobacco
1
V
2(1)
2(2)
Tobacco
2,000
None
20,500
None
9,500
3(2)
None
1
3
about
American
10,000
American Optical
2
37,500
AMERICAN
2,500
2,006
Fansteel
4,900
Ferro
Foxboro.
2(2)
16,100
fied
KD
1,000
General
1
13,000
6(2)
65,900
1
lL 1—
Genesco
Cable...
—-v
1(1)
issue, found its largest buyers in
Investors
Mutual
(8,700),
One
1(1)
None
None
William
11
'■
;.
and Lazard (5,000).
The
nickel-issue, Falconbridge,
other
...
also attracted Lazard
None
(5,000
Madison
(5,500),
which estab¬
KD
35,000
8,000
1
shares.
4(3)
75,250
Holt
None
None
3(3)
4,800
None
None
2,750
KD
20,500
1.1.
and
45
3(1)
below and mad H
Selected Investments Co.
1
JUL
Interprovincial Pipe Line..
Lees (James)
-
5(1)
1
Robbins
______
24,600
Mining & Mfg.—
Newmont Mining
Newport News Shipbuilding.:...
14,900
3,600
Pittsburgh Metallurgical
Outboard Marine
4(2)
13,100
Polaroid
20,800
Procter
2
19,500
Ryder System
.3
t
2(1)
3,030
-4,000
5,500
Signode Steel Strapping........
Stone
&
7,500
500
64,000
17,000
Gamble.
Simmons
Insurance Stocks
"
,
,
Mildly
issue
was
Fire¬
buyers \ included
MIT and Lazard, with Dividend
Shares the largest seller (5,500).
Also liked was General Tire &
whose
stone,
by-United Ac¬
Co. iof
America, Axe Science and Aber¬
Rubber,
bought
cumulative,. Investment
.
y
deen.
Favored'
sellers
The
Atomic
were
None
10,000
2,200
6,500
...J
&
new
a
Bought
bought
Best
Dominick.
Aetna Life, which during the* Atomic also sold 2,900 shares' of
1
subsidiary,
Aerojetquarter was split 2-for-l followed General's
Kl) :•
V' ;V: t /
-by a 38% % stock, dividend, was General;/. > ■' '
bought by four funds, including
2 "
'State Street (4,467), Fundamental Tobaccos Well Liked1
.?'•
Best* i bought
(3,000):,and Lazard (2,167); but
Tobaccos ; were
1 ,•>'
;
was
sold i by
Incorporated
In¬ American and Philip Morris.
Of
1(1)
vestors 4(18,466)
and ■ American; American the largest buyer was
1
.;•••■
European
(all
2,570).,
Trans- Dreyfus (28,200), the only seller
3
america,, whose largest stake is being Wisconsin Fund (all 2,000).
None
25,000
Minnesota
2
2(1)
9,000
1,100
lished
Rubbers
None
Merritt-Chapman & Scott
6,200
'
-
2,100
&
(22,000)/ Mad¬
newly), United Ac¬
cumulative (14,000), MIT (5,065),
Texas Fund, Investment Trust of
Boston, and Institutional Inves¬
tors, in that order'of volume. (15,000
None
McKesson
3(2)
3(1)
Kl)
2
9,475
Leesona
31,500
5,000
dry
...
...
17,500
•:
3(1)
Address,
(Henry)—
Indiana General
1,550
2
Norma.
Cementing
:
36,700
2(2)
1
6,500
...
Harris-Intertype.
10,020
2
Society
Halliburton Oil Well
'
retail issue was
Sears Roebuck, with seven buy¬
ers
and no seller. Purchasers in¬
bought
Best
newly)
13,000'
42,000
-
Hertz
5(2)
of prospectus smd
Grolier
9,700
Scattered Interest
ison
the quar¬
widely-bought single
most
Retail Stocks Attract
cluded Wellington
:
International Nickel,
-
ter's
None
None
Gillette
1
Nickels Shine
1
the
Wellington
'position of 52,000
shares. On the other hand, Madi¬
son reduced its holding-by 16,700
1
other information—fill In name
__
,
8,600
TV
the larger buy¬
and M.I.T. and
larger sellers.
1(1)
T.
and
Fund
ers,
1
Broad
which
.
Chemical
None
Metallurgical
—
which
of capital"—®*
l
Eastern Industries
1
supervises a diversi¬
portfolio of American^
securities, selected for the possibility yd
Diners' Club—
2
mutual investment fund
6,000
1
175
Chromalloy :
11,789
1
Libbey-
about
Rowe Price were
500
Bell & HowelL.
1
SHARES-mc.
Street,
13,100
1,800
1,000
1,000
21,000
! Avon Products
1,000
-
of
None
American Machine & Foundry
12,400
1(1)
KD
1(1)
divided
Owens-Ford,
KD;
None
1
(20,000), and Inves¬
(7,000). ;
:
000).
Opinion was even
800
Export Lines
1
SELECTED
eliminated by One Wil¬
(40,000).
more
American Commerc'l Barge Line
5,000
26,700
William
Mutual
RCA
and
issue was
3(1)
Miscellaneous
INVESTMENT FACTS
135 S. LaSalle Sl, Chicago 3,
Kl)
None
(P.)
liam
Why not Get the
coupon
4(2)
2(2)
Tobacco
5
2
on
,
7(1)
7(3)
•71,900
43,000
Industries
Celanese
None
Stat« Street, Boston q, Mass.
address
7(2)
5-
One
tors
by four manage¬
ments each. "Glamorous" Texas
Rails, Rail Equipments
Instruments was bought by three
managements, two of them newly; Moderately Bought
Best
buying
in The carrier
: and sold by five, including Madi¬
son
(3.800), Energy (1,000), and group
this
time
centered
on
United Science (1,000).
ITT was Norfolk & Western, wnose six
; newly bought by Axe Science, buyers included Investors Mu¬
but
reduced by Affiliated and tual (11,765) and Axe 'B' (5,250).
Delaware.
There were no sellers.
Fair in¬
terest was shown, with scattered
Glass Issues Favored
buying, in Atchison, Southern
Fairly widespread demand de¬ Railway, and Nickel Plate.. Rail
received
buying,
veloped for Owens-Illinois and equipments
Pittsburgh
Plate,
the
latter's without any sales, of three issues;
the
largest transaction being a
buyers including the Tri-Group
new
position established by Laz¬
(33,300) and the United, Funds
Group
(24,380)". However,
this ard in American Brake Shoe (20,-
:/•" side,
X
44,800
70,000
40,300
Republic Steel
None
DISTRIBUTORS
—for FREE copy
4
23
Continued from page
5(1)
72,600
...
>
2(2)
14,300
'
None
MASSACHUSETTS LIFE FUND
long term GROWTH
Current INCOME.
'•
•
3(1)
; 27,000
Jones & Laughlin Steel
4,500
30,800
31,000
3(1)
Prospectus from your
k. ,1
1
*
Textile and Rayon
^cnifutny, Trustee
Founded t8t8
50
1
44,800
Armco Steel
Bethlehem Steel
4,300
i
2,500
City Steel
Steel
1(1) ' 1
2,500
'4,000
,
Allegheny Ludlum Steel....
,
10,800
3
ffnOuuent*
Inland
4,100
/*
3
iMbOOacAuaelfo
Granite
2,000
2
3
2,500
•
Copperweld Steel
Crucible Steel.
900
2
for distribution of income and prin¬
cipal in accordance with an individ¬
ual trust account for each investor.
,
Alan Wood Steel
6,100
38,000
2
■*
12,000
;.
and
Development
•
..
1
in
insurance,
bought by
was
managements,, including
Wellington (55,500.) and American
None
None
life
four
-v T-
None'
_______
Webster—
1
None
European
:
none.:
■
.
'
by
sold
(5,700), ;and
-
..y
-..
...
Of
Dreyfus
Morris,
Philip
was
(10,000
newly), followed by National Se¬
curities Stock, without any seller.
likewise the largest buyer
United Funds Group was the
larg¬
Travelers was est buyer of Lorillard -(18,000),
picked up by Lazard (4,000) and offset, however, by two complete
of
this J stock
others; its only seller being. In¬ eliminations
by
corporated Investors (5,000). U. S. Loomis-Sayles (10,000) and Share¬
Many-faceted
WzzzzzzzznzzzzzzzzmzjzzzzzzzszzzzzzzzzzzzzzzmzzzzzziYzzzszzzzzzzzzmTzzzmz^
A BALANCED
FUND
investing in
bonds and preferred stocks
.
principal and current in¬
come
X
and in conrmonstocks
selected
for
income
&
"Fidelity
selected for conservation of
.
Guaranty
X
and
;
profit possibilities.
.
A non-dividend
Equity
rUfUL
company,
term
investing pri¬
stocks
selected for possible longmarily in
term
common
Ask your
redeemable at net asset value, seeking long-
in Canadian
growth of capital and
paying diversified open-end investment;,
appreciation
United States,
through investments outside the*"
witl^ not less than 50% of its total assets
companies and
up to
50% in securities of
'
International
companies outside of Canada and the United States.
buyers,
its
net.
and
Inves¬
holding by only 480
Also
Check
one
□
Wellington Fund
□
Wellington Equity Fund
NAME
ADDRESS
Loeb, Rhoades
Members N(ew Tor\
.
"
42 Wall
Branch
Street
Stoc\ Exchange
New
York
&
Co.
>
5, N. Y.
Offices and Correspondents in 100 Cities
CITY
liked
bought
two
,
-
I .GROUPS IN DISFAVOR
continued
Liquidation
both
Har¬
vester, apparently reflecting pub¬
lic
expectations
downturn.
of
Deere
St,
(39,900),
Broad
five
funds
Madison
(4,407),
and
Union
were
in
International
Deere .and
Investment
was
a
cyclical
sold by
Street
MIT
(24,000),
Commonwealth
(6,000)
Selected
Bag-Camp, bought by four, name¬
American
ly Wellington, One William, Fun¬
Express Group (3,700).
damental, and Equity
est of the few purchases of Deere
sold
by
sold
and
matched
.
Fund, and
Container
none.
heavily
90,000)
vzzzzzzzzzzzzzzzzzzzmz2zzzzzzzzzzzzzzzzznzzzjzzzzzzzzzzzzzzzzmmmzzzzzzzzzz&
by
sellers,
.
six
(4,275)
through Investment Dealers
.
Agricultural Equipments
only
Liquidated
by Bullock, which, however,
reduced
and 5,000 shares of Reynolds.
received
being
Regis,,
Carl M.
Paper *
latter
against
Wellington Company, Inc.
Philadelphia 3, Pa.
cp
10,-
holders' Trust of Boston (also
•
tors Mutual (4,000). The sole sale
shares
Traded Over'thcCounter
'v;f
the
among
Fundamental
investment dealer for
prospectus or unite to
•
-
near-unanimity of buyers,
one
seller appearing against
was
future income.
a
(27,000), and the Eaton & Howard
Group
(.13,600);the sole , seller
being Investors Mutual (3,600).
Papers. Liked iy
An
proved
strong .favorite, its largest buyers :000).vFinally, Dreyfus also bought
including
United.
Accumulative 18,000 shares of Liggett .& Myers
'm
t
by
Diversified
this
*
Corp.,
Wellington
(all
(12,000),
with1 purchases
by
was
(4,067)
' made
by
and
the Adams
The larg¬
Axe "A' 4 (3,000).
Sellers of International Harvester
included
MIT
(16,500), Affiliated
(11,500); 'Loomis-Sayles
(all
10,-
Number 5922
Volume 191
(13,600), witht he
largest purchase coming from One
William (3,000).
Dip Again
Airlines,
American
as
The Commercial and Financial Chronicle
.
lected American
00,0); the sole buyer being Na¬
tional Securities Stock (9,500).
Airlines
.,
ily sold of all issues; the sellers
including
Fidelity
(all 60,000),
the Bullock Group (71,700), State
Street (all 18,500), Eaton & How¬
ard Stock, Scudder, Exp-Adams•
Dreyfus.
The sole
Guardian (2,000 new¬
Othersi subjected to heavy
and
w ere
Largely Sold
;
buying in Al¬
(7;500), -al¬
though Chemical was buying 8,250
shares.
Two
new
buyers
came
into Pechiney, namely In¬
nolds
Lazard
was
corporated Investors (30,000) and
Energy
Fund » (1,800). • Opinion
was quite divided on Aluminium
Ltd.,, of
which de Vegh and
American
European each made
initial
purchases
of
10,000
shares; with the United Funds
adding
group
the other
19,000 shares.
On
hand, State Street elim¬
inated its 20/000 shares, and Mad¬
ison
sold
National
19*800 shares.-
Investors
and
Axe Sci¬
Ralph
>•
A
selling moderately
ex¬
ceeded buying in the steel sector,
•
came
in
Bullock
the
from
Qroup, and again Investors Mutual
(8,200 and { 2,100, ' respectively).
Heavy selling hit Jones & Laughlin, coming chiefly from Incor¬
porated Investors (28,700) Invest¬
ment Co. of. America (all 20,000),
,
Delaware
(8,000), State Street (all
5,000), and Lazard (5,000). Repub¬
lic
was
also
sold
by
Incorpo¬
Investors
rated
(21,800)
by
and
Fidelity
(14,000);
some
buying
here coming from Commonwealth
Investment (3,500), Dominick (2,-
pas in Cross-Currents
in
American European
Best
chases
of
National
established
was
.
by
Before
United
Steel
States
;
'
V
• •
,''' '•1
i
As
pointed
mism
';'
■'
•
(6,000). Pur¬
included a
Wilson
13
above,
pessi¬
United
ovejr the oils lifted somewhat
buyers
was
,
Texaco.
Co.,
is
ion,
to
seven
sharply
divided
buyer
Largest seller
Fidelity
Fidelity (21,700), and biggest
bought
sold
was
by
by
seven
here
the
made by
Se-
two;
largest sale being
(16,500).
CONSIDER...
EATON & HOWARD
and
changes.
Midwest
Mr.
Stock
Gregory
Ex¬
for¬
was
merly with Paine, Webber, Jack& Curtis.
soq
buyers(20,800),
(15,400)
and
is
4
Shares
/
(400).
Investors
Mu¬
its largest seller
(48,168). Buying
Fundamental
1 (10,000),
and Madison
(150),. Merger-disappointed Su¬
perior was sold by Fundamental
(all 3,100), Belaware (all 300),
and Energy (50). The, sole buy¬
er
was
Investment Co. of Amer¬
ica.
British Petro¬
closed out by State
LoW-priced
leum
was
against
three
selling.
Largest
was United Accumulative
(4,500), and the most important
seller Niagara Share (3,100).
buyer
newly).
•'
a
firm
of
Ralph
E.
Co., members of the
New York Stock Exchange.
Samuel
&
Energy Fund is an open-end
investment company designed to
diversify investment in the
energy
A FULLY MANACjJED
industries.
INVESTMENT PROGRAM
Anderson V.-P. of
National Distributor
Distributors Group
The
.
of
board
y
Coffin & Burr
Incorporated
,
directors
Dis¬
of
Founded 1898
tributors Group, Inc., 63 Wall St.,
New
York
City, have
nounced
BOSTON
NEW YORK
an¬
the
election of
Robert D. An¬
derson, of New,
City to
York
Vice
-
dent.
Presi¬
He will
Continue
rector
as
di¬
the
of
Sales
firm's
Development
Department.
Before join¬
ing
Distribu¬
Group in
1955, Mr. An¬
tors
Robert D. Anderson
derson
was
an
sentative with
members
Co.,
investment repre¬
Kidder, Peabody &
of
the
Stock Exchange.
York
New
-
-
Fin. Advertisers
The
Elect Officers
The
New
tisers
York Financial Adver¬
Association
Robertson
elected
President for
public relations
officer of The First National City
Bank of New York, succeeds Ken¬
I960.
Page
Page,
has
Mr.
as
neth C. Browne of The New York
"Times'"
Other
Dreyfus Fund is a mutual fund
in which the management hopes
to make your money
grow'and
takes what it considers sensible
risks in that direction.
'Booklet (prospectus) free from your dealer
«r
DREYFUS Corp., 50 B'way., New York 4
advertising staff.
new
officers elected were
George
Heyne
of
the
SouthBrooklyn
Savings
Bank,
First
Vice-President; Charles O. Graf
of the New York "Daily News,"
THE
Second
FUNDS: "A"
Stiehl
Vice-President; Robert J,
of
the
American
Bankers
Association,
Treasurer,
Sally Dominick, Secretary.
and
AXE-H0UGHT0N
"B"
"STOCK"
New
directors, elected to serve
a term of'three years, are Alfred
G. Genung of the Ninth Federal
Savings and
Loan Association;
Jones V.-P. of
Van Strum, Towne
The
election of Richard N. Jones
as
a
Vice-President of Van Strum
&
Street and Eaton & Howard Stock
also
Babcock; & Wilcox found firsts-
-
Louis|aha Land came /chiefly
from Investment Co. of America,
CBS was picked up by MIT in
Investors Mutual; with no sellers.
an additional 28,900-share bundle,
Amerada was again sold on bal¬
and
newly by Dreyfus (6,180);
ance, led by liquidation by Fun¬ State Street and Selected Ameri¬
damental (37,000), with the buy¬
can were the two largest sellers.
ing scattered. "Jersey's" seven
Gillette {was quite a favorite,
buyers included Investors Mutual
(2,412)
and
Group
Securities with seven managements buying
Common Stock Fund (4,000).
Its and no sellers. The' buyers inl
(40,000)
sellers embraced Fundamental eluded the MIT Group
(10,000- shares
(15,000 net), Wellington (10,000), and. Dreyfus
Putnam
/
ORGANIZED 1931
brokerage
,./.,
Non-dividend paying United
Fund
Fund,
partner of the
?
(12,000).
New England
Treasurer. He
Donald Samuel:
only:
found
Fruit was closed out by Investors
Mutual
(40,000)
and Sovereign
.
in
Youngstown
and
in
tual (21,027) and
in
buyer Investors Mutual
Salle Street, members of the New>
York
Assistant
was
:\':'/7,
Madison {the
sellers barely outnum¬
bering six buyers.
was
opin¬
been
Straus,
Blosser & McDowell, 39 South La
director
a
of : the
although strikei-
Accumulative
Dividend
outnumbering six sell¬
Good interest
was also evinced in Royal Dutch,
buyers
including the United
Funds Group, Investors Mutual,
Lazard, and Niagara Share; with
.
&
affected,
out
the: previous quarter, Most
popular issue in this group, with
ers,
/■
..Mutual/
"
since
largest
jected
of
staff
as'
president.Do n a 1 d
Samuel, who
19,000-share block by Investment
Oils' Sentiment Improves
sub¬
was
the
to
his
election
Pepsi-Cola
time? buyers in: Fidelity (11,500),
only seller (all 10,- Broad Street (10,900) and Divi¬
000 shares).
MIT and Investors dend Shares
(2,000).
Mutual vtere among the manage¬
000), and Institutional Foundation
IBM, as usual, was well-bought,
ments showing lively interest in
d,ooo).
;
:
Continental.
Gulf
Oil
had
its seven
managements { purchasing
;
of
added
Gregory
have
the Board.
Co. of America.
:
/ /-•
outnumbered buyers in
In Continental Can/ MIT estab-:
Armco, of which Investment Co. tors
Mutual, while Investment Co. lished a new position "(12,000),
pf America! sold
10,000 shares, pf America added 30,000. Largest
and
Fundamental
added
27,000
Delaware (7,000) and Lazard (5,- selling came into American Nat¬
shares.
000).- The principal buyer was ural Gas, of which Tri sold all its
Investors Mutual (4,000). Largest 17,300 shares, and Lehman all of /. In- the consumer credit sector,
sellers
of
Bethlehem, included its 16,500 shares.
The Bullock 14,450 shares of Household * Fi¬
nance were acquired by Investors
State Street (24,000) and Fidelity Group sold 18,300.
>
:/
tellers
(20,000), while buying of this is¬
who
named
Chairman
Shafton
Baron
,
position
new
Distillers
bdught stock in this group
was Tennessee Gas Transmission,
especially due to acquisition of a
block of 103,500 shares by Inves¬
period,
sue
E.
Samuel,
was
MISCELLANEOUS ISSUES
-
Natural
During the height of the strike
He succeeds
•I
ence.,
Sold
Steels Mostly
President.
as
,
Largest seller of Rey¬
U. S. Foil.
with
sold
included
Foreign
Power,
the
Cuba
crisis,
.
Reynolds- and -its). "parent"
coa,
The Board of Directors
111. —John
and
Fund,
.
<
Selling exceeded
and
(Special to The Financial Chronicle)-
CHICAGO,
of Energy
Fund Incorporated has announced
the election of Donald C. Samuel
(20,000 each),
,
(•all 12,000),'and Sullock (9,600).
: '
■\"4
' ■'
Aluminums
riddled
Howard
issues
Utility^
unaccom-
&
Largest sellers were Madison (all shares). '
\.y
{ :' \
""'• * 1
21,100) and Atomic (13,475).
Of
United Aircraft, National Securi¬
Textiles Mixed
; '
J
ties Sjtockj bought 17,500, while the
United Funds .Group sold 39,000.' { Perhaps with a sensing of the,
dividend cut which occurred aftep
Opinion {turned
against
North
the end of the quarter, • Beaunif
American, of which; Atomic sold
24,200 a h d " Putnam f eliminated {Mills was eliminated /by Dreyfus
(5,000), and reduced by Common^
its 15,000 shares.
{wealth { Investment.
Burlington//
/1
V:-v,
currently involved in merger with
Drugs iri Conflicting V
James Lees, was bought by Dreyr
Reception
fus (10,000), and acquired: through
Buyers outnumbered sellers in bond conversions by Broad Street
Merck, with Wellington and In¬ (15,800). On the other hand,
corporated
Investors
the larg¬ Wellington liquidated its entire
est buyers (16,000 and 15,000) and 40,000 shares. Fidelity and Drey¬
Affiliated; the largest seller (21,- fus sold American Viscose, to the
200). Upjohn was bought by Well¬ extent of 46,400 and 20,000 (all),
ington
(29,000
newly),
United respectively. The United Funds
Funds (24,500) and General Pub¬ Group
added
31,000 shares
of
lic
Service
(1,500).
The latter Celanese.
management also took a new po¬
ATTITUDE TOWARD
sition in Parke, Davis, along with
Northwest.: and
United. Of the former, sellers in¬
cluded Fidel i.t y
(all 70,000),
Dreyfus (all 17,000), State Street
•
Balanced Fund
American
buying,
Eaton
panied by selling, came into Bencompletely eliminated by Tri, in¬
dix and Cessna.* Opinion was di¬
vestment
Co, of* America, and
vided
on
Martin ; and
United. National Securities Income. Largr
Largest buyer of Martin was New est; seller of Niagara Mohawk was
England
Fund
(3,500
newly). United Income, Fund (all 20,400
buyer was
ly ).
selling
Madisbn and
Aircrafts Divergent
Scattered
Of Energy
25
Two With Straus, Blosser
D. Samuel Pres.
of New York State E. & G. were
REACTION
tioned above, was the most heav¬
AIG,
Of this
issue
the
MIT
Group
bought 65,000 shares and the TriGroup 24,000. First-time buyers
GROUPS MEETING MIXED
men¬
(581)
Edgar
R. Shumway of the First
National Bank of Passaic County;
and Mrs.
Eleanor
C.
Waters, The
AXE SCIENCE
& ELECTRONICS
Towne, Inc., investment coun¬
CORPORATION
Seamans Bank for Savings.
Fund.
sellors,
Utilities' Reception Divided
In the utilities sector,
slowed
by higher
Americaq
Electric
reputedly
interest rates,
Power
at¬
York,
public
offering. Largest purchases
included
an
Wellington
enormous
block
(179,300).
/ Other
by
Broad
been
Mr. Jones also is President and
a
Director of Economic Analysts,
Inc.,
investment counsel
Prospectuses available from
your Investment
Dealer or
EATON &
HOWARD; Incorporated
24 Federal St.,
boston
10, Mass.,
Vice-President and
Fiduciary Counsel, Inc.
stantial interest..was. also drawn:
to Central & South
accompanied by
a
West, likewise
stock offering/
of New
York, and w^s formerly Executive
mental
MIT
(27,216),
Investors
Mutual
(26,580)
and
National Investors (25,000). Sub¬
by
Whipple to Join
Koerner, Gordon v
1
AXE-TEMPLET0N
the firm.
buyers of this issue were Funda¬
(70,000)
New
Street,
announced
Samuel R. Campbell, President of
tracted
11
buyers with nary a
seller —' coincident with a new
85
has
a
James
Whipple on Feb. .4th
will become a partner in Koerner,
Gordon &
City,
York
is a
pal .Forum
of
New
York
and
a
former President of the New.York
New Sutro Branch
Distributed by
opened a
branch office at 86 Mott Street,
New/ York City, under the man¬
agement of Augusta .Shui Fook
Fung.
"
■
'•
*
AXE SECURITIES CORP.
Sutro Bros.
&
Co.
has
•
Society of Security Analysts.
-
•
GROWTH FUND
OF CANADA, LTD.
Stock- Exchange.
-
He
Co., 5 Broadway, New
members of the New
York
Director of
founding Governor of the Munici¬
T.
.
.
TARRYTOWN, N. Y.
26
(582)
The Commercial and Financial Chronicle
Balance Between Cash and Investments of 86 Investment
Companies
End of Quarterly Periods September and
.
.
Security Transactions by the 86
Investment
December, 1959
Investment Bonds and
Net Cash & Governmentst
Thousands of Dollars
Net Cash &
End of
Open-End Balanced Funds:
American
.
.
Business
Axe-Houghton
Sept.
,
Shares
Science
Boston
&
12.2
12.0
31.9
28.2
55.9
4.974
13.6
10.3
34.0
31.2
52.4
2,362
0.7
1.7
25.4
•23.7
73.9
291
6.8
3.7-
28.2
21.1
65.0
4,073
7,005
6,176
1,639
34.2
22.5
14.6
43.3
10,332
3.4
4.7*
P3.2
1[35.2
4,020
$63.4
4.0
2.4
9.5
10.2
86.5
10,013
12,388
6.8
8.1
24.9
22.7
68.3
2,791
1,442
2.9
1.5
25.7
25.6
71.4
290
4.0
4.1
24.6
21.9
28,702
71.4
29,112
2,192
14.6
14.4
20.4
19.3
65.0
21.0
21.9
21.5
732
926
6.8
8.6
16.9
1,503
33,092
,
1,171
6.2
4.4
11,059
2.3
0.7,
.
Investment
Investment
Fund———
General
Balanced
Investors*
Fund
Trust
1,917
Group Securities:—Fully Admin. Fund
Institutional
Investors
Foundation
Fund
Mutual..
Johnston
Mutual
„_
'
Fund
:
Massachusetts
Mutual
Life
11,844
14,522
586
9,131
11,739
7,292
8,581
69.2
2,454
4,772
2,057
6,157
3,737
72.9
1,967 '4v
1,520
1,967
1,509
:
.
V
33.2
634
7,097
3,927
1,919
2,061
-
$65.8
76,918
77.8
v'r; 78.1
1,129
963
4.3
92.3
94.2
1,584
16.8
57.2
59.6
27.3
66.2
66.5
82.9
25.3
23.6
17.5
3,565
6.2
6.2
27.6
1,375
4.5
4.8
12.6
12.3
82.8
964
1.5
1.3
13.2
10.9
85.3
1,830
2,600
87.8
1,781
5.6
5.3
2,220
36.5
35.1
57.9
59.6
3,446
17.3
22.7
22.5
2,063 V r
22.0
60.2
11,445
55.3
10,595
291
5.9
5.2
25.1
23.0
69.0
9,058
71.8
6,705
11.5
8.4
25.6
26.3
62.9
65.3
8,369
19.0
21.6,
22.8
9,381
20.8
21.9
21.0
6,682
8,313
27,666
*
14,248
924
967
1,337
1,584
1,337
4,544
4,381
3,649
2,673
1,926
872
1,086
721
2,835
1,928
2,324
1,084
1,418
1,809
927
1,256
410
530
291
931
9,037
1,232
8,176
4,324
2,219
>,
1,449
58.2
56.3
3,890
58.1
2
360
878
1,3991
58.2
;
862
2,105
22.1
20.0
•
637
1,134
...
1,612
1,736
1,150
1,181
§3.7
86.5
2,953
2,714
3.4
§95.0
1,551
738
3.1
7.5
5.9
89.1
161,685
91.0
136,772
16.9
13.4
4,168
2,850
25.0
4,587
1,551
3,569
24.0
58.1
62.6
402
4.2
3.3
42.9
58,638
12,562
44.7
52.9
52.0
290,167
9.7
8.4
22.4
21.3
67.8
70.2
904
_
Fund.
•
____
Fund.
490
Open-End
/
\;
56,786
:
17,693
Shareholders' Trust of Boston
493
$64.0
5.4
___
425
None
15.2
■
671
677
14.3
;
1,893
984
.79.5
"
180
959
523
1133.4
■
365
69.8
7.6
_
837
:
9,480
:<
79
3,422
580
V;
1.5
:
836
;
56.0
-
.
74.0
7.0■
Stein Roe & Farnham Balanced Fund
Value Line Fund
Sub-Total
$60.1
i:
3,360
1,211
(George) Fund—
Scudder, Stevens & Clark Fund
Whitehall
3,422
2.3
_
Securities
Wellington Fund—
2,374
916
1,108
Fund
Income
7,315
981
18,741
Fund
Putnam
Line
3,225
836
869
England Fund
Value
9,898
219
National Securities—Income
Nation-Wide
P3.7
v
74.6
75.2
57.5
...
1,137
y
76.3
16.1
,
357
4,018
f
66.3
22.1
10.6
None
3,363
87.4
21.6
•
1,349
4,086
.59.8
725
Mutual Investment Fund__
New
'
^
127
58.5
<
316
__
Knickerbocker Fund—
Loomis-Sayles
*
,
Total
Sales**
Purchasesft
Sales**
Purchasesft
72.3
13.1
!
Common Stocks
Total
Total
Total
Dec.
Sept.
534
__
Howard
Dec.
3.119
Dodge & Cox Fund
&
Sept.
779
Broad Street Investing.
Eaton
Dec.
6,445
Fund
Diversified
Sept.
Of this: Portfolio
Portfolio Securities
Other than Governments
End of———
3,178
A
Electronics—^—
Commonwealth
End of
Dollars)
-(In Thousands of
Grade Bonds & Pfds.
Percent of Net Assets
-End of
Dec.
Companies During
October-December, 1959
Com. Stocks and Lower
Preferred Stocks*
Percent of Net Assets
273
Fund
__
Axe-Houghton Fund B—_____
Axe-Houghton Stock Fund—
Axe
Governmentst
Percent of Net Assets
Thursday, February 4, 1960
.
Bal.
Funds
338,634
10.3
.
3.2
,
r
■
437
12,815
52,571
673
481
148
310
234,485
153,433
135,892
74,115
•
Open-End Stock Funds:
Aberdeen Fund
325
Chemical
3.9
None
None
97.8
96.1
583
585
583
585
11.6
11.9
0.4
0.4
3,657
88.0
3,762
87.7
11.25
8,894
8,894
11.0
10,924
0.6
0.6
88.15
10,475
88.4
19.6
2,669
10,924
2,270
18.9
1,434
1,115
0.2
0.2
3,777
3,276
80.2
3,498
80.9
1.6
2,776
1.3
2,094
5,428
97.6
4.0
11,446
8,964
6.0
4,716
4.5
i-V
96.8
2,776
8,279
2,023
1.6
109
3.9
91.5
19
90.1
0.5
12,239
10,902
0.1
11,316
9,603
3.2
3.7
96.3
96.2
2,726
2,561
12.9
2,726
2,561
5,039
6,980
6,099
5,039
27,303
6,980
6,058
5,896
;__
Fund.
Delaware
de
2.2
70,640
10,290
Blue Ridge Mutual Fund_____
Bullock Fund
638
65,047
Affiliated Fund
Fund
;
Vegh Mutual Fund
Dividend
Shares—
Dreyfus
39,520
13,113
None
None
85.2
87.1
b,099
17.5
8.6
None
None
82.5
91.4
22,282
15.7
27,303
13.7
None
79
None
84.3
67
86.3
1.0
6,856
0.7
None
None
9,897
9,290
Eaton & Howard Stock Fund—
35,604
8,216
23,861
__I
Fund—
99.0
28,062
99.3
1,449
627
2.6
7.0
1,449
2.0
2.0
95.4
9,338
91.0
1.6
12,195
1.6
25,495
9,586
23,552
0.1
0.1
14,686
Energy Fund,—
Fidelity Fund—
Fundamental Investors—
General
Capital
Group Securities
___
20,067
0.7
14,686
None
$$19,952
None
99.6
99.3
84
63
84
63
1.2
None
None
1,769
10,792
2,918
18,021
98.0
1,636
98.8
22.3
19.5
3,843
1,371
3,843
2.1
1.5
—
13,025
5,991
13,025
93.3
752
727
752
12.1
727
10.1
1.3
1.3
86.6
88.6
14,395
§5.2
14,518
2,428
10,516
§6.8
925
2,428
10,097
175
§92.9
§94.7
None
None
90.4
89.2
N.A.
N.A.
N.A.
N.A.
0.3
None
None
98.5
99.7
15,404
7.1
13,875
4.7
None
10,892
13,875
None
92.9
95.3
22.3
19,860
156
16.9
al8.9
19,860
10,892
156
al9.2
58.8
63.9
338
139
3.6
323
111
1.9
0.5
0.5
95.9
97.6
1.4
1.1
11,004
None
11,004
None
2,027
98.6
98.9
960
867
2,500
2,661
2,080
16,723
1,438
4,395
17,604
6.0
6.0
0.9
0.8
93.1
93.2
1,803
3.2
9.7
5.3
4.1
86.4
86.2
5,261
14,508
,
2,027
2,721
20,260
2C0
317
•
5,261
2,721
14,508
•
20,250
200
163
3,336
»■
1,084
18.4
16.7
2.2
0.7
79.4
82.6
3.8
2.9
3,336
None
1,426
None
96.2
97.1
1,457
9
1,457
9
94.8
10,040
6,588
9,735
6,588
91.4
91
16
88
11
5.1
3.5
1.5
1.7
93.4
206
5.6
5.6
3.0
3.0
91.4
>
11,613
16,130
5.8
7.9
1.2
531
1.6
628
93.0
90.5
5.2
5.4
6,809
1.2
13,983
1.8
$$5,729
913
Fund
93.6
1,165
92.8
2.5
810
3.0
392
810
0.4
392
0.4
97.1
96.6
1,155
i,592
954
1,577
7,181
_
15,143
1,681
13,845
9,068
I
;
.——_!_!
General American
6.5
87.1
2,095
89.5
4.0
4.7
28,915
1.1
1.1
94.2
6.0
4.8
1,280
3.4
8,360
1,278
28,824
94.9
11,428
2.9
1,259
90.6
1,278
92.3
8.201
6,637
1.2
4,109
1,637
90.0
95.3
11,589
V :'v99,l
4,216
11,589
]."1,920
4,279
8.8
3.5
1.2
97
3.2
0.9;
None
932
9.8
9.6
\
None
_
•,
96.8
,
4.1
i,458
88.0
86.2
2.6
3.6
225
97
3.1
32
97
2.3
94.3
94.1
445
580
445
6.6
475
6.4
2.1
1.7
91.4
91.9
650,225
285,258
8.0
207,979
7.3
270,125
10.6
10.0
81.4
82.7
5l 9,743
361,412
406,017
5,051
3,614
2,082
1,144
2,798
6,810
2,661
4,411
7.7
6.9
10.6
7.3
4,248
11.9
9.0
3,589
6.0
1.2
0.4
0.1
93.6
10,653
8.0
7.4
1.9
1.6
"90.1
V4.1-
8.7
2.3
3.1
2,491
5.2
2.9
0.7
0.7
94.1
96.4
19.3
13.2
None
None
1,251
1,447
1,251
80.7
1,447
1,820
86.8
5.1
4.4
1.1
2,239
1.1
1,038
93.8
2,239
1,038
94.5
767
968
767
2.4
968
88.6
90.8
626
626
3.4
1,387
772
89.4
89.7
1.6
1,964
1.4
1,588
87.8
1,693
1,588
91.3
868
0.5
0.1
868
87.6
2,100
1,178
$$951
1,327
10,681
Overseas
258,467
2,613
ia'rri
.
184,352
*
2,828
f~\n acq
"""
Securities—1"!'!^"
Tri-Continental
!_!"!
1,216
;:;;i,92Qi:
584
5,425
Fund—___!"~
1-1,597.
704,127
.
Niagara Share..
-
■
2.2
360,058
General Public Service..
r
,
5.9
5,569
6.8
5.4
2.9
*
93.6
-
90.9
1,178
98,7
9,621
7,697
9,621
7,697
91.0
15,953
18,331
88.3
*
2,231
1,158
12,132
3,026
754
11,295
2,435
895
1,045
895
1,045
5.554
'
~
754
Closed-End
*~2~.4
§8.8
§10.4
0.6
§(58.6
§77.3
11.633
2,544
10,991
9.5
10.3
88.1
10.0
89.1
9.3
None
9,897
None
5,860
90.0
6,666
79,195
90.7
None
53.254
7.4
1,705
None
6.0
2.7
2.7
1,705
88.1
90.4
783,322
Foreign Securities
48,285
703,479
8.0
7.1
45,209
9.5
39,534
38,751
*'
l!!
Companies.
Grand Total
9~,777
for preferreds
BB
Moody, Aaa through Ba
for
CHANGES
IN
S,?FHch',°
CASH
DECEMBER
irrespective
cent
OPEN-END
S'oc'<
COMPANIES:
Funds
CLOSED-END
31,
1959
gross
°%mEMB|TRM3CT19S9MPANIES
36, 1959
vs
Balanced Funds..,
Minus
10
assets
classification.
or
total
securities.
23
2
ffC'ost
preferreds
-
of
24
purchases.
Sin
per¬
83.9
cecds
New
from
York
568 028
sales.
State,
406,621
ffEstimated.
a
All
SSCwned
convertible
(or
**Pro-
BY 86 COMPANIES
SECURITIES,
DEFENSIVE
5
31
42
10
1
13
49
13
/
only.
OF
ASSETS
AND
TO
RISK
CASH
445,551
by
with
80
savings
warrants.)
AND.EQUIVALENT
SECURITIES
Total
7
'•
82.5
TIBonds and
stocks
^Common
—SUMMARY— AVERAGE ALLOCATION
,
..
9.0
(or approximate equivalents).
quality
Approx. Unchanged
16
12
COMPANIES
of
of
POSITION
Plus
Totals
7.9
$$13,730
393
"!!
Investors!!!!!
_
4.0
-
365,493
___.
Corp,
5.0
892
International
Carriers & General
Dominick Fund
13,608
279
Closed-End Companies:
Adams Express—
American European
Securities!"!!"
'
3,622
191
Sub-Total Open-End Stock
Funds
Total Open-End Funds
ferred s,„ckS:
,
4,753
1,004
1,161
4,913
Special Situations.———
Wall Street Investing
■
"*
Wisconsin Fund
__~
t
5,991
10.8
,
Line
Total
93.3
93.5
1.5
_
United Income Fund_
United Science Fund
&
95.6
None
~9! 6
••
Fund_„
United Accumulative
Fund—,
United Continental Fund.
U. S.
1,021
1.1
None
4.238
Fund
Madison
884
1.0
6.7
'
Stock——II—I
Street Investment——
Roe & Farnham Stock
Lehman
1,021
5.6
6.5
16,084
Selected American Shares
American
79.0
3.4
3,155
16,443
20,693
(T. Rowe) Growth Stock"!'
Scudder, Stevens & Clark—Com. Stk.
Value
75.6
18,719
1,371
817
13,482
Street
Sovereign Investors
.
*
23,290
Trust—!"!
Price
Texas
*
4,132
Securities
Stein
98.3
0.4
2.0
Investors
State
98.3
149
Massachusetts Investors
National
627
'
816
Massachusetts Investors Growth Stock
Missiles-Jets & Automation.
National
2,608
'
70
Investment Trust of Boston—_____
Lazard Fund
Street
•
:
1,285
Institutional Investors Mutual
Fund§§
Investment Co. of America
Pine
.
w——~
Incorporated Investors
William
14.8
Com. Stock Fund
Corp
—
Guardian Mutual Fund—
One
'
■
j
86
s
Net
1
'
cash, etc. and Governments
securities (investment bonds and
preferreds)
Risk securities (common stocks
plus lower grade bonds and
Sept. 30, 1959
80%
Defensive
Totals
9.5°
preferreds)
82.5
100.0%
Dec.
-
31, 1959
7.1%
9.0
83.9
100.0%
297,218
banks,
etc.
ii).
Volume
191
Number 5922
AS WE SEE IT
uct.
.
.
.
The Commercial and Financial Chronicle
Continued from page 1'
Nothing either mysterious
'V V
Department of Commerce regularly prepares and pub¬
lishes figures showing. Gross. National. Product (another
to conjure
statistic
with). It furthermore
removes
Gunn, Carey &
Our Reporter on
CLEVELAND, Ohio —The firm
name
of
Cunningham, Gunn &
(pre-
Inc.,
Union
Commerce
members of the Mid-
Carey,
sumably)' the effect of changes in prices. Thus we have
the total output of the country in what are known in the
BY JOHN T. CHIPPENDALE,
The
of the total number of "man
hours'* devoted to that production. All we need to do is to
refunding issues, namely the
4%.% certificate and thq
four-year nine-month 4%% note*
are being fitted smoothly into the
/
?
one
to use two estimates
near-term
working one hour; From year to year the
relative proportions of the various industries in the total
of the output of the nation vary. Over a; considerable
period of time the variation is immense. A vast change in
such a productivity index may be due wholly to different
product mixes in the two periods that are being compared.
In any event the figures as thus computed come down to
averages of highly heterogeneous materials, which as any
statistician knows, renders the result without very clear or
distinct meaning.
Conceded that this overall figure of productivity is
less commonly in use than figures relating to particular
segments of industry and trade. But for the most part—
we had almost
said never—are many of the same diffi¬
culties or ones quite similar found absent even from the
less ambitious statistics on the subject. In the first place
attempts to measure output in any very meaningful way
for such a purpose is fraught with great difficulties even
in these segmentary figures. This is particularly true when
man
comparatively short
periods of time. Of course, over longer periods of time the
task is often all but beyond human reach. How many
model T's would be the equivalent of a Ford motor car of
today? Or for that matter how many of the heavy and
highly styled cars of just a year or two ago must be re¬
garded as the equivalent of a hundred of any of the com¬
pact cars of today. Yet some sort of answer, direct or in¬
direct, must be found for such questions if "productivity"
in the industry is to be compared this year with even 1959.
/ / But even if a reasonably accurate and intelligible
figure could be computed to show the productivity of any
industry or of industry taken all together, other problems
of a major sort would remain. It is all but certain that in
most industries the output of one man working one hour
is much larger today than it was, say, in 1900 or in 1910
or, for that matter in 1940. This much may be taken as a
fact of ordinary observation quite independent of any
elaborate statistical computations. But why? Obviously it
is for the most part a result of improved equipment, and
Techniques of production most of which have required the
investment of large sums of money. It would be absurd to
suppose that a farmer, for example, could produce no
more wheat per hour of labor than in the days when the
planting and reaping and the cultivation was all done by
hand or by the use of horse drawn equipment. But every¬
body knows that it requires many times the capital to
comparisons
operate
man
a
are
made
over
time,
even
farm today, and no one supposes
provides
any
that the hired
money
quite
There are, of course, many
other factors which haye
do with the productivity of any industry, and, in
particular, with the changes that occur over a period of
years. But enough has been said to make it plain as a
pike staff that one must not suppose that gains from im¬
must all be paid out or should
be paid out in wages to workmen who probably had very
little to do with the improvement. If space allowed, it
could be shown that under a system of free competition
the benefits of such improvement would go automatically
where they should go—in part to him who is responsible
for them and in
part to that forgotten man, the consumer.
We find little hint of an understanding of these facts in
far
that
has
re¬
taken
is
concerned. : In
also
there
holders
of
Carey
E.
Clemens
No
had been doing their own
refunding through purchases of
already outstanding securities.
Gunn
Stock
west
Exchange,
has
been
The
changed to Gunn, Carey & Roul¬
Principals of the firm
E. Gunn, Walter J.
Carey, and Thomas H. Roulston, II.
kets
Clemens
Mr.
Gunn
President
as
of
Exchange
However,
in
1949, the last year of its exist¬
Cleveland
and
served one
terms
of
He
Governors.
service
on
of
the
re-
group
of the I. B, A. and is pres-
ently
a
of
the
Roulston
with
Paine,
Curtis
a
as
tive.
Webber, Jackson &
registered representa¬
He
Gunn
formerly
was
&
joined
Cunningham,
Carey, Inc. in April of
1959 and was elected Vice-Presi¬
dent and Director on Jan.
He is
of
4, 1960.
member of the Bond Club
a
Cleveland.
a
of
than
serve
have
been
a
one-year
credit.
both
the
weeks.
The
of
influx
MILWAUKEE
of
is
as
an
far as
concerned.
inflation
psychology has also been a factor
in the improved demand for
into
funds
sector of the
The
development
market
bond
the
most
near-term
of
action
the
the defensive has not been
unfavorable
it did in the past two
as
availability
the
addition
In
equity market which has been
on
obligations if
had not im¬
market
proved
Appoints V.-Ps.
in
change
on
not there will be any
or
February
used
refunding
Board which will determine
whether
on
with
1
a
around
with
money
Loewi & Co., Inc.
in¬
passing amount of opinion
that higher interest rates
would
not
appreciably increase
the supply of money and credit. It
is the policies of the Federal Re¬
the inflation
and
a
the
fixed
time being. There has been more
four-year nine-months
a
47/s% rate was
a
these
the
r
all
rate will not be increased for the
which
would
for
the
well
prime bank rate and the discount
upon
shade(lower) under the cost
the
money
market had
been looking for.
It appears to
be quite evident that a 5% coupon
just
market
as
the course
action of the
April
both
note
and
the
trend
and lVz's coming due
issue and
market
money
fixed income bearing
for
and
which has
bearing obligations appar¬
ently can be attributed in some
measure
to the feeling that the
Treasury offer to refund
nearly $11.6 billion of 3%'s
the
Key
come
Latest Refunding Offer
15
Club of Cleveland.
Bond
Mr.
Secretary
and
Governor
be
in
the
as
The
Ohio
Northern
this
of
bquity market,
psychology,
years
of
Executive Com¬
the
mittee
of
will
there
not
or
tone
government bond market
to
as
in
Rates
improved
ernment
concerned,
was
answer
depend
business, the
two
completed
cently
the
issues will
of
Vice-Chairman
as
Board
the
market
on
whose board he
term as Governor and
Exchange,
two
whether
Stock
Midwest
the
of
formation
Treasury
continuation
the
instrumental in
was
the
Expected
been in evidence in both the gov¬
far
as
Interest
The
has
the recent refunding operations
as
the
which
tone
favorable force
a
Stock
served
of
ence
was
again until
is
an
un¬
there
Interest
been in the money and bond mar¬
ston, Inc.
are
improved
mar-
33/4's and the
lV2's
J.
Walter
new
unless
in*
to
be in the
expectedly large attrition in the
Treasury refunding; If this should
happen there will most > likely be
a new cash offering in February.
other
indications
are
the
for
April
of
the appeal away
the so-called "small in¬
as
cases
lessening
bonds.
Customers'
pushed down the yield on the
liquid government securi¬
ties so that the Treasury was able
Brokers
Special Forum
mar¬
ket
the
of
The
Customers'
of
Association
Brokers will hold a
special situa-
to offer a 4%% certificate at $100 tions forum on Feb. 9 at 4 p.m. at
and a 4%% note due on Nov. 15, the new headquarters of the New
*
*
" "
~
1964 at $99.75 to the holders of York Society of Security Analysts,
the Treasury 3%'s and the 1V2% 15 William Street, New York City.
announced that the notes coming due on April 1,
Victor
J.
Wis
Loewi, President of Loewi & Co.
Incorporated, 225 East Mason St.,
members of the New York Stock
Exchange, has
Board of Directors
William
C.
Murphy
and
Elwell,
have elected
Willard F.
Robert C. Sullivan,
1960.
Speakers
■
The shorter of the two refundobligations
ing
tailored
was
to
A?CeAwSil1enwS hlianwYth19the meet thn TdS/ °£ the^edT\?eMr.
Elwell
has
been
with
tne
Banks
(even though they
serve
is open to
John
at
organization
J. Dunphy,
rence & Sons; R„
maturing obligations who do not
need a short-term security such
as
Coast Inv. Women
there
are
who
were
vestors
Elect Officers
,
;
the
certificate.
4%%
the
dition
3%'s
not
1V2'S
and
a
In
ad¬
in¬
few
which
Cyrus J. Law-
Thomas Sour> w.
,,
r
Tucker Anthony &
Specialists in
U. S. GOVERNMENT
of
holders
not
which
Co., and John C.
since
Co. since 1953.
forum,
the
members only, will be
1947. might take some of the 47/8's due E- Hutton &
Mr. Murphy, manager of the Chipjn 1964 for maturity lengthening Maxwell, Jr.,
;pewa Falls and Eau Claire Offices, purposes) who were among the R.L.Day,
has been associated with the comiargest owners of the maturing
pany since 1956. Mr. Sullivan, in
issues As for the 47/s's due Nov.
the Loewi Corporate Finance De15> 1964> this note should have
partment, has been with Loewi & attraction for those owners of the
Loewi
"
are
refunded
that were at¬
tracted to the four-year and ninemonth 4%% note. It is reported
and
being
FRANCISCO, Calif. — Miss
Marcia E. Wolfe, a member of the
investment counsel firm of Dodge
SAN
Cox, was elected President of
Financial Women's Club of
San
Francisco
at
the
annual
with
institutions
that
federal Agency
available
&
funds
the
4%'s due Nov. 15, 1964 since this
She succeeds Mrs. Alice
Williams, of Dean Witter & Co.,
meeting.
T.
investment bankers.
Bank
Miss
Sue
was
Hill,
Barron
chosen
Arrangements
Charlotte
Smithers
and
of
Fennell
De
&
of
Kaiser &
Chairman of the
Mrs.
Committee;
of
Hooge
F.
S.
Co. Chairman of the
Membership Committee, and Miss
;
Lillian
&
Co.
lations.
^
Eklund of Wm.
Chairman
note
of
TD
CI
+
R. Staats
Public
Re-
been
buyers
of
the
securities
them a satisfactory
the four-years and
nine-months maturity meets the
gives
and
yield,
for
which
most
of
them
have
non-refundable
obligation. In addition, this is a
direct
government
obligation
five-year
a
which
the
sure
with
that
means
it
will
it
be
paid
either
date
another
represents
available.
credit
best
maturity
& Co. Treasurer.
Richards
Co.
Secretary,
Co.
Genevieve
Mrs.
Halsey,
Ann Shea of
&
Stuart
Mrs.
elected Vice-President;
was
Mary
have
desire
Miss Ann Healy of Wells Fargo
provements in productivity
current official discussions.
obligations
bit
a
vestor"'
of that capital!
much to,
according
ket
funding
the methods of
one
Treasurv
Lt
as
by
The
dications wiu
interest rate of 4%% for both
which must be compiled by human
And since
computing "productivity" require that we
compound errors that inevitably creep into such estimates,
it is easy to see that productivity figures so compiled must
be taken with a very large grain of salt.
But, of course, this is not the only reason for skepti¬
cism. One may easily guess—and he would be quite right
—that there is a great difference among the various
branches of industry and trade in the amount turned out
significance in the recently
completed refunding operation. f
some
intermediate-term
and
sectors of the money market. The
beings who -must-"guestimate" a very substantial part of
the final figures. This is hardly the place to dissect such
current statistical composites — which obviously can not
hope to be more than roughly approximate.
5's." On the other hand, these
commitments did play a part of
oner-year
by the other, and, if we want index numbers, /
convert the result to a percentage of the "base year."CJust •;
as simple as that-..'V.I '-'-'-f;
'/ '"/But wait a minute! First of all we*are thus instructed .
divide
JR.
Building,
jargon of the trade as "constant dollars,? Another office/
of the Federal Government, the Department of Labor,
makes and prepares estimates
27
Roulston Formed
difficult about it. The
or
(583)
be
To
at
off
the
in cash or
obligation in
a
re¬
operation, but who can
tell by that time in 1964 but what
funding
interest
rates
may
than they are now.
not be higher
The so-called
"small investor" has been
a
buyer
AtJBKEY G. LANSTON
& Co.
INCORPORATED
20 BROAD STREET
NEW YORK
of tRe refunding 4%'s with the
☆
in
CHICAGO
the
emphasis, on
maturity,
this
but
instance
the
were
November
purchases
not nearly
15
as
heavy as they were in the "magic
☆
☆
BOSTON
28
(584)
The
bility
Do We Need
Change in
Federal Reserve Policy?
Continued from page 5
restriction.
by 20% in less than a year, hous¬
ing expenditures jumped by 50%
from the beginning of 1954 to
the
the
business
avoid
most
the
of
end
1955.
beginning to
There
thus
was
culation
of
tremendous
a
bunching
and
of
business
both
goods spending within a relatively
short period of time, '
; • •
.
Need
for
cyclical bursts in durable
goods
spending
two
undesirable
are
reason^.
First, since du¬
rable goods buyers normally with¬
draw from the market for quite
time
after
the
instal¬
in
ment,
these
industries.
than.; 7-million
more
car
The
year
in
1955 affords a good deal of the
explanation for the mediocre auto¬
mobile sales of the
following three
The 1,350,000 new housing
years.
units sold in 1955
were
enough to
explain (quite apart from the ef¬
fect of later tight money) most
of the
dential
subsequent slump in resi¬
expenditures..
A second
reason
why such bursts
of
spending are undesirable is that
they lead businessmen into overoptimistic capital expansion plans.
This over-optimism is based part¬
ly
on
into
unjustified
an
the
future
high sales of
of
given
a
projection
the
unusually
It also
year.
arises, however, from the failure
to realize that, while
capital ex¬
pansion is under way, consumer
incomes
and
consumer
spending
are
being expanded through the
increased employment associated
with the capital goods boom. That
is, the rate of sales expansion
•
which leads to the capital
expend¬
itures can be continued
only on
the assumption that capital ex¬
penditures themselves continue to
'
rise.
Following the cyclical burst of
and capital goods
spend¬
in 1955, there was of course
bound to be a day of reckoning.
Early in 1956, despite the fact that
consumer
ing
the
economy
still
was
booming,
capital expenditures were still ris¬
ing, and employment was still im¬
proving,
consumers
interest
in
significant
not
suddenly lost
durable
fact
regain
is
their
goods.
that
The
they
interest
did
in
du¬
rable goods until three
years later
during the growing boom of 1959.
Housing
expenditures
also
fell
sharply early in 1956, partly be¬
cause
of the increasing
tightness
of
mortgage money but also im¬
portantly because of the unusually
high sales of the preceding year
It
was
at this juncture that
plant
new
had been
vious
and
large
suddenly
was
the
realized
capacity
that
leveling off
and decline
in capital
spending,
coupled with continued consumer
disinterest in durable
goods,
of
sequence
typical
business
learn
events
cycle of
in
the
stabilize
and employment is
which is taken early in the
boom, at which time the seeds of
both inflation and
cession
even
and
the
are sown.
subsequent
This
though prices
unemployment
above
con¬
rable
goods themselves.
But it is
also
heavily
mum
two-year term for
influenced
by the
consumer debt position
of poten¬
tial buyers. I believe that a maxi¬
credit
would
not
reduce the total
of consumer credit
period
a
of
consumer
extended
but
years,
over
would
postwar
will
we
means
are
is
re¬
that
not rising
more
stable prices and
constant growth of the econ¬
omy.
Finally, it is
corollary of
a
thus far that
argument
eral Reserve should
the
Fed¬
credit
ease
as
stages of the boom are
reached, even though prices might
be rising at that time.
When it
does so, it will release to the mar¬
early in the boom
appropriate Federal Reserve
policy at that time is
one
of severe
made
'•'An
the
address
by
Policy
Credit
American
Bankers
,,To
sum up my
First
most
federal
rected
current
Reserve
the
at
attacks
on
are
di¬
agency,
and
the wrong remedy. It is
not monetary policy which has in¬
propose
hibited
our
and price
growth rate, but wage
The deficiencies
policy.
in
our wage and
price policy can¬
not be remedied by
any monetary
policy
It
restrictive
thus
is
f ederal
or
senseless
Reserve
inflationary
to
for
attack
these
the
defi¬
ciencies, and equally senseless to
imagine that they can be remedied
Ira
Dg the g°al of stable
Second, apart from
ficiences
which
these
require
de-
changes
sphere of monetary
nnr
policy, Federal Reserve policy
be
if greater
improved
can
emphasis
hL
nf
0n a deliberate slowing
eL°ping sta£e of the
j
through
a
very
restrictive
fhl ? lcy* longthe laterthe
,In before stages
boom,
the
ap¬
of
an
outright
decline
business activity, credit should
be eased to
bring into the market
the
potential
check
policy.
demand
should
in
be
monetary
steadying
money
policy
early
in
prices
are
that
the
in
not
the
may
such
effective
a
in
on
smoothing
output,
a
tight
being
employed
boom
being
boom
be
an
I
would
though
believe
prove
achieving price sta¬
be
some
foolhardy
McKinley before
Commission
of
the
boom
Chicago,
have
assume
Ira
Haupt & Co.
offering today
are
potential
be
an
But,
not
the
issued
and
at
and
Sons,
York
in
various
be
it
part¬
such
tion.
communities
The
may
in
engage
in
the
the
have
During the last
on.
financial
Long
and
from
000
homes,
the
in the
area
were
town,
The
N.
1946
to
Y.,
then
of
scale
which
17,311
from
company
is
homes
1952
now
Levittown, this
ton
County,
planned
000
to
.
homes.
a
new
were
com¬
1958.
The
a
third
Burling¬
Jersey,
a
some
16,-
In
addition, it ex¬
building soon
in
northern New Jersey and in
Mary¬
pects
to
be
land.
B. C. Morton NYC
B. C. Morton New York
City Cor¬
poration has been formed with
offices at 10 East 40th
Street, New
York City, to engage in the secu¬
rities business.
and
terms
course,
have stretched' out
to
of ;
bank lending :and
be.watched carefully for
depression. If
loans, /for
we
ex¬
should have
administration by
It is possible that sbme
^IZlg °Ut charge
of repayments
mteregt
and
tight
new.
experience
do
to
our
of
this,
be
pe¬
able
to
custom¬
our
we
will render
consumers
own
and
lending
ground.
the
present
also
business
time,
seems
in
be
areas
prol?nveri^?"l resulting from
?
strikes or adverse local
conditions.
Broader, Positive Approach
Now, let us take a broader
positive
forces
>
approach.'
nil,0 bJr .reahstic,
we must recog-
market
Pr0flt motive will
and
orovid'p
P^?1vlde, the. main forces
will determine the
which
lending
and
Howe^?nth PtaCtices of bebanksbankers will
•tiowever,
oas-
mI?kyetPfomlalf0ng by imPers°naI
.iarKet forces, for
the
on
Zhlt
sunnlv
their Judgment of
whatlegltlma!e in fact lending
bank
what
not
of
and
■
is
which
is
one
must'operate "but
banks
polfciesaVAtr00m *°r lightened
are
^
opportunities;
and i{ Is to
that°Sbankers°ng 'heSe aIternatives
contribute to
ment
ran
a
nomfc growth.^ SyS'em and
There
is,
however,
one
eco"
verv
wise
They
cannot
level
of
levli
K
i
bank
reviewed
regu¬
reason-
able
hankers,
determine the total
credit available to
the economy, which
in boom
riods is influenced
so
to
thoroughly
larly, and there should be
^ntroiantnf eleTnt beyond
kind of monetary
applications
screened
should
flexibility ' gained
-
needan^ Potential of this
credit.
Then, if it
in
styalmennterfo»n managing their instaiment- loans
hit bv
consumer
money
so.
safe
loans
adjustments
policy.
anagSregate
pe¬
directly bv
Nevertheless^
amount
of
,/ 'is the function of
who seek /i
/6 '} among those
.function, banker"
dear? thiS
banker??
are
skou^ always bear in mind
constructed.
New
community of
• •
we
which
as
built
in
-
accommodate
fuij 1 Program,
snould
be
,
of
is used
Levit-
of
building
one
one
restraint used in
advertising
and in other forms of
promotion.
community in Bucks County, Pa.,
known
as
Levittown,
Pa.,
in
pleted
no
checkcredit plans and other
types of
revolving
credit
have "become
popular in many localities. Bank¬
ers
should
study carefully the
150
Island, N. Y.,
1951, over 20,-
were
company
to
welfare
we
At
com¬
larger
bulk
credit,
should
we
service
keep
built
homes
the
known
If
ers.
-
on
lending in
sound
in
even
com¬
building 2,350 family homes in
Norfolk, Va., during 1942 and
1943.
Following the end of the
war, the company continued con¬
struction
able
for
continue to do
a
construction
much
a
been
and
about
war,
commenced
expect them to
bank
consumer
demands
-credit
City metropoli¬
of
can
have
Fortunately,
on
upper-priced
tan area, on a rate
houses annually.
homes
We
loans
prevalent than
..We can make a real contribu¬
tion, in this area by
avoiding ex¬
manage¬
cesses
and
bearing in mind the
prior to World War II, the
and its predecessors
in the New York
term
more
legi¬
na¬
Beginning in 1929
and
•
6S.tate ?redit' of
term loans
more
engages
pany
middle
credit—
warning.
timate needs and when it
with discretion.
ment, operation and development
of, and investment in, all types of
real estate.
of
on
would
now
deny its economic
usefulness when it is used to
per¬
mit consumers to meet their
company
also
company
and
prominent in
largest builder riods, and
the
of
areas
words
credit,
As for
on that land residen¬
is
comment
future, and they will require
careful watching.
beginnings
The
to
the
sylvania, and it- is engaged, di¬
rectly and through subsidiaries, in
thb business of
acquiring and im¬
proving sizable tracts of land and
believes
Vi
areas.
Credit Warning
banking, con¬
instalment credit, real es¬
formerly.
or¬
danger
np?.?ehwflexU>ility is not entirely
We may profit from
the
in new
:v" :•'"•
commercial
tate
in 1929. It is also
qualified to do
business in New
Jersey and Penn¬
communities.
some
bankers.
cer¬
reappear
like
few
sumer
successor
corporations and
their
real
a
.
economic
of
become much
the
as
not
specific
a
In
Incorporated
make
if
look ahead
hlThtft eCOnu°Tic reverseS> it may
i5UCbuitypes of credit will
We must be
:
some
are
corporation
1938
do
should
with
company.
and
New
a
20's
I
Levitt, President and Di¬
Levitt
in
grow
of credit.
Areas
of Wil¬
we
r
call for flexible
defense—should
activity, risks
areas
guises.
already
outstanding
rector of the
can-be
As
cnm
some
of
are
to
may be necessary.
a
None
being sold for the account
liam J.
hest
our
tends
overly optimistic,
overbuilding homes, apart¬
ment
buildings, and offices in
credit structure that will not
a
the
600,-
Sons, In¬
stock
shares
security.
boom
our
in a
They
develop
Our goal
to
us
a
-de¬ ample, havemot really been tested
are
certain that the unjustifiable risks
and
the speculative excesses
of
the proceeds from the sale of the
stock
will
accrue
to
the
com¬
as
of
there
need
crisis.
or
permit
A
people
collapse under stress.
associates
(Feb. 4)
share.
per
these
and
serve
but can involve
.which should be
an' that reason/ Term
case" of
ultimate defenses
our
sense
re¬
central
our
in
emergency
false
tain
and
capital
$10
at
used
also
purpose,
incautious.
no„
mod¬
financing
the
deposit
tremendous
a
to
tremendous
loans
'
Experience has shown that dur¬
ing periods of expansion in eco¬
000 shares of Levitt and
of
guaranties,
mortgage
dangers
most
is
loans
construction
useful
in¬
loan
significantly
decade for repair and
ernization
avoided.
been-en¬
government
and
discount
nomic
or
have
we
insurance, and
a
Capital Stock
of
to
We may all
agree that 10 years from now our
economy will be vastly expanded,
should
Offers Levitt
to
indeed
joying is permanent.
in
Dr.
easy
employed
even
rising.
policy
though
even
rising, and
policy
money
policv
placed
and
prices
in
by the earlier tight money
In other words, primary
emphasis
later
held
Interim
emergency.
Haupt & Co.
pany
prices?
eliminated the business cycle
and that it
is difficult to chart
the future accurately.
We would
be
tial
policy
wrong
maintain rapid
care¬
lending
growth of their communities
Furthermore, the potential in the
not
We
through
mortgage
? contribute
can
next
that the
general,
realistic
recognize, however, that our
so-called, built-in stabilizers have
—and
constructing
remarks:
prosperity
in
the
sustained
but history cautions that we may
have some ups and downs in the
we
"meantime.
111., Jan. 22, 1960.
during the developing stage of the
boom.
At this stage—and at this
stage only — I believe that in¬
Summary Conclusion
slight lapses—one of
periods of
in our history.
We
some
longest
must
.significant
a.
Association,
nerships having
output, and employment.
ful,
signed to be
is
Banks
.
experiencing
credit
growth without inflation.
place the potential demand
which it has held tightly in check
sales,
have been
bank—to
ganized
creased credit will not feed infla¬
the
entire economy to
ket
tion but will serve to sustain
—with
surance
pany
my
later
the
consumer
We
contribution not only to the ef¬
ficiency of the consumer credit
industry, but to the ability of the
price
somewhat
normal
have
corporated
more
ex¬
60's.
economy.
If
able to smooth out this
growth,
are
tribute
to
credit
type of credit during the
period.
A steady, con¬
greatly reduce the instability of
this type of credit and thus con¬
in
Puriod? 1 think the first
Z Z teamed is that the
effective action to
Pur.lces
+
low
purchases. The
cycle of
consumer
purchases is related
partly to the life cycle of the du¬
pearance
f^ha.lcan monetary policy
trom this
that
of
reduce
a
sistent growth in
is good for the
that
mean
ride out only
year
24-
a
not
of
any one
sumer
thus
sssfrsr wayfor
most
following
over
ized this
•
Jq!L
i»oo.
the
normally
economy need
,
been led to construct on
45? °f uhe burst of sales in ifr P+uC
The subsequent
+»Jeyu
purchases in
would
the
pre¬
began to come into
By the end of 1956
operation.
businessmen
how
equipment which
building during the
year
the
of consumer
year
will
amount
period of years, but
will moderate the great surges and
cutbacks which
have
character¬
to./.set; minimum
and
maximum
consumer
that
me
maturity
total
tended
tight quantitative
through open market oper¬
ations, it may be necessary in the
future to give to the Federal Re¬
for
with
agree
month
In addition to
maturities
of
be to reject them. I hope that
greater consideration, many
will
making, a .pur¬
ment loans. As an alternative
I
chase, the sale at a given" time of
recommend a Federal statute stip-<
a high
proportion of all potential !
ulating an absolute and unchang¬
durable goods buyers will result
ing maximum term of 24 months
inevitably in a subsequent sharp
for consumer credit. With a maxi¬
drop in sales, output and employ¬
mum
two-year loan, a bunching
some
Continued from page 3
credit.
consumer
proposed changes
worth study.
The initial re¬
after
Control
cown-payments
for
may
Qualitative Consumer
serve^ power
A Credit Structure
statute
bankers, interested in
the promotion of consumer credit,
t
•
.
these
action
at such
k
Federal
a
think
are
control
Such
for
to
expenditures
occur
.
.
fixed maximum term of
a
months
I
time.
a
durable
business
likely to
are
*
consumer
order
recommend
24
the bunching of con¬
purchases and the miscal¬
which
the
I
placing
both
sumer
from
in
Thursday, February 4, 1960
.
progress
program to reduce
a
.
.
cyclical bursts and subsequent re¬
cessions in spending and output,
a
advance
orderly
as
.
As part of
policy would
intentionally slow the rapidity of
middle of 1955, and busines capi¬
tal goods spending soared by al¬
25%
Such
well
as
in output.
a
Commercial and Financial Chronicle
tnat
the
to
extent we—and
lenders—provide
sumer
avoid
con¬
excesses
will demonstrate that
operate
wisely
and
we
we
consumer
instalment
yeYrl^in'the'jm/t'two decad™s°"we
controls.
With
reference
credit,
lending
vastly
altered in
in
operations"'6
can
efficiently
without
credit
Tf
other
legitimate
credit and
sponsmefor
part
at
to
terms
real
estate
have
recent
ing
allowed
to
grow
been
decades
least
because of the
influence of govern¬
agencies.
In this area of
i?
f»
hkeniihrdU1hatkemoThetre 'S
fb6~
every
policies and
ment
credit,
we
need
to
reappraise
lending policies. It is true some
lenders
ing
go
down
increase
are
°n ?Pvide us with such
for "roil S/PPly ?s
necessary
to extremes in lower¬
payments, extending
maturities, and raising loan-value
ratios.
many
-
But it may be true
commercial banks are
that
err¬
ing in the opposite direction—too
cautious
and
too
conservative.
ings deDos
eeS
t
nieSsavtheir 3
Mr££
commercial banks
may
n?fadd
to
Volume
191
Number
5922
total deposits in all thrift institu-
.
The Commercial and Financial
Chronicle
.
.
est Rates."
It
merits
greater dis-'
rrn
it
will -give
commercial. tribution among bank directors
bankers control of the disposition
i-offieers,-employees, and customof more funds. In, any event, it is* ers. The distribution
has
J*
clear that bankers for some time been substantial and
is
tions,
Already
able credit.
-
r>i-
,
T
,
-
;
illuminating
■
Criteria in Rationing Credit
booklet
•
eludes
widely
as
manufacture- of
possible.
cabinets
1
-
and
criteria
we
In
conclusion, I should like
VA
and
nessimistie
outlook
appraise
can
we
loan
our
view*
uZ/lthoughl
facing
vidmg credit
advertising—is developing
aaverusmg-is developing
in
growth,
A
'
^
+
«.
of
credit-risks
relations.
tomer
volves
risks;
and
calculation of
c^mpanvVproducts
The
-
t" its
y :P }*
pld directly
our
*
-
dealers and
..
.
,
pn+
partment,
y*
.
...
77T
the
/./..
.
strong dealer
a
u
or-
and
appliance
Thus
stores.
distribu-
tion costs have been maintained at
t
rcreed?tngConfereSce
National
music,
furniture
^
12th
tilC/I
111
<T
sorted, collated, filed
the
system's
it
is
realized
that
great
ordi-
an
„
Tjr
storage caDacitv and
storage capacity and romoactness
^compactness
become
even
more
impressive
when
T-Toyv1t7 Jpr c*r\
lldlUj 06 V/U.
Tn
<„hvi whiph
V* A.V**
U^/VVV*
be
can
selected,
_
,
MlUSK V "PflrtUPr
,
„
'
^
on
.
~
been
•
,
.
,
,
low level. Magnavox is the
a very
theil firm.
,
a
Mr.
smaller, lower cost and modified
data processing system known as
Minsky
his ca¬
began
"Media" which could be of assist-
Wall
in
reer
Street in
WAlVOV
potential borrowers::
'
Appraisal of risks and customer-.
A m AC
require close atfen-'-^IIlUo
relations will
to
tion
the
inventory and
discount
Vi*
placing
cern's
~ w -VI
permitting
manufacturer
and
full
Co.
&
in
with
1926
i
r em a
high value
a
Sam
dealer
the
on
and
ups
-
con¬
franchises.
tulll
prises
-
airborne
communication
:
-
systems, airborne fire controi rareally tight, there may have to be
Amos Treat & Co. and Wm. Stix dar
equipment, anti - submarine
some
scaling down of loan re- Wasserman and
Co., Inc., as co- warfare
equipment
components
quests.
;
Managers ot the offering group, for missiles and satellites, business
Third,
bankers s are. igoing
to*announced that their offering on data
processing
equipment and
have to avoid laxness in
credit"Feb. 2 of $750,000 of 6% convert- other highly
specialized
instrupolicies. Certainly,.they must fe- ible
subordinated debentures, due ments. Magnavox, a leader m the
frain
ffom-^a -competitive-t'rat Dec. 1, 1969 and
95,200 shares of anti-submarine warfare field and
race" in easing credit
terms.. But class A stock, of Telechrome Man- underwater
detection
research,
it will do little good for
commerufacturing Corp. has been over- has built numerous types of sonocial bankers to adhere to
sound
subscribed and the books closed, buoys and detection equipment for
policies alone. All other lenders The debentures were offered at
many years. Among its newer dehave an equal obligation.
:
100%, plus accrued interest, while velopments is a system which corFourth, bankers and all other the class A stock was
priced at relates
intelligence
information
.
lenders
(
,
w
.
should
r.
consistently
-
.
in mind
beor
the need to preserve the
iv,
v
in
vi
uwu
vw
v
$10.50 p£I* share.:
0,50 per SllSrSr
-
■
.
financial .health of the
Net
-
uiubccua
proceeds
iNCl
^
*
-
i.
»•'*
•
from
^
the
-
-
from
JLrUHl
.
oaiv
various
Vctnuua
v/x.
-
and
sources
UIVCO
jj^xhuvj
permits
auu
#
,
•.
borrowing "the debentures, and class. A stock
customer,. This will .protect,.the: will be
used by the company for
developed an advanced airborne-,
lender and be. a real, contribution;
various., corporate'.purposes, Urn- communication
apUneconomic..growth...
•the retirement of. shorts Pears
eluding the retirement of short-P^ars destined to _replace many
aesunea io replace nmu^
a
^tem.«dnck
..
Inevitably,;
monetary
bankers
and
our
will-; be
managers
con
•
term notes payable to banks;
payment of the balance of'
-
tcHexplain;
°"l ^
forced'
forced
-
the
presently used airborne
the
ideation
-
himraft
•
instruments
qbh
commu-*
in-manned
cfniHpH
dehfensive' and Purchase price for 50%. of the isany, one
to
Gov-
ex^s
why
should be
denied; credit; Oneway 01. ine nammariunu maimiauut^ay oftThe Hammarlund^ Manufactur.^
lazy;, banker ;to respond: is. ing Co., Inc.; and for additional.^
to.say, "Well,-the Federal Reserve working
capital.
;
.:
: •:
'
thinks
the, expansion of credit,Telechrome
Manufacturing
should be
.curbed,: and there is
Corp., with its-executive offices
nothing we can do about it." This a n d
principal engineering and
sort of
passing the buck" should
manufacturing facilities located m
be avoided by all
bankers, be- Amityville, Long Island, N. Y.,
cause
it does^. not give the bank
is engaged in the manufacture and
for
customer
insight
creau
credit
the
run,
in
reasons
conxroi
in
control'in:
i
long
it
in the street
any
or man
into
1.
11
^
u
ices Ave can
basic good
A
little
-jme
some
to
tne
the
.11
A/
better
in such
sense
earlier,
I
off
f
j
'.•11
which
exposed in
uuu
OI
course
all of
tnese
i
n
the
Orf
sid4
what
the
most need
trol
equipment.
the
por
three
of
is
.dass?B,.stock,%
able to sound national
growth and
v
cesses and the
mum
'
of ;
1
can
credit
ex-
—
'
—
1 i
J
be accomplished
only through conscious and contmuous policy decisions aimed-at
these
-
objectives.
' bankers
many
knowledge
why
our
and
goal.
and
how
The
; need'
large
large
net
a
-
doubled,
been
laboratories
research
resccticii
the
in
and
cinvi
development
ucvciu^uuiv
when
**V
work.
theipast^eigW years
?
ended. jnne'sn, 1952 to'$90
June 30,. 1962 to
as.Manager.
1959.
the
tions
changed to
basis. Total 1959
company's
fiscal
were
year
U
.
624 000
Beginning
1960
.
a
fmn
ixritPi
ohm it
counted for
t\\7 r\
with
calendar
estimated
an
by^consumer products
and
and^.indusmal ^lectromc. items
-—
v
from
$1,343,000
share
the
for
30^ 19M
or
' \JX
v
—
or 57 V.V.XICP l^/Vl
cents per
fiscal year ended
yjl
KJ
<
VaUg^'$3*5M^
$1.60.per,share for fiscal
J^v.1
U1JUK
ip X ,\J\J
V
4.AMV.V**
1957 based on the present number
based
of
*
:
'
.
pvpp.itivp
Columbia
of
common/shares
"outstanding,
ended June 30,
For the fiscal year
1959 net income was
ripvpl-
e*f^e dev®J_
iq60gbv
_f
ysted
"
the Graduate School
.
R
i
Business
of
University,
has
it
been announced by Hoke S. Simp¬
Director of Executive Pro¬
grams for the Business School and
son,
Director of the
Called
the
for
fi0ns
July
#
program.
OperaAmerica),, the "first
^
held' June
held June
^
will
be
and
'•
-
-
19
19directed :
will.be
specifically toward
-
Pro-
International
29,
7
T*/
new
Management
(Latin
Earnings rose about three time? session
XIUITl
«m0ir
,
opera¬
t m r n c
'^
A
A new six-week
opment program
r
.
fiscal
public
00, i
,
operations
mi_
.
in
can
electronic
ciw-miiiii,
■
been.designed for. executives who
r-
T
-
.
w
.
are concerned, with the: manageconcerned
the^manage- .
ment of operations in Latin: Amer.
ica, and the participants will inelude
managers
currently
stationed in Latin America, as well
executives
as
rt<"
hornp
wuu
who
1
offices
,uu<
operate
XI
TT
Yhe
Pmiyrnm
J?8"3.1gfinnqg
3 lvSrnin^iHp
the Morningside
tla
on
^
u
from
O
in the U. S.
rt£lwOT,t
luiunauunai
nr
or
will
for
be
—
-
4
„
sys~,
103,000 current liabilities; Capital-
r—p
• n o oka oon
u
ivatinn
ization pnncictc; nf 2,350,220 shares
consists of 2 T50 220 shares
records, stores digital information
provides for almost instanta-
of common stock preceded by $7,500,000 long-term debt. The com-
unitized
and
selection
neous
of
and„
^Jotxl Anil.
any item from
large file containing millions of
One filing case of this
system can store as much infor¬
t^in-noi'
pany's excellent management
TORONTO, Canada—The Toronto
Bond
-
-
Association
Traders'
_i
287,628
shares
the total
mation and
will
hold
its
28th
Annual
Dinner
the King Edward Hotel on
L*M.°Wightman,
ivr
T
wiefhtman
and Co.
accomplish
April 8.
cabinets. In 1958 the first complete uMinicard"
plete/'Minicard'- system was dewas ue-
Tsard- RobertIsard,- Robert-
-
livered
Limited, is Chairman
| Aware of this need for public RED
j understanding,., the American ment
Bankers
A
n.
t
the
Air
Force
and
has
been in operation ever since. Two
additional systems are presently
being built
feels
-rank
to
J.
—
has
Mil Invest-
the management
equipment is prifor military applir
and
this
marily"suitable
been. formed
^ Wegt Front gt<
Association, through its with o
cPrurities business,
I newly created Committee for Eco- to engage in
ta
to?
f^egrities
Growth Without Inflation, Officers are L'Oh'el
has launched"a rnnfinmni? educaa
erman,
rxesiucm,
eman
o.
tional
program to promote such S1 o c urn
Vice Bresmen
understanding. -One of the first-Molly Lerner, S,ec r
products of this .committee is a Treasurer
Mr
that
^
^
thrP2
Leek roif™^^
one
able
booklet, "A Banker Discusses In- Miss Slocum were, lorm
flation, Credit Control, and Inter- First Eastern Investment
y
with
i
.
^
_
Ys«
,
(or
communicati0ns
nacard,
m
—
"
and
margins,
to
*
'
con-
—
-
the
should be
growth at a
company
its
mdus^ry.^A.ded^by^an^ou^
yge, .n
^orldw.de lent workmansmp ■a
networks.
Maga
high speed electronic
processes magnetic cards
£
^rough compiero
^^,
Pr^
Manageivianage-
Bank
Cianx
a
\
NipUpn Inrnrnnrate<;
mci&cii
-
-(Special to The Financial Chronicle)
BURBANK, Calif.—W. G. Nielsen
& Co., Incorporated, 362 East
Olive Avenue, has been formed
to
continue
ness
of
fice^s
W.
the
G.
investment
Nielsen
&
busi~
Co.
Of-
Walter Grant Nielsen,
formerly proprietor, President;
Laurence T. Montgomery, Vicepresident; Philip E. Zeiss, Second
Vice-President; and M. B. Nielsen,
are
r_
—
n
-
-
1
......
—
UvAni
v~I nnt
•
Secretary-Treasurer.
Form Regency
Planning
BETHPAGE, N. Y.-Regency
way
tQ
Snel
engage
'qgg*
in
in
a
a
are
securities
securltles
Frank
A.
Spina. President, Buddy Mazzara
of Vice-President; and W E. Maz
fa_ zara_ Secretary-Treasurer.
thenec
^^"/^"Yet/integration
production ana
tS^ Tra^nortl""
M^napem4nt
promm
Cbmmercial
m"ept Program
r\f
consistently wide profit
maintain
Bon
/{if"
the
of
extremely favorhigh
t—
"
Another important time and cost
saving system is "Magnacard,
a
,
12%
outstand-
products both here and
abroad, sizable earnings increases
are expected in the coming years.
As a result of an aggressive research and product development
program,
creative engineering,
low-cost production and distribu¬
sumer
tion
ITRgSchust_ proprietary^
^-^^3
e«^y_
In view of the
,
J* 'J
owns
1 O CV
about
stock
able outlook for continued
demand for the. company's
cations.
nomiyc
or
common
ing.
as
it would normally taxe i,zuu imng
]Vlil InV. Associates
n
documents
many
at
a
continu"ing"educ/
as
*
-
son
«««
a
-
>
^
held
Hoiehto
Heights
$1 90
oer
$l.Qn rkAr
University
ab0U1toJ.4'? ' 99
i<5
campus
share.
1960 income per s
income
sh«AC ** using iaCnities oi f. _ umuumu
prfla,iate
facilues
uic
projected at $3.00 per share on School of Business and the Amerestimated sales of around $150,- ican Press institute. Enrollment
000,000.
for the 1960 program will be limDividend payments, which have 'ited to 25
been made continuously since
This is'the most recent of the
1944, are presently at an annual Graduate School's Executive Promia
nf
During
rate of <ri nn per share.
$1.00 npr share.
During
tv,0<.0
in^ii,aa
thp
civ-.
These
include
the
six
the past five years a 5% stock Lpk FXP{! lt L prnZm fn r ,?
1^59,calfn^a^enon
about $4,500,000
at
—T,.lw
handles
.
_
TVorlpyCi
-L1 dUOi o
a
This
Auiai
ji
-
tem
(v*
;
CnnVQP dl OUlUlllUICl
V^OUlbG fit Columbia
the past eight vears sale*1
^ ^ f.gcal
•
y
n
,
addition to ,. e expanding pr
the exDanding produe
for
*
NPW OUllilllCl
SlirniTlGr
distribution facihties thic
*Hn
During
-
engaged in private tax
He rejoined Hardy & Co.
in 1943
n
be-
he
growing home
microfilm
>-■
'
recently
"Minicard."
viviiHic«ru.
•
■>
greater- 0f the dinner,
understanding of
we
®
records.
V
promotion of maxi-
i-U
growth
have
center at Torrance, Calif. n——1~
Research
and development expenditures for
lend-
our
investment
policies, in
A
judge whether or not we^Ji(JI Uil vU
contributing as fully as we are
YY\1lw»
VY IIVA. V-
company's
farsighted management visualizes
?eca" f
he
associ-
came
he joined L. F. Rothschild & Co.
where
he remained
until ,1937
•
•
_
and
avoidance
Fort
at
f.ales <>{ $485.468- Upon .complf the 196° cMendar
order to
The
ended
consolidated
maintained
-phree smaller
j
had
product development labora-
Los Angeies area will be consolidated in May, 1960 into a new
tne luxee mtmuis cuucu
■
Sept. 30, 1959, the company and its
subsidiaries
w
The
year are ^tici- divdend W3S aiso distributed. Magtion of the current financing, out- pated in excess of the $11,250,000 navox Company is in sound finanstanding capitalization of the com" or 12.4% of fiscal 1959 total sales, cial and working capital position
pany wl11 consist of $816,898 of ... Magnavox has developed jointly with current assets of $40,749,000
ne,?f" £Undry debt' 317'367 shares of with Eastman Kodak a complex on June 30, 1959, including cash
f maintain class A stock and 72,420 shares 01 data Processing system known as of $4,368,000, compared with $23,S+ -e'
to
constant appraisal of
stability.
ties
con-
■
months
?
9h"
Wayne and Urbana, where facili-
telegraph
/•■/;
WW
assured.
firm '
a
-
we
radio
OVVi*
be
'
g
ated with Doyle, Hayes & Co.. On ;
the dissolution of the latter firm
reported at
$3,361,000 or $1.43 per share on
an
gix plants in the United Statesman adjusted basis giving effect to
giving
jocate(j at Fort Wayne, Ind.; Urthe 2-for-1 split of the comm
bana
jll.; Greeneville and Jeffer- stock wh:lck was
1
son City, Tenn.;
city,
jfaauca-n, ivy.; and
Paducah, Ky.; ana
S
Torrance, Calif. Modern research
1959 calendar year are L+imntrd
Torrance?
estimated
are
when
Minsky
.
n
1935
w
1
the coin
for
elec¬
a new
The company owns and operates
todes
^ories
J
and for
systems,
transmission and automation
-pe
snouia
nniv
u-
1
—
comcom-
equipment
for West
Germany and orders of about $20,00o 000 for the Navy.
an(j
and
minimiza
or
risKs
bank<=
banks
boom
a
aTrim rt
h?
components
to
VtoKiiro
J
telemetering
airborne and ground
eround
mu'nicati0ns
and -color
for guilded missiles
-ment
policy,
a
referred
tn
to
The avoidance
are
ooo'ftOO
-
broadcasting and test
equipment,
equiptelemetering
appreciate the
riod.
ing
In
in
get/our customers to
and
the risks
ricire
of
might_be
a
1.
monochrome
espousing conservative prac--industrial
understand
'tive
J
be
of
%A.tJ
can
000
nnfl noft
behind;television
general,
general.
shall
we
sale
IV V- I
\J\J\J
a
.
developed
tronic organ to retail in the $700
to $1,500
price range, which ir
expected to be placed on the mar¬
ket as soon as volume production
raPid detection of submerged sub-' sales are approximately $107^000,marines.
The company has also
000 with about two-thirds acmarines
The
of
sale
-tut
---i
neered and
.
mark
& *
Hickey.
H e
joined
Hardy
panies, which maintain large and
easily accessible files. In time, substantial demand from large industrial companies is anticipated for
—
The company's government and
industrial electronic business comuuoluyjJ
-
money-is
money
-
•
Sells Telechrome
borrowers, their
past relations with the bank, their
deposit
b a 1 a mc e s,. • repayment
-
"r
receiv¬
ables positions of
scneauxes;. ana-wnenschedules; .and when
<•
•
TVoaF
xlt/dt
jyfA vvtvivwu
,
1923
Vilas
with
until
of
-
,
general,
partnership in
T\/TohnoncirH
as is required on Magnacard.
Magnavox has also developed
.
admitted
to
information
same
An
»
.
has
has
Minskv
Minsky
punch card data processing
system requires 140 times the space
for storing the
■
.
York Clty» members of the New
York
and
American stock
york ana American oim-iv _Ex~
changes, have announced that Sam
nary
^^
e+
■Hardy & Co., 30 Broad Street, New
'pvptv-'industry's total, -and representing, ance to commercial organizations
nnL some of the country's largest de- such as banks and insurance comgrowth m our
hbnd
y
nnlv
uL? nnci?L2L
pv
iv
v
many;
nhf
kas built
icy
t.m
.„o
aphip_
but
and
■
ganization numbering about 2,000
franchised dealers, or 2% of the
through
the
Jju'stry"
QUSlIY
„
jLS/i
.
cus-
risk,
cards
?ot through distributors This pol-
lending inof
be ..minimized
can
careful
All
degree
some
*
♦
cilities Magnavox appears on
threshold of a period of great
pansion and a brilliant future.
.
the
tne
in
in
lo-
costs are relatively low profit
margins.compare favorably with
lending,
maintain
nnnnnrn
w!?lcb c?u*d lead to losses, there P 3
will be a neqcb
ip£ ycareful, apt.r adiP
praisal
will
and
fine, sound banking system. The
mai'
uthinh
rjtnnu oil
.
order to avoid-loans
in
its
in most of its
even
which
manner
in
—
investing, and
ways most
yiding creau to economic inteiy
in ways most likely
to contribute
Second,
banking
decentralized
are
cat/ in areas where production
have used words of caution in this
talk,
o
plants
thn
nn
ihvestment policies to determine whether or not we are proand
This is essential. '
speakers," condensers, transformeT,s' chassis and tuners. Since
to
dissociate myself from all
gloomy
doing this.
First,
.
addition to the tremendous advan-
-
29
.....
v xyvuv .
'
-
basic principles
can
follow
in
are some
•
#t
avail--special-effort to
as
There
_
TVlCk Xnni 1
T T l tn Dnnf
J-ilC OcCUll tV 1 IjlKG jDGSb
increasing Continued from page
'
with a capacity of 1,000 numeric
us should make a phonograph and television instru- characters or 600 combined alphadisseminate this ments is highly integrated and in- betic ar»d numeric characters. In
'tic-rapidly, All of
"of
Hifficnlt
difficult task. °i rati°ning
(585)
'
*
!;■
H
it
'
i'
'
t
30
<
(586)
.
The Commercial and Financial Chronicle
.
.
.
Thursday, February 4, 1960
i
,
'
'
'
,
1
<
the
I'ti
Aftermath in Steel
Continued from page 9
L,
panies
,
to
under
argue
other hand, no
think, that it is
deny, I
inflationary
than
the
agreements averaging
8% annually which the steel in¬
dustry has experienced since 1940.
'
U
J ;!<;>
.
,
And it
»•}
t!'?
„
in
be less
earlier
other
industries—
inflationary than the
agreements.
Over the period of the 1956
con¬
tract,
cost
,v<
■**>)
?
*
j
'
output per man-hour. And compared with this, the present set¬
tlement of 3%% is less than two
times the rate of increase in out¬
put per man-hour; and the infla¬
hi
ji
the industry employment
increased substantially more
than the 8% per
year, or 81 cents
—a
rate of increase more than
four times the rate of
increase in
I i;1"
tionary effect is less than half
;
.!
lieve
fecting
great.
•
But what about the other
as
^
-
»
major
tlement
in
steel?
Wouldn't
the
steel
industry have been better off
they had accepted those same
if
Well, the answer to that is un¬
qualifiedly NO.
And in saying
that I want to make one
thing
■Yi
very clear.
The cost of what
may
(appear to be the same
as I have
said, varies
No Political
As
\
industries
actually
do
know what
applied
would
to
the
our
had
cost
cost the
But I think I
benefits
same
own
industry
they become ef¬
fective in it.'.
did
not
in
And the annual increase in the
hourly cost
»v,'
applied
would
of
prices.
to
the
have
5%>—or
ranged
from
10
from
to
15
4y2
cents
to
an
»
hour
u*
more
the period of the
So in comparison with
over
agreement.
these costs
-■
our 3%% looks consid¬
erably less inflationary.
'f
\"v
But you have doubtless
^
I
have, that the
steel
read,
as
companies
could have settled on much more
favorable terms had
they done so
earlier before the
injunction or
before the strike, or at some other
i;- !
1
,i
mysterious
point along the road,
and to that I can
only say that I
doubt it.
tioned earlier.
Now I
read
I
am
many have also
statements
having
overtones
government
to
the
effect
officials
in
recommending
steel
"!.*
f
'' I
I,{f1
t '(* t
the terms of the
settlement had been given
some
■
sort of commitment
that the
steel
companies
their
<
prices
tion.
that
.
asked
and
Each
none
Si
after
the
'\
tion.
laws
was
elec¬
And
this
the
was
in
action
consist¬
was
what
reviewed.
For
which
that
is
I
have
what
this
whole wage controversy was all
about from the start—our attempt
to
prevent an inflationary rise in
production costs that would tend
force
to
will
this
competitive
lation
at
greater
a
disadvantage
in
re¬
to the producers of certain
foreign made products and substi¬
tute products here at home.
While
we
not
were
wholly
suc¬
cessful
in winning
a
non-infla¬
tionary settlement, I believe that
compared
with
did
progress.
make
if
a
of
is
not
of
met
possible
a
kets
to
abroad—then
met
in
and
our
earned
the
loss
it
of
mar¬
home
other
only
As
have
resolve
resoive
the
tne
curtailment
of certain
able
projects such
example.
any
look
the
at
same
you
thing
it,
the end:
To
diminished,
company
ind
efficient
more
duction.
the
And
profits
are
is the ability of a
to
acquire new
so
to
tools
of
whatever
pro¬
extent
purchase
of these more effi¬
cient facilities is
delayed, so the
competitive
position of the steel
is impaired and job
companies
in
the
likewise
are
less
profit
steel
indus¬
lessened.
For
fewer tools—or
means
tools—of production.
poorer
In the
same
curtailment
of course,
expenditures
way,
of
research
can
petitive
position
prise
this
in
which
be fatal to
of
For
for
com¬
enter¬
any
dynamic
live.
we
the
any
world
to
condi-
there
at
are
meeting
least
this
although
aitnougn
issue
This
by mutual
of
competition.
level
understanding
hard
to
do.
And
devising in
the
other
research
our
is
by
tories
ways
own
price determina-
under
must
be
the
so.
Antitrust
For
any
official involved
in
labor negotiation to seek a
price
ill
iff
(<£
and
new
of
making
ending search
more
of
our
better
labora¬
steel—a
now
our
steels
and
never-
receiving much
our attention
than
be¬
ever
fore.
The
to
—
for
a
joint
connection, it
interest to know that at
search Center in
be of
may
Re¬
our
Monroeville, Pa.,
than 600 man-hours
per day
devoted to the development
more
are
of
better
problems
tin
of
plate
the
and
to
and
canner
the
the
maker.
can
But
also
in
com-
I
to
am
sure
it will
are
.committee under
can
be
an
know, for example, that we are
working on a new tin plate
now
which
—
promising
be
if
as
it
proves
now
to
appears
lighter, thinner, and
be
—
as
will
stronger
than any tin plate
you have ever
used. And I need not
point out
-
■
Ttat ore gn *tlt'°"can
met only it we.
confined
It
is
of
to
—
.
fears,
.
of
the
end.
success
And
in
x
their
of
.
their
aspira-
failure
or
of
any
always is in the
the
to find better
the
end,
of
means
effort
achieving
effective
production will depend
the spirit, and the degree
upon
of
cooperation,
task
with
is
approached,
printed words
upon
which
the
rather
on
than
printed,
a
ha^
in this connection:—that the
pose
steelworkers,
and
their
union
leaders, recognize now more than
ever
the
dangers which inefficiency holds for their own competitive position and their ultimate
job security.
that
the
have
shouting and the
ceased, I have not
doubt in the world
slightest
that, if approached in
be
may
possible
of
as
.spirit of
provide
true,
security
steelworkers
known,
a
to
measure
job
range,
a
long-
than
the
group have ever
a
If
practices.
both
,
.
,
...
,
V
thina-
learned one ttiing
.
How any industry
eluded
_
_
.ours^ in
_
can, under piesent day
—
circumstances, and with or withof
intercession
the
govern-
reach a non-inflationary
Taxs-t«»Msf
time we as a nation take to heart,
-^7address
National
by Mr. Biough before the
Association
Canners
Convention,
Beach, Fia., Jan. is, i960,
Miami
^
'. '
hardly
rapidly
and
I
problem
beings,
think, to
more
will
we
can
get
on
cooperatively
they otherwise would be.
I
have
in
doing
to
spoken
so
I
minimize
my
piece,
have
nor
tried
exag-
gerate any of the facts concerning
final
settlement.
That
some
settlement had to be reached
was
matter of first importance. That
it could
have
been better from
a
our
point of view—and from the
nation's also—is
Vhink
of
of
it—a
ac-
That
would
add
to
than $10 billion, all of which
more
have
to
raised
be
up
in
com-
petition with the Treasury's
mal
clear, but that it
we
and
potential
^unts^ Thmk °yii pote U
counts!
To get .the money
need> we shall have to pay for
large .enough.
the share
nor¬
Policeman
You might
for «- we sha11
Pay
cha
xustomers
enough to cover the costs. That is
slmP'e arithmetic
the
,,
matter,
When
we
Both
t0
^
I
and
ask,
Judge
need
and
what puts the
don't
match
to
Loans
must
we
say
attract savings, I
financing.
rates,
on
to
that
pay
mean
the
or
Savings
the
even
Don't forget that
the plain old-fashioned oommerbank star s with a 1, t oi
pavings Banks
brake on all this? Well, the cost
of the money for one thing And
who applies the brake by raising ^vantages —usually a better locathe cost? Here is an interesting tiOn, the oiDnvemence of manj
The brake is applied by
answer.
1™ V'
the Directors of each of the 12
Home Loan Banks a majority of m 1957
that commercial banks '•
whom are none other than active could attract sayings, even tnougn
officials of member Savings and
below
those_of,^
Loans themselves,' As the Herald
^f9S^^at<?"^^aYbsSS''
th.®hMfVtua<J®- .®"t
T
nanc
or
t^5 for wfth TrLs^^cuHtles^fofthat j
" rlX S M
hut
not
enough
soon
enough to block
io commitments.
the
high
or
big advance
:
Clearly
there
is
something
wrong when the Federal Reserve
quite properly fights inflation by
severely
restricting
commercial
banks, while the Federal Govern-
^
I know that many of us would
shy away from taking the plunge
into' higher rates that might be
associated
with
Regulation
any
Q.
change
Obviously,
y
^
-
in
the
position here again differs
as bewhat may ,be suit-
.
*ween banks
J.hle for one won t fit the condiment aids and abets a prime com- tions of another. But we shall run
petitor. Nor is this the only in- couptep to some of the most imstance; we all could name others, portant principles we support
^lf
The truth is that the fight against we ^aib to ho competitive ...for the
inflation falls chiefly and almost very life-giving substance our inexclusively on commercial banks stitutions need if they are indeed
and it shouldn't—either
ter
of
equity
or
in
of getting the job done.
•'
*•
as
a
mat-
the ^interest
Refers to Mutuals' Competition
Aside from obviously undercut-
ting
inflation
control,
has
by
served
the
to
the heavy
Savings and
widen
to grow.
As
of
fact,
how
further
the
anced
that
budget and all the measures
needed
are
in
the
against inflation—if they
willing to make
they
control?
I
use
don't
of
know
over
problems
on
we
going into
these
have
any
competitive
with
the
Mu-
uals; there isn't much if anything
to add to Gayle Freeman's mas-
the
new
reserve
re-
quirements bill, and later over the
ceiling on Treasury interest rates.
If bankers do read them I think
they will find them illuminating,
The debates reveal an appalling
lack
of
understanding
of
the
the need to achieve a larger meas- whole
process of inflation, and of
ure of tax equality if we are in- the place of monetary
policy and
deed to
gain our fair share of interest rates
in
combatting it.
growth. But more than tax equal- Throughout the debate there ran a
ity is needed—we also must be strong undertone of criticism of
willing to compete for money by the banks as being the chief benpaying adequate rates. The plain eficiary -pf high interest rates.
terly treatment
of
the
subject.
Let me only say that I agree with
fact
is
that
banks
cannot
do
the
job that looms ahead unless they
attract savings. The normal growth
from demand deposits will not be
And,
of
the Federal Repictured as being overly
course,
serve was
solicitous toward the banks.
line of
z
how
first
here
:
v
tools
gress
many
/.
•>
not
are
the
banks.
detail
.
-•«:
bankers read the monetary
took place in Conthis past session: the debate
not
.
,
'battle
debates, that
am
.
.
can
competitive
gap
that
separates
those institutions from commercial'
I
,
'
matter
a
-
bankers take the lead in the fight
.1"for fiscal soundness—for a: bal-
borrowing
production in the steel industry. And if that be true, the
inflationary effects of the steel
settlement, I believe, can be much
neither
?"
Loans from the Home Loan Banks
with
Now
V "
Continued from page 7
I
well
as
its solution
human
fail,
here
leaders
common
of what
to
mean
and
—-
view this
terms
the
A Bankers
•
sides
include the union
in
<
==
while
minimizing at the
same
time
any
hardships, that
individual steelworkers might experience as a result of improved
work
^
beneficial wage increase unless
it is earned; and no job security
unless there
^useful Produc ion
of a product which candpe profit
\
atti¬
tions, and their achievements, just
as
e
co:mpet:ltive in world
markets and in our: own domestic
markets..
And that, there is no lasting
we have ment,
.
contract
matter
a
people
their
,
hp
as,£ nation d
come 'more
out
.
ways of produc¬
confined—and never
not
tudes and
Tin
interest
v our
That any solution to inflation
must involve a much more modest
approach to the big annual rounds
of wage increases that our coun-
would
agree upon.
language.
and
be of
in^atl°1}'
And
.,
provides
effective
tion
less than
Reports Break-Through
of
.
better
recommendations by Nov. 30, 1960
for such action as the
parties may
mutually
>
.
reach
regarding
settlement
—can
In this
effectivelv
so
agree-
get on with our con¬
stantly changing and all-important
k
"
b of
job of production.
•
time,
resources
it
to
hers of management and of union
&
to
ways
;
in the industry at
foreman
greater
One is by holding down costs of
production, as we have fought so
employment cost
increases is illusory and self-de-
is,
such places
the
,
of
after all, the best
place—and there are about 50,000
tumult
of
our
ciung to it so eiieciiveiy. Ana ably sold at a competitive price.
^
never before has
it made such
But out ot it an, too, we nave
nroeresq
jn
m-otectine
its
Progress m protecting .its com- discovered that we have not yet
com
clune
has
nas
machinerv
macmnery
to encourage
prompt settlement of
local working conditions problems
ment.
industry
our
un-
is
To this end, each of the
parties
as a matter of
policy
I
two
kind
has
common
problems among all ranks, mem-
good will and understanding, and
of mutual respect on both
sides, it
of
before
pushed forward in negotiations so
vigorously this issue of impro\...0
vigorously ims issue oi improving
its
competitive
position,
nor
understanding
try faces in
try—but
N
before has it
never
much progress.
petitive position by getting better
the
ways
years,
so
our
is committed
Now
indus¬
Never
before
has
the
industry
been so
solid
in
its
determination to resist being a
middleman
passing
out
brass
rings on the merry-go-round of
inflation; and by comparison with
made
of
feating il we are to understand
steel and contain the cost-push type ot
im-
the
at the local level
leave
me
to
have already mentioned the stiff
competition which the steel indus¬
the container
conclusion, let
handling
barriers
far
in
whe"eby°V«ie mattef c^TTe A"d ",;t :l( '' al1
ss *'wl" • * sa?
"
in
example,
tried
we
working
of
human endeavor
whatever extent
hnth
both
the hope of remov-
ways
So
hopes,
way
out to
comes
or
postpon-
research, for
as
d
.mcai working condi
in
contractual
resoiveu
resolved
n
levels
levels.
said,
"local
turns" issue
ing
at
officials'at
local
and
I
the
upon
^mselvesP0Ia
themselves,
their union
national
ways,
temporarily;
diminution of profit
a
a
that depends
deoends
to
So
fortunes
stating only partially the
effect
fUn
these simple observations:
recent
competition?
ex¬
only be
can
two
of
then
And
through
at
competition at
one
through
in
not
advance—even
pense
same
to be in
prove
large part, of course,
upon
inflationary cost increase
an
results and
a
is
the
we
I do, that
as
increase
wage
years
At
realize,
many
price
earlier
their living
earn
contract
steelworkers
price increase, which in
a
would place us
turn
corn-
brings us down to
perhaps, the all-imporHow, inflationary
is,
work
of
the
to
menace
Conclusion
are
but important
by,
future
the
That
this:
they
question:
tive
conditions
to
down
Which
it.
tant
it
present
Plate
government
a
for
That
given.
company in the steel in¬
in every industry, is free
arrangement with the steel
i
raise
as
to make its
1
until
not
I would like to
make it clear
no
such
commitment
dustry
!\
would
was
I'ti!
a
of all those who
proved
and
sure
critical
political
that
boils
^
Most people who talk that
way
are
using the unrealistic 26 cent
type of arithmetic that I men¬
'
i
all
costs—however
met—are
ent, I believe, with the competi¬
those
benefits, if
steel
industry,
the
settlement
contemplate any increase
general level of its steel
the
try
Inflationary
industrial economy.
product
a
petitive position of not"only every
company in the steel industry, but
in
announced—on
opportunities
Less
ac¬
Conditioning
the
reached—that
steel
ing
Steel
that
it all
companies affected.
or
known, of course, United
States
Kaiser, and with companies in the
aluminum, copper and can-mak¬
.
is
day
benefits,
widely from
company to company and perhaps
more
widely from industry to in¬
dustry. I have no way of know¬
ing what the agreements which
the
steelworkers
made
with
V
;
regarding its price
and
terms of settlement?
in
such
And the answer
tne
and
industries
settlement
it
Inflated
United
commitment
no
dustry I do not have the slightest
doubt.
terms
companies
other
that
and
has
with this
tion.
time,
and
Steel
otherwise
agreements that the steel workers
union
has
reached
with
other
during the weeks prior to the set¬
prices
States
connected
can
less
clear that the rippling effect of the new settlement
—that is its effect on other
wage
will
I"
one
seems
settlements
i
circum¬
is about one-third
higher
than the companies' last offer—is
not an inflationary one.
On the
h
5
difficult
be
these
which
r'^
t;,w
•»
,
stances that the actual settlement
}K»,
.
States Steel is based
upon
the
competitive and other factors af¬
non-inflationary
Certainly it would
I' *'
i
improper. And I want to
make it abundantly clear that the
pricing policy followed by United
a
of
us.
pletely out of character and I be¬
obvious that the last offer made
before the final settlement
may in
itself have gone somewhat
beyond
the shadowy boundaries of what
might be called
proposal.
»
try has been
hard to come
com¬
So
L
<
,
incurring—a lesson
marks some major steps in attaining needed objectives in our in-
advantages
been
'
.
advantages of such
nor - the
competitive
pro&tyct,
a
to
would, have
economic
•
;
»
:
:
•
'
>
'
^
;
•
;
'
*
This
•«
criticism, incidentally, has
-
Volume
Number 5922
been seized upon and is being
now
publicized
by
*
unions.
'<
191
of the labor
some
/
-
The Commercial and Financial
Chronicle
...
apply.
must
Willing is not enough;
do."; Never
more
relevant
scene
that
was
we
Over
SECURITY SALESMAN'S
saying
the
American
would
It
;
le¬
let
spread and gain credence.
contrary, it is our urgent
nd
\
of
bad
a
mistake, in
judgment, if we sat. by and
misunderstandings like these
my
ost
be
On the
respon¬
sibility as leaders in the community to step to the forefront in
the fight against^ inflation.
The
himself
President
has
recognized
this and has specifically asked the
'
"
of the nation to
bankers
the
form
public
about
the
true
of the inflationary process
nature
•
help in¬
and the means that
nbcessary
are
; to combat it. High interest rates,
'} including fair rates to encourage
; savings, are among these.
today. Bankers—and
businessmen generally—must
"ap¬
ply and do" in the field of public,
In a word, they must take
direct part in the
political proc¬
esses
which make up American
Money and Sound
Fiscal
;
■
1
'
:
Policy
is
It
.
'
extremely significant, it
seems to me, that so many of the
problems that continue to confront
our
country do touch upon the
Democrary.
number
ciates
and
character
fine
and
outstanding
ability who had just
the
to
come
"
United States by way of Switzer¬
land and Germany. He summed up
"his impressions in
•
single, vivid
a
"Good money," he
"healthy people." He went
phrase:
"
explain
that
Switzerland
;;
in
he
money
and
People
said,
on
Germany
had: found
sound
to
and
sound
were
policy.
diligent;; and hard
unfettered", • by controls
working,
confident
and
fiscal
that
if
they laid
something, away
it
would
not
evaporate
through inflation,
In
the
Far-Eastern
from
area
which
he came, however, people suffered
from bad money.
Inflation bred
•
•
<
•
;
•phrase. We have
again
:
J
it borne out
seen
recently, in
that
France,
since
country ^ put, its * financial
house
'
in- order.
Anyone visiting
France today " can't help but be
impressed" by the change in it—
the
pride,
self-respect,
morale that is
and
businesses
more
As
and
high
evident.
now
matter of fact
a
to look into
to
ence
which
have
of
our
the
see
only
past experi¬
insidious
government
impact
controls
can
the character and, actions
on
people.
a
have
we
own
Who
forget the
wide breakdown of public moral¬
can
ity at the time of prohibition,
The
it.
sires
Our
bank
own
has,, started
program this past year to en¬
courage civic responsibility. Some
may know about it. It is in charge
of
officer who concentrates full
an
it.
on
form
We
entire
our
trying to in¬
are
staff
about
.rationing?
that even
I
some
of the urgent problems of the
day
and their intimate stake in them.
free
people
whether it be financial!
wise.,,We
thing
see
the
bank
political
;with
the
nature
process in America
precinct level.
or
the
local
level
And
good
levels,
Good politics at
government
backed
by
than
which
is
battles
still
are
front.
is
the
at
all
fact
war,
fought
is
war
a
less real because
no
In
at
country
our
For
ever.
nation
our
gov¬
informed
an
people, is needed in
more
good
means
above.
ernment
the
the economic
on
such ; a
conflict
our
strength lies not only in adequate
weapons for defense—and certain¬
ly
can't ignore those — but
equally., in a sound economy; an
we;
economy
rests
other things that
among
sound
on
their
not
are
great
supported
money,
low wages,
respect at all for human
resources,
and
no
life
in, their
This
is
of
use
.
the
kind
the
of
worker.
conflict
which the banker has
an
in
extraor¬
dinary role to play. It falls to him
to
be at
once
financial
a
counselor, and
a
sultant to the
he is
part,
a
an
role calls for
business.
a
institution
to
the
of
man
tegrity, with his.
his
con¬
while managing
own
Such
in
his
life
at
open
a
high moral
unquestioned
purpose;
advisor,
economic
community of which
even
vital
own
in¬
and
of
time
any
closest
scrutiny.
That is
quite a challenge. But it makes
up the responsibility of a baker.
of
or
*An
the.
address
National
American
•
by Mr. Champion before
Credit
Conference
of
the
Bankers
111., Jan. 21, 1960.
de¬
care¬
Association,
!
Chicago,
'
vestor
to
have
differentiate
reliable
between
those
and
sources
which
by
with the
high, con¬
a
Large
people
num-
devoting
good share of time to devising
a
fax
our
umbrellas, and there
.some
who. don't
•umbrella
but
evasion.
bition
•of
of
are
Just
and
cash
bother
to
move
are
rationing,
the
We
an
able
to
benefits
sus¬
of
research.
There
is
medical
Street
have
we
amount
search
of
is
it.
outlook
About
few
firms
out what
ments.
able
a
they
funds
in¬
that of their
as
these investment
valu¬
a
staffed by men
only skilled invest¬
ment analysts, but they also know
how to draw upon helpful con¬
tacts and utilize specialized assis¬
are
not
tance in
making their calculations
drawing up their conclusions.
and
bankers must take the lead
-in
helping to make many of these
problems,
the
cause
of
these
the
people. Inflation, the
dangers from a high income tax,
by
American
the
damaging ceiling
interest
others
rates
We
—
must
all
these
and
help make under¬
stood at the
community level. We
must discuss them
attention
on
ourselves, focus
other
organizations
of
them,
and
;organizations
centrate
still
.is to
also
a
rally support for
that actively con¬
them.
A/nd we have
further responsibility: that
that all of
see
become
Jive.
'u
on
Some
our
good
associates
citizens
'
after
.
may
"Knowing
recall
the
is not enough;
fi
r.*.
Harold
saying:
we
must
A.
Chase
Paulson
with
ated
and
have
since
they see an op¬
portunity to capitalize on the work
done by others they imitate. Many
June
S.
formerly
Inc.
Chase
Mr.
Witter
that
can
research
is
along with
few
a
good
lot of bad
a
of their conclusions
with
Dean
-
r
'
staff
Merrill
of
Fenner
Executive
Lynch,
Smith
&
not based
are
evalu¬
are
specialists. They read the
reported
statements, they watch
industry- production and trends;
possibly they follow the broader
It
is
ture
as
moves
in the
a
weakness
a
that
other
fellow
is
of
of
most
is
human
na¬
think
the
us
authority, es¬
pecially if he puts it in writing
and sends it through the mail and
an
small
a
caption in the
(Research
marked
corner
Department).
Nothing
could
farther from the truth. If
of
salesmen
material
pass
it
who
and
to
on
read
then
their
be
some
of
this type
hopefully
always
search
to
Don't
how
see
clients
much
advisable
material
,
to
could
this
in¬
bit. It is
a
consider
re¬
only after giving
attention
be
of
to
careless
its
source.
and
accept
everything stated
as
accurately
reported. You sometimes can do
Lynch Adds
added
Most
ones.
field studies that
upon
guesses
checking on your own that
may be very helpful. The invest¬
ment
salesman
who
develops a
questioning and skeptical attitude
can
also do some researching on
some
the
Pierce,
Incorporated,
his
Building.
own
that
at
least will
be
free
of bias and what is sometimes pur¬
With Selected
Securities
(Special to The Financial Chronicle)
EAU
Wis. — John L.
become
connected
CLAIRE,
Kroger
has
with
Selected
pany,
1712
Securities
Main Street.
that
cated
the
stock
prevailng
Within
selling
Then
Com¬
C
it
This
now?
sort
of
thing I call propaganda—it is not
research. And that, my friends in
the investment business, is the sort
of thing to keep your eye on if
you want to do right by your cus¬
More Propaganda
can't leave
I
Association of
Securities
of soinvestment
the
in
definitely should be
with honest doubt by
the securities salesman who is in¬
in developing an invest¬
type clientele. I refer to the
terested
ment
Frank D. Frederic
of many security an¬
alysts who make predictions about
action of the stock
near-term
Not
market.
averages
than
less
when
ago,
the
weeks
Industrial
points higher
62
were
six
Dow
than the day
this column is being
could pick up the
financial press or many nationally
written,
you
distributed market letters and you
would
find
steady
a
high
averages
that
the
stock,
that
or
stratospheric,
were
electronic
some
stock
the
or
was
selling at fifty or sixty times re¬
ported earnings, the buy advices
were there.
(And also the ration¬
alizations and the
It's
With
now.
Mr. Frederic entered the securi¬
ties
business in 1927, and after
serving with the U. S. Marine
Corps in 1943 and 1944 first as
Captain and then as Major, be¬
came
the
now
this
brings
excuses
up
type of information that is
leased
regarding individual
to
re¬
secu¬
with
Equitable
President
the
of
Memphis Securities Dealers Asso¬
ciation in 1954, after having been
Secretary
and
Treasurer
in
pre¬
vious years.
Exchange Elects
DETROIT, Mich. — The Detroit
Stock Exchange has elected the
following new officers for 1960:
President:
Charles
E.
Exley,
Chas. A. Parcells & Co.
a
great
Vice-President:
John K. Roney,
Wm. C. Roney & Co.
Treasurer: Walter A.
Bayer, F.
'
J.
Winckler
Co.
elected
Governors
terms
year
for
three
William
were
P.
Brown, Baker, Simonds & Co.;
Roy F. Delaney, Hudson White &
Co., and Mr. Bayer.
Two With Jones, Holman
(Special to The Financial Chronicle)
PORTLAND, Me. —Lester W.
Hammond, Jr. and Norman E. Libb
have
been
added
the
to
staff
of
Jones, Holman & Co., 57 Exchange
Street.
for buy¬
different story
unanimity
we
hear such
as this; a new base must
made, the decline is technical,
is the watchword, would
lighten holdings of common stocks
on
a
rally, new car sales are not
so impressive,
possibly we'll have
BIyth Adds to Staff
(Special to The Financial Chronicle)
M a s s. — J.
Douglas
joined the staff of
Blyth & Co., Inc., 75 Federal
BOSTON,
Burke
has
Street.
be
caution
a
lower
rate
of
business
the
in
latter half of 1960; and some smart
the
pundit
made
more
the
other
day
statement
volume
than it
does
to
put
to put
a
With Burgess & Leitb
(Special to The Financial Chronicle)
BOSTON, Mass.—John R. Stenberg is now affiliated with Bur¬
finish
this
members
it
Boston
takes
market
the
paper
line
other
in
on
my
the
day
town
ran
financial
local
"Black
this head¬
page
January"
the
of
Stock
53
State
New
Street,
York
and
Exchanges.
up
it down. This
piece,
Leith,
&
gess
actually
that
friends is not research either
book.
To
us
associated
Securities Corp.
Ke served as
With Metropolitan St. Louis
vSpecial to The Financial Chronicle)
ST.
man
And
March.
in
Alabama, Arkansas, Louisiana,
Missippi and a part of Tennessee.
—at least not in my
Propaganda
post
new
outpouring
of attractive investment and spec¬
ulative
suggestions.
No
mattei
how
Mr.
will
The district includes the states of
statements
the
his
assume
Dealers.
Frederic
Detroit Stock
another phase
looked upon
the
this piece without
research
business that
of
5
National
almost without a
rallj
today it is ten and seven
eighths bid. The firm that wrote
this analysis is still making a trad¬
about
i ttee
o m m
No.
declined
what
District
.
until
ing market in the stock—the oil
exploration is still going on, the
rate increase is still pending, the
refinery is still refining, and the
potash is still potting, but where
is their memo today? If this stock
was
a
terrifc bargain at sixteei
a
member
a
of
was
some-
serve
as
attrac¬
very
was
to
one-year term
levelf
week this stock
a
eighteen.
at
the
at
been elected
thing happened. It started to de¬
cline. It kept on declining. It ha:
my
poseful distortion.
Corporation,
Nashville, has
refineries, exploration
potash, and possibly
rate
increases
pending in thei)
natural gas situation which indi¬
called
stock
Securities
flow,
mentioning
various
on
thq years. The best
be hoped for from such
\
Equitable
company
wells,
tional
careful
been
released.
was
this
that
mendations?
PORTLAND, Ore.—James C. Mchas
oil
cash
who have
had
some
experience
watching the tape, reading the fi¬
nancial news, and writng informa¬
over
my
Elects Frederic
brililant future, there were
a
change their thinking
(Special to The Financial Chronicle)
Farland
stated
was
formation is compiled they would
Co.,
-
Merrill
it
&
Jones
was
time this memoranda
these organizations
circulars
to
NASD District 5
fall
ing them). Where are these sta¬
tisticians, researchers and analysts
today?
Where are their recom¬
Co.
&
that
only
L.
officer of Field & Co.,
an
information
search
issues
attractive
more
following
(called re¬ tomers. A stock can be made to
departments) are staffed look very good when somebody
by some young fellow just out of has some of it to sell—and some¬
a / college,
and possibly another times they tell a convincing story.
one or two self styled statisticans
of
them
make
even
you
associ¬
Chester
become
U. S. Bank Building.! Mr. Fay was
Treasury
on
of
doing, and
put
category.
Tc* MEMPHIS, Tenn. — Frank D.
illustrate, I remember reading r.
Frederic, Assistant Vice-President
three-page report on a certain un¬ and
resident
manager
of
the
listed
stock
that was selling
Memphis
around 16 about a year ago. At the
office
of
then
better
to
If youi
business
this
in
years
the
tive.
of
They
are
into
find
had
helpful research depart¬
and
who
the
(Special to The Financial Chronicle)
PORTLAND, Ore.—Fay W. Field,
impression
target—the in¬
(or the speculator).
been
statistical
behind their invest¬
they
was
Some
ment:'
ago
before
organizations have created
upper
June S. Jones & Co.
favorable
a
ultimate
few
a
had
investment
own
well
as
future
years
that
their
re¬
stocks.
looking
decided
telligently,
customers,
the
and
twenty-five
invest
this
determining
common
forward
could
of
in
values
for
increasing
an
Some
valuable
investment
P.
Field & Chase Join
F;
understood
Alfred
the staff of
the
ground
and the lower they go
they yield?" Or is it only
a conscientious security salesman
who is supposed to be interested
in such mundane ideas today? ;
pect. In these
there
sums
hands
power.
temptations,
—
Street.
Fourth
straight
large
in
Ohio
has joined
Lynch, Pierce, Fenner &
Incorporated,
44
North
Smith
in time of prohi¬
as
accumulate
means
Merrill
even
with
lawbreakers* and in their hands
cash
ZANESVILLE,
Adornetto
to
will recognize
days it is fashion¬ quite a few specialized releases
talk favorably about the that
were
presented to you as
are
whole, but by and
large this is research by ear and
feel and not by KNOWING.
Merrill Lynch Adds
create
on
economy
itjpenal to The Financial Chronicle)
to
"Stocks took, another
customers
rities that is specifically designed
to his clients must first of all learn
aspects of the larger
other-
today,
controls imposed
rbers
&
who
and
fully researched recommendations
ated by
somewhat similar
a
happening
fiscatory income tax.
u
facts
research of all kinds. Even in Wall
in
,
M
salesman
present
all
of the
to
temptation under
.widespread government control—
•
to
Beyond that, we hope to acquaint
.immune
,
securities
research, space research,
industrial research, and scientific
or
afraid the fact is
am
a
,
■j
RESEARCH, research, and there
Is Propaganda
the
beginning to do something about
the growth of black markets under
.
There Is
are
a
his
.
asso¬
coming to realize this,
gratifying that more
is
.
"Good money—healthy people."
There is great truth in that simple
;
and
by a balanced budget, balance in
This is good research.
controls,, and people were under, foreign payments, and holding the
constant .temptation to evade them. line on wages and prices or against
There Is Also Research
The result was widespread smug- excess
by any pressure groups.
As with most well planned and
gling, black markets and public Don't forget that we are not only sensible
activities, there are also
immorality generally, as well as dealing with Russia. Back of the a goodly number of those who no¬
Russians
economic dislocation.
lie., the
•••
■
L
Chinese, with tice what the professionals are
'
DUTTON
greater
a
friends
our
are
it
banks
Gradually
of
soundness of.\its money. I am re- and urge that they participate in
minded of a visit I hade some time* it — in the party of their own
ago with a Far-Eastern banker of choice, starting at the Community
•
JOHN
31
the wraps on
one
of the worst
Januarys in stock market his¬
tory." Maybe I am not a research
analyst, nor a financial headline
writer, nor a market prognosticator, but what I want to know is
this, "What is so terrible about
stocks getting cheaper? They may
someday produce sufficent yields
a
time
.Sound
BY
policy.
—
plunge into lower
than
to
•
the
(587)
the
Is
LOUIS, Mo.—James W. Heilis now with Metropolitan St;
Louis
Company,
315
enth Street, members
west
Stock
North Sev¬
of the Mid¬
Exchange.
32
(588)
The Commercial and Financial Chronicle
7
-<
;'n
)
.4.
■
£
•;
port the position that such growth
by declining rates dur¬
ing periods of easy money. Rising
has
interest
\
r
1
.*
'
i.
tion
rates
reflect
controlling
reduced
a
evidence
—
tionary
of
effect.
The
burden
aMf'
'r
j
which would affect about 90%
the Federal budget.
\
:
't-
\
'»;"{♦
1
A
-!Mi
:
!l!
/'iff
n-Ff,
more
Government
made
i' <i.
i
more
o
'V
I''' •»}•'
r
1900—14%
13.9%;
bank
for
the
total
as
assets
each
commer¬
of
has
idle
of
credit
and
en¬
fects
sell
or
securities.
Nonbank
and
other
securities
larger scale,
and the effects of such
operations
more
widely through the
economy. The policy of commer¬
cial banks of
using Go vernment
7j
7
securities
as
funds
outlet for residual
tended to narrow the
has
range
<
f
an
•M
i
large their holdings of Government
securities. They liquidate some of
V'.
termediaries.
these securities
/for loans when
A
funds,
significant
fact, however, is that commercial
banks
still have practically the
same
percentage
of
the
total
financial
in
as
assets
1900.
fore,
more
of
the
the
instruments
intermediaries
true, there¬
of
banks
proportion
flow
financial
To
country's
nonbank
to
supply
total
expand
of
financial
the
growth
of
for
do
of
and
to
the
such
in
business
a
intermediaries
to
bank
central
actions
than
A
the
variant
thesis
is
of
that
the
Claims
Gurley-Shaw
nonbank
financial
FY5
•;
Y;
.The view that recent inflations
been caused
mainly by tho
ents
gained
wage
rates.
obtain
funds
make these
sitive
to
institutions
sen¬
were
more
narrowly
Financial
•;A
F
f
'
:
.
:
Intermediaries
Another structural
change which
-allegedly has rendered traditional
'f
i
a
held.
ii
monetary
I
'
7 V
solete
growth
ns*
controls
and
aries.
ob-
less
effective is
the
financial
intermedi¬
of
This
more
somewhat
view
has
received
attention in recent
economic
literature
than
the
growth
size of the Federal
debt.
If I interpret their positions
correctly, the principal points ad¬
vanced
by
proponents
of
this
may
be summarized
as
lows:
tenable
a
fol¬
(1) Nonbank financial interme¬
position.
financial
The
intermediary
bank
credit
represents
'shrinking proportion
of
a
financial
assets.
(2)
Commercial banks
are
fun¬
damentally the same as nonbank
financial intermediaries.
Both are
"loanable
funds
brokers"
and
"both create credit."
diaries, through their
on
velocity, may alter
tive
>
H
?!
K
i
't
>
t
'<
f:
i
Which
f
7
,-.l
thus
*
i'
changes in market rates than the
nonbank
farmer
cessive
activating
are
put
at
}'
1%
r
t
a; IF
tf'Y
*>
i'.-j
(.
i i'
Hi
r
:
S.
I!
the
balances
disposal of
his
cipal exponents of
the
of the printhe view that
growth of financial
diaries
has
rendered
interme¬
monetary
policy less effective, do not
If'
Fr
sup¬
assets
and
lia¬
intermediaries, the
suc¬
of expansion in intermediarv assets would total
$20.
waves
savings or the personal
lender dealing with his
Nonbank
financial
intermedi¬
neighbors.
aries do not have the
power to
own
money
produce
Differences
Between
Commercial
Banks and Intermediaries
!
a
financial
the
multiple
assets
same
and
sense
expansion in
liabilities in
as
commercial
firm
considerable
the price
over
con¬
between
supplying whatever ad¬
ditional
money
is necessary to
higher
cost-price
the
support
structure, or declining output and
employment. The latter is incom¬
patible with the objective of full
employment. Hence the conclusion
is
reached
that
monetary poljcy,
although appropriate for demandpull, is not an effective instrument
for
dealing with cost-push infla¬
tion.
save
discussion
nancial
intermediaries
basic¬
are
ally
the
same.
For
example,
"Neither banks nor other inter¬
banks
and> other, intermediaries
have the capacity to create
special
forms of financial assets that sur¬
plus units may accumulate as the
*
,
reward
for
restraint
on
capital spending."
further
that
both
or
and
other
mediaries
brokers
commercial
financial
loanable
are
and
current
They state
that
both
inter¬
funds
create
credit.
They conclude that mone¬
tary control which limits the sup¬
ply of only one financial asset—
money
—
is
as
a
flow
of
spending
on
is
true
of
realized
equal.
of
loanable
goods
ex
pest
funds
and
and
services.
that
for
all
by
ac¬
In
way, realized saving and
investment
are
always
extent
recipients
the
income
and
portion
place such
a
of
the
rose
any unique function of nonbank intermediaries, that results
in
a
cial
"One
of
the
prices
supposed
today,
at
the
causes
much
present
that of industrial and
Reserve
of the
of
under
time, is
labor
com¬
stated
that
of inflation
causes
one
was
the
increasing wages
A prqminent.econo¬
aqd prices."
mist, writing about the early postWorld War I
period, stated that
popular explanations of the 19181920
rise in prices
were
costs of
assets
the
high
ished output of labor.
liabilities
over
a
finan¬
cial intermediaries cannot increase
the
total
supply
of
spendable
funds,
tions
some
claim
contribute
total
to
these
an
institu¬
expansion
vate
orders
decade
past
attractive interest and
dividend rates and by
liquidating
government
securities in periods
strong credit demands.
Thus
intermediaries may contribute to
of
rise in total expenditures
the
velocity
the quantity of
money.
In
considering the
financial
by in¬
instead of
impact of
intermediaries
and dimin¬
the
the
inventory
period
was
capital expendi¬
sharply and reached an
1957.
Unfilled
in
soared
Demand
certainly exerted upward
pressure
the
on
cost-price struc¬
ture, and if it did not initiate at
least permitted price
increases
to
compensate for increases in costs.
Once an upward cost-price spiral
is under way, expectations of fur¬
ther increases stimulate anticipa¬
tory
borrowing
and
spending,
swelling demand further.
The cost-push thesis is weak in
other respects.
It has been esti¬
workers
are
not
members
of
a
union. Why do employers in non¬
the
that
during
increase
in
prices has been accom¬
by an increase in wage
panied
costs
unit.
per
is
no
which
effect
may
or
be
the
a
in
same
whatever
cause
whether both
common
intention
that two
move
at
indication
result of
no
The fact
indices
direction
adjust their wage
rates to those in the
tries?
do
so
this
It is
implies
and
view
of
often
union indus¬
said
they must
employees. But
strong demand for
lose their
or
a
the
products
industries,
of
the
labor.
of
non¬
particularly in
immobility
relative
How
does
one
the
use
cost-push
theory to explain the
divergent.movements in prices of
commodities
and
services;
the
wider swings in the prices of raw
materials
than in the prices
of
finished goods; or the much larger
rise in the prices of some finished
goods than in others?
consumer
same
by increasing
existing money
of
of
part
wholesale
primary metals,
machinery, non-electri¬
cal machinery
and, to a lesser
extent, in fabricated metal prod¬
ucts.
Output in key industries
was
pressing
against
capacity.
frequently ha-ve been
demonstrate
statistical
the
more
nonbank
the
to
spending
Intermediaries may acti¬
idle
balances
by
offering
creasing
used
of
supply.
savers
transportation
Statistics
Admitting that nonbank
a
System
"vicious circle of
period of time.
in
In 1918,
Council of
multiple expansion of finan¬
and
in
electrical
labor
not
industries
the
substantial
heavy durable goods indus¬
union
savings
directly loaned and invested
ipstead of .being transferred
through intermediaries. It is the
saving
and
investment process,
.
Business
tures
Federal
were
of
a
all-time record in
Federal
nancial assets and liabilities would
be essentially the same if
most
Most
tries.
the
fi¬
7
,
increase
prices.
the
in
rather
strong demand for
a
accumulation
in the
binations."
expansion
in
output
Advisory
total
was
accounting for
aries.
The
industries.
There
savings with financial intermedi¬
diminishing effi¬
velocity
of
regulating
surplus units equal liabilities
cumulated by deficit units.'
same
income
means
spending units, total surpluses are
equal to total deficits and that
financial assets accumulated
the
the
indicate
union industries
high
to
significant,
more
data
mated that two-thirds of nonfarm
that successive
fi¬
Even
although it may be a more refined
—theory of inflation.
Professor
Irving Fisher noted in 1911 in his
multiple expansion of
intermediary assets arises only if
nonbank
other; indus¬
thus
The first point I want to
empha¬
size is that this is not a new—
and
the
ables.
available
of its product.
significant part of the
Gurley-Shaw thesis is that com¬
and
in
among
trol
mercial
banks
than
greater
no
individual
Purchasing Power of Money that,
A
the
wide variations in changes in unit
labor
costs
relative
to.; prices
banks.
Another
It
Shaw, two
IK
11
idle
Growth and Its
Implications
The data used
by J. G. Gurley
and E.
,
total
1
t1
■
effec¬
the
bilities of nonbank
intermediaries;
save all of the addi¬
tional
income and
return
it
to
businessman employing
or
Governments, ciency
borrowers.
f
f„
the
and
supply
spending. For example, in periods
of strong credit
demand, these in¬
stitutions liquidate
a
4
money
influence
in
further
no
if recipients
banks
(3) Nonbank financial interme¬
income, there is
expansion
with; its
mediaries create loanable funds.
diaries have grown more
rapidlyl That is the prerogative of spend¬
than commercial
banks, so that ing units with surpluses on in¬
central bank control of
come
commer¬
and product account.Both
cial
tional
modern
close ties to the money and cap¬
ital markets is surely more sensi¬
tive to central bank actions and
and
f
view
businessman, the direct ness to save of those receiving the
of savings in corpor¬ income
generated
by the
bor¬
ate securities, and the direct lend¬
rower's expenditures.
If income
ing of individuals. This is hardly recipients spend all of the addi¬
investment
As
result, central bank actions have
a
wider
impact than if liquid
assets
the
and
more
so
average
tries; in fact, the increase in dur¬
ables
manufacturing
industries
was slightly less than in nondur-
Industrial concentra¬
are
monetary actions.
ings in
given
•
i
reassuring. The
hourly earn¬
industries accounting
in
for most of the price increase was
of
forms
industries
,
in
increase
The grov/th of labor unions and
have
the
for most of the in¬
wholesale prices were
however, is not
change:,
cost-push.
bargaining
to
thesis,.
crease
have played an important role ir
this
shift
from
demand-pull to
collective
support
The
of
period
1955-1957
substantial
strongly unionized and oligopolis¬
tic. f A look at some other data,
among economists and others
in recent years. Structural
behavior
accounting
adher¬
many
the
Weak
Theory
cost-push
upward pressure of wage costs in¬
stead of by an excess of
money
has
in
lends
have
demand
Cost-Push
Superficially, '-the
prices
lending and financing intermediaries can create a mul¬ Simply stated,
the cost-push
which they superseded.
Gurley tiple expansion of financial assets theory of inflation is that labor
tight
and Shaw state that the financial and thus
and credit demand is
influence total spending. unions have the strength to ex¬
strong. These
compensatory shifts in loans and assets of nonbank intermediaries Assume, for example, that a tnon- tract increases in money wage
have
grown much more rapidly bank
holdings of Government securities
intermediary receives a dol¬ rates that exceed the rise in labor
-than
have
total financial assets, pri¬ lar net increase in its
resulted
in
much
deposits or productivity so that there is re¬
greater
stability in bank earning assets marily because of the decline in shares, that it retains a cash bal¬ curring if not continual upward
and the
self-financing and direct financ¬ ance or reserve of five cents and pressure on prices.
Oligopolistic
money supply. The wideThe real question, therefore, lends the remaining 95 cents. The conditions enable the individual
spread practice of other financial ing.
is whether the modern nonbank initial
firm to raise its prices—to cover
institutions
increase
in
and
intermediary
large
business
financial intermediary is less in¬ assets is $1—cash five
corporations of
cents, and higher costs or to enhance its
employing tem•porary excess funds in Govern¬ fluenced by monetary policy than loans 95 cents.
Any further ex¬ profits. The monetary authorities
the self-financing of the farmer
ment
pansion depends on the willing¬ are thus confronted with choosing
securities
has
tended
to
to
reserves
1 Finds
.!
-
steel, electrical machinery,
vehicles, petroleum and oil
three-fifths of the total increase.
rise
*
sub¬
tions, especially in the heavy goods
industries,
and
in
some
cases
localized markets, have given the
employment.
Disputes Asset Expansion
sensitive
less
are
III 7
8%.
commodity
products, general - purpose ma¬
chinery and. equipment, • and
working machinery and
equipment—accounted for nearly
money
activity
has
impaired the effectiveness of
monetary policy implies that these
>"f7',
than
more
92
metal
velocity.f\ v '■ '/' 7'7;'
7':-
end
motor
union officials considerable
power
in
the
determination
of
help smooth out cyclical
in
secular
a
the
of
and
Cost-Push Inflation
poli¬
influence
expenditures
fluctuations
intermediaries
the
that
in
the
to
accounted
for
approxi¬
mately three-fourths of the total
change in the wholesale price in¬
dex.
Six of the subgroups—iron
intermedi¬
to borrower. The latter
result
/.A.
so,
funds
stabilization
designed
way as to
that
in
to
1954
of
groups
balances to
saving and to
transfer of savings
the
end
somewhat '
Ten
encourage
saver
tends
Non-
contract
or
spendable
relevant
is
assets.
contend
can
;
to
from
at
cies
the
expenditure flow.
-
cash
Nonbank
the
1957, the wholesale price index
rose
the
facilitate
the
„
not
of
shrink
or
of
growth of nonbank
intermediaries have undoubtedly
fi¬
all, only by influencing the
velocity of circulation of the ex¬
isting money supply.
It is the
unique
ability
of
commercial
economy
It is
that
bank
if
expand
can
income
monetary policy which impinge
directly
on
commercial
banks
represent control of a diminishing
of
cyclical fluctuations in
bank deposits.
In periods of re¬
cession, banks use reserves sup¬
plied by the central bank to en¬
Ft
the assets of nonbank financial in¬
efficient market for
reduce
of
been
on
de¬
From
aries apparently play a relatively
minor role in cyclical variations
in velocity. Important secular ef¬
Their
reserve.
create
to
largely, if not complete¬
dissipated well before 1955.
ly,
opportunity cost of holding
are
stfong induce¬
minimum:
Pent-up demands and
purchasing
power
had been
balances
ments
a
money supply depends
(a) excess reserves and (b)
willingness of someone to borrow
nonbank
intermediaries
dollar
ability to
large the
sharply—from nearly 120%
1900 to 57% in 1949.
If Gov¬
in
frac¬
a
reserve
is
ot^ier postwar periods of price
increases.
expansion and credit' restraint, the
money and the increase
system, commercial
banks - can
create
a
multiple of
earning assets, and deposits for
percentage
a
in the
tional
prices
cited as more clearly a
cost-push than either of
of
case
scarcity of
the
compared
however,
assets
financial
>
requires
ways
in
open market
operations a
effective instrument of mon¬
permeate
f
of
of
etary policy. It enables the Fed¬
eral Reserve to conduct
open mar¬
ket operations on a
l! it'
I
analysis
also
we
broader
:
cial
in
as
with
intermediaries
in
accumulated
did not exist before. Under
finan¬
accounted
the
securities, are only one of
many forces tending to increase
velocity in periods of cyclical ex¬
pansion./ In periods of business
Commercial
nancial
consider
intermediaries,
on
the
ernment financial intermediaries
other hand,
large Federal debt may
cannot increase the
are
excluded, the decline is less
have strengthened
total
supply of funds available
monetary pol¬ marked but still substantial. ■ v7'
for expenditure.
icy. Growth of the Federal debt
They can only
These data do have significant transfer
was accoxnpanied
by a wider dis¬
existing funds from sav¬
implications for monetary policy. ers
tribution in the
to
borrowers.
Commercial
ownership of and
It is true that commercial bank
a broader market for
Government
banks, through their influence on
assets have grown less rapidly than the
securities." The development of a
available supply of spendable
■
rl
banks
usually
banks,
in
creating a deposit, put funds at
disposal of a borrower which
propor¬
total
for
financial
cannot.
clined
balanced
that
nation's
available
nonbank
bank
supply of
expenditure;
rise
1955-1957
The
secu¬
ernment
total
which the
!.Tt
F *t
I\
*
1949
compared with the burden avoided
by action to check rising prices
it
central
approximately the same percent¬
age
of total financial assets in
im¬
posed by somewhat higher interest
rates is likely to be small indeed
"
the
diminishing
a
the
of
commercial
anti-infla¬
some
in
assets."! These data show, that
cial
supply of credit relative to demand
Vi
resulted
the
velocity, the cyclical and
Thursday, February 4, 1960
.
mediaries, such as offering savers
higher rates and liquidating gdv-
in¬
banks
Commercial
increase
can
on
.
lar effects should be distinguished.
The activities of nonbank inter¬
commercial
financial
nonbank
termediaries.
Continued from page 14
offset
between
and
funds
*■
/
differences
banks
be
'»
i
For purposes of monetary pol¬
icy, however, there are significant
Monetary Policy—A 1914;
Model in the Space Age?
.
'
.
and
the
time
as
which
move as
cause.
to
the
I have
of
Cost-push is
tor
in
important fac¬
as a general
an
inflation, but
theory
of
quate.
Simple brand
as
inflation
it
inade¬
is
such
"demand pull," "cost push" and
"mark-up"
and
tend
clarify
In
inflation
to
the
spiral
rather
problem
tends
to
be
getting into the
labyrinth of trying to prove or
disprove statistically the cost-push
Unless
the
and
other, so
upward
cumulative.
whether it is the
of
inflation.
theory
Statistics,
however, also cast doubt on the
validity of the cost-push thesis as
costs
each
on
initiated
than
inflation.
of
rising
interact
once
oversimplify
confuse
inflation,
prices
that
names
the
principal explanation of recent
increases in the price level.
Strong
demand,
regardless
of
initiating cause,
essential condition for con¬
tinuation
of
the upward
is
an
spiral.
support
creases
demand
higher
would
is
sufficient, to
prices,
result
decrease in output
or
in
price
in¬
either
a
lower prices
Volume
Number 5922
191
other products. The in¬
labor unions over wage
rates and the influence of the in¬
dividual firm over product price
under conditions of oligopoly are
.
.
The Commercial and Financial Chronicle
.
for some
ways
fluence of
skill
rate
remain
to
tends
stead
expansion in
growth will
output.
be
rate
average
But
of
of
lower
momentum
prevented in the prosperity
phase of the cycle if stair-step
later
and
is to be avoided.
it
has
Concluding Remarks
sooner
end
in
though
been
not
lete
monetary
rendered
instrument
for
policy
will
operates.
impact on monetary policy
quite properly has been the sub¬
ject of
These
ing existing
inquiries
have
broadened
of
many
central
tional
of
from
us
bank
decades
who
tradi¬
essentially the
Those
ago. i
because of
not
am
....
tural
convinced
that
economists
.
struc¬
greatly increased the ' impact of
Treasury debt management poli¬
and-V frequent ;• refundings
have
hampered
the/ timing of
Federal Reserve actions; however,
economic policies can be
it has also contributed to
wider
a
securities,
of
broadened
monetary
actions,
and
operations a
market
open
effective
the i impact
instrument
of
policy.
made
Nonbank
financial
of self
expense
monetary
intermedi¬
primarily
at the
direct
forms
and
•t'* An
the
of
' The
seded.
growth of nonbank
intermediaries has provided the
public with
increasing volume
of "near money" assets but these
assets
address
by
Conference
Mr.
•
must
' be
All
ex¬
neces¬
and "
the-terms
on
estab¬
by the'central bank.
The
secular effect of the growth of the
intermediaries
the
on
velocity of
money appears to be greater
the cyclical.
{Intermediaries
parently make
usual
unique
no
contribution
to
than
or
ap¬
un¬
cyclical
formed
with
12
East
City,
41st
to
Street,
offices
tially
which
form
>
creeping
other
inevitable.
is
arise
may
lived
which
part
in
the
from
other
through
eras
of cer¬
inspired
"new" f theories.
Relative' - price
stability for an extended period
persistence
tain economic
conditions
:
in the twenties inspired
the thesis
that monetary policy had brought
us to a new era of
price and busi¬
ness
stability. I The business cycle,
many thought, was a thing of the
past." Persistent
unemployment
and stagnation in the thirties in¬
spired another new theory—that
of
a
mature economy
stagnation.
Has
and chronic
the
persistence
at
F.
Bastable
McAllister
as
1
-
LAKE
A.
at
the
.1
conducting
from
2249,^Berkeley
firm
name-.
Street
of
on
the
Investment
is
v
Ga.—Securities
the
-
economic
of
course
events may soon dispel?
The
push is
based
have
the
of
not
Street.
The
offices
at
205
Carr
firm
on
which
an
upward wageIt may well be
price spiral feeds.
that
monetary policy
cannot
packs
pro¬
its
towns
New
branch
office
Street
209
at
under
the
the
London;
of'Stamford
and
It
also supplies electric service in five
other towns in which it and an¬
other utility have franchise rights.
The total area served is approxi¬
mately 1,000 square miles and the
population is estimated at 675,000.
Gas is supplied to New London,
Stamford and Torrington and to
a
few
customers
Darien
in
and
Waterford.
of
As
Electric
Jan.
1, 1958, Hartford
Light merged with Con¬
necticut Power and this is expected
to result eventually in important
operating economies. In 1957, Con¬
necticut
had
Power
of
revenues
about $25
million compared with
$24 million for Hartford Electric
92%
com¬
derived from electricity
and 8% from gas. Industrial sales
pany
are
for
account
only 22% of electric
residential sales con¬
revenues;
tribute 38%
and commercial 29%.
While the City of Hartford is
insurance
center, the
an
served
area
has a wide variety of industries
including aircraft, electric equip¬
ment, machinery
and
machine
parts, and brass and copper prod¬
ucts.
The
1957-1958
much
not
retard
recession
the
did
economic
growth taking place in the service
areas.
This growth is manifest in
Investment Com.
v
of North
no
share.
par common stock
American
;
.
Investment
Corp.
which
facilities be¬
and
modernization
of
This expansion,
not confined to any one
is
areas.
at
$3
per
or
any
modernization.
The City of Hartford is now
&
developing its river front
some
/
acres—the
seven
.
of
area
country's
The
Connecticut
Joins Foster & Marshall
SHELDON,
branch
Iowa—State Bond &
Company has opened a
office
at
614
direction
Fifth
of
&
at
Oak Street.'
.
Taylor Invest¬
ment Co. of Wyoming, Inc. has
opened a branch office at
122
North Bent, under the manage¬
Nau
-
-
......
E. I.
—
E.
Marshall, Southwest Sixth Ave¬
nue
P.
Taylor In v. Branch
'v
Hagen Adds
new
Mesford
E. I.
is
now
—
Clifford D.
associated
with
Iowa — White &
Company has opened a branch of¬
fice at 22% South Dubuque Ave.,
CITY,
under
al¬ Mighell.
the
direction
of
Clark
after taxes.
$4.49
were
Share earnings in 1958
compared with $4.2.9
as
in 1957, including Federal income
tax
savings due to accelerated
company
generates
unit
completed in Middletown in
kw.
compared with
load of 419,900 kw.
Hartford
ings
Electrlcfs
record
has
share
been
irregular, due to the
reduction
in
Federal
income
resulting from accelerated
amortization, which would have
amounted to 73 cents a share (in
1958 they were approximately 57
cents a share). With the approval
of the state commission, the com¬
pany changed its accounting pro¬
cedure Jan. 1, 1959, when it began
normalizing the tax savings re¬
sulting from five-year amortiza¬
tion. However, it continues to use
"flow-through" with respect to
liberalized
depreciation; the
amount of the latter in 1959 is not
yet
available,
but probably ap¬
proximated 50 cents a share, since
in 1958 it
45 cents
was
Dividends
during 1950-55 but
raised to the
1958
78%
free"
it
and
substantial
is
share.
at
now
paid.
of
also
that
1960-63
be
In
"tax
were
estimated
part
$2.75
gradually
were
$3 rate
of dividends
dends will
a
remained
a
divi¬
nontaxable
as
ordinary income.
The stock has been quoted re¬
cently on the American Stock Ex¬
change at 63, to yield 4.8%. The
price-earnings ratio is about 17.3
but would approximate 20, it is
estimated, if tax savings due to
liberalized depreciation should be
excluded from
earnings.
Robert Edelstein
■
Sells U. S. Magnet
Pursuant
to
offering circular
Robert Edelstein
Co., Inc., of 15 William St., New
York City, offered and sold
150,-
dated
Jan.
an
15,
000i
shares of U. S. Magnet &
Alloy Corp. common stock at $2
share. The company is located
at 266 Glenwood Ave.,
Bloomfield,
per
N.J.
is
It
ment
the intention
to
use
the
of
manage¬
proceeds of the
offering in the following order of
priority:
(1) $87,800 for the purchase
mixing, melting, molding, bak¬
ing and protective equipment to
of
be
used
in the manufacture
alnico magnets and cast alloys.
(2)
raw
$45,000 for the purchase of
materials
manufacture
and
of
cast
to
of
be
used
alnico
in
the
magnets
alloys.
(3) $107,200 for addition to the
company's working capital and
utilization
for
general
corporate
about
November, 1958, generating facili¬
ties have a combined capacity of
499,820
the
taxes
purposes.
Including the 100,000 kw.
1958 peak
Earnings for 1959 have just been
at
$3.65
on
1,645,958
common stock,
excluding
reported
shares of
the
earn¬
somewhat
merger with
With Black & Co.
(Special to The Financial Chronicle)
PORTLAND, Oreg.
—
Paul A. V.
Weller has become affiliated with
Black & Company, American Bank
Building.
With Di Roma, Alexik
(Special to The Financial Chronicle)
Building.
Connecticut Power and changes in
SPRINGFIELD, Mass.—Joseph P.
accounting policy.
Share earnings
$2.96, but dropped
$2.81 in 1952, followed by a
sharp gain to $3.29 in 1953, $3.54
Barkett
in
Hagen & Co., Inc., American
Bank
a
95% of its electric power require¬
(Special to The Financial Chronicle)
PORTLAND, Oreg.
Alexik &
1950
were
1954
and
is
now
with
Di
Roma,
Co., 1387 Main Street.
to
With Zilka, Smither
IOWA
Co.
Mutual
home office in the Plaza.
ments.
•
ment of Clarence C.,Blackman.
White Opens New Branch
Trust
In-addition, the Phoenix
The
has become connected with Foster
Street
Harold
and
Life Insurance Company has been
(Special to The Financial Chronicle)
State Band & Mtg, Branch PORTLAND, Oreg.— Paul
Mortgage
Bank
considering the construction of
of
1 9 5 8
approximating
about 18 cents a share
or
re¬
cinnati,
Gerald R. Wilson.
$600,000,
were
single type of in¬
dustry, has been brought about by
Pursuant to an
offering circular the..migration of industry into
these, areas, .the formation of new
dated Jan. 29,
Howard, Coleman
Co.,- of 111 Broadway, New York industrial and commercial enter¬
City, offered on Feb. 1, 100,000 prises, and plant expansion and
Mill
West
direction
Company
in
penses
London
New
ing built in every suburban com¬
munity. It is also reflected in the
building of new and larger subur¬
ban shopping centers and in the
AUSTIN, Minn. — Dempsey- debt, reduction and working capi¬
tal.
■
/
•
.•
.«
' •;"
Tegeler
&
Co.
has
opened
a
rendered
monetary policy impotent or in¬
appropriate. Regardless of wheth¬
er
it; is
the
initiating force, a
strong total money demand is the
in
including
first Federally-sponsored commer¬
corporation, located in Cin¬
cial redevelopment project.
Two
Ohio, is engaged in fi¬
was
formerly
nancing; consumer purchases of corporations plan to relocate in
active in Columbus, Ga.
this area—the Travelers Insurance
cars, trucks, planes, and boats, and
Company's Television Center, and
in real estate
financing.
nr '
The proceeds are to be used for a 16-st6ry Office'building of'the
Dempsey-Tegeler Branch
business from
POWELL, Wyo.
costpush thesis for monetary policy
are
frequently exaggerated.
The
structural changes on which costimplications
towns
industry
conducting its
now
and
towns in its North-Central Di¬
downtown
Development
N,
future
board the vessel.
shares of the
DON ALSO
29
restoration
a
A.
Securities Investment
Connecticut,
operations are conducted in three
divisions.
The company supplies
Offers N orth Amer.
under
Vernon
of
sea¬
facilities
,.
offices
•
catching
own
theory—cost-push inflation-^—
which
fuel
is
business
the
productive
Howard Coleman
C.
CITY, Utah —Ver¬
Cooley
securities
areas
also the recreational
cessed
//. Vernon Cooley Opens
SALT
of
state
separate
portion
and. Alton
co-managers.
five
the number and quality of new
homes, schools, and churches, and
has opened a branch office
4828
Cordell 'Avenue
with
Edwin
in
serves
storage facilities
for
frozen
King Crab,
thereby
eliminating • freight
costs
from
Ouzinkie, Kodiak Island, Alaska,
to
Seattle, Washington, on the
& Co.
of-inflationary pressures in the under the
postwar; periodf inspired another McAlpine.
new
their
carry
BETHESDA, Md.—Harris, Upham
in
era
My skepticism of the cost-push
theory
having
in
inflation
of
an
some
or
the
of the company. The vessels would
Harris, Upham Office
Cooley Associates.
prices have ushered in
increase
and
son
at
:
dividual
"administer"
result "of
Arctic
waters
with
fleets
of
catcher boats, and should substan¬
New- York
a
securities
in
engage
business.
non '
to
been sold.
company
the
and
Royal Small Business Funds, Inc.
changes in velocity."
I am not yet convinced that the
increased
bargaining
power
of
labor and the power of many in¬
firms
the shares have
canning facilities when completed
Will represent the latest
thinking,
Royal Small Business
been
the
Light
consisting of one or more freezer so that the two companies
ships, and to outfit same.
The about equal in size.
About
design of these vessels and the of revenues of the merged
.
lished
City, completed its por¬
offering on Jan. 20.
....
money ; before they cah be spent.
Such
conversion
is at
the ini¬
tiative
Equi¬
additional floating equipment
into
converted"
an
eight years of
VALHALLA, N. Y. — Carl P.. experience by William A. Ritter
Mehne is
conducting a securities in the industry. These ships' so
business from offices at 17 Waver-,
equipped would be able to travel
ly Place.
throughout
the
North
Pacific-
has
in
three
intends to use
part of the proceeds of the present
issue to purchase and/or charter
Econ¬
views
of
electricity
Division
the
The
before
not
of
Electric
vision
including Hartford, West amortization. Excluding these sav¬
Hartford, East Hartford, Manches¬ ings, earnings werq $3.92 in 1958
ter, Middletown and Torrington; compared with $3.69 in 1957.
•
The Ross organization,
located at 99 Wall St.,
is
Hartford
Darien in its Stamford Division.
Corp.
tion
,
Anderson
to
New York
ef¬
Pennsylvania
<of
,
an
area.
shared with First Pacific
which
C. P. Mebne Opens
to
monetary actions than
the forms of. financing it super¬
practice. ;
Pittsburgh, Pa. The
pressed are the author's and
sarily those of the Bank.
financing.
The modern inter¬
mediary is undoubtedly more.sen¬
sitive
•
in
omists,
more
.
aries have grown
fective
more
Hartford Electric Light
and
ties
is to strive for progress in theory
in order that monetary and other
market for Government and other
asociated
since
was
changes
cies,
Benkert
offering circular
dated Jan. 13, Ross
Securities, Inc.
began selling the majority of a
60,000 share offering of the com¬
mon stock ( 50 cents
par) of PanAlaska Fisheries, Inc. on Jan. 18
at $5 per share. The underwriting
mended.
Inquiring minds are the
have, on balance, mainspring of intellectual prog¬
weakened monetary policy, as a ress; complacent minds bring in¬
tool
of
One of our
cyclical
stabilization. tellectual stagnation.
as
Growth of the Federal: debt has tasks
professional economists
I
W.
Pursuant
changes
but, tural
important monetary policy to searching an¬
alysis and criticism are to be com¬
:
left
questions unanswered..
A.
Fisheries
significant struc¬
have
subjected
controls
have
course,
of
Co., Inc., 52
Sells Pan-Alaska
though
the art of central banking
practiced today is a marked
improvement over that of four
complacency
effectiveness
the
to
&
as
and the economy and have roused
as
Even
are
Benkert
Ross Securities
same,
knowledge of monetary policy
our
tools.
W.
Street, New York.
Mr. Strong has been
izing in the Allentown, Pa.
be
the basic tools
searching inquiries.
some
A.
Mr. Lawfer has been associated
developed and that re¬
finements will be made in apply¬
The
of
with the firm for 23 years, special¬
sta¬
changes in the past, bilization, it does not follow that
half-century have indeed altered it cannot be improved.
It may
the
economic
environment
in, \yell be that more effective tools
monetary
OWEN ELY
Wall
1956,
prior thereto he was sales
manager of several manufacturing
organizations.
Structural
which
BY
Presidents of the investment firm
obso¬
cyclical
SECURITIES
Leonard E. Strong and Stanley E.
Lawfer have been elected Vice-
and
policy
an
PUBLIC UTILITY
Two Vice Pres.
with
or
recession
unemployment.
Even
IV
because
would
Benkert Names
33
eco¬
higher and
unemploy¬
if monetary restraint
is used to prevent or check an
up¬
ward spiral than if the
spiral is
permitted to continue and gain
ment
be
-
sufficient
rising
a
the long-run average rate
the
of decline during recession
that price increases must
inflation
with
spiral
retarding temporarily the
of
nomic
in¬
stable
level
applied
prevent
without
important reasons for wage and
price rigidity during periods of
recession. The fact that the price
means
be
to
(589)
(Special to Jnz ^Financial
PORTLAND,
Gilchrist
is
Oreg.
C^apriictE)
—
Duane
in
) ;■
G.
with
Zilka,
Inc., 813 South¬
west Alder Street, members of the
Smither
&
now
Co.,
Pacific Coast Stock
Exchange.
earnings
$4.17
were
in
slightly
1955.
1956
Edling-Williams Adds
(Special to The Financial Chronicle)
lower.
1958 marked the first
year
of operation following the
merger of Connecticut Power Co.
MINNEAPOLIS, Minn.—Grace B.
and
Williams
The year
Hartford Electric Light.
merger
involved
additional
The
ex¬
Baier and Robert B.
Phillips have
EdlingAssociates, 614 East
been added to the staff of
&
Grant Street.
V.
ifv
/ir
34
■
The Commercial and Financial Chronicle
(590)
.
.
Thursday, February 4, 1960
.
'it*
^
»
ADDITIONS
* INDICATES
Now
Securities
<1 *
in
SINCE
ITEMS
•
ISSUE
PREVIOUS
REVISED
U!
•■
*.<
i
•
Bros.
Aaronson
filed
29
Dec
sto'bk
ferred
amendment.
shares of 70 cent cumulative pre¬
(par $2.50).
Price —To be supplied by
Proceeds—To pay for opening, equipping
and stocking three new stores in El Paso,- San Luis,
Ariz., and San Diego, Calif. The balance of the pro¬
ceeds will be added to the company's general funds and
Mil
used
?>:
stores
primarily
that
may
East Overland
fi.
to open, equip and stock
additional
be opened in the future.
Office—526
Underwriters—
Avenue, El Paso, Texas.
Eppler, Guerin & Turner, mc., Dallas, Texas, and Harold
S. Stewart & Co., El Paso, Texas.
/!
\
Accurate
•
'i
1
?A
/»;
mon
i
f
jh
for
lif
f' <<
■
&
and development,
research
and
advertising
Leadwelf*otreet, N.
Oflice—13215
working capital.
Hollywood, Calif.
Underwriters — Amos Treat & Co.,
Inc., New York and Arthur B. Hogan, Inc., Los Angeles,
■'V ' !
i /; If<
■
16
ceeds—For
f'f
1
-
Electronics, Inc.
(2/11)
(letter of notification) 150,000 shares of com¬
stock (par 25 cents). Price—$1.50 per share. Pro¬
Dec.
t\
Calif.
j,
-y;/y;/,/;./■,■/., /
.
Union Securities Investment
amount.
will receive
Underwriter—None.
•
200,000 shares of capital stock. Price—$8
Proceeds — To increase capital and surplus.
share.
per
offered
in
units
notes and
separately transferable only
unless
an
«l)'
•
Aetna
(2/8-12)
common
stock
(par $1), of which 75,000 shares of the common are to be
offered for the account cf a selling stockholder and the
v
..
of
rest
f •' i#v
.it'
suing
the
offering is to be made
Prices—For
on
behalf
of the is¬
the
debentures, at 100%
plus accrued interest from Feb. 1, 1960; for the stock, to
be supplied by amendment. Proceeds—For general cor¬
porate purposes, including the reduction of indebtedness.
company.
Office—Clayton, Mo. Underwriters — Scherck, Richter
Co., and Dempsey-Tegeler & Co., both of St. Louis, Mo.
Agricultural
Research
Jan. 25 filed 200,000
U
S
i
•
Proceeds
common
Inc.
To
—
Pa.
'
'..v
...
1
Aircraft
■Hi"
■k
mon
'if
(par 10 cents).
Price—$3 per share. Proceeds
corporate purposes. Office—229 S. State
Co., Inc.
filed
17
3,000,000 shares of common stock (par
Price—$2.50 per share.
Proceeds—For fur¬
ther development and exploration of the oil and gas po¬
tential of the company's Alaska properties. Office—80
Wall Street, New York. Underwriter—C. B.
Whitaker,
A. J. Zappa
Co., Inc., New York. Offering—Expected
any day.
five cents).
/!'
41
t.
■V;
■
1
I V''
fi
Allied Bowling Centers, Inc.
Dec. 29 filed $750,000 of
sinking
stock. Price—$108 per unit. Proceeds—For general cor¬
porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas.
it*.
American
.ft
per
share.
L.
«1
'j<
ft
Price—$1
Proceeds—For working capital to be used in
of
offering is to be made by John
Hedde, President of the issuing company and owner
10,000 of its 80,000 presently outstanding shares.
Mr.
Hedde will work
ceive
on
"best efforts"
a
selling commission
a
Arkansas
sales
and
15
of
cents
12
per
basis, and will
cents
share
re¬
share on
out-of-state
per
on
sales.
ir Alpha Zeta Alumni Association
(letter of notification) $75,000 of 3% debenture
bonds to be offered mainly
by personal solicitation by
of
the
Proceeds-—To
144
association.
build
a
Price—At
face
amount.
fraternity house. Office—
E. Thirteenth
Ave., Columbus, Ohio. Underwriter—
new
None.
READ MOST
American
Dec.
5r
}
Land
14 filed
i
'
,!
j*
1
i
;.
..
T
*•
il
out
i
.
J i
w 1
f
Bankers
Chicago Tribune is the Chicago newspaper business
they read most frequently. This fact was brought
by
a
1959
of
survey
corporate officers and executives
listed in Dun and Bradstreet's "Million Dollar
Directory".
To sell your securities in the multi-billion
dollar market of
Mid America, advertise in the
Chicago Tribune. See your
Tribune representative for details.
(rijicago 0*ikme
THE
WORLD'S
Mid America's
ml
L
most
GREATEST
Management Corp.
^
Sept. 10 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—;
For
working capital.; Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark
J.
Offering—Postponed due to change in structure
N.
of issuer.
(: ■ ,• ;
.
\ .- •
/. - ;
Bastian-Morley Co., Inc.
$650,000 of convertible first mortgage sink¬
ing fund bonds. Price—At 100% of principal amount.
Proceeds—To buy about 50.6%
(67,808 shares) of its
outstanding common from the family of one of its found¬
ers, the late James P. Morley.
This will cost $542,466.
,
v
Jan. 18 filed
Co.
The remainder of the
300,000 shares of class A preference stock
tirement
($15 par) and 300,000 shares of common stock, to be of¬
one share of preference and one share
of
tures.
supplied by amendment. Pro¬
ceeds—For property acquisition and development.
Of¬
fice—49 E. 53rd Street, New York City. Underwriter—
Hemphill, Noyes & Co.
Offering—Expected in Feb¬
ruary.
/
;
& Trust
1,882,718 shares of common stock. Price—
supplied by amendment. Proceeds—For acquisition
derwriter—None.
..
ir American Molded Fiberglass Co.
>
V
Jan. 29 (letter of notification) 300,000 shares of
stock
For
(par 10 cents).
Price—$1
general corporate purposes.'
Paterson, N. J.
York,
N.
share.
per
shares
Un¬
properties,
E.
and
42nd
common
yTexas.
Proceeds—
NEWSPAPER
widely circulated market table
St., New York City.
,
real
estate.
Service
Life
Insurance
•
'
Anadite, Inc.
Price—To be
supplied by amendment. Proceeds—To buy,, plant and
property, repay bank indebtedness, and add to work¬
ing capital.
Office—10630 Sessler Street, South Gate,
&
&
pages
Britton
19
Jan.
R.
20
filed
Co., San Francisco,
25
and
oil
located
in
certain
counties
in
Okla¬
Price—$10 per share; Office—523 Marquette Ave.
Minneapolis, Minn. Underwriter—None.
Arcoa
Inc.
$6,000,000 of U-Haul Fleet Owner Contracts
and $3,000,000 of Kar-Go Fleet Owner Contracts.
The
contracts provide for the operation of fleets of-auto¬
mobile-type rental trailers in the U-Haul Trailer Rental
System
or
E.
S.
the Kar-Go Trailer Rental System. Office—
Hawthorne Boulevard,
Portland, Ore.
SEC
clearance is expected about March 1.
ir Associated Acceptance Corp.
Jan. 21
(letter of notification) $150,000
stock. Price—To
Offering—Expected in February.
of
filed
A
Dillon, Union Securities
1
.
'
••
•
"
•-
-•
;
*
.
& Co., New York'/N. Y.
7
7
■
"
r.
,
•*
■
.€
>7v-«
Sept. 25 (letter of notification) 120,000 shares of class A
common stock
(par five cents). Price—$2.50 per share.
Proceeds—For building and
equipping stations and truck
stop and additional working capital. Office—C/o Garr
land D. Burch, at 707, Grattan
'
Road, Martinsville, Va.
Underwriter—Maryland Securities Co.,- Inc., Old Town
Bank Building, Baltimore
2, Md.'
'
"
;
ir Burke:.Concrete. Accessories,..Inc.
'
Dec. 31 (letter of
notification) 2,000 shares of class B
common
stock
(par
$10)
to
be
offered
to
certain
key
employees
Dec. 28 filed
4707
common
Electronics
(letter
#.
'/.
homa.
*
Proceeds—To selling stock¬
O. Underwriter—Wertheim
Burch Oil Co.'
500,000 shares of
leaseholds
290,000 shares of
series
Eastman
4
common stock
(par $1)
exchange for undivided interests in gas
;// /.;
v
amendment.
working capital. Office—111 Mar¬
I. Underwriter—Lapham & Co.,
,
■
150,000: shares of cumulative preferred
(par $100). Price—To be supplied by
Proceeds—For repayment of bank loans
outstanding at "Jan. 1, 1960. Office—176 Remsen Street;,
Brooklyn, N. .Y. Underwriters—Blyth & Co., Inc. and
.
stock,
(letter of notification) 74,800 shares of common
stock (par $1). Price—$4 per share. Proceeds—To.
repay
current debt and for
Office —1609\Texas
stock
•mon
Jan. 28
a
y
Co.,'New York City.
Jan.
\
ir Ansonia Wire & Cable Co.:
of the company pursuant, to the
Employee
Stock Purchase Plan. Price—At book
value. Proceeds—
For
working capital. Office—Avery & McAllister, coun'company, 220 Bush St., San Francisco, Calif.
sel for the
Underwriter—None.
California Metals Corp.
July 27 filed 2,500,000 shares of
common
stock.
Price-—
At par (20 cents per
of a pilot plant; for
share). Proceeds—For construction
measuring ore; for assaying; and for
of
714%
con-
-
„.
Corp.
.,/•/;'//*
//
notification) 225,000 shares of com(par one cent). -Price—$1 per share. Pro¬
ceeds—For, general- corporatei purposes.-/ Office—213-20/
99th Ave., Queens
Village 99, N, Y. Underwriter—First
Philadelphia Corp., New York, N.; Y.'c'Brooklyn Union Gas Co./ (2/24)
•••'
-
Underwriter—Dean Witter
purposes..
Office—Cleveland,
(2/19)
Calif.
Bowman Co.
Jan. 27 filed
'
possibly, the. acquisition of simi- 7,
larly engaged companies. Office — 113 Northeast 23rd >
Street, Oklahoma City, Okla. Underwriter — First In¬
vestment Planning Co., Washington, D. C.
f
\
Jan. 18 filed 50,000 shares of capital stock.
general/corporate
be. supplied by amendment.
holders. '
including,
•;.<; >
-Street, El Paso, Texas. Underwriter—None;//
Sept. 14 filed 300,000 shares of common stock (par 400)/
per share. Proceeds—For general corporate
purposes,
••
Rolling Mills, Inc.
Price-r—To be supplied by amendment.. Proceeds—
For
Price—$3.50
•
held.
•
Underwriter—
Co.
:y
Steel
Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription .to stockholders of
record Aug. 31,
1959,. on. the basis of 49 new shares for each share then
Gabriel Co., Inc., New York City.
J.
/
•• •-
Border
mortgages, develop and im¬
acquire "additional
—
.
of necessary equipment.
Office—1609 Texas
Street, El Paso, Texas. : Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,-
ir American & St. Lawrence Seaway Land Co.
27 filed 538,000 shares of common
stock, of which
350,000 shares are to be publicly offered. Price—$3 per
Office—60
stock.; Price
Proceeds—For the
common
stallation
Jan.
prove
of
amendment.
Office—85 Fifth Ave.,
Underwriter—First City Securities, Inc.,
Y.
share. Proceeds—To pay off
Co.
To be supplied by
purchase of land and
construction thereon, and for the manufacture and in¬
pur¬
v
'V-.
•;
Unr
City Securities Corp., Indianapolis 4, Ind.
Registrar—American Fletcher National Bank
—
Rolling Mills, Inc.
Sept. 14 filed - $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and .210,000
shares of common stock ($2.50
par), to be offered in
units of $50 principal amount of debentures
and five
■
businesses and for general corporate
Office—101 E. Ontario Street, Chicago, 111.
proceeds will be applied to the re¬
junior ^convertible 5% deben¬
issuer's
Border Steel
25 filed
poses.
the
Office—200 Truesdell Avenue,
LaPorte, Ind.
Trustee &
American-Marietta Co.
Jan.
of
derwriter
Price—To be
common.
to be offered in
leaders say
*1
Trust
;■
Apache Properties, Inc.
FREQUENTLY!
The
land, construction, purchase of machinery and equip¬
and for working capital. Office—2325 Annapolis
Avenue, Baltimore, Md. Underwriter—P. W. Brooks &
Co., New York City.
fered in units of
Nov.
y
&
of
ment,
Mart, Ne«w Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La.- The SEC
had scheduled a hearing, to begin on Sept.
2, which will
determine whether a stop order will be issued suspend¬
ing the offering.
No decision has been announced.
Street, Ashton,
New York, N. Y.
•
Office—Title
company.
preferred, $20 per share. Proceeds—For general cor¬
porate purposes including repayment of loan, purchase
Investors
tin
y
Street,
the
national Trade
Calif.
Jan. 21
members
11th
12-year warrants granted said insurance company to
purchase 15,000 shares of the issuer's common at a price
to be specified.
Prices—For the debentures,-at pgr; for
of which
(50,000) of the class B have been'
Foundation Life Insurance Co., and
common,
filed
American
the purchase of oil and gas
properties and related forms
of investment. Office—115 Louisiana
Street, Little Rock,
Ark. Underwriter—The
fi
W.
Office—301
(c) $750,000 of 6%%' first mortgage bonds, due
1972, sold to New York Life Insurance Co., along with
and 50,000
50,000 shares of
Syndicate, Inc.
600,000 shares of common stock (par 10 i
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting
of 3 shares of common ($1 each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
25
June
A.
Allied Producers Corp.
Dec. 3 filed 1,000,000 shares of common stock.
k
stocks.'
common
and
(2/15-19)
fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
;,i:
"•
common
Bldg., Phoenix, Arizona. Underwriter—None.
New
•
4;.
«
Co.
of additional
Alaska Consolidated Oil
Investment Fund
•
all
13-monfh-old
To be
Sept.
■
■t
;
the
•
v
r
B
and
general
Street, Dover, Del. Underwriter—Aviation investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
i
>»
stock
—For
v-
•i'
•
Dynamics International Corp.
(2/15)
(letter cf notification) 100,000 shares of com¬
Sept. 25
■
City, Mo. Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc. //'
5 :
to by
16,667 shares of the class A are reserved for issuance
upon the exercise of an option granted an agency di¬
rector. Price—$4.50 per share (for the 250,000 shares to
be publicly offered). Proceeds—For capital and surplus
stock.
Price—$5
purchase land, to construct
buildings, and provide necessary equipment and capital
to engage in a hog raising enterprise. Office—Wiggins,
Colo.
Underwriter—W. Edward Tague Co., Pittsburgh,
share.
per
■
Development,
shares of
Philadelphia 2, Pa;1
y.y /,' /.'''
St.,
,
$5,000,000 convertible subordinated deben¬
tures, due Feb. 1,1975, and 200,000 shares of
\ //
r
Finance Co.
filed
A
subscribed
of
Dec. 22
;
Bowling
>»>'•>
K- ■;'
>
Inc.,
Green, Ky.
f'-or
!' J:;
v
Co.,
Insurance
316,667 shares of class A
class
of
class
Life
Industries
'•
••
•
American
the
Securities
ment' in
and after
querque.
shares
Crescent
•
company.
21
—
Walnut
Baltimore Paint & Chemical Corp. (2/24)
Price—$300 per unit. Proceeds—For
Jan. 22 filed (a) $750,000 of
sinking fund debentures,
general corporate purposes, including, construction equip- / 6V2
series, due 1975 with eight-year warrants for the
ment, and working capital.
Office—323 Third Street,purchase of 22,500 common shares,-at the rate of 30,.
S. W., Albuquerque, N. Mex.
Underwriters—Jack M.
shares for each $1,000 of debentures; (b): 90,000 shares
Bass & Co., Nashville, Tenn., and Quinn &
Co., Albu¬
of 6y2% cumulative convertible first preferred
stock;
the
of
stock
Underwriter
Office—1512
Kansas
July 1, 1960
earlier date is fixed by the Board of Directors '
on
of
Aug. 28 fifed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬
stock will be
common
denominations
Associations
':
-
<
■
consisting of $100 principal amount of
40 shares of stock. The
ir Acme
V <<11
(2/10)
Gypsum Co.
Dec.-4 filed 480,000 shares of common stock and $1,200,000 of 7% first mortgage notes, due Dec. 1,' 1969, to be
Jan.
>j!|
in
r
Ave., Memphis, Tenn. Underwriter—
Co., also of Memphis, which
selling commission of $1.20 per share.
a
American
,'■>
Wholesale Corp.
(letter of notification) 295,000 shares of com¬
(par 10 cents). Price—$1 per share." Proceeds
—To purchase merchandise for payment of notes and
accounts payable, and for advertising and
other ex¬
penses.
Office—410 Studekum Bldg., Nashville, Term.
debentures
Office—1455 Union
filed
30
Dec. 18 filed
mon
vertible
payable Feb.' 1, 1970 to be offered
$1,000 each. The securities are
being exchanged for the same amount of 7 % debentures
having a maturity date of Feb. 1, 1968. Price—At face
Nov.
,
fV,/
r
American Frontier Life Insurance Co.
(2/15)
Corp.
Stores
40,000
general corporate purposes. Office—3955 South State
St.,
.
Number 5922
191
Volume
City, Utah.
Salt Lake
.
.
.
The Commercial and Financial Chronicle
Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.
California Water & Telephone Co.
$
i
fy
supplied by amendment.
be
(2/9)
Proceeds—To be ap¬
plied to 1960 construction expenditures, which are esti¬
mated at $13,387,000.
Office—300 Montgomery Street,
San Francisco, Calif.
Underwriter—Blyth & Co., Inc.,
Russ Building, San Francisco 4, and New York City.
^ Calvert Gas & Oils, Ltd.
j
29 filed 350,000 shares of its outstanding common
stock. Office—79 East Don Roadway, Toronto, Canada.
Underwriter—The shares will be sold from time to time
on
Jan.
by Morris Mizel,
%
Pre^dent of the issuer,
ing
.
Soup
stockholders. ^Office—375 Memorial. Ave., Camden
N. J. Underwriter—The, First Boston Corp., New
.1,
York, N. Y.
Mines
To
\
Ltd.'
shares of ■ capital stock. Price—
supplied by amendment. Proceeds—For explora¬
filed
22
Dec.
-
,
Can-Fer
P
i
Co.
(2/16)
.v;
/
-?::
Jan.: 28 filed 1,000,000 shares. of capital stock. Price—
To be supplied by amendment. Proceeds—To go to sell¬
Campbell
be
300,000
"best
a
efforts"
basis.
Airlines,
Inc.
Offering—Expected
in
Feb¬
ruary.
•
Capital
(2/19)
Jan. 26 filed 909,659 shares of common stock on the basis
of one additional share for each share held. Proceeds—
To
broaden
equity base. Office—Washington National
Airport, Washington 1, D. C. Underwriters — Lehman
Brothers and Smith, Barney & Co., New
York, N. Y.
Captains Club, Inc.
500,000 shares of
.
$
development of mining claims. Office—Toronto,
Underwriters—Pearson, Murphy & Co., Inc.,
Emanuel, Deetjen & Co., both of New York City,
Canada,
shares of common stock, of which
200,000 shares are to be offered to the public and 10,000
shares are to be offered to employees of the issuer. Price
To
tion and
and
8 filed 210,000
Jan.
(591)
Jan. 22 filed
stock.
Price—$2
$52,860 of 6%
notes and the balance for operating funds and
working
capital. Office—381 Fifth Avenue, New York City. Un¬
derwriters—G. Everett Parks & Co., Inc., and Sulco
Securities, Inc., both of 52 Broadway, New York City.
share.
per
Proceeds—For
Cardinal
Nov.
30
of
Petroleum Co.
filed
Price—$4
common
retirement
per
Natural
Gas
Corp.
(2/15-19)
Dec. 30 filed 120,000 shares of common stock. Price—To
be
supplied by amendment.
Proceeds—For debt re¬
duction, construction, and working capital. Office—256
First Avenue N. W., Hickory, N. C. Underwriters —
Cruttenden, Podesta & Co., Chicago, and Odess-Martin,
Inc., Birmingham, Ala.
ic Carry-All Trailers, Inc.
27 (letter of
notification) 75,000 shares of common
stock (par 20 cents).
Price—$2 per share.
Proceeds—
For
inventory and equipment, promotional campaigns,
and working capital.
Office—3140 Island Road, Phila¬
delphia 42, Pa.
Underwriter—None.
Jan.
•
Cars
Rental
System, Inc. (2/5)
(letter of notification) 100,000 shares of com¬
mon stock
(par $1).
Price—$3 per share.
Proceeds—
For
working capital.
Office—938 Sunrise Lane, Fort
Lauderdale, Fla. Underwriter—Jerry Thomas & Co.,
Inc., Palm Beach, Fla.
Jan.
14'
«
200,000 shares of common capital stock.
share! Proceeds—For general corporate
including
dfebt reduction, drilling and work¬
ing capital. Office—420 No. 4th St., Bismarck, North
Dakota.
Underwriter—J. M. Dain & Co., Inc., Minne¬
apolis, Minn. Offering—Indefinite.
"
purposes
Carolina
35
Cascade Pools Corp.
Nov. 30 (letter of
(2/15)
notification) 100,000 shares of common
(par. 10 cents). Price—$1 per share. Proceeds—For
general corporate purposes. Office—River & Wood
Sts.,
Butler, N. J. Underwriter—R. A. Holman & Co., Inc.,
New York, N. Y.
stock
Century Properties
Jan. 25 filed 150,000 shares of common
stock.
be supplied by amendment.
ISSUE
NEW
r> February
(No
Thomas
Tennessee
....iL.Common
Co.,
&
Telegraph
&
underwriting)
(Bids
System, Inc.___
(Jerry
Telephone
Inc.)
(Stone
$300,000
Gas
invited)
be
(Monday)
Finance
Aetna
(Scherck, Richter
Richter
(Scherck,
Natural
(Bids
Gas
be
to
shares
Securities
Tayco Developments,
(Offering
Stoltz
Devices,
Taylor
(Blyth
Co.,
&
(Bids
f
'
.
.
'
.
.
'
(Jack M. Bass &
4
American
Blauner
D.
and
Soroban Engineering,
(R.
Sta-Brite
Dickson &
S.
Co.,
&
Fluorescent
$700,000
Brooks
Inc.
Accurate
(Amos
&
Inc.
Co.,
,
&
Public
.
Service
a.m.
(Burnham
National
Stearns &
Co.
of
(Burnham & Co.)
••
(Bids
Common
Ltd
Commerce
(Monday)
Investors
Guerin
Allied
''
Allied
Turner, Inc; and Harold
40,000 shares
Pierce & Co., Inc.)
-
Carolina
Gas
Pools
(R. A'J Holman
& Co.)
Nord Photocopy & Business
March
Bay
Kletz
&
Co.,1 Inc.
April 7
Alabama
„
June 2
Common
First
July
(Lehman
*
July 7
.
'
:J
York.
be
invited)
Bonds
$40,000,000
Bonds
invited) $50,000,000
First
Co
Preferred
to
be
invited)
$7,500,000
November 3
to
be
invited)
(Thursday)
the
i
..
*.
i'
l
issuing company's 6%
convertible
debentures, and
Bonds
(Bids to be Invited)
"
Aug. 28 filed 448,000 shares of common stock (par 20c),
of which 1198,000 shares are to be offered to holders of
$5,000,000
Georgia Power Co
Offering—Expected
Consolidated Development Corp.
Bonds
(Bids
Albany Corp., Albany, N. Y.
next week.
$50,000,000
Gulf Power Co
1,000,000 shares
Computer Usage Co., Inc.
Dec. 29 (letter of notification) 47,000 shares of common
stock (par 25 cents). Price—$5 per share. Proceeds—For
general corporate purposes. Office—100 W. 10th Street,
Wilmington, Del.
Underwriters — Marron, Sloss & Co.,
Inc. (handling the books), and Roosevelt & Gourd, New
York, N. Y.; L. B. Schwinn & Co., Cleveland, Ohio; Don¬
aldson, Luskin & Jenrette, Inc., New York, N. Y. and
$19,500,000
(Thursday)
(Bids
Offering—Indefinite.
Bonds
be invited)
(Thursday)
Generating Co
Gulf Power
,
?
$4,000,000
(Friday)
Valley Authority
———Debentures
Brothers)
Bonds
invited)
be
(Bids to be
Hi-Press Air Conditioning Corp. of America—Com.
(Plymouth Securities Corp.) $600,000
f
1
Tennessee
.Common
Capital
Boston Corp!)
$14,000,000
Co
(Bids to
Common
Campbell Soup Co
(The
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in Units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock.
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
Bonds
invited)
Southern Electric
(Tuesday)
Dayton Rubber Co
be
Refining Corp.
Dec. 16, 1957 filed $25,000,000 of first mortgage bonds due
(Thursday)
Power
and Amos Treat & Co., Inc.)
\
to
(Bids to
$300,000
February 16
to
•(Bids
$1,050,000
Treat & Co., Inc.)
Inc.
Commerce
Commerce Oil
$1,500,000
-
36,400 shares
Universal Transistor Products Corp
(Michael G.
Debentures
underwriting)
15
Equipment Co.—Com.
Industries,.Inc.-—
(Amos
I
March 17
(Thursday)
Mississippi Power Co.—
120,000 sns.
Inc.-——Common
——————
Electronics
filed
Drug Co. (2/29-3/4)
90,000 shares of common stock. Price—$6.50
per share.
Proceeds—To selling stockholders.
Office—
505 Court St., Brooklyn, N. Y.
Underwriter — Marron,
Sloss & Co., Inc.
Offering—Expected in February.
(Monday)
(Bids
(Hill, Darlington & Co.);$816,725
South
•
(Tuesday)
Central Illinois Light Co
$300,000
(Myron A. Lomasney & Co.)
Puget Park Corp
30
Nov. 30 filed
Common
Corp.
$100,000
& Co., Inc.)
(Charles Plohn
$585,000
—
General Aluminum Fabricators,
•
14
(No
—--—--Common
Corp.-—-
Inc.)
Price—
-
$750,000
Corp.-—
(Cruttenden, Podesta & Co. and Odess-Martin, Inc.)
Cascade
Common
:—Debentures
(Rauscher, Pierce & Co., Inc.)
Natural
Common
Co.,
stock.
800,000 shares of common stock (par $1);
Price—$2.50 per share. Proceeds—For general corporate
purposes, inclding expansion, new product development,
and working capital. Office—135 S. La Salle
Street, Chi¬
cago,
111.
Underwriter—David Johnson & Associates,
Inc., Indianapolis, Ind., on a "best efforts" basis.
$25,000,000
Co
&
common
(letter of notification) 300,000 shares of pre¬
(no par), seven cents per share dividend paying
Combined
Bonds
invited)
Sloss
19
Oct.
300,000 shares
Inc
Centers,
Bowling
Common
(Charles Plohn & Co.) $3,000,000
March
Secode
Centers, Inc.---——
(Rauscher,
Bonds
$14,000,000
(Tuesday)
Corp.
.
S. Stewart & co.j
Bowling
"
'
&
Oklahoma
be
Pro¬
in
after
Co.)
1
Dworman
$300,000
.——Preferred
Aaronson Bros. Stores Corp
(Eppler,
March
Corp.—-Common
of America, Inc.)
&
(Monday)
Drug
(Marron,
Aircraft Dynamics International
(Aviation
to
February 29
207,500 shares
i>
February 15
Bros.
shares
invited)
stock
March 1, 1962,
non-cumulative, non-voting stock.
Price—$1 per share. Proceeds—To purchase land and
for development and
working capital. Office—3395 S.
Bannock Street, Englewood, Colo. Underwriter—Diver¬
sified Securities, Inc.,
Englewood, Colo.
Common
and Sutro
by amendment.
—
ferred
$20,000,000
Co.
invested
supplied
Colanco, Inc.
February 26 (Friday)
Dayton Power & Light Co
& Co.) $2,000,000
Rental,
Equipment
EST)
be
be
be
Jan.
(Kidder, Peabody & Co.) 174>,576 shares
Inc.) $225,000
Ltd.——Debentures
National Equipment Rental,
Union
Debentures
11
Casualty Co. of New York
250,000 shares of class A common
—
$15,000,000
Chemicals, Inc
Common
Arthur B. Hogan,
Dillon,
stock, to be of¬
supplied by amendment.
Proceeds
To reduce
indebtedness.
Office—250 Park Ave., New York City.
Underwriters
Bear, Stearns & Co., New York City,
and H. M. Byllesby &
Co., Inc., Chicago. Offering—
Expected in late February.
Debentures
Co
Co.; Bear,
To
Bonds
$750,000
Eastman
common
of record Jan. 1 at the
shares for each three shares then held.
Clinton Engines Corp.
11 filed 350,000 shares of
$750,000
Corp
Speedway, Inc.
stockholders
Jan.
Preferred
400,000
Texize
Inc.______—
and
Co.)
Office
income-producing securities.
Office—33 Maiden Lane, New York
City. UnderwriterLee Higginson Corp.
Offering—Postponed.
Corp.—..—Preferred
Co.)
($10 par)
to be
par),
Proceeds—To pay mortgages.
Price—To
ceeds—To
$1,800,000
Phillips Developments, Inc
(Thursday)
Electronics,
Treat
&
new
filed
9
(par $2).
150,000 shares
Co.)
&
and
(Bids to be
February 11
Co.)
&
Brooks
W.
(Bids
(Allen
Nov.
$51,000
Chemical Corp.-
Common
Mfg. Co
(Charles Plohn & Co.)
&
Duquesne Light
100,000 shares
Inc.)
Co.,
&
Chemical
Brooks
(Blyth & Co.,
Common
Inc
Inc.)
Brooklyn Union Gas Co
164,689 shares
Inc.)
Co.,
common
Citizens
shares
-Common
Pont
&
W.
(P.
Common
Peabody
&
Securities & Co.)
Row, Peterson & Co
68,000
(Wednesday)
W.
(P.
$1,300,000
Inc.)
Inc.)
Baltimore Paint & Chemical
Feuer)
Common
Securities,
du
Paint
Baltimore Paint
Co.
&
I.
(P.
Common
David Finkle
$165,000
Inc.;
Co.,
Rose &
Inc
(Hilton
(Kidder,
Baltimore
480,000 shares
Co., Inc
&
Gartman,
News,
Co.)
Co.,
Videotronics, Inc
Common
and Quinn &
Co.
Electronics
(Milton
Pathe
&
Bass
&
Debentures
February 24
$1,200,000
..Common
Holman
A.
(Francis
Quinn & Co.)
ana
A.
(R.
Notes
Gypsum Co
(Jack M.
Control
Co.
Holman
MPO
February 10 (Wednesday)
Gypsum Co
shares
Magic, Inc
*'
American
'
(R.
(20c
to purchasing stockholders for an additional 10
days, after which such shares may be publicly offered.
Proceeds—For construction of a
speedway and its ac¬
cessories. The issuer expects to
stage its first stock car
race in May.
Office—108 Liberty Life Building, Char¬
lotte, N. C. Underwriter—Morrison & Co., Charlotte.
909,659 shares
Inc.—
Debentures
'
■
& Co.)
152,241
,Co.)
stock
shares
Common
-
&
B
Price—$2 per share, initially; after 15' days from the of¬
fering date, the underwriter will offer unsubscribed
Capital
shares
Common
Podesta
Magic,
Glass
invited) $12,000,000
be
to
50,000
class
share of each class of stock. Price
filed 304,000 shares of
to
rate of two
(Tuesday)
Glass
Debentures
fered
$50,000,000
Co.)
&
unit.
per
of
one
Charlotte Motor
Jan. 21
;;
Witter
(Cruttenden,
$30,000,000'
shares
(Friday)
February 23
Culligan, Inc.
;
Co
Service
Electric
110,000
(Lehman Brothers and Smith, Barney
Common
Co
Metropolitan Corp
(First Boston Corp.)
invited)
250,000 shares of class A stock
shares
Underwriter—Commonwealth Secu¬
rities Corp., Columbus.
Bonds
be
filed
—Columbus, Ohio.
Common
Co.)
Capital Airlines, Inc.—.
by C. E.
210,000 shares
Inc.)
$100,000
(Thursday)
to
26
250,000
—$20.20
Companies, Inc.--Com.
Co._
(Dean
$537,788.75
& Telephone
Power
Jan.
offered in units of
—
(Tuesday)
February 9
California Water
Common
Forms, Inc
February 19
Anadite, Inc.
E.
Common
Co.)
&
Co.)
71,090 shares
Inc.)
Unterberg, Towbin
(Bids
Common
Inc
Stoltz
Texas
Duke
C.
E.
February 18
$300,000
stockholders—underwritten
(Offering to
Montreal
Common
$154,962.50
Co.)
Weld &
(Wednesday)
& Chemical
Lewis Business
(C.
Inc.__
&
Howe Plastics
Co.)
Debentures
stockholders—underwritten by
to
February 17
$25,000,000
Corp.)
Office—1738 S. La Cienga Boulevard, Los
Angeles, Calif.
Underwriter—Daniel Reeves & Co., Beverly
Hills, Calif.
Certified Credit & Thrift Corp.
-Common
and White,
and
(Hilton Securities,
Florida West Coast Corp.—
(Midtown
tura, Calif.; to pay the balance of construction costs on
building in Torrance, Calif, and for working capital.
a
shares
(Dominick & Dominick)
•
—Common
&
Co._
Securities Corp.
Polymeric Chemicals, Inc
--
a..
Co
invited)
200,000 shs.
Co.)
Dempsey-Tegeler
and
Co.
200,000
Consolidated
S.
Common
and Dempsey-Tegeler &
Co.——______
Finance
Aetna
U.
Co._!
Co.
-Common
$72,000,000
Transmission
Webster
&
to
1,500,000
February 8
Co
$143,509,000
Pacific Telephone & Telegraph Co.——Debentures
(Friday)
5
Rental
Cars
Pacific
CALENDAR
Price—To
Proceeds—For repayment of
unsecured bank loans; for payment of the balance
of a
down payment on the purchase
price of property in Ven¬
»
i
1
.
Continued
$12,000,000
1
-
i
..
J
*
»
«.
r
,
on
page
36
.•-A
36
(592)
The Commercial and Financial Chronicle
Continued from page 35
ceeds—For
to be offered to the underwriter, with
are
the remaining 150,000 shares, in addition to those shares
described
holders
above
the
and
subscribed
not
underwriter,
for
the
by
respectively,
be
licly offered. Price—For the shares to be offered to the
debenture holders, 75c per share, which is equal to the
price at which the debentures
mon
1
are
be
stock;
the shares
for
to
convertible into
offered
the
to
000 shares of
100%
-
porate
purposes.
Note —This
•
charter
amended
was
last
The SEC announced a "stop order" on Dec.
10,
challenging the registration statement, and the corpora¬
tion told this newspaper they planned to re-register.
An SEC hearing was scheduled
for Jan. 25. Office—
Miami Beach, Fla. Underwriter—H. Kook &
Co., Inc.,
Development Corp.,
24
filed
Price—$5
per
Pompano
140,000 shares of common stock (par $1)
share. Proceeds—To pay outstanding notes
Consolidated
Jan.
♦
14 filed
Natural
Co.
•/_
Duke
Jan.
(2/8)
$25,000,000 of debentures, due Feb. 1, 1985.
Proceeds—For construction. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
/
;
■
to
be
,30
received
Rockefeller
the
at
office
Gence
(2/18)
Plaza, New York
11:30 a.m., New York Time, on Feb. 8.
Consolidated
Dec. 30
Water
Co.
24,900 shares of class A
(par $10).
Price—$12-per share. Pro¬
pay
in part bank loans.
Office — 327 S.
La Salle Street,
Chicago) 111. Underwriters—Milwaukee
Co., Milwaukee, Wis. and Indianapolis Bond &
Corp., Indianapolis, Ind.
Consultants Bureau
Enterprises,
Dec. 29 filed 147,000 shares of class A
which
104,000
of
account
are
offered
be
to
Dworman
Jan.
allocated
common
the
Dec.
distribute
type
—
Undewriter—William
Offering—Expected
David
&
Co.,
Inc.,
N.
25
Y.
$o0,000 to
ment
and
including
Coast and
stock (par $3)
repay $80,000 of bank loans;
replace working capital expended for
equip¬
machinery; $50,000 to increase sales
efforts,
the organization of sales offices on the
West
in the Chicago
areas; and $50,000 to further
par- Pr<>ceeds-To
vices.
The
balance
working capital.
of
the
Office
proceeds
will
be
•
to
to
Jan.
22
filed
71,500 shares
common
16,741
version
shares
if Elco
of
an
stock, of which
equivalent
be
for
number
upon
be
Office—1657
brook, 111.
Underwriter
Chicago, 111.
—
S.
&
Nov. 25
filed
to
common
stock
to
be
Co.,
Jan.
26
Light Co.
filed
of
used
bidders:
New
to
repay
mortgage
Merrill Lynch.
Inc.
&
and
Co.
Pierce, Fenner &
bidding.
•
(jointly);
White^
(jointly),
Dayton Rubber Co. (2/16)
Jan. 21 filed $7,500,000 of
convertible subordinated de¬
bentures. Price—To be
supplied by amendment. Pro¬
of
Probable
Smith Inc. and
and W. E. Hutton & Co.
Street, N. W., Wash¬
Flair
corporate
York, N. Y.
purposes.
Office—1441
Underwriter—None.
share.' Proceeds—To
per
Underwriter
(jointly); Lehman Brothers, Blyth & Co
The
First
Boston
Corp.
(jointly); Morgan
Stanley & Co.
Offiee—3636-16th
Broadway,
about
branches,
coast.
■
$100,000,
one
on
eliminate
and to acquire and equip
the east coast and one on
The balance will be
used for
two
new
the
west
Jan.
19
filed
Reserve
Life
300,000 shares of
Insurance
common
business
but
expects to
sell
stock
all
Corp.
Corp.
175,000 shares of
Inc.,
debentures, at
To
and
par;
off current
pay
Arnold
Malkan
&
Co.,
Inc.,
on
a
Offering—Expected, in February.
(2/23)
of stock, $102
per
unit.
Proceeds—
accounts
payable; purchase of raw
expansion.
Office
2730
Ludelle
Street, Fort Worth, Texas.', Underwriter—R. A. Holman
& Co., Inc., New York, N. Y..
materials
and
for
—
• Glass-Tite
Feb.
2
Industries, Inc.
$500,000 of 61//2% convertible subordinated
25,000 shares of common stock.
Prices
filed
and
the
debentures, 100% of principal amount; for
to be supplied by amendment.
Proceeds—
general corporate purposes,
including expansion
stock,
and
reconditioning of plant:
Underwriter—Stanley
Glastron
Jan.
11
Heller
<
Office—Providence, R. I.
&
Co.,
New
York
City.
Boat Co.
filed
$600,000 of
6%
due Jan.
sinking fund debentures,
15, 1966, and 60,000 shares of common stock, to
offered in units
consisting of $100 of debentures and
10 shares of common stock.
Price—$100 per unit. .Pro¬
ceeds—For additional
be
plant facilities, including land and
production equipment, and debt reduction.
Office—920
Justin Lane,
New York
ton, Texas.
Austin, Texas. Underwriters—Hardy & Co.,
City, and Underwood, Neuhaus & Co., Hous¬
ic Goddard,
29
Inc.
filed
153,000 shares of common stock. Price—
Proceeds—For use by subsidiaries for
reduction of indebtedness and
general corporate pur¬
poses.
Office—1309 North Dixie
Highway, West Palm
Beach, Fla. Underwriters
Robert L. Ferman & Co.,
Miami, Fla. and
Godfrey, Hamilton, Magnus & Co., Inc.,
New York City.
per
Gold
June
cent),
the
Co.
(par $1).
Price—$10 per share. Proceeds—For capital and sur¬
plus of the company, which has not as yet done
any life
insurance
Co., Philadelphia, Pa.
share.
—
inventory, working
capital, and general corporate purposes. Office—Moun¬
tainside, N. J. Underwriter—Milton D. Blauner & Co.,
Inc., New York City. Offering—Expected in late Feb.
Federated
Junction,
&
debentures to be offered in denominations
of $51 each.
Debentures are convertible into common
stock at $1.50 per share.
Also, 68,000 shares of common
stock (par 10 cents) to be offered
in units of one $51
debenture and 68 shares of common stock.
Price—Of
$3.25
Price—$4
indebtedness
bank
be
notification) $51,000 of six-year 6J/2%
Jan.
Purchaser, Inc.
Jan. 11 filed 170,000 shares of class A stock.
$18,000,000 of
& Co. Inc.; Eastman
Dillon, Union
Securities & Co. and Salomon
Bros. & Hutzler
Seigel,
For
stock.
Federated
to defray part of the cost of
Halsey, Stuart
land.
Price—To
convertible
.
common
I
first
&
•
A
held.
Foam
filed
7
"best efforts" basis.
Avenue, N. W., Wash¬
of class
five shares
common stock.
Price—$4
Proceeds—To enable issuer to enter synthetic
manufacturing
business.
Office—r40
W.
134th
Street, New York City. Underwriters—Brand, Grumet
Price—To
Stores, Inc.
Jan. 25 (letter of notification) 100,000 shares of
common
stock
(par $2).
Price—$3 per share.
Proceeds—For
Underwriter—
company's 1960 construction program.
be determined
by competitive
—To
Weld
of
if Fashion
(2/26)
30-year
Inc.
|.
200,000 shares
v
foam
the
filed
general
&
$25,000,000
bonds.
Proceeds—Will be
temporary bank loans and
the
24
•'
share.
per
investment
of
—
Dayton Power
Jan.
stock
ington, D. C. Underwriter—Consolidated Securities Co.
Washington, D. C.
of¬
—
•
capital
share. Proceeds—For purchase of various
properties, for development and subdivision thereof, and
to meet operating expenses, salaries and other
costs, but
principally for the purchase and development of large
stockholders at the rate of one new
share for each three shares
held. Price
$7 per share.
Proceeds
For expansion and other
corporate purposes.
Office—215 4th Ave., New York
City,
for each
Finance
General
York
Price—$5 per
cor¬
present
None.
New
inc.
Connecticut
one
609, Santurce, Puerto Rico. The statement has been with¬
drawn, and the filing of a new one is said by the under¬
writer
to
be imminent,
involving a name change to
"Insular Finance Corp."
"V.
C.
D.
buy
writer—Caribbean Securities Co.. Inc., Avenida Condado
on
shares of common stock reserved
the exercise of outstanding warrants.
and Erie Ave.,
Phila., Pa.
Office—1028
basis.
Underwriter—Drexel
Genera!
—For
C.
tracts
88,000 shares of
efforts"
Glass Magic, Inc.
Dec. 30 (letter of
Proceeds—For
to
Devices,
debentures
Estates,
Shermer Road, North-
Cruttenden, Podesta
Street
purchaser
per
88,135
upon
supplied by amendment.
Dec.
Davega Stores Corp.
fered
filed
issuance
ington,
Corp. to permit expansion of its Culligan* dealer
financing activities, and the balance for
•
A
the
at
"best
share
new
D.
nance
purposes.
class
of
(2/15)
reduce
a
Investment Adviser—Yates, Heitner & Woods, St. Louis.
Mo.
Underwriter—ESA Distributors, Inc., Washington.
con¬
class B common
shares. Price—To be
supplied by amendment. Proceeds
—To erect and equip the
company's plant in Northbrook;
for investment or advances
to its
subsidiary, CWC Fi-
porate
shares
Inc.
common stock.
Price~^$3
share. Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment
and supplies.
Office — Santurce, Puerto Rico.
Under¬
10c),
Price
policies
June 29 filed 2,000,000 shares of capital stock.
of
general
Inc.,
common
on
J.
•
Corp.
29
ESA Mutual Fund,
is¬
offered for the
issuance
N.
capital stock on a share for share basis. Office
Factory Place; Cedar Grove, N. J.
Jan.
thereof, and the remain¬
reserved
are
to
are
account of the present holders
ing
filed. 216.254.5
Office—M
to be offered for the account of
the
Un¬
be offered in exchange for an equal number of shares
for
152,241 shares of
are
29
—67
(2/23-26)
suing company; 64,000 shares
pur¬
of class B
—
York.
CuBigan, Inc.
one
if Electronic Research Associates, Inc.
Jan.
10 Stepar
Place, Huntington
Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose & Feuer, all
of New
Co.,
Fabricators,
entitling
warrant
a
To
Underwriter—None.
de¬
added
&
Underwriter—
>
supplied by amendment. Proceeds—For land, construc¬
tion thereon, new equipment, debt
reduction, and work¬
ing capital.
Office—Ridge Road, Monmouth
if Electronic Production & Development, Inc.
Jan. 20 (letter of notification) 150,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For r.ew
equipment; to increase inventory and for working capi¬
tal. Office—205
S. Beverly Dr., Beverly
Hills, Calif.
(2/10)
development of delay lines, filters and microwave
Boland
Glendale, Calif.
Inc.
Jan. 6 filed 60,888 shares of common
stock, to be offered
for subscription by common stockholders on the basis of
publicity pro¬
Troy, New York
Building,
Troy
R.
St.,
Aluminum
General
public relations and
a
Office—Hotel
Underwriter—John
common
J^Cn^At
cents, and for
gram.
in February.
Control Electronics
Co., Inc.
Dec. 23 filed 165,000 shares
of
City,
of
Street,
''T-
bept. 11 filed 15U,0uu snarca of
(par
publicly offered.
insurance
V:
$4 until Jan. 30, 1961. Price—$4 per
indebtedness, with the balance for
working capital. Office—275 East 10th Avenue, Hialeah,
Fla.
Underwriter—Charles Plohn & Co., of New York
Co., New York City.
breakdown
/.
filed 75,000 shares of common stock, eacn share
share.
thruways, parkways and highways
the amount of $25
such breakdown insurance for the purchase price oi
for the company's
operations; and the balance to
additional
machinery and equipment for coldcomposition.
Office
227-239 West 17th
Y.
automobile
15
share of
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
to
Associates, Inc.
Colorado
General
■
Price—
general corporate
Park Avenue, New York City.
of which 100,000 shares are to be
acquire
N.
stock.
common
E. H. P. Corp.
Aug. 31 filed 160,000 shares of capital stock
stock, of
sale for the
E.
bearing
Proceeds—For
Office—400
derwriter—Charles Plohn &
translating and publishing additional new
books; $25,000 to acquire and equip additional needed
space
of
shares
&
California Investors, Los Angeles, Calif.
(3/1-4)
300,000
share.
per
poses.
Inc.
for public
Corp.
filed
15
$10
Share
issuing company and 43,000 shares, rep¬
resenting outstanding stock, by the present holders
thereof.
Price—$3 per share. Proceeds—$100,000 to be
,,
an,
Securities
stock
ceeds— To
Corp.,
\V':
100,000 shares of common
(no par). Price—$3 per share. Proceeds—To pay
outstanding 'obligation and for working capital. Office
—1500
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Corp. (jointly).
(letter of notification)
common
Securities
;
Nov. 13 (letter of notification)
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly);
White, Weld
& Co.; The First Boston Corp. and Glore, Forgan & Co.
issuer, Room 3000,
20, New York, up to
•//•'/• /-
stock
fund debentures.
Underwriter—To be de¬
construction.
Underwriter —Midtown
if Forest Hills Country Ciub Ltd.
29 filed 75,000 shares of common stock (par
10b).
Price—$4 per share. Proceeds—To build a country club
in Forest Hills, L. I., N. Y. Office—179—45 Brincxerhoff
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome
Robbins & Co., 82 Wall St., New York City. Offering—
Expected in late February.
termined
the
of
City.
-
Jan.
$50,000,000 of first and refunding mortgage
series due 1990.
Proceeds — For construction.
Proceeds—For
■
West Coast Corp.
address.
same
6 filed
Boston
•
York
'•
'
Power Co.
sey,
"
-
Florida
(2/8-11)
Dec. 21 (letter of notification) 300,000 shares of com¬
mon stock
(par 1 cent). Price—$1 per share. Proceeds
—For land acquisitions Office-—30 E. *60th
Street, Now
Duquesne Light Co. (2/24)
Jan. 21 filed $20,000,000 of sinking
Stuart & Co. Inc.; Morgan Stanley & Co. and First
Corp. (jointly); White, Weld & Co. and Paine,
Webber, Jackson & Curtis (jointly). Bids—Expected
,
,
Co., Inc., New York and Philadelphia.- Offer¬
ing—Expected in February.
■
'
' V .V'.'1
bonds,
Office—Charlotte, N. C. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, S.uart & Co. Inc.; First Boston Corp.; Morgan Stanley &
Co.; Stone & Webster Securities Corp.
issuing
underwriting corporation.
Gas
•
..
—Stroud &
day.
and for working capital. Underwriter—Consolidated Se¬
curities Corp., of Pompano Beach,
Fla., on a best efforts
basis. Note—Nick P. Christos is.a director of the
company and President of the
"
Associates, Inc.
Oct. 27 filed 161,750 shares of class B, non-voting, com¬
mon
stock (par $5). Price—$10 per share. Proceeds—
For general corporate purposes, including payment on
a building and the financing of loans. Office—Orlando,
Fla. Underwriter—Leon H. Sullivan, Inc., Philadelphia.
Pa., on a "best efforts" basis. Offering—Expected any
Beach, Fla.
Nov.
Communities, Inc.*
Don Mott
York.
Consolidated
Diversified
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N J
Underwriter—Lee Higginson Corp., New York.
Offer¬
ing—Postponed.
tions.
New
of
common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
was
June, changing the corporate
and sanctioning its entry into real estate opera¬
name
,
Sept. 25 filed 367,200 shares of
formerly
known as Consolidated Cuban Petroleum
Corp., which
was
a
Delaware corporation with Havana offices.
Its
company
Finger Lakes Racing Association, Inc.
"
r
Dec, 28 filed $4,500,0Uo of 20-year ^b%
subordinated
sinking fund debentures due 1980 anch 450,000 shares of
class A stock (par $5) to be offered in, units, each con¬
sisting of $100 of debentures and TO shares of class A
stock.
Price—$155 per unit. Proceeds—For purchase of
land and the cost of construction of racing plant as well
as other organizational and miscellaneous expenses.
Office—142 Pierrepont Street, Brooklyn, N.'Y. Underwriter,
principal amount; for the stock, $5 per share.
10,000 shares of the common stock, to
the present holders thereof;.from the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
•
the outstanding shares on the American Stock Exchange
at the time of the offering.
Proceeds—For general cor¬
selling commission of $2 per share.
a
•
Proceeds—From
under-
will receive
wtio
Price—For the debentures,
stock.
common
,
com¬
writer, $1 per share; for the shares to be offered to the
public, the price will be related to the current price ol
Memphis, Ark. Underwriter—The offer¬
ing is to be made through three promoters and officers
Products, Inc.
Oct. 15 filed $330,000 of convertible debentures, and 70,-
pub¬
Thursday,,February. 4, 1960
.
Office—West
and
Deluxe Aluminum
debenture
to
general
corporate purposes including debt
working capital. Office—Dayton, Ohio.
Underwriter—Lehman Brothers, New York City.
reduction
100,000 shares
.
forms
of
it.
18
Medal
Packing Corp.
filed
and
shares
572,500 shares of common stock
50,000 common stock purchase
(par one
warrants.
400,000
will
be
sold
for
the
account
of
Of
the
110,000 by certain stockholders:
12.500 for the
underwriter; and the remaining 50,000 shares are
company:
pur¬
chasable upon exercise of the
warrants. Price—$1.25 per
Proceeds—For repayment of
debt; purchase of
shcxe.
v
Numoei
Volume 191
5922
.
.
The Commercial and
Financial Chronicle
.
(593)
and facilities and other general corporate
Office—til4 Broad St., Utica,\N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change — Formerly Eastern Packing Corp.
equipment
vis
purposes.
Colo.
Lakes Bowling Corp.
Great
filed 120,000 shares ot common stock
Aug. 31
supplied
be
Price—To
by
(par $1).
Proceeds—For
amendment.
general corporate purposes," including the development
lanes,
bowling
of
bars,
and
restaurants
on
various
Office—6336 Woodward Ave., De¬
Underwriter—Straus, Blosser & McDowell,
ton
and
one
share of
Offering—Expected , in mid-Feb.
Investment
Advisor
Ik
Washington,
D.
C
—;
Investment
(par
it
Advisory
Service
Underwriter—Investment
Manage
Guardian Tilden
*>'
Dec.
ll
stock
17
filed
¬
shares
(par $10), $1,060,000 of
of" cumulative
15-year
8%
Proceeds—For
preferred
subordinated
ington, D. C.
to
are
offered
be
first
to
holders
Note:
of
share
per
by
share
new
Co., Inc. and Tilden Commer¬
Alliance, Inc., subsidiaries of the issuing company.
Underwriter—None.
ceeds—For
R
;iv3
working
capital.
Office—Ellsworth, Maine.
Underwriter—None.
Harundale
Jan. 7
filed
Mall
Associates
interests in Asso¬
Price—$10,000 per unit. Proceeds—To acquire
one-half interest in Harundale Mall, a regional shopping
center in Anne Arundel County, Maryland.
Office—14
West Saratoga Street, Baltimore, Md.
Underwriter—
$1,190,000 of partnership
ciates.
None.
; -•
Hermetite
P.
Jan.
8
filed
125,000
already
M.
L.
.
•<
..:
•
.
(-
,
common
stock,
which
of
acquired
Co.
&
Price—$5
per share.
Proceeds—For
Office—702 Beacon Street,
:Boston,* Mass. Underwriters—M. L. Lee & Co., Inc.;
Milton D. Blauner & Co., Inc.; and Kesselman & Co.,
Inc., all of New York City, on an "all or nothing" basis.
•f
corporate
purposes.
Offering—Expected in March.
"■
Hickerson Bros. Truck Co., Inc.
March 11 (letter of notification) 285,000 shares of con
jnon stock. Price—At
par ($1 per share).
Proceeds—T
existing liabilities; for additional equipment;
working capital. .Office—East Tenth Street, P
pay
for
air
C
Bend, Kan.
Underwriter—Birkenmay*
& Co., Denver, 'Colo.
Offering—Expected shortly.
Box 68,
Great
★Highland Chrome, Inc.
Jan. 21
(letter of notification) 20,500 shares of founders'
95,000 shares of preferred stock. Price—At
cents per share). Proceeds — For mining ex¬
penses.
Office—1207 Hoge Bldg., Seattle 4, Wash. Un¬
derwriter—None.
stock
and
(20
par
★ Highway Trailer Industries, Inc.
Jan. 29 filed
$3,000,000 convertible subordinated deben¬
tures, due August, 1975. Price—$100 per $100 debenture.
Proceeds—For expansion purposes and the discharge of
.
debts.
Office—250
Park
.,
Ave., New York City.
Under¬
cash
St.,
/I
a'
\{:fi
W.J
Conditioning Corp. of America
(2/16)
'
Dec. 29 filed
200,000 shares of common stock.
Price—$3
working capital. Office—405
Lexington Ave., New York City. Underwriter—Plym¬
outh Securities
Corp., New York City.
share.
Proceeds—For
Howe Plastics & Chemical Companies,
Inc.
14
(letter of
mon stock
•—For
7
f
i".
(par
general
one
notification) 100.000 shares of com¬
cent). Price—$1 per share. Proceeds
corporate purposes.
I C
50th
Securi¬
Inc.
purposes and
Vi
the
preparation of the-concentrate
enfranchising of bottlers, the local and national pro¬
motion
and
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
"04 Equitable
Bldg., Denver, Colo. Underwriters— Pur¬
and
in
rate
Feb.
of
★
Forms, Inc. (2/17)
110,000 shares of common stock, of which
TOO,000 shares are to be offered for the account of the
issuing company and 10,000 shares, representing out¬
standing stock, are to be offered for the account of
500
M. G.
Lewis, President; Price—To be supplied by amend¬
Proceeds — To reduce bank loans, redeem 190
shares of the outstanding preferred, and continue the
company's modernization and expansion program. Offic©
in
the
Inc.
Can
Can
V
30 filed 145,000 shares of common
stock, of which
115,000 shares are to be offered for the account of the
issuing company and 30,000 shares, representing out¬
standing stock, are to be offered for the accounts of the
present holders thereof.
Prices—For 20,000 shares, to be
initially offered to company personnel, $4.50 per share;
the balance, $5 per share. Proceeds—For the retire¬
ment of $166,850 of bank
indebtedness, acquisition and
development of land, construction of houses for sale, and
general corporate purposes.
Office—114 North Greene
Street, Greensboro, N. C. Underwriter—United Secu¬
rities Co., Greensboro. /
for
★ Kimberly Gold Mines, Inc.
Jan. 25 (letter of
notification) 100,000 shares of common
stock (par 20 cents) and 250,000 shares of common
stock
Price—Of
100,000 shares, 50 cents per
per share.
Proceeds—For
,share; of 250,000 ^shares, $1
Office—4010
Underwriter—None.
Lafayette. Radio
4
filed
and
N.
10th'St., Tacoma 6,
-
Corp.
225,000 shares of common stock
share.
Proceeds—For general
inventory,
($1
par).
corporate
leasehold improvements,
capital.
Office —165-08 Liberty Avenue,
I., N. Y. Underwriter—D. A. Lomasney "&
Co., New York City. Offering—Expected in late Febru¬
L.
ary.
★
Lancer
Inc.
corporate
purposes.
Office—22
Jericho
Turn¬
pike, Mineola, L. I., N. Y. Underwriter—Charles Plohn
& Co., New York City. Offering—Expected in
February.
★ Lost
Jan.
mon
of
(letter
stock
of notification)
(no par).
the cost of
new
Price—$2
150,000 shares
per
share.
of
com¬
Proceeds—To
quarters and for the development
projects and for working capital.
Office—641
Avenue, Glendale, Calif. Underwriter—Holton,
Hendersop & Co., Los Angeles, Calif.
new
Larson Boat
Works, Inc.
$300,000 of 5-year notes wth common stock
purchase warrants
attached, said warrants
granting
holder the right to buy 40 shares of the common for
8
per
share.
Mines,
Inc.
(letter of notification)
Price—At
mining
48,000 shares of common
($1 per share). Proceeds — For
Office—Virginia City, Mont. Under¬
par
expenses.
writer—None.
★ Love Corp.
(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$1.25 per share.
Proceeds—For working capital.
Office—New Tyler Highway,
Henderson, Texas.
Underwriter—Wm. B. Robinson &
Jan. 25
Corsicana,
Co.,
Texas.
it Loveless Properties, Inc.
i
Jan. 20 (letter of notification) 75,000 shares of common
stock (par $1). Price—$4 per share.
Proceeds—To pay
bills, for acquisition of Lacey Shopping Center, and for
working capital.
Office—603 Central Bldg., Seattle 4,
Wash.
Underwriter
Andersen, Randolph & Co., Inc.,
—
Salt Lake
City, Utah.
★ Macco Corp.
Jan. 28 filed 200,000 shares of common stock. Price—Tobe supplied by amendment. Proceeds—To repay indebt¬
edness
and
incurred
develop
in
real
land, and
estate
for
operations,
general
to
corporate
acquire
purposes.
Office—14409 So. Paramount Blvd., Paramount, Calif.
Underwriters—Kidder, Peabody & Co., New York City,
and Mitchum, Jones & Templeton, Los Angeles.
Marine
Fiber-Glass & Plastics, Inc.
(letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—$1.50 per share. Proceeds
—For newr plant expenditures, research and develop¬
Nov. 30
and
for
working capital.
Inc.,
New York, N.
Office — 2901 Blakely
Underwriter — Best Securities,
Y., is
no
longer underwriting the
issue.
★ Mass.
Jan.. 27
Investors
Trust
(by amendment)
beneficial
interest.
10,000,000 additional shares of
Office—Boston,
Mass.
Mayfair Markets
ing offered to holders of such stock
filed
share for each five shares held
on
$1), be¬
the basis of one
Nov.
13. Rights are
expire in February. Price—$10 per share.
Proceeds—For general corporate purposes, including ex¬
pansion and working capital. Office—4383 Bandini Blvd.,
new
scheduled
Los
to
Angeles, Calif. Underwriter—None.
Megadyne Electronics, Inc.
Sonora
Jan.
Lode
21
stock.
Landsverk Electrometer Co.
28
$5
Oct. 1 filed 301,177 shares of common stock (par
Industries,
Nov, 27 filed 200,000 shares of $.70 convertible preferred
stock (par $10).
Price—$10 per share. Proceeds—For
Dec.
—
Liquid Veneer Corp.
(letter of notification) 150,000 shares of common
stock (par 10 cents),
Price —$2 per share. Proceeds —
For general corporate purposes.
Office — 211 Ellicott
Street, Buffalo, N. Y. Underwriter—B. D. McCormack
Securities Corp., New York, N. Y.
Offering—Expected
any day.
Street, Seattle 2, Wash.
per
including
Price
property and for working capital.
Falls Church, Va. Underwriter
& Transfer Corp., Washing¬
Nov. 16
ment
Electronics
working
Jamaica,
cents).
50
(par
ton, D. C.
Certificates
Dec.
Dec.
stock
to
Trust
certificate. Proceeds—To supply
purchase the land at'1809-15 H
Industries,
expenses.
★ Lewis Swimming Pool Construction Co., Inc.
15 (letter of notification) 60,000 shares of class A
Jan.
per
"Sunrise Highway,
Lindenhurst, N. Y.
Underwriter —
•Heft, Kahn & Infante, Inc., Hempstead, L. I., N. Y.
Kavanagh-Smith & Co.
mining
'
Swan
Street, Jacksonville, Fla.
Underwriter—
Unterberg, Towbin Co., New York City.
E.
Proceeds—To acquire
(letter of notification) $200,000 of 10-year 10%
registered debentures. Price—$100 per debentures. Pro¬
ceeds—For general corporate purposes. Office — 30 E.
Wash.
C.
common
Nov. 23
cents).
—2432
Office—115 Mary Street,
—Securities
Registration
Beneficial
necessary
(par 20
filed
15
ment.
general
BfCg.
'
!
Lewis Business
Jan.
for the employee stock option
UnderwriterVNone.
Under¬
Underwriter—None.
The
corporate purposes and
Office—100 North Cherry St.,
Broadway, Anderson, Indiana.
year 6% subordinated de¬
bentures, due Jan. 15, 1966, with warrants to purchase
300,000 shares of common stock at $5 per share. Price
—At-the-market, on or after July 30, 1960. Proceeds—
For payment of a $750,000 bank loan and general cor¬
porate purposes. [Office—375 Park Ave., New York City.
one
20.
Office—1950 Broad St., Regina, Sask.,
Underwriter
Laird & Rumball,
Regina, Sask.,
cover
June 29 filed
600,000 shares of common stock (par $1)
Price—$2.50 per share. Proceeds—To further the corpo¬
rate
the
on
purposes.
Office—125 E.
Street, New York, N/Y. Underwriter—Hilton
ties, Inc., 580 Fifth Avenue, New York, N. Y,
For
at
held
Irando Oil & Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
:ents per share. Proceeds—To
defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
general
(2/17)
Dec.
are
shares
Office—1047
★ Lefcourt Realty Corp.
Jan, 29 filed $2,000,000 of six
purposes.
W., Washington, D. C., and construct an office
ouilding thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, IrC., both
of Washington, D.
C., and Swesnick & Blum Securities
Corp.-•
purposes
per
ital.
writer—To be supplied by amendment.
Price—$3
N.
Price—$5
City.
Air
—
Price—$2,600
of New York
Hi-Press
four
bank loans.
filed
14
Aug.
Trust.
writers—Allen & Co., and Van Alstyne, Noel & Co., both
★
-
—
to be publicly offered and 11,000 have been
at $1 per share by the President of
are
Lee
general
J
each
Proceeds
Island
shares of
stock.
corporate
Investment Trust for the Federal Bar
Corp.
136,000
stockholders
common
for
payment of
•he
★ Hancock Development Corp.
26
(letter of notification)) $70,000 of 3% second
mortgage bonds, due 1982.
Price—At face value.
Pro¬
Jan.
rj
are to be offered by Laymen of the Church
God, with which the company is merging. Price—To
be supplied by amendment. Proceeds—For
working cap¬
of
Denver, Colo.
Underwriter—
Corp., 915 Washington Street,
"best efforts" basis.
on a
balance of the shares
se¬
curities in Guardian Loan
cial
common
'
140,000 shares
corporate
Offering—Indefinitely postponed.
Galesburg, 111.
Boulevard, Long Island City, N. Y.
securities
The
For general
general
re¬
Nov. 30 filed 175,000 shares of common stock (par $1), of
which 35,000 shares are to be offered by company and
5c).
Bank, Washington, D. C.
Dec. 29, 1958, filed $5,000,000 of notes
(series B, $500,000,
2-year, 3% per unit; series C, $1,000,000 4-year 4% per
unit; and series D, $3,500,000 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds—For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
plan.
—
.W
(par
Broadway,
Securities
45-14 Queens
,>*
—
the number of shares
Laymen Life Insurance Co.
stock
common
altered and
duced.
Aspirin Corporation
600,000 shares of
share.
capital notes, and $1,250,000 of 12-year 7% subordinated
capital notes. Prices — At par and principal amounts.
Proceeds
For general corporate purposes.
Office —
■
Co.,
(letter of notification)
statement will be
★ Intra State Telephone Co.
Jan. 29 filed 4,175 shares of common stock of which
3,675 shares are to be offered for subscription at $100
Corp.
100,000
Electronics
Inc.
133,000 shares of common
(par one cent). Price—$1.50 per share. Proceeds—
For general corporate purposes.
Office — Woodward
Road, Englishtown, N. J. Underwriter—Prudential Se¬
curities Corp., Staten Island, N. Y.
The registration
International
Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below.
m
■f,
filed
Speculative
became
¥
85,000 shares of
per share. Proceeds
Office—1700
Associates, Inc., Washington, D. C. The statement
effective July 24.
ment
7
per
Price—At market.
Proceeds—For investment
Office — 1825 Connecticut Avenue, Washington, D. t
.i,
Lawn
Nov. 25
••*'.,
filed
International
Dec.
cents).
?.3r
13
Wilmington, Del.,
stock
Drive, Little Falls, Minn.
Underwriter—Fulton,
Co., Inc., Cleveland, Ohio.
Reid &i
including the redemption of outstanding pre¬
ferred stock and new
plant equipment. Office—Westbury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass. Offering—Expected in February.— -t
River Production Corp.
f
v 7 V
(letter of notification) 200,000 shares of common
stock (par 50 cents). Price—$1.50 per share. Proceeds—
For expenses for exploring for oil and gas. Office—212
Sixth A^e., South, Nashville, Tenn. Underwriter—Cres¬
cent Securities Co., Inc., Bowling Green, Ky.
r
view
'
Highlands, Mass. Underwriter—Schirmer, Ather-
Co., Boston, Mass.
Price—$4
Green
u
$1,000 principal amount of notes held at $10 per
share.
Price—/The notes are to. be offered at
face value in denominations of $500.
Proceeds —~ For
working capital. Address—c/o Paul G. Larson, Rivera-
purposes,
Oct. 15
Growth Fund of America, Inc.
Feb. 4 filed 250,000 shares of common
&
Oct.
per
Co;,' New York City.
Si,
each
Integrand Corp.
Price
common.
building
f|
Co., both of Denver
(letter of notification) 60,000 shares of class A
stock (par $1).
Price—$4 per share. Proceeds
working capital.
Office —55 Needham
Street,
Newton
deben¬
unit. Proceeds—For debt reduction and the
of a recreation park.
Office—3417 Gillespxe
Street, Dallas 19, Texas. Underwriter—Glore, Forgan &
—$28
14
—For
$11,500,000 of cumulative income
of debenture
amount
&
Industron Corp.
due Jan. 1, 1975, and 575,000 shares of common
(par $1), to be offered in units of $20 principal
stock
Sudler
common
filed
10
C.
common
Jan.
Great Southwest Corp.
tures,
Amos
stock
Chicago, 111.
Dec.
and
★ Imperial Investment Corp. Ltd.
Jan. 29 filed
$15,000,000 (U. S.) 20-year collateral trust
bonds, due 1980. Proceeds—-To retire short-term borrowings. Office—Vancouver, B. C., Canada. Underwriters
—Eastman Dillon, Union Securities &
Co., and Nesbitt,
Thomson & Co.,
Inc., both of New York City. Offering
—Expected not later than March 2.
Michigan properties.
troit, Mich.
& Co.
37
Jan.
stock
7
(letter of notification)
300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—For
general corporate purposes. Office—100 W. 10th Street,
Wilmington, Del. Underwriter—Glenn Arthur Co., Inc.,
New York, N. Y.
★
Micronaire
Electro Medical Products Corp.
200,000 shares of common stock (par 10
cents) and 50,000 one-year warrants for the purchase of
Oct.
16
filed
Continued
on
page
38
38
(594)
The Commercial and Financial Chronicle
Saskatchewan,
toon,
Contitnued from page 37
Canada.
Underwriter — Cumber¬
Ltd., Regina, Saskatchewan, Canada.
land Securities
share, to.be offered in units of 100.
stock and 25 warrants. Price—$275 per
such stock at $3 per
shares of
common
Proceeds—For general corporate purposes,
unit.
includ¬
the discharge of indebtedness, the expansion oi
sales efforts, and for working capital. Office—79 Madison
Avenue
New York City. Underwriter—General Invest¬
ing
Offering—Expected in
York.
New
Corp.,
ing
weeks.
few
a
//
Mid-America Minerals,
Inc.
'
16 filed 400,000 shares of class A common stock
Nov.
„
Proceeds—For general
reduction of indebted¬
ness, acquisition of properties, and additional working
capital. Office—500 Mid-America Bank Building, Okla¬
homa City, Okla. Underwriter—None.
•
; •
(par $1).
Price—$5 per share.
corporate purposes, including the
„
^ Midwest Drilling Co., Inc.
Jan. 20 (letter of notification) 20,000 shares of common
stock
(par $1).
Price—$15 per share. Proceeds—For
expenses for drilling and exploring for
oil and gas.
Office—6116 Johnson Dr., Mission, Kan.
Underwriter
—None.
•' •;; "•
■■
'•
,
Minalaska, Inc.
notification) 200,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds— For mining expenses.
Office — Ophir, Alaska.
Underwriter—B. D. McCormack Securities Corp., New
York, N. Y.
Dec.
21
mon
Munston
shares
such
of
stock
Price—At
converted.
face
for
each
amount.
$500
derwriter—Eastern Investment
1
Corp.
Jan. 18 filed 250,000 shares of common stock (par 50
cents). Price—$4 per share. Proceeds—For debt reduc¬
tion and working capital. Office—Sarasota, Fla. Under¬
writer—Plymouth Bond & Share Corp., Miami, Fla.
Modern
Dec.
4
stock
Pioneers' Life Insurance Co.
(letter of notification) 47,687 shares of common
(par $1) to be offered to policyholders of Modern
Pioneers'
Insurance
Co.
and the company for cash or
Price—$2 per share. Proceeds—
For working capital. Office—811 N. Third
Street, Phoe¬
nix, Ariz. Underwriter—Associated General Agents of
North America, Inc.
transfer
of
dividends.
Montgomery Mortgage Investment Corp.
Oct. 16 filed $3,000,000 of second
mortgage notes and
accompanying repurchase agreements, to be offered in
$3,000 units. Price—From $2,000 to $4,000 per unit. Pro¬
ceeds—To purchase other second trust notes and to main¬
tain a reserve for repurchase of notes under its
repur¬
chase agreements. Office—11236 Georgia
Avenue, Silver
Spring, Md.
Underwriter—There is no underwriter as
such, but Adrienne Investment Corp., an affiliate of the
issuing company, will act as sales agent, for which it
will
•
receive
a
selling commission of 7%.
Montreal
Metropolitan Corp. (2/9)
Dec. 23 filed $30,000,000 of sinking fund debentures, due
Feb. 1, 1985, to be redeemable at the option of the issuer
on or after Feb. 1, 1970. Price—To be
supplied by amend¬
ment.
Proceeds—To repay bank loans incurred for con¬
struction. Office—Quebec, Canada. Underwriters—First
Boston Corp. and associates.
ir (John)
Morrell & Co.
Moines, Iowa,
shares of Morrell stock for each
on
the basis of IV\
four shares
common, or for each four shares of class B
fice—208 South LaSalle
St., Chicago, 111.
Morse
Electro
Dec. 28 filed
share.
per
for
used
and
for
Products
120,000 shares of
of class A
common.
Of¬
employees
Corp.
additional
stock.
additional
working capital.
Price—$7
retail
stores,
Office —122 West
26th
Street, New York. Underwriters—Standard Secu¬
Corp. and Irving Weis & Co., both of New York,
an
all-or-nothing basis.
.
rities
on
Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,000 shares of common stock (par
$10) in
a
joint registration with Guaranty Insurance
Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage
common
and
one
Mortgage will
will
its
use
share of
use
MPO
common.
Proceeds—
its proceeds fo rexpansion;
proceeds
for
Office—(of both firms)
waukee, Wis.
Jan.
Guaranty
additional
606
West
Guaranty
working capital.
Ave., Mil¬
Wisconsin
Videotronics, Inc.
18 filed
(2/23)
150,000 shares of class A stock
which 100,000 share
suing company
standing stock,
are
and
($1 par) of
to be offered for account of is¬
50,000
shares, representing out¬
offered for the account of
the present holders thereof.
Price—To be supplied by
amendment. Proceeds—For general
corporate purposes,
including debt reduction. Office—15 East 53rd Street,
are
to
be
New York
City. Underwriter—Francis
New York City.
M.
& S.
I. du Pont & Co..
Oils Ltd.
May 11 filed 390,000 shares of common stock. Price—60
per share.
Proceeds
For exploration,, develop¬
ment and acquisitions. Office—5 Cobbold
Block, Saska¬
cents
—
for
issuance
to
ke}
options. Price—To be supplied
—
To be used to, retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New
to
pursuant
shares
common
,
to
offered
at
underwriting!* The
holders
to
the
of
par
,
per
stock will'
common
such share for
and
each 10
shares for
and seven such common
shares held
i
.
and
($14 2/7
common
outstanding
basis of one
the
on
, of
common
at ^competitive bidding
be
shares held. Proceeds—To reimburse
the issuer's treasury for expenditures made for property
additions and improvements. Probable bidders: Halsey,
Stuart & Co.' Inc., and Morgan Stanley & Co.
Office—
140 New Montgomery Street, San Francisco 5, Calif.
10 preferred
Equipment Rental, Ltd.
(2/11)
Dec. 30 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Feb. 1, 1970, with common stock pur¬
chase warrants attached, and 207,500 shares of common
stock, of which 127,500 shares of the common are to
be offered for the account of selling stockholders, 80,000
shares
the
of
common
the exercise
upon
100,000
of
are
be
to
reserved
for
are
and the remaining
to be offered in units with
the
debentures, each unit to consist of 10 common shares
$200 principal amount of debentures. Price—$250
per Unit. Proceeds—For working capital, to be used for
expansion. Office—Floral Park, L. I., N. Y. Underwriter
—Burnham & Co., New York City.
and
National
Lawnservice Corp.
(letter ef notification) 100,000 shares of com¬
(par one cent). Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office-^-410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y.
Jan.
11
mon
stock
•
Nord
Photocopy & Business Equipment Co.
(2/15-19)
Jan.
3,500
27
filed
shares
issuing
36,400 shares of common stock, of which
to be offered for the account of the
and
shares, representing out¬
to be offered for the account of the
32,900
standing stock, are
holders thereof.
present
market.
Price—To
be
related
to
the
Proceeds—To buy outstanding capital shares of
Utilities Corp., with the balance for general
Television
corporate purposes.
Office—New York City.
Under¬
writer—Myron A. Lomasney & Co., New York City.
Note —.Last Sept. 25 the same underwriter offered to
quick oversubscription 100,000 shares of Nord common
at $5 per share.
*
.
North Carolina
Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, tc
be offered for subscription by holders of
outstanding
held.
Price—$2
edness
shares for each five share*
Proceeds—To reduce indebt¬
with
the balance, if any, to be used as
working
Office—Matthews, N. C. Underwriter—One oj
capital.
more
new
share.
;per
security
dealers
will
be
offered
any
shares
noi
subscribed for at $2 per share.
200,000
Corp.
275,000 shares of common stock, of which
to be publicly offered. Price—$3.75 per share.
are
Proceeds—To
tories
of
reduce
gears
and
indebtedness
mufflers.
and
Office
increase
342
inven¬
South
St.,
Underwriter—Mortimer B. Burnside & Co., Inc., on an /'all or nothing best efforts" basis.
The underwriter will receive $15,000 for
expenses, a
$.75 per share selling commission on the 200,000 shares
comprising the public offering, and the privilege of pur¬
chasing 37,500 shares of the common stock at $.10 per
share.
The 37,500 shares thus far unaccounted for are
to be sold to John L. Appelbaum at $.10 per share in
—
Rochester, Michigan.
consideration
of
certain
Expected in February.
services
rendered.
Offering—
'
•
Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 31
cents.
Price—$2 per share.
Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna
tional Trade Mart, New Orleans. La,
Underwriter
Assets Investment Co., Inc., New Orleans, La.
The SEC
"stop order" hearing has been postponed from Jan. 23
to Feb. 25.
*
Onyx Chemical Corp.
Jan. 15 filed 140,000 shares of common stock
(no par).
Proceeds—To ac¬
Office —190 Warren
Price—To be supplied by amendment.
quire
Onyx
Oil
&
Chemical
Co.
Street, Jersey City, N. J.
Underwriter—McDonnell &
Co., Inc., New York City. Offering—Expected in Febru¬
ary.
'
'v
"
Ovitron
(2/10)
shares at $3.25 per share. Price — $3.75 per
share, with warrants. Proceeds—For general corporate
common
including the addition of working capital, the
of
indebtedness, and the provision of the
$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York'
Office—245 W. 55th .Street, New York.
UnderwritersHilton Securities, Inc., formerly Chauncey,,Walden, Har¬
ris & ^Freed, Inc., New York.
.7 ;
7
Corp., Detroit, Mich.
Oct, 27 filed 150,000 shares of common stock (par one
cent). Price—$6 per share. Proceeds—For research and
,
.
.
Electronic
Peterson
Die
Jan. 19
Inc.
100,000 shares of
Co.,
r
(letter of notification)
common
stock (par $1). Price—$3 per share. Proceeds—For gen-v
eral corporate purposes.
Office—382 Springfield Ave.,
Summit, N. J. Underwriter—G. K. Shields & Co., New
York, N. Y.
7
,
Petroleum
Projects
f*
Oct. 13 filed $1,500,000 of participations in oil and gas
exploratory fund. Price — The minimum participation
will cost $10,000. Office—Madison, N. J. Umierwriter—
Mineral Projects Co., Ltd. '
; /
.
-
•
Phillips Developments, lnc.^(2/24)
»;
Dec. 21 filed 400,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
property development, possible acquisitions, and work¬
ing capital. Office — 1111 West Foothill Blvd., Azusa,
,
Calif.
and
are
company
Inc.
News,
17 filed 400,000 shares of common stock (par 10
cents) with warrants to purchase an additional 100,000
issuance
the warrants,
shares
common
Pathe
Sept.
purposes,
reduction
Indefinitely postponed.
National
Nov. 30 filed
common
opening of three
reserved
by amendment. Proceeds
Nu-Era
Proceeds—Together with other funds, will be
the
stock
common
stock in the ratio of two
Jan. 29 filed 15,625 shares of capital stock to be offered
in exchange for outstanding class A and class B stock
of Foxbilt, Inc., Des
preferred
shares
offered
be
to
,
Feb.
stock, said
warrant
York.
Mobilife
offered
be
Corp.
filed 50,000 shares of common stock
(par It
and 50,000 warrants to be offered in units, consisting of one share of common stock with attached
10,045,630
and
common
share), without
16
cents)
of
Berry, Douglas & Fitzhugh, Inc., Nashville, Tenn.
said
Corp., Manchester, N. H.
shares
Inc.
Jan. 18 (letter of notification) 80,000 shares of common
stock
(par $1).
Price—$2.50 per share.
Proceeds—To
pay all non-current accounts, taxes, mortgage and for
working capital. Office—Hartselle, Ala. Underwriter—
1993,
1,
debentures
each
Microwave
share.
Industries,
Office—404 Mining Exchange Build¬
Pacific Telephone & Telegraph Co. ,(2/16),,
Jan. 22 filed $72,000,000 of 33-year debentures, due
Proceeds
stock
(Hubert)
—
expenses.,
ing, Colorado Springs,: Colo. I Underwriter—Birkenmayer
& Co., Denver, Colo.
^
v
'7
the general funds of the company. Office—c/o
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
Un¬
June
Price
mining
of
Jan. 18
Mitchell
9
stock.
—For
Narda
Gold, Inc. ■
7/77',-;
(letter of notification) 75,000 shares of common
At par ($1 per share).i Proceeds — Foi
Pacific
Dec.
convert¬
entitling the holder to purchase one additional
The statement also includes an additional 10,000
Components Corp.
;
(letter of notification) 60,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Office—2300 Shames
Drive, Westbury, N. Y. Underwriter—Mortimer B. Burnside & Co., Inc., New York, N. Y.
City, Mo.
City, Mo.
debentures, series A, due Oct. 1, 1969.
Debentures are convertible at any time through Oct. 1,
1968 into class A non-voting common stock (par $5) at
debentures
Office—1524 Crystal Avenue, Kan¬
Underwriter—Stern Bros. & Co., Kansas
working capital.
sas
ible subordinated
100
33,250 shares of common
Price—$9 per share. -Proceeds^—To re¬
short term bank loans and accounts payable and
(par $2).
duce
Corp.
(letter of notification) $300,000 of 6%%
of
■
(letter of notification)
15
stock
for
7
\
,
Mutual Credit
of
Missile
Jan.
Murphy Finance Co.
filed 100,000 shares of common stock (par $10).
be supplied
by amendment. Proceeds—For
working capital and debt reduction. Office—174 E. 6th
St., St. Paul, Minn. Underwriter—Piper, Jaffray & Hopwood, Minneapolis, Minn.
7
rate
"
Co.
Metal
Owens
Electronic
Price—To
stock
(letter
York.
Dec. 21
the
Thursday, February 4, 1960
.
Underwriter—Sutro Bros. & Co., New
working capital.
Manufacturing Corp.
Nov. 9 (letter of notification) 50,000 shares of common
stock (par 10 cents)."Price—$6 per share.
Proceeds—
For general corporate purposes.
Office—Beech Street,
Islip, N. Y. Underwriter—Heft, Kahn & Infante, Inc.,
Hempstead, N. Y. Offering—Expected in January.
Oct. 6
.
.
Underwriters—Allen
&
Co., Bear, Stearns* & Co.,
Sutro Bros. & Co., all of New York City.
-.f,
^ Phoenix Gems, Inc.
Jan. 25 (letter of notification)
100,000 shares of class A
($1 per share). Proceeds
—To pay off an outstanding debt and for
working cap¬
ital. Office—1711 E.
Elwood, Phoenix, Ariz. Underwriter
—None.
I
common
stock.
Plastic &
Jan.
Price—At par
Fibers, Inc*
18
(letter of notification) 85,714 shares of common
(par 40 cents). Price—$3.50 per share. Proceeds
—For general corporate purposes. Office ^ Whitehead
Ave., South River, N. J. Underwriter—Arnold Malkan
stock
&
Co., Inc.; New York, N. Y.
im¬
*
precision Transformer Corp^ Chicago
Dec. 29 filed $700,000 of 6V2% subordinated convertible
debentures, due 1970, with attached warrants to pur¬
chase 28,000 common shares; and warrants for the
purr
chase
of
125,000
shares, which may be "issued
and
150,000 common
debentures, par; for the com¬
common
to
company-connected
people;'
shares. Prices—For the
the
price
will
be supplied by amendment.
Pro¬
reduction, plant construction, and
equipment. Underwriter—John R. Boland & Co., Inc.,
New York City, who will work on a "best efforts" basis
mon,
ceeds
and
—
For
receive
a
debt
commission of $120 per
sold-
'
■
,
-.
.
t,
$1,000 debentures
v;,7;,.
x
r...
Preferred Insurance Co.
Dec. 30 filed 59,364 shares of
outstanding common stock,
to be exchanged by certain of the issuer's
shareholders
subject to an agreement with Preferred Automobile Un¬
derwriters
Grand
Co,
Office —126
Ottawa
Avenue,
N.
Rapids, Mich.
W.,
v
Professional Life & Casualty Co.
,
Jan. 29 filed 180,000 shares of common stock.
Price—$10
per share.
Proceeds—For the company's insurance busi¬
ness
and
curement
expenses,
of
and
business.
working
capital
Office—720
for
the
pro¬
N.
Michigan Ave.,
Chicago, 111. Underwriter—Professional Casualty Agency
Co., Chicago, 111.'
Prudential Commercial
Corp.
Oct. 21
(letter of notification) 150,000 shares of common
one cent).
Price—$2 per share. Proceeds—
For general corporate
purposes.
Office—City of Dover,
County of Kent, Del. Underwriter—All State Securities,
Inc., 80 Wall Street. New York, N. Y.
stock
(par
Public Service
Co. of Oklahoma
(2/24) •
$14,000,000 of first mortgage bonds, series
H, due Feb. 1, 1990. Proceeds—For construction. Office
Public Service Bldg., 600 S. Main, Tulsa
2, Okla. Under¬
Jan.
25
filed
writer—To be determined by competitive
bidding. Prob¬
bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros.
& Hutzler;
White, Weld & Co. and Shields & Co. (joint¬
ly); Blyth & Co., Inc.; The First Boston Corp.; Equiable
Volume
II
table Securities Corp;
rities «Sc-Co. (jointly);
,
.
The Commercial and Financial Chronicle
.
and Eastman Dillon, Union Secu¬
and Glore, Forgan & Co.
15 filed 48,500 shares of class A common stock,
$1);'200,000 shares of class B common stock (par $1)
and $388,000 of 6% subordinated debentures, due July
j 1971. With the exception of 151,500 shares of class £
common allocated to the organizers of the company at
par, the securities are to be offered to the public in units
of $4,000 Of debentures, 500 class A shares, and 500 class
B shared/ Price—$5,000 per unit. Proceeds—For invest¬
ment fci the securities of its subsidiary, Puerto Rico
Meat Packing Co., Inc., which will use the funds, esti¬
mated at $600,000, as operating capital. Address—P. O.
Box No. 622, Little Rock, Ark. Underwriter—None. -
subsidiaries; to repay a bank loan of $6,400,to working capital; to retire certain longcerm
indebtedness; amd to develop citrus groves. Office
—250 South East First Street, Miami, Fla. Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.
000;
Oct.
(par
k
■
vi
M
■
u*
H
i -i
;
it, Realty Equities Corp.v
Feb. 2 filed 150,000 shares of common
vv.-i
jtr
New York, City. ;.'
': ..'
Insurance Cov'
;;S'
filed 70,000 shares of capital stock, of which 30,676
Reserve
be offered fOr public sale for the account
and The^balance for the1 account;of present
holders.- Price—To be supplied by amendment.
Pro¬
ceeds—To be used for financing additional business; for
shares are to
qualifying to transact business in other states, and the
general fund. Office—180 West Adams St., Chicago, 111.
Underwriter—-Walter C. Gorey Co., San Francisco, Calif.
Row, Peterson & Co.J;(2/10)
Jan. 6 filed 164,689 shares of Common
•
the completion of- the proposed/offering,
operating profit in the fiscal year ending April 30,
was about $1,48. per share.)
Office—Evanston, 111.
ing effect, to
1959
Underwriter—Kidder, Peabody & Co., Inc.
%
^
V
.X
it (Compagnie de) St. Gobain (France)- v.'
Feb. -1 -Morgan- Guaranty
Trust Co. filed American
Depositary Receipts for 60,000 of the issuer's bearer
shares.iX.;,-"' ;,-v.£ IV";.;..;''*;;
-
v;.!/
it Sanborn Co.
27 (letter of notification) 11,076 shares of common
stock (par $ J) to be offered to employees of the com¬
pany. Price—To be supplied by amendment. Proceeds—
For working capital, t Office—175 Wyman
Street, Waltham, Mass. Underwriter—None.
•' I
Jan.
Seacrest
Industries
u';:
Corp.
Dec. 4
(letter of' notification) 165,000 shares of common
(par one cent).Price—$f.per share. • Proceeds—
For'general corporate ... purposes.- Office—354 Franklin
Avenue, Franklin Square, L. I., N. Y.
Co.j Inc., New York, N. Y.
Underwriter—A.
J. Gabriel
x
Corp.
(.3/14)
:
Dec. 28 filed $1,500,000 of 6% convertible subordinated
debentures due July 1, 1965. The company proposes to
offer $300,000 of the debentures in "exchange for
its
for
cash
sale
will
sold
be
on
$
E*.a
4
M
■$
y
if
p
Shield Chemical
a
best
a
efforts
basis
5% commission. X
Ltd. X
(letter of notification) 95,000 shares of capital
stock (par 10 cents).
Price—$1.50 per share. Proceeds—
Tp purchase and install manufacturing equipment; con¬
and
test
equipment;
advertising and for working
capital. Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen, Inc., Denver,
Colorado.
i
.
★ Solon Industries, Inc.
(letter of notification) 50,000 shares of common
stock (no par).
Price—$5 per share.
Proceeds—For
working capital. Office—c/o A. M. Hubman, 4061 Conoyer
Road, University Heights, Ohio. Underwriter—
Jan. 26
ft.'j
/I
Gaither & Co., Inc., Cleveland, Ohio.
per
share.
195,000 shares of
common
move
to
new
stock. Price—$3
plant facilities;
to acquire additional
working capital; to expand pro¬
duction facilities and for operations; for research and
development; for test equipment and for advertising and
sales promotion. Office—3050 W. 21st Street, Brooklyn,
N. Y.
Underwriter
—
one
share
new
for
stock, being of¬
common
stockholders
of
record
each
10
Feb.
shares
3
on
the
then
and to continue research and
to
space.'
development, and the bal¬
purchase additional factory and office
Office—188 Webster St., North Tonawanda, N. Y.
lease
or
Underwriter—C. E. Stoltz &
George, O'Neill & Co., Inc., New
York, N. Y.
it Teletray Electronic Systems, Inc.
27 filed 150,000 shares of class A common stock.
Price—$3 per share.
Proceeds—For general corporate
purposes.
Office—880 Bonifant Street, Silver' Spring,
Md.
Underwriter—A. T. Brod & Co., New York City.
Tennessee
Gas
Transmission
Co.
(2/18)
Nov.
12
filed
Price—$5
per
Industries, Inc.
963,000 shares of common stock (par $1).
share. Proceeds—For investment. • Office
Greenville, S. C. Underwriter — Capital Securities
Corp., 121. So.-Main Street, Greenville, So. Car., on a
"best efforts" basis, with a commission of 50 cents per
share.
..
^Southwest Forest Industries, Inc.
Jan.
filed
29
not
to
exceed
of subordinated income
stock,
mon
and
such
to be
amendment.
in
stock.
units
of
—
Building,
Weld
Phoenix, Ariz.
Co., New York City.
&
Sta-Brite Fluorescent
such
com¬
debentures
supplied by
capital and the
444 First National
Underwriter—White,
Manufacturing Co.
(2/10)
(par $.10).
Price—$5 per share./Proceeds—For plant improvements,
opening new muffler: and brake shops, advertising, new
product engineering and promotion, and working capital.
Office—3550 N. W. 49th
•
Plohn
&
6
St.,- Miami, Fla.
Co., New York City.
Underwriter-
Corp.
Dec. 28 (letter of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—For
new quarters, expansion and
working capital. Office—
40 N. 2nd Street, Philadelphia, Pa. Underwriters—First
City Securities; Inc., New York, N. Y. and Frank P.
Hunt & Co., Inc.; Rochester, N. Y. Offering—Expected
next week,
Inc.
exchange for the stock of Rich Mfg. Corp.,
the basis of 42/100 shares1 of Sterling for each share
Rich; such - offer is contingent upon its acceptance
by holders-of--at-least 95% of Rich common. Office—
on
NorthXThird Street, St.
Jan.
Charles, Mo.
Inc.
(letter of notification) 96,250 shares Of
common
stock
(no par).
bank
indebtedness, acquire new equipment and tools,
working capital. Office—Stone Street, Walpole,
-
Price—$2
per
share.
Proceeds—To pay
for
Mass.
Underwriters—Street & Co. and A. J. Frederick
Co., Inc., New York, N. Y.
Supermarket Service, Inc.
Oct. 14 (letter of notification) 9,000 shares of common
stock (no par). Price—$11.50 per share. Proceeds—For
working capital; Office — 103 E. Main St., Plainville,
Underwriter
Conn.
E.
—
T.
Andrews
&
it Surety Life Insurance Co.
be
filed
Salt
10,000
shares
of
common
supplied by. amendment;
of the
Lake
employees.
present holders thereof and the remaining 86,576 shares
are
to
rate
offered
be
of
one
for
subscription
additional
share
City,
Lake
business.
stock.
Price—
Proceeds—For expan¬
Office—1935 So.
Utah.
Underwriter—J.
City, Utah.
Main Street,
Price—To be supplied by amendment. Proceeds—
general corporate purposes. Office—Greenville, S. C.
Underwriter—Kidder, Peabody & Co., New York, N. Y.
Transit Freeze Corp.
3 (letter of notification)
Dec.
75,000 shares of common
(par 10 cents). Price—$4 per share. Proceeds—For
incidental to the development of a frozen food
trucking business. Office—152 W. 42nd Street, New York
City. Underwriter — Jerome Robbins & Co., 82 Wall
stock
expenses
on
a
"best efforts" basis. Offering—Expected in
(The)
,
T Transportation
Inc.
convertible
Plan,
Oct. 7 filed $600,000 of 7%
subordinated
debentures, due November, 1969, 60,000 shares of com¬
mon stock (par one cent) and 30,000 common stock pur¬
chase warrants, to be offered in units consisting of $100
debentures, 10 common shares, and 5 warrants. Price-,
—$150 per unit. Proceeds—For general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ross, Lyon & Co., Inc.,
New York states that they are no longer underwriting
this issue..
it Transworld Equipment Corp.
Jan. 25 (letter of notification) 139,832 shares of common
stock (par 10 cents).
Price—$2 per share.
Proceeds—
For general corporate purposes.
Office—119 W. 26th
Street, New York 1, N. Y.
Underwriter—First City
Securities, Inc., New York, N. Y.
Tri-State
Petroleum Corp.
(letter of notification) 199,900 shares of common
stock (par five cents). Price—$1.50 per share. Proceeds
—For expenses for drilling and producing oil. Office—
1403 G. Daniel Baldwin Bldg., Erie, Pa. Underwriter—
A.
Hogle
&
Daggett Securities Inc., Newark, N. J.
•
Turner
Nov.
Timber
12 filed
Corp.
$2,000,000 of 6%% convertible debentures,
1969, and 250,000 shares of common stock (par one
cent), to be offered in units consisting of $1,000 principal
amount of debentures and 125 shares of stock. Price—
due
$1,001.25 (plus accrued interest from 12/15/59) per unit.
Proceeds—For the acquisition of coal and timber prop¬
erties, with any balance to be added to working capital.
Office—60 E. 42nd Street, New York City. Underwriter
—Frank
Co.,
—Expected in February.
P. Hunt &
Co., Inc., Rochester, N. Y.
United Tourist Enterprises,
Finance Co.
(letter of notification)
15
dinated
stockholders at
eight shares
each
held.
Salt
System
Dec.
by
for
Nov. 12
it Supronics Corp.
29 filed 120,000 shares of common stock.
Price—
$6 per share.
Proceeds—$50,000 to reduce short-term
bank loans, and the balance to be used for general cor¬
porate purposes, including expanding the business. Of¬
fice—224 Washington Street, Perth Amboy, N. J.
Un¬
derwriters—Standard Securities Corp., Herzig, Farber &
McKenna, and Irving Weiss & Co., all of New York City,
and Bruno-Lenchner, Inc., Pittsburgh, Pa.
29
for
be
Stock
Chemicals, Inc. (2/24)
Jan. 22 filed 174,576 shares of common stock, of which
88,000 shares are to be offered for the account of the
Co., Hartford.
•'
Jan.
Jan.
Plan
issuer's
the
to
to
stock,
common
Texize
the
notes
due
fan.
$250,000
of
6%
subor¬
Jan.
1, 1966. Price—At face amount.
Proceeds—For working capital. Office— 610 S. Sixth St.,
Champaign, 111. Underwriter — Hurd, Clegg & Co.,
28
filed
Offering
Inc.
4,500,000 shares of class A
common
stock
(par 50 cents).
Price — $2 per share. Proceeds —For
development and construction of a "Western Village"
and for construction of a Grand Esles Hotel and Con¬
amendment.
Proceeds — For ac¬
land and erecting an additional plant, for
tooling and additional equipment, for fixtures and gen¬
eral
furnishings for the new plant, and for reduction of
bank indebtedness.
Office—7725 New Haven Avenue,
Jan.
be
ment effective Oct. 9.
Melbourne, Fla.
Underwriter
inc., Charlotte, N. C.
York
-XTo
be
supplied
quisition
>
Champaign, 111.
stock.
Sottile, Inc.
—
R.
S.
Dickson
&
Co.,
which
the
(Formerly South Dade Farms, Inc.)
senting
"u
1,543,000 shares
account
of
the
are
common stock (par $1),
to be issued and sold for
and 457,000 shares, repre¬
be sold for the accounts
Price—To be supplied by
rbtire 70% of the common
company,
outstanding stock,
to
certain selling stockholders.
amendment.
stock
mvest
Proceeds—To
outstanding at the date 6f the stock offering; to
in the capital stocks-of six of the company's
struction
expenditures, estimated at about $25,000,000.
Office—111 North Dale Mabry Highway, Tampa, Fla.
&
Webster
Securities
Corp.,
New
City.
Tayco
J1 y 29 filed 2,000,000 shares of
of
Electric Co.
(2/3)
7 filed 240,000 shares of common stock.
Price—To
supplied by amendment.
.Proceeds—For 1960 con¬
Underwriter—Stone
Inc.
(2/8)
stock to be offered
subscription by common stockholders at the rateUf
ten-seventy-fifths of a share for each share held. Price
for
to
per
secure
share.
additional
Proceeds—For working capital and
patents on present inventions, and
to continue and expand research and
in
the field of liquid
areas.
U. S.
development work
compressibility devices and other
Office—188 Webster St., North
Polymeric Chemicals, Inc.
(2/16)
Jan. 14 filed 71,090 shares of outstanding common stock.
Price — To be supplied by amendment.
Proceeds — To
selling
Developments,
Dec. 23 filed 5,390 shares of common
—$28.75
vention
of Estes
Tampa
Price
by
of
*
stockholders.
Office—Stamford,
writer—Dominick & Dominick, New
Universal
Conn. Under¬
York City.
Transistor Products Corp..
(2/15)
(letter of notification) 150,000 shares of. com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For
general corporate purposes.
Office — 36
Dec.
18
Sylvester Street, Wectbury, L. I., N. Y. Underwriters—
Michael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.,
$Tew York, N. Y.
Tonawanda> N. Y.
Underwriter—C. E. Stoltz & Co., New York.
-
'■
be '
of
Mark,
25
Underwriter—To
construction.
by
it Texize Chemicals, Inc.
Jan.
27
filed
20,000 shares of
offered
to
employees pursuant
Purchase
•
t
Brothers.
stock which will
common
of
it Su
(2/9)
February.
be offered in
2600
Co.
competitive bidding. Probable biddersi
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kid¬
der, Peabody & Co.; Merrill Lynch, Pierce,- Fenner &
Smith Inc.; Eastman Dillon, Union
Securities & Co.;
Kuhn, Loeb & Co.; Blyth &, Co., Inc. and Lehman
Street,
49,991 shares of
Service
+
$12,000,000 of sinking fund debentures, due *
Proceeds—For
1985.
For
Stantex
it Sterling Aluminum Products,
Electric
filed
determined
•
Nov. 27 filed 140,000 shares of common stock
Charles
Texas
Jan.
be
working
Office
plant.
new
of
Price—To
Proceeds—For
construtcion
•
offered
common
aggregate of $13,500,000
an
debentures, due 1985, and
Jan.
Hall, to be constructed in the immediate vicinity
Park Chalet, located in Larimer County, Colo.
Office —330 South 39th Street, Boulder, Colo.
Underwriter—Mid-West Securities Corp., Littleton, Colo. State¬
Soroban Engineering, Inc. (2/10)
D'ec. 29 filed
100,000 shares of its common
y
<
Co., New York,
Office-^-Houston, Texas. Underwriters—Stone & Webster Securities Corp. and White, Weld &
Co., both of
New York City.
-
Southern Growth
sion
Proceeds—To
104,961 shares of
common
Co.
Co.,
To
★ Sonar Radio Corp.
Jan. 22 filed
share for each share held. Price
19 filed 1,500,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To retire short-term notes, with the balance to general funds.
Conn.
Sept. 8
trol
one
Proceeds
Proceeds—For general corporate purposes, includ¬
ing investments in the issuer's subsidiaries. Office—70
Pine St., New York City. Underwriter—Bioren &
&
$613,000, to the public for cash. Office—555
Street,'San Francisco, Calif/ UnderwriterNo underwriting is
involved; but the debentures offered
or
Minnesota
the
Service
ment.
balance,
through dealers who will receive
Public
held;
rights expire Feb. 23/ Price—To be supplied by amend¬
and
for
filed
to
6% convertible notes due July 30, 1962; $587,000 in ex¬
change for its demand notes totaling $587,000; and the
.
14
\
Secode
,
Jan.
fered
Jan.-29 filed
stock
*1
per
Jan.
Southeastern
Bank
stock, of which
157,346 shares are to be offered for the account of nine
selling stockholders and 7,343 shares for the account of
the issuer. Price—To be supplied by amendment. (Giv¬
net
share.
—
To repay a short-term
loan, for additional working capital, and to establish ex¬
panded executive sales and manufacturing personnel
•
—
of the issuer
■yi
basis of six-tenths of
—$28.75
ance
Price—
Proceeds—For general corporate pur¬
Office—New; York City.Underwriter—Sutro I
Feb. 1
".V ft
stock.
$5.25 per share.
& Co., also* of
Taylor Devices, Inc. (2/8)
23 filed 18,705 shares of common stock to be of¬
for subscription by common stockholders on the
Dec.
Philadelphia, Pa*
Office—Seattle, Wash. Underwriter—Hill, Dar¬
lington & Co., of Seattle and New York City.
Bros.
.
Price—$6.50
Bay Industries,
39
fered
Inc. (2/5)
Dec. 11 filed 210,000 shares of class A stock.
Price—$5
per share.
Proceeds—To pay off bank loans, purchase
machinery, and add to working capital. - Office — 42
Broadway, New York City. Underwriter—Amos Treat &
Co., Inc., of New York City, on a "best efforts" basis.
Offering—Expected in February.
basis
edness.
poses.'
III
;
Proceeds—To buy land and reduce indebt¬
share.
per
to add
South
.
Puget Park Corp. (2/15)
Jan. 6 filed 125,650 shares of common stock.
(595)
bank
seven
Puerto Rico Industries, Inc.
m
M
&
Number 5922
191
Continued
on
page
40
fenjitrw;
v
40
(596)
The Commercial and Financial Chronicle
Continued from page 39
of the
April 21 filed $4,000,000 of
Price—No
less
contracts
and
than-$120
Variable
than
less
premium
contracts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.
A-Walnut
Jan.
Grove
filed
29
no
Products
Co., Inc.,
of class A
shares
300,000
I'eb. 2
premium
.
&
,
be
;
it
was
:
—
1
& Gas Co.
reported
that around July about
$10,000,bonds will be filed. Underwriter—
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc., Kidder, Peabody &
000 of first mortgage
To be determined
and
Jan.
City.
West
Dec. 21
Florida
Natural
amendment
an
Gas
ceeds—For
statement, said amendment covering an exchange offer
to holders of the issuer's
outstanding 6% 20-year deben¬
ture
bonds.
The
First
units of
Each
$100 principal amount of debenture bonds
be exchanged for one unit, such unit to consist of
principal amount of subordinated
debentures, 5
may
$50
Dillon,
it Whitmoyer Laboratories, Inc.
Jan. 28 filed 85,000 shares of common
of 6% subordinated
for the purchase
stock and $500,000
debentures, due 1977, with
of
10,000 additional
Fenner &
Smith, and Stone & Webster Securities (joint¬
share.
Proceeds—For general
the reduction of
including
tion, and equipment.
Consolidated Research & Mfg.
Corp. ~
16 it was reported that
this firm, founded last
August as a Delaware corporation, plans its first
pub¬
lic financing in the form of a common
stock offering,
Pa.
N. J., Inc.,
Y.
Dec. 2
Under¬
tion
&
Co.,
Office—151
Odell
Underwriter—Investment
stock
common
Avenue,
Brokers
of
of
class
B
(par $1).
writer—None.
it
Wyoming Nuclear Corp.
mining
expenses.
Office—Noble Hotel Bldg.,
A. Benson &
Co., Inc..
Lander, Wyo. Underwriter'—C.
Pittsburgh, Pa.
'
Co.
(letter of notification)
150,000 shares of com¬
mon stock
(par $1). Price—$2 per share.
Proceeds—To
increase
inventories,
and
expand
for
manufacturing facilities
W.
Lincolnway,
working capital. Office—1601
Cheyenne, Wyo.
Underwriter
Atlas
Cheyenne, Wyo.
Securities
—
1'
\
Co.,
■
•
Alabama
Power
was
that
near
a
on
Co.
3
April 7.
was
this company
re¬
Registration-Scheduled
for March
4.
Inc., Lansing, Mich.
announced
that the
corporation plans to
issue and
sell 100,000 shares of
common stock
I rice
(par $1).
To be supplied
by amendment. Proceeds—For
ex¬
pansion of present
Michigan and Ohio sales force to
a
national one, and
introduction of new
dent
courses
study schools.
Underwriter—In
presently
writers.
it
filing of
New
York, to be
negotiating
Engineering
was
resi¬
with
named.
two
New
The company
York under¬
reported
Co.
that
there
might be a possible
undetermined amount of common
stock, not
50,000 shares. Proceeds—For
an
to exceed
still
the
in
company
believed
likely
late
in
the
reported that
sometime in the
near
of
common
future.
Under¬
at
$35,375
share.
per
Georgia Power Co.
Dec.
9
it
was
of
$12,000,000
that
of
the company plans
30-year
the
first
mortgage
regis¬
bonds
Sept. 26. Bids—Expected to be received
Information Meeting—Scheduled for Oct. 31.
Dec. 9
tration
year
Power
it
was
with
bonds.
Co.
(7/7)
announced
the
on
SEC
that the company plans
regis¬
$5,000,000 first mortgage 30Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Equitable Securities
Hutzler, and Drexel & Co
Union Securities & Co. In¬
formation Meeting—Scheduled
Expected
to be received
Scheduled for June 3.
Gulf Power Co.
on
for July 5, 1960. BidsJuly 7.
Registration
—
selling stockholder
the account of
and
possibly
some
for
the
a
account
it
3
stock
—High-Point," N.-C. Underwriter—Bache *
York City and Charlotte, N. C>
'/■".
Mississippi
Dec.
9
it
Power
Co.
?
Co.,
/'"
New '
~
;;'
(3/17)
(7/7)
company plans regis¬
mortgage 30-year bonds.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Mer¬
tration
of
$4,000,000
first
of
rill Lynch, Pierce, Fenner & Smith Inc.; Eastman
Dillon,
Securities & Co. and Equitable Securities
Corp.
(jointly). Information Meeting—March 14, 1960. Bids—
Union
Expected to be received
Scheduled for Feb. 11V'
Nedick's
Nov.
12
March
on
./
;v
IT. / Registration-
"
>
,
Stores, Inc.*
it was reported that the company is contemV
the placing in registration of 17,000 shares of
plating
common
stock.
About 66%
of the issue will be
for the company's account and the
remaining. 34%
ance will be sold for the account of a
sold r
bal-
selling stockholder.
Underwriter—Van Alstvne, Noel & Co., New York.
Jan.
the
15
Federal
Power
announced r
they had authorized the Seattle, Wash., utility to issue
up to $25,000,000 in
unsecured promissory notes out¬
standing
at any one time, to
be issued in varying
beginning Feb. 1, all such notes to mature July
The interest will be equal to the prime rate for
New York City commercial bank loans at the
time of
the borrowings.
Proceeds—To discharge all notes out¬
standing under a previous credit agreement,, to re¬
,,
31, 1961.
imburse
itures,
the
and
issuer's
treasury for construction expend¬
provide temporary financing for future
to
construction.
Carolina
Electric
&
Gas
to
Co.
22, S. C. McMeekin, President, announced plana
sell
approximately $8,000,000 of bonds in December,
1959.
Proceeds—To repay bank loans incurred for
rent
construction
placed privately.
newspaper
be
placed
Previous
program.
issues
have
cur¬
been
Note—On Dec. 31 Mr. McMeekin told
he
does
not
privately.
this summer; the precise
ket conditions.
know
He
Southern
Dec.
9
it
tration
Electric
whether
expects
them
the
to
bonds
be
timing will be subject to
Generating Co.
announced that this
was
with
the
SEC
sold
mar¬
(6/2)
company plans regis¬
of
$40,000,000 of 30-year first
bonds.
Underwriter
To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith Inc.,
and Blyth &
Co., Inc. (jointly); Morgan Stanley &
mortgage
—
Co.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Dillon, Union Securities & Co.; Equitable Secu¬
rities Corp.,
and Drexel & Co.
(jointly); The First
Boston Corp. Information Meeting—Scheduled for
May
31, 1960.
Bids—Expected to be received on June 2.
Registration—Scheduled
Tennessee
Jan.
20
for
April 29.
Valley Authority
announced
tnat,
(7/1)
to August, 1959, au¬
Congres to have $750,000,000 of rev¬
outstanding at any one time, it plans its first
public offering, expected to be,about
$50,000,000, for
July 1, 1960. Probable bidders: First Boston
Corp. (man¬
aging), Salomon Bros. & Hutzler;. Eastman Dillon, Union
Securities & Co., and Lazard Freres & Co.
thorization
pursuant
from
bonds
enue
bidding.
Corp.; Kidder,
Peabody & Co., and White, Weld & Co.
(jointly). In¬
formation Meeting—Scheduled for
July 5, 1960. Bids—
Expected to be received on July 7.
Registration
—
Scheduled for June 3.
it Hamilton Management Corp.
Feb. 3 it
was
non-voting
reported that
common
the week of Feb. 23.
stock
an
undetermined amount of
may
possibly be
Office—Denver, Colo.
registered
Underwriter
—Kidder, Peabody & Co., New York City.
It
Harvey Aluminum Co., Torrance, Calif.
was
reported
late
last
year
that
this
old
Harvey Machine Co.
is
planning its initial public
financing for the Spring.
Underwriters—Kuhn, Loeb &
Co.
(managing) and Tucker, Anthony & R. L.
Day, both
of New York
City.
.
..
Hawaiian Telephone Co.
Aug. 3 it was reported
company received approval from
market
ceeds—To
raise
twice
in
1960
common
permanent
its 1960 expansion program.
Transval
Electronics
with
the
sale
of
and preferred stock.
first
Pro¬
funds
for the financing of
Office—Houston, Texas.
Corp.
R.
F. Downer, an official, announced on Jan. 8 that
Norman C. Roberts Co., San Diego 1,
Calif., and the Los
Angeles office of Sutro & Co. (home office: San Fran¬
cisco) "may be contacted regarding any and all in¬
quiries with respect to the issuance and sale of Transval
stock."
"
'
.
it Utah Power & Light Co.
Feb. 3 it was reported that
there
year
a
firm—the
to
come
company
stock.
of
toward
the
end
of
this
expected to be some financing
about $25 million, of bonds and
by
this
is
common
Underwriter—To
bidding.
Blyth &
be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Co. and First Boston Corp. (jointly); White,
Weld & Co.; Stone & Webster Securities
Salomon Bros. & Hutzler;
Corpv,(jointly);
Kidder, Peabody & Co.; East¬
man
Dillon, Union Securities & Co. and Smith Barney
(jointly); Lehman Bros.; Bear/Stearns & Co.
& Co.
:
1
Commission
mortgage bonds, and
was
of
■
i
that the
announced
was
&
Probable bidders: Harriman
Ripley & Co.; Eastman Dil¬
lon, Union Securities & Co., and Salomon Bros.
&
Hutzler (jointly); Equitable Securities
it
>
w
was
reported that 200,000 shares of common
expected to be filed the-week of Feb. 8. Office
are
Transcontinental Gas Pipe Line Corp.
^
J
Sept. 29 it was announced that the company plans to
9
tration
t
it Mac" Panel Co.
Feb.
announced that the
company plans regis¬
50,000 shares of preferred stock (par
$100).
Underwriter—To be determined by
competitive
Dec.
;
♦
—
Eastman
of
;
First
—
—
for
Gulf
Office
Underwriter
this
SEC.
Underwriter
To
be
determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
Nov. 3.
facilities.
Maspeth, Queens, L. I.,
Philadelphia Corp., 40 Exchange Place, New York City.
~;
•
'
N. Y.,
will
(11/3)
announced
;
\
is
June
400,000 shares
writer—Blyth & Co. of New York City, which announced
last July 17 the
completion of a secondary of the issuer's
common
Petrochemicals, Inc.
1
reported that February registration
was
facturing
South
Inc.
was
—
★ Barnes
Feb. 3
and
Business—In correspondence
school
Office—1609 Kalamazoo St., Lansing, Mich.
TT«S^eSSis
it
(jointly); Eastman Dillon,
(4/7)
announced that
^t™®r'.can Jet School,
Aug. 31 it
visited
future.
it Genesco,
Feb.
auditors
broadcasting.
Underwriter—
amounts
Smith Inc.; Salomon Bros. &
plans regisEnH0™
the Securities,anji Exchange Commission of
$19,500,000 of 30-year first
fhortgage bonds. Underwriter
be
£et,ermined by competitive bidding. Probable
bidders: Halsey, Stuart &
Co. Inc.;
Morgan Stanley &
Co.; Lehman Brothers; The First
Boston Corp.;
Blyth &
Co
Inc. and
Kidder, Peabody & Co.
(jointly); Eastman
Dillon, Union Securities &
Co.; Equitable Securities
Corp and Drexel & Co.
(jointly). Information Meeting
—Scheduled for April
4, 1960. Bids—Expected to be
ceived
York
Corp.;
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Prospective Offerings
Dec. 9 it
New
make
Registration is
uled
Manufacturing
16
of
reported that this Newark, N. J., corpora¬
was
December.
with
of
notification) 10,000,000 shares of com¬
mon stock.
Price—At par (three cents
per share). Pro¬
ceeds—For
Young
Co.
an
announcement
in
the
next
two
weeks concerning a forthcoming issue of common
stock.
Although no confirmation has been forthcoming, it is
tration
Dec.
&
for
expenses
Sept. 11 (letter
Beverly
stock will be filed
Price—$5 per share. Proceeds
organizing an insurance company.
Office—8002 Wisconsin
Avenue, Bethesda, Md. Under¬
—For
reported that this company is planning
sometime in the Spring.
Office,—
might
it
20
Puget Sound Power & Light Co.;
was
understood
common
844 Broad Street,
Newark, N. J.
it Woman's Life Founding
Corp.
Jan. 22 (letter of
notification) 60,000 shares
it
Englehard Industries, Inc.
promo¬
Proceeds—For
purposes.
3
Calif. Underwriter—Bache
City and Beverly Hills, Calif.
purposes/
indebtedness, sales
pro-
Corp.
Hills,
System, Inc.
(letter of notification) 86,403 shares of
(par $1).
Price—$3 per share.
N.
it Electrada
of
$6
Jan. 29
general corporate
spring. Business—The company
containers to combat ice, snow, and
fog.
Proceeds—For expansion. Office—1184
Chapel St., New
Haven, Conn. President—Marvin Botwick.
spray
financing
it Wilier Color Television
Yonkers,
-
dues
at
writer—Hallowell, Sulzberger, Jenks, Kirkland
Philadelphia, Pa.
stock
scheduled for next
-
Radio
Mich.
of $175,000/of convertible < deoentures
and
55,000 shares of common stock. Prices—To be supplied
by amendment: Proceeds—For the expansion of manu-
Dec.
shares
corporate
Office—Myerstown,
Bids—Scheduled to be received March 15 at 11:00
(EST) at the offices of Commonwealth
Services,
Inc., 300 Park Avenue, New York City.
a.m.
Feb.
$5 per share.
Price —For
the
debentures^ 100%
principal amount; for the 85,000 common
shares,
per
Kidder, Peabody & Co.; Eastman
& Co.; Merrill
Lynch, Pierce,
Securities
ly).
"
warrants
common
Corp.;
Union
.
shares of cumulative
preferred, and 5 shares of class A
common.
The statement became effective
Jan. 29. The
offering began Feb. 1 and ends Feb. 23.
Office—Maple
& Third
Streets, Panama City, Fla.(
Underwriters—
White, Weld & Co. Inc., New York City, and Pierce,
Garrison, Wulbern, Inc., Jacksonville, Fla.
(jointly).
of
construction, expected to total about
Probable bidders: Halsey, Stuart & Co.
Inc.;
Boston
-
stock.
issuance
1960
$17,000,000.
holders
may exchange said bonds for
$416,000 of 7y2% subordinated debentures, due
Jan. 1, 1960, 41,660 shares of
7y2%
cumulative pre¬
ferred stock, and
41,660 shares of class A common
for
—
expected
plans to file with the Illinois Com¬
$14,000,000 of first
mortgage bonds, to be sold at competitive
bidding. Pro¬
prior regis ration
a
announced
Commission
merce
Co.
filed to
was
19
Business
....
Kenrich
determined
Electric
Stations.
Shepard St., Lansing,
New York, to be named.
Jan.
To
—
of radio
.
Office—130
Co.,
White, Weld & Co. (jointly); First Boston
Corp.,
Blair & Co., Merrill
remainder to be used for
Lynch, Pierce, Fenner & Smith Inc.
construction, equipment, and
and Stone & Webster
Securities Corp. (jointly). working capital.
Office—6505 Wilshire Boulevard, Los /
it Central Illinois Light Co.
Angeles, Calif.
Underwriter—A. T. Brod & Co., New
(3/15)
•
sition
Power" Co.
derwriter
★ Central Llinois
To
be supplied by
amendment.
Proceeds
$350,876 will be used to retire certain debts, with the
York
4
In
Feb. 3
—
Electric
was
;
filed 300,000 shares of common stock and warfor the purchase of an additional
100,000 shares.
Price
it
by competitive bidding. •>
Probable bidders:
'Halsey,' Stuart & Co. Inc., Kidder,v
Peabody & Co., and White, Weld & Co.
bank
29
rants
3
.
/ " I
'
1
independent Radio, Inc., Lansing, Mich. ' i, I
Aug/"31 if was announced company plans to issue and
~
'
'
'
sell 100,000 shares of common stock (par 10 cents). Price
-To be supplied by amendment/ Proceeds—For acqui-;■
reported that there might be some new
financing in the second quarter of this year, probably
in the form of bonds. Proceeds—For
construction. Un¬
it Wells Industries Corp.
Jan.
privately,
Inc.
proxy
Qq, ' Offipie—3830 Kelley Avenue, Cleveland 14, Ohio.
Feb.
borrowings of
$4,500,000 and replenish working capital.
Office
—
Atlantic, Iowa. Underwriters—First Trust Co., Lincoln,
Neb., and Cruttenden, Podesta & Co., Chicago.
repay
a
Thursday, February 4, 1960
.
the Territorial Public Utilities Commission to issue about
new bonds.
Last bond issues were placed
the
it California
stock,
common
$3,000,000 of 15-year 6y2% sinking fund debentures,
with warrants to purchase 50 class A common shares
with each $1,000 debenture.
Price—To be supplied by
Proceeds—To
mailed
.
$4,500,000 of
-
and
amendment.
Hayde'n, Stone & Co.,
statement to stockholders stating^
company is considering a new public offering
of 100,000 shares of capital stock.
The company's first
public offering, on Feb. 5, 1959, was handled by Bache
that
-
—
City.
it Bobbie Brooks,
Policies
Annuity
for annual
$1,500 for. single
year
a
Underwriter
comoany
New York
Variable Annuity Life Insurance Co. off America
.
Number 5922
Volume 191
.
.
The Commercial and
Financial Chronicle
.
(597)
Indications of Current
Business
42
Gasoline
—
Kerosene
output
(bbls.)
Distillate
fuel oil
output
Residual fuel oil
(bbls.)
Distillate
fuel
ASSOCIATION
at
Jan.22
28,753,000
2,943,000
13,644,000
oil
OF
AMERICAN
I
i
freight loaded
freight received from connections
ENGINEERING
(number
of
Private
'
■*,
J
CONSTRUCTION
—
.
;
25,866,000
132,638,000
26,583,000
50,089,000
138,539,000
51,263,000
151,441,000
Manufacturers'
Retail
587,339
605,757
468,752
552,636
501,764
522,841
BUREAU
$245,200,000
139,900,000
105,300,000
$372,900,000
203,500,000
169,400,000
102,300,000
81,900,000
100,800,000
89,400,000
$191,000,000
23,400,000
68,600,000
Jan.23
8,650,000
8,825,000
Jan. 23
OF
Jan. 28
6,850,000
364,000
440,000
331,000
12,900,000
60,858,000
_
SALES
SYSTEM—1947-40
ELECTRIC
EDISON
Electric output
FAILURES
INDEX—FEDERAL RESERVE
AVERAGE= 100_.
INSTITUTE:
(in
000
—Jan. 23
.
.
.
AGE
COMPOSITE
Finished
steel
Jan.30
AND
INDUSTRIAL)
-
DUN
-
Pig iron
(per gross
(per
METAL PRICES
Electrolytic
(E.
Lead
,
J.
—
(St.
U.
6.196c
6.196c
6.196c
$66.41
$47.17
$42.50
33.225c
34.150c
28.675c
33.775c
32.950c
31.700c
31.525c
12.000c
12.000c
11.800c
13.500c
13.500c
13.000c
12.000c
13.000c
13.000c
:
12.500c
Jan.27
26.000c
26.000c
100.375c
98.750c
y
82.62
2
31
87.45
2
85.33
2
82.90
MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds
83.40
89.64
87.32
85.20
85.20
83.28
78.09
77.97
78.43
81.05
81.05
88.13
83.66
89.37
83.15
83.15
2
85.72
2
'
85.59
,
85.85
ROUND-LOT
TRANSACTIONS
FOR
249
BANK
EMPLOYMENT
OF
LABOR
3.87
4.44
Durable
4.61
4.61
4.16
2
4.76
Nondurable
4.77
4.77
4.26
2
4.95
4.94
4.92
4.44
...
5.35
5.36
All
All
OF
All
5.10
5.10
4.55
4.93
4.89
4.46
2
4.91
378.0
380.1
375.8
331,705
314,647
296,038
289,474
322,114
324,592
323,362
292,534
95
97
95
91
459,259
447,667
469,641
378,182
111.62
111.70
111.41
-
4-"4'
All
Total
sales
Total
1,802,270
2,236,990
Jan.
off
the
floor—
.
8
3,246,640
2,023,080
2,645,740
floor—
471,560
297,540
405,800
8
523,010
312,350
431,440
852.659
717,825
881,108
103,490
137,740
872,065
619,383
792,482
1,029,020
1,005,725
sales
895,972
4,109,408
627,640
322,280
537,840
sales
Jan.
:
'
1
—
DEALERS
SPECIALISTS
AND
ON
Y.
N.
Dollar
of
4,775,375
2,719,193
3,041,473
3,435,312
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales.
Dollar
3,973,152
4,929,550
1,535,093
1,916,269
$131,297,370
$77,675,354
$97,462-,821
value
8
1,815,624
1,350,698
1,762,290
5,967
4,306
6,629
8
1,809,657
1,346,392
1,755,661
1,956,435
8
$93,635,457
$63,931,822
$85,326,989
I
322,730
476,610
round-lot
39M00
322^730
4~7~6~,6lo
4941960
1,083,970
Jan.
510,590
640,860
709,140
372,180
610,050
18,171,170
13,278,090
17,059,770
Processed
Jan.
Meats
All
13,650,270
17,669,820
U. S. DEPT. OF
•Revised
of
Jan®
1,
figure.
1960
as
one-half cent
a
276,665,190
106,499,132
105,866,136
453,000
528,000
506,000
2,529,000
2,397,000
2,189,000
3,421
3,494
3,820
than farm
—
and foods
—
119.5
.,
119.3
118.8
119.5
88.4
86.6
85.0
91.9
105.8
"ia"'
—
other
:§Includes
106.1
Jan. 26
91.7
92.5
Jan. 26
128.6
128.7
100.8
109.0
88.9
102.8
128.5 -
127.4
-
barrels of foreign crufe runs.
IJBased on new annual capacity of 148,570,970 tons
1959 basis of 147,633,670 tons.
(Number of orders not reported since introduction of
Zinc sold on delivered basis at centers where freight from East St, Louis exceeds
929,000
against Jan. 1,
Plan.
tPrime Western
-
357,000
1,159,000'
FORECLOSURES-
THE
UNITED
STATES
OF
*$386.9
$390.7
..
.
;
68.8
Net
10.3
9.4
*35.1
33.4
*11.4
14.2
,
35.1
:___
;
•
12.0
12.0
.
■i
35.6
44.4
11.9
13.5
for
social
10.8
23.5
21.0
27.7
1
13.7
23.8
;_
...
income
*28.0
26.3
in¬
*
8.4
7.1
374.2
*371.5
348.8
$67,091,965
$45,780,612
$114,836,477
23,031,569
23,937,883
90,123,534
69,718,495
4,434,148
4,506,930
85,689,386
65,211,565
133,039,704
54,365,632
34,016,954
101.102,290
8.5
income
ITEMS
operating
income
OF
U.
S.
CLASS
I
Commission)—
income
:
___■
deductions
available
after
for
fixed
from
fixed
income.
charges
charges
4
deductions
;
22,643,782'
137,480,259
4,440,555.
4,327,992
income
96,850,921
51,466,906
50,145,493
14,552,931
48,193,882
18,539,438
19,797,051
21,085,435
1,536,574
taxes
4,251,369
29,347,035
51,638,207
20.857.641
(way & structure & equipment)
4,669,919
50.037.640
income
841,903
1,356,424
2.74
2.09
4.17
appropriations:
On
preferred
of
S.
•
stock
to
MARKET
AND
4
fixed
charges
GUARANTEED
sales
purchases
•Revised figure.
u
TRANSACTIONS
A.—Month
Net
Net
*
stock
income
TREASURY
U.
*38.3
,
October:
of
common
OF
64.7'
*46.7
■_
On
Ratio
80.6
47.1
—
contribution
INCOME
Dividend
102.2
*68.6
.
38.5
income
Income
247.0
,,
*84.2"
86.6
professional
—
railway
Income
*107.5
10.3
RYS., (Interstate Commerce
Other
*261.1
*
L
nonagricultural
Total
'
-
*
income
employes'
Month
$366.9
*
264.2
109.9
surance
Federal
pound;
299,112,339
105,422,055
payments
RECT
as
307,707,698
bonds
balances-
:_
and
Depreciation
oc
:
Monthly Investment
shares
ESTATE
IN
146,000
974,000
credit
_
_
commodities
18,880,310
<
783,230
21,003,020
21,786,250
*
—
foods—
$3,427,000
165,000
.
997,000
free
listed
interest
Other
Jan.
:
$3,438,000
372,000
Rental income of persons
Net
Jan.
commodities.Farm products—:
$3,427,000
150,000
,
sales
All
149
375,000
industries
labor
Total
-
.
Commodity Group—
!
REAL
Miscellaneous
—
i_
banks in U. S
.
sales—
WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 100):
•
value
Transfer
936,740
Other sales
Total sales
Short
customers
oi
Less
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
Total
customers
of listed
SELECTED
^J.
Round-lot purchases by dealers—Number of shares
■
margin
accountsbalances.
debit
net
to
Personal
494,960
^an-
(SHARES):
151
'157
"
$101,409,733
396,400
-Jan.
MEMBERS
carrying
Dividends
8,707
Jan-
OF
'156
162
12.5
-
1,965,142
8
'
FOR ACCOUNT
of
Business
2,456,705
$131,390,700
Jan-
:——:
sales
165
Dec;:
of
prpduc(ng industries—
i.v Manufacturing only
Distributing industries
'
2,569,740
Round-lot sales by dealers—
Other
8,989,000
6,760,000
omitted):
hand and in
on
Other
Jan.
sales
15,749,000
*9,282,000
*6,964,000
Commodity
t
Jan-
sales
Number of shares—Total
Short sales
*16,246,000
9,499,000
Government
Jan-
other sales.
firms
extended
,
^an- 8
8
value
Customers'
(000's
customers'
Service
STOCK
shares
short
160.4
6,899,000
;
COMMERCE)—Month
of December (in billions):
Total personal income
Wage and salary receipts, total
,
4,263,360
* V
-
Customers'
31
(DEPARTMENT
EXCHANGE — SECURITIES EXCHANGE COMMISSION
Odd-lot sales, by dealers (customers' purchases)—t
Number
96.5
*166.4
EXCHANGE—
PERSONAL INCOME
666,190
.
Jan.
STOCK TRANSACTIONS -FOR ODD-LOT ACCOUNT OF ODDLOT
*99.0
FEDERAL
SAVINGS
AND
LOAN
INSUR¬
ANCE CORPORATION—Month of
Sept
4,476,910
4,147,735
,Total
STOCK
Dec.
NONFARM
1,166,760
3,119,815
5,190,000
100.1
.
Jan.
->—
706,043
4,076,119
of members—
6,740.000
''
1
100)—
=
.'
goods
Market
893,850
86,660
8
-
♦5,349,000
16,398,000
Average
Member borrowings on U. S. Govt. issuesMember borrowings on other collateral
581,910
Jan.
for account
of
Total
43,000
538,910
_.
purchases
Short
8
11,930,000
*6,896,000
,
173.1
(1947-49
goods
YORK
Cash
549,150
25,600
.
transactions
-
-
„
sales
sales
Total round-lot
1
446,310
14.810
Jan.
sales
Total
331,530
51,450
133.660
the
on
purchases
Other
«(*.
416,220
8
Jan.
Short
Total
8
Jan.
sales
*12,245,000
7,105,000
j
100)—:
=
-
Market value
Jan.
Avg.
manufacturing
Credit
3,180,880
Jan.
initiated
indexes
Total
.
sales
12,387,000
"
manufacturing
Member
3,033,910
485,450
2,695,430
•
transactions
Total
408,750
2,804,110
*
initiated
purchases
Short sales
Other
2,781,990
220,810
8
Total
Other
2,070,460
(1947-49
—
.,
2,807,240
—Jan.
Other transactions
133
of
5,282,000
SYSTEM
1947-49=100—Month
Seasonally adjusted
Unadjusted
As
442,530
sales
SERIES—Month
INDUSTRIAL PRODUCTION—BOARD OF GOV;
ERNORS
OF
THE
FEDERAL
RESERVE
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Other
235
*133
DEPT.
-
goods
indexes
Nondurable
NEW
8
239
*170
138
of employees in manufac¬
turing industries—
382.8
-Jan.
REVISED
S.
*160
245
Estimated number
4.30
2
MEM¬
Total purchases
PAYROLLS—U.
'_
manufacturing
Payroll
5.09
4.93
111.63
YORK—1947-49
December:
goods
Employment
4.90
2
4.73
of
FEDERAL
manufacturing (production workers)
5.32
2
•
NEW
FED-
December:
4.62
.
SECOND
DISTRICT
OF
AND
4.91
2
SALES
RESERVE
4.47
Jan. 29
ACCOUNT
11,339,760
378.1
_
(average monthly), unadjusted...
Sales (average daily),
unadjusted
;_.
Sales (average
daily,), seasonally adjusted
p-
.
14,355,570
COMMERCE):
9,453,000
STORE
4.92
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE—i00__
COMMERCE):
OF
17,616,000
4.29
Jan. 23
1
(DEPT.
452.6
4.60
Jan. 23
period
OF
bales)
403.2
4.92
.
Jan. 23
.
(DEPT.
105,759
858,468
17,616,000
20,681,000
Durable
:
108,074
557,933
17,696,000
.
9,051,000
2
Jan.23
194!)
130,805
720,243
17,696,000
2
Feb.
of
1,545,454
12,795,771
348,330
Average=100—Month
NATIONAL PAPERBOARD ASSOCIATION:
end
725,482
1,263,565
14,235,545
17,709,000
Sales
91.62
Feb.
*
INDEX
at
2—
20,317,000
RESERVE
83.53
81.17
Feb.
—:
(tons)
799,935
1,572,679
13,690,607
_
17,709,000
ERAL
.
89.64
Feb.
__
Unfilled orders
$840,000
10,157,000
DEPARTMENT
92.20
83.03
'
2
Feb.
—
$784,000
OF
20,111,000
Feb.
(tons)
$627,000
YORK—
i__l
_L
Feb.
Percentage of activity
NEW
of Jan. 2__—
as
(running
SPINNING
Feb.
Production
OF
omitted)
Active
93.67
83.28
2
Feb.
GINNING
To Jan. 16
Feb.
:.
Aaa
Group
300,615
spindle hours (000's omitted) Jan. 2__
Active spindle hrs. for
spindles in place Dec.
85.61
2
Feb.
"
79.81
Feb.
Group
Industrials Group
COMMODITY
BANK
(000's
AND
.Spinning spindles in place on Jan.2.4
Spinning spindles active on Jan. 2_____
-
87.32
83.28
2
81.13
Feb.*
Group
Utilities
Industrials
654,957
231,000
OUTSTANDING—FED¬
'
2
Feb.
MOODY'S
955,572
490,000
4___4
PAPER
RESERVE
COTTON
AVERAGES:
Group
635,529
721,000
v
month of December
In consuming establishments
as of Jan
In public storage as of Jan. 2
99.875c
Feb.
Group
$1,641,101
869,000
•
;
municipal
Dec.
of
COTTON
24.700c
100.375c
Feb.
Utilities
L,590,00B
670,000
'
of
_J_
;
...
•
11.500c
26.000c
Jan.27
at
Feb.
Railroad
$1,265,000
k
EN¬
—
Month
—
f
.
11.800c
Jan. 27
.
Public
$2,139,000
OF
__
Cotton spindles active
12.000c
11.800c
Feb.
Average corporate
$383,000
16,467
BY
Consumed
v
28.600c
12.000c
11.800c
Feb.
Public
$2,385,300
THE
LINTERS—DEPARTMENT
COMMERCE—RUNNING BALES:
$66.41
$41.83
Jan.27
DAILY
16,512
176,000
CONSTRUCTION
construction
and
COTTON
6.196c
$66.41
Jan.27
Average corporate
Railroad
S.
As
322
Jan.27
at
S. Government Bonds
Baa
226
$66.41
Jan.27
PRICES
13,015
419,000
IN
Stocks Jan. 2
at
BOND
3,590,000
$57,069,000
Linters—Consumed month of December.
Zinc
MOODY'S
302
$42.50
Jan.27
(East St. Louis) at_
:
Aluminum (primary pig. 99.5% )
Straits tin (New York) at
3,027,000
$53,214,000
.
construction
ERAL
.
York) .at
Louis)
(delivered)
3,072,000
$59,556,000
■
_r_
NEWS-RECORD
construction
State
13,151,000
QUOTATIONS):
copper—
refinery at
refinery at
(New
Lead
fZinc
281
Jan.26
M.
13,565,000
.
Domestic
Export
14,523,000
Jan.26
ton)
10,058,000
BRADSTREET,
105
Jan. 26
ton)
&
14,313,000
Jan.28
PRICES:
gross
246
12,136,000
595,000
'>
(NEW)
&
Federal
'
&
'
Scrap steel
.
U.
Public
442,000
COMMERCIAL
lb.)
(per
120
10.613,000
14,397,000
10,453,000
..
BRADSTREET, INC.—__J
IRON
113
5,541,000
15,244,000
January (000's omitted):
;
.
,
kwh.)
(COMMERCIAL
_
$18,411,000
:
I——_
STATES—DUN
ENGINEERING
Private
8,005,000
•
..4
—
Total
Bituminous
DEPARTMENT STORE
$17,266,000
8,766,000
liabilities.—.—,
—
INCORPORATIONS
GINEERING
MINES):
coal and lignite (tons)
Pennsylvania anthracite (tons)
4L—
DIVIDENDS—PUBLICLY REPORTED
S, CORPORATIONS
U. S. DEPT.
CIVIL
125,952,000
88
13,443,000
COMMERCE—Month of Dec. (000's omitted )
186,810,000
,
•
1,082
1
._
.
'
U.
176
105
$23,822,000
______
;
__
service
UNITED
-
■
1,130
'
INC.—Month of December
$418,223,000
231,413,000
88,700,000
;
liabilities
liabilities
BUSINESS
186
89
<
555,750
554,377
185
118
515
1,080
i'
Total
195
124
520
163
;
liabilities 'J
Commercial
'
119
478
,
.
liabilities
Construction
59,924,000
23
231
a—*.
Wholesale liabilities
100,402,000
50,451,000 "
23
——;___—Jan. 28
—■—■
S.
7,779,000
192,883,000
21,388,000
Jan. 28
—
municipal
(U.
6,951,000
184,045,000
27,080,000.
Jan. 28
—
—
OUTPUT
15,009,000
7,127,000
Ago
number
number
Total number
CASH
Public construction...
and
13,206,000
196,514,000
Jan. 28
construction
State
*13,667,000
Year
Month
BRADSTREET,
Construction number
Commercial service number
ENGINEERING
construction.,
Federal
•2,465,000
Previous
Retail number
a
cars]—Jan.
of
8,311,000
28,101,000
2,756,000
> '
jan
(no.
8,266,000
29,398,000
22
Jan
cars)
NEWS-RECORD:
U.. S.
*
8,302,000
29,084,000
2,724,000
6,596,000
22
IIII Jan!
^
7,193,535
22
jan
"jan'o2
RAILROADS:
7,108,875
FAILURES—DUN &
INC.—Month of December:
2,288,000
199,905,000
finest
.___
2,715,000
.
of that date:
are as
Month
Manufacturing
Jan.22
!j,
s
Revenue
COAL
7,146,410
Jan.22
Revenue
.vV
7,190,150
11-8,227,000
either for the
are
Latest
80.
Wholesale
1
(bbls.) at_
:
Residual fuel oil (bbls..) at«-^»*«-_
Total
; *2,717,000
of quotations,
cases
Ago
95.3
of
■ r,
,
(bbls.):
(bbls.)—.
output
Kerosene
CIVIL
§2,687,000
Jan. 22
Stocks at refineries, bulk terminals, in
transit, in pipe
Finished and unfinished gasoline
(bbls.) at___.
.
6
Jan.22
(bbls.
-
to
runs
in
or,
Year
Ago
"95.4
Jan.22
condensate output—daily
average
each)
;
^
stills—daily average (bbls.)
output
(bbls.)___—
and
gallons
,
Dates shown in first column
that date,
on
production and other figures fof the
cover;
BUSINESS
PETROLEUM INSTITUTE:
oil
Crude
Crude
.
month available.
Month
Week
194.3
or
month ended
"
6
Feb.
or
Previous
Week
Feb.
following statistical tabulations
week
Latest
IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity) J.
Equivalent to—
t\
Steel ingots and castings (net tons)_____
AMERICAN
AMERICAN
The
latest week
41
of
i■
IN DI¬
SECURITIES
November:
!
$113,103,000
$71,596,000
$43,633,500
..
jk-Ii
<S.''»,;»j.y»mr.'(«-T'rt-r7 v
ISwtf (•'■WtW: ffio MS**
V>'
!
42
The Commercial and Financial Chronicle
(598)
.
.
.
Thursday, February 4, 1960
II
nvit
»*
virtually all of the addi¬
tional
disposable
income
since
1956—$40 billion—has gone into
consumer markets, and as a result
there has been a reduction in the
A
T;i
11
rft!
ti
•
*
7 i'
•!
that
is
■'
<tc.-
percent of consumer income that
has been placed in savings in its
various forms. In only two years
of the past
decade—1950 and 1955
—was the rate of personal saving
lower than in 1959.
In both of
those earJier periods, special in¬
fluences were operating to push
up spending relative to
current
the
income:
of
start
the
Korean
in
conflict
1950, and the excep¬
tionally high volume of new car
'! I'
which
purchases
with
associated
was
look"
"new
the
and
rapid
liberalization of instalment credit
terms in 1955.
!$;•
I;':
;
•
•
The
of the
fices
f I
7
f
\ ity
i
I {!>" r
!
4 <
-
.
Busi¬
Of¬
Field
Department of Com¬
the Superintend¬
Documents, U. S. Govern¬
ment Printing
Office, Washington
25, D. C., at an annual subscrip¬
tion price of $4, including weekly
supplements; single copy 30 cents.
1 HP
Bank Clearings
I:!''
?
1959 Week
.'.I
Bank
■'■-.-.if
show
a
j
{
?1 I
this week will
compared with
clearings
increase
an
Preliminary
ago.
year
-
in current announcements of new
figures
controls
major
computer
going
into
mills.
These-include strip mills in the
are
Pittsburgh
Detroit
and
areas;
Midwest and
South; a sintering line in Ohio;
an
annealing line in Pittsburgh;
and a utility system in an eastern
mills
plate
in
the
mill.
sible
y,|
■
))
1
obtain
to
will
be
2.3%
weekly
general market conditions,
"The Iron Age" says that the mar¬
ket remains tight for most prod¬
ucts and no real easing is in sight
•
Our
$25,278,193,141
against
910,649 for the same
1959.
loss
,1
At
this
the
for
$24,701,wfeek
there
center
in
is
a
week
ending Friday
of 0.8%. Our comparative sum¬
mary for the leading money cen¬
ters during past week follows:
Week End.
000 omitted
,
1960
Jan. 30—
New
7
1959
York —$13,173,594
Chicago
%
$13,277,801
%
—
0.8
1,262,563'
1,193,389
1,110,000
1,070,000
+
3.7
759,927
Philadelphia
Boston
699,705
+
3.9
____
+
„
5.8
Complete details of the bank
clearings throughout: the nation
appear on page 45 of our Monday,
Feb.
1, edition.
But the frantic
heavy
some
Steel
Union
Com¬
Following
Settlement, Persists at Top Levels
The
Ak/'
*'
*
i-
«».
>
!■
•.
*
?
vt)
..
'
*
f-j-i
*
industry's
drive
to
steels
on
regional
a
basis, and warehouse steel except
Sheets and other products
used
by the auto industry con¬
tinue in strongest demand.
Although there are conflicting
from
industry
sources,
"The Iron Age" says it has not un¬
covered any evidence of extensive
buildup
of steel
stocks among
major users.
It estimates
that
probably 10% of steel shipments
is going into inventory buildup.
January
Steelmakers will have to return
hard selling
to
capacity'operations through the
quarter, "Steel" said.
The metalworking weekly re¬
ported that steel users are rapidly
plugging the gaps in their inven¬
tories and the frantic pressure for
deliveries
'{
<
few, there is
to push back orders.
high
are
demand
for
is
steel
•.
still
and is expected to continue
firm, many users are guarding
against overstocking. They figure
that
with
capacity
demands
adequate
and
with
to
labor
assured, overstocking would
expensive
and
possibly
dan¬
gerous.
More
than
66%
of
the respon¬
•
to "Steel's" quarterly sur¬
of metal buyers report ferrous
reserves sufficient to last 30 days
vey
or
The improvement: More
more.
than triple the percentage in that
category
in the last inventory
analysis (Nov. 2). But stocks are
is the extension of computer con¬
trols to a wide range of steel-
despite
tory in the 60 day and
7t;
This
means
target of the
counteract
well
as
recent
l|»
;
)'
that
the
principal
programs will be to
climbing labor costs,
improve quality.
The
as
settlement
is
estimated
to
add 3.5% a year to
steelmaking
labor costs compared with the an¬
nual rate of
productivity gain of
2.5%.
;p
the
•f{
cate
magazine
(
! vfc
1
comments
improvement
that
there
agreement"
<|S-
programs
was
-
between
that
indi¬
"secret
no
the
steel
companies and the United Steelworkers
give
in
work
that
quietly
practices
the
on
in
union
would
controversial
the
historical
2-B contract clause.
"The Iron Age" says that bitter¬
ness between the
companies and
the union
following
the settle¬
ment persists at the
top levels. Any
major gains in eliminating waste¬
ful
if
work
practices
are
still
the wishful thinking
stage.
in
,
Biggest
ground
for
hope
of
cooperation is found in
attitudes of the production
worker
the
chiefly in the 10 to 60 day groups
a surprisingly high inven¬
workers and
rank-and-file union
annual
an
tons compared with
tons,
thus
number
turning
of
of
rate
tons
1,953,019
out
for
record
a
the
third
tion
this Week
207.886
Expected to Total
Units
Comparing
206.919 Last Week
last
week
poured
about 2,721,000 ingot tons, making
January the first 12 million ton
month
in
record:
history.
The previous
December's
11.9
million
tons. Last week's operations were
at 95.5% of capacity.
composite on No. 1
heavy melting grade ^f scrap held
last week at $42.33 a gross
ton,
after
rising
for
two
straight
weeks.
General
signed
Motors
Corp.
hot metal contract
a
and
With
144.616
U.
S.
auto
smashing
industry
will
"Ward's" added that truck pro¬
also would reach an all-
duction
time
January high of about 122,units, and would represent the
finest monthly output since
May
500
1955 when
of
129,969 trucks
were
27%
over
January a year ago
(545,757) and is a full 92% of the
record high of 749,061
units as¬
sembled in November of 1955.
full
new
has
industry ended the first
week of January with
163,249
assemblies and since then
built up toward record
car
pro¬
portions,
"Ward's"
said.
week's output amounted to
060
and
cars
Last
175,-
represented
the
The
that
and
Aluminum Co. of America to sup¬
ply
the
Fabricast
plant
of
its
Central Foundry Div., at Bedford,
Ind., with molten aluminum, the
metalworking
The
weekly
reported.
plant makes alu¬
Fabricast
minum
brake
aluminum
drums
for
been responsible for the
high-out¬
put weeks this month. Most Ford
and
GM's
housings, and
new
trucking
miles
million
Ind.
Chevrolet plants
ning
a
dozen
works
at
Kenosha,
Wis.
All
Chrysler Corp. plants and Studebaker-Packard are continuing on
five-day
the
molten
from
smelter
calls
aluminum
Alcoa's
near
for
new
$80
Evansville,
Aluminum industry sources
programs.
"Ward's"
and
car
week
886
said
Over
was
206,919
and
cars
combined
production
expected
This
to
207,with
compares
and trucks last week
587,339
Output
Based
94.3% of Capacity
on
American
Institute
Iron
announced
and
that
This
the
week
Shipments 4.4% Below
Production for Week Ended
•,
Jan.
.
23
Steel
the
the
week
4.4%. be¬
beans
down
week
were
of
orders
new
op¬
steel
Un¬
filled
orders
of
reporting mills
amounted to 38% of gross stocks.
For reporting softwood mills, un¬
filled orders were equivalent to
19 days' production at the current
rate, and gross stocks were equiv¬
alent to 48 days' production.
below
orders
were
10.3%
Compared
with
new
below produc¬
the
previous
1960, produc¬
tion of reporting mills was 0.1%
below; shipments were 2.4%
above;
new
orders
were
0.4%
week ended Jan. 16,
above.
Compared
with
the
cor¬
responding week in 1959, produc¬
of reporting mills was 0.2%
below; shipments were 0.9% be¬
low; and new orders were 15.1%
tion
below.
Business Failures Decline
with the actual levels of
and
2,717,000 in the week
beginning Jan. 25.
Actual output for the week be¬
95.4%
of
the
25,
equal
utilization
of
to
the
1, 1960 annual capacity of
148,570,970 net tons.
Estimated
percentage for this week's fore¬
cast, based on that capacity, is
94.3%.
Ended
Jan.
28
fell to 281 in the week ended
ures
week, reported Dun & Bradstreet,
Inc.
Casualties were considerably
below
the
322
occurring a year
Also, the
ago
and the 326 in 1958.
toll
was
down 28%
the operating rate
on
1947-49 weekly produc¬
was
*169.0% and production
2,715,000 tons.
A year ago the ac¬
tual weekly production was placed
2,288,000 tons,
♦Index
or
142.4%.
of production is based on
weekly production for 1947-49.
were
Although
purchases
flour
of
scattered, prices were
slightly higher during the week.
In the coming week Ceylon is ex¬
pected to buy 18,000 tons of flour.
Both
the
domestic
and
export
buying of flour picked up during
the week
and
supplies in some
markets
were
matched
limited; rice prices
those
While
of
week
a
transactions
earlier.
in
sugar
slow, prices
edged
frac¬
tionally higher. Trading in coffee
slackened noticeably at the end
of the week, but prices remained
steady. There was a moderate de¬
cline
in
prices, due to the
cocoa
fact that Brazil and African
producers
failed
agreement
to
cocoa
reach
an
price support policy.
In contrast, volume was appreci¬
ably higher.
on
Hog prices fell moderately this
week
trading dipped at the end
as
Hog receipts in Chi¬
earlier. With salable
Jan. 28 from 302 in the preceding
from the pre¬
receipts down
appreciably, transactions in steers
dipped and... prices were moder¬
lower;
ately
Trading in lambs
slightly
and
prices
fractionally exceeded those of the
prior week. Following the trend
in hog prices, prices on lard fell
moved
up
somewhat.
$5,000 or more declined moder¬
ately to 250 from 261 in the pre¬
Reflecting mainly replacement
buying, prices on the New York
Cotton
Exchange
moved
up
slightly during the week. United
States exports
of cotton in the
vious week
week,
level of 385 in the comparable
week of 1939.
Failures
with
and
liabilities
last
264
of
ended
casualties, those involving
under
$5,000 which
dipped to 31 from 41 a week ear¬
last Tuesday
came
247,000 bales, compared
228,000 a week earlier and
54,000 in
the
comparable
1959
week.
For
the
season
through
Jan.
decrease
of
also
and
last
A
year.
occurred
58
in
among
the
similar
Thirty-five
year.
failing
businesses
had
Most
of
the
week's
concentrated
in
week
of
the
liabilities
$100,000—the
preceding week.
the
same
as
the
exports
totaled
about
bales,
compared
with
1,401,000 in the similar period last
23,
2,682,000
season.
aver¬
*
"
Wholesale
trade
Shows
There
152.
down
about
with
downturn
retail
dropped to 132
Slight dips prevailed
wholesaling, down to 21 from
24, and in commercial services,
from
to
Food
Price
Noticeable
Index
Increase
casualties
in
to
from
22
toll
25.
In
contrast,
manufacturers
among
was
a
noticeable rise this
week in the Wholesale Food Price
Index, compiled by Dun & Brad¬
street, Inc.
This was the third
consecutive increase. On Jan. 26 it
55 from 51 and among
construction
contractors
to
51
stood
at
week
earlier
from 50.
low the $6.20 of the
edged
up to
More manufacturers
cumbed than
below
ran
lines.
a
suc¬
ago, but tolls
levels in other
year
1959
Five
regions
casualties
cline
date
a
than
The
reported
in
most
fewer
the
previous
noticeable de¬
took
year ago.
in
,
wholesale
cost
this
were
flour, wheat, barley,
lard,
cocoa,
eggs
and
bellies,
steers.
rye,
up 1.7% from the
$5.80, but 4.8% be¬
corresponding
$5.90,
Higher
week
'
week.
_
(based
prices
up,
fractionally.
.
was
Jan.
A month ago
picked
Al¬
soy¬
cago were below those of a week
for
Commercial and industrial fail¬
was
Jan.
were
purchases slipped;
export interest in :
of the week.
Week
a
supplies of
limited
and
were
production;
tion.
where
ginning
from
,
Salable
were
year-to-date, shipments
reporting identical mills were
7.0%
prices
j
sluggish, but
was
For the
beginning
1, 1960, equivalent to 2,687,castings
(based on average weekly pro¬
duction of 1947-49). These
figures
age
mills
these
7.8% below production.
were
000 tons of ingot and steel
169.1%
domestic
during the week
ended Jan. 23, 1960.
In the same
Barometer
production
corn
unchanged
were
earlier.
Trade
Feb.
compare
prices
though
low
rye
andf^rans-
offerings light
steady,'
in
matched those of the prior week.
soybeans
of 467 mills
in excess of
capacity for
With
actions
reporting to the National Lumber
in
of
dip
trading lagged.
as
from
There
appreciable
an
was
prices
some¬
wheat
declined.
also
mills
week
...
shipments
in wheat
down
were
■
Lumber
.V.
for
Trading in oats
will
*167.3%
flour
Jan.
of
prices
Orders
what.
1958.
in
corresponding
..
buying
export
ened and
5.7% above the cor¬
responding week in 1959 and an
increase
of
36,251 cars or 6.6%
above the corresponding week in
23, were 18,418 cars or 3.0% below
the preceding week.
>
picked
up , slightly
during the
week, domestic purchases slack¬
increase of
was an
the
on
year ago.,
a
While
cars or
erating rate of the steel companies
average
date
the Association
cars,
274.84
and
small
Steel
pared with 274.10 a week earlier
freight for
23, 1960, to¬
liabilities
Week's
Bradstreet, Inc., stood at! 273.65
(1930-32
100) on Feb. 1, com¬
.
revenue
ended Jan.
on some
lier
same
week last year.
at
•
of American Railroads announced
this
total
144,616 units during the
This
;
Week
1959
Loading of
Lumber
i
grains, lard, hogs, and steers, the
general
commodity, price
level
dipped slightly in the latest yveek.
The Daily Wholesale Commodity
Price Index, compiled by Dun &
Carloadings Show 5.7% Gain
taled
a
one
Dips Sligrhtly
a
kwh., or
comparable 1959 week.
the week
toll.
same
Reflecting lower prices
of-14,523,000,000 kwh.
gain of 1,162,000,000
8.8% above that of the
but showed
v.
1959 and
Wholesale Commodity Price Index
week's total
war
that
truck
units.
tion)
contract
plan¬
were
Saturday
operations
this
together with the Rambler
week
Buick,
other parts.
100
reporting agency explained
heavy
overtime
schedules
six-day work programs have
had the
light
Saturday, Jan. 30, was esti¬
at
313,000,000 kwh., ac¬
cording to the Edison Electric In¬
stitute.
Output was 210,000,000
kwh. below that of the previous
of
The
electric
the
heavier toll than in
energy
mated
previous
January
achieving the highest
monthly total since November of
1955,
"Ward's Automotive Re¬
ports" said.
electric
ended
all
records and
by
mortality than last
year—only one region suffered
industry for the week
power
Loadings
have produced an estimated 691,400
passenger
cars
in
January,
has
with
and
lower business
8.8% Above
Week
of
amount
distributed
Units in 1959 Week
The
The
Steelmakers
The
recently.
year.
Combined Car and Truck Produc¬
cate¬
over
1959
31,589
gories.
"Steel's"
The
lion
dents
making operations.
\
at
1,957,595 tons and will be operat¬
ing at a rate of at least 2.1 million
tons by June; The year's output
is expected to hit around 2.15 mil¬
a
capacity is considered adequate.
A significant part of the trend
M
i.
that
started
cancellations
be
metalworking
weekly
observes
that spending
programs
are
approaching
the
record of $1.75 billion set in 1955.
history,
highest volume to date for the in¬
operations
under
the
Taft-Hartley injunc¬ dustry since Dec. 9, 1955, when
tion, these heavy products are 178,049 cars were built. "Ward's"
said
this week's turnout is ex¬
rapidly opening up. March order
books are pretty well loaded, but pected to exceed that of last week
April entries are spotty. Although by at least 300 units.
steel workers
peace
Age"
This second major spending spree
comes at a time when steelmaking
'ti!"
is
subsiding.
Take plates and structurals, for
example. In strong demand when
record
Iron
to maintain near-
second
its capital spending plans to near-
"The
in
best
The publication es¬
the industry is now
This month's passenger car pro¬
duction represents an increase of
Steady
meet
levels,
the
be
completed.
Steel Output Breaks
Monthly Record; Scrap Holds
lower production costs is pushing
reports.
The national
-;!
»
steel
will
operating
quality has gone
pipe, stainless,
sheets.
tendency
Between
panies and
of about 25,000 tons,
going to the GM plant.
Availability of aluminum this
year
out of demand for
While
Bitterness
capacity
most of it
until well into the second quarter.
the
of
week
last
year.
preliminary totals stand at
corresponding
a"
straight
clearings
those
above
capacity of the Evans¬
plant will be 150,000 tons,
although only a single potline will
go into operation this spring with
On
United States for which it is pos¬
VI
Eventual
Output
can
ville
timates
nine
least
which
to
up
mills.
At
trucks
8 hours. Esti¬
hauling time is 4 hours.
it hot
mated
"Steel" said.
Saturday, Jan.
30, clearings for all cities of the
.
tank
computer controls going into steel
for the week ended
'tM
crucible
never
better,
reports
compiled by us based upon tele¬
graphic advices from the chief
cities of the country, indicate that
■!
|
Up 2.3% Above
has
level
the magazine says.
This may lead the way to improv¬
ing efficiency in individual plants
and companies.
"The Iron Age" reports that the
capital spending trend is reflected
from
or
of
ent
from
available
merce
II'
7)1 (•
Current
of
Survey
is
ness
mill
the
at
ers
been
Electric
Alcoa will ship the metal in
say
keep
the work¬
of
Attitude
members.
4
Continued from page
31
:
STATEOFTRADEAND INDUSTRY
On
beef,
the
..down
sugar,
side
were
milk, raisins and
place in the Middle
Atlantic States, off to 94 from 122.
hogs.
The
Wholesale Food Price Index rep¬
toll
States
in
held
the
South
steady
at
Atlantic
23,
while
increases lifted Pacific failures to
56 from 51, East North Central to
55 from 44, and New
England to
17
from
13.
Most
regions
had
The
f
Dun
resents the
&
sum
Bradstreet,
total of the
Inc.
price
pound of 31 raw foodstuffs
and;meat in general use. It is not
per
a
cost-of-living index.
function
is
to
show
'
the
Its
chief
general
(
:: $
Number 5922
191
Volume
.
The Commercial and Financial Chronicle
.
.
(599)
43
1
'
*.
x.
*
„
*
I"'2
trend of
r
cloths
sale
\
cloths
food prices at the whole¬
level.
offset
cotton
Consumer Buying Appreciably
Over Year Ago
ft
weather stim¬
ulated consumer buying this week
and over-all retail trade was up
aporeciably over the comparable
year
ago
week, when snowy
weather in many areas discour¬
aged shopping. Aided by contin¬
ued
clearance sales promotions,
best-sellers were women's Winter
H
i
woolens and worsteds and interest
in
carpet wool was
moderately
higher. Incoming orders at dye¬
ing and finishing plants in New
England moved up appreciably,
and further
earlier.
sale
'Wednesday was 3% to 7% higher
•'than
collected
•;
Dun
.
Regional
Inc.
Bradstreet,
<
by
&
Co.,
300
members
North
of
Fourth
the
Midwest Stock
New
York
and
Mountain
+1
South Central, and Pacific Coast 0 to +4.
Women shoppers were primar¬
Central, West
South
1
f--
tf 'i
cloth
in
interested
ily
from
East
+5;
to
<
Joins Merrill
Lynch
Paperboard
"
coats,
earlier
&**
creases
addition moderate
In
curred.
!c
10%.
Maine
and
was
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Wind is
with Merrill Lynch, Pierce,
Fenner & Smith
PORTLAND, Me.—Carl M. Lake
is
was
last
over
a
Atherton
and
There
.
With
of
chandise
in
apparel moderately
some
year
was
up
year-to-year
ceeded that of last year,,
the
with in¬
primarily on topsuits; substantial gains
and
but purchases of furnish¬
ings and hats were sluggish.
by
stered
chairs
■boosting
over
noticeably
the
and
call
last
over
year.
television
is
Chiles-Schutz
with
now
A
Com¬
radios
was
dracki is
Walter
—
with J.
now
and Company,
While
and
Jan.
For
23
the
sales
at
retail
this
in
IfV
.
furnishings
.
remained
levels this week and
stantially
tendance
over
New
York
moderate
,
in
At¬
L.
the
outdoor
Jan. 22.
on
.
share,
ceeds
are
struction
was
all
sold
women's
both
for
Spring
vup1 this'; week
men's
con¬
1
higher than
\
a
moved
slightly
Best-sell-
year ago.
ers in lien's, clothing were sports¬
wear, beachwear, dress shirts and
^
lightweight suits. Buyers'of wom;
-en's;;apparel
ested
i
wear
New
were
Jn.Spring
and
most
dresses,
coats.
—
(Special to The Financial Chronicle) '
and
sports jackets.
With R. J. Steichen
-
,{•
'
:
during
trading in synthetic
fabrics, following several weeks
of
sluggish:;, activity.
Increased
transactions
in
drills
and
broad¬
Stock, payable
I960,
on
has
to
declared
Cash Dividend
on
28,
February 11, 1960.
to
on
close
of
8,
January
dividend
March
stockholders
the
the
a
This
1960.
ruary
Treasurer
JERSEY)
Directors
the capital stock of
on
payable
not close.
JAMESON
C.
of
55 cents per share on
stockholders
to
NEW
Board
of
10,
business
is
I960,
record
on
at
Feb¬
1960.
30 Rockefeller Plaza, New York 20, N.Y.
Street, members of the
York
and
Cincinnati
Stock
Exchanges.
UNION
Wainwright
CLEVELAND, Ohio
Rouault has joined
H.
—
CARBIDE
Robert E.
the
C.
Wainwright &
Commerce Building.
staff
Co.,
of
Union
Board
Directors
of
1960 to shareholders of record
1960.
(Special to The Financial Chronicle)
Stevenson
is
Ohio—Benjamin
with
now
for
$1.50 per share on PRE¬
STOCK, payable April 20,
April 6,
FERRED
COLUMBUS,
declared
has
quarter ending March 31, 1960 DIVI¬
DEND of ONE and ONE-HALF (U/2%)
PER CENT or
With Merrill Lynch
a DIVIDEND of $.45 per
COMMON
STOCK, payable
1, 1960 to shareholders of rec¬
ord February 9, 1960.
Also declared
S.
Merrill
Lynch, Pierce, Fenner & Smith
Incorporated, 48 East Gay Street.
share
on
March
is
now
Steichen
&
affiliated with
Company,
<7
Joins
KANSAS
White
with
III
Stern
Baltimore
has
Brothers
C.
way,
Langley & Co., 115 Broad¬
New York City, members of
New
York
Jr.,
has
the
firm
Stock
that
Avenue,
become
in
Exchange,
Forgan,
the
associated
The Board of Directors of
Line
of Building Products in America
Manufacturer of the Broadest
with
THE FLINTKOTE COMPANY
New York 20, N.
Buying Depart¬
have been declared as
Clement E.
—
ments, 2120 South Ash Street.
of Robert
E.
Mauck
follows:
Business
45
share
cents per
$4 Cumulative Preferred Stock
$1
Invest¬
per
share
has
today declared a quarterly
cash dividend of $.75 per
share, payable March 10,
1960,
to stockholders
record at
Common Stock*
ness on
of
the_close of busi¬
February 10,1960.
C. V. BOULTON,
Treasurer
$4.50 Series A Convertible Second
Preferred Stock
$1.12V£
These dividends
Investment
formed
of
Y.
quarterly dividends
Robt. Mauck Adds
International
Machines Corporation
ment.
WASHINGTON, D. C.
members
the Midwest Stock Exchange.
QUARTERLY DIVIDEND
Russell
staff
1009
CORPORATION
IBM
Baker
Co.,
CARBIDE
1960
Officers Inv. Plan
&
Secretary and Treasurer
Secretary
Pittsburgh, January 28,
FlINTKOTE
Dodenhoeft has been added to the
associated
JOHN F. SHANKLIN
W. C. Langley & Co.
W.
'
become
the close of business Feb. 5, 1960.
G. F. Cronmiller, Jr.
Forgan With
R.
CITY, Mo.—Edward H.
per
Co., Botkins
A.
Stern Bros.
Ninety cents
share on the outstanding
capital stock of this Corporation
has been declared, payable March
1,1960 to stockholders of record at
(90tf)
180TH CONSECUTIVE
Russell
Building.
/
A cash dividend of
UNION
Vice President and
Joins Eversman Investment
DENVER, Colo.
'
(Special to The Financial Chronicle)
A marked rise occurred
the week in
1,
IN
The
of
the outstand¬
on
January 28, 1960.
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
J.
were slight yearto-year gains in orders for boys'
clothing, with interestCentering
primarily on sports shirts, slacks
share
(INCORPORATED
de¬
dividend
quarterly
a
per
„
in
and coats:.There
=
%
CINCINNATI, Ohio — Robert E.
Mullane, Jr/has been added to the
staff of Bache & Co., Dixie Ter¬
minal Building.
merchandise,
•
New
announced
sports¬
dresses
30$
has
staff of Westheimer and Company,
322 Walnut
the
Joins Bache Staff
•
Lebens
especially
clared
Directors
of
Road.
Donald
York'City reported marked MINNEAPOLIS, Minn.—Robert
*
NOTICE
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.
gains in bookings in girls' Spring
?
Board
PAUL
inter-
Wholesalers
The
ing Common
added
Reynolds, Secretary
Corporation
of record
Margaret
—
Eversman Investment
Kinnard Adds to Staff
*
and
were
Company,
shopping center in
NEW KNOXVILLE, Ohio—Jerome
San Jose, Calif.
Weadock has joined the staff of
apparel
and
C.—James E.
White, Jr. are
been
Feb-
Esso
(Special to The Financial Chronicle)
has
record
STANDARD OIL COMPANY
a
/
,
Chemical
The transfer books will
Rinderer
of
15, 1960, was declared
b. c.
DIVIDEND
The pro-
to be used for the
of
the
and
■
+ Re-orders
payable on March 1, 1960, to
and
Company,
Building.
Ohio
the
on
E.
with
Westheimer Adds
CINCINNATI,
share
stock ($10 par value)
common
National
March
Joins H. C.
moderately throughout the J: Maus is now with John G. Kinand
country, with principal increases ; .nard
Company,
80
South
in lamps,
washers, dryers and re- Eighth Street.
'i frigerators.
/, •■/. ■
' +
.
A regular quarterly dividend
of 65 cents per
Distillers
1 Post Office Avenue.
No.
up
.
DIVIDEND NOTICE
January 27, 1960.
An-
Felix
—
with Vaughan and
now
The stock, which was priced at $4
Fran-
markets
reported
appreciable
year-to-year
gains
in
juvenile
furniture/- Interest in appliances
was
FINANCE CORPORATION
by the Board of Directors on
S.
Vaughan Co.
Petitt and Elvie
of Pacific Centers,
ago.,
sets, case goods and floor
coverings.
Wholesalers in most
s
stock
Inc., of Carmel, Calif.,
year-to-year
J. EGER, Secretary
stockholders
N. Y.
&
the
over
on
Cliff Rahel
Street
N.
& Co., Inc.,. ol 541 South
Spring Street, Los Angeles 13, of¬
fered
73,750
shares
of no
par
sub¬
metal
of record at the close of business
ruary
Binder
books have been closed.
occurred
Rogers
WILMINGTON,
Pac. Centers Com.
up
San
G.
Church
in¬
recorded.
common
furniture, upholstered chairs,
.
was
per
in
able March 1, 1960, to stockholders
(Special to The Financial Chronicle)
*
'r dinette
t
increase
Mart
Merchandise
gains
year
President
LOEB,
M. B.
Brooklyn,
affiliated
now
over
reported
was
high
were
196°'
(Special to The Financial Chronicle)
City for
good at the Western
was
cisco, and
a
at
holders
Rogers
7%
a
Binder & Co. Sells
Wholesale orders for most home
.
4%
a
picked up
with prin¬
week,
is
Two With
four
1959 period and for the year 1959
1
fresh meat. "
.
■
ended
increase
cipal gains in canned goods, froz¬
en
foods,
dairy
products,
and
f
South
the preceding week ended Jan.
16,
up
somewhat
f.
Louis
23,
the
week ended Jan. 23 increased 9%
over the like period last
year. In
draperies showed good yearto-year gains, but volume in floor
coverings remained close to a year
Food
Hamrick
In¬
Jan.
ago,
ago.
Com-
AP"lJ.«0March 15.
of
payable
First National Bank
CHARLOTTE, N. C.
increase of
an
was
registered
period in 1958.
sales
and
-
quarterly dividend No. 166 of one
dollar and seventy-five cents ($1.75)
per share on the preferred stock, pay¬
.
tors remained close to the similar
1959 week.
Purchases of linens
~
mon
(Special to The Financial Chronicle)
appreciably from a* 1960, sales remained
unchanged
interest in automatic over like
period last year. For the
laundry equipment and refrigera¬ four weeks
ending Jan. 23 a 6%
year
the
($.25)
deClared,
Stock has been ^
Cents
(Special to The Financial Chronicle)
OMAHA, Neb."
Joins Louis
According to the Federal Re¬
-System department store
'
;
Dividend No. 1*
Five
J. C. Rahel Adds
serve
sets
sets
16,
reported.
International
February 5, 1960.
Manufacturing co^Y. «*,
Neb.—;Roy G. Chicoino
Building.
Board's
ended
crease
all furniture sales
-
for
bedroom
the
was
same
price sales promotions, consumers
stepped up their buying of uphol¬
•
week
weeks
reduced-
more
Reserve
for
3%
^ slacks,
Attracted
Federal
week, for Jan.
also occurred in sports shirts and
;
Congress
of
Company have declared
GERARD
(Special to The Financial Chronicle)
1960, increased 8% above the like
period last year. In the preceding
centered
terest
coats
.
Schirmer,
634
Harvester
.
OMAHA,
8% for Jan. 23 Week
dex
ex¬
COMPANY
Directors
DIVIDEND NOTICES
Now With Chiles-Schutz
week
a
Department store sales
on
a
country-wide basis as taken from
Volume
areas:
*
SPRINGFIELD, Mo. —Charles A.
Petterson, Jr. is now with Yates,
Heitner & Woods, 427 St. Louis "
Nationwide Department Store
Sales Up
cruisewear.
in men's
.
Co.,
Yates, Heitner
(Special to The Financial Chronicle)
\
gain of 3% in lumber orders.
a
slight rise in the
women's spring mer-
was
buying
and
resort
&
Street.
•
suits
connected with
now
Incorporated, 511
Locust Street.
un¬
|
production
There
HARVESTER
Corporation, 84 Exchange
in¬
reported in women's
were
orders
INTERNATIONAL
PACIFIC
year.
nearly 15%
S.
Shaw
With Schirmer, Atherton
ST. LOUIS, Mo.—John J.
dip in
a
earlier, it
changed from last
climbed
dresses, and sportswear, and significant
year-to-year gains oc¬
e
week
a
W.
have become affiliated with First
Central +6
preceding
pany, Farm Credit Building, mem¬
-to
and
were
+10; New England and East week
substantially bers of the Midwest Stock Ex¬
North Central +5 to +9;. Middle
higher than a year ago. Although
change.
Atlantic +4 to +8; South Atlantic, oil
production rose fractionally
and
Edward.
—
cocoa.
of heavy fuel oils below
both the prior week and the sim¬
ilar 1959 period. Stocks of
gaso¬
line moved up from the
1959 levels by the following per¬
Me.
William
and
Street.
Exchanges.
stocks
esti-
mates varied from the comparable
centages: West North
i-'i
M
Street,
PORTLAND,
Kidston
The
up again during the
but -declines occurred in; Street.
-
sugar, coffee and
Last week there was
r
&
(Special to The Financial Chronicle)
with Edward D. Jones
now
DIVIDEND NOTICES
Two With First Maine
.
LOUIS, Mo.—Warren F. Lang-
ford is
eggs,
moved
week,
ST.
fresh
slightly, sales of
according to spot flour,
year ago,
a
estimates
in
butter, cheese and poultry were
steady. Volume in rice at whole¬
re¬
,
in the week ended this
tail trade
interest
v.:
volume of
dollar
total
While
meat
rose
With Edw. D. Jones
(Special to The Financial Chronicle)
now
gain in
orders for canned vegetables this
week, but interest in canned fruit
remained unchanged from a week
,
•
The
expected in
are
ac-
last year,
cording to scattered reports,
•
gains
the coming weeks.
There
was
a
sizable
volume was up
cars, and
moderately-, from
senger
week
a
print
goods
moderately
earlier.
Mills
in
gray
over
-apparel, furniture, television sets,
draperies, and linens.
There was
a slight rise in sales of. new pas¬
Jt- '
in
volume in
Philadelphia and Boston reported
a slight
pick-up in the buying of
shopping
Good
:
declines
holding over-all
Plan,
with
business.
Inc.,
offices
Building to engage
Officers
in
in
are
Officers
has been
—
a
the
Barr
securities
Richard G.
Garrett, President and Treasurer,
James
L.
Kuhnen,
VicePresident and Secretary.
and
15,
at
15,
per
are
share
payable March
1960 to stockholders of record
the
close
business
of
February
590 Madison Avenue
New York 22,
N. Y.
January 26, 1960
1960.
JAMES E. McCAULEY
Treasurer
February 3, 1960.
*1
O/Cth
LL\J
consecutive
dividend
IBM
INTERNATIONAL BUSINESS MACHINES CORP.
i
r
.
ff 0Mf 'irp'O.
IMfflH
WWT
.(60Q)
,44
^■^u-^nr<pvrn
*,ah-m»w*i
i
The
Commercial and Financial Chronicle
.
WASHINGTON AND YOU
.
.
Thursday, February 4, I960
.
EXECUTIVE'S
PERSONAL
BEHIND-THE-SCENES INTERPRET A TIONS
SUPER-DUPER
FROM THE NATION'S CAPITAL
ADDING MACHINE
IN INVESTMENT FIELD
scratch-proof finish
built-in clock
WASHINGTON, D. C.—On the
floor of the vast Depart¬
ment of Commerce building the
population clock flashed every
!<rUr
.
«
«m;U
11
seconds.
the
•f»'
birth
,1
All
over
,
cans
are
Bureau
t-P'i
"
show
'fl
it
the
the
i
*'
sion
I®.;:
the
increase
an
It
be
!''. 'I
in the U. S.
and ash
are
food
in
will
and
ton
and
until—as
'are
half
going
are
and
to
women.
The
be
will be
Popu¬
18-year-old
by
it
would
on
the
!C)«00«
young
indication
as com¬
there
is
every
is going to
a
"But Does It Add?"
J
will
E
be
Households
More
']
'/ u
be
c
brace
in
ever
this
that
been
felt
the
of
62,000,000 in 1970.
national economic
country
Five years from
nual
•<■
Stock
on
0
(.
1
j.fYj
.
•
scarcity. For
already
.'
the
#l
authority
W
i
«"*l
:
HERBERT FILER
Thousands of
the subject.
on
j
book
This
how
shows
too
you
minimum
on
how
make
can
they
The growing shortage of land
be
increasingly felt.
At
present
maximum
you
This
book
profits
suburban
a
you only
fortune.
$3.00.
'
i'
'
'
■
*
i
i
i
•
•
f
And
and
l
1
;
*
I
l
,
1
i
'■
I
.i
I
.if.
.
4
'J-
I
i\ ,!'S
1
:ii;h
!
Free.
coupon today. ■■
Fill
To
vonr
favorite
bookseller,
"i'i
jr.*
419
"
'
25-26, 1960
(Chicago, 111.)
more
government.
nation's
.
a
the
now
hopes for
But
for fiscal
services
tures
and
total
-
•
budget esti1961. for
year.
benefits
expendir
$5,471,000,000,
veterans*
new
thereon
a
be
may
more
an
secure
May 9-10, 1960
Association
of
era
hungry.
[This
;
the
the
Hotel
column
is
intended
to
from the nation
and may or may
the "Chronicle"s"
not
s
Hotel
Atlanta Biltmore.
ciation Spring
Party.
-
June, 1960 (Detroit & Michigan)
Security Traders Association of
Detroit
and
Michigan
Summer
outing at Western Golf & Country
Club.
June 16,1960
(Minneapolis, Minn.)
Twin City Bond Club 39th annual
picnic and outing at White Bear
re¬
inter¬
Capital
Yacht Club
coincide with
own
(Atlanta, Ga.)
..
.
flect the ^behind the scene"
pretation
of
iri
May 19-20,1960 (Nashville,
Tenn.)
Nashville Security Traders Asso¬
and
...
.
at
ernors
say two-thirds
population are
world's
L
dinner
Stock
Exchange
meeting of Board of Gov¬
Firms
peace.
millions
are
estimates
the
annual
Grand
Ballroom
Biltmore.
different,
of people
hungry in
Asia, Africa and Latin America.
of
Sheraton
wars.
there
Some
the
,
ciation 34th
the
are
at
April 8, 1960 (New York
City)
New York
Security Dealers Asso¬
the
of
meeting
views.].
-
(preceded by
tail party June
let Hotel. -
a
cock¬
15th at the Nicol:
u
programs
or
6.9%* of the total budget.
The
portion
millions
t
compensa¬
after year.
President's
,
1961.
be thawing, at least on the sur¬
face.
There
are
bright
new
La Hue Inv. Adds
Remole
'.:The
Dallas.
in
huge debt and the in¬
Tomorrow
creasing
mates
pensions
annual
but at this time there is
ST.
year
a
and
veterans
deceased
rates
result of the
of
Involved
of
as
show that
veterans
of peace. The cold war seems to
States is
such
of
substantial
terest
increase
wars.
kinds
April 10-11-12, 1960 (Dallas,
Tex.)
Texas Group of Investment Bank¬
ers
Association of America 25th
.
gov¬
Association
'*
pension
'
(Special to fhe Financial Chronicle)
PAUL, Minn.
—
has * become
Norman
W..
Sept. 11-14, 1960 (Sun
Valley,
Idaho)
Natiphal Security .Traders Asso¬
ciation
Annual
Convention,
connected, Sept. 12-13, 1960 (New York City)
with
La
Hue
Investment Com-, Association :ofu Stock
Exchange
Firms meeting of Board of Gov¬
pany, Pion'eer-Endicott Arcade.
'
ernors
at
Fisher's : Island'• Club,
Fisher's Island, N. Y.¬
With B. C.
,
Christopher
Nov.
27-Dec, 2, 1960 (Hollywood
Beach, Fla.)
KANSAS CITY, Mo..— Luther J. Investment
Bankers .Association
Jensen is now connected with B. Annual Convention at Hollywood
Beach Hotel.
C. Christopher & Co.,* Board of
(Special to The Financial Chronicle)
'
,
law
will
add
hundreds
of
to
the
*
thousands
-
of
rolls at
estimated added cost
an
new
cases
.
of
$284,000,000
in
1961
and
a
cumulative cost of $9,000,000,000
the next 40
years.
Be¬
Trade
•New
Building, members
York
Stock
of
Exchange.
the
Attention Brokers and Dealer8:
TRADING MARKETS
I
meal
examination.
areas in place of a
piece¬
pattern is most important
for each locality. Because of the
tremendous urban growth lying
If not convinced
that it can pas' for Itself
times over, I may return it and
pay
nothing.
Otherwise I will pay you 53.00
plus the postage charge within 10 days as
ahead,
Mason
overall
payment in full.
that
vows
planning
can
only
preserve
the
integrity of the communi¬
ties, large and small.
Name.
Botany Industries
Indian Head Mills
Official Films.
Southeastern Pub. Serv.'
Our New
York
telephone number it.
CAnal 6-3840
Address
l
;
City
i
J
j
:;
urban
or
Please
send
me
Herbert
Filer's
Under¬
standing: Put and Call Options for 10 days'
many
Planning Essential
meeting and
Royal
York
the
•;
Federal
Housing Admin¬
istrator,-Norman P. Mason only
recently said with emphasis that
overall planning of the nation's
j
Publishers, Dept. -A-7,.
Park Avenue South, New York 16, N. Y.
free
•
in
CROWN
Ul
f
it
r
U'y.'l )'•
3
examine
"
A
arid
during
Urban
.
I
I
can
mail this
f
■4
J, } I
t -li
<
you
ments.
It can
!
:
and
areas,
;
industry,
highways, parking
military establish-
annual
at
,
the veterans
among
This is 26% greater than 1960.
-
estimate
will
are
of 65, pensions
age
1,900,000
receive
pensions, medical and
hospital care, and readjustment
benefits." They .'have been in-
use
new
or
various
tion
with the expansion of
airports,
will
Veterans
for
our
are
than
by urban and
development, along
the
population
States
for veterans
of land are-taken
| and forest for
investment.
costs
year 'more
acres
one
of
permanently out of crop, pasture
can
help you make
each
-1,100,000
do it and
the
in the United
is
will
It shows also
sell options on your own
stock to increase income, where and how
to buy and sell puts and calls, how to use
them
to make
capital gains instead of
short-term profits, how to use options to
protect profits on your stocks, etc.
j
how
there
decade
fourth largest financial function
>
j
traders, and pro¬
fessionals
purchase
"buy"" and
"sell"
options (call and put) because they know
these
options
can
make
big profits for
them
and
also
can ..protect
unrealized
"paper" profits on the stocks they own.
i-1
instance,
next
able
and air pollution are increasing
at an alarming rate.
successful
the
Thus, it is easily understand¬
why the veterans' program
ex¬
shortage
a
and
of
families
streets,
sewer
number of
veterans
I
The records also
projec¬
necessary
urban
could
and
with
increasing
War
growing
total
ex¬
These, in
addition" to
dependents
and
survivors, total approximately
81,000,000.
;of fresh
water in numerous cities, land
is scarce, and water
pollution
Options
by
further
gone
use
industrial
economists
of
also accelerates their dissipation
and intensifies many, kinds of
PUTandCAU
fi*.
supply
the num¬
plained that population growth
not only
absorbs resources, it
Understanding
'*£?»
re¬
to
Executive
land
Incidentally, of the present
population of nearly 180,000,000
in
the -United
States,
about
23,000,000 of them are veterans
well
as
specifc
which
Chief
have
'
.
with
for
28th
April 8, 1960 (Toronto, Canada)
Toronto Bond Traders Association
28th annual dinner at the
King
Edward Hotel.
*
>
of the first World War.
by at least 30,000,000.
immediately
services,
needs
The
;
for
the United
future demands
our
Mid-
Bellevue-
Chicago As¬
sociation of Commerce &
Industry
7th annual Mid-West
Conference
at Congress Hotel.
reaching the
are
residential,
that
on
President.
*
iy. -r
r4
1
■
-
In
them, will depend on
ber. of persons in the various
age groups at the time, said the
: ■'
:
...
Transactions
a
book
•
^
"Wr
i
Market
bearing
and
together
Outlays
our
guide
ernment
development
decades
sources
put or call option, risk limited
to the cost of the option (maybe a few
hundred dollars), you can make unlimited
profits (possibly thousands of dollars in
90 days) is explained in this clear, simple
.
,
with
How
;•
'i
as
Limited Risk-Unlimited Profit
«
;«: .'f,i
the
tics
an
World
em¬
water and recreational facilities.
and will have
important
for goods and
!■'
tions
ahead.
to
*
0
4
-i
•
in
an¬
climb
economy,
Many of
;•;■» I
•
the
now
will
rate
the
further
;
.i'
,4
birth
going
are
must
throughways, schools,
sectors
numerous
to
climb to 57,000,000 in 1965, and
r;i\
to
pansion
the
in
Planners
cause
including
adjoining
comprehensive
studies
his
Report to
Economic
in
show that
to
area,
and
areas
localities.
population im¬
pact in this country has already
before and the total households
.
Eisenhower
nation
more
required
urbanized
commercial
recent
will
there
wedding bells ringing than
t
■•
Thus
planning will embrace the
fringe
Shortages, Too
President
be
total
a
boom
in
food, clothing,
diapers, housewares, and hous¬
ing during the coming decade.
year.
the
Chicago Chapter American Statis¬
in the neighborhood of 4,000,000
'iv!-
ciation
Mar.
4U.IN. J"-. >«0
1
such
there
annual
at
March 6-9^ 1960 (Toronto,
Can.)
Prospectors- and Developers Asso-
Hotel.-:
;
doubt
no
36th
dinner
convention
is
marked effect
a
Meanwhile,
will reach
crop
•
,
marriages.
pared with 2,500,000 in 1959. By
1965 the experts are estimating
the
marriages
nation
recession
have
nearly 3,000,000
v
definitely
flushed with good times. Should
there be a depression or a long
The number of boys and girls
reaching the age of 18 in 1960
■('
than
late 1960s will involve teenagers.
during the 1960s.
I',.
the
Tex.)
Stratford.
or
.
lation experts are predicting an
increase in 'teen age marriages
M'
of
Club of Houston
in
old
more
Bond
Winter
economists
predicting—that
and
.
Philadelphia
married
numerous
(Houston,
in
women
years
1960
Feb. 19, 1960
(Philadelphia, Pa.)
Investment Traders Association of
c;
And the way the trend
is going it will not be too long
larger number of the
a
that
20
were:
all
of
19,
annual-outing at the Brae Burn
^Country Club.
younger.
'
trends in business
new
some
48%
Plaza.
Stock
few.
a
(Chicago, 111.)
Chicago
annual
of
Feb.
many
irons
name
1960
Club
Feb. 12, 1960 (Boston,
Mass.)
Boston Security Traders Associa¬
tion Winter Dinner at the
Shera¬
automobiles,
electric
11,
meeting and dinner at the Univer¬
sity Club.
I
tray*
toasters, mixers
pans,
country
1959
younger
" .."
householders
l'
st
lighter
'
of
Feb.
Bond
cleaners, radios, televi¬
sets,
this
little
takes
younger men
'J
proof
built-in cigar
like housing units,
churches,
About
householders and home
because
■r
that
country
stepped
up,
skillets, just to
imagination to
point out that there is going to
i-
■
vacuum
faster
a
than before.
*f i
I
at
new
owners
1T
?
great
of
are
thing-i
standard
this
other things
schools,
clip than
other age group. Therefore,
any
1
♦'
I'
be
pots and
trends
creasing
f-f Ju";
i
60
to
for
age
\v<.
of young adult customers is in¬
r :;
h
median
be
to
i
mean
>D
calendar
/'/i.
rustproof
precision
engineered (
(
shock
clothing made. But there
more
significance. Among other things
it means that the buying power
^
*./'
24,. and
was
to
Obviously,
in
has
in
better
a
have
for
Twenty
"
population
going
boom
for
living.
age
is 22.
is
situation
26.
was
These
great
a
this
course,
"explosion"
in
baby
average
men
ago
*
f'
•J
i
the
ago
men
I
of
that
years
KvV
marked
make
years
:
'
another
Of
the country Ameri-5
marrying
younger.
Census figures now
marriage of
\\i V';'
1
of
signal
built-in
decade.
new
country.
our
*
The
imported parts
5,000,000 as compared with 4,000,000 at the beginning of the
first
Zone..'.. State,
£~[ Save postage. Check heTe
if
you
prefer to
enclose check or money order for
$3.00, Then
we
pay postage. Same moneyback guarantee.
The Urban
istration
for
into
has
putting
effect.
Renewal
issued
the
Admin¬
procedures
authority
Therefore,
states
new
applying for planning assistance
for
smaller
towns and
counties
LERNER & 00.
Investment
Securities
10 Post Office
Square, Boston 9, Mass.
Telephone
HUbbard
2-1990
•>
Teletype
BS
69
'
@FedFRASER