Full text of Commercial and Financial Chronicle : February 5, 1959, Vol. 189, No. 5818

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C i<8
w

*

*

ESTABLISHED 1S39

FEB C

-#g

awtsoLm

Reg. U. S. Pat. Office

Volume 189

Number 5818

New York 7, N. Y.,

EDITORIAL

We See It M

:

Foi

''Comrade" Khrushchev the other day added

fuel

to

fire

a

already burning brightly in this

production would increase at
10% during the next

or

pared with
Not

only

Democratic

industries

seven years as com¬

"opposition"

eager

prices

hay of

many

others in the United States have of late

been

every

exercising

growth of

themselves

means or

which

grass,

about

"economy." There

our

insistent that

are

blade of

another

but
the

a

good

rate

by one
(usually by government policies

the Russians) to 5% per annum in
keep ahead of the Soviets. Of such stuff
much of the New Deal dogma and New Deal pro¬
grams have for years past been made;
ape

are

few

subjects about which

Let

even
so

us

so

rate

for

the

third

quarter of 1958,
and exceeds the previous high point
reached in the third quarter of 1957
by more than $7 billion. The decline
from peak to trough was steeper in

on

page

comparative investment positions; total
and other securities transactions;

has

J

been

record for the

.

.

Continued

on

page

28

Mr. Jaquith at the Annual Sales Conference of
Slayton & Co., Inc., national distributors of Managed Funds, Inc.,
St. Louis, Mo., Jan. 30, 1959.
*An

30

address by

stock transactions

'

,

stock
com¬

by industry groups.]

price structure, the policies practised by this top-expert
segment of the investment community in meeting the
present "inflation-versus-high-market-level" problems is
highly interesting.
£
Our study of

sion

the

of

portfolio operations

overall

are

STATE

and

HAnover 2-3700

State, Municipal

MUNICIPAL

Public

Lester, Ryons & Co.

Bonds and Notes

bond department

Members New York Stock Exchange

BONDS

Offices in Claremont, Corona

view

LETTER

THE FIRST NATIONAL CITY MNK

15 BROAD

YORK AND -AMERICAN

Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana,

OF NEW YORK

Burnham and Company
CABLE:

Inquiries Invited

STREET, NEW YORK 5, N. y.

•

01 4-1400

Bond Dept.

Net
To

Teletype: NY 1-708

Banks

Maintained

and

Brokers

New York

f

BOND

DEPARTMENT

THE

Chase Manhattan
BANK

Correspondent—Pershing & Co.

The Canadian Bank of Commerce
We

offer to buy these rights at
current

SYNDICATE OF CANADA

Members
New York Stock Exchange

American Stock

Exchange

■Block

Inquiries Invited

25 BROAD

STREET

NEW YORK 4,

N. Y.

^QUifUDC&t COMPANY

MRECT WIRES TO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

•

PERTH AMBOY

market.

Toronto, Montreal,
Ottawa, Winnipeg, Calgary, Vancouver,

115 BROADWAY
NEW YORK

Halifax

DEPARTMENT

MONTREAL AND TORONTO

1 NORTH LA SALLE ST.

CHICAGO

Domixiqx Securities
CORPORATION
Associate Member at American Stock Kxch.

40

Exchange Place, Hew Yerk 5, N. T.

TeL WHitehall 4-8161

Municipal Bonds
«

-

*

*

the

Olrect private wires to

Victoria and

CANADIAN

Teletype NY 1-2270




■

Southern

(Rights Expiring March 17, 1959)

INVESTORS

1832

ESTABLISHED

Markets

Active

Dealers,

T.L.Watson&Co.

BRIDGEPORT

Y

TELETYPE NY 1-22*2

COBUBNHAM

Distributor

DALLAS

Santa Monica

on

California Securities

STOCK EXCHANGES

Dealer

Irivestn

del Mar,

Encino, Glendale, Hollywood, Long Beach,

MEMBERS NEW

.

Members Pacific Coast Exchange

burnham
MONTHLY

/:

Associate Member American Stock Exchange

the

BANK
30 BROAD ST.,N.Y.

Housing Agency

€23 So. Hope Street, Los Angeles 17,

'

CHEMICAL
CORN EXCHANGE

FIRST

20

page

and

Municipal

•

on

1

California

Underwriter

exten¬

an

re-initiated

was

Continued

a

Securities
telephone:

discloses

that

bullishness

during the preceding quarter, also a period of rising
prices. Buying of common stocks exceeded selling sub¬
stantially, and in fact to an even greater degree thari
during the third quarter of 1958. as measured both by
dollar volume and the number oi funds. Such purchases
by all the funds exceeded sales by as much as 77%, as

U. S. Government,
State and

<

NOW IN
afforded

common

and individual

Scrutiny of the expert fund managers' investing poli¬
important as revealed
during the past year's, closing quarter, when the stock
market so sensationally surged on to new all-time highs;
And apart from the question of how great an influence
the funds (whose holdings constitute 4% of the value
of all Stock Exchange listed stocks) exert on the market

Underwriters, dealers and investors in corporate
REGISTRATION complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 38.

SECURITIES

>

cies and attitudes is particularly

1

%
the quickest on
postwar period. Each
successive quarter since the trough,
reached in the first quarter of 1958,
M. Jaquith
has shown increasing gains. Gross
National Product is a dollar yardstick of the total value of goods and services produced.
Its three principal components are personal consumption
Product

mon

.

1957-58
than in the 1948-49
and
1953-54 recessions. However, the $27
recovery in Gross National

securities

DEALERS
H»

vfpppi'

;

Philips' Lamp Works top-favorite

,

[Tables appearing on pages 22 and 27 show Fund's

This

:

billion

voluminously

Continued

steels, and tobaccos.

widely used, and most comprehensive measure of
record
in the
fourth quarter of 1958.* This was a ;
gain of about $14 billion over the

more pure

of

issue, with Roya! Dutch runner-up. Bank stocks sold.
Substantial selling accompanied buying in drugs, food,
gold-mining, natural gas, paper, utilities.

and might well become higher with lower yields

first consider the Gross National Product.

entered the minds of those

steadily and

certain investment

economy reached a new
annual rate of $453 billion

growth of "the economy," and unfortu¬
nately it is. not altogether confined to professional
reformers or the politicians eager to find a sure
way to continue in public office. Few take the
time or the pains to explain or even to tell them¬
selves precisely what they mean by "growth of
the economy." Just what is it that they are con¬
cerned about? A higher rate of growth in produc¬
tive capacity? A more rapid increase in actual
production? And, are they quite indifferent as to
'what it is that we produce or have the capacity
to produce? From much of what is being said and
written, one would assume that such questions as
these have not

The writer suggests

cies toward individual industries reveal continuation

previous shift from defensive to cyclical issues. Industry
groups particularly favored include electronics, chemi¬
cals, insurance, copper, machinery, oils, rails, rubbers,

the

of

who contribute

!

most

buncombe is heard than about this matter of the
rate

the long-term, according to

1959.

ery periods

order to

There

]

Analysis of investment companies' portfolio operations
during fourth quarter of 1958 discloses accelerated chan¬
neling of their assets into common stocks. Investing poli¬

principles and assumptions for the investor and, for
example, states: (1) common stocks are superior in¬
vestments to fixed income securities; (2) new peaks in
stodc prices are nod to he feared; and (3) current priceearnings ratios are not high compared to previous recov¬

of

those who

are

said to presage

are

over

time in

increase that rate

we

By A. WILFRED MAY

and trends in key
materially higher stock

Mr. Jaquith.
The investment analyst deems it unlikely for the market
to repeat its one-way 1958 performance in cautioning
that the market may require a consolidation period some¬

to

make

Big Ball Market

The important viscera of the economy

rate of 2% in this country.

a current

a

By STEPHEN M. JAQUITH*

Partner, in Charge of Investment Advisory Dept.
Model, Roland & Stone, New York City; Members N.Y.S.E.

annual rate of

an

Long-Term Investor
;

country when he assured the faithful that Soviet

8%

Copy

a

Business and Stock Outlook Q»ar*er|y InvestmentCompanySurvey

As

;
j

Price* 50 Cents

Thursday, February 5,1959

Tele. NY l-70?-3

for California's

Expanding
Economy
MUNICIPAL BOND
DEPARTMENT

'

,

:

Bmtft of Aittmtn
nationalrvynos association
300 Montgomery St., San

Francisco, "Calif.

2

The Commercial and Financial Chronicle

"(654)

The

Dealers only

For Bunks. Brokers,

Try "HANSEATIC"
Our experienced trading

week, a different group of experts
In the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security,

reaches

a

they to be regarded,

service and
broad

range

Economics

of

through

our

nation¬

The

the

New York Hanseatic

One that I feel

Corporation
1920

as

American Stock Exchange

120 Broadway, New York

Teletype NY 1-40

BOSTON

Private

5

•
•

Wires

CHICAGO
SAN FRANCISCO

to Principal Cities

ican

1958
,

is

Bassett Furniture Industries
Life Insurance Co, of Va.

Commonwealth Natural Gas

R.

Alan

to be

STRADER and COMPANY, Inc.

shareholders.

Ogden

LYNCHBURG, VA.
LD 39

TWX LY 77

—5-2527—

Private

Wire

to

bleu)

York

City

research results.

known

has proved

source

City'and* there* is* a' smaTler

plant

New

(soon to be

GENESG0, Inc.)

as

$1,860,000,

.by the late J. F Jarman (father
of

of

about

approximately
available for

stock of $2.50 per

would

provide

a very

14%

89

WALL

STREET

NEW YORK 5, N. Y.

(yielding 5% at the present mar¬
and a quite reasonable

(1) During the recent recession

efficiencies

initiated

were

paying

now

off

Most

sales.

portion of "Syntex"

STOCK S
Fpr currentijiformation 7. yy
Call

which

SUGAR
Raw

—

Refined

—

Liquid

Exports—Imports—Futures

DIgby 4-2727

other
fact

drug firms. "Syntex" is in
major steroid research and

a

production pharmaceutical company.
Their research staff now

pre-tax,
867

the company's 2,471.shares. Costs savings

on

common

under

are

of New

study.
(2) The various companies that
have been acquired by General

Shoe

in

the

have required

past several years
good deal of extra

effort in strengthening their

of

out

cialists

some

To

date, their steroid products
have been sold primarily in bulk
to
others.
Very
recently they
their own integrated
pharmaceutical company [including sales organization] in Mexico.
It is possible that this will be folorganized

oreeYieawiCompan^
Established

1930

lowed
the

by

a

"Syntex"

may

accomplish

to

move

objective

same

the

in

also make

U.

S.

sued

Bell

Teletype—NY 1-1127

the

thing to note is that

field, among all drug
now conceded to have
promising future. Prodpresently marketed in bulk
used
in
treating
arthritis,
is

most

ucts
are

rheumatism

In

and

acicition
addition

researchers

as

to

hormones

sax

"Svntex"
byntex
be
able
to

these
tnese,

seem

to

discover manv iicvv comnlex sie
new complex steuiAiiy
roids.
Their patents and patent
cubcuv

Trading Markets

annlieatinns are
applications mre helievpH to num.
believed to nnm

ber

the

in

Potential
Potential

such

.y

Direct U ires To

& Co.

Denver—Lowell. Murphy &
Company, Inc.




hundreds.
uses
uses

onite
quite

are
are

Undergoing

pressive.

Log Angeles—Marache. Doftlemvre

consistently

tests

drugs shown to have

i«..

}

nificant

effect

cancer
cdiicei,

regulating
uiaiing

in

anti-inflammatory
letics.
The

;.

a

im
im

jn

fjrst

Rie

miliibn

111 Broadway,

,

treating

breast

conceotion*
conception,

uses

and

diu-

Syntex

Company

the

and

Sn

book

for

1956)

eral's

new

vulcanized process,

of management's

a

value

100%

It is

175%

(ad-

dividend

stock

obvious'thatGen-

has resulted from
obtain a rapidly and
continuously increasing share of
progress

the market.

'

-

fiscal

The

vear

ended

Oct

31

Burns Bros. & Denton
INC.
37 Wall

Street, New York 5, N. T.

Underwriters—Distributors
Dealers
Investment Secuiities

Canadian and Domestic

Opportunities Unlimited

harmful to

the^comDa^y66 1S
u

.

+

+.

(4> Throughout the organization
emPhasls 1S placed on manpower
development,. Management is con.stantly growing in depth. When

'

w\ d<\ath at age.,49 ol
^frnr*2, Yb ? iLf1 iqTr

our

Monthly Stock

Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a

whole.

Nomura Securities Co., Ltd.
61 Broadway, New York

6, N. Y.

Telephone: BOwling Green 9-0187
This is not
orders

for

an

solicitation for
particular securities

offer or

any

curred

111

Febitaiy,

19d8,

the

Your

RED

CROSS
must carry on f

S°ar<?'reac'hed{ ir}to thf company s
Vice-Presidential ranks and ele-

re

•

,

that

ever

t

7

.

substantial

nf
10

in

the

tv,p

u

Earnings for the

ficr-ai
c

vPar

?.• ? 21

S5)

per share of
in the final

^

first

two

months of the current fiscal

vear.

Sales for November

December,

the

r.„nf

YA^ere

which 75 cents
came
quarter. This
compares with first half earnings
of only 77 > cents, barely covering
and

rftmnanv'« financial

•

D f" ietoisieiea in inc sition

past six months.

iS
$112

improve-

registered

b

Over-the-Counter

a

on

the dividend.

di-

for

In the

company officials the

llscal, Yeai /enaea *->ct* oi,
was
a g°
?ear for the Vated hard - driving,« companygenerally, three ot the trained 43-vear-old Ben H Wilfi
^ ® nnmnanies having
.lfdll?ea' ** year om „n Z1* J*11
T
i
c?.mPani^s in this ie lmgharn as successor. He has been
Pa\"l8
duced their dividends
pe- with General Shoe 26 vears
His
rinrl
rpilpral pnrnpfi <si rq
its 1
^.erdl °jloe *,ye5rs*
.
170 ' Lreneial earned $1.89 on its leadership under the dynamic
common and maintained the $1.50
Chairman Maxev Jarman age 55
,Jv^onj
T+
;c
,w«A*vArthxr
lmur
maxey ddimcui, age do.
dividend. It is noteworthy, how - is imaginative and aggressive.
„

exceptional -talent

the

IN JAPAN
Write

industry

has already spent ov7er $7 rfiillion
in
research.
It
has
a
staff
of

under

at-

also note-

is

Federal District Court
0pin101?

following

decade

its ability to

-A.

N.Y. 6 COrtiandt 7-5680

Department of Justice or the local

to $218

II, earnings per share
158%, dividends 200%,

increased

are

sig-

etc.

present

a

indicative

titude toward utilizing new

pur-

1150%,

or

justed

groups,

Over-the-Coanter

features

World War

the "steroid"

200

active

is

volume from $17.5

million,

marketing arrangements with major U. S. producers and in that
way participate to a greater exThe major

Investment Bankers

&

man-

tion of being a "growth" company worthy in that it was consumin an industry noted for stability, fluted with the approval of the
From 1940 to 1958, shoe produe- Department, of Justice. Under the
tion in the United States increased terms of a consent decree, which
from 404,000,000 pairs to 598,000,- expires about two years hence,
000 pairs, or 48%. Meanwhile, general
adldtl0nal a^"
General Shoe jumped its sales .Quisitions with the approval of the

certain

" V\'

Tokyo, Japan
Brokers

an

tent in the vast American market,

Telephone HAnover 2-4850

in

aggressive sales program processes.
900 workers^ which has brought it the reputa^ms acquisition

trained research spe-

exceeds 105

has

General

of

Yamaichi Securities Co., Ltd.

a

tion. The company, as pointed out
in the Annual Report, is. researchconscious and the recent acquisiplants in the United States, af- tion of Safety First Shoe Co. of
filiations in 16 foreign countries Holliston, Mass., whose operation

-

■'•'J*':;

York, Inc.

Affiliate

Today, the firm is a far-flung
enterprise with 39 manufacturing

units

write

Securities-Company

continuing

turing and retailing operations.]

arid 650 retail
operation.

or

Yamaichi

-»

progesta¬
tional and other finished sex hor¬
mones which are sold in bulk to

offices

handsomely.

Corporation Chairman and Chief consolidating them with the operExecutive Officer) and William ation of the company. Good progfor veterinary use
Wemyss, recently retired, ress has been made along these
"Svntex"
suDDlies these ad- [Subject to stockholder approval, lines and it is expected that these
vanced steroid hormones to major the
company's corporate name divisions will make increasing
U. S. and European pharmaceuti- will be changed effective March 2 contributions to the over-all profit
cal firms. Among these are corti- to GENESCO, Inc., as more tiuly picture.
f
;:
costeroids and their intermediates,'■■representative
ot its piesent
(3) Research .and development
which account for a significant. g™wth do world-wide ^hufac- is coming in for increased attenof the remainder include

branch

JAPANESE

share. This
comfortable

subsidiary sells' certain "Syntex"
products including those offered

LAMBORN & CO., Inc.

our

present agement and in coordinating and

Jarman,

Maxey

w-

wires to

com¬

price earnings multiple of 12.
I believe this projection to be
a minimum expectancy in view of
the following developments:
:

Mobile, Ala.
Direct

50%

coverage~Df--the.-,$1.5D dividend

measures

Corporation, now
the fourth largest manufacturer in
the industry,
was
organizedv, 35
years ago in Nashville, Tennessee,
as
a
modest one plant operation

York

The

Rif-n

Pnprtn

nearly

Overhead costs have been reduced

General Shoe

economical and plenti¬

than

in

up

NY 1-1557

New Orleans, La. - Birmingham, Ala

$1,000,000 on an annual basis. This
means roughly 40 cents per share,

Partner, J. C. Bradford & Co.
Nashville, Tenn.
General Shoe Corporation

'

alone, pre-tax earn¬

earnings

are

ROBINSON

WALTER M.

,

Members American Stock Exchange

are

ket of 30)

drug

projected genuine giowth which
™11 st°r own excep

range

for

use

for

market

excited

the few
selling at a low price, with
modest capitalization and with

a

large-scale
commercial
previous sources, pri¬
marily animal.
The principal plant is in Mexico

ful

growth ethical drug stock
price which still"leaves-room
substantial appreciation. In a

shares "Syntex" is one of

Kahn

steroid hormone products.

more

cents,

mon

to this writer that here

issues

botanical

This

55

at

were

increase

earn¬

Members New York Stpck Exchange

from the like period of 1958.

and

rather

about
8 and 17—during most of this time
closer to the higher price.
"Syntex"
pioneered in
using
barbasco root, which grows wild
in Mexico, as the starting mate¬
rial
for
the
production of nu¬
merous

future

real

a

for

since then has been between

American Furniture

in

interest

seems

a

at

in

the

to

It

Over-the-Counter price

Its

Trading Interest In

,

and

ago,

year

.

ings'.-'

was

distributed

a

fiscal year of $249,000,000 against
$218,815,000 for the past year, an

nificant

producer

it

above

Management owns over 10% of
directly and has a sig-

complex
drugs.
Pri¬
vately owned
until acquired
by Ogden Corporation
in!

,

HAnover 2-0700

12%

are

for December, 1957.
I estimate net sales for the full

a

Steiner, Rouse & Co!
19 Rector St., New York 6, N. Y.

ahead of the $1,245,000 reported

the stock

Amer¬

of

1956,

Bought—Sold—Quoted

)(

3-to-l cur-

with

Louisiana Securities

(Name to be

Changed to GENESCO, Inc. —
Robinson, Partner, J.
C. * Bradford ' & Co.; Nashville,—
-"Tenn. "(Page 2)

ings

to

rent ratio.

"Syntex" is
yet a little

known

diverted

entirely

•

Corp.

For December

research. The balance

up

sheet is sound

Syntex, S. A.

Associate Member

PHILADELPHIA

stepping

is

class

half

a

been

have

belongs in this
latter

and

Kahn,

Walter M.

40%

share per year.

one

\

.

Shoe

estimated

average

an

R.

earnings for the first quarter

shares
have
of almost $1
Over the last
years
earnings

these

years

earned
per

not be so.

may

WOrth 4-2300

five

drug stocks, some are likely fully
priced — some

"Try HANSEATIC."

Established

of to¬

condition

turbulent

Allan

—

.

*

drug firms
the U. S. A.

major

the

"Syntex" has about 1.3 million
shares outstanding (assuming pre¬
ferred conversion). Over the past

day's market has not affected all
stocks equally. Among the ethical

you're getting
icidest possible coverage,

To make sure

of

both in Europe and in

S.: A.

(Page 2)
General

scientific

many

New York City

Alabama &

Major, Columbia
University,
New
York
City.

Djerassi.
It enjoys
relations
with

close

Thursday, February 5, 1959

Participants and

Economics

Rosenkranz, Zaf-

Drs.

and

faroni

Syntex, S. A.

wide wire system.

of

rection

Major,

Columbia University,

Contacts

Syntex,

offer to sell the securities discnssed.)

as an

R. KAIIN

ALAN

.

Their Selections

(The articles contained in this forum are not intended to be, nor
are

.

This Week's
Forum

A continuous forum in which, each

department offers

Trigger-quick

Security I Like Best

.

,

-

is

oo

companyf financial po-

Quotation Services
for 46 Years

exceptionally strong. Curic

orirl

almost 8 to 1 and

cash of $12,000,000 alone exceeds
'+ v.

tntal

to'ai e""ent liabilities

^ ' T ^ company is still expanS1°u-minded. Plans are near cornP^ion for the construction of a
modern Plant and office building

National Quotation Bureau
Incorporated

.

Continued

on

page

47

Established 1913

46 Front Street
CHICAGO

New York 4, N. Y.
SAN

FRANOISOO

Volume

189

Number

5818

.

.

.

The Commercial and

Financial Chronicle

(655)

N d E X

The Challenge to the Dollar
By GEORGE CHAMPION *

In citing such topics

City >

potential trouble affecting our cur¬
rency's future and in appealing for wholehearted public sup¬
port of the President's balanced-budget aims, Mr. Champion
focuses attention

the chicial need for

on

dangers

guard against;

must

we

The Challenge to the

;

points out that increased

of

our

choosing and we must face
problems in order to succeed.
own

to

up

The

G.

\

The

life

•

.

of

*

•

to

the

tional position.
has the world
become

•

So interdependent

the

mies

—

none

of

our

with

turbing

ports.

Champion

forge

One:

nation

Our

has

United

States

ex¬

ports have fallen rather sharply.
exports actually fell from a

Our

peak rate of $21 billion annually
in mid-1057 to a recent rate of
about $17 billion.

This decline in
foreign sales was a major con¬
tributor to the drop in domestic
output in early 1958.
Item Three: We

talk

(most
the

heading toward
trouble.

Britain

in

who

even

of

from

it

may

be

period of severe

a

it

as

may

reputable analysts

are

and
-

hearing in¬

dollar

Far-fetched

there

seem,

are

on

the

Continent

eventual

predict

de¬

valuation of the dollar.

Actually these symptoms—these
surface manifestations of potential
trouble—are all interrelated. They
involve the

total of

sum

relations

nomic

with

our

eco¬

other

And

of

Los

geles,

Angeles

Club,
1959.

Rotary

Calif., Jan. 30,

Edmunds—.

i'. f

our

V' '

Statements
Frost
Bank

'

time

From

Hon.

Donald

send

we

investment

alone

other

to

them.

-This

has

"

Nashville




♦

Fleming

and

Leslie

J.F.Reilly&Co.,Inc.

M.

Outlook

Members Salt Lake

18

1

City Stock Exch.

Exchange PL, Jersey City

U.

S.

When

all

they

converge,

river.

18

provided
to

Bank

is

than

Needed,

See It

and

•'.ri y

4-4970

Teletype:

Too

(Boxed)—

dollar-streams

other

1160

Lake

City

Permachem

(Editorial)

Insurance

Cover

— _

Stocks

F. H. McGraw

34

___v

'-V

_.

!

__

48

—'T-.— —

■

W. L. Maxson

_I

Pacific Uranium

8

.,

7 Einzfgr "The

Not Too Strange. Parallel
Hitler"

"

and

coun¬

From

of U.

S.

S.

R. Today

*Prospectus

Washington Ahead of the News—Carlisle Bargeron

the

Indications of Current Business

Activity—v—

Hilton Credit Corp.*

-

n

_

on

request

13
45

—

a

balances

dollar

held

investments
count

in

ceed $15

held

in

war

NSTA Notes
News

.8

—

——T

About

Banks

and

...

Bankers

Observations—A.

Wilfred

Our

States

and

ac¬

have

now.

&

19

Governments

Our

ex-•,

Reporter

May—————.,.—

*

in

Over much

_

Utility

Securities

....

Railroad

of the

San Francisco

—

Securities

—

Securities Salesman's
The Market.

on

Stock

page

Exchange

TELETYPE NY 1-5
Chicago

Glens Falls

"

Schenectady

Worcester

Los Angeies

Cleveland'

Chicago

38

.

.

and

Corner

Silicon Transistor

43

...

47

—

You—By Wallace Streete

American Dryer Corp.

2

The State of Trade and Industry—

Washington and You

32*

4

___

.1

—

Corp.*

Vitro Corporation

*

16

The Security I Like Best

India, the Philippines, I
Argentina are exam¬

Continued

•

44

—4

—

Prospective Security Offerings.

:

Permachem Corp.

48

...

Western Gold & Uranium

jSee Cover Page article dealing with portfolio operations of
1

An¬

Dallas

.

countries this dollar shortage still
and

-

31

...

Securities Now in Registration

shortage. It became
the objective of governments and
central banks to build up theirf
stock of dollars, and to hold dol¬
lars
was
regarded as being as
good as holding gold. For some

Brazil

1

dollars

from a dollar

persists

inc:

Exchange Place, N. Y.

Direct Wires to

44

...

40

Teletype NY 1-1825 & 1-4844

33

...

—L—

Reporter's Report

Public

increase

on

mackie,

HA 2-9000

Philadelphia

post¬
period the free world suffered,
-

Singer, Bean

f

..

•

foreign accounts isn't bad

itself.

Funds

•

billion.
this

Now

foreign

on

doubled

Mutual

short-term

and

United

the

than

more

York

Salt

37

—

JCY

Direct wires to Denver &
i

-Dealer-Broker Investment Recommendations.—

v

significant fact that, counting
the world as a whole, not all these
dollars are being spent.
Indeed,
over
the past decade many individuals and many countries have
sought to save dollars rather than
to spend them.
As a result the

in

Arizona
49

Coming Events in the Investment Field

impressively
large figure of $26 billion. And it
came

for

Regular Features
As We

coun¬

-

,

to

Outlook

Economy..

Self-Education

make a mighty
the sum total of

Last year

dollars

tries

these

on

foreign

more •

doubled since 1955.

TELEPHONE HAnover 2-4300
Boston

16

____

Holding Companies Hailed by Economists

and

Investment Companies in final quarter of 1958.

</^*See article

on

Cover Page.

Twice

FINANCIAL

C. G. S. Laboratories

■

Weekly

Copyright 1959 by William B. Dana

TT

B.

CHRONICLE
.

a

Park

DANA

riff,

Place,

Reentered

as

ary 25, 1942,
yorki N y>,

„

New York 7,

the

SEIBERT,

in

Union,

a

-

,

plete statistical issue —market
records, corporation • news,- bank
Other

Chicago

news,

Offices:

3,

HI.

Request

v

New

$65.00

135

quotation
clearings,--

etc.).
South

La

Salle

St.,

S.
of

$68.00

year,

in

year.

per

...

,

J

N6te—On account of
rate

of

„

the fluctuations

exchange,

m V. FRANKEL & CO.
INCORPORATED

39 BROADWAY, NEW YORK 6
WHitehall

Publications

Bank and Quotation Record — Monthly,
$45.00 per year. (Foreign, Postage extra,
the

(Telephone STato 2-6613).

U.

Members
per

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Other

Thursday (general news and advertising issue) and every Monday (com-

city

at

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and

Canada,

of

Other Countries,
»

United

Territories

Pan-American

Dominion

President

Thursday,-February 5, 1959

and

office

post

Every

state

on

the Act of March 8> 1879.

Subscriptions

SEIBERT, Editor & Publisher
DANA

at

Sub.cr.pt.on Rate,

N. Y.
Possessions,

WILLIAM

Prospectus

second-class matter Febru-

COMPANY, Publishers

REctor 2-9570 to 9576
HERBERT D.

*

Company

Reg. U. S. Patent Office

25 BROAD ST., NEW YORK 4, N. Y.

Albany

M.

Canada's Economic

on

__

other

dozen

a

Spencer Trask &. Co.
\

WILCOX-GAY

DIgby

PREFERRED STOCKS

New

14

:

;

V

Statement From Sherman Hazeltine

25

Members

BASIC ATOMICS

and Charles Merwin Brown 13

men

WILLIAM

•

12

The COMMERCIAL and

specialized in

INSTRUMENTS

:»i-

Today and Tomorrow—Dexter M. Keezer—_

+

have

MIDWEST

10

Application of Mathematical Statistics to the

Published

Pot many years we

U. S.

on

-

Stock. Market-rr-Vernon W. Stone

feeding dollars abroad

are

vestment

peo¬

Los

One—Stahrl

The Economy

the

Today "

the

INDUSTRIES

'

9

Problems of Investing Abroad—L. I. Estrin—

ples." Many such countries are
ples, relations whicli finally come
Jesser developed lands to which
*An address by Mr. Champion before
we/chaimel much of our aid. But
the

r'

•

the support

course

in the

ex¬

example,

an

abroad.

tries^ among

some

reduced rate.

that

The
■

imports we buy (which are
steadily increasing), our foreign
aid, and the private foreign inr.

ex¬

why the United
gold. But
the outflow has been persistent
and is continuing today, although

abroad)

Postwar

—the

were-good

creasing

Industry—George Donat

States

specific

any

as

same

streams

During the recession a year ago,
with interest rates falling, there

Two:

Take,

the

At

figure, -but the lowest since 1946.

reasons
States should lose

to

Ilis Modern Role

on

'

gold

sizable

a

United

8

What the New Business Cycle
Needs to Replace the

spend their pay. The"
result is an outlay of more than
$3 billion to countries which are
;
the hosts ' of our military
men.

outflow
over the past year.
For 1958 as a
whole we shipped abroad about
$2.3 billion of gold, and our total
gold stock., .today has fallen to
around $20 billion—still~a sizable
perienced

tied

off bases.

unearth

to

STREET, NEW YORK

PERMACHEM CORP.

7

Stocks—Roger W. Babson

Probable Impact of European Common
Market

%

themselves

fundamental disturbance that
be in the making. *

Item

!

troops in Germany, England,
Japan and at dozens of other far-

point to just three items
suggest we ought to dig
surface

WALL

Telephone: WHitehall 4-6551

ADVANCE

Investment Banker Reflects

of

me

the

the

Government pays for

it off.

beneath

dollars

forces

tary

developed

have

change may
actually be under way unless we
act with vigor and courage to head

a

all ought to

we

heavy expenditures that are made.;
in connection with American mili- /

/;

trends

Wall!

6

Profitability—Ira U. Cobleigh

Economy—James J. Minot—_

thing, it may not be
appreciated that the volr

not

are

which suggest such a

at

An
;

cer¬

providing other nations has inr
creased immensely in recent years.
Moreover, most of these dollars

nations.

Item

are

is

past several

may

print

one

of

uriie

Borne

at 99

Obsolete Securities Dept.
99

Research

Highway Program—Bertram D. Tallamy

The Case for Cumulative Preferred

something about.

For

And yet in the

any

in the fine

widely

rather dis-

From

United

Foreigners Have Dollars to Spend

can

change in

which

of

.

the

relations

Let

Wilson and Porcine

Most of

that
us

escape

.

balance

the

know

consequences
of
a
basic

years

the

between

tain trends which

econo¬

other

in

and

world

t

reflected

buried

do¬

mestic

4

5

A Look Ahead at the

•

us, I am sure, never look at this
particular balance sheet. Yet

interrelated
are

obsoletes,

our

States and other nations.

interna¬

so

—

be

to

with what payments

up

nation's

over

\

American is

every

inextricably bound
happens

;

you're frothing

3

Mitchell

•

/ <: vm\-

If

the sedative's available

Dollar—George Champion

Coming Electronic World and Benefits

Don

-

mmmmmmmmmmmrnrnM

RAGES OF MAN

Lessons We Can Learn From
Mikoyan's Visit
—Hon. Richard M. Nixon—
[

?

Am COMTAXY

Cover

a

spending increases in areas other than national defense and
foreign aid. The banker reminds us we continue to be in a
not

mm

Cover

dollars held in foreign accounts isn't bad in itself; and decries

war

Page

Business and Stock Market Outlook for
Long-Term Investor
Stephen 1V[,* Jaquith
\
^

strong and widely
The New York banker discusses the

respected U. S. dollar.

Articles and News

Funds Aggressively Support
Big Bull Market
—A. Wilfred May

as

[icHTtnsTtm

B.S.

^

President, The Chase Manhattan Bank, New York

•3

remittances

Direct

Wire

to

In

for

foreign subscriptions and advertisements
be made in New York funds.
„

3-3960

Teletype NY 1-4040 & 4041

PHILADELPHIA

I

The Commercial and, Financial Chronicle
4

.

.

.

Thursday, February 5, 1959

(656)

exists among Soviet leaders

Lessons We Can Leain
Ffom

United

the

about

States.

Gained

New Knowledge

tr

Mikoyan's Visit

Carloadings

the first place,

In

understand

By IIQN. RICHARD M. NIXON*

and

our

freedom of speech

policy

he received

honorary doctorate from Fordham,

an

sian visitor will not

cause

Industry

they
current

we

a

Mr.

Americans
still

disagree
results of this

unusual

should
that

tour.

reject the arrogant view
should speak for them

we

that

have

Some

we

without

strongly that
his
coming

Third, because of his belief in
the theory of the class struggle,
less the doctrinaire Marxist tends to

much

consultation,

stated

dictate to them.

the United

equally

are

firm

their

in

that

view
there

net

was

States

lite
countries.
Mr.
Mikoyan's tem, but that they oppose the for^
meetings with American officials eign policy which is designed to
that ' system
will no doubt be played up as an. defend
from; its
vindication that we have resigned potential enemies abroad. •'*ourselves
to
a
continuation
of
If Mr. Mikoyan had such ideas
their captive status and are about when he came here, I can state

Others

States.

United

the

possible effect on the seething with discontent and that
millions
of
enslaved
people in they not only want a change in
Poland, Hungary, and other satel¬ the economic and political sys¬

interests

best

in

that

millions of American workers are

its

is

visit

harmful to the

of

think

negative aspect of the

A second

definitely

was

those
whose
mental
have been mesmerized
by the dogmas of Karl Marx in¬
variably tend to underestimate
the basic strength of the American
economy. To them every dip in
our
economy signals the
begin¬
ning of the end of capitalism.
Second,

to reassure our allies

serve

Com¬
the case.

processes

shores which would be designed to settle
ago. the problems of the world. On this
and score, I believe the results of the
to the ultimate visit to which I have just referred

as

much
for a

world

toward

munism than is actually

over a
week
have
disagreed

little

is
support

public

line

softer

left these

Mikoyan

a

as

than we

there

that

and

stronger

<■

just

issues

such

on

a

continuing progress of recovery.
Many basic
already have passed their pre-recession peaks.
building is nearing boom levels. The dollar volumes of
gross national product, retail sales, wage and salary income, and
construction expenditures were all at new record levels at the end
business

To forget them. I can state cate¬ categorically, based on my con¬
gorically that nothing could be versations with him, that he re¬
further from the truth and that turned to the Soviet Union with
resolving this controversy, I we continue to support the cause completely different views.

and further gains are anticipated. At the same time, the
of the recovery has been uneven and some problems linger
on.
On balance, however, confidence in a continued upswing is
widespread, bolstered by the optimistic tone of the President's
messages to Congress.
of 1958,
pace

In

would

the

amine
what

it

been

be

visit

useful

in

first

to

ex¬

terms

of

no

did

not

There

do.

has

change whatever in the
positions previously taken by the
United

States

Union

on

tions

and

the

Soviet

as

such

major policy ques¬
Berlin,
suspension
of
nuclear tests, and East-West trade.
Mr. Mikoyan brought no new ap¬
proach to these problems, offered
did

and

none

in

recede

not

any

respect from the rigid and dog¬
matic Soviet positions on these
vital issues. And
with

we

on

our

side,

allies not present, would
and
did
not
suggest
any
our

not

changes in the policies which; had
been previously agreed upon.
Let

turn

us

of

aspects
was

economic

"The

Washington

nearest

sees

a

with

to the

now

the

visit.

the considerable

developed in

some

negative
First there

mark

opening

an

eventual

two

-

that

concern

allied capitals

to the effect that this visit

step

power

might

toward

meetings

of freedom and independence for

-

•

I

charin

have lulled some of

may

Berlin and other

areas

into a false sense of World. He found
complacency. We shall certainly support
whatever

our

people

gross

$437 billion in 1958.

have

admit

to

he

that

did

an

expert job of salesmanship con¬
sidering the wares he had to sell.
But

if

doubt

I

number

of

allowed

the

sonality

the Soviet
the past which he helped

record of

people
his per¬

of

charm

to

obscure

to make.

let

should,
negative aspects of the visit,

us

turn

we

as

to

now

of

some

its

positive results. On the plus side,
I would place at the top of the
list

what j Mr.

about

us

country

what

we

in

turn

and the

learned about him

cause

I believe that it was most useful

and

of

significant
among
the
political party

line

toward world

which
some

has

was

noticeably impressed by
the United

the economic progress

States had

his

made

last

in the

visit

here

22 years
and by

the obvious strength of our econ¬

personal income and corporate profits. Despite some feeling
that these estimates, particularly as to profits, are on the optimistic

side, they are within the precedents set by previous postwar recov-.
cries and are broadly in line with the ideas on the outlook enter¬
tained by businessmen and other economic observers Even without
allowance for possible price increases, the expansion from present
levels of output which this forecast assumes is well within the
limits of the nation's resources of manpower, materials, and. indus¬
trial capacity. While high levels of production and employment
are anticipated, there is no reason to expect a reappearance of the
bottlenecks, materials shortages, and over-full employment that
characterized earlier boom years."
"
"'V; .V*'"'

today.

omy

He did not find any encouraging

signs

of

States

progress

toward

in

the

fulfillment

a

Members Phila.-Balt. Stock Exchange

N. Y. Phone

-

PRIVATE PLACEMENTS

during the week ended Jan. 17 and a year-to-year decline
was reported, according to advices received from Dun &
Bradstreet, Inc. The drop was attributed to fewer seasonal labor
cutbacks in
the construction, trade, apparel, textile, and food
ance

of 21%

processing industry. Claims fell most noticeably in Pennsylvania,
New York, California, and North
Carolina. The week-to-week
decline

than is usual for this time of the year.

more

was

Bank

Clearings 14.5% Higher Than Last Year

Bank clearings

the week ended. Saturday, Jan. 31, will
Preliminary figures
compiled by the "Chronicle," based upon telegraphic advices from
the chief cities of the country, indicate that for the week clearings
for all cities of the United States for which it is possible to obtain
weekly clearings will be 14.5% above those of the corresponding
week last year.
Our preliminary totals stand at $24,829,800,971
against $21,091,267,790 for the same week in 1958.
show

an

For

in

increase compared with a year ago.

the

week

ended

Jan. 31

clearings for New York City
$11,173,288,374 or 18.6% gain over
year ago; Chicago totaled $1,193,389,059 against $1,125,133,427
or 7.0% gain; and Philadelphia $1,015,000,000 against $945,000,000
or 7.4% gain.

totals $13,277,801,646 as against

Forecasts Record Sales for Department
Prices

Stores

of

department store merchandise will hold -the line
against inflation even though the stores' sales volume will climb
to new highs in the first half of 1959, according to Ralph Lazarus,
President of Federated Department Stores Inc.
(Bloomingdale's
and Abraham & Straus in New York are members of Federated.)
Mr. Lazarus spoke before a meeting of the National Industrial
Conference Board at the Hotel Commodore in New York.
While he forecast record-breaking sales, Mr. Lazarus warned
against assuming that consumers have started "a buying binge" if

double

The same month in 1958

develop in February.

big sales gains

trouble

for

stores," and the current
1958, which could reach 12%, will not hold
1959, he cautioned.
"People will receive about $8 billion more income than they
did in the first half of last year," Mr. Lazarus estimated because
higher employment and a longer work week are boosting takehome pay.
'V
••• •
:
Record-breaking sales, 4 to 5% bigger than sales in the first

"was

month's increase

department

over

Continued

Placing

a

on

company's revenue-producing

page

;
'

COrtlandt 7-6814

issues

Continuing Interest ia

Fischer & Porter Inc.

privately is recognized

sive method of
If

A

28% dip in initial claims for unemployment insur¬

of the

.

.

an

was a

for the full first half of

Samuel K. Phillips & Co.
PH375

United

prediction of an inevi¬
table class struggle. On the con¬
trary he admitted almost with
grudging
admiration > that
the
strongest defenders of the Ameri¬
can
system, the most vigorous
critics of Communism, and • the
most uncompromising supporters

top Soviet
opportunity
to get first-hand knowledge about of our firm stand in Berlin were
the American people, our system not the traditional
whipping boys
of government and our way of
of
Communist
propaganda, - the
life. There is no question but that
Continued on page 46
a great deal of misunderstanding
important that

5

Unemployment Claims Down Noticeably
There

a

Reading Co. &/&$, 1995

Teletype"

been

of the critics

policy.

our

He

by

learned Marxist

Mikoyan

in his two weeks in this

and

softer

Communism

since

Having in mind,
the

the

significant advocated

any

American

the

for

either

of

leaders

of the Free

Corresponding increases are anticipated

in

no

Back Hill Falls Co.

Pennsylvania Bldg., Philadelphia

over¬

whelmingly
united
behind the
negative aspect, con¬ firm stand of the President and
siderably less serious than
the Secretary Dulles against Com¬
first two, is that Mr. Mikoyan's munist probing actions directed at

leader should have

Pocono Hotels Units

Americans

third

A

he represents.

Phila.Transp. Co. 3-6's, 2039

found

people everywhere.

0An address

by Mr. Nixon before the
Fordham
College
Alumni
Association,
New York City, Jan. 27.

He

assumptions underlying the budget are the
comes to an official forecast of the outlook

ahead. For 1959 as a whole, the Administration fore¬
national product in excess of $470 billion compared

for the year

freedom.

think- it

1he

measures

Home

Richard Nixon

of

cause

National City Bank

general business conditions, viz;:

on

"The steady flow of favorable business reports during January

emphasizes

gain for

the

Business Failures

The February monthly letter of the First
of New York comments

and

far more divided

are

are

be

approach to Mr. Mikoyan and appeals to Americans to
worthy of their cause.

naive

our

Matsu, Lebanon or
Berlin, they tend to conclude that

labor leaders for their non-fawning and non-

our

here

debate

Quemoy

"disastrous mistake" for us to
relegate our economic aid and information programs to a lower
priority level than our military defense. The Vice-President
commends

of

policy from
Americans
travelling abroad, or in public

-

Index

foreign

the U. S. S. R. to change its position

and, therefore, it would be

criticism

hear

evaluating our policy
in the cold war in the light of Mr. Mikoyan's visit. Mr. Nixon
concludes the undoubtedly new knowledge gained by the Rus¬
a paper

Price

Auto Production

and

in¬

is

It

public.

in

Trade

Commodity Price Index
Food

willingness to debate for¬

our

eign

Retail

State of Trade

they do not

evitable therefore that when

On the day

Electric Outp?_i

Mikoyan

Vice-President of the United States of America

Vice-President Nixon delivered

Steel Production

The

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by

you

have anythirtg

however, be
the

as an

inexpen¬

financing.

sure you

We maintain active

like this in mind,

trading markets in:

Commonwealth Life Insurance Co.

let professionals handle

Gulf Life Insurance Co.

job.
Jefferson Standard Life Insurance Co.

Grinnell Corp.

f

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Keyes Fibre Co.

R. S. Dickson & Company
&

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Established

1914

1529 Walnut Street

Broadway
Now York 6, N. Y.
115

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Philadelphia 2, Pa.
LO 8-0900
ATT Teletype PH 30




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COMPANY,

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Atlanta

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to

All

CHICAGO

Raleigh
Offices

Richmond

36

Volume

189

The

Number 5818

.

The Commercial and Financial Chronicle

.

.

product is produced and the end know what products to make, how
product itself. Whether you have many to make, and where to mar¬

Coming Electronic Woild
By DON G. MITCHELL*

Syivania Electric Products, Inc., New York City

Now that national defense is becoming increasingly electronified, the next big untapped reservoir will be the commercial
and industrial market. This, Mr. Mitchell avers, will double
the

industry's sales from present $13 billion in less than ten
In supporting this prediction, the industrialist specifies
inevitable developments that will compel those in the race to
usher in an electronic economy "whether they want it or not."
years.

man-made

will cost, he relates, twice the pres¬
years, and probably more at the
rate of at least 10% a year; the return for every $100 spent in
past 25-year period has been $2,500 to $5,000; gestation time
after a project is initiated is ten years with 90% unfruitful;
and, despite this, 50 to 75% of progressive industry's sales
today are derived from products unknown fifteen years ago.

v

dustries

that

mous

one

most
indus¬

tries will dis¬

all

perse

1958.

There

reasons

are

to

anti-missile missile systems.
The wide area covered by just

those

few applications tells the
story—electronics is as big as the
universe.

two

take

an

close
look
at
elec¬
First, the electronics
industry itself will expand greatly
tronics.

...

the

Northwest

and

And

that

is

literally

true, because electronics put those
satellites up there, and now all

especially

areas,

facilities

roof,
large

in

good

that:/ radio

Mid-West

over

and,

could be the calculations of

earth, and there puter,

are

electronics has to do is figure out
how to bring them down.

telephone

call

automobile to your

lot.

As

that

waterway
really gets in
high gear, you
see new

and

n

ew
Don

busines

in

this

of.

will

Mitchell

up

places

heard

G.

ses

springing

you

And

may

do

have

never

know why
It will happen

you

happen?

because

distances, either in terms
or
time, are dwindling
every passing day, and many of
the
advantages of concentrating
your facilities in one area are a
great deal less significant than
they were only 8 or 10 years ago.
miles

of

What

we

going

see

result

of

vested

enormous

produced

on is
having

industry's

in research

over

the

sums

the
in¬

of money

the years.

Second

It has
Industrial

Revolution.
Now

let

me
get more specific
industry that will
double-barrelled role in

and discuss the

play

a

this Second Industrial Revolution.
I'm

talking, of

course,

about elec¬

tronics
the industry which
symbolizes- the vital importance of
—

research because research enabled

electronics to grow from a volume
of

$500 million annually just be¬
the war to more than $13

fore

'An

the

address

equipment, arid the gadg¬
the engineers will have

gether

your

up

ventory report from one of your
plants to the head office, a closedcircuit

television

picture

of

around

but it won't tie them
that's the way to look at it.
.

.

.

Answers Practical Questions
Now let's answer this

the

question;

Where will all this progress come
from?
What will it cost? What

traffic density on an expressway, a
radar picture of the air traffic pat¬
tern

...

home, an in¬

will be the payoff? How long
it take?

Wald-Chamberlain

field, the control of the handling

"device,"

or

the equipment

of

ore

at

Duluth,

by

Mr.

Mitchell

before

Investment Outlook Meeting, Minne¬
Minn., Jan. 16, 1959.

apolis,

For the

an

quality

control

check

on

chemicals,

some

machinery,

or

or any¬

the con¬ thing else—depends upon progress
in another. You need to think in
power
plant.
You could name a hundred ex¬ terms of what industry as a whole
amples
because "communica¬ is doing in terms of research and
tions" is just as broad as ydur development for the future,.-, as
harnesses the' action of electrons braces the whole
well as what is going on in a par¬
field of elec¬ imagination.
v
when you apply electric power to tronics.
ticular
industry such as
elec¬
It is to electronics what
it. I don't care what industrial or
Will Evolve Inevitably
tronics.
the engine is to locomotion, or
commercial field one has in mind, what
Some of the examples I men¬
We are surrounded today with
paper
is
to
printing, or
each one is destined to go through wheat is to
flour, or electricity is tioned are already being done in so many scientific and engineering
an
electronic revolution in
the to
lighting.
varying degrees, others are in the achievements that I think we
next five or ten years.
Let me inject a word of warn¬ drawing-board stage, others are sometimes lose sight of the fact
ing, however.
Ingenious as the in the laboratory, and still others that the past 25 years has seen
Defines Electronics
computer is, it is not a cure-all. are only dreams at the moment. more technological change than
Let's
indulge in a couple of It's an electronic tool, and that's But they will arrive one day all the preceding years of record¬
definitions
for
a
couple
of all. A computer cannot
think, al¬ because the needs of our electronic ed history. For the first time in
moments. Electronics means tele¬
though it certainly comes amaz¬ economy will force their arrival the history of man, dramatic farvision, radio, radar, "electronic ingly close to it—so close, in fact, whether we want them or not. reaching changes take place in a
brains" or computers, X-ray and that it fools
people. But if you It will be the only way that this single generation or even less.
so
on—but it does not mean the ask a
computer a silly question, increasingly complex economy of
If you were to try to describe
electric
refrigerator, or electric you'll get back a mighty silly an¬
ours
can
be
coordinated, inte¬ graphically the phenomenon of
locomotives, or electric' motors. swer. However, from the stand¬
technological progress, you would
Perhaps I will be guilty of over¬ point of any organization with a grated, and directed to do the job
Continued on page 30
simplification, but another way to sizable administrative operation, we have cut out for it.
look at electronics is to think of the
computer can extend your
the electron tube; where you find business
procedures, systems, and
it,
you
have
electronics.
The planning to a degree of skill,
electrons which are emitted when
speed, and effectiveness that has
electricity is applied to that tube never
been
even
remotely
cause
something to happen — a achieved to date.
MORGAN STANLEY & CO.
picture
appears
on
your
TV
All of us know that the empha¬
screen,
a
voice
is transmitted sis is on
speed these days—speed
over a microwave telephone net¬
and more speed.
This arises not
ANNOUNCE THE ADMISSION
work, a runway appears on a
only from competitive conditions
radar screen, or a printing press
in existing markets but the fact
V
OF
starts, or a computer figures out that industry's markets are
a problem, or you hear something
steadily broadening as the coun¬
A. DOUGLASS HALL
through a hearing aid.
try's standard of living rises. To
Home electronics has
boomed stay in the race, operating infor¬
II. LAWRENCE PARKER
with television, and National De¬ mation must be made available at
fense
is
becoming increasingly a speed With which it has never

highly critical metals,
trol

of

an

.

.

or

atomic

.

•

,

.

electronified,
but
the big un¬ been available before. The prob¬
tapped reservoir is the commercial lem of compiling, transmitting,
and

the

industrial market, both from

standpoint

of

the

way

a

are pleased to announce that

processing operating data has
increasingly difficult and
increasingly costly. There is less
and less time between events, and
because management must obvi¬
ously base its decisions on those
events, it is absolutely essential
levels

all

have

has become associated with

us as

Manager of our Boston Office

Co.

Blair
IN

C

ORPORATED

Members ot the New York Stock
and other

Exchange

BOSTON 9, MASS.

Telephone: CApitol 7-4310
PRINCIPAL OFFICE IN NEW YORK CITY




have

EFFECTIVE

OF

FEBRUARY

FIRM

THE

1,

1959

of

/

>

,v

-.

-j.„

,,,

E;

2 Wall Street, New York

February 8,1959.

looking

at

management
ever

before.

computers,

you

to

keep in mind one ex¬
tremely important point: It is not
simply a question of what the
computer will do better or faster.
I like to regard those as the im¬
mediate payoffs to the substantial
sums that a computer and a data

We

are

been

able

never even

to

do

before,

or

pleased to

announce

that

LEE M. LIMBERT
has

processing system cost. Increased
speed,
and
the elimination of
paperwork drudgery — those are
the quick payoffs. Far more im¬
portant, however, is the oppor¬
tunity to do things we have never

principal Exchanges

50 STATE STREET

PARTNERS

complete and significant in¬

In

George E. Burden

GENERAL

become

formation faster than

Mr.

AS

and

that

We

will

a

-

going to
plants

are

a com¬

from

.

the

that

ets

to design, and our manufacturing

answers to these ques¬
unloading dock up in
tions you must look at the total
lecture from a University
research effort of industry as a
which represents
a
particularly of Minnesota laboratory to class¬
important result of research in the rooms all over the state, the regu¬ whole, because the technological
electronics industry is the com¬ lation of the flow of raw materials progress in any one branch of in¬
puter—the electronic brain, With¬ through a fabricating plant, the dustry — whether electronics/ or

The

second, as other in¬ out question it is the most com¬
dustries expand and improve their
pelling and the most far-reaching
technology and their methods, one phenomenon to confrbnt us for a
of their most important tools willlong, long time. To my way of
be electronic equipment — some
thinking, thq computer is not siin-i
machine,
some
device
that ply an electronic gadget; it em¬

require eriorunder

other

in

to

seem

billion

satellites

messages back to

$8 billion inside of the ten

We
are
going to see major
changes in both the growth and
location of our industries. Except
for certain mass production in¬

and the

>

Research and development
ent

processing, or manu¬ ket them—and know all of those
facturing, or transportation, or things a little faster and a little
communications,
the
heart
of better than the other fellow—you
these activities will be an elec¬
might as well close up the shop.
tronic gadget or some sort. It may
Although electronic computers
be a microwave communications have taken the
limelight as far as
network or some process control industrial and commercial
appli¬
device, or foolproof airway navi¬ cations are concerned, there is an
gation, but you can be assured it even broader area of which the

people will have to make, but it
will take
the routine,
and the
drudgery, and the detail out of
what we are doing and enable us
to plan, to think, and to make
will be electronic.
computer is only a part. And that more sense out of the general di¬
To
sense
the possibilities,
all areh is covered by that one word rections in which we are going.
you need do is look at National "communications." I am speaking We won't have to
spend so much
Defense. There not only is equip¬ of communications in its broadest time
holding on for dear life and
ment which would counteract en¬ sense—using electronics to gather
hoping that everything works out
emy radar, but there are counterinformation at its point of origin out right as we rush from one
countermeasures to the enemy's and deliver it to the point where chore to another.
'
.*■'
This information
countermeasures, there are the it is needed.
Electronics will tie things to¬

President and Chairman of the Board,

;

5

It may be complex from the
standpoint of the information the
scientists will have to develop,

in mind food

And Benefits from Research

;

(657)

joined

our

firm

as a

Senior Partner
in

charge of

our

EASTERN DIVISION

have

thought existed before.

This is "administrative automa¬

the of¬
becoming just as vital a
tool
of
industry
as
increased
mechanization or automation in
tion"—and automation in

fice

is

the manufacturing plant. After all,

have the best engineering
manufacturing organization

you can

and

in

the

business,

but

unless you

Dean Witter & Co

vt1

14 WALL STREET,
San Francisco

February 1, J 959

Los

Angeles

NEW YORK 5, N. Y.
Chicago

Boston

Philadelphia

financial Chronicle

The Commercial and

6

about tions amounted

matching funds amounted to

A Look Ahead at the

Highway Piogiam
By BERTRAM D. TALLAMY*
Federal Highway

Administrator, Bureau of Public Roads,

Department of Commerce, Washington, D. C.

U. S.

Despite better than anticipated

,

Federal highway

progress, our

is said to face curtailment with fiscal year 1961 unless
Congress breaks the bottleneck with sufficient funds to keep
program

■

with the 1956 Act's authorization. In looking ahead Mr.
Tallamy offers these precautionary insights: (1) there is a
20- to 24-month lag between the conception of a project and
the construction contract;

-

(2) the Federal

slack at the crucial time when feasible

took

program

private enterprise decides to put a
new car or refrigerator or TV set
the market.
The new model

taken-up; and (3) now that the preliminary, or
tooling-up, period is Over we are in actual production at an
unprecedented scale at a pace' which can be maintained over
13- to 16-year period.

equipment

well take pride in

may

'heir contribution
we

have made

since

passage

of the Fed¬

eral

Aid

-

Act

Highway

of 1956. Their

accomplish¬
have

ments

note¬

been

worthy. Their
collective sup-

iiort of the
program has
bee n

Tallamy

D.

Bertram

including
well-informecl

testimony before Congressional
committees and

close cooperation

with the Bureau in matters affect¬

ing specifications and contractual
We appreciate these
efforts. We
appreciate also the
speed and skill with which they
have translated designers' plans
procedures.

mto

the

pavement and structures—on
System and on all

Interstate

of the

other

Federal-aid

systems.

Hints Progress

will

We

show

well

the

early stages. This was anticipated
and is not alarming.
Some states
had
a
backlog of plans either
ready for contract or requiring
only minor revisions on July 1,
1956.
They were at zero in the
count-down
with

while

others

Third, the Federal-Aid Highway
of

coincided

.1956

the

attractiveness

as

under Section
Aid

116 of the Federal-

Highway Act of 1956 and ina
comprehensive account

olves

the

all

taken.

the

the

cooperation

free to discuss

the

I

not

am

I
yet

information in

that report but—even on the basis
what is
already public—the

By

a

good one.

general

osbervations

highway

about

the

other

There

sources.

was

a

tendency among the general pub¬
lic, and even among some people
Vv ho should know better, to expect
President's

June

29,
956. In retrospect, it appears to
have been
a
rather widespread
rotion
that
mere
Congressional
riid

pen

Executive

greatly

expanded

on

approval of

highway

a

pro¬

to set the bullroaring off in all directions.

Well, of course it
simple. The reasons

funds,

time

an

conceived

construction
I;

Interstate

contract.

taken up by

the

ready
All

*An addess
40ih

Annual

for

of this

necessary pre¬

Beach,

by Mr. Tallamy before the
Convention

Contractors

Fla.,

Jan.

of

20,

in

of

Associated

America,
1959.




terms

of /available

was

far

So

mainly
that's

state

of

have

I

and

been

backward
excusable

but

looking

I

believe

the

understanding

on

of

what

before is essential to

has

gone

apprecia¬

an

tion of what is to follow.
The Bureau of Public Roads has

just

issued
a

report

a

total

nearly $11 billion
for
highways
during calendar year 1959. This

is

be

available

rise of 10%

a

over

the 1958 total

of $9.8 billion, and is
largely at¬
tributable to increased payments

Federal funds

under the

Fed¬

legislation of 1956 and
1958.
Capital
expenditures
for
right of way and construction are
estimated to exceed $7 billion, a
15%

increase

represent
all

Miami

as

for

more

direct

of

to

than two-thirds of

Federal-aid

systems,

1, the active

program

entire

of

1958, and will

highway expenditures:

the

Jan.

the

terms

over

United

Federal-aid

States
and

in

state

public

mind

-

as

.

; type

bituminous surfacing j 1,962
miles of bituminous surface treat-

separate from the problem we face
with respect to the reductionin
ment, 2,057 miles of gravel sur- authorized apportionments. v The
facing or graded and drained earth immediate bottlerrient is the pro¬
vision of sufficient funds to keep
road, and 1,336 bridges,
the program in pace with the au¬
• Revenues accruing to; the Trust
Fund during the fiscal years 1957 thorizations which were set forth
and 1958 totaled $3,526 million, or in the Act of 1956. In other words,
$41 million more than the original as the law stands, the apportion-?
ments authorized

,

Facts Will Be There

The
In

the

1961

Secretary of Com¬

will submit to Congress two
fundamental
reports which will

merce

.

have

Legislation enacted in 1958
vided

that

the

thorized for
and

1960

and

made

full

the

pro¬

amounts

au¬

fiscal years

should

be

1.959

apportioned
to

available

the

states

notwithstanding the provisions of

Section 209(g) of the Federal-Aid

a

ture

Apportionment of Funds

not in accord

are

with the Trust Fund revenues, in,
fact they never have been.

direct bearing

financing

of

One

program.

on

the

will

the fu¬

highway.?
the

present

latest detailed estimate of the cost
of

completing the Interstate Sys¬

tem.
the

The

second

will

set

derived

conclusions

forth

from

a

four-year study of highway user
taxes, direct and indirect bene¬

Highway

Act

of

1956

(the

called Byrd Amendment).

so-

Under

ficiaries

and

order

authorized

been

$1,106
aiid

billion

at

a

cost

of

in

preliminary

Federal funds,
engineering has
totaling $334 mil¬

-

general funds of the
to

be

to

liquidate the

incurred

Treasury in
obligations
these

under

ap-

the

tinue

to

i

m a

Repayment of any which

portionments.

program

the

with

pace

n

t

a

i

in

accordance
prepared
cooperation

are

you

n.

The

I mentioned earlier will be

in increasing measure in
determining the weeks arid months ahead.
In the past we have been given
Since July 1, 1956, a total of the amounts of Interstate funds
1,045 Interstate projects have been that may be apportioned for 1961 intelligent and forceful support to
the advancement of the highway
completed at a total cost of $944 and subsequent fiscal years.' ;
million, of which $731 million are ' As a consequence it appears, on program. I am confident that we
been authorized

Federal

funds.

The projects proimprovements on 3,159
miles of the Interstate System and
vide

for
1u

for

construction

of

amounts

2,087

struc-

res.

the

basis

that

Cites ABA Program
ABC

program,

.

likewise, is

progressing rapidly.
tions

since

amounted

ABC obiiga1,
1956, have

July

to

103%

of

the

pro-

jected goal. Federal funds totaling $2.1 billion have been obligated during this period, and

Construction has been

Million

The

are

special

corn-

Federal funds.

ment of

D
'

entire

its

allot-

funds under contract

a

project agreements

had been executed by Jan. 1,1959,
as

required

by

the

funds

the

year

1962

cannot*

■-

the

exceed

$500 million. Thenceforth the In¬
terstate
apportionment
would
range from $1.7 to $1.8 billion per

in accordance with amounts
estimated to be available in the

year

Need

Additional

Funds

Under the provisions of Section

209(b)

the Highway Revenue
1956, the Congress is responsible for keeping Trust Fund
Act

of

of

revenues

and expenditures

in bal-

As you know, the President
recommended an increase of

authorizing

one

and one-half cents per

this

gallon
gasoline tax to accomplish
and
to keep the

hig^^y

program at the authorjze(i level. I am not in a position
to forecast what action Congress

the

special

available for

funds

may

on a

continuation of this

b

St. Louis

Municipal
Dealers Spring Party

ST. LOUIS, Mo.—The St. Louis
Municipal
Dealers
will
Group
hold their annual Spring Outing
April 29, 30 and May 1.

George Burden, Boston
Mgr. for Blair & Go. >
BOSTON,

|t

obvious

that

additional

re-

became passage of the Act of 1956.
.

—

become

George

E.

associated

with Blair & Co. Incorporated, as
manager

State

of the Boston office, 50

Street.

Mr.

Burden

was

formerly local manager for John
Nuveen & Co.

John H. Jackson With

Wallace, Geruldsen
(Special to The Financial Chronicle)

Actually* the critical period in

1961.

There has been

CHICAGO, 111.—John H. Jack¬
son

some

has

Wallace,
West

become

associated with
Geruldsen & Co., 105

Adams

Street.

formerly

Mr.

Jacksoh

local manager for
'Company
and
prior thereto was manager of the
municipal department of the Chi-.
cago office of Lehman Brothers.
was

the

the program begins with the fiscal
year

Mass.

has

Burden

take with regard to the need
financing. However,

.

obligation, until Dec.
1, 1958, when the "D" funds were
fully obligated, the ABC obiiga-

count

support.

for additional

ceipts into, the. Trust Fund are reThis was accomplished without quired if we, are to continue the
delaying the ABC or Interstate program P at anywhere, nfear the
programs.
From April 16, 1958, pace we have maintained since
...

can

objective

legislation.

when

needed

Trust Fund for liquidation of the
Interstate program.
v
-<

in the

advanced

schedule and without delaying
the ABC or Interstate program,
on

Every state had

legislation,
apportion-

year
1961, and that
Interstate (apportionment for

tion

has

no

ance.

program

funds

be

fiscal

has

D

be

the

financed
from the $400 million authorizaot

must

for

advertised for
56,803 miles of highway construc¬
pleted
during
this
period
on
projects totaling 60,112 miles, at
a total cost of
$3.6 billion, of which

present

can

of Interstate

ment

contracts have been

tion.

of

there

fiscal

The

borrowed

so

taken into account in

lion in Federal funds.

estimating

of

the

has

total

a

local

ground
that what is past is prologue. An

As

General

dislocations indeed

in

reason

fund apportionment of $400 mil- General Contractors of America
lion plus $115 million in repay- and similar groups will be ac¬
able advances for the fiscal year tively sought by the appropriate
1959, and $900 million in - ABC Congressional committees.
I trust that such organizations
funds for the fiscal year 1960.
It will be necessary under pres- will carefully consider the pro-?
ent legislation to borrow from the posals which are advanced to con¬

at

eral-aid

project is

is

by
this

is tne
of fi¬
nancing — a problem with which
many state legislatures are wres¬
tling right now.

will

Two-Year Lag

until' it

1958,

programs. This, of course,
old and stubborn problem

that

First of all, there is an average
t'me lag of 20 to 24 months from
the

possible

and

greatly
accelerated
during the past two and one-half
years, there was no corresponding

of
a

of. 1956

roadbuilding industry.
;
Fourth, while the Federal-aid

obvious

although I believe it is Worth
while to examine them during this
critical
period in the advance¬
ment of the highway program.
Almost

made

in the

that

wasn't
are

it not been for

Had

problems and

gram was enough
ozers

up the slack left by
decline in toll road

program

Acts

programs

decline would have caused serious

construction miracles to flow from

the

for

the

projects during this period,
cost of $3.5 billion, of
which $3.1 billion were Federal
funds.
The projects provide for
improvement on 6,689 miles of the
Interstate System, including construction of 5,988 bridges.
In addition,
right-of-way
acquisition

2,522

'

—

both Federal-aid and that financed
from

take

acceleration

nationally

program

Federal-aid

program,

way of background, how¬
I would like to make some

ever,

a

sharp

the

virtually

feasible

financing had been
result, the Interstate

construction.

of

story is

As

to

the

toll roads

that

locations

other

had

harmonious

the

of

bond

revenue

and

new

simple fact
the

of

of progress under that and sub¬
sequent legislation. The story will
b2 a good one, we think, and one
testifying to the effectiveness of

mentioned earlier.

the

90-10 Interstate fund formula thai

spelled the end of

report to be submitted to Con¬
shortly. It is called for

with

drying up of funds for new toll
road construction, at least on any
significant scale.
It was not so

roadbuilding team has functioned
a

started

ten.

Act

confusion

—

among

in

gress very

».

Thursday, February 5, 1959

.

of the highway systems,
findings regarding the equi¬
the provisions of the Byrd Amend-, table distribution of existing high¬
been excellent
as a matter of
ment, apportionments of Interstate way taxes. Thus in 1961 the Con¬
will have basic material
fact, somewhat better than ariti- funds for any fiscal year are lim- gress
eipated. Speaking in terms of ob- iled to the amounts expected to upon which to base an intelligent
decision
as
to
the
appropriate
ligations of Federal funds, we are be available in the Trust Fund to
of
6%
ahead
of our goal for the 1 i q u i d a t e obligations resulting method
financing the longrange
Federal-aid highway pro¬
period since enactment of the from such apportionments.
As a result of the 1958 legisla- gram.
Federal-Aid Highway Act of 1956.
Therefore,
in
taking
a
look
During the two and one-half year tion, Interstate funds were apporperiod, Interstate obligations have tioned to the states in the amount ahead at the highway program,*
of $2.2 billion for the fiscal year the most important view is the one
amounted
to
$4,502 million, or
107% of the established goal. As 1959 and $2,5 billion for the fiscal immediately before us. I have no
a
result, about 76% of the 1959 year 1960. These apportionments doubt that Congress will come to
fiscal year -Interstate funds had of Interstate funds were in addi¬ grips very soon with the financing
tion
to
ABC
been obligated ars of Jan. 1.
apportionments of problems we face. I have no doubt
Contracts
were
advertised for $875 million plus the special "D" that the views of the Associated

progress

and

much

how

the

—

,

estimates. On Dec. 1 there was a
balance of $663 million in the
Trust Fund. However, this balance
will be, reduced during the reinto production.
The states have mainder of this year and during
gone through a similar or parallel fiscal 1960, since expenditures are
process in the accelerated highway estimated to exceed revenues in
program.
Now we're into actual each of these years.
•
*

among the
the various re¬
gions of the country in the ad¬
vancement of the program in its

states

in

ways,

many

designer's
conception.
It takes
months, even years, of planning,
testing, sampling consumer reaction, and all of the other preliminaries before the protoype goes

and design and the acqui¬
New tech¬

surveys

spring full-blown from the

doesn't

sition of right of way.

identical

i-

e v

denced

construction

to

on

such
as
the
electronic
progress niques
computer and aerial photogrammetry are cutting the time re¬ production on an unprecedented
quired
for c e r t a i n types
of scale and at a pace which can be ;
engineering work. Acquisition of maintained over a 13- to 16-year
right of way has been facilitated by period.
P'or example, the con¬
revamping old laws in some states struction contracts awarded for
which presented a time-consuming
projects to be paid for from Fed¬
bottleneck to highway depart¬
eral-aid
primary
funds
during
ments.
But no one has yet in¬
calendar 1958 exceeded by 18%
vented a magic wand that will
in number and 9% in value those
translate an engineer's idea into
awarded during the same period
construction plans ready for bids.
in 1957.
Second,
there
has not
been
Our progress
up
to now has

the

to

liminaries

the

tooling-up period when

necessary

bond locations

revenue

Pace

the end

reached

now

of what might be compared to

the

up

have

We

had been

The highway contractors as well
the suppliers of materials and

of the

113%

to

to

Sees 13- to 16-Year Building

pace

v

.

why the. highway
This included proj- projected goal and Interstate obects in the programmed, plans ap- ligations amounted, to 118% of the program is-due for a serious cut¬
back beginning in 1961 unless the
proved and construction stages, goal. c
/■
On the same date a year earlier v The special "D" funds arke Jjeing existing legislation is amended to
the active program totaled about .used almost entirely for construc- provide, a d d i t. bo n a I... revenues.
There lias been a lot of talk about
$7,033 billion. So we not only held, tion, with associated right of way
our rate of progress in
1958, but:, and preUminary erigineeHng^york the increased cost of the Interstate
raised the level of highway activi- financed with regular ABC funds, System arid a number of. people
have considered^ that % to be the
ties in the production pipeline by The program is substantial.;; Conreason why the program is threat¬
over
$2 billion. Actual Federal- tracts were advertised on a total
aid construction underway as. of? of. 12,136 miles of construction, for ened during the next two-fiscal
This, of course, is a mis¬
Jan. 1 was $6,197 billion, a 49% ; 7,823 miles of high-type bitumi- years.
rise over the previous year.^^^te'.-'ndus or Portland cement concrete conception. The increased cost of
,'■ /'-..v.v;paving, 266 miles of intermediate- the program is a problem, entirely
$9,244 billion.

.

as

.

(658)

Milwaukee

Volume

189

5818

Number

.

The Commercial and Financial Chronicle

.

.

took over in 1953 when Mr. J. D.

and Poicine

COBLEIGH

U.

IRA

DR.

By

An

article

"

meat

^

v

,

It

seems

•packing

meat

that

paradox

a

has

,

,,

consistently

been

a

.^feast or famine" business; with ?
the
profit famine occurring when
the companies
the

had

meat

most

in

in-"

ventory.

began 60

show

$4

years

became

-

*•':

a

try,

to
'the
great
slaughter

U.

Ira

^;he

" But

There

of

live

not

evenlv

great

bulged

was

'were

Utile

pigs, but full grown pigs "came to
market"

Thev

in volume

arrived

in those months simply because it
takes six months to raise a pig to

maturity, with Spring litters be¬
coming full grown in November,
•and Fall litters in February

of meat
;

(50%

all

meat

low of $609

well

for

or.

to

cheese and in
as edible' oils,

companies
with

a

lucky to
half cent profit
are

packing and processing

created

economic

an

by-products

and

year

a

ended Oct. 31,

plant in England." $3.10

sales

of

a r

-

in between

'these

sTr

to
to

And,

on

•

:

«

J

'

panfes
ove
to keep
-slaughter houses running often by
bidding against each other for
:hogs

and

Targe,

frequently

and

which

'inventories

;sion,

to

had,

sold

be
If

Tosses.

acquiring
unwieldy,

thus

cattle

on

prices

pieat

cycle

cattle

(The

it

1958, Wilson

nual

to

a

beef to

of this

All

.

grow

has

been

u.

ho

these

dollar

the

with 40 offices

April

the

at

3,

to

Mr.

New

York

"

Last

July, Mr. Limbert resigned
Vice-President, director and
of the Executive. Com¬

as

of

been

Assistant

elected

Vice-

Incorporated, 120 South La Salle
Street, members of the New York
and Midwest Stock Exchanges.

of New York.
ter

Co.

&

known

in
of

rector

which

in

10,200,000

PHOENIX, Ariz.—Formation of
firm of Van
Cleef, Jordan,

the

investment
offices in the

with
First National Building, has been
announced by Van Cleef, Jordan
and Wood of New York, and Ha-

Much of the interesting forward t juncture? Well, first of all it inmotion we mow see in Wilson & creased its per share net from
Co., Inc. stems from the talent and $2.19 in 1957 to $3.10 for 1958.
of new management which There appears to be some reason

S.

zen

new

an

offer to sell

or a

Street

as

an

January,

shares

1956,

of

fering

on

Austin
Dean

York

ited

Brown,

Witter

&

who

Co.'s

partner, will become

partner, of

work

the

offer to buy these securities.

Kingdom of Denmark

trying to

5V2% Fifteen Year External Loan Bonds of 1959

emphasis not on

volume

business

of

Dated

Due

February 1, 1959

February 1, 1974

For

-

:

example, Wilson has moved
slaughter houses away from
Chicago and nearer to the farms
where the livestock grow.
This
assures a larger supply of animals
at
cheaper
prices.
Further
it
saves
a
great deal-in money in
transportation costs since the
its

animal doesn't

whole

to

have

OFFERING PRICE

be

finished
sents

the

products.

Meat

97}4% AND ACCRUED INTEREST

Copies oj the Prospectus may be obtained in any State

shipped nearly so far; and most of
the transportation paid for is on

undersigned and others

only jrom such oj the

lawfully offer these securities in such State.

as may

repre¬

only about 50% of
of beef on the hoof.

totally

weight

Wilson

&

Co.

has

10

domestic

slaughtering, packing and process¬
ing plants plus a number of other

Smith, Barney & Co.

Kuhn, Loeb & Co.

by-products and dairy plants.

'

Traditionally

in

packing

lepartment to go out and sell the
neat that the manufacturing de>artment
had
slaughtered
and
tnd
nore

hat

At Wilson & Co. selling

manufacturing

efficiently
slaughtering

have

-

been

coordinated

is

more

so

accu-

atelv tailored to the quantity and
:ind

of

meat

products that;




Harriman Ripley & Co.
Incorporated

Lazard Freres & Co.

com-

>anies, it has been up to the sales

irocesed.

*

can

The First Boston Corporation

Union Securities & Co.

Eastman Dillon,
.4

*

'

"

'

-

1

: February 5, 1959

;

.

_

'

«

Blyth & Co., Inc.

Kidder,Peabody&Co.
'

a

firm'

back¬

running
through
its
slaughter
houses, but on profitability.

been

has

senior New

$20,000,000

peaks and val¬

Motor

record.

offering is made only by the Prospectus.

for

offered

Ford

-ISSUE

NEW

di¬

the

underwriting; group

Feb. 1.

Arnold, Jr., of Phoenix.

solicitation oj

Dean Wit¬

especially

is

$657,900,000, the largest stock of¬

Wood and Arnold, Inc.,

counsellors,

the

a

Bond Club

Company stock in the amount of

Counsel Firm in Phoenix

oomnanv

The

partner
Wall

and

Dealers,

Security

past President of the

President of A. G. Becker & Co.,

m

The

-

America; past Vice-Chairman and
Governor of the National Associa¬

CHICAGO, 111. —John D. Kipp
has

sold $15 million in debentures which should make unneces-

This advertisement is not

14

office,

member

tion

substantial que to tne historic performance of packing
performance of packing
shares in general
what
v""^
company shares in general, what

■V

New

York

Lim.bert

M.

Wall Street.

Kipp Asst. V.-P.

pany

one,

years

is by way of

major

place

x

from

ters

t!?e A. G. Becker Names

manufacturer, and
dis-' balance sheet were over $80 miltributor of sporting goods, r Con- lion, and over four times current
siderable money has been spent liabilities.-In July 1958 the com-

greater amount of leisure time en-

E

Limbert will make his headquar¬

$24,455,000 in

leading

plant rehabilitation in recent
years and this sporting goods di-

dity
changes,

c o m m o

1959 at The Waldorf, George A.
mittee of Blyth & Co., Inc., with
Searight, Searight, Ahalt & O'Con¬ which firm he was associated for
nor, Inc., and Elbridge H. Smith, 36
years. He is a past Vice-Presi¬
Stryker & Brown, are Co-Chair- dent and Governor of the Invest¬
men. v \ ' ■' ;
" / T .■
ment
Bankers
Association
of

an4..|.iWils6n .Athletic Go'odg of $4.25 cumulative preferred
Mfg. Co., the y; company is the stock. Current assets on the latest

leys in the packing business, and
to

Friday,

and

stock

up.)

hard at

out

on

Ex¬

Hawaii.

Through Wilson Sporting Goods ,lohg term debt and 192,300 shares

ground to introduce today's topic,
Wilson & Co., Inc. This company
i flatten

of

Security Dealers

Dinner

York

change and all
other
leading

less

hog

the

three

takes

look

and
mem¬

Stock

American
include, more meat
the

in

bership in the
New

average

From

of

one

America

too

got

been

has

than

troublesome

diet.

is

holds

occa-

high,
consumers
reduced
their
buying, and a drought could dis-rupt the whole system. In general,
meat
packers thrive when they
can buy their cattle cheaply, and
when broad general prosperity as-~
sumes
heavy consumer demand.

because

for

and

Eastern

largest

distressing

at

-

the

The New York Security Dealers
Association will hold its 33rd An¬

each of the 2,240,510 com-

|a^t°rom^liiy Ssfyelfr• & ? ®'£?Ws co™mon jf
balance sheet- by

firm

higher

the fact may
by respect for
efficient man¬

33rd Annual Dinner

^ed b" "earl?
a"d the sThe eXedafattrLfSn o? WUson
thSr "sing per capita, income,
& Co. common at this particular

funs

peak

the

store
sio

be sold.

until it could

meat

his

NY

These foreiSn assets are probably mon shares outstanding. This is
worth $14 million,/;though they comfortable coverage for the pres
^end °f $1.40 per

ollnl)M

required
requir a

were
we e

to

every

amounted

and

firm's

Lee

up

1.1%

Zealand

sells

now

and

operation. The

considerable

things, the 12,200 stockholders of
Wilson & Co., Inc., are going to
live higher on the hog than they
have for a long time!

nbieT tteVr
KTtTisks finmcing
•rivEtf Sand .1 a r g e
gl^refrigeratfon lo'1ger run' grow;th Qf his section,: Now considering the erratic
rival,
and 1
refrigeration
historic
plants
piants

the

in

earned $7,760,000 which was about

New

and

a

Most

come
on

accounted

competent

consumer

The whole problem in the meat
packing industry has been in increasing the profit margin.

it

ability of

a

loss.

&

affords

banking

agement, a sharply rising earn¬
ings'
curve,
and
the
financial

million (1956)

Cereals;_

Wilson

joined the
broker¬
age firm of Dean Witter & Co. as
a senior partner in charge
of the

investment

Fur¬
33 V2 is

than for many years

a

a

stock

at

common

Limbert has

Lee M.

logical.

appear

leverage. ' If

out

be

from

on

packing is in pigs).

This

flattened

been

tralia

Laonmo

e

NoTemtbr^when? not

and

The

of its major fluc-

some
have

plants in Argentina, Brazil, Aus-

Cobleigh

arrival

Chicago

in

spaced.

that

meat,

butter,
by-products

elude meat

,

Smous

Wilson

growth company. Net sales have
swung during the past six years,

large business in poul-

for

f,

Historically Wilson & Co., Inc.

ther,

shortenings/ gelatin and pharma- dollar of sales. Wilson & Co. does
ceuticals. Foreign subsidiaries in- much better than that. For fiscal

of

miles away

stock

a

eggs,

such

in from farms

houses

in self-service

.

a

business

retail

similar To

Co. does

pouring

hundreds

done

now

the

/In addition to

of

lives tock
came

of

known brands of coffee

center and
trainloads

40%

•

would

it is not- yet ready to qualify as

the-popular
packaged meats since

demand for

ence

railway

great

Co?

along with

' ' •

...

per

dend

j;-has been a cyclical company, and

.

In Dean Witter & Co.

selling at 11 times current earn¬
ings, an exceedingly low ratio.

' ;

a

for. 1959.

another increase in the cash divi¬

high of $684 million (1958).
markets. Wilson is building up its/ Curiously
enough the* year 1952
name so that it may, in due course,; showed,' the
highest
netsales,
attain a popular consumer prefer-:
$71^%t million, yet resulted in a

when Chi¬

cago

going

year;
able to
share net of above
If that takes place,
be

may

is

.

-

At the retail level Wilson &

js

is

It all

ago

•*'

Lee Limbert Partner

the hoof this

1957.V

.

....

.,

on

Wilson

a

be profitably sold under varying though
market conditions. -"''0 'MrT-i tuations

over

L

•'

.....

,

lower

that

so

profit in every year since,
due, in part at least, to
improved controls over costs and
inventories.
It outperformed all
the other major meat packers in

a

packer, and largest manufacturer of sporting goods.

*

T.

money.

expect both hogs and cattle to

shown

•

"

v

lost

company

In 1952
It has

which

\

few comments and statistics 1 about the
business and about Wilson & Co., Inc., third largest meat
packing

sell

the

•

5

*

!';V

Enterprise Economist

to

Cooney became President.

Proiitabiliiy

7

(659)

Dominick & Dominick

White, Weld & Co.

'

lim¬

as

of

8

The Commercial and Financial Chronicle

(660)

A Strong Cafe
For Cumulative

National Bank,

First

minal Annex,

Dealer-Broker Investment
Recommendations & Literature
It is understood that the firms mentioned will
to

send interested parties

be pleased
the following literature:

Street, St. Louis 1, Mo.
■

are

Slacks—Analysis

Atomic Letter No.

outlook—Bacne

of

&

Co.,

Wall

86

45—Commenting

on

effects of AEC grants

colleges and universities, on radiation instrument industry,
and discusses Salem Brosius, Inc.—Atomic Development Se-

^ curities Co., Inc., 1033 Thirtieth Street, N. W., Washington

7, d. c.:
:t\ Burnham View — Monthly Investment letter — Burnham and
/
Company, 15 Broad Street, New York 5, N. Y. Also available is current Foreign Letter.
,

•

-

Business and Money—1959 review
'"

and

outlook—Harris Trust

Savings Bank, Securities Analysis Department, 115 West
Chicago .90, 111.
Business & Securities—Review—Shearson, Hammill & Co., 14

Aircraft

Beech

Industry—Report—Reynolds & Co.,
N. Y. Also available is a report

Electric Company.

New York

of largest common stock holdings—Thomson & McKinnon, 11 Wall Street, New York 5, N. Y.
Than

a

Decade

—

Stocks traded

on

industrial classifica¬
which have paid dividends for 10 years or moreAmerican Stock Exchange, 86 Trinity Place, New York 6,
tion,

&

Extraordinary Popular Delusions and the Madness of Crowds—
Charles Mackey—with a foreward by Bernard Baruch—L. C.
Page & Co., Dept. 16,101 Fifth Avenue, New York, N. Y.—$7.

Broadway.

1959—The Year Ahead—Discussion with

some

lists of selected

.

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial
stocks

Averages, both

as

to

yield and market performance over a 20-year period
National Quotation Bureau, Inc., 46 Front
Street, New York
4, N. Y.
Saxton &

du Pont

Ontario

Cement Co. Ltd.—Bulletin—R. G. Worth &

Common

Stocks—Comparative figures—G.
Co., Inc., 52 Wall Street, New York 5, N. Y.

preferred stocks sell high.
gets tight and inter¬
est rates high, these CumulativePreferreds go down in price. This

Co.,

ferreds

Memorandum

more

—

Hirsch & Co., 25 Broad

Pauley
640

February "Investment Letter"—Hay-

utilities.

Pfaudler

Inc.—Analysis—William R. Staats
Spring Street, Los Angeles 14, Calif.

Permutit

Inc.—Analysis—Strauss,
Inc., 115 Broadway, New York 6, N. Y.

Reichhold Chemicals

Ltd.

—

Memorandum

Ginberg

—

Co.,

household

&

Co.,

&

Co.,

stores of all cities pay

for the ad¬
vertising to increase sales of elec¬
tricity. The kwh of the nation are
published each week. Study these
if you doubt my forecast.

Corporation—Bulletin—De Witt Conklin Or¬

Also available

Refunding Issues—Bulletin—New York Hanseatic Corporation,
120 Broadway, New York
5, N. Y.
Selected Securities—Stocks in various categories which
appear
attractive—E. F, Hutton & Company, 61
Broadway, New
York 6, N. Y.
*'
■
>

Preferreds for Profit '

Buying

Real Estate Bond and Stock

Cumulative

Good

bought

NSTA Notes

38, N. Y.
ITA

vs

STAN Y BOWLING

The

now

MATCH

bowling match between the Investment Traders
Association of Philadelphia and the Security Traders Association
of New York will he held in Philadelphia on Thursday, Feb. 26.

The

In

Investment

Trader's

OF PHILADELPHIA

Association

of

Philadelphia will
Friday, Feb. 27,
1959, in the Grand Ballroom of the Bellevue-Stratford Hotel.
The President of The National
Security Trader's Association,
Lester J. Thorsen, Glore, Forgan & Co., Chicago, will address the
guests.
hold their 35th Annual Mid-Winter Dinner

or

financial institutions only

Preparation, A Brochure On:

on

The Member-Guest Luncheon will be held at

show

a

and down in cycles, as do

up

go

common

stocks

When money is

12:00

and

commodities.

again cheap, these

Preferreds

Cumulative

l

Preferreds

later

may

profit in addition to their near5% income yield.
Money rates
will not always remain high. They

annual

INVESTMENT TRADERS ASSOCIATION

to

both

short, the electrical industry need
not advertise, but can let Sears,
Roebuck and the department

&(

Co., 72 Wall Street, New York 5, N. Y.

Averages-—Comparative figures—
Amoit, Baker & Co., Incorporated, 150 Broadway, New York

toasters

In addition,

are in their infancy.
Great
growth for these lies ahead. In

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

A.

from

aids

sets.

ing

Model Roland

ganization, 120 Broadway, New York 5, N. Y.
is a bulletin on Zale Jewelry Company.

electricity

electric heating and air condition¬

Standard Fruit & Steamship Company—Analysis—H. Hentz &

United-Greenfield

for

Demand

constantly growing, due to the
frantic advertising of electric
television

Petroleum

::

industry

is

Street, New York 4, N. Y.

South

Pre¬

bought at a
to 15% or

10%

growing, probably
today is the
generation
and
distribution of
electricity — that is, the electric

Steel, Thatcher Glass, Alabama Gas and Lear Inc.

25 Broad

these

be

fastest

safest

the

den, Stone & Co., 25 Broad Street, New York 4, ,N. Y. Also in
the same circular are data on Unilever N. V., Eastern Stain¬
less

of from

below par.

The

Street, New York 4, N. Y.
National Tea—Data in the

now

can

discount

of

most

that

means

Street, New York 5, N. Y.
—

Stocks,

When money

Minneapolis Moline Co.—Analysis—Blair & Co. Incorporated,
20 Broad

<

good-quality

of

Preferred

such

Inc., 160 Broadway, New York 33, N. Y.

Minute Maid Corp

stocks go down.

however, depends upon the money
market.
When money is cheap,

& Co., 1 Wall

New York Air Brake Co.—Memorandum—T. L. Watson &

securities—Schwabacher & Co., 100 Montgomery Street, San
Francisco 4, Calif.
Over-the-Counter Index—Folder showing an up-to-date com¬

used in the National Quotation Bureau

Report—Harris, Upham & Co., 120

Review—Francis I.

—

majority

or

price

Cumulative

investors.
Lake

Stocks—Comparative figures at Dec. 31,
15 Broad Street, New
comparison and anal¬
stocks—Laird, Bissell &
New York 5, N. Y.

The

Street, New York 5, N. Y. Also in the same bulletin are a re¬
view of United Artists Corp. and selected portfolios for new

New York.

1958—The First Boston
Corporation,
York 5, N. Y.
New York
CRy Bank Stocks—Year-end
ysis of 13 New York
City bank

more common

Broadway, New York 5, N. Y.

etc.

Japanese Oil lndustry—Discussion with particular reference to
Mitsubishi Oil Co., Sliowa Oil Co. and Maruzen Oil Co.
Normura Securities Co. Ltd., 61
Broadway, New York 6, N. Y.
Japanese Stocks—Current Information——Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

Robbins & Co.,

— Analysis—John
R. Boland & Co., 30
Street, New York 4, N. Y.

Johns-Manviile

to

tired of waiting
for stocks to go down, they buy.
The more impatient the
buyers
are, the more common stocks go
up. The more impatient the peo¬
ple desiring to sell become, the
optimistic,

are

Corporation—Analysis—Auchincloss, Parker &

—

act

When

facts.
the

Company—Analysis—McLeod, Young, Weir &

Company

the

of

feel, not
cording

Babson

Roger W.

Products Inc.

Grand Union

Fancy—A discussion of the stock market in the Febru¬

issue of "The Exchange"—Exchange Magazine, Dept. 7,
TB-13, 11 Wall Street, New York 5, N. Y.—20c per copy;
$1.50 per year. Also in the same issue are articles on "What
..Every Wile Should Know"; "Chemical Build the Future,"

Utility

Whipple

Redpath, 52 Wall Street, New York 5, N. Y.
Granco

p o

They
buy according
'to
how.; they

Street, Newark 2, N. Y.

Time

ex¬

people.

Gilbert Corporation—Analysis—C. D.

General

d

s

mainly
n. the

moods

Company, Limited, 50 King Street, West, Toronto, Canada.
744 Broad

k

c

pends

■ /.

General

price

c om.m on

sto

:u

reason

The

of

Co., Incorporated, 225 East Mason Street, Milwaukee 2,

Wis.

ary

Public

•is:

Co., 135 South La Salle Street, Chicago 3, 111.

&

;

The,

;

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

Broad

New York.

120

now buys the
•right stock for

income.

Soya—Memorandum—Paine, Webber, Jackson & Cur¬

the

American Stock Exchange, arranged by

Meeds,

—

6, N. Y.

Consumers Gas

lation

New York City Bank

Review—

Broadway, New York 38, N. Y.
Review—du Pont, Homsey & Company, 31

Street, Boston 9, Mass. Also in the same circular are
data on Chain Belt, Interlake Iron, and II. S. Industries.
Celotex Corporation—Annual Report—Secretary, Celotex Cor¬
poration, 120 South La Salle Street, Chicago 3, 111. " \
Cenco Instruments—Review—Ira Haupt & Co., Ill Broadway,

120 Broadway,
on Philadelphia

Common Stock Holdings of Leading Investment Trusts—Tabu¬

vs

Steel Cor¬

—

Milk

Central

personal

my

Consolidated Water Power & Paper Company—Analysis—Loewi

Toronto, Canada.
New York 5,

Fact

in

Although,

opinion,
the chances are
now
against one who buys common
stocks for profit, these
chances
favor one who

& Development Corp.

Cluett, Peabody & Company, Inc.—Analysis—Bacon,

'/Wall Street, New York 5, N. Y.

Dividends For More

and Wheeling

BABSON

By ROGER W.

Neu & Co.,

Oscar Gruss & Son, 150

Canadian Agriculture in 1958—Review—Bank of Nova Scotia,

Cigarette

■

poration.

and

Monroe Street,

.

Company, Singer Manufacturing Company, West¬

Atlas Consolidated Mining

to

;

'

•

*

•

■

Maryland Railway Company

ern

N« Y#

3NTcw York 5

I

Refining Company—Data—Oppenheimer,

Resistance
Street

■

Broadway, New York 5, N. Y. Also in the same circular
data on General Dynamics Corporation, International

120

"

Airline

Prefeited Stocks

•

Atlantic

1959

Thursday, February 5,

.

.

California Business Conditions

— Review—Security
Research Department, Box 2097 Ter¬
Los Angeles 54, Calif.
Supply & Demand for Investment Funds for 1959 — Study—
Salomon Bros. & Hutzler, 60 Wall Street, New York 5, N. Y.
Taxability of Dividends Paid in 1958 on various investment
funds—Tabulation—Taussig, Day & Company, Inc., 509 Olive

Southern

.

should

again sell higher. That may be
the time to sell them, and invest
in good common stocks when they
are

low.

is

There

also

another

reason

why these Cumulative Preferreds,

selling in the 80s, will again
Very few new
be put out at present
low prices.
Those already issued
will gradually
be absorbed. As
they are absorbed, and perhaps
called, prices will recover. This
will be encouraged by both the
corporations and the investment
bankers
who
are
now
loaning
these corporations money, await¬
ing a time for issuing tnore stock.
now

sell at par or over.

noon.

issues will

Air
The

Express International Corp.

largest forwarder, clearance broker and

con-

solidator of international
cargo with a network
of 278 offices and
agents

throughout the world.

"FOR SALE7'
122-Bound Volumes of the
COMMERCIAL

&

FINANCIAL

CHRONICLE

Hence, I repeat that the

From
Jan. 1, 1929-Dec.

Troster, Singer & Co.
Members Netv York

74

Available

Security Dealers Association

Trinity Place, New York 6, N. Y.




Teletype ny 1-376; 377; 378

or

—

well

REctor 2-9570

Edwin L. Beck, c/a Chronicle,

25 Park PL, N. Y. 7

of

electric

nies selling

immediately in N. Y. C.
Phone

Cumulative

favor

Stocks

31, 1957

near

Write

HAnover 2-2400

now

the

as

on

compa¬

a

—

as

safe income of

Readers need not fear

movement

ownership.

1

power

higher in 1959

paying

5%.

chances

Preferred

common

toward -municipal

This may 3>e bearish
stocks 4>ut

i.cumulative; preferreds.:

-

not
■■

on

'J

.

Volume

189

Number

5818

.

The Commercial and Financial Chronicle

.

.

(661)

An Investment Banker Reflects

His Modern Role in the

on

Economy

By JAMES J. MINOT*

the family not now in the business
own stock
and want to diversify,
In

addition

like

to

would

company

worth?

company

Mr. Miriot's candid, practical
insight into investment banking

many

contains his views

or

what competitive

on

the

retire

$3,000,000 of bank
debt. Let's say the book value is
$10,000,000. How much is such a

Senior Partner, Paine, Webber, Jackson &
Curtis, Boston, Mass.

,

$20,000,000; Earnings after taxes,
$1,000,000; collateral branches of

bidding has done to the
purchaser and provides a
brief description of the
operations of an investment banking
syndicate. He explains why a capitalistic economy requires

Depending

on

things, perhaps $15,000,000

15 times

earnings.

old stockholders

shares

and

receiving 600,000

selling

120,000

new

know not much can be
Options and
similar

we

aside.

do

possible

but

make

at

and with greater
I
believe
that

probable

that

panies

increasing risks
difficulty,
it
is
entirely

there

several

are

General

as

com-

Electric

or

&

T.

who

will

start

new

richer than
ecutives.

of the chief

any

Is

it

ex-

investment

an

function

men

started?

companies will become richer than their

former chief executives; and credits
capital gains for providing
a real incentive to build a new
company.

will

pay
for the legal and ac¬
counting services, perhaps $50,000$60,000. Our "Spread," that is the

investment bankers who set aside

difference

numerous

So

long

tinues

banking; points

es

on

our

new

their

out that young

economy ; con-

capitalistic plane, we

a

must have investment

equivalent,

bankers,

The

title

is

and

has

main

misapprehen¬
of

bankers

word,
they
do

phases

the

and
not

their

own

ac¬

James

J.

and the

cial

banker;

he

cannot

receive

people's money, hold it for

their

account
or

repayable

time,

on

on

pay

and

in¬

He can, and
usually does,
hold credit balances for his clients
ONLY while
awaiting investment

if

can,

only

when

vested.

at

all,

interest

pay

the

money

many

In

cases

is

rein¬

he

interest.

leave

their money
with invest¬
bankers and stockbrokers?

Usually

"it

to

the

is

left.

solution to this question

is

investment

car

not

money,

fur coat

a

or

money."

Distinguishes

Stockbrokers

From

the

two:

investment

bank¬

buy for their own account as
principals to resell for their own
account just as quickly as
possible,

a

execute

orders

charge

commission

instruction

on

commission.

a

This

is

strictly regulated
York,
Midwest,
American, or other Exchanges. In
the case of Over-the-Counter se¬
by

the

New

curities,
well

the

commission

the

difference

stockbroker

banker

is

is

in

or

not

common

for

become

However,

well

so

and

between

defined.

accepted

security

many

se¬

investment

an

It

practice

firms

to

deal

Over-the-Counter securities

on

a

principal basis and buy and
sell at net prices.
Parenthetically,
this is done also

to

limited

a

ex¬

tent by certain non-member firms
on

ber

listed securities, and by mem¬
firms also on certain bonds

and preferred stocks.

technical
The

and

not

investment

This is very

too

and

ended

entirely

of

banks

that

they

important.

banker

in

his

for

Shortly
and

everything

weevil, he has again be¬
respectable and many men

entering the business. Actu¬
a man, later to
become one

our

the

partners,

Harvard

1937 and

*

An

with

came

fessor told

graduated

Business

in

His pro¬

him, in effect, that he

address

by

Mr. Minot

Investment

Outlook

Meeting,

olis,

Jan.

before

1959.

Minn..

from

School

us.

16,

the

Minneap¬




deal

in

be

the

SEC

competitive bid¬
in most

mandatory

How has it worked?

It

has,
opinion, resulted in the
selling Public Utility or Railroad
in

will

be

20%

for

to participate

then

have

we

selling

a

group to whom we allow 75^ This
v'
'

a

brief description of
banking syndicate.

very

an

investment
Praises

Why
we

Capital
do

have

Gains

Incentive

that as long
capitalistic society

as
we

bankers,

or

their equivalent? In our complex
civilization aggregations of capital
be

mobilized

effective.

business

to

be

fully

While the father to

son

continues, eventually in

where

it

is

successful

enough, outside capital must come
in, or else the business is likely
to dry up. The cliches, "nothing
succeeds like success," and "if you
don't grow you die,"
are
more

true

today
as

m,

The

than
give

build

to

-r>

•

a
a

i

x

Capital

men.

new

like

our

no

the

for just this

However,
has

made

as

it

who

an

for

there

are

some

Rockefellers

have

compa¬

purpose.

after

the

initial

company

the / investment

grows,

~

banker performs his services both

and 0
ee some °i the front
caPital on a capital gains basis. In
experience most small

my

com-

panies start with personal savings
of a
few
thousand
dollars plus
family and friends so that total
initial capital is perhaps
$100,000
land

the

No matter how large the

a

of

many

great opportunity
and
millionaires are constantly

Mr.

Trippe is

now

&

receiving a higher net price in a
favorable market and a lower net
On

in

unfavorable

an

This is

market.

not an

member of

a

there
has

until

been

the

1945.

with

staff, remaining
Since 1945, he

Diamond

Parker

banker

to

become

a

too

the

and

Corps from 1944 to 1946.

_

D. A.

Fitzgerald With
Ripley Co.

Harriman

David A. Fitzgerald has become

associated

.

With Walston & Lo.

&

(Special to The Financial Chronicle)

New

CHICAGO, Ill—Blanche Biahut
joined the staff of Walston bond

has

& Co., Inc., 201 South La Salle St.

with

Harriman

York

City,

trader.

as

He

a

was

battle

wits.

of

Time

any

of such

The Southern Company

is

short to examine at length.

Passing

the

to

on

negotiated

deal, how is it done?

There

Common Stock

may

be 100 investment bankers in this

country who will
deals

more

shall

month

a

is

It

manager.

average

of

as

(Par Value $5

or

one

per

Share)

syndicate

this

I

group

speak.

Investment
All

firms

tional accounts who

Price $35.50 per

Syndicate

Banking

these

have

share

tradi¬
to them

come

regularly

knowing they will get
satisfactory service. Competition
keeps

price

close

and

limits.

"spread"

New

Copies of the prospectus may be obtained from any of the several under¬
only in states in which such underwriters are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.

within

accounts

writers

come

largely through commercial banks,
smaller

investment

dealers

who

have not got the facilities or capi¬

tal, attorneys, accountants, people
just plain walking
in,
and
of
course,

the result
of possible

as

solicitation
I

will

use

example.

our

We

function

partners

the

and
the

who

Here

Cities, and in Chicago,
Angeles and other centers we
being able to

on

independently, using entirely
banks,

attorneys

countants for

and

The Johnson, Lane, Space

visedly
today
D

&

Drugs
I

both

as

is

Elec¬

name

businesses
with

owned

and

the

use

popular
E

by

ad¬
are

investors.
one

Incorporated

F. S. Smithers & Co.

now

in

of

the

his

present President
forties. Sales,

middle

Baxter & Company
J. A.

Hogle & Co.

family,

having been started by the grand¬
father

McDonnell & Co.

Corporation
Stroud &

Sutro Bros. & Co.

Company

Incorporated

take

tronics, Inc.

Pressprich & Co.

G. II. Walker & Co.

Shields & Company

Johnston, Lemon & Co.

local market.

Let's

R. W.

Erancis I. duPont & Co.

ac¬

local issue for the

a

Bear, Stearns & Co.

in

Twin

pride ourselves

Equitable Securities Corporation

both
team

a

associates

business.

'

an

as

in

Securities & Co.

Blyth & Co., Inc.

prospects.

New York and Boston with
of

direct

of
firm

own

Eastman Dillon, Union

February 5, 1959.

Burnham and

Company

The Ohio Company

corporate

formerly

with L. F. Rothschild & Co.

has

It

Ripley

Co., Incorporated, 63 Wall St.,

1,300,000 Shares

unsatis¬

purchaser.

staff of

sity. He served in the U. S. Marine

balance, therefore, it has, in
opinion, not been a good thing

factory

Gardner

joined the

for

vestment

1936

Corp., most recently as Financial
Vice-President and director.

offering of these shares for sale, or an offer to buy, or a solicitation of an offer to buy,
shares. The offering is made only by the prospectus.

the seller. It has unquestion¬
ably been unprofitable to the in¬

In

graduation.

upon

ter graduation from Yale Univer¬

W1th the investment firm of Ladenburg, Thalmann & Co., 25 Broad
J- ew Yo;City, members
the New York Stock Exchange.
,wa|„.
™1 *?, ^en?!evI
York office of The Northern Trust
,

Co.

he joined Morgan Stanley & Co. as

associated
„T

Co-

from

.

graduated

was

Princeton University in 1932 and
became associated with Bonbright

Mr.

Trippe Joins
Ladenburg, Thalmann
James

Hall

Morgan Stanley & Co. in 1950 af¬

James

...

Parker

i.awrence

rx.

Douglass Hall and H. Lawrence
Parker as general partners, effec-

coming into being.

x

largest

longer

Douglass Hall

then

success

to raise new capital for expansion tive Feb. 1, 1959.

company.
t

of

are

in-

real

very

n

Presidents

corporations
rich

ever.

compared to regular in-

still

centive

known

Whitneys

capital

capital,

and under. This continues to be

I say

a

must have investment

must

well

pools of

certain

are

and

purposes,

our

account, or 64,000 shares at
$1,660,000. We invite other

15%;

venture

their

of

and

down to as low as perhaps
1,000
shares. We charge a management
fee for our services of typically

is

however, there

portion

a

to help such
Fundamentally

my

local

ally

in

at

$430,000.

perhaps

gains

caused

to

cases.

act

boll

are

even

cannot

afterwards

ICC

ding

the

of

and

of

Unprofitable Competitive Bidding

from "hoof and mouth disease" to

come

field

buy

we

—

come

Los

period in the 1930s when
blamed

the

bonds.

revenue

After

a

in

finance

field

legislation
participation

the

municipal

understand

was

ex-

remedial

exceot

modern role dates from just about
the time I entered this business.
he

this

frightful depression of the

1930s

in

of Over-the-Counter

case

curities
a

has

standardized.

in

important

very

take

cases

The

usually almost simultaneously.
Stockbrokers act only as AGENTS
to

Commer¬

participated

to

ers

and

industrials.

tent,

my

Bankers

will define the difference be¬

tween

railways,

sell

we

or

investment bankers

In

street

many

banks

price

Investment
I

stock¬

investment

money

be confused with

new

people

with

with

that

own

is,

do

rather

than

bankers

My

Why

is

it

brokers

25

what

"no,"

nies

$1.50,

in all

are

commodities.

never

pays

ment

We

business, including

and

new

business

de¬

terest.

and

and

concerns.

of the

including

Minot

other

mand,

its

early days investment banking
largely concerned with fi¬
nancing railroad, public utilities,

Today

a

with

Boston, another in

own

was

banker cannot
be

I

between

what

and

We

my

investment

an

stockbroker
in

municipals

invest for

count.

and

office

brokerage

meaning

of

and

diversified investment banker and

the

usual

formed

employ of Jackson &

Springfield.
In, 1942 we merged with
Paine,
Webber to found one of the larger

at

within

at

about

medium-sized investment

dence, Worcester

not

are

chain

a

New York and branches in Provi¬

their

function.

They

:

homes,

was

the

a

banker

frequently to
sion

Association

Curtis,

led

job with

a

NOT

com-

In 1913 the Investment Bankers'

entered

misnomer

in large

men

had better take
of houses

or

something of

all

Morgan Stanley

companies and then become much

banking

panies who start

a

In

Morgan Stanley & Co., 2 Wall
Street, New York City, members
of the New York Stock Exchange,
announces
the admission of A.

Western Electric, the subsidiary of

shares at 25, together with
200,000
shares from selling stockholders.
What will it cost? The
company

investment

.

Hall, Parker, Partners

accumulation

typically in such

young men

A.T.

We advise recapitalization with

seller, investment banker and the

salary,
put

devices

9

H. Hentz & Co.

Piper, Jaffray & Hopwood

Financial Chronicle

The Commercial and

.

.

Thursday, February 5, 1959

.

(662)

10

majority of the policy decisions
in the operation of the
Common Market are likely to be
made
at
the
Commission level
without
being
referred
to
the
Council which reserved such pow¬

a

inherent

European
U. S. Industry

Piobable Impact of
Common Market on

ers

GEORGE DONAT*

By

Parke, Davis & Company,

to itself.

Six"

as a

Detroit, Mich.

many,

S.

U.

tion

on

is

total

are

area;

a

31%

leading

Activi¬
of the
Office of European Economic Co¬
operation and the Coal and Steel
Community are, I think, quite

cor¬

a c

over

30.7%

-

Donat

George

by

manufacture

in

and probably well over
one-third of the Gross National
Product. It is this area which, as

the TJ. S.;

Germany and
good deal of curi¬

Italy—with

a

anxiety.

osity and perhaps some
Let

then, review which of
attitudes towards it may

us,

the many

be most fitting.
A

Look

ECM

at

The Common Market now has a

population of 162 million people.
the next 12 years it is es¬
timated that the number will in¬
crease
to 173 million, a percent¬

Over

increase of 6.9%.
had a Gross National Product

age
It

of just under $150 billion in 1957
-—about a third of the U. S.—or
about the same as the Great
Area.

be

By

well

Lakes

.1970 the figure should
above the $200 billion

mark, since growth is at the an¬
nual compound rate of 4.5%
as
against 3.8% for the U. S.
The Common Market Area

con¬

of heavy in¬
is blessed with

tains large numbers

clusters;

dustrial
centuries

trade

foreign

of

expe¬

governed by people
of the importance
flow of trade to their

rience;

and

keenly

aware

of

free

a

national economies.

Basically, the ECM purports to
more than a unit of eco¬

be little

Its keystone is

nomic cooperation.
a

documents

the

period of 12 to
15 years of all internal tariffs and
quota restrictions. The first 10%
over

States

Jan. 1, 1959.
Common

effect on

into

went

It also provides for:

external

tariffs towards

non-members;

''Harmonizing"

transport,
policies;

social,
agricultural

economic,

and

and other
be equally

to establish engineering

which

standards

will

applicable.
The quality control
people have been mighty busy
working out their own problems;
railroad

adjusted;

a

reduction in tariffs between mem¬

ber

ECM Area and

law for the

schedules

postal

have

rates

been

have

How

Is

It

re¬

been

Organized?

While the structure of the ECM
is perhaps not of

such overwhelm¬

ing interest, it may be worth men¬

of

capital, labor,

and services;

Establishment of free competitive
conditions by restraining car¬

the

for

with

sources

Tat

the

of re¬

disposal

of

members.

banker or factory
apparatus
1,067
856
be found in their Chemicals",
workshop,
making
These commodity groups form
something for their homes, rather
the backbone of Europe's foreign
than hiring; men to do it, and
trade, which as workshop of the
pride themselves on their accom¬
world imports raw materials and
plishment. All these changes have
exports
finished
manufactures.
a
profound, long-term impact on
Thus, as their efficiency increases
us here.
and t eir Costs come down, we can
The

manager

can

——

—-

basement

,

Long-Range! Effects

plans

In the

With the

share

his

sets of rules

new

inventions,

and know-how with
tors

ders.

the

across

his

enhance

further

developed

highly

techniques,

his collabora¬

national bor¬

own

will

This

♦An

address

by

before the
Development
University of

Mr. Donat

Industrial
Annual Meeting,

Lakes

Council's

will

sense

of

quality workmanship and increase

productivity

of

■

the

Michigan, Ann Arbor. Jan. 16, 1959.




some

of

politically

astute individuals of their respec¬

tive

countries, appointed with the

full backing of their governments,

less competitive.

come

If present

projections regarding

impact of the European Mar¬
on world trade turn out to be

the
ket

much

they are very
conservative side-—

I think

valid—and

the

on

direct exports from this area are
this in¬
likely to decline
by anywhere
productivity, combined from 10% to 20%. The loss of
with Europe's fresh approach, and
export income and decline in em¬
superimposed on a bv-and-large ployment
opportunities
of the
impressively high quality product same magnitude must naturally
and
extremes
in
service
and be anticipated.
finance
flexibility
will
create
If all
this sounds formidable,
keenly
competitive
conditions
and perhaps a "little frightening,
everywhere for Great Lakes In¬
let me turn to the other side of
dustry.
v/:!'-v.r
the coin. What are our inherent

worker.

More than ever,

creasing

The

Threat

opportunities?

:

v

third of a

million cars

a year,

one

future; investment in
equipment by Euro¬
pean
industries on an unprece¬
dented scale;
and the existence
of a mass market, the size of the
United States, are factors which
Pharmaceuticals. ^ ^28.9
perhaps were not so evident be¬
fore
the proposed, amalgamation
The Area's total exports to the
of Europe. r ...
.
.
world amounted to about $4,5 bil¬
Fortune; based on a »study by
lion in 1957, over 25% of the U. S.
total.
OEEC, stated flatly, that in the
The European Six, in 1955, im¬ next 12 years Europe's
,

foreseeable

plant

workshop type of
coming off the as¬
sembly lines in Duesseldorf and
Paris at the rate of: one an hour. ported from the U. S.:
Men are replaced all over the lot
Automobiles & parts __—$81 mill.
a

and

-

,

with

automatic

packaging " ma¬

chinery,

voices

rise

Industrial and office-

conveyor

make

themselves

a

50%;

"

heard,

Conversely,
Europe's
exports
propositions seem economi¬
cally • sound
and generally not during the same period to the
U. S. as a whole amounted to $1,against the public interest.
The
European consumer, traditionally 230 million. Their exports of com¬
their

Annual investment in energy

third;
in

Investment

belts, pallets,
machinery
94
Under it, the Commission whose and fork lift trucks.
There is no
Machine tools & parts.— 59
theoretical
mileage to be gained frcm prop¬
powers
are
super¬
Construction and mining
vision, recommendation, and deci¬ agating
limited production at
machinery
34
sions on technical questions aris¬ high prices.
Some sediments .* of Electrical machinery
41
cartel
philosophy - are still
ing out of the Treaty's applica¬ the
Chemicals and pharma¬
tion. As a practical matter, since
around, but to the extent these
ceuticals
—-1—153
are

mass

of

European

51.6
visited Eu¬ Machinery
Basic metals
—-—-—44.1
recently must, I think, com¬
Fabricated metal .products_ _41.5
pletely revise their recollections
Rubber products
41.3
of it.
Mass production and mass
E'ectrical machinery
37.8
marketing is the thing. The Volks¬
Chemicals
23.1
wagen
works turn out about a
Those who have not

rope

industry, (are

Commission members

closing

fact, the last five years

traditionally

1„

production
and
inefficient units will
permit them to be even more
come new attitudes.
competitive. Conversely, as our
The
European, a traditionally export tonnage here declines, and
secretive and perhaps somewhat overhead
is
distributed over a
suspicious man, will under these smaller volume of sales, our costs
circumstances
far
more
freely will be higher and we shall be¬
chasing,

goes on.

The
Great Lakes Area manu¬
in Eu¬
The Opportunity
factures and, presumably, exports
rope could only be described in
Purchases of durable and soft
superlatives. The last decade's de¬ proportionately the following per¬
velopment equals Europe's previ¬ centages of all of the various goods by a rapidly increasing pop¬
products made in America:
ous golden
ulation, bent on equaling the U. S.
era between 1880 and
Automotive equipment:
86.9% standard
of
living
within
the
1910.
In

Council of Ministers, composed

organs created for
governing it are a
of
representatives
of
the
govern¬
ments of each country, serving as
a
mechanism of coordinating the

past the .exporter in Chi¬

.

the purpose of

the most powerful and
Great

mill.

—

Full and joint exploitation

approximately;

were

his

—

tels;

1955

classes

upper

dissatisfied

is

himself.

tioning that the

tive countries.

which during

things

considered lux¬

only. Automotive equipment .—-$1,005
living Machinery
1,315
quarters, wants to expand and to Metals and manufactures
1,817
modernize.
He
is
doing things Electrical machinery and
m
He

just like the other. Fiat does, the
same
in
Turin.
Machine -tools,

economic policies of their respec¬

Free movement

buys

the Great Lakes Area to the worltf

confidently expect ever-increasing
pressure from such European ex¬
ports, to the detriment of our own
cago had to deal with each coun¬
direct
exports.
These are qoW,
try separately, surmounting dif¬
weight.
made by an estimated 1,959,000
fering tariff barriers, documenta¬
In addition, the Court of Justice
people
in
the
six-state
Great
tion regulations, have six separate
acts as the judicial arm of
the
Lakes Area and—I repeat—mean
distributors,
negotiate with six
Community, adjudicating not only
an income of $4.5 billion.
v V J%
sets of banks and freight forward¬
appeals from individuals affected
Pressure
on : our
sales in the
ers. The Eurdpeart manufacturing
by the decision of the Community
U. S. market has already mani¬
subsidiaries of the .Detroit com¬
and
the
Council,
but
disputes
fested itself.
Rapidly: increasing
pany had to have several separates
amongst member States. Accept¬
imports ' of automobiles, ; radios,
plants* to manufacture • according
ance
of
this concept,
virtually
sewing machines, and, of course,tbeach country's specific require¬
without discussion, during the de¬
optical equipment are well known.
with labor of differing*
bates of ratification in the various ments;
Less
publicized .. is
the ' sizable
quality and price, assuming vary¬
European Parliaments, is the most
growth of imports in construction
certain index that Europe has be¬ ing fringe benefit burdens. These machinery,< agricultural tractors,
come different
It is a voluntary expensive and unnecessary dupli¬ earth moving equipment, special
cations can be eliminated.
Spe¬
surrender of sovereignty, fiercely
steel
and
aluminum
products,
cialization can now be planned,
resisted in the past.
where
each: of
the old plants typewriters, and other office ma¬
chines, cement, glass, and pottery
The New Look in Europe .*■■■••/ would in the future make certain
products,
and
furniture.
Well
components in large runs, to be
The most startling thing about"
buried in the import figures; but
centrally assembled. In our own
nevertheless
an
important seg¬
postwar Europe or perhaps more
field, division of our "product line
ment for consideration by midaccurately, post - Marshall Plan
by separate chemical groups seems
western small business, are sub¬
Europe, is the speed with which it to be the most reasonable answer.
has been able to break all kinds
assembly and component imports
It would be fatuous to say that
of economic records.
While thefor ultimate assembly in the U. S.,
no
problems
will
remain. past
U. S. in the live years — 1953
from either a contract manufac¬
1970. The language problem 'is not
turer or the European subsidiary
through 1957 — increased indus¬
likely to be resolved. Nor will,
trial output 16% and output per
of the manufacturer himself.
^
again to take our own industry as
capita only 6%, Europe increased an
Then, we must think about thfe
example, the long ingrained
the
former 37%
and the latter
impact of the accelerated Euro¬
habits of pharmacists and physi¬
more than 30%.
During the same
effort in
third markets,
cians change quickly. These influ¬ pean
period, per capita consumption of ence us to have different labels, which heretofore may have been
durable goods has increased some
ours.
Without any doubt, as Eu¬
packages, and promotion materials.
60 % although here we must note
But the problems will
diminish rope's industry consolidates, sav¬
that during the war the market
ings in costs due to volume pur¬
into relative insignificance as time

eventual harmonized, etc.

gradual reduction and

elimination

mark

the

he

and

a

on

those made in

modities similar to

spending
instalment

on

gone

buys

10 years ago were

uries

after their
seriousness with, dried up completely. More signifi¬
which the common policies., are
cantly, in these five years, while
now
being put into effect show
Europe's per > capita consumption
that Europe is fed up with its past,
rose
20%), its industrial invest¬
that it has learned by its mis¬
ment rose 50%.
Europe does not
takes. Problems not provided for
Increase its standard of living, at
in the protocols (for instance con¬
the expense of careful budgeting,
vertibility of currencies) are be¬ but
saves
more
and- consumes
ing resolved as the Community more at the same time.
progresses towards complete in¬
Europe's annual investment in
tegration.
industrial
equipment
is at the
Component countries by con¬
tinuous consultation both through present time roughly equivalent
to that in the U. S. Its rise in in¬
the organs they created and bilat¬
dustrial productivity is the key to
erally, are forging plans to bring
this over-all progress.
The rate
their own national economic poli~*
since "1950
was
roughly double
cies in line with the overriding
that of the U. S., i. e., an increase
objectives of the European Eco¬
of 24 points in the U. S. as against
nomic Community. Industries see¬
51 points for Europe.
Still, there
ing the opportunities inherent in
is plenty of room for growth in
the
arrangement, commenced a
Europe and the slack is rapidly
wave of mergers, reallocation and
streamlining of productive facil¬ being taken up due to the modern
ities, and decentralization of vari¬ plant and facilities which are be¬
ous
staff
activities.
Efforts are ing installed to replace machinery
which in many cases dates back
under way to agree on a univer¬
to pre-World War I days.
sally applicable patent and trade¬

fied

France,

embourg,

years

an

at the Euro¬
submission,
Six—Belgium, Holland, Lux¬

its counterpart, looks
pean

past

-

all

of

added

value

will work.

that it is likely to
unqualified success.
For instance, the Coal and Steel
Community brought out the best
in German
French collaboration
and many potential conflicts were
adjusted fairly, unobtrusively,
and permanently. The speed with
which European Parliaments rati¬

become

for

counts

the

clear evidence

em¬

ployees;

endeavor

ties

porations; has
35.5%
of
all
industrial

still

this

5 0 0

■

industrial

perhaps
being—expressed whether

Doubts have been—and

it
home to
of, the

land

Govern¬

ment of Europe.

9.1%

its

of

Community

the

formation into a Federal

concen¬

trated

of

work

the

on

presently

He

credit

will

readily lend themselves to trans¬

popula¬

Assembly,

has

saver,

may be developed, it
unquestionably
become
a
legislative body of considerable

ever

aspire to be a political union,
although undeniably, drafters of
the
treaty must have had this
strongly in mind. As we shall see,
the institutions created to carry

With a
of the

22.5%

The

appointive, is to draw up a pro¬
posal for election for its members
by direct, universal suffrage. . If
member States should adopt what¬

its stated pur¬

in

not,

France, and Italy an& 34
the Benelux countries is, I

ment.

pose

world

the

in

today.

does

It

(includ¬

Six

Lakes

Great

The

Assembly
Ger¬

believe, the not so well concealed
nucleus
of a
European
Parlia¬

bench mark, international

specifies why European Common Market
poses a competitive challenge to American industry. Mr. Donat
observes: (1) Europe's productivity rate of increase in past
seven years has been almost twice that of the U. S. and that
It is still increasing; (2) nature of the gains in competitive
imports from Europe; and (3) future advantages which ECM
countries will gain through their common market. Writer sug¬
gests we develop new products, and envisions greater European
need for more U. S. capital, know-how, techniques, patentstrade marks and, in turn, our stepped up imports of components
and sub-assemblies produced in Europe. He concludes this could
combine the best of two worlds with overall benefits to both.
marketing director

ing Minnesota) are unquestion¬
ably one of the most potent indus¬
trial concentrations in existence

the

with 36 members each from

from

Using the "Great Lakes

of

creation

The

Services Overseas

Director, Marketing

a

spree.

•

.

public- works

•

by

"-

Transport equipment by
In services by 25%;
Per canita consumption
I

will

30%; and
of goods

and services will increase by
4% annually.

U. S. industry,

tablished

on

if not already es¬

the Continent, to take

full, advantage of the eventual
customs differential, should at an
early date consider doing so.

If it

Volume

189

Number

5818

.

The Commercial and Financial Chronicle

.

.

(663)
brings

products, techniques,
to Europe, it

new

patents,

will reap its well deserved reward,
not only in ECM
itself, but by its

imports

own

States

and

kets. It

self

Of

United

more

here.

It

adaot

can

readily to market

pecu¬

can

supplant

his

loss

not

only by
(patent
and

income

of

export

his

on

had

trademark

investment),

but

available

benefits

accrue

to

dustries

add

demands

be

moderated

allow capital

to

next
years

the

office

machines,

from

pharmaceuticals

rials

handling

the
of

to

formed

are

to

sary

But

area.

be

Europe

big

it

benefit,

with

for

us

neces¬

plants

in

but have
mutual

our

the

best

of

two worlds.

To

sum

Market

mon

port

to

the

mean

Great

Lakes

decline in

a

in

It will result in

ex-

an

increase

intangible exports of know-how

and

techniques.

will

more

mean

For managers, it
travel, of neces-

sity a
broader
outlook,
more
; intimacy with world affairs and

;

their

^

own

industry's

ramifications.

worldwide

It will

require bet•jter planning of production and
J will result in more stability in
."the business cycle,

employment

as

jis

more widespread and the makring of a product affects more
people and areas.
The European Common Market
i

^

will have to consider the ramifica¬
tions

of further

he

on

in
Paul

the

the

production

Therefore, the

sphere.

nf

some

ately,

made

us

by

Hitler

tpnHprf
tended

the

idea

pmark
emark

fn
to

Berlin

as

America.

For Britain it will

A

ciliation

of

the

mean

conflict

her Commonwealth and

recon¬

between

For

that

in the Midwest it

us

there

is

means

profound

a

to

make

or worse.

effect

sure

that

It is up to us
it will be for

the better.

nn
on

s
a

and

he

war

war,

~pn

March 1 will admit William F.

Bohner

and

George B. Seager to
partnership in the firm,
rand H. S. Bijur, V. S. Coyle, F.
-H. King, Chester R. Knowles, and

-

^general

V. W. Leathers to limited partner-

•

'

ship.

...

'

d

f

member

T.

-

On

Feb.

of

28

Earl

the

H.
Rodney,
Exchange, James

Loree, and Howard Si Thomas

-will withdraw from.limited

part¬

nership.

a

.

|

no

Soviet

seizing

it

.why

(Special to The Fin ancial Chronicle)

BOSTON, Mass.—Jori L. Rando
now with Schirmer, Atherton

&

Co., 50 Congress Street, mem¬
bers of the New York and Boston
Stock Exchanges.
He was for¬

merly with Harris, Upham & Co.

believine
oeneving

that
tnat

to

fight the cold

economic weapons.

rials

dumped

were

market

at

prices, in
fall

in

caused

resistance

on

the

a

Mr-

un-

its

plans of world

economic

means?

material

tended

uncommitted
duction

to

agreed

prices.

limit

world to

moderate their demands
2

t

enoueh

Mr capital equipment and to ob-.
viate

necessity

of

checking

in

the

expansion

to

stop

order

next

tried

r.,.\

.

*

'

'

Of Ga. Port

B1

oc

it

Johnson, President of the Johnson,
Space Corporation, and

n,
Lane,
Space and Co.,
Inc., has been
appointed a

member of the

Georgia

h

thP

must

Vandiver.
Mr.

of

,

,

be

on

York

Thomas M. Johnson/

Citizens

&

ment

Southern

career

and the Citizens & Southern Co.
until

ad-

1933

when

Johnson,

was

"

~~~

buy these securities.

>,

2,900,000 Shares

•,

•

Universal Oil Processes, Inc.
(Name

•

to

be changed to Universal Oil Products Company)

pro-

was

its

Capital Stock

/:.v:;rv

But
*

-

•

(Par Value .$1 Per Share)
•

>

,

*

*

,

a

•

Price

$25

per

year's

Share

ex¬

come.

With Harry W. Peters

experience,^ how-

(Special to The financial Chronicle)

; William W. De Voe has been add¬
ed to the staff of

Harry W. Peters,

Avenue.




!

When the industries of the

Soviet Union have expanded

-

suf-

Copies of the Prospectus may be obtained in any State only from such of the severtit
Underwriters, including the undersigned, as may lawfully offer the securities in such State,

•

ficiently to satisfy the most urgent

requirements

of

the

Communist

Bloc, the surplus will be dumped
on

the world

The

the

sooner

market, in order to.
western

Russia

has

'

i'- GRAND JUNCTION, Colo.—

'

foretaste of things to-

ever, gave a

in

expanding

sooner

to

her

Lehman Brothers
.

-

Smith, Barney

countries..

succeeded^

industries

the

face

such

attacks

on

Merrill

.

Lynch, Pierce, Fenner & Smith
Incorporated

February 5, 1959.

their

prosperity and economic stability.'

Co.

*

will the free countries have

"

'

Lane,

established,

L1'.---.-'■

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

-.

in

National

Bank' remainin8 with the bank

Space and Co.

.

Stock

Exchange, be¬
gan his invest¬

a

risks

in

member
the
New

son, a

in
~

John¬

frPP

Indeed, it is

secured

b y
Ernest

Gov.

l1r1

Pos-

is

Port

Authority

assist

unwarrantecj

the contract

its

affiliate John-

£llineP whh^th? Soviet1 Union
take

Authority,

SAVANNAH, Ga. —Thomas M.,

trade there is with the Com-

strictly cash basis.

•" ' •'

T.M.Johnson Member;

few

to

Thpv

strenirthpnin*

munist

in-

fiati0n.

The free countries would
'i

resources

f as »jeave enougn resou.ces

assistance,

the

it.

to

s o

such

they

Our

persuade the workers of the free

:

antagonize the

there

to

uncorn~

the

is

race

year's

material

raw

countries

only hope to win the

unless the whole amount involved

change of policy. The Soviet Gov¬
ernment

Soviet

con-

/.

for

the Soviet

This announcement is neither

when Moscow found that such op¬
erations

the

f

intelligent

Mikoyan

enough left

of

capital equipment,
Union, on the other
hand, the standard of living has
been kept down in order to be able
In

nomic supremacy, instead ot
weakening themselves by granting
assistance to their enemies. Whatamain.
ever

highly

not

.

.

did

is

production

with

war

last

there

sphere, and its
mischief is bound to

foolish if

.

nart

carry

Various mateon the world;

bv

the purpose of satisfying the
ever-increasing consumption, and

towaias strengthening tne nee
world in the coming race for ecos.

~~

;

low
order to aggravate the;

raw

that

during

tnwarH.'

./v.'-'•

unnecessarily

difficulties

for

11 towaias its goal, iney should
devote all their available resources

his
nis

States to assist actively the Soviet

during the last
two that the Kremlin in-

embarrass

610 Rood

into

sueh as

man

For if the.

were

be

to

,

cmci

excessive

a proportion
capacity is used

economic

for

years-

Ribbentrop
rennrfc

the

increase

re-

indications

to

consider-

Fortunately

power.

without

power

additional

of optimism.
Union

year or

a

of

large

.

in

is

R.

me ariusn uptfei len aur
toe late 'thirties, misleading

0(3"^
™

while engaged in the!
years' plan, there would be

cause

with

on

too

of the productive

A(lvises Cash Trade Basis
Even

world-conquering plans would not

point

teiritories
seven

embark

increases.

wage

result

a

in

reversed

inflationary ef-

the strength of the Soviet Union

British "unmer ten" dur-

In£

assumed that he

we

avoid

Last

-

Herr

be

ports of tin, for instance.

Schirmer, Atherton Adds
:: is

Administration

similar

to

excessive

countries,

Lane,

everybody

by

tends

Hayden, Stone & Co., 25 Broad
Street, New York City, members
Exchange,

States

quest

if

later

Considering

'

Miko-

in

been

of the New York Stock

Mr.

Union
even

little

a

to

would

the

5?"? somewnax similar reports io
Hitler on the basiSfcOf his contact

n

opponent in the economic sphere. Already there have

Admit New Partners

On

doubtedly is expect the United

But

able

^itted^^ntries?S^^°n

distin-

a

respect, too, history

qomewba|

in-

So

the

itself.

.

nnint-

elsewhere.

to

visitor

has

as

because-

supremacy,

equalitarianism in the democratic

other free country assist the
Soviet Union in its efforts to

given

quarters.

attitude

United

this

Peatcd

through the ambitious plans of
expansion it would become a most

Hayden, Stone Will

In

<

formidable
jr-

em-

feeling of security by Mr. Khruschev's plans of economic expan-

1

for better

that

as

re-

as

sion.

would

'

have

fullv

hospitality

except

^Lai10fo'ito

European

interests.

would

friendly towards the U. S. S.

'"8 out that it would pay havoc
with his grandiose building plans
m

been

reality it
strengthened

which

have

American

of their

the

shortly

that

areas, such
the Nordic Union and the ABC

States in Latin

in

Unfortu-

rpmprrhcr
remembei

us

of

some

ridicule

greatly

Germany

grants long-term
credits to other countries in order
to secure influence in their economles, it was indeed absurd that

reported back to Moscow that

yan

of
op-

hpfnrp thp wir
in which hp snnpht
before the war, in which ne sought

lo

He

answer

official

basis

while

quiet

and

peace

economic

speech

have

the

on

become

war

Government

American businessmen naturally

a.rgue- we "?*?

mtplv

'

a

«uished -foreign

the Soviet Union is engaged in the
rvn, uvnev
>
execution of Mr. Khruschev's plan
uihii
a
v «
in

an

showed

and

of

per-

American

Einzig

Any

capital goods.
period

the

could

phatically negative
Or.

in

living

Had the idea of the

of

Also,

to strengthen1 its position.
Why
should the United States or any

military expenditure
would
gravely
compromise
the
prospects of raising the standard
of

the

loans.

ceived

con¬

arms.

he

pansion

ment would have been in a much
better position to offer financial
aic* to countries where it wishes

to

quest by force
of

Chamberlain

term

does

mcrease

Mr.

as

friendly reception
to translate their friendly feelings
into the practical form of
long-

as

intend

free

economic

^e. American statesmen avoided
ia^ng toto toe trap.
to expand producing capacity.

insult

an

other

the

imagine for Mr- Mikoyan should try to obtain
possibly long-term facilities from the
tried to United States.
Had his demand
businessmen
who ^een satisfied the Soviet Govern-

that

him such

gave

indication

an

that

war

foredoomed

of

He should

persuade

trade

*

'

succeed.

pret his ambi¬

world

revenue,

costs.

inter¬

plans

was

intelligence

moment

a

Opti¬

mists

It

the

statesmen for him to

Cur¬

tain.

embark

employment
op¬
portunities, and somewhat higher
;

Iron

of

of

would

Govern-

indeed

;

the European Com¬

up,

States will
.

the

was

the

on

and

forward

induce

feet

way

Hitler's

grant long-term loans to

to failure.

on

side

to

States

to

order to check the

eve

Mikoyan to
States

put

order

ably increased

the Soviet Union

for

thought
this

ment

much

food

not

*Summation
/.

given

Mr.

been

in

£1,000 million loan made

wage

American

United

In any case, the free world is
gravely handicapped in the race
of the unwarranted wage demands,
From time to time economic ex-

have

cial facilities.

circumstances the recent

of

the ulti-

on

Berlin seems to indi-

a

same

the

the

The timing of

war.

following

attempted to appease Hitler —
through the offer of large finan-

;

Insult

suade

bank.

authorities

for

have

attempt

Soviet

countries to appease Russia in the

Intelligence

has

confirmed

British

a

the

bound to incur heavy losses,

on

over

United

stock for economic

to

in

are

of

means

with

Otherwise

position to cancel the contract, and the firms concerned are

mainly

<

In

seven

anxious to col-: tious

combine

to

by

industries
not

small,

keen management

Jaborate

is

New

daily

most

—

quite

are

mate¬

equipment.

large and medium
our

from

way,

that

credits

must

v

An

pansion of production during the

Many midwest in¬
to

associations

should

we

winning the race of eco¬
parallel between U. S. S. R.'s

strength.

led

us.

have

automobiles

and

can

urges

eleventh-

an

by

vance

cate that the demand about Berlin

peaceful aims, the writer opines that
Mr. Mikoyan's request for
long-term loans,

acceded to

we

trap

a

in

Hitler

enbarking

to

resources

profits by lower cost manufactur¬
LONDON, Eng.—The announce¬
ing.,. As long as American inge¬
Mr.
Khruschev's
nuity in creating new products ment/of
plan
and
techniques
endures,
these foreshadowing a spectacular exadded

falling into

urges

,jp .his present volume increased
salbs in Europe, and increase his

'

not

offered

hour attempt to dissuade him from

Russia would have used the credit to
improve its economic
conquest of uncommitted countries. Dr. Einzig advises trade
with U. S. S. R. be on a cash basis and

royalties, engineering and man¬
agement fees, dividends and inter¬
est

our

nomic supremacy. In
drawing a
and Hitler's professed

intangibles

gigantic^ loan

a

the request

increasing the strength of the U. S. S. R. and

devote all

manufactured, for example,

tonnage

Einzig commends the U. S. A. for

of

packaging small runs, if neces¬
Thus, if in Europe, the Mid¬

Chamberlain

matum

Dr.

it¬

sary.

west

Mr.

By PAUL EINZIG

liarities everywhere by producing
or

Strange Parallel
O.S.S.R. Today and Hitler

high quality and at lower

than

costs

the

exports to third mar¬
have components made

can

there of

into

sibly he may have derived hope
from the experience of 1939 when

The Not Too

or processes

11

The Commercial and Financial Chronicle

.

Thursday, February 5, 1959

,

.

(C64)

12

and

ference

Cycle
Replace the Postwai One

What the New Business

Needs to

EDMUNDS*

By STAIIRL

Dearborn, Mich.

Division, Ford Motor Company,

Ford

going beyond

a

tacular series of innovations in

for

a

boom, and

new

dozen years to allow creativity. He would, for
example, research consumer latent wants and non-buying rea¬
sons rather than what consumers have been buying and, also,

in consumers, an enlarged population, inadequate housing, and inare again
buying in force. Total adequate stocks of durable goods
retail sales of all stores have re- in the hands of consumers.
The
production
requirements gener¬
cently spurted
ated by these enormous demands
4%
ahead of
led finally to a huge capital ex¬
a
year
ago,
a
marked
pansion program during 1956-57,
and this capital expansion pro¬
change from
the
gram is what has closed the long
tendency
postwar cycle. Now, at last, it is
through Sep¬
tember of 1958
possible to produce more than
for sales to lag
enough to satisfy consumer de¬
mand for all the goods that cus¬
behind 1957
tomarily go into the present
performance.
The

fact

encouraging

most

the market place is that consumers

The

this

of

cance

retail

buying

that

is

the

is
gaining

economy
now

support

Stahrl

Edmunds

from

Products and new ideas. New
products and new ideas are the
vcr.V essence of a growing economy; Economic growth has recenHy been the subject of much
speaking and adulation. But one

private demand; and this is a sign
of strength for 1959.
The recov-

in business conditions from
April through September of 1958
stemmed largely from two factors
(1) a tapering off in the heavy
inventory liquidation that had de-

ery

pressed

production

in

early

as^ct that is seldom mentioned
is that economic growth is accompamed by growing pains. Busine?s experienced those growing
pa!!ls. 111
j? anc! ^r^1 n^JrSi
stlU be Wlth us 111 1959 ancl 196(1

the

and (2) the expansion in
Federal, state and local govern-

year,

ment spending. These forces alone,

however,

could

basis for

a

scarcely

be

.

the

sustained expansion

in

business

conditions, without
broad rise in private demand.

Consumer

a

The fact is that we need

il

technological explosions in con¬
sumer markets to launch a strong,
new business cycle for the
1960's,

11SG +lr^i Sonium/5V?S eV1~ iust

by retail trade, (2) the

series

a

ex-

8reat missile and

as

advances

were

needed

rocket
launch

to

h?<ml°n in ^construction evident in |jie miiitary into the space age.
inrt
ca
a(^ a)^ards and bous_ The pressure upon private busia
oi

ar?? /
imProve- ness management is to bring these
eun caP an investment out- technical advances in consumer
'

.

inrtir

.n 111 caPltal markets into being rapidly enough

i,^Tia rS

i durable goods.

Rncori

Sfnn S favorable develhnii? L fii
a!vT0lJ^ S
1^QSS* r!0ri
PrnHupt

AhmS

bnif

nriffinatf.

ate

g

and

upon

easily take these facts

generate
for

a

exuberant

very

1959.

But

I

whjch

an

eariy aild

sive boom will be based.

agement

regard

if

cannot

business

do

tries

get

encouraging facts as build- making more of the
blocks for a future expansion, could encounter some
than

rather
a

the

as

boom

new

assurance

is here.

again rising

by its

man-

things,
by

same,

just
we

very indifferent years until the mid-sixties

that

In

effect, I
believe the business keynote for
1959 is one of sober
optimism. The

erallSmv is
economy

expan-

If

these

to

these
mg

when

new

itself

will

family

formation

stimulate

neGri

innovate

to

Economic readjustments will
persist \ because we are shifting

of

very tired old business cvfresh and new one
I am

a

the

United

fairly long cycles

of

events

10

to

12

indicate

years

that

the

States is at the end of the

postwar
the

now of

order

Recent

economic

economic

through

1958

conditions

period,

could

such

as
.

Fourth

Annual

Girard

Trust

Most

era.

events

peculiar

,.

Philadelphia,

to

the

in

erated

1945,

uct

from

years

backlog of ideas to draw upon. We

ment

like

is

from

be

to

of

1946

traced

to

'

.

(2)

Consumer buying plans for
new cars increased by a third following introduction of the 1959

postwar

,

&wen,t UJ?
Corn

Jan.

Exchange
is,




1959.

Bank,

'

manage¬

close-order

as consumers perceived a

is

in

physical

on

enterprise,

rather

transactions.

dollar

on

reason

and

the

human

that

The

decisions

show up earliest

actions will

physical event — the
of material, a piece of
hiring an employee, a ma¬
breaking down.
Manage¬

some

movement
paper

chine

of

measure

action

it

obtain,

can

for this is the level at which action

be

can

controlled.

control

can

Management
through

actions

these

(a) actual
performance — what, where and
when, (b) standard performance—
that

report

a

what

or

shows

should

(c)

been

have

done,

variance between the

any

The knowledge of variations
what was done versus what

should have beeii done is
ful

tool

ment.
to

in

a

power¬

hands of manage¬

the

It will enable management

control

some

enterprise

an

consumers

have

been

why

what

consumer's refusal to buy.

of the flux in

spite

in

realize

I

summarized

have

I

broad

management
ideas:
briefly in this short paper.:

very

Those who
ic

creative organiza¬

a

interested in specif¬

are

illustrations of how these ideas

be applied

may

referred to my

are

article in the current issue of the

entitled

Harvard Biisiness Review

"The

Reach

of

Executive"

an

the

Summary

|
In

conclusion,

or

Di¬

forthcoming book "New
mensions of Management."

,

noted

have

we

sent

by existing products. The reasons

gaining strength from private de¬
mand. A gradual improvement in

the command. This kind of man¬

for

the

because the goal
is simple, clear,

set

works

agement
of

business

the

and

Build

tangible.

same.

Sell

know

how

to

do

because

which

tool

represent

a

new

values—

significance

great

product

the

to

de¬

direction

future

of

research, and the
energies of management.

plans,

creative

People can be given spe¬
duties; their performance can

filled

people would like to ful¬
they could. Here, then, is a

of

termine

as¬

repre¬

be

scale of

wants—a

it

known; they can be

are

cannot

non-buying
of

Hence, the

before.

been done

has

that,

non-buying

that

wants

fill if

We

same.

behind

sons

of the

more

of the

more

signed.
cific

checked.

be

Management

or¬

can

ganize around functions, functions
be broken down to procedures,

can

and procedures into

jobs. The past
years
might well be called
Decade
of
Job Descriptions

ten

the

business.

in

fruition

the

into

men

It

brought

fine

art

of

into

tions.

drill.

fitted

when

their

into

a

Outlook

Secondly,
by

Instead
the

men

do not

close-order

think well
job because

can

on

organization.

of

assigning duties from
down, management can

top

generate

tremendous

a

and

in the

of the prob¬

duties

determined
clown

pre¬

handed-

and

goals.

best

individuals

as

when

act

action

is

decision

in

new

always
to

ways;

and

preceded
This

act.

an

by

raises

a
an

organizational paradox for man¬
agement. On the one hand man¬
agement must allow individuals
more
leeway in their decisions
in

order
the

creative

foster

to

other

acts:

hand

management
itself must retain power to make
on

decisions

which

the gen¬
enterprise.

govern

Are

compatible
I

two

these

think

the

courses

I

think

sible

for executives

new

mode

of

encourages

creativeness"
control

and

as

to

it

is

No one has all
but everyone has part
Consultants charge
a

will

be

management to find

new

consumer

wants.

Indeed, a fresh, sustained busi¬
cycle during the next decade
will require a spectacular series of

ness

in

advances

consumer

markets.

Bankers, are in a key
position to help management or¬
ganize
enterprise
creatively to

bring

these

advances

technical

into being.
By their sage man¬
agerial advice and lending power,

they
the

help

can

business generate
ideas and in¬

products,

new

latent

will

fill

In

their

wise

guidance toward economic growth,
bankers will prosper their clients,
themselves, and the nation.

company,

the

a

administrative method?
tension

of

be

done—but

As

ex¬

an

this

method, manage¬
ment can find out—not only what
people in the company think

Broad Street Sales

Appoints Chas. Dodge
Charles

M.

for

Services

announced

he

Milton

each

given the tasks
important and wants
to do, he will act vigorously and
creatively. However, the method
of
organization, at least in re¬
search and planning activities, will
have to be very fluid because the
things individuals want and need
believes

to do may cross

departmental lines.

In these

cases, business may well
organize around men rather than

The most creative

men

will

be the center of

project organiza¬
tions, which would change, form
reform

as

project

organizations

projects

change.

65

it

has

of

been

Dealer
Sales

Street

York

New

was

by

Fox-

Martin, Presi¬
dent

of

that

organization.
As Manager
of

Dealer

Services,

Mr.
will

Dodge

have charge of
sales
tion

promo¬

will

and

work with

curities
ers

and

Broad

Broadway,

each individual is

what

Dodge

Manager

appointed

Corp.,
City,

in

tion

se¬

deal¬

connec¬

with

the

Charles

M.

Dodge

would

new

fund

pos¬

ing limited by functional bounda¬

Broad Street Sales has undertaken.

a

that

ries.
an

individuality and

while

general

of transition

there

have to operate freely without be¬

develop

management

fulfill

which

people in it, and
report on the answers em¬
ployees give them.
Why should
not
management do this itself,
regularly, as a normal part of its

in¬

they appear?

as

not.

pressure upon

and

year

that

wants..

large fees to go into

jobs.

a

novations

a

The

of

direction

eral

be

sense

individual himself wants to do. If

Organizational Paradox
think

also

the

1959.

consumer

of

enterprise.

interview

will

now

are

be expected to
However, 1959

may

in

business

the answers,
of the answer.

write

economy

continue

in

conditions

business

collectively by people

solutions

known

are

All

should

thinking is molded by

reservoir

of ideas by seeking solutions from
up.

that

technical

creative side of
be strengthened

outlook

new

a

Organization

on

the

management

lems

Unfortunately,
very
well in
They do not

think

New

fitting Jhe bottom

jobs.

fact,

perception of dif¬

in

drill,
everyone in step, everyone moving
together, everyone wheeling on
a

marked change in new models. In
consumer

will

wants

depth

Non-buyers
are
worthy
of
as
much study as buyers. Knowledge
of why people do not buy would
be of utmost value to product and
marketing management. The rea¬

must

The evidence is found in sales

The reporting sys¬

concentrate

tion.

govern

•

,

latent

new

they have bought,
they liked about what
they did buy. This represents only
the top part of the iceberg. Un¬
derneath lies an enormous, sub¬
merged
mass
of attitudes
that

consumers'

.

redirection of prod¬
toward the fulfillment

a

buying,

in

models.
Again, the upturn achigh liquidity of companied a cyclical business improvement, but buying plans also
a

..

Pa.,

..

the

will

than

in

Non-Buying Reasons

plans

and

"more-of-the-same" boom.

a

"More-of-the-same"

which

by

principal means
flux can be kept

under control.

sis of what

1930

inventiveness.

were

on

because this is the

to market
research
and
market
planning.
Marketing has in
recent years
rested upon an exhaustive analy¬

innovations gen¬

15

men,

fitted into jobs.

the

require

well as upon its own
Today we have no

as

creative

to

men

consumer's

of

.

statistics for 1958.
(1 bwhile automobile sales generally in 1958 were down by 25 %
from the Previous year> due to the
busllless cycle> the new Thunderbird sales were up 330
Here was
a new and usual car' and n sur"
passed a11 other volume cars in
sales gain during a recession,

speaking

First,

upsurge

accumulated

the

compre¬

system

physical actions in the enterprise,

and

Research

re¬

they are encouraged to do
what they feel needs to be done.
To be inventive hnd creative, men

economic readjustments.

a

strong

a

Men

What is the evidence for the

" alJ° innovate ln consumers

cle to

is

business cycle

to carry a

from 1959
to
1970. After all, the boom of
1946 to
1958 was built upon all
into

economic

activity.

the
own

than

and

two.

by

power, that is, from private demand. The sobriety of 1959 is that
it will continue to be a
year of

from

massive effort

more

a

fitted

be

rapid

a

information

ment wants and needs the earliest

business.

r

buying.

in

One could

outlook

But

their

The development of rapid
and
comprehensive
information
systems on the physical actions in

good start in creating the new
products needed for a new boom.

quired

consumer's
than

(3)

buying based upon new consumer Instead a "think-as-you-go" man¬
vvants, and through this new de- agement will have to stress
/If
® 1S
.1' mand to foster new capital invest- creativity in men to bring into
SLSi™ oin£rease Wl11 ment. These are the conditions being new products and innova¬
consumer
i

rather

will

But times change, and this kind
t° stimulate broad new demands,
|0 create the vision of a new way of management will not be ap¬
of living> to generate a surge of propriate during the next decade.

^5,ger

filling

wants

wants.

(2) A reversal in organization
thinking—at least in research and
planning activities—in which jobs

that American business is off to a

tasks

Innovation

of

The strengthening in private de¬
mand is now seen in three forms,
cenced

Market

toward

latent

plans

must
propel
the next business
cycle by our own efforts. It will
standard of living.
be
a
"think-as-you-go" boom if
The next few years will continue
there is to be any boom at all.
to be years of transition because
Now, my point is that a "thinkwe, in business, now have the task
as-you-go" boom requires a dif¬
of creating new living standards
ferent
approach to management
for a new era. We need to give
than we have had during the past
a jaded market an influsion of new
dozen years. The past dozen years

signifi¬

The redirection of product

Managerial Tool

develop

actions

recent

indicate

examples

few

These

to

hensive!

tem

the direction I think
of
management
take. Three developments in

(1)

Effort

Massive

Urges

New

mode

rather

of management's methods.

would change some

few

a

management seem to me most
promising to meet the needs of
the coming decade. These are:

usually think of food as a staple,
actually it is a mushrooming in¬
dustry of new tastes, new pack¬
ages, and new conveniences de¬
signed
to appeal to the most
harried Americans, the mothers.

than in past

offer

what

is

Thirdly, management will need

on

new

may

(5) Lastly, the redoubtable food

different approach by management

urges

would like to

i

mechanism

generating

business will require in the future.

this

industry consistently achieved six
business
conditions.
While
we

beyond

be

management

guidelines

years.

cycle just ending. Contends we need a greater
our good start in creating new products

tained in the old
massive effort

ade,

record players, tape re¬
corders, and hula hoops sailed
through the recession with banner

markets and major

consumer

major

management during the next dec¬

products

newer

boats, outboard motors,
electric eye camera, stereo¬

phonic

replace the generating forces con¬

reforms in management to

of

host

A
as

the

The industrial economist advises we must have a spec¬

one.

after the
and cabinet

tube

will

this

How

the

problem of the next decade, and
it will be solved only through the
ideas, work and experimentation
by many people in many busi¬
nesses.
But since this paradox of
creativity vs. control will give
fise to the main pressurea on

introduced.

(4)
such

sober optimistic outlook diagnosis for 1959,
Mr. Edmunds views this year and the next few years as a tran¬
sitional period from the long postwar cycle into a new, fresh
In

television

were

is

done

greater than the

year-end

the

toward

business.

the

1959

in the

newness

40%

was

previous year.
(3) Television retail sales were
down 9% early in the year, but
recovered
to
show a 3%
gain
flat

Studies Department

Manager, Economic

models

maintaining
direction of

The

organization

internal flux,

cult to manage, perhaps.
are

born out of

would

be

somewhat diffi¬
But ideas

flux; and this idea-

mutual

service

sales

He takes

over

Erik

Reinders,

came

a

program

the duties of Mr.

who recently be¬

District Manager

Street Sales

that

Corporation.

of Broad

Volume

189

Number

5818

.

The Commercial and Financial Chronicle

.

.

(665)

The Application of Mathematical
Statistics to the Stock Maiket

Manufacturers

Ahead

Messrs. Stone and Brown, assuming that

of prediction

accuracy

The

basic

is to gain

of

purpose,

better under-

a

the

particularly erratic. The Net
Change spread of more than $3, in
for

by the
signs, is patternless.

The

Correlation

alge-

the

relationship

between

The coefficient is

any

them.

simply the value
A coefficient

which approaches

1.00, the maxi¬
mum value, indicates a substantial
relationship. A coefficient of 1.00
would indicate
Brown

ship; that is

standing of its activity and/or to
be able to reap tangible benefits
Based

on

under¬

an

standing of the stock-market
tivity patterns, the accuracy
prediction is increased.
Common
Business

stock

of

ac¬

of

be

and

International

Inc., a listed
the New York Stock

two

the

to

would

influ¬

same

respond

in¬

would

in

ex¬

actly the same manner.
As a
result, one
could
be
precisely
predicted

other.

Machines,

the

say,

consideration

subjected

ences

perfect relation¬

a

to

under

dexes

therefrom.

from

the

value

of

the

In short, knowing how one

index

responds,

permits

know exactly how

security on
Exchange, has been selected as a
case
in
point.
The researchers
have

be

to

us

the other will

respond.

analyzed

selected
change
blue-chip stock over
a
30-day period. The change in¬
dexes were Sales, Closing, a Net
Change,
herein
referred
to
as
data for this

X,

Y

and

Z,

respectively.

for the month of

analyzed.
the

The

Data

April, 1958

were

published source of

information

"The

was

Wall

Street

Journal," Volume CLI, Nos.
through 84, inclusive. Twenty-

64

stock-market

one

days

in¬

were

volved.

The Basic Findings

I—Showing the Means,
Standard Deviations, and the

Inter-Coefficients

of

Correlation

for the three variables
X

or

indexes.

Y

1

Y

.08

1.00

Z

.44

.20

M

37.57

343.75

.28

SD

15.23

5.91

3.16

from

seen

the

Knowing the
value of Sales, for example, will
not help us much in our attempt
to predict
the value of Closing.
The
relationship
between Sales
and Net Change (XZ) was found

for

average

$343.75

(M), it
that

can

the

the

period
Although

share.

per

the third index, Net Change (Z),
ran
the
+ course, the average

change for the period was
puted to be only 28 cents.
The standard

deviation

interpreted here

as

a

that

days

the

were

com¬

than

similar.

1,500

for

A

is

edly.

for the 21
value

Sales

of

(X)

days
more

shows

for

the period varied mark¬
Such indicates that some of

the average of 3,700 and

a

some

was

we

is

a

slight relationship
ex¬

did

not

know

the

value

less pronounced

than that of the Sales, in that the




on

has

de¬

a

All

under

costing

the

$6 bil¬

us

and the farm surplus

year

hand

that

are

program is now

i t

just

facts

is $9 billion.

sides

that

agree

something

livered against

must be done about the farm
pro¬

the

The first thing to do is to
investigate the Farmers' Union. In

American

Farm

gram.

Bureau

Federation.
t i

z a

Carlisle

Bargeron

by the AFL-CIO and with some
good features which, however, do
hit

the

at

racketeering.

heart

The

Federation is

of

Farm

Bureau

did

claim

that

other

Administra¬

leaders

the

Administra¬

Commission

and
not

abuses

of

says

the Kennedy

eliminate

organized

National

Farmers'

real

the

the

in

organization

serial
external
loan
semi-annually Sept. 1,
1960-March 1, 1964. The offering

bonds

from

comes

the

Farmers'

Union's

tions

to

go

Associa¬

tion and the United States Cham¬

of Commerce.

hand-in-

worked

of

glove with the CIO. Their present
stand
would
seem
to
prove
it.
That, and their attack upon the

easier

The

Farm

has

far

greatest

membership.

But

Farmers'

Union

better

is

far

own

several

the

the

important elevators. In
munities

the

the farmer
is

through

the
is

only

can

an

of

at

he

ever

up

a

takes

facilities.

of

many com¬

of

Farmers'

plenty

these

elevators

of

it is

out

and

Secretary
known
was

its

big

downtrodden

moguls,

including

and

the

a

hush hush

on

One

good

.

payments

100%

The

prior

1969

will

by

a

be sure,

except

poses.

investment

for

Yet,

a

combined

meat

To

established

a

the

the

tion of diverse effective

spell

can

Act;

Jan. 3,

1958 under
Federation

other members

eration

St.

Dominica,

Lucia,

Antigua,

National Association

of

only.

42,210 shares
Cumulative Convertible 2nd Preferred 5%

Series

Robert Lewis Adds
(Special to The Financial Chronicle)

is

Myers
Lewis
Trust

now

Arrangements for the private

111. —William
with

G.

Robert

Midwest Stock Exchange.

formerly

with

A.

C.

He

placement of these preferred

shares with

institutional investors have betjn made by the undersigned

G.

&
Company,
Rockford
Building, members of the
was

Allyn

E.

F.

HUTTON

COMPANY

&

&

61

Company, Incorporated.

Broadway, New York 6, N.Y.

Joins A. G. Edwards
(Special to The Financial Chronicle)

LOS

SPRINGFIELD, 111.—William C.
Patton has
A.

G.

&

Monroe Street. He
with

A.

C.

Sons, 609 East

previously
Allyn & Co.
was

ANGELES

•

SAN

DALLAS

become affiliated with

Edwards

FRANCISCO

•

NEW
8

February 3,1959

St.

Vincent,

Chris-

serrat.

the

risk.

ROCKFORD,

Barbados,

St.

topher-Nevis-Anguilla and Mont-

the difference between
prediction and un-

harnessable

of the Fed¬

Trinidad,

are

Grenada,
the

on

Transmission Company

techniques

1,
the

British Caribbean

Tennessee Gas

pur¬

of

Jamaica is part of the 10 mem¬

New Issue

applica¬

March

with

the

a

formation

to

operation

Farmers' Union accusing the Farm
Bureau of being in collaboration

given technique per se
hardly provide adequate in¬

can

to
ma¬

ber Federation of the West Indies

This announcement appears as a matter of record
Not

by

sinking fund.

always there
the part of the
about

issue

15-year bonds will not be

redeemable

were.

He is of

thing

calculated

of the

turity.

but

is

of propaganda. It is anticapitalist propaganda, namely, the
is

retire

politicians.

used for the pur¬

necessary

sinking fund for, the 15bonds will provide for semi¬

annual

the

expose

if

The
year

long
opposition

in the fartn belt.

to

we

ac¬

payment of interest, sinking
fund, and serial bond maturities.

has

real

himself,

poses

farmer

his

Farmers' Union

of

we

Benson

where

mind,

great

a

bill,

a

retired), the

for

But it won't be. The
pass

are

Jamaica

of

ernment

the

usual

President will veto it and

He

the bonds

as

be done at this session

will

New

count to be available to,the Gov¬

of

be right back where

Union

money

have

Congress.

Democrats

member when¬

advantage

The

makes

amount of

the

in which
get rid of his grain
elevator owned by

as

is

in

account

bonds when that becomes smaller

Something about the farm prob¬
lem should

way

National Farmers' Union.

signed

It

an

in an amount of $1,250,000
(or the equivalent of the next 12
months'
service
on
outstanding

way
that
doing things.
Furthermore, when farm legisla¬
tion is up those members of Con¬
gress
vote
with
the
Farmers'
Union.

agitating. Throughout the Middle
West, in addition to their mem¬

bership, they

the

way,

politicians

Bureau

movement.

maintain

ties

trying to tell their constituents
this

Ja¬

of

York City, consisting of U. S. dol¬
lars or U. S. Government securi¬

effort is made to

into the Farmers' Union is that

about

Federation.

Farm

no

are
joiners. The Farmers' Union
is strong in their states, just as the
teamsters were strong in certain
states.
So they joined up instead

The point has been made before
in this
space
that the National
Union

reason

Government

In addition to

pledging its
full faith and credit for payment
of the bonds, Jamaica will agree

several Republican members from
the Mid-west belong to it.
They

One

the

of

maica.

pub¬

National

Farmers'

due

Jamaica issue to be payable in
United States currency (principal
and interest will be paid in New
York
City) and will be direct
and Unconditional general obliga¬

lications.

ber

a

$2,500,000

were

along and fully endorses the Ken¬
nedy bill and says the Farm Fed¬
eration Bureau is aligned with the
Manufacturers

4

Exchange
registration state¬

loan bonds due March 1, 1974 and

Khrushchev's tongue than some of
the bitter
poison that emanates

The

labor.

Union

West

Feb.

a proposed public
offering,
late
in
February,
of
$10,000,000 sinking fund external

Communists-Certainly nothing
any ; worse
has ever' come t'rorh

bill,

Jamaica,

on

ment relating to

influential

the

does

bill

filed

with the Securities and

Brannon,
Secretary of Agriculture, under
Truman, were Communists, but he

labor

on

tion

Islands,

British

Hampshire,

side, favors

tion

Indian

of

the

of

the

on

into

largest

Styles Bridges of
will be underwritten by a group
made a speech
of
investment banking firms
Senate floor charging that
several influential members in the, headed by Kuhn, Loeb & Co. In¬
terest rates to be borne by the
Farmers' Union were Communists.
bonds and the offering prices will
He did not charge that John G.
be announced later;
Patton, the President of the union
The
bonds
will
be
the
first
or
that
old
"Baldy"

it
have
s,

the fight over
the Kennedy labor bill, supported

not

the

1950' Senator

New

organo n

Government

The

re¬

of

Any security can be subjected to
similar analysis.
Perhaps the

tive technique to a vital area.

had

considerably less than
that average. The spread of the

(Y)

fighting policy,

a

real contribution by the writers is
the application of another objec¬

show

Closing

example,

the value of Sales. The

There

.20.

the stock-market days had to show
several hundred shares more than
to

for

Net Change (YZ) was found to be

for the

that the number of shares of stock
sold

indexes.

Sales,

the spread, or

readings

may

Bureau

Offer Jamaica Bonds

against

been

broadside

the

harnessable

(SD)

low standard deviation indicates

were

between
Knowing ,the

relationship between Closing and

dissimilar, whereas

that the readings

of

not know

dispersion, from the mean. A high
deviation, therefore, in¬

dicates

relationship

predict Net Change
approximately
10%
more
effi¬
ciently than we would if we did

standard

21

There is obviously some

two

is

has

lion

degree of certainty.

noticeable

and

pelled with the

predicted from the other with any

we

(X) of stock averaged more
than 3,700 shares for the 21-days.
Despite a variety of Closing prices
was

tionship between these two vari¬
ables.
Hence, one cannot be

to be .44.

Benson

Farmers' Union program the farm

Closing.

Sales

the

rela¬

ample, we will be able to predict
Net
Change approximately 2%
more efficiently than we would if

1.00

table

no

ing the value of Closing, for

1.00

mean

almost

is

between these two indexes. Know¬

,z

X

Concerning the

There

.08.

will be able to

TABLE

(Y),

relationship between Sales
Closing (XY) was found to

value

following table provides the
basic findings:

be

The
and

these

The

the

adopt

the

Kuhn, Loeb Group to

to

continually

sponsible for much of his trouble.

i|0

seems,

between

of that relationship.

is

raw

n
it
should be dis¬

n

entered
correlation

two of the three indexes indicates

M.

that

prove

are

farmer

But

i

the

Indexes

The

Ezra

National

Both

Between

to

stores

little

farmer

meat.
Farmers' Union

The

any

as

The

U

'

<

be

braic

Charles

to

serve

Farmers'

.

accounted

ever

chain

the

being fed

doubt

overall variation was less than $6.
On the other hand, the spread of
the Net Change (Z) was found to

part

Dr. Vernon W.Stone

principles. The latest attack
must

and

squeezing
death.

was

over

Numerous analytical techniques
have been applied to the stock

packers

tion of farm organizations. If there

30-day period. Offer method
as another
objective technique, which in combination can spell
the difference between "harnessable prediction and unhar-

market.

of the News

soon,

through better understanding of market activity
patterns, offer analysis of selected change data for Interna¬

nessable risk."

Congress gets around to
which I doubt will be very
it should go into the ques¬

it,

is increased

course,

It tries to play a nonpartisan game
and
just issues a statement of

By CARLISLE BARGERON
When

Business Machines

back.

State College

Maryland

tional

United

Farm Bureau may decide to fight
That has been.its weakness.

Washington

ancl

CHARLES MERWIN BROWN, Research Assistant of

the

States Chamber of Commerce: The

From

By DR. VERNON W. STONE, Professor of Business

and

13

•

CHICAGO

ORLEANS

•

•

KANSAS

CITY

ATLANTA
-

'

.

*

The Commercial and

14

Company, Inc., and

Department of Economics

Director of the

Terming

recent slump essentially the "Sputnik Recession,"
a major
additional cause ensued from

our

spend about $95 billion to get our

employment

industrial equipment

sight.

which

of abundance.

cocked toward the
interest of those engaged

special
in

propose to ask and
the following questions; .*■

Where

does.

result

The

contribution
There

are

was

bile sales last year

will be seen a

binger of such a period of change,
Such a development will, of course,
'
enhance even further the impor
tance of the role of marketing.

the recession.

to

"

questions to be
arriving at

many

asked arid answered in

cynically but not unrealistically,as
that degree of unemployment that
clots not create undue restlessness
among the electorate. There-will
happen. ^
be much restlessness among ; tJ)e
Where the total dollar volume electorate about unemployment
oi business this year has been during the current session of Conabout $435 billion, we have what gress. And, from all I can djs„

it takes to make the total in 1959 cover, the new Congress will be
about $468 billion, or an increase so constituted that it will have
°f about 8%. This is the average much more disposition than .the

for the year.

What

Has Been

sales of the 1958 models.

now?

style or price? Or
The next question to which 1
people were disturbed
about business prospects and hence propose to address myself is, what
hesitant about buying?
Did they has been pulling us out of the rehave the money and credit to buy cession?
The answer is uncoma lot more 1958 model cars if they
f'ortably clear. Thus far it has been
had really liked them?
primarily government expendi-

Of

trouble really

and

Recession

the

.

How did
a

t

p p e n

slide

o

the

into

recession?
What has
been

pulling

out?

us

It

Where
we

do

is

all

here?

fact

What

are

to

things

to
about?

How

Dexter

;

r

M.

1

with¬
in the confines of this analysis, I
must omit some rather important
steps in

fact-finding and rea¬

my

soning.

As

of

States

Are

We

Now

meet here the

we

ume

in

business

total

the

vol¬

uct) is running at a rate of around
$450 billion. That is a rate about

higher-than it

in

was

the first quarter of this year, the
low

of

the
this

is

time

In

recession.

volume

point

dollar

record

high.

all-

new

a

Prices

up

are

about

2%

terms

of physical volume of busi¬

business

the average.

on

So, in

still short of the peak

ness, we are

hit

1 think

months

15

we

where

the

of

we are

detail

debated

this

question

will

be

long
as
economists
have any wind left in them. There
is no shortage in sight here.
But
some of the key causes of the re¬
cession

as

clear enough. One was
of orders for new in-

are

cutback

plenty, the problem of abundance.
In the intensity in which we are
encountering
it
in
the
United
States, it is a problem unique in
human history. Most of the world
knows nothing about it.
United

States

automobiles

have

we

to

provide
good order
-

to

cars

give

every

World

man,

woman

and child in the country an auto¬
mobile ride at the same time, or
least

until

obviously means that we
no
compulsion of ele¬
necessity to buy more mil¬

mental

equipment.

And

severe

ness

and

dence created

the

Russian

good

public

by the launching of

sputniks.

case can

In fact,

a

be made for calling

the recession which is
ing

confi¬

now

reced¬

the sputnik recession.

But there

the

was

recession

which

I

cause

find

of

par¬

ticularly interesting and of special
significance for a group which
concentrates cn marketing.
This
was

the

failure of the

mobile models
tomers.

to

Before

passenger

cars

1958

auto¬

charm the
the

1958

cus¬

model

were

unveiled, it
was
being confidently predicted
in the automobile
industry that at
Least 5.8 million of them would be
sold in the United States. But the

consuming public did not take to
ihem.
Only about 4.2 million of
them
*A

were

talk

American

sold

by

during the model

Dr.

Marketing

Keezer

before

Ass'n.,




of

much the

a

whole

particularly
goods.

It

plausible
sumers

thing is true
of things—and

same

range

durable

consumer

is

possible

to

make

casb that American

the

Chicago,

year

hence.

There

0f

can

among

the

see

as-

mv

outlines

rip-roaring boom shaping

a

ending June 30 next already
promises to run from $10 to $12

year

those

are

who

sociates

dicate in

billion.

But I

moment.

a

materialize

it

will

am

be

are

under

a

no

compulsion

far

as

their

immediate

conven¬

ience is concerned

leave it.

or

realm

The

they can take it
third lies in the

of

"optional consumption."
But if they decided to leave it I
would not be

talking rather

fortably about
would be
sion
we

devastating

ever

com¬

mild recession.

talking about

more

have

a

I

rea-

about

depres¬
than any

tures and

that
nor

I

of this state of affairs is
that

keting becomes

an

mar¬

absolutely basic

economic process. There is

the most uncomfortable boom ever

of

experienced. ' Ih the '60s, our
bumper crop of juvenile delinquents will no longer be juvenile;

be our lot. :This
fear of inflation has, in turn, done

simply

the

lot

a

is

price

to

the

speed

to

continuous

that

fear

inflation

into the

rush

delinquent, stock market to buy
common
Our economic society will be viostocks which have some special
lently churned up by the new in- capacity to ride along with inflathey"*will

^ot

be

revolution, >and

yet

have
the

off

learned

will

we

It

tion.

how to
edges

that the
stocks has
result of greatly
argued

be

can

to

zest

rough

very

buy

common

been largely the

,

orders.

I

hasten to add

passing neither moral
economic judgments
on .the

out of the recession.

mu

.

The

,.

next

.

-xrl

What

,

.

is

ness

The general course of busiwill

be

onward

right through 1959
have

some

and

upward

Consumers will

$15 billion

more in

in-

after taxes, than they have

had this year; and they will spend
most of it
Our manifold governments will be spending at an annual rate about $5 billion more
than they are this year.

And busi-

For

far

the

as

year

V right,

which is
to

pierce

iiien

First

'"ls%

}orm0netary thosi; at,the credit
Cxan!plt' controls tighten

wile*i is, and

unemployment.

on

have indicated,
states

is

same

again

As

credit

.

business

be

ment

of

firms

increasing
new

much

plant

faster

should,

of'1.5 million

than

they are.

For, contrary to a very widespread

illusion,

an

more

alarmingly large share

far to seek.

Our labor force has

tlf

n:

.

'

.
.

,

f don>t

t

5

but

now

beins

T

'chair-

&

^
ra4jno
,

.

f

rnnff„„C(t

^.1T.00

.^n5j'
JY*11 be

hnrnc 5
Jk wh^t
the-same dilemma—d that is what
happens when you get auck with
a d)1en)ma- If the Congicss apPr0Priates more money in an ef-

was

unemployed than

rjc*ht

pollntrv

1d

ree.

thp most VGXin£r i0K

wl,„t

.

And if

increase the

..

SpCcujativ(;

q£

k

I

their pur- we had then, a total of about 4.0
and equip-:million. • The explanation is not

unemDlovment

,t

d

running at about
it

speculative

down

damp

ahsorh

1

in the United

annual rate that

to

erdhUgjasm, they may be checking
some industrial expansion needed

the tbta.1 physical

of business

nnemma

.

,Thes° tv«n- strange twin wortontinuTne unemDl'ovmen?

as

the

annual rate of about $31 billion jn the Fall of
1957, when the rethis year to $33 billion next year.. cession started. But we have about

Our

T>lleffed
■■

future I have provided
Then^what Ts

outlook

!JuuiiuoK.

the

an

1959

recent

gets nourished by news suggesting
that the bet on rapid inflation is

civic

there to worry about? As I see it
theie are two big economic woines. One is provided by the prospect that our economic recovery
will not be rapid enough to sop
- up unemployment at a satisfactory
rate. The other and rather inconsistent worry arises from the widespread conviction that rather rapid
price inflation is going to persist
over the years ahead.

and

slowly—from

the

society.

undertook

i

volume

.equipment

improve

our

in

ing into a dizzy speculative boom
—and crash — particularly if it

A

firms will again be increasing
their expenditures for new plant

ness

to

had

have

we

months has potentialities of lead-

What Is There to Worry About?

business

the general course of business from
here out.
Where do we go from
here?

it

of

amenities of

lievy,y,
?f the

is:

question

zation

0

Where Do We Go From Here?

a tend¬
of our American industrial plant
particularly among people is thoroughly obsolete. For examgeneration, to think of pro^ pie, a comprehensive census of
ducing steel, digging coal, grow¬
metalworking equipment just
ing wheat or manufacturing auto¬ completed
by "American Machinmobiles as basic, and to think of ist" has disclosed that three
out of

ency,

of my

the

consumer

am

course,

implications

on

market

chases
One of the clearest

surprised
bit

a

high side. But there is no doubt
that a whopping Federal deficit
is in the making.
The prospect of a $10-$12 billion Federal deficit next June is,
of course, one of the mainsprings

a

known.

be

tuat the sort of rush into the stock

come,

to buy at least one-third of
every¬

wouldn't

I

if that turns out to be

up

sonably confident, that if the boom
c|0es

Most of those who do careful

than otherwise for the economy to

con¬

thing being currently produced. So

another

whole

a

we

under

hardly

avoid increasing the Federal def-

munity—obviously makes it easier

us

This
are

im-

an

)
by making adequate provision for improved profit prospects for the
spending civic amenities such as clean air, present year, coupled with what
has, as you know, held up remark-- clean streets, clean streams.
I am told is a marked shortage of
ably well throughout the recesSince he has written a best- high-grade common stocks.
;
'
sion.
At its lowest point it was seller—"The Affluent Society"—
Corporate protits are going to
less than 1% below its peak in the on the theme, I think I had better
be higher in
1959—quite a lot.
Fall of 1957. This stability on the hasten to add that I don't sub- And that prospect may go quite
part of the consumer—a stability scribe at all to what I take to be a long way to validate the rush
not
comparably shared
by the my friend Kenneth Galbraith's no- into the stock market to buy cornGovernment or the business com- tion that we should stop worrying mon stocks. But the fact remains
As

developed the governmental operations involved.
biggest traffic jam in the history I am addressing myself to the
question of what has been Dulling
of mankind.
at

such

employment can

increase

about more production and concentrate on using what we've got
But, as j more effectively. That, it seems to
War II we have sold about 65 mil¬ negotiate a recovery.
have indicated, most of the driv- me, would be throwing the baby
lion
passenger
cars.
We
have
We need both
about 57 million of them in rela¬ ing force in the recovery has been out with the bath.
tively good order. That is enough provided by government expendi- moreJproduction and better utiliwith quite a
transportation.
Since

of

was

general

unemployment

age

following

in

But

pulse Congress will be up against
one
very imposing difficulty.It
is that more Federal programs to

estimating in that line reportithat
the Federal deficit for the fiscal

smooth

other

an¬

And the final third of. the

to create

icit.

insurance and
compensation.

for defense

Still

freeze,

deep

designed

programs

win be running at a rate of more
than $475 billion at this season a

dustrial.

lions of passenger cars
every year.
We can take them or leave them.

shock to busi¬

eral

jobs.

^he total dollar volume of business

part by transfer,payments by goveminent, lor such things as old

ustrial plant and equipment. An¬
other was a slashing of new orders
a

the

oven

average,

too^ can be accounted for in large

It is the problem of

it should.

the

an

is that it points up

problem with which we must
cope
successfully if we are to
make our economy work as well
as

of

myself comfortable with
I hasten to add that

making

I have stressed this

The reason
bit Of history

everyone

get some light

may

orders.

whole great in¬
—

a

In

'

In

a

steel, rubber, $25 billion increase in business has
glass, textiles, etc., etc.—serving been due to increased consumer,
the automobile industry.
expenditures.
But this, increase,

ago.

Recession

likely to go from
here by taking a look at where
we have been lately and why.
So
I now propose to take a pass or
two at the question. How did we
happen to slide into the recession?

on

them, or—in

liked

let-down for

a

told

the

in

spring, somewhere around a third by this season a year hence. I can't
can be accounted for by increased
quite manage to do this yet, for
my government expenditures, mostly reasons some of which I shall in-

some

enough
Causes

the dollar volume of business since

head

but remarked that on the average
he felt quite comfortable.
So to
avoid
any
complaint that I am

the by the

of the country—if they had Federal. Another third can be acplace to run them. They counted for by a slowing up of
did not take much of a fancy to inventory liquidation. But this has
the 1958 models. There was a fail¬ been largely a response to governure in marketing.
The result was ment spending and government

United

(the Gross National Prod¬

$25 billion

credit

recently

was

more' 1958 model
than were bought if

dustrial complex

Where

in-

con¬

many

had

massive

part
had

these questions

answer

an

a

jection of deficit financing, largely
Federal Government.
Ol
the increase of about $25 billion in

American

that

automobiles

Keezer.

V

reduce these worries?
To

up

But

had the money and

buy

they

we

can

pick

to

questions.

remains

sumers

principal

worry

possible
these

of

We have had

tures.

argument on the right answer to

from

go

the

it that

was

we

I
his

last might have had to quiet this
restlessness by adopting new Fed-

By way of complaint
average fails to re-

an

who had his feet in the

man

Pulling Us Out

business stand
'

about what

veal,

complete explanation of the poor
Was the

a

will be heavy pressure on the
coming Congress to do much more
to create "full employment." This
has been defined by the eminent
British economist, A. G. B. Fisher,

suspect what happened to automo-

major

a

in

is des-

marketing

them

see

decade hence to have been a har-

year.

marketing I

answer

I

clearly

One consequence of this state
of affairs seems very clear. There

were to make the headway
that job which should be made

we

on

conception of the line of purchases
which makes for the best life.
I

—and crash.
eye

If

-

problem

immediately ahead,

In the years

as

Terms it "uncomfortably clear" that
and deficit financing have been pull¬
ing us out of the recession. Predicts general course of business
will be upward right through 1959, with substantial rises in
Gross National Product and personal incomes—with unemploy¬
ment and price inflation justifying some worry.
States higher
corporate profits may validate the rush into the stock market,
but warns of potentialities toward dizzy speculative boom

an

from

recovering.

to date,

up

tined to play an even more decisive role in determining our eco-

government expenditures

With

over

decisive con-

recession

now

are

we

five

next y°ar —a process dependent
decisively on more encouraging
Federal tax arrangements — business investment next year would
nomie success than it has in the
much higher than the $38 bilyears past
This is because I be- lion total I have mentioned. Howlieve we
are
entering a period ever, as I have already noted, I am
when there will be striking altera- putting down what I think is going
tions in the American consumer's to happen, not what I think should

glut in automobile distribution — underlining our basic need
for successful marketing as a key ingredient of a successful
economy

the

to

tribution

Keezer maintains

Dr.

i

Thursday, February 5, 1959

.

of marketing made a

KEEZER *

By DEXTER M.

Vice-President, McGraw-Hill Publishing

a

.

metalworking machines are harder; and the best of the avail10 years old. Modern ma- able equipment tends to get used.
chines are more than half again Regardless of the causes, however,
as productive as those produced a the fact remains that we are not
decade ago. Careful studies made generating new jobs fast enough
in my office show that we need to to bring the end of a serious un-

much

The Economy Today and Tomorrow

.

.

marketing of these things as
more superficial.
•;
Any such idea as this, I assure
you is thoroughly obsolete.
Suecessful marketing is a key ingredient of a successful economy of
abundance. A failure in the field

the

h

Financial Chronicle

(666)

.

-

™

thT

f°The°fears thatTa*lo't
*

* °

jn

hence to the da

stoje

mo reprice

Toon

®®

and

'

..i."

P

tlve b°om> ana D
•
For the short run it is my impression that the fear of continuing inflation is being greatly
overdone. In fact, I cannot escape
from it. Some of the stumble bums some suspicion that it is being
are fired; some of those staying
overdone for the longer pull, too.
on the job feel
the urge to work The root cause of inflation, a? I
increased. Those on the job, particularly in manufacturing, have
been producing more per manhour. This is a standard phenomenon
of recession,
and recovery

#
Volume

189

5818

Number

The Commercial and Financial Chronicle

.

..

At present al¬
nothing is scarce—except, I
recently rudely reminded—
good economists. In fact, we are
more plagued
by superabundance
than we are by scarcity. This is
chronically true in agriculture.
Currently it is also true of labor.
And our manufacturing industry
is also more than amply stocked
with producing facilities.

it, is scarcity.

see

1951 to become Office Manager of
Ryan, Hanauer & Co., the prede¬
cessor of the present Ryan
firm.

was

Under such circumstances

;

general

abundance—it

is

In J. J.
NEWARK,

the

—

neces¬

of

management

J.—Raymond

N.

been

admitted

to

B.

du

gen¬

partnership
J.

with

career

Stock
He is

our

Ryan

&
a

in

Pont, Homsey Adds

(dpteia' to The Financial Chronicle)

*

&

the

Bond

Fidelity

-

Union

Company in

1930.

affairs

the

bver

period

ticularly
test

talents

of

the

Sorin

for

sociated

along this line
provided by

negotiation

next

yer,

trading activities. He
ment

with

of the

of

a

also as¬

York

Depart¬

ray

left

that

post

City. Partners will be Mur-?
Sorin,

member

of

the

Ex¬

CHICAGO, 111.

of a new branch office to be
opened at 521 Fifth Avenue. He

vestment Plan

will be assisted by Mr. Maguire.
Mr. Lubliner will become As¬

La

ager

sistant

formed

securities

'

to

old A. HObson,

a move

is made to

at

and Norman D.

Finkel, Secretary

and Treasurer.

summer.

down.
This then, leaves as the
overshadowing worry that of ex¬
panding production fast enough
to take up the slack in uriemploymerit at a satisfactory rate. To be
done properly, this is primarily a
job of marketing. We have ample
producing capacity. The problem

increase

"the

services

from

to

and

consumer"

flow

of goods
producer to
marketing opera-

a

—

■[ tion. : /'./
This is a roundabout way of
coming to the inescapable conclu¬
sion that

people engaged in

mar-

keting have been moved right into

*

"

the center
and

the

of

economic

stage,

given the leading role.

nomically

clearly have

we

a

Eco¬
rela¬

tively good year ahead in 1959. In
physical terms the total volume of

business, in what I find my convincing calculations, will be up
about 7% above that of 1958, and
the economy will be on the up¬
grade throughout the year.
But
whether we do anywhere near as
well as we should depends deci¬
sively on how well people in marketing do their job.
I should add that everything I

'

"

"

"

have

sajld is based

on one

NEARING COMPLETION AT L'ANSE, MICHIGAN ON LAKE SUPERIOR

NEW CEL0TEX FIBERB0ARD PLANT

crucial

assumption.

It is that we shall not
start World War III, with atomic

1

weapons,

which

period

the

over

have

I

don't believe

with

Net

I

concerned.

been

1

number of shares.

and

Iowa —Harold

A.

&

Edwards

G.

With Carroll Sees.
(Special to The Financial Chronicle)

Francis
G. Doherty is now with Carroll
Securities Company, 1731 Beacon
BROOKLINE,

V Street.

He

'

.

Mass.

—

formerly

was

our

last quarter,

usually

our

with

Securities

Brothers

Now With

Jr.,

is

Draper, Sears

Mass.
now

—

Harold

affiliated with

867,726,783

Net Sales.

Costs

and

INCOME

Total Costs

Oreg.—Donald C.
Sloan & Co., Cascade Building, is

Sole

as

a

Sloan,

and

G.

Sloan

Donald

is
C.

..

from

and

Operations

Other Income

Income Before Income Taxes.

Vice-Presi-

Sloan,




Jr.,

Provision

for

(net).

Net Income

..........

Net Property, Plant and

•

Equipment.

47,551,259

.

1,248,900

Prepaid Expenses

and

Deferred Charges......

Total Assets

r. .7

818,955

878,191,129

CAPITAL STOCK

LIABILITIES,
AND

—

SURPLUS

Current Liabilities:
Accounts

payable.

Accrued expenses
Taxes

(less U. S. Treasury obligations)........
on

long-term debt due within

one year

$ 3,362,762
1,610,251
727,920
950,000
6,650,933
21,400,000
930,000

Net Worth:

for the

5,137,250
1,023,651

Common stock

Paid-in
Earned

10,581,140
32,463,155

surplus
surplus.

.

49,210/96

Year

2,421,379

61,495,093

61,628,376
7,000,855

(114,178)

361,001

7,361,856

..

2,990,000

3,478,000

.....

8 3,127,512

$ 3,883,856

.

878,191,129

59,206,997

2,662,365

6,117,512

Income Taxes.

•

58,832,728

6,231,690

Expenses

corpora¬

Vice-President and Treasurer.

•

Investments J

Total Liabilities and Net Worth

formerly

proprietor, is President of the

firm. 'C.
dent

C.

Income

868,629,231

selling and

administrative expenses..

Donald

73,192,157
25,640,898

depreciation and depletion..

Total Net Worth

Depreciation and depletion —

PORTLAND,

1957

Expenses:

Cost of sales and

Corporation

doing business

Less: Accumulated

Preferred stock

1958

Street, members of the New York
Exchanges.

now

28,572,015

Deferred Federal Income Taxes

OF

FOR TIJE YEARS ENDKD OCTOBER 31,

B.

and Boston Stock

tion.

Total Current Assets

Property, Plant and Equipment.

PRESIDENT

COMPARATIVE STATEMENT

Draper, Sears & Co., 50 Congress

Now

Inventories

811,514,473
10,327,867
6,729,675

Long-Term Debt Due After One Year

.

Huff,

(net).

Total Current Liabilities

(Special to'm Financial Chronicle)

'/ BOSTON,

Accounts receivable

Payments

chairman of the board

i

Cash and U. S. Government securities........

Co.,

and Vickers Brothers.

Inc.,

1958

Current Assets:

~

"

Keller

AS OF OCTOBER 31,

■

a year before.
best because of seasonal factors,
exceeded 820,000,000 with earnings equal to $1.52 per share.
October, the final month, recorded the highest sales of,any month
in Celotex history.
7
•"We arc optimistic for 1959. In our opinion, total building activity
will exceed that of 1958 and housing starts will compare favorably
with those of last year. With our new and larger production facilities
we are in a
strong position to meet and to share in the additional
demand for building materials. While we anticipate that competitive
conditions will continue, we expect our sales and earnings to increase.

Sons, Hotel Iowa Building.

.

:,

earnings exceeded those of the last six months

Sales in

W.

Burdick, Max F. Cutler and Wil.liam J. Ortman have become asso¬

,;

;

general economic recession and a low level of housing starts
adversely affected first half results, but in the second half both sales

Three With Edwards

with

ASSETS

$67,726,783 and earnings $3,127,512 in the year

The

KEOKUK,

ciated

were

compared with sales of $68,629,231 and
earnings of $3,883*856 the preceding year. After preferred dividends,
the. earnings were equal to $2.79 a share on the 1,028,651 common
..shares outstanding. The 1957 earnings, which included a $395,733
net
profit on the sale of an investment, were $3.52 based on the same

much better.

,'

sales

ended October 31, 1958,

shall.

My belief
; is an exercise in hope and faith
rather than knowledge.
Granted
its validity, however, we have a
good economic outlook which, by
performing your marketing arts
-well, I hope you are going to make
we

Copies of our Annual Report for the fiscal year
ended October 31, 1958, are
Write

to

available

upon request.

Secretary, The Celotex Corporation,

120 South La Salle

Street, Chicago 3, Illinois.

a

are

President; Har¬

is being greatiy overaone, i expect
to
see
the
stock
market
calm

-is

in

Jr., Vice-President;

tion that the fear of inflation, at
least over a relatively short run,

•

South

Officers

In the meantime, as the realiza¬

,

11

engage

business.

Harold A. Hobson,

of Abraham Bu-

larger quarters at 1370 Broadway.

partner.

offices

Street

the management

karesky, when

limited

with

Salle

Variable In¬

—

Company has, been

of the midtown
office, which will continue under
Manager

tricia

Sorin,

Financial Chronicle)

ANGELES, Calif.—Carl M

Buck Co. has* been formed witfci
William J. offices at 8242 West Third Street
Maguire, and Seymour L. Lubliner to engage in a securities business!.
have joined J.
R. Williston
& Officers are Carl M. Buck, Jr.,
Beane, 115 Broadway, New York President; Carl B. Buck, Secre¬
City, members of the New York tary-Treasurer; and Mario ManiStock Exchange.
grasso, Vice-President.
All of the men were formerly
associated with Merrill Lynch,
Form Variable Iny. Plan
Pierce, Fenner & Smith, Inc.

change, general partner, and Pa¬

in

(Special to The

workers

steel

our

was

Trust

Fidelity Union Trust

and

Company

wage

new

the

LOS

Mr. O'Connor will become Man¬

&

en¬

be

course,

•contract

to

ahead.
A par¬
opportunity to

notable

our

Will,

order

in

Form Carl M. Bock Cow

To Form Sorin & Co.

former Treasurer of Col-

Robinson & Co., investment
Co., members of the
bankers, which-firm he joined in New York Stock Exchange, will
tertain
comfortably
the
notion 1934 when the
Fidelity Union be formed as of March 1 with
that
not
merely
creeping
but
120
Broadway, New
Stock & Bond Company ceased offices "at
'trotting inflation is to be our lot
.economic

J. R, Willislon& Beane

Robert K. O'Connor,

the firm of r
BOSTON, Mass.—Carl F. Ogren
Co., 790 Broad
has been added to the staff of
Street, dealers in state and mu¬
du Pont, Homsey & Company, 31
nicipal bonds and specialists in
New Jersey municipal securities. Milk Street, members of the New
of *;
Mr.
Price- began his banking York and Boston Stock Exchanges.

to assume that we are going
show superlative capacity to

bungle

Ryan & Go.
.

eral

John

sary

to

has

Price

15

Adds Three to Staff

R. B. Price Partner

most

(667)

16

*

(668)

The Commercial and Financial Chronicle

.

.

Thursday, February 5, 1959

.

cant scale

Problems of

Investing Abroad

(I.) U. S. Aid (including the
Development Loan Fund).

.

By L. I. ESTRIN*
Retired

Export-Import Bank.

(II.)

New York, N. Y.

Middle East to venture into

an

P°LoanCapital

accomplishes only
purposes
of
"Capital Investment" — inflow of

which is

judged to be unattractive for other forms of pri¬
vate capital on the basis of the
pointers he gives on the ABC's
and problems of investing abroad. Mr. Estrin concludes that
the main retarding element in the Middle East is not the short¬
age of money or natural resources but is the inadequate use

foreign

and misdirection of

Ioans

area

the

friends

of

He suggests plain

resources.

lernalional

speaking by

the

underdeveloped socialistic economies

sincere but

reluctant and

(b)
tal:

materials

raw

natural

and

resources.

■

believes in "virtue"
"motherhood." Annual Meet-

everyone

or

Sanctuaries")

Bank

(7)

apt to fol¬

are

low

dev

braid

(b)

new

Point

of

View

of

Re-

lever>

investment

merous.

(4)

Estrin

Cultural

methods

■can

on

impact of Ameri-

in

the field

of

pro-

duction

urge

entire

their countries.

its, cleanliness, organization, teamwork, etc.

reproach, and—in turn
the complaining countries to
improve the investment climate in
recipient countries thereissue cordial or peremptory

courage this flow they pass
vestment taws which are

which

Americans

in-

succeed

may

the

in

realization

matter

the

of

the

run

cause

reward

prove

definition

how real they
a few figures

(1) The direct employment

"Investment Climate?"

dramatic

a

a^V°anb Un

at

un-

industries

fnvestmentsfwhile^ndia

tal

three

9,0(020) The^otaTpaid
for

FvninHS services in 1955

ing petroleum and mining, Latin
America had almost 4V2 billions

times

witti

,bv American

local

labor

and

billion.

was

<3) TRe Foreign Exchange

the

^2 '3illfon°wh\kh'not onl^

desperately needs

it.

When
—.

—

we measure

..li

1

It

.

A

in-gtune with the yields of the

that

vitrnr

QfonrHntf

hnwtPVPr

problem

It

is

purently

enough

wasn t

hearten the other sections,
#

Whi1o
.ret-

*

vvniie

mere

being

ress

WQC
was

uu

was

made,

no

Tanuarv

£el0^ the line m mid-January

dicate

T

capRal?

]?

.

chagrin

special

individual investors alone, or in dustrials
gTPS' sometimes enter this field level.

scale

to

e in-

the

600

h_

General

in

thp

Volume indications

were

dis¬
gen-

Fo0dS,

Daekappd

able to boost

was

fhe return is
itg

recent

scant

a

30

The

high.

at

tradi-

4.J0nal cbjvice for these Duality
i«1]Pc in view Df their

m.owfh

grow Ji issues in Aiew 0 1 e
kl&b standing m the market

dips." But
keep an ad-

on

help

doesn>t

^

o-0incr

vapce

.,

"

,

"

_V°,Ume I.nc0ncll,sive

„nf, a?fltoHf

are

net above that of the previous
year by a g0°d mar§m but

7

2S*

well

VahC6 g01>*

"

own busi-

j.

„ianf

..

been

prices

has

and

cnagrin hag been':
"Buy

the inabi lty of

.

n°t in pursuit of .their

cnenial

any

fact

foockfield.

5in

and minor

y'

1958
was
a
good
for the blue chip issues,

p.ugpiog-

conversely

a° ^
,

Where

counted

•

»_

hsted before. What

°

required

Blue Chips' Rise Retarded

the

*

tW_
meic

recor(j peak. That doesn't in-

sources

be

for improvement.

year

this type of which up to that time was the

the

but not muuul nut iiiu-

<

good business

a

would

recovery

to

divestment that carries the full
range oh mutual benefits which I
are

generally
geneially

nificent and

Standl"g vigor, however ap-

(c9 Manufacturing and Service has held m solid plus ground
Industry Capital: This is the key over last year s final posting
our

steeia
steela

nr»

_

abroad

to

enlarge

existing

its

a. sl§nmcant

Autos continue to be the
question mark section, even

these figures
'
a

_

^enlevement m price the worries over tne

business in pursuit of above-men- since

smaller

honed advantages.

been

recorded

The nature of this capital must
be clearly understood by the recipient countries. It is not just
cash, disembodied money, like

times

in

turnover had auto section were complex,
a
couple of The logic went somewhat this
the final months of way: If the large models of

IQfSft

T\\a TVitpp

*

#

*

*

g

,,

wpII in

an

1959

kn

i/q

r

lpft

small car lieia will De leii
government grants—it is corporate
Steels were bright as a to Studebaker and American
money.
Apart from its insistence
group more times than not and they will be able to show

(th-ls

.

when the market
lew 0£ ^hem

as"! md^^Where

spicuous

was

buoyant good results

for Lukens Steel, the
were

overly

con-

credit

where,

even

as

in

of American, the tax

case

used pp.

is

It the big

the lists of

new models
don't sell, it will
corporate money goes, the corpo- R i g h s which, incidentally, hasten
the
switch by
the
ration, in one way or another (as were well shrunken from the larger companies to their own
together

it

Th

cannot be

SG

'

("

covered

population of all

-

most

There-was

**•*> •— •

proper

g

on

long ones that a p p e a r e d small models and the competirather regularly last month, tion for the two independents

pro-

f.eeds .°J exports generated by

Latin

which

^n its'

of

Foreign Exchange requireAmerican, had 100 mil- meiRs of th?se businesses, plus all
lion.
The
matter of
"climate," Proi'its remitted to the U. S. partherefore, is of overriding impor- ents, but left almost $1 billion as
tance.
Obviously, capital is al- a Foreign Exchange surplus for
lergic to that part of the world RaRn America.
of

them out of levels the 4%
return was
a
above-average which is f in

snap

doldrums.

does

as oza-uuu aeamst oniv

|

answe?:

hav

their

-tg^6^ ^Too^aealns^onlv lh^se unalterab^characteristics: but'

n6 ^

ur

American canital

enough to

the

—...

HnWRp9ii«

give

this flow

on

Ed

to

of the arev 1 shall recite
term, and still less on the sources published by our Department of
of
capital, and the motivations Commerce on Latin America. Acwhich determine its flow.
cording to these figures:

ures

mind:

higher. This is predcontinuing expan-

or

icated

Rails did show a somewhat sion of volume without intersturdier tone than the indus- ruption and the strike is the
trials but it was not rousing unknown quantity. At recent

perspective, portfolio investment

and

vantages to recipient
namely, those I mentioned at the
end of may list, are not statistically measurable. Some of the
others are susceptible to measure-

that

level

*

l* "St

to

holding within easy
high is largely beearnings this year had

touch of its

investing in their old home- similarly inconclusive, the such as S t u d e b a ke r and
or Jews in Israel*
turnover dipping to a low American Motors which led
of value.
The almost exclusive source of point for the year early m the the procession last year by
these ad- Ahis type
capital is the Ameri- week. It was far from being their
startling improvement
countries, can corporation or firm which goes
significant
achievement in nrim The worries over the

brings

people new standards
The most significant of

coun-

is

economic

"capital investment" is the
subject of all these debates and
efforts, there is no meeting of ment, and to
on

country

wort

in

display in
their

in

recipient

a

ever-widening concentric rings.

The

while

minds

to

theEntire^economy

tnes.
of

benefits

ofBur^us";

often

the

on

and
through the, entire social structure

discouraging whatever feeble incapital investment

distribution

of life—working hab-

underdeveloped
through

usually

menf Tommittel^

and

way

These

invitations to American capital to
flow in their direction. To en-

fact

in

specializing in
becoming more nufacets, however, must

18 not yet a lactor in our problem.

fute this

The

Two

borne

and

Trusts

are

C0"-

(3) Development of skills
labor and mannagement level.

citing copious
figures to re¬

terest

Investment companies

Therefore, ihaeed

I.

*

the

opportunities
10081

officials

centers

foreign

*

volume in recept^years, such as further topside progress^ was
Royal Dutch> Shell, Phillips, Uni- to be made. Their lack of out-

be

boun¬

respond by re¬

upon

in

outside world in American securi-

Employment

was

prime exception, dustrials had forged ahead so
nad
Shares of other foreign companies far, and so
long, without the
of long-established world reputahelp 0f rajis ^at their assist-

Canada,

daries. Ameri¬

The

investment

ceeds.

<2>

this been

market

titular market leaders.

not reach the underdeveloped
world; and the investments of the

within

can

Like

(1) Inflow of foreign exchange:
imported capital plus export pro-

doing our
duty by in¬
vesting capi¬
their

for

cipient Country:

for

not

tal

Portfolio investment Capi-

this field

From

up¬

us

search

markets.

eloped

countries

and

pviqfinrt
exxhiuii,

nf
ui

Enlargement

business

set pat¬

a

tern: Under-

occasion,

on
stock

MSBOtnrjam sass wswxas

ings of the
World

week's

very'Timi'ted 'JpuLbmy lit fairly general feeling

"

as

Despite flareups by selected The fact that the issue has

,

favorites

limited.

issues, investment on any
major scale in outstanding shares

(5) Utilization of locally availUtilization of
able

Corporation
but

bond

capital is tendered.
Introduction
tion

Finance

important

are

'

temporary invitation for foreign

Everyone today believes in
V
"capital investment
abroad, just

major

Staru°mustUbI1reDaidVeStment

when

even

STREETE

exchange.^Managerial ben- largely a standoff with much cause
Bank,"world Bank andTn- backing and filling by the been projected at the 1957

import

underdeveloped world as to benefits of
investment climate, and the employment of U. N. and
U.S. A. technical aid. The author also has advice regarding
a

the

of

one

proper

investments in

By WALLACE

(III.) World Bank.
(IV.) International Finance Cor-

explains the unique ability of capital invested

in extractive industries in the

THE MARKET... AND YOU

new

Vice-President, Irving Trust Company

Retired banker

only on a Governmental
quasi-Governmental level:

or

ted

we're soL

There

hints that wiH be rough. And

if the

Big

t,ows from the first: Corporate the multipoint gains of Three
are
forced
into
an
money flows only in pursuit of the Lukens, carrying it to a new emergency switch, their profcorporate business, from which it 1958-59 peak, were largely its will be affected adversely,
cannot be deflected.
,
t
^
short sellers <*etFrom the point of view of the
recipient country this means one

yital thinS: private corporate
tol
1

PQia 11

of

Ka

/th

ri

Vt

a!

r\

J

Kv*

cap"fit

rt

^

+ifl ufrv,

So

the

auto

\ i?

ffroiro

-24-

4-r.11*

rtlrt

r-w

rtTTTI

/\

was

auto group

^inS interested in the item watch-and-wait
again. In addition, the usual
Vtl

a

one.

/I

What Are the Advantages of

Capital Investment Abroad?

(a)

From

Point

of

View

of

the

U. S. Investor:

cuities
of the
five-year Development Plan of India, which is trving to accomplish' its objectives

°

Jill hAbiUty t0 ^Trl'ap foreign oTprivVtrca^tefHwrcantSiv
eign excrhangeacontroirleiS °funderstand their significance.
foreign
(2)

Availability

labor,

(8)

and,

on

of

cheaper What

occasion,

K
having of freight charges if

goods

are, produced

Is

of high

closer

to

.

(4) Generally wider margins

k

of

Purposes

la) Loan Capital: Capital

ket in the

sense

may

bonds

be

source

of

of

Mar-

of availahilitv

ruled

foreign
out

capital for
i.L

t

of

pur-

countries

as

a

a

mainr

long period
o

CiVH+

oar1v

in

1957

fg^iEsfprfvate
corporate capital.

«-n

astotheWpe oTAme^icaXvest- are, UR ,in mid*year. and the Retter §rade rails'
ment capital that is available,
realization that whether they hovering around the

«

to jts motivations and as to the

mutuality of interest and advan-

.i

steels to some extent was the quality issues are concerned,
fact that their labor contracts Southern Railway, one of the

have

a

strike

or

.

not win

fig- despite

,

■

good

a

0

bee»

% level

showing

•

.1

t

tages on th® Part of the investor ure importantly in the re- through the recession year ot
J/10* the recipient, we can turn to bound in their earnings for 1958 and official forecasts
tlle problem of "climate' with

a

0

.

ic

on

n

•

j

_

1

•

i

l

•

_.i_ i.1

Seminar

page

during

.

.

better hope of understanding why this year. Allegheny Ludlum, that a
thprP
iron
nnrfQin
bphnopn

Fund,




..

.

^he Carrier section is still the
other high yield one even where

as

funds of private investors to
chase

profit.

«Capital»-for

Of This Discussion

UiUW1,18'

eflect of ar»Y attempt to channel sPAlt early in lyo/.
corPorate capital is to stop its flow.
Weighing on the

year.

1

,

.,

substantially better
.

L

«

«

^

„

Volume

189

Number 5818

...

The Commercial and Financial Chronicle

(669)

year despite
the first half.

[ .'■"

the troubles in
/

*

".'V* ;':v V-

❖

latter

The

product accounts for half of
all sales in the country. More
important, the big play in cer¬
tain of the cigaret issues

has

still

bypassed U. S. Tobacco,
the shares having held in the
narrow
price range of 19-32.
Mixed Reactions to the Oils

Oils

weren't

definite

attraction,

statistically,, to
followers.

their

without

considering

lems

of

the

Standard
sheet

Co., national investment bank¬
ing
organization
with
head¬
quarters

in

New York

Seattle

of

its

Seattle's

TORONTO,

was

vest
ada

associated with Wm.

open¬

newest

employed

with

R.

W.

Beck

Dealers
is

Money

Canada —The
Association

sponsoring

courses

on

in

"How

lecture

Invest

Securities"

In¬

Jan.

bia in Vancouver.

■

Northeast Distributors

•

Your
12

Formed in Boston

to

BOSTON,

Mass.

Northeast

—

Distributors, Inc. has

been formed

With offices at 50 Congress

■

tn engage irt a. securities^

Now Quinn, Neu Co.

ment

Ltd.

Can¬

Mar. 16 in Burnaby, British Co¬
lumbia, and Jan. 14 to Mar. 18 at
the University of British Colum¬

&

Associates, consulting engineers.

invest¬

of

public
to

pUidUUJI, X-iUl., It. O.

-Donald, /The
Western
City
Company, Ltd.; and H. Eckman,
McLeod, Young, Weir & Company,

Investment Courses

Pacific

P. Harper & Son & Co., a Seattle
securities firm after having been

office, 1411 Fourth Ave¬
nue A
Building. James G. Frazer
is regional manager.
As the oldest and largest

with

V.U1

C.

Lecturers will include Professor
banking organization in the
Quinn, Neu & Co. has been L. G. Wong, University of British
dealing in tax-free
bonds (municipal bonds) formed with offices at 40/ Ex¬ Columbia; J. L. Duncan, Wood,
exclusively,; the company
also change Place, New York City, to Gundy & Company Ltd.; W. H.
maintains offices in Atlanta, Bos¬ engage in a securities business. McCormack, A. E. Ames & Co.,
Officers are Kevin Quinn, Presi¬
Ltd.; R. C. Parsons, Wood, Gundy
ton,
Cincinnati, Detroit, Los
dent; Louis Neu, Secretary; and & Company, Ltd.; M. Ryan, PemAngeles, Omaha and St. Paul. The Peter
Neu, Treasurer. Mr. Quinn berton
Securities
Limited;
N.
company, now in its 61st year, has
been
a
partner in
Quinn, Thompson
Osier,
Hammond
&
was founded in 1898
Nanton
■
by the late Loughlin & Co. /
Ltd.; A. Wilson, Royal

Officers

are

United States

public

.

James*. A.

the

Hutchinson,

sen, <

Treasurer; and Barbara

Curtis, clerk.. Mr.;Hutcfainson
formerly
&

a,

Curtis

have- been

-

and.. Miss

with

Nichols, Inc.

a

tax

1,600,000 Bell Telephone Share Owners

profit
local

other

troubles, including anti-trust
rumblings over price hikes.
taxes

Mosf

gasoline
chilling, the pre¬
sumption being that autoists
on

small share

ore

Women

owners.

are

the

largest

group.

also

were

will cut down their
*

More than

250,000

are

Bell telephone employees.

use.

*

Union Oil of California, like
the

industry generally, had
trying times in 1958.
Some fairly
impartial esti¬
some

mates of Union's reserves set
a

price tag

share at about
going market
level.
On
a
time-earnings.
Union, with a ratio of only
double

per

the

15-times the low 1958 results
is far from

being overpriced.

Ratios for several other

parable

companies

com¬

are

price
than

in business.

Millions of

tag, moreover, is
a

more

The

a
year-end stock dividend and
this year's was 4%, or double
the declaration of the
previ¬

as

No

by Gulf Oil and the
stock

common

that will result if Gulf

via conversion
ownership of Union. But

even

here the stock would have to

above its 1957

a

of points

score

levels

—

peak—or

going

over

one

owns as

per cent

shares.
or

About half

own¬

much

of the

own

less.

fifteen

.

Women

before conversion

would become probable. And

are

the

largest

hold the most stock.
of

the

share

owners

group

and

Over 250,000
Bell tele¬

are

are

owned

tion

by individuals.

these

to

direct

other

people have

beneficial interest

an

important,

through the hold¬

against the dilution effect has

pension funds, investment

such

fry Gulf in taking
m'ammoth

a

on

Union. The West Coast prob¬
lem has been

largely

one

of

oversupplies of fuel oil. most¬
oil to natural
gas. But
this

is

the

fact

against

that

Union

represents

vast

natural gas

with all the profit

possibilities

the

reserves

of

represents the great majority

of all the families in the
country.

ly because of the switch from

of A.T.&T. bonds, are the

financial foundation of
to

serve.

For without

our

would not have the

ability

the money

they have put in the business

you

quality and
you en¬

ing ahead, begins with good
ings and

[The
time

views
do

not

want

prices which allow

for 735,000 employees.

Obviously, investors will continue
supply capital in the amounts

required for present and future needs
only if they
money

in

to

expect the Bell

can

earn

a

return

on

the

of other
So

companies and industries.

telephone

progress,

and the ad¬

vantage to all that comes from push¬

coincide

"Chronicle."

expressed

in

with

They

those
are

of

this
any

the

presented

,as those of the author only.]




BELL

TELEPHONE

fair profit.

of life which in
inven-

/
-

tion, nourished enterprise, created-

jobs, raised living standards and built
our

they invest that is reasonable

comparison with the earnings rates

a

country has stimulated

our

earn¬

good and improving service at

That is the way

national

As

long

—and
able

the

us

strength.

as we

earnings
to carry

live by this principle *
arc

sufficient to

SYSTEM

en¬

it out—the future of

telephone is almost limitless in

possibilities for sen-ice to

supplies

necessarily at

in

faith that Americansv

and wages

suggest.
article

our

joy today. Nor would there be work

System

A.T.&T. share owners, and the
owners

are

generally husband and wife. Many hundreds of hospitals, churches, libraries
charitable organizations are among the holders of A.T.&T. stock and bonds.

quantity of telephone service

to

The total of direct and indirect
owners

farms,

on

names,

and

com¬

panies, unions, savings banks, etc.

holding in

live in cities, towns and

About 450,000 of the shares

of

millions of

to be

shown

owners

country.

In addi¬

owners

A.T.&T. securities, many

A.T.&T. share

22,000 communities throughout the

two

Some 85 per cent of all the shares

ings of their insurance companies,

weighed the confidence

OWNERSHIP IS WIDESPREAD.
in

phone employees.

picks
its 22%

move

small share

are

individual

over

million of convertible deben¬

up

one

l/30tli of

ten

Union Oil stems from the $120

dilution of the

Tele¬

American

stock. Many thousands own five and

shares

tures held

More than

A.T.&T. stock.

people in all walks of life.

ers.

concern

of

owners

Most of them

lards its cash payments with

Some of the

own

phone and Telegraph Company stock
are

points under its 1957
peak. The company is one that

year.

telephone

use

companies.

1,600,000 people

dozen

ous

people

735,000 people work for

the Bell

over

the 20-times mark. The

The Bell System is an outstand¬

ing example of American democracy

service.

A.

was

partner in Hutchinson

Co.Mr..? Andresen,

prob¬

Jersey's

Street,

business.

Jr., President; Thomas E. Andre-

least

at

Venezuelan

some

Increased

1950 he

City and

has announced the

service

Northwest Company, of which he
was.
a
Vice-President. Prior
to

&

$90 million from

of

and

joined the Nuveen
organization following nine years
of

uvvuhiim

IDAGSponsors

Frazer

of their
obviously the

But

shift that cut

Danish-born Hol¬

a

many

public wasn't in much of
mood

Mr.

SEATTLE, Wash.—John Nuveen

porting good gains for its Chicago,
King Sano cigarets, is an im¬ ing in
portant factor in the defensive regional
business.

Nuveen,

lander.

New Seattle Office

..

high return in the tobac¬
cos is the 4¥z %
in U. S. To¬
bacco which, apart from re¬

snuff

Opens

"

A

-

John

John Nuveen

17

you.

H.

P.

The Commercial and Financial

Chronicle

.

.

from time to time in trade be--

is inevitable

More Statements

ank Holding System
:

Economists

Hailed by

In

Univer¬
sity Professors endorsing group
study by two New York

Dr.

Nadler and Dr.
York Uni-

Marcus

cles

not

were

present year. The

publication in

*

'

.

Minister of Finance for

v

they run contrary to the principles of economic co-operation we
jointly agreed upon in 1950, namely "that the economic efforts of
the production and resources

combined

no

as

i.

What

versity and released Monday, Feb¬
ruary
2, such companies have
helped assure the public of ade¬
quate, efficient and competitive
banking service and benefited

stockholders

bank employees and
as

Findings of the economists were
disclosed by

Baldwin Maull, Pres¬

ident of Marine Midland

Corp., a

bank holding company which owns
11 banks with

168 offices in New

The authors state that this

study

discloses

organization

of
a

good record. They add that as a
number of regulatory uncertain¬
ties have been resolved with the
of

enactment

the

Holding

Bank

Company Act of 1956, group bank- "

ing is gradually becoming better
understood and appreciated.
Bank holding company systems,

are

development,

American

native
found

by Dr. Nadler and Dr.

Bogen to:

(1) Benefit bank employees by
broadening promotion and train¬

ing opportunities, providing uni¬
form retirement

benefits and fa¬

cilitating stock ownership.
(2) Benefit bank stockholders
by providing a much greater mar¬
ketability for their equities.

(3) Benefit customers by fur¬
nishing a staff organization to as¬
sist managements of affiliated
banks to provide a fuller service,
i
Banks in registered bank hold¬
ing company systems, the study
shows, account for one out of every
17 banking offices in the country,
but a much higher proportion in

states of the middle and far
banking is most
highly developed. Banks affiliated
with holding companies have real¬
ized a higher than average rate of
return on capital funds.

many

west where group

"Banks

with

affiliated

holding

companies," the report points out,
"retain their identity and a high
degree of autonomy. Each bank
has

its

own

composed

board

mainly

or

of

directors,

entirely

of

people living or working in the
community or area served by the
bank.

By its very nature, group
banking provides a high degree of
decentralization, a dominant trend
in business management today."
In its conclusion, the report ob¬

a

demand

enormous

for industrial

materials.

Hon. D. M. Fleming

The decline

durable goods manufacturing dropped noticeably.
The downward trend of industrial production and

despite

our

employment

sensitivity to world markets and trends in the United

unanimous confi¬

expressed for its continuation in 1959.
production was sustained by a variety of factors dur¬

writing purchasing power and thus strengthening

production and

base of

/

capital investment in Canada during 1958
will likely fall but little short of the record $8.7 billion. The Gross
National Product will reach a new record of $32 billion. Produc¬

*

in

On

developments.

the

during

domestic

were

front,

Not

for

has

''

importance in

1958. The visit of President
Mr. Dulles, to Ottawa last

was

warmly welcomed by Canadians.

It provided

a

val¬

opportunity for the sort of free and frank exchange of opin¬
ion which has long characterized our relations as good neighbors..
A further such opportunity arose during the meeting of the United
States-Canada Joint Cabinet Committee on Trade and Economic.,
Affairs in Ottawa in January of this year.

William H. Griffiths
H.

Griffiths

passed

Jan. 28 at the age of 52.
Griffiths in the past was a

away

Mr.

Vice-President of Lord, Abbett &
Co.




similar objectives in the
each other's best customers it

Canada a"d the United Spates pursue
field of international trade.

But

as

manufactur¬

new;-

Despite the de¬
the
value
of
Ontario's mining output ite.. 1958
'reached an all-time record of $800 million—
a
fourfold increase in value over 1945.
Al¬
Hon. L. M. Frost
though production of pulp and paper and
forest products declined slightly, the upward
trend in outpqt .(which has doubled since World War II) has now
been resumed. In pulp and paper and in manufacturing, generally,
there are increasing signs of recovery.
During the past yeai\
personal incomes and consumer sales continued to advance while
capital investment, which has been equivalent to about.one-quarter
of Ontario's total' gross provincial product, remained at a high
level. More residential housing units were constructed in Ontario
world's largest

in base metal

reserves.

prices and production,

.

;

'

.

-

*

-

in 1958 than in any year in cur history.;

V

"

1

.

.

•

- /

augmented last year
by two events of tremendous significance to the future develop¬
ment of the Province: Western Canada's huge resources of natural
gas became available to the people and industries
of Southej^i
Ontario when the Trans-Ganada Pipe. Line came into operation
Power and energy

uable

William

Many

cline

Eisenhower and the Secretary of State,
summer

broad front: mining,
energy, con¬

mines have
come into
production, including iron ore, nickel, copper,
zinc and uranium—of which Ontario possesses
the

development of the Commonwealth within the
expanding world economy. It was recognized that

vital

place across a

'

objectives of the Conference could not be realized without: the
co-operation of other countries, particularly the United States.
Relations between the United States and Canada continued to
matter of

taken

ing.

the

a

approaching the six million mark. "
World War II expansion

forestry, agriculture, power and
struction and, most particularly,

but to advance the

be

It is now

Since the end of

September.

an

economic heartland

nearly two million, or 50%, since 1945—almost
double the rate of increase in many countries.
;

complete without mention of the Commonwealth
place in Montreal last

framework of

*

opportunities for rapid growth, and development:.
Ontario's
population has increased by"

.*$*£»

Trade and Economic Conference which took

growing economic needs."
The
draws attention, however,
to day-to-day evidence that there
is ample opportunity in this coun¬
try for unit banking, branch bank¬
ing and holding company banking
to grow and prosper side by side.

Ontario called the

is

.

.

•

proved to be the most successful operation in Canadian financial
history. It has achieved a high measure of debt management, has
helped to ensure the stability of the Canadian currency and pro¬
vides a sound basis for the financing of Canada's future expansion.
In terms of Canada's interests in the world at large, jio review

of its demonstrated ability to serve

report

cause

•

Comprising a vast, resource-rich area and accounting,,
half of Canada's manufacturing production, the Province pre¬

represented by five

tion banking disappears in the face

"gradually restrictions and
prejudices against multiple loca¬

without

sents outstanding

This Conference achieved decisions and understand¬
ings which will go far to foster mutually beneficial trade and eco¬
nomic relations within the Commonwealth. But, just as important,
the Conference was outward looking. It sought not to restrict trade,

serves

Council,

of Canada,

outstanding Victory Loans was refunded in the long-term sector,

of 1958 would be

President of the
of Ontario

Province

marked by two signal
the Canada Conversion

Loan, under which 50% of the national debt

development proceeds and our
Canadian participation in projects
These are but the legitimate na¬

LESLIE M. FROST

HON.

;-

1958

assuring

foreign capital.

Prime Minister and

winter, and the trend to increased personal
expenditures is expected to continue, with

Canada

important

investment has played a very

than

problem this winter its proportions are expected

consumer

facilities for consultation

recently and that the

tional, self-interests of any developing country. Canada is entering
a period of renewed growth.
Her prospects are more dazzling
ever.
Canada remains the best investment in the world.

1958 equalled that of. the preceding

revived interest in durable goods.

be concerned over

to

trade and, as Canadian

matures,

undertaken by

and growth factors are asserting themselves as we view the
prospects for 1959.
Corporate profits began to move upward again in the third
quarter of 1958 and there was a changeover to inventory accumu¬
lation.
New capital expenditure plans have been appearing in
increasing volume in recent months. Currency and trade improve¬
ments in the United Kingdom and Western Europe together with»
recovery in the United States give promise of an upturn in world 1
demand for industrial materials.
Finally, while unemployment

Events

our

economy

year,

and

exporting to the United States.

Canada's resources. The present Cana¬
dian Government is vitally interested in resource development and
fully conscious that outside capital is essential to that objective.
We welcome American capital, and mean to maintain a climate
hospitable to it. What we are concerned with is broadening the

Public and private

income

as unjustifiable and in contra¬
GATT. Canada is ready to co-

regard

role in the development of

payments from Government. Widespread federal tax reductions,
increased fiscal payments to the Provinces, and additional assist¬
ance for resource development
all played their part in under¬
employment.

also continues

United States capital

public works, with emphasis on winter construction. To an impor¬
tant degree personal incomes were supported by higher transfer

to be smaller than last

~

nevertheless it continues to be of the utmost
importance to our good relations that moderation and due care for
the interests of others be observed,

spending, record residential construction, continued record levels
in our export trade, and a far-reaching Government program of

a

we

.

have been improved;

ing the recent recession, among them record growth in consumer

continues to be

These1 restrictions

actions have abated

Canadian

in volume terms during

;

quantitative restrictions. . :
the agricultural
surplus disposal activities of the United States Government, inso¬
far as they tend tcr damage our normal commercial interests. The
particular area of our concern relates to wheat, flour and other
grains. Here the fundamental problems arise from the accumula¬
tion of large surpluses under the stimulus of price supports. Real
solutions can only come if and when the problem is attacked at
its roots. One of the features of the U. S. surplus disposal program
which has troubled us most is barter transactions and tied-in sales.
We welcome the further assurances given us at the recent Ottawa
meeting that in ail surplus disposal activity, the United States Gov¬
ernment would endeavor to avoid interfering with normal com¬
mercial markets. We acknowledge that the effects of these trans¬

And it is worthy of note that;

States in the latter half of 1958 and the almost,

tion

also true of U. S. quota

Canada

States, the extent of the business contraction was not as severe in
Canada as south of the border.
Nevertheless, it is reassuring to
Canadians to witness the recovery which has occurred in the United
dence

-J:

.

ciency and unhampered by arbitrary

Europe and the sharp

though short setback in the United States saw Canadian industrial
production and employment decline in the period from the summer
of 1957 to the spring of 1958.
Inventory liquidation set in and

checked by April of last year.

,

meanwhile, continue to bear harmfully on one of our
most important primary product exports, and Canada believes the
best solution would be to allow production and demand to find
their economic level in world trade on the basis of relative effi¬

markets and the tempo of
international trade in 1957-58 could not and did not leave Canada

was

v

policies regarding
the import of Cana^

be said about the effects of U. S.

The quotas,

in v/orld eommodity

Slackening growth in Western

can

adjustment should fall on countries

expansion in
1955-57, paced by a record capital investment
boom arising from a rapidly increasing world
an

urged the United States
they affect Canadian

shall continue to do so.

we

operate in any equitable'solution which may be found through an
international commodity agreement on lead and zinc.
However,
Canada does not accept the proposition that the entire onus of'

growth.
enjoyed

and

vention of U. S. obligations under

high level of economic ac¬

resurgence not of boom proportions
that promises steady and sustained

a

one

,

Of America's least known type

a

tivity,
but

unscathed.

York State.

banking

resumption of

are

States.

Today the omens bode well for

asserted itself.
a

was

strength of the Canadian economy re¬

mental

Canada

/

well.

will be remembered as a time
arrested and the funda¬

recession

when

other continental commodity is so pertinent, to thikIn various notes and again at the Joint Cabinet

oil.

restrictions on
dian lead and zinc. The U. S. market is: of crucial importance to
Canadian producers of these base metals, accounting for over 50%
by volume of total Canadian production.. These restrictions preju¬
dice a resource program of importance to the economic strength
of the whole rWestern: world. They transfer to other countries the
burden of adjustment to the decline in:,world demand and to thq
cessation of U. S. stockpiling. So far as Canada is concerned, they
tend to relegate Canadian producers to the position of marginal
suppliers while protecting uneconomic production in the United
oil

growth, maximum employment and

The year 1958

Bogen

best

■.

Government, to remove these restrictions as

Canada

stable prices.
juies

;':J.....}

Committee meetings in Ottawa, we have

Canada, as in the United States and abroad, there is encour¬
aging evidence that the economic winds are beginning to blow fair
again as we embark on 1959V The paradoxical concurrence of
higher than normal unemployment and an inflationary potential
in our economy is giving us concern, as, indeed,
it is for many other nations. But we are taking
firm action towards the objectives of real and

Nadler

of both countries be used for the

results."

Surely

•

In

Marcus

defense and that

the two,countries be co-ordinated for the common

y

oil imports

sustained

In-"

deed, We hold that not only are the current restrictions in conflict
with the General Agreement on Tariffs and Trade, but also that,

I

FLEMING

that imports of our crude

threat to the national security of the United States.

any

;

,

c

/-

Canada cannot accept the argument

.

are

■

reference

DONALD M.

HON.

v

the rate of exploration and develop-'

also indirectly in respect of

following arti¬

the earlier issue.—EDITOR.

:

concerned with the effects
Canada, both,

ment.

received in time for

in Canada in the

Jules I. Bogen of New

occur

directly in'terms of our present and potential markets in the Mid?
west and Pacific Northwest, markets we regard as "natural," and

Review and Outlook

of Jan. 29, we published a large number of
commentaries from Canadian officials, bankers
and businessmen reflecting their individual opinions as to the course of trade, industry and finance

According to a six-month study
bank holding companies made

We continue to be deeply

of the United States restrictions on oil imports from

:

Issue

banking structure.

by

Canadian Annual

our

that frictions

tween them.

the Outlook

on

For the Canadian Economy

releases

Head of Marine Midland

of

Thursday, February 5, 1959

.

(670)

18

suppliesWere greatly

Secondly, half Ontario's share of the St. Lawrence power develop¬
was fed into the Provincial power grid.
This, coupled with

ment

Volume

189

Number

5818

...

The Commercial and Financial Chronicle

(671)
the installation of additional
generating units at Niagara and else¬
where in the
Province, served to enlarge Ontario's electric power
/■supply by 1*4 million H.P. last year.'
»
.."/
•
In the coming year, the St. Lawrence

at the Main

News About Banks

Seaway will create, in
( effect, an ocean waterway from the head of Lake Superior to the
"
markets of the world. Steps are being taken to
develop a new 3
/"tidewater port at Moosonee on James Bay which will facilitate J
*jthe exploitation of the resource-rich northern parts of Ontario.
/With a rapidly growing population in
well-planned■* com: munities
enjoying the highest standards of education, with a
system of transportation, including highways unexcelled
anywhere,
and with modern

has

new

been

post, Mr. King, who
Dry Dock since

with

1929,

NEW BRANCHES

connected with

NEW

OFFICERS, ETC.

Bankers

and

REVISED
-

CAPITALIZATIONS

.

has

added

responsibilities

banking floor

ac¬

tivity.
si:

•fi

si:

Hempstead

Bank,
Hempstead,
given approval to increase the capital stock from $1,350,000 consisting of 135,000 shares
of the par value of 10 each, to*
$1,500,000 consisting of
300,000
N.

and

/

Ne

,,anv

our

,

First National City Trust Com

•

>

York

has

in

annointcd

w
Bascom H. Torrance Senior

New

Jersey, New York State
throughout New England.

and

Vice-

*

*

*

^

President. Mr.

X

Torrance
-

$
■

vy4

J.

New

York

Eick

.

has

joined the
staff of Guaranty Trust Company
of

Tfpresept.. asi;si:gnmentS,:.
/which /.include

•

Donald

-

will

continue his

-

V
'

In this

CONSOLIDATIONS

'

expanding plant and equipment, Ontario's
There is challenge and there is opportunity.
progress-has been in the past, our future
/prospects are even greater.

future is ^bright.
/Eminent though

Office, 742 Lexington

Avenue.

"

■

19

as

second

a

Y.,

was

shares of the

par value of $5 each,

;:i

*

J.

Dominic

Vice-:

Pastorelle,

*

Vice-

W President in the pension trust de- President of The
County Trust
partment.1 ■■•
.> /
:
-/Company, White Plains, N. Y./
4
L >*
«
*
i. ,.'completed forty years of service
.

;.:r|Mse ryjL

iJ

c

e'

a s

f

*

William H.

-'A Chairman of

}

to

misunderstanding, the accompanying
#1/7
7
AVtllxT/t/kMt'llirkAiS
inadvertently omitted from publication

V article was

ft P

the
either
riii

/IA1

"f

A lr

the Board of Bankers Trust Com-

jUhe Trust Ino

mmittee.'

Assistant, Vice-President

Vfi

counterparts which; appeared vi^Hc^has been a
of Jan. 15 or Jan. 22^DlTOR:^^ym ^P^

issue
t;

bank's

dent 'since
nee

41041. His pro^
motjo niUo

;-^SHERMAN HAZELTINE vfe/'./ /'/'

Chairman of the Board, First National Bank of Arizona

m

Bascom

Seriior/Vice-

5

: >:

H.

;U

-

-

,

National

Torrance

Bank

and

Pittsburgh,

nany,

will

Public

delations
•;

V

;

Crops and cattle enfoyedm splendid
farmers

and

year

r

New

*•
'

receiving higher
prices on expanded production.
~* '
A
at<13With minor exceptions, our tourist busi.ness—a Very
substantial contributor to the-'

i-

..i.

branches

will

operate
To,

e

.

the

o

four

offices

CU»t»n

■

-Trust

;

!

^economy—has enjoyed its best year

"■i&J Construction
-high level.
,h\r
.

The state's

important

continue to make

a

y
1
facilities 1

military

the ( electronic

S.

'

•

,

/

Industry in Arizona,now ranks as the number one source of
/income in the state. We are particularly fortunate in the metroJpolitan areas of Tucson and Phoenix to have secured highly de¬
sirable, garden type industrial plants devoted to electronics, aug¬
menting the well established aluminum extrusion and aircraft
-

components production facilities.
Tnent

manufacturers

find

,for their operations.
v
Total-bank deposits

.'for

the year.

The

Arizona

An

increasing number of1

communities

highly

'

>

First

National

Bank

of

This bank concludes

gar-

approximately 8%

%

ffi

,

;

-

-

'

v

outlets.

.

+V»

A-f

shares of the
A

AAWt

WVMI

A

same

value.

par

'

m

JS&SXSi£SS?£

$3,147,210 consisting of 314,721
same

S«

par

Ss

Si

m,

.

Trust

York

announced

announced

by

Horace

Chairman

of

$2,882,400

,

„

Stanley

_

,

has

an-

admission

the

& Co.

of

A.

Douglass Hall and H. Lawrence
Darker as general partners, effec^ve
4.

department is to the divihandles

the

bank's

The

Sullivan" joined Manufacturers Trust Company in 1956. His
Mr.

Dock

has

is to

the

northeast

division

Savings

announced

Manager

which handles the bank's business

of

Board

assignment in the national depart- Alexander
ment

155,232

the

of
value

par

Branch

Trustees

^

The

Massena Banking & Trust

Company, Massena, N. Y„ received
annroval

to

increase

^"$200

Bank,

the

King

New

John

York,

ecutive

of

of

of

elected

promotion

Industrial

Providence,

Officer,

Dawson

I.,

was

Chief

Ex¬

succeeding

who

Brown,

Chairman. Rudolf F.

Continued

Haffenreffer,
on

page

Quarterly Statement of Billings, Estimated Unbilled Balance

,,

i

:

•

of
:

;

Major Contracts and Number of Employees
(Subject fo audit adjustments)

•

-

"•include

a

steel

rolling mill,

Three Fiscal Months Ended
Dec.

frozen foods processing firm, and
^additional electronics manufacturers. Most of our existing manu¬

facturing

concerns

Year

Ended ^—

31, 1958

Dec. 31, 1957

$48,461,415

$25,182,494

$135,802,558

$ 97,178,365

7,567,114

7,620,979

25,230,237

35,921,292

.

4,470,937

6,503,425

19,554,853

.

$60,499,466

$39,306,898

$180,587,648

a

Dec. 31.

1958

Dee.JT,l§57 *

Billings during the period:

have either just completed, or have plans for,

Shipbuilding contracts

,

early expansions.

»

.

•

.

.

'

Several multi-million

Ship conversions and repairs

dollar deluxe apartment hotels will be

.

"

'".completed
;

.

in

1958.

Record

home

building, oublic construction
projects, plus commercial and industrial building will give the
state a terrific pace of construction activity next year, and First

Hydraulic turbines and other work
7.

National continues its dominant position in construction financing.
Improvements in the world market for copoer, increasing with

.

..

Totals

.

.

\4r

At

Estimated balance of major contracts

general economic recovery, should result in better conditions for
the state's mining communities in which this bank is renre<*ented.
-

.

By and large, the state's livestock

tion, and

ranges

are

in

eood

unbilled at the close of the

Equivalent

condi¬

40-hour

vital water picture is most encouraging with reservoir
and tank storage levels at their best in several years. Total crop

acreage

our

should

remain

aooroximatelv constant.

With

year

in 1959.

.

.,

wide economy.




December 31, 1958

$350,650,514

At December

31, 1957

$449,639,228

of the

employees, on a
during the last

periqd

....

11,723

112,452

on the percentage-of-completion basts?
from the billings on the contracts. Contract billings and estimated
possible adjustments resulting from statutory and contractual provision*

such income for any period will therefore
vary
balances are subject to

unbilled

t

Any good index of business activity in Arizona, if extended to
195<h would indicate conservative^ a 1fl% °am
across
the broad economic front of our well diversified'state¬
nroieetion for

,

The Company reports Income from long-term shipbuilding contracts

W..
a

,

reasonable

expectation for continued good prices for agriculture nro^urt?on, *
this segment of our eronomv. in which our bank is a leader, looks

forward to another fine

.

21,478,274

$154,577,931

basis, working

full work-week

*'

"<

number of

period

By Order of the Board of Directors
.'January 28, J 959

T.

became

Newport News Shipbuilding and Dry Dock Company

"

oi

National

R.

President and

Comptroller

at its
Assistant

eanitil

Simmen, Executive Vice-

President

from Assistant
Seventh Avenue

to

its

^coisisttag

vajue

Dry

of

141,120
of $20

$3,104,640 consisting of
shares of the same par

value.

Bank

in

Michigan, Kentucky,
and the City of Pittsburgh.

Ofiio,

consisting

of

to

par vaiue °f
$25 each, to $375,000 consisting of
15,000 shares of the same par

^

J

the

joined the bank in
assignment, in the na-

which

granted approval

"sz. pany, Mew york.
New rrvid^w0Y«4nkers Trust Com' 8-000 shares of the

nounced

business

*

New

Cover

tional

expanded physical facil¬
We are particularly well

,

His

sion

/

.,

Company, Roches¬

was

Trust

&

Company,

Morgan

1954.

!

_

Bank

'he election of William Earle
Blakeley as a Director. Mr. BJakeley has formerly been a Vice-

'

and John J. Sullivan

are

Federation

Company,

%

increase the capital stock from

each,

_

the

Ss

Central Trust

ter, N. Y.,
to

shares

value.

s«

Thomas J. Shanahan, President
0f

value.

same par

&

was

*

•

Flanigan,

Mr.

,

^represented in the state's four major metropolitan areas where
!
greatest growth is anticipated. The natural expansion of popula¬
tion and business activity in our present service
area, plus our
:entry into Tucson, will mean the bringing of First National bank¬
ing to approximately a quartr of a million Arizonans.
t c
In spite of exceptionally keen competition, the First Na¬
tional Bank of Arizona eagerly looks forward to its most
important year in Arizona, with every conviction that our onerations
will result in new all time highs in service
provided, loans made,
.deposits accumulated and the most important category of net
profit....
New plants scheduled for an appearance on the Arizona scene

Bank

York,

shares of the

The appointments of Rodney A.

C.

in the next 12 months.

existing

to

shares .of the par. value
of $10
each, to $52,020,000 consisting of
5,202,000 shares of the same par

York,

The First National Bank of Arizona entered the
year with four
additional new offices, and susbtantially
of

Albany, Albany,

,

C'Vln-PAM

1822,

Trust Company,
given approval to
increase the capital
stock from
$2,861,000
consisting
of
286,110
shares of the par value of $10
each,

Board.

1958

,

number

?

•

facturers

prospect of susbantially increased returns for the state's business-

a

•

.Cover, Jr

Indeed, business was good in 1958. It looks even more prom¬
ising for 1959. Arizona enters the new year chalking up all time
highs for total employment and income, and with every bright

in

of

given approval to in¬
its capital stock from
$4,-

794,000 consisting of 479,400 shares

Trade

New

V

"

Arizona

.

ities

Bank
was

crease

•

' ; 7^;

;

gaim

•

"•

•

i,/f

lvalue.

operations by recording a healthy
increase in net income comparable to the state's
general economic

men

Y.,

a—

.Irving^ Trust; Company,
New
York, received approval to increase its capital stock from
$51,000,000. . consisting ., of
5,100,000

agreeable

comfortably
exceeded that average gain. Phoenix and Tucson
Clearing Houses'
monthly totals of bank debits during 1958 have exceeded by more
than 10% comparable figures for
1957.
Phoenix
and
Tucson
Clearing Houses' total loans outstanding have increased modestly
despite a .somewhat slackened demand for loans generally.

,

State
N.

Company,^ New

.

increased

'

,

"

.

in Arizona

C^Ilsi^ing

^ . ^702 980 c^nsiJtins
J?/ej^A0®° if '
4? consisting
^40,596 shares of the same par
$5

the trust company, later known as

acquired

v7 "

^

Company.

,,V

Hazeltine

jatrman

industries.

/

in

President of United States Rubber

S

.

of

il:

"l City

5SS SSBiJKSt St-

7

-4

notable economic contribu¬

tion and.specialized testing facilities are quite
/significant as a factor in the attraction of
(representatives

Co.;

IrFJUgT/i Trust

aav-1--

all time

an

;

t.>

■

Company,

tional City Bank in 1029 at which Proval to increase its capital stock
the name was changed to from. $800,000 consisting of 32,000
shares of the par value of
Vrflection of city Bank Farmers Trust Co.
$25 each,
>•; John W. McGovern to its Board
to
Si
$900,000 consisting of 36,000
{.j- of Directors. ' Mr; McGovern is
shares of the

ever.

activity throughout the state '

"has operated for the full
year at

ft

Trust

4^7^04

;•

^''3
C,?y.lr1l?st CoFstahlished
Established nnginallv in
originally

as

j,

the

of

•

•

^

:

*

Bank Farmers Trust Co.,,
lthe par
J Manhattan// Bank, I^ew York changed rtts name to I $5>033>700 value of $10 each, to
York, cnangea its name 10 $5,033,700 consisting of T50?
changed,
nan
^503,370

Chase

York,

i

ranchers

assist

Depart¬
:

■

with

Com-

cnarge oiBankers trust Com-

.

ment.

"!

"

White Plains, N. Y., received ap/■proval to increase the capital stock

Pdwaid T. Hetzler, Vice-President
pany's

main

?
'

The ^County

the

%

•

Trust

Pa.,

the

Depart-:

r

/ Mr.
Adams, formerly in charge
df Public Relations at the Mellon

mmmm

On balance, and with small
regard for the recent (interna- •./• President this
tional) ^recession, Arizona has experienced a good business year in ^.week vis the first major appoint1958. Non-ferrous metals was our most
adversely affected 5Tprin-3 ; merit;, since/••'■City -Farmers Trust

Thei

'

operations, at

offlce*

an

in

Public (Relations

ment.v

Jan. 31.:- He is in charge iof

hanking

30,

York,
on
Jan.
Alexander B. Adams

named

yN

'$&■ €

New

pany,

estment

v
/.

numerous
our

"

•'•

VV i

;

a

Moore, Chairman of on,

R. 1. FLETCHER, Financial Vice President

34

The Commercial and Financial

Chronicle

affected

Continued

from first page

Thursday, February 5, 1959

.

dollar transactions,
noteworthy is the
engagement
in „PLthis
optimistic
trend on the part of the eonstitu^
—
f— — *
7—----tionally more conservative bai_
anced funds. These managements
bought 41% more equities than
they sold—a stock-inclined proportion far in excess of the 27%
buying balance which they had
measured

dealer

moil coupon today to:

-

V,

^j |

"Dept. CFC-G3

York 5

Please send Aberdeen Fund Prospectus.

j
|

Name.... ««'..«.«..........................

|

Street.i

nance

predomi-

standably, even heavier
case of the stock funds.

in

Thc Buuish

*

more

specialty fund
this

comes
v

i

i

s

managestatement
of

o n

sets

A

Electronics Fund's

President Chester D. Tripp:

were 96% in comrepresenting a subin emphasis from a
earlier when caution was

stocks,

■

V• # •

«• « • »•••»••« .

operations
newcomers

as

busi-

good
'"

?r

wrinkle in escaping the

new

Since "Stocks t>n average

Fund;

have advanced far more than any

probable

in

increase

dividends

the watchword and management

would justify," he is planning "a
was trimming sails for the antici- shift of modest proportions" of

pated recession,
which mate- funds into higher-yielding foreign
securities.
rjaijzed,» ...... . ^ •;&

portfolio-buildup Companies on patee
.
Specific bullish market forecasts
such recent Fpant
Typical of their reaction is the range ap the way from the 650
One William Street Johnston
Mutual Fund, whose

oi

on
■?

year

centuated by the

Cstty«-.# # • •

basic

to

yields

yield dilemma comes from Arnold
Bernhard in his capacity as President of the Value Line Income

"As-

recently

mon

realistically

stantial shift

the

latter,

.

figures and to
quality bonds."

men£
e
Tel(

Among
Specification of the manageopen-end stock ments so ;preponderariitly Pu ^ufunds took on more than twice
the amount of common stocks that
fLSS
they
liquidated
(a result ac- Transactions by 83 Investment
the

.

ment, electronics, building supply,
From

.

outstripped ine improvement in

railroads, textiles, and oils,

Contingent

the

the group
ine group

.

.

_

stock buying was under-

agements.

X.

^

*

.

.

Harold
"

lunds.

.

stopk

nn

.

—

common

MANAGEMENT CORP. I
15 William Street, New

•

,

mi

on

and 10 stand-offs. The

1 ^

Accompanying notes of caution
Were voiced by a number of man-

a

of net buyers was, of course,
greatest in the open-end . slock.
no stock
funds (30 against seven nnrf mn.
net sell-cfanj nffci
era, and two stend-ofBJ, M(1 ?on
siderably smaller in the open-end
balanced funds (16 net buyers,
nine net sellers, six stand-offs)
and in the closed-end companies
(seven buyers versus four sellers
exhibited
during the preceding versus two stand-offs).
*
quarter. The net balance of such
*
9
*
—0_CT

-DAVID L. DABSON
l.i',

by

Particularly

FUND

or

i

i

ABERDEEN

,.

,

Said Hugh Bullock of
bearing his name: ' . . .
oearing nis name:
Schreder, Executive Vice^Presivcrv sushtjintifll rise in thp IpvgI
very susbtantial
the
dent, referred to a shift from de- of common stock prices
0£ COmmon stock
has
outstripped the improvement in
fensive issues tied more closelyoutstrimied the imDrovemeiit fn
x
outstripped
improvemer.. _
Various segments of
consumer spending (food, to- business.
business
Various cpompnt?
bacco, utility, merchandising) '* to the common stock market may be
"
j
•
* •
.T"**7
raore cyclical issues, as. rail equip- expected to adjust themselv
mutual

21

-

-

Notes of Caution

Switching from defensive to cyareas
was
practised
by
Group Securities with its array of

Bull Market

wr

Prospectus from your

-r,-'

clical

...look into

|

prising by now, U. S. & Foreign
Securities.
.V.'.'

the

of

noriiic outlook is good."

Funds

LONG-TERM GROWTH?

vagaries

the

by

market, but we are thoroughly
convinced that the long term eco-

Interested in possible

P

.

.

(672)

20

The

recurring reversal of the
bond-stock yield ratio

tradtional

troubling, among others,

has been

-

EITHER PROSPECTUS
ordinarily tree irom tne pressure
of incoming investible funds, in-

FREE ON REQUEST

of pur-

net excess

their

creased

18%

chases of stocks to 58% from

,

'

eSTABLISHCD

.

port of their bullishness, was their
ijUHUiuim
uuuihu^ wdhuicu
securing of fresh capital througn
rights offerings dunng the period.
period,
i-ights
during

A mutual fund investing in a

list of securities selected for

(Companies thus selling additional

possible long-term growth of

shares

capital and income.

asset value included General Pub¬

at

than

less

market

Incorporated 1
Income Fund
A mutual fund investing in a

Service, Madison, and National
Shares.)
'
Also as expressed in the number
of funds (in addition to dollar volume
of
transactions
as
cited

income.

A prospectus on

|

your

\
ment companies

fw

by

a

invP«t

in

for opportunities
crease our equity
_

In

_

support

.

lurther to in
maintaining

a

"long" position in equities, Ralph
E. Samuel, President of Energy
Fund
(recently
split
10-for-l)
cites the difficulties involved in

•

inflation

that

be less of
market factor than the headr

a-

.

Du^ers'

01

indicate.

would

lines

also

as

still

.

.

.

It may

be

1953.

(their

value of our portfolio is, of course,

Carriers

&

ously acting

closed-end

unused

Fund

as

a

■

(owned

sister,

.

We feel that the

net buyer), the

83

New York

r

bility afforded by the short-term
notes and the position in stocks,

provides a balance suited to prevailing conditions, with reason-

State ab]e

of

assurance
income."
A

nod), Texas Fund, Adams Express-American International, and

investment dealer.

present .status of
England Fund, with the mo¬

New

Whitehall

the

by

of

avoiding the shortages that would
contribute to a rapid inflation. .
.

savings banks, who made substantial
reductions
during the pe-

•

assuring
an.
adequate
merchandise,
thus

supply

divergently-acting
Tri group), Blue Ridge, and Institutional Investors Mutual Fund
(in

the large
production capacity in this

country,

General, -simultane¬

three Value Line funds,

In

let us also not overlook

three mutual funds in the Bullock

Group

the high of July,
appraising the near term,

price since

in

a

sellers

Axe-Houghton "A," Axe Science
& Electronics, General Investors
Trust, Knickerbocker Fund, the

<-'hase had been almost perfect,
would indeed have proven costly

salesmen:

possibility

for the near term may

goodly number of
emerged.
These meluded: American Business Shares,
net

.

•

yield has in the past been a warn¬
ing signal. ... We do .sense ,a
strong

.

bere,

investments,

of

KahH

o

™

significant
mcticated aiso be significant that many
that many
above but to° numerous to specify basic commodities have declined

.

20 net sellers,

loftv 750

a

,,

,

'
~ since current levels are generally
under review, o3 Well above the 1957 highs... The

were'net buyers,

each

fund is available from

'

?hf

.

j

'

mnroin

unrip

liquidation

exceed

to

Defensive Managements
v'
ff tU
i.
Midst the prevalent preponder¬
ance
of
buyers,
as
indicated

likely. ance
Z7irh

seem

timing repurchases: "The liquidation of stocks in the summer of
above) did bull market buying of 1957, unless the timing of repur-

stocks

list of securities for current

portions, does- not

and

lic

*

business recovery is still young.

in the

1925

i

uu*" search Cornoration

uusmess

turn and some irregularity would;
be a normal expectancy. But the jr^nd

previous quarter. Enttbling and vigorous, and with a heavyV!
some of the
closed-enders so to demand and short supply of good
lift their stock purchases, in sup- stocks, a correction of sizable pro-

Incorporat ctl
"

me

outpaced

nave

change

ear]y

an

satisfactory

and possibiy
in jts recent

change of heart

stock-buying proclivities, is indi¬

The Parker Corporation
m

200 Berkeley Street

i

Boston, Mass.

|

American Business Shares, in fact,
wholly confined its operations to

cated by

Massachusetts Life Fund,

through

its President,

I

!

General

liquidations. Complete stand-pat4

A. Sykes

I

J1

I

by

isn't this the kind of

tism

on

American

commons

was

Investors.

exhibited

vanced stage of the

Scudder,
Stevens
&
Clark funds and, no longer sur-

I

both

we

Lawrence

thus: "At this more ad¬

stock market

plan to continue to

exercise

you've always wanted?
★ Top commissions plus profit-sharing plan
A BALANCED

FUND

'.Aa.

★ No non-productive "paper work"

~

★ A "line" that brings you respect

-

.

with diversified
holdings of bonds, pre¬
,

ferred and

selected

common

:rk

I

for income ahdU

•'

gi'owth possibilities.

;:

\

and your
'
; j '■

marily in

-

-

-•

'v;.. •
^
^ho likes to live well and

...

a,

:,,

stocks

growth of capital

,L

'*

man

for their clients.

~

<

'

,,

j

'

"

;

Common Stock Invest ment 'Fund
objectives -of this Fund.
possible long-term capital and
growth for its shareholder*.

Investment

Uv

'

are

income
;

:

"

have several

' Prospectus upon request

:

—,

Chicago

Atlanta

—

j
I

Sound interesting? Call or write King

The

Wellington Company
Philadelphia 3, Pa.

mmm

Mutual Investment Funds
%
•

•

Merritt, President, for full details.

KING MERRITT

LosAngelei

—'

#

CO., INC.

I

Bond Scries

Balanced Series

Preferred Stock 3me$

Income Series

Stock Series

'

one

An International

□ Wellington Fund

Several

Openings for

MANAGERS
Exceptional ^^ng,1 training
capable oi mnns,^ Qrgan.
SALES

NAME

!

men

and adminwten
ization of thei

CITY-

Top comsharing. FtM

Support. Phone or
cp




•

Dividend Series

Headquarters

□ Wellington Equity
Fund

Organization Specializing in Mutual Funds

85 Broad St., New

York 4, N. Y. • Whitehall 4-2220

Offices in

In Canada

•

Growth Stocks Series

Principal Cities

Montreal—Victor 9-7708

Information Folder and Prospectus on

Request

•

Edmonton—ALberta 4-7537
King Merritt & Co., (Canada) Ltd., 201 Notre Dame
Montreal 1, Quebec, Can.

St. W.,

King Merritt & Co., (Canada) Ltd., 521 Tegler Bldg.,
Edmonton. Alberta. Can.

NATIONAL SECURITIES & RESEARCH
Established 1930

120 Broadway,

CORPORATION

.

New York 5, N. Y.

.

;

''

Lord, Abbett & Co.

New York

All Sales Representatives of King Merritt & Company are entitled to
participate in an extensive program, designed to help you find greater
security and peace of mind not only for yourself but for your families.
In addition to liberal profit-sharing features, the SAFE Program includes
a Service and Stability Plan (including loan privileges) based, on services
you render to your clients, and Life and Major Medical Insurance that
increases in amount with your production.

Writs your investment i/ealer
for the prospectus of your choice
or use coupon btloio

ADDRESS

%i

You will get initial and continuing support from our Area
Manager in building up your business. We handle all routine paper work,
leaving you full time to sell. You will have behind you an international
organization, one of the most progressive and fastest-growing in the
Mutual Fund field today. You will be selling something nearly everybody
wants through a plan that's just now reaching the height of popularity.

and income.

Check

a

r-i;*

'•

essential.

and seeking possible longterm

;■

openings now for men who have the potential to
ualified to organize and
become sales managers in a few years, men qualifie
direct the work of other salesmen. Mutual Fund. experience is not

investing pri¬
common

family

help others improve their lot, too,
few things are more gratifying to sell than Mutual Funds. Our salesmen—
some of whom had not sold Mutual
Funds or securities of any kind
before—are earning top commissions in their own communities. Through
our profit-sharing plan, they are building estates for themselves as well
We

■

»

.

For the

as

:

-■

;;

A

stocks

An Equlfti
Fuwl

and multiple re-orders

★ Liberal insurance and endowment benefits for you

Volume

great

189

and

care

selection

of

5818

Number

in

our

stocks,

and

prudence

common

will look with

favor

more

The Commercial and Financial Chronicle

...

on

the

bond

market, where prices are
lower and yields higher than they
have been in many years."
.

.

The

quality

of

the' current

stock-buying is likewise worry¬
ing Edward P. Rubin, President of
Selected American Shares: "Stock

prices

already anticipate consid¬
improvement.
Industrial
stocks yield less than comparable
quality bonds. Quite a bit of in¬
flationary thinking is in the stock
price structure. One can detect at
erable

selling.
quarter

For example, during
odd-lot sellers far

the

public buyers of A. T. & T.
Most unpopular issue, as meas¬
ured
by the number of - selling
funds, was Socony Mobil Oil, fol¬
lowed by Parke, Davis, American
Can, and Bethlehem Steel.
American

Tel.
&
Tel.,
cited
top favorite, comprises
the largest single holding of the
new

as

a

Lazard Fund.

FAVORED GROUPS

Second largest

holding

not excessively

Aircrafts Flying High
Best bought

aircraft

was

North

American

Aviation, with Madison
largest buyer (20,000
newly), and only a single
seller. Also widely bought was
Martin Company,
of which the
Fund

the

_

shares

United

Fund

alone bought

group

40,000 shares, Fidelity 24,000, and
20,000; .the latter two
making initial commitments. On

Madison

inadequate in 1959.
Thus 1958's straight up market is
scarcely to be duplicated.
There
are more likely to be
periods of

of this important new¬
Georgia-Pacific Corpora¬ the other hand, Incorporated In¬
tion,
which
supplanted
Royal vestors
closed
out
its
40,000
Dutch, moving it down to this shares.
Also
well-bought
was
portfolio's number three slot.
; Bendix
Aviation,
not
however
without
considerable
Turning to the other popular
offsetting
newcomer,
One William
Street liquidation.
Also-liked were
Fund, we find IBM as its largest Boeing and General Dynamics; of
holding,
followed
by
Interna¬ the
latter, the Bullock Group
tional
Nickel,
while -Republic alone bought 28,000 .shares. Sellers
Steel rose from eighth to third outnumbered
buyers in Douglas
largest holding; relegating "split and United Aircraft.

disappointment, reaction, consoli¬

candidate" du Pont from third to

dation."

seventh.

least

traces of

recent

buying 'for

the rise.' without too much regard
for

ply'

quality or value.
The 'sup¬
of common stocks may not
.

..

appear so

...

.

Sophisticated

skepticism about
the market's phenomena
voiced by Edward A. Merkle,
of

some

is

President of the closed-end Mad¬
ison Fund. Specifically Mr. Mer¬

kle

re-examines

"growth

stocks

(so-called)," in some cases re-de¬
fining them as dangerous "glamshares."

"There is nothing
glamour in the stock
market," Mr. Merkle said. "Over
the past 10- years we have had
o u r

about

new

several booms which were similar

in character to the land booms of.;
earlier days. These might be com-,

pared with a balloon ascension,
and in retrospect, the subsequent
declines were quite similar to the.,

comer

In the process of becom¬

ing fully invested, this Lehmanmanaged fund eliminated all its
initial holdings of bonds and preferreds, keeping only U. S. Treas¬
uries, World Bank bonds,
and
common

stocks.

The

fund's

in¬

vestment

adviser,
Lehman
Brothers, expresses itself as par¬
ticularly favoring investment in
steel stocks, oils, and utilities; the
diate

outlook, and the other two
because of the long-range pros¬
pects,--,.":;
;•.v.

T< )L1CV TOWARD

to

earth

of

the

INDUSTRY GROUPS
changes,

volved.
.,

During

Taking top honors in individual
selected
during the past
quarter were two foreign items,

fund

issues
and

one

place

international

"blue

ribbon

oil.

winner"

was

Philips' Lamp Works, which was
bought by 14 managements, in an
aggregate of 183,200 shares having
a
value
of
$11,900,000
at
the
stock's year-end price.
Eight of
these managements were acquir¬
ing Philips' for the first time—
with no offsetting seller. Lazard
Fund
coupled
its
initial
pur¬

the

December

managements

favored

First

electrics

the

quarter

Automotives

and

was

also

a

Sought

I
Here General Motors was bought
by five managements, chiefly the

Shares

was a

Sellers
At

in

the

Bullock

large seller (25,000).
buyers in Ford.

other

end

of

the

scale,
was
only
sold,
With
(10,000)
and Delaware
liquidating their commit¬

(8,000)
ments.

good-sized

Thus, an interesting situation is
presented in the funds' use of
small holders' money to repur-'
chase
for
them
indirectly the
same issues which they had been
.

•

Why not Got tho

picked

well

about

by Wellington;"

up

liked

Fund

Fidelity

Affiliated

in™' which

and

Allied^

was»

Chemical,

new

21,000 shaies, respectively.

among

IU

Fund ' made

,

omutualmvestmentfund

of

commitments

in

followed

Carbide

Umqn,,nwcuI.-t'cs^ejcctetj.£OJ. t|le.pOSjjuj||y ^

popularity «lox>j

term

managements, with Funda- " •irrcnt'

well

liked

were

Continued

on

addrtss

&

on

coupon

Selected Investments Co.
135 S. LaSalle St., Chicago 3,11L

CP 2-5

terest in aircrafts, airlines, build¬

ing, office equipment, and railroad
equipment.

B,

On the other
which

hand, bank stocks,
recent top favorites,

were

largely fell

into

disfavor.

km »

mm »s."

accompanied
drugs

buying
(in which there

By

and

large,

Do the
Investment

Possibilities in
It includes:

this

marks

defensive

to

ELECTRONICS

a

definite extension of the previous

from

cyclical

companies

investment

Are

|

you

tired

groups.' As
in
the
preceding
quarter," the partially bffsetting
selling which found its way into
the
utilities
was
quite
likely
stimulated by the recurrent weak¬

charts
...

of

experimenting with home-made

plans

.•

""Vi

&

*

statistics

1

-

a

.

'

j' ! *1

/'

loose-leaf

panion volume, with separate

'■

Interest Yon?

the "bible" of

-

the business.
'

•

WHY NOT.:

*

com¬

INVESTIGATE

chartf

leading Mutual Funds, includ¬

for all

.

ness

JStatt.

DO you

included
was much

profit-taking), food, gold-mining,
natural gas, paper, utilities, and

shift

Addresi_

City

wan' M0RE
more profits.

Indus¬

..

in the bond market with the

ing 15-year

of wasting time and energy digging

builrinc

for statistics

corresponding rise in competitive
yields.
j

...

of trying to develop

your

regulations" V ;

Get the facts

on

..

i of falling

*

behind

~

~

TELEVISION-

lifetime records.

business in mutual

funos-Sales
\

f

FUND, INC.

sales.

you ant your douars

-

dramatic visual

A-Mutual Invest*-

presentation, as exciting as it is
effective. ' :,y' 1 ■; ■ >
;;*v"r J;

sales

—

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or

promotion manual packed with basic,
immediately-usable ways to increase

effective sales

...of problems relating to "rules and

|

ment rfund' whose*.
^assets are primarily-

COMPLETE MERCHAN0ISIN0 CAMPAI6NJ -pros¬ 'S j;t i

Why struggle?More than 1,000
ful Mutual Fund dealers

CUSTODIAN
FUNDS

problems

through

pect letters,

success¬

overcome

such

readv-to-use

Wiesenberger

the

aos

-

window

colorful
Dealer Service-the original and

for all
and

office

STATISTICAL

results,

cial field.

-growth of capi¬
tal and income in <

displays.

companies actively
engagedintheElec-

DATA-covering management

dividend

records, tax status,

etc.-for all important

funds.

about this series of Mutual Funds

seeking possible growth and income through in¬
in American industry.

It's
any

as

essential

■

to

ironies field.

;

Get the

Booklet-Prospectus of this

for brochure

O

Mutual Funds

the basic

as

features.

invest¬

Television Shares

BOND SERIES
a

ticker is to

a

135 S. LaSalle St., Chicago
115 Broadway,

Stock Exchange

PREFERRED STOCK SERIES

ARTHUR WIESENBERGER

member-firm.

FRANKLIN CUSTODIAN FUNDS, INC.




from your

Management Corp.

INCOME SERIES

UTILITIES SERIES

64 Wall Street

now

ment dealer or

highlighting

dealer in

vestment

COMMON STOCK SERIES

Write

possi-

"blHeag-term^

'.J 2'

media, plus

only

complete service in the entire finan¬

invested for

follow-ups, brochures and

other direct mail material, and

Mutual Fund
now

nemo

btlowand mall fo

Please send me free prospectus and oth«f
Information on SELb'CTbD AMERICAN
SHARES.

techniques

Find out

of prospictus

•fftor information—fill In

22

page

GROWTH of capital—ad

INCOME,

—-for FREE copy

Monsanto,

Minerals

International

sympathy with the good net
for
automotives, there

•

INVESTMENT FACTS

group duPont was ac¬
quired by
eight
managements,
although not in particularly Jarge.;r
amounts
except for the ,16,00.0^-

Equally

"

-

this

shares

INC.

Elizabeth 3, N. J.

27

Chemicals Popular

only
In

HUGH W. LONG
AND COMPANY,

Dow, and Stauffer. In this group

radio-movies-TV.

Third bestissue was Gulf Oil, fol¬
lowed by U. S. Steel, Tennessee
Gag Transmission, American Tel.
& Tel., R. C. A., Firestone, and
(still) Standard Oil of New Jer¬
sey, in approximately that order.

Name..;...
Address.

in¬

and only two sellers.

bought

Buying without selling occurred
American
Radiator
(all the

demand

tries in which considerable selling

of

the

in

Also

Demand

mutual fund Investing
stocks. For copy

common

prospectus-booklet of
Fund, mail
this coupon today.

mental the largest buyer (10,000).

Equipments in Fair

a

.

of ;a

Building Stocks Favored

balanced

the

Chrysler
Dreyfus

groups:

12,500 Philips' shares
acquisition of 1,500,000
guilders of Philips'
convertible
bonds.
"Runner-up" was Royal
Dutch Petroleum, with 15 buyers

chase

with

in

group

shares.

particularly

following

electronics, chemi¬
cals, insurance (life and casualty),
coppers, rails, oils, steels, machin¬
ery, rubber and tire, and tobacco.
There

INVESTORS
..

facts about the

In

Auto

Issue Selection

~

chiefly the Value Line

can,

which closed out its 35,000

Group

following analysis of portdrawn from oar
tabulation on page 00 of trans¬
prof usion of caution voiced by sub¬ actions in nearly 500 stock issues,
stantial stock buyers perhaps con¬ is based on the number of man¬
stitutes a phase of verbal hedging. agements buying or selling, rather
than on the number
of shares in¬

folio

through

\

v

Dividend

'

The

gas-filled

vehicle when the gas seeped out."
It may be asked whether the

*

YOUR share

FUNDAMENTAL

tive-aviation-electronics
fier.

can own

of American business

buying representing first acquisi¬
tions, namely by Investment Co.
of America, Madison, and Overseas
Securities),
General Portland
Cement,
Georgia-Pacific' (of
which Lazard Fund bought 78,000
shares and deVegh 2,000 shares
newly), Johns-Manville, Lone
Airlines Liked
Star
Cement,
Weyerhaeuser
Timber,
and
Yale
&
Towne.
The
top
favorite
here
was
outnumbered
buyers in
American Airlines, with One Wil¬ Sellers
liam Street and its "sister-in-law" U. S. Gypsum. The large single
S. Pipe &
Foundry
Lehman Corporation making new sale of U.
in
the
table ; (100,000
commitments to the tune of 96,000 shown
came
from the United
shares. On the other hand, there shares)
Funds Group.
were only sellers in Pan Ameri¬
:
v

Tri Grout) with 72,000 shares, and
Madison with 20,800 shares; while

''':

.

return

...

first-named because of the imme¬

;

You

is

.

21

also fairly

widespread, though
large, demand for
automotive
equipment issues.
Some buying without selling oc¬
curred
in
Briggs
&
Stratton,
Champion
Spark
Plug, ; Dana,
Electric Storage Battery, StewartWarner,
and
Timken.
Sellers
equalled buyers in Borg-Warner
and
newly-merged
Thompson
Ramo
Wooldridge, the automo¬

was

ex¬

ceeded

above

(673)

•

New York 5, N. Y.

& COMPANY
Members: New York and American Slock

61

C

Name
Address.

Exchanges

Broadway, New York 6, N. Y,

3, HI.

New York 6, N.Y,

City-State.

■

The Commercial and

22

.

Thursday, February 5, 1959

.

.

Chemicals encountered heavy

this

Pittsburgh was
issue, followed

group,

bought

best

Owens-Illinois, Libbey-OwensFord, and Owens-Corning Fiberglas. There were only buyers and

No. of

No. of

Trusts

Shares

in Anchor

Hocking.

No. of

No. of

No. of

Shares

Trusts

Trusts

84,500

79,000
62,800

6(2)

7(3)

>

2,000

1(1)

>

International Harvester

-Sold-

No. of

No. of

No. of

Shares

Shares

Trusts

None

None
1

v;

2

Agricultural Equipment
8(4)

,

-Bought-

-Sold-

Bought—

sellers in Corning Glass

while

by more than one

Issues in which transactions

.

by

Works,
sellers outnumbered buyers

11(1)
7(1)

Tennessee Corp.

6,700

— - __ - - - ----- _ _

20,000

Texas Gulf Sulphur.:

8,000

17,400

Union Carbide

1,400

—_ ——

Electrics and Electronics Best

have

We

detail above

in

dealt

Works. By far
this issue was
Incorporated
Investors,
initially
acquiring 55,000 shares, followed
therein by Fidelity Fund (26,000),
with Philips' Lamp

the largest buyer of

Co.

investment

America

of

(15,-

000), and Lazard which newly
acquired 12,500 shares and
1.5
million guilders lace value of the
.cnvertible bonds. Next best-liked
electronic issue was Radio Corp.,
with

Wellington the largest buyer

(18,000), followed by Axe "B"
(16,C00), while the Value Line
Fund disposed of its entire 5,000
-hare block. There was only buy¬
ing, with no selling, in Westing-

house, and this came largely from
the Tri Group (45,000), but also
from others.
Next most favored
electronic stock was General Elec¬

tric, in which Lehman Corp. took
a
new position
of 35,300 shares;
on
the other hand, Putnam and
Blue Ridge eliminated GE from
their portfolios.
Sylvania, about
to be merged with General Tele¬
phone, was mostly sold, with only
one
buyer, namely Fidelity (22.000 newly).

Aircraft and Aircraft

6(1)
5(1)
5(1)

3(3)
4(1)

Again

12,200

142,800

5(2)
3

Eastern' Air

2,082
39,300
10,874

3(2)
3

None

2(2)
5

2

None

best

Caterpillar
bought stock,

3(1)
2(2)
3(1)
2(1)
3(1)

•

single small sale. Considerable
was displayed in Chicago
Pneumatic Tool, the largest buyer
being Fundamental (20,000) and
no
selling; and in Dresser
Industries, of which Wellington
bought 77,000 shares (newly) and
the Tri Group 31,100, while, on
the other hand, the United Funds
group sold 20,000 shares and Mad¬
ison liquidated-its 16,300 shares.

iVIetals

the

of

the

exceeded

five

fact

Investors

selling in each

issues.

that

This

General

eliminated

despite

American

its

holdings
n
Aluminium Ltd., Kaiser and
Reynolds, these being the only

issues

which

eliminated
Shares
were

GAI

from

of

of

orice structure.

Group

industry

stimulated
the

In

red

by

metal's

Anaconda

established

new

the

posi¬

tions

(35,000), as it also did in
Phelps Dodge (42,200). Of Revere
Copper & Bras;, Wellington
bought 75,000 shares initially, and
State Street

was a
buyer of 17,500
while United Accumula¬
tive
eliminated its 12,200-share
holding. In Kennecott, in which

shares;

sellers almost matched buyers, the

largest single transaction was a
3p,000-share closeout by the
United Funds
The

flurry

Group.
in

5,000
4,000

American

None

•

10,000

Hanover Bank

Continued

stocks

on




was

page

22

Rexall

12,600

None

Merck

■2

v

6,500

None

None

None

None

1(1)
1

1,000
850

500

9,300

,

2 :.,t

Bristol-Myers

45,860

Lilly

(Eli) "B"

Parke, Davis
Pfizer (Chas.)

2(1)

7,500

•

2(2) *
2

2d)':

3,555

6,560

2(1)

15,000

Irving Trust

1(1)
4(1)

—

12,000

53,500

General Electric

12,500

2,500

Hewlett-Packard

20,900

-

70,000

American Radiator & Standard-

2

9,000

Armstrong Cork

1

I,300

Carrier

.3(2)

24,700

133,200

500

Cranes

20,000
80,000

Georgia-Pacific

17,500

—

y

36,600

Lone

1

2,000
15,031

Star Cement
—

Mason ite

4,700
II,500
14,802

Minneapolis-Honeywell—
National Gypsum
Otis Elevator

2

16,800
8,500
12,000
3,000

2

900

2

"

2(1)
1

3,000
500

National Lead

.

Penn-Dixie Cement
£

Trane
U. S.

None

None

•

-

Pipe & Foundry--

'

—

1

Vvb:

3"

•

;'3(2)'*

;

1

80,600

Allied Chemical

5,900

1

2

3,500

1

400

2(1)
2

4(2)
2

6(1)
2(1)
4

5(1)

American Potash

&

14,000

Columbian Carbon

35,500
45,924
24,500

Diamond Alkali

2,200
16,200
7,000

Eastman Kodak

1

i

-

1

1

None

1(1)

54,400

Hooker Chemical

17,600

2(1)

Interchemical

.None

None

Monsanto

40,200

4(2)

National Biscuit

.

—i

Swift

35,000

General

None

1

11,800
2,000

.

1
2

i

1
1

:

None

Kl)

17,925

3(2)

Foods

9,000

National Dairy

3,950
3,300

Aetna

'

—

,

Casualty

Continental Casualty—:

2(1)

10,500
13.800

2(1)

2(2)

1
1

2,000

Maryland

20,200

Travelers

6(1)
2(1)

3,300

None

1,000
1,000

2

None

None

Fireman's Fund

2

3(1)

None
None

1,000

1

,3(1)
1(1)

—

Fidelity-Phenix

1

1

KD

4(2)
4(1)

Kellogg

1,000

None

401900
38,200

Products—

95

300

3

—„7,000

United Fruit
Corn

None
500
450.^

200
None

Standard Brands

1,000

Stauffer Chemical

KD"
2(2)

6,300

(FI. J.)_—

4,000
14,000
1,000
3,000
1,500

None

None

Insurance—Fire & Casualty

None

Spencer Chemical

500

KD

■

Hercules Powder

14,234

—

Quaker Oats

700

,

2.580

Heinz

None

3

-

General Mills

None

None

Haas

,

'

.

2(2)

&

2,700
None.

Products

Pillsbury

2(2)

Rohm

1,400

None

1,500
None

Pennsalt Chemicals

'

None

4

1

None

Machinery & Chemical
Freeport Sulphur

7,000
111,900
5,500
1,180
10,100

Armour

:

21,900
7,800

Commercial Credit

10,000

3(1)

1

200

52,000

———

2(1)
3

None

6,150

Food

;.

'

.3,000

Du Pont

.

1

45,700

Dow Chemical

Associates Investment

Financial

KD

2

None

C. J. T.

"•*■:■■■■

3

...

-

——

Penick & Ford—>

2(1)

iV:

300
*

Beneficial Finance—

1,500
1,300
18,000

-1(1)

1"

4,700
100
6,300

Chemical-_

4,500

-

„

Gerber Products

,i

•

2

2(1)
4(3)

Companies

2,400
1,000
40,100

2

3(1):;

1,000

American Agricultural Chemical
American Cyanamid

KD
None
None

2(2)

American Investment Co. (111.)

Food

2(2)
,3(1)

Chemicals and Fertilizer

2(1)

.

4,500
10,700

Instruments—-.——

=1(1)>

*1(1) !

'frone';

Air Reduction

1

2(1)

4,500

._—

Sylvania Electric
Texas

3

——

Raytheon Mfg.--

.

3(1)

—-

17,300
12,800
15,000

1

I

'

None

20,050

>_■■'•

—

—

26.000

-Jr4
■J 2

2(2) *"■
2

——-

Iiazeltine

Finance

3(1)

None

3,000
None
None
3,500

—

13,300

>*1(1).

None

14,000

i*

Whirlpool
Amp ex

22,000

Kl)
1(1).

7,000
1,600

Tung-Sol Electric
Wcstinghouse Electric.

1,750
2.000

3

None

——

None

3.000

2(2):;

Yale & Towne__

Gypsum

41,500

y

*1(1)
KD

,

None?

U. S.

Sunbea m

500

4(2)
None

:i.

26,900
65,600

2(1)

None
8,800

—

-

-I

Noneu

None

18,800

4

-

27,800
14,100

Philips' Lamp Works—

Square D

J.

None

Weyerhaeuser Timber

3(2)
8(3)

4(1)

Philco

—

—

Sperry Rand—

,;i(i)

2(1)
3(1)
5(1)
8(1)

McGravv-Edison

Hi) v

5,500
12,240
12,060
10,104
8,477
8,000
5,000
7,100
100,000

4(1)

4(1)

1,400
2,060

__

10.000

None

..

None

Marquette Cement

3

.:Nonev

1,000

Lehigh Portland Cement

v

6,100
100

International Tel. & Tel
Litton Industries

39,000

•8(1):
"2(1)

1(1)-.,

'

—None

69,600
65,400

l ;

None

_

Johns-Manville

3

3(1)

i'—j

4(1)

V

None

Portland Cement

General

1(1)

800

>

400

3(1)

.

—

——

(50-guilder shs. or equivalent)
Radio Corp
Reliance Elec. & Engineering-_

1

7,500

8

and Electronics

1(1)

3,900

—

2

216,700
12,600
31,700

3(2)i

:

Nonc^

None

—

1

3(1)

6,200
3,300

14(8)

'

Building, Construction and Equipment

2

13,000

''

2(1)

•

Pepsi-Cola
Coca-Cola

3,800

—

—

3(1)

34,500

1(1)
3(1)
2(1)
4(3)

4(3)

—

Cutler-Hammer

>■ 9(2)

National Distillers & Chemical-.

6,000

2(1)

3(3)

31,100

—

Warner-Lambert

None

7(1)
2(2)
3(2)
2(1)

'

\

4(1)

——.

—

2(1)

2 •

i

1

KD

•

4,800
2,900

Y.

Guaranty Trust

KD

4(2)

——

Mead Johnson

21,000

2(2)

6,800

Abbott Laborator.es

14.500

None

None

—29,800

18,600

'F'

4

,

3(1)

None
14,000
1,500
29,100
4,750

-

None

1(1)

>•

of America—iSS—

First National City Bank of N.

5(1)-

Schcring

2(1)

Norte

2(1)

24,000
1,500

—

None

KD
KD

Drug

None

1QJ1Q0.
Chase Manhattan——> (20,100
Firstamerica
;
6,500
First Bank Stock.___
12,500
Bank

None

6,000
1,400

Products

2

None

None

—

-V:

3(2f

Smith, Kline & French
Sterling Drug
Upjohn

3

3(1)

27,000

Exchange__—-

1

8(3)

Allied Laboratories

Electrical Equipment
1

1

2(1),

3,000

_

Hocking Glass_

Banks

2

gold

18,100
34,400

2(2)

None;

None
None

Thompson Ran to Wooklridge—
Timken Roller Bearing—:

;"fV

1,700
9,400

American Home Products

1

•id);:

None

Storage Battery

2,000
12,100

5(2)

None

.

5,000

Stewart-Warner

4,200

_

._

9,400

1,000

6(3)

None

—

1
1

——38,500

Anchor

500

2(2)

None

_b_.

1(1)

87,750

1

None-

Eaton Manufacturing

None

2

_

Can-

Drug

Champion Spark Plug

„—

3:;.vJ

10,000

._

_

1

None

Nones

Electric

_

i;

2

None

Dana

Glass

i

3(1)

28,500

<

8,000

Pittsburgh Plate Glass.—
Thatcher Glass Mfg

Briggs & Stratum—

completely
portfolio.

copper

Apparently

strengthening
Tri

its

the

20,650

3(3)yk

Chemical Corn

6

Generally Favored

In the aluminum group buying
nterest

6(2)
i;

70,6(K)

32,320

a

with

12,000

12,000

_

Owehs-Illinois

None

:

4(1)

Street

interest

Libbey-Owens-Ford Glass.—

None

11,200

with the two

and Lazard, buying 20,000 and 8,500 shares respectively; with only

41,900

None

34,300

:

B org-Warner—.. —

2(2)
3(1)

by far the

William

One

newcomers.

was

Gustin-Bacon

7,300

.

30,800

None

33,700
12,000
12,800
1,500
10,600
31,500
9,300
4,500
31,400

Continental Can

Corning Glass Works

5(2)

;

mi

4,200

—

30,100
1,700
31,500

4(2)

General Motors----———

Chrysler

1

Glass

4(2)

F'.y

•

Automotive Equipment
3

_——A.

and

2(1)

None

—

Mack Trucks

None

—_

Lily-Tulip Cup
Owens-Corning Fiberglas

1

16,000

17,000
3,400

2(1)

Pittston

None

42,200

>---

Fruehauf Trailer

.

2,000

——_

1

3(3)

None

Airways—

5

2(2)',

100

——

—

4(1)

2

11,400
11,100
10,000

x

Pan American World

5(3)p

28,100

—.—I—- >

ui)

Lines

40.300
■■■'■

2(1)

Northwest Airlines

41,600
40,400
101,500

3(1)

Peabody Coal

5(2)
4

United Air Lines—

None

-

Island Creek Coal

Containers

Beverages

Machinery and Industrial
Equipment in Demand
Here

3(2)

Automotive

None

sellers.

-

Airlines...

American

1

None

2(2)

68.700

Airlines

2

in
Fundamental
(12,000
newly), with One William Street
the second largest buyer (10,000).
Next best bought issue was Na¬
tional Life & Accident, bought to
the tune of 14,900 shares by In¬
vestors Mutual, by State Street
(5,000)
among
others; with no

5.060

—

1

;

1

6(2)

Top honors here went to Trav¬
elers,
which
found
its
largest
buyer

3(1)

Consolidation Coal

9,200
3,200
5,000
6,700

2(1)

42,600
3,500
1,500

—^

Douglas Aircraft
United Aircraft—

None

2

-Largely through bond conversions.

3(2)

Favored

500
—

_

North American Aviation

57,300

None

Dynamics

Lockheed Aircraft

Internat'l Minerals & Chemicals

—

_

Coal and Coke

KD
US

2,000

Martin

100,000

2.100

None

None

Boeing Airplane

United

3(1)

19,900

_ - - —

_

3,355

2

Equipment

Aviation—-—_

General

53,500*

3(1)
6(4)

2

insurance Issues

Bend i x

19,100
21,980
49,400

Carbon

None

4

Liked

j.

management group occurred. Issues which moie managements sold than
bought are in italics. Numerals in parentheses indicate number of managements making entirely new purcnases or completely
eliminating the stock from their portfolios? (Purchases shown exclude shares received through stock splits, stock dividends or
spin-offs. Changes throucjh mergers also disregarded.)
'
"

Glass Issues Bought
In

'

(October-December, 1958)

I

selling.

the

Management Groups

Changes in Common Stock Holdings of 67 Investment

21

Continued jrom page

no

Financial Chronicle

(674)

Great American Insurance.^

Hartford Fire—
Insurance Co.

U. S.

—

of North America

Casualty

Fidelity & Guaranty

;

i

;i

None

None

None

None

None

None

400

4,675

1

:

[i

1<1>

Volume

189

Number

5818

.

,

.

The Commercial and Financial Chronicle

f

—Bought—
No. of

Shares

>, 2

4(1)
2

;

.

Connecticut General
__

22,100
3,900

U. S.

22

page

Funds

Aggressively Support
Big Boll Maiket

;150 -1
.Noneru; None

——

Life

>20^0004

Franklin Life
National Life & Accident__

from

Trusts

.«

'v.'if

Insurance—Life'

Aetna Life

-1, 600:

t

-

Continued

No. of

Shares

13,500
7,300-

I'd

"No. of

*

I'A

3

Sold-

r•

No. of

Trusts

(675) '

___

.None.

-

_

a

Life

1(1);

.None

$2,240

a

3(2)1), reflected

in

somewhat

increased

;

-

.

In

atmosphere of

cyclically

recovering volume and

earnings,
increasing

„

______

■

an

the

railroads

enlisted

—

_

.

..

EATON & HOWARD

Rails Cyclical Favorites

interest, but quite inconsequen¬
tially— with Homestake encoun¬
4
6,400
Allis-Chalmers
___;
5,400 ;
2
:
tering - more sellers, than buyers.
3
1,625
Babcock & Wilcox—
4,600
1(1): V International Nickel was bought,
2
:
2,650Black & Decker——.
None,.-"
None;. by ' Investors
Mutual, Eaton &
2 f -x .■
5,100 ; Bucyrus-Erie___
1
6,000
• 2(1) ■ M Howard
Stock, Selected American,
8 \
43.500
Caterpillar Tractor.—:
;;S)0 v 1
/;
Lazard, and others.
;
6(4)
» 52,500;
Chicago Pneumatic Tool—:
None, y None
Among the other metals, Ameri¬
2(2)
4,000
Cooper-Bessemer—
None {
can Smelting and St. Joseph Lead;
None
6(2)
122,100
Dresser Industries
37,300
3(2)'
were bought heavily by Welling¬
2(2)
28,500
Ex-Cell-O
1,500
2(1)
ton.; American
Metal
Climax
4(1)
9,400
Ingersoll-Rand
5,000
1(1)
; encountered
heavy selling, most
3(1)
11,000 ■> Joy Manufacturing
-"'A* '5,400 I;
1
c of all by M.I.T., which liquidated
2(1)
9,000
Mesta Machine
None .....None
its entire 65,000 shares.
1
44 1,500 . National Acme
—i—
1,500
1(1)
Office Equipments Remain
2,500
Singer Manufacturing-3,500
2(2)
3(1)
Machinery, Machine Tools and Industrial Equipment

;

CONSIDER...

lie"
1

during
the
September
quarter dried up almost entirely
during
the
year's
final
three

months.

Best-liked

carrier

Inv

bought 25,000 shares and Invest¬

$e/

:

3,000

i

4

1

13,570: ;
10,000
.

V

-

2

-31,400
13,100"i.
31,700
7,806
22,760

V

4(2)

6(1)

47,500
13,000
20,500
24,500
1,200
20,000
4,000
52,300
107,200

2

7(2)
2

'

3(1)
4(3)
None

i

;

;

^T.-'Tn-:

'1,500

2(2)

,•

None

7,300
2,000
None

-

1

-y>

1(1)

-

None

48,800
3,600
14,900
12,200

6(3)
2(1)
3(2)

.

1(1)
'2

.

———1.4 3,500

i

1

,

3?

v

«■■■

'

Metals and Mining—Other

76,300

;

17,000

American Metal-Climax——i

American Zinc, Lead & Smelting

and

2(1)
2•

5,200

2,000
11,300

y,

Northern Natural Gas

1
2

ly

;

500

Co.

the

largest

tral

(25,000),

made

an

.

/

Alberta Gas Trunk Line
Arkansas-Louisiana Gas
Colorado Interstate Gas___
Houston Corp. (units)—J

*

3(1)
1
1(1)

Pioneer Natural Gas

like¬

of

well-

.

1

commitment

4,500

Southern Natural Gas__________

None"

Southern Union Gas—

2,900

of

buyers.

Rail

Equipments Also Liked

Copy of Annual Report

Rail equipment makers and car-

leasers

naturally

revived

interest

in

shared
in

There

in

was

American

to

the

Stockholders available

carriers

the

fair

Brake

in¬

Shoe,

General
man.

Railway Signal and Pull¬
Opinionwa^
somewhat

>

divided

on

General

Carl M.

enterprise

attracted

&

Co.

Members New Tor\ Stoc\ Exchange

bolstered

Gimbel

Loeb,

Rhoades

American

Transportation, and unfavorably
disposed toward ACF Industries.

42 Wall Street, New York

cor¬

1

respondingly broadened investor
Socony, as in the preceding interest, with the common in the
quarter, was in high disfavor; latest quarter being newly ac¬
with the largest single seller being
quired by United Accumulative
Investors
Mutual
(38,000),
fpl- (40,000)
and
Dreyfus
(17,000).
lowed ' by r Putnam
with
16,000
Continued on page 25
shares.
'

\

.

f

ENERGY
FUND

None

6,000

ijfeev- Q/cvJc

Fund, sold 15,300 Nickel
Plate, in which issue the Sellers
consequently
outnumbered
the

1(1),

2

EATON & HOWARD, Incorporated
24 Federal St., Boston 10, Mass.

Income

1

1

Prospectuses available from
your Investment Dealer or

Lazard

Refining, where buying Retailers Mildly Favored
heavily by Welling¬
The
increasingly
progressive
ton's new commitment of 120,000
was

7,000 ' % :'2(1');

7,400
14,400 y
13,300

was

,an*

lnC0 me

a

Atlantic

None

8,500
3,000
4,000

Panhandle Eastern Pipe Line

Wellington
largest buyer

the

shares.
.

—_l_ vr

few sellers'.

liked Cities Service. Also popular
were Standard of California, and

5(1)

None

Selected

American the largest buyers, and
Lehman Corp. the largest of the
wise

-None

10.900

and

Atchison.

which

of

initial

terest

-

in

l0rnrr>on

Interestingly, this
management, Value Line

same

themselves.

Wellington

and

for

20,000' shares.

buyer,

Oil of New Jersey,
Fundamentalthe
largest

"

Line

(25,000),
while
M.I.T.
added
43,900 shares and
State
Street 36,500 — while a
heavy seller, to the tune of 15,000
shares, was1 Value Line Income
Fund. M.I.T. was also the largest
\
buyer of Atchisori, with 35,000
shares; this carrier also being
favored by Lazard (15,000). C.&O.
also found a large buyer in State
Street, which picked up an initial
21,200, as did Value Line Income
Fund with 10,000. The latter was
the largest buyer of Illinois Cen- 1

of

ec4 F>rirrndri'ly

chs

position

with

y

Mississippi River Fuel

mentioned
the best-

sf0

(

were

no

In Seaboard Putnam Fund took

Standard

with

r4
None

None

Gas

30,170
26,000
1,500
36,300

3

,

None

Natural

2(1)
4(2)

1

;

6,000;

St. Joseph Lead

3

was

Investment

was

with;.Lazard

1,000,
1
A.IwY'VT£■>.•'

19,300 V". American Smelting & Refining.

1,600;

as

more

14,500

popular carrier issues

purchaser; followed by Texas Co.,

—

2(1)
4(2)

Dutch,

once

America

Next

—

Seaboard Air

America,". with
11,000
shares,
joined only by de Vegh with 5,000.
Next highly favored were Gulf,

20,OOOfMil(l)

-*•

above,

seller

1(1)
1(1)
2(2)

7,000
.10,000

Strongly Favored

Royal

-

bought
petroleum
issue,
even
though not as eagerly sought after
as
in previous quarters. Lazard
bought 40,000 shares, State Street
24,000 newly, the Bullock Group
26,500, M.I.T. and One William
Street 25,000 each. Largest single

;None

30,000
None

commitment.

.

Mining—Gold

-••-

(4,425), One William
(3,375), Investors Mutual
(1,900), etc. Wellington bought
90,000 shares of Burroughs as a
new

Metals and Mining—Nickel

-

best
its
including

group;

Fundamental

,2

7,000

International Nickel

the

was

this

Street

~

Falconbridge Nickel—
4

in

purchasers

.

'

1;;1,700
6(2)
31,700

issue

most

of

with

sellers.

new

Oils

:

Home stake Mining...

usual,

as

bought

3(1)
3(1)
1.(1)
3(1)
1(1)

.

6,000
Dome Mines—
15,000 V Kerr-Acldison Gold Mines

IBM,

"

,

seven

10,000
34,140 *
1,000

—

and

Popular

;

Metals and Mining—Copper

Howe Sound

None

;

25,700
3,800

—,

—

1,000

■

.;:500

Anaconda
Cerro de Pasco
Copper Range.—
General Cable
Inspiration Consolidated Copper
Kennecott Copper
Magma Copper.
1
Phelps Dodge
Revere Copper & Brass

Metals

2(1)
1(1)

—

Aluminium Ltd. « j
Aluminum Co. of America
Kaiser Aluminum.
Reynolds Metals
U. S. Foil "B"__
-

5(1)
2(1)
2(2)
%

None

Metals and Mining—Aluminum

.

4(1)
'4'V'

_1

United Shoe Machinery
Worthingtcn
Emhart Manufacturing

Co.

initially

STOCK

was

________________

ment

d

\oc<

Pacific, of which M.I.T.

Southern

po«*«
orae-

interest

—

2

tof

stocW

investor interest. The selling which
had
accompanied the return of

1(1)

9(3)
2

3(2)

4(1)

70,000
2,700
15,132
123,100

Tennessee Gas Transmission
Texas Eastern Transmission

1.

4,000

;

None

None

None

me

None

Texas Gas Transmission..
Transcontinental Gas Pipe Line

1

_

on

orfon

rJ'und

2(2)"

30,000

Continued

_

page

A mutual investment

24

c

Massachusetts Investors
Growth Stock Fund

fund,

concentrating on the se¬
curities of companies in
industries such

as:

oil

-

.

NATURAL GAS

The

Cjeorge

PUTNAM

ATOMIC ENERGY

TsUassdchusetts Investors

trust

ELECTRICITY
and

FUND

of'Boston

.4

'"4

'

'

activities

other

lated to the energy

Century Shares Trust
1'

4.

■

h

The

principal objective of
possible longcapital appreciation.

the Fund is
term

There is

'A BALANCED FUND'

Canada General Fund
LIMITED

-

commission

no

any

loading charge of
kind payable to any¬

GROWTH

FUND

asset value

are

offered at
redeem¬

able at 99% of net asset
A prospectus

relating to the shares of any of these separate

investment funds may

Emphasizing possible long-term Capital Growth

Shares

net

PUTNAM

or

sales

one.

THE

-re¬

fields.

he obtained from authorized dealers or

VANOK, SANDERS

N.

COMPANY

value.
SEND

FOR FREE

PROSPECTUS
Write to Dept.

T

-

Distributor

111

Prospectuses

on

DEVONSHIRE

STREET

ralph e. samuel & co.

Request
BOSTON

Putnam Fund Distributors, Inc.
;
New York

NEW

60 CONGRESS STREET, BOSTON
Chicago




Los Angeles

Washington

61

Orlando

YORK

Broadway

Members
LOS

CH ICAGO
120

South LaSalle Street

210

ANGELES

West Seventh Street

N.Y.

Stock

Exchange

115 Broadway, N.Y. 6
CO 7-8600

'23'

The Commercial and Financial Chronicle .;

<««

H
•

S» *

%

Whipple

With Bacon,

Continued from

-

has

H.Uttcll
joined Bacon, Whipple & Co.,

135

page

CHICAGO, III.—Willis

west

No. of

-

Trusts

Street, mem¬
Mid¬
Stock Exchanges, it has been
Littell

14,500
2,500
13,300

'%:■

1

1

American Natural

Gas

Kl Paso Natural Gas

600

Lone Star Gas

& Sons Co. *

R. R. Donnelley

3(1)

Western Natural Gas

No.of
Shanes

3

;

5(1)

5(2)
5(2)
2(1)

1

.

3(1)

4(1)
3(1)

9,011
95,500

1

'

; 7
;
;

Burroughs
IBM

10,770

4(2)
luv

Equipment

Addressogrc'ph-Multigraph
-

3

11(1)

■

3

XX'.

:X;X

1,000

8,200
•

1(1)

261

-

Pitney-Bowes

8,500

1

1

5,600

National Cash Register„

.

2(1)

2
1

Oil
6

f

; 22,100

'.1 4(2)
2(1)
1
,

X

,

7(2)
5
1

,

2(1)
;15~X•

3(2)
1

4(1)
5(2)

is a mutual fund

in Which the management

2(1)
15(2)

and

to make your money grow

takes what it considers sensible

5

.

5(1)

risks in that direction.
8ooklet (prospectus) free from your

5(1)
2

dealer

6(1)

DREYFUS^-. 508'way..New York4

Of

5(1)
11
2

Shareholders'Trust

of Boston

Kern County Land
Kerr-McGee Oil

3(1)
2(1)
10(1)
2(1)
2(1)
2

—

1(1)

3

3(1)
3(1)

2

;

-

>

Texas Pacific Coal &

Oil

3,900
13,700

1
1

10,000

1

1,900
None
None

Plymouth Oil
Shelly Oil
Socony Mobil Oil

3

12,000
30,200

6

A balanced mutual fund for

cur¬

rent

income

term

growth of income and capi¬

and

possible

None

None

Prospectus

on

request

X

75 Federal Street,' Boston IS, Mass.

Gas

&

Electric

Peoples Gas Light & Coke

—

SECURITIES,

Company
——
9,000
Electric
X 5,000
Gas, Elec. Light & Power
None
Union Electric (Mo.)
"
1,500
Virginia Electric & Power
1,000

Illinois

Light

mon

•'

».

Commonwealth

13,312

3

13,000

Consumers Power

17,900

3

30,000

Duquesne Light

-

Cincinnati Gas & Electric

Edison

6500

—

2

3.500

2

None

None

Gulf States Utilities

None

None

None

Interstate Power

18,500

2(1)

2(2)

2

Middle South Utilities.1

36,700

4X

2(1)

3,500

Minnesota Power & Light

None

None

,X

_•

II,100

1

30,500

Ohio

6,500

i

3(1)

5,000

2

Public Service of Colorado

10,000

5,800

2

Rochester Gas & Electric-

2,000

UD

Edison

Philadelphia Electric

500

l

2(1)

2(1)

Northern States Power

Xix

4(1)
13(8)

%3(1)

7,000

Niagara Mohawk Power

West Penn Electric

11,100

31,900

3(1)

34,300

—

4

700
None

None

24,500

Fibreboard Paper Products
International Paper
Mead Corporation
St. Regis Paper

27,100
400

4(1)

Scott

30,000
2,400

Paper—

300

2

16,700
5,200

1

100

Crown Zellerbach

200

Federal

-

•

; Union Bag-Camp Paper

Warren

4,600
13,200

11(1)

1

XX

(S. D.)—

None

32,000
6,800
42,000
3,000

Great Nort hern Paper

.

Kimberly-Clark

American Tel. & Tel—

38,250

General Telephone

2

1

Western

3,200

X

-

American

Electric

Power

21,000

American & Foreign Power-—"
Arizona Public Service

12,000

Baltimore Gas & Electric

2(1)

3,800

Union—

i:

"

'
.

A free
copy

;

J|

.i

-■

•

•

-

of

our new,

will be sent to

firms.

Just

ask

Radio, Television and Motion Pictures

2(1)

Disney (Walt) Productions—

18,550

2(1)

3

2,500

None

None

None
2

*

.

American Broadcast.'Paramount

78J200

2(2)

32,240

4

7,580

Columbia Broadcasting

1,800

Motorola

3J000

2(1)

—

32,600

2(1)

Zenith Radio

None

6,500

ONE

2

ONE WILLIAM
STREEr

.

comprehensive catalogue

FUND

a

copy

on

your

business

letterhead.

:

i

I

trial
Members: New York Stock Excli.




KALB, VOORHIS & CO.

.

investing in the securities of American business and indus¬

Ai4r*n_

Or.

inc.

open-end management investment company

an

Amer. Stock

1037 WOODWARD BLDG., WASHINGTON 5, D. C.

enterprise with emphasis on long-term capital growth

possibilities and current income.

Exchange, (Assoc.)

Prospectus
'

'i

-

'

- '

on

.

-

request WILLIAM STREET SALES, tNC.
.

'

One wrillam

;

———

—

Warner Pictures

800

1(1)

1(D:

1,000

10,000

None

"

1(1)

15,000

;

Twentieth Century-Fox

1

2

principals of established dealer
for

:

2(2)

—10,612

None

4(2)
3(1)
3(2)

None

10,500

3

5,800

3

2,500

13,400

Hawaiian Telephone

None

None

42,600

Paperboard.

35,389

3(1)

2(1)

Public Utilities—Electric and Gas

;

'

Html M*w V*dc S, H. T. C7FO

•*;

Public Utilities—Telephone and Telegraph

1

Development of MUTUAL FUND SALES

<

v

SNot including; sale of 41,50d shares by United Corporation.

-

OlSVKflMITOftS GROUP, INC.

♦

2(1)

%16,000

9,500

2

3(1)
2(1)
2(2)

I

7,000

WILLIAM

.

■

2(1)

20,500

None

Power

'

quality.

;

Florida

their invest-

M

-

Columbia Gas System

INC.

'Mam*

X

:

2(1)
2(1)
2(2)
3(1)
3(2)

5,138

Dealer Services for the

j Mail this >
J- advertisement.

\

15,000
18,600

,

;

-1

15,400

Complete Catalogue of

selected for

!•» ment

KD.1

None

12,300
15,208

■
m

com-

stocks

500 1

.:x'x;

None

,

—

Wisconsin Electric Power——

X'-

1

-

—

Tucson

The

and pos-

through
;

2

Southern

Tampa

15,000

Hj

investing for in¬
come

KD
None

-

None

2.(1)-V 10,000
2(2)
29,900

A mutual fund

sible growth

None

2

None

2

«*0UP

1 XX

None

None

1

3

FUND of

2(1)'
KD

KD

1

None

j-

COMMON STOCK

2(2)"

.

Southern California Edison.

,

2(1)

.

„

Puget Sound Power & Light—
San Diego Gas & Electric--——
Sierra Pacific Power

1

BOOKLET-PROSPECTUS

2

8,100
30,000
28,700
35,000 ~
44,400
7,386

Public Sendee Electric & Gas

Public Service of Indiana

600

2(1)

4(1)

Container Corp. of America

2(1)

describes THE

X

—

1

XX.

Champion Paper & Fibre

2

m

2

4,000

X

-

None

None

55,635
10,100
43,900

1

48,050
35,400

1

Corporation

1

"

Pacific

Central Maine Power x,

7(1)
4(1)
3(1)
7(1)

1

^

1-V-•

2(1)

•

Paper and Paper Products

3

Chase Distributers

Oklahoma Gas & Electric

Central

2(1)

tal.

England Electric System—-

None

l

long-

New

None

1

107,400
50,100

1,900

None

2

/ 3,030

Trans Mountain Oil Pipe Line

6,100

Montana Power

3,000
7,000
50,500
25,500
6,740
13,500
50,600
62,100

1

10,500

2,000

Minneapolis Gas

None

None

.60,500

.

None

—

Brooklyn Union Gas

19,000
6,700

Mission Development

None

1

None

Louisville Gas & Electric

None

23,000

Louisiana Land & Exploration—

Nona

KD:

3,400

None

500

-

■n

7,000

_

5(2)
4(1)

1

7,140

Union Oil & Gas of Louisiana-White Eagle Oil
British Petroleum

200

City Power & Light——
Kentucky Utilities

2

4

'

1

Power—

2(1)

1,500

Kansas

3(2)
4(1)

5

None
__

12,000
'

2

2

None

Union Oil of California

Illinois

None

—

Power

1

None

99,400
2,350
19,400

Texas Natural Gasoline

Idaho

None

None

Light—

Lighting & Power

1(1)

2(1)

None

General Public Utilities
Houston

.

1

600
-

-

Florida Power &

5(1);

None

Texas Co

Kl)'

Delaware Power & Light—

3

:

-

(Ohio)
Sunray Mid-Continent Oil
Superior Oil (Calif.)

9,500

—

Dayton Power & Light--

1

-

Standard Oil

1

2

,

—

1

1,000

2(2)
2(2)
KD
Kl)

-

"V

2.500

1(1)

7,300
Phillips Petroleum—
———16,500
Pure Oil3,000
Richfield Oil
10,000
Royal Dutch Petroleum
16,000
Shamrock Oil & Gas
4,000
Shell Oil
16,500
Signal Oil & Gas—
14,945
Sinclair Oil
9,000
Southland Royalty
None
Standard Oil of California
13,700
Standard Oil (Indiana)
6,000
Standard Oil (New Jersey)
65,058
—

X'

IX

(N. Y.)

None

—

-

Kl):

<

-

Service-—

Public

2(1):
2(1)
3(1)

2 XX'

None
3,000

Ohio Oil

None

300

1

None

200

7,900

—

None

Detroit Edison

5,400
12,200
23,500
56,319
39,300
1,500
5,700
1,000

3(2)
7(1)

1

7,000
None

"

2,000

1,000
41,653
8,600
1,500
I,500

2(1)

5,200

———

—

5,500
173,000
12,500
19,000
11,380
22,000
3,436
18,800
23,500
23,027
16,700
40,300
1,550
34,800
7,300
14,800
1,780

3

Cities Service
Continental Oil

Kl)
None

20,300
13,840

20,000

;—

14,000
X

1 V

—

Consolidated Edison

200"

2(1)
2(1)
1(1)

6

15,000
1,500
None

Calgary & Edmonton
Champlin Oil & Refining——-

Delhi-Taylor Oil
General American Oil
.Gulf Oil
Hudson's Bay Oil & Gas

41,000
14,500

3(1)

hopes

15,400
52,686
12,000
' 5,000
3,250 v

43,516
3,500
19,200
5,000
70,000

1

The Dreyfus fund

Amerada Petroleum
Atlantic Refining

133,200
8,300

'

No. of
Trusts

Community

2,500
14,100
50,600
92,359
6,800

2(1)
6(2)

■;>'

1

4,300
3,500

„

.

J

Cleveland Elec. Illuminating
Columbus & Southern Ohio Elec.

,

1

Office

Carolina Power & Light
Central & South West

1,200
18,700
7,100
9,600
1,000
6,300
6,925

*

2

1

2,500

~

No. of

Shares

1

Trusts

17,000
5,000
26,752
29,000

United Gas

4(1)

formerly with

was

No. of

!

Sold

No. of

Trusts

■

Shares

48,400

Kl)

'

announced.
Mr.

Shares

5(2);

New York and

of the

bers

Thursday, February 5, 1959

—Bought—

23
Sold/-

South La Salle

'■

.

'f'

Street,

New York 4-,

N. Y.

" ■

!'r.S

■

■

Volume 189

Number 5818 ;.

The Commercial and Financial Chronicle

,

Sold-

—Bought—

.

Continued

No. of

No. of

No.of

Shares

Shares

23

page

t* •*

Trusts

I

7(1)

63,500

Atchison, Topeka & Sante Fe—

2(1)

67,100

Atlantic Coast Line.

6(1)

50,700

5(3)
4(2)

28,500

Denver &

6(2)

16,700
52,800

Great Northern-

Illinois Central

4(1)

12,300

Louisville

Rio Grande Western-

8,000

Norfolk

10,000

Northern Pacific.

'-v

7(3)
8(1)

53,100
9,000
2,000

1
1

Southern Pacific™"™-.

-'V

_-

__

3(1)

17,100

Arnerienn

5,200

3

;

7,100
25,000

1(1)
3(1)

Brake Shoe

New

ACF Industries

4

4

2(2)
4(2)
1

3(2)
2(2)
.1
2

2(1)

Great A. & P
Green

1(1)

1

2

^

1

Kroger

None

1(1)
1
1(1)
1(1)
1

8,500

1(1)
2
3
2
2(1)
2

None

None

3,000
31,020
12,500

15,900

—

V. 4,100

National Tea

'Simpsons Ltd.

■1,000

None
None
1(1)
None

500

Federated Department Stores

None

.

7,500
16,600

WoolwoBh (F. W.)
ACF-Wrigley Stores

156

1
None

...

8,000

-

-—

Winn-Dixie Stores

8,800

1(1)

10,000

_

Spiegel*^©.

;

—_—

Rubber and Tires
2

16,500

Armstrong Rubber "A"

9

14,880
11,500

Firestone Tire & Rubber

440

Generalfflfljjf & Rubber.

None

2(2)

1

7

7,248
28,600

6

3

•

2(1)

,4,000

'

-2(2)
3

5(1)
r

5(2)

.' 7

;

10

;

8(1)

veteran

units

such

as

r

^*

the

best

liked

Affiliated

the largest

buyer, with 30,000 and
20,000
shares,
respectively.
Of
U. S. Steel the Tri Group bought
20,100. Sharing the spotlight were
Republic and Armco; the former
finding its largest buyers in M.I.T.

of

(54,400)

barely

the

and

Lehman-One

of

uled

United

Funds group, Investment
Trust of Boston, and the Adams-

-36,000

i u.;s. Stegl^

1,500

..

—

—

i

-Youngstown Sheet & Tube.

2

5,000

2

l

2,000

3

21,500

Allegheny Ludlum Steel...

textile

57,000

.

None

Mesabi Iron

-

5,500

Continued

on

United

and

INC

your

upon request

investment denier,
■I
or

from

Science

FUND

RESEARCH AND

Split-sched¬
ex¬

was

sold,

especially

i

MANAGEMENT, INC.

and

group

the

by

Dreyfus.

outnumbered

6T WALL STREET

Buyers
in

sellers

Lazard

In

buyer of Armour

5, N. Y.

was

(50,000), with the follow¬

ing explanation: "This is
lated risk

we

have

analysis."

United Accumulative Fund took
a new

INCOME FUND

calcu¬

assumed, but

intensive

after

a

40,000-share position in Na¬

ings improvement, was far-flung tional Biscuit. On the other hand,
Merchants
&
Manufac¬ newly-merged Corn Products

turers,

the

Fidelity

and

2(1)

Prospectus
from

A Mutual Investment Fund

which seeks HIGH CURRENT INCOME from

(56,000)

and

both

selling sides,

American

notably

-

In

transactions

usual,

on

found

newly).

(4,000
as-

heavy

including

bifyers

the buying

purchasers

in¬

cluding the United Funds group,

more

sellers

Affiliated

Securities

than

and

buyers,

National

Madison

Income.

and

Putnam eliminated their holdings
of

Kellogg;'

Dreyfus

Loomis-Sayles ' &

disposed

of their

Continued

on

*

se-

Bonds '

lected Stocks and

without undue risk to capital..

United

Rayonier,,

8

page

issues.

European

'

v

largest seller
Investment Co.

Warner-Lambert

Biggest

AIC

2(1)

2,500

-

Bethlehem Steel

FUND

Foods

None

,79,300

PIONEER

NEW YORK

None

3(1)

—

e-t

Tri

'8,500

7,500

BAILEY & CO

the

was

clusively

lead,

Republic Steel

A.

,r

profit-taking

America

earn¬

87,500

GEORGE

:!•

favorites

recent

liquidated Eli Lilly.

the

None

—

Bristol-Myers.

anticipating the sensational

3(2)

or

ENCOUNTER

(20,000 newly Merck. Loomis-Sayles reports a
and
10,000,
respectively);
and complete disposal
,pf its 4,750Armco
being
bought
by
Tri, share
holding in recent market
Fundamental, M.I.T., Lazard, and
others. As in the preceding quar¬ newcomer Upjohn.
ter, Bethlehem was sold on bal¬
ance, the disposers including the Varied Attitude Towards

1(1)

36,500

■

Send for FREE Prospect**
from your Investment

William Street duo

Textiles Come Into Favor

National

income.

plans and ru¬
firmer interest rates,

stocks

U. S. Steel and Youngstown Sheet
& Tube; in both these, M.I.T. was

of

Jones &

r"

:|T©wth of capital and

lead¬

group occurred in Parke,

None

'42,500

in-'

FUND

merger

Heaviest

as

groups

None

—.

j*

performed as the most unpopular
group. Thus, the Value Line Fund
sold all its bank issues, namely
Chase Manhattan, Chemical Corn,
Guaranty, and Hanover.
Other
sellers included Madison, the Axe
Group, and Investors Mutual. Only

Hanna

Miqlpg

same group

SELLING
Despite
mors, and

1

Inland Steel

was

in this
Davis—
during
the
quarter,
with
the just split three-for-one — largely
notable exception of Bethlehem. by Affiliated
(133,000) and In¬
Most heavily bought issues, were vestment Co. of America (51,000).
of

2(1)

17,340

(47,000).
also
well-

-group

MUTUAL

vesting in a
diversified
of securities selected
tor possible long term

«roup

Dealer

None

;

Funds

BANKS

None

Cleveland.^Cliffs Iron

h

was

Drugs Meet Profit-Taking

The bellwether steels served

one

■

REACTION

Steels Bullish Leaders

10,900

.
—

Lorillard

United
Corporation, Selected Chemical Com was bought on bal¬
American, etc. Also favored was ance.
Goodyear,
while
opinion
was
divided on Goodrich and U. S. GROUPS MEETING MIXED

were

None

as

2,000

;

United"

Crucible

-2,000

105,900

;'v

well

was

or more.

Wrmaf Pennsylvania Personal Property Tmm

here, with the
newly-acquiring

buyer

Philip
Morris
bought, with the
ing the buyers.

Typical of the revived "cyclical"
only
interest is the broadened buying

.8,700

;

far the

amount* of $30

SOVEREIGN

Wellington and Dela-.

Kent-producing

15,500

•

1(1)
2(2)

by

issue

systematically
accumulated in

|

the star performer

largest

bank

•.

group,
etc.; with the few
buyers led by One William Street.

Carpentereel

,

J(3)

Iron

Armco Steel

61,200

26,787

..

L.

and

1(1)
6(1)

1,500

(B. F.)

siHl

1

None

63,600

Goodyear Wbre & Rubber
Goodrich

U. S. Rubber

40,100

,7

I

/

,

|

INVESTORS

Rubber.

2(1)

None

Stores

(J. C.)

Penney

None

None

14,000
None

•

Sears, Roebuck

18,800

None

None ""

——,

May Department Stores—
Mercantile

1
1

None

(S. H.)_
Macy (R. H.)
Marshall,Pield

2,500

4(2)

—

.

Kress

<

2(1)

1,100

22,000
20,200 '

™

Kresge (S. S.)

3,000
18,600
71,400

;

4(1)

_1

(H. L.)-_

Hecht—

as

3,100

__

:

outstandingly
Firestone, the
buyers including the new funds,
One William Street and
Lazard,

2

None

V

Grand Union

Here

chosen

1

36,700

.

I

Satisfying :

One William

1

U' f l..';:!/

'

Sfes^

Income

Rubber and Tires in High
■Esteem

None

1,000

Gimbel Bros.

25,300
6,000

1

4

Allied

7,100
59,000
9,200
18 ,000
38,200
1,700
13,600
13,000
3,000
10,300

3(2)

Trade

Line

picked up a 25,000-share
block of May Department Stores.

None

12,000

Rfctail

Value

ers' Trust of Boston.'

None

5,000

4,000

Biggest seller of this

was

Reflecting revived investor
interest, Woolworth attracted four
buyers, including new commit¬

2(1)

None1'

■•

-

•

Tobaccos

ments by Axe "B" and Sharehold¬

7,300
None

Westinghouse Air Brake

Id)

Boston.

Trust

Fund.

None

Yorfc*Air Brake

2,520

sellers

ware.

Street

Pullman.

20,500

Investment

issue

.

—

2

Dreyfus, H. L.
Affiliated, Group

of

2(1)
3(2)

26,300

General American Transport.™
General Railway Signal

.

v

1

7,500

N. Y.,

and

and

Securities, and

None

2,000

Railroad Equipment, i

3(2)

;

volatile

Green attracted

4(2)

None

—

Chicago, Rock Island & Pacific
Chicago & St. Louis—J—

32.500

Accumulative

None

30,000

Virginian Railway-™.

2,000

2

Railway

2'

traditionally

a

attracted particularly con¬

buying by Fidelity (37,000
newly), and, here too, by United

None

None

Aggressively Support
Big Bull Market

fident

None

16,000 ?

.....

Spiegel,
earner,

1

None

Seaboard Air Line___I—_____™
Southern

Union Pacific

None

None

72,000

3

None

3,000

.

-...d™..

_

None

None

Western___

Pittsburgh & Lake Erie

116,100 •/

5

1(1)
None

None

_

Funds

'

None

None

Missouri Pacific "A"_

1,850

■

None

24,7001"

&

O
O

KD

3,100

—-Li:!:...;..

Nashville

&

4

2

;

5,000
None

2

4

13,900

—

•

,f- *-

I., Shares miy he

Railroads

■

from

No, of

Trusts

s;

For FREE

tive Prospectus,
with your name
to

descripmail this ad
and address ^

^

Dept. K-41.

THE

KEYSTONE

COMPANY

50 Congress St., Boston 9, Mass.

hold-

page

26

26

Massachusetts

nanmiHniproBi

Life Fund
A balanced mutual fund providing

for distribution of income and prin¬

□ United Accumulative Fund
□

United
□

Continental

cipal in accordance with an individ¬
ual trust account for each investor.

Fund

United Income Fund
vf(a6 aacfu*se/A

□ United Science Fund

Afttdteutttce

CfCod/ufaly
c<Ccm/uxt*y, Trustft i •

Founded 1818

Prospectus

1901

Market Street




-

'

-

Wilmington 1, Delaware

request from

WADDELL & REED, INC.

Nationally distributed through investment dealers by

Delaware Distributors, Inc.

on

Prospectus from

Wall

Street

L

New York 5, N.Y,»

DISTRIBUTORS
20

.

or

MASSACHUSETTS LIFE FUND.

Principal Underwriters
40

your

Investment Dealer

West 9th Street
Kansas City 5, Mo.

50

St An Strut, Bosron

q,

..

Mm

r

v

Chronicle

The Commercial and Financial

im> :

m

E. F. Johnson Partner

Continued

from

Continued

25

page

.

Thursday, February 5, 1959

,

.

from page 25 a

'VfriM

■

Sold-

-Bought —

Alstyne, Noel

In Van

Funds

Alstyne, Noel & Co., 52 Wall
Street, New York City, members
of the New York Stock Exchange,
Van

announced that Edward F.
son,

John¬

Aggressively Support
Big Bull Market

Manager of the firm ings in Quaker Oats. Opinion
been elected a gen¬ cuviued on United Fruit.

Sales

was

since 1955, has

eral

partner.
Natural Gas Mixed
in part to favorable
developments, more buying
than selling occurred in natural
gas stocks, but the selling was im¬
portant enough to classify this
group among those eliciting mixed
interest.
Best bought was Ten¬
nessee Gas Transmission, of which
Related

TELEVISION-

ELECTRONICS

FUND, INC.
41st consecutive dividend
The Directors of Television-

Electronics Fund,

declared
per

a

dividend of 8j£

payable February

28, 1959, to shareholders
of record

bought

shares, joined by eight
managements,
with
the

26,100
other

February 2,1959.

f resident

135 5. LaSalla St., Chicago 3, III.

(with

There was only buying and no
selling in Champion, Container
Corp. and International; the buy¬
ers including One William Street
and Lehman for Champion; again
Lehman for Container Corp., and
William

for

International.

predominated chiefly in
Crown Zellerbach, of which M. I.
T. and Wellington were the larg¬
est sellers, and in Great Northern,
where the sellers were led by the
United Funds Group and Fidelity,

in

Transactions

momentum

of

buying of
with

was

in
South

heavy

quite

West Penn Electric, Middle

the

beverage

sold

vided

producer National Distillers.
Coal stocks generated only

mild '
despite
the
improved
business prospects. Island Creek
was
bought
by Delaware and
National Shares, and Consolida¬
tion by Lazard and Loomis, but
sold
by Lehman
and
Putnam.
Surprisingly in the light of its
interest,

predominated

market

enormous

42nd Street

17, N. Y.

NATIONAL OlSTftlBUTOft

ABCdisposed

completely

of Value Line Income

and

Madi¬

Fidelity made

a

which
however, was eliminated by Value
Line Special Situations Fund. In
"controversial"

only

Loew's

there

was

transaction, an elimina¬
tion by Overseas Securities.

and

ex¬

nental

Can

was

16,200
265,000

:

__

Miscellaneous

American Bosch

American

Arvida Corp.
Avon Products

•

1,200
0,957
10,000

4

4..

.

,

4

57,300
2,600
36,000

2,400
25,400

McKesson & Robbins..

2

3(1)

•tV

1
•

•

1

2,000

1

2,300

2

15,000

_

_

Vitro Corp.

200

_

.____ddF

Marine

Affiliated,

liberally

Fundamental;

also

by Fundamental,

by

Investment

among

The
end

bought

stock

as

Trust

price,

2(1)4

6,700
,13 £00
17,000

2(1):
2(1).

McGraw-Hill Publishing
Tri-ContinentaI

discount

than

well

of

the

as

Boston

giant closed-

company,

Tri-

an

all-time

a

smaller

with

existed

years, was sold

by

in

and

—_

Mgr.

_ _

C.

pointed

Reinders

District

a

Florida

been ap¬

has

of

Manager

it
been, announced.;; by. Milton

Street

Broad

n

Sir/iJie&lcc/t ri"r(?c.

*

(ESTABLISHED ISBl)

*

Members New York Stock Exchange
*

123 So. Broad St.,

Phila. 9, Pa.

Klngsley 5-3311
I

n

DISTRIBUTOR

*

NAME

H

Sales .Corp.

shares

which

reduced

shares; and
sold

7,500

has

he

since July,

been, with
Corporation

has

Sales

Street

1954, as Sales Develop¬
District Man¬

ment Manager and

for Florida and Georgia,

of

Opens NYC Office

the
The

Street;

Broad

management

the

Toyama.

of. Naomichi
;■.

.

'

•

„

Na¬

Form

Inves¬

Corp. and

Mutual

Ltd.

Securities Co.,

Tokyo has opened a New York
office at 25 Broad Street, under

Street-

poration,

Nikko

of

Magna
Erik

C.

39

Funds

dealers

in

Street Group

through invest¬
Connecticut,

territory

been

has

Reinders

the

of New York

State, Long Island, and certain in-

Magna Planning
Planning
formed

Cortlandt

City,

to

Street,

engage

Corporation

with offices at

in

York

New
a

securities
Sol¬

business. Officers are Myron
omon,

President; and Joanne Dig-

senhouse,
•were

Both

Vice-President.

formerly

with 'Atlas

Plan¬

ning Co.

balanced investment Profam£™nd

ownership of bonds, pteferrea, ana
stocks selected for reasonable income
possible growth of principal.

MUTUAL SECURITIES

Commonwealth Stock Fund
invests in common stocks of well-established //
companies selected jor their posabihties
,

FUND OF BOSTON

GROWTH:

ot

rzz>

GENERAL

| long-term growth oj principal and income.
f n INCOME: Commonwealth Income Fun
| is a mutual fund investing for current income.




loeal incest

ment

dealer

DISTRIBUTORS

KELLER BROTHERS

■"cJ

North American Securities

Russ

Prospectus

D

or:

Company

Building, San Francisco j

»

Nikko Securities Co.

is

Investing Cor¬

tors

Commonwealth Investment Co.

as

diversified

\our

•? -1

•

Group of Mu¬
tual Fundsr—

tional

16,700 warrants.

Georgia,

Reinders

Mr.

Broad

tributor 'for

Broad

FREE prospectuses about these mutual funds from
.STATE.

■■

will continue/to

CO,., INC.

_

ADBRESS.
CI7Y

fj

common

and
*

•'

,

national dis¬

Southeast

provides a

2

during the past five years.

ager

President.

and

On Request

ZERO

COURT

TELEPHONE

STREET

RICHMOND

2-2530

■

2(2),
.' •

work with dealers in the states of

Broad Street Sales Corporation,

ment

Request

32,900

_

Mr. Reinders also

For Broad St. Sales
Erik

by Fidelity whose

PHILADELPHIA

on

—

vestment firms in New York City.

Reinders Dist.

former

disposition

Dreyfus,

4

Okonite'

None

Fox-Martin,

but

■2(2)

150,100 X

None

has

of

3(1)

7,000

___

Foote Mineral

12,700

Street,

others.

investment

Y-/v

1

None

Filtrol

by

Polaroid

and

Continental, selling at
high

interest.

William

One

2(2)

Outboard

widespread

was

'

1

..

11,S00

_______

Fansteel Metallurgical

Marine and Polaroid continued to

attract

.

None

Wrigley (Wm.), Jr
American Chicle

None

10,400
9,500
1,006

_

L

None
None

None

_

——

None

fast-stepping

;

KD

None

Webster

Transamerica

4,400

--VY:

KD

•

None

&

Stone

:>;•/;

1

2,275

Marine

Outboard

Revlon

•

None"

None

25,000

None

Also in the miscellaneous cate¬

__,—

—

Polaroid

3001

1

3(1)'

Ohio Brass "B"___

None

t

:

1,500

Ogden Corp.

'

None

id);

6,000

__

Newport News Shipbuilding.

2,500
5,000

:

-

None

Newmont Mining

11,000

2

2(2)/

'
.

-

Hertz

9,405

1

*

id r

Halliburton Oil Well Cementing:

50,000

1(1)

1

N«ne

Grolier Society

7,000

2

(1)- W

1

'

•

Harbison-Walker Refractories

1

gory,

2

.

2

which was
William St.

One

760

___

2,000

300

by

3,000
4,000

Ekco Products

6,400

bought

1

8,000
5,666

61,500

3(1)

1

•:

Glidden

1

also

440

Gillette

1

new

i

1
»•

None

None
V
____

10,000 ;
24,600 v

hand,
position in

a

None

35,200

-

the only seller. On the other

Finance,

None

■

2(1)
4(1).

2

took

•

'None

Colgate-Palmolive
Eastern Industries

r

unit) was best liked, with M. I. T.
the largest buyer, Axe "A" being
"B"

1

None

Brunswick-Balke-Collender

401

O*.

2

of

Prospectus

•

1

1,500

Beech-Nut Life Savers_^»_i_i__

shares of the Broad

A Mutual Investment Fund

-

2

r-114

Express

tion, Mr. Reinders will have
charge
of
the
distribution. of

BALANCE:

None

,

Anna.

American-Marietta

5,000 V
1

2

Fund.

34

n

id)'-

None

American Machine & Foundry
-

Fund, Inc. In
his new posi¬

INC.

.

.

-

2,500

Whitehall

FUND

2(1);-

1,000-

_

-

500

r.

2(1)':

v.-

______——

__

540

:

2

Among the finance companies,
C. I. T. (prior to the Ford decision
to re-institute its own financing

its holdings to 130,000

Fidelity,

3(1)'

•

~

Tobacco

(P.)

Philip Morris
Reynolds Tobacco

63,700

well-bought, by shares, leaving it with 6,000 shares

United Funds group and

American

65,400

3(2)
■3(2)
2(2)

6

25,400-share

^In the container area, Conti¬

Tobacco

Lorillard

1,500

•1

7(1)

one

Interesting Miscellania

-YUtiited

500

new

commitment in Walt Disney

1(1)
1(1)'

26.015

,

1

and in CBS, sold largely by

Wellington.

rise

and

in

-

21,000

2(1)

panding business activities, coalunderwear-boot producer Phila¬

Beneficial

Radio-TV-Movies Mixed

:

2,500

;

-2(1) ; V
1
> -

—

6,600

2

:

6,100 f

1,000 ;
Cluett, Peabody
McGregor-Doniger "A" —____Y *15,000
Rayonier
^- 33,900 •
25,300
Stevens (J. P.)___—

74,375
53,100

1(1)

liquor-chemical-metal

on

Axe

Interstate Power, Ro¬
& Electric, Columbia
Gas System, and Central Maine
Power. On the buying side of the
utilities, GPU excelled, the larg¬
est purchasers being Wellington
and M. I. T. Also well-bought was
Peoples Gas, some of this buying,
as in GPU, presumably emanating
from the exercise of rights.

Sellers

group,

Coca-Cola

its

Utilities,

son;

East

4(2)

5(2)
5(1)

1(1)';

'

In

sale by Energy

substantial admixture of selling.

Paramount,

New York

•

=■

vester, on the other hand, was
well liked, with Wellington the
largest of six buyers, and Knick¬
erbocker the only seller.

chester Gas

60

Har-

delphia & Reading prompted only
one transaction, a 500-share partial

liquidating their holdings.

Liquidation

•f America

sellers

seven

International

issue.

Papers Divergent

a

INVESTORS PLANNING CORP.

led

33,000)

the

of

75,140

_

^

1

'

*

A.

1

utilities continued, but again

Prospectus and Literature
from

20,000
63,275

4,000

—

Burlirrgtoii ^Industries; £_■!:

y/-'

^

1.000-'-

CelarieSe

000) and seven others in a near
stand-off process as Fundamental

joined
therein
by
three other
funds,
while
only
two
funds
bought this issue. Opinion was di¬

The

TRUST

■;

Trusts

&

<.

Beaunit Mills

2,400
5,000
14,312

'2

Two-Sided

INVESTORS

-

2(1)
5(1)

stock,

Utilities

GENERAL

T

3

group,/

also

second most pop¬

predominated, in both in¬
stances led by Investors Mutual.

all

For Income

1

sellers

was

Selling

Chester D. Tripp

~

No. of

American Viscose tY___—_

>''

10,000 •V
23,000
15,000 >':

1

bought by Lazard (31,-1

was

2(1)
1(1)

ular, with Wellington the largest
acquirer.
In American Natural
Gas and El Paso Natural Gas,

lone seller.

Fund the

United Gas

One

February 2,1959

equipment

>

PepsiCola found three buyers, includ-.
ing Investment Co. of America
(30,000
newly), while Lehman,
sold all its 15,000 shares. Lehman

Value Line

Inc. have

share from earned in¬

come,

alone

Mutual

Investors

Deere

on

farm

the

In

court

31*,000

3(1)
.1(1):

Y-Y '■Y/ Y'

sYY ;Y

;;■* -Textile

the other hand, was
in great disfavor, being hit hard
by
selling
from
Fidelity, Tri,
Madison, Delaware, Lehman, etc.
Can,

<■"'t/

No. of r:;
Shares

';Yfv

■:

Sharesi

Trusts

while sold by State Street..Amer- ican

*.?:r-''T■'

No. of

No. of

BOSTON 9, MASS.
TELETYPE BS

630

Volume

189

Number 5818

.

The Commercial and Financial Chronicle

.

.

(679)

Security Transactions bylttie * 44
83 Investment Companies
During Oct.-Dec., 1958 *

Balance Between Gash and Investments of 83 Investment
End

Companies
of Quarterly Periods September and December, 1958
investment Bonds and

Net; Cash & Governmental*

Net Cash & Gqvernmentst

Com. Stks. and Lower

Preferred Stocks*

-(In Thousands of Dollars )-

Grade Bonds & Pt'ds.

Per Cent of Net Assets

Per Cent of Net Assets

End of

Open-End Balanced Funds:
American Business Shares

Sept.

Axe

Fund

.

37.3

35.7

58.5

23.9

§25.3

§74.5

227

262

227

0.8

25.6

23.4

72.0

75,8

208

439

208

439

2.8

2.3

Ti33.6

P1.8

$63.6

$65.9

12,993

13,715

6,444

10,273

3,999

1.9

1.7

11.7

83.5

10.3

7.6

21.1

21.5

68.6

70.9

1.8

1.6

26.6

31.9

71.6

66.5

2,189

3,915
5,823

68

5.1

,4.4

27.5

24.7

67.4

70.9

260

215

260

215

'22,955

10.9

11.5

25.6

22.6

63.5

V

65.9

4,035

8,779

299

874

4.8

14.0

24.8

27.8

70.4

'

58.2

809

480

329

:

195
478

-

476

8.9

4.6

18.3

18.4

72.8

77.0

468

137

266

32

988

5.1

5.3

8.8

9.8

86.2

84.9

0.6

$66.1

3,572
42,265
1,057

2,515
33,627

2,568
23,593

2,324
14,930

861

912

562

528

8,200

1,164
7,333

'

§1134.7

1)33.3

~~5~.4

§$63.1

370

V4.7

26.7

22.2

67.9

73.1-

2,348
15,985
3,265

16.2

16.5

10.3

8.9

73.5

74.6

528

21.2

22.3

22.9

19.0

55.9

58.7

8,218

1,164
8,876

1,491
4,257
2,467

8,037

14,330

New England Fund

2,619
2,165 A
9,228-1,644 ,

III.
Fund

of Boston.

6.7

27.8

25.5

66.8

67.8

16.8

8.7

27.4

23.9

55.8

67.4

2.2

1.6

6.4

9.8

91.4

88.6

8.7

11.5

36.1

34.0

55.2

54.5

1,635
4,151
5,460
1,162

14.9

14.3

20.0

18.9

65.1

66.8

672

542

672

542

9,361

3,650
1,379

5.4

2,110
1,088
3,652
2,234

2,388

...

National Securities—Income
Nation-Wide Securities

5.6

5.2

26.5

25.6

67.9

69.2

12,837

10,902

5,788

5,607

1.9

32.2

29.9

65.6

68.2

927

66

None

None

35.6

30.4

61.3

67.2

3,492

1,402
1,970
3,096
14,107
18,685

3,170

733

10.0

14.7

25.7

64.3

65.6

968

53

3.9

0.6

None

1.7

96.1

97.7

7,263
74,178

2.6

8.2

4.9

4.4

92.5

87.4

9.0

8.7

25.5

23.2

65,5

68.1

3,024
8,572
33,386

251

2.8

2.4

39.2

40.3

58.0

57.3

754

656

295

192,012

6.5

6.5

24.2

23.2

69.3

70.3

189,085

151,853

137,544

96.3

1,558
a20,447
2,421
1,633

486

96.4

0.4

86.6

88.3

6.8

10.0

0.7

0.7

92.5

89.3

22.9

23.3

None

None

77.1

76.7

576

2.0

0.8

6.0

5.8

92.0

93.4

None

None

99.3

99.9

Group Securities — Com. Stock Fund
; Incorporated Investors

16.6

None

None

81.6

83.4

5,689

2.7

None

None

99.9

97.3

24,283

21.7

18.0

None

None

78.3

82.0

8,850
11,781

4,868
6,760

8,850
8,047

18

48

0.4

0.8

None

None

99.6

99.2

214

104

214

5,184

1.3

1.4

2.8

2.4

95.9

96.2

27,260
13,192

22,883
3,824

25,113
13,192

V

7,517

1.9

1.4

0.1

98.0

98.5

111

:

1.1

0.5

0.6

None

None

99.5

99.4

200

141

None

None

97.8

98.8

8.4

5.5

0.9

0.9

90.7

93.6

None

92.7

93.4

5,656
al4,194
1,512

2,002
a8,212
3,166

0.9

78.6

84.6

•§6.8

§91.2

§932

None

None

68.7

87.2

16,590
3,193
a24,976
a30,431
12,922

10,527'

§7.5

y

17,026
2,858

7.3

...ll'r'

14.5

Massachusetts Investors Trust—•

32,313
11,117

Massachusetts Investors Growth Stock
Missiles-Jets & Automation
1"
National'- Investors

•

777

None

None

97.5

None

94.4

96.8

3.2

425

12,922

425

15.4

b25.8

c31.1

b38.2

53.5

249

None

181

None

2.4

0.7

0.7

98.1

96.9

2.6

1.3

None

None

97.4

98.7

16.4

3.1

0.9

61.8

82.7

5.0

10.7

11.6

84.3

83.4

2,282
1,008
a5,288
1,357

2,186
6,574
51,016

5.0

2,186
6,574
a51,016
1,481

.1,008

35.1

867

1,032

1,327

798

-

60 ^

*

i

v-\

,

889

...

United-Aceurnulative Fund-_—

5,756** V

1-- <•

; United Continental Fund—
: United Income Fund

2,340'
6,066
-3,863.

.Ji—

—

United Science Fund.—.

r

"

Value Line Special Situations
Wall Street Investing

i

187

—A

"

.

»

13,867
1,650
7,610
1,261
4,394
5,686
179

-r-\v Sub-Total Open-End Stock Funds

Total" Open-End Funds.

7

t

•

429,107 V
596,378 ;

72.4

73.9

1,327

857

96.2

97.7

/

2.3

None

None

4.2

0.9

0.4

95.3

95.4

al4,159

al2,264

14,159

II,934

1.3

4.4

4.3

93.2

94.4

243

114

230

.114

12,894
1,373
15,295
3,735
5,631
3,256
2,560

$$19,500

$$10,900

;

7.0

2.6
2.8i "'.v

a

.

1.1

90.2

91.9

21,507

0.4

0.2

97.0

95.5

898

3.1

a.

-

1.1

4.3

8.7

'

:

13.7

11.6

83.5

85.3
94.2
93.6

29,155
5,774
7,237
4,501
1,909

N6ne

.

None

898

28,990
5,415
6,791
4,355
1,719

-

1,373
14,045
3,558
5,631
3,219

3.3

1.3

2.5

92.0

3,2 /

2.1

2.1

4.3

94.7

6.2

7.7

0.5

0.4

93.3

91,9

2.2

2.0

None

None

97.8

98.0

14.2

None

None

85.1

85.8

168

107

168

107.

3.2

8.1

4.3

87.0

92.5

1,334

1,135

1,334

649

VATvv6.7 '

,

•

•

A
'

14.9
4.9

463*.

653 A

4.5

None

None

3.8

•

1,241

1,216

Wisconsin FUnd

5.7

531

3.8

'

,

36

.

15,255

21.6

:

:

2,282

2.4

586

3,820

•

21.9

3,640.

'

Sovereigri>Investors

4,035
13,180

30,431

5.6

3,031 Hr

■

98.9

b36.0

843

iJ.

-

>>. V" 1.2

7.406

3,097

Scudder, Stevens & Clark—Common Stock Fundi—

1.1

:

869

88,488

Price (T.. Rowe) Growth Stock

2.5

-

14,606
"2,995
24,799

a4,035 t:
al3,180

2,225
2,107
45,476

1,020

_ii,:

12.8

■

872"'

448

:

n

3,856

Pine Street Fund

.31.3

141

2,002
8,212
3,166
9,777?
872

None

b898

/

»

0.7
1*

17,254.
16,287

38,431 v

None

6.6

20.7

.

19,852

24,675 '

104

21,562
3,824'

5,656
13,077
1,512

662
•

760

200

2.2

1.2

-

Investment Trust of Boston.

"State Stireet Investment

1,717,
6,147
1,898
6,574

8,408
2,049

0.7

23,231
2,994

,

SeleetedsAmerican. Shares—

12,521
3,107
1,717
5,475
1,898
6,574
4,868

0.1

1.045

'I Institutional Investors Mutual
Fund§S
Investment. Co* .of America.

~

I,174

1,832
J 1,633
7,649
2,049
5,689

18.4

86

/One William Street

1,65^

13

•

4,088
8,657

...

97,855

20,447

0

1,174

986

-

——A

585

•

4,130

25,496

:

'

al2,522

44,306

a

•; National' Securities—Stock

3,027
13,987
13,313

28

—

Lazard. Fund

746

2,881
8,572
27,756

0.1

'

Fundamental Investors.
General Capital Corp

None

0.4

768

45,294

—

Energy Fund
-Fidelity Fund

None

11.3

1,242 A

...

Eaton & Howard Stock Fund

3.7

13.0

.

119

Dividend Shares

3.6

57,926
3,236
10,936

49^

II

882

2.4

4,998

167,271

-

363

650

2.2

274 :

de Vegh Mutual Fund...:

3,535

19.7

2,200
70,370

.Delaware Fund,,

716

1,390
3,222
3,548

3.1

370

_

855

653

3,001
__

,

1,538

742

_

Wellington Fund

•"

86.6
"

385

Mutual Investment Fund

Shareholders' Trust

A

.

14.6

2,252

<

;

262

§0.2
2.4

1,482

1,980
10,530

;

3,650
1,702

819

Mutual Fund

Texas Ftmd

1,624
6,379

2,400

.Blue Ridge Mutual Fund
Bullock Fund

I

3,850
3,776

4,480

60,088

:

1,886
7,584

58.6;

§72.5
§74.8

11,029

Aberdeen Fund
-Affiliated Fund

1

751

72.7

§26.9
§25.2

76
-

233

Sub-Total Open-End Bal. Funds.
Open-End Stock Funds:

.

None

11,525
3,744
2,478
1,748

Whitehall Fund

-

751

866

Value Line Fund
Value Line Income Fund..

-

None

20,509

Stein Roe & Farnham Fund

•

Total

Sales**

Purchasestt

15,928
11,163
7,714
6,123

Institutional Foundation Fund
Investors Mutual

.Dreyfus Fund

Sales**

309

George Putnam Fund__.
.Scudder, Stevens & Clark

.

56.3

3.4

1,280; *

,

.

55.5

Purchasestt

Total

13,759

Massachusetts Life Fund__

;

31.9

Common Stocks

Total

>2,282

Investing

Knickerbocker Fund

•

32.2

5.7

Johnston Mutual Fund

.

Dec.

4.2

Group Securities—
Fully Administered Fund

.

Sept.

2,783

4,799

Eaton & Howard Balanced Fund
General Investors Trust

,

Dec.

11.8

Dodge & Cox Fund

f

Sept.

-15

Commonwealth Investment

Loomis-Sayles

Total

Dec.

12.3

202
;

Other than Governments

-End of—

—

Sept.

3,737

Diversified Investment Fund

,

-End of—

1,891.

...

Broad Street

.

—

—

3,265

Science & Electronics

: Boston

End of—

"

Dec.

3,325

Axe-Houghton Fund A
Axe-Houghton Fund B
Axe-Houghton Stock Fund

.

Per Cent of Net Assets

Of this: Portfolio...

Portfolio Securities

"'

Thousands of Dollars

,

27

>

2,560

331,849

e6.4

e5.8

el.9

el.8

e91.6

e92.4

362,894

184,317

348,181

171,135

523,861

A

e6.4

e6.1

el2.2

ell.7

e81.3

e82.3

551,979

336,170

485,725

268,990

92.8

94.2

297

1,661

273

1,661

2,355
1,229

Closed-End! Companies:
:
•

Adams Express
AmerjeaiifcEuropean Securities—
American International

—'

Carriers &. General.

Lehman Corp.
r

•

,

-

—

26.3

16.2

65.2

78.2

1,727

4.8

0.9

1.0

91.6

94.2

201

1,960
1,435

9.8

7.6

9.7

7.9

3.5^9

8.4

5.1

1.6

1.6

*■

2,359

£9,190

7.8

f20.5

0.2

National Shares

6.3

1.9

0.5

Tri-Continental

S. & Foreign Securities—
Total Closed-End Companies..

Grand Total

—

^

TB&nds

f3.2

2.4

6.2

4J542
18,505

funds

in

86.0

90.9

91.6

§8.8

§68.5

§73.5

3,487

"Y.2

0.9

12.2

9.9

86.6

89.2

16,126

15.2

13.1

None

None

84.8

86.9

None

None

None

None

6.3

5.7

4.7

86.3

87.6

88,822

66,948

69,082

43,718

e6.2

el 1.3

el0.6

e82.2

e83.2

640,801

403,118

554,807

312,708

6.1

661,575

581,570

e6,5

classification.
ttCost

stocks only.
**Proceeds from sales.

tCommon

purchases.

of

of, ffrog8 ^sse*s$vEstlmated. sSOwnea

83 savings banks, etc. in New York State.
Corporation,
a Exclusive of corporate short-term

by

Minus




UHFormerly Pennroad
notes, b As of Sept.

f. Bolstered

temporarily by rights proceeds.

Average Allocation J>y 79* Companies of Assets to Cash and
Equivalent, Defensive Securities, and Risk Securities
Total

Net cash, etc., and

Unchanged
16

5

31

20

6

35

3

9

1

45

12

bonds

lower

79

Street)

not

incl.

and

6.5%

Dec. 31,1958

6.2%

(investment

preferreds)

11.3

10.6

82.2

83.2

Risk securities (common stocks plus

13

22

One William

Governments-

Defensive securities

9

(Lazard. Missiles-Jets, and

c

Sept. 30,1958

Approx.

~

All convertible (or with warrants). eNew funds in build-up
(Lazard. Missiles-Jets, and One William Street) not ineluded.

16, 1958.
stage

1,286'/
20,279

SUMMARY

30, 1958

10

build-up stage

997

89.7

2.4

Open-End Companies

♦New

1,127
1,286
12,471

5.8

57,709

Plus

—J

5,456
1,206
$$1,015
17,834

9.6

2.8

65,197

Dec. 31, 1958 vs. Sept.

Totals

97.7

96.1

90.6

6.0

—

Closed-End Companies

79.4

93.2

1

f8.2

Changes in Cash Position of 79* Investment Companies

Stock Funds

121

2,747
1,157
11,038
9,584

0.7

and preferreds irrespective of quality

Balanced Funds

263

1,000
5,057
13,568
21,499

502

2,747
al,158
12,181
20,930.
1,493
1,127

6.3

tincluding- corporate short-term notes where so included by reporting:
Investment company,
investment bonds and preferred stocks: Moody's
Aaa through Ba for bonds; Fitch's AAA through BB for preferreds (or

•pproximaie equivalents).

1.5

—

—"

1,000
a5,057
14,458
38,130
6,680
1,206
1,177
18,626

300

1,229

§7.8

191"

3,224
______

263

93.3

92.0

0.4

_______

Niagara Share.
Overseas-Securities.

84.5

90.0

0.1

5,142
f4,366
f2,941
3,428

1,540

—...

80.5

1,727
184

*

'

16,407

—

...

Madison FUndft#

; U.

0.5

5.6

7.5

'

.

5.2

3.5

5.8«2 *

:

General American Investors.
General Public Service—

6.7

2,982
1,773

-

-

;

5,074
1,051

6,376

-

0.6

grade bcfids and preferreds)

100.0%
*New

funds in

build-up stage (Lazard. Missiles-Jets, and One William

100.0%
Street) not incl.

The Commercial and Financial

(680)

Continued

few years will be a period of low
capital investment. However, huge
amounts
of
obsolete equipment
are
still in use.
A McGraw-Hill

from first page

Business and Stock Outlook

that

estimates

For the

our

Long-Term Investor

expenditures, which constitute

for 1957.

only two quarters from the peak

reached in the third quarter of
supported the recovery to date— 1957.
Personal consumption exnamely,
personal
consumption penditures of $291.5 billion in the
expenditures for non - durable third quarter of 1958 were $3.2
goods and services, high govern- billion above the previous record
ment expenditures, and home con- annual rate in the 1957 third quarOn top

of the forces which have

ctruction—we have yet to pile on

ter. Personal consumption expen-

expendi- ditures for services which are
tures for durable goods, a return equivalent to almost 40% of total
to
inventory accumulation, and, consumption expenditures, rose,
later on, a recovery in capital ex- without interruption, each succespenditures by business for. new sive quarter throughout the recesplant and equipment. Adding up sion.
These amounted to $112.5
these elements, the Gross National billion (annual rate) in the third
Product for 1959 should approxi- quarter of 1958, up $5.1 billion
mate $475 billion, and will prob- from the third quarter of 1957.
ably reach an annual rate of $490
Consumer outlays for non-durbillion by the fourth quarter of able goods declined in only one
1959.
We can look
forward
to quarter, the fourth quarter of 1957,
in

recovery

a

Pitting
in

consumer

$500 billion annual rate

a

and

increased

1958.

1960.
;

_

.,

Income

quarter

in

The third quarter rate was

billion

$142.9

,

lersonal

each

$140.5 billion

with

compared

productive than 1948 models.
Excess capacity is a temporary
condition that can change quickly.
While the boiler industry is currently operating at 63% of capacity, the rush of utility business
expected in late 1959 and early
i960 will exceed capacity.
Some

increase put the Federal Reserve
Board's Index 16 points above the
recession low of 126 in April, 1958,
only 3 points below the pre-recession peak of 145 in August, 1957,

.

tion

was

only 1 point below the

.

influence in the past two months,

however, was the drive forward
tories which played a key role in in production of durables, chiefly
triggering the recession has been automobiles.
*
■
tories

inven-

business

increased

November

in

at 4,108,000, an

far larger than the increase in unemployment because of the with-,

drawal of workers, such as older
people, from the labor force, illustrating the effect of pensions in
mitigating the impact of recessions.
recovery.
,
The lag in employment is typiThe December level of produc- cal of the early stages of recov-

The sharp liquidation of inven-

Total

December stood

increase of 275,000 over November. The drop in employment was

and only 4 points below the all
time high of 146 in December,
1956'. The sharpest drop in output in the postwar period has
been followed by the sharpest

.

Inventories

Thursday, February 5, 1959

.

1949=100), after a three point declined seasonally by 680,000 to
spurt in November. The December 63,973,000. Unemployment in mid-

industry
executives
are average of 143 for 1957, which
preparing for a sustained upturn was a record year. Notable charin the early 1960s. This means that acteristics of the present recovery
with several years needed to build are
the uninterrupted upward
a new plant installation, new extrend and the speed of the recovpansion must take place sooner ery experienced since the low
than is generally realized.
point was reached in April, 1958.
The growing needs of an in- In both the 1949 and 1954 recescreasing
population
(estimated sion there were periods of decline
increase over 30 million in the or saucering out, after the recovnext 10 years), the replacement of ery began.
obsolete equipment, and the neMost significantly, the recovery
cessity to offset rising wage costs lias broadened. Strength in conrequire a resumption of the up- sumer non-durables
production,
ward trend in capital expendi- which established an all-time rectures.
ord high in November, was the
- feature of the recovery. The major
_

.

Industrial Production the pre-recession rate of 4-4V2%.
point to 142 (1947In December, 1958, employment

1

paper

reversed.

earlier.

one year

old or less, yet the latest

10 years

1959 of "big ticket" items, as peopie have more money left over
after buying necessities.
Final demand (that is, total demand
excluding
inventory
changes) remained strong throughout the recession, declining for

.

metal working

machine tools are about 40% more

65%, business investment,
about 15%, and government purchases, about 20%
For 1958 as a
whole, Gross National Product is
estimated at $437 billion, down
Elightly
from
the
$440
billion

about

modernization
needs
only one-third of
equipment is

of

survey

.

of

Index
rose

Chronicle

Governmental Expenditures

.

.

cry, reflecting industry's success
in
improving
efficiency.
The
clearest evidence that employment must improve, is the lengthening work week; in November,
the work week was 39.9 hours, the
longest - since September,
1957.
This, combined with higher wage
rates has cushioned the impact of
unemployment on the economy,.

Factory worker's earnings are at
record levels.
with

three

$78.41

An average worker
took
home

children

week

per

in

November

compared with $77.43 in Septem-

ber, the previous high. In terms
0f buying power, this was an increase
of
more
than
1.9%, to
122.5%
This

the

of

was

a

1947-49

average.

increase

sharp

from

the 116% in April, when the first

.

a

Durable goods purchases are the

$360 billion
in November, 1958, The November
rate was $2.5 billion higher than

only part of consumer outlays
which are below the peak reached
in 1957, the decline arising chiefly from a reduction in automobile purchases. However, expenditure on consumer durable goods
is rising rapidly and conditions

of $84.9 billion at the end of Oc-

eral,

tober, to $85.1 billion at tho end
of November.
Although this is
only a moderate increase, it is a
significant milestone in the pres^ent recovery, for it represents the
first month since September, 1957
in which business

of

began
to
funnel
more
into workers' pockets.

money

from

recovery

the

re-

been instrumental in maintaining
consumer income and spending at

favor

effects

cession

.

;•

,

income

Personal

climbed

to

record annual rate of

October, and $9.8 billion above the
$350.2 billion in November, 1957.
iSignificantly, the entire $2.5 billion gain in the personal income
rate

in

higher

November

from

came

continuation

a

of

this

from

rise

a

seasonally

adjusted

as

total

whole

a

re-

salary payments, throughout the year.
ported
a
net
accumulation
of
This
rise
primarily
reflected
Estimates by economists place stocks rather than further liquidaEtepped-up production in several 1959 consumer disposable income, tion. The increase of $200 million
durable goods and industries, par- after taxes, at from $14 billion to in inventories
(on a seasonally
ticularly the auto industry, metals $20 billion above 1958.
Further adjusted basis) occurred wholly
and machinery segments of the recovery in the economy in 1959 in the retail sector and was ceneconomy,
which previously had should carry retail sales at least tered in the stocks of automobile
lagged. In December, personal in- 5% above 1958.
dealers.
''-Vwv '
wage and

fn»Ldarn°Sd^ightly l° $359'3
billion annual rate.
For the full year

1958, it is
'

uu

i

than $5 billion over 1957.
el income
an

now

Person-

is probably close to

rate of $365

annual

billion,

or

$1 billion a day. For the full year
1959,
personal
income
should
reach $375 billion..
Governmental

instrumental

in

action

has

been

sparking the

re-

inventories

outlook for plant
f>vnr>nrlitiir^c
in

and

1Q5Q

Survey
of
Business
estimates
spending for the first quarter of
1959 at an annual rate of $30.5
billion. This is but a moderate
gam over the figure of
$29.9^ bilRon for the final quarter of 1958.

for
rr»

the

•

unchanged
straight month,

•

r^hG

.

_

abje time, and with consumption
increasing, inventories tend to de-

cijne further.

The

rate

inven-

of

tory accumulation will accelerate
as

the year progresses, and by the

fourth

quarter

will

probably

rate since 1951.
sales,

the

on

other hand, have been moving up
CreaSe. j"personal income which ^cord rateta
steadily since April, 1958 and
occurred between November 1957
than its magnitud?fo? it Micates climbed
million in both Ocend
November
1958
increased
££ very sharp drop in capital tober and November, 1958, to a
-dl®bu!:sen?:ents exnenditures that heJnn latl in seasonally adjusted total of $27.6
end
transfer Davmenk
expenditures that began late in
local oi^/.o
rate in

HirPf.tinn

?g95^0™^rjef^'°"

.

as

1957 is

IsTbUlion

ms iUustStes how
ifell"huM-tn"ItaWlilVrx nner
!"
SUhUlzers opel

©ted to cushion the

over.

earliest.

.

.«.

Retail Sales

r

new

orders
oiuers
.

for inlor in

,,

was

This

rtorp\alp^

145% of the 1947-49 average,

eight percentage points

was

liieher

dex

denartment

than

and

©rove
©bove

thp

reven

the
me
,

nercentaee

figure
ngure
,

..

9

i?iiifnJ i*I

Novpmhpr

for
lor

,

J.,

iq?l to Sp
1953 fi more

in
m

.

Kt,

^

ooonxr

t?

li

po

i

'
,

$8

n-ir°n
billion

^foowiuJf ®xP.eiJdlture °f
*+

.x

R-

5

"km

0

ers.

■=';

A.-.--"

•

Corporate Profits '

^

expenditures

Federal
1959

in

fiscal

budgeted at $94.1 billion,
approximately $10.8 billion more
are

of $13.2 billion,TVOxoffar the largest
by rxC
nonWimn

The government deficit is being

'

^he

jn

wbpn

"J °u
dropped to
billion

they

estimates

as

it was in stemming

in

surged

1958

of

was

in

the'

nre

tax

corporations

s

annual rate of $31.7
second
quarter,
^
'

the

around

to

rose

Oct.

Effective

an

In

Xl1

Profits

earlier.

quarter

ppnnomv

nf enntrartinn

finni

financed by an expansion of bank
credit.
In the 12 months ending

29, 1958 bank credit expanded
more than $10
billion or nearly
8%, although business activity was
roughly
the
same
as
a
year

fjrst

thf»

$38

fourth

the

sharply.

upward

billion,
quarter

Some

the annual rate at
around $45 billion. Thus, current
put

running at a rate
high of $45.5
billion registered in 1956.

earnings

are

close to the previous

All signs point to higher eorpor-

the recession, the resulting mass- ate profits in 1959. The U. S.
ive budgetary deficit and the ex- Treasury, in revealing its plans
pectation of continued deficits for balancing the budget, esti.

raised widespread fears of
nave raisea wi

have

corporate profits this
will be between $47 and $48

mates
year

that

n..

_

ered, in contrast to last

year

the" trend "was"downward?
t,

.

,

'

.

when

industry for

pension.
in the

,

in

•

a

neriods

Only

a

of

business

„

ex—

few of the items

Consumer Price Index

are

last

uni:

the'

year;

At any

rate, all indications point to a new
record level 'of corporate-profits

.

BH?In?ss outlays for inventory lower-priced now than they /were in 1959.
constitute one of the most volatile, a year ago. The Consumer Price
types of spending

4.ck

quarter of

in the economy.

Index increased almost 8% from

■

.

r.

Kev industries'

Trends in Key inaustries

t

,

'f

.

shift from inventory accumii- the winter of l956 to August, 1958. ^ SteeI Indust^: ^eel produfction
lation at thcannual rate 0£$1.3 The Index then remained un- hib a 15-month high in the sec-

billion in the third quarter of 1957 changed for three months. How- ond -week-of- January, and is
to licluidation at a $9.3 billion ever, the uptrend was resumed by scheduled to rise further: So far,

annual rate in the first quarter of
1958

accounted

for

slightly

an

increase of 0.2% in November, the greater part of the improvement can be traced to the end of

more

Employment

hand-to-mouth
buying, particuEmployment has not kept pace larly by the automobile industry,
with the recovery in business ac- and the faster tempo of industrial
tivity. In some sectors, notably activity. Industry spokesmen extory accumulation, which now ap- manufacturing, mining, and trans- pect further increases, in steel depears imminent, could require an portation industries, the improve- mand, accelerating Ae recovery
increase of more than 5% in the ment in employment is only about which got underway during the

centage points in the FRB Index manufacturing, hai'dest hit by the expansion of ingot-making facilslump, the employment recovery ities -scheduled this year.
Steel
'
has been only about 30%. Over- buying should increase steadily in
^ J
f! nm
Industrial Production
all, the seasonally adjusted unem- the first half of 1959, as users
uUi?
v.1! no
ya?„on.
.
Industrial production has re- ployment rate in November was build up inventories in anticipaRi R
aSe 1S
^ome forecasters contend that covered sharply from the reces- 5.9%, a 10-month low. It was, tion of a steel strike in July creati«
coasun?" because industrial capacity is ade- sion low in April, 1958. In however, still substantially above ing a steel shortage. Even if there
as
Drisker sales
in
quate for the present, the next
December, the Federal Reserve the year-ago level of 4.9%, and is no steel strike, users anticipate

i^r,T

Tfnn

aimnct

b^AUCyCessJXe R

•vf^vxi^

in

.

than

niirmnt

mnrp

The better machines and than half of the $20 billion decesses resulting from research cline (in annual rate) of the Gross
Pf3 n 9r rePlace- National Product in the same
+2 remam competi- period. A resumption of inven-

♦1 K~n' inSo^frona
at1S

made

ricfnS^+p«nW ^

,

wr1 T*'
3 01?

wxrvrho

high

„

ia

I,
f

of one-half iU deeW from

the pre-recession
January, 1957.

m November P

wir

r\

December
December,

.

coverv

in-

ooints

\

has

Corporate profits are the brightest spot in the generally favorhigh rates, and providing the base able outlook for business over the
for an expanding economy over next 12 months. Business is benethe next 12 months. The $3.3 bil- fiting from recession cost-cutting
lion increase in Federal expendi- and the huge postwar capital intures in fiscal 1958, was matched vestment program. Sales are risby the rise in State and local gov- ing more rapidly than costs. Thus,
ernment purchases.
In the last profits are increasing, not only
five years, State and local govern- because of rising sales, but more
ment spending has increased about importantly,
because
of
rising
$3 billion each year.
profit margins,

nrtppo

purchasing power at a capital expenditures) has gained
fieak rate, retail sales advanced for seven successive months.
In
to a new high in 1958. In Decern- November
1958 this index was
fcer, the FRB seasonally adjusted 189% of the July 1948 base, a re-of

levels

bdbon* D"rable foods sales' heFe: tuture mflation.

,

With

dndex

local

1957 to 15 in Novem- cession than at the preceding to ;$50 billion Our consulUng
ber, 1958. The decline m inven- peak. jf a recession fails to halt economist projects a minimum of
tory-s?les ratios appears even a rising price ,evel there is all $52 billion pre-tax profits in 1959,
fnvorahln wViPn thp
suppliesandmachiner^ m0re fa™rabJe.whe" the current the more reason to expect rising hitting a $55 billion rate in the
1
upward tiend in sales is consid—

The index U1
111L ,,,UCA of
/

;

State^^and

Fed-

on

be *eachcd until mid-1959 at the

drop,

dustrial

j

The reversal of the

Government spending,

wholesale than in the preceding year This
w°uld produce a budgetary deficit

and

remained

second

•

xais approximates the same aver- reach the highest
lied during
Manufacturers

Of the $9.8 biihon^ in- rGpo;fl

covery._

Manufacturing

Capital Expenditures
I

T^e

es-

1.1-.u

.




u

hnS

_

...

*

An

expenditure of $8^Tly t0
technical advances

of Industrial Production.
_

.

.

„

.

Volume

189

Number

5818

.

.

.

The Commercial and Financial Chronicle

(681)

29
^

another

increase in wages and in

steel prices.

Industry:

The

na¬

tion's auto producers v. quickened
their

production

current

million

tons

witnessed

*

Automobile

last fall and

pace

indications

are

the

that

in

1956.

The

liquidation

earlier,,

that

tion

,

Reserve

Federal

1958 market is unlikely.
may need
to go through a period of consoli¬

index of production for paper and
allied products hit a new record
of

substantial

re¬

from 1958, when 4,241,000

covery

1958 production and 2% above the
previous record set in 1956.,

Current

liquidation,debt

in¬

consumer

November

in

rose

for the second consecutive

month,

reflecting higher automobile sales.
Radical styling innovations have
evoked

With

enthusiasm.

considerable

debt at

consumer

histor¬

an

ically

low relation to disposable
income and high liquid savings,:
consumers are now in a position
to make important durable goods
purchases which -were deferred
while

the

outlook

business

uncertain.

was

Petroleum

1958,

was

Industry:

The

year

period of adjustment

a

for the American Oil

Industry. It
period of adjustment caused

was a

primarily by the over-stimulation
of U. S. and Western Hemisphere
production in late 1956, and early
1957, during the Suez Canal clos¬
ing. In addition, operations were
adversely affected by the reces¬
sion

in

the

first

half of 1958, so
:;;/,
.•,; that
growth of demand did not
construction ,
materialize to the extent that had

;/J

.

Construction:

The

boom that began after World War
II shows no sign of abating. Hous¬

ing starts jumped to an adjusted
annual rate of 1,430,000 in De¬
cember, up 100,000 from the No¬
vember rate and highest month on

been

In 1958, domestic
demand rose only 1.5% and total
demand, including exports, is es¬
expected.

timated
the

to

first

have

declined

since

drop

1.66%,

1946.'

Top oil men are predicting that
except for that in Decem¬ the
industry will resume its his*/
ber, 1954. Total housing starts for. toric growth raie in
1959, that do¬
all 1958 were 1.2 million, highest
mestic demand for petroleum will
since the record 1,328,000 in 1955.
be
3-5% higher this year, and
Significantly,
housing
starts that
consumption in other freelagged as 1958 opened, but gained world countries will rise
by about

record

momentum

the year progressed,

as

and appear

to be headed for new
records in 1959, probably reaching
a peak in mid-year, and declining

slightly in the last half of the year
if money becombs tighter.
: The
Department of Commerce
estimates that spending for new
construction

would

1959

record $52.3

a

would be

7 % increase above the

a

$48.8 billion spent in 1958, also

a

record.

believe

economists

Many

that

the sustained rate of construction

helped
the

cushion the

to

recession.

impact of
is why the

That

the

end

of

1958, the indus¬
try's statistical position was much
improved. Inventories of the four

F. W. Dodge,
often

the

on

forecasts

economy.

rise of 3%

a

in contract

awards in

1959, over 1958. Even
encouraging,
the
largest
increase is expected to occur in
contracts for new factory build¬
more

ings, indicating resumption in the
growth of capital expenditures.

substantially
earlier.

lower

than

a

; Electrical

,

23 times current earnings.
These

For

1959, physical operations
and prices are expected to show
greater stability than in 1958. The
outlook

dustry

the

for

natural

gas

in¬

earnings

Manufacturers. Associate on

looks

for

7%

about

sales

1959

All sectors of the in¬

above 1958.

believe

will

1959.

.;.

ural

corporate profits should

gas

in 1959.

occur

yield
first

Key business indicators surged
upward as 1958 closed, continuing
the
strong
recovery
from
the
slump which began late in 1957.
Despite the substantial progress to

pected

in

increases

months

cycles.

the' past

24 recorded
shortest Z expansion

The

10

was

in

months

dence

to

which

years

a

across

building boom is stimulat¬
in appliance business
a
wide front — laundry

surge

dish

equipment,

washers,

,

and

built-in ranges.

set

a

nation's

45

10 with

ended Jan.

output

the

an

8.4%

months,

lasted

36

gain

Rising consumption of electricity
implies continued growth for the

equipment producers.
The paper

in¬

dustry showed a good example of
strength in the face of adversity
in

1958.

Due

recovery

1958,

in

to

the

a

fairly

second

strong

half

the industry registered

of its better

of
one

performances in pro¬
Output of 30.7

duction and sales.
million

only

tons

in

1958

to the record

that

and

look

can

was

second

high of 31.4




con¬

of

On

rightfully
so,
of
depression like
factor

of

quality

capital

set

in

1960,
'

and

(1)

gree of

annual

current

Of course,

the

is

our

belief

the

first

bull

over

long-

as

Because

com¬

they
over

There is increasing

recognition of the long-term
growth potential of our econ¬
omy based on growing popu¬
lation and increasing produc¬
tivity. Common stocks have a
built-in growth factor. When

that
year

1958

of

new

and

economy's growth. New highs in
the economy projected for 1959
and 1960, should lead to materially
higher
stock
prices
over
the
longer term.
Last year, was unusual in that

of

ance

gain, and the greater the
gain. This is based on
possibilities in com¬

H.

retain and plow
of their earnings to
they
their future earning

their expansion,

Ostrander

Elmer

versity Club of Chicago
day, Feb. 19, 1959.

G.

Hassman

on

Thurs¬

Cocktails will be served at 6:00
p.m.

dinner

growth

stocks

and
the
policy of
companies of ploughing
back
a
large part of earnings.
Furthermore,
earnings
retained
by the company avoid entirely the

mon

growth

the

earnings

be subject if
paid out in div¬

were

idends.

(2) After-tax rate of return on
is higher for long-term
capital gains than for ordinary in¬
come.
Long-term capital gains
are gains on stocks held over six
months.
Long-term capital gains
have a big tax
advantage over
ordinary income. If your top tax'
capital

bracket

is

under

capital gains
the

of

If

50%, long-term
taxed at one-half

are

rates

your

over,

on ordinary income.
top tax backet is 50%
long-term capital gains

taxed

at

which

a

maximum

may

one-half the

be

rate

much

rate

of

of

less

tax

on

ordinary income.
second

principle has to do

investment programming.

is based

It

in College Hall, followed by
at 7:15 p.m. at Cathedral

Hall;
The

Nominating Committee, An¬
Baird, A. G. Becker &
Co., Incorporated, Chairman; Paul
L. Mullaney,
Mullaney, Wells &
Company; Richard W. Simmons,
drew

M.

Blunt

Ellis & Simmons, has pro¬
posed the following officers and
directors for the coming year:

President — Lee H.
William Blair & Co.

Secretary—Elmer

Ostrander,

G.

Hassman,

A. G. Becker & Co.,

Incorporated.
Treasurer—Charles F. Glore, Jr.,

Glore, Forgan & Co.
-For directors, the above and:
Newell Childs, C. F. Childs &
Co.; Fred W. Fairman, Bache &
Co.; Homer P. Hargrave, Merrill
Lynch, Pierce, Fenner & Smith,
Inc.; Robert I. Kelley, Harriman
Ripley & Co. Incorporated; H.
Gerald Nordberg, Dean Witter &
Co.; George R. Torrey, McCormick

F.

& Co.

The Club will furnish facilities
those wishing to play cards

for

after dinner.

of the most

Reservations
should
be
made
impor¬
concepts
in
investment, with George R. Torrey, McCor¬
namely, the probability of the mick & Co.
on one

tant

continued
stock

long-term

prices, based

uptrend

in

growth of
the economy and creeping infla¬
tion.
Thus, common stocks are a
better long-term investment than
on

fixed

NASD District No. 1

Elects Officers

income securities, and ac¬
SEATTLE, Wash.—Robert E.
cordingly,
individual
investors
who accept the long-term view, Daniel, Executive Vice-President,
Pacific Northwest Co., Seattle, was
should devote the bulk of their

capital

to

common

ment.

stock

invest¬

elected Chairman of District Com-

,

The third important investment

principle
ment

has

to

do

to

with

invest¬

timing.
The
non-profes¬
investor should stay fully

guess

time, and not try
cycles so as to
declines.
(A

market

side-stepmarket

potential.

corollary of this is that the

Common stocks offer protec-

-

professional investor should never
go short.) This is in harmony with
the previously stated concept of
the long-term uptrend of stock
prices. If you are bullish and stay
fully invested, the odds are all in
Robert E. Daniel
Harold L. Temple
your
favor, since stocks go up
over 75% of the time and they go
mittee No. 1 of the NASD.
He1
up more than they go down.
The
investor should "belong to what succeeds Samuel S. Whittemore of4
I call
"The Sitting Bull Club." Pacific Northwest, Spokane. Har-,
L. Temple,
Vice-President,
With this philosophy, you expect old
to ride through
market correc¬ Campbell & Robbins, Inc., Port-1
tions, knowing that they are tem¬ land, Ore., was elected Vice-Chair-

(b)

tection

against

inflation

by

providing the opportunity to
obtain more dollars of capital
and

income

purchasing

to

offset

loss

of

of the dol¬
lar. Investors are beginning
to realize the probability of
creeping
in

our

main

iDower

inflation

economy,

continuing

based

on

two

causes:

(1) The wage-price spiral with
annual increases in wage rates in
excess

of increases in

productivity.

(2) Chronic deficit financing by
Government.

Federal
welfare

Federal

With

expenditures

and

spending, the

Government

generally
Furthermore,
this deficit is usually financed by
the
banks
and, therefore, ulti¬
mately adds to the money supply.
To

term,

at

a

deficit.

a

summarize

there

common

be

Lee

the

invested all the

runs

a

re¬

should be way
the period, the greater the assur¬

sional

the need for defense

wit¬

income

any one year
suffer deprecia¬

period of years he
ahead. The longer

back part

•;

a

in

can

over a

companies

even

that the longterm trend of stock prices con¬
tinues firmly upward. Temporary
corrections
probable - in
1959,
should provide favorable oppor¬
tunities
to
purchase shares
in
companies in the vanguard of our
market,

securities

company.

the

nessed

It

stocks

common

stock offers par¬
ticipation in the growth of the

all-

Outlook

investor

than

(a) A common

to

on

annual price
period of
exceed
by many

turn.

stocks

fixed income senior securities:

add

return

average

times

are

the
is the

of corporations,
big advantages

finance

of

over

another

.

Market

risk,

The

two

rate

appreciation
years
should

25%,

investments.

social
Stock

Pre-tax

should
be
higher from
capital gains, than from ordinary
income, because for the same de¬

1929-32.

stocks constitute the residual

mon

confi¬

perhaps

in¬

current

capital

improving

common

income

fixed

basis

new

than

taxes.

or

Growing realization of the

(2)

1960, each of

should

growth

CHICAGO, 111.—The 48th An¬
Meeting of the Bond Club of
Chicago will be held at the Uni-

nual

simply because the investor
make
more
money
by so
doing.
He can make more before
taxes, and he can keep more after

with

average duration,

and

do

can

accruals.

1954-57

the

time records in the economy.
We
do not expect the peak in eco¬
nomic activity to be reached until
late

fluctua¬

large cash flow from depreciation

lasted

forward with

1959

business

have

Another

20 months.

1949-53

months.

of the 30-month

week

over a year ago.

Paper Industry:

over

expansion of

electricity

in

record

new

in electric

of

use

>

investment medium.

an

as

to

and

1921, and only
20 months. Thus,

19 out of 24 lasted

later.
The

for this:

business recessions. We will

in

2% increase.
Z The

reasons

supported by the relative
mildness
of the
three
postwar

consumer

expansion phase of the business
cycle has lasted ah average of 30

to

lower

and

they did in the
decade. There are

This is

spending, residential construction,
and
inventory accumulation.

we

ing

higher

a

(1) Growing realization of the
improved
quality
of
common

date, the business recovery is still
young.
Further growth in 1959
seems
assured, because of ex¬

The

.

ratio

postwar

several

on

com¬

than

basis

have

Summary of Business Outlook

has

stockholders would

expect

we

sell

to

price-earnings

ownership

apparatus, should increase 7%,
wire and cable, 8%, and electrical
generation, transmission and dis¬
tributing equipment, "hard' Kit by
the recession last year, look for a
.

stocks

term

Higher oil and nat¬

principle

amount of income taxes to which

y

-In the future,
mon

expecta*again in

same

realized

be

the

5 lasted less than

.

in¬

higher earnings

these

that

tions

superiority of

industry.

first

Chicago Bond Club
48th Annual Meeting

amount of

vastly improved by a
Memphis Decision
by the Supreme Court in favor of

dustry are expected to participate
in the improvement.
Industrial

,

because

occurred

Again, in 1958, investors were
willing to pay high multiples of
current earnings in the belief that
new profit records lie ahead,
We

Economic Research show that the

pects to stage a strong comeback
during 1859. The National Elec¬

of

levels ahead.

was

reversal of the

trical manufacturing industry ex¬

trical

The

tion, but

evaluations

vestors forecasted

Studies of the National Bureau of

Industry:

liberal

serious

The ^elec¬

1

At the present

the Dow-Jones Industrial
Average is selling at about 19
times earnings of the past year,
but at only about 16 times earn¬
ings estimated for 1959. Looking
back to 1935, when our economy
was recovering from the
depres¬
sion, stocks sold at 18—21 times
current earnings. In 1938, follow¬
ing a recession, stocks sold at 20-

tinue

year

emphasize
principles of invest¬
/

basic

policy.

with investment objectives. I be¬
lieve
it is ^better
to emphasize

tions, but investors have less fear,

products, gasoline, kero¬
distillate, and residual fuels

a

whose figures are
conservative side,

few

a

ment

time,

major
were

encouraging, for it indicates that
major support of the

ratios,

sene,

projection for 1959 is particularly
construction will continue to be

periods.

recovery

stocks

At

cross

for the first time, to
billion. That

$50 billion
reach

in

8%.

price-earnings

contrary to popular belief, are not
high when compared with similar

This would be 4% above estimated

longed

stalment

Policy

I should next like to

come,

(1947-49=100) in October
1958
(topping the pre-recession
August, 1957 peak of 163.
The
Department of Commerce predicts

mand has accumulated. After pro¬

expect the market

dation sometime in 1959.

170

that
production J of
paper
and
paperboard in 1959 will climb to
a
new
high of 32 million tons.

lowest

year's

We

Board's

produced, the
production
since
1949.
Since last year's production only
just about equaled the scrappage
rate, a backlog of deferred de¬
passenger cars were

Average. While
economic, background
excellent, a repetition of the

is

Investment

re¬

by the Dow-

one-way

nevertheless

a

substantial

no

measured

as

Industrial

this

industry is headed for the mild
prosperity of a 5.5 million to 6.0
million-car year in 1959. This will
be

Jones

the

by consumers.
The

were

actions

supply posi¬
favors increased buying

so

now

there

year

good deal of inventory
in contrast to a year

a

over

is

stocks

no

will

the

doubt

longthat

continue

non¬

and most important, you
perspective and take
advantage of market sell-offs as
long-term buying opportunities
for
any
new
money
available.
porary,

keep

your

Likewise, the investor should not
when stock prices ad¬
into new high territory, as
a new peak in the market should
be considered merely as another
milestone in the long-term up¬
be fearful

vance

ward

trend, reflecting a growing
and creeping inflation.

economy

superior investment to fixed

relative to fixed income securities

district

comprises the"
Montana, North
Dakota,
Oregon,
South
Dakota
and Washington.
-<
Eugene R. Gibson, with the
NASD office in Seattle, is Secre¬
States

of

Idaho,

tary of the District.
has

tion

Until

reclassified

The Associa¬
its

districts.

the

change, Idaho, Oregon
and Washington were Dist. No. 1.

Columbine Adds
(Special to The Financial Chronicle)

to

income securities. The increasing
attractiveness of common stocks

The

man.

Joins First Southern
(Special to Thb Financial Chronicle)

DENVER,

Colo. —Ronald Ber-

toncel, William G. Cox, Jessie A.
Morrison, Paul D. Sybrant and

ATLANTA, Ga. — William J. Joseph Ullmer have been added
stocks Arnold Jr. has joined the staff of to the staff of Columbine Securi¬
price-earnings First Southern Corporation,
70 ties Corporation, 621 Seventeenth
ratio and lower yield basis.
Fairlie Street, Northwest.
Street.

will tend to make
sell

on

a

higher

common

The Commercial and Financial Chronicle

(682)

30

.

.

Thursday, February 5, 1959

.

hardly given away. Real progress would entail a greater - solete, and you'll be like the man
output of goods and services other than
sufficiently great to offset a very; substantial decline inyou end up,-doing is/introducing
farm output. And, of course, it is evident enough to all
a product that does something-its
who are familiar with what is going on in Washington /.predecessor could not do, or does,

Continued from first page

Va^So'that:

farm^ products--,

We It
See

As
to current

discussion. Yet intelligent and meaningful dis¬

that

a very substantial part of our. annual Gross National
Product consists of salary payments for services which are

cussion would appear to depend upon clearing up this

preliminary conceptual ground.

really not needed.

The Essential Components
The statistic

_

tional Product stated in "constant dollars."

.

If

these in the

as

That is to say

Russia has

the

cause

j

_t

Russia

commonly used to measure "the
economy" and its growth is what is known as Gross Na¬
most

introducing significant and helptul improvements and innovations
at the appropriate time from the
standpoint of the-benefits to the

v

'

'

cx

"... • -'.V

i

•

United States

vs.

-

not

yet encountered such difficulties.;^.™^
degree that we have. it is. simply be- • Movements

same

need

•

•
.

andiiqtone^■

aSd' tnLvatos6 will-

is
so
great there for so many different'. ad(j up over the years to a rather *
types of goods and services that the people are grateful ^startling change over the compafor any sort of favor.
Discretionary spending opThe^porr ' ^ r^!^^d^tfq^fO years ago.-.; *•

the total annual output

of all goods and services at market
value adjusted to eliminate changes in costs and prices.
It is this figure^ t^t^Hask of late been much employed by
political critics of the Administration, and by some others,
who have applied it to a number of recent years and come

;

tunity for Tt

with the 2% figure which suited Mr. Khrushchev's
A moment of reflection will make it
figure is made up of two components,
productive capacity and the rate at which that capacity is
utilized in any particular time period. Now, in any free
society, the rate^;^f^utiUzStioh of capacity is constantly
varying, sometimes more fully utilized and sometimes less
fully so. These ups and downs of business are what have
now become formalized as "business cycles."
up

purposes so well.
clear that such a

An

obvious

corollary is that the rate of change in
Gross National Product over short periods of time should
not be confused with "growth." Another is that growth
as thus defined has never been anywhere near constant
from year to year in any free country. The long-term
growth rate is to*be found—if it is to be found at all by
employment of such a figure—by ignoring these shortterm waves of activity, and measuring the upward trend
.over long stretches of time. It is fairly well agreed among
those who have made special studies of the question that
3% reasonably well represents the growth in total pro¬
duction on the average for as long a period as statistics are
available for measuring it.

But there

are a

number of time

our

total

output of goods and services "in real terms" rose at a
to make even Mr. Khrushchev gasp and stare, and
some of these
periods have lasted more than a year or
pace

"

two. There have been

numerous

other intervals when

we

actually lost ground—that is when we have produced
•less each year for a number of
years, when our rate of
growth, according to current modes of measuring it, was
negative. Again, rate of growth of productive output when
measured

in

rently said

Other

praisal. Since the statistic Gross
itself
the

subject are of even
understanding and ap¬
National Product conlcerns

only with production reflected

in

the

markets

of

country—omitting or ignoring all those things one
figures as published do not include

does for oneself—the

all the production of
goods and services, and the amount
of such production not
included

probably has increased
substantially with the do-it-yourself developments of late

It is also quite possible for this
figure to increase
when there has been no
increase in total production. But
such technical matters as these
are far less
important than
the question of what is
being produced. A

years.

very

large total

output of goods and services would have
very little mean¬
ing unless the goods and services are the
things wanted
or needed in the
circumstances. Even
much

of

their

significance if it

things which have little
,

it is

or

no

is

capacity figures lose
capacity to produce

value.

no one suppose that this stricture is academic. If
only a rapid rise in Gross National

the next

seven

Produpf" during

that is wanted, the quickest and the
surest
way of accomplishing might well be to
grant large
subsidies to our farmers to
produce all sorts of products
on

their farms.

risen

years

Our

enormously in

capacity to produce such goods has

recent years. There can be little
output could be drastically increased almost at
once. But to what
purpose? The current figure for Gross
National Product
already includes output of vast quanti¬
doubt that

ties of farm products which




can

not be

sold, and indeed

the?

econoihiclpictupel "The' best

:^ent^lei;-ii&pause^
means or

mean-and'to;c2tivate: ■!'•

should

on

from

lmmeasuraoie

man-hours,

5

page

and

:

amounxs... or;

and

money,

^competitive r position before

lost
; you

So it f

2*'jV is,with research.y. v > vv ' ■•'i-y'K-ii' '• >r! t?t -tV

*

k'/'

Only [;10%

;

•

*•

Materializes

v

•

[projects c:
The pay- >
^

climb

to

then

ever

it

as

^

passed

is

the 11900^

......

-

times progress, not prog-

progress

plus progress. '

In

the

\

1920's, there

ably 75

>

labora¬

tories at the most, but today more
than 4,000 companies throughout
the

country

—

have

„

search

more

their

own

their

of

That's

personnel

Rate

research

of

like

you

to

as

com-

to

hazard

a

enormous

and

development "effort
Industry's own research and
development work costs at least
of

little less than 2%

a

Gross

our

1953
to

per

National

billion

of

But

how

long

Product,

because

it

is

the rate of at least

increasing

10%

of that

Gross

it

take

develop

refinement

.here
and.. there,
major N improvement;

mean

^

as

power

at

in the

it

case

may

other,
seems

be

of

one

12

case.of

"

If

I

/:

There have

^
where everyone

land

:

ever-.
does

:

he pleases and takes off on the

prison

where

,

:

indepen-

is inhibited and
everything sharply directionalThe practical .answer lies m
between, and finding that answer
!

ki

!

,

,
^

•

.management;

♦

available. io;, you.,

-or

an-

(>,

.

industry with the largest!,
expenditures for research and de-"
velopment is the electrical indus.The

try, which spends more than $200

"

\

*

d?nt- thought

Research Takes Time

million of its

ly, Plus

planning .a new research project, however, I would
ignore that 10-year span. The im,

direction.

of

tellectual

but' the average, always
to work out to about 10.
;

.

tangent which may intrigue him.
Nor can the laboratory be an in-

I

years

development

in.the

a year.

$8 billion for indus¬

as

or

The actual time

eight

re..

.

laboratoiy cannot

the electric refrigerator, or the
or

sense

never

basically new—
steering, or tele-

seven

.

.

a

or the heat pump, or electroluminescent lighting, or dacron,

be

..

^een exceptions, of course, but a

vision,
or

flat-

or

April.

productive

,

-

something

such

and

,

at the market place is 10
"
am. not talking about a

a

vaccine

cancer

Effective

of some, new project in the
laboratory to the time that a new
substantially improved product

even

a

searcha
ir'? ,! ?
to. identify ana hardto
1\e'
?Tn ^x ,eip ^
klend
a d

tion

I

programs or in

wall television by next

time lag from the initia-

average

military

to

tangible
benefit; from
reThe ,g e n e r a-:l, opinion
throughout industry is that the

It has been estimated that about

95%

1953

does

fluorescent lamp.

or

more

$40 billion

the

certain

.relatively narrow product areas
*jut you can t older a man to sit
dow" at a laboratory table and

to

get

lag may

university projects. Based
past experience, in 10 yeafs
will cost twice that much, or
least $14 billion, and probably

at

m

■

the

1928

search?

and that does not include govern-

it

■

that

from

do*

an-

National Product of $365 billion.

ment
on

and

year,

conducted

contributed from

$80

years.

costs?

or

return

or

Research

this

what

200%'

to

■

2.1%

of

appears

Increasing
Would

that

where

"progress times progress" is
ing from.

guess

re¬
—

personnel

than 500,000, and more

100,000
scientists.

are

their

facilities;

oil. it# a 100%/'

research

prob¬

were

industrial

100

or

percentage that
1 wo.uld hazarti. a guess that,
nually.vInV relation to our GrosS'as muc|*aj 90%^;oTtny company s ,
National Product* the Foundation J'csearch ideas doni .paiy out, but >
estimates that research has pxob- '^at remanpng 10/^ justifies the ,
ably contributed at least .5% and entire cost, and many times over.;
more
likely 1% or more of the Patting research on a trrash-prolong-term productivity increase grani-basis -:{uay work ^sometimes
,

slightly,

so

mark, it would turn upward some
more,
and by • 1957, the curve
would be shooting ahead almost
vertically. Today, progress is moving ahead "exponentially"; it is

$8 billion

aspects of this general
greater need of more thorough

catiorifor atrJthe slightest;dip in

:

get the mill running again.

than

Production of Itself Not the Answer

:.*;

.

'"■*

base

percentage is computed is much smaller
than it will be in later
years when much larger actual
amounts of growth are
required even to hold the per¬
centage figures constant. Straining now on our part—and
.quite possibly on Mr. Khrushchev's part—to attain an
abnormally high rate of advance during the next several
years could very well be followed
inevitably by a period
of years in which
progress was very much retarded.

,

x

total

which the

;

•.

cost

Continued

terms of
percentages is very likely to be
greater in the earlier years of industrialization when the
on

;.t

economy"

ress

have

•;

'

•

wholesome

a

and

periods when

areas.

In any
of the

begin

The Pendulum Constantly Varies

c

other

were

own

money

annual-

another $600 million

of

;
t

throughs, and that the remainder
goes into digging out new knowledge, new fundamental information,
upon
which
the
breakthroughs of the future will be

government - sponsored projects
which are almost entirely in Na- '.
portant thing to bear in mind is tional
Defense.- " The industrynot some average, but rather that. sponsored
projects are $prea,d
research takes time.
From. the.across a range of products that is.
standpoint of management, that ni°t even closely rivalled by any means you have to adopt what I other.- But I must make due al--

based.

would

try

as

ing

whole

a

into exploit¬

goes

previous

scientific

r

break-

.

The

95%

led

to

the

anti-

biotics, radar, television, the computer, and so on. And the 5% was
directed
toward
exploring such
broad
areas
as
the
atom,
the'
forces of the universe, and the
various
tire

fundamentals of that

process

which

we

en-

call

so

simply "life."
Is there
ure

more

benefits

seTrch?

anv

all
.

wav

we

tangibly the
of

What

us

set

investment

meas-

enormous

from

re-

do^society

back, in dollars and
its

can

in

cents,

from

research—why

spend millions of dollars

research

and

development?

National Science Foundation

on

like

to

call

lowance. for

reasonable

a

my

-

prejudice,

and1

degree of impatience
and re- ^3ve due recognition to tne avia-duce that time lag to an absolute ii°h industry, to chemicals and
minimum. Every engineer knows their many allied products, toi
that the completely understandable petroleum, and to communica- >
tendency is to keep that new de- tions. The point ..is, however, that.,
velopment in the. laboratory until
forerunners in the field of :
you know it will work perfectly, research today are not the Johnnyand at the other end of the line come-latelys, but are established,
.

.

.

^

.

is the salesman

on

the firing line

industries-.that realized their fu-

[vho wants something better than tures

depe^ed upon t^^U, the ,
and the continuity with,

his competition, and wants it right speed,

and not next August.

get

should my company or your company

.

ways of doing things.

From a practical standpoint, if
wait until a given product
will do everything you dreamed

cross-section

it might do, you'll

=''

you

The

it.

came

in

never

introduce

Because if it works perfectly
every

you

-

.

to -interview - a;
of
these • leading,

were

-

to°75%°of th^r s'ales'

today are derived from products
respect, it's already ob- which did not exist 15 years ago.

Number 5818...

The Commercial and Financial Chronicle

Volume

189

Does

Hooper Heads Division

need any more

As

far

is'r'con-

electronics

as

-

Public

produced riot •*

cerned, research will

Utility Securities

only that broader concept of com- *>
munication

I mentioned

that

fore but there will be such

be-^

and

so

tronics

elec¬
electrolu-=r

;will -broadea

Sierra Pacific Power
Sierra

Pacific

Power

Company

supplies

be

30

will
be
conducted
not
through7 wires but by; electronics

^

3

■

--

support in the investment,
banking, insurance, law and ac¬
counting fields in Manhattan.

Yor|p

year

spoken

ties

offices in the

business from

Gee Building.

♦

F. A. Merlau Opens

-

securities business.

deputy for the campaign.

is being expended for a big arena, skUjumps, rinks, roads, etc. A

and

III. —John

L. Eisner is engaging in a securi¬

ROCHESTER, N. Y.—Frederic
Bradford A.
Warner, Vice - President of the A. Merlau has opened offices at
Manufacturers Trust Co., as his 123 East Avenue to engage in a

the."three years ended
from now by the Winter
Valley.;, An estimated $17 million
a

LA WRENCE VILLE,

Mr. Hooper named

41% in

grew

committees that will seek Red

Cross

.

,

tricity

—"

New

(Special to The financial Chronicle)

Mitchell, Chairman of Sylvania Electric Products Inc., said
Mr. Hooper will direct more than

lunlber are the principal area industries, while resort and recreation activities are also important. £ Big industrial customers are
Anaconda and U. S. Gypsum. ,.v;;?>;•
_k"
^^
: ^evada is said to be the fastest growing State, although the
relatively small population makes this of less significance. Popu-

system.

one

months.

12

Mr.

.

linked- together
Your house will '
be heated electronically, and ele.c-k
will

into

next

.

mlnescence^lighting^to the^'int WW10" ^
wd; alstfto Portola and the Lake Tahoe
where entire walls and?,ceilings.->*/jk5w*v?.!n
" 'd
levenues are obtained in
will lightup-and your television,,-. ^v,ai1i,.»nd. 14T° m California; Reno, noted for divorce activities,
radio, telephone, and intercom's, «so the center: of a farming and cattle country. Mining and
systems

the

City has been asked to raise $dLcepted appointment as Chairman
000,000 to meet Red Cross needs
of the Finance Section of the New
in the city and its share of the
York Red
Cross Chapter's
1959 national
requirement.
Campaign, it has been announced
by Don G. Mitchell, Campaign
J, L Eisner Opens
Commerce and Industry Chairman.

electricity to Reno, Sparks,
Gajrson City and adjacent sections containing about one-half tiie

home,

the

In

on.

.

In Red Gross Drive

By OWEN ELY

Opening March 1, the appeal for
and funds is part of a
national drive to obtain gifts to¬
taling $95,000,000 to enable the
Red Cross to carry on its tasks in
members

Eugene S. Hooper, President of
Manufacturers Trust Co., has ac¬

accom-p;^^

plishments- as radar steering • of vPautomobiles, anti-collision devices,- P:
electronically - activated brakes,/
;

31

(683)

progressive management;-,
proof than that?/
1'

a-

_.

residential development is also under way in the Valley and the

words directly on paper,
other
machines" that
will :

fast; project may develop into a rival of Sun Valley ..and other winter
as they are spoked
There wiil be v1sPor^
TheU. S. Air Fprce.;-is buildings a new $5 millioih
light magnifying devices to see in
Radar Brain Center near Reno.
^
the dark
tiny radio telephones %%r;; Electricitycontributes about 79% of revenues, water 9% and'
for vour pocket'- •'/
-v .' S?s»1.2yo(Mi 4..;-v ,•. •
...
; .* ..
r- '■
•
translate foreign languages; as

Now what Will

iars and

this meanip: doUC:.^'isoelectric-system, interconnected throughout, extends norththe electronics ^eastward to Battle Mountain, and to the north 65 miles to Gerlach

FACTS

to

cents

industry? Our industry's sales and * to serve that town at wholesale and deliver electricity to a large
revenues will grow from its pres- v
mining customer; also south to Yerington to serve Anaconda Cop;ent annual total of $13 billion to
Per.. Average residential usage is about 4,930 kwh, substantially
more than double that amount in
f.above the national average; revenues average only about 2,270
than; 10 years

less

1966 or-1967.

by
that

kwh, well below the industry average. ■
The company has five hydro stations with a capability of about
10,000 kw. These generate about 16% of electric requirements,
most of the.;remainder being purchased from Pacific Gas & Elec¬

probably,
And plenty of

per

...

increase will be

born in

Mid-West.
•*••••

:•

'/

'

*

si:

tric.' The latter

'•''

Pacific; over

closing, I would like to make
a
few amends.
I hope' I didn'tsound too
materialistic—talking
about electronic inventions,
and

company

.

a

•

.

automation, and obsolescence.- But
down
deep, behind
those: com¬

,

ments, I have a basic conviction
want to- tell you about.
When

nearly doubling in the period 1953-7. This growth has been
due largely to the increase in househeating. About 64% of custom¬
ers now have gas-heating installations
(nearly all installed since
1947) and some 74% of new homes use gas heat.
..-V'As shown in the table below, the company's revenues have
increased from $4.35 million in 1949 to $10.7 million; during the
same period net income has increased nearly 150%.
However, the
company has had the dual problem 01 raising its equity ratio from
less than 24% in 1950 to the current level around 30%, while also
enues

look at any technological or
economic trends, we shouldn't lose
you

sight of the fact that progress is
man-made,
An. electronic com¬
puter is an amazing thing—but
designed it, man built it, and
man thinks for it.
An X-ray ma¬
chine is a remarkable device—
but a man. developed it, a man

man

"

financing rapid growth.: Accordingly, the number of shares out¬
standing has increased from 503,000 (after adjusting for a 2-for-l

it, and other men are helped
by it.
In the final analysis, we have
been talking about the needs of
yses

split in 1955) to the current 746,000, a gain of nearly one-half, and
Share earnings have increased only about 90%.
With a dilution of over 3% due to the sale of stock last April,

,

■

people,'and the ability of other
people to meet those needs. In this
wonderfully progressive part of
the country, I know the opportun¬
ities are many, and I want to wish
all of you the very best of suc¬
cess
in taking full advantage of

-

earnings for

1958

$1.94,

were

more

penny

a

the previous

than

year. Selling recently around 35 overrcounter and paying $1.40,
Sierra Pacific Power yields 4%. The price reflects a PE-ratio of

18, somewhat under the industry average of 18.4.
Revenues

Yenr

r.

1

Paid

Earned

(Million)

The stock market is setting

$1.40*

32

pace

Fact

24

$1.94

10.0

1.93

9.3

1.88

1.18

25

public can't handle the prob¬

who's out of the 50 "most active"

of

lems

fantasy?
In

the

exchange, these
of

G.

President

of

the

ing article entitled "Facts

President

Fantasies."
the

The

.-201/2

0.85

16

-I21/2

rectly responsible for spending

0.80

13

-Hi/2

75 to 80% of the average

5.2

0.97

0.80

I2V2-IO1/2

I21/2-IOI/2
12

0.97

1949

1.03

0.80

dated ..notes
;•

•

of

Loan

dated

$222,000,000
3%%

Banks

Feb.

16,. .1959

BROOKLYN, N. Y.
Haber is engaging in
business

Braggs
name

Street,
H.

a

offices

from

of J.

Jack H.
securities

—

,

under

Haber

at

2242

the

*

of

offering

the

will

proceeds from the
used to retire

be

Arthur W. Parker

$116,000,000 notes on their matur¬
ity on Feb. 16. The balance of the
South La Salle Street, members
proceeds will provide the Banks
of the
New York and Midwest
Mr. Parker was

formerly with Fahnestock & Co.
and E. p. Hutton & Company,
r

Pierce & Drown Formed
Pierce &

has been formed with of¬

with additional funds for advances

; to

members

Bank system

of "the

Home

Loan

to meet demand for

mortgage money.

Mr. Drown was

a

John A. Marinos is

securities

Opens
engaging in

business from

formerly with First Investors Cor¬

poration and C. J. Stubner & Co.

at 2528 Broadway, New

offices

York City.

—is in just

the

exchange

Magazine. And for only $1.50,

investments which

help finance the family's

you can

enjoy 12-a full year of

future, she feels that it is

interesting, informative reading

strictly the man's province. In

about market trends

"What

Every Wife Should

velopments

Know," the exchange presents
the

reasons

housewife

why

the

coupon

take

in the

family's investments.

an

new

begin

below and

Magazine is not sold at

active interest

-

...

de¬

investing. Fill in
your

issue. Do it now! the exchange

is qualified to —and

should

...

subscription with the February

average

stands.

news¬

'

,K

CHICAGO,
business

from

in

secu¬

a

offices

at

20

financial Chronicle)

DENVER,

Colo.

—

has

been

added

Malone

staff

of

James
to

the exchange

Magazine, Dept. 7

I

111. —Robert La

Montagne is engaging

tb-13

I

|

(Special to The Financial Chronicle)

(Spedal to The

J. A. Marinos

more

of

securities business from of¬

Forms La Mont Secs.

rities

a




ing

With Andersen, Randolph

'

issue

fices at 308 West 30th Street.

235,000.

business.
Pierce and

Hercules strength.

Thomas W. Henderson is conduct¬

of the financ¬
East Jackson Boulevard under the
ing outstanding indebtedness of
firm name of La Mont Securities.
the Banks will amount to $740,-

Partners are Harry H.

current

1

Upon completion

Tennyson Avenue to

on

of

scope

growth philosophy that gives

fam¬

one

firm

Investment

1959 was made Securities.
"
•yesterday (Feb. 4) by the Federal
Home Loan Board through Everett
:T. W. Henderson Opens
Smith, fiscal agent of the Banks,
.-.(Special to The Financial Chronicle)
and a group of securities dealers. >
"J NEWPORT BEACH, Calif. —
The notes are priced at 100%. ^
and due Aug. 17,

Part

the

"Re¬

Diversification,"

All this —and

may

Forms Haber Inv-Secs-

Market

dis¬
com¬

operations and reveals the

But, when it comes to the vital

on

of his

His article,

Paces

portant person in U. S. business,

-IOI/2

rate.

offering
Home

parts.

outlines

ily's income. She's the most im¬

"

,

Elmer L. Drown.

three

1.19

4.4

Forster,

E.

Chairman,

split the du Pont Com¬

search

1.32

•

securities

All-Important

American Housewife

5.9

4.8

Albert
and

pany's explosives operations into

6.6

series E-1959 noncallable consoli¬

a

Court

The American housewife is di¬

1950

since

way

and dynamite

since the day the Federal

pany

-18

0.80

long

the growth

cusses

with irre¬

-16

Federal

conduct

sets

18

..Public

208

vs.

24

FHLB Notes

fices at

Funston

record straight

decisions

Drown

Mr.

steps"

days. Writing in the exchange

Magazine,

1.00

1

come a

Stock Exchange, in a penetrat¬

1.03

■:*.

the courthouse

Hercules Powder Com¬

its black powder

York

New

Strength of Hercules

has

pany

Funston,

Keith

•••.

on

in 1912,

micro-

are

by

1.22

"Piesent

—

interest

public

scoped

"Born

and other areas

1.42

1951

111. — Arthur W.
Parker
has
become
associated
with David A. Noyes & Co., 208

% PITTSBURGH, Pa.

The

February issue of the

1952

*>. "4

category.

or

1953

& Co.

Chronicle)

CHICAGO,

•

Fact

investing.

8.5
'

enlighten¬

ing summary of who's in and

the

for

are

7.6

1955,
1954

Stock Exchanges.

and also presents an

few —the

Stocks

-191/2

$10.8

years? The

reveals the answers

dagazine

fantasy?

or

mark in twelve

current issue of the exchange

for the rest of the econ¬

omy.

-231/2

1.20

1958

Arthur W. Parker With

-*>'.

ume

the

Appro*. Range

1956

.

Which stock set the largest vol¬

—Common Stock Record

.

1957

(Special-to Tes Financial

stocks of 1958 have in common?

fantasy?

futable facts.

-

them.

David A. Noyes

or

_

"

I

•58's Three Most Active Stocks

un»

1929. Fact

starred market of

"a long legal battle with Sierra

has had

now

comfortably similar to the ill-.' What did the three "most active"

proposed increase of about 29% in the cost of power.
The rate case was terminated by the FPC in 1957, the higher rates
charged by PG&E being disallowed. In February, 1958 the case
was dismissed by
a Federal court.
In June, 1958 an action was
/ still pending to recover $889,908 which Sierra contends PG&E
still owes it.
r
./
The gas segment of the business has grown very rapidly, rev-

In

market is

stock

The

%'

the

FANTASIES

vs.

11 Wall Street,

I

Enclosed is

]

order). Please send me the next 12 issues

j of the
|

the

Andersen, Randolph &
Co., Inc., 818 Seventeenth Street.

I

exchange Magazine.

NAME

'•

I
|

W.

New York 5, N. Y.

$1£0 (check, cash, money

,

*

.

ADDRESS
.

CITY-

-STATE.

'

...

32

The Commercial and Financial Chronicle.

(684)

7
KsOnziTiueu,
:

frnm

"

producers

'

mm

11

.

_

V|V|a a rllslmVlfVA tA lit A Ha11«IV
A UK

VilCllIvIIMC

III

ftUU

Irlllllll

-

<

number of others, particu-

foreign producers undersell us in

larly in Europe, the dollar shortage has become a
thing of the
past. Such countries no longer

our own front yard.
Then turn to still a different
sector of our economy—agriculture.
Almost from the founding

for

a

have

pressing need to build up

a

initially, of course, there were that could arise from a continugood reasons for these discrimi- ing Government deficit. Here we
nating barriers: Europe had been are, running a $12 billion annual
torn by war, its industry was bad- deficit at a time of mounting prosly hurt, and it was woefully short perity. We quite rightly give help
0f dollars.
But
these circum- to many other countries that need
stances are a thing of the past.
it, working through a variety of

On 01' our country the United States
if they are to retain has been known as the world's
the balances already here, if they primary source of supply for cerTke time
kas come f0r m0st
■are not to convert them into gold, tain farm staples, especially cotEuropean countries to stop sinthey must stay convinced that the ton and tobacco. Prior to World filing out United States products
dollar will indeed continue to be War II our country provided near- £or
specjai treatment. They should
€is good as gold.
ly 40% of all cotton that entered move to eliminate discriminating
So here we come to the heart into world trade.
By the early QUOtas and other devices so that
of the matter: the dollar must be /fifties, after two decades of inn
_ allowed to compete as best
balances in the United States.
the contrary,

-

'

,

,

-

-

.......

«

...

—

agencies to.do so. The Monetary
Fund and the World Bank, in
providing such help, rightly insist
that recipient nations balance
their fiscal budgets, as well as
their payments with other countries.

*—v

-

-

Then we turn

-

around and

-

ourselves.

work.

feeling generated that the

a

properly

cannot

United

States

manage

So

houses.

whafdid

Did

do?

we,

its affairs, then our na-

to make ourselves truly
competitive in the world's cotton
tion, indeed the whole free world, market? Not in the least. Our
will find itself in deep trouble.
Government said that it would
We
clearly are not in deep compete, but only on the artificial
trouble at the moment.
But this basis of a subsidy. This season it
not

does

and

only

acute.

comes

when trouble beCertainly we should

develop'1

fact

Questions

that

are

bein° raised about the future 01
being raisea aoout me luiuie of
the
dollar - these are warning

which it would be folly to
ignore. What are the lears in the
signs

minds of

our

friends abioad. What

which

the dangers

Amencans must guard against?
I think
they can be boiled down to these:
ore

is..estimated

'

we

V

other products m world

and

this

Truly

markets
those

situations

have

seemed

is

guide economic life. We, too, must

to

secondly,
first, there

lack'

Pact

°ur

Posl''°"

V

.

Asks We
The

i

^^hd^vj Ima"er ot prices,
ana ine persistent lenuem/ tu

nnlicv

that might even
to
Alice

going

the

whenever

that

There

his

to

market

if

thp

of

marl

p^qv

actiorf

ftovemment action and subsidy
i>o\
ment
a d subsi y.

n-

difficulties

us

e enc0""termg

some

in

^

«eis.
kets.

have
nave

l
I

export mar-

mentioned
mentionea

earlier
earner

the

rather sharp decline in shipinents abroad this past year. Some
©f this

iust

enough

isn't

to

prices

no

There is^no

that, it we

are

higher.

business

is true, is due
demand. In Europe

now

AO

moderate
very

in

is

VWk.iuv.oo

AA\J\\

And

of

some

areas,

Africa,

experiencing

letdowm

much like
like

in

activity

ours

of

the

raw

South

par-

ticularly true of Europe—Arneri-

Qtatp<? nrodnrts

n

mri

a

recent

rency

toward

m0Ves

convertibility

.

didn't

in

and

cur-

Europe

affect them.
the

Take

.

of

case

automobiles,

porejgn
voeue

cars are having quite a
here in America
We even

iowered the tariff

Jy fro^

l0% to

on

them recent-

8°*%

American

about

they cost
-

i

word

—

ago.
material

America

are

item

r,°,longe.r comes to prices on
can m,atch forelgn

firms when it

electrical

Producers

equipment

we

tell

us

costs—aifd

the chief

familiar to

telling.

Many

if

wage

the

tackle this problem

more

the

consumer.

abroad

I want to

add

J

a

Most

of

us

23?SidP^£rSnt^i I™?

wl w? i
aZSI

America




to

produce

rice

more

fUnf

lntoT*

Rprlhiirrpvf^

c/

an American cai

if

he

TJiif

ir the Orient

b

fhi

_

.

^

may'find itself heading toward

a

wViUr
wants

to

?

/isfinnSth®

t

.

future

useless than

or

a

second-

East, or other areas that may go

as some

,

+

,

of the foreign seers

S

.

7

^

_

T

countries

it;

insay

in

Asia, the Middle

nostwal

hrnnpht

needs to be

inIn ha?uT?onv

with

Jid^w^tiSh

b

fftrrn

niir

revved

and

Ihp

Mid-Twentieth Cen

-

need to return to some of the
basic principles tnat did so much
so much
to encourage thb growth of our
country in its most formative
years: a reliance on our own hidividual enterprise, encouraged by
basic principles that did

enlightened^ BCU-1 11 teres t, CU1U,
self-in b A KZ O lf and

Ul'lCiCr WllilOUt It.
under without it.

fortitude.) to control its costs.
Prices are boupd to rise. As a

CliUfelllCiiCU

making full use of the market
place, of the normal forces of

-

Can't Blame the Cold War

and demand, to direct our

I realize it has been fashionable supply

con-

t

blame

the

national

deficit

on

efforts.

fln,ue to lo.®e
in w0,ri.d ™®r.T
kets even it other countries quit
discriminating against them, and

the need for huge defense and
Think of all the advantages we
forel
aid expenditures. Yet I start with: a level of education,

the adverse balance of payments

appreeiate that of the $7 billion is greater than anywhere else in

will remain.

The gold flow will

Pei"5lSt' a/ ^^mc Pomh as the

holders of dollars become concerned, the flow.wUl turn into a

wouid torrent. The United States will

•

a

One could go on and read off a
n^.
of other products, from

,vilv

Nothing is more prog^

vital.

blS'

J-

cost $5,800, with a penalty of then be faced with the necessity
W And in Engiand the price to devalue the dollar." That in
would be about $8,000, with the essence, is what some of our for-

,

to

an

Clt^a ?i0ry a+! one hPef,rs
abroad—the pattern of the

any ana xne.nauon as a wno e.

curb the forces that could weaken

it. You may have heard the old
saying "God save the Queen, but
iTy refrigerators to machinery to only the English people can save
wnen
chemicals, that face similar ob- the pound." Well, only the Amerwn

ex-

including the military, ought to be
|
n
indeed
it
re-examined, and indeed it now
now
is being re-examined. I mean
aid to countrieS that really need

ally and the nation as a whole.

ne wants to. resldt u. S. producers will

u° CarS*

I

l

.

rice more

tury.
dollar balances—any aid to them,
In farming, as m industry, we

service to every citizen individu-

V
^bonfthnt. twnd^lfltAr^-Riit. ''The,^tefes _lacks the
riLiikp Srtflin tS! ternal discipline (or should I

a

ai

ssible

best defense. And related to this
is our foreign aid. I don't mean
aid to countries that are piling up

chapter and verse, and the
pity of it is that the leaders who
take this path really do a dis-

•

now

to

dpfpnsp

f

perilous

could

cite

•

t

that if the controls were to

he removed from rice output,
modern methods would make it

we mean the non-

w.

across

ir»

mind

^an 3% on^he lvl?age Hi such
^ ri^umrtances it shS§ be natural
^c?n01?^ anc* "
"J"1 ally in
*or us
Place increased emphasis
defensible; and still other labor When it^ comess to defense an
^
f
practices which interfere with the establishment that is second to
mait;

to

pe

mv

f. £ «« Federal Government? many S/ttoUn

wan

^nmnptb

in

(And state and local governments, lgnoie the tact that m tne postwar
too, for that matter.)
period, productivity in farming
have lived through
And when we talk about cutting has been increasing by 6% or
increases that far expenses,
we
should make it
a year, while that in manuTha

G+n°iUK
i

n+

bars

doubt

need re-

thelict ic labor ports

il tS>

imports are further lim- that any such pattern of events
^vnnrfpr^
-u
^vere quotas and other wm take place, and the consensus
•nrnHiirt«
devices. Thus France admits only Gf informed economists is that it
Sorters *Or tnkA
f relatively few^cars from outside will not happen. But it would be
^ongh t^lis nhnntn! TT^f
?0mmon ^Jfrket, foolish for us to hide our heads
JaDanesp who hut
ZiSi S
5(1p:resently re- in the sa'nds and conclude that it
California haul u hank
fh^
fr0,m
^nited would never come to pass. At all
trulls in iho
mLlnS
States and Canada to 650 automo- COsts, we have to guard the init into finished nroducts and S5S S T
3
admits tegrity of the dollar, and that
it hack
the whSl Pnnffil £
hundred American means that we all have to work to
-reinforcing

a

are

time-and make the effort

j^ow i don't think for a moment

LL

hnf

I am sure that ail who are

back of me. But perhaps an even more
cent__that dramatic example is to be found
cut in expen- in the case of rice. Experts tell

we

don't have to look very time-anci maxe tne ettort to ex-

SSLSJSBoiiSin
Pe>™ C0mp0sed °!a 30 % dUty- eign critics are saying,u
a generatoi
Moreover* as if tins were not
^

all to the benefit of peo-

pies everywhere.

I do about it? Do we make our- it. lhe underlying truth may be
selves heard?
Do we take the that in exports the United States

.

nn

gtorv

But what

cars

.//f/

wide range of items.

**

the individual. What do.you and $7 billion

f°r liberalization^^by Germany and
by France on raw material quotas, process of passing savings on to none is

OA

a year

pyppnt

w

„

a

staples

many

*«,
of the world—and it is

suffering from lower
prices. Yet the fact still remains
that American exports are holding f/feh carriesi a price .hererin Callwhich
up less well, relatively, than those
R
of many nations including Gertaxes^. Mr Breech points out that
many, Britain, and Japan. Moreli
fe
over, we have testimony from a fbat car is about $8,200.
It innumber
of
our
producers that chides
ho less than $3,200
of

of

hnlnnced

produce

good in themselves. In the iinal wrong with a program that blocks
analysis it comes right down to this; kindI ofneff1cien^, and spends

vance

billion just isnt cnoufch to v«moe.
balance our accounts, and wc
Now

reduction, it

to cutbacks

lZs

_im_ fn

could

here more cheaply than anywhere

of the

billion

good to

no

we

nn-

V

the

I want to say just a few words
about each oi these clangers.
It

certamly wouid do

Productive resources,

SS™*

incessantly

from rising

going our reliance on free enterprise and individual initiative in
takp

the world of some of our most

^ly lo^day

exriude

tn

a

deprives the; United States and

me
i<?

plSewhich1iniconfronted by other nations. In- outrun any gains in productivity; known that
it strong—that we^^nay be foretf
j°b ^atherbedding, which is tin^rdpr

almost

old, effectively

P^ime 10 proauc

country may can
shippers face tariffs, quotas
of scrapping and
0ther obstacles that are not

our

process

it

ditures.

a

And thirdly, I might add, there
the

Government, now

our

quarter century

And with vigor and determination we

areas

m

President
made

™

h

strongly urge

we

pushed

iniiauun.

concern

fhA

equivocation that
^ huhdred

gets

Concerned About Price Inflation

on

Not All Our Fault

Sato"1 0t"er W°rdS' tG 3
be

the
has

£*nt whenever me going gets £
No producer can expect to hold

in Wonderland!

traveling

The

American people, to tell him and familiar with the cotton situation
Congress clearly and without in California would agree with

"ot ""related to this, is the growing inclination to turn to govern*

strange

under

is

Back

President

all

and
is fear that we may
necessary
discipline to

the

un-

cotton.

our

than in either Germany or Japan,
continuing abroad some $17 billion of goods and this in spite of the fact that
a year-more than any other sin- the Federal Reserve System did
rphfpr1
tn
thP gle
nation. The trouble is that all that it could to stem the adi elated
to the

prevent

DUbllc expenditures

rice and

Deeper, highly significant tre^nds,
fetter control and balance
For I'm completely convinced
}o which we oureelves hold the
?"dorfnCe °Ur that if farming were permitted to
key. and which also have an im- dollar outgo with income.
develop unhindered In America,

of lou^-

one

wheat,

truth Js that the farm program of

N0W 1our problems imply tha* happy record for the number unI. ^tsociat ons "SusScluCs
d0R,t W.aRt to m export yet that ha%bT a rath®r of trace associations, business clubs
of
items over the past few years, and other civic organizations to
Since 1955, at least, prices have send xesolutions to Congress,
risen more in the United States though of course, these actions ale

™

Dangers to Ward Oif

outflow of gold.

ran

counter

^tSTiSS&SSw law"tot

^ere .areSther

tunatcly itlsnt.^ lnere aie oinei g

First, there is concern that the markets are of our own makingUnited States is pricing itself out that
we can't compete on any
of foreign markets—that it cannot range of items.
That just isn't
achieve the level of exports nec- true.
After all, we are shipping
essary

run

"thehe uX/sfeL^nTaUher, budget. Now it is up to us, the
Hw

T^^^Sclm^i^^omie^S
Unloved to dispose oi wneat,
employed to d?soose of wheat
nce

^

will

exporters

our

ship abroad some 4 million bales
by selling cotton at an average

feet'of th/'loJd SSTb

The

the

How

wait

should

we

mean

act

try

we

nation,

f am ilv

Mnv

all cash income for farming (close
to $7 billion) flows from the Federal Government. Moreover, this
farm subsidy has a double meaning in terms of our international
position. Not only is it a major
contributor to the unbalanced
budget, and hence to the concern
about inflation, but it also acts
to price _us directly out of importent world markets. I have already
mentioned the gap that exists between the world price and our
own domestic price for such crops
as

No

tries to

and

Thursday, February 5, 1959

On some of these our ican people can keep the dollar such diverse fields as housing,
might not be able to sound.
shipping* aviation, and now to the
compete, even if the barriers were
whole area of small business.
down. But on others—particularly
Practicing What We Preach
But probably mo area receives
specialized
products — we
unThis'means, too, that we have as heavy a-subsidy today as does
doubtedly could.
to remove the pressure on prices agriculture. Almost one-fifth* of

yuye

:

.

stacles.

*?

nnnp

jrum

-

.

wonder how many

of

our

citizens

inerease ln Government expend!-

tur8s this

know-how, and productivity that
the world; an industrial plant and'

none flows to fol._ capacity

eien aid and onlv $1 7 billion

reo-

anv

Sffn tacS if dSe S

&at

cau't be matched in

other countrv and

an

eaeer-

o

kS,

outlays. Where does the remainder backed by research and scientific
a

V

w u

$24 billion

(the largest

?£gi^
farmer

S1

inauirv

ToThe sca?e
billion

is

going

for

give

on

an

unnrecedented

T/esearradvaTage^^^^^^^
us

-

head

start

on

all

othnr

housing; about $400 millloii has nations. Butwehave tomakefuU
been earmarked for added

unem-

ployment benefits; and the remainder of the increase is scatteied among other beneficiaries,
It is significant that a sizable
portion of these outlays involves
a subsidy to one group or another,
I am afraid that it is fast becoming a habit in our country to

use

of them.

You have heard the

saying, "The world is full of willing people; some willing to work,
the rest willing to let them work."
We have to disprove that saying,
We can't featherbed; if anything
we have to work harder and

longer, make better products and
less in the suburbs — and
regard Washington as a highly that applies to bankers, as well
convenient storm cellar — a place as to everyone else!
for one and all to run to at the
first sign of disturbance. UnforWe Continue to Be at War
tunately, this is too often true
The fact is (and too often it's
of business as well as - other overlooked)* we continue to be at
groups, with subsidies flowing to war—a war not Of our own choosrelax

Volume

189

Number

5818

jng, but still all-embracing.
a

for men's minds

war

The Commercial and Financial Chronicle

,i.<.

and

It is

Government of

men's

souls, with active battles being
fought on the political, ideological

Consider again those words
of Khrushchev.

field

peaceful

declare

war.

United

States.

United
but

duction.
and

of

it

our

is

We

over

to

Securities and Exchange Commis¬
sion

least

for

nal

loan

bonds.

$3,000,000

economic

political

of

trade drive in

?•'

have

sold

the West?

tin,

-

consist

of:

4y2%

year

bonds, due Jan. 15,
1964; and $15,000,000 of 15-year
51/2% sinking fund bonds, due Jan.
15, 1974.

:

That

they seek to become the
suppliers of oil to Latin America?

bonds

being offered by Japan

are

with The First Boston Corp. acting

offering

as

The

and

agent

Egypt and Syria t© their adviser.
orbit through loans and the iron

financial

will

be

dent, on the other side of the
globe, that Communist China has

conditional and
of

its

begun

credit

Or is it any acci¬

undercut

the

Japanese

The
it

is

answer
no

is,

Japan

course^hat
accident; and this^eco¬

and

full

faith

pledged to
which will be

their

are

ment,

of

in

and
pay¬

States dollars.
The

When

confronted^ by 95% of the 15-year bonds prior to
large problems and issues in-the
maturity.
/
•
past, they have displayed remark¬
The net proceeds from the sale
ably good judgment. There is no
why the future should
exception.
U

be

of the bonds will be added to Ja¬

pan's

foreign exchange reserves.
any
Yen equivalent to these proceeds
The future
will be
what- we
make it.
There are encouraging will be loaned by Japan to Electric
Power Development Co., Ltd., (al¬
signs that we are beginning to
most all the capital stock which is
recognize and face up to our prob¬
owned by Japan) which is engaged
lems. On all sides one hears of a
growth in productivity, of a striv¬
ing to get costs under bet|e*vcontrol.

And

the

Now Associated With

refunding operation
"expected issues," since the

Shearson, Hammill

termed

DETROIT, Mich.

along with
3%%

came

one

in

the construction and

of

a

operation
large-scale hydro¬
electric projects, and the whole¬
number of

President, with his
inspiring leadership, has pointed saling of the electricity produced
to the road that can load-us to by these projects to electric util¬

and the three
year 4%
note were pretty much what had
looked for in the financial district. It was
very evident, not
only to the Treasury but also to most

money market specialists,
that the 3%%
obligation was going to get the bulk of the ex¬
changes in this refunding venture of the government. To be
sure,
there will be
exchanges from the maturing issues into the 4%
three year note, but the indications
are
that these will not be

too sizable. Because of the
tightness in the money market, which
the monetary authorities will
keep that way as long as the infla¬
tion pressure is
strong, it is to be

expected that the Treasury will

have to meet competitive
money conditions, and this means higher
borrowed funds.

costs for

Treasury Forced

to

Stay in Short-Term Sector

As

previously indicated, the Treasury in its February re¬
funding offered owners of the $14,900,000,000 of maturing securities a package
deal, in which they had a choice of a one-year
certificate with
This

3%%

a

coupon

three year note
what the money

or

intermediate

had

been

market

talk

about

Mr.

an

maturing

issues

the

were

notes

000,000.

Of this total, $9,200,000,000
eral Reserve System and this was

owned

debt

publicly.

that

holders

was

of

instances

many

words,

cash

the

was
a

totalling
of $15,102,-

.

held outside of the Fed¬

what

was

in

taking the

new

few

these

not

a

of

obligations.
holders

In

were

other
in

Y

time

of

that

*

the

put funds back to work

short-term

in

an

issue

that

is

still

'?.No Easing of Credit Expected

of doing

and Development (World Bank)
great is proposing to lend to the Japan
am con¬ Development
Bank,
a
Govern¬

possess

advantages, and I for

one

fident that
of

them.

economic

we

We

shall make full
can

use

overcome

problems.

our

To do "So

we

will need determination and skill,

of 3%%

rich

in

these

There

which

of

some

World

other

currencies.

The

Bank

qualities—now instalments commencing March 15,
1974 and ending Sept. 15, 1983. The
net proceeds of the World Bank
loan

;

F. F. Walker Director

Frank
F.
Walker,
a
general
partner in Dean Witter & Co., has
been elected to the board of di-

the

to

Japan

Development

Bank will be reloaned

to Electric

Power Development

Co., Ltd. for
meeting the costs of its MiProject, which involves the

in

use

boro

construction

of

a

reservoir

dam,

and

generating facilities having a
maximum capacity of 215,000 kw.,
which is to be completed by De¬
cember, 1961. Japan will lend to
Electric Power Development Co.,
Ltd. an amount of yen equivalent

v

does

in

corporation, $10,000,S.), or the equivalent

in

to

of

the net proceeds from

the

publicly

meet costs

incurred

with

the

boro

Project.

In

the

offered
in

construction

out of

the

■

balance.

since

the

end

of

there
that

California

communities.

times

its

1955

level

and

times the 1934-36 level.

John C. Murphy Opens
(Special to The Financial Chronicle)

ENGLEWOOD, Colo.—John C.
Murphy is conducting a securities
business from

offices

at

180

Hampden Avenue.




East

over

2J/2

Japan to¬

will

about

concern

be

dealt

with

capital.

in

the

the

this

E. F.

Western nations.

are

with

grams, s-

Golden

pro-

ch

M.

Black,

Chairman

Seal-Kap Cor¬
poration,
has

Connely to the
di¬

of

and

ing to organize

a

Science Ch.

o

for

young boys in his community.
He and his wife Sylvia are the

proud parents of
and
A

a son, Ira, age 11,
daughter, Ann Carol, 7,

salute

Julie

to

in

the

Golden

friends

numerous

from

and

securities

asso¬

field.

With John Muir Co.
Irving

Weissftian,

H.

formerly

Treasurer of Weissman Bros.
is

now

Co.,

Inc.,

associated with John Muir

39

Broadway,

New

York

City, members of the New York
Stock
Exchange,
as
registered
representative.

Specialists in
U. S. GOVERNMENT
and

federal agency

Form Fund Investments
ChroniYe)

CHARLOTTE, N. C.—Fund In¬
Inc. of the Carolinas

Securities

vestments,
has

been

1129
cers

East
are

formed

offices

Street.

at

Offi¬

Charles A. Hunter, Presi¬

William

dent;

with

Morehead

Richardson

M.

W.
Quinn
and
Hanckel,
Vice-

Presidents;
Marjorie
G.
Hugo,
Secretary; and James E. Cushman,
Treasurer.

rectors. A for¬
mer

of

President

the

ment

Invest¬

Form Estate Securities
(Special to The Financial Chronicle)

Bankers

Mr.

DENVER, Colo—Estate Securi¬
ties Corporation has been formed

pre¬

America,
Connely
viously

Aubrey G. Lanston

with offices at 1600 Ogden Street

Association

of

Corporation,

Detroit.

Co.

'

as

Scou t; i ng,
Little League, and presently help¬

&

Emmett F. Connely
to engage in a securities business.
a
higher standard of
was
Officers
are
Robert
F.
Barbey,
living than before the war despite President of
a larger population. Since the
war, American Securities
Corporation, President; Robert W. Kirk, ViceJapan has developed close politi¬
President, and Wendell W. Shows,
New York, and prior to that Chair¬
cal and
economic relationships
Secretary and Treasurer. All were
of
The
First of Michigan
with the United States and other man
formerly with Allen Investment

day enjoys

: 0 m

1

minds

the money market and interest rates.

Connely Director

President of

board

orite

ities

youth

ciates

will tend to

(Special to The Financial

E.

fa
v

busines.5

It is evident for

kind of uncertainty which

t i

way

operation. It is indicated that a part of the new money which the
Treasury will raise will come from the sale of Treasury bills, with
the 182-day issue likely to be favored.

F.

nearly 1V2

inflation

much

still many
money market followers who hold the opinion
will be a sizable attrition in the recent refunding

are

Emmett

was

too

at*

there

of

tion in real terms

of

be

r5

working

his
to

pany
ears,

away

the inflation psychology

will pay out in the current refunding. And in spite of corrected
reports that the Treasury does not expect cash-ins to be excessive,

announced the

considerable

as

The Treasury, according to most
money market specialists,
will be in the market again for new money in the not too distant,
future, probably in April. The extent of these borrowings will
depend in no small measure upon the amount of cash the Treasury

election

a

political and
Frank F. Walker
social transformation. Japan's ingrowth in recent years
rectors of California Water Serv¬ 'dustrial
has been equal to that of any other
ice
Company, according to
an
country of
announcement by Ralph Elsman, major manufacturing
the Free World, including that of
Chairman of the Board.
the Federal Republic of Germany.
California Water Service Com¬
In 1957 Japan's industrial produc¬
pany, the largest investor-owned
28

It is

pressure on

and

serves

seem

the forces

significant economic development

water utility in the United States,

not

American

period

the war, Japan has experienced a

long

as

Heavy Attrition May Impel New Money Borrowing

to

Mi-

market

of the lawmakers in the nation's

keep the

connection
of

money

example, that it is not going to be an easy task to keep spending
within limits that might not throw the government
budget way

the sale

bonds

on

continues to be strong.

must roll up our sleeves and
show the world how to use them.

we

the

on

000

(U.

going

the Treasury will

ment-owned

thereof

loan, which is to be
imagination and hard work, cour¬ guaranteed by Japan, is to be re¬
age and self-discipline. Americans payable in 20 equal semi-annual
are

though

n

partno \

a c

Julius

;

The exchange offer rates
modest firming that has been

eene

last

His

classification.

search

ways

a

ted:

:i

23

the

within

reins

better

for

almost

owned

r,

in-

oecn

1

(r

Cc

and

Also, the Federal Reserve Banks
$6,000,000,000 of the February maturities
would be interested only in the 3%% certificate.
However, there
have been instances in the
past where the Central Banks have
exchanged part of their holdings for others than the shortest
maturity.

which

e

it >1

hat;

with

indicated at the

and 4% again reflect the
in interest rates, and even
be in the money market from time to
time there does not appear to be
any signs yet of changes in the
policy of the monetary authorities to ease the cost of borrowing.
It is evident that the powers that be are
going to hold a very tight

for

He

the

to

bt

Manhdtan.

no

announcement of the terms of the refunding offer
one
year certificate would be favored
by most holders
February maturities since there is still great need in many

cases

k

r

was

the

of the

o

a s s 0 c

evident from what the Treasury had

was

York
New

37 Wall Street, New
"J u 1 i e,"
a
native

City.

position to refuse.
It

witfl

formerly

Happy
Birthday,
Feb.
to
Golden, Greene and Com¬

pany,

In addition, it was this portion of the maturing
point of concern to the Treasury, since the
issues that were being refunded were in
many

interested

was

Company, Inc.

Julius

sizable amount to be

very

&

Happy Birthday to Yen

certificates

aggregate

years

Baxter

a

the

not

2y2%

in

opened

newly

Hastings who has been i 1 the

investment business in Detroit for

term

bond market, and the
composition of the holders of the February
maturities, did not make such an issue feasible.

The

Hastings

their

branch in the Penobscot Building:

had

obligation, such as a short bond being part
refunding offer, but evidently the uncertain position of the

of the

Russell

of

manager

bearing 4%.

a

exchange was in line with
predicting.
To be sure, there

H.

ity companies.
stability.
Certainly^ our
scientists are working overtime;
Concurrently with the offering
and no nation is devoting go much of the
15-year bonds, the Interna¬
thought and effort as we in the tional Bank for Reconstruction

fiscal

things. We do indeed

H. Russell

—

Hastings has become associated
with Shearson, Hammill & Co. as

year

been

...

reason

is

its

$9,770,000,000, and the 1%%

war

strength.

government in

issue

United

three-, four- and five-year
promises to affect the bonds will not be redeemable
prior
lives of all of us. And yet I'jam
to
maturity. The 15-year bonds
sure
that
none
of - us! -has
any will not be redeemable
prior to
doubt as to the
outcom%r^Gh%na- Jan. 15, 1969, except for the sink¬
tion is manned by a
people of ing fund, which commences July
great resourcefulness and proven
15, 1964 and is calculated to retire
nomic

what

been

bonds

direct, un¬
general obligations

to

Governments

on

Hastings

The First Boston Corp. will head

Or to tie

in markets of Southeast Asia?

The

an

underwriting group which will
alumi¬ offer the 15-year bonds. The threeyear,
four - year and five - year

num, asbestos and other products
at cut-rate prices?

bands of trade?

These

three

4!/2%

year

rea¬
:

they

29

bonds, due Jan. 15, 1962; $5,000,the superiority 000 of four-year 4y2% bonds, due
And later, "We Jan. 15, 1963; $7,000,000 of five-

and most for

a

Jan.

on

covering a pro¬
posed sale of $30,000,000 of exter¬

the

Is it any
accident, then, that the
Russians in the past year have

begun

the

the

the ICBM,
peaceful pro¬

sons."

That

with

relentless in this

are

prove

trade

reasons

registration statement

a

We

trade.

threat

in

...

not

of

system."

value

of

The

field

will

you

We will win

States

the

in

on

Reporter

By JOHN T. CHIPPENDALE, JK.

The Government of Japan filed

•

war

H. Russell
Our

External Loan Bonds

mate.

"We declare

Japan

To Sell $30,000,000

and
economic
fronts, while the
military position holds at a stale¬

the

(685)

6c Co.
INCORPORATED

20 BROAD STREET

NEW YORK
☆

CHICAGO

☆
.

☆

BOSTON

34

The Commercial and Financial Chronicle

(686>

Continued from page

..

Thursday, February 5, 1959

.

ing in Miami since 1949, and for-1
was an officer of the First

19

merly

National

Bank and Insurance Stocks
=

News About Banks and Bankers

By ARTHUR B. WALLACE

=

to

the

conditions

in

in¬

eral

vestments, the leading New York
City banks did very well in 1958.
comparison with 1957, loan

In

volume
down

{at

date)

year-end

was

of 1.1%. How¬
ever, deposits were well above the
end

an

average

of 1957, the average increase

being approximately 9.2%. As the
from
loans
among
these

return
banks

40%

their

from

rates

came

has been
thereabout, above the re¬

or

turn

interest

since

down

high

investments

(principally
governments), they have derived
greater benefit, relatively, from
the pronounced increase in gov¬
on

ernment obligations than was the
several

A recent Fed¬

loan rate increases.

bank

consideration

Given

tended

to

^countries
The

to

be
out

come

at

even

economy

of the

con¬

recent

moderate rate

a

of

improvement, the banks' large
holdings of governments will put
them

in

good

position to take
'advantage of any increase in de¬
a

mand

for

place.

It

loans

that

must

be

take

may

holdings of government
obligations are heavily committed
to

the

shorter

maturities; few of
holdings maturing in
over 10
years, and where they are
shown, they represent small pro¬
portions of total loan portfolios.
them

show

Banks
cities

in

the

must

central

necessity, remain
liquid with their gov¬

relatively

ernment holdings;
New
-

York

banks

paratively
matter of

reserve

of

short

but

the

adhere

large

to

maturities

as

position

vis-a-vis

Jbanks.

the

on

the subject of invest¬

ments

one

York

banks'

Itheir

bond

results

They re¬
ported a very profitable year in
some cases; in others
apparently
little trading was done. Eleven of
the 13

large New York City banks

reported
their

on

this item for 1958, and

aggregate

profit

after

ap¬

propriate taxes, was $54,340,000,
using rounded figures. To be sure,
this item of securities profits can
ebb and flow. For 1957
only two
of these banks reported
profits;
the other nine showed
two

of

them

being

1958 result for the

losses, only
sizable. The

group far out-

balancedj the earlier year's results.
There

are

evidences

of

slight

BANK STOCKS

.

fairly may be called a pronounced
trend, but the recovery from the
recession has not been at a rapid

One indication is that the

seasonal decline
is

busi¬

in loans to

this
stage than it was last year in the
corresponding period.
ness

considerably

at

less

could

the

be

intrusion

the

of

Washington
Morgan-Guaranty and the
Bankers-Manufacturers
proposed
mergers, with no less an influence
coming from the threatened in¬
the

in

troduction
that

of

would

bill

a

make

in

Congress
possible the

undoing of ijiergers retroactively.
Such a law' could cause a great
amount

mischief.

of

Another

factor

stock

yields

Some

have

4%

are

level; and

tors

are

•

place

the

at

*t

#

ft

V'•

is

that

bank

less.

through

bank stock

the
inves¬

,

Company

Trust

the

relation to the high price-earnings
ratios of so many blue chip indus¬

trials, the present 14.5 to 1 aver¬
age makes the bank shares look
reasonable.

continue

as

Ohio,
Jan.

and

Vice-President

Executive

bank's

the

of

Ohio

Residents of the Greater Tren¬
ton

N. J„ newly-an¬
QUICK - CHARGE plan

enable

customers

chases

at

plan

Baxter

charge

to

the

past

had

associated

was

his

with

invest¬

own

New York

Blair

&

Co.

of

Joseph F.

Wittermann

associated

come

Sozek
New

Co.,

York

40

with

has

be¬

Geo.

E.

Exchange

Place,

Credit

CHARGE
bank

Cards

the

At

the

BANK LIMITED

restaurant

room

to
#.

'

Scranton,

Member* New York Stock
Exchange
Members American Stock

Exchange

120

BROADWAY, NEW

YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell
Teletype—NT 1-1248-49
(L. A. Glbbs, Manager
Trading Dept.)
Spedalistg in Bank Stocks




SQUARE, S.W.I

54 PARLIAMENT STREET, S.W.1

Bankers

to

the Government in; aden, Kenya,

uganda. zanzibar a somaliland protectorat*

to

National

stock

by

$400,000

effective

23.

the

shares outstanding

—

"

8,000 shares,

v.:

City

Bank

Pa.,

value

that

at

par

First

stock

by

Jan.

from

R.

the

Baer

Vice-Presidency;

to

Treasurer

from

Mr.

and

since he

in

Baer

tanganyika, zanzibar, uganda,
aden, somaliland protectorate,
northern and southern rhodesia.

has

Stauffer
He

came

inception

to

City

Bank

Treasurer in 1952 and has been in

charge
note

the

of

operation

of

David

G.

$

$

Hill

was

named

a

i

Company,

Pittsburgh,

Pa.,

of

ft

sS

Jan.

shares
par

National

Bank

a

of

out¬

$

of

Mercantile

Miami

Beach,

Jo¬

veteran of 25 years

commercial
time

banking,

was

at

associated with the Irv¬

Company,

New

Trust

the Lincoln National Bank in

and has
since 1903.

bank
$

'

«

Bank

National

of

'

San

right to sub¬

common

stock for each

1

three shares then held.

The

warrants

Full

(a)

scribe
full
.

or

for

a

shares

(b)

of two

of

types:

subscription

share

warrants, each
the holder

are

of which

entitles

his assignee to sub¬

specific

number

common

Fractional

of

stock, and

share

subscrip¬

tion

warrants, each of which en¬
titles the holder or his assignee to
combine
same
with other
frac¬

share warrants, equal :in
aggregate to a full share war¬
rant (s), and to subscribe
to the

hppn

pn£a2ed

number
stock

of full shares of

in

bank¬

common

specified in such combined

warrants.

The
the

proceeds will "be added to
capital and surplus account.
*

United

States

*

t-

National Bank

Portland,

Cincinnati, Ohio.
has

of .Citizens

years,

at

York,

ing
and

Hp

the

additional

a

value

announced by

Fla., has been

Japp,

to

of

;

21,

seph Weintraub, Board Chairman.
Mr.

.

Board.

of Gordon A. Japp tional

Vice-President

as

one

member of the Board of Directors
of
Mellon
National
and
Bank
Trust

total

in¬

by

$500,000

effective

(Number

The election

in

#

to

continue

$42 per share, for a
74,511 shares of common
stock at the rate of one share of
scribe,

of

$25.)
•

the

department since 1948.
«

1959.

associated

its

elected Assistant

was

dividend

17

business Jan. 13, the

capital stock

standing—20,000 shares,

vice-president.

elected Treasurer in 1952.

1942.

$400,000

stock

with

came

been

the Bank since

was

of

$6,t

from

Tennessee,

common

will

holders of its outstanding common
stock of record at' the close of

outstanding—750,000
value $10.)

its

Executive

Francisco, Calif., is offering to the

Bank

stock

City,

Johnson
creased

■'

Vice-Chairman since

for

Pacific

'

•

The Hamilton National Bank

Assistant

'

as

an¬

was

of

shares,

,.

Chief

but

with

been

ber of shares

City Bank in 1938, has held the
positions of clerk, assistant treas¬

with

'

Calif.,

Vice-President

National

to $7,500,000 by a stock
dividend, effective Jan. 20. ^Num¬

Treasurer; and Maurice R. Stauf-

Ivey

member of/the

a

L. O. Ivey,

from

to

O.

1953, previously served as Execu¬

000,000

par

L.

1
;

Ivey succeeds Her¬
Ivey,
who
retired
as

as

tive

cap¬

t

shares,

.

,

by Roy A. Britt,

and

Chairman,

and

(Number

.

capital

of

15

sjs

23.

*

Mr.

D.

bert

Wis¬

common

Jan.

Officer.

Paul

Vice-President

Bank

National

First

*

Angeles,

President

of

$1,000,000 to $1,stock v dividend,

a

established
of the largest

one

election

nounced

serve

Racine,

value $20.)

The

President

-

Los

com¬

(Number,

National

from

is

and

1875

and

Bank

was

National Trust & Savings Bank of

Sagi¬

stock dividend,

of

1870.

Company

The

value $25.)

Company

Na¬

members of

National

❖

outstandin g—160,000
par

County

Santa
Barbara
the
two
bank

Chairman of the Board of Citizens
of

Bank

21.

Crocker-

independent banks in the State.

Memphis, Tennessee, increased its

day, the Board of
promoted three officers
higher rank. Leonard R. Yoder
Vice

in

i

_.

shares outstanding—60,000

the

Senior

t\t

a

Jan.

effective

Company,

Directors

to

'

$4,000,000 by

200,000

President,

announced

Trust

$12.50.)

consin, increased its

Mr. Arthur N. Jewell.

rises

com¬

$600,000

20.

National

of

become

chartered in

County

stock dividend,
(Number
of

a

directors
would

officers

of

Crocker-Anglo, which bears the
of
being California's
longest established national bapk,

;

its

from

become

members

distinction

St.

East

of¬

heads said.

capital stock from $3,600,000

The

elected, Dr. Robert H. Clymer, Jr.,

to

by

$

Trust

boy

the 25th annual meeting of share¬
holders two new directors were

Later in

at

would

Crocker-Anglo's
advisory
board,

of

Michigan, increased its

ital

Trust

and

Bank

stock

'•

'

shares,

s.-

Heckman,

tional

ft

Jan.

Second

shares

1903.

D.

capital

effective

Fidelity Trust Company,

John

Chairman

Montecito

arid

members,of the County

staff

Anglo,

con-

naw,

Wilharm, Vice-Pres¬

*

and

director since
will

staff

National

mon

as a messenger

and

of

Mr.

and

Barbara

as

Bank

the

Village, would become the

Santa

September,

1892

a

Honorary

as

$800,000

par

joined
Colonial Trust
Company, which merged with Fi¬

in

since

*

-

was

fices, respectively,
of
CrockerAnglo National Bank.- All officers

shares outstanding—64,000 shares,

dividend,

respective shareholders and

I tecito

Board.

effective

ft

delity in 1954,

in

Louis, Illinois, increased

Pa., retired after 56
of service to his bank. Mr.

years

Angeles,

the consent of supervisory aur

was

value $50.)

of

Chairman

served

First National

com¬

of

of

and

merger, County National's office
in downtown Santa Barbara, and

policy

a

McHannan

.

Bank,

(Number

has

Mr.

tiijfce

$200,000

from

stock

a

Jan.

Branches in:
india, pakistan, ceylon, burma, kenya,

to

his retirement

Chairman

1953.

mon

increased its

Pa.,

capital

mon

Mr.
London Branches:
13 ST. JAMES'S

retiring from

are

since

continuously

to

Scranton

The

urer, treasurer and

BISHOPSGATE, LONDON, E.C.2

ap¬

unification of the
take place Feb.

McGinn has been

*

'

Company

Calif.,

announced jointly
Hoover, President, of
Crocker-Anglo, and Joe D. Paxton, Chairman of the Board of
County National.
* :
'
Upon consummation of the

1957, and Howard J. McGinn. Mr.

rug.
sjl

Trust

Na¬

its recently opened office in Mon-

McHannan

living

new

a

and

r

County

Barbara,

thorities, it
by Paul E.

Bank

final

to

pursuant

Board

active

The credit card can
be used for the purchase of any¬
thing from a dinner at your favor¬

Amalgamating National Bank of India Ltd,
and Grindiays Bank Ltd.
Head Office:

The

American

Honorary

month, the individual will receive
one
bill along with duplicates of

ite

Santa

Los

will

Board

the

each

of

end

77

>/

America's

adopted by the Board which pro¬
vides an age limit for directors.

present them to mem¬
ber-merchants. upon
making
a

Mr. Yoder,

NATIONAL AND GRINDLAYS

7

Cleveland.

of

Two directors

and

purchase.

7

77

the

Bank,

voted upon by share¬

subject

Banks

the

the

from

.

Ma-

the Crocker-Anglo National Bank,

1959.

28,

of the area
will obtain personalized QUICK-

fer

City.

of

''

of

Bank

tional

Chairman
also

the

of

North

and

common

With Geo. E. Sozek Go.

on

-y, -.7. t

Robert A.

are

*

Directors

to

two

"Residents

plained,

and

Joseph F. Wittermann

directors

Gelbach,

was

Currency,

the

become

would

Cleveland,

member-merchants, Mrs. Mary G.
Roebling, President-Chairman of
They are John C. McHannan, who
Trenton
Trust
Company
ex¬
has been

City and Reading,

Incorporated and C. F. Childs &
Company.

Calif.V

and John L.; Merrill*
-:

proval by the Comptroller of the

without

member-stores

who

nessmen

Company Union
Commerce Building. Mr. Sullivan
in

Francisco,

*

of the

banks

pur¬

paying
a
premium
or
service
charge.
In outlining the plan for busi¬

&

ment firm in

San

gowan

approval by shareholders of both

will

The

effect.

into

goes

and

at their meeting on Jan. 28. After

Trenton,

pany,

nounced

L.

Bank

holders

Com¬

Trust

Trenton

the

of

7

President

proposal

Wilharm

D. Sullivan has become associated

77

.

Chairman, announced that

directors

new

Cleveland/Ohio, and Central Na¬

stores, restaurants, service sta¬
tions and other points of purchase
in

when

F.

tional

will be able to "charge it"

area

Bank

Bank.

Loring

and

estate portfolio.

ident

William

—

Texas,

Calif., one J of
leading banking insti¬
tutions, have tentatively approved
announced that the shareholders
•a plan for a merger of the County
voted to approve the Agreement National
into
Crocker-Anglo
to merge North American Bank,
Bank, subject to the ratification

a

real

and

mortgage

and- Ben

elected

were

National

Director and will remain in charge

Arthur H.

(Special to The Financial Chronicle)

CLEVELAND,

of

Bank

Houston,

.

Elliott McAllister, Bank of Cali¬

27, at the 69th annual meet¬
of shareholders of
Central

ing

Robert J. Adams was elected

him.

Pittsburgh,

with

J

•

,

'•* .* 7

J.v.v

in¬

board of the

30. His age was 66.

died Jan.

-v:...

National

Vice-President

National

tral

to

Available

Laird, Bissell & Meeds

Southwest,

Assistant to the President of Cen¬

Walter M.

Director.

a

S:

With Baxter & Go.

-

Maryland,

Austin

S.

Hopkins, Jr.,

New

of

been elected to succeed

Dear has

par

William D. Sullivan

■''

Baltimore

-

Baltimore,

Allan

;

Jersey, Jersey City, N. J., but will

accustomed to better than

figure on their investment
purchases. On the other hand, in

ft

its common capital1 stock
$3,725,000 to $4,097,500 by
stock dividend, effective Jan. 20.

a

Paul Bestor retired as Chairman

of

that

'

1

Meeting of Shareholders.

all sales slips.

becoming

broken

took

action

Annual

mid-September

tempo.

■

Chair¬

-

the shareholders at their annual
(Number of shares outstanding— meeting added two prominent Sari
Elected a Director was Oscar T. 409,750 shares, par- value; $10.)
•Francisco executives fo the bank's
.'77. #
....-;7;:"7" 19-man Board of Directors. ? The
Storch, Executive Vice-President. '.''-".7 " '

.

.

The

2.

The rise reflected
increase in
the prime loan rate from 3J/2% to
4%."
Granted, this is not what
of the year.

26

Bulletin

of the

the

Board

the

ft

Bryan," Vice

man

7'

;

fornia,

first

the

Fidelity

:

ft

from

13 N. Y. CITY

Bank.

from

in

than

ft

Treasurer.

Annual Comparison

Vice-

Executive

Mellon

of

creased

with

holdings.

ft

Randolph

of Passaic County effective March

might look at the New
1958

was

Loan

Bank

of Miami.

of the bank to First National Bank

,

While

Mayer,

President

Trust Company

&

N. J„ overwhelming¬

of Paterson,

a

interior

director

a

half

December

Bank

National

com-

policy regardless of their

A.

as

Bank,

remembered

that bank

John

First

the

of

elected

ly approved management's rec¬
ommendation to change the name

Justice Department in

here is

made

that, if the general
''recession

other

increased."

was

point

tinues to

in

borrowers

shareholders

The

report

ago.

years

the

as

Senior

Metropolitan

the

shareholders.

Also

#

stated
that "the large New York City
banks
charged
a
substantially
higher average interest rate on
loans during the first 15 days of
Bank

Reserve

In 1958
As to 1959 earnings from opera¬
-the banks' increase in such hold¬ tions, it is of course early to be
ings,
over
the
1957
year-end, venturing such predictions, but as¬
averaged about 26V2%, a quite suming a continuation out of the
Commendable showing versus the recession the banks may be ex¬
change in loan volume, as long as pected to maintain at least the
loans did not keep pace with in¬
present level of earnings assets.
vestment volume.
Further, there should be some
!• The tide of general business is further shifting into loans as gen¬
running higher, and we can get eral business becomes more active;
numerous
assurances
of
better and
this
would
help
earnings.
economic conditions from diverse This
department believes that a
sources, Federal Reserve, annual
5% to 7% improvement in oper¬
reports of banks, etc. Chase Man¬ ating earnings is a logcial ex¬
hattan, for example, stated in the pectation.
annual report that "in the face of
Bank stock prices have in the
a
slowdown through most of the
past week or two shown a little
year in domestic loans, credit ex¬
hesitation.
A contributing factor
case

of

meeting

and

For the

served

"

#

#

changed

annual

bank's

the Board.

to

the

at

John Hazen White were

Ill, and
elected

he

years

Vice-President
Officer of

This Week—Bank Stocks

of Miami.

Bank

three

past

Ore.,

directors

named

elected
16

six

officers

of

new
and

"

authorized

581 &.

Number

189

Volume

dividend

stock

10%

a

The Commercial and Financial Chronicle

.

.

Continued

$687)

from page 16

that the Islamic Middle East is in

at the annual meeting Jan. 20, ac¬

the throes of

cording to E. C. Sammons, Presi¬
New

Staver.

the

ol

L.

of

directors include
B.

board

Roy Jarman,

members
Vice

and

President

-

Executive Trust Officer and head
of

tiie

W.

T.

bank's

M.

Wilson.

Robert B.

capital
their

department;

Howard VolWarren, Jr., and

cannot

Staver

made

was

head

since

1925.

Ad At
ked

the

;

time,

same

advanced

was

Vice-President
and

Ralph

C.

/

Win¬

H.

Assistant

from

Vice-President

to

Shumm

H.

;

moved

from assistant trust officer to trust

officer.

Mr.

banking

began

his

in Oregon City in

career

1920 and
1930

Winkel

joined U. S. National in
the

when

West

Coast

Na¬

it

to

This problem has

physical, ideo¬

sordid

logical, political and ethical facets.
Physical

(a)
ity:

By

place

this

the

I

absorptive

in

mean

Secondly,

XJ.

acquired.

was

S.

National

as

Officer in

Trust

He

the time

at

the merger of the Commercial
Bank of Oregon and U. S. Nation¬
of

posts, telegraph, telephones, roads,
railways, port facilities, electric¬
ity, water, etc.
-

al.

Previous

included
with

banking

three

the

and

experience
half

a

Commercial

years

Bank

and

six years

with the Pacific National
Bank in Seattle, Wash.
Umpqua National Bank, Reedsport,

Oregon,

increased

its

com¬

capital stock from $100,000
$200,000 by a stock dividend,

mon

to

effective

Jan.

22.

(Number

shares

outstanding—2,000
value $100.)

par

■J

The Directors

Limited,

of

shares,

of Midland

Bank

London,

England,
an¬
with regret that Sir Alex¬

nounce

ander

Roger, K.C.I.E. and Lieut.Sir
Albert
G.
Stern,
K.B.E., C.M.G., D.L., have retired
Colonel

-from

the

of

Board

the

bank

and

that of Midland Bank Executor &
Trustee

Company
> Alexander
Roger
;

Limited.
Sir
had
been
a

Deputy-Chairman since
V-?

Midland

England,
Right

1948.
.'

#

*

■(

•:

Bank Limited, London,

that

announces

Honorable

Lord

The

Blackford,

D.S.CX, J.P.. D.L., has been ap¬
pointed a Deputy-Chairman of the
.beard of directors of the bank and
.of

Midland

Bank

Executor

and

Trustee Company Limited.
*

V

The Bank of Hawaii, Honolulu,

,

?Hawaii,
Board

Jan. 22 expanded its

on

of Directors.

Stockholders

of the bank at their annual meet¬

ing increased the number of their
Board of Directors from
..

lix

Directors

new

two

ana

retiring.

are

frcna the Board
and

V.

dent
of

E.

and

16 to 20.

elected

were

Retiriug

U. J. Rainalter

are

Morton, retired Presi¬
President, respectively,

the Hawaiian Trust

Company,

Limited,
New

Directors

Cornelius

elected

are:

C.

Cadagan, Hung Wo
Ching, Lowell S. Dillingham, Har¬
old
C.
Eichelberger, Ralph B.
Johnson, and L. Ashby Wills. '
Also announced at
meeting,
the - Bank

the

Share

Owners

annual

of

,

Hawaii

authorized

the

Board of Directors to declare and

pay a stock dividend of 27,500
shares of the authorized but un¬
issued
pro

capital stock to

at

for

bank,

rata, to holders of record at

the close of

is

the

the

each

275,000

business, Jan. 5.

rate
10

of

one

shares

shares

new

held

of

This
share

of

capital

the

stock

issued

and outstanding.
It fur¬
ther authorized the Board to issue
and

sell

full

shares

fractional interests

the
at

declaration

public sale.

representing

resulting from

of

stock

divided

The stock dividend

is declared and payable as of Jan.

23,

1959,

out

of

the

undivided

profits of the bank.




by

conflicts

which

established loyalties:

head

of

the

chieftan

or

The

socialist

semi-socialist

or

concept permits

a measure

of tem¬

The

old way

world

any

:

actions

which capital investment
brings in its train; customs clear¬

activities

industrial

This

includes

at

least

a

erected

the faithful.

the

of
code

a

rigidly

nationalism

set up
to the

it

of

not

Koran
rules

so

vine

thrive

in

a

climate

of

reluctant

'

believer

from

Based

grave.

the

as

theocratic
not

or

society

to

the

encouraged

Egypt As

the choice

Here is

believer

Investment

as

security of life and

Law

of

one

kind

complaint, and

was
a

sus¬

sensu¬

been

vate

There is

or

no

reason

to

upper

namely:

from this disastrous
lies in industrialization,
and primarily in the attraction: Of
foreign industrial capital. The ha-r
tionalization of the Suez Canal
Company (the question of legality

aside), followed by the sequestra¬
tion

lower echelons of the civil service

and the stories of how

(I.) That "foreign capital" is investors
waiting at the door, panting for reaucrats
admission.

plans

harassed

were

out

prospective

their

of

by

bu¬

investment

are many.

(II.) That this eagerness to enter
such that it will readily ex¬

be

usefully made into a tool
enforcing in¬
ternal ideological or political phi¬
losophies. Many, if not most of
them, establish governmental bod¬
can

•

of maintaining and

ies

or

commissions

which

to

ap¬

plication must be made by pros¬

pective investors, and which have
the function of enforcing not only
legitimate business purposes, but
also ideological preconceptions.
(c) Obstacles which spring from

ideological

concepts:

These

con¬

Revolution in the Middle East
choice

The
as

the

of

Middle

East

laboratory of research into
nature
and
mainsprings of

our

the

obstacles is

these

this

logical. It is in
passions are
and
shot
through
with
of violence, that the basic

area

fierce
flames

conflicts

that

of

the

our

era—between the

East and the West,

the haves and
the have-nots, the
colonial and
the anti-colonial forces, the clash
between the ancient patterns of
living

and

the

modern, the deplague all

cepts find their expression in leg¬
islative and administrative poli¬

visive

cies and color the reaction of the

nations of recent sovereignty—are

community

foreign

to

capital.

I present

would like to discuss them in two

parts—firstly,

a

socialist or semi-

forces

in

which

their

manifestations.

most

The

extreme

thesis

I intend to submit at .this

which

point is

prop¬

impending Egyptianization of all foreign banks
and insurance companies has ei-

fectively and for

a

long time to

poisoned the climate of for¬
eign private investment in Egypt.

come,

The

sequestration of British and

French banks and insurance com¬

panies, apart from all this, was an
economically negative gesture,
these

since

derived

institutions

their greatest usefulness from

Detached from their par*

world.

ents, they are empty shells. The
price paid for these ephemeral
satisfactions in terms of the na¬
tional economic interests and of

In the Middle East
we can

the national standard of

basis classifica¬

too high.
I

(a) Nationalism: Long op¬
pressed, politically .by the colonial
powers and old empires, ,and spir¬
itually by the fetters of out-dated
customs, the nations which have
shed these oppressions and these

the

living is

,

dwell

cause

on

Egypt so much be^

the impact of its

investment

policies

"climate"

is

co-exist, but they are not the same.
I define patriotism as a deeplyrooted sense of belonging to a na¬
tion and being willing to sacrifice
for

it,

be

money or

it one's

one's life.

service, one's
It is not the

"physical fact of living within cer¬
tain boundaries that makes a per¬
son

a

patriotic citizen.

(b)

.

Risks of International and

Internal

every

Conflict:

young

Inherent

iq.

sovereignty are the

develop
political and
economic groupings, between re¬
ligious and linguistic sectors, be¬
tween regional interests and, most
dangerously, between the haves
centrifugal forces which
within

eign political and economic power
is the principal component, is often
spoken of as constructive force,
one out of which future strength

and

it—between

have-nots—which in the

the

Middle
owners

East often means land¬
on the one hand and share
on

the other.

We only

will grow.

croppers

it

have to look back to our own

There is no doubt that
gives to the individual a sense
a

on

not

only local. While on the subject of
nationalism, it is well for us to be
careful not to confuse it with pa¬
triotism.
The two emotions may

which dislike and distrust of for¬

of exhileration and

the

they were branches of
powerful foreign companies, and
acted as a pipeline between Egypt
and
the capital markets of the
that

fact

In any event, an invitation
hedged with the threat (however
change the total freedom of move¬ distant) of expropriation is hot
fetters expected their new-found
ment which it now possesses in
generally appealing.
Several of
freedom magically to bring hap¬
the dollar area, for a "blocked ex¬ t h e
underdeveloped
countries
change" position in the recipient have paid a high price, in terms piness. The dismal failure of these
country so long as some modest of the standard of living of their high hopes has brought on the
searching for scapegoats. The dis¬
assurances are given of permitting
people for their sterile adherence
remittance oi' some limited per¬ to
covery that the new sovereignty
a doctrine which
they are not
centage of profit and gradual re¬ even able to practice, since a so¬ has brought neither power, nor
prosperity, nor dignity has
patriation of capital.
(It is as cialist
society
presupposes " the
though a new bank opened its possession by the government of sparked distrust and dislike, of
foreigners who, because of past
doors, and solicited deposits on the technical
and
capital resources
domination, exploitation and in¬
promise that the depositor could which are simply not there.
trigue and also because of the
get a certain part of his morjey
Obviously the main obstacles sharpening conflict between the
back each month. Obviously, such
are of a deeper and more funda¬
a
new
privileged
and
the underprivi¬
bank would get deposits
mental nature, lying in the realm
leged are still considered as the
only if it offered very unusual ad¬ of
spirit. We shall address our¬ natural enemy.
vantages in other directions.)
selves to these deeper obstacles.
The passion of nationalism of
(III.) That an investment law
is

and British

the

and

.

Against this background
three

of French

erties

Analysis of Investment Risks

.

escape

squeeze

illiterate, miserable

of the population.

steady drop in the standard

a

hope of

tions of investment risks:

mass

the great

national}*

investment climatg:

on

&nd foreigners alike, that the main

crust of the educated class

discuss the

and

Example

an

example of

of living. There is general agree¬
ment among informed Egyptians

doubt the

sincerity of these invitations, nor
another, and a sorrier and more
the
growing realization in the
pathetic story of total incompre¬
higher echelons of political lead¬
hension
of
what
makes
capital
ership in many underdeveloped
flow, it would be difficult to
countries of the burning need for
imagine.
•*
foreign capital. But this realiza¬
Almost all of them are based on
tion
has
not
always spread to
a
number
of false
assumptions,
,

advance¬

Egypt has a problem of overV
population.
The high birth-rate
has doubled the population in 50
years,
while the arable area, a
narrow strip along the Nile, has
increased only slightly. There has

seek a better way of life. He bore
his misery, and the erosioh of the
natural
and
human
resources,

without

an

isjn's effect

or permitted to

ideological distrust of pri¬ ously described paradise which
capital in general is com¬ will reward his submission to the
pounded by specific and histori¬ will of God.
The Sharia, geared to the prob¬
In the fourth place, availability cally understandable specific dis¬
of foreign
of labor in the required numbers trust
private capital lems of tribal living, could not
and of the requisite character.
rising (in the words of one of the meet the challenges of modern
leaders
of
the
Kemal Ataturk in Turkey
underdeveloped life.
The mere recital of these fun¬
"from past association of undertook to sweep it aside and
damental physical needs of indus¬ world)
abolished by decree all aspects of
trial
capital
investment
would foreign capital and control with
the theocratic, Islamic way of life.
alone account for the sluggishness foreign domination of the econ¬
Because of the completeness of his
of the flow of such capital into omy of the country." Another of¬
reforms the adoption of Western
ficial
statement
from
this
area
underdeveloped countries, which
said:
"If
any
foreign concerns value standards by the Turks was
are precisely the ones which most
come
to be compulsory acquired, made easier, and the process of
desperately need it, and are least
government would provide rea¬ adaptation to the 20th century was
prepared to cope with it.
sonable facilities for the remit¬ telescoped into a couple of gener¬
However, it is easier for Amer¬
tance of proceeds"; also that: "If ations. While the intelligentsia of
ican capital to make adjustments
Arab
world
is also largely
and when foreign enterprises are the
and compromises in this field oi
compulsory acquired, compensa¬ emancipated and influenced by
physical needs, than it is for it to
tion will be paid on a fair and Western culture, there is no will¬
adjust itself to obstacles of a more
ingness to challenge tradtion in
subtle and less calculable charac¬ equitable basis'^ and also:^"Gov¬
ernment will not object to
Hence
for¬ the manner of Ataturk.
ter which
compose
the spiritual
transition
is likely to be more
and administrative investment eign capital having control of a
concern
for a limited period, if painful and prolonged. A contrib¬
climate.
it is found to be in national in¬ uting factor to this difficulty of
(b) Investment Laws: Each cap¬ terest. ..."
transition is the practical lack of
ital-hungry country has passed an
communication between the thin
rity, as well
property.

economic

mass

other immutable and not sub¬

The

modicum of administrative integ¬

the

as

gated disaster for the underdevel¬
oped nations of the world.

the

tained by the promise of

and temporary tolerances.

emo¬

for broadly

it

to

of alternatives. Within this closed

was

far

ment of the

on

ject to question

being

that

So far as investment climate

is concerned, and even

con¬

historic

for
or

is

and

.

'revelation,' it was of di¬
origin, and hence superior to

cradle

the

of

public

sector

search

a

concern.

"climates"

of the people is
concerned, the practice of extreme
nationalism has been an unmiti¬

life

was

with

satisfactions

our

investment

tion.

was

of

But

backgrounds of this

duct, the Sharia, which regulated
the

the

and

produces.

with

On the

economic life into so-called "pub¬
lic"
and
"private"
sectors,
the
child

which

authority

between the glorious

of life in the Is¬

was

shocking

(The

ego.

no

family, to the tribal
sheik, and to the

with the requisite volume of trans¬

porary

ancient

to

disciplines.

Khalif of all

for.

can

with

relate

power,

or

or any

comparison
past and, the
shabby present, and the grievances
values against colonialism.) We must ad¬
mit the historic inevitability of

they

lamic

longer

tolerance of private capi¬
tal, primarily on the fringes of
In the second place, the "social economic life, and with the sword
overhead capital," such as school of nationalization poised over its
buildings, hospitals, housing, po¬ head should it become excessively
table water, etc.
successful or important.
That is
In the third place, a functioning the philosophy which underlies a
civil service, capable of dealing frequently practiced
division of

levels

duces exultation and nourishes the

expulsion

In the meanwhile
the people of the area are shaken

and

overhead capital"—public utilities,

call

stable

and

plans.

first

"economic

was

Assistant

an

1954

a

torical process.

ning, with a system of economic
priorities incorporated in such

capac¬

the

anti-sociai.

new¬

prolonged his¬

new

a

the

exercising

through
sequestration or
other demonstra¬
tion of strength and fearlessness
vis-a-vis the outside world, pro¬

nationalization

value, and that the

of

level, .also,

national

a

very process of
found sovereign

ethical;

and

and closely related to it, is the
concept of advance national plan¬

physical problem:

so-called

and

the darling
and the future hope of the
ance,
issuance of licenses, visas
named
assistant cashier in
1946
and permits, handling of law cases, nation. Unfortunately, like all hu¬
and
Assistant Vice-President
in
man
tax problems and the entire com¬
beings and human institu¬
1956.
He
heads
Personnel
and
plex of governmental functions on tions, private capital needs affec¬
Operations.
Mr. Shumm joined the central
and local government tion and acceptance and does not
tional

of

emergence

structure will be

of

private capital and
which tends to consider the profit
motive as in some way mean and

Investment Climate

of

the trust department Jan. 1, suc¬
ceeding Robert M. Alton who re¬
tired
under
provisions
of
the
bank's
retirement
program.
Mr.
Staver has been at U. S. National

get

socialist concept which is basically

suspicious

and
way.

To start with the

Mr.

economic

that break-down of ancient ways
of life has
undermined
ancient

standards

lor

flow

Triplett, Jr.,

Frank

lum,

trust

political,

Problems of Investing Abroad

dent.

On

revolution, social,

a

*35

Civil
of

War to realize that the process

semblance of

shot in "the arm which the development of a unified citi¬
misery more tolerable. zenship is an arduous one. The
When excited crowds of students countries of the Middle East are
and school children and plain city inevitably criss-crossed with di¬
mobs
march
together, carrying visive forces which occasionally
find reflection in outbreaks of vio¬
banners and chanting
slogans,
lence—of which we had: recent
shaking fists and carrying their
examples in Iraq and Lebanon.
heroes on their shoulders, there is
Stepping beyond the Middle

strength,

a

makes his

.

.

undoubtedly

a

rewarding feeling

nrt

of power and of

unity.

nnriP

36

)

56

The Commercial and Financial Chronicle

(688)

Continued

from

which

35

page

available

not

are

for this

industries and

sensitive

less

Problems of Investing Abroad

more

sanction of blood shed in their de¬

able

fense through the centuries.

♦sprouting in

plain view—notably
the oil-producing coun¬

tries and the oil transit countries,

is

betting at

favorable

the

to

turing

Hence, within the Arab world,
the seeds of possible conflict are
between

it

odds

of

West

who

those

those

and

Western

look

who

orientation

the

to

consider

to

be

a

be¬

a

trayal of the dreams of Pan-Arabism.

There is the

risk

stressed

are

illness, the function of the
is

from

margin, operating together, act as
an
insurance
policy and enable
the extractive capital to disregard
which

have

we

the

The

point I

these
resent

—- +iw
making is that

—
am

strains
stiams,

divisive
livisive
divisive

which
wnicn

icp

eign investors, are inherent in the
historical

process of establishing
nations, and are not a passing
phase, or a superficial phenome¬

new

which

non

could

we

paper

over

conditional

*s

ity

of

thc

would

are

basic

tive

ni

order

of

the

is

$21/2

of and

use

resources.

The

technical

N.

is

hope in this
is

tant

■.

which it-

friends

the

and

given

the

by

elements

of

otherwise disturbed

Almost

qually impor¬
speaking by the

plain

-

of in¬

one

misdirection

assistance

among

situation.

billion.

-

by the United States
U.

better

the

of

underdeveloped

matic

sum

up, extractive industries
from
positions of strength

understanding
requirements

the

of

of

cli-

private

capital and
of
the
inestimable
benefits which it could bring.

(c) Risks Arising Out of Differ¬
in Value

ences

Standards: On the

Continued

from

political

plane, as we saw, the
pursuit of political objectives takes
precedence, within the frametvork

inflamed

of

those

over

nationalism,

which

values

appear

paramount to us, such as economic
and higher standards of

progress

living. The excessive value placed
on
prestige factors also distorts
-economic thinking.
For instance,
there

is

general

steel mills in

hankering after
primi¬

cient pyramids, as for instance the

Aswan

in Egypt.
On
plane, differences
J in value standards are many and
must be carefully considered by
the

Dam

individual

would-be investors.

For instance:

The tendency to regard business
battle of wits, and to conduct
it under the rules of warfare.

as a

Secretiveness and lack of team¬
work.

Prestige
of

social

factors
status

and

problems

caste, among
unwillingness of edu¬
persons
to perform many

others

or

the

cated

needed

services.

Differences

The State oi Trade and
half of

economic

in¬

centives.

value standards.

allow for the effect

not

could

threaten

foreign capital invest¬
solely on the ground that it
is foreign.

ment

Special

Position

Invested

in

of

Capital

that occurred in 1956 and
of

to

Extractive

under all climates has sound
reasons

industry

216

eco¬

not

shared

by

It
no

buy its

other

way

industry

.material

rewards

country

are

such

to

the

that,

in, in

can.

a

The




sa-

operations

are moving upward
sharply and may
during the first half, "Steel" magazine re¬
Second quarter operations may average 85% of

2.

■

'

capacity last week. But, even then, output was less than in¬
coming orders for tonnage. Orders were the best in about two
years. Several mills booked tonnage in excess of capacity.
Mills turned out 2,212,000 net tons of steel for ingots and

castings the best of any week since June 10, 1957. January's output
about 9.3 million ingot tons, highest in 19 months. Rates were
up in ten of "Steel's" 12 steelmaking districts.%
V ■
Sheet mill products are in strong demand in all sections of the
country. Chicago steelmakers are booked through the first quarter
on cold-rolled, galvanized, and enameling stock.
They expect to
be sold out through June. At Philadelphia deliveries on cold-rolled
sheets are running into late April and May.
Hot-rolled products, readily available in the past, are also
was

feeling the squeeze. Eastern mills are quoting six weeks' delivery.
Coated products have been on allocation for several weeks, and it's
that cold-rolled sheets are next.
Some mills will slap
controls on stainless sheets and strip during the second quarter.

believed

Demand for

hot-rolled

and cold-finished

bars

is

1.2%

below the

1956
a

record

of 8861,609,508.

Permits in the

valuation of $6,048,396,476 compared with

of

34.2%

over

the

year

ago

$47,061,897, and

a

in

216

centers

valued

There

are

Steel, copper,

brass, and aluminum will feel the upswing...
r
Hot-roller bars, hot- and cold-rolled sheets, strip, and plates
are

the

leading items, "Steel's" survey of mill product buyers shows.
are leading the trend.
Buyers agree that their

Small fabricators

buildup will far exceed the normal quarterly pace.
The metalworking magazine predicted
that first

industry earnings will climb to prerecession levels.

half steel
Early financial

reports indicate '58s last quarter brought the best net profits
since early 1957.
New strength is developing in scrap. "Steel's" price composite
steelmaking

scrap

advanced $1 last week to $41.67 a gross ton.
straight weekly increase despite sluggish

This marked the third

mill buying.

Steel Production
American

Iron

and

at

Steel

19-Month High
Institute

announced

that

the

operating rate of steel companies will average *140.4% of steel
capacity for the week beginning Feb. 2, equivalent to 2,256,000
tons of ingot and steel castings (based on average weekly produc¬
tion for 1947-49) as compared with an actual rate of *135.6% of
capacity, and 2,178,000 tons a week ago.
Actual output for Jan. 26 week was equal to 76.9% of the
utilization of the Jan. 1, 1959 annual capacity of 147,633,670 net
tons.
Estimated percentage for the week of Feb. 2 is 79.7%.
For the like week a month ago the rate was 129.8%
and
production 2,085,000 tons. A year ago the actual weekly production
was

placed at 1,457,000 tons or 90.7%.

gain of

at

$396,220,056,
over the $344,919,167 reported in Decem¬
ber 1957, but the level was
7.3% below the prior month's total
of $427,192,306.
were

up¬

replenish their inventories. Although flopds played havoc with
steel production in some areas, they will contribute to the plate
resurgence.
Many bridges and barges are in need of repair.
A "Steel" survey shows that a large segment of steel buyers

*Index

outside

the

on

swing, thanks to automotive buying.
Plates are perking up moderately in the Midwest as fabricators

7.9% from the $58,563,962.
for

of

production is based on average weekly

production

1947-1949.

for ah increase of 14.9%

Steel Demand Impels Use of
Steel

users

according

to

are

"The

Marginal Facilities

jockeying for position on mill order books,
Iron Age," national metalworking weekly.

are doing their best to fit
everybody
ever-tightening rolling schedules, but it is not easy.
"The way orders are
pouring in, it is as though someone had

the

flood

gates,"

a

harassed

Age"

amounts

said
to

more

steel

sales

executive

said

mills

"screening" new orders in
of allocation. The metalare
trying to'give all
before a possible steel strike

are

informal system

an

working weekly explained that the mills
steel
next

users

July

"We
one

a

chance

to

stock

up

1.
are

fitting

some

customers

in, with

a

shoehorn,"

said

mill.

"We can't always give them what
they want, but we're
putting them on the rolling schedule in what open SDace is still
available."
"Iron

or

Age" said most buyers are asking for delivery by May
earlier—and with good reason. It added that even the mills

reluctant to take orders for June
delivery. The reason for this
is the fact that order
carryovers from May to June will be so heavy
that June orders will be washed out.
The
to

metalworking weekly said that if order volume continues

mount

the

mills

could

be

January Auto Output 11% Above Year Ago

operating at near-capacity in

the

in the U. S. will top the
11%, while truck output will improve

January passenger car production
same

"Iron Age" said the mills
into

recipient
once

-

mark

the 1957 total

are

can

,'

mill

The

outside cities had

"Iron

others:

(1)

over

$5,353,161,860 in 1957, for a gain of 13.0%.
Building permits issued in 217 cities in December were at the
highest level for any December on record. The total was $459,395,545, up 17.2% from the $391,981,064 of a year ago, but 5.4%
below the $485,756,268 of the
prior month.
The December New York
City building permits values were
up sharply from December 1957.
The total was $63,175,489, an

peculiar to extrac¬

and

increase of 14.9%

an

New York City building plans filed
during 1958 rose 30.6%
$851,552,782 from the $652,001,448 in 1957, but the 1958 total

what

unhealthy by other forms of
private investment capital. This
unique
willingness
to
operate

mill product manager, "total
100% of sheet capacity. Obviously,

one

of

$6,005,163,308.

was

"normal"

a

Steelmakers boosted operations a spectacular 5.5 points to 78%

on

building permits for 217 cities for 1953 amounted
$6,899,949,258, a record level, reports Dun & Bradstreet, Inc.
This was a gain of 11.3% over the prior record of $6,196,884,821
to

ered

way

major wage adjustment

this week.

Industries

tive

any

Building Permit Volume for 1958 Set Record

opened

This type of capital flows
freely
snd eagerly into areas in which
the investment climate is consid¬

nomic

prices of

on

Accordingly,

which

says

90%

capacity.

The volume of

these countries the emotion of
nationalism
no
longer
has
the

aspect

situation,"

the

cross

ca¬

in basic industries later this year.

in

aggressive

because manufacturers'

normal and

are

pacity to produce such goods appears able to meet foreseeable
demand, Mr. Lazarus explained. He added that his forecast did

Permits

Turkey and Israel, and to a
lesser extent,
Lebanon, have
adopted, to a large extent, West-ern

industry

1958, won't bring price boosts because department stores'

inventories of goods

increase

in

scrambling to

are

they are trying to
products. In sheets,

process

available

indications that the buildup will extend to midyear.

the midst of

economies, or on monumental
projects of the character of an¬

steel,users

In the
of

will add to their inventories in the next three months.

tive

High

7:

4

page

shares

Steel

>

2a" world in the effort to bring about
a

high order and
large working capital.
To

the

is rather

,

COUntry

Wh

n

a

it

adequate
of

upon the capac-

tnf.iin,v.ni

; i«nt
talent of

when

Steel Mill Operations May Cross 90% Mark in First Half

of

is

which

The problem

case of the

nationalizing

that

money or

conclusion

shortage of

resources

on

-

i1fi*

only

up

second quarter two-thirds.

a

this

ported Feb.

in oil royalties alone
over
$1 billion annually, and its
total receipts in foreign exchange,
including exports and foreign aid

,r.

deal

By diplomatic finesse

the

in

deviations

on

dle East gets

Mexican nationalization. And even
*Vn "d Z™

rcn-

business risk for the for-

a

instance

*ar

dispute.

focus

main retarding element. The Mid¬

the advantages of nationalization
long-standing are limited to the local market,

Kashmir

to

economic health.

natural

_

dangerous

medium-size

beams is much stronger.

sym-

banker

and Tunis. Outside this immediate
area

of

toms of

or

festering Arab- be fatal to
other industries.
conflict, the bitter problem
(4)
Because
the
world-wide
of the Arab refugees, the historic
friction between
Turkey and marketing and distribution facili¬
ties arc largely controlled by the
Syria. There are conflicts between
Egypt and the Sudan, and Egypt major oil producing companies,

and

started

,

the picture

physician who studies the

a

Israel

y

unavoid-

elements

and

are

is to that extent unbalanced; Like

nationalization

conditions

is

one-sided. The

a,:)ly

manufac¬

presentation

The

climatic

vast
di¬

estab¬

Some Conclusions
This

is not the

Between

a

and

furnaces

something's got to give."
"Iron Age" said more steel proaucts are entering the hardto-get category. These include hot-rolled sheets and strip, and
plate. Plate has been on allocation in the Midwest for several
weeks, but it is now approaching that stage in Pittsburgh. Mills
there are telling customers plate will be on allocation in the
second quarter.
/
>
Still relatively easy to get are oil country casing and tubing,
linepipe, and rails. Standard structural shapes are showing im¬
provement but are on the easy side. Demand for wide flange

lishments.

The diversification of areas
operation, coupled with largo
profit margins, covers the un¬
of

in

funds

and

These

instance, they are trying to boost their tonnage from
"In

which

manufacturing

Thursday, February 5, 1959

necessary.

demand adds up to more than

investment

the

from

comparable

versified

(3)

risks

flow

mills.

"normal"

their

one-third to

and

diffused

number of medium-sized

of

usual

for

.

Marginal melting furnaces—the ones that are not
newer furnaces—are being brought into produc¬

Mote smallincrease

uneven

are

influences

widespread

service capital.

or

enormously

would

avail-

of

the

to

vastly

those

than

investor

impacts

several

at

.

the

as

protect their inventory position.

arid, in any event, not comparable

The
present
material
rewards
from oil to countries such as Saudi
Arabia, Iraq or Iran are so important that their economic developrisks of international conflict are ment
and
even
(in the case of
also
an
inevitable corrollary of Saudi Arabia)
their very existthe political immaturity of newly ence depends on them,
independent nations, whose rela(2> The profit returns to the
tions with their neighbors have extractive
industry itself are such
that

cultural

and

language groups in India and CeyIon, in regional rebellions in Indonesia, in internal upheavals in
Burma
and
Pakistan, etc.
The

by history and
whoso borders do not yet have the

tion

try, the money inflow in the form
of taxes, royalties and other dis¬
bursements of the oil companies
is the basic one. The managerial

they are not easily disarea, the internal insta- vored,
I>ility inherent in recent sover- pensed with, except on a few oceignty has been coming to the sur- casions whre
nationlist
passion
face here and there—in rioting of overcomes economic self-interest,

efficient

it becomes absolutely

advantages to the recipient coun¬

Eastern

not been stabilized

so

are

Of the

climates.

to

second quarter.

other

to

reason

.

month last year by

19%, "Ward's Automotive Reports" said on Jan. 30.
The statistical publication estimated the nation's factories will
turn out 545,286 cars and

97,655 trucks in the month compared to

totals of 489,357 and 81,802 in January, 1958.

Although the passenger car rise is significant, said "Ward's,"
it is not
the

year.

great as manufacturers had foreseen at the start of
Original plans had called for 595,000 automobiles in

as

January. They fell 50,000 units and 8% below the goal. The 97,655
trucks estimated for the month corresponded with the forecast
made at the

beginning of January.

"Ward's" attributed most of the car production loss to

Chrysler

Corp.'s assembly problems. Since mid-January, production efforts
of the corporation have been limited by a glass shortage stemming
from thc Pittsburgh Plate Glass Co. strike.
Chrvsler car operations this week, "Ward's" noted, consisted of

three-day work at the De Soto-Chrysler plant and Imperial fa¬
cility in Detroit. Dodge Truck in Detroit ran five days.
"Ward's" said this week's industry output dropped to 119,197
cars from 126,843 last week.
Truck volume was placed at 24,525
compared to 24,475 last week.

International Auto Show Opens in May
first
international auto exposition inviting the
public to drive as well as view automobiles will be presented by
America's

<

189

Volume

Number 5818

.

.

.

The Commercial and Financial Chronicle

Roosevelt Raceway, Inc., at its

stadium in Westbury, Long Island,

Known

World

as

Car Show

feature automobiles of many

'59, the nine-day exposition will

nations. Visitors will have an oppor¬

tunity to inspect the newest models on the exhibition floor and
then test-drive demonstration
on a halt-mile track that is

traffic-patterned by safety engineers.
A

special

demonstration area, with a course
driving, will also be made available.

hard-surface

designed for sports

car

Many special attractions will be presented as entertainment,
and will include precision

driving, demonstrations of safety

on

the

highway, handling of cars in emergency situations, and sports car
driving techniques.

distributed by the electric light

The amount of electric energy

industry lor the week ended Saturday, Jan. 31, was
estimated at 13,151,000,000 kwh, according to the Edison Electrie
Institute.
Output the past week was below the level of the
power

preceding week.
below

kwh.

,

the week ended

For

of

that

the

Jan.

output decreased

31

previous week,

but showed

a

gain

of

Carloadings Drop 5.5% Below Preceding Week
Loading of revenue freight for the week ended Jan. 24 totaled
553,845 cars, the Association of American Railroads announced, a
decrease of 82,409 cars or 5.5% below the preceding week. The
total for the latest week reflected an .increase of 2,757 cars or 0.5%

corresponding week in 1S58, but a decrease of 111,900
16.8% below the corresponding week in 1957.

above the
or

Lumber

shipments of 472 mills reporting to the National Lum¬
below production for the week
ended Jan. 24. In the same week new orders of these mills were

amounted to

production.
Unfilled orders of reporting mills
41% of stocks. For reporting softwood mills, unfilled

orders

equivalent to 20 days' production at the current rate,

above
were

year-to-date, shipments of reporting identical mills
below production; new orders were 7.4% above pro¬

For the week

ended Jan. 24, as

compared with the preceding

week, production of reporting mills was 0.3% below: shinm^+s
were 1.5% above; new orders were 3.4%
above. Compared with

corresponding
2.4%

was

above;

7.7%

were

their orders for rice anticipating the Lenten season.
rise in sales of rice to exporters occurred.

in 1.958, production of reporting mills
shipments were 0.9% above; and new orders *
week

above.

Mild Rise in Business Failures Noted
industrial failures increased moderately to
the preceding week,

,!

Commercial

and

822

in the week

ended Jan. 29 from 296 in

& Bradstreet, Inc.
Despite this rise, casualties
slightly below the 326 occurring in the similar week
of last year. However, they were above the 320 in 1957 and 1%
higher than the prewar level of 318 in 1939.
reported

Dun

remained

All of the week's upturn was

concentrated among small fail¬

involving liabilities under $5,000, which climbed to 58
the previous week and 41 a year ago.
On the other
hand, failures with liabilities of $5,000 or in ore dipped to 264 from
266 last week and 285 in the comparable week of 1958. Thirty-one
ures, those
from 30 in

the failing

businesses had

liabilities in excess of $100,000 as

against 37 in the preceding week.

Retailing

and

commercial services accounted for all of the
The toll among retailers increased to 159

rise.

week-to-week

service concerns to 31 from 20. In contrast,
manufacturing failures fell to 49 from 61, wholesaling dipped to
31 from 32, and construction held steady at 52. Fewer businesses
failed than last year in manufacturing, retailing and construction.

from 131

and among

But, service and wholesaling tolls exceeded their 1958 levels.

geographic regions reported higher
with the most noticeaole increase in
North Central States, up to 57 from 37. Mild upturns

of

Six

the

nine

major

casualties during the week,
East

the

prevailed in the Pacific States where failures rose to 60 from 54
and in the Middle Atlantic where they edged to 117 from 116.,

the previous week appeared in the New
England, West North Central, and Mountain States. While mor¬
tality remained below last year's level in four regions, five regions
suffered more casualties than a year ago.
The

oats

A moderate

only

dips

from

of

the

Cattle receipts in Chicago rose

prices

steers

on

somewhat from

substantially during the week
down somewhat; trading was down

were

the preceding

week. There was a slight decline
hog trading, although the salable supply rose appreciably.
Hog
prices were unchanged from a week earlier. Wholesalers reported
a dip in lamb prices reflecting
a drop in trading.
Lamb receipts
were up slightly during the week.
in

Cotton trading on the New York Cotton Exchange was close
to the prior week and prices were unchanged.

Exports of cotton
during the week ended last Tuesday were estimated at 82,000
bales, compared with 75,000 a week earlier.
For the season
through Jan. 27 cotton exports came to about 1,568,000 bales as
against 2,810,000 during the comparable period a year ago.

Although
retail

trade

floods

and

that

below

Despite Adverse Conditions

weather in

bad

of the

some

areas

held total*

prior week, volume in the period

ended Jan. 28, was moderately
noticeable
year-to-year gains

higher than a year ago. The most
prevailed in women's apparel,
furniture, and linens. There was another slight advance in sales
of new passenger cars and volume remained over, last
year,,,'.ac¬

'

" '

"' •""

The total dollar volume of retail trade in the week ended Jan.
28

was

1 to 5%

higher than

a year ago,

according to spot estimates

by Dun & Bradstreet, Inc. Regional estimates varied
comparable 1958 levels by the following percentages:
Pacific Coast +4 to +8; South Atlantic and East South Central
-f'3 to -f-7; New England, Middle Atlantic, and Mountain -f2 to
+6; West North Central and. West South Central +1 to +5; East
from

the

North Central —6 to —2.

by continued clearance sales promotions, shoppers
buying of women's sportswear, suits, and cloth coats
close to the prior week and appreciable increases over last year
occurred. While interest in men's apparel fell from a week earlier,
sales matched those of a year ago; best-sellers were suits and top¬
coats.
The call for children's clothing faltered during the week,
but volume - in'^oys' slacks and sports shirts and giilS"' sweaters
their

dresses

store

Furniture

volume

over-all

but
1.958

close

remained

sales
was

last year.

to

reported
up

declined during the week,
from the comparable

moderately

period; consumers were primarily interested in bedroom sets

Interest in hi-l'i sets and television
during the week, but purchases of refrigerators
and automatic laundry equipment were sluggish. Total appliance
volume was down slightly from last year. A slight year-to-year
gain occurred in sales of linens, while the buying of draperies and
floor-covering declined.
There was a slackening in food sales during the week. Declines
in dairy products, fresh produce, fresh meat, and poultry offset
increases in canned goods and some frozen food products.
and upholstered merchandise.
sets

moved

up

Department Store Sales Up 5%

above the like

5%

In the preceding

period last year.

week, Jan. 17, an increase of 5% was reported.
ended Jan. 24 a gain of 4% was registered.

For the four weeks

the Federal Reserve System department store
City for the week ended Jan. 24 showed a 1%
increase from that of the like period last year. In the preceding
According

to

17, an increase of 4%

Jan.

weeks ended Jan. 24 an increase of

in the corresponding period

as

of the similar date in

period of 1957.

wheat,

Lower in

oats,

week ended Jan. 27 were
butter, cottonseed oil, and steers.
rye, lard, sugar, cocoa, eggs, potatoes,

barley,

price were corn,

hogs, hams, and bellies.
The index represents
31

raw

living index.
food

the

sum

total of the price per pound of

foodstuffs and meats in general use.

It is not a cost-of-

Its chief function is to show the general trend of

prices at the wholesale level.

Wholesale Commodity
Reflecting lower
sugar,

week.
Dun &

Price Index Down Moderately

prices on some grains, steers, rubber, and

The Daily Wholesale

declined moderately this

Commodity Price Index, compiled by

Bradstreet, Inc., fell to 274.84 on Feb. 2 from 275.18

prior week and was below the

in the

276.21 of the comparable date a

year ago.

Corn

ing

trad¬
down substantially from a

stopks reached record levels during the week and

declined noticeably; prices were




Southern

Company pro¬
the proceeds from
the sale, together with treasury
funds, for the payment of $6,000,to

poses

000

use

short-term

of

investment

the

loans

and

for

during

1959 of
$38,000,000 in the common stocks
of its four wholly-owned oper¬

ating utility subsidiaries, namely
Alabama
Power
Co.,
Georgia
Power

Co., Gulf Power; Co.
Mississippi Power Co.
The

subsidiaries

will

and
the "

use

funds received from Southern for

construction

t n crease

their

*

and

acquisition of
property.
Alabama and Georgia
will use some of the proceeds to
investment

in

Southern Electric Generating Co.,
which they jointly control.
The
total construction

expenditures of •
operating subsidiaries for the '
years 1959-61 are expected to be

the

around

$512,000,000, of which an
$188,413,000
will
be

estimated

spent in
For

1959.

12 months ended Sept.
30, 1958 operating revenues of the
subsidiaries
amounted
to
$267,829,000, compared with $254,536,-.
the

000 in

the

calendar year.
income

1957

Consolidated

of

net

$37,555,000 for the
12 months to Sept. 30, 1958 which
was
equal to $1.77 per share on
21,102,250 shares of common stock
outstanding. For 1957 consolidated
net
income
was
$34,823,000 or
$1.65 per share.
was

Southern

paid

dividends

amounting to $1.17% per share
during the 12 months ended Sept.
30, 1958. A quarterly dividend of
32 y2 cents per share was declared
Jan. 19, 1959, payable March 6,
1959.
The
shares
being offered
will not receive

this dividend.

Tennessee Gas Trans.
Pfd. Placed
It

E.

Privately

announced

was

Hutton

F.

&

Feb.

on

Co.

of 42,210 shares of 5%

has

H

ar¬

cumulative

convertible 2nd preferred stock of
Tennessee

with

Transmission

Gas

institutional

Co.,

investors.

The proceeds will not accrue to
the Tennessee company, but will
go

to selling stockholders.

Felsette Opens

Office

<Special to The Financial Chronicle)

LOS

a

Self-Education Needed, Too

Calif.—Robert

ANGELES,
Vine

Street

to

engage

in

securities business.

Joins Cruttenden, Podesta
(Special to The financial Chronicle)

"The committee will serve as a
,

net group

continuing Cabi-

of how to maintain
essential basis for
high and sustainable rate of economic

to study the problem

reasonable price

achieving

a

stability

as an

growth. It will conduct such studies as
needed

those

of

factors

CHICAGO, 111.—William J. Nie¬
mann has joined the staff of Crut¬
tenden, Podesta & Co., 209 South
La Salle Street, members of the
New

York

and

costs

and

Midwest S.

prices that will help prevent price in¬

It will also strive to build a better

public

understanding of the problem of inflation and of

Albert T. Smith
Smith passed away

Jan. 28 at the age
had

been

a

of 72. Mr. Smith
director
of

firm

research for the New York

cost

and

price increases are to be avoided."—
committee on

While House announcement of a new

the

prevention of inflation.

better understanding of the
subject in government circles, the committee will
If it

serve

can

promote

a

the nation well.

Stock

Exchange.
/

public and private policies that should be followed
if

E.

it finds are

affecting the stability of

Albert Tate

creases.

the general commodity price level

share.

Felsette has opened offices at 1680

1953.

Commodities quoted higher in the

flour,

is

purchased these
the utility holding
company at competitive sale yes¬
terday on its bid of $34.83 per

North

at $6.20 on Jan. 27, a drop of 0.5% from the
A year ago, however, the figure was
$6.52, or 4.9% higher. As a matter of fact, the week of Jan. 27
marked the fourth successive week that the index was below that

value)

par

group
from

shares

was reported.
For the four
1% was noted over the volume

compiled by Dun & Brad-

prior week's figure of $6.23.

($5

underwriting
group
headed
by
Eastman Dillon, Union Securities
&
Co., Blyth & Co., Inc. and
Equitable Securities Corp.
The
stock is priced at $35.50 per share.

in 1958, and for the 12 months of 1958

3% increase over same 12 months

street, Inc., stood

stock

common

being made today (Feb. 5) by an

sales in New York

week,

Sh.

of

ranged for the private placement-

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended Jan. 24,
advanced

offering

a

1,300,000
shares of The Southern Company

that

a

price index,

Public

Southern

Attracted

and

Stock at $35.50

The

week, prices fell slightly.

Wholesale Food Price Index Drops 0.5%
The wholesale food

Southern Go. Common

The

prior week, but prices
were down noticeably.
Coffee supplies were light, but prices were
steady; coffee trading was sustained at the level of a week earlier.
Although the buying of cocoa expanded considerably at the end

held

of

on

collected

duction.

the

prices

Although domestic purchases of wheat showed little change
the prior week, prices moved up moderately. There was a
slight rise in export buying of flour. Rice trading moved up and
prices matched those of a week earlier. Grocers began to step up

cording to scattered reports.

stocks were equivalent to 44 days' production.

2.1%

were

in

from

the

For

decreases

gains in wheat prices during the
Although domestic buying was unchanged from the prior
week, export purchases picked up somewhat. Wheat stocks were
sufficient for both export and domestic demand.

Retail Trade Above Year Ago

Shipments Show 1.5% Gain

ber Trade Barometer were 2.3%

and gross

fractional

Wholesalers reported slight

Lumber

11.7%

were

week.

and

by 243,000,000

913,000,000 kwh. above that of the comparable 1958 week.

cars

There

barley reflecting increased inventories and dull transactions.
the meal market and sluggish trading held soybean
prices close to the prior week.

37

Weakness in

Sugar volume remained close to the

Lower Than in Previous Week

Electric Output

and

earlier.

week

and

May 8.

on

(689)

Beverly Bogert
Beverly
Jan.

30

at

Bogert
the

passed away
of 91.
Mr.

age

Bogert prior to his retirement in
1945 had been head of his own
investment business in New York

City.

**

The Commercial and Financial

(690)

38

Chronicle

Thursday, February 5, 1959

..

if INDICATES

Securities Now
Advanced Research Associates,
Dec.

filed

1

Inc.
shares of common stock

400,000

(par five

cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working

4130 Howard Ave., Kensington, Md.
Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C. Offer¬
ing—Expected in January.
Office

capital.

Underwriters

—

—

.

Gold Mining Co.
640,660 outstanding shares of common
stock, of which 300,000 shares are to be offered cur¬
rently and. the remaining 340,660 shares in the future.
Price—To be supplied
by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
& Co., Los Angeles, Calif. No public offering expected.
•

Alaska

Dec.

29

Juneau

filed

Algom

Uranium

Mines

Ltd.

Jan. 15 filed 822,010 shares of common

stock to be issu¬
of outstanding stock purchase
warrants of the company which entitle the holders to

able

upon

the

exercise

purchase common shares at $11 (Canadian) per share
at any time to and including March 2, 1959.
Proceeds—
To be used for general corporate purposes and may be
to the redemption or repurchase of the com¬
pany's mortgage debentures. Office — 335 Bay St., To¬

applied

Underwriter—None.

ronto, Canada.
Allied

Inc., Portland, Ore.
(letter of notification) 22,000 shares of common
stock (par $1).
Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment

Publishers,

Nov. 28

IV2

shares

new

for

each

share

held

(par $1) to
at the rate
(for a 15-day

standby. Price — $2 per share. Proceeds—For additional
working capital and new acquisitions, etc.
Office—30
Verbena Avenue, Floral Park, N Y.
Underwriter —

American Asiatic Oil

Corp.
Nov. 24 filed 100,000,000 shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Sagedorn, Inc., Manila, Republic of Philippines.
American Buyers Credit Co.

Nov. 13 filed 5,000,000 shares of common stock, of which

4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
Issuable under agreements with various policy holders
In American Buyers
Life Assurance

Co.

Life

Insurance Co.

American

and

(both of Phoenix)
at $1.25 per share.

permitting them
purchase stock
Sales personnel
have been given the right to purchase stock at $1.25
per share up to the amount of commission they receive
on stock sales made by them.]
Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
8tate3. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
derwriter—None.
to

American-Caribbean Oil Co.

Feb. 28, 1958,

20c).

(N. Y.)

filed 500,000 shares of

common

stock

(par

supplied by amendment. Proceeds
—To discharge current liabilities and to drill 10 wells.
Underwriters—To be named by amendment.
Statement
withdrawn Jan. 21.

Enterprise Fund, Inc., New York
Oct. 30 filed 487,897 shares of common stock. Price—At
Proceeds—For

ward A. Viner &

investment.

Distributor—Ed¬

Co., Inc., New York.

American Growth

Fund, Inc., Denver, Colo.
(par one
cent).
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denver, Colo.
Under¬
Nov. 17 filed 1,000,000 shares of capital stock

writer—American Growth Fund

Sponsors, Inc., 800 Se¬

curity Bldg., Denver 2, Colo.

if Armed Forces Investment Fund, Inc.
Jan. 26 (letter of notification) 50,000 shares of class A
armed

stock

(par $1) to be offered to members of the
services. Price—$2 per share.
Proceeds—To be

common

Office

—

4547 North

Scottsdale

American Mutual Investment Co., Inc.

Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬
dent.

RICH SOURCE OF CAPITAL!
Chicago and Mid America are
more

in

a

rich

source

than 1,400,000 stockholders with

publicly owned corporations. You

of capital. Here are

upwards of $20 billion

can

best interest these

alert investors in your new securities
by advertising them in
the Chicago Tribune. The Tribune is more
widely read than

other newspaper in Mid America. It is preferred by both
professional buyers and the general public. Ask your Tribune
representative for further details.
any

GUjirago Qfribinte
THI

WOUIDE

Mid America's

most

GREATEST

NEWS,All R

widely circulated market table




pages

Price—To be

about March 5.

York.

Office—East Franklin St., Dan—

Shearson, Hammiil & Co.,
■' * •'

•

'

'";i>

'■

.

Bargain Centers, Inc.
Nov. 20
(letter of notification)

$300,000

ordinated

due

of 6% sub¬
1, 1969 and
30,000 shares of common stock (par 10 cents) to be
offered in units of $100 of debentures and 10- shares of
stock.
Price—$100 per unit. Proceeds—For equipping
and decorating a new store and acquisition of real estate
for a new warehouse and working capital.
Office—
convertible

debentures

Jan.

c/o Edward H. Altschull, President, 1027 Jefferson Cir¬
cle, Martinsville, W. Va. Underwriter—Securities Trad¬

ing Corp., Jersey City, N. J.

Bargain City, U. S. A., Inc.
29 filed

Dec.

5,000,000 shares of class A common stock
Price—$3 per share. Proceeds—For expansion

(no par).
and

acquisition

or leasing of new sites.
Office •— 2210
Street, Philadelphia, Pa. Underwriter—None/

Walnut
,

if Basic, Inc.
22 (letter of notification) an undetermined number
common stock (par $1)
to be purchased on

Jan.

of shares of
the
to

American

Employees

•

Midwest

Stock

Plan

Office—845

annum).
Ohio.

and

Stock

(not

Hanna

Exchanges

to

Building,

Underwriter—None.

.

pursuant

$50,000

exceed

per

Cleveland
"

v

:

.:

15,
:

v.v

Betlechasse

Oct.

29

filed

Mining Corp. Ltd.
800,000 shares of common stock
to

market

price

on

(par $1).
Canadian Stock Ex¬

Jan.

change, at;the time the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three

mon

years as

Armstrong Uranium Corp.
16 (letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—c/o Hepburn T.¬
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.
Associated Bowling

Centers, Inc.
300,000 shares of 20-cent cumulative

Nov. 24 filed

vertible preferred stock

(par

con¬

cent) and 50,000 out¬
(par one cent). The
preferred shares are to be offered for public sale for the
account of the company and the common shares will

standing shares of

Pe offered

common

for the account of

one

stock

selling stockholder. Price
supplied by amendment. Proceeds—To .acquire
new bowling centers and increase
working capital (part
*0 be used in defraying
cos^ of acquisition of stock ol
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.
Offering—Expected any day.
a

—To be

,

Feb.

3

filed

50,000 shares of

common

voting stock

(par

$10).
Price — $25 per share.
Proceeds — To purchase
additional cpntribution certificates of Great Basin Insur¬
ance
Co.
Office—704 Virginia Street, Reno, Nev.
Un¬
derwriter—None.

/

Australian Grazing & Pastoral Co., Ltd.
Jan. 13 filed 4,000,000 shares of common stock.

Price—

(56V4

cents per share). Proceeds—To purchase
improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
par

for

Office—1301 Avenue

L, Cisco, Tex.

Underwriter—None.

Robert Kamon is President.
Avco

'

.

Manufacturing Corp., New York

7 filed $14,931,900 of 5% convertible subordinated
debentures, due Feb. 1, 1979, being offered for subscrip¬
tion by stockholders of record Jan.
26, 1959 on basis of
$100 debentures for each 64 shares
held; rights to expire
on Feb. 10, 1959.
Price—100% of principal amount. Pro¬

ceeds—To reduce

—Lehman

short-term

Brothers

and

bank

loans.

Underwriters

Emanuel, Deetjeh & Co., both

of New York.

Bankers

Fidelity Life Insurance Co.
28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
133,710 shares to employees pursuant to stock pur¬
chase options. Price—To public, $6 per share. Proceeds—
For expansion and other corporate purposes. Office—At¬
Underwriter—None.

Bankers

-

if Black & Decker Manufacturing Co., Towson, Md.
Jan. 20 (letter of notification) an undetermined/number
oi: shares.of

Management Corp.

Feb. 10,1958, filed 400,000 shares of common stock
(par
25 cents). Price—$1 per share. Proceeds—To reduce out¬
standing indebtedness and for
working capital. Office—
1404 Main

St., Houston, Texas. Underwriter—McDonald,
Co., Inc. (formerly McDonald, Holman & Co.,
Inc.), New York.
Kaiser &

to

aggregate value per annum) to be issued pursuant
Employees Stock Purchase Plan. Price—90% of clos¬

ing price on the New York Stock Exchange, Feb. 5^ 1959.
Proceeds—For

working capital.

Underwriter—None.

i '

Blossman

Hydratane Gas, Inc. (2/16-20)
29 filed $1,200,000 of 5% subordinated convertible

Dec.

debentures due Dec.

stock

(par $1)

debentures
be

and

50

31, 1978 and 120,000 shares of
to

be

shares

offered
of

supplied by amendment.

in

units

of

com¬

$500

of

Price—To
Proceeds—To retire shortcommon

£tock.

term

bank loans, and for working capital to be used for
general corporate purposes. Business—Sale and distri¬
bution of liquified petroleum gas.
Office—Covington,
La.
Underwriters—S. D. Fuller & Co., New York and
Howard, Weil, Labouisse, Friedrichs & Company, New
Orleans, La.

B.

M.

D.

Cooperative, Inc.
notification) $162,000 principal amount
registered debentures due Sept. 15, 1970
to be offered for subscription by stockholders in units
of $500 each.
Price—At par. Proceeds—To retire junior
bonds
due
Sept.
15,
1959.
Office—54 Oakdale
St.,
Springfield, Mass. Underwriter—None.
Jan. 12 (letter of
of

15-year 5%

Bridgehampton Road Races Corp. *
23 (letter of notification) 15,000 shares.of common
stock (par $1) to be offered for subscription by stock¬
Oct.

holders of record

share

or

for

each

Nov.

four

1, 1958 on

shares

the basis of

one

new

unsubscribed shares
to current creditors in payment of all
part of claims, at the rate of one share for each $4
be

held;

offered

of claims
after
To

discharged;-rights to expire about two-weeks
mailing of offer. -Price—$4 p- " share.; Proceeds—

pay

current

creditors.

Addres.

—

Bridgehampton, L. I., N. Y. Underwriter
ing—Has been delayed.

P.
—

O.

Box-506,

Nones; Offer¬
-

-

Brookridge Development Corp.
Dec. 19 (letter of notification) $200,000 of 6% 15-year
convertible debentures.
Price—At par ($500 per unit).
Proceeds—For expansion and working capital. Office-*901 Seneca Ave., Brooklyn 27, N. Y.
Underwriter —
Sano & Co., 15 William St., New York, N. Y.
-•
★ Calvert Drilling,
Jan. 30

fered

★ Bankers Preferred Life Insurance Co.

($1 par) common stock (not to exceed $300,-

000

will

Feb.

lanta. Ga

follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec); for general prospecting costs;
and for general administration expenses. Office—Mont¬
real, Canada.. Underwriters — Nicholas Modinos & Co.
(Washington, D. C.) in the United States and by Forget
& Forget in Canada. Statement effective Jan. 27.

mon

if Atlas Investment Co.

trust

notes, second trust notes and construction loans.
Company may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,

ISSUE

Proceeds—To reduce bank loan

Underwriter

Price—Related

and

Dec. L7, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds -— For investment in first

bury, Conn.
New

if American

Jan.

American

eral corporate purposes.

.

Ventures, Inc.
•
/
Jan. 30 (letter of notification) 260,000 shares of common
stock (par 25 cents).
Price—$1 per share. Pro¬
ceeds—For working capital.
Office—214 Independence
Building, Colorado Springs, Colo. Underwriter—None.

REVISED

indebtedness; for property additions; to acquire manu¬
facturing laboratory equipment; and the balance for gen¬

common

Service, Inc.
Feb. 17, 1958, filed 375,000 shares of common stock (par
$1). Price—$4 per share. Proceeds—To purchase equip-,
ment and supplies and for working capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos
Treat
&
Co., Inc., of New York.
Change
in Name—Formerly
United
States Telemail
Service, Inc. Offering—Expected early in 1959.

cattle;

Price—To be

market.

for subscription by

offered

American Telemail

At

•

be

PREVIOUS

on or

supplied by amendment.

(par $25)
stockholders
of record Feb. 26, 1959, at the rate of one new share
for each 10 shares then held (with an oversubscription
privilege); rights to expire on March 12. Price—To be
determined just prior to offering. Proceeds—To be used
as the
equity base for the financing of substantial ex¬
pansion programs of system companies. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: White, Weld & Co. and Drexel & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. Bids—Expected
to be received up to 11 a.m. (EST) on Feb. 26 at 165
Broadway, New York 6, N. Y.
to

None. Offering—Expected about the/middle of February.

-

1959; rights to expire

if American Natural Gas Co. (2/26)
29 filed 486,325 shares of common stock

Jan.

Road, Scottsdale, Ariz. Underwriter—None.-

Properties Inc.

Dec. 29 filed 685,734 shares of capital stock
be offered for subscription by stockholders
of

Registration

invested in real estate.

Corp., Portland, Ore.
All-State

in

ADD ITJON S

SINCE
ITEMS

•

Inc.

(2/24)

filed

for

100,012 shares of common stock, to be of¬
subscription by common stockholders at the

Jan. 30 (letter of

rate of

stock

24; rights to expire on March 10. Price—To be supplied
by amendment. Proceeds—For development of produc¬
ing properties and for general corporate purposes. Office

notiifcation) 100,000 shares of common
(par $1.60). Pricc-^$3 .per share. Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.

Underwriter—Ringsby

Underwriters,

Inc.,

Denver ' 2,

Colo.
Bankers

Southern, Inc.

April 14, 1958, filed 8,934 shares of common stock. Price
—At par ($100 per share). Proceeds—For
general cor¬
porate purposes. Underwriter—Bankers Bond Co., Louis¬
ville, Ky. Statement effective Jan. 15, 1959.
Barden

Corp.

(2/19)
Jan. 22 filed 102,533 shares of common
stock, to be of¬
fered for subscription by stockholders at the rate of one
new share for each six
shares held on or about Feb. 18,

..—204

one

new

share for each five shares held

on

Feb.

Fair St., Olney, 111.
Underwriter — W. E.Co., Cincinnati, O., and New York, N. Y.

South

Hutton &

if Canal-Randolph Corp.
28 filed 816,721 shares of common stock (par $L).
corporation proposes to offer to purchase shares of
common
and
preferred stock of United Stockyards,

Jan.
The

and/or at the option of the holder, to exchange shares
of United for shares of
Canal-Randolphs The rate of

exchange is to be supplied by amendment. Price—To be
supplied by amendment. Underwriters—New York Hanseatic Corp.. New York, and Rea Brothers Ltd., London,
England." The former has agreed to. acquire not in

Volume

of

excess

Number 5818

189

The Commercial and Financial Chronicle

.

.

a

derwriter—Janney Dulles & Battles, Inc., Philadelphia,

Lake

Salt Lake

Expected in last half of February.
Carracov Oil

Ada., Okla.

Co.,

City, Utah. Underwriter—Earl J. Knudson & Co.,
City, Utah.

^ Commonwealth Income Fund, Inc.

City Lands, Inc., New York
13 filed 100,000 shares of capital stock. Price—$20
share. Proceeds—To invest iji real estate. Office-

Feb. 2 filed (by amendment) an additional 700,000 shares
of common capital stock (par $1).
Price—At market.

Jan.

(2/9)
Nov. 10 (letter of notification) 200,000 shares of common
stock. Price—$1.50 per share. Proceeds — For general
corporate purposes. Underwriter — Berry & Co., New
York.. '
~ ;
'
' '• "•
^
•

per

,

3748, 120 Broadway, New York, N. Y. Underwriter
—Model, Roland & Stone, New York. Offering — Ex¬

Proceeds—For investment.

pected in February.

Jan.

Room

,

Francisco^ Calif,

Connecticut

-

,

Office—San

Light & Power Co. (2/6)
795,000 shares of common stock

filed

16

t

Steel Products Corp.

• Ceco

.

*

W.

and for retirement
Office — c/o John
Aurora, Colo. Underwriter
—Lowell, Murphy & Co., Inc., Denver, Colo.

Cemex of Arizona, Inc.

•

Inc.
64,011 shares of capital stock to be offered
in exchange for 81,002 shares of the outstanding common
stock and for 2,131 shares of the outstanding $100 par
preferred stock of General Nuclear Engineering Corp.,

Dec. 19 filed

of notification) 300,000- shares of common
cents). Price—$1 per share. - Proceeds—
For working capital * Address—-P.
Box -1849, 3720 E
32nd Street, Yuma: Ariz. Underwriter—L. A. Huey Co.,

Nov. 17 (letter
stock (par 25

'

Denver; Colo.
•

Central Illinois Electric & Gas

tion

(2/19)

Co.

:

•

17, 1959 (with an

:

■

New York.

Webster Securities Corp;,

fy■

h-:
:

Century Food Markets Co. (2/J.O)
/ .
Jan. 9 filed 118,112 shares of common stock (par $1) to
be offered for subscription by holders of common stock
at the rate of one new share for each five shares held
•

about
Feb. 26, 1959. Price—S5 per share. Proceeds !T-' To dis¬
charge bank loan and to replenish working-'capital. Un¬
10, 1959; rights to expire;on

of about:Feb.

as

or

Commerce Oil

Dec.

oversubscription;privilege):
rights to expire on March 5,1959. Price—To be supplied
by amendment; Proceeds—To be used for construction
and for payment of bank loans. Underwriter—Stone &
record Feb.

Engineering stock for each

shares of

10

.
'

common

of debentures for each 25 shares of stock held of record

A*'•■»■

100%

York.
Consumers

Cooperative Association,
City, Mo. /
$6,000,000 of 5V2% 25-year subordinated
certificates of indebtedness, and 60,000 shares of 5%%
preferred stock (cumulative to extent earned befoce
patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds
—For retirement of maturing certificates of indebted¬
ness, redemptions on request of certificates of indebted¬
ness prior to maturity and of 5Y2% preferred stock; the
possible improvement and expansion of present facili¬
ties; and the acquisition of manufacturing plants and
crude oil properties if favorable opportunities therefore
Kansas

Oct.

Commercial Investors Corp.
5

28

.

Calvert

Connecticut Light & Power Co
__u_Common
(Offering to stockholders—underwritten by Morgan Stanley
& Co.; Putnam & Co.: Chas. W. Scranton & Co.;
Estabrook

and

795,000 shares

Co.)

&

,

(Bids

Talcott

The First

Carraco Oil Co
V

-

•

—_l
(Berry

.

(Charles

t .Common

:
(Reilly; Hoffman & Co.) $27,000

;... r

,

(Bids

(McDonald

(Bids

Pacific

Power

March 4

(S.

D.

Fuller

&

Co.

Co.K $1;200.000"debentures

&

LEL, Inc.

$500,000

Gulf

(Aetna Securities

and

Corp.

(Res3,

,

Lyon

&

Public Service Co. of Indiana, Inc

Southwestern States
,(Dean

Alabama

&

to

(Bids

——Bonds

•

•

(Bids

v.,

(Wednesday)

_Bonds

•'

.

-

-

Corp..

(Offering

•
•

e'.

...

Central Illinois
(Offeimg to

Electric & Gas Co.,

Shearson,
*

,

.

Investors Research

..

<fc

(Bids

(Bids noon CST)

$25,000,000

to

"

to

(Bids

to

$5,000,000

•

'

•

,

Bonds
$1^)000,000

*

Common
$330.000

Bonds

Co

(Bids to be invited)

$20000,000

Bonds

Pennsylvania Power Co
<

(Bids

to be

invited)

Price—$1

6

filed

$8 000,000

300,000 shares

of

common

stock

(par 50

Denver, Colo., on

a

best efforts basis.

.'•,.*

Postponed Financing
Power

stock.

cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or acquisi¬
tion of consumer finance business, and balance to be
used for working capital.
Underwriter — Investment
Service Co.,

#

$7,125,000

(Stanley Heller & Co.)

Jan.

J

(Thursday)

be Invited)

common

Diversified Inc., Amarillo, Texas

Bonds

...

September 10

shares of

share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

$25,000,000

Georgia Power Co.——
•

4

per

(Thursday)

be invited)

working capital. Office—4325 Alan Drive,
Underwriter—None. William H. Bur¬

President.

June 5 filed 350,000

Common

$20,000,000

.eceived)

(Bids

(Monday)

Industries, Inc




Ke

is

Dorson Minos Ltd.

(Tuesday)

June 25

Montana

Glass-Tite

to

*

—Equip. Trust Ctfs.

February 23

Bonds

Mississippi Power Co

$5,891,280

Co.)

ton

Common

Fund, Inc

(Bache

Southern Pacific Co

Invited)

2

(Friday)

February 20

-

*

Common

145,940 shares

Corp.)

be

and

Baltimore 29, Md.

Virginia Electric & Power Co

.

stockholders—underwritten by Stone & Webster
Securities

'

tV
Common

—

to-stockholders—imderwritten by
Hannjilll & Co.) 102,533 shares

to

plant

(Thursday) "

Generating Co

June

(Thursday)

February 19

Bardeiv

.Bonds
$15,000,000

:

United Control Corp...——Common.
..(Blyth &z Co., Inc.) 200,000 shares
*

(Bids

-

(par one cent) to be offered in units of $36 of deben¬
tures, six shares of class A stock and one share of class
B stock.
Price—$85 per unit. Proceeds—For acquisi¬
tion of real estate, plans and drawings for proposed

(Tuesday)

received)

be

to

Southern Electric

Japan (Government of)—^
,^..,,.(The First Boston Corp.) $30,000,000

*

22 (letter of notification) $126,540 of debentures;
21,090 shares of class A non-voting common stock (p$r
$8) and 3,515 shares of class B voting common stock

}a0,000,000

West Penn Power Co.....

Common

St.,

Jan.

Bonds

invited)

part of working capital. Office—120 East 23rd
N. Y. Underwriter—None.

it Delta Foods Corp.

Bonds

.

to be

Pro¬

New York 10,

(Thursday)

May 26

$25,000,000

Co.). 150,000 shares

February 18

,

$14,000,000

invited)

be

May 28
-■

as

"

w

of fair market value of shares.

ceeds—Aggregate not to exceed $50,000 and will be used

(Wednesday)

Co.

Power

V

Telephone Co

Witter

$7,000,000

invited)

be

15

April 30

,

(Tuesday)

(Bids ,10:30 a.m. CST)

not less than 95%

(Thursday)

...t..Common

—

February 17

/

(Bids

Inc.) $300,000

Co..

$16,000,000

Wisconsin Power & Light Co

$1,055,000

Roman & Johnson)

United States Pool Corp

to

April

Common

U. S. Land Development Corp

Bonds

Invited)

,

Jan. 29

Bonds

(Bids

•

(Plymouth Securities Corp.) $300,000

.

be

cflf 6% subor¬
(in denomina¬
Proceeds—For
Street, Spring¬

A Dejay Stores, Inc.
(letter of notification) 16,500 shares of common
stock (par 50 cents) to be offered to certain employees
under a restricted Stock Option Plan. Price—To be de¬
termined by Board of Directors, from time to time, but

Common

Co

Power

Manufacturing Corp.—-—Common

Standard
-

Inc.)

Common

invited) 300,000 shares

be

to

April 2

Debentures & Pfd.

Portfolios,'

Plan

•(Sire

(Bids

Oo>

(letter of notification) $200,000
promissory notes. Price—At par
tions of $100 or any multiple thereof).
working capital. Office—401 E. Monroe
field, 111. Underwriter—None.

96,765 shares

Monongahela Power Co

$150,000

Bros.)

Elmsford, Inc..

Sire Plan of

(Bids to

Finance

26

dinated

(Tuesday)

31

108,667 shares of common

(par one cent) and 108,667 common stock purchase

Davis
Jan.

207,852 shares

California Electric Power Co..

.......Common

—

(Bertner

*<-

March

Debens. & Com.

Weil, Labouisse, Friedrichs
and 120,000 common shares

Howard

and

■

to stockholders—bids 11 a.m. EST)

»

>

Cryogenic Engineering Co.
v
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of plant and
office equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
1740 Broadway, Denver, Colo. Underwriter—L. A. Huey,
Denver, Colo.

Common

Associates

Eastern Utilities

,

(Tuesday)

(Wednesday)

Inc.; and

(Monday)

16

February

Hydratane Gas, Inc

—Common

to stockholders—bids 8 a.m. PST)

(Offering

(Offering

Blossman

3

:•

486,325 shares

Light Co

&

shares '.

225,000,

(Thursday)

to stockholders—bids 11 a.m. EST)

(Offering

..Preferred

Read & Co., Inc.; Reynolds & Co.,
Klihn, Lceb & Co.) $55,000,000

(Dillon,

Common

Peabody & Co.)

Kidder,

and

March

Reynolds Metals Co.—

$50,000,000

American Natural Gas Co

(Wednesday)

11

Co.

$4,850,000

EST)

noon

.

•■■• r

Inc.—

February 26

Equip. Trust Ctfs.

Ry

February

&

L.j.Common
.

Pacific

.:

Bonds

invited)

be

to

Sawhill Tubular Products,

(Offering to' Stockholders—underwritten by Janney,
r 'UDulles & Battles, Inc.)
$590,560
- • '' '

•

.

(Wednesday)

.

v

(Tuesday)

Century Food Markets Co.^___

Northern

$375,000

Co

Illinois Bell Telephone

iCommon

Saratoga Plastics, Inc

February 10

Com. & Warrants

& Co.)

Plohn

February 2S

*

"

$300,000

Co.)

&

...Common

Publications, Inc

(Monday)j

-

warrants, each unit consisting of one common share and
one
warrant, to be offered for subscription by holders
of the common stock of Cormac Photocopy Corp. at the
rate of one such unit for every six shares of Cormac
Photography common held. Price—$2 per unit.' Pro¬
ceeds—To finance the company's development and mar¬
keting program.
Office—80 Fifth Avenue, New York,
N. Y. Underwriter—Ross, Lyon & Co, Inc., New York.

150,000 shares

White, Weld & Co.)

Underwriter—None.

stock

—Bonds

(James), Inc..—

TV Junior

"-February 9

;r;".-

,

invited) $10,000,000

to be

(P. Eberstadt & Co. and

VV-

Ctfs.

$5,130,000

CST)

noon

Light Co

Duquesne

•

•

(Bids

.

filed

Cormac Chemical Corp.
Jan. 22 filed 108,667 units of

'

'

29

arise.

Hutton

100,012 shares

Co.)

Chicago, Rock Island & Pacific RR._ .Equip. Tr.

;

(Offering to stockholders—to be underwritten by
Boston Corp.) 280.000 shares
• -;

by W. E.

stockholders—underwritten

to

&

,

ry

Common

Drilling, Inc

(Offering

Military Publishing Institute, Inc._l____I_Common
■■'.'/;/
(C. II. Abraham & Co., Inc.) $250,000 ''. '; /:• Rochester Gas & Electric Corp.___
—Common
.

(Tuesday)

February 24

(Friday)

February -6-

-

-

Jan.

26, 1959; rights to expire on Feb. 13. Price—
(flat). Proceeds—To repay short-term bank notes,
and for additions to utility plant. Underwriters—Morgan
Stanley & Co. and The First Boston Corp., both of New

on

Sept. 1, 1968, $20,000,00 of subordinated debentures due'
Oct. 1, 1968 and 3,000,000 shares of common stock to b*
offered in units as follows: $l,00u of bonds and 48 sharei
of stock and $100 of debentures
nine shares of stock
Price—To be supplied by amendment.
Proceeds — T<
construct refinery. Underwriter—Lehman Brothers, Nc®
York. Offering—Indefinite.

Sin

Co., New Haven, Conn.; Estabrook & Co., New
Boston, Mass.
;
'

Consolidated Edison Co. of New York, Inc.
23 filed $59,609,500 otf 4% convertible debentures

NEW ISSUE CALENDAR
•>

&

due Aug. 15, 1973 being offered for subscription by com¬
mon stockholders at the rate
of $100 principal amount

Refining Corp.

(letter of notification) 900,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For investment. Office—450 So. Main St., Salt

held;

Dec.

16,1957 filed $25,000,000 of first mortgage bonds due

Nov.

one new

York and

; stock and each share of preferred stock, respectively, of
General Nuclear Engineering (of Dunedin, Fla.).

shares of common stock, to be of¬
fered for subscription by common stockholders at the
rate of one new share for each 10 shares;-held as of
filed 145,940

21

Jan.

ton

at the rate of seven shares and 3.4302 shares of Combus¬

7

then

less

internal sources are to be used to repay certain
outstanding bank loans, to finance in part the company^
1959
construction
program,
and for other corporate
purposes. Underwriters — Morgan Stanley & Co., New
York; Putnam & Co., Hartford, Conn.; Chas. W. Scran¬

Combustion Engineering;,

—.

or

from

"

;

,

(no par)

stockholders of record Feb. 5,

share for each unit of 10
rights to expire on. Feb; 24.
Certain officers and employees of the company and its
subsidiaries will be entitled to purchase shares not sub¬
scribed for by stockholders. Price—To be supplied by
amendment.
Proceeds—Together with funds available
shares

Harlan Lowell, 2200 Kenton,

26th

common

1959, at the rate of

pay additional costs of construction;
of obligations and working capital.

($29.73 per share). Proceeds—None..Office—5601
Street, Cicero, 111. Underwriter—Node.1

value

to be offered to

Clute Corp.
'Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To

'V

.

(letter of notification) 1,379 shares.-pf common
stock (par $10) to be offered to 68 employees selected
by the. board of directors of the company pursuant to
an Optional Partial Stock Bonus Plan at the/fair market
29

Jan.

39

(691)

Pa.

shares of Canal-Randolph common;
maximum of 110,500 shares. Offering1—

162,500

the latter

and

.

if Dixie Mining Co., Inc.
Jan. 26 (letter of notification) 2,000,000 shares of common stock.
Price—At par (10 cents per share). Pro¬
ceeds—For acquisition, development, and exploration
of mining properties,
etc.
Address—Box 46, Mineral
Springs, N. C. Underwriter—None.
Continued,

on

page

40

*

40

The Commercial and Financial Chronicle..

(692)

Continued

from

Foundation

39

page

Duquesne Light Co. (2 24)
Jan. 27 filed $10.000,000 of first

bonds

mortgage

due

JMarch 1, 1939. Proceeds—To repay bank loans and for
construction program.
Underwriter—To be determined

'bv competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White. Weld & Co.; The First Boston Corp.;
Kuhn, Loeb & Co., Eastman Billon, Union Securities &
Co., A. C. Allyn & Co., Inc., and Ladenburg, Thalmann
& Co. (jointly); Glore. Forgan & Co.; Harriman Ripley &
Co. Inc.; Drexel & Co. and Equitable Securities Corp.
(jointly). Bids—Scheduled to be received on Feb. 24.
it Eastern Utilities Associates (3/4).
Jan. 30 filed 96,765 shares of common stock (par $10)
to be offered for subscription by common stockholders
<of record about March 4, 1959 on the basis of one new
share for each 12 shares held (with an oversubscription

Proceeds—To

privilege); rights to expire on March 19.
Underwriter

reduce bank loans.

To be determined by

—

competitive bidding. Probable bidders: Kidder, Pea body
& Co.; Stone & Webster Securities Corp.
Bids—To be
received up to 11 a.m. (EST) on March 4 at 49 Federal

St., Boston, Mass.

1

'

\

it Emerite Corp.
Jan.

(letter of notification) 250,000 shares of series 3
common
stock (no par) to be offered for subscription
stock

the basis of one share of series 3

on

shares of series

three

each

for

and/or series

1

2

stock held; unsubscribed shares to other stock¬

common

holders.

Price—$1

Rights expire 30 days from offering date.
per
share.
Proceeds—For working capital.

Office—333 S. Farish
.

Street, Jackson, Miss. Underwriter

—None. '

C

Steel Corp.
237,918 shares of common stock, to be of¬
fered for subscription by common stockholders at the

Nov. 17

(letter of notification) 45,250 shares of common
(par $1) of which 16,900 shares are to be offered
to employees and the remainder to the public.
Price—
To employees, $1.1805 per share.
Proceeds—To purchase
and install machinery and equipment.
Office—367-405
West First

share for each four shares held. Price-

one new

To be supplied by amendment.

Proceeds—To complete
modernization and expansion program and for working
capital. Underwriters—Lee Higginson Corp., and P. W.
Brooks & Co., Inc., both of New York City.

it Ero Manufacturing Co.
Jan. 23

stock

(2/9)

(letter of notification)

Price—The

closing

price

on

mencement of the offer.
which

Howard

North

Lake

10,000 shares of common

the

day

preceding

Proceeds—To go to

a

com¬

trust of

F.

Leopold is trustee.
Office — 3180
Drive, Chicago, 111. Underwriter—
Straus, Blosser & McDowell, Chicago, 111.
Shore

Ethodont

Laboratories, Berkeley, Calif.
Feb. 20, 1958, filed 300,000 shares of common stock. Price
—At par ($5 per share). Proceeds—To cover operating
♦xpense during the develonment period of the ooroor*
tion. Underwriter—None. Statement withdrawn Oct. 30,
1958.

New York
A stock
par) and 1,537,500 shares of common B stock (par fi
Proceeds—To the Attorney General of the United State*
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bo»
ton
Corp.
(jointly); Kuhn,
Loeb
&
Co.;
Lehmat
Brothers, and Glore, Forgan & Co. (jointly). Bids—Hac
oeen scheduled to be received up to 3:45 p.m. (EDT) oi
Way 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25, D. C., but bidding has been postponed.
it Glass-Tite Industries,

share.
stock; for

Proceeds—To retire $35,000 of 6% preferred
research, development and improvement of
new and present products; for purchase of a high tem¬
perature atmosphere furnace and additional test equip¬
the balance will

and

Spectable

St., Cranston,
Co., New York.

Heller &

Underwriter—None.

Federated Corp. of Delaware
Dec. 29 filed $918,000 of 6% convertible
■debentures

due

1968.

The

subordinated

to offer
$210,000 of the debentures to purchase the capital stock
of Consumers Time Credit,
Inc., a New York company;
$442,000 of the debentures in exchange for Consumers
debentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
of Federated.

Y.

Office—1 South Main

proposes

Street, Port Chester,

Underwriter—None.

Federated
Nov.

company

17

Finance

Co.

(letter of notification)

$300,000 of 10-year 6%
debentures. Price—At par (in de¬
nominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.
For

Industry, Inc.

Dec.

16 filed 200,000 shares of class A common stock.
Price—At par ($1.50 per share)r- Proceeds—For
working

capital.
writer

Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot
Bldg., Detroit,

—

Mich.

Inc.

Dec. 1 filed $4,000,000 of 6% 15-vear
sinking fund sub¬
ordinated debentures and 40,000 shares of common
stock,

to be offered in units of $100
principal amount of deben¬
tures and one share of common stock. Price
$110 per
unit. Proceeds—For purchase and
development of sub¬
division land, including shopping
—

site; for new equip¬
ment
and
project site facilities;
for financing
ex¬
pansion program; and for liquidation of bank loans and

other

St.

corporate

purposes.

Petersburg, Fla.

Office—700

43rd

St., South.

Underwriter—None.

Securities Inc., New

York, N. Y.
Pierce

Port

&

Terminal

Nov. 25 filed 2,138,500 shares of

Co.

common

stock (par

$1).

and

rest

added

to

general

Pierce, Fla. Underwriter—Frank
Beach, Fla.




funds.
B,

Office

—

Fort

Bateman, Ltd., Palm

one

on

the basis of

warrant per

share of stock held (1,outstanding); (2) to holders of
(par $1.50) of Government Employees
Life Insurance Co., on the basis of IV2 warrants per share
of stock held (216,429 shares are now
outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of V2 warrant per share of
one

334,570 shares

are

Development Corp.

shares

subscription

share

of

of

by

convertible
stock

common

stockholders

preference
held

on

the

on

basis

stock for
about

or

each

Nov.

1,

Stockholders will have 45 days in which to exer¬
rights. Price — At par. Proceeds — To repay

cise

the

debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬
writer—None.

Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
(par $1).
Proceeds—For
Price—$5 per share.

Oct. 22

payment

of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11
Broadway, New York'4, N. Y.

• Hesco, Inc. /-/'v V/
J."/:
30 (letter of
notification) 1,687 shares of common
(par $10). Price—$14 per share. Proceeds—For/
working capital.
Office—525
W.
McKinley Avenue,
Milwaukee 12, Wis.
Underwriter—None.
Jan.

stock

Highway Trailer Industries, Inc.
24
filed 473,000 outstanding shares

now

stock

/

Nov.

ing

(par 25 cents).
the

on

American

stockholders.
Underwriter—N one.
Hinsdale

Dec.

000

common;

Office—250

Park

Avenue,

N.

Y.

Raceway, Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,-

29 filed

shares

of

Price—At prices generally prevail-1;
Stock Exchange.
Proceeds — To

selling

of

capital stock, and

2,000

debenture notes.

Price—The

common stock at
par ($1 per share) and the
notes in units of $500 each. Proceeds—For
construction
of a track,

including land, grandstand, mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and
clubhouse.

Underwriter—None.

•

Hoagland & Dodge Drilling Co., Inc.
<une
12 filed
27,000 shares ot capital stock.
share.

ploration

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,

common

for

of

Der

Annuity Life

Proceeds—To
of

nines and

Ariz.

mines

in

and

be

used

in

part

development

and

payment of indebtedness

Underwriter—None.

Statement

Price—$10
for

the

ex¬

operation of

Office—Tucson,
Oct. 11,

effective

1958.
•

Holiday Inns of America, Inc.

Dec. 30 filed 35,298 shares of common
stock, to
for subscription bj' common stockholders
the

be offered

(other than
Chairman and President and their families)

Board

at the rate

of one

new

share for each four shares held.

Price—To be supplied by amendment. Proceeds—In ad¬
dition to other

funds, to be added to working capital and
complete the current portions of construction costs.
Equitable Securities Corp., Nashville,
Tenn., with a 14-day standby. Statement effective Feb. 3.

stock held

to

of stock

Underwriter

(as of Dec. 31, 1958 there were 143,703 shares
outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
into

common

stock

prior

to the record

date,
164,733 common shares would be outstanding.
Warrants were to expire on Feb.
27, 1959. Price—$3 per
total of

Proceeds—For

capital and surplus. Office—Gov¬
Employees Insurance Bldg., Washington, D. C.
Underwriters
Johnston, Lemon & Co., Washington,
D. C.; Eastman Dillon, Union Securities &
Co., New
York; and Abacus Fund, Boston, Mass.
Offering—In¬
definitely postponed.
ernment

—

(par 10 cents).

National Alfalfa Dehydrating & Milling

Co., holder of the 100,000
its

common

shares is offering to

stockholders preferential warrants to sub¬
98,750 shares of Grain Elevator stock on the

common

scribe
basis

to
of

warrant

one

to

purchase

one-eighth

share of

Price—$2
Office

—

share.

per

927

Home-Stake Production Co., Tulsa, Okla.
5 filed 116,667 shares of common stock
(par $5).
Price—$6 per share. Proceeds—For working capital and

general

corporate

writer—None.

Street.

selling stockholder.
Wilmington, Del. Under¬

•

I. C.

Statement effective Jan. 12.

Great American

Dec.

15

(letter

of

Publications, Inc.

130,000 shares of com¬
mon
stock (par 10 cents), of which 30,000 shares will
be offered for 30 days to the company's
employees, and
to the company's news
dealers, wholesalers and dis¬
tributors

and their employees at $1.65 per
share; and
100,000 shares will be offered to general public at $2
per share. Proceeds—To satisfy creditors' claims and for
general corporate purposes. Office—41 E. 42nd St., New

17, N. Y.

Underwriter—Mortimer B. Burnside &
Co., Inc., New York 5, N. Y. Offering—Expected today
(Feb. 5).

Office—Tel

of

[The registration

common

shares

includes

issuable

per

an

ad¬

exercise
(Oct. 19

upon

1,176,000

1957),

options rights previously offered
which
rights
entitle
the
original
purchaser

share

mencement

the

at
of

expiration

such

instituted by SEC

share
of

offering.]

on

of

Underwriters—None.

• Illinois Bell Telephone Co. (2/25)
4 filed $50,000,000 first
mortgage bonds, series F,
due March 1, 1994. Proceeds — For
improvements, etc.
Underwriter—To be determined by competitive bidding.

Feb.

Probable

bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co. and Eastman Dillon,
Union Securities & Co.
(jointly). Bids—Expected to be
received

on

Feb. 25.

it Industrial Finance & Thrift Corp.
Jan. 21 (letter of notification) $250,000 of 20-year 6%
A

subordinated

working

debentures

to

be

issued

in

de¬

of $100.
Price — At par.
Proceeds — For
capital.
Office—339 Carondelet Street, New

Orleans, La.

Underwriter—None.

Industrial Minerals Corp., Washington, D. C.
/uly 24 filed 600,000 shares of common stock (par one
:ent). Price—$1 per share. Proceeds—To develop and
>perate graphite and mica properties in Alabama. Unterwriters—Dearborn & Co. and Carr-Rigdom 8r
both of

Washington, D. C.,

on a

Co^
best efforts basis. State¬

ment effective Nov. 18.

Industro Transistor Corp.

(N. Y.)
1958, filed 150,000 shares of common stock (par

10

stock (par 25
cents). Price—$2 per share. Proceeds—To acquire funds
to test drill, explore, and
develop oil and gas properties

588,000

Aviv, Israel.

Statement withdrawn Jan. 27.

Feb. 28,

Hamilton Oil & Gas Corp.
Oct. 22 filed 1,000,000 shares of common

ditional

Price—$1

share. Proceeds—To be used for new packing houses,
purchase of citrus groves and for the planting of new

per

for

nominations

notification)

Underwriter—None.

Philtower

P.

Israel Citrus Plantations Ltd. Dec. 23 filed 750,000 shares of common stock.

series
•

Office — 2202
Underwriter—None.

purposes.

Bldg., Tulsa, Okla.

Proceeds—To

Market

—

Nov.

groves.

Grain Elevator Warehouse Co.
Nov. 3 filed 100,000 outstanding shares of common stock

stock

is

months

Stop

order

at

50

after

cents
com¬

proceedings

Jan. 15.

cents); reduced to 135,000 shares by amendment subse¬
quently filed. Price—To be related to the market price.
Proceeds—For working capital and
and

development

department.

to

Stop

enlarge research

order

proceedings

instituted by SEC.
International

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, 81,000,000, four-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¬
ington, D. C.
Dec. 29 filed

—

Harman-Kardon, Inc.
Jan.

23

filed

200,000 shares of

common

stock, of which

the company proposes to offer 95,000 shares and
105,000
shares will be sold for the account of Bernard Kardon,

Price—$1.25 per share.
Proceeds—To pay short-term
loans and for completing company's Port
Development
Plan

Stanley

—

13 filed

thereof to purchase one-half

Fluorspar Corp. of America
Oct. 14 (letter of
notification) 133,333 shares of common
*tock (par 25 cents).
Price—$2.25 per share. Proceeds—
For mining expenses. Office—4334 S. E. 74th
Ave., Port¬
land 6, Ore. Underwriter — Ross
Fort

Underwriter

Government Employees Variable
Insurance Co.

York

Florida Builders,

R. I.

Grain Elevator stock for each share of National Alfalfa
common held on Jan.
19, 1959; rights to expire Feb. 16.

senior subordinated

Finance

working capital
Office — 88

York.

share.

Ohio.

to

(England)
Jan. 30 filed 60,000 American depositary receipts for
ordinary stock. Depositary—Guaranty Trust Co. of New

amount of 6%

—

added

it Glaxo Laboratories Ltd.

a

ployees pursuant to company's Employee Savings Plan.
Price
At par.
Office — 700 First Avenue, Gallipolis,

be

be used for other corporate purposes.

converted

$28,661.50
principal
10-year debentures to be offered to em¬

Inc. (2/23-27)
110,000 shares of common stock. Price—$3

per

ment

Thursday, February 5, 1959

(letter of notification) 22,820 shares of non¬
convertible preference 1 stock (par $12) to be

offered

stock

Jan. 30 filed

.

stock

General Aniline & Film Corp.,

it Evans Grocery Co.
Jan.
19
(letter
of
notification)

N.

Underwriter—William S.

St., Boston, Mass.
Co., Boston, Mass.

Jan. 14, 1957 filed 426,988 shares of common

Nov.

(par $1), not to exceed an aggregate of 8100,000.

23

voting

10

gtock

Prescott &

Heartland
Oct.

1958.

General Alloys Co.

9 filed

rate of

•

filed

Ga. Underwriter—None.

and

^

'

Erie Forge &

Jan.

13

19

stockholders

by

Investment Corp., Atlanta, Ga.
231,988 shares of common stock to be of¬
fered for subscription by stockholders; unsold portion
to be offered publicly. Price—$12.50 per share. Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,

Jan.

.

Vice-President
share.

and

Proceeds—To

General

Manager.

eliminate

$100,000

Price
of

—

$3

per

outstanding

bank

loans, and for working caoital. Office—520 M?in
Street. Westbury, N .Y. Underwriter—Milton D. Blauner
&

Co., Inc., New York. Offering—Expected
during the middle part of February,

sometime

Investment Corp. of Florida
9 (letter of notification) 55,555

Oct.

shares of

common

stock

(par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in
surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise

Boulevard, Ft.

Lauderdale, Fla.
•

Investors

Underwriter—None.

Research Fund,

Jan. 9 filed 490,940 shares
per

share.

Proceeds—For

of

Inc.

(2/20)

common

investment.

stock. Price—$12
Office—922 La-

.

Volume

189

Number

5818

.

The Commercial and Financial Chronicle

.

.

guna St., Santa Barbara, Calif. Investment Advisor—In¬
vestors Research

Co.,"Santa Barbara, Calif. Underwriter

capital.
.

Colo.,

—Bache & Co., New York.
Israel

Jan. 8

(The State of)

Price—100%

of

principal amount. Proceeds—

improvements, etc. Underwriter—Development Corp
Israel, 215 Fourth Ave., New York City. Offering—
Expected early in March, 1959.
for

Itemco

Inc.

(letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To

acquire machinery and equipment and additional

laboratories; anji for working capital. Office—
Ave., Port Washington, L. I., N. Y. Under¬
B. Fennekohl Jc Co., 205 East 85th
St., New

—

York, N. Y.

if Jamaica

//

7,7 V

7>: 7'7-

(Government of)

;

7.

'•

>

>■■■■

'

$10,000,000 of sinking fund external loan
March 1, 1974 and $2,.500,000 serial external
loan bonds due semi-annually
Sept. 1, 1960 through
March 1, 1964, inclusive. ' Price — To be supplied by
due

amendment./Underwriter—Kuhn, Loeb
—Expected late in February.

•

& Co.

:

15,

1963;

$7,000,000 of five-year

4%% bonds, due Jan. 15, 1964; and $15,000,000 of 15-year
5Y2% sinking fund bonds, due Jan. 15, 1974. Price—To
be supplied

the

by amendment. Proceeds—To be added to
foreign exchange reserves. Under¬

Government's

writer—The First Boston
•

Corp., New York.

,

;,7. /

Corp., Paterson), N. J.
(letter of notification"^ 10,000

shares of class A

common stock (par $L50)?7Pricc —
$10 per share. Pro¬
ceeds—For purchase of modem automatic filling equip¬
ment and for marketing and advertising program. Office

—85-18th

i

Naylor Engineering & Research Corp.'
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share)Proceeds—For organizational ex¬

& Co., Inc.

Envelope Co. of West Carrollton, Ohio, on the basis
Kimberly stock for each
of American.
The offer will expire on Feb. 27,
1959.
The exchange is contingent on acceptance by all

of the stockholders. Statement effective Jan. 23.

if Kip, Inc.
Jan. 30

stock

*

-

(letter of notification)

(no

par).
working capital.
Mass.

11,936 shares of common
Price—$25 per share.
Proceeds—For
Address—Old Harbor Road, Chatham,

Underwriter—None.

Laure

Exploration Co., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of common stock. Price—$2
per share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.

^ Lefcourt Realty Corp.
Jan. 29 filed 3,492,000 shares of common stock, of which
2,622,000 shares are to be offered in exchange for all of
the common stock of Desser & Garfield, Inc., and D. G.
& R., Inc.; 750,000 shares will be used for the exercise
of an option by the company to purchase from Big
Mound Trail Corp. some 3,784.9 acres of land; and the
remaining 120,000 shares are to be sold for the account
of a selling stockholder. Underwriter—None.
•

LEL, Inc. (2/16-20)
(letter of notification) 150,000 shares of common
stock (par 20 cents). Price—$1 per share. Proceeds—To
retire loans and notes and for working capital. Business
—Engaged in the design, manufacture and sale of elec¬
tronic equipment. Office — 380 Oak St., Copiague, L. I.,
N. Y. Underwriter—Bertner Bros., New York, N. Y.
Jan. 22

Life

Insurance

Securities

Corp.

March 28, 1958, filed 1,000,000 shares of capital stock (par

$1).

Price—$5 per share.
Proceeds—To acquire stock
control of "young, aggressive and expanding life and
other insurance companies and related companies and
then to operate such companies as subsidiaries." Under¬
writer—First Maine Corp., Portland, Me.
Ling Electronics, Inc.
Jan. 27 filed 335,000 shares of common stock, to be of¬
fered in exchange for the outstanding capital stock of
Altec Companies, Inc., on the basis of one share of Ling
stock for one share of Altec stock. The offer is subject
to acceptance by holders of at least 80% of the outstand¬
ing Altec stock.

if Loomis-Sayles Mutual Fund, Inc.
Jan.

29

filed

amendment) an additional 150,000
(par $1). Price—At market.
Proceeds—For investment. Office—Boston, Mass.
shares

of

(by

common

stock

LuHoc

Mining Corp.
Sept. 29 filed 350,000 shares of common stock. Price—$1
per share. Proceeds — For the acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar purDoses.
Offices—Wilmington, Del., and Emporium, Pa.
Underwriter—None.
-

• M. C. A. Credit Co., Inc., Miami, Fla.
Oct. 6 filed 100,000 shares of common stock.

Price—$5
Proceeds—To reduce current indebtedness to
Underwriter—Plymouth Bond
& Share Corp., Miami, Fla. Statement withdrawn Jan. 14.

per share.
•

.

-

.

Kitchens)
22 (letter of notification)
$50,000 of 5%-7% series
due July 1, 1962.
Price—At par,- Proceeds—
For working capital. Office—5830
Henry Avenue, Phila¬
delphia, Pa. Underwriter—None.
Jan.

bonds

Merchants

Petroleum

Co.

penses

i. •

Oct. 8

(letter of notification) 159,395 shares of common
stock (par 25 cents)
being offered for subscription by
stockholders of record Nov. 24, 1958 on the basis of one
share

new

for

each

five

Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of

(par one cent). Price—$2 per share. Proceeds—Toloan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houstori*

shares

held; rights to expire
oversubscription privilege). Price

pay

—
To reduce bank loan;
working capital and for general corporate
Office—617 W. 7th Street, Los Angeles, Calif.

Tex.

increase

to

i

...

100 units

—

Military Publishing Institute, Inc. (2/6)
(letter of notification) 125,000 shares of common
(par 5 cents). Price—$2 per share. Proceeds—
For general corporate purposes and working
capital.
Dec. 9

and

Walter E. Heller & Co,

Magic Mountain, Inc., Golden, Colo.
Jan. 27 filed 2,250,000 shares-of common stock. Price—
$1.50 per 6hare. ^PT6ceedfr^For construction and working




Distributor—Spear, Leeds 8c Kellogg, New York.

—For

working capital. Office—20th Ave., N. W. 75th St^
Miami, Fla. Underwriter—Cosby & Co., Clearwater, Fla.

Dec. 23 filed 602,786 shares of common stock. Price—$1
share. Proceeds — For additional working capital.

Office—Siloam Springs, Ark.

Oak Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share. Proceeds — For
working capital.
Office—11 Flamingo Plaza, Hialeah,

Underwriter—None.

Fla.

Underwriter
Henry & Associates,
mingo Plaza, Hialeah, Fla.

stock

(par $75).
Price—For common stock, $8.75 per share; for special
common
stock, $131.25 per share. Proceeds—For con¬
struction program, to purchase shares of Coastal Chem¬
ical Corp.
(a subsidiary), and the balance will be
added to surplus.
Underwriter—None.
common

ing offered for subscription by
rate

of

one

new

share

for

common

each

10

O. K. Rubber

held

60,600 shares of common stock, $43,333.33
debentures maturing on or before May 6, 1965,

offering of 25,000 shares of common stock at $10 per
share.
The remaining shares and the debentures are
subject to an exchange offer between this corporation

of

record Jan. 21, 1959 (with an oversubscription privilege);
rights to expire Feb. 9, 1959. Price—$22 per share. Pro¬
and

Welders, Inc.

filed

$692,000 of (1% debentures maturing on or before Dec.
31, 1974 and $123,000 of 7% debentures due on or before
May 6, 1965. The company proposes to make a public

O. K. Rubber, Inc., and O. K. Ko-op Rubber
Welding
System, on fin alternative basis. Proceeds—Of the public
offering, will be used for additional working capital

ceeds—To reduce short-term bank loans incurred for the
extension

15

of 3^4%

(par $5) be¬
stockholders at
shares

Inc., 11 Fla¬

—

Dec.

Mobile Gas Service Corp.
Dec. 30 filed 33,000 shares of common stock
the

notification) 600,000 shares of common,
(par 10 cents). Price—50 cents per share. Proceed®'

stock

Millsap Oil & Gas Co.

special

.

Nov. 24 (letter of

Street, New York 36, N. Y. Under¬
writer—C. H. Abraham & Co., Inc., 565 Fifth Ave., New

of

f

....

Nylonet Corp.

York 17, N. Y.

shares

t'

Dec.

stock

8,000

.

New Jersey Investing Fund, Inc., New York
9 filed 200,000 shares of capital stock.
Price—At
market. Proceeds—For investment. Investment Adviser

.

•

and

i

„

Nelly Don, Inc.
■>
Jan. 9 filed 52,600 outstanding shares of common stock
(par $2). Price—To be supplied by amendment. Proceed*
—To selling stockholders. Office—3500 E. 17th
St., Kan¬
sas City, Mo.
Underwriters—Stern Brothers & Co. and
Barret, Fitch, North & Co., Inc., both of Kansas City, Mo.
Offering—Expected this week.

Minerals, Inc.
of participations in Oil and Gas
Fund (the "1959 Fund"). Price—$15,000 per unit. Pro¬
ceeds
For working capital, etc.
Office — 500 MidAmerica Bank Bldg., Oklahoma City, Okla. UnderwriterMidamco, Inc., a wholly-owned subsidiary, Oklahoma
City, Okla.
' ;
19 filed

Underwriter—T. J. Campbell Investment Co., Inc..,
' • V" " 7; ■ "v ' '• '
' "7 1 * r7,'i

Houston, Tex.

Underwriter—None.

Jan.

common:

stock

15, 1959 (with an
—$1.40 per share. Proceeds
purposes.

and first three months' operational expenses. Of¬

fice—1250 Wilshire Blvd., Los Angeles
17, Calif. Under¬
writer—Waldron & Co., San Francisco 4, Calif.

Mississippi Chemical Corp., Yazoo City, Miss.
Dec. 24 filed 200,000 shares of common stock (par $5)

of three-quarters of a share of

-

common stock at the rate of $11 of debentures and one warrant to purchase one-quarter of a share

of

(Mrs. PauPs

Kimberly-Clark Corp. '•>
Dec. 30 filed 225,000 shares of
can

.

ciates, Inc.

per

share

purchase debentures and stock purchaser
The debentures and stock purchase warranter
to be offered in exchange for National Telefilm Asso*

if McAleer (E. J.)

of

Ave., Paterson, N,*J. Underwriter—None. Of¬
fering—Expected any day.
common stock (par $5) to
be offered in exchange for common stock of the Ameri¬

485,55ifr

to

National Theatres, Inc. stock for each NTA sharet
Dealer-Managers — Cruttenden, Podesta & Co., Cantor,.
Fitzgerald & Co., Inc., and Westheimer $c Co. OfferingExpected in March.

(letter

Office—55 West 42nd

Jet-Aer

Dec. 5

warrants

warrants.

Mid-America

(Government of >- (2/18)
7
Jan. 29 filed $30,000,000 of external loan
bonds, dated
Jan. 15, 1959. These consist of $3,000,000 of three-year
4V2% bonds, due Jan. 15, 1962; $5,000,000 of four-year
bonds due Jan.

for 454,545 shares of common stock (par $1) and

...

Offering

^

if Japan

4%%

Co., Boulder,

common stock for each five shares
held; rights to
expire on Jan. 30, 1959. Price—At par ($100 per share).
Proceeds—For inventory and working capital. Office—
1026 N. Main Street, Goshen, Ind.
Underwriter—None.

6

Jan.

Feb.* 4filed
bonds

Investment

tional

space

4 Manhasset

writer

Allen

are

A

Nov. 28

for test

—

best-efforts basis.

41

notification) 600 shares of common
stock to be offered for subscription
by stockholders of
record Jan. 10, 1959 on the basis of one share of addi¬

Jan.

$300,000,000 of second development bonds,
part to consist of 15-year 4% dollar coupon bonds (to
be issued in five series maturing serially from March
1,
1974 to March 1, 1978) and 10-year dollar savings bonds
(each due 10 years from first day of the month in which
issued).

Underwriter

on a

Mairco, Inc.
<

filed

For

(693)

improvement of gas distribution system.

and/or to

Underwriters—The

551

The

service part

of the company's debt.

Office—

None.

First Boston Corp., New York, and
Robinson-Humphrey Co., Inc., Atlanta, Ga.

if Montana Metais, Inc.
16 (letter of notification) 1,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—1936 N. Lombard St.,
Portland, Ore. Underwriter—Kent Merrill Lielsen, an

and

Montana Power Co.

able bidders:

Halsey, Stuart & Co. Inc.; Lehman Bros.;
Lynch, Pierce, Fenner & Smith, and Stone &

•

Webster Securities Corp. (jointly); White, Weld & Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea-

pending improvement in market conditions.
Co.

Price—To be related to the current market

Pacific

Jan.

if National Finance Co., Detroit, Mich.
27 (letter of notification) 25,000 shares of 6*4%
cumulative preferred stock (with common stock purchase
warrants attached). Price—At par ($10 per share). Pro¬
ceeds—For working capital.
Office — 1307 Industrial
Bldg., Detroit 26, Mich. Underwriter—None.

tions

Jan.

Petroleums

filed

160,792

Ltd.

of

shares

common

stock.

expiring June 30, 1959

(to the extent of

shares), or have been purchased pursuant to
which expired Aug. 29, 1958 (to the extent
shares).
from any

These

The

will not
sales of these shares.
company

receive

an

any

of

137,492
option
23,300

proceeds

Pacific Power &

Light Co. (3/3)
shares of common stock, which the
company proposes to offer to common stockholders ojt
record March 3, 1959 at the rate of one new share for
each 20 shares held; rights to expire on March 25. Pro¬
ceeds—For construction program. Underwriters — To be
determined by competitive bidding.
Probable bidders:
Lehman Brothers, Eastman Dillon, Union Securities &

if National Telefilm Associates, Inc.
Jan. 30 filed 56,000 outstanding shares of common stock.
The company is advised that Family Broadcasting Corp.
(1) will transfer 22,222 shares in satisfaction of an in¬
debtedness in the principal amount of $200,000, (2) will
offer 29,306 such shares in exchange for its outstanding

Jan. 27 filed 207,852

20,933 class A common shares, and

(3) has no present
plans for the disposition of the remaining 4,472 NTA
shares plus any of said 29,306 NTA shares not exchanged

Co., Bear, Stearns & Co. and Dean Witter & Co. (joint¬
ly); Ladenburg, Thalmann & Co.; Kidder, Peabody 8s
Co. Bids—Expected to be received up to 8 a.m. (PST)

stockholders.

National Theatres, Inc.,

21

shares have been, or may be, purchased by various firms
and individuals pursuant to presenting outstanding op¬

Offering—Indefinitely postponed.

Los Angeles* CaliL

Dec. 30 filed $20,000,000 572% sinking fund subordinated
debentures due March 1, 1974, stock purchase warrants

:

Feb. 2 filed $62,000,000

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program
through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth

common

'

Oil, Gas & Minerals, Inc.
Nov. 16 (letter of notification) 116,000 shares of common
stock (par 35 cents).
Price—$1 per share.
Proceeds—
For development of oil and gas properties.
Office—ol3
International Trade Mart, New Orleans 12, La.
Under¬
writer—Assets Investment Co., Inc., New Orleans, La.7

if Pacific Gas & Electric Co.
of interests in company's Savings
Fund Plan for Pacific Gas employees, together with
1,000,000 shares of common stock which may be acquired
pursuant to the plan.

July 1 filed 100,000 shares of common stock (no par).
stock will be offered only to bona fide residents

with its class A

materials, and to provide working capital. Office
Ave., New York, N. Y. Underwriter—Harris
Corp., New York, N. Y., has withdrawn a*

Dec.

(EDT) on Aug. 26 at Room 2033, Two Rector St.,
York, N. Y., but company on Aug. 22 again decided

Co., Inc.

raw

market

noon

The

&

filed

Oppenheimer Fund, Inc.
5 filed 100,000 shares of capital stock. • Price—At
(about $10 per share). Proceeds—For invest¬
ment. Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York. Offering — Expected
sometime in February. '

body & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up

of Montana.

12

underwriter.

company's construction program through 1959. Under¬
writer—To be determined by competitive bidding. Prob¬

Power

Underwriter—

Securities

—

Montana

Colo.

—375 Park

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds
Together with other funds, to be used to
repay $15,500,000 in bank loans and to carry on the

to defer sale

Littleton,

—Debentures at 100% and stock at $3 per share. Pro¬
ceeds—To purchase a textile mill, machinery, equipment

officer and director.

New

Ave.,

Industries, Inc.
$250,000 of 5*4% convertible debentures
and 250,000 shares of common stock (par 10 cents). Price
Nov.

mon

to

Grande

Odlin

Jan.

Merrill

Rio

on
.

-

:

March 3.
.

-

J 7:

7

..

.

:: ;7 -W

..

..

Continued

on

page

4J

.

••

The Commercial and Financial Chronicle
42

.

.

.

Thursday, February 5, 1959

f

(694)

Continued from page

/

York.

Paramount Mutual Fund, Inc.

purchase of shares is $2,500. Proceeds—For invest¬
Office—404 North Roxbury Drive, Beverly Hills,
Calif.
Underwriter—Paramount Mutual Fund Manage¬
mum

ment.

ment. Co.

Peckman Plan Fund,

Inc., Pasadena, Calif.

May 19 filed 20,000 shares of common stock (par $1)
Price—At market.
Proceeds—For investment. Under¬
writer—Investors Investments Corp., Pasadena, Calif.

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988
Proceeds—To redeem a like amount of 5% first mort¬
bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuan
& Co. Inc.; Kidder, Pea'oody & Co.; White Weld & Co.
Equitable Securities Corp., and Shields & Co. (jointly)
Lehman Brothers, Eastman Dillon, Union Securities &
gage

Co., Salomon Bros. & Hutzler and Ladenburg, Thalmani
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smitl

(jointly). Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT;
on Aug.
27 but company on Aug. 22 decided to defer
sale pending improvement in market conditions.
and

Witter &

Dean

Co.

^ Piedmont Natural Gas Co., Inc.
of common stock to be offered
for subscription by common stockholders at the rate of
one new share for each
10 shares held. Price—To be
Feb. 4 filed 56,301 shares

Proceeds — For construction
Underwriter—White, Weld & Co., New York.

supplied by amendment.
program.

Pilgrim Helicopter Services, Inc.
9 (letter of notification) 12,000 shares of common
stock (par $3). Price — $5 per share. Proceeds — For
working capital. Office—Investment Bldg., Washington
5, D. C. Underwriter—Sade & Co., Washington 5, D. C.
(

Jan.

Pioneer Electronics Corp.

(letter of notification) 25,000 shares of common

Jan. 26

(par $1). Price—$7.87Vi per share. Proceeds—
To go to selling stockholders.
Office—2235 South Carmelina Avenue, Los Angeles 64, Calif.
Underwriter—
stock

•'

,

</f

"•

w..

(letter of notification) $171,500 of
convertible subordinated debentures to
14

Jan.

be offered to

Alberta, Canada
June 26 filed 1,998,716 shares of common stock (par $1,
Of this stock, 1,174,716 shares are to be sold on behalf or.
the company and 824,000 shares for the account of cei
tain selling stockholders. The company proposes to offe:
the 1,174,716 shares for subscription by its shareholderi
at the rate of one new share for each three shares helc
(with an oversubscription privilege). The subscriptioi
period will be for 30 days following issuance of sub '
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt
edness, and the balance if any will be added to working
capital. Underwriter — P a c i f i c Securities Ltd., Van
couver, Canada.

be

offered

for

★

Pioneer

Trading Corp., Bayonne, N. J.
10,000 shares of $8 cumulative preferred

filed

10

stock, series A (par $100) and $1,000,000 of 8% subordin¬
ated debentures, series A, due Dec. 1, 1968 to be offered
in units of a $500 debenture and five shares of pre¬
ferred stock. Price—$1,000 per unit.
Proceeds — Fot
general corporate purposes. Underwriter—None. State¬
ment withdrawn Jan.
v

•

;■

used in connection with the

the discharge of short-term obligations,
which were so used. Underwriter—The
Corp., New York.

•

Sports

for

Price—Of

debentures, at par

(in units of $100 each);

investment#
Va. Under¬

writer—None. Statement withdrawn Dec. 3.

5.

Aug. 18 filed 209,993 shares of common stock (par $1.50)
Prov-,
inees of Manitoba, Saskatchewan and Alberta and tc
residents of the United States "only in the State of North
Dakota."
Price
$3 per share. - Proceeds — For con¬
struction purpose.
Office—Saskatoon, Saskatchewan
Canada. Underwriter—Allied Securities Ltd., and United

to be offered for sale to residents of Canada in the

—

★ Prudential Enterprises, Inc.
(letter of notification) 200,000 shares of common
(par one cent) of which 170,000 shares are to be
sold by the company and 30,000 shares by a selling

f.

$6

$1.50 per share.
Proceeds — For
and working capital.
Office—1108

—

expansion
Skeet, N.W., Washington 6, D. C.
Co., Washington, D. C.

Underwriter—

John C. ICahn

(2/17)
$25,000,000 of first mortgage bonds, series
Proceeds—To

repay

bank loans and

Underwriter—To be determined

by

competitive bidding.
Probable bidders:
Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); The First Boston Corp.; Blyth & Co., Inc.;
Glore, Forgan & Co.; Harriman Ripley & Co. Inc.
Bids—Expected to be received up to 10:30 a.m. (CST) on
Feb. 17, at Room 2000, 11 So. LaSalle St., Chicago, 111.

>

share): Proceeds-^-To selling stockholders. Office
Rd.; Great Neck, N. Y. Underwriter-*

per

■

None.

\

Standard

Jan.

Manufacturing Corp.

(2/16)

T

16

(letter of notification) 150,000 shares of class A?
-common stock, (par 10 cents).
Price—$2 per share. Pro*,
ceeds—To pay loans; purchase machinery,4ools and dies;
inventory; and. for working capital. Office—1160 South

Park^Ave., Chicago 24, 111. Underwriter—Plym-

Central

.outh Securities

Corp., New York, N. Y.

:

*

•

& Signal Co. '•••••
L:
(letter? of notification) 300.000 shares of com-}
mon
stock. Price—At par ($1 per -share). Pro#eeds— I
To promote and expand the development of the Safety!
School Shelter business. : Office—c/o Brown Kendrick,!
Standard Sign

Dec.

17;

6130

Preston

Haven

Drive; Dallas, Texas.

Underwriter)

after Jan.

Underwriter—None.

Life, Health & Accident Insurance Co.
*3
July 9 (letter of notification) 50,000 shares of common3
stock (par $1L
Price—$5 per share. Proceeds—To be0
invested in stocks and bonds and to acquire other lifted

,

;...

,

Products, Inc.
Dec. 29 filed 250,000 shares of common stock

(par 2%

per

tion and
surance

★ Raindor Gold Mines, Ltd.
(letter of notification) 290,000 shares of common
(par $1). Price—$1 per share. Proceeds—To prove

stock

and for road and camp construction. Office—At

Suite 322, 200 Bay St., Toronto,

Ont., Canada, and c/o T.
Arnold, Wilson Circle, Rumson, N. J. Underwriter—
Sano & Co., New York, N. Y.
Rassco Financial Corp.
June 26 filed $1,000,000 of 15-year 6% series A
sinking
fund debentures due 1973, to be offered in denomination!
of $500 and $1,000. Price—At par. Proceeds—For work¬

of¬
45,000 outstanding shares
Savings & Loan Associa¬
3,000 shares of capital stock of Silver State In¬
Agency, Inc., both of Denver, Colo.

—

Reynolds Metals Co.

•

(2/11)

12

filed 550,000 shares of second
preferred
convertible series (par $100). Price—To be

stock,

supplied by

common

—




Inc.,

'

-

Junior Publications

Inc.

(2/24)

.

/

;

stock and warrants

purchase of an additional 150,000 shares of com-;
stock, to be offered in units of one share of stock
on© warrant? Of this offering,
120,000 units will be

—$2.50 per unit.

Proceeds—To repay loans'by company
official? and past-due payables owing chiefly to Promo¬

Press; and the balance for working capital and ex¬
pansion of circulation. Office—225 Varick St., New York.

Corp.

Former

Name—

Bag for

America, Inc.

Sheridan-Belmont

Eag-Camp Paper Corp.

(par $6.66%)
being offered'in exchange for shares of capital stock ol
Highland Container Co. in ratio of 0.58 share of Union

St., N. W., Washington 7, D. C. Investment Advisor—In¬
Management

Union

Jan. 8 filed 23,282 shares of capital stock

1033-30th

one

share of Highland. The offer will expire at

3:30 p.m.

Hotel

(EST)" on March 2, unless it is accepted prior
expiration of stockholders holding more than 25,000
the outstanding shares, the exchange offer will be can¬

to its

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertible

of

debentures due Sept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital.
Office — 3175

celled.

Sire Plan of Elmsford, Inc., New York (2/16)
Nov. 10 filed $250,000 of 6% 10-year debentures and 5,000 shfares of 6% participating preferred stock (par $50)

quisition of ordinary stock of The British Aluminum Co
Ltd. and to meet the cost of any additional acquisition
stock. Underwriters—Dillon, Read & Co.

•

tion

Price—At

North Sheridan Rd.,

of such

'•

•

stock.

Office

amendment. Proceeds—To be used to the extent
required
ac¬

White, Weld & Co., both of New York.

Underwriter—Charles Plohn & Co., New York.

to reimburse the company's

treasury for the cost of

(par $9).
— For

offered for fhe account of the company and 30,000 units
will be sold for the account "of selling stockholders. Price

Industry, Inc.

Proceeds—For investment.

Fund

TV

and

Underwriter—Kay & Co., Inc., Hous¬

12 filed 50,000 shares of

Shares in

Co. and

mon

Insurance Co.

Shares in American

vestment

of common stock

for the

,

market.

Corp., Orlando, Fla.
Sept. 22 filed 100,000 shares of class A common stock
Price—1To be supplied
by amendment. Proceeds—Foj
working capital
Underwriter
Citrus Securities Co.
Orlando, Fla. Statement withdrawn Jan. 14.

•

Office—Branchville, N. J. Underwriter—None.

Dec.

(2/24-25)

Jan. 26 filed 150,000 shares of common

(after giving effect to a stock di¬
vidend of ll1/2%). The warrants expire on March 16,
1959. Price—$35 per share. Proceeds—For working cap¬

★ Reichhold Chemicals, Ltd. (England)
Jan. 30 filed 80,000 American
depositary receipts for
ordinary registered shares. Depositary—Guaranty Trust

shares

Road, Taos, N. M. Underwriter—None.

13 2/17th shares held

Worth, Tex.
ton, Tex.

(James), Inc.

filed T50,000

4

• Taos Minerals Co., Inc.
Jan. 29 (letter of notification) 250,000 shares of common
stock. Price—At'par ($1 per share). Proceeds—For min¬
ing expenses?4 Address — P. O. Box 13, North Pueblo

share for each

Fort

Remo

&

(letter of notification) 8,500 shares of common
capital stock (par $10) to be issued to stockholders upon

basis.

6% bondi

'general corporate purposes.'Underwriters—F. Eberstadt.

Selected Risks Insurance Co.

Sept. 26 (letter of notification) 3,567 shares of common
stock (par $1). Price—$18.75 per share
Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,

Co. of New York.

• Talcott
Feb.

ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New
York, on a "best efforts

;

•Price—To be supplied by amendment. Proceeds

Jan. 23

Life

-. .

Southwest Shares, Inc.; Austin. Texas

—

Service

-

975,000 shares of common stock (par 10 cents). Prl«*
—For bonds, 95% of princmal amount; and for stock $)
per share? Proceeds—To erect and operate one or mor#
chemical processing plants using the Bruce - William#
Process to beneficiate manganese ores.
Underwriter-i-

Underwriter—Reilly, Hoffman & Co., New York.

ital.

^

.

March 31 filed $2,000,000 of first lien mortgage

—To purchase molds and equipment required for the full
scale manufacture of portable recording machine units.

one

on

and

(2/9-13)

the basis of

Proceeds—To put

Strategic Minerals Corp. of America, Dallas, Tex,;

14 (letter of notification) 18,000 shares of common
stock (par $1) to be issued upon exercise of stock options
held by underwriters. Price—$1.50 per share. Proceeds

on

each.

Drive, Wilbraham, Mass.

Jan.

exercise of warrants

partnership*

shows. Underwriter
—None. General Partners—Walrath J. Beach, 106 Longhill St., Springfield, Mass, and D. Robert Gleason, Wilton

...

it Sawhill Tubular Products, Inc. (2/25)
Jan. 30 filed 225,000 outstanding shares of common stock.
Price
To be supplied by amendment. Proceeds—To
selling stockholders. Office—27 Council Ave., Wheatland,
Pa. Underwriters—McDonald & Co., Cleveland, Ohio;
and Kidder, Peabody & Co., New York,

-•*

agreements in an amount not to exeeed $150,000 in unit's*
of $500

Saratoga Plastics, Inc.

Expected

•■?3

Jan.

writer—None.

San Diego Imperial Corp., San Diego, Califs
9 filed 845,000 shares of common stock, to be

—

-

it Storrowton Musical Theatre Co.
26
(letter of notification)
limited

Proceeds—For additional
Under¬

share.

31,: 1959.

Y. Offering

companies. Address—P. O/Box 678, Gulfport?
Underwriter—Gates, Carter & Co., Gulfport, Migi.

Miss.

holders at the rate of one new share for each four shares

Price—$2.50

Co.; New York, N.

insurance

cents), to be offered for subscription by common stock¬
held.

&

State

St. Paul Ammonia

Jan. 28

Jan.

/

—Sano

•

Public Service Co. of Indiana, Inc.

★

,■*.

;•

Inc.

(Delaware)

—33 Great Neck

it Royal McBee Corp.
26 (letter of notification) 1,867 shares of common
(par $1) to be awarded to sales personnel; distrib¬
utors, dealers, and service personnel, pursuant to a sales
contest.
Office—Westchester Ave., Port Chester, N. Y.

stockholder.

up ore

Arenas

(par one
Price—At the market (but in no event less than;?

•cent).

fered in exchange for all of the
of capital stock of Silver State

for construction costs.

■'

<

•,.

Jan.

Dec.

M, due Feb. 1, 1989.

r

Nov. 18 filed 461,950 shares of common stock

it Routh Robbins Investment Corp.
of common stock. Price—$1
per share.
Proceeds — For investments and working
capital. Business — Real estate investments.
Office —
Alexandria, Va. Underwriter—None, v

Jan. 15

Jan. 21 filed

other

.

Jan. 29 filed 475,000 shares

stock

16th

10-^year convertible de^T

of 6%

expand

Sports

working capital. Office—South St. Paul, Minn.

Securities, Ltd., both of Saskatoon, Canada.

general

Inc.

.(Delaware)

stock

Prairie Fibreboard Ltd.

Price

Arenas

filed $2,000,000

18

installations, fixtures and equipment; $85,000?
.two present establishments by increasing
the number of alley beds by eight at Yorktown Height? <
and by six at Wflton Manor Lanes, Fort Lauderdale; :f
$300,000 for deposits on leaseholds, telephones and util-?
itres; and $395,000 for working capital. Underwriter—
None.:
'
;
v*.
-, •,
• ^
'•* ??■'

to

•

and of stock, $1 per share. Proceeds —• For
and working capital.
Office—Alexandria,

,

(subordinated), due Jan. 1, 1969. Price—To beO
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to payj

Routh Robbins Investment Corp.

Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock

< v.

Co.; (2/17)

bentures

gram, including
the proceeds of

First Boston

Brothers, New York.

Southwestern States Telephone

Nov.

Proceeds—To be

company's construction pro¬

,

common

Jan. 27 filed 150,000 shares of common stock, of which (
are to be offered for public sale and Id,- <•
000 to company employees. Price — To be supplied by
amendment. Proceeds—For construction program. Office
—300 Montgomery St., San Francisco, Calif. Underwriter?
—Dean Witter & Co., San Francisco and New York.
^) :

Feb. 5, 1959, at the rate of one new share for each nine
shares, or portion thereof, then held; rights to expire on
Feb. 24. Unsubscribed shares to be offered to employees.

amendment.

t

'140,000 shares

subscription

Price—To be supplied by

by

Lehman

of common stock (no par) to
by stockholders of record

Jan. 16 filed 280,000 shares

„

1, 1979 being offered for subscrip-r *
stockholders on the basis of $100"prin- ^
cipal amount of debentures for each 25 shares of stock J
held on or about,Jan. 15; rights to expire on Jan. 3q.
Price—100% of principal amount. Proceeds—To reduce J
bank loans and for working capital.
Underwriter —?
tion

(2/6)

Electric Corp.

Rochester Gas &

:

Inc.
of 5%% convertible subordinated

Marchant,

debentures due Jan.

Petroleum Ltd.,

Richwell

Neary, Purcell & Co., Los Angeles, Calif.
Nov.

Smith-Corona

Dec. 24 filed $7,443,100

of record

stockholders

}

Inc., New York.

Jan. 27, 1959 on the
basis of $100 of debentures for each 100 common shares
or
fractional part thereof held; warrants expire Feb.
16, 1959.
Price—At par. Proceeds—To purchase ma¬
terials and supplies, equipment, etc.
Address P. O..
Box 2407, Richmond 13, Va.
Underwriter—None.
common

Price—$100 per unit. Proceeds—For '4
Underwriter—Sire Plan Portfolios, ^

preferred stock.

acquisition of motels.

,

Manufacturing Corp.
six-year 5.6%

Cedar Works

ir Richmond

of capital stock. Price—Mini¬

Jan. 2 filed 300,000 shares

/

.

,

,

of

Kuhn, Loeb & Co., all of New

Reynolds & Co. Inc.. and

41

Chicago 14, 111

to be offered in units of

a

Underwriter—None

$50 debenture and

one

share

•

If the

exchange'offer is

so accepted by the hold¬
25,000, but less than 36,000 such shares,
the exchange ,offer may be cancelled at the option of
Union Bag by written or telegraphic notice to the ex¬
change agent given on or before March 4.
•?'? 7
ers

of

•

more

than

United Control Corp., Seattle, Wash. (2/18)
28 filed' 200,000 shares of common stock (par SI).
Price—To be supplied by amendment. Proceeds—To re-

Jan.

Volume

189

Number

5818

duce bank loans and for

.

The Commercial and Financial Chronicle

.

.

working capital.

Blyth & Co., Inc., New York.

.

Underwriter—

-

\

(695)

>

;

Prospective Offerings

•

.

"United

Employees Insurance r Co.\ ;
\
? j;
v.
Alabama Power Co.: ( 4/30)
April 16 filed
000 shares oi: comnioii stock
par >*.'/
.Price .— $19 per share.
Proceeds — Foracq&isition o. / Dec. :10 it was announced that the company plans the
issue and sale of $20,000,000 of 30-year first
operating properties, real:;aiiU/o/ persoiial//heludiL.4 ;
mortgage
bonds,; Proceeds — For construction program. Underoil ice: furniture, fixtures, equipment and' offiafc space, L
,,lease;,pr purchase: Office
Wiinrihgtoh; Pel.v Undei /b writer—To be determined by competitive bidding. Prob¬
able bidders:
Halsey,- Stuart & Co. Inc.; Lehman Broth¬
wri'ter-/Nuu<.;'
iVfyri- iiVkJket o/ Portland; Ore.. //V".
ers; Eastman Dillon,* Union Securities & Co., Equitable
-President..: t/
-t /(/ "/
"7"..'-'.IfSecurities Corp.. and Drexel & Co. (jointly); Harriman
■■ '"■J
United Security Life &.Accident Insurance Co:
Ripley & Co., Inc. ahd Goldman, Sachs & Co. (jointly);
Aug. 22 filed 120,000 shares of class A common stoch
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Price—per share. Proceeds—To provide the reserve* •/ Peabody &
CoF(jointly); The First Boston Corp. Regis¬
required, to be held in life and accident insurance poll*. „j
tration-Planned for April 3. Bids-fc^Expected to be re¬
cieaj: aiiri to pay the necessary expenses in producing
ceived op April 30.,:
■:
Insurance. Office^—Louisviiie, Ky.; Underwriter—None ;/
★ All American Markets, Downey, Calif.
Edmoiid.il: Smith, is President.
.

,

-*'//*//1**" 7- T"'

United

States

Glass

Chemical

&

Jan.

reported that the company plans a com¬
mon
stock offering.
Business—Chain of grocery stores.
Underwriter—J. Barth & Co., San

Corp.

Nov. 26 filed 708,750 outstanding shares of common stock* :
Price—At market. Proceeds — To selling stockholders

Office—Tiffin, Ohio. Underwriter—None.
1

JU.'S. Land

*•/

;

fering—Expected sometime

.

,

stock. Price—
($T per share). Proceeds — To be added to the
company's general funds and used to develop Pineda
Island and other properties that may be acquired. Under¬
writers—Aetna Securities Corp., New York; and Roman
& Johnson, Ft. Lauderdale, Fla., on a best efforts basis.

ket with
y

Pool Corp.
(2/16-20)
/
(letter of notification) 150,000 shares of common
.stock (par one cent). Price—$2 per share. Proceeds—
For working capital and general corporate purposes. Of¬
fice—27 Haynes Ave., Newark, N. J. Underwriter—Ross,
Lyon & Co., Inc., New York.

a

Hotel

Grand Estes

and

•

Griswold

Con¬

Ore.,

is

& Co.
★

.

,

Pres

Bids—To be received

guarantee

Puts and

Calls written

by

the

and to cover expenses. Office—730 Fifth Ave.,
New York 19, N. Y. Underwriter—Barsh & Co.; 663 Main

Ave., Passaic, N. J.

V

•

'"J~* / ;.;

/'

••

'•

★

Wenwood Organizations, Inc.
Dec. 18 (letter of notifU-'ation) 100,000

shares of common

(par 25 cents).. Price—$3 per share. Proceeds—
development and home construction in Florida;

shares

Allyn &

general corporate purposes. Office—62 Third
Ave., Mineola, L. I., N. Y. .and 2259 Bee Ridge Road.
Sarasota, Fla.
Underwriter—Michael. G", Kletz & Co..,

Inc., 30 Rockefeller Plaza, New York, N..Y. Registration
effective Feb. 3. Offering now being made.
%-Y
,.

★ .Western Gas Service Co.
v F v : .
,
Jan. 2.9 filed, 104,500 shares of common stock..of, which
it, is proposed;/ to offer 4,500 shares for subscription by
*
certain employees. Price—To be supplied by amendment..
.Proceeds—Together with other funds, will be used to
pay a short-term bank loan of $5,700,000. Office—9065
Alameda Avenue, El Paso, Texas. Underwriter—Under- •;
wood, Neuhaus & Co., Inc.', Houston, Texas.

,

William Hilton Inn Co.

'/

V-

.

v

v

The William Hilton
$600,000 of trust participation certificates, 9,000
of class A common stock
(non voting), and 600
of class B common stock (voting); to be offered

Trust,
shares
shares
in 600

units,

each consisting of 10 certificates
($100 face
amount), 15 class A shares and 1 class B share. Price—
$1,160 per unit. Proceeds—Together with bank borrow¬
ings, will be used to purchase from the Sea pines Plan¬
tation Co. a tract of approximately three acres of ocean
front property

on Hilton Head Island, to construct the
Inn, purchase all furniture, fixtures and equipment nec¬
essary
to operate the Inn and to provide necessary
working capital (and to reimburse Sea Pines Plantation
for some $20,U00 of costs advanced by it. Underwriter—
The Johnson, Lane, Space Corp., Savannah, Ga.

Wilmington Country Club, Wilmington, Del.
Oct. 27 filed $500,000 of debentures due 1991 (non in¬
terest bearing) and 800 shares of common stock (par

per

certain

members

Price—$375 per

debenture.

build

Proceeds

facilities.

—

of

this

club

and

of

share and $1,000
develop property and

common

To

Underwriter—None.

.*!.

★ Wolverine Power Corp.
Feb. 2 filed voting trust certificates for 40,000 shares of
cohimon stock. Voting Trustees

(of Boston, Mass.)

— Charles W. Greenough
and three other individuals.

★ Wytex Oil Corp.
Feb. 2 (letter of notification)

17,400 shares of class A
stock (par $1) to be issued to holders of debentures upon
exercise of warrants until Dec. 1, 1964 at the rate of 30
shares for each $500 of debeniures.;;Price—$15 per share.
Proceeds

—
For general corporate purposes, including
Payment of drilling expenses, acquisition of royalty and
reduction of debt. Office—90 State St., Albany, N. Y.

Underwriter—None.




capital stock to stockholders of record

Power

basis of one new share for each
Price—$20 per share. Proceeds—
and surplus. Underwriter—None. »

&

will

sometime in April.

(2/24)

be received by the company at 139

St., Chicago 5, 111.,

Stuart &

Co.

Columbia

Dec.

1 it

was

common

stock

in

the

may

first

issue and

half

of

1959.

Brothers and Eastman Dillon, Union
(jointly); Merrill Lynch, Pierce, Fen¬
Smith, White, Weld & Co., Shields & Co. and R.
Pressprich & Co. (jointly); Morgan Stanley & Co.
&

•

Interstate Motor Freight System, Inc. (Mich.)
was reported that the company
plans to issue
and sell 125,000 shares of common stock. Underwriters—
A. C.

Allyn & Co., Inc. and Walston & Co., Inc.

★ Jersey Central Power & Light Co.
the

12

it

sale

be determined by. competitive bid¬
Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Kidder, Peabody &
Co.; Salomon Bros. &

Hutzler and Merrill

Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly). Offering—Expected late this summer.

★ Jubilee Records
Feb. 2 it

was

stock.

Proceeds—For

way,

Kansas

13

Bank & Trust

stockholders

were

common

about

Jan.

a

one-for-six

basis

13, 1959. Price—$27
capital and surplus

Co., Tulsa, Okla.
to approve a plan to
capital stock (par $10)

to vote

ofler 100,000 shares of additional
on

per

to

stockholders

of

record

share.. Proceeds—To

in¬

crease

★ FXR,

Inc., Woodside, N. Y.

Feb. 2 it

announced that company (formerly F & R
Works) is considering some additional financ¬
ing, but types of securities to be offered have not as yet
was

Machine

been determined.

Georgia Power Co.
Dec. 10 it

was

expansion.

Office—1721

Broad¬

Underwriter—Not yet named.

v

City Power & Light Co.

'

Dec. 29 it

was reported that the
company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—

and sell

For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston Corp. and
Blyth &

Co.,

Inc. (joint&O; Equitable Securities Corp.; White,
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or

Weld & Co. and Shields & Co.

June.

'•

•

March 31, G. W. Evans,

Chairman, announced that

(9/10)

announced that the company plans to issue

and sell

$18,000,000 of 30-year first mortgage bonds. Pro¬
construction program.
Underwriter—To be
by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peabody & Co. and Shields & Co. (jointly); Lehman Broth¬
ers;
The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 14. Bids—Expected to
be received on Sept. 10.
Great Atlantic & Pacific Tea Co., Inc.
Dec.
15
the
new
common
voting stock outstanding
following 10-for-l split was listed on the New York
Stock Exchange.
A large secondary offering has been
rumored.
Underwriters
May include: Blyth & Co.,
Inc.; Lehman Brothers and Smith, Barney & Co.

ceeds—For

determined

.

com¬

plans to sell some bonds originally scheduled for
mid-year of 1958. The proposed sale was subsequently
deferred until early 1959. Proceeds — About $8,000,000
pany

fbr construction program. Underwriter—To be determined

by
competitive bidding. - Probable
bidders:
Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co., and Merrill

Lynch, Pierce, Fenner & Smith
(jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp. (jointly); Glore, Forgan & Co., and Goldman Sachs & Co. (jointly).
Louisiana
Dec. 29 it

and sell

Power

was

& Light Co.
reported that the company plans to issue

$7,500,000 of preferred stock (par $100).

Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Smith, Kidder, Peabody &

Co. and Harriman Ripley & Co., Inc. (jointly); Salomon
Bros. & Hutzler, Eastman Dillon, Union Securities & Co.
and

Equitable Securities Corp. (jointly); The First Bos¬
Corp. and Glore, Forgan & Co. (jointly). Bids—Ex¬
pected to be received sometime in April.
ton

Mercantile National

Bank, Dallas, Texas

Jan. 20 the stockholders authorized the issuance of
000

additional shares

one

new

to

stock, but
out. Business—Manu¬
meters, cameras, etc.
Underwriter—H. M. Byllesby & Co., Inc., Chicago, 111.
Jan.

sale

New York, N. Y.

increase

and

details have not yet been worked
facturer and distributor of light

First National

announced that the company plans the is¬
of $1,500,000 of convertible preferred

ahd

sale

debentures

about

ding.

★ De Jur-Ansco Corp., New York City
Jan. 27 it was reported that the company is planning the
convertible

reported that company is contemplating
$7,000,000 of first mortgage bonds.

was

of

Underwriters—To

Co.

&

of

Offering—Expected in

-

rill Lynch, Pierce, Fenner &

Lehman

Securities
ner

1959.

Co., Blyth & Co., Inc. and Shields & Co. (jointly); Mer¬

System, Inc.

reported that the company

Proceeds—To repay outstanding bank loans. Underwriter
—To be determined by competitive bidding.
Probable
bidders:

Glore, Forgaii & Co., New York.

West Van

up

Inc.; Salomon Bros. & Hutzler.
Gas

additional

sell

100,000 shares are to be sold for the account of selling
stockholders, Proceeds—For expansion. Underwriter—

Kansas Gas & Electric Co.

to noon (CST) on Feb. 24
purchase from it of $5,130,000 equipment trust
certificates maturing semi-annually from Aug. 15, 1959
to Feb. 15, 1974, inclusive.
Probable bidders: Halsey,

,

Heublein, Inc.

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which

Light Co.

the

for

W.

together with

to

March 31.

on

if Chicago, Rock Island & Pacific RR.
Buren

offered

of

to be received

Bids

for

be

the

Co., Inc., and Bear, Stearns & Co. (jointly);
Dillon, Union Securities & Co. Bids—Expected

Eastman

and

Concord Ltd.

plans

Feb. 20, 1959, on the
five shares then held.

For land

$25)' to

company

26 it was reported that the company plans to sell
$11,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, #tuart & Co. Inc.: Blyth & Co., Inc.; Lehman Bro¬
thers and Glore Forgari & Co.'(jointly); Kidder, Peabody
& Co.; Merrill Lynch, Pierce, Fenner & Smith and Salo¬
mon Bros. & Hutzler
(jointly); Kuhn, Loeb & Co., A. C.

company;

Jan, 19 filed

the

Central Bank & Trust Co., Great
Neck, L. I., N. Y.
13 stockholders approved the sale of an additional

38.503

plans to issue
$7,000,000 of 30-year first mortgage bonds. Proceeds-^For construction program.
Underwriter—To be
determined, by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith, Salomon Bros. & Hutzler and Drexel & Co.
(jointly); Eastman Dillon/Union Securities & Co.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra¬
tion—Planned for March 6.
Bids—Expected to be re¬
ceived or? April 2.
1

suance

(3/31)

Jan.

y

(letter of notification) 60,000 shares of common
Price—$5. per share. Proceeds—To be
deposited with, member firms of the New York Stock
to

that

announced

was

To increase capital

(no par).

Exchange

shares

Jan.

27

stock

it

21

Central

if Venture Options, Inc.
stock

149

16.

Price—$35 per
share. Proceeds—To increase capital and
surplus. Un¬
derwriters—Hallowell, Sulzberger, Jenks, Kirkland &
Co. and Stroud &
Co., Inc., both of Philadelphia, Pa.

klent.

Jan.

for each

Feb.

Inc.; Carl M. Loeb, Rhoades & Co. and Bear Stearns &
Co. (jointly); White, Weld & Co.; and
Kidder, Peabody

Proceeds—For exploratioi
named by, amendmeni
Portland.

stock

on

and sale of 300,000 shares of common stock. Pro¬
ceeds—To repay bank loans and for
expansion program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Merrill Lynch,
Pierce, Fenner & Smith

be

of

common

issue

Uranium Corp. of America, Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock (paj
16 cents).
Price—To be sunnlied by amendment (ex-

Albert

shares of

new

held; rights to expire

Jan.

—

pected to be $1 per share).
Underwriter—To

Street Trust

California Electric Power Co.

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer County, Colo.
Office
330 South 39th Street, Boulder, Colo. Under¬
writer—Mid-West Securities Corp., Littleton, Colo.

Graham

16

then

vention

•purposes.

equity type offering. This will be done

new

(4/2)

announced that the company

and sell

Jan.

Broad

of

★ United Tourist Enterprises, Inc.
**
Jan. 28 filed 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"
of

a

was

Dec. 1 it

Co., Philadelphia, Pa.
Feb. 2 it was announced that the Bank is
offering 32,000
additional shares of common stock (par
$10) to its com¬
mon
stockholders of record Jan. 21, 1958, on the basis

United States

for construction

April.

privately.
★

Jan. 16

and

in

American Airlines, Inc.

Jan.
13, Wililam J. Hogan, Executive Vice-President,
Finance, said this corporation may soon be in the mar¬

Development Corp- (2 16-20)

At par

★

was

Francisco, Calif.- Of¬

16 filed 1,055,000 shares of common

Jan.

30 it

Gulf Power Co.

Dec. 10 it

43

of

common

stock

share for each 10 shares held

expire

on

on

the

125,-

basis

of

Jan. 20; rights

on Feb. 6. Price—$26 per share. Proceeds—To
capital and surplus. Underwriters — Rauscher,

Pierce &

Co., Inc. and First Southwest Co.,. both of Dal¬

las, Tex.

*'

4

Miami Window Corp.
Dec. 15 it was reported that the company plans issuance
and sale of $2,500,000 6V2% debentures due 1974 (with
attachable
warrant

to

warrants—each

$1,000 debenture to carry a
buy 200 shares of common stock at $3 per

share). Underwriters—Cruttenden, Podesta & Co., Chi¬
cago, 111., and Clayton Securities Corp., Boston, Mass.
Offering—Expected late in February or early in March.
Mississippi Power Co. (6/25)
announced that this company plans to
$5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬
Dec.

10

it

was

issue and sell

ceived

June 25.

on

Monongahela Power Co. (3/31)
Dec. 29 it was reported that the company plans the sale
of about $16,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Eastman Dillon, Union Securities &
Co. and Salomon Bros. & Hutzler (jointly); Harriman

Ripley &
Langley

Co., Inc.;
& Co. and

Equitable Securities Corp.; W. C.
The First Boston Corp. (jointly);

—

Continued

on

page

44

44

The Commercial and Financial Chronicle

(696)

Continued

from

Stearns & Co., New

Merrill Lynch, Pierce, Fenner & Smith;
& Co. and White, Weld & Co. (jointly).
to be received
National

Kidder, Peabody
Bids—Expected

stock

State

the

on

chares then held
16.

Price—$50

©nd

Pennsylvania Electric Co.
12 it was reported that the company is planning
$17,000,000 of first mortgage bonds. Un¬
derwriter
To be determined by competitive bidding.

surplus.

basis

of

one

—

Union

North American

Equitable Life Assurance Co.
Dec. 1 it was announced that the company plans an of¬
fering of 950,000 shares of capital stock. Price — $10 per
chare. Proceeds—To increase capital and surplus. Un¬
derwriter—John M. Tait & Associates, Cincinnati, Ohio
Dec.

it

12

Gas

the

Ryder System, Inc.
was reported that the company plans the issu¬
and sale of 150,000 shares of common stock (par $5).
Proceeds—For acquisitions. Underwriter—Blyth & Co.,
/an. 12 it

ance

Inc., New York. Offering—Expected any day.
Southern Electric Generating

it

29

that

reported

was

the

and

—

Northern Pacific

it

26

bids up to noon (EST) on Feb. 10 for the purchase from
ft of $4,850,000 of equipment trust certificates. Probable

bidders:

Halsey,

Hutzler.

1

Stuart

& Co.

Salomon

Inc.;

program.

Southwestern Electric Power Co.
26

it

was

reported

that this

company

(formerly

Southwestern Gas & Electric Co.) plans the issuance and

•

sale of about

Our River Electric

Co., Luxemburg
was reported that this company plans to offer
$10,000,000 of bonds. Underwriters—The First Boston
Corp. and Kuhn, Loeb & Co., both of New York.
Corp.
28, Alfons Landa, President, said the company may
offer its stockholders $7,000,000 additional capital stock
through subscription rights. Purpose—To acquire Fair¬

only

single issue of

a

consequence

is

and this

a

one

Feb. 2 it

ing

it

was

reported that the company plans

June

on

•

financing

of

it

imburse

second

the

Brothers

and Eastman Dillon, Union Securities & Co.
(jointly); The First Boston Corp. and Harriman Ripley
& Co. Inc. (jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be received
on

May 26.

.

Wisconsin

Power

preferred,

treasury

Aluminium

the

books

closed

its

on

latest exchange offering involving
$15 billion of maturing is¬

©ome

the Treasury today is taking

sues,

«tock of the response of investors

to

terms

fixed

for

reported that the company contemplates
$14,000,000 first mortgage bonds.- Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Robert W. Baird & Co. (jointly); Equitable Securi¬
ties Corp. and Eastman Dillon, Union Secui'ities & Co.
(jointly); White, Weld & Co., Kidder, Peabody & Co.
and Salomon Bros. & Hutzler (jointly); The First Boston
Corp. Bids—Expected to be received on April 15. Regis¬
tration—Planned for March 9.
'
.'■*
?
I
f

early

«

Worcester Gas Light Co.

Aug. 18 it
of

was

reported that the

plans the sale
Proceeds—For con¬
Underwriter—To be determined by

that portion of its
Results

within

couple

a

refinancing

debt.

should

for

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook & Co. and Coffin & Burr, Inc.
(jointly); Kidder, Peabody & Co. and White, Weld &
Co. (jointly).

Stock at $25 Per Share

of

days

will be interesting to

4he

market

■3%%

the

and

up

three-

for

ex¬

It is

long time since Treasury

a

officials

have

been

stirred

.attrition.
with

tiad

The

Treasury

flat denial that any official

a

such

expressed

In

out

came

the

interval

nouncement

projected

well.

view.

the

the

an¬

type of issues

has

been
has

behaving
not

quite

been

any

•ecrious

selling pressure in evi¬
dence and the list has been mixed
«at worst.
With
out

this

enormous

of the way, the
for a couple

least,

or

when

it

until

probably

obtain

an

weeks

can

at

time in April

some

In the market with
to

of

will
a

be

re-

Knockout

winning

s

subsequently ruled out
technicality.
r

a

ine

apparently

dicate had entered
a

share

for

successful syna bid of
$34.93

the

big equity offerprobably was engaged in
preliminary work on reoffering
the stock upon clearance of the
deal i by the Securities and Exchange
Commission
when
the

ing and

"technicality"
The

stock

announced.

was

seemingly

ond1
ond
a

group whfch had
group which
share and prepared

was

bid

$34.83

to

reoffer

a

40-cent

publicly at $35.50 with

allowance

des-

o/e-ethth^ " ^

of

be

new

back

offering

undisclosed amount

Joins Fusz-Schmelzle

Clear Track Ahead

almost

unbelievable

situations




t

Until late in the year 1958,
earnings of Louisville & Nashville fell short of covering the
regular $1.25 quarterly dividend,
This was caused by a drop in

VERNON, 111.

Reichert
with

has

—

become

Fusz-Schmelzle &

1123 West

Henry

E.

associated

Co., Inc.,

Broadway. Mr. Reichert

Chicago.:—

—

-

^

w

months of 1958 were off 8% from
the like 1957 period and, in spite
of a late start in cutting expenses,

256

fer

of

nation-wide group

a

underwriters who

will of¬

today (Feb. 5) 2,900,000 shares
stock of Universal Oil

common

Processes, Inc., a new company
operating costs were cut 8.3%. organized by the three managing
The $15,500,000 cut in expendi- underwriters to acquire the assets
business
of
Universal
Oil
revenues and no reduction of any
tures, along with a $2,900,000 re- and
Products Co.
The stock is priced
consequence in expenses. The lat- duction in taxes, completely offter was mainly due to the neces- set the entire $18,000,000 loss in at $25 a share.
sity of completing improvements revenues.
However,
the
sharp
The proceeds from the sale of
already underway.
However, at drop in equipment and joint facil- the stock will be used to purchase
the present time the road seems ity credits from $14,100,000 in the from
Guaranty Trust Co. of New
to be in a position to benefit from first 11 months of 1957 to $8,500,York, as trustee of the Petroleum
the
improvements,
particularly 000 in 1958 was practically the Research Fund, all of the out¬
with traffic showing some gain.
difference in profits for the pe- standing shares of capital stock of
Even though traffic continues to riod.
Universal Oil Products. The
rUn under the year earlier period,
Chemical
Net
income
for
the
first
11 American
Society is
though not to the extent of pre- months last year amounted to presently entitled to receive the
vious months, the road is bringing
$11,329,000, equal to $4.65 a share net income from such trust fund
down a larger proportion of gross as
compared with $16,571,000 or to be used for advanced scientific
revenues to net operating income.
$6.80 a share in the like 1957 pe- education and fundamental re¬
If carloadings should show fur- riod. For the full
year, it is es- search in the petroleum field.
ther gains, then net income likely timated
earnings were under $6
The corporate title of Universal
could expand rapidly despite low- a
share, just silghtly more than Oil
Processes, Inc. shortly will be
er
equipment and joint facility the $5 annual dividend,
changed to Universal Oil Prod¬
credits, which are an important
A
of Oot
oi
iq5o
cash and
income factor.
L.

N.

&

to

placing
tional

has

its
an

made

car

order

large addi-

shows

for

further

increases,

on
a

foreign lines should bring
good recovery and also

lieved the road will continue its
improvement policy and, consequently,
maintenance
expenses
probably will continue at

a

fairly

j*vel; H™r' lowerofFedfart this
e absorbed by

eral income taxes.
Gross revenues for" the first

11

The original
commenced

current

Tables

*29 500 000
p^i^i

Da?ed

WL

formed

onthat
Net

*51200 000

with $56 000 000

date

working
a<?

rom-

at the end

depreciation is substantially
the $i0,400,000 equipment

aboye

^ other debt due over the next
19mnnfhc

to

thermal

vance

acquire

cracking

in the

The

source

corporation, which

business in

represented

oil.
from

process

methods

process

of royalty

is

of

no

Properties Inc.

(Special to The Financial Chronicle)

Inc. has been formed with offices
aj. i2Qi^ South Seventeenth Street,

to engage in a securities business.
Richard R. Gray is President./

was

to

a

which

considerable

a

ad¬

refining
longer

a

income but the
and improved

position through the develop¬

ment of new processes.

Form Oil

1914,

patents

company maintained

its

MATTOON, 111.—Oil Properties

w

Co.

ucts
-

nnnof$27 000 000

recently
3,000 cars

Improvement in coal loadings and
cais

ca^ eauivalents amoun'ted to $34

fleet,

maJ be later this by ^
orders /ft
year
if

traffic"

to/, orfmeDa%nportQL1and &PSor
thereto with Negley, Jens & Rowe
and Allan Blair &
Company of

of

managers

of

ir}£r?.ase rentals from cars thatbego
off line with the coal.
It is

(Special to The Financial Chronicle)

of cash.

Next week presents one of those

Louisville & Nashville

about

MT.

"

Brothers, Smith, Bar¬
ney
& Co. and Merrill Lynch,
Pierce, Fenner & Smith, Inc. are

tions

operation

Treasury

relax

position to

a

appeared

the

on

exchange for
the
debts, the government

There

have

day, was

in

maturing
market

of

a

since

which

for a spell to
bid for Southern
1,350,000 shares of common
stock, put up at auction yesterbe

up

«juite as they were by reports
purporting to come from an offi¬
cial, expressing fear of sizable

issues

Technical
What

Co.

change.

entering into the

in

in

are

it

one-year

the

4% note offered

year

and

Co.,^ Ltd., in

vived quickly.

just how

see

greeted

certificate

available

the

>

Lehman

funds

abeyance to make
appearance.
Several such is-

its

sues

be

of

held

been

company

$5,000,000 first mortgage bonds.

struction program.

.

So, all in all, this would present
splendid opportunity for one or

more

(4/15)

was

re¬

company.

a

Light Co.

the sale of

con¬

fight to block Aluminum Co.

of America from

With

&

Universal Oil Common

defray the cost of its
acquisition of ordinary stock of

the

$15,000,000 of first mortgage bonds.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman

any

to

British

(5/26)

reported the company contemplates the

was

issue and sale of about

senior equity.

vertible, set for marketing to
used

that Federation is contemplat¬

on

West Penn Power Co.

Dec. 29

Reynolds Metals Co. has 550,000
shares

2.

announced

was

some new

for marketing

up

Proceeds—To increase capital

share.

the American market: Under¬
writer—Kuhn, Loeb & Co., New York. Registration—
Expected this week.

Thomas & Betts Co.
Nov. 24

received

be

Pierce, Fenner & Smith Inc. and Eastman Dillon, Union
& Co. (jointly); Equitable Securities Corp.;
Lehman Brothers; Kuhn, Loeb & Co.; Blyth & Co. Inc.
Bids—Expected to be received in April or May.

1 Penn-Texas

where

$16,000,000 of first mortgage bonds. Under¬

per

^ West Indies Federation (Jamaica)

Securities

Jan.

stockholders of record

its

Virginia Electric & Power Co. (6/2)
/
was reported that the company plans the sale
$20,000,000 to $25,000,000 of additional common
stock.
Proceeds—For construction
program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Merrill Lynch, Pierce, Fenner & Smith;
Stone & Webster Securities Corp.
Bids—Expected to

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch,

Dec. 22 it

Price—$35

Jan. 12 it

(2/18)

are

Jan.

&

Bros.

30-year first

of

construction

expected to be received by the company at
Room 2117, 165 Broadway, New York, N. Y., up to
noon
(EST) on Feb. 18 for the purchase from it of $7,125,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

(2/10)

Ry.

$25,000,000

Southern Pacific Co.
Bids

reported that the company will receive

was

sell

Proceeds—For

$25,000,000 to $30,000,000 of
bonds due 1989. Underwriter
To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Lehman Brothers
©nd
Bear, Stearns & Co. (jointly); Eastman Dillon,
Union Securities & Co.; The First Boston Corp.; White,
Weld & Co.; Dean Witter & Co.; Blyth & Co., Inc. and
Merrill Lynch, Pierce, Fenner & Smith (jointly); Harriman Ripley & Co., Inc.
Bids—Expected to be received
before April 1.

Jan.

(5/28)
plans to issue

mortgage bonds.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody
& Co. and White, Weld & Co. (jointly). Registration—
Planned for May 1. Bids—Expected to be received on
May 28.

plans sale
first mortgage

company

from

Co.

Dec. 10 it was announced that the company

Northern Indiana Public Service Co.
Dec.
of

to

subscribe for 10,000 additional

of from

Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on June 2.

stock issue.

offered

Jan. 5 it

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn
& Co. and Lehman Brothers (jointly); Morgan

will sell in
including some

Bank

and surplus.

Loeb

Proceeds—For capital ex¬
penditures. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Glore, Forgan & Co.;
Blyth & Co., Inc.
preferred

a

5.

$30,000,000 to $40,000,000 debentures. Underwriter—To
competitive bidding. Probable bidders:

first mortgage bonds; in addition, there is a possibility
of

the

shares of capital stock (par $25) at the rate of one new
share for each five shares held; rights to expire on March

be determined by

company

1959 about $35,000,000 of new securities,

15

Jan. 15, 1959 the right to

Jan. 30 it

Co.

reported that

was

Uptown National Bank of Chicago
Jan.

* Public Service Electric & Gas Co. (6/2)
was reported that the company plans sale of

per share. Proceeds—To increase capital
Underwriter—Clark, Dodge & Co., New

Illinois

Co., New York. Registration—Expected in February.

White, Weld & Co. (jointly); The First
Boston Corp. and Harriman Ripley & Co. Inc. (jointly).
Offering—Expected this Spring or early Summer.
& Smith Inc. and

York.

Northern

Peabody & Co.; Eastman Dillon,
Merrill Lnych, Pierce, Fenner

Securities Corp.; Kidder,
Securities & Co.,

share for each six

new

Stuart & Co. Inc.; Equitable

bidders: Halsey,

Probable

com¬

of Jan. 23; rights to expire on Feb.

as

&

Jan.

the sale of about

Bank, Newark, N. J.
Jan. 27 stockholders were offered 80,000 shares of
mon

registration of about 250,000 to 300,000 shares of common
Price—To be supplied by amendment. Proceeds
selling stockholders. Underwriter—Smith, Barney

stock.

York.

—To

March 31.

on

Underwriter—Bear,

banks, Morse & Co. common stock.

43

page

Thursday, February 5, 1959

.

.

.

Current¬

ly the principal royalty-producing
processes

are

pany

Fluid
C

a

t

a

"HF"

licensed
the

UOP

the

com¬

Platforming,

Cracking,

UOP

Condensation,

UOP

Catalytic
1 ytic

by

Alkylation and Udex.

'

Volume 189

Number 5818

.

.

The Commercial and Financial Chronicle

.

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

Indicated Steel operations

(per cent capacity)

—Feb.

or

Week

s/y.7

or

month available*

month ended

Previous

Week

AMERICAN IRON AND STEEL INSTITUTE:

Month

on

Steel

(net tons)

ingots and castings

—Feb.

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
42

Ago
54.0

§2;256,000

*2,178,000

2,085,000

7,193,535

7,128,835

6,923,185

8,165,000
29,105,000
2,621,000
14,208,000

7,987,000

.Jan. 23

118,311,000

•Jan. 23

23,101,000

Kerosene

.Jan. 23

2,465,000

.Jan. 23

15,009,000

Jan. 23

7,779,000

7,629,000

to

stills—daily average (bbls.)

(bbls.)_
output (bbls.)

Distillate fuel oil output
""

Residual fuel

(bbls.)
(bbls.)

oil output

terminals, In transit,, in pipe lines—
and unfinished gasoline (bbls.) at
Jan.

Stocks at refineries, bulk
.

Finished

-

Production of primary aluminum in the tr. S.
(in short tons)—Month of September

Revenue

Revenue

23

192,583,000
21,388,000

100,402,000

—Jan. 23

59,924,000

23,235,000
*109,095,000
59,368,000

24

553,845

586,254

24

524,800

534,064

Jan.

125,416
145,205

7,639,000

26,449,000

6,455,800

5,523,300

6,672,600.'

6,268,300
13,700

5,393,200

6,483,900

173,800

120,200

493,259
17,725
333,035

607,304

424,713'

22,843
404,056

267,796

142,499

180,405

143,155

*8,817,778

8,392,919

5,386,292

6,550,690

241,378,000

236,961,000

237,011,000

216,304,000
25,039,000
35,000
28,885,000

212,972,000
23,955,000
34,000

212,106,000

Natural gas sales

(M therms).
Manufactured gas sales (M therms)
Mixed gas sales (M therms)
;

2,397,000

12,543,000

7,424,000

CONSTRUCTION

181,635,000
26,155,000

130,410,000
61,629,000

203,256,000

Total

laundry appliance
(domestic)
Combination washer-dryers
Washers

57,810,000

State and municipal
'Federal

—

——

.

(tons)

and lignite

coal

551,088
539,203

29

$418,223,000

29

231,413,000

29

29

186,810,000
125,952,000

29

60,858,000

Tan. 24

—

Pennsylvania anthracite (tons)

$388,080,000
181,677,000
206,403,000
109,377,000
97,026,000

$273,226,000
61,992,000
211,234,000
147,107,000

$389,731,000
139,953,000
249,778,000
215,818,000

fan. 24

.

reserve
—
—-Jan.

edison electric

failures

kwh.)—;—

(commercial and industrial)

bradstreet, inc.

———

—

iron *a€® composite prices:
Finished-steel (per IB.)--——

64,127,000

33,960,000

Pig iron (per gross ton,)——L

8.290,000

8.005,000
442,000

Sprap steel (per gross

24

6,215,000

8.285,000

587,000

•

450,000

537,000

105

-

116

ton)———-—

322

27

6.196c

__Jan.

27
27

Jan.

-

\

.

205

-

100

13,394,000

12,364,000

326

6.196c.

6.196c

5.967c

$66.41

$66.41

$66.41

$66.42

$42.50

$41.17

$39.83

$35.00

296

:

Zine

U. S. Government

New freight

19.950c

28

12.000c

13.000c

13.000c

13.000c

11.800c

12.800c

12,800c

12.800c

12.000c

12.000c

12.000c

11.500c.

11.500c

10.000c

24.700c

24.700c

carriers

26.000c

100.125c-

99.750c

99.000c

85.54

85.13

86.19

3

93.65

tons)—

—

89.64

90.20

95.92

3

93.67

93.67

94.56

102.80

3

92.20

92.35

93.08

99.52

3

89.64

89.78

89.78

96.23

To

83.53

83.53

83.91

86.24

To

Asia

South America

S.

exports of Pennsylvania
(net tons)
North and Central America
(net

Feb.

3

88.13

88.13

88.27

91.62

To

3

89.37

89.37

90.06

97.94

3

91.62

91.62

92.35

98.41

U.-S*. Government Bonds

-Feb.

3

3.88

3.92

3.81

3.04

Average corporate

-Feb.

3

4.44

4.44

4.40

4.01

.Feb.

3

4.16

4.16

4.10

3.58

AVERAGES:

Aaa

^

Railroad

Group———

Public-Utilities

4.26

4.25

4.20

4.44

4.43

4.43

4.90

4.90

4.87

4.55

4.55

4.54

3

4.46

4.30

-4.25

3.85

384.3

385.3

386.6

Oven

Jan. 24

289,474

292,534

269,666
305,778

11255,176
tf295,919

266,581

—

91

93

tt91

378,182

379,895

t f364,444

111.41

111.55

110.38

ROUND'LOT TRANSACTIONS FOR ACCOUNT OF MEMBERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Total

384,440
420,040

-Jan. 10

893,850

137,740
1,029,020

-Jan. 10

1,166,760

772,710
130,840
705,307
836,147

-Jan. 10

—

"Other oales

sales

4,476,910
666,190
4,263,360
4,929,550

2,856,000
441,370
2,362,540

2,803,910

1,817,050

555,110
40,800
500,640
541,440

174,570

1,091,355
1,292,215

703,172

-Jan. 10

.

-Jan.10

-Other sales

-Jan.10

Total «ale8~~

NEW

1,478.550

t

57,900
380,510

ANCE

r

-

■

Total

4,637,565

2.958,632

1,553,248
$83,646,908

1,746,758

1,485,834
$60,550,994

$71,023,101

.Jan. 10

494,960

409,010

603,020

201,690

494^960

409^010

603~020

-Jan.10

936,740

530,290

585,930

723,910

_>Jan. 10
—Jan. 10
—Jan. 10

sales

Total

sales

WHOLESALE PRICES, NEW SERIES
"LABOR — (1947-40= 100):

•

U.

$831,137,506
666,909,187

108,958,065

80,186,624
62,000,000

114,687,960

77,100,542
64,247,326
45,000,000

97,000,000

(Number of)—

j
6,764,947
7,181,556

6,972,137

950,989
1,149,906
3,210,873

209,366

317,992
347,888
713,997

188.468

303,960
,814,494

2,898,650
3,318,609

3,566,665
3,767,846

8,371,927

7,869,030

2,735,619
3,242,647
7,444,444

and Bus Tires

;

(Number of)—

:—

^Number

Tractor-Implement Tires

Motorcycle,

Passenger

of )—

Tubes

Truck
(Number of)—

and

lius

258,231

767,299

Inner

Shipments

Tread Rubber (Camelback)—

783,230
21,003,020

21,786,250

629,810

867,120

945,650

14,917,080
15,546,890

19,296,480
20,163,600

10,738,300
11,683,950

Shipments (pounds)
Production (pounds)

Inventory

40,008,000

*53,238.000

40,585,000

*49,952,000

29,352,000

(pounds)

29,226,000

34,771,000
37,377,000
27,681,000

RYE CONDITION—CROP REPORTING BOARD

U. S. DEPT. OF AGRICULTURE—As of Dec. 1

TREASURY MARKET TRANSACTIONS

94.3

—Jan. 27

109.0

109.2

108.6

—Jan. 27

102.8

103.3

102.7

99.7

Net

127.4

127.4

127.2

125.9

Net

—Jan. 27

108.8

RECT

^Includes 1,066,000 barrels of foreign crude runs.
IBased on new annual capacity of 147,633,670 tons
as
of Jan. 1, 1959, as against Jan. 1, 1958 basis of 140,742,570 tons.
(Number.of orders not reported since introduction of
Monthly Investment Plan. • (Prime Western Zinc sold on delivered basis at centers where freight from. East St. Louis exceeds

AND

GUARANTEED

OF U. S, A.—Month

ZINC




$903,031,301
651,224,840

82,006,668

1,481,780
1,361,468
2,778,714

118.7

pound....t(Week, ended Dec. 20, 1958.

98

25,014.000

1,023,447
1,211,076
2,982,933

91.1

one-half. cent, a

20,829,000

23,187,000
f
'J
84

$809,534,673
623^05,871

revenues
expenses

—

Production

Meats

-

36,615,000

*20,415,000

86

Shipments

119.3

-♦Revised figure.

32,847,000

24,528,000
23,688,000

(barrels)

6,220,370
7,098,030
18,960,004

92.3

commodities other than farm and foods.

28,031,000

mills

railway operating income be Dor e charges
income, after charges (estimated)—

Truck

119.6

ah

2,970

7,982,594
17,134,475

92.0

products——.,——
foods

3,518

72.8

17,419,873

119.5

Farm

3,820

v.

(BUREAU OF MINES)—

Shipments

Jan. 27

——

£52,680,000

Sept.IM¬

l

Passenger Tires

—Jan. 27

All commodities

£7,116,000

INSUR-

Of

(barrels)

from

operating
operating

Total

Processed

-

-

LOAN

Shipments

S. DEPT. OF

Commodity Group—

,

65.9

£8,635,000

FORECLOSURES—

AND

20M596

id

'

Short

ESTATE

SAVINGS

BRITAIN
of Dec.—

Production

8,707
1,956,435

1,965,142

904,425
24,745
879,680
$38,727,811

-Jan.10

»'"' -Other. sales

65.3

GREAT

Inventory

$83,249,999

$101,409,733

dealers-

55,942,467

.

Production

ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS,
FOR ACCOUNT OF MEMBERS (SHARES):
Total round-lot sales—

i.-1

31:

46,304,050
$771,174,000
55,027,970

RUBBER MANUFACTURERS ASSOCIATION,
INC.—Month of November:

2,456,705
$131,390,700

TOTAL

."

IN

LTD.—Month

Taxes

1,780,255
9,568
1,770,687
$84,157,800

.Jan.

Other sales

Oct.

49,215,267

$840,854,000

EARNINGS CLA&8 I ROADS (AS¬
SOCIATION OF AMERICAN RRs.)—Month
of November:

3,535,217

—Jan. 10

Round-lot purchases by
Number of shares.

at

COMMISSION—

48,223,056

RAILROAD

2,307,209
570,970
2,387,662

—Jan. 10

Round-lot sales by dealersNumber of shares—Total sales.
Bhort sales

138
241

of November:

Shipments

4,294,600

1,436,963
5,683
1,431,280

-»jan. 10

Customers' short sales.
•Customers' other sales.

**DoUar value

137
166

$821,372,000
56,014,065

Stocks (at end of month—barrels)
Capacity used (per cent)

Net

■

customers

ISSUES

BANK

REAL

Production

,

3,954,535

AND

145
254

CORPORATION—Month

Month

518,440
3,016,777

ODD-LOT ACCOUNT OF ODD-

SPECIALISTS ON N. X. 8TOCK
-EXCHANGE—SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number of shares
——
—•
—Jan. 10
Dollar tfclue
Jan. 10
Odd-lot purchases by dealers (customers' sales)—
-Jan. 10
Number of orders—Customers' total sales—
LOT DEALERS

2,763,957

(1047-49 —100)

PORT!,AND CEMENT

3,473,880

683,030

3.993,444

—

.

COMMERCE

CAPITAL

NONFARM

438,410

528,602

6,166,000
123,400

3,896,260

Railway Employment at middle of

MIDLAND

Net

BTOCK TRANSAC'nONg FOR

of.

December

524,969

200,860

35,600

'6,289,400

4,450,171
*55,208

adjustment

-

324,610

883,490

-

1,457,630
338,500

for account of members—

Total purchases
"Short sales

«

538,910
581,910

-Jan.10

-

—.—

Total round-lot transactions
'

425,310

-Jan. 10

—^—
initiated off,the floor—

Total purchases
•-Short "Sales —
Total

2,279,030

549,150
43,000

-Jan. 10

sales—

Other transactions
-•

3,180,880

(net tons)

variation

seasonal

October
Number of ultimate

FEDERAL

Other sales

•

'

-Jan.10

-Jan.10

,

•>

352,000
1,927,030

-Jan. 10

-

-

*

2,275,860

485,450

2,695,430

-Jan. 10

-latal sales———
OtherCtransactlons Initiated on the floor—
Total purchases
_
c
Short sales —
i
*

-

,

3,033,910

-Jan.10

—

*4,505,379

61,571

tons)„.

Kilowatt-hour sales to ultimate customers—•
Month of October (000's omitted)
Revenue from ultimate customers—month of

Index

-Jan. 10

-Other sales

(net

seasonal

INTERSTATE

-Jan.10

I

-TeAal purchases
(Bhort sales

(net tons)'—.

coke

for

Without

'

.

37,163,000
1,826,000

EDISON ELECTRIC INSTITUTE—

*100.84

:

1,585,000

STORE SALES—FEDERAL RE¬
SERVE SYSTEM—1947-49 Average
100—
of December:

348,266

OIL,"PAINT AND DRUG REPORTER PRICE INDEX—
*.1949 AVERAGE —100
——
——Jan. 30

33,810,000

Oct.:

Month

87

24

Jan.

38,230,000
2,324,000

340

DEPARTMENT

236,717

Jan. 24

—

2,758

5,107,768
5,046,197

(net tons)

Oven coke stock at end of month

393.0

(tons)

Percentage of activity.
Unfilled orders (tons) at end, of period

.

coke

Beehive

Adjusted

*

8,829

25

3.88

4.30

3

Jan. 24

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)—
—
production

4.41

3

Feb.

INDE&—.—

329,344
200,705
125,881

__

__

4.46

235,256
191,304
35,123

tons)

(BUREAU OF MINES)—Month of
Production (net tons)

3.78

-Feb:

Am-.

MOODY'S COMMODITY"

(net
;;

Pennsylvania anthracite

4.30

.

tons)

COKE

4.69

3

173,730
72,800

anthracite
(net

COAL OUTPUT (BUREAU OF MINES)—Month
of December:
Bituminous coal and lignite (net tons)

3.99

3

-Feb.

Group.

Industrials Group.

3

-Feb.

~

——

—

3

-Feb.

i

-Feb.

-Feb.

Aa
A.
Baa

10,575

tons)

Undesignated

Feb.

Group.

12,090

252,489

Europe (net tons)

3

U.

.Feb.

Industrials

16,446

To

Feb.

MOODY'S BOND YIELD DAILY

4,874,375

5,594

89.64

Feb.

j

.

5,853,728

COAL EXPORTS (BUREAU OF MINES)—
Month of October:

■J

Feb.
:

4,913,545

STATES—DUN &
INC.—Month of December

Feb.

.

if

(NEW) IN THE
BRADSTREET,

UNITED

93.250c

.

(in

BUSINESS INCORPORATIONS

Feb.

■

O

,

10.500c

11.500c
24.700c

—

Baa-

59,194

Intercity general freight transported by 368

—.——

Railroad Group -——
Public-Utilities Group.

23,670

AMERICAN TRUCKING ASSOCIATION, INC.—
Month of November:
'

Feb.

A

7,142

24.325c

AVERAGES:

Average corporate-.—„——~.

1,070

1,591

27,962

1

28.600c
27.150c

Jan. 28

-

781

1,803
undelivered

and

28.625c

.Jan. 28

*

Aa

6,295

delivered..

cars

of cars on order
of month)——

15,615,000'
280,933,000
4,411,000

'

27.950c

Jan.

) at.

*264,220,000
*22,135,000

for new freight cars

Orders

29.025c

Jan. 28.

,

Jan. 28

Bonds

Z..Z—

AMERICAN RAILWAY CAR INSTITUTE—
Month of November:

(end
i

-—

MOODY'S BOND PRICES DAILY
.

19,594,000
283,684,000
6,173,000

24,888,000
17,000
32,718,000

29,927,000
"19,467,000

export
_

28.675c

—rr—T-—

(East St. Louis) at

Aluminum A primary pig. 99%
Straits^ tin (New York) at_

—.

.

Increase all stocks (barrels)

Backlog

Tan. 28

,' I Zinc i delivered> at

output (barrels)
oil imports (barrels)-

(barrels)

V

'

INSTITUTE—Month

product imports (barrels)
Indicated consumption domestic and

12.238,000

169

•

8,582,000

6,224,540

Tan. 28

'Domestic refinery at——
Export refinery at_—i—-<
Lead (New York) at—;
Lead -43t. Louis) at

-

(net tons)—

Benzol

(E. & M. J. QUOTATIONS):
Electrolytic-Copper— ,-v. ■,y.;». .y
t

'i

13.762

INSTITUTE:

Domestic crude oil output (barrels)—."
Natural gasoline output (barrels).

METAL PRICES
-

STEEL

Refined

13,151,000

29

Jan.

ZZZZZ-

of October:
Total domestic production (barrels of 42
gal¬
lons each)
;

Crude
31

•
Jan.
dun a —-—Jan.

t

—-—

AND

AMERICAN PETROLEUM

—

——

unit

.

ingots and steel for castings produced
(net tons)—-Month of November

;

institute:

Electric:output (fcmdQO

-

ioo—;

Average

IRON

Shipments of steel products
Month, of October

department store sales index—federal
system—imi-49

factory

._ZZZZZZZZZZZZZ_Z

Dryers

S. BUREAU OF MINES):

COAL OUTPUT (U.

17,500.
171,200

Steel

—Jan.
J*nJan-

construction—

Bituminous

431,938
488,876

home

sales

_

—Jan.
—Jan.

Private construction
Public

9,900

LAUNDRY MANUFACTUR¬
ASSOCIATION.—Month of November:

ERS

24,051,000
128,181,000

ENGINEERING

—

construction

8.

129,278
175,085

HOME

AMERICAN

NEWS-RECORD:
Total U.

Ago

124,714
123,049

AMERICAN

190,748,000

21

—Jan. 23

—

AMERICAN RAILROADS:
freight loaded (number of cars)
Tan.
freight received from connections (no. of cars)—Jan.

ENGINEERING

CIVIL

Year

Month

AMERICAN GAS ASSOCIATION—For month of
November:
Total gas sales (M therms)—*

ASSOCIATION OP
.

of that dates]

Previous

.

Kerosene (bbls.) at—
s—
Distillate fuel oil (bbls.) atResidual fuel oil (bbls.) at

,'v"

are as

Stocks of aluminum (short tons) end of
Sept.

Jan. 23

Gasoline output

runs

of quotations,

cases

Month

1,457,000

7,087,285
8,129,000
28,488,000
3,234,000
14,751,000

Crude

in

or,

either for the!

are

ALUMINUM (BUREAU OF MINES):

(bbls. of

average

gallons each)_

that date,

Latest

Ago
73.6

*76.9

production and other figures for the

cover

Dates shown in first column

Year

Equivalent to—
*

45

(697)

87%

92%

IN DI¬

SECURITIES

of December:

sales

purchases
OXIDE

(BUREAU

$43

OF

603Z500

$55,143,500,

$33,32~5Z000

MINES)- -Month

of October:

Production

(short tons)
Shipments (short tons).

14,375
14,888

Stocks at end of month

20,659

(short tons).

14,379
14,587
21,172

14,199
14,331

26,929

The Commercial and Fimancial Chronicle

46

Continued from page

combat

4

From
Wall Street bankers and business¬

Mikoyan's Visit

of what he saw he has
abandoned hope for the eventual
success of the Communist revolu¬
reason

Thursday, February 5, 1959

.

do this if

can

we

simple rules for visits of this type.
Our
Government
officials
and
leaders in other walks of life

and

be

The Kingdom of Denmark is to¬

*

day

of worship.

try

of

threat

the

of

more

us

Danish

bonds by an
investment
banking group and a World Bank
loan
equivalent
to
$20,000,000.
The investment banking group is
headed
by Kuhn, .Loeb & Co.,
Smith, Barney & Co., Harriman
Ripley & Co., Inc. and Lazard
Freres. & Co.
They are offering
for public subscription $20,000,000
Kingdom of Denmark 5%% i5year external loan sinking fund

speak less of
and

Communism

promise of freedom.

be in Let us adopt as .our
primary ob¬
challenge.
jective not the defeat of Commu¬
but that the nism but the
victory, of plenty
should talk freely with our visi¬
that Communism would eventu¬
Congress will vote for and the over
want, of health' over disease,
tors so that they can know us as
people will support whatever of freedom over
ally prevail not only in this coun¬
tyrahny.",." *
we really are.
We should always level of
military expenditures the
try but throughout the world.
be courteous. But we should never
This approach has ;been criti¬
best combined judgment of our
But he can no longer believe be soft or
cized as being too idealistic and
fawning.
national leaders indicates is neces¬
in

tion

the

his

of

come

confidence

about because

In his unexpected
typical American homes,
not find the misery that

wage

earners.

visits

to

he

did

could be the seedbed of revolution.

he

does

then

How

Let

America's

of

discontent

mass

to

opportunity

an

supreme

that this will

He

States.

United

missed

never

express

expect

reported that Mr. Mikoyan
applauded when in referring
pickets who were protesting his

Communism, not for the tradi¬
of class division and

reasons

discontent arising from oppression
of the masses, but because they

that the
Communist system
could do an
even better job of producing eco¬
nomic progress
than ours.
He
points to the fact that the Soviet
would

eventually

evitably
forced

growing

is

economy
rate than

people

our

at

said

he

tour

have

"we

in

Soviet

turn

would

Communism

to

order to avoid becoming a

be
in

second-

rate power.

hood¬

do not think that enthu¬

I

siastic

the true American attitude on such

incidents.

a

guest but that

or

we

discourtesy to
allow peaceful

picketing.

oJ-V,J;":':

-7*-

the

name

economy

on

technical assistdevelopmental
loans, exchange and information. * '
programs for

our

ance,

—

...

.

tactics

knows

rYmmnrbif

W

of

bonds to
the acquisition of.
capital equipment
required for
the
development of the. Danish
economy
while the proceeds of

the

of

most

Millions of people

no

cost

v

We

thousands

the

Soviet "hood¬
lums in uniform" in Budapest.

they

by

might

have

also

smashed up my car in South Amer¬

Communist offensive

nomic,

!

The

is

that

'

*

too

:

are
direct
obliga¬
Kingdom of Den¬
principal and interest1

States

They
except
sinking

currency.

redeeraableV

entire issue by maturity.

average
life of the bonds
be 9Yz years.
Sinking fund

redemption price is
On

and

after

*

par.

Feb.

1, 1969 the
subject to optional re¬
demption at prices Tanging from
101% if redeemed before Feb. 1,
,1970 to par on and 'after Feb.
1, 1973.
:

in terms of their

bonds

aspirations and their aims rather

see

the

The
will

than our own. And we can do
.this because in contrast to the
immediately after World War II,' Communists we do1 not; sepk to
there were many in this country dominate any other.nation, in fhe^
who clearly saw the; threat
of world today.
/
the

expansion

payable in New York City

not

tire

"

r

..

help

through
operation, of a
fund, prior to Feb. 1, 1969. The
sinking-fund provides for pay¬
ments of-$1,866,000 annually com¬
mencing in 1963, designed to re¬

must do, is to present

we

our. programs

few

to be able to

seem

allies.

What

will

the

United

are

to be interested in theih as human
beings not just as potential, mili-

eco-

political Jary

"

!

trouble

Americans

the

and

propaganda

areas.

in

and

in

can T

the vision to counter the massive

were

power

bonds
of

will be

Above everything (dse these
people do not want to be pawns
m a-struggle between Iwocgrpatl
gle for the world without a missile world powers. They would like to
being launched if we don't have have our help. tBut thpy whnt us
disastrous mistake.

referred to as hoodlums
Hungarians whose relatives
and friends were slaughtered by

noted

The

tions
mark

be the

that most of those whom Mr. Mi¬

have

loan

foreign exchange

in Denmark.

strongest military power in
the world and still lose the strug-

also

the

electric

of

-

■

Bank

finance

to

these

in

World

the

countries want and deserve a bet^
- ,v *.
ter ™ay 01 llte'
-

Communist

could make

we

visited

have

better.

,

ny?„?,..Yinpa
knowledge

.

tary

-4-

(

Kingdom intends to apply
the net proceeds from the sale of

Must Offer Non-Material Aid
I

of

5%%.

The

newly-developing countries in
Asia, the Near East, Africa and
Latin America which -the Communists are now wooing so assidudusly. Being agdinst this false
philosophy and poinding out its
evils is not good enough; we must
stand for and offer/ something

support,
as
there should be, for an adequate military program, I predict
that we can expect an all-out assault in

1, 1974 at 97M>%
interest, to yield ap¬

proximately

■!■ "'v-v.

■■

Feb.

the

J

Program

more

should

They

And

greater mistake than to under¬

.K;:-Jr.

..

But while there will be

We should make it clear that we

deplore violence

pointed out, as I did at the dinner
What We Learned From Mikoyan
given for Mr. Mikoyan by the Sec¬
Let us turn now to some of the retary of State, that the milling
things we learned from Mr. Mi¬ thousands who stoned the United
States Embassy in Moscow and the
koyan. First, after seeing him in
mobs
who
action we realize that we can make Communist - inspired
no

■.

due

bonds

and accrued

the

examine

us

facts.*.. "'

Urges Support of Foreign Aid

Union

from

the

freedom

faster koyan

a

today and that in¬

ours

to

see

rity.'

But' let

naive.

to protect the national secu¬

sary

press

applause was the right re¬
this country?
His answer to this sponse to this cOniment. His hosts
question, significantly, was that would have been wiser had they
the American people would turn
courteously but firmly pointed out
tional

Soviet

the

of

There is no question

was

to

his lums."

grand objective to be realized in

give some examples. The

me

should

strength

military

view

the

borrowing

public offering of $20,000,000 of

a

ments."

the

5)

(Feb.

equivalent of $40 million through

happy

I also said: "Let

51/2%

Bonds Offered at 971/2

peoples

if others
compete in this sphere
to surpass our achieve¬

to

were

present time a debate is going on
as to what the proper level of our

follow two

other

,

would

We

example. At the

an

learn from

to

these are the most pre¬
cious aspects of ouir civilization.

it with
resourcefulness.

and

give

me

Of Denmark

"To us,

today so that we can meet
Let

may

"He wants freedom

struggle in the world

intelligence

S20,000,000 Kingdom

every

privi¬
make any

and cultures.

total

Americans must know the

power

to

neither

that

"He wants the freedom to travel
and

Communist offensive.

nature of the

nor

guarantee

so

subservient before the law.J.

man

the

meet

effectively

will

which

Decries Fawning
We

lege

to develop the publip opinion that
is needed to support the programs

Communist policy with a smile or
a
handshake.
They are
hard-

justice

individual

able

Only in this way will we be

trade unions who represented

by

and

Our survival

the truth.

requires that the American people
in all walks of life know not only
the evils of Communism and its
weaknesses but also its strength.

but the leaders of our free
the headed realists motivated by their
They will re¬
views
of
millions of America's own self-interest.
spect us only if we stand firmly
wage earners.
by our principles and our ideals.
I do not mean to suggest that
men,

"He needs the-freedom thatJaw.

false idea is not ignor¬

a

but

ance

Lessons We Can Learn

to

.

.

(698)

total

picture of the struggle
against Communism. In the years

are

"

The Kingdom

will -make appli¬

t

cation, to. list

the

bonds-on

the

ica may not have
been "hood¬ Communism abroad; but who
We know that what serves their New York Stock
ability of those who
Exchange. J
guide the destiny of the Soviet lums" but they certainly were not ignored or failed to see it in the welfare serves ours as well. BeThe
$20
million
World
Bank
United
States.
Today, some of cause as we help thorn to acquire
empire today. In the past six years practicing peaceful coexistence.
those who lead the fight against the economic and political stabile- -loan, which is beingrmade con¬
I have met Free World leaders in
Praises Labor Leaders' Stand
Communism in the United States ity which will assure .their inde- currently with the bond offering,
over 50 countries.
In several re¬
will have a term of 20 years and
I do not agree with those who condemn as give-aways and do- pendence, the cause, of free peospects, I would have to rate Mr.
bear interest of 5%% per annum,
criticize
our
businessmen
and goodism
the vital expenditures pies everywhere will benefit,
Mikoyan as the equal of any leader
including
the
1%
commission
for entertaining Mr. needed
to meet
and
defeat the
I have met.
He has a first-rate bankers
must always remember that
which is allocated to the Bank's
mind and a keen, piercing sense IViikoyan at lunch or dinner. But threat of Communism kab ro a d. "of all the forces in the world, naSpecial
Reserve.
Amortization
of humor. He not only knows his I would respectfully suggest that Both of these attitudes are short- tional
independence •-is the one
will be in 33 semi-annual instal¬
some
of
them
in
this
instance sighted and completely indefensiown system well, as we might ex¬
which is most incompatible with
ments beginning on Aug. 1, 1962
could
learn
a
lesson
from
our
ble.
pect, but he had a mass of infor¬
international Communism's design
and ending on Aug. 1, 1978.
The
mation at his command about the labor leaders who had to fight to
I recognize that there has been of dominating the world.
: ;
First National City Bank of New
Communists
from
their some waste and
United States, our political system, expel
inefficiency in - :
..
' \
York and The New York Trust
unions and in the process learned
our economic philosophy, and our
our
information, • exchange ' and *
One Final Lesson
Co. are participating in the loan,
how to deal with them.
people.
economic

estimate the

,

.

i

•

A

But

programs.

But

more impressive than
They know that a soft and naive
ability and shrewdness approach does not produce results.
certain intangible qualities The Communists respect those

even

his mental
were
—a

steel-like

acter and

that his

an

toughness of char¬

almost arrogant faith

cause

was

right and that

who

oppose
them on principle.
They have nothing but contempt

for those who

are

it would

dupes and who
by what they

a

field

new

mistakes

should

searching

i think there is one

and
We

criticism

ot

is

Americans
inevitable.

subject these

purpose

this

for
are

improving

Whieh

but for the
them rather

than to destroy them.

there

truth and neither facts
ments could

thera best.

nor

argu¬

his

broad

United

shake his faith.

by

States

knowledge
and

of

of

In other words, in the person
and character of Mr Mikoyan the

system.
This is not unique. I have noted
the same characteristic in other

people of the United States

Soviet

reminded

were

again of the massiveness

and of the seriousness of the chal¬

lenge

What lessons

can we

learn from

some bearing on American
toward world Communism?

policy

accused

of

softness

Communism—on the

toward

contrary

my

critics believe I lean too strongly
in the opposite direction—I be¬
lieve

that

,

unofficial

an

visit

I

of the

On the other

that I have

hand, I must admit
been deeply concerned

at the naive attitude and the lack

of

understanding of Communism
by
some
Americans,

displayed

First, what should our attitude
be toward visits of this type in the
future?
As one who has never
been

have met in various parts
world.

ivje face in the world today.

the Mikoyan visit which may have

representatives whom

of

both in government and
out, who

the

represent

abroad.

This,

of

United
course,

exception

rather

where

government

are

this

our

than

cause

us

is

the

the
rule

personnel

concerned, but the
situation exists at

States

fact
all

that

should

type, while it has definite lia¬
That is why I have consistently
bilities, is, on balance, in the best urged that particularly at the col¬

interests of the United States and
the Free World.
-

But

there

lines which

are

we

certain

guide¬
should always have

in mind where such visits are con?
cerned. We are not going to change




lege

and

university level a far
job should be done in
teaching our students the funda¬

better

mentals of Communist

philosophy,

only

effective

answer

to

more
.

who

subscribe

lievers.

to

it

true

are

ment

of

its

strength

guar¬

amount

of

representing

Bank

Denmark

and

the

signed in New
yesterday (Feb. 4) by His
Excellency, Count K. G. KnuthWinterfeldt, Danish Ambassador
in the United States, and by Dav¬
idson Sqmmers, Vice-President of
was

York

be-

and

the World Bank.

its

world

toward

drive

Bank's

total

between

World

this, rather than the
military or economic power of the
Communist empire, is the major
insatiable

World

a

the first
' ' three maturities. The Loan
Agree¬

And

source

the

for

$1,147,000,

tt

I

domination.

Spells Out Peaceful Competition)
Challenge

The World Bank loan will

to finance power

.

Mr.

determination,

some

Mr.

Khrushchev

regard to

a

had

with

made

statement I made.

m

t
.

f10.don last welcomed the the ef- ■
November to oppor-

tect that

we

l

fiabby

thjs

But

said

let

me

repeat

what

I

also

lenge

Sa?i

•

wwww
answer

to the ouviut aiiitiu
iukz Soviet chal-

should not stop here

We

^°anfn

i

and include the spiritual and cul-

values

guished

our

"Material
necessary,

needs

of

that

have

distm-

civilization.

such

sibmt

a

y

produce

sense

who
0f

—

and
have

of

men

moral
faith

discipline,

American ideals and

and express

to sacrifice for

his views.

installation

of

kilowatts
of
additional
generating capacity in five ther¬
mal power plants and the con¬

struction of 190 miles (360 kins.)
of

transmission

lines

and

asso¬

The loan is the second made
by
Kingdom of Den¬
mark. The first one in an amount

in all walks of life
leadership our nation

dedication,
men

to

cen¬

The projects

437,000

needs

can

higher freedoms, freedom

the

^boutr

do not meet the deeper
needs

respon-

of

We have heard a
ciated-substations. Construction is
great
deal
the" need ' of
scheduled for completion by midAmerica for scientists and engi- 1962 at a total cost
equivalent to
neers and j would not underesti$59 million.
ma^e ^
gu^- America above all
finest

Man

tremendous

part of Jutland.

consist

today.

the

mankind.

tral

We must have
of that cause.

why our great institu¬
learning like Fordham

while

i

the

is

of

today

achievements,

holm and the north and east

Worthy

That
have

"Our
wui

%

h

tions

that occasion.

on

islands of Zealand, in which
Copenhagen is located, and Born-

.

ui

Union

the

The soft, the
the lazy will

a struggle with men
tt is- not enough that

;n j
like

tumty to cqmpete with, the Sovietin waging war on
misery,
disease and poverty in the world.

.

disdpline.
_the naive>

know, to debate freely, to write

strategy and tactics.
The

i

.....

concern.

this

antee,

help
expansion proj¬
ects being carried out by six pub¬
In Mr. Mikoyan- we $aw a man
.small in physical stature, but a lic utilities which, operate about
Mikoyan
relayed
to me man of irovn
fanat- 65% of total generating capacity
comptaentary. comments- j . , a e d ic a t io n,. and superb in Denmark; these utilities serve
f

the

our

,

without

Mr.

from

h w rep0gnant the
Conmunist philosophy is to us, we
must recognize the fact that those
Nq

inevitably prevail. In this can be deceived
In recognizing the necessity to
was
no
flabbiness, no know are obvious untruths.
counter the Communist economic
This brings us to one
softness, none of the uncertainty
of the offensive let us
not .make
the
of the pragmatist seeking/a phi¬ major lessons we can learn from
mistake of letting them
always/
losophy.
He had'found in the the Mikoyan visit. I have men¬
select the battleground that suits
Communist system the inalienable tioned how mudh
impressed I was

man

Jinal lesson

learn

can

Mikoyan which is perhaps
important than all the rest.

to

programs

we

courage,

of $40

fortitude;
in

a

the Bank to the

God,

belief

in
-

a

a

willingness

just cause.

million

was

made in

1947

to assist Denmark's recovery from
the disruption of the war. Under

a

its terms this earlier loan will

fully retired by 1972.

be

Number 5818

Volume 189

The Commercial and Financial Chronicle

...

E. A. Tikalsky Opens
MICHIGAN, N. Dak.
A.

Securities Salesman's Corner

—

;

Eugene

Tikalsky is conducting

rities

business

a secu¬
offices here.

from

His mail address is Box 136.

By JOHN BUTTON

Maurice

Thompson Opens

rectors of American Cement Cor¬

ties business from offices

poration, William H. Keeney was

Ards-

on

ley Avenue, East.

ment' with

This

is

a

substantial bankroll.

UNION

long before

comes aware

of its

-to

acquire.

*

b Where Do You Find Them?
You

where.

this

find

may

He

be

may

man

any¬

retired in-

a

~

dustrialisr that'" has
contacts

during

made

many

throughout
active

an

of Sixty
Common

116

Kfn

j

t

,he

•

A cash dividend of

Ninety cents
share on the outstanding

capital stock of this Corporation has
been declared, payable March 2,

1959'
M. B.

Brooklyn, N-

small com¬

LOEB,

President

•

1959

Y«.

the world
and busy life,

ahd is now employing his time in
; the intriguing pastime of uncov¬

The

UNION

method

"

development

a

within

potential

.them, that

some

of

your

A

mon

on

the

stock, payable March 10,

successes

1959

b. c. Reynolds,

THE FLINTKOTE COMPANY
New York 20, N.

have been declared

COMPANY

60 cents per

DIVIDEND No. 154

have been

hind their; money.
:■'

to

I Like Best

Alert

Be

Security

.these

But
stones

>

won't

find

must go where
located.
You

you
are

niany

diamonds

in

'

some

sand dune in the middle of

'

a

desert.

for
you

7

There is

diamonds and
should go.
r

Among

few people who
employing their
brains and their money in some¬
thing a bit more interesting than
interested

some

v

will

you

a

in

of the mill, investments.

run

.The first step then is to be alert
.to
such
opportunities.
Expose
_

yourself to the type of people who

,

have substantial funds for invest.

.merit. Sooner or later you are go¬
ring to be introduced by SATIS¬

FIED; CLIENTS to their friends.
/ The- power of radiation- in the
^investment.business

be

never

can

underestimated.

The

trouble

has

been

salesmen dp

not

that most

^..understand that their knowledge
and ability in handling not. only
their customer's accounts, but also
THEMSELVES, is the open door
to

recommendation.

going

7. keen

perior

to

introduce

minded,
and

No

to

successful
This

is my opinion that an
mistic forecast for General
It

a

Charles M. Kaiser
Charles

M.

Kaiser, associated
with Grady, Berwald & Co., Inc.,
New York City, in the trading
department, passed away Jan. 28.

field




not

Jl Starr Anderson
J. Starr Anderson

CONSECUTIVE

QUARTERLY DIVIDEND

The Board of

Machines

The Board of Directors has

this day declared a quarterly
dividend of 25 cents per share
on the Common Stock, pay¬

NATIONAL UNION

of

3714

cents

J. H. ASMANN
Vice President

»

OF

$.65 per

10,
stockholders of

share, payable March
1959, to

record at the close of busi¬

PITTSBURGH, PA.

ness on

February 10, 1959.

on

value Cumula¬
tive Preferred Stock, payable
May 1, 1959, to shareholders
of record April 10, 1959.
par

& i returner

February 4, 1959

today declared a quarterly

COMPANY

April 1, 1959, to share¬
holders of record March 13,
1959, and a regular quarterly

i

Business

Corporation has

cash dividend of

FIRE INSURANCE

able

dividend

Directors of

International

##••'••••••••••••• *

•

149th DIVIDEND

DECLARATION

C. V.

BOULTON,
'

The Board of Directors

Treasurer

of this com¬

today declared a cash divi¬
dend of Fifty Cents (504) a share
on the capital stock. This cash divi¬
dend will be paid Manch 25,
1959 tasstockholders of record at the
pany

close of business

590 Madison Avenue

•

pew York 22, N.|Y.
January 27,1959

March 2,1959.
INTERNATIONAL

Dividend

Notice

Treasurer

IBM

BUSINESS MACHINES
CORPORATION

February 3,1959

AMERICAN &
P FOREIGN

POWER

COMPANY INC.

TE NNESSEE

in cmti sheet, it* im >. a. r.

GAS

The Board of Directors of the

Company, at a meeting held
this day, declared a quarterly
dividend of 25 cents per share
on

the

Common

Stock

TRANSMISSION COMPANY
AMERICA'S LEADING TRANSPORTER OF NATURAL GAS

HOUSTON,TEXAS

for

payment March 10, 1959 to
shareholders of record at the
close of Business

February 10,

1959.

up on

does

\

20,jN« Y.

dividend

National,Product,

;

9, 1959.

SO Rockefeller Plaza, New York

176TH

H. W. Balgooyen,
Executive: Vice President
and

January 30, 1959.

Secretary

The
DIVIDEND
NO. 46

regular quarterly dividend of 35c per

share has been declared on th# Cdfamdn

Stock, payable March 17r 1959, to Stock¬
holders of record

on

at

Feb¬

99rid consecutive

NOTICE

short and

passed away
offer any opportunities whatso¬ Feb. 1 at the age of 75. Mr. An¬
ever to the security salesman who
derson was a partner in W. C.
thinks that he can bluff, bluster Langley & Co., New York City.
counts.

ruary

on

"February 4, 1959.

DIVIDEND

view.

capital appreciation.

record

the close of business

Vice-President and Treasurer
,

CORPORATION

is

knowledged leader. With $2.50 net
earnings per share in sight for 1959
and a; well-covered $1.50 .Annual
diyidend; we expect this stoick to
outperform the general market
and
provide highly satisfactory

on

stockholders of

to

January

dividend Is
March 10, 1959,

Cement
•

Shoe

goods. Shoe prices should increase
moderately with the' larger ad¬
vances coming in fashion lines in
which General Shoe is the ac¬

*

of

This

1959.

payable

share

j AMERICAN

opti¬

we anticipate a
firm demand in 1959 for consumer

a

the capital stock

on

IBM

the $25

completely justified—both from
a long range point of
Given a further expansion
in the economy in which dispos¬
able personal income continues to
grow more rapidly than the Gross

JERSEY)

55 cents per share on

are

ILL

of manufactur¬

su¬

investor

^friend unless you measure
.

to

you

intellectually

*

all

is

man

area

has declared

Cash Dividend
29,

WILLIAM FEICK, JR.

*1

ing men's clothing.

a

clients

your

eventually meet
are
'

place to hunt
that is where

a

to enter the

IN NEW

The Board of Directors

19, 1959.

Manufacturing plants in 18

Nashville, a project which over
7 When you go out to discover a' a
5-year period will require the
Very rare and precious stone you
investment of over $15,000,000. At
are aware that you won't find it
on
every street corner.
Even if the same time, the company's pro¬
the - opening Of
you are prospecting in the dia¬ gram calls for
mond mines of Africa you must nearly 50 new retail shoe stores;
to move with great strength into
still be on the lookout for that
the low-price women's shoe field;
7 rarity that comes along once in a
;
expand Canadian operations; and
few
years.

(INCORPORATED

payable March
16, 1959 to stockholders of record
at
the close of business February

Secretary

titles, located in six states,
Canada and Brazil.
> "

STANDARD OIL COMPANY

share

92 V2 cents per
These dividends

close of business Fe*b. 2,1959.

at

*

follows:

Preferred Stock

shareholders of record at the

R. G. HENGST,

Esso

$4.50 Series A Convertible Second

per share
shares of the

Company, payable Feb. 20,1959,

not interested in the

The

common

as

$4 Cumulative Preferred Stock
$1 per share

Board of

dividend of

seventy-five cents (75c)
the

Y.

Common Stock1"

CLEVELAND 10. OHIO

on

Secretary

quarterly dividends

MANUFACTURING

a

Jan¬

of Building Products in America

JEANNERBT,
Secretary and Treasurer

Directors declared

on

Manufacturer oj the Broadest Line

South Bend, Indiana

T. E.

On Jan. 23,1959, the

declared by

was

FlINTKOTE

com¬

Drewrys Limited U. S. A. Inc.

EATON

16, 1959,

die Board of Directors

stockholders of record at the close
Of business On February- 26, 1959. ~

firm's

-

ary

to

of

quitely and
efficiently accom¬
plished in this intriguing field of
"space ship" type of proposal; the the "ultra special situation." The
: glamour
fiction enterprise that approach will flatter them, may
may or may not develop within a interest them, and sooner or later
(longer period of time. They do you will build a select few people
not have the untold wealth which who are triple A prospects
for
'allows them to take on possibly this type of investment.
15 or 20 long shot enterprises and
hope that one or two will click,
thereby paying off for those that Continued from page 2
*
*
.do not.
These men are builders, *
of business and they may wish
<to- acquire control and throw their
txuiusual experience and effort be¬
are

regular quarterly dividend

of 60 cents per share on the
common stock ($10
par value),

uary 28, 1959.

quarterly dividend of forty (40)
per share for the first quarter

of 1959 has been declared

three to five years.

They

A

Secretary

CORPORATION

stockholders of record Febru¬

cents

reaching these people, however, is
through a personal recommenda¬

period of from not.over- most-unusual

a

DIVIDEND NOTICE

*•

•

7 have

and,

•

at

1959.;

DREWRYS

tion which comes to you from a
investment situations that contact with the officers of some
are
a
constant challenge to him. small business that has a strong
He may be an active young execu¬ growth potential, or one of your
tive
with established
business regular clients who has been ex¬
connections that has built a ktrorig posed 4o the fact that you are in
RARE
OCCASIONS
group of like minded investors contact on
Ground him. These men form an With, certain very unusual specu¬
investment group and
lative opportunities of this type.
they are
interested
in
employing
their
Pick your customers carefully
funds in young companies that
and at the opportune time advise

-

CARBIDE

pacific

payable March 2, 1959, to

ering

■

■■■

FINANCE CORPORATION

MASON, JR.

Executice' Vice-President

run

effective

most

stockholders of record

to

BIRNY

Occa¬
into some¬
one who can qualify as a prospect
for the big participation in the
type of situation we are discuss¬
ing through the usual sources of
security prospecting, such a£ ad¬
vertising by mail nr in .the press.
may

per

the close of business Feb. 6,

the public be¬
potential. Don't

MM

•

(900

ot which we are speaking
this is the top prize among all the
.deluging*.you with replies.

hope sionally • you

DIVIDEND NOTICES

Dividend No.

WvidendNo^

A

expect^ to place an advertisement
how— inyquf- daily paper and find them

investor clients you can ever

Co., investment secu¬

CARBIDE

^ACTUMHOCO^NY.mC

speculator

small-time

no

pany

some

a vacancy

by the death of Griffith
Mr. Keeney is associ¬

rities firm.

Only occasionally will you dis¬
cover these few able and willing
speculators who will put a sub¬
stantial isum into

director to fill

a

Henshaw.

ated with the San Francisco office

that is interested - and sham his way^into. the confi¬
special situation" is dence of either his regular clients
or
their "special situation mind¬
a special type of individual himself. Some of his friends may be; ed" friends. Here you .either know
interested in playing the market.J; your Story, know your way around
This man; however, is interested;: among men who do know, or you
in much bigger game than a 25%: are wasting your time.

"the laws of probability, and a man
Mo 4s willing to back his judg¬

meeting of the board of di¬

of Sutro &

investor

f]He is a prospector, a scientific ex¬
plorer for: facts, ah evaluator of

a

caused

DIVIDEND NOTICES

in the "ultra

\ lqng-ternv gain, or even a 100%.

At

elected

Prospecting for Investors Interested
In Special Situations

.

Wm. H. Keeney, Director

IRVINGTON, N.Y.—Maurice C.
Thompson is engaging in a securi¬

DIVIDEND NOTICES

-v-.y

The

47

(099)

February 19,1959r

J. E. IVINS,. Secretary

/

48

The Commercial and Financial Chronicle

.

Thursday, February 5, 1959

.

.

(700)
sustantial

a

BUSINESS BUZZ
.

on

•

in any

Two Projects

to

/■

are

to Be Dropped

functions

the

ramifications

many

the Atomic

of

Commission.
For one
thing.Jt operates three towns—
Tenn., Los Alamos,
and Richland, Wash,

JL Uli

These three towns have

construction, whether
such cost would allow hydro¬
electric power to be produced
at a reasonable price, and what
contribution such project would

generating capacity
our country now has will

power

which

tripled by
Federal Gov¬

nearly

be

to

have

1980, according to

and

officials

ernment

make

national

the

to

and defense.

econo¬

Obviously this means in¬
in plant, generating
distribution systems of

>

are

operation
of
both Richland and Oak Ridge.
Under law, security investi¬
gations are required of those
persons proposed for access to
ownership

economy

the

in

end

The

survey

from

investors, and from the

nation's

Probably

from?

eral

electric

the

in

dustry.
Surveys indicate that by the
of* 1961 total .generating

fect

of the United States
systems will be about
180,000,000 kilowatts. For the
past several years the average
annual increase in capability in
capacity

power

;

,

Private

Joint

tional

Commission

;

on -

this

At the

the

a

.*

1

States

had

under

Commission license and

application

even

an

greater amount of non-Federal

capacity—18,300,-

hydroelectric

addition

kilowatts., In
there

this
tion

association feels, as

the private
people everywhere prob¬
ably feel, there should be no
subsidy of taxpayers' funds of
commercial electric power from
nuclear sources beyond the re¬
search and development stage.

under construc¬

was

nearly

scheduled

or

to
40,-

the

Also

future.

submitted

dation

to

Congress,

Eisenhower

has

President

$2,502,000,000 for the Atomic
Energy- Commission- for fiscal

It may sound sensational, and
it

is, but

watts—either
the

70,000,000 kilo¬

these

producing

way—represent
installed

the

on

or

than
of the

more

capacity

re¬

quested Congress to appropriate

The

1960.

amount

compares

with

$2,395,406,000 appropriated

for

the

fiscal

current

year

A

big question in the power
right
now
deals
with
atomic electric power projects.
Of
course
these
projects are
still in the experimental field.
But one thing has been forcibly
brought out in research so far:
atomic electric power is mighty
expensive and it will be a long
time before it can compete with

The AEC's Blunder

Incidentally, the Atomic En¬
ergy Commission has moved its
headquarters
to
Germantown,
Md., some 28 miles from Wash¬
ington.
The
Commission oc¬
cupies elaborate new multi-million
dollar
offices,
but
the
officials
made

by

fuels.

the

j
the phenotn-

is consumed in greater
amounts than any other com¬
modity in the world.
It has
been the paramount source for
power and heat, and more re¬
cently for raw materials in the
chemical
industry, for many,
Coal

■

of mob psychology, first pub-

Ilished in 1841. Strange and curious J
all

£|

S
g

great hoaxes of

i

time, of whole peoples and

nations deceived by the witch
tnania, the tulip madness, strange

mass

of

hysterias of today, the

booms,

The

the mob impulses and

on

tion,

causes

welfare

I
s

to

slogans,

political
speeches. "This book has saved
millions!"

—

EXTRAORDINARY
POPULAR

OF

r.

•r

DELUSIONS

AND THE

with order. You

may

return the

used

be

contribute

nation's

the

are

not

.

to

declare

all

from

conferences

mission

have

inconvenience

to

the

over

Washington

with

the

Com¬

discovered

great

of

reaching

the

Maryland community. The facts
the

Commission

have

been

as

some

but they could

kept just

Washington

has

a

out

well in
in

the

country.
The Atomic Energy

Commis¬

sion and nuclear energy appear
destined to figure lively in the

views.]

efforts

be

military

in the

nearly $100,000,000 to
convert the Navy's new carrier
into
an
atomic
power
ship.
is

There

for

drive
for

also

which

increase

an

has

been

ever

the

In

reactor

military

publicly

was

pro¬

Commission
says
will
continue
to

it

with

partment.

be¬

discussed

the

Defense

These

will

De¬

include

propulsion reactors for subma¬
rines,

surface

military

combatant ships,
and missiles

aircraft

and

transportable

for

the

power

Feb. 6, 1959 (Boston, Mass.)
Boston Securities Traders Asso¬

ciation 35th annual dinner at the
Sheraton

Feb. 19,

Plaze

1959

Hotel.

(Chicago, HI.)

Bond Club of Chicago
nual

48th

an««

meeting and dinner at the

University Club.
Feb. 26, 1959

(Philadelphia, Pa.)

Investment Traders Association

the

grams,

work

plane,

firm action

but no
taken.

fore,

a

in funds

atomic-powered

an

of

discussion

Field

Investment

power

generation

of

plants

electric

and heat in satellites and

at remote military

of

Philadelphia-Security Trad¬
Association

ers

annual

Feb. 27, 1959
Investment
of

of

New

York

Bowling Match.
(Philadelphia, Pa.)
Traders Association

35th

Philadelphia

annual

midwinter dinner in the Grand
Ballroom

.

of

the

Bellevue-

Stratford

Hotel, preceded by a
member-guest luncheon at 12
o'clock).

installations.

At the Department of

Defense
attorneys have been studying a
proposed $500,000,000 Govern¬
ment insurance program in con¬
nection with industries having

April 1-3, 1959 (San Antonio,Tex.)
Texas

Group

Bankers

of

Association

ica annual

Investment
of

Amer¬

meeting at the Hilton

Hotel.

hazardous atomic contracts. Ob¬

viously, private insurance

com¬

panies do not want to shoulder

TRADINC MARKETS
American Cement

Botany Mills
Heywood-Wakefield
Indian Head Mills

W. L. Maxson

Morgan Engineering

best

Carl Marks

&

Co Inc.

Southeastern Pub. Serv.

United States Envelope

that

the

It went
coal

on

indus-

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

TEL: HANOVER 2-0050

LERNER ft CO.

NEW YORK 5, N. Y.

•

.*

TELETYPE NY 1-871

A

i

Investment Securities

-

*

.

1

try

recognizes

power

that

economical

not yet




will

there

insert

to

eco-

served by un¬

statement of policy.
"■

8 if "you wiSh within ten days for prompt " *
.

that

Hill

In

when¬

'

fliWMMiuamwwHveiHMvaiaaatt

,

Persons

country coming

own

EVENTS

question.

optimism about the
availability of low-cost
nuclear
power,
declared
the
early

1

refund. Act immediately.

have not been identified.

hand.

COMING

develop power

to

plants for use in commercial
ships, and particularly for the
nuclear-powered merchant ship,
the N. S. Savannah, under con¬
struction. Reports are on Capitol

it

one,

its

on

continua¬

of work

tion

warranted

a

book

will

However,

order

by
Dept. 34.
101 Fifth Avenue, New York," N. V."
Limited quantity available! Send check
_

big

proposition

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with

to the energy requirements of the United States
and the world.

,

Foreword by Bernard Barach. $7.00 *; • •
your bookstore, or
mail from L. C. Page & Co.,

move

for

that

a

the Atomic-

program

1960 includes the

it

someday,

*

nomically

interests

By Charles Mackay, LL.D. with

Commission's

The
for

sive

the "Chronicle's"

The Commission's Program

nu¬

Maybe

National Co.

MADNESS

CROWDS

Npw at

in a
apparently

association

policy

should

it

ever

750 pages
,

m

of

the nuclear energy

energy

m

8

The

plants.

competitive

Energy Commission would have
to admit that it has an expen¬

The association declares nuclear

Bernard Bar itch,

«

as

power

afford to build

can

power

be

has taken the sensible approach

uranium stocks, oil speculations,

me

rep¬

this
large
industry,
is interested in the
prosperity of the

statement

m

Associa¬

and

industry.

satellite. Shows howr easy

Coal

association,

trade

a

naturally
'

is for
S points on newsfooledthe Russian
of by itphony
people to be

advertising

National

resenting

depressions, national

fads,.. why the market broke four

*

realize

now

blunder, and

secrets of course,

the Florida craze, etc., etc. Casts

light

a

moving so far away from
Capitol. So far, the person
persons responsible for the

are

years.

many

prophecies, the South Sea Bubble,
new

or

Coal Versus Nuclear Energy

.]

being constructed for export.

budget

field

fossil

During

years.

many

1958, six civilian nuclear powerplants were being built under
supervision of the commission.
Also two power reactors were

made

ending June 30.

nation about 10 years ago.

*

for

news

Under the budget recommen¬

Federal and non-Federal.

the

than 50

steam

but right now even

power

000

dustry
clear

will

kilowatts of steam or
atomic generating capacity,

accounts of

with

is

energy

more

or

kilowatt, that it is going to be
long time before private in¬

words a minute?—My wife
gives me 240!"

"Your secretary takes 120

000,000

on

nuclear

costs of from 4 to 15 mills per

foreseeable

under

Purpose of this tidal survey
($616,000 was appropriated for
fiscal 1959) is to determine the

ena

the laymen that

even
as

compared

beginning of last year

United

Power

/

G

United

the

mills for each kilowatt hour

point out, it had under Federal

1

that
rise

higher and faster than
any
place on the American Conti¬
nent and probably in the world.

B-, The classic work

long

as

costing 30, 40

construction, or authorized, 11,500,000
kilowatts
of
Federal
hydroelectric capacity. But as
Interior
Department
officials

project at Passamaquoddy
Bay, situated between Maine
and
Canada's New Brunswick
Engineers say
bay the waters

with

country

like

atomic energy. It is also ap¬

parent to

More Federal Power

tidal

Province.

rich

a

taxes,

a

to

of

feasibility

economic

the

as

j

in

advocates

Power

with 23,076
for 1958.

States, could afford all the re¬
and money being spent

Congress.

recommended to Con¬
gress that 1959 carryover funds
be
used to complete a threeyear
survey
by the Interna¬
budget

26,556

search
on

should recom¬
feasibility, would kick
storm
on
Capitol Hill
the Public Power versus

a

up

only

high

Perhaps this mighty project,

among

compare

Meantime, it is rather obvious

mend its

his

in

fisheries in the area,

on

esti¬
This

completed is
22,450 for 1960.

and

1959

that

if the engineers

been about 8%.

Eisenhower

President

in

atomic

the

be

at

number

-Army

is

in determining the potential ef¬

;

end

this country has

the

of

to

mated

studying the po¬
tential power market and trans¬
mission problems. The Fish and
Wildlife Service is cooperating
with the Canadian Government,
Engineers,

in¬

power

assistance

tions

with

Commission,

Power

the

to help expand the
Federal Government's longtime
taxpayers

role

power

of

The number
background investiga¬

full

of

location requirements. The

data

program.

energy

construction and
Fed¬

ing into

coming
private

and

restricted

Army Engineers is inquir¬

dollars.

many, many billions of
Where is the money

Government

terminate

to

are

three Government agencies.

vestment

population today of
people. However, plans

69,000

.

Participating

mists.

esti¬

an

mated total

of

cost

WASHINGTON, D. C. —The
enormous
amount
of electric

type

Energy

/I

JjLtltt

Capital

from the Nation's

this

communities.

t'

•

There

Behind-the-Seen* Interpretation*

of

risk

particular community or

,

from atomic energy has
been demonstrated and

does not

appear

feasible in the

II Pest Office Square,
'Telephone
lUbbard 2-1990

Besten 9, Man.
Teletypt
B9 69