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1
:
|\
ESTABLISHED 1889
Number 5916
Volume 191
AS WE SEE IT
Ejumc'
To
it is
us
New York 7, N. Y.,
disheartening
as
it
as
is
Thursday, January 14, 1960
Price
50
Cents
I
i
Reg. U. S. Pat. Offics
Copy
a
J
What's Ahead for Business and
astounding how
prevalent the notion seems to be that individual liberty
economic achievement
and maximum
incompatible.
are
Hardly a day passes that some public statement, often
from high official sources, does not appear which seems
imply that a choice must be made between the two.
it seems that we tend to meet the challenge
of Russian achievements in substantial part with a reit¬
eration that individual freedom is more important than
By Walter Maynard,* Senior Partner, Shearson, Hammill
to
& Co., Members N.
All too often
Certainly, in our own domestic sphere
long ago developed the habit of preaching the
"stimulating" greater "growth" and for pater¬
material progress.
we
have
need for
of the unsuccessful, while dismissing our
earlier belief in individual initiative with a shrug of the
nalistic
care
shoulders and not
infrequently with
some
sort of implica¬
tion that theSe earlier tenets of ours stand in the way
the kind of material progress
.xV
future.
-
-
■
,
that
of
must have in the
we
\'v
'/■
Board
intentions,
in his
State of the Union message [Full text on page 25, Ed.]
could be interpreted as half conceding economic supe¬
riority to the Communist form of social and economic
organization and control. At one point he remarked:
"The
of Governors of the Exchange.
Maynard
have
the
predicts that in 1960 the stock market will
benefit
of
strong business background, rising
a
earnings and higher dividends.
can
present
increased issuance of
will
also
author
have
a
tempering
difficult.
more
attention
influence.
the trend should
says,
but gains will
year,
be
be
less
"But in
our
„
scale of values
our
by the progress of invention.
it is;
that
one
communism
in
and
Bargain hunters
form
To
valid
a
stock market at
ing strongly for
a
judgment
offer.
never
can
And
freedom
is written not
only in unparalleled prosperity of our
nation, but in the many billions we have devoted to the
(Continued on page 28)
the
on
earnings, we had
glimpse last year, in the second quarter, of the
of earning power that industrial leaders can
develop when the new Federal Reserve Board In¬
dex stands at, say, 166 or so, the level which will
again be reached in the present half-year. Earn¬
ings on the Dow average in that quarter were at
a
kind
are urged to
future
of
than two
more
years,
the
election
national
impends, is an
interesting
assignment. A rational approach
the
problem
of
some
the
is
trend-influencing
to
deavor
assess
ards
important
factors,
The
by them, and then
specific sugges¬
tions for
action.
Four important
Walter Maynard
.
and
trend
-
mak¬
respect
to
the
course
of
tion
dividend-paying! capability implied by these
of business will continue to increase.
reserves
This
means
well
covered
that
dividends
being paid are
quality. Moreover,
seems logical to forecast
a further increase in
dividends of all corpo(Continued on page 32)
expecta¬
business,
years.
capital facilities at
and
now
thus of high
it
tions.
With
t
siderations, business has not been adding to new
a very high rate, nor will it
probably be able to achieve new records in this
respect until 1961, so this in turn implies no vast
additional drain on cash flows. Finally, deprecia¬
(1)
(4) the general area of sentiment or
i -
developments^ and capacity limitations seem likely
to inhibit much
inventory accumulation in the
next six months.
In addition to inventory con¬
the course
„of business, (2) factors affect¬
ing the quality
or
inherent
value of stocks, i.e., earnings,
financial position and, the like,
(3) supply and demand factors
within the stock market itself,
ing factors are
iv
earnings is relatively high. Last year business was
unable to accumulate
inventories at as high a
rate as would have been desirable in the light of
tors of the market will be most
some
•
Expects Dividend Increases
en¬
their relative
strength, determine which sec¬
arrive at
of recent
to examine
more
!
annual rate of about
$44.00 per share, and this
rate of earnings may well be duplicated, or moder¬
ately exceeded, in the next six months. This means
that the average is currently selling at some 16
times earnings, neither low nor high by the stand¬
when
and
'
;
to the dominant consideration of
selection
time when prices have been ris¬
a
the
Turning^now to what at this juncture seems a
important price-making factor, we come to
the qualities of stocks themselves. ; With respect
an
place freedom first—
development have been
econ-
1959
with
more
the
consider oils and building stocks.
of material
that lend a false
America's record of material accomplishment in
reconstruction of free world
balance,
one passage
geared to that basic concept and are responsible for the
position of free world leadership to which we have succeeded. It is the highest prize that any nation can pos¬
sess;
On
demands
for capital goods, and this,
country's growth, means con¬
satisfactory levels of general
business
activity for at least 18 months to come. A.
Among groups he singles out for especial
we
whole national existence and
•
tinued
upward throughout the
than
influenced
■
and^
rising
by
capital goods industries and issues favored
are
accomplishments over the past 15 years
persuasiveness to many of the glittering promises to the
uncommitted peoples.
>
•
seems
combined
newly created stocks. Political hazards
array
an
It will, however, feel the
weight of increased competition from long-term bonds
to
Communists
virtually assured for a good part
by last year's steel strike and its afterof depleted inventories in wide sectors of
math
the economy. This circumstance will be reinforced
Mr.
~
Whatever the President's
activity
of the year
Y. Stock Exchange; Member of
high
Underwriters and distributors of
REGISTRATION—Underwriters, dealers and investors in corporate
securities are afforded a complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 34.
SECURITIES NOW IN
/
Government,
Municipal
Hope Street, Los
623 So.
Members New York
Associate Member
HAnover 2-3700
Offices
UNDERWRITERS
BROKERS
DEALERS
'•
MEMBERS NEW
15 BROAD
* New
York 15
CABLE:
YORK AND
STREET/ NEW
OF NEW YORK
Company
AMERICAN STOCK
EXCHANOEV
W 4-1400
TELETYPE NY t'MM
YORK 5. N. Y._*
COBURNHAM
Dealer
■
To
Distributor
•
- •
+ •:
oy.
•: :• x.
v
:
.*.•.; v
..
.
;
*
Block Inquiries
Members
Investment
New York Stock
Exchange
Stock
Exchange
American
25
NEW YORK 4, N.
hrst
DALLAS
DIRECT WIRES
TO MONTREAL AND
BRIDGEPORT
•
PERTH AMBOY
and
2
BROADWAY
NEW Y0RK«
'
.
Development (World Bank)
THE
Chase
York
Manhattan
BANK
HAnover 2-6000
Correspondent—Pershing & Co.
MUNICIPAL BONDS
FOR
CALIFORNIA'S
CIVIC
\
IMPROVEMENT
,
.
■
All
TORONTO
m
i
m
MUNICIPAL
-
Dominion Securities
Corporation
Co.
EXCHANGE ,
1 NORTH LA SALLE ST.
s
CHICAGO
MEMBERS NEW YORK STOCK
■
International Bank for Reconstruction
BONOS & STOCKS
Invited
Goodbody &
Y.
gotdhutedt COMPANY
and
CANADIAN
CANADIAN DEPARTMENT
Teletype NY 1-2270 . '
BROAD STREET
New
Maintained
Brokers
Commission Orders Executed On
Canadian Exchanges
Securities
Monica
Dealers, Banks and
CANADIAN
SECURITIES
t.l. WATSON&co.
ESTABLISHED 1832
*.
Corona del Mar,
Inquiries Invited on Southern
California Securities
Teletype: NY 1-708
Bond Dept.
Net Active Markets
Underwriter
United States Government insured Merchant
Marine Bonds
Hollywood, Long Beach,
Santa
Burnham and
30 Broad Street
American Stock Exchange
Exchange
Claremont,
Cooperatives
Mortgage Association
Federal National
Riverside, San Diego, Santa Ana,
COMPANY
BOND DEPARTMENT
Banks for
;
Stock Exchange
Oceanside, Pasadena, Pomona, Redlands,
THE FIRST NATIONAL CITY BANK
TRUST
in
Encino, Glendale,
••
Federal Home Loan Banks
Members Pacific Coast
CHEMICAL BANK
^
.
Federal Intermediate Credit Banks
Angeles 17,
California
„
NEW YORK
Federal Land Banks
Lester, Ryons & Co.
Securities
telephone:
AGENCY
NOTES
Dealers in and Distributors
Housing,
State and
:•
HOUSING*
of Securities of
Public
.
PUBLIC
BONDS AND
II. S.
_
STATE, MUNICIPAL AND
40
Exchange Place, New York 5* N. Y•
BOND
DEPARTMENT
Bank
of
America
■
N.TV&S.A.
"
Teletype NY 1-702-3
WHitehall 4-8161
San Francisco ' Los
Angeles
'
!■'
VI
5
I
The Commercial and Financial Chronicle
2
The Security I Like
Brokers, Dealers only
For Banks,
Cover the Entire Nation
A continuous forum in which, each
>
wide
have
you
a
Mr.
Robert
B.
-V
•
ambi¬
tious
expan¬
taken
70
on
this
old
by
year
-
A
-
tial
Victor P.
efforts
voted
MUTUAL
SECURITIES
FUND OF BOSTON
As
growth
Killer brothers
ration is
CO^ INC.
tion
COUAT STREET. BOSTON 9, MASS.
in
(Corner of Washington St.)
in
1956
future
when
Raw
Refined
—
—
chlorine,
of
its
kind
in
the
world
4?
appreciation
is the
/
is
liking Assembly
because
is
it
a
vigorously expanding
laPpea a vir"
ited
market
encom¬
passing
full
the
range
modern
labour,
necessary
rail
excellent
ironcnGriotmn
rail
MAILING
1
e
is
centering
pricommercial and indus-
w
can
e
thousands
supply
hundreds
of
complete
mailing
list
division
Division
produces
increase over this period.
crease to $3.1 million is expected
'n 1959 with a further increase to
cQno-oi
nTnH.»?rfJ
<?inn
d
a
*
neou<f
coke and
and coke h«
coke,
by-products.
features
tested"
Dunhill's
5,000
lists
catalog
"qualitythe U. $,
covering
o
•
nrnHnrtc
4
rotri
or.
for 1960.—^:X
^i?.MCem
°frv-nine
months
nlrfhfn
Dept. C.
sion
result of
an
aggressive
anc* fruitful program of research
up,20%,f™om the
Dunhill Building: 444 Park
Ave., 8outh
New York
16, N. Y.
to
$1.95
per
(Th.
.
j
,
,
.
as
a
so
.
.
.
eleetro-meehamcal instruments
which
com-
on
1,426,233 shares outstanding. Earnings for the year
1959 are estimated at
$2.60 to $3.00
I INTERNATIONAL LIST
CO, INC.
TWX NYL 3153
share
use
as
are
uniquely adaptable foR.
critical elements
offer
to
elecX
highly"
machine
per
in
buy,
any
as an
information
or
write
Yamaichi
Securities
of
plus
'minus .0005 inch.
or
Equally
remarkable
that
standardized
the
economical
for
such
is
Versatrol
diverse
the
and
.
Affiliate of
>
Yamaichi Securities Co., Ltd.
Tokyo, Japan
Brokers
111
&
Investment Bankers
Broadway, N. Y. 6 COrtlandt 7-S680
functions
used
the
as
Consumer
viscosity, hydrogen-ion, con¬
centration, light, speed, load, etc.
The flexibility and versatility of
Finance
.-
company's
product
temperatures
minus 200°
sing]e
F.
to
from
A
plus 3000° F.
Seanner
monitor
control
minute. The
be
can
for
used
e
seek
for retail off-street place¬
blocks of inactive preferred
ment
or
stocks
common
of
dividend-
paying small-loan companies, sales
finance companies, or factors.
as
24 stations making up to
many as
Companies
develop¬
ments is further underscored by a
Scanner
initially developed
for
monitoring
Company
York, Inc.
fact
controlling of thickness, torque,
current, voltage, radiation, pres¬
the
X
highly
be
can
New
an
recently,
of
sales
major
a
ALBERT J.CAPLAN &C0.
Members:
Boston
<6
Phila.-Balto.
Pitts.
1516 LOCUST
Stock
Stock
Exchange
Exch.
(Assoc.)
ST., PtilLA. 2, PA.
new
has
growth
been
in the field of special¬
systems.
A typical
up
contrdl
stretch
forming equip¬
Cyril Bath
This $2,300 control
which
includes
of
sys¬
the
of
some
a
stress-strain
data supplied, there¬
by determining and "remember¬
ing" the yield point of the metal
being
stretch-formed,
that
the
tension
force
then
and
utilizes this information to
is
ensure
applied
.
only up to the safe maximum of
the metal.
Entry
tems
sion
into special
represents
of
the
activities
[tXd
L
the
£
,
control
in1947
'J
.
function
proeram
centered
development
-
sys¬
exten¬
company's pioneering
in
XXumenteu'm^ TMs
*
control
logical
a
.
of
a
in-
offer
security referred
to
to
soil,
or
herein.)
.
*
...for you
in-
teu'iallv
oroorie-
'
,
4
*
com-'
hbl thrXcceDtkma^r XdonSe
«I^fc ;
sen?1
tvGf?WpinLrnt^
°/ a. J^we!-pivoted
coil meter with a
;
-
positivecontrol relay circuit possessing a
contact life expectation of 10 to
20
million
operations.
Flexible
nmits 0f relay action are provided
for by adjustable pointers and the
N. Q. B.
sensitivity of the instrument makes
OVER-THE-COUNTER
it possible to operate on a direct
unamplified signal which may be
as small as two ten-millonths of
20-Year Performance of
an
INDUSTRIAL STOCK INDEX
amnere
„.
'
,
...
.
.
The concept of combining standardl?atl0n °£; bas^o, design with
^^peftXan'XnuXualTgXee
i• -in the "Liad"—-an instrument de-
,
an
for
tronic control systems which can
be both
sophisticated in
no circum$tano•• to be construed
icitation of
of
ance
moving
,
n/iii
this amounted
MU 6-3700
,
a
mon
k
.
° "
horizonsI for future expanas a
'
ended
,
I
-r-
rru-
'
reported at and development involving exc?m" pen i ,res averaging 7Vz% of anfor this nartean"
o™rmngS
sa
This Program has paid
1958
After
nrnf?ase. dividends
rVL°vV of }"
1958.
e devel°Pmf"t of a line
After
preferred
tmm
Canada & Latin America. Edition
limited. Write today for
your free
copy to
the area of $4 million indicated
newest
premium
An in-
\ Pr£duct? Dl1Y1"
vigorous growth trend reihh
miscella- fleets the continuing development
FRFF-
production
operation involving the automatic
grinding of steel balls to a toler¬
.
which include
quirements.
* **■"*"
in¬
detergents and sanitizing products
no
re¬
in control function
pioneered
railroad and aircraft
industries.
names
of ambitious
Americans eager to invest in
spec¬
ulative venture.
Call Dunhill for
your
This
Ford
current
Call
standardized Versatrols. This con¬
trol system paid off in 33% more
strumentation.
cleaning materials,
washing compounds, bleaches, and
decreasing materials used by the
of
ha<?
has
growth from a volume of $392,443
« 1952 to $2.17 million last year,
representing an approximate 450%
customer.
LISTS
which
which
organization
corporations in the United States
a
For
simplified elec¬
tronic brain, studies and analyzes
marily
™inaea
i—a
very
as
35%
payout period measured in months,
for an automatic control system
built around one of the company's
functions
Seligman
trial markets.
transportation, and land
growth are readily
listed
STOCKS
typical example is the aggre¬
gate cost of $800,000, involving a
tem
Bertram
sales
on
branch offices
A
Company.
companies
ex-
our
ment developed by the
ct ronics
with
to
JAPANESE
'
advanced
the
Available financial records show
an
unbroken' pattern
of
sales
be
capacity.
example is the control system de¬
signed for use in conjunction with
e
NY 1-1557
Mobile, Ala.
<
Direct wires
provides
increase in
that
few exceptions
each of the 500 largest industrial
can
approximate
an
opened
relatively few
available.
With
*
Recent plant expansion
ized
of
Exchange
New Orleans, La. Birmingham, Ala
requxrements of all classes of manufacturing. companies ranging from
relatively small companies to the
giants of American industry.
More
Assembly
Products, Inc.
for^ future
(2)
outstandingly eco¬
nomical
from
thfe standpoint
of
final cost including materials, la¬
bor
and
engineering.
In conse¬
quence;
the company's" products
area
impor¬
one
Stock
speed, etc.
of
water
nnA
and
tant is the fact
is
American
HAnover 2-0700
function
in¬
dustry.
Also
Co!
„Members New York Stock ExchangesMembers
monitoring thickness, torque, cur¬
rent, voltage, radiation, pressure,
-SSSSFSfcSS
bTSKeSSJ
mincfed oreanbatfon
and
;
19 Rector St., New York
6, N. Y.
same
Jtsstt&urstte
nnH
City. (Page 2)
12 stations checks per
unlim¬
base
levels
and
Inc.
and
tuaRy
ash,
caustic
These products
strategically located to further
for-
reasons
young
estimated $37 million, this instal¬
lation is one of the most modern
.<00* <Noe
capital
electronics organization which has
closely to general industrial
activity as they are sold to almost
every basic industry.
The new Ceismar,- La. Works
located near Baton Rouge is the
most formidable example of the
company's expansion. Costing an
DIgby 4-2727
term
...
very
Liquid
-
Products,
soda
soda, and glycols.
tie Wyandotte's production
Exports—Imports—Futures
long
The
were
heavy chemicals foremost of which
SUGAR
in individual accounts where
Assembly Products, Inc.
a price of $26.50.
company's many' products
be
oe
classed in
classed
in three general
are
sion
Manager, Straus, Blosser &
McDowell, New York City
(1) Wyandotte through its Mich¬
igan Alkali Division is one of our
country's largest producers of basic
NEW YORK 5, N. Y.
Wyandotte
is recomended for inclu¬
BERTRAM SELIGMAN
groups:
STREET
which
Resident
The
WALL
earnings.
Steiner, Rouse &
.
York
New
sure,
Al¬
the J. B. Ford
100,000 shares
a
objective.
Ford at
LAMBORN & CO., Inc.
paid
at
Dividends of
annually
since the
rather than current income
offered by the descendants of Capt.
can
share
1956- 1958
Company. Public ownership began
Tolaphone Richmond 2-2534
per
been
of the Michigan
1942
Market
price of $56.
$1.00
The present corpo¬
kali Company and
Counter
-
have
common
result of the combina¬
a
the
-
public
offering in 1956 averaged 40% of
seem
John B. Ford.
3
Over
Corpora-
stock is traded in the
common
current
outstanding.
Wyandotte traces its early ori¬
gins to the 1890's when the com¬
pany was first established by Capt.
GENERAL DISTRIBUTORS
C
substantial
or
1954 to 1958 reveals
annual cash flow of
average
per share.
Wyandotte Chemicals
an
f
sibilities
Request
of income statements for the
tion
important partici¬
pant in an industry whose produc¬
tion has grown twice as fast as
general industrial production in
the last decade, Wyandotte's pos¬
ations.
Inspec¬
$6.00
and
new
improved products, to expanding
the' company's market area, and
to
increasing
profit
margins
through more efficient plant oper¬
.msf
on
for
pre-tax profit margin is
period from
Rosasco, Jr.
an
research
to
15%
a
tion
firm, Substan-
SAN FRANCISCO
Principal Cities
facilities
approximately
reasonable expectation.
a
have been de¬
Prospectus
Seligman,
Resident
Manager,
Straus,
Blosser &
McDowell,
share of $1.20 after taxes based
per
1
utilT- me.et the equipment, budget
cente/Full
Geismar
the
of
million to Wyandotte's sales.
resultant increase in earnings
$23
program
under¬
ever
New York 5
CHICAGO
Private Wires to
zation
could therefore add
most
sion
average"of~62
an
almost
completed the
Teletype NY 1-40
PHILADELPHIA
com¬
Bought—S old—Quoteet
'
level dur¬
1958
coming months, further in¬
creases
in .Wyandotte sales
and
earnings can be expected.
In the five-year period 1954-58
sales per
dollar of gross plant
ranged from 56 cents to 71 cents,
during
has
American Stock Exchange
•
Louisiana Securities
Assembly Products, Inc.—Bertram
As industrial
at an even faster
ing
the last decade
Established 1920
BOSTON
Alabama &
Selections
;v:
(Page'2)
year.
its low
from
rate
Sempie, which
brought
the
this
activity picks up
management group,
headed by
pany
'
lost sales volume and
any
of
half
was
Corporation
120 Broadway,
The
1960-61.
New Yoilt Hanseatic
WOrth 4-2300
assume
in" industrial activity during
crease
into
Member
adversely affected by
reasonable to
'*•
potential niarkets--th4ey also as¬
sure you
of accurate executions.
Associate
Week's
Chemicals
Corp.
—
Victor P. Rosasco, Jr., of Baker,
Simonds & Co., Detroit, Mich.
Wyandotte Chemicals Corporation
problem, don't limit yourself to
regional service. Our large trad¬
ing department
and extensive
facilities not only broaden your
■■
Although fourth quar¬
(not yet reported) may
been
the steel strike,, it is
Wyandotte Chemicals Corporation
trading
■'
Thursday, January 14, I960
security.
share.
have
Detroit, Mich.
States.
99
.
Participants and
Their
ter results
per
Baker, Simonds & Co., Inc.
reaching banks, brokers and
dealers
throughout the United
time
ROSASCO, JR.
VICTOR P.
age,
Next
.
Wyandotte
blanket cover¬
and
week, a different group of experts
participate and give their reasons for favoring a particular
and reli¬
fast
traders
service
able
This
field from all sections of the country
in the investment and advisory
advantage of our nation¬
network of private wires,
affording
Best...
Forum
T
Call "HANSEATIC
Take
.
(154)
signed to convey analog informaContinued
on
page
33
35 Industrial Stocks
FOLDER
ON
REQUEST
National Quotation Bureau
Incorporated
4® Front Street
x
New York
4, N.
Y|.
Number 5916
Volume 191
.y. The Commercial and Financial Chronicle
(155)
3
on
CONTENTS
By Robert L. Sehlesinger,* Chief Financial Consultant,
Ebasco Services, Inc., New York
City
COMPANY
Articles and News
V
since 1950 shows their stocks outperformed representative
index of industrial stocks against which a fair comparison can be
What's Ahead for
~
0
:
V
-
^
;
:
i
back
30
over
|I
>.
-
to
the
years
match
has been a large demand for funds
from many sources: from business,
individuals, municipalities, and
U.
the U. S. Gov¬
1959
ernment on its
cedented
recent financ¬
decline
ings.
business
Current
witnessed
almost
an
security
was
offset by
—Edward
Do
long-
term funds. The demand for short-,
therefore,
term funds grew
contrast
stark
sharp
a
.
-
intensely in 1959.'
primarily attributable to
was
increase
in
Chemical Industry
2.39%
the
to
Robert L.
by Madison
Co.
This
have
is
the
lowest
of
record. The
a
that
bonds
basis
offered
were
represented
yield in about 25
'
this
sharp
rise
The demand
relatively
elec¬
scale
spending
has
creased
also
due
contributed
are
consumer
in¬
bear upon this
What is
problem.
tory
expenditures,
inven-
and consumer
Will future Federal bud-
the cost and
it?
What
will
be
the
impact
of
Presidential
election?- Will
this country's balance of international payments continue in the
business
red?
Will
the
continue? Now
outflow
of
tion.
The expected result would,
with
securities
by
do not propose
we
give categorical
answers
Broadway, New York 5
DIgby 4-4970
(Editorial)
-Cover
Stocks
Insurance
33
-
Servonics
Bookshelf
Man's
44
Recommendations-
Bargeron
31
and
Pyramid Electric
American Int'l
15
Funds
Banks
Jamesbury Corp.
8
13
Mutual
About
Pacific Uranium
44
—
41
Bankers
Wilfred
Observations—A.
;
May__
Our
40
Report
Reporter's
Securities
Utility
HA 2-9000
Direct Wires
32
Chicago
Railroad
Securities
*
Prospective
Security
business,'
in
Now
Registration
Los
Salesman's
Cleveland
Dallas
Angeles
Philadelphia
30
You—By Wallace Streete
16
The
Security I Like Best
.
.
.
and
quiring government
St. Louis
39
Corner
Market
l
34
Security Offerings
The
N. Y.
to
San Francisco
Securities
inc.
40 Exchange Place,
Teletype NY 1-1825 & 14844
NEED "HARD TO FIND"
2
QUOTATIONS?
were
to all
Mack ie,
8c
4
16
Bowling
Singer, Bean
24
Our Reporter on Governments
Public
particularly active in acsecurities isquestions.
However, a re- sued by the Federal Government;
view of some of the
underlying as well as those sold by banks to
factors affecting the present cost obtain lendable funds,
of capital
should indicate why
Certain additional indicators of
money is tight. Some reasonable the rising demand for funds areconclusions can
then
be
made apparent.
Loans by commercial
concerning the outlook.
banks reached a record level ot
about $108 billion last SeptemReviews Recent Developments
ber.
This is an increase of al-r
to
J.F.Reilly&Co.,Inc.
25
Indications of Current Business Activity.
News
These j sources,
together
short-term investments in
Treasury
gold
_
surplus posi-
a
tors.
21
\
From Washington Ahead of the News—Carlisle
1960 will
Of particular significance in :
1959 was the availability of a substantial supply of funds from individuals and also foreign inves-
the
It
request
on
20
Einzig: "British Reaction to U. S. Steel Settlement"
term or investment funds,
controlling
availability of cred-
"'Prospectus
Against Inflation?
___.
Dealer-Broker Investment
gets produce more deficits?
Will ing position of the Federal GovCongress raise the ceiling on long-• ernment, it is not indicative ofterm
Treasury - interest
rates? any lessening of demand for shortWhat will be the future policy of
the Federal Reserve in
Protection
Coming Events in the Investment Field
by
from
a
and
Business
high
therefore* be an over-all decline
in the demand for funds in 1960.
Since this may be basically attributable to an improved operat-
build-up,
credit?
deficit to
Provide
An in¬
high rate of
and
See
We
Bank
assuming the Government moves
the outlook for
business, plant and
equipment
credit
a
18
■'
•
.
•
possible decline in the
debt
may
be realized,
Federal
questions that
many
A
loans.
costs.
money
There
the
offerings
short-term funds in
substantially reflect
cold
to
As
by a decline in real estate
mortgages, just the opposite of
the '59 pattern.
A large demand
for
"
Mason
Stocks
transistor
Regular Features
was
ended
year
near
•
industro
14
39
Govern¬
«
security
cross co.
Governments
Text of President Eisenhower's State of the Union Message.
set
rates.
the
Federal
$12.5 billion
steady
Local
on
12
.
ac¬
corporations probably will be off-
has been
to |
in
crease
Simply tremendous. At the same
time, the - Federal Reserve has
employed a restrictive policy de¬
signed to retard inflation. Large
war
an
1
oxford chemical
~
It may be'
level experienced in 1959.
"A" by
interest
of
at
Looking ahead to 1960, the de¬
mand for long-term funds may be
lie behind
for money
a
/■;
business.1
last June.
the
highest
years on an
that
incurred in the fiscal
5.65%
a
the
reasons
continued
deficit of
ment
we
to
on
tric Company issue rated
all the rating agencies.
A number of
recalled
electric
,
which
Georgia Power
public last September
1958
Electric celerated rate in 1959.
Gas &
yield
bond
in
Growing Threat
a
Christianity and Communism—Roger W. Babson
large increase in the Federal'
debt
1946
utility
Sehlesinger '• The
S.
Common
•
yield obtained
in January
Faces
—Raymond B. Garcia—
consumer
credit and bank loans to
11
World Energy Prices Over Next. Two Decades
•
increase in the
This
Thurlow
—Frank E. Morris
utilities,
•
K.
by
bond issues of
a
S.
..
yields on new
represent
10
Monetary Policy's Impact
sharp rise in new real estate
mortgage financing, causing a net.
for
admiral plastics*
Financing'
Forecasting Today and the General Outlook
„■—John Hilldring
a
demand
9
•*<
A
offerings
than
more
unpre-
increase.
Dept.
YORK
Telephone: WHitehall 4-6551
.
.1
Johnson
—Bradbury
Government.
peacetime
in
Securities
WALL STREET, NEW
permachem corp.
When viewed from the standpoint
of the over-all demand for
funds,
paid by
rates
Federal
O.
obsoletes.
Obsolete
:
.
5 / :
Short-Term Money Outlook and Treasury
Market
the
3
:
-
else monkey
anyone
your
Utility Financing Costs
on
Canadian Credit and Capital Play?
v'—J. E. Coyne
some of the more recent developments. During the past year there
from
Don't let
^,_Cover
»
Singer Sings Again—Ira U. Cobleigh
What Role Should
ANOTHER
MONKEY
Election
(—Robert L. Schlesinger__
—Norris
go
L
Maynard
Impact of Tight Money
i
interest rates for 1960 as a > whole—lowering somewhat, V"
however, in the latter half.
present tight money market
has created the most restrictive
money condition in over a quarter
of a century.
In fact, we must
Market This
99
Moreover, the utility financial analyst denies present*
debt ratio of electric utilities is high. Further, the writer anticipates .
The
Stock
and
with
*
financing costs.
,
Year?—Walter
-
;
new tax law's impact, and advises
utilities to consider the relative value of dividend and interest
yields
to insurance companies when estimating near future preferred stock
;
WITH
MONKEY'S
Business
:
He calls attention to life insurance industry's growing interest
higher
~>
-
-
panies
preferred stocks because of the
MONKEY DOESN'T
MONKEY
reviewing effect of tight money upon utility financing costs, Mr.
Sehlesinger declares study of average, representative electric com-
in
A WISE
-
In
made.
B.S.
The State of Trade and Industry
5
tbese
Tax-Exempt Bond Market—Donald D.
Washington
and
Mackey
6
;
You
YOV WILL FIND THEM
IN
44
*Column not available
Bank & Quotation
this week.
Record
"
First
let
us
quickly
'
examine
.
:
Continued on page
42
(Only $45
Published
Twice
"WeeklyV..
Copyright 1960 by William B. Dana
The COMMERCIAL and
CHRONICLE
FINANCIAL
IZr^SZZPREFERRED STOCKS
WILLIAM B.
Members
New
York
/
1868
Stock
BROAD
Other
Thursday, January 14, 1960
TELEPHONE HAnover 24300
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Newark
Y.
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plete
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—
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for
foreign
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must be made
and.
$4)
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on
you
will
all
Over
as
-
the monthly prices
listed
securities
those "hard
The
-
Write
advertisements
in New York funds.-
as
to find"
Counter quota¬
tions.
or
WILLIAM B.
,
Thursday (general news and ad¬
issue) and every Monday (com¬
statistical
other
Worcester
States,
CLAUDE D. SEIBERT, Vice-President
Exchange
ST., NEW YORK 4, N.
in" United
WILLIAM DANA SEIBERT, President
Every
25
the
Possessions,
Territories
and
Pan-American Union, $65.00
bound
Febru¬
well
at
Subscriptions
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matter
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1942,
•
9576
second-class
as
This
give
25,
year)
—
.
post office at New
York, N. Y., under the Act of March 8,1879.
ary
Place, New York 7, N. Y.
REctor 2-9570 to
Founded
Reentered
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Reg. U. 8. Patent Office
25 Park
Spencer Trask & Co.
Company
per
(Single Copy
;.
"
call:
DANA CO.
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New York
7, N. Y.
REctor 2-9570
The Commercial and Financial Chronicle
.
.
.
Thursday, January 14, 1960
Steel Production
Electric-Output>
Corloadings
!
-
RetaiLTrade
A.
BY
WILFRED MAY
Food Price Index
•
Auto Production
Business Failures*
•
Commodity price Index
1870
Correspondents inprincipal cities
throughout the United States and Canqda
UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES
Dominick
-
.Members New
&
York, American
14 WALL STREET
Dominick
& Toronto Stock
-
Exchanges
We
are
pleased to
announce
the election of
NEW YORK
JOHN C. HAG AN,
.ijy .i:-
ag-presfdent!
HARRY C,
III
x
DIGGS, JR
Truman, Wasserman; Inc.
-r
-
announce
the
change of
name
Wm. Stix Wasserman and
to
Co., Inc.
Investment Bankers
\
70 Pine Street, N. Y.
5
WHitehall 3-7239, Cable address:
Wasstix
Charles Truman
announces
the
formation
of
Truman and Co.
-
60 Wall
Investment Banking since 1929
Investment Bankers
Tower, N. Y.
5
Volume
191
Number 5916
if
between increases in em¬
Darity
costs and increases in
productivity has been reduced.
ployment
"And
where
even
The Commercial and Financial
Chronicle
...
activity
the
continue to run appreci¬
above- productivity
gains,
there is likely to be a larger
degree of cost absorption by emnlovers than in previous postwar
rrutrt
years.
knfln
koooiipa
f kn
both
because
is
This
the
of money and intensi¬
stringency
competition, including loreigrt
competition, will work
against price increases. The Fed¬
eral Reserve .tightened the reins
on the money
supply earlier and
more forcefully in the present ex¬
pansion than in the preceding one.
la general
the economy/is less
liquid than at any time in recent
years, in the sense that the money
supply is smaller now in relation
fied
total volume of transactions
than it has been for three decades.
This condition will certainly ac¬
centuate the effectiveness of Fed¬
eral Reserve policy.;; >'';;
to the
price increases are in fact
greater in 1960 than they were
1959, the inflation, psychology
"If
no
in
rampant in recent years could
lose a good
deal of its grip , on
business and investment thinking.
This could have some interesting
effects on interest rates, particu¬
Bank
-
their
put
into
money
long-term debt instruments. Fur¬
ther
signs of real progress in the
fight against inflation would tend
to- stimulate investor appetite for
securities.
fixed-income
materializes
a
measure
the
If
significant
offset
could
it
tent,
to
upward
in
show
a
compiled
try,
indicate
ended
for all cities
tightness.
period of
figure of $505-510 billion
national
gross
prove
in
product
low.
too
This
for
1960
would
give the coming
sense
is
year more of a
of zest and exhilaration than
implied
in
the
same
week in
tive
summary
the
time
for
corrective
the
Jan. 9
debt—bear
trend
close
of
Boston^
scrutiny
on
a
year
hence,
as
it well
generations,
been
ther
clock.
The
-
been
'the;;'
of
one
1959
...
nrmament,
a,
+ 22.5
1,255,000
1,061,000
+18.3-
865,536
'735,655
+17.7
45 of
Monday,
our
11, edition.
Users
:
cXpanr
.rjast
N;
its business for the
run
*
-
:
"
vears
i
.;
*
if
stter
The
put
higher
of
added
pressure
prices
the
on
President,
new
the
over
Iron
Age,"
younger
men
top
efforts
will
not
relax
stocks
build
as
even
after the
a
This
mar¬
after inventory levels
eases or
appear
surrounding
higher costs.
against
will hold true
.
adequate.
Mr.
Donalc
echelon
an
than
of
million
70
traditional
ii.
attack
and
64.3
million
tons
balance
.
a
now sheet the Singer statement should
satisfy
Earnings
you.
1958
for
revealednractiWllv wefe^ ^
decade revealed practically , ended June
household
sewing
1959).
>
units
vate
steps
taken
being
of
by
$2.41.
singer
;
from
of financial
rock
a
strength, and its performance in
should
60's
the
But
enough of the past. How
does Singer look as an equity for
the Surging Sixties? Is it on a
plateau or a launching pad? /
incline
would
optimism
to
here. The energy of new manage-
vigoroua
Singer
it is
market-
rocket
not
may
wise but
one
be
than
more
The Forward Look
t
We
historic
its
to
exciting show-
enterprise.
ment
reassertion
very
so-sof
'
«the2>e
are
a
of the most dynamic
decades in all the history of pri-
ing for
Aggressive Forward Steps
Wnat vihen
shrunk
had
net
the
* recover
ground; lost in recent years to
foreign' competition
particularly
Italian and Japanese. (The Unitec
States
imported over- a million
insure production of
of
uke
,f
go
^XateT
Singer
management,
gentlemen are dedicated to
counter
ingot tons in
record
in
y su-
is
surely
resuits.
and
far
to
cost
going
Tighter
efficient
more
improve
controls
and
auto-
V,
'
> "'••
Elects Officers
Announce-
ya
pjqjfmqnj)
xviuniviuiNu, va.
Aimounct;
ment is made of the election of
C.
j0hn
mated
premacy?
III,
as
Diggs
Jr
Hagan
Harrv C
®nd "a ? C'
,fg
'
President
Vice-
as
'
-
days
is to
develop foreign sate,;
f ?
indigenous manuiaciure
efficiencyv
predicted for the entire year.
a
collapse in the market
later in the year would not stop
tons
Even
the
industry
record
in
117
1955.
from
million
breaking
tons
the
produced
1110 East Main
son-Hagan, Inc.,
Street, members of the Richmond
and
Philadelphia-Baltimore Stock
Pressure for steel will
last until
cost
Jersey
port, >New
plant
machines natively
produce
President
its
sales
An
in
American countries
serve,
Our
supplementing their sales
broader department
and
ditional
it
in history for
advertising. Out¬
in
vide
our
firm
period of vast
This is
before life on the cuff be¬
so epidemic, has in the past
decade become one of the most
was
no
established 50 years ago.
V
heritage and pledge—to
our customers,
correspondents and friends who have made
growth possible.
aggressive credit merchants. Since
1951
its
c r e d i t
purchase re¬
ceivables have increased 21 % an¬
pro¬
experience, judgment, imagi¬
sincerity.
our
a
different .today than
world of tomorrow will not
substitute for
nation and
long
Cornwall
a
pioneered
sales business
came
D.
when
which
instalment
the
was
Even the great new
S. there are 8,000 ad¬
sales agencies.
' ;y/
Singer,
a
guiding principle, however—that of offering
truly personalized service—is
outlets and by the
outlays
privileged to
we are
concepts — of new horizons—for all the world.
sales offices
its American
security buyers whom
but all America. It has Been
changes—of great trials and tribulations—of new
stepped up in
drive. It already has in¬
by
impact
exciting half century has passed—not only for us
and the
sewing centers to over 2,000,
Fifth,
and
1929.
momentous years
side the U.
Executive Vice
1Q9Q
-
in India.
biggest
elected an
^
w.
fifty
turning out sewing machines.
for
first
O'Connell
-
and to-deploy capital into those lished in Richmond in
is by all odds
mosts efficient
world's
price increase. Because Singer has bearded the Japanese
lion by buying a half interest in
the first actual pay increase will
Pine
Sewing- Machine Co. The
not go into effect, until Dec!
1.
other
half is
owned by - Japan
Continued on page 43
Steel Co. Further plans are afoot
the
Exchanges - The firm was estab_
plants and the acquisition of new
manufactories abroad. Along these
lines the new plant at Elizabeth-
/;•' the
:
low
output 'of
maximizing
promotion
•
/
;
our
firm's
.
..
r
elected an
,
at the
nually and
Assistant Vice
President
around
were
cc rporation
While
sewing
1959"
year
end'
$140 million dollars.
'
Line of Activities
Wide
think
we
machines
FOUNDED
Singer
of
the
in
and
same'
its
New York Stock
Blair
&> Co.
CORPORATE!)
Members ci the New York Stock Exchange
and olheY
principal Exchanges
king
-
prise ;
size
but"
company.
STREET
•
NEW YORK 5, N. Y.
plant
electronics,
(31%)
120
186
Broadway
New York 5, N. Y.
.substantial holding
For example, it has an *
electronic
jnfva-re.d
y
•
American Stock Exchange
leading exchanges
Montague Street
19
-»
Congress Street
Boston 9,
Brooklyn 1, N. Y.
Mass.
a
in
Bridgeport,
Conn.; with an exciting future
20 BROAD
Exchange
and other
other lines of
fact not only a
manufacturing enter¬
into many
activity. It is in
way
1910
Members
breath, Singer actually threads
IN
,
President and Treasurer ol Jvla-
-
and chain store,
of our
al-
proper
stocks held.
equities in minority
climb on
all com.
plants should do much to
;;jyy.v +restore favorable ratios of net
set in the hectic first half of 1959;
First, animation of management after taxes. For Singer this ratio
when mills were pushing to fill
already cited.
vshould be 4.5% against the 3% repipelines prior to contract expira¬
Second, re-designing, streamlin- corded in 1958.
;
tions.
\V- -l./
ing new models and' improving
The_ corporate fashion these
And it-will
put the industry their^operating
well on the way to the 130 million
Third, modernization of plants,
vious
giving no
and
down,
management lowance for the sizeable hidden
resources to
of any and
This is not
level
These
Japan in
the first
six months of 1960, the magazine
predicts. This will break the pre¬
e,
decade
share
much
Continued demand for steel will
be enough to
ig
given level of sales actually fabulous with unbroken skein of
declined, The best results were payment running back to 1863.
$4.72 per share earned in 1951 on Present" rate is $2 20 and Singer
net sales of $307.8 million, on $362 Common todav sells at 52 with
million of sales in 1958 the per an
yield
of
4.23%.
t...
was 43 ,when he took
top job. He is now sur-
by
weekly.
backs
J950
P.; Kircher
rounded
according to "The
the national metal-
uncertainty
moxie, and
the
with the tra-
company
p r e s t
f,ood tlm,e '9 start
market,
With
dition,
in
found
magnificent and real estate and factories written
a
rented ^ShflCauS"sg ?et,it0rf:, To; stockholders,
It
steel
working
hap-
-
prospect
!
Something had to be done, and
it was, within the past 18 months.
of Possible
Wary
Price Rise
The
ket
e v e n renowned
sheet,
balance
Singer
Here then is
*
and it is
been
...
-
1 ^,QMX T'""1;
inant
sewine
machine
nrodnrer
30, 1959, net was
hut
in
1958 lll pHnX°ahnnt
n0 forward motion until the last $L60 suggesting above $3 for the
40?
of the
hP world.market.
wnrH mtrS
P
year;.; in fact the profit margins full year. Dividend record is
40%
of
on a
and
has
in-
it: has
the :capital
all
80
organization,
developed
has
Sineer
'
million.-,
its markets. It used to be the dom-
creased
Andrew
is
needed to
owns
renowned
But
Fourth," Singer is
been
merchandising
Fact
understatement^ of'aZ^shXtht
most
Sr' ' ?? seve^ai /efs
World War II, was just wha
7.2
+
1,229,341, i
pleased to announce that
has
and
ternaily
France,
m f)ur ®n|ire cor~
nhritASPrr
P
and
J.
which fit into its manufacturing
In-
Securities, Ltd. with
operations in Italy,
subsidiary
England
Ctn
1,505,368
—
Steel
may
Homer
finance its operations
and to acquire related enterprises
in
interest
it. It has plenty of
on
to
money
...
30%
a
ternational
uniquely equipped to
now
capitalize
and
power.
Scotland;
the
is
and
itself
Germany and ;Brazil. . It
Diehl Mfg. Co. in Finderne,
J.,; which produces electric
the motors, fans, and vacuum cleaners.
New
the
certain South
are
has,
of
one
'
to
We
reasserts
„
around the world and around
¬ age,
flnn nmlttftrf" '.'1-..
-000
omitted-
appear on page
Jan.
a
vail
of
Complete details of the bank
clearings throughout the nation
continuing basis. It is to be hoped
balanced situation will pre¬
States
$15,191,557 $14,177,915 *
Philadelphia
consumer
a
,
knownK and. widest
distributed products of the industrial
Our compara¬
for. ;<some
1960
York_
Chicago
adjust¬
that
,.
™u
New
present the economy is
rising
1958.
" —_i
Wpplr TT.nrl
Week
End.
relatively free of excesses, al¬
though some developments—such
as
.
Singer-sewing machine
best
'week
United
•
c.
he
lor
princip&r rtioney centers follows:*''
cussion, but it would also hasten
ments. At
the
enterprises
.
dis¬
foregoing
Singer has had
century's head start on
of
business planning,
a
kind
spinster, the African native,
J;
Undervalued Assets
for which it is possible to obtain1 Hong Kong tailor and wife of an It owns a
70% interest in Thurso ;
There
are : 4 500 000
million
weekly clearings will "be 10.5% ". Australian sheepherder have for Pulp and Paper, Ltd.,; a Quebec shares of
Singer Common outdecades relied on Singer for
above those of the
corresponding
<.the sulphate mill. Finally, at the 1958; standing with a book value in the'
week last year.' Our
preliminary making and repair, of clothing,-year end,.it had. book assets,,of order of $70 per share;'TheTe is'
totals -stand'» aty $29,210,698,390 ■ and;to keep them in stitches. For ; $445 million of which net working: further believed to be a sizeable
109 years the name of Singer has;
capital alone amounted to ,$240
against
$26,440,719,661
for
the;
to
expenditures to do likewise. Thus,
may
of the
hedge
on
for
industrial
V.J:.,^revitalizes its earning
rp.^
-
Saturday, Jan. 9, clearings'-
their
prosperity,
there is always a distinct possi¬
bility that optimism will snowball,
causing inventory accumulation,
capital spending, v and consumer
the
that
oldest
our
with"
based ; upon
telegraphic advices
from the chief cities of the
coun¬
ex¬
generated by a rising business
trend playing, against conditions
any
,
of
will
Preliminary figures
by
the
"Chronicle,"
this
pressure
week
ago.
users
some
One
increase compared
an
year
By Dr. Ira U. Cobleigh, Enterprise Economist
Week
Bank clearings this
;
be
"In
1959
prices, steel
interest rates which will naturally
of monetary
is most attractive.
Clearings Up 10.5%
Above
5
countries where the cost of labor
pro¬
■
this
yields in recent years has been the
will
reluctance of inflation-wary
in-,
to
been
:
about
larly for longer-term debt. Cer¬
tainly one factor tending to raise
interest
rates
and
debt-security
vestors
generally along
have
>
in¬
wage
ably
'
which
jected."
creases
*
moves
lines
(157)
♦
data
processing^
technologies^
Singer
Mfg.
>
It : owns
Co.,Ltd.
in
'&V2 E. Main Street
Avenue
Lock
PLi..field, N. J.
in
and
205 Park
1910
\
Li
f
48
Hanover, Pa.
Haven, Pa.
Our 50th Year
Frederick-Street
►
1960
6
The Commercial and
(158)
,
.
Thursday, January 14, 1960
Stuart & Company- slacks off considerably f o 1- 800,000 Public
Housing AuKuhn, Loeb & Company and lowing this present week's thority bonds for Feb.
9, I960
W> H. Morton & Company. hectic pace. The largest sale and
$10,000,000 Washington
The New York Powe r Au¬ scheduled is $28,089,000 State Suburban
Sanitary -
' i
MACKEY
D.
DONALD
.
Haisey,
TAX-EXEMPT BOND MARKET
BY
Financial Chronicle
District,
Washington motor vehicle Maryland bondk also on the
and capital expendi- 9th.
This volume does not
of
thority -has stated ; that, no
long-term financing
further
revenue
will be done this
ture revenue bonds for
year.
place any undue pressure on
the period of the last week,
On Monday the City and Wednesday, Jan. 20. On the the Municipal Bond
market, although under mod- with several important large
Market,
same
day the State of Louisi>'
r
erately heavy new issue pres- new issues in the market, this County of San Francisco, Cal¬
ana will sell
$15,000,000 highsure, reversed the easy tend- total
/
The Year's Prospect
was
further reduced, ifornia awarded ; $13,600,000
serial bonds to the Bank/ of way bonds and North CaroHowever, it seems likely
ency that had prevailed and Currently it is only $231,100,lina will sell $11,106,000 that the volume of
state and
gained slightly during the 500. One week ago the total America-First National City
capital
improvement bonds, municipal financing will be
Bank-Blyth
&
Company-Leh¬
past week. The Commercial was $280,392,500. One month
The state and municipal bond
Financial
and
Chronicle
the total was $343,563,Municipal Bond 802. This has been a remarkIndex stands at 3.661% today able performance, despite the
(Jan. 13) while a week ago it fact that new issue volume
was
3.68%
This indicates a was relatively light during
dollar
gain of about one- that period. The simple exquarter of a point in the gen- planation lies in the higher
eral average.
yield level and its broadening
State
ago
and
.
4
■
_
_
effect
'
_.
.
Renewed Buying Interest
on
the market for tax-
exempt bonds.
Rip¬ Both of these issues are genThe era 1 obligations. $11,975,00u
bonds were scaled to yield Detroit,
Michigan bonds
3.60% in 1979. About $4,000,- scheduled for Jan. 19% 1960
000 remainsTn account at this, completes the important new
Brothers-Harriman
man
ley /& Company
" group.
reached
New issues announced for sale
,
point,
have
individual
bonds. The term bonds bear
in
February
a
are
beginning to do better
$102,- this respect.
include
,
in
,•
Larger Issues Scheduled For Sale
;
In
the
following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.
for 1983
and 1984 maturities.
Information, where available, includes name of borrower,
due in About half of the issue has amount
of issue, maturity scale,! and hour at which bids
2006. The
offering, at par, been sold out of account.
will be opened.
/
//
was
favorably received by all / Another
important under¬
types of investors and a small
January 14 (Thursday)
writing done this week in¬ Passaic
County, Manchester Repremium was subsequently volved the
$23,121,000 State
gional High Sch. Dist'., N. J
2,750,000
1960-1983
8:00 p.m.
bid for the bonds. The $24,of Maryland serial bonds
pur¬ South Tahoe Public Utility Dist.,
000.000 serial bonds maturing
California
chased by Chase Manhattan
1,250,000
1962-1989
8:00 p.m.
from 1965 to 1979 were priced Bank-Bankers Trust
Com¬
January 15 (Friday)
to yield from 3.50% to 4%
pany-First National City Bank Howland Township Local School
and upon initial reoffering all
and Haisey, Stuart & Com¬
District, Ohio
1,775,000
1961-1984
3:00 p.m.
bonds were sold for Group ac1,550,000
1961-1998
10:00 a.m,
pany and others. These 33/s% University of Detroit——
low
new
a
too
..»
...
before, when the
market
take this yplume without
much
difficulty, excepting
during periods when the fiissue bidding for next week,
writing.
nancing, rather, than being
.The Calendar for the bal- well planned and j
On the same day Seattle,
carefully
ance of
January is unusually timed, is cluttered up in a
Washington sold $11,800,000
of water revenue serial bonds light/ for this time of year, brief period. Issuers,
however,
to a group
managed by Leh¬
this reversal
man
Brothers and including
would seem insignificant, it ;
Recent New Offerings
Phelps, Fenn & * Companyindicates an important change V On
Tuesday, the New York Merrill Lynch, Pierce, Fenner
that has been gradually gen- state Power
Authority: sold & Smith and Stone & Webster
erating during the months via negotiation $120,000,000 Securities. This
high grade is¬
past. Since last June, and to serial and term revenue sue was scaled to
yield 3.80%
some extent
Although
greater during 1960 than ever
before. The market/ should
4%%
investors
been
and
coupon
are
:
growing in numbers. With good grade bonds
yielding from 3Vi to 4Vfc%,
«
-
.
•
individuals
have
become
in-
creasingly interested.
_
During the holiday period,
helped by this large new segof investors, the dealer
ment
commitments,
as
measured
by
the "Blue List" total of state
count. The
purchasing group bonds are scaled to
yield
municipal holdings, was of dealers was headed by
3.30% for 1974 and 1975 ma¬
reduced substantially. During Dillon, Read &
Company- turities. This
top grade state
MARKET ON REPRESENTATIVE SERIAL ISSUES
offering has been about half
and
Kate
Maturity
Bid
Asked
sold.
'
.v
,
California
(State)—
Connecticut (State)
New Jersey Highway Auth., Gtd.—
New York (State)
—
v
3^%
3%%
1978-1980
1980-1982
3.55%
3.40%
3%
1978-1980
3.90%
3.75%
3%
1978-1979
3.85% ~3.70%
Columbus,
trict
4.15%
4.00%
Another
portance
Ohio
3%%
1974-1975
3.30%
3.15%
1978-1979
3.30%
3.20%
3%%'
1977-1980
1978-1980
3.50%
3.35%
Wednesday (1/13/60).
4.10%
3.90%
high
3%%
3V2%
3%%
3V4%
1980
3.90%
3.70%
from
3.65%
3.50%
awarded
4.05%
3.85%
1977
4.05%
3.90%
3%
1980
4.30%
4.20%
New Orleans. La.
Y.)
3%%
_
—
—
—
Chicago, 111.
New York
City, N. Y
....
January 13, 1960
DOLLAR
BOND
QUOTES
—
AND
Chelan Co., Wash.
5% 7-1-2013
whole)
1-1-1978
Price
Price
100
1-1-1974
107
1043J,
7-1-1962
90
Co., Wash. PUD No. 2
£*$$81
Toll Highway
..
»**»•••»»»•
5-M966
.
.
.
M-»«
Toll Highway
3'/2% 1-1-1994
Jacksonville, Fla. Exp.
41/4% 7-1-1992..
3.40%
7-1-1994
Mackinac Bridge Authority
4% 1-1-1994
Maine Turnpike
Authority
' t
+ 1/,
4 41%
-1
4.55%
93%
(«)
4.20%
Company
$100,000,000 State of Califor¬
nia, veterans and school bonds
+ 1/2
5,50%
10434
yo
+1
537%
1-1-1962
103
85i/2
+ 1/4
+
°
7-1-1967
103
102V2
(»)
10-1-1962
103
731/4
+ V,
7-1-1960
104
1-1-1964
108
'
4 32%
4
4 11%
5 01%
2
91
387%
*
/2
<
•>
A
"•
average
Bankers
♦M"'4
A.ithoriiV---'
m-lw104
^
»«*
4.»*
%
+>
4.52%,
7'1'"58
3.78%.
•
103
i
Ne^vlkVhS,Author^
3.10%
7-1-1994
Ohio
Turnpike Authority
3'/4% 6-1-1992....
Pennsylvania Turnpike Authority
.
mZVpJSr+TU,npike
Trf-Dam Proiect^CaiifV '"'
vffiwV&V
-•••
K-"1"-"""
,3,/"
,'W97° '
103
W*
7-1-1960
1031A
ax
6-1-1959
1(K
oai/
+««•
+ *
^
"
1,3
7'WH}
M-W59
81
"V2
,
«•»*
t
"H.
6-M'5'
<•«*.
104
8*6,
^
^
a
■
.
4.02,4 i
,
"H/2
4,02%.
W.
4.15%
.+ %
4.78%
3.97%
+V4
.
3.81%
Trust
awarded
was
interest
net
-
the
on an
cost
of
4.0249%. This is the issue
was
was
originally sched¬
for sale Dec. 9, 1959 and
postponed. While the
lier
bid
was
never
actually
L_
the
State
would have
that
at
time
No.
offering,
yield
par
for
priced
a
4%
out
to
coupon,
should be well received
by in¬
vestors
as
group
orders
are
St.
Immediate Calendar Light
The New Issue Calendar for
the
coming week (1/18-22/60)
a.m.
9:00 a.m.
/
8:00 p.m.
1961-1985
7:30 p.m.
7,400,000
5,775,000
1961-1985
' 1,000,000
1961-1980
/,
10:00 a.m.
:
1961-1985
'•/':/
4,495,000
10:00 a.m.
7:30 p.m.
,
; *
:
;
' 1:00
1960-1988
Clair
p.m.
County,: School District
No. 118, 111
Topeka School District, Kan.__
2,673,000
1961-1979
2,000,000
1961-1980
10:00 a.m.
White Plains City Sch.
Dist., N. Y.
1,995,000
1960-1967
11:00 a.m.
1,000,000
1961-1980
8:00 p.m.
East
%
111.—^
_
(State
1961-1980
1,350,000
1,100,000
1961-1983
of)_
1961-1982
Noon
15,000,000
1961-1984
11:00 a.m.
6,000,000
1961-1985
11,106,000
-1961-1979
2:00p.m.
11:00 a.m.
1961-1990
10:00 a.m.
10,000,000
1962-1985
10:00 a.m.
1,450,000
18,000,000
*1967-1977
8:00 p.m.
10:30 a.m.
10,089,000
1961-1979
10:30 a.m.
4,360,000
1960-1985
8:00 p.m.
.Mansfield
City School Dist., Ohio
Carolina (State of)
Ramsey Co., Minn.____
Sacramento
City Unified School
North
District,
7:30 p.m.
3,418,000
_____
Dist., Ohio—
Muskingum Sch. Dist., Ohio—
Louisiana
-
,
January 20 (Wednesday)
Calif.
South St. Paul Special School Dist.
No. 6, Minn
Washington
(State
of)___^
Washington
(State
of)
^___
1,450,000
2:00 p.m.
Noon
/
y
—
;
j1
Wayne Community School Dist.,
Michigan
—^
.
.Jeffersonville
Indiana
^
janUary 21 (Thursday) —
School
-
Bldg.
——
—
Corp.,
1963-1988
1:30 p.m.
1,550,000
1964-1985
7:30 p.m.
7,000,000
1963-1980
1,000,000
1963-1985
8:00 p.m.
1970-1990
11:00 a.m.
1961-1986
11:00 a.m.
1,525,000
-
January 25 (Monday)
Jurupa Community Services Dist.,
California
Minneapolis-St. Paul Metropolitan
Airports
Rosemount
No.
Commission, Minn
v
Noon
Independent Sch. Dist.
196, Minn.—
already reported to be sub¬
stantial.
11:00
2,695,000 .1961-1988
21, N. Y.—_
considerably less
than the present interest cost.
The
1961-1988
1,750,000
Oyster Bay Union Free Sch. Dist.
re¬
cost
8:00 p.m.
1:30 p.m.
1961-1980
,
—_____
Fullerton, Calif.
_,
reliably
was
ported that the interest
to
ear¬
■/%%
1963-1990 '
1,925,000 -1962-1980
County, Pa.___
Mich.
________
which
coo-
,
the
maturing 1961 to 1985,
uled
+iy,
rria
-
and
a.m.
" :,y V'/*
8:00 p.m.
'
1963-1990
1,500,000
Dist., Calif—
— _____
103
73
Detroit,
merged syndicate managed
Bloomfield, N. J
jointly by the Bank of Amer¬ Defiance City Sch.
ica
1
1,360,000
4,000,000
Caldwell-West Caldwell Sch. Dist.,
:
New Jersey
a
4.04%
74
Arcadia Unified Sch.
Winnetka,
+U/4
10:00
January 19 (Tuesday)
As this article
goes to press,
submitted, it
Ma^lsmi'port
half the
Californias Going Well
4.64%
JW%
,
than
sold.
851/4
Kansas
Turnpike Authority
3^8% 10-1-1994.. ij.
Kentucky Turnpike Authority
more
were
Maturity
1-1-1978
Indiana
Company
First National City
New York. Upon re-
103i/2
Highway
434% 1-1-1998
.Trust
Yield to
1/4
-
106
103i/2
4-1-1962
Illinois
the
group
,,
/
_____
Detroit, Mich.
a
York
bonds
Net Changes
from Prev. Week
Authority
31/4% 4-1-1995
Toll
Offering
to
offering
approximate)
to
King County, Ronald Sewer Dist.,
Washington
Sheboygan, Wis.—.___
University of Maryland
.-/;
New
INFORMATION
Call
This
maturing
1983, was
1962-1999
1,000,000
on
loan,
1961
.
V
School District No. 273, Minn.—_
Cumberland
and
3.661%
sold :
1,382,000
January 18 (Monday)
:%■:%./
headed
jointly by the Chemical Bank
/-
4% 7-1-1995
Illinois
>y
PUD No. 1
Chicago-0'Hare Airport
43i»% 1-1-1999
Chicago Reg. Port
Florida Turnpike
a
=
RELATED
are
First Callable Date
(as
1979
grade
Bank of
(Prices and yields
Issue—
Index
1980
which
Dis¬
of Nevada—
Edina-Morningside Independent
.
im¬
School
3V8%
bonds
of
$8,000,000
was
Vermont (State)
New Housing Auth. (N. Y.; N.
Los Angeles, Calif.——.--
Baltimore, Md.
Cincinnati, Ohio.
.
issue
new
Pennsylvania (State)-—
Grant
:
:
-
January 16 (Saturday)
University
January 26 (Tuesday)
Boston
Metropolitan Dist., Mass...
Burlington, N. C._—
Clinton Prairie School
Building
Corporation, Ind.
County, Tenn.
Knox
Pensacola, Fla.
2,974,000
1,275,000
_______
1,680,000
1963-1991
2:00 p.m.
2,000,000 :
1961-1975
11:00 a.m.
1,500,000
1961-1980
9:00 a.m,,
-
Volume. 191 ...Number o916
.
.
.
The
Commercial
and Financial
Tins announcement
is
not
Chronicle
(159)
ojjer oj securities jor sale
an
or a
solicitation oj
ojjer to buy securities.
an
New Issue
January 15, 1960
$120,000,000
Power
Authority of the State of New York
General Revenue Bonds, Series G
"■
.Mx.:-.-
.
i.-v.-
;r:v
T;
•
Interest exempt, in the opinion of Messrs.
Hanrahan, McGovern
,
&
Hawkins, Delafield & Wood and of Messrs. Sullivan, Donovan,
bond counsel to the Authority and to the Underwriters,
Lane,
respectively, under the existing
.
.i
'ill..
statute and court decisions from Federal income
"f.'taxes, and under existing statutes from New York State income tax.
U./i
■>.
•-
A■
-A'
,
:
**
$96,000,000 4%% Bonds, due January 1,2006
Price 100%
$ 24,000,000 Serial Bonds
Principal
Due
Interest
Amount
January 1
Rate
$1,100,000
1965
4.00%
1,260,000
1966
4.00
1,400,000
1967
4.00
1,365,000
1968
4.00
1,425,000
1,470,000
1969
4.00
1970
3.75
1,530,000
1971
3.75
1,590,000
1972
3.75
Price
or
Yield
3.50%
3.60%
3.65%
3.70%
3.75%
;
are
3.80%
3.85%
subject to redemption,
as
set
as a
January 1
Interest
Price
Rate
1973
or
Yield
3.75%.
3.90%
1,710,000
1974
3.75
3.90%
1,770,000
1975
4.00
3.95%
1,830,000
1976
4.00
3.95%
1,900,000
1977
4.00
100
1,960,000
1978
4.00
100
2,040,000
1979
4.00
100
Accrued interest from January 1, 1960 is to
The Bonds
Due
Amount
$1,650,000 '
100
~
"*
Principal
be added to the prices.
or in part, at any time on and after January 1, 1970,
Authority's Official Statement.
whole
forth in the
\
...
s
Copies oj the Circular dated January 12, 1160, which contains jurlher injormalion, including the OJJictal Statement oj
the Authority, may be obtained jrom such oj the undersigned as are registered dealers in
securities in this State. The undersigned
Harriman
Goldman, Sachs & Co.
Glore, Forgan & C<h
*
Incorporated
A. C.
Stone & Webster Securities
Incorporated
W. C. Langley & Co.
American Securities Corporation
Clark Dodge & Co.
A. G. Becker & Co.
«.*
Dick & Merle-Smith
-
Hemphill, Noyes & Co.
Ira Haupt & Co.
F. S. Smithers & Co. Wertheini & Co.
Adams McEntee & Co. Inc.
,
Equitable Securities Corporation
F. S. Moseley & Co.
Carl M. Loeb, Rhoades & Co.
Lee Higginson Corporation
L. F. Rothschild & Co.
.
White, Weld & Co.
Shields & Company
Estabrook & Co.
Paine,Webber, Jackson & Curtis
Incorporated
Ingen & Co. Inc.
C. J. Devine & Co.
Blair
& Co.
Incorporated
Bear, Stearns & Co.
Hornblower & Weeks
*
•'
Reynolds & Co.
Allen & Company
*
R. W. Pressprich & Co.
.
V
Phelps, Fenn & Co.
.
Ladenburg, Thalmann & Co.
-
i
■
.
B.
Van
B. J.
J. Van
Corporation
Alex. Brown & Sons
Allyn and Company
'
;
Merrill Lynch, Pierce, Fenner & Smith
Lehman Brothers
Smith, Barney & Co.
The First Boston Corporation
Kidder, Peabody & Co.
Ripley & Co.
Incorporated
Lazard Freres & Co.
Incorporated
Eastman Dillon, Union Securities & Co.
Drexel & Co.
Blyth & Co., Inc.
W. H. Morton & Co.
Kuhn, Loeb & Co.
Halsey, Stuart & Co. Inc.
Dillon, Read & Co. Inc.
the Underwriters.
arc among
Dean Witter & Co. Wood, Struthers & Co.
Bacon, Stevenson & Co.
Barr Brothers & Co.
R. S. Dickson
& Company i Dominick & Dominick
Incorporated
Francis I. duPont & Co.
Bache & Co.
.
Eldredee & Co. Inc."
®
W. E Hutton & Co.
Roosevelt & Cross
Weeden & Co.
G. H. Walker & Co.
Schoellkopf, Hutton & Pomeroy, Inc.
Hallgarten & Co.
Riter & Co.
Wm. E. Pollock & Co., Inc.
A. M. Kidder & Co., Inc.
Kean, Taylor & Co.
Gregory & Sons
Geo. B. Gibbons
& Company
Incorporated
First of Michigan Corporation
Chas. E.
Incorporated
Weigold & Co.
Incorporated
Incorporated
Bacon, Whipple & Co.
John W. Clarke & Co.
J.Barth&Co.
J. C. Bradford & Co.
William Blair & Company
Incorporated
The Illinois
Hirsch & Co.
Coffin & Burr
.
Incorporated
The
Robinson-Humphrey Company, Inc.
Spencer Trask & Co.
<
Company
Tucker, Anthony & R. L. Day
Tripp & Co., Inc.
i
.
t
;,i
■
J.
McDonald &
Company
Incorporated
Shearson, Hammill & Co.
Schwabacher & Co.
Braun, Bosworth & Co.
Stifel, Nicolaus & Company
Incorporated
Van
"
Alstyne, Noel & Co.
7
8
(160)
Co.
-DEALER-BROKER
5, N. Y.
Memorandum
&
Pont
Co.,
economic survey
C.
A.
View—Monthly Invest¬
15 Broad Street, New York
Also available in current
pany,
used
Averages
counter
Foreign Letter.
Averages,
Canadian
Business
market
Bank
Nova
Review
—
Scotia,
—
Toronto,
Electrical
Equipment
* Hutton
St
—
;
Casualty Insurance Stocks
15
—
Broad
N.Y.
For
E. F.
Hemphill, Noyes &
St., New York 5,
;'.;V fV; >
V.
.
Capital Gains in 1960—Analy¬
in
sis
"ABC
current
Investment
Letter"—With
particular
refer¬
American Cyanamid Co.,
to
ence
American
Metal
Climax,
Avon
Products, Inc., Borg-Warner Corp.,
Diebold,
Inc., Lockeed Aircraft,
McLouth Steel Corp., Philco
Standard
T
Packaging
and
Manufacturing
o w n e
Corp.,
Yale
Co.
&
—
over-the-
stocks
in
used
Quotation
Bureau
both as to yield and
performance
period
year
over
National
—»
Inc..
46
4, N. Y.
Preferred
Stocks
20-
a
Quotation
Front
New York
Street,
-Vr
sues
Co., 15 Broad
5, N. Y.
—
Street, New
York
Stocks—Analysis of out¬
look in 1960—A. M. Kidder &
Co.,
Inc.,
Wall
1
Street, New York 5,
N. Y. Also available is
review of
Bank
and
Elec¬
Thermit
&
Pittsburgh Coke
and
& Chemical.
York
Co., 45 Wall Street.
5, N. Y.
certain groups of securities which
Also
appear
available
forecast for
is
the
review
a
Real
and
Estate Mar¬
Selections
Co.,
for
attractive
2
N.
Japanese Stock Market—Study of
orandum
changes in postwar years—In
Electronics
cur¬
of "Nomura's Investors
Y.
Also
of
Goodbody
—
Broadway,
ket.
rent issue
1960—Review
New
available
&
York
is
4,
mem¬
a
General Telephone &
on
Corp.
available is
for
review
a
Plant
and
Equipment Expenditures in Japan
for
1959
and, brief
analyses of
Mitsubishi Heavy Industries, Nip¬
pon Flour Mills Co., Iwaki Cement
Co.
and
a
survey
of
the
Steel
Industry.
Japanese
mation
Stocks—Current
—
Yamaichi
Infor¬
Securities
Company of New York, Inc., Ill
Broadway,
New
York
7, New
York.
Market
issues
fred
—
in
Analysis
various
of
Steel's
Jan.
New
issue
of
in
Birmingham
Limited
Analysis
—
Burlington
Also in
the
same
discussion of the Stock
a
New York
—
in
1960.
Understanding
tions
—
Put
Herbert
Call
&
Filer
Op¬
Crown
—
Publishers.
Dept. A-7, 419 Park
Avenue, South, New York 16,
N.
Y.—$3.00
(ten day free ex¬
amination).
*
Alminex
*
Limited
♦
—
Inc.
—
America
of
Analysis—Bache
&
Corporation
Analysis
—
Vir¬
Auchincloss,
—
Report
—
Fibre
Co.,
Raytheon
Ritter
Co.,
S.
S.
Manufacturing
port—Reynolds & Co., 120 Broad¬
way,
New York 5, N. Y. Also
Pneumatic
Tool,
Republic
Controls.
Pierce,
Fenner
Co.
Dixon
Chemical Industries, Inc.—
Report—Midland
Stores, Inc.
Securities
Co.,
Inc., 1016 Baltimore Avenue, Kan¬
City 5, Mo. Also available are
analyses of Kansas City Public
Service
Company
and
Cascade
sas
Dura
Gas.
Corp.
—
way,
1960—Brochure—
New
Perspective
Keynes—Re¬
port—Saunders Cameron Limited,
55 Yonge
Street, Toronto 1, Ont.,
on
Canada.
showing
son
Report—Thomson & McKinnon, 2
Broadway, New York 4, N. Y.
American Telephone & Telegraph
Data
Schirmer, Atherton &
—
—
Co., 50 Congress Street, Boston 9,
Mass.
Also
Madison
Over-the-Counter Index
an
between
—
Folder
up-to-date compari¬
the listed industrial
Foundry—
available
Fund,
Manufacturing
Inc.,
&
are
data
on
Ludlow
Sales
Co.
and
Edgcomb Steel of New England.
—
Sutro Bros. &
New
York
—
Co., 120 Broadway,
5, N. Y. Also available
on.
H^vesfer
national
.
Memorandum
memoranda
are
Autolite
Green,
Ellis
90
Report
Broad
—
&
Analvsis
—
Corporation
Darius'" Incorporated,
Street, New York 4,-
Firm
Trading Markets in.
&
Co., 48
available
Dana
Co.
Company
Lime
N. Y.
Company
memoranda
Boston
Ero
on
Manufac¬
New
figures
Public
on
Stocks.
Oklahoma
Cement
5, N.' Y."
"
Line
York
of
Continental
&
Iron—Memoran¬
Pont, Homsey & Com¬
Milk Street, Boston 9,
31
randa
on
available
are
and
Allen
Industries.
Voi
Shan
Industries
Pacific
are
Copper
—
Report
JOHN
FREE
Planning
from
offices
Wexford
Road
under,
5600
firm
Professional
of
name
at
the
Bought
Planning
Centers,
Company.,
Intermountain
HEMPSTEAD, N. Y.—Weinberg,
Ost & Co., has been formed with
Butcher
—
Walnut
Express—
&
Street,
//,.
.
■:
Weinberg, Ost Opens
offices
Sherrerd,
to
Philadelphia
;
at
engage
Windsor
277
in
Parkway
securities business.
a
Partners
Ford
&
dum—J.
Street,
A,
are
Sidney B. Weinberg
Harvey J. Ost.
and
Ltd.—Memoran¬
Hogle & Co., 40 Wall
New
York
5,
N.
Auchincloss
Y.
Pepsi-Cola
Branch
FALLS
CHURCH, Va.—Auchin¬
Company—Analysis—
H'ayden, Stone & Co., 25 Broad4 closs,
Parker
&
Redpath
has
Street, New York 4, N. Y., Also opened a branch office at 450
Broad
available are memoranda on Mag- ; West
Street,
under
the
navox and ABC
management
of
Lawrence
M.
Vending.
Proctor.
Philco
Corporation
Parrish
&
Co., 40
5, N. Y. ~
:'v
-
\
—
Analysis
Wall
,
•
—
Street,
:
Now Central N. Y.
.
.
Protestant Deaconess Hospital As¬
sociation of Evansville, Ind.—Re¬
SYRACUSE, N. "V'S;.— The firm
name of Lifeco, Inc. of East Syra¬
cuse, has been changed to Central
N. Y. Estate Planning, Inc.,, and'
the firm
is
now
doing business
from 2407 James Street, Syracuse.
Corporation—Analysis—F.
Primary Markets In
WALES
SUMMERS
STATE
—
&
business
Banks, Brokers and Dealers
OF
memo¬
Castings
Steel
Buckeye
Forms Prof.
Inc.—Analysis—
Binder
&
Company,' Inc.,
541:
South Spring Street, Los Angeles
13, Calif.. 1
:v.;
Review
—
BALTIMORE, Md.—Walter lin¬
ger
is ) engaging in a securities
review of the Market.
a
Memorandum
Co., 61 Broadway,
Co., Inc., 39 = South La
Salle Street, Chicago 3, 111.
and Steel Inc. Rail Stocks for I960
Pacific
—
N. Y.
6,
Also
Leason
'
5, N. Y. Also available
—
&
Mould
Mass.
—
reviews
Analysis
—
—
Inc.
Analysis — H.
Co., 72 Wall Street, New
Hentz &
York
pany,
Oklahoma Mississippi River Prod¬
ucts
Car
Plywood
dum—du
Utility
Company
S.
Valley
Analysis—Stanley R. Ketcham &
Co., Inc., 76 " Beaver Street, New
York
McGregor-Doniger.
W. E. Hutton
10,Mass.
Rogers
STEEL
J.
—
Broadway,
4, N. Y. Also available
Avenue, New York 17, N. Y.
—
...
and
Distribution
Memorandum
—
—
port—B. C. Ziegler and Company,
reports
on
Building,
West
Bend,
Monsanto .Security
Wis.
Outboard Ma¬
'
For
Corp.—Memoran¬
Milwaukee
New York
Grey¬
are
Corporation,
Chemical
King
R. Williston & Beane, 2
are
U.
New York
Trailer—Report—Eisele
& King, Libaire, Stout &
Co., 50
Broadway, New York 5. N. Y.
Transmission, Production
,
Also
are
Biscuit
Fruehauf
rine.
CO Natural Gas Companies
&
Street, New York 5, N. Y.
Also
(a) Operating Utilities
Pressnrich
of
Development
.
England
2, Pa.
Foremost Dairies, Inc.—Memoran¬
Wall
analysis
an
Petroleum
Oil
Company.
Co.,
207
Michigan Street, Milwaukee
Analysis—Dayton Haigney & Co.,
Incorporated, 74 Federal Street,
Union
Anderson,- 61
same
Tank
and
Funding
W.
is
the
Union
1500
N. Y.
dum—R.
In
Universal
Weingarten & Company, 5$1 Fifth
Inter¬
—
-
Y.
on
120 Broadway New York 5,
Hupp
Broadway New York 6. N. Y.
Electronics
available
Loeb,
Street,
Analysis—Laird, Bissell & Meeds,
Penick
Electric
N.
M.
Wall
42
data
Tilo Roofing
Carbide.
—
American Telephone & Telegraph
New York 6, N. Y.
Eagle-Picher
En¬
2, Wis.
Wall
Y.
5,
dum—The
Van
circular
Co.,
,
Memorandum
American
&
United
on
and
and
^
—
N.
5,
same
N. Y. Also available
Company, Ltd.
&
Brake
White
52
are
Thermo
N. Y. Also available are compara¬
Inc., 70 Pine Street, New
York 5, N..Y. Also available are
memoranda on Westinghouse Air
and
Co.,
Bucyrus Erie, and
Corp.
Corp.—Memorandum—Mer-, Common
Lynch,
&
York
—
turing
tive
rill
York
Also
—-
&
Trinidad
—
A. Saxton & Co.,
Inc., 52 Wall Street, New York 5,
>
Bacon, Stevenson & Co.. 39 Broad¬
Machine
Noel
Memorandum
Co., 65 Broadway,
—
&
Products and Armour &
—Analysis—G.
Steel
Instruments ' &
and
Wall
New Jersey Natural Gas Company
Chicago
on
New
review
Pacific
Data
—
—
Spiegel—Review—Carl
Rhoades
—
Review
Federal
Ward
New
on
New
gested portfolios.
reports
Corporation
of
Smith
memorandum
a
East
National
sug¬
Bay Street, Toronto, Ont., Canada.
Shearson, Hammill & Co., 14 Wall
Street, New York 5, N. Y. "
data
Columbian Carbon Company—Re¬
are
review
a
hound
Dental
some
—■
& Co., Ill Broadway,
6, N. Y. Also available
available in the
Company,
White
and
Haupt
Street,
Vulcanized
National
is
f
&
—
Irving
Exchange
40
gineering & Foundry."
" *
Chemical
Alstyne,
Upham & Co., 120 Broadway, New
York 5, N. Y. Also available are
on
Candee
Report
—
Company,
New York 6,
Wall
Analysis
—
6, N. Y.
Montgomery
Harris,
—
report
Inc.,
Inc.
Theatre
—
&
O.
A.
Electric.
Redpath, 1705 H Street,
W., Washington 5, D. C.
Radio
York
New York
Parker &
N.
Trucks,
Study
is
of
Moderate
Reinvestment
4, N. Y.
Fahnestock
Fund,
Magna
Ira
Wall
36
Co.,
—
Street, New York 5, N. Y.
ginia
'
Monsanto
Corp.
Gairdner & Compay, Limited, 320
Suggestions for
York
Place New York 5, N. Y.
& Company,
Street,
San
Co., 44
Street, New York 5,~N. Y.
Transportation.
Chesapeake
Lazard
New
report on Air¬
Manufacturing
and
Air
Celanese
Hutton
F.
Schweickart & Co., 29 Broadway,
—
Also available is a
Natural
Bulletin
New
Inc.—Memoran¬
Y.'
Memorandum—T.
Co., 25 Broad Street
—
Wall
44
Street, New York 5, N. Y.
■
Market
40
Fund Inc.—Annual
Mack
Industries,
Broeck & Co., 55
Liberty Street, New York 5, N. Y.
Priced
—
Analysis—Joseph Walker & Sons,
120 Broadway, New York 5, N. Y.
Smith
issue is
Lazard
Reproducers
New York 5, N. Y.
New York 5, N. Y.—20c per
copy;
$1.50 per year.
Sound
Products,
Montgomery
Francisco 4, Calif.
Hanseatic i Corporation 120 Broad¬
Dana
"The
Co.,
160
Birmingham, Ala.
Exchange"—
Exchange Magazine, 11 Wall St.,
selected
industries—Al¬
L. Vanden
Era—Discussion
Savings Corp.,
Street,
Twenty-first
Corporation,
outlook
L. Watson &
Bulletin
—
Co.,
—
dum—E.
North
404
Street, New York 5, N. Y.
Also
Harsco
&
&
Broadway, New York 5, N.
—First Investment
Beacon"—Nomura
the
120
Siegler Corp.
Corporation
,
Company-
Report—Montgomery, Scott
—
&
Darlington
■
Scovill Manufacturing
Co.,
1529
Walnut
Street, Philadelphia 2, Pa.
Hill,
Memo¬
—
Wasserman
Inc.; 70 Pine .Street, New..
Weis
Ltd., 61
of
—
Stix
5, N. Y.
Hexel
available
N. Y.
Bulletin
77
Street,
Memorandum
—
Wra,
Barnwell Offshore Inc.—Brochure
Sixty Stocks for Sixty—Review—
Stanley Heller & Co., 30 Pine
Securities Co.,
Broadway, New York 6,
—
Corp.
York
Company, Inc.,
Manufacturing
—
and Co.,
Rogers
William
5, N. Y.
Boenning
Russell
randum
Corpora¬
L.
15
York
Harsco
Realty
&
Street, Boston 10. Mass.
Siegler. Corp.
reports
Amott, Baker & Co., Incorporated,
150 Broadway, New York 38, N. Y.
Inc.
Report?—Louis
Putnam
Franklin
Street, New York 5, N. Y.
Collins
Outlook—Analysis—G.
Walker &
New
Har-
on
Hoffman
Metal
Securities
H.
data
Chemical,
tronics,
year end
leading New York City
Stocks
shaw
a
du
1958.
vs.
L.
Co.,
Salle Street, Chicago 3, 111.
craft
Railroad
of 1959
American
tion—
New
Allyn & Co., 122 South La
way,-
Principal is¬
offered
during 1959—East¬
Dillon, Union Securities &
man
Y.
Survey
Qo,
—
Co., 61 Broadway, New
York 6. N.
Fire &
Elec¬
and
Survey
—
Dow-Jones
35
National
Bureau.
tronics in 1960
the
the
industrial
the
of
in
and
5, N. Y.
Canada.
'k
stocks
Francis I.
—
Thursday, January 14, 1960
.
'
Great
Company,
1
Barber-Greene,
ment Letter—Burnham and Com¬
42
Wall Street, New
York 5, N. Y. Also available is an
WILL BE PLEASED
&
Ont, Canada.
—
Atlantic Coast Line and Seaboard
TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:
Burnham
Report
—
P.
McDermott &
Co.,
Broadway New York 4, N. Y.
—
THAT THE FIRMS MENTIONED
Company
.
Limited, 219 Bay Street, Toronto,
-
Peter
AND RECOMMENDATIONS
orandum—Moss,\ Lawson
New
Street,
.
Steel Wares, Ltd.—Mem¬
General
Shields &
—
Wall
44
Anaconda
INVESTMENT LITERATURE
UNDERSTOOD
Memorandum
—
Company,
York
IT IS
Financial Chronicle
The Commercial and
LTD.,
LTD.,
GEDULD
,
ADR
>
,
UNIVERSAL
ADR
CONTAINER
LTD., ADR
ANTHONY
Sold
POOL
Quoted
BARCIIRIS
Truster, Singer & Co.
Members
New York
74
Security Dealers Association
Trinity Place, New York 6, N. Y.
HAnover 2-2100
Hired L Vanden llrocck & To.
=
New York Stock
55
Exchange
LIBERTY
CONSTRUCTION
AMER. INT'L. BOWLING
MEMBERS
American Stock Exchange
STREET,
NEW
YORK
PLYMOUTH SECURITIES
5
•
Teletype NY 1-376; 377; 373
Tel.:
BE 3-8880
•
Teletype NY 1-4-686
Private Wire System to Canada
92
CORPORATION
LIBERTY
Dlflby 9-2910
STREET
•
•
•
N.Y. 6, N.Y.
Teletype N.Y. I-4530
191
Volume
Number 5916
The
.,
Commercial and Financial
Chronicle
term
What Role Should Canadian
Credit and Capital Play?
By J. E. Coyne,* Governor of the Bank of Canada
•,
Ottawa, Ontario, Canada
Lisj,
'
;;rV
Mr.
of
have
V.
and pursuing proper fiscal and other
ing spending
"cc
sure, be able to cooperate and
assist in such a development.
Vc
•
■
undesirable
■■
■
of
the
Canadian
has been the
capital
extent
to
our
other
o
m
growth should
maintained
basis without
and
violent fluc¬
banks.
developed
a
J.
level
stable
and
Coyne
should
alike
the maxi¬
that infla¬
deflationary
and
tionary
tenden¬
resisted
be
and
counteracted, and that in the furtherance of these
cial
goals, the finanof the
country
resources
should
and
be
soundly
possible.
employed
effectively as
the
Although
as
proper
credit poses many
of
of
use
problems, some
with
could
be
those
in
direct
by
on
effected
settlement
theory all credit
provided directly
by
In
immediately concerned, but
practice
economic
no
society
could
operations,
most
effectively and smoothly in
a
market
where
to
those
who
feel
best
prepared
to pay appropriate prices for it.
Canada, as a nation extending
over vast
distances and compris¬
ing many different geographical
make
of
use
it
and climatic
they
and
areas,
termediaries
obvious
tivities
as
wb'e
has been par-
surpluses
of
could
meet
be
the
upon
needs
•
"raises
coun-
available
of
•
...
.
Canada's
to
other
many
" *
.
which
in
by
arising
parts of the country.
v
ac-
trans-
parts of the
made
on
nation-
a
credit
savings
or
many different
try
arid
government
system
of
our
out
large
a
them to take
to
in
time
substantial
also
Capital
The
largest
And
fiscal
of
with
securities
chartered
banks
for
become quite familiar to CaWhat is perhaps not so
widely recognized is that
we also
have in Canada a well developed
nationwide capital market, par-
of
securities
all
we
who
take
must
of
the
issued
essential
an
efficient
en-
funds
choose
The
Bank
stantial
source
funds
of
for
the
capital market, but in addition the
retail market has been developed
to
the
point where it is more
broadly
based than
Country
I
know."
•
in any other
With
the
tre¬
need " for
on
its
own
of
develop-
Canada
for
operations, and
on
those of the Government and the
banking system, and so far as
sible on the operations of all
pospar-
tribution
Government
of
in
movements
interest
debt,
rates
and
statistics
day-to-day loans and holdings of
that
the
cultivation
real
their
disby
between
A
country
the
retail
market
has
been
healthy development and
as
source,
on
the
chartered
banks'
term
dian
working capital for Canabusinesses—including investdealers—and
ment
activity of in-
vestment dealers. I
think there is
little doubt that the financial ma-
a
certain
a
*
'
V.-av
■=:
This advertisement is neither
of offers to buy
any
an
offer to sell
nor a
solicitation
is made
of these securities. The offering
only by the Prospectus.
January 6th, 1960
NEW ISSUE
203,476 SHARES
an
LIFE INSURANCE COMPANY
OF FLORIDA
operations other
ernment of Canada are, of course,
mainly
in
or
so-called
the
This
which
STOCK
COMMON
part of1 our
was a
machinery
financial
money
market for short-term
securities.
($1.00 Par Value)
was
not well developed when the cen-
tral
existence 25
Since 1935 the Bank of
bank came into
years ago.
has
Canada
been
able
to
assist
participate in a number of
developments leading nip to the
and
other
than
to
Copies of the Prospectus
market which operates just
freely and smoothly as that in
any
in
country
most,
and
and
more
any
so
may
which is able
may
be obtained within
State only from the undersigned and others
as
lawfully offer these securities in such State.
adapt itself flexibly to chang-
those investment dealers
lr
§
* •.
who take
short-term
underlying
support of the Bank of Canada as
interest in
securities,
with
the
a
special
the lender
porary
have
as
seen
BOND
(though purely a tem-
lender) of last resort.
the
broader
SHARE
CORPORATION
1112 AINSLEY BUILDING
•
MIAMI, FLORIDA
market
Government
Treasury
&
We
development of a
for short-
bonds as well
Member:
bills, and in the last
quite striking development in the market for short-
res¬
ervoir of funds for personal loans,
fiscal agent for the Gov¬
market
little
heavily dependent om a
particularly
for
working capital funds where the
only source may be their banker.
Similarly, the chartered banks in
.
growing economy.
own
very
alternatives
one
Market
than
bor¬
are
be¬
for
out¬
Some
Government securities. The same > The banks have by their actions
release
includes
comprehensive and their pronouncements come
upon
which our future growth statistics of the chartered banks' more and more to assume the
will also depend to a significant lending operations and changes in status of national institutions with
degree. Borrowers such as prov- the ^ volume of bank deposits by a recognized social function or reinces, municipalities and corpora- categories for the week ending sponsibility. Considerations of this
tions, which succeed in providing eight days before. This is supple.....
> Continued
on page 28
of
very
concerned
are
11
the
requirement
and
The Bank's
term
This is pri-
different
funds.
however, have
choice
and
sources
lenders able
many
between
in the capital market. Canada have to a considerable deWith the cooperation of those gree • specialized
their
field
of
concerned we obtain and collate lending. Although they participate"
such information and each Thurs- as investors in the long-term capiday night we publish our "Weekly tal market by way of the purchase
Financial Statistics" covering, for of Government and corporate sethe week ending the day before, curities in the market and make
the
central
bank's
operations, insured housing mortgage loans,
changes in the total amount of their primary credit function has
Government of Canada debt, by been to provide (in addition ;to
categories, changes in the dis- other
banking services) short-
it
obvious
for
mar¬
ticipants
savings and
capital investment in this country,
is
lets
and
single
different
between
of
to
latest
Broadly Based Liquid Money
much
choose
to
a
borrowers able to
thriving capital market is
a
business corporations.
of
it,- which
their
affairs
extent
economic welfare
"
of
progress
cause
governments, local authorities and
marily the field
high-grade
confined to
and other savings instituincluding notably the life
insurance companies.
In Canada,
too, these institutions are a sub-
the market.
take the same
also
nadians.
tribution
largely
United
Govern-
tions,
We have seen
market for
treasury bills which begad before- rserve
through clearing arrange- the war, but really came into full
ments to provide some
degree of operation only after 1954 with the
inter-connection between other inauguration
by
the
chartered
purely local institutions in differ- banks of a system of day-to-day
ent parts of the
country. All this loans to assist in the financing of
respect
the
for
other
banks
in
borrower
ing circumstances.
national
banks
in
in
some
with many
re¬
the
the development of the
on _a._
ticularly
market
and
is
is
agent
ing.,their.. activities
has
ket
interest in the capital market that
as
chartered
operations to
ables them continuously to adjust
the
Canada,
provinces and consciously fashionThe
participants
its
or
because of its
as
thirdly,
—is to
about
re¬
of Canada
Bank
concerned
Government
the
pleteness of the feed-back of in-
position from time
a
sponsibilities
money
have grown to be
very large institutions
operating
in
all
ten
basis.
the
bonds
anticipation of the fu¬
greatly
an
com-
which enable
own
needs of either borrowers
ture
and
capi¬
assets, or to finance personal
or governmental spending for cur¬
rent purposes in excess of income
.present situation in which we have
in Canada a broadly based liquid
;
-
Market
Most
is
to quite
rapidity
new
tal
can
nation^knitting
portation, but also
there
with
of their
sources
are
ticularly dependent not merely
such
carried
and continuous volume of trading
and where there are financial in
and*
out those who are in a
position at any given moment to
extend credit and channelling it
be
can
with the general
seeking
mone¬
policy,
cialized
intermediaries
which
tary
develop vpty far or operate
efficiently if there were not spefinancial
interest
the main instrument of
are
capital market
carried
day.
chartered
Canada's
market
open
investors.
barter
.
Bank
than
every
great
our
form of credit is necessary in any
kind
of
economic
society other
one
our
in the Canadian capital market is
threefold.
In the first place our
employment
possible,
degree
mum
of
sustained to
be
should
cies
E.
high
a
industry and enterprise
operate
The
y e ar s,
that
reflec¬
a
including
States,
ment
mendous
tuations every
few
in
world.
system bear witness to the similar
qualities of those who built up
sound
a
are
depend
the
on
,
The market for credit—whether
single
year
case
the
material
monthly or
monthly "Statrs-
to finance investment in
tion
greater
to those
the
in
additional
available
improvements and welcome suggestions to that end.
rowers,
investment dealers, just as" the re¬
sults
achieved
by our banking
that
be
on
is
materially
its part has always attached great
importance to furnishing up-todate and comprehensive informa-
a
and-broad national outlook of
econ-
y,
than
country
tion of the
groups
the
in
and
capital
new
The results achieved
all
and of
other
any
custom¬
their
ers
quantity of
requiring it
in
year
by
is
ments.
very broad retail
investment bank- chinery existing in Canada for the
market, that is to say the placing
in- placing, of new issues of securities of securities with
private individby on the market is the equal of that
uals and small local institutions,
credit and capital in the economic of any country in the world and,
estates and trusts.
In most other
in proportion to our
size, it prob¬
growth of the
countries,.
arranges,
a
and
ing industry ape particularly
terested in the role played
out, for the provision of
here
invlestment dealers have cultivated
Members of the
ably
find
formation
the
market
which
must
extent
■
One of the most notable features
measures when the
interest,
as it is in the
interest of
will
and
market
Developed Broad Retail Market
p
demand for resources and funds becomes excessive.
their
investor
published over the years.
The quality of performance of any
am
mone¬
nation. It is in
which
up
;oped, the Bank of Canada will, I
unless the governmental authorities cooperate by reduc¬
side effects
mented
small
been
.
the job of preventing inflation might have
tary measures
savings instruments suitable to the
assisted by the flow of statistical
information which has been built
countries in the days when bankers' acceptances were first devel-
desirable to effectuate small changes in money and
holds it is more
We
ably from those existing in other
Coyne
credit to large ones. Further he warns that attempts to give to
debentures
yet developed a system of 'very useful and proper source of
quarterly in our
bankers' acceptances of
corporate funds which may be particularly tical Summary."
I believe there
short-term
obligations in
this helpful to them in periods when is no other capital market which
country, but if a workable method the demands upon the,,resources;.receives as up-to-date and comcan be
agreed upon by the char¬ of the larger institutions are un- prehensive information about mattered banks and investment deal¬
usually strong.
ters which are of concern to it.
ers suited to Canadian
The development of our financonditions,
We are constantly trying to make
which of course differ consider- cial markets
has
-C
erating the demand for capital. This view follows his description of
Canada's capital and money markets and is part of his candid reflec-
of money, banking, credit and investment.
and
corporations.
not
Canada's central banker judges it is time for his country to cut down
on heavy foreign borrowing by increasing domestic
savings or mod¬
lion on the role
notes
business
Philadelphia, Baltimore Stock Exchange
few years a
\
.
:
■.
.
-....a..'.,
.a.V!
••
'
10
yields. A spread of Vz% of 91day bills over the discount rate
is
unusual, though back in,, the
Short-Term Money Outlook
to
By Norris 0. Johnson,* Vice-President, The First
Bank of Neu York, New York City
National City
plus and $6.6 billion of the first
half revenues had been committed
to
redeeming
tax / anticipation
discussion
The
nominal
be a
.
with
notes it has caused the Treasury
that during tight money the Treasury should
convertibility to
currencies
offer
can
that
cast
unqualified fore¬
will be a year of
an
1960
unprecedented activity in Treas¬
ury
bills and
other short-term
money
A
market
From
ail
I
see
can
,
■"
:'/!K" sv :®
that
market
will
interest
corporate
and traded.
N orris
O.
first
Jo.inson
Having
to
is
the discussion
in
fore¬
sentence
one
my
the
strong
to
proceed
time
to
longer
dimension.
the
In
extreme
the
ephem¬
thing, here today and matured
tomorrow.
market
the
background
of
rate
fluctuations
in
the
over
reduction
quarter
June
it
is
to
as
past
two
we
a
pattern
enter
1960.
intellectual
good
a
of
But
exercise
try.
Treasury
bill
the
skittish
yields,
deter¬
as
weekly auctions,
leader
the
of
the
are
It
;
is
of
trading
in
struments.
bill
on
So,
speak
me
market
money
for simplicity, let
bill
of
yields—as
in¬
yields—91-day
the
central
figure
the stage.
Traces
to
money
some
Seasonal
ease
degree
most familiar
of
$1
Fluctuations
cause
billion
or
is return flow
more
currency
into the banks. But this influence
is largely cancelled
by Federal
Reserve
The
sales
or
effective
runoffs
of
of
and
force
deposits.
It
is
buying
bills
tions
by nonfinancial corpora¬
using (a) excess cash ac¬
cumulated
in
dressing
up
.
year-
to
foreigners
count
tax
quarter
the
more
that
will
movements
far
as
forward
institutions) j and
of
the
expects
Federal
the
mop
banks
in
year
Reserve
up
in
to
act
January, and (b)
reduction
in
cor¬
that the January decline
bill
yields
will
be
91-day
moderate.
The yield on the last
four 91-day auctions has
averaged
4.59%.
The
Higher Rediscount
question
arises
as
to
mqch longer the Federal Reserve
will
put
keep the 4% discount rate
in
force
last
September.
Normally the discount
somewhere
near
rate is kept
Treasury
bill
Principal for
Issues
Tax
Issues—:
■
Anticipation
Special
Bills
182-day
Issues
duced
in
"Long"
.A..-
Securities, Inc.
25
Broadway, New York 4, N. Y.
HAnover 2-0433
NY 1-4722
(first
regular commission
rales
through and confirmed by
6.0
,
19581
.(first
April
Now
A""":
22.0
Change
(billions)
Outstanding
(billions)
—$8.0
Sl-i.8
2.0
6.0
-A
+
2.7
—
x
.
12.4
9.6
10.8
The
National
25
Association
of
Securitjt
Dealer*
Broadway, New York 4, N. Y,
Two
have
cer-
1960
It
is
New
•
years
ago,
speaking at
University, I men¬
York
this
record
to
4%
pass
and
suggested
.
.
bl11 yi*lds w<rr,e dae
1960
in
with
the
qualification that, since we had
entered the "space age" where
time tends to be collapsed, what
is due in 1960 could possibly appear in 19o9 though not in 1958.
We made it in 1959, on the 91-day
bills dated Sept. 17 which went
at average yields of 4.17%.
In
December we have moved up as
bigh as 4.67%
on 91-day issues,
There is the further fascinating
+
8.0
8.0
S102.6
is
some
thinking that,
perhaps
in
the
special
of tax anticipation bills, the
$92.7
+ $9.9
$39.6
only to new money raised but also
to the far greater quantity of bills
sold
case
Further, bill financing feeds inflationary sentiment and, creating
resistance to interest-bearing in¬
on
limits
of
$2
as
any
prac-
underwriting
billion Treasury
day.
one
consideration
in
At
was
as
bills
least
apparently
in-
general
year
standing
each
this
in
of
there
bills
is
cycle
due
out-
now
$2
billion
Jan.
else
means
unavailable
over
until
Fortunately,
mediate
a
the
can
five
of
is
the
four
borrowing
"the
creasing
issues
repeated.
notes where 5%
f?
™ny
that
the
there
are
Treasury bills around
market
money
costs
money
cost
is
congested
have
to
on
Indeed,
Treasury, if
the
bond
a
and
risen.
5.18%
5 and
cannot
resist
Federal
into
a
before
annual
A
hllrh
•
A Y[Y\]VPrS£lXV
City
York
five-
has opened
It has
for
10 thousand dollar denomIt does take a lot of
hqwever,
t
to add
notes
for
I
whether
members
Stock
of the
Exchange
and
leading exchanges, is celebrating the 50th anniversary of
its founding in 1910.
other
rr*
i
2U1CL Of),
± 1*111112111
-j-,
'
.
H OrTYlPH
1H
and
man
Co.
with
the Wall Tower, New
SuJyTeeds
have
Broadway,
,t'tt
N
Y
the
always
offices
York
cipal of Truman, Wasserman and
Co
"
—
Complete Investment
UNDERWRITERS ' BROKERS
'
DEALERS
•
DISTRIBUTORS
-
slight further
the
subject
of
debt
management.
The
point of view has been expressed
that, when money is tight, the
Treasury should avoid bond of¬
ferings which would involve high
costs
borrow
for
years
to
come,
Dean Witter
on
bills.: Though bills
might involve even higher money
rates for a short
period, the higher
plausible
businessman's
ap¬
proach. But it is not without some
serious faults. Since the
Treasury
is
in
already
the
a
tremendous borrower
money
market,
Members
Hew York Stock
Exchange • Pacific Coast Stock Exchangt
Midwest Stock Exchange * American Stock Exchange
Honolulu Stock Exchange • Chicago Board of Trade
'
Private leased radiotelegraph
circuit to Honolulu
SAN
FRANCISCO
•
increased
money costs" incurred as a result
of increased bill issues
apply not
Co.
&
will not last. This is
41
^
IOS
60
8 securities business,
Truman was formerly a pnn-
*
182-
°
at
City, to
f.ngage
had
faith in the expansibility of markets
with higher
rates, at least
When
ri
(j
Charles Truman- has formed TFu-
being asked in the
willTover
money.
120
up
to real money,
The question
"
Co
equivalent
on
Bond Offering
Money Is Tight
digression
Johnson
Association
Mr.
Josephthal Co.
York
inations.
day bills dated Dec. 10.
Favors
by
Finance
New
been an eye-opener to the /professionals: particularly, the small-
,
borrowing
But
address
American
New
and
rich stratum of demand.
weei'l'v ma.rk?f tJ°day
of
Tax anticipation
be
can
toS
♦An
acts.
such buying,
reserve
long
unsealed
meeting, Washington, D. C., Dec. 28, 1959.
inter-
$1.4.billion in some
some
Canada
too
previously
&
order, so-called retail demand
be
in
before
Joseohthal
Congress
there
area
years—is
of
heights.
r Aj_1
Treasury
15, April
15, July 15, and Oct. 17, 1960^
The weekly 91-day and
182-day
bill auctions, to raise
money
to
pay off maturing issues, run from
weeks to $1.6
billion in others. There is believed
to
sort
election—it
an
for money? The bond market—
go
completed
and
a
rate-raising influence.
Where
which
182-day
clamored
party in
this
conservatives
rates
maturities,
over
struments of all types, can have
decision, first, to
bills, and,
second, to introduce the long bills.
The long bill program has been
the
roll
rhade
won
—money
the
this
the
to
and
the
was
political
a
America
promise
8.0
-
time
last
North
a
Principal Stock Exchangee of Canada
1956,3%.
the
•+
intro¬
19591
Total
money costs
Membera:
noint
whether
money
rates
figure prominently in the
election campaign with one
party
promising to restore cheap (they
do not say depreciating)
money.
My only comment on this is that
intro¬
December
in
(billions)
9.0
Bills--
There
money
at
to
also
question,
Net
except
and
Orders Executed
'
$71.6
Capacity of Bill Issues Reached
I
Members: New York Security Decders Association
Redemptions
$63.6
2.7
Bills
duced
Brokers, Dealers and Financial Institutions
Grace Canadian
might be worth analyzing
increase in outstanding U. S.
Treasury bills during 1959:
(billions)
91-day
basis, touched
as
the
rates
may not
computed
Specialists in Canadian Securities
It
anticipation bills
in
March
and
June.
Cash borrowings will be needed
Rate
how
to depress the bond market
generally.
needless
day Treasury billsJhave moved
up through the next even number,
In: 1948 91-day bill yields first
pierced
1%;
in
J •■««*•.
—~
—
1952,
2%;
in
that
Treasury
be
money
strange what a hold this doctrine
bas- I remember people saying it
*n 1956, not to mention 1952 or
1948. During World War II 91-day
Treasury bill-yields were pegged
a^ three-eighths percent. In each
Presidential year since then, 91-
prevent a general rise above 5%
acted
maturing
to
Foresees
the
much
of bills to be
greater than usual. Thus I would
suppose
of
from
mbney should be easy, and
fainly not very tight, because
*s a national election year.
in
the
to
gen¬
holdings
porate
turn
capacity when it offers for sale
gains of funds
■
-
.
that
tioned
the $6 billion tax
introduce
the
-
.
new
money
costs,
Failure to permit bond financing
should have a cash
surplus in the first Half to cover
fluential
(a)
lift the antiquated
bond rate limit
;
to
Treasury is approaching the
expect
a
if the Con-
and
^1959—has not only helped drive
yields up, and increased the
equation. Ii(luid asset supply, but has re-
see.
side
constructive
circumstances
would
surpius
Perhaps I am mistaken in considering that these actions could
make the marginal difference and
The Treasury
business,
inventory accumulation and capi¬
tal spending during 1960.
In the
one
than
more
ad-
steel
of
surge
can
need
we
general
some political implications. One
frequently hears the forecast that
.
have
over
a
%
*
the fiscal
submitted in
be
to
shows
agrees to
gress
ac-
and
pressures
we
as
Now
tical
everyone
nominal
inter-
to
is. hope. if
at 4Vfc%; which could have been
vances in
money" rates and bond Possible last summer, has been
yields
This trend
fortifies ex- costly. Excessive reliance on bill
pectations of tight conditions here financing—up $9.9 billion during
the
and logical
basically, it is
settlement
a
$3 .billion
wage-price
corpo¬
year.
With
short-term
pay¬
much
situation
yield
january)
are
on
(plus
national
pretty
a
currencies
corporations.
bills.
driving bill
yields down in January is not
bank buying out of
gains in re¬
serves
all
first-half
experience is for
in January, and to
in February.
The
the
and
A--
quickly to
normal
for
banks—is
on
determine
to
The
for
is
similar
March
heaviest
third
business
eral
bulk
holdings
whole.
pattern. But,
short-
main
a
«
they
the
'
j
there
.
fourth quarter—modified by yearend window dressing and seasonal
strike,
for
in
the
pattern
quarter
a
irtv tin. international
market where many for-
regaided as
equivalents for dollars. We have
more
than $16 billion liabilities
normally accumulate more
bills in
July and August than
they dispose of in September. The
term money market. Volume-wise
account
for
perfs
^bink
budget,
again
money
eign
rations
'//,., the
mined in the
reduction
whole.
a
months
same.
movement
as
the
are
ment
try
out
a
holdings
in
as
pressures
mark
bill
second
years it would take a bold man to
to
corporate
make
to
quarter
During
Short-term money is an
eral
February
rather like the first with
^
temptation
matters
when
as
The
delivered
permit
into
bill
for
bill
holdings (including tax anticipa¬
tion
issues) are so sharply re¬
sold
the
is
thing
rise up to the March
to
date
by
and
live
to
major European
abroad, w® haye begun
heavily in lost some of our freedom to steer
January an independent course. Booming
1 A
-A: conditions in Eurone are brineins
up
the
decline
to
then
tax
duced
cast
of
:/.■/■
they
myself of
stock
normal
rates at which
are
deposits,
who
The
yields
likewise
inventory
which
corporate
and
the
bills
dema nds.
than
accumu¬
corporations
buy are supplied by the Federal
Reserve, by banks suffering losses
higher
and
reserve
seasonal
anticipation
before
gain
(b)
and
reduction.
average
ever
tax
and
dealers
outstanding
supply" of
money
lation
of
the
paper
of cash from
The
instruments.
sheets
balance
end
asking is whether 5%
be enough. Most ex_/
know do.ubt it.
Yet
I
are
going t
conditions. Since the restoration of
forego bonds in favor of bills.
One
pGOpie
flowing toward firmer money
stable
the
Congress
holding back expenditures, and
hence bill financing, and permitting bond financing.
The
5%
market is too good to be spoiled
out
.
world-wide currents
that
note
to
are
operation
It should
Expects 5% Bill Rate
.
practical limits of underwriting capacity; and disagrees
who argue
those
.
reasonably
fiscal conditions. But the answer
in this case requires some co-
,
relieve
be to
under
by being overworked.
a
-
budget surplus and Congress agrees to lift the
gressional ceiling rate has been;
of
policing discounts, a
This first half cash surplus is
policy which inevitably must in
.a
seasonal affair and no doubt
volve some discriminations, or at
be iargeiy offset by a deficit
least
feelings of discrimination, -n the second
half-yeai;. In any
among member banks.
case,
it "would
seem Athat
the
Apart from our domestic .busi-preasury wyj be having to pay
ness situation, we should not fail.
£or
money.
The
question
4«/2% bond rate ceiling. The author points out how costly the Con¬
to reach the
securities.
e'nj^r
the strain of
developments envisaged by New York banker-economist. These
than
we
purpose
would
,
more
as
practical
advance
rate
likely hike in Federal Reserve rediscount rate are some
5% for money, and possibly more, even if there should
redemptions of Savings
cover
persist for two months before
active^
tightening market conditions, it is held, may compel the Treasury to
pay
Thursday, January 14, 1.960
.
1959 when there was no cash sur-
1960.
of the
.
spread of Vi% or more
a
raising the discount rate. I suppose
the rate will be in the stage of
Higher average interest rates and supply of money market paper in
a
to
.
bonds and attrition on refunclings.
But the situation is far better
fall of 1958 the Federal Reserve, than it was in the first half of
did allow
1960 with
Financial Chronicle
The Commercial and
(162)
and other leading commodity exchanges,
ANGELES
•
NEW
YORK
Offices Serving Investors
•
>„ ■; .
CHICAGO
Number 5916 ...The Commercial and Financial
Chronicle
191
Volume
battery
a
(163)
of
but at this
optimistic forecasts,,
And the General Outlook
^
K. Thurlow,* Vice-President, Window, Cohu &
By Bradbury
Stetson. Inc., New York
*An
which way the
;
of
It
it is
:
looking for
lower stock
all
we
those
one
bottom
upward and onwithout a reaction
gaily
ward virtually
rub-
stood
observers
most
while
bing their eyes.
If
look
we
1958
prevailing in early
recall there was
shall
we
closely into the
more
of mind
state
a
highly refined unanimity of bearish opinion on the outlook—since
business
could
only get worse
and
during the first few months
no
one
of
knew how much worse
how long, stock prices would
necessarily decline until bottom
for
visible,
was
fine
a
This
be over.
only
idea,
the
point
which
at
bear market would
was
bear
the
market had
already ended by the
time
forecasts
these
when
and
in
of
decline
of
April
smiled
us
gested
the
U.
ob-
bottom
that the
was
most
hand
at
indulgently and sug-
that
he
fellow and all
of
made
were
Eisenhower
Mr.
served
the
might
be
nice
a
that, but Presidents
didn't really know
S.
much about economics.
The importance of looking back1
at 1958
we
today is to inquirejwhether
may not now
be looking at the
picture upside down.
On
Sunday, Jan. 3, I watched Senator
Kennedy on "Meet the Press." In
same
the
of
course
he
interview
the
predicted nuite rlparlv (T thought")
thatbusiness
fiOOd
in
the
poor
wonderful
for
at
196f.
is
to
called
clearly foreseeable.
To
this
me
verse
like
sounds
image
of
and
1958
the
re-
if
Mr.
b,ri»vedy'SMairl°yan£e
iS as g°0d
today
Mr.
Eisenhower's
was
as
two
years
ago
time haggling over
and quarters but should be
This
not
eighths
should
we
waste
H*MS
nght.
selling
here wh.ile
pric!s
ale
to
to be
me
seems
good, simple, straightforward
in-
an
old
however, I
broker,
customer's
can't resist the temp-
tation to play it smarter than anyone
else,
long the
men
so
market
I
assume
market
turn
on
one
a
theory.
continues
can
stay
sort of mo-
While
to .rise
we
the
sit
averages
month's
low
seems to me
discussion of this sort
•
Wm. H.
has
become
Broadway,
New
will
be
Osborn, Jr.
admitted
approval of
Exchange. •
as¬
&
Co.,
■
York-City,;
ry>v
past 12
general partners in the firm; subject to the
Board
of
;
Rusmisel
Mr.
17
the
has
Governors
•":
the
of
New
York- Stock
k.;
associated with Lehman Brothers since
been
Sage
Mr.
and
years,
/ Andrew G. C. Sage II
Raymond R. Rusmisel *;
as
r; ' 7
Osborn has been
Mr.
1948.
for
with
associated
has
with
been
Lehman
the
Brothers
firm
for
the
years.
With Marshall & Assoc.
Chicago, ill.—William c. Dunn
has joined the staff of Marshall;,
and
we
.
Associates,
Drive,
75; East. Wacker
Form American
-
Co.
•.
.
brooklyn, n. y.
Planning
v
Planning
•
—
has
• .,
,
American
formed
been
with offices
in
engage
Partners
at
a
are
16 Court Street to
securities
Arthur
business.
and
Martin
Karduna.
a
of
had last
summer
are
This advertisement is not and
of these
very
is under
securities for sale
securities.
circumstances to be construed as an
no
or as a
solicitation of
The offering is made
an
offering of any
offer to buy any of such
only by the Prospectus.
•'
.
"
**
January 8,
NEWJSSUE
1960
105,000 Shares
Florida Tile Industries, Inc.
Class A Common Stock
$1.00 Par ValueT
Price $5.75
Copies of the Prospectus may be
and
which event further easiness and
congestion might last a few more
days after which we might find
per
'
.
.....
1
,
Share
obtained in any State from the undersigned
offer these securities in such State.
only if they may lawfully
others
The Johnson,
101
°^?elves ..headiilg
a.
stiff reaction. My o
*hat
\JrrJcr nft^n
here, but I have been wro g
en°u^ \°
5"? aJ* ^ C?or the
and that 1S th(:
30£ J
Atlanta
•
Lane, Space Corporation
East Bay St.,
Augusta
•
Savannah, Georgia
La Grange, Ga.
•
Jacksonville, Fla.
elab?.ratLmt^
mentioned eailier. If this market
-tbroughgoing up it.will probSbly not S6ttlG fOF txlG kind 01
reaCti°" We had
last summer.
I
This announcement is
the
market
such
as
fhp
„r,pn
.
are
a
are
offer to sell nor a
g0 Up a
($1 Par Value)
,,
1Q0 points leaving our
pet
Price $4.25 per
Stocks high
and dry and our cus?
.
t°mers with only
our
Dow
Inc.
Cqmmon Stock 7
Jones Industrials'will be six months 01 a y
from now. The Dow Jones may
.
securities.
Circular.
Georgia Shoe Manufacturing Company,
interested in guess-
ing
where the Dow
®
solicitation of an offer to buy these
only by the Offering
70,000 Shares
is
improve—rain or shine—we
all vitally
an
waste^
watrhword
of time when the watchword is
selectivity. No mattei how sure
we are that our favorite
stocks
will
neither
This offer is made
Of course many will argue (and
will agree) that discussions of
cii^ miccHvin^
Share
slight misgivings
inadequacy,
Jones decline
but let the
100 points
a
and many of these same
customers
Copies of the Offering
of shock if we
haven't sold some of their securities to give them "protection,
' This is why market forecasting
will always be of vital interest
Circular may be obtained from
the undersigned.
will be in a state
who earn our living
break the previous dealing with the public.
I can
we
sell,. You will only apologize for not providing
tight; if it loses its momentum and
the
Barnett
Periods of congestion such as we
had in December are disturbing
since they show buying and selling roughly in balance. However,
December is always thought to be
a peculiar month because of yearend tax operations, so we arrive
in January with the surprise steel
strike settlement and a big upside
breakout which ,lasts for just one
hour and then completely fizzles,
In my opinion this kind of action should not be unexpected
when the averages have just made
a new high and after a few days
of milling around one would expect a good upward move to get
underway • with motors, coppers,
steels, rails, and other cyclicals
somewhere near the front. On the
other hand, one should not rule
out the possibility that Monday's
(Jan. 4) rise was a false move, in
of
vestment advice.
As
,
Exchange, as manager of the un¬
derwriting department. -
buyers or the sellers are going to
turn out to be the weaker group,
held
going to be
the first
least
nali
of this year and that stock
prices cannot turn downward until the end of the business boom
is
of
it
This
widely
present,
view that business
hp
micrht
onH
in
immediately
prognosis
mind
1 QfiO
11 y
c
be^
not
lafp
dTst in
,
good for determining whether the
years
went
and
Thurlow
B. K.
stocks began on the
when
and
one.
guessing how public
opinion is going to react to facts
already known. Reactions like the
of
•
mistake to deal with "funda¬
a
matter
1958
one
was
a
is
really
psychological skill and usually
know,
wrong.
29
market forecasting is primarily a
badly
was
Harold
Interest rates, foreign
relations, politics, and that sort of
thing are of vital importance in
making investment decisions, but
prices and, as
Mr; Was-;
sociated with Schweickart
mentals."
also
was
in
that
right.
and was
question
; momentum
1
business.
members of the New York Stock
The
ing for bad
business ahead
and :
Appoints Barnett.
think is too high.
k
just behind us,
majority opin¬
ion was look¬
has'
Wasserman
Schweickart & Co.
Defines Market Forecasting
break
-
was
f.
r
completely /perhaps call this a simple minded
I look the scheme for simple lhinded people,
more questions I find that seem, but I think it's as good a way as
almost impossible to answer.
In any to stay invested in a market
market
Osborn, Jr., Raymond R. Rusmisel and Andrew G. C. Sage, II
formerly a principalv
Truman;
Wasserman and Co."1•
'
'
serman
appears
early 1958 we
had
a
big
x
securities
the
a
confusing and the more
you
William Street, New York City, members
Exchange, have announced that William
Co., Inc., with offices at 70 Pine;
St., New York City, to engage in ;
selectivity, everyone's vital concern about the direction of D-J a
outlook
S t i
formed Wm. Stix Wasserman
:
*
Industrials show, Mr. Thurlow concludes, market forecasting is uppermost on everyone's mind.
The
H.
Forms Own Firm:
break the previous month's low. Despite today's predilection
averages
1
;
-
market continues to rise and sell when it loses its momentum and the
for
Brothers,
of the New York Stock
Thurlow before '
Customers'
Brokers,
Mr.
Wm. S. Washerman
William
offers
writer
Lehman
;
mar¬
For those who are in a market they believe is too high,
his "momentum theory"—i.e., sit tight while the
ket may go.
the
on
by
Association of
New York City, Jan. 7, 1960.
City
accompanies Mr. Thurlow's observations
address
the
Reflections on what market forecasting is and what makes the market
tick
Lehman Bros. Will Admit Three
•
point discretion looks
like the better part of valor.
11
to those of us
The Johnson,
Lane, Space Corporation
'C,
January
14,
1960
.
t
'
tit
■
»„
k " '4
,
t
•*
»
*'
12
Commercial and
The
(164)
sider
U. S. Chemical Industry : :
Faces a Growing- Threat
how
be
may
the
Common
expected
to
Market
its
regard
chemical industry.
We cannot say
definitely at this moment what its
position will be because no deci¬
sion has
Central
yet been taken by the
as
Authority of the Common
By Gen. John Hilldring.* Chairman of the Board, General Aniline
Market.
&
that two of its members, Germany
and France, do now regard their
Film
Chairman. European
Corp.. ISew York City,
Market Subcommittee
Common
of the Chemical Manufacturers Association
We
do
know
however
chemical
Trade
less
threat
European Common
emanating from
in the world market from the U. S. S. R.
held
are
our
but
depicted as less significant than the looming competition
are
empire.
The next ten
economy.
Gen.
Hilldring calls for
policy, and
research
more
have
warns we
no
years
-
mission
In
two
to
view
will
chemists,
different.
We
government
Common Mar-
fact,
of
ke t
rassments is
offers
any
sort
the
to
in¬
dustry. If
found
is
what,
anything,
can
the
we,
industry,
The
nomic
do
Euro-
John
as
European Common Market,
consisting of Germany, France,
Italy and the Benelux countries,
being
It is without
portant
terials for
industry but, generally-
speaking,
we
Jan.
on
1,
1959.
doubt the most im¬
a
economic
development in
Europe in this century.
certainly give, in fact it has
already given, enormous economic
strength to the free nations of
its
it
its
reason
is
success
existence
matter
a
of
for
and
great
political importance to the United
States.
Does See
very
Future Threat in ECM
raw
furnaces
feed
to
materials
and
Economic
ropean
to
itself
Community
people.
not
is
concerned
adherence
but
it
particularly
theory of
is
with
the
to
petitive free enterprise.
It
com¬
is not
will not be preoccupied with
establishment of free trade
and
the
in
in due
occur
extent
some
primary motivation. Neither
a
it
This will
to
the
world.
Its
purpose, first
will be to sell its
last, is and
tion costs
should
we
promptly
ment
and
does
and
support of
of all of
not
question
our
answer
which
our
industry
citizens. But this
the
principal
confronted
the
Committee
and
which confronts
industry. Does the European
the
Common
sort
to
of
that
Market
threat to
question
The
constitute
us?
The
any
answer
Wants
ket
practice
a
modified
free
en¬
terprise system with
monopolistic
overtones.
It
is
quite
different
evident.
It
nessed
and
chinery
's
of
potential
directed
the
by
is
har¬
the
ma¬
Common
not difficult to measure.
be
Market,
It will
is
Reciprocity
not
I
should
eral
like
of the
to
consider
situations
which
sev¬
con¬
front us as a
consequence of the
advent of the Common Market.
Would
In
>
Match
the
Protective
beginning,
let
Status
us
con-
a
NEW ISSUE
matter
appears
•
the
"A": Common Stock
which
-
Share)
to
exports
Common
when
and
will
In
be
our
can
not
believe
the
future
by
say
connection
that
tariffs, I be¬
this much. We do
a
our problems of
going to be solved
high tariff wall
States.
We do
believe, however, that tariff
by
in
us
future
and
really
be
selective
truly reciprocal.
also
believe
an
con¬
the
should
be
that
GATT
important agency
questions
consequence
and
sent
action
any
should
for
specific
take
as
Share
be obtained
our
operated
mon
on
and
and
Trade
Seven"
and
the
two
was
tions^ by
acrimony
of
and
there
cussion
dis-
how
ences,
^y
--v..
Renshaw
(■Special to The Financial Chronicle)
CHICAGO,
111. —James P. Gal¬
lagher has become associated with
Rodman &
Henshaw, 209 South La
Salle
the New
two
and
report
Midwest
who has been
of
in
forces
to
the
meet
Gallagher,
common
USSR
Viewed
The
threat
common
the
Greater
as
Threat
of
Co.
One driving force and
per¬
haps the most compelling one be-
Market
urge to get the
into
together
Trade
business
without
Area
is
delay
the
of
J.
P.
Gallagher
to
a
Free
com-
the
he
Chicago office.
was
with
Inc. 5 and
Thomas E. King & Co.
its
we
are
some
ad¬
satel¬
the
past
he
was
an
officer
the
summer
minds
own
battle
to be
in
were
that
the
in
sure
the
cold
of
research.
The
economic system
deal of
great
is
going
war
Distributors Group
trade battle between State
and the kind of free
a
Capitali&m
enterprise
practiced
in
Distributors
Group, Inc., 63 Wall
St., New York City, have elected <
Albert E. Merick, Jr., William C.v
Roper, and Edmund J. Wardellv
Western
Europe.
|
Barring
the
a
battle
center
of
shooting
that
the
will
stage
war,
this
for
the
is
Assistant
the
occupy
Merick is
next
South
paign
obviously
out which
trade.
It
area
was
American
in
will
°Lth.l
be to
Europe this
I
that
ropeans do not include the
in
not
as
an
struggle.
too
amusing,
To
me,
and
Eu¬
it
States, with head¬
Orleans;
Mr/
New
in
States,
Charlotte,
C.,
of Texas
is
Fund
regional
Southwestern
Management
for
manager
States
"with
All these Shares
having been sold, this
announcement
-
matter
appears
as
NEW
ISSUE
ropean
of research
Common
emergence
as
Common Stock
'Par Value lr
a
per
Share)
a
nature of
Prilpe $1 Per Share
and
This is
in the coun¬
a
of
the
not
the
be
Eu¬
Market.
The
Soviet Union
trading nation will force the
European
Common
Market
to
budget its research with maxi-
Inder writer
THE JAMES
12
East 41st
COMPANY
Street, New York
MUVray Hill 5-4071
—
a
*
of record only.
"
.
.
the
head¬
quarters in Houston.
is such that
Europe and will
true, in our judgment, of
with
of¬
research effort occurs.
of
for the
manager
fact, it is inescapable.
true
Mr.j
of the -
Mr. Wardell, formerly an
Co.,
was
manager
N.
United, ficer
important participant
this
headquarters
encountered
summer
in
Roper is regional
Central
Atlantic
amusing to several
friends
Vice-Presidents.
regional
Central
quarters
find
will control world
supe¬
overlapping
duplicating
!
Three Officers for
their
next
success
industry.
In
chemical industry is
great
In
of
chemical
the
battle
essence
of
■
Community.
technological
in
lites.
Insul-Cup Corporation of America
the
de-.
McDougal & Condon, 1
A. Noyes •& Co.
?
the
and
munic¬
bond
David
In
Union
the
Prior thereto
petition in the world market from
Soviet
&
charge
partm^ent
put
looming
y
was
in
ipal
Common
and
man
Reynolds
East.
hind the
for
formerly with
course
competition
expect from the
all
invest¬
business
years,
economic
they
the
ment
300,000 Shares
are
Mr.
gether, even how down the road
they may arrange a consolidation
Finally,* I want to discuss the
technological dangers which seem
to us
inherent, in. the new. Eu¬
Economic
Ex¬
changes.
to¬
*
company
of
but
of
York
Stock
differ¬
work
can
Street,
members
dis¬
the
their
V.
;
subsided
how
they
City.
This
sensible
solve
delivered to the
An-£:
of
the Synthetic
Organic
Manufacturers Association, New
the
year
other.
to
,as
can
..
Last
of
With Rodman &
Com-
economic
more
now
factions
-
by
Gen.
Hilldring,
the European Common
Mar-i
report
II.
the
largely
is
getting
_
J. P.
for
War
changed
the
has
as
we
Meeting
York
rivalry between
dire predicpartisans
of
one
the
economy,
Subcommittee
Chemical
and
about
group
our
these events, and
time to lose in
a
Chairman
ket
nual
on
groups
in
changes,' tests
of
no-,
"From
agreement
Area
by the
cussions in Europe.
emphasis
the
Europe,
fundamental
years
ready for them..
the
has
nature
struggles
have
eco¬
Benelux
establishment of the
Free
'Outer
of
of
shall experience
we
10
far-reaching
result
a
and
an
World
Market
a
tone
by
after
years
The
the next
and
customs union similar to the
a
some
because
rec¬
consequence
I
...
vice
tries
Tel.: BO 9-1600
in
Kingdom, the4 Scandiria-/
vian Countries,
Switzerland, Aus¬
tria
and
Portugal, which came
into being three weeks ago.
This
is
life
resurgence
for those
companies who do
decide to join EEC.
not
GENERAL INVESTING
CORP.
a
Market
new
But
have
we
individual
will.
The Free Trade
recommending what
Common
Area
of
way
judgment,
my
grouping consisting of the
subject,.
are not
it
the emergence of the
Commun¬
ist nations
as, world traders.
In
United
States
dealing with the Common Market
tariff
Trade
"Outer Seven" is
or
nomic
Free
ex¬
the
in this
way
or
men¬
this
penetration of
the United
cessions
the
a
In¬
the
namely
to
agree that
not be present,
because
economic
the Common Market
on
that
are
erecting
around
As
moment j trial
of
European friends think
market.
struggle,
suggestion,
one
the
foreign markets they are not
cluding from their thoughts
U. S.
important
an
re¬
receive
borne in mind
about the
the
.
Several important European
industrialists with whom I talked
this
Association,
talk
have
we
suggestions
Commercial Relations
Research and
from the undersigned.
other
fact should
the
sense
per
York 6, N. Y.
the
consideration
Committee.
a
Broadway, New
tariff
new
in
sure
ternational
our
55
Chemi¬
Association
Europe. And
am
serious
in
may
the
study of the
a
not
this
Market, both externally anct internally,
will
have
upon
U.
S.
riority
Copies of the Offering Circular
that
the
arrangements
ropean
Offering Price: $2.00
of
pointing out to the
are
including in
•Par \ alue §.10
per
At
do
industry will
threat.
function
undertake
effect
the
Tobin Craft, Inc.
threat.
of
I
course,
U. S.
Chemists
area
complete without
of
Manufacturers
in
75,000 Shares
tion
cal
should
We
Class
Tariff
in
ommendations to the GATT Sub¬
committee on this
v
be
Committee
on
of record only.
the
No talk
can
main
will
having been sold, this advertisement
develop¬
Of
any
namely to produce more research
chemists than are now emerging
or
are
at present contemplated,
This is admittedly not a complete
or satisfactory answer but it will
help.
which
We
as
in
offer only
can
is
and
All of these
securities
we
we
lieve I
tremendous.
greatest
with respect to U. S. tariffs. How¬
by
industrial
these
Thursday, January 14, 1960
disagree with those of my coun¬
search that the U. S. chemical
in-;, trymen who believe that no great
dustry
will " face
perhaps
its change will occur in our
indus¬
ever,
one
vast
ourselves
Committee to advise the Associa¬
tion on the position it should
take
in
strength of Western Europe
accomplishing miraculous re¬
mits in its foreign
trade, once its
the
Concessions
The
is—yes, it does.
countries of Western
Europe
which comprise the
Common Mar¬
self
have
'
the
is
about
anticipated, and
about
has the, unqualified
support of our
government and it deserves and
should receive the warm
endorse¬
earth
We
ments.
I
the
general
inform
which
of
in
be
can
the
ners
in¬
in the early years ahead.
Organizational changes, changes
in methods of
operation, increas¬
ing capacities and lower produc¬
European Common Market
European Common Market in
pushing its trade to the four cor¬
chemical
rope
several
world.
our
feeling that there will be impor¬
tant,
perhaps
.even
dynamic,
changes in the industry in Eu-
made
The
here
is
union
unfolds.
manufactured
goods
throughout
The effectiveness of
by
;
-
informed
is
primarily concerned with
raising the standard of living of
our
•
Market
factories.
It is not
and
a
Europe.
to
accorded
the development of the
European
chemical industry as the Common
the penetration of world markets.
course
Europe,
that
The Subcommittee also believes
that the Association should keep
The main purpose behind the Eu¬
its
Continental
and
its
Western
which
in
true
ma| import food
people
stoke
It will
Western
self-sufficient.
are
is
reverse
that
Community, also known
into
im¬
ing compulsion, namely to export
its manufactured goods in order
Hilldring
Eco¬
the
came
muoi
Practically, philosophically and
historically, Europe has one abid¬
about it.
pean
food surplus. Eu¬
should be
dustry.
embar¬
sailing the seven seas are
bringing to Europe every day the
raw materials it
desperately needs
for its industry and transportation.
present
if
ourselves.' In
present
Ships
be
to
feed
our
our
the other hand,
on
The
any
threat
one
rope,
S*
U.
chemical
recommends
competitive
port a large amount of the food it
needs. We lack a few basic raw ma¬
threat
of
the
It
give
whole
this
development
be
watched.
free enter-' Whatever status the chemical in¬
prise we know here at home. It dustry may enjoy eventually in
has to be different because Eu¬ the Common
Market, the same
status
i t
the
Calls for More Researc*
Area
rope's basic economic situation is
whether
Common
course
to
of
seems
.
in
Subcommittee
ple one.
It was to
the
European
and
the
due
status
it
.
efficiency regardless of
oth^r consideration.".
the Soviet Union.
from
is
attitude
,
jmum
chemical industry of all the countries in the Common Market. The
assigned to the Sub¬
committee by the Chemical Man¬
ufacturers Association was a sim¬
fipd out what
the
that
in
preferential
time to lose in getting
of
governments,
assume
Market
♦ready to meet Soviet competition.
The
fare.
these
safe
fraught with basic, far-reaching changes, tests and struggles
discusses tariff
industry as vital to nasecurity and economic wel-
tional
viewed
seriously than the threat of European research progress,
both
in
Market is
Financial Chronicle
191
Volume
Number 5916
.
.
.
The Commercial and Financial
Chronicle
British Reaction to
of
British equities.
upon
will
we
first
may
the
appear,
have
inflationary implications
Dr. Einzig attributes this to
bearish
a
in
held
cuts.
So
It
tteat
long
to
shall
we
strike
found
the • London
Stock Exchange in an optimistic
mcod in which almost any news
thorities-may feel that for
present they could afford to
with
the
of
even
interpreted
be
to
optimistic sense.
ate response was a
be
in
trend
prevail, especially after it be¬
came evident that the cost of the
States
is
of
that
the
causing
of
terms
steel-
the
in
rise
all-round
an
older, at which it would
expedient to check the
British
rate.
holders
it
in
American
manufactures,
and also an all-around increase in
of
the
The 1
u c
Government
neck
equities
both
k 1
A
industries.
other
in
wages
commentator in London expressed
when
opinion
widespread
sum¬
ming up the situation in the sen¬
tence that the terms of the steel
strike settlement have made the
States safe for inflation.
United
Caused
It
Equities
to
On the face of it this
pear
as
bull
a
might
for
point
ways.
those prospects hit the
market as well as the
industrial
market.
since higher
in the United
industries,,
production
States
would
help them against Ameri¬
competition. This was not the
view taken by the London Stock
the
It
political
roles
settlement
to be realized the
came
trend of British industrial
equities
changed sharply downward.
was
because of fears
flationary "t
settlement
This
that the in¬
of
the
induce
the
consequences
would
United States authorities to resort
to
disinflationary monetary
ures.
It
is
assumed
lions of dollars
indirectly
to
that
added
the
meas¬
the
bil¬
directly or
national
wages
bill would have to be offset some¬
how
in
rise
in
granted
be
order
to
prices.
in
*
prevent a steep
It
is
taken
for
London
that
this
will
attempted by means of higher
interest rates
High
money
and
rates
credit
in
squeeze.
New
York
free
$150
sues:
bonds
100
million
due
due Feb. 20,
1960
bonds
of two
Dec.
group
aealer
banks.
to
admitted
20,
Lundborg
1970. Rate on
and price on
maturity
Murphy of San Rafael will be
D.
is¬
r)l/s%
and $82 million
to
partnership in Irving
Co.,
&
310
Sansome
Street, members of the New York
and
the 1970 maturity was announced
-
P
a c
i f i
c
Coast
Stock
changes.
'thirties
it
but
to
which
has
high
the
was
was
in
favor
Labor
Party
of free
trade
it has become
now
the
as
as
unable
check
to
a
On
the
and
its
Atomic Develop.
sj
the
markets
change
in
-
N.
became
the
W:
entered
rate
1954.
prospects, there is a growing con¬
of British
Casto
Mr.
with
sociated
unfa¬
interest
87,754,335.52
the
has
been
fund
the securities
since
Mortgages
1,847,394.24
..
Customers' Liability for Letters
2,084,914.24
of Credit and Acceptances
does
Disregarding
9,873,462.43
Loans and Discounts
Real Estate
,
not WASHINGTON, D. C.—Harold J.
necessarily mean that the boom Casto has been elected Treasurer
in equities in London
has come Qfi Atomic Development Mutual
Inc., .1033
Thirtieth
St.,
to an end. Indeed after two days' Fund,
back
285,000.00
Agency Issues ...:
Other Bonds and Securities
Casto Treas. of
Seen
this
Nevertheless,
Federal
as¬
he
business in
27,346,278.43
46,764,663.87
U. S. Government Obligations
reducing their costs.
resulting
$
Cash and Due from Banks
other
the
incapable of
hit hard many firms
outflow of gold would lead to an
accenttiati on of disinflationary
Prosperous Year
RESOURCES
Party
throughout
existence.
December 31,1959
hand,
rise
in American prices and costs, the
United States balance of payment
suffer
STATEMENT OF CONDITION
Protec¬
Conservative
been
ever
of Nort h America
of
Bank Building
44,807.97
Owned
1,442,412.18
Furniture, Fixtures and Improvements
Accrued Interest Receivable
484,802.78
Other Resources
801,584.90
"A \
$178,729,656.56
fidence in the prospects
industrial
production.
New Year
W.C.Pitfield
LIABILITIES
pronouncements by leading'indus¬
trialists encouraged hopes that the
heavy industries would have a
really prosperous year. Engineer¬ W. C. Pitfield
&
Co., Inc., 30
ing firms and firms engaged in the Broad St., New York City, has ap¬
production
of
heavy
electrical pointed John M. Fitzgerald and
equipment have been getting sub¬ Archie F. MacAllaster Assistant
stantial orders both at home and Vice-Presidents of the company.
j'
"7' ' '
:• ' '"'r- ' ''
'
'
'
abroad.
They are certain to be
Names Asst. V.-P.s
■
"
'
.
•
~
$160,209,786.26
Deposits
1,375,867.00
Unearned Discount
Letters of Credit and
2,085,912.77
Acceptance Liability
Other Liabilities
597,912.58
v
.
fully occupied during this year
Purvis Adds to Staff
right to the limits of their capac¬
ity. The question is whether they DENVER, Colo.—C. :Glen Dugan
to the staff of
will be forced to concede wage has been added
&
Company,
Equitable
increases which would materially Purvis
Bldg.
reduce their profit margins.
321,196.51
Reserve for Taxes and Interest
Dividend Payable
122,948.75
:..
2,334,859.29
*Reserve for Possible Loan Losses
Capital Funds:
Capital Stock ............$2,459,875.00
Stock Dividend
This advertisement is neither
an
offer
to
NEW
nor a solicitation of an offer to buy any
made only by the Prospectus.
sell
The offering is
61,500.00
Payable
of this Stoc\.
Surplus and
Undivided
ISSUE
Profits 4,530,298.40
Income Debentures 3,750,000.00
150,000 Shares
Admiral Plastics
Common
( 10^ Par
11,681,173.40
879,500.00
Reserves
$178,729,656.56
Corporation
*
No losses adversely affecting this reserve
are known to exist.
Offices
Stock
Value)
MANHATTAN
.
-116 Fifth Avenue
'
•
1400 Broadway
528" Broadway *,115 Broadway
318 Grand Street
Price $4 Per
Share
BRONX
352 East 149th Street
BROOKLYN
Copies of the Prospectus may
be obtained from the
undersigned.
1574 Pitkin Avenue
781 Eastern Parkway
Filor, Bullard & Smyth
•
815 Broadway
465 Kings Highway
QUEENS
Hardy & Co.
99-01
Queens Boulevard, Forest Hills
14-15 122nd
Street, College Point
'
January 12, I960
♦
•
X
.
.1- -V-'..
:vu
■
V,..
*
-
Ex¬
,
Commercial Bank
trade.
the Tories are prepared to
make tariff changes which would
vorable
consolidated
main
two
whole
be
steadier.
new
offered will consist
have
swapped
their attitude
In the early
parties
respect
towards
which
can
Exchange.
As soon as the infla¬
tionary implications of the strike
in
the
that
seems
tionist
extent
protec¬
would
set
and
correct
certain
interest rates in the United States
ap¬
British
cost of
dealers
securities
of
nationwide
a
admitting more rival
It is also pre¬
duly high cost under the
get
When
gilt-edged
would
The
tion of customs tariffs.
loans
policies. The prospects are viewed
with pessimism in London.
Drop
of
efficient industries working at un¬
e s s
booming
investors
switch over from gilt-edged secu¬
rities.
When
equities react un¬
favorably to higher interest rate
To
near
pared to sacrifice some of the less
are
prospects
of
goods from abroad.
of
cost
endeavour to
employment in
may
overfull
raising" the
redeem
Mr.., Knox,
in the absence of re¬
The Govern-,,
industries by
market, too, re¬
unfavorably to the American
prices
it,
ment
outflow
by
to
assistance
be
made
with
the
will
offering
through
ciprocal concessions.
many
settlement.
settlement
the
higher
are
the
number of reductions
a
be found
wages
mean
we
steel
possible to judge from this side
the Atlantic, it seems probable
will
stage might
a
witness in
European Free Trade
movement, but also independently
con¬
acted
was an
in
crease
gold,
of bonds
:
$124 million of 2 lA % and $89 mil¬
lion of 3%%
bonds due Feb. 1,
import duties partly in connection' the
the
The gilt-edged
inflationary in¬
in the United
steel industry. As far as it
settlement
lose
reached, before*
bank
equities. Before very long,
however, second thoughts began
Bi itish
to
to
months
The immedi¬
further accen¬
rising
the
in
tinue
million
The
Banks
publicly
•
1960 at
the
future
steel
$232
Land
offer
to
that
ac¬
higher—causing outflow pressure
The London writer relays the growing confidence
Britain as to the prosperous prospects of British
He anticipates/ however;
Federal
be
Government -
by
manufacturers of
the means to prevent competitive
price reductions of their goods in
industry
of
will
tion, partly in the form of legisla¬
would attract funds from
London;
and even though the British au¬
tuation
however^
words
twelve
are-arranging
of
holders
given
being
the maturing bonds.
the retail trade,
and partly by
resorting to free trade abandoned
30 years ago. '.c It seems probable
followed
LONDON, England—The news of
the settlement of
the American
an
probable,
Chancellor's
privilege
To Offer Bonds
The
be
offered for cash with no exchange
tion-depriving
be
interest rates
our
one or more moves by
Government to compel lower consumer goods prices.
liable
afford to ignore
can
the fear felt that
raise
production.
was
in¬
the
exhortation
seems
the
the campaign is
as
will
issues
Both
13.
Jan.
on
Fed. L and Banks
1960, to repay short-term borrow¬
Irving Lundborg Partners
ings and provide funds for lend-ing operations,
John T.
Knox. SAN FRANCISCO, Calif. — On
Fiscal Agent of the Federal Land Jan. 14 Rollo H. Payne and Fred
E. Hollenbeck of Carmel and John
Banks, announced on Jan. 8.
impact
British funds.
on
the
of
campaign waged by the Chancel¬
Exchequer, Mr. Heathcoat
Amory, in favor of price
dustrial firms
caused
cloud
lor of the
it.
steel settlement are said to
our
under the
confined
By Dr. Paul Einzig
Incongruously as it
Consumer goods industries are
r
somewhat
U. S. Steel Settlement
■
(1W)
Memfyf Federal .Deposit Insurance Corporation
-
V
14
The Commercial and Financial Chronicle
(166>
Monetary Policy's Impact
havior of
causes.
and
Thursday, January 14, 1960
.
averaged 17.8% above the regres¬
line. During, the first
year
be¬
sion
local govern¬
state and
of
sales, contract awards,
bond
ment
■'
contra-cyclical
The,
(5)
not
very
sensitive to monetary
policy or, at least, that their fluc¬
tuations are dominated by other
.
.
construction
On Local Governments
'■
Association
In
to the
answer
this
has
political issue" that monetary policy unduly
not been
complete business cycles.
such
governmental
the
in
so
study
monetary
bond
restraint's
impact limited only about 5% of marginal, postponable capital projects
and, nevertheless, had
the economy.
upon
bond
government
the
beneficial contra-cyclical stabilizing effect
a
A distinction is made between
sales,
contract
awards
State
and
construction
and
is
plans kept
feasible
on
which,
shelf for
a
local
not be true
at the Federal
sales
peak
One
of
the
major
issues
in
the
the
controversy over monetary
policy relates to the alloeative
effects of monetary controls, their
relative im¬
cision
pact
the
of which
sec¬
only
on
various
tors
of
has
level.
have
feet
more
all
ef-
of
brunt
restrictive
a
construction, state
mone¬
Reserve-Treasury
an
tions
corporations
and
bond
and
relative
cycle,
using
of
that,
if
are
state
to
the
assess
policy
on
monly
fected,
of the sectors
one
state
to
and
This
is
ject of interest
tra]I
sions,
com¬
most
local
also
In
a
af¬
a
different
v^ry hot
recent
ses¬
moderate, in
the
tary
a
on
to
particular
sectors
economy, and much of this
legislation
has
concerned
local
The
If
state
Anyone attempting to
evaluate
move¬
consistent
concluded
years
ago
that
approach
the
they
4
writer
the
see
are
explored
IB A
a
Statis¬
bonds
offered
for
tary
of
restraint
bond
sold
in
issues
under
that
it
which
easy
the
to
monetary
restraint
account
of
forward
with
the
projects
in
bonds
for
"
•
n,
have
sold.
'
been
conditions J but
stage where
established. On
the
that
which
short-term
account
the
date could be
hand, it overstated
other
though
no
might
money
advanced
never
took
offering
an
in
the
to
part,
impact
it-took
were
the
no
carried
financing,
even
project
the
is
local construction
that
natural
oh
work
'* n~/'rt offpr "* ■vXl
securities, The
offering
or»<1 solicitation of
is made only by the
an
awards,
roughly
the
of
case
data
5%
of
contract
that
suggest
the
awards
Prospectus,
NEW ISSUE
January 7, I960
periods.
struction
In
the
in
put
The
(3)
of
ments
df
case
the com¬
would
be
and
ment construction
local
tion.
govern¬
put in place
<contra-
lines constructed for the 1952-1958
for
construction
ment
sector
would
to
monetary
to
appear
only about one-fourth
policy,
(4)
sensitive
as
residential
as
types of state and local
some
projects
much
than -others.-
more
With respect to less
postponable
types of projects, such as schools
and water
-
6% Convertible Subordinated Debeaturus
and
sewer
projects, the
suggests that they tend
to go ahead largely unaffected
by:
the
state
School
and
the
market.
money
bond, sales,-, for
showed
their
example,
advances
greatest
during the first
half
of
1953
and
the first half of
of
1957, both periods
rising interest - costs.
sharply
%
l*-r
ta
re yl any
Price
Copies of the Pro,,,earn
the
creased
level
volume,
off
close
but
to
in¬
tended
the
sales
t:me
he obtained
may
he
JOHN j, KEKNAN &
CO.,
639
South Spring
Street,
after
i-auince.
terest
during; the midof high interest rates.
In
costs.
downward
sales,
is
in
well
re¬
not
rise.
oresent
school
bond
interest
construction
influences
since
and,
this
rates
during
th
to
movements
in
dominated
by
1:
in writ Stale,
securities
Incorporated
Angeles 14. California
are
oney
rates
similarity
of
contract
struction
no
causes
manner.
of
bond
cluding
schools
two
business
this
group,
tend
bond
state
the
to
to
sewer
and
in
a
more
and
water
urgent
earlier,
sales
have shown
a
very
contra-cyclical
Water and
have
also
and
a
sewer
hand,
bonds)
marked
very
has
contra-
the
What
month
local
sales
tion
during
the
by
1947-49
has
been
around
the
bond sales has tended
recession
until
amplitudes
however,
of
the
sales
deviations
sion
from
line
constructed
1952-1958
Volume
of
New
1945-1958,
3 The
June
Construction
U.
S.
in
Department
of
rates
from
leVels
in
the
The bond
sales
mid-1956
are
The
most
municipal bond
market.
construc¬
by
state
and
follow
to
ard
f
data
in'.led
and
for
by
Grvern-rs
of $500,000
and
water
the
1952-56
the
Federal
and
cover
cr
more.
sewer
period
Reserve
only bond
The data for
the
per od July 1956 to the present were
compiled by the Investment Bankers Ass
rh'iin' cf America and
ragardless
ber
■
of
size.
1956.
"all
The
all
crver
issues,
Federal
Reserve
of
Decem¬
discontinued
were
The
com¬
interest
and
place
education
sales
c \
issues
Bond
of
t
'and
series
are
awards
in
sales, with brief lags. How¬
.V'er
B
1959.
interest
(on water
projects,
governments tend
4 The
the-
Put
Buyer's 20-Bond Index, the
monly used general measure
rate
the
regres¬
for
construction
17%
same
bond
period. During the two;
periods,
bond
sales
recession
2
linear
a
construction
ever, the amplitude of the flucti ations :•/ around - the
regression
lines is much smaller.. As noted
may
'measuring
in
Jan¬
1959, the
general sort of contracyclical pattern that was found in
swings
moderate
contra-cyclical swings in state and
local government bond
be
obtained
by
put
local
of the extent of the
measure
Between
about
Contract
^
the
rather
to
sewer
tion
the
appears.
con¬
the increase
has
been
about
42%).
If
not
eliminated, price level changes
of these magnitudes tend to ob¬
scure the cyclical pattern.
Thereafter,
gradually
moving
and
August,
public
on
amounts
and
and
increase
average
bot¬
recession.
decline
One
to
12
a
to
The
sales
during the
of
rate
are,
bond
rate
centered
of
the
next
for
peak
a
months
awards
dollars?5
1952
costs
nclicy. As noted earlier, the pat¬
tern
12-month
bond sales, construc¬
contract
uary,
suggests that they are
moderately sensitive to monetary
reach
of
struction put in place by state and
local
governments, all stated in
gov¬
covered
about
averages
as
•
"
other"
figures are residuals
by
subtracting
the
education
sewer
and
water
b<"nd
sale
figures
rV'a'ncd
and
statistics for 1952
through-' from the ftal bond sale figures. Because
Buyer. Frr of the broader coverage of the IBA series
period from mid-1956
through 1959, en education and water and sewer bonds,
the statistics used are
those compiled by
the
residual
"is
thus
correspondingly
the
Investment
Bankers 'Association
or
from
The
Bend
the
America.
smaller.
Since
the
two
series
comparable,
they
are
jvithout adjustment.
linked
quite
together
are
/'
5 Deflated
merce
by the
orice
index
+''"v i
f
'
of Com¬
public con¬
Department
for
all
struction.
All
A" NEW
of these shares having been sold, this advertisement
appears only as a matter of record.
ISSUE
50,000 Scares
'
Great Lakes
Natural Gas Co., Inc.
,
,
con¬
pro¬
sew¬
shown
bond
move¬
bond
contra-
a
cyclical pattern similar to that of
paper
are
ex¬
re¬
school
not followed
than
and
local
ahead
go
contra-;
However,
the
and
sensitivity
to
On the other
shown
contra-cyclical
and
cycles
that
projects, the other types of
and local capital
projects, as
nounced
respect
of
do
or
noted
water
of
The
to
12
a
state
QUINN. NEU & CO., INC.
sewer
ment.
data<t
the question:
on
with
types
have
Common Stock
and
move
cyclical
a
part,
the July
and
awards
local
the
put in, place have shown
tendency to
state
in
the
behavior
ernment
rates.
Similarly, water
and
Can
•
these variables
other
most
monetary
the
residual (excluding education and
moving average is used to bring
cyclical trend. The marked
relatively insensi¬
interest
less
than
state
cyclical pattern.
out the
awards
earlier, the highest levels
work
volume
1952.3
reason,
peaked
months centered .around
tive
govern¬
the
proj¬
be
February-
Contract
attained,
local
and
to
much
so
from"
before
to
the
causing
dates
school
being
f"ct,
trend
which
out even
r
100%
mm.
to
vol¬
attained
umes
As
sales
timing of the sale of large issues.
Place,
substantially
board
policy.
and
sewer
monthly bond sales figures are total state and
local government
highly erratic in behavior, a fact bond sales
but with greater am¬
which is due, in
phrt, to seasonal plitudes.
Cr^mrrre,
sales,
where
sales
respond
tion
>
bonds
bond
During the easy money period of
1954, school bond sales did not
with
state
on
ment
out
because
restrictive monetary
policy
or
less evenly across
a
little
interest
of
market? The record of school and
water and sewer bond sales
sug¬
gests that the latter is the case,
post-re¬
cover
singled
were
treatment
of
half
gardless of the state of the money
work
Data
used
1957
peak
in economic activity
This evidence suggests that
sc' ool
bond 3ales and
school construc¬
Due July 1, 1975
}
rates
data
types
projects,
projects
con¬
expansions.
The
The
of
government
postponable
various
more
er
evidence
respond substantially to lower in¬
J
cession
of the
year
be
more
the
construc¬
construction work dur¬
ing the first
tom
Monetary policy clearly af¬
fects
started
-
be
construction.
for
$500,000
in
put
place, the state and local govern¬
1.958,
STATE INDUSTRIES
v'<
are
cyclical deviations from regression
period
cut
during the recessions. Residential
construction has, however, played
a much larger role in
raising the
L
can
uses
about
considered
were
Does
construction
They
special
projects.
throw some light
maintaining the vol¬
total
move¬
trie basis of the
On
in
the
education,
local
and
capital
recessions, state
quantitatively
than residential
sales
three
for
account
other
both the 1953-1954
government
below
categories:
readily
decline
a
into
the
re¬
expansions,
schools and water and
govern¬
been
of
ume
For
contra-cyclical
state
con¬
place,
percentage
concern,
v.
are
shifted from the final stages of the
boom to the recession arid recov¬
1953 period
offer
local
has
important
project is usually
a period of many
a
local
bond
down
state
ects
factor
Similarly, in the most recent
cession, school bonds sales did
ln'LndrhrtiSemen''
bus these
of
is not
dampening
spread out over
months.
In the
had
,
.
to
fact
proportion
through the bond mar¬
ket.
In addition, in the case of
construction
put in place, there
sale
not
sold.
This approach proved in¬
adequate on two counts.
On
the
one
hand, it understated the impact of mone¬
of
Used
bond
the
reasonably
government
which
governments.
Approach
in
Bulletin, No. 3, April
1957, pub¬
lished by the Investment
Bankers Asso¬
ciation of America,
Washington, D. C.K
It was based on an
analysis of State and
but
way o** another,
restrictive mone¬
of the
and
pattern
tical
local
one
impact of
policy
designed
govern¬
awards, and con¬
in place should be
exist.
no
be
cen-
Congress
legislation
will
due,
substantial
than thosepf residential construc¬
timing relationship to the cycle, it
1 Two
has spent a
sizable portion of its
time consid¬
ering
bear
sub¬
than: those of bonds sales.
princi¬
employed is
The
ments of these variables tend to
coincide with the
business-eyelet)r
to
is
much
are
substantially smaller in amplitude
govern¬
only
to students of
issue.
the
be
not
banking, it is
political
is
paper
impact of monetary
believed
ments.
this
contract
a
*
of
fluctuations
of
^significant
tomonetary - policy,
a
degree
expected
tight money policy.
by
cycle
Bureau
local
and
put
extent
business
Considering
and the 1957-1958
struction
a
and
two
6.5%
on
bonds sold.
the residual of all other
in
data
bonds
in
of
rise
a
construction, and
of
that
of
state
and
in
sensitive to
struction
significant
put
reference
National
to
objective
the
to
the
the
ments
contract
construction
(in their purchases of
durable goods), are not
restrained
The
sales,
in
tion
somewhat smaller.
place
sales,
and construction
of
awards
dates
contra-cyclical
in con¬
apparent
parable
contra-cyclical
to
monetary
20%
14%
a
rise ; of
construction,
composed
periods,
and sewer, and all other/*
Education and water and sewer
the
From
the
water
for
pui
This
state
and
construction.
residential
of
broken
ally adjusted) rose by 7%. This
rise during the recession was
place by state and local govern¬
ments.
However, the amplitudes
ery
consumers
any
ac¬
also
The
types of construction.2
examination of the fluctua¬
Economic Research.1
local gov¬
business. At' pal hypothesis to be
alleged that
of borrowers,
other types
large
since
period
and
ernments, and small
the same time, it is
notably
of
economy
tary policy is borne by residential
certain
almost
covers
postwar
is
re¬
residential
of
expansion
averaged
values.
trend
7%
troughs.
financed
The analysis will take the form
1
the
of
the
and,
policy.
during
generally prosperous periods. Spe¬
cifically, it has been charged that
the
important, it
of
was
shifting about 10%
periods.
A definite
the
sales
all
ment
state and
and
cycles
cord of 1951 reactivated
Frank E. Morris
unduly restricting certain
sectors
business
the Federal
f
o n s
the
of
awards
place by state
governments during the
from
1952
to
date.
Al¬
complete
in-
t i t u t i
contract
mainder
contra-cyclical proceeds
the
to
local
of 3%
smaller
study
sales,
bond
of
sales
in
local
period
control, oper¬
ating through
the existing
financial
behavior
recession
tract awards
de¬
though this is a relatively short
period of time, it does cover two
monetary
s
the
and
of
o
investment
The conclusions reached
one.
and
the boom to the recession and
pattern
elusive prob¬
an
the
the
July 1953 peak to the August 1954
recession
trough,
for
example,
construction put in place (season¬
of
bond sales from the final stages of
(2)
is
invariably reflects the in¬
of a complex of factors,
the monetary climate is
construction
and
structure
because
construction put in
present
techniques
policy
monetary
in this paper are based on a
of
It
that
tools
of
of bond
rate
resulted in
;
fluence
been
charged
our
lem,
the
economy.
I
effects
certain to find it
behavior
Roughly speaking, the pattern has
covery
current
tributable
moder¬
be
to
appear
the
around
put in
future recession at the local level
a
however, may
of
presenting
reached in the 12 months centered
place, and experience is said to suggest that contra-cyclical public
works
to the sta¬
economy
since
significantly
bilization
ately sensitive to monetary policy.
Since 1952, they have followed a
fairly consistent contra-cydlical
pattern.
In both business cycles
severely curtailing
or
concludes
^
(1) State and local government
period since 1952 covering two
Far from throttling
projects,
tr<but°d
V-:
two
averaged
4.8%
above
regression line. During the
the data, it 1952. One of the unusual features
of
the
past two recessions has
may be useful to summarize some
of the most significant findings. been the stability of construction
They are the following:
expenditures. This stability is at¬
Investment Bankers
penalizes State and local government public works spending, analysis
shows
Findings
The
of America, U ashing ton, D. C.
"hot
'V
..
Before
By Frank E. Morris,* Research Director
:
-
the
con-' sales
has
work
'
Underwriters
40
}/
-
Exchange Place, New York 5, N. Y",
BOwling Green
9-6282
"
.
'
Number 5916
Volume 191
the
.
The Commercial and Financial
expenditures were financed by
borrowing, 33% were financed
current revenues and baland 8% were financed from
aid.6
In a tight money
market, even some of the borrowing will
be done short-term,,
lowing
w
from
ances,
Federal
_
The behavior of the series on
education bond sales, contract
awards and construction put in
place, all stated in 1947-49 dollars8
since 1952, suggests that the level
of interest rates is not a dominant
the per-
shows
below
I
sales,
contract
awf+ and construction work;
58 regression lines for bond sales, and
SOn?e jnclinacontract awards and construction,0 a T ud
declines to
7;
tight money.9 However, the fact
deviations from the 1952-
in F
place
nut
p
6
.
,
during the years preExpenditures
Capital
of
and Local Governments, 1947-1954,"
Robert f. Drury, in Construction Review, June 1956.
7 The single exception was that during
the 12 months ceintered around the 1958
recession
trough,
construction
put
in
by
place
(although
than
during the
1957 peak)
July
below
is
the
7%
averaging
year
fell
regression
higher
ending with the
somewhat farther
In
line.
attributable to the extreme
1957-58 recession.
part, this
brevity of
.
'
.,
started
durin£
in
the
these series
receq^inn
Associates
and office
the
index for
buildings.
is
the
seems
sil¬
a
turer
little
entire
doubt
that
Nov
index
Business
.'■■+,/
; +
The mediator who had
Contract
awards
—
4.8
+26.6%
+
2.1
+11.4%
+ 3.4
—13.5%
—
3.5
strike
vote
RichaM E. Kohn to
feeling there
—
data
which
New
become
School Year
5.3
+3.6
—
1.1
—
%
Enrollments
1947
23,659,000
1949
24,477,000
25,706,000
27,507,000
30,163,000
32,339,000
34,620,000
37,196,000
39,187,000
41,484,000
1951
1953
..
1957
1959
1961
(est.)..
1963 (est.)
1965 (est.)..
U.
S.
accepted.
Kohn
Students
T
Increases
Co.,
the
of
in
partner
to submit
Exchange
Clinton
20
New
York
818,000
1,229,000
1,801,000
2,656,000
2,176,000
2,281,000
2,576,000
1,991,000
2,297,000
3.5
5.0
7.0
9.7
7.2
7.1
7.4
5.4
5.9
Office
of
Education.
reported to have
trip, he is
told Mr. Nixon to take over.
most
enough
Strangely
of
criticism
thereto
investment
O'Connell & Co., Inc.
ness
-
could
in New York
clerk and trader
a
as
Street
Wall
a
house.
Mr. Cornwall became associated
Houston Stock &
as
of
member
a
Corporate Bond and Syndicate
in
1958 after
five
previous years of service with an¬
Department
Chicago Analysts to Hear
he
.1951
to
firm
investment
other
in
was
Corporation will be guest
1949
from
Personal
the
New York
Trust Department of a
commercial bank.
Dempsey-Tegeler Branch
LAWRENCE, Kans.
CHICAGO, 111.—Harold E.Church¬
Packard
& Co.
Blair
with
the
14
get.
Criticism
or
the
for
stock
time
If the steel companies were
raise prices it would be a dif¬
Tegeler
—
has
Co.
&
Dempseyopened
a
branch office at 840 Massachusetts
Street
the
under
Ivan D.
of
management
Rowel.
have
Oppenheimer, Neu Appts.
Hotel.
Midland
Neu
Oppenheimer,
Broadwav. New York
With Nehring & Ricketts
change,
&
appointed
have
120
Co.,
City,
mem¬
New York Stock
bers of the
ELGIN, 111.—John M. Johnston is
now
with Nehring & Ricketts, 4
South
story.
steel
'The
the
the
criticism,
no
being.
ferent
at
.
,
settlement has boosted Mr. Nixon's
to
in 1929
with
The Democrats speaker at the luncheon meeting
of
the
Investment Analysts So¬
not want to be put in the light
ciety of Chicago to be held Jan.
objecting
to anything
labor
of
up
his
'.Homer
firm,
Republicans.
from
do
headed
he
City from 1946 to 1958. He started
his career in the securities busi¬
the ill, President of the Studebaker-
of
settlement comes
the
of the Institutional Sales De¬
own
Ex¬
Wuest has been a
Bernard, Winkler &
.
•
joined Blair &
1958 as man¬
Prior
St.
Bond Outing
Eisenhower left on his four-conti¬
nent
Assistant Vice-Presi¬
as
partment and Vice-President and
Director of the investment firm.
partner in Richaru
a
&
Covi.v;./N.;
associates
his
and
Presidential
SOURCE:
;
members
*~tO'
-
1.6
D.
Andrew
Incorporated in
ager
.
Ending
1955
E.
Stock
York
the
will
by the
Relations Board,
was no use
Executive
as
and
O'Connell
Mr.
Co.
at the
Labor Department are said to be HOUSTON, Tex. — The annual
are stated in
1947-49 dollars.
burning over the manner in which outing of the Stock and Bond
TABLE II
'
A++ +
they were given the run-around. Club of Houston will be held on
Insofar as Nixon's participation Feb. 19, 1960, at the Brae Burn
the Public School Population, 1947-65
Country Club.
was concerned, it was at the direc¬
Public Elementary and
Increments for Two-Year Periods
Secondary School
Number of
Percentage
tion of the President. Before Mr.
.
Growth in
have
O'Connell
dent.
Admit C. P. Wuest
believed^ change.'; Mr.
he
Andrew D. Cornwall
O'Connel
Cornwall
conducted
was
J.
Homer
Vice-President
worked
submit it after the
Labor
National
negan,
'Reflects
would
sides
He intended to
i
place.
Ex¬
the
anything until this was out of the
Construction put
in
which
-package
both
,
Centered around Ending with Centered around
Aug.'54 Trough July '57 Peak April'58 Trough
—10.7%
sales
est
Lines*
12 Months
July '58 Peak
Bond
Regression
,
Ending with
see
deal.
better
Percentage Deviations of State and Local Government Bond Sales, J long on the case is understood to
have prepared a much more mod¬
Construction Contract Awards and Construction Put in +
1952-58
Stock
industry closed down than
other manufacturers still
Homer J.
statement.
From
York
20
mem¬
steel manufac--
Week, the
TABLE I
Place
a
.
the
X
or
would much- rather
general surprise
Cap„ehart, another Republican of
21, 1959.
:
Indiana, feei+ the. sak.c; way al¬ NEWARK,-N. J.—On January 21,
Christopher P. Wuest, member of
Continued, on page 30 though he has made no public
for exampl
of
there
a
Butler, a Republicanfrom Maryland, has denounced the
settlement as a political deal, not
collective bargaining.
Senator
school construction* costs.
issue
manufacturer
platter was
much
used by the U. S. Office of Education for
;; 9S
handed the steelworker&mn
■+ Senator
E. H. Boeckh and
apartments, hotels,
This
New
City,
change, announced the election of
industry was pressured into to see
accepting it. Kaiser, who had operating and pulling his business
signed up weeks before, got a away from him. ;■
•'
by
the
of
Incorporated,
time.
a
the
well
uuuiig me recession, Weil
before the Federal Reserve moved.
8 Deflated
operate.
and
,
..
that the declines
+■-.is
.+
"Financing
State
.,
.
Co.
They strike one plant at
They play one company
against the other. An automobile
Secretary of Labor Mitchell.
; I
The size of the package which
Nixon
and. Mitchelll; practically
ver
cu
,
&
St., New York
There is increasing criticism in if no settlement had been reached
political Washington, from Repub¬ before the injunction against the
licans and Democrats alike, over strike ran out, McDonald intended
the steel strike settlement which, to confine the second walkout to
according to all accounts, was han¬ United States Steel. That's the way
dled by Vice-President Nixon and the United Automobile Workers
Qr
bond
Blair
Broad
bers
^ctof
in, determining
theconstruc_
volume
Qf school
bond sales
sc^ool
By Blair & Co., Inc.
CARLISLE BARGE RON
BY
15
O'Connell Named
Ahead of the- News
...
of funding the debt ^on
Considerable concern', has
at lower interest rates at some
been expressed in recent months
future time.' ■ 1
,
;
''
. )■ about the downward trendv in
Table
(167)
FROM WASHINGTON
with the hope
eentage
Chronicle
evident.7
example, 59% of capital
lor
,
ceding the 1953 and 1957 peaks
and during the years centered
around the 1954 and 1958 reeession troughs. A pronounced contra-cyclical, behavior is clearly
the principal reason for
smaller amplitudes m contract awards is that many- state
ond local capital projects are not
financed through bond sales.
In
earlier,
1954,
.
Ex¬
Fred
of trading foreign
Meer manager
securities..
Grove Avenue.
operators say they
immediate intention of
no
although -the set¬
to. add about
§2'billion -to their expenses of op¬
boosting prices
tlement is expected
has .led
This
eration.
'rftemen/
reports,
to
At the Close
Wash¬
ington; that they, gave Nixon a
promise not to increase
prices
widely prevalent in official
Cash and Due from
oubtful if this is tru*, but
the fact remains that the wage in¬
United States Government
i
t
.
crease
given to the workers as dis¬
tinguished from the fringe bene¬
fits does not become effective until
next December P.
That is after
the elections.
The wage increase
the largest part
is
of the package.
meantime, aside .from
the
In
the
political quarters and
possibly elsewhere, the great ma¬
jority of the people are glad to
criticism in
strike
the
see
settled.
State and
715.881.20
Stocks
It
serious-a
economy as
Bank
606.148.21
Building
748,883.46
Other Assets
$75,058,619.44
4
•
did the steel strike;
Senators are
receiving all sorts of mail demand¬
ing that the unions be placed under
the antitrust laws.
No one union
Congressmen
24,712,212.07
Loans and Discounts
caused
present just as
to-the nation's
would
threat
5,927,176.16
Bonds and Mortgages
Undivided Profits
ahead.
16,740,060.48
2,780,304.27
possible railway strike is looming
has
14,914,842.94
Other Securities
Capital
Surplus
settlement
.$ 7,913,110.65
Securities.
Municipal Securities
the
heat to be taken off Congress for
additional labor legislation, but a
The
-
Dec. 31, 1959
Banks
vember.
i
on
elections next No¬
after the
until
^
of Business
and
$ 2,662,000.00
6,000,000.00
1,000,000.00
933,258.07
General Reserve
Unearned Discount and Other
•
Deferred Credits
Reserves for
Taxes and Expenses
193,701.66
86,420.77
.... »
64,183,238.94
Deposits
$75,058,619.44
these let¬
should be able to tie up
dominated by one man,
ters
say,,
the entire economy
of the country.
however, that it
was
David McDonald, the steelworkers' President, who demanded
The
truth
is,
companies negotiate sepa¬
rately. The companies wanted in¬
dustry negotiation and only agreed
that the
to
separate bargaining at the last
KINGS COUNTY
COMPANY
TRUST
Established 1889
FULTON STREET at
fn the Heart
Mrmbtt
the
corner
moment.
_iory
.
3
-< >V
in Washington is that
.
'
."'I'
of COURT SQUARE
of the Civic Center,
Itdrral Oeponf Iniuicnte
•>
t
Brooklyn
Corporation
>
16
(168)
he Commercial and
Our Reporter
R. A.
on
CHIPPENDALE, JR.
j
Street.
improved
in
which
tone
has
ward
evidence in Government
securities is being looked
upon in
most
quarters
as
a
rally from
what is termed a
the
oversold
market
caused
the
distant maturi-
issues
breadth
which
and[
The new money
tion and the
have
Treasury bill-are
of
ting around
to
now
giving
for
January
fixed
in
more
that
President
*
for
the
bearing obliga-
It
the
is also
:s
by
that
the
billion
for
the
fiscal
June, 1961 had a fainfluence on Government
These two .forces,
Central
no
Banks.
It
is
evident
higher interest
question
but
rates. There
what
another
gations, brought about
of
a
jpitL
ctill
still
rally
issues, especially those with
a due date of
more than five
years,
has been attributed
to the demand
from state
pension funds, as well
as a
somewhat improved
interest
from the small
individual inveswho, according to reports, are
putting money into selected
tors
Fedthe expense of
saving and loan
Government sav-
bonds.
Capital Gains
cr moo
large discount
Treasury
hoftor return
a better
return
gjve
for
u»
"advance
•
■
to
■
thai
that
CHICAGO
111. —At
the
thjedThahctai
drancp
ing
to
to
guest
speaker
will
^Lacz,
member
of
Slade
by
the
Treasury
will
be
way or another in
to
the way
open
been
-
be
y
Law degree from Erlangen University in Germany and a Master
of
Science degree in economics
firm
Hill, New
consultants.
from
xT
Columbia
He
is
graduate of the
,
T
Institute for International btudies,
Geneva,
a
Switzerland
and
at
one
time attended courses of the-Lond°n School of Economics,
n
\A/HTCTTnQ
R
a
senior
needs
If
telling;
quoted.
clients.
you
business
-1
*
11
-
t
a n
as
of
one
country's
J
O 1 d e f
Oldest
and
c o m-
'and
fi-
and
factoring
i
or"
a
s
a
nounced
Paul R.
Mr.
the year;
you
are
EDWIN
of
Wiggins
it
n
Chronicle,
a
iever
a
previously
ancj
space
P
is-
age
6
awaiting a new soundand-picture recording device
developed by General Electrie. When it turned out that
ic
far
frnm
•
n„r.
.
P
,
to
re-
yield
the cash
and supplements it with
C.
■
■
■
Chronicle bound
not
delay.
Technical
by
weren't
sma^ stock dividends,
A transition
in A.
O.
rnodities
its
XLO
slide
31HUC
downhill
UUWttiiiii
the
In
Mr
resistance
around 666
by
a
level
good margin.
That leaves th"e market without
^
^^
aMearcut
^
■' tJiccti m t
"floor"
i fuui
under
well
which
special
better
your
serve
your
Dec.
■
m,
,
sup
,
f
of
p
1
.
,
iui
for
the
me
muvc
move
could
be
uc
caex-
.
to
return
the
to
«
shares
bee"
but
so the
anything
more
indications
favorable,
booming auto business, plus
the rebound with steel sup#
i
it
makes
for
candidate
-
a
better
fimiroc
treatment^ when the figures
S^art
estimates
with some
indicating that on
basis of full year results
present price is less than
emerge -
were
__
10;times earnings. The indiTeSU}}?
great turn-
no
of
as
the
the
new
e
the ln<?us,trlal
k
^°5, ^sca^
^ong Vflwl a Small otock pay
Ment
downward
^tly,by t h e persistent
^i
.
SSSS»S
continued
section
carried
loans, in-
wonder-
.
Volume
a
mortgage,
hnvp
have
worR6rs ln the market: The
the
#
choroc
Smith,1
the
*
,
^
A°§lcal
low
low
com-
10n hut clinging grimly..to
a P^us SIgn °n the year, the
only one of the indices that
Electronic
Laggard
Philco would
statisti.
seem
cally to be the laggard-in the
electronic section, well below
H
neak reached in 1955 when
^en
frmn
apsales
financing, could make th^t claim tBic
earninSs trom.tne tnen p
and
factoring and
rediscounting.
rediscounting. Ofi„
;
claim this phance company were plumfices and subsidiaries are
earjy jn the young year. The
located f?aA
oomnanv
meting
r..,
Since, the company
t-:i^
.industrial
ic
average meanwhile has stressed electronics, and
Boston and
dustn?1
time
factoring
i
-
w
^
YorTchfrago? Detroit,
Atlanta.
1
tan
,
Philadelphia
inc.
has
#
busine4° Offkers'"re
Albert Teller Co.
v
C„p.
Mr. Girard
Y.
i
Corp.
was
with First Central
i
•
was low for satellites.
The
appliance
a?^' Wt
and
f
sucf£ as .HuPP- business is believed pretty
Fairbanks'Whit'^
Ti" Cf°Se to. suPPJying only half
airban^s Whitney ap- of its sales, the non-consumer
nf re,?U f y *n
lines in position to become the
•f.T
Th.,e
around in
ote ]
the
gory that held
Greenbaum
transistor business arid is deep
in the field of making devices
A
*
t
v?lume. leadership
been
a'.iMin»icfs in the Lewis
Alfred, M. Sharp,1 PresidentJoseph S. Girard, Vice-President-
r->
-j
had retraced all of the ground usuaTlV rated
beinc either
IZber
'
g
h^
"°
pS Sjthe;
as-
Securities,
securities
.
z
PHILADELPHIA, Pa.—Metropoli-
and
25
as
^he^steel strtke cut^
^.i. re ^^lliess, °*
'
•.
eventual
31,
™rt.TDMq'*r'a„s"'r;
lormerly
BECK
heaters
estimated
™
are
Plles available,
associaiea
associated
Credit Com-
financing,
and
Pas. oil
equipment
it, and the possibility that the
market.
in'aH phase^of Mustrial
finance: accounts receivable and
.
oil
for„011 and natural
"
rOw,,+ln
expected
announced his
Wiggins "is
much of
.
iiiuuv
fell through the
confidence
on
auto-
on
so
:Its business. Today its big
profit d,vision makes lme pipe
indus-
vnv
trial average
have to be tested before
gagld
sets
be gladly
also made
was
Smith to reduce the
mntiTm
fro
motive
frames for
considerations
overly favorable.
real
import-export
Tower
Write
on
sales.
will
been
Deen
under
a
Dlvmff nearly two-thirds
..
and Jater jpeeiahzed
m_the fi- sturdier
nancing of
inventory
S
b.
fifth
a
sueV'had" been sliding" down- company's reliance
Silverman, pected
Wiggins, who
equipment
branch
Thomas
Park Place, New
York 7, N.
Telephone REctor 2-9570
-
...
missing. Prices will
L.
e^ec^ronjc
spark one
-,
days the
„
For
BafSSr?-Frs-rg department, tempts. Rails
284 St'
284'
state'street TnTeV
Be prepared
with complete
sets to
It pays!
Care of
,,
aioJ
R.
retirement at the bank
.
Plowden-Wardla
interested—do
although
able" to
were
also
James Talcott,
Herbert
As-
quarter.
of
the
York
D
d i r e c t i o 1
direction
rare
troubles
Spjrited rally.
conA
-
of
William
wmiam
some
stocks'
„
these
first
.
99ni7?if inpQ
of mutua!
Morris & Co. has
opened
are
"glamor
their
,
Iiic.,
20
'.
OPPORTUNITY
are
at
rate
The
the
however, is avail-
Re-Sparked of more than 5%
X*
new
Formed in
limited time there
available.
a^e
.
tVlB
Wiggins,
largest
r' mutual funds- Ira
1
at
"Glamours"
-
T^onl
s u
Prevfoushi^Assistanl
re-
the
The
in
last year's high, offers
hill
_
Metropolitan Securities
YOUR
re-
A
°
,
Walston with the Commercial
lay.
For
i
The stoc^
f
.
New,, had
University,
,
York
and
and
organization
^
the. off^
office
,
chemicals.
'
Nicolas
the
a
-
analyst
ranting
rancing
Jan.
&
*
for "for-
ueen
_.f
Doctor of
a
industrial
Morr» °Pen» Branch
not-too-distant future. This
would
appear
change in the inventory
vaiuation method slashed
'F«»rT 7 ™'w
con«rned,
long-term bond financ-
moved one
^
,
persistently under v pressure,
including steels, autos and
James Talcott,
^ "Fr0m
s|] 'la v,
at this hin-
4
holds
-
^
dl^tr^t^ha^tv
inn«
has
---
economic
.
He
meeting of the Investment
Women of
Chicago at 6 p.m. at
the
Chicago Bar association, the
?,9L?1V1JIOn\in char^e
are
%
uTbeHcvPtH1?0ndS is
Co.
—
~
and
1944.
noinfed
Jtton^as^As
sistant Sales Manager
in the East-
wind.'
-tow11 th.ough poIitical fevers
financial
&
ana
Assistant Vice-.
j
President of Bankers Trust Co. for fected
they were quick
(he past 13 years, has been
ap- bound..
■-S'S
: Zi
issues
than
than
dinner
i°ined their
-
in the
Witter
U
8 ^
refunding"
■
be
senioi
Women to riear
Bsa-awrc$51
of
Dean
PauI
sms £ rbg
seems
new
mercial
T
Inv.
,
gram
t-
doubled
_
funds away from
mortgages and
other legitimate
business needs,
0?biUbAnhgi.niirit,0 th^a type
'
only the eyenlual caS
IZZl ***** FaUci With
which
Impact of Inventory
Accounting Change
-
of
«
President.
sell-
are
stiffening
Francisco.
of attraction
but this would take
at which cer-
securities
.
plenty
investors
management
Factor
a
Ji
,
credit, thenon-Federal
Rogers,
The
added
,
,
mar-
°bllgat'ons and.
tightness of money
nfTh
have
ment
at
has
-
„
,
However, a long-term
Treasury issue with a high coupon
m
The improved tone for
Govern-
obligations
but
mix,-
tightening of the discount
FaUl K- WlgginS
which is available in
Government
securities.
these securities,
the savings
banks,
associations and
cable
*
the
various interest rates, and the
expectation that another
Z? J OinSJSmeSTaiCOW
the
along
the quotations
*
and
screening, alloys,J tool steel,
dies and others to its product
the'
.
since
u,.4
^TnTh'e
forefronfof
5 ' Jr forefront
of the
Treasury obli-
tain
i
....
wim what
with
w imi
seemed
accintu to
iu have
irnvc been
an
vcvit <tu
oversold market for the
more distant maturities of
ings
;—
ncrease
in the prime bank
rate
.vill result in another
boost in the
discount rate.
ended
bonds.
of
The
mav
competition from corporate and
vorable
dePart~
San
the cost
n+k^k"*<■!!
of
borrowing from
comes
very
prediction
Eisenhower
plus of $4 2
eral
no
that the demand for credit is
going
to be sizable for an extended
period of time and
usually with ail
enlarging of the need for funds
Evidence
—
year
in
higher rates
•
investment demand
settlement.
evident
responsible
kers' loans from
5% to 5M»%
je the
forerunner of
tions continues to be
sizable in
spite of the renewed inflation
psychology engendered by the steel
strike
^yas
..M
bro-
,
income
Steel which has been
expand-
ing busily and diversifying as
it goes! along. :It once was
maker of only insulated wire
Gradual
dent and head
of tbe !nvest-
General Rate Rise Expected
The upping of the rate
for
to
Better Demand
de-
days
going into this week which
was in
striking contrast with
all the glowing year-end predictions
and
all
the
high
promise supposedly offered
by the Golden Sixties.
:
of
A
as
ment
staffed
handful
a
*
Vi ce-Presi! *
ment
stocks
for
Bing
served
~
*ith |n
opera¬
out of the
the, February matu¬
rity which will most likely be
refunded with a
package deal.
The
and loan account
Tnfinotr;ai
^
and the money market is
get¬
attention
Dr.
This
Treasury tax
senior
-
analyst;
<
refunding of the 12-
way
a
as
'
.
^
—----
volume
raising
V
p0rted earnings in its 1958-59
rate is only a matter of time,,
small measure for the
.fiscai year when under the
C o m m o n
Ralph A. Bing
rmich higher
old
weighed
heavily on investrate required on the
onj-year bill. wealth group
syStem a good increase would
ment
fhe-commercial banks were not °fmutua
sentiment, and iprices. nave
Franri^PO
un s in
have been
wj-'vi
reported.
And -its
doing the underwriting of the
^
eroded easily on the slightest
year
0ff to a good
15, 1961 maturity.
reselling as a result, the quality start
search department of Sutro &
Co., stocks
earnings almost
were
the
ones,
most
activity.
month
5.067% basis.
a
Stock
Exchanges,
anticipation
payable through
an(j
near-term and inter-
term
real
tax
not
was
Pacific
-
ties, it is the
the
22
which went at
offering
activity in these obligations. Even
though there is more attention
more
and
money ven-
bills
ernment
securities
and
this
has
tended to increase the volume and
for the
June
the
York
Coast
new
^jus ancj their
payment by means
0f the tax and loan
account in the
deposit banks paved the wav for
the $1.5 billion of 12-month*
entirely by year-end tax
selling. To be sure, there has been
a
pick-up in the demand for Gov-
now
New
by
Treasury through the
0f
use
al-
of
,
The successful
ture of the
most
mediate
financing''
Government.
V-
badly depressed
and
(maturity)
;
~
clineg
Mem¬
bers
been
AND YOU
....
BY WALLACE STREETE f
FRANCISCO, Calif. *— Dr.
Ralph A. Bing, well known economist and
security analyst, has
joined^Dean Witter & Co., 4-
Montgomery
The
.
SAN
'
T.
Thursday, January
..
14, le
1960
THE MARKET
Bing Joins
Dean Witter Co.
GOVERNMENTS
BY JOHN
Financial Chronic
activity ■»-%.
. s „ e s
low-price
cate-
mef
Prog,
made
J
by
,Lo
Philco
^
^
«
P.
been
the
data
P-essi^tuaehinery
field alyet,
to some
of the market analysts,
nota- though not,
Ul„
r*
^
in
4
as
mteninftc
with
cinpp
any
nP-
■
Number 5916 ....The Commercial
191
Volume
not starting until
this year. In transistors, par¬
ticularly the high-grade type
in which Philco has been the
only maker, the profit corner
was only turned last year, so
the real benefits are not yet
liveries are
,
pparent.
rr
*-
recently even in the
glowing predictions
auto sales and the
mundane
of
face
for
new
prospect of the rubber com¬
panies having a boom year in
I960. The companies long
since diversified their prod¬
ucts to where tires represent
only about half of their busi¬
ness
tant
the
of
Mr.
The
—
Board
in
in
Dovenmuehle
President
of
Director
and
He
1923
of
the
a
has
organization
Vice-President
President,
Mr. Dovenmuehle.
Mr.
succeeding
of
the
Chicago
Presi¬
Mort¬
gage Bankers Association for 1960,
has spent his entire business car
reer
with
the
Dovenmuehle
his
release
firm.
in
from
Western
Stone
,
1945
He
joined
following
World
War
II
Mr.
Thornton
muehle
from
Assurance
where he
on
came
the
Equitable
Society
of
Life
specialized in mortgages
buildings,
retail
department for
investment
Los
Federal
on
the heels of
and
a
Detroit is
some
of the major developments
car-building customers
Ford from
showing up among
the many selections of issues
likely to have a good time
of the future"—an 80-inch,
So
Steel, we're increasing ingot capacity by
A NEW KIND OF PLANT FOR A NEW
a
totally
steel and other flat rolled
coils to be supplied by our
operations.
.
the steel strike. The company
STILL MORE TIN PLATE
plants in Weirton, West Virginia, and
els to have announced
tin
larger
increase the
existing plant facilities and
haggling
and architectural
our
work rules, to
Stran-Steel
for our Enamelstrip Corporation,
plastic and enamel pre-coated
Indiana, we have enlarged
steels in coils. At Terre Haute,
The pressure settlement in
the steel
strike, without long
over
48-inch coating line is being
produces a line of decorative
which
improve the processing
improvements include facilities to
installed at Allentown, Pennsylvania,
%<
•
lines and two electrolytic
production of cold-rolled sheets.
OTHER NEW CONSTRUCTION. A new
;
V
Weirton Steel Company
Steubenville, Ohio,
Weirton Steel already is one of the world's
largest tin plate producers. Other
during 1959, which
happened in some
❖
our
plate lines to increase production and
of tin plate.
spring. It took over the
1
spot with the Ford
,
CAPACITY. At
we've installed two continuous annealing
compact one,
mid-America
consuming districts. These products
will be finished from hot-rolled
Detroit
Steel
galvanized sheet
products for manufacturers in
of the nation's largest
—one
mostly because
production helped
the models during
years.
750-acre
plant for our newest division, Midwest
new
apparently is sufficiently en¬
couraged with economy mod¬
model
a
Michigan shore, we're
Corporation. From it will roll electrolytic tin plate,
Ford steel
hasn't
this division alone.
DIVISION. On
Portage, Indiana, on the Lake
building
far
competition,
this
and strip
America's biggest steel customer.
500,000 tons to 4.2 million tons a year for
tract at
Ford's compact car appears to
have gained an edge over the
No.
Great Lakes Corporation in
fastest and most
supply to our
larger coils of sheet steel of the highest quality.
And also at Great Lakes
'■
pects, but that didn't prevent
a
companies.
involved.
powerful facility of its kind in existence. We'll
despite all their bright pros¬
a
will
four-high continuous strip mill which will be the
weight
1960.
follows hard
major supplier of hot- and cold-rolled sheets
a
in the automotive industry,
themselves
under occasional
calls for the
share of the market and consolidate
A "MILL OF THE FUTURE." National Steel's
Favorites Sag
model, but still
most'
significantly better.
Here, we've started work on a "mill
out
will enable
and market more of America's
'
items shed some of their
glamor.
age
turn
•
$500 million investment in plant improvements
our
completed an addition for
Corporation, producer of pre-engineered buildings
products.
many presages an end to the
threat of a rail strike over
featherbedding. This imnression could
pave
the
way
for a
sharp recovery in rail profits,
particularly for the better
with
a
$300 million program now in full swing to
produce more of the products most in demand
ACCELERATING RESEARCH. Backstopping all this
where
for one, has stressed new
and better materials,
it
increased its profit-margin
showing before
believed
to
have
taxes,
kept
The
return
better than 5%,
or
methods and products.
emphasis
facilities for producing more and better
on
made National Steel the fifth-ranked
products for our customers has
American steel producer
in demand.
-
and
a
major supplier of the steels
;
•
•
and is
the
up
progress despite the
strike.
This continued
most
we are
a new
.grade lines. Southern Pacific,
equipment that is paying off
in
efficiency. Through the re¬
cession years of 1957 and 1958
expansion,
corporation-wide research center at Weirton,
National Steel scientists will accelerate their search for new
constructing
steel
here
is
We
are
steel
convinced that there will be more dramatic advances
in the
industry's future than in its past—advances in which
National Steel intends to play a
prominent part.
far above
average.
[The views expressed in this
do
article
not
necessarily at any time coin¬
those of the "Chronicle
They are. presented as those of the
author only.]
cide
with
NATIONAL STEEL CORPORATION
Grant
Henry M. Barlow
Midwest Steel
Henry Main Barlow, limited part¬
ner
in Carreau
& Co., New
passed aw$y Dec. 28
DigitizedCity,
for FRASER
age of 75.
Building, Pittsburgh, Pennsylvania
Major Divisions: Great Lakes Steel
York
at the
Corporation
The Hanna Furnace
•
Corporation
•
Weirton Steel Company
• Enamelstrip Corporation
Stran-Steel Corporation
Corporation
•
George
Treasurer;
G.
Vice-President and Secre-
tary.
position in the front rank of the nation's steel
Let's look at
verely recently as the space
in
and
dent
Jones,
properties which began in 1952. The current program
new
further broaden
our
marketwise
Agent
Reserve
and munici¬
pal bonds and mutual funds. Of¬
ficers are Archie B. Joyner, Presi¬
CONTINUING A POSTWAR POLICY. This program
ship of Aerojet in the rocket
field which has suffered se¬
were
brokers in corporate
expenditure of $300 million over a three-year period. It
high in the case of General
Tire is confused by its owner¬
shares
department manager.
Form Allied Sees.
he was
years,
wanted steels—and to make them
ly better than average and
holding under its 1959 peak.
The larger discount from the
Auto
Dreisbach
GREENSBORO, N. C.—Allied Se¬
curities
Corporation
has
been
formed with offices at 210 Com¬
merce Place to act as dealers and
expansion program already well underway
new
staff
the
Mr.
slight¬
around 3 ¥2% which is
Auto
the
11
which later was
the Security-First
into
National Steel to produce
offering a yield of
of
manager
Angeles
assistant
A
research
prior to that, he was in the
business in Long Beach
merged
apartment, buildings.
research
to
firm.
the
treasurer
Insurance Group. For
and National. For three
stores,
been
will
underwritings
under
the direction of W. Jay Maguire,
a
of
of
Dreisbach has
coordinate
partner of Tucker & Co. For
five years he was director of re¬
search of the First National Bank
America
University
the
at
Gordon
appointed
of
securities
as
industrial properties, commerr
cial
manager
assistant
was
Farmers
Doven¬
of
the
Tucker
years
to
D.
operations
of
Hayden,
Co., 5657 Wilshire Blvd.
past
20
years,
Mr.
&
For
As¬
to
named
banking
Bank
and also a lecturer
California.
Calif.—Elmer H.
been
of the institutional
sistant Vice-President.
-
Buenger, who is also
dent-elect
Department,
has
Tucker
and
Commercial
Hayden, Stone
LOS ANGELESv
and
Dovenmuehle,
but it is still an impor¬
elefnent. U. S. Rubber is
better apparent value in
the group,
on
At
Federal Reserve
the
San Francisco
been
since
company
joined the
as
Tucker, Dreisbach
1951.
Inc., became Executive Vice-President
135 South La Salle
St., Chicago's in 1934.
-v;
116-year-old
mortgage
banking
The Board also announced the
firm,
have
elected
George
H
election of Luke Thornton, who
Dovenmuehle, Chairman of the
joined Dovenmuehle in 1957 as a
Board, and named Theodore H. specialist in the Industrial and
have been Buenger,
tire stocks
The
Directors
President
1955.
CHICAGO, 111.
for
military service, and became Vice-
Official Changes
For Dovenmuehle
*
*
and Financial Chronicle
National Steel Products Company
••
i
.
1.
•
s
••
'
■■■■■!
18
days of linear program¬
operations research, and in¬
ing,
Prices
put-output analysis how compli¬
projections can become.
Over Next Two Decades
For
exercise
By-.Edward S. Mason.* Department of Economies, Harvard
University, Cambridge, Mass.
(I
>
•
to whether we will have low-cost abundant energy
next two or three decades is
in the
,
primarily confined to oil—what happens
geographic distribution and its f.o.b. price from really low-cost
areas
possessing super abundant reserves. The author doubts uncon¬
ventional
will
sources
^
our com¬
>
petitive position in the world.
lems have
increasingly demanded
attention during the last
decades.
How can we feed
unconventional
real
the
of
rate
national
income
few
pear.
is
rapidly
growing
world popula¬
a
tion
from
arable
land?
And
h
o w
c a n w e
meet
rapidly
increasing
ments
We
that
costs
they
least
—
will
ball.
It
certain
seems
that
fraction
of
ments.
at
within
not
Dr. Edward S. Mason
of
the
total
me
on
and
rates
But
it
that
countries.
price
cover
assured
high
abundance
enough
°us representatives at the Geneva
sary
Conference on Peaceful Uses of ing a continuing supply.
Atomic Energy in 1955 have since a fact that is apparently
'
.
.
.
output
not
is
the only natural resource claimant
on
supplies.
deeper into the earth
As
energy
minerals
and
s
metals
dig
we
surface for
and
follow
become th™ner
Vei?2
i
earth
unit
Of output
inevitably rises.
A
meeting
of
increasing
require¬
ments
for
mineral
per
materials
raw
without sharply rising costs is in
large part an energy problem. If
we
could
be
assured
of
really
low-cost
and
,d
our concern
abundant
about
be
substan-
are
all avail¬
able in the earth's crust and in the
in what are—for
seas
—unlimited
cost
of
our
extent
is
an
j
expressed in
tbat
to
a
con¬
cost
important sense, therefore,
it may be said that the natural
resource problem is
essentially a
problem of low-cost and abundant
energy
T,
problems
u
presented at
conference:
that, largely becapital cost and forexchange requirements of
0f the
cause
atomic installations, the
principal
short-term expansion of these in-
stallations will be in the hteh fuel
high fuel
cost areas of the
developed world
rather
than
in
underdeveloped
high
their
fuel
Taking the free world as
however
areas
costs.2
wbat less than 10% of total
requiremenfs will
be
nuclear sources by
1980.
This means that
two
decades,
Energy
sources
continue
are
during the
far
so
from
met
Will Need Conventional
*
enerev
next
commercial
as
are concerned, we shall
to
be
dependent
on
hydro-power, coal,
and, primay antic-
gas
warily oil. Indeed if I
conclusion
a
of
this
paper I would say that, if energy
sources were free to move from
^ffec^mankind^onl^i halfZ?
ti
^pnfnrv flL nS
nr
V
S
L
i
Wn
tui
n
my
future.
I
feel
imS ul
L
to
to theu^ed
nearer
attention
There is only one remark
called
upon to make with
regard to these distant prospects
Technological advance may be ex-
pected not only to
sources
of
inevitably
pected energy
for
energy
demand
m
as
open
up
new
energy supply* it will
create new and unexuses
and
materials.
well as
the
a
new
There
At
m
the
main
mrt
nt
or
operating
any neces-
Jl*
V
U1
,
.
.
r
oT NucJar'1
U.es
Planning Association, Washington,
ze. s. Mason and the National
a
exclusively
•
Venezuela
setting
electrical rates
low
so
ninsr As8°ciation staff of
At?mic
Project,
KSSSS.
n
the
pjan-
Peacetime
"Energy
Re-
that
tions
have
t
*
*
.
-
.
.
;
sources
in
discovery
a
a
bearing
oil production. If
and
the
no
Middle
good
very
costs
all
reason
be charged to
supply is admit-
of
bothersome
a
to me,
™a
•
question.
desire
however, that it
on
energy
in
users
cost
energy
and
if,
has
be
may
rela-
are
rising.
at
at
Produced
in the
real
costs
no
present for
in
an
P.
an
?s fess clear"
States
been
an
h ft
"
extraordinary
Gas
low-
source of
energy in this country and although the price in rehas been rising rapidly
low-cost
,.
A
the
energy
user
may
This difference between
is
period
on
the
knowledge,
assessment
in
energy
both
in
.
the
the
market
political arena,
Lewis
of
has
lower
a
Those Favoring Low Energy Cost
There
then
are
powerful
some
^arket forces commanding sig-
have
political
abundant
costf
Pner?v
Arrayed
somesnecial
which
support
doubt
no
an
interest
hut
nnt
asMnst
erouns
in
low
at
them
are
of whom
the
12 New England Senators, chivied
b
constituency
a
residual
fuel
interested
oil
nrices
in
are
10w residual *uel 011 Pnces' are
perhaps the
1
A
t
most
vocal.
interest
in
low
For the
enerev
Xeft
consumer
which like all consumer manifes-
tations isS disorganized and rela-
impotentf
"ve'y
.
The situation in Western Europe
n°l l°° dissimilar. Although oil
from th.e Middle East can now be
landed in most of Western Europe
of
the
and
abun-
free
world
arrayed against
rapid displace-
a
me^L ,Ir} Ger!?any tbe, favored
method is a differential tax on
oil consumption In Belgium de-
sPlte a11 the efforts of the Eu.pommun^ty
to close down high-cost, mines
there is effective resistance. In
Britain the government stands
ready by differential taxes on oil
r°Pean poal, and .Steel
.
and
in
the
Gnfgy supply<
x
•
As our attention turns to the
...portant-'graiips.. who...are-Ger-tainly-JBllPeipaLcenters of overseas oil
as
against the im-
not
interested in'low prices,
least for their
own.outputs?
at
(2) What changes in public policy and business practices would
have to be brought about if
we
,
of
L.
favor
..'.rsatstt a l Bar&asasa
to
are
obtain
a
iow-cost
production, in Venezuela and the
Middle East, we find, quite nat-
L
£?«
true
a
cicat
deshe to
LinTof bar?il,s
energy
'
....
(3)
^
_,
What
would
tend
,
be
the
conse-
of these changes for the
economic
position
of
particular
quences
sources
ar f0ui'ce of
to
John
at Prices which tend to make the
will, of necessity, have to grapple
with the following questions:
a supply out
price
It
prospects for low-cost
be
.™y4be low-cost.t• At the
that
high-cost domestic coal output
non-competitive, strong forces are
the
over
common
realistic
dant
If?^ the handf
^
heard
advan-
Nor have
it
that
these
sidered to be
uses,
»
source
considering.
of
a
The
relatively
assume
be
that I propose to proceed.
to
will
to
to
rough and ready
approximations, that may be con-
are
free
are
are
basis
cost
-
prepared
continue
see-
there
prices
..
am
we
free to turn
low
I
cost
consumers.
spoken outXin
price for coal.
cost
A considfratian
the relation
of
a-n<? abundance also
time the
from this source
cS
States
United
of
sources
to
users
lower in almost all
same
and
;
will
all
are
cost
u
States
snecf tn8'^ LfLl
ticular uses and this is a fact of
substantial importance for certain
'
United
high
i
limitations to substitution among energy sources in par-
energy
the
.
cent years
Admittedly
*j
T,r
covered.
these
pass
to
on
^ nificant
.
be
oil
^wIsterLFnrlne'^ ^ <^£fusf
technical
*
a
ers
definite period. On the other hand
r»ii
oil
domestic
of
energy
full-
any
toaT
higher than
re-
Hnmoctin
large supplies of low
available in the world
and that, if
.
TTnitAri
United
level
energy considered together. Here
low cost is compatible with abun¬
dance if first, there
are, in fact,
choose,
East
on
to
tages
that'eoafean'heLro Wd^th6
S?Ur5es}i 0 ,<:nergy supply is sub?^ntially.
altered when we turn to
an
sources.
Middle
I'S S; L ai
domestic
lively
I
-
the
sources
clear that the costs of
oil
is
whfat is true for
ond, energy
from high
ea
..
k
is
development.
examination
and
low-cost
to
cease
companies, it is
true, are interested in drawing a
larger part of their oil, for sale in
the IMitgd States, from lower cost
foreign sources. But, so far as I
know, they have not expressed a
nH^;f^nh,0baSlS ?Kd thatft'r
production we shall have to permit a price high enough to cover
the increasing costs of
discovery
and
soon
international
East,
to
are
seems
are
domestic
on
our
over 22
states each with its customary two
Senators, are not interested in
low-cost energy. On the contrary
they tend to assert that unless
the price of oil is raised, or at
least kept from declining, the increasing cost of domestic oil exploration and development will
doing so but the problem of
exploration
and
developsources
£ ene,3;~
+
Certainly, the domestic
y'
Producers of oil, spread
for
analyses. I take it for granted that
want to meet
we
large share of
nuiremonts
frnm
quirements
from
KPm-
build up
even
government in-
Jcc\ b® 1aP "artrficial"
f.y. source subject to such arti-
£ pi
differences
estimate
seems
ment
assur-
This
at
^5 ^
remarkably lowsupply. Secondly,
charging to parof supply the costs
and
is dis"
gas
•
parts
related to
the world, one can
arti-
placing from the market. But if
*;
,•„*!,~
°n ?"Ce-
„
very
security'
on
high-cost
for
the
a
SSTESLSZT'c" be hl*hr
price °f the oil that
different
these
exploration
There
replacement of
existing installations becomes unprofitable.
The same considera-
of
1958).
of
insists
Venezuela
not yet
various Latin
in
P^l® necessary to get
•
for
sources
•
r.
1
the
world,
one
a
Apy respectable analysis of the needs to take into account a missen.ef£y outlook usually starts off mg intermediate factor, i. e. price,
a ProjeAction of energy re- It is possible that, by any estimate
Quirements. And it is remarkable of costs that is related to the inD
in
_
American countries who insist
mv
y
is
supply factor
rr
thereof
storv
uses
energy equation.
Consequently it is a mistake to think of
the energy problem as
And
t0 Petroleum Why energy
in fact be free to
move and the consequences
sources will not
the
over
low-cost locations in obedience to energy problems. But it is equally
Ani PuU r e 1 y economic considei'ations obyious that the possibilities of
-thevarious^.DoSbl^hSicli sofut-41
rKSSSt °ng
First
ener-
an
^
are^articu
can
cover
involved
expenses
But
ipate in part
energy.
J
a paper
the
and
an
v.
reviewing this question I find
nq^reason to change the opinion
purposes
quantities,
extraction
siderable
In
jn
production
discovered
energy,
dwindling min-
eral supplies would
tially reduced. They
way to soberer calculations,
U"- eign
deposits of poorer and poorer
quality the energy input
given
of
of
paying a
not only to
the availability of low-cost and
abundant energy
'
.
agricultural
investment
ticular
indeed for
as
—
costs but also to
But
of
It
world
nuclear power expressed by vari-
on
important.
tedly
to the question "How are we
going to feed rapidly increasing
populatipns" depends significantly
swer
w"*\"
Venezuela
of energy
USU-
ficially
determined
differential
je> vja government control of the
field prices of gas, as against
oil.
-phey woud like to be able to
charge into the cogt Qf gag
unnecessary one.
is unnecessary for
our
purposes
to enter into the intricacies of cost
source
gy market is the result of
con-
tween low-cost and abundance. It
is obvious that for any particular
without
In the underdeveloped
the rosy expectations of
I
purpose
o
if
con-
are
increasing share of the U. S.
ducing, say, oil in different parts
and
Costs
be
an-
the
difficult
a
One final preliminary observa¬
tion concerns the relationship be-
not
the
sup-
of
measures
what
—
Thus
my
an
energy
parts
best
at
difficult to derive any accuof the cost of pro-
is
be large enough to change significantly our overall assessment,
commodity
enormous.
It
rate
what
any
are
for
sider it to be
the world will
earlier construction plans have
been drastically scaled down both
*n Britain and in the Euratom
of
is
would still leave the Middle East
unlikely
requirements in this
practical methods
of desalting sea-water with
accompanying energy requirements
introduction
different
This
and
cost
seems
Realistic
-
in
allowances
between
a
clogely connected with oU
production, complain bitterly that
they are already selling at too
low a price. They claim that
their
mainly
considerations,
suggest
that
very
different
periods
of
capital
recovery
are
advisable.
But
making the most extreme
establish
energy
that energy
substantial part of
the
problem high side but I am willing to ac->
that concerns us today and, in a cept it until more information is
sense
it is the prior question.
If available. No doubt the pereentthe supply of arable land is to be age in various Western European
increased by conventional irriga- countries will be somtewfo&Lhigher
tion methods energv requirements than this though the cost figures
are large.
And a really great expan- from existing nuclear installations
sion
(Tf arable land awaits the are somewhat discouraging and
energy
to
relationship
sumption.
supply
energy
seems to
growth
data
weight
supply.
If we
domestic scene
the
at
are
greatj
all interested in
energy
first
political
projecting growth rates
firm
of
task
of
growth trend in
a
insufficient
any
10%
at
energy
S.
U.
by 1980.1 This
"the
is
and
energy requirerecent
careful
study
nuclear
for
basis
total
A
projects
determinants
confidence
alternative
costs
plies
world.
larly
past.
This, is fact, is the dif¬
ferentia specifica of a developed
economy.
In the underdeveloped
world, however, we have no real
this period unconventional energy
sources will supply
only a small
if.
the
political
s
not at
are
the gaS Pl'oduce^, who
Costs
Eosts
large differences in the
the future not very different from
that
experienced
in
the recent
1980, give or take a year
a date that
may limit
too frequent a resort to the crystal
very
much? " It
some
however,
at most three
or
low-cost
there
possessing
ally
;co,w"f
growth in these economies dre so
firmly inbedded in existing habits
and institutions that, barring large
scale warfare, we can project with
is
two,
or
not
—
increase
but
the
decades.
en¬
do
decline
over
concerned,
are
with the next two
real
at
seen
Looks 20-to-30 Years Ahead
require¬
ergy
clearly
lying
that
know
horizon.
sup¬
of
ply
is
others
are
water
a
relatively
limited
that
one
there
who
as
look
World
World
most
and
sources are developed unconven- projections anticipate a continuational requirements will also ap- tion of this relationship. And we
sea
be
increase
public
The desalting of
will
prices
Cost
Turning to the first question it
many
groups,
economic
and
point of
it
users
Fva miiif»s
Examines
"During the last
than
less
as
energy
•
is abundantly clear that
low-cost
the
formulation -of
policy?
_
At ihis. point I should logically
plunge into an examination of the
few dec¬
ades, in the highly industrialized
economies
of
the
west, energy
consumption has grown at slightly
:
that
sources
The
consideration.
world.
play against security considerations. He warns that were we to
sure
lowest cost
from
great
of future
energy requirements is, of course,
what will happen to rates of con¬
sumption in the underdeveloped
supply makes us more vulnerable? and notes that we have no
Two basic natural resources prob-
with
the
sensible energy
Those Not Favoring Low
;Energy
here
are
^e
concerned
of
any,
under
"energy policy" and, if we did, wonders how low-cost consideration
i
presume
necessary
to Consider
well as input costs.
view
unknown in the analysis
-
it would weaken
I
abundance from
and
no reason to expect much,
rise in the cost per unit
of energy input during the period
supply but a small fraction of total energy
shift from low to high cost energy inputs
Since
maintain that if requirements can
met
because
in a
or
mainly
if
surplus energy capacity or that dependence on foreign sources of
would
one
any
a
there is
••
during this period? dissents from view that our security needs require
energy
accept
market,
number of projections of energy
consumption for the next 20 years,
add
or
substract
25%
and still
be
to its
to
tions, play in
of
the
position to exact a sizable rent
or royalty, or for all these reasons.
I am
of a
seems unnecessary.
willing
Thursday, January 14, 1960
.
the owner of the resource is
this
however,
purposes,
my
existence
in
.
.
costs, because of
monopoly ele-
transport
the
ments
cated the
"
answer
high
these
in
World Energy
The
Financial Chronicle
The Commercial and
(170)
.
of
energy
supply and for
d?tense
posture of specific
c?untnes as seen by those responsible
for security matters?
to
lower
o
oi
see a
low-
lmoor s in
?n tse?fP woLw
the
average costs
inputs in Europe and
tendency toward increasing energy costs in the future in
of
energy
arrest
a
the United States.
But neither the
producing companies nor the owning governments are interested in
any substantial break in the world
price structure. The tremendous
(4) And finally, taking account
of the probable answers
to these
surplus
que^tionsy what role should lowcost, as against.'other .bonsidera-
few
now
overhanging the
ket and the entrance
years
of
new
over
mar-
the last
producing in-
Number 5916
Volume 191
.
The Commercial
.
When
it is true, induced a
forests has,
.
ask
we
Financial
and
ourselves
what
freeing
of
^
needed
imports,
to
would
be
lower energy prices to
consumers, we run into a hornets'
nest
important, into the heavy
employment in the coal industries
would ^oon reverse our
of
cost'energy on
more
Changes in public pohcies'"Oi\business
practices, in addition
at this price
'Structure. But it remains to be
Ln whether such price lowering
influences as may be brought to
hear
by increasing competition
substantial nibbling
(171)
Chronicle
the
to
United
where only 200,000
rently employed
States
are
men
in coal produc¬
of
unanswered, "and prob¬ tion, Britain employs some 750,over-abundant supplies may
ably unanswerable, speculations. 000 to produce slightly more than
ot be offset by the effects of in¬
Clearly the crux of the matter one-half the U. S. output, and
creasing pressure by owning gov¬ is how
and whether the f.o.b.
price West Germany some 450,000.
ernments for a larger share in the of oil at the
really rich
if
doubt
No
pushed
we
our
consuming interests,
concerned'with low-cost energy
very far into the underdeveloped
world we would find countries
whose import, needs and shortage
lor
sealch
concent a
tive
structure
industry
the
various
and
various
with
needs
dust off
The
condition
is
to
expansion
Middle
a
fore attempting to assess the rela¬
to
of
af¬
fected.
International
companies
free to choose between their highdomestic
cost
price
delivered
the
not
was
their
and
sources
doubts
concerning
have
difficulties
disposing of their oil in the Amer¬
ican market would have their dif¬
ficulties
And
lessened.
other
Western
ferential
taxes
facilities will
not disappear at least as rapidly
as energy producing facilities.
Is
it then so important to build up
a
supply cushion in the United
States particularly if the cost of
so doing is very high?
He cannot
help wondering also whether, in
the
price
or
eliminated,
coal at
United
is
still
an
common
and
uses
of
Consequences of
of
supplying
in
for
ual
and
ignored.
groups
probable economic consequences
are
fairly
obvious
and
fairlyto
world
an
capital required in the United
to find oil in increasingly
States
unlikely territory or to undertake
increasingly
difficult
secondary
■recovery
operations,
smaller physical
Such
not
element
much
inputs needed to
the
would
displacement
a
producers.
would
cut
allowables—already reduced
to nine days a month in Texas—
to a point where the continuation
proration and all that it involves
in
the
way
of output controls,
might well have to be reconsid¬
ered.
If
output cbntrols
were
substantially
altered
both the
domestic and import price would
back
real
Instead of the labor
imports
heavily on domestic oil
energy
of
oil
States
United
a
of bar¬
into
the
bear most
elimination
An
drastic.
riers
terms
inputs, and this is
to be
of producers and
the defense posture of individ¬
countries can be brief.
The
ticular
pronounced shift in energy sources
would still
inevitably lower the
requirements
of shifts of this sort
the economic position of par¬
for
Assuming the price of imported
cost
Lowered Oil
consideration of the probable
A
gas
such
holders
■
fall,
a
good many
oil
in
Venezuela
the
or
marginal opera¬
Furthermore
as
a
even
for
the
Free
whole the saving in
a
shift
low
the
be abandoned
expenditures
from high input sources to
import sources is real only if
displaced resources can be ef¬
fectively reemployed.
D e spite
these
caveats, a potential Free
World
saving of inputs is an aspect
on
of-the (matter
considered.
that
needs
to
be
oil imports led to a re¬
consideration of domestic output
controls
and
price competition
raised its ugly head this judg¬
ment would have to be reexam¬
creased
ined,
An
abandonment of import bar¬
to and differential taxation
oil in Western Europe would
riers
on
rapid inroads into coal
production and, what is probably
produce
.
as
He is
Massachusetts
an
Investors
trustee of Amoskeag Co.
a
External Debt
vulnerable
that
following bonds, purchased below par:
of these
purchases
dangers
Let
turn
us
to
now
was
47.20%.
of the external debt who
final
the
*
under law No. 8962
year
high authority in the Eu¬
a
the
United
touching faith
a
get done.
So far as I am aware
the
United
has
States
energy
no
of copper
/
If,
one.
imagine
we
low-cost
would
role
what
however,
This
is
to start
play
much
too
large
a
other
advantage
country
in
hare
price
of
oil is
high-
ly industrialized sections of West¬
ern Europe than it is in the highly
industrialized
sections
of
the
United States.
Furthermore, an
energy
which
of
policy
in this country
emphasized the interests
producing
groups
domestic
and defense
expense
of
considerations at the
the
cost
element
to
.
the extension
granted
by
the
period for acceptance of the exchange author¬
ized by law No. 8962 will remain open until
December 31, 1960.
every
crude
882,410.
US$1,094,474.
V*
Supreme Government under the terms of Fi¬
nance Decree No. 9,566 of October 31,
1957, the
the world with
somewhat lower in the
.
96.99% of the Swiss franc bonds had been
Pursuant
Holders of bonds assented to Law
No. 5580 will be
entitled to receive the aforesaid payment
of $1.81 per
February 1, 1960, against
presentation and surrender for cancellation of the two
coupons corresponding to said payment, (in the case of
the City of Santiago, Chile Twenty-One Year 7% Ext.
S.F. Bonds dated January 2, .1928, the said payment will
be made by presentation of the bond for endorsement of
the interest payment) together with an appropriate letter
of transmittal, at the office of the correspondent of the
undersigned in New York City, Schroder Trust
Company, Trust Department, 61 Broadway,
New York 15, N. Y. Letters of transmittal may be
$1,000 bond on and after
deposits were, and still are, un¬
matched in other industrial coun¬
tries. The United States was the
delivered
\
of
...........
Up to the close of the year corresponding to this decla¬
97.68% of the dollar bonds, 99.54% sterling
bonds and
respect to energy costs. The rich¬
ness and accessibility of our coal
now
(Article 7th
assented to Law No. 8962.
But a con-
over
industries
January 6, 1938)
ration
;>
cludingiremark needs to be made
concerning the role of costs in
such
a
calculus.
Until recently
the United States enjoyed a pro¬
nounced
importation of petroleum for the
copper
•
con¬
as
at this stage.
and
212,064.
.........
.,.
None
US$
can
against the
legitimate interests\ of domestic
producing groups and as against
security considerations?
siderations
on
Law No. 6155 of
sensible energy policy
a
companies
Share in tax
nitrate
policy and despite recent emana¬
tions from Congress on this mat¬
ter I doubt whether we will soon
have
1959 interest at the rate of $1.81 per $1,000 bond
on the basis provided in Law No. 5580 with
Participation in the profits of the Corporacion de
Ventas de Salitre y Yodo of Chile
—....
Share in the taxes on income of the 4th category
of public action in
but no great
States
of how things, in fact,
plan
will be entitled to receive for the
respect to the. following revenues:
in
awareness
that holders of bonds
assented to the plan of service
calculated
Community for a brief
description of U. S. energy policy.
ropean
exhibits
,
5580 and do not accept the new
of old Law No.
question. I have been somewhat
amusjBd recently to note a request
from
£548,106,
making these amortizations the
of Law No. 8962 also announces
Question
Ponders One Final
p
2,614,200, all of which
circulation. The average price
Francs
balance of prin¬
cipal amount of bonds of the External Debt was as follows:
.£14,283,522, US$88,167,000, Swis$ Francs, 71,665,900.
The Caja Autonoma de Amortizacion de la Deuda
Publica, in accordance with the provisions of Article 3
After
confront us?
now
Sinking Fund established in accordance with
8962 has been applied to the redemption of
have been withdrawn from
any
us
the
to
debt approved by Law No.
Law No.
the
But does
make
necessarily
more
de la Deuda
readjustment plan for
Republic and the municipalities covered by
and which assented to the new plan
US$3,419,000, Swiss
.
obtained at the office of said
CAJA AUTONOMA DE
EDUARDO
correspondent.
AMORTIZACION OE LA DEUDA PUBLICA
SOLMINIHAC K.
General Manager
Santiago
December 31,
1959.
the
investment, analyst.
5580
No.
The
East
exports that pay for these imports.
World
tions would
doubt
of
staff
Trust
for
member of the
a
under the aforesaid Law No. 8962.
out¬
be
and no
explora¬
would be called on.
principal exporter of oil and oil
tion and development would be
And in Western Europe the very
produces, and oil prices in the rest
sharply reduced.
'
of
the
world were U. S.
gulf
heavy labor and capital investment
If the displacement of domestic
per ton of coal would no longer
prices plus delivery costs to des¬
by
foreign
output
took
place
be needed.
tination.
And we were the first
Needless to say this without a substantial change in
view
is a reflexion of the Free
large consumer of gas.
the delivered price of oil there is
Energy prices are still compar¬
World energy potential seen as a
no reason to suppose that the pro¬
whole. For any
particular country duction and consumption trends atively low in this country but
we
have already lost a substan¬
the
real cost of
imported oil is of coal or gas Would be so af¬
The
dependent on the real costs of the fected. On the other hand if in¬ tial part x>f our advantage/
produce
Middle
six years
been
July 20, 1948, announces that the fixed annual
of 3% has been paid for the year 1959 to the
of bonds of the direct and indirect External
Debt of the
Law
one
war,
This
consequences
energy.
to remain constant
distribution
Barriers
TJ. S. energy
prices.
oil were
interest
Finally,
those inside.
as
the rationality
low-cost
Ex¬
pansion of imports,however, might
-well
postpone
any
increase, in
source
issue
abundant reserves.
their super
exceptionally
alternative
the
price of oil from
low-cost areas with
reallv
the
probably not have this effect since
coal prices are fairly competitive
with oil in
this ques¬
to the f.o.b.
and
would
it
useful
last
lies in what happens
inputs even if
States
8962 of
looking at the
happens to
the next
what
of
geographical
the
to
the price of oil remained constant.
the
as
terms of oil because
that the center of the
two decades
greatly accelerated rate.
Here, as I have indicated, such a
replacement would lower the aver¬
In
the service of the external
of
wars
various sorts, energy sources
world energy prices over
a
age costs of energy
believe
question
replace
oil would
brush-fire
of
event
in
entirely
I
on
has
Caja Autonoma de Amortizacion
The
side the United States may noj
with the
discussed
haVe
I
tion.
in¬
also lessened
were
take.
vastness
surplus oil plus
remark
past
Publica, in accordance with the
consuming
energy
the
in
warfare,
nuclear
of
this
One final
^
:
Gardner
Mr.
can¬
whether,
eign sources of supply.
petroleum and
on
subsidies to coal
few years
last
wondering
number and take your choice.
import
if
Europe
overhang
the
event
the
hand
other
of
the
of individual
tury.
v
Service of Bonds of the
for
011
management
office
which
has
been in operation for over a cen-
An economist viewing develop¬
An
Venezuelan
and investment
this personal trust
Republic of Chile
Security Needs
on
situation in which you pick your
removed and if dif¬
were
security
the
possibilities of collusive arrange¬
ments among the owning or the
consuniing countries are taken
into account we seem to have a
Venezuela and the Middle East.
In
City.
Office
Post
let
experience of the
wonders whether
rationing is not a quicker and
more productive source of energy
for military Use than the creation
of surplus capacity. Abandonment
of import controls will certainly
make us more dependent on for¬
dependents would join the race to
barriers
American
by
University
10
Inc.,
Square, has been announced by
G. Peabody Gardner, Chairman of
eco¬
least.
these elements together
no
but who
in
recent years
encountered
have
certain
to
of
aspects
Offers Views
discoveries like those in Al¬
new
procedure. Independents who have
been going abroad in increasing
numbers in
policy
energy
attention
market
and
Prof. Mason before
Symposium
of
Petroleum Institute, New York
address
problem.
geria and Libya may substantially
weaken this bargaining power.. If
correct
the
•An
Columbia
Office,
ner
can,
.
low-cost
would
foreign
the
sensible
call
nomic
help
their share of the
the
On
of oil whether or
large influx
by any stretch of the
imagination, be called sensible.
rank
BOSTON, Mass.—Election of John
Gard¬
L. Gardner as President of
importance of lowness of cost
a
me
not
the
the
companies
possibly
barriers would inevitably produce
in
ments
But
such
an
influx
Western Europe •structure.
tend
to
strengthen
the
and the United States.
In this Vould
hand of the owning countries and
country an elimination of import
a
tive
con¬
are
in
ol—oil
ation
—
considerations
abun¬
during the next two
the question naturally
country
producers and thus might
major
and
low-cost
to
cost
sufficient
not
policy which fails to put
in the front
energy
as
energy
decades
One
lessen the influence
lowering or elimination of import
barriers to—and differential tax¬
abandon¬
restrictions
an
arises, how
really
the crystal 'ball
say
of
Eastern
new
if
necessary
dant
oil would tend to bring in a flock
of.
and
profits
respect
impinging forces
tradictory
of
States
competitive
condition
to provide answers.
what
Europe
of
im¬
probable
Of Gardner Office
be ex¬
can
aggerated, a transition from rela¬
tively low-cest to relatively highcost
energy
inputs would quite
definitely wepken our competi¬
tive position in the world.
In a
period when this position is al¬
ready beginning to appear pre¬
carious I do not believe that an
developments is de¬
relevant.
to
the
United
much do we want a
low-cost energy supply?
But be¬
sharing
cidedly
Undoubtedly a necessary,
sufficient
not
the
the attitude of potential investors
public policy and busi¬
ness
practices would have to be
accomplished if we are to obtain
a
low-cost and abundant energy
if
the producing
of
the
foreign oil—which I regard
on
And, since the capital re¬
quirements of a greatly expanded
overseas oil supply are, very large,
changes in
supply.
producing
in
these
consumer
in
Western
price.
Business
now
to
as
governments
supply are strong.
consider
us
the
view
ment
owning country gov¬
companies
toward these
Let
of
ernments vis-a-vis
But the influence of
these countries on world energy
prices is not apt to be large. Tak¬
ing the free world as a whole We
joust conclude that the forces ar¬
rayed against the objective of a
Public Policy and
Practices
In
pact
particularly
bargaining position of
the
areas,
portance.
low-cost energy
be
This involves among other
things
speculation on the future competi¬
exchange make§ this
matter of criticah im¬
foreign
of
oil-pro¬
brought
input costs?
centers
can
somewhat closer to
economic growth
States
United
the
in
cur¬
ond
ducing
J. L. Gardner Pres.
position. While the effects of low-
various European countries. In
contrast
traditional
19
SANTIAGO WILSON
H.
Preiidetit
20
(172)
The Commercial and Financial Chronicle
Generally
Do Common Stocks Provide
By Raymond B.
tal
.
pay
by the fear of inflation than by business conditions and
earnings, which sometimes has worked to their disadvantage, Mr.
Garcia notes, as one conclusion, that
equities can be over-rated as a
no inflation. This results, he
from inroads inflation may make in stockholders' equity in the
firm and when persistent inflation cannot
cope with the cost squeeze.
since 1941 to 1959
to offset
stocks
common
consumer
hedge;
for the
more
progresses,
sumer
costs when the equipment became
mately
-
capital
depreciates
same
market moved lower in anticipa-
as
the in-
his
original
in value in
or
greater amount. To illustrate, when an inflation has pro'
gressed to the point where prices
Actually,
the reasoning tui ned °ut to be
almost wholly incorrect and many
investors missed easily then b
P°st war ^ance to
p^tect themselves
and
their
,u
capital
.
.
against
purchasing power loss, and that
cXi?aTand01the1oUn4rttoprocess of'irf/laUon
loss
price level.
until
tne
investment
For the past ten years, the political
and
economic
scene
in
the
recession
United States has been dominated
about half of them prices
by
by
phenomenon
a
which
was
P
The
1
and
In
price
the
have completely
re-
declines
periods
in
f
o
explanations
the
recessions
scurity
to
role in
major
the
?'
.jMt.
>
nnrchasino
purcnasing
the
m its
Raymond B. Garcia
nation's
affairs
by this
former bit player. In this drama,
however, the main billing and fearole have gone to the villain
purchasing
of
without
witnout
chooses will in
nower
powei
of
the
credit
and
expansion
mediums
Such
power. There aie
distorts
T^e
inflation
itself will
.
the
market
place
stocks
to
^uy
at
for
S
easier
wnu.ii
tor one per-
anotner.
can
^egl.ees
ns£*
primary ob1
ls t0 choos^ some i°rra ot
.
tangible
whose
assets
monetary
good
in
common
its
express
situation
a
American
public
briefly,
all
in
the
walks
of
life has become deeply concerned
problem
flation
and
id
what
clCdonVto
be done to.
can
halt its cancer-like growth.
consider
facets
of
and
and
extent
inflation
to evaluate
mon
that
and
of
its effects
stocks, it will
first
we
many
the problem
enable
ourselves
upon
be
establish
com-
necessary
the
causes
and
symptoms .of inflation and
analyze its effects in the past.
Having
once
ture
an
of
ment
we
determined
is
that
through
the
expansjon
^
credit
the
na-
0f
bank
iaree
to
there
can
saie
0f
-
Equities
Over-Rated
an
Hedge
The
prime fact is that
stocks
he
can
common
over-rated
aSalnst the^ ravages
tin
ed
inflation.
For
d
t
is
of
con-
j
in
a
thing,
one
,ax
eniiitv
as
the
constant
stockholders equity is in constant
danger
tWar°
being
increased
hv
increased
^st
gamine
the
b>
rather
declining
the declining
of
power
the
as
reduced
the
potential
dollar.
dilution
of
was
over-emphaearning power was
over
empna
we
Dower
dunng
the
4947.43
period,
be under-emphasizing it
may
As
an illustration of this point,
jet us consider a statement made
by
Benjamin
chairman
Fairless,
of U.
S.
Steel
former
Com.,
il-
on
government^ bonds
banks.
of
stocks
to
*nnsic value of the
Inflationary
existence of
is
not
^
general opinion, the
inflationary
economic
nation
experienced
has
periods
of
pressures
new
American
nation's
cur-,
may occur in either of two forms:,
Trend
through
devaluation
lowering of the
something
which
is
of the in-
the
on
Our
scene.
20
major
prosperity in the past
150 years of our
national economy,
In 17 out of these
20
periods,
we
have experienced
price inflations,
During pur four largest wartime
and
postwar booms prices as represented by the cost of
living skyrocketed by more than
100%. In
the 13
the
or
specie backing of
the currency,
suance
As
a
tions,
of
(2) through the isprinting press money.
result of either of these
acthe" immediate effect is to
increase
the
supply
of
thereby
lessening- its
purchasing power. The
is that it requires
a
currency,
value
or
end result
greater amount
of currency to purchase a
specific
quantity of goods which is the
precise condition which we use to
describe
inflation.
Currency
in-
flation will usually result in a
remaining inflationary pe- brisk demand for
precious and
riods prices- rose
anywhere from-basic metals and stocksin-cem10% to 45%.
Thus, we have ex- panies which produce those
perienced
stable
staple
These
or
com-
only three
deflated
occurred
periods
during
S?
of ProsPerity
1880s
of
Drosoeritv.
prosperity.
'n
the
five
the
late
resulting from the railroad
boom,
the
uuuni,
ine
mree
three
last
building
W""UU16
loon? 0
1920
ProsPerity
ln the late
s, and
the period of
strong
prosperity in 1955-56.
During the
first
tvvo
periods
of
uninflated
prosperity the
actually fell at
cost
an
•abaut,l%
»h«e
reflected
almost
stable cost of
of
living
annual
rate of
the last
period
a
completely
living. In
manner we had
a
similar
deflationary price
modities.
WhPn
When
inn^;
a serious inflation ncrnrs
the business
activity in the canUai
goods and durable consumer
eSods
industries usually declines
severely, especially in those industries
ly
which require a
considerable
amount of long-term
fixed interest capital. Under
"■i--™
stock
Saf,108! c®,lstantly ahead
to new
tong before lagging busi-
^
-SS C0i}dlt10ns warranted such
Prices- Uuring the recession-bur-
ciened first half or 1958 the prices
°A most common stocks and the
niarket
as
a
whole
as
call
of
loans
popular
moved
common
steadily
^Pwf7d ^ns^ad of declining
obviouslv
would
a
most
shy
away
investment
accommodations
lone-term
in
short-term borrowers.
.,
•
-'
.
in
liquid cash
ring
i
fails
to
10-
a
must
company
re-
replacement of the
a
the
long-
companies
viewed
a
t
disfavor
o r s
which
ideal
as
for
ago,
„
profits
and
stated
dollars
and
rather
of
than
that
in
the
purchasing
currency.
In
the
early stages of inflation, earnings
have the tendency to shoot
up rapidly and cause a corresponding
rise
and
perhaps
in
one
stock
illustration
j^ng-term inflation
Curred
P^0SPects for continued
on the other,
tfte American investor chose to
£?nAinae taking steps to protect
a^ai.nst the more remote
,gers
inflation rather than
s??
? position of
immediate
?atety by turning to cash or fixed-
the early part
the longer an
lncome securities.
more
reversed
a
even
A
larger
recent
of this
tendency
1950-1951, when
in
market
rected
an
prices.
itself
and
oc-
the
cor-
deep
undervaluation of
profits which occurred
1947-1948 and
terminated
in
corporate
in
of
1949.
However,
inflation lasts the
relentless is the pressure on
usually
hedges,
too
many
example,
years
non-ferrous
metal shares and coal shares
were
purchased eagerly for their wealth
in
the
cott
ground.
Yet today Kenneand Anaconda sell
Copper
points below the best levels
many
they attained 30
before
the
started.
vast
years
current
The coal
reservoir
ground
has
long
ago,
inflation
industry with its
of
wealth
done
in
little
the
better.
Much
the same holds true for
gold
mining, lumbering and producers
of crude rubber. During the same
period, however, some natural re¬
industries have appreciated
more than the value of
price
the dollar has fallen.
num
and
have
managed
oil
The alumi¬
industries,
to
which
convert
their
natural resources into above
aver¬
earnings, fall into this cate¬
However, during 1957 as the
age
gory.
profits
of
these
industries
de-^
clined, both groups surrendered a
large part of their postwar price
advances.
Surprising Hedge Found in
Utilities
Contrary-wise,
industries
than
corporate
are
inflation
Not
resources.
Generally, however, the prices of
of
and
mar¬
namely companies rich in natural
well
stocks tend to follow the
an
company may
hedge than
result of incur¬
worse
This
principle holds true not
only for manufacturing and serv¬
ice
industries, but also for the
ity
on
out
first
glance
from inflation
more
hedges
regulated
some
which
i
ideal
speaking,
keep
that
as
n v e s
Historically
fnd
instead
against
to
inflation
be
as
recession.
as
of
Thus, a major¬
stocks have more
utility
held
their
purchasing
own
in
terms
of
despite rigid
regulation of the rates they may
charge their customers. As a mat¬
ter
of
fact,
proven
hedge
power
utility
more
a
than
stocks have
adequate inflation
the
average
manu¬
facturing issue.
Over
the
years,
inflationary
pressures, sometimes very intense
and at other times more dormant,
hdve been present in the economy.
During the last 20 years, under
the free
have
enterprise system wages
steadily advanced as
more
the
bargaining power of the
unions became stronger and there
is little current evidence that this
trend
will
diminish
or
cease.
Prices were raised in most cases
above
action,
however, profit margins as material costs
more
than enough to offset the
represented _:practically;-a- dia--^and wages rise- faster than
:commetric opposite to what he had panics can raise the price of their higher wage costs whenever it
done as recently as 10
was
possible. However, wages
years ago
products.and retain consumer achave increased more rapidly than
when
conditions •■ were ceptance.
wnen- .business
Dusiness conditions
* - ~
productivity, consequently wages
pract,cally th? opposite.
The
,
eC0"?my w.as boom,ng and eoron their way
t0 l,vTu
reeord hlghs' but u^f
the stock
was ln
°^'a very
?uarp de.cline- Actually, although
Persistent
ftate earmngs were
envlronmen}x and, the sympJ?ms. were e^actly the °PP°site in
the two periods the causes were
credit
favor
taxes
turn out to be
term economic trend in the United
states has been one of inflation,
power
.
after
with the rate of inflation,
should suffer
have
turned
cents
business reports. In other
words, when faced with an economic environment in which .the
rnain factors at the moment were
a busmess recession on one hand
stock will
prove to
a
There is another and more imp0rtant factor to be considered.
dividends
un-
aolo
and
from
a
over
up the $.30 deficiency out
of profits after taxes, it will have
to obtain this additional amount
trend
constant flow of unfavor-
prohibitive??^iUS
from the borrower
S-me^
lenders woild be"°cHned to
^ft,^ m,
for
interest
period
represented—common
s??ch Conditions \
long-term
depreciation charged
market has confounded amateur
ar,ld Profess^onal alike by com- from other sources, thereby dilutP t y 1SnonnS the most severe ing the stockholders' equity in
^usiness recessl?,n sl"ce 1937 and the business,
rency,
is a much more serious "F
;be several
condition than credit inflation
and'^A<^-k averages
Prevalent
Contrary to
.
price inflation of 5% per
each dollar of annual
for
makes
Since January, 1958, the
the
.
results
Finds
the
*
common
avoid its harmful effects.
ex
to
v.
probable
cover about $1.30 in order to pro-
annual
year,
^
^e^lde for the
SSSLSSn ??P'e"a. ??
program financed by the
the
consider
siirnlns
UDonalame
investing; in
intelligently
^the
oor-
which credit
.
year
conditions
largp
arp
or
*ies» rea* estate, precious metals,
jewe*f' and foreign investments
! t"1?- common hedges offinanciai advisors, but
with
This
when the govern-
Currency inflation,
ac.iually depreciation
more
in-
be based-or when
inflationary environ-
can
main
er
Temment e?nbmks
spending
means
bank deposits
creates
bank deposits
pansion
the
individuals
or
takes
exaggerated
Jendi
loans
where
in
occurs
norations
which
various
credit?
elude bank
and
the
which
situation
the
measure
jnfxation
piace
as
dollar
ket.
Finds
as
the purchasing power
declines, there is a
chance that an investment
the
of
in
In short, to
rise at least
company can
a
rapidly
source
the depths of failure.
short,
higher
means
really have?
slzed
No single recommendation
business,
In
sharply lower prices in the
purchasing
another
doing
costs.
much protection will their capital
t0day'
+..A
„c
than
the
probably
•
C0.11,
of investments
optimum relationship between the
total production and its
monetary
value causing a rise in the
prices
Gf the products in current demand.
depend
wav
position
and
connections
which
in
Dusiness
,on
some
financial
business
roncnr.
concuirent
action
his
upon
eni
a
of
profits
to
cnooseJ.wlAl.. m some way aepenu
product
-'V*. J*
himself
the greatest extent possible
against losing all or part of his
capital as a result of a reduction
enlargement of the gross national
a
insure
additional
additional
eni rpnrv
cuiiencv
ob¬
to
?fveral
^ods °r courses which
he may "f
take and whichever he
existing
relative
is
SimDlv
expressed
inflation can
bimply expiessea,
lnnauon
be described
as
the creation
of
through
emer¬
from
gence
.
inflation
we
without price deduring the periods
1923-24, 1953-54. and 1957-58 when
prices remained relatively stable,
a
oblit¬
of an investor seeking to pi^tect
his capital from the ravages of
of
occur,
which
completely
Jnto
of
prices it does not even assure
larger profits before giving effect
to the declining real value of
the
profits. If the per-share earnings
pace
nib
In general the primary objective
other
6*0% did
and
c
alike
multitude
ture
10%.
however,
three
had
econo¬
have offered
for
than
01
cost
especially wage
while { inflation
satisfactory hedge against
inflation.
However, if a firm's
prices
and
price/earnings ratios regarded as
xexcessive only a decade ago. How
Protective
easu
s
dropped
clines occurred
year s.
mists
periods of
depression, but in
or
is
\alue
common
erated.
18 out of 21
between 20%
1 i ticians
o
less
half ~
prac tically
unthought
of
during the
preceding fif¬
teen
trends in
leal
con-
prices have risen approxi¬
20% since 1950 and total
increased
be
years, stocks' upward movement exceeded in rate of increase the rise
in the
period, ^Consequently, while
•
...
that
the past 60
over
half of 1958
they were
the low point for the
postwar
national income has gained
almost
50%, both of these advances have
been heavily outweighed
by the
ljon
of the expected results of
tke postwar inflation.
4'/2 times the amount needed
rose
first
insufficient; to'meet replacement
bCGll rGgSldGCl 3S llOinicll 311(1 ttlG
correspond-
or
flation
like
20-year periods
a
and
more
the
near
to
nhliopH
iq
profit'-margins have undergone a
continual
narrowing so that by
and finished goods coupled with
the fact that depreciation charges
based on initial- costs-.would pe
it
ing amount of services
hedge and that they thrive best with
as
funds* by
grow.
make
quantity of goods
says,
the whole favorable to stocks
to
prices
invpctnr
motivated
on
investors
Constantly Worn out or obsolete. Acting on
impossible these assumptions, many investors
to buy as much for each dollar capitalized
stated eainings at a
spent, and when the owner of the significantly lower ratio than had
run
were
of
allowed
rising
analysis by author provides conclusions to please
both sides of the question. After
pointing out investors are more
1901
value
are
<•
since
Thursday, January 14, 1960
speaking, the effect as a result of large-scale profits
destroy the capi-. from inventories of raw materials
reducing its purchasing power to
a- constantlv
decreasing amount,
limited
only by the
extent to
which the inflationary conditions
Assistant Treasurer, Trading Department,
The other conclusion notes, however, that successive
...
of inflation is to
J.M.Duin & Co.,Inc., Minneapolis; President, Ttiin City
Security
Traders, Inc.
Long and short
.
u
—
were
\
sharply
being
a" mtense fear
Inflation
Narrows
•
As
a
concrete
tendency,
period
we
since
example of
can
examine
the
removal
of
years
this
the
the
World War II price ceiling.
In
1930 corporate profits after taxes
totaled
billi°i'
ail-time record of $22.8
Despite the occurrence of
an
" the 1J947"48 the subsequent inflation since that
vvas reasoned that time, corporate profits have manrising prices in most aged to exceed that figure oniv
grossly
exaggerated
constitute the largest factor in the
inflationary'trend. In the past 26
Profits
shown
year
the cost of living index has
a decline from the
previous
only
record is
pects, for
an
margins. Actually, corporate
times.
end to
ary trend. One
Such
our
a
pros¬
inflation¬
assumption clearly
is reasonable.
Stocks
Thrive
Best
With
No
Inflation
Inflation
est of
four
discouraging to the
bullish
on
by
is genuinely
prices only if it
itself
stock
■
Number 5916
191
Volume
earnings and dividends
boosts
as
purchasing power of
diminishes. At times,
of course, the fear
of inflation
w'ill cause a scramble for stocks,
such a scramble on a broad scale
jg going on today. But history also
shows that a condition such as
much as the
the currency
*
generally has proved shortbacked by expanding
earnings and dividends. Moreover,
despite the popular opinion, the
this
lived unless
most
flourishing au
g l
index
Lopsumer
01
indicator of changes
level and Standard &
Index of 425 Industrial
prices as an
in the price
Poor's
Pripps
CW.L-
measurement,
our
as
periods
during
i
,,
of
geperal
Over the past oU yeais, a peiiod
by price inflation, our nahas undergone a
fected
tional
economy
Tfeere
changes.
of
variety
and
sets the
Communism.
Khrushchev
is
record
He
pointing
concludes, by
inconsistent
f'
insist
is
out
that
because
rather
hesitate
this
that
column because some people may
think that I am getting favorable
stocks which toward Russia; but let me first
tory
write
to
of
is
Testament
a
his-
the
1-
Comnanl8!1-1958
T
xricitcrl
was
adjudged
people
in
$nd
Moscow
"respect
purported
why
the Mount," he
we
consistent is no reason
should be lax in practic-
ing the teachings of Jesus
in His
Sermon on the Mount,
■
l*
i
rrv
,
I
H HHK
-L XC111XV
personal talk when in
Nikita Khrushchev,
Premier, he being in Peiping
time; but I met people who
claimed
to
know
his
thoughts,
J- kJVvX J. LA V4.X
(special to the financial
chronicle)
:>■iry-
DENVER, Colo. — Frank N.
Tschudi has become associated
with Boettcher and Company, 828
the
two
of Jesus in the Sermon on the
Mount, Communism might have for many years, was formerly a
had no opportunity to develop. Vice-President of Boswortn
u -
tell
you
day.
no
seats), yet 95% of the one million
*Mr. Garcia's manuscript
Spirit) do the
chev is not
with
at the
in
nV»iivr»V»
o
no
the
Hush W' Long & knees' (these churches have
~~
_J^Lny*J
have
AltTinnch
I had
Moscow
should let God
for the
would
have to raise the iron curtain full
length and stop persecuting any
people. However because Khrush-
his
Old
the
by
punishing. In order for me to take
Premier Khrushchev seriously in
Sermon on
1
murder
repeat
(who, He said, is a
why we should be lax in
reason
no
certainly be
that Jesus would
that the reforms be volun¬
I
tary and that men
straight regarding the views of Jesus
practicing Jesus' teachings.
r,v,n£ at these conclusions, with a view
of making
his own interpretations, he
ji
an
By Roger W. Babson
Babson
tional bulwark against the insidi- fooling themselves,
ous effects of inflation.
[author's note: should the reader
What Russians Mean by Saying
wish to examine the data used in arThey are "Atheists"
price inflation.
,
Jesus.
r-nmmnn
reasonable
degree of accuracy
how investors have fared in the
past
property, would
considered
outright
vate
Jewish People and
may be found in many Moscow
selection of common
libraries translated into Russian.
have kept abreast of general mar- assure you that I detest many They, however, would substitute
ket movements have realized gains things Russia is doing and was the teachings of Nikolai Lenin,
larger than necessary to offset in- glad to get out of the country, the founder of Communism, in
creases in the cost of living.
In Nevertheless, I can always learn place of the writings of St. Paul.
addition to protecting the inves- something wherever I go, and When a Russian does this, he
tor from loss of purchasing power, from any nationality. Those who feels justified in calling himself
lioas 01
eliminate pri¬
countries, merely to
Mr.
21
(173)
Accordingly, investors who
have committed their capital to a
little or no lniiaiicm.
Using the U.b. Bureau ot Eaoor
Statistics
The Commercial and Financial
Chronicle
.
in the price level.
ana siock .prices are
that proms
.
conclusions. With only two noticeable exceptions the period has
been one of continuously rising
living costs or inflation, however,
mild. Stock prices, contrariwise,
have experienced numerous
changes of direction in varying
magnitures, but over the longer
term their primary movement has
also been upward and has • exceeded in rate of increase the rise
availab
best
.
Dempsey
period, however, the long-
entire
Annual Convention, Bal Harbour, Fla
trend has been one of rising
term
or inflation and provides
with a reasonably reliable en-
prices
us
which
in
vironment
to
merits
protective
of
TT7
common
n
(
LJf
By far, the period reflecting the
acute inflation was that of
st. LOUIS, Mo.
most
1916-1920
during
of
doubled.
which
the
cost
Concurrently,
stock prices managed to record a
gain of about only 20% and in¬
living
vestors suffered
of
purchasing
power.
Fund
ton
On the other
Fund,
opened
f i
in
c e
Louis,
1916-1920 period
merely the meteoric culmina¬
an
readily
of the
inflationary price trend
in 1900 it becomes
the
20
was
values showed
115%
stock
appreciation of
years,
common
an
the
over
period,
same
a
noticeably
better
than
shorter period above,
in
the
o
s
performance
Supporting
A
Despite
Stocks As
Hedge
the
successive 20 year periods
(19011921, etc.) through the latest beginning in 1928 revealed that in
only eight of the 28 studied did.
of
cost
than
all
living
common
increase
stock
in
occurred
about
the
h
p
new
the
same
Russian
leaders.
of-
authoritatively
Rail-
Jesus'
Sermon on
Exchange
Building, will
When
I
the
way
headed
be
seeing
on
Jesus
the Mount
Richard Harrison Adds
(Special to The Financial
Bronson
staff of
would
of
point that a very small porof
the
Bible
consists
of
Jesus' own words. They realize
been
—
added
Dunne
Opens Branch
Dunne & Co.
branch office at 4
Avenue,
under
the
jjICKSVILLE, N. Y.
hag
opened
jerusaiem
heartily approve the
a'
rnanagement of F. J. Herman,
Eisenhower
President
Jesus
has
Calif
2200 Sixteenth Street.
,
Heller & Meyer Branch
fortunate
But,
Chronicle)
John O.
to the
Richard A. Harrison, Inc.,
cArRAMFNTO
help backward nations and unpeople.
to
talking with some
Brown
that
education, etc. Jesus also
warned against wealth as a handiCap to
proper living. Certainly,
tion
W. H. L. Sullivan
as
serve
was
people
proper
the
Sullivan, who
will
as
cannot
prominent Communists in Moscow
about Christianity, they first made
by
H. L.
William
(I
of their less fortunate
desire
located
fjce>
Jesus
F,
joined the staff of Dempsey
Co., 1024 J Street.
all
are
fed,
housed,
and
clothed, and that
those who are qualified have a
feel
may
toward
care
and
Russia
as
a
whole, as Moscow was the
only city which I visited.)
speak
dent.
The
churches
Protestant
is
by-)
&
chapter of Matthew) and
relate it to our present mode of
life. It agrees pretty well with
the Communists' goal of taking
the
of
branches
of
do
the fifth
Pacific
Coast
followers
ask
that these
insisted
NEWARK, N. J.—Heller & Meyer
volun- hag opened a branch office at 1164
tarily and not by force
The
d Blvd
under the manwicked massacres by the Com- Raymond Blvd., under
munists in Hungary and other agement of Abraham J. Meyer.
changes should come about
district repre¬
Mr. Sullivan
has been
•
associated with the Wellington or-
previous
Pittsburgh,
ganization since 1956. His
unfavorable
implications of the preceding paragraph, similar comparisons of all
the
Mohammedanism, and Confucius
the founder of Confucianism.
Wellington Dis-
I
Peter A.
—
Elinor
and
Bifarella
column to read anything; but
ask you to read Jesus' Ser¬
mon
on
the Mount (as found in
St.
sentative.
Evidence
I
E.
Presi¬
e
Welch,
com-
not
nearly so
While prices did rise 151%
severe.
over
plight
long-term investor in
stocks
mon
the
that
apparent
my
dhism, Mohammed the founder of
do
Calif.
MODESTO,
have
Seldom
Unitarian branch and some of the '
it
J
began
JTTIPP
Teachings and Communism
of-
an
the fact that the
which
.
(Special to The Financial Chronicle)
The Big Difference Between Jesus'
I am not acquainted with all
and Wellington Equity the church denominations in this
country; but I am told that the
has
announced
tion of
will
jng organization for the Welling-
hand, if consideration is given to
was
majority
Jesus was the great leader and
founder of Christianity, just as
Buddha was the founder of Bud-
tributors, Inc., wholesale distribut-
substantial loss
a
nt
-LiUUlD VyiliGC
stocks.
the
they do not believe that Jesus was
the "Son of God." They say that
me -
: ~r\
,
WelllHfftOll ODGHS
the
test
but
.
more
prices. These
periods
which
headquarters were in
v.'-:
' '
H
prl
P eU*
I
-j
n
T
n
n^llKS
,2Hfj
IJcUIIYO
Offov RaITM
Ullol DUI1U IkfcUCD
12
The
0ffered
Federal
13,
Jan.
Land Banks are
$232,000,000
of
consisting of two issues;
years of extreme infla$150 000 000 of 5.40% bonds due
tion
(1919-1923) or began in pe-\Dec>' 20, 1960 at par, and S82,nods
of excessive
stock market
000 000 of 5Vs %
bonds due Feb.
speculation (1928-1930). In all the
20 'l970 at 100V4%.
eight
periods,
beginning
1931
'
through 1938, stock prices rose
The offering is being
more than
living costs, the appre- through John T
Knox,
ciation varying from 100% to 370% Agent,
New York •City, and a
ended
bonds
in
_
made
fiscal
of
the
increases in living costs.
Considering
concern
over
current
the
inflationary
actually
began in
parative
years
the
results
may
prove
widespread
perils
of
1941, the comof
the
past 18
more valid and
of
group
dealers and dealer
banks'
Proceeds from the
our
which
trend
nationwide
sale of the
term
used to repay shortborrowings and
provide
funds
fot
bonds will be
the
lending
operations of
banks>~^
costs
the
tire
in
only 12 of the 18
period
pressive.
are
While
much
more
prices
consumer
their values
by 475% or four and
one-half times the amount needed
to offset the
loss in the
of
common
the
stocks
purchasing
dollar.
Clearly,
fulfilled
their
function of
protecting the investor
against a loss of
capital.
.
When viewed in broad perspective the results of the
60-year pe,
ri°d
provides
us
with
several
feww
0
17
* •
k. ^P^rry Joins
Nat'l Sees. & Research
en-
im-
recorded
an
overall
increase
of
106 %,
common
stocks
increased
power
ample capacity to repay
years,
cumulative results of the
conditions assure
loans do pru¬
dent bankers kn^jnoney - or wise
businessmen borrow it. Thus, a definite
sign of prosperity in any area is a con¬
sistently rising trend in outstanding bank
Only when underlying
illuminating.
Although stock
prices increased more than living
Puerto Rico's progress
Pnlif
t
-phinin F
LOS ANGEEES, Cal f.
P_ •
Sperry has joined National Securities & Research Co P
,
650 South Spring Street, as a
wholesale representative in the
Pacific Coast area,
position, Mr. Sperry
Carter, VicePresident in charge of the Pacific
Coast territory. Mr. Sperry has
loans.
The soundness
omy
is
stantial
of Puerto Rico's econ¬
indicated by the steady, sub¬
advance in commercial bank loans
GOVERNMENT
In his new
will assist Rufus L.
been in the investment business
on the Pacific Coast since 1951,
recently with The Parker Corp.
p
0
Box 4591
San Juan, Puerto
Rico
mi
from less than
more
Rico's
also
the
$120 millions in 1950 to
than $360 millions in 1959. Puerto
industrial
same
production
during the
rrseTi
index
same years, at
has
much
impressive rate.5, '
good values should
their own
banks or .security
Investors who seek
consult
dealers regarding
of. Puerto
the tax-exempt bonds
Rico, and of its Authorities and
Municipalities.
DEVELOPMENT
BANK FOR PUERTO RICO
' Fiscal Agent for the Commonwealth of Puerto Rico
37 Wall Street
New York
5, N. Y.
Historic
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Registraon
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Carson
BCaliforn onds
BStoaef Vetorans'nds
43%%%,
5%,
C
P
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o
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H418Cou0sret $10, 0
CMaoripuonsaty
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New
«(A!pjrnCSatoil-efhgdm¬ Sawthosle,mrnduficp akFSnso,umreicl - Fadn iNfunedws (1St9a5uesconridfthauezscqifromthn Veadsinpyblthocrf
Provisn
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roegisntably
"^Saotne
ealigsb
the
'
bewil
and
Californ Califaornd
semi-anul f$5o0t,hre Sacrmento,NYNYeowr.k, CPonrsotrgucaim J1uo9nn8e,0,indttheaerortsent Stthawhesoele, tamaroneuondtf le3wtnhesoa0ksnt SaLAcraomgneesdltos,, oocpoinunsefl, bbetolhinevsdes CPonrsotrgucaim S1e7act0nio9dn) itpnuhroese, CSontsatrucei SCatloiafornef poursfe detpahrtmens iBsounedds, Vetrans tahwcoridene
of
■
Yorkt
State
Prinacnipadl O)1ctober foirnnia lricansurc
part, acrued oofption princpal two
State in
1958, inch
BAooncdfts, J1a9nu6,0ry O1,1c9to6be-8r5,
Coupon Rote
with
for
of
.
1962'
1961
Due
SeWries
Chapter program the the the fone rds
State
e
H
3.00% 3-15% 3.25% 3.35% 3.45%. 3.50% -3.5 % 3.60% 3.65% 3.70% >100 100
' 100 3.80% 3.85% 101% 101% 100% 100% 100% 100 100
or Price
Yield
$50, 0
the
hi
for
or
5%
5
1967*
1963 1964 1965 1966
5
5
5
5
5
968 1969 1970 197' 1972 1973 1974 1975 1976 1977 1978 1979 1980
I
4%
3%
3%
3%
"
3%
3%
3% 3%
4
'
4
4
,
-
4
4
1981* 1982* 1983* 1984* 1985*
4
4
4
.V -C
4
4
PRICES
MAYOTIUNERLRDSS
i(nAbtjcearroudesde) SCeris DI1ec9m5,ber 1i9n6:c-8h5,
IS UES,
j
$50, 0
CoPnrsotrugcaim
195 , Dated: J1,une
State
A
Sht"n..'dlc:y,
i1n9t8mscuoa-btujhe5rin,g 'piapnclaurrsrds,t, O11dce9taoc8bieb,0r '< Thp
(jf/orablt
Due:
JI
Amount $1.30 , d 1.30 . 0 '1.30 . 0 1.50 . 0 1,50 , 0 1.50 , 0 1,60 . 0 1,60 . 0 1.60 , 0 4,70 ,0 1.70 , 0 1,70 , 0 2.0 .0 0 0 2.0 .0 2.30 , 0 2,30 . 0 2.30 , 0 2.50 , 0 2.50 , 0 50 .0 2,08000 80 .0 2,80 , 0 2.90 , 0
2.0CO
2
2
:•*
1
fCoode)r
Vetrans'
100 100 100
Dated:
Vetrans'
B
o
n
d
s
,
A
R
M
A
O
U
T
N
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T
S
S
,
,
dDA1l7ice0ag9o
San
Legality
psaort
tion
State
Mis ion
Purpose
letcnhaslaoendt
$1of,0
fu'snpdecsia.l
fInvoestmr Saecnudrity
Exemption
Redmption
after her in.
•Bonds catoll
and
;
upi
uyui
or
Yield
Price
Due
3.00.% 3.15% 3-25% 3.35% 3-45% 3.50% 3.55% 3.60% 3.65% 3.70% 100
4
100 100
V %: ;
3.80% 3.85% 101% it)i %
100 100% 100% 100- 100 100 100 100
1961, 1962 1963 1964 1965 196 ' 1967 [1968 969 1970■ 1971 1972 -1 973 1974• 1975: '1976; 1977: 1978 1979■- 1980 1981* 1982* 1983* 1984* 1985*
•'
Old
>*
Customs
!
j
[l
!
!
!
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.
Coupon Rate
5
~5%
*
5
5
-
5
S
"
5
4%
3%
.3 /4
4
4
"V.
4
4;
4
,
*:
4
4
41
'
4
•4
of
Act
Due:
-,T;"
BCualifdorngs,
MH1oo8nutse4rey
Amount
1,60 . 0 1.60 , 0 1.60 ,0 1.60 , 0 L60 .0 Q i.80 . 0 1.80 . 0 1.80 , 0 1.80 , 0 1,60 . 0 2.0 .0 2,0 ' 2,0 .C0 2.0 ,0 2.0 ' 2, 0 . 0 2. 0 . 0 2. 0 . 0 2, 0 . 0 2, 0 . 0 2.40 0- 2,40 ,0 2.40 .0 -2,40.(^) 2,40 , 0
$
blistturhenedcrwyivfoams
tsubjec on describ isaaunfsnedd whrwooits
19m8actu-rihng5, ipnjaatlceurr,rus-eds, J119,8ua'0',fanteer i'\ bonaowfdhreecsrt1d. awaose-hsler
•Bonds catall and" herein.
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Stran han,
j1.^ -1
*'
I
•
1
I
4
7
24
The Commercial and Financial Chronicle
(176)
•NEWS ABOUT
County National Bank, Worcester,
On
Mass.
Hanover, Pa., converted into
Jan.
on
Mr.
Mee
12.
also
is
a
Jan.
Director
of
tional
Bank
of
Peoples
the
2,
bank
Peoples
under
.
.
Bank
the
a
Thursday, January 14, 1960
.
of
Georgia/Atlanta, Ga., held on Jan.
12, William C. Wardlaw, Jr., was
na¬
title
elected
of
the Board of
to
Directors.
'
the
Providence,
BANKS AND BANKERS
New Branches
•
New Offices, etc.
•
$
.IV'
v*
*
BANK
The
election
of
SCHRODER
Assistant
eight
Vice-Presidents by Chemical Bank
New York Trust Company, N. Y.,
announced
was
Chairman
Harold
William
are:
Dec.
on
H.
8
Deposits
by
banks
U.
in
the exception of
the
30,524,849
and
Cash
due
&
the
Undivided
Trust
Company,
New
Jan.
on
York,
was
U.
Jan.
Board.
525,666
269,689
NEW
BANK
Dec. 31/59
resources-
Deposits
Cash
and
lrom
U.
S.
Govt,
curity
Loans
4,140.956,972
3.610,441,881
1,180,028.479
Deposits
Cash
tiiscts.
456,816.268
532,689,008
2,222,140,161
2,169.068,481
67,178.864
62,997,138
profits—
&
S.
rity
resources
Deposits
Cash
—
——
&
due
U,
S.
Doelger,
of
S
S
was
N.
169.675.877
160,209.786
145.054,658,
27,346,278
19.416,545
46,764.664
47.292.796
secu¬
Deposits
Leslie
87,754,336
'87.736,876
profits—
2.324,468
2,710.871
U.
S.
7,038,705
Harris and
Lloyd W. Pederson
Vice-President
&
in
the
Personal Trust
Division, and Fred
\V. Albright to Assistant
Secretary
in the
Banking Division, it was
Jan.
7
by
Hoyt
Ammidon, President.
Mr.
in
Harris
1947,
June 30/59
S
191.234.140
189.092.870
23,247.450
22,322,952
47.029.750
51.485.703
will
continue
as
60,380.223
716,333
618,010
MEADOW
OF
administering
the
Trust
Com¬
Correspondent Bank In¬
Service.
charge of the Investment Research
Department and will continue in
with
Total
resources.—
trusts
and
estates.
Albright joined
1935, and has
the
in
U.
S.
449.684,050
394.215,184
due
from
Loans
<fc
108.657,776
discounts 269.843,766
166.289.500
profits—
2.777,784
•
$
£
Dec.
■
'
Total
resources
Cash
S.
Loans
&
AND
YORK
June 30/59
$
Cash
—
<fc
due
U;
S.
rity
Total
&
18,828.403
22,798,136
89,926,950
profits—
93.828.924
1,288,677
1,503,806
#
.
J.
HENRY
#
£
SCHRODER
NEW
BANKING
YORK
Dec. 31/59
I°'al
resources
cSh 2
CORP
June 30/59
119.187,345 122,708.872
Yrom
,8'"2-497 85'602'«8
vbTs
Loan*
Loans
vlded
and
45.749.989
42.060,018
23,406,770
1 673 277
undl-
profits
—
U.
7,655,514
the
an
that
of
many
turers
Trust
&
due
S.
with
Trust
June 30/59
s
436.060.296 427,807 016
394.317.575 388,043.510
111.027.167 128.551,237
—
——
discounts
profits—
81.291,087
66.281.905
179,577,150 175,483.995
7.001,348
6.087,339
Jjf
Total
Dec. 31/59
Sept. 30/59
$
$
bank's
rr
&
due
^nkJ
S. Govt,
holdings
&
Undivided
from
consumer
22.619,562
-
14,277,675-
security
39,944,633
45,454,283
discounts 105,898,304
101,608 944
profits,.
The
National
and
Trust
1,283.103
2
Commercial
Company
stock
from
of
Bank
Albany,
$5,922,975 to
Effective Dec. 31.
ber of shares
Deposits
capi¬
—
&
due
S.
of
the
CO.
J.
June 30/59
$
$
283.445.449
262,129,370
257,822.850
47,591,858
&
The
Cash
and
from
U.
S.
curity
Loans
—
discounts
profits—
54.650.876
60.490,300
64.852,368
4.054,952
61,757,370
592,946,953
1.289,840,819
1,179,574,573
profits—
22,181,608
38,952,349
State
Bank
Mich,
and
3.655.464
Nelson,
Assistant
formerly
made
was
Assistant
Central
Becker
Assistant
Company,
cording
Frank
has
been
Cashier
Bank
an
ap¬
in
THE
the
Cash
and
Pa.,
elected
Worcester
BANK
in
his
1928 with the
Company
which
by
1
Branch
of
of
merged
1946.
In
The
Trust
Pittsburgh,
Pa.,
1955,
Oakland Office
and, three
East Lib¬
Mellon
he
the
later, became
of the Barclay
years
Assistant—^Janager
Office.
/
Scranton
384,549,754
382.735.038
as
543,143.394
529,413,272
775,112.415
752.099,698
profits—
25,894,640
23,449,355
*
dividend, the First
Total
in
(Number of shares out¬
standing 2,000,
OF
Total
par value
&
due
holdings
Loans
&
Undivided
->
from
——
Govt,
CO.
3,556,796
4.50#.559
discounts
4,958,423
22.854.21Q
21,129,669
profits—
1.188.857
933,017
Co.
U.
S.
June 30/59
359,317,289
324.939.659
329,903.835
..-^50,820,962
55,968,717
Govt,
security
y,.——- 146.098,602
156,284.806
discounts 132.522,878
121.341,661
Undivided profits—
6,131,326
6.267.300
&
/
By
a
\
'
lit
stock
National
from
■h
Bank
of
OF
■
CONDITION
31.
120
the
Broadway,
close
by
the
to
the
in
York,
New
of business
published
with
of
Cash,
fi
S,
due
H
par
'
balances
banks
and
with
trust
and
ances,
of
process
other
compa¬
reserve
cash
bal¬
items
States
from
rity
Loans
<fe
Undivided
direct
and
the
600.150.53
.4.—
TOTAL
J.——
—
60.000.00
'---
ASSETS
Demand
$4,328,481.14
deposits
viduals,
BANK
Other
TRUST
LIABILITIES
+This
65.177,552..'47,056,190
115.407.034
112 240 002
3,306.519
3)127)221
AC¬
$1,364,767.71
LIABILITIES
AND
ACCOUNTS-
$4,328,481,14
capital consists
total
/)
Assets
par
of
common
value of $500,000.00.
MEMORANDA
pledged
secure
other
profits-.
539.767.71
;
—
CAPITAL
bank's
$
325,000.00
—
profits
with
/
$500,000.00
COUNTS
June 30/59
discounts
$2,963,713.43
ACCOUNTS
Capital +
Surplus fund——
stock
75.270,246
$525,665.69
2,438,047.74
—
CAPITAL
•
283:847.242 246,447 721
260.044.776 221,578 922
and
:
liabilities,
CAPITAL
AND
KENTUCKY
indi¬
of
partnerships,
corporations..-..
or assigned to
liabilities
and
for
purposes
——~
$109,896.88
I, CHARLES J. SKINNER, Treasurer of
the above-named institution, hereby certify
that the above statement
Is
true
to
the
best
of
my
knowledge
and
belief.
LE
PAGE]
Correct—Attest:1
fy
G.
At
$1,871,451.99
Government
stocks/
TOTAL
secu-
holdings-—
in
!
collection
improvements232,068.51
Furniture and fixtures
416,050.97
Other assets
1,148,759.14
Value $100.)
fn
92,829,948
Govt,
at
1959,
made
York.
New
nies, including
TOTAL
Norman, Okla.,
LOUISVILLE,
banks
U,.
York,
31,
call
a
ASSETS
TOTAL
resources —a
New
December
on
accordance
Superintendent of Banks pursuant
of the Banking Law of
(Number of shares
Deposits
Cash
^
provisions
State
Undivided
FIDELITY
COMPANY,
OF
CORPORATION! TRUST
capital stock
$350,000. Effec¬
to
if
CITIZENS
tjs
common
$250,000
Dec.
&
Avenue, New York City of-
dividend, Jhe Security
increased its
become
LIABILITIES
holdings
Loans
has
Harris, Upham
assistant manager of the 445
as
Park
Upham
Belter
with
from
0
4,958.277
W.
associated
Corporate
354.022,619
—
due
—
Company.
Leasehold
Dec. 31/59
security
—
With Harris,
Leonard
obligations,
COMMONWEALTH
DETROIT, MICH.
&
formerly
was
Investment
.
*
resources-—
banks
T.
the
v
United
$100.)
THE
Deposits
to
Company, 818
He
guaranteed
BANK
a
Dec. 31/59 June
30/59
$37,662,485 $36,438,606
32,663,845
31,693.445
resources
Deposits
S.
TRUST
pA.
Allen
&
St.
Na¬
common
$
AND
with
*
Lemmon, S. Dak.,
capital stock
from $50,000 to $200,000.
Effective
Total
SAVINGS
PITTSBURGH,
Copley
added
COMPANY
Dec. 31/59
BROOKLINE
of
Colo. —Robert
been
Seventeenth
of
discts:
Bank,
Nolan, Sr.,
Director.
Copley Staff
DENVER,
Swezey has
$
1,753.074,448
outstanding 3,500,
National
Joins
^
holdgs.
stock
a
Co.
Sept. 30/59
se¬
tional Bank,
tive
announced the elec¬
Robert E.
tion of
By
Russ
(Special to The Financial Chronicle)
the
Bank
joined
Assistant Man¬
as
Jamieson
REPORT
1,937,121,889
❖
Cash
banking
Union
with
Undiv.
affiliated
&
Building. He was
with
King Merritt & Co., Inc. and H. L.
DETROIT,
1,785,825,595
banks—
&
become
Co.,
formerly
due
Govt,
Loans
has
±
OF
1.977.242.915
ac¬
announcement
began
S.
curity
Mel¬
Denton, Viee-Chairman
Becker
—
With Wulff-Hansen
'
$
resources-
Deposits
the
Exchange.
Wulff-Hansen
:'f
MICHIGAN
Total
Stock
San-
of
l'ice.
%
NATIONAL
Trust
of the bank.
Mr.
title Montcalm
new
*
of
and
Pittsburgh,
to
R.
on
V
Dec. 31.
Metropolitan Department
National
.y:■
Edmore,
Savings Bank,
Bank.
increased its
Treasurer.
* ;/v : *
L.
*
155
FRANCISCO, Calif.—Ernest
with
Edmore,
State
Treasurer
Vice-President. Clar¬
Doty,
Edward
erty
of
ings Bank and
Community
Linden, N. J., announced
Jan. 5, the promotion of David
lon
*
affiliated
Inc.,
members
Coast
Colant
staff
559,037,770
discts.
*
U.
the
655.236.328
se¬
holdgs.
&
Undiv.
602,550,198
will
ILL.
due
banks.—
Govt,
42,117,029
Bank of
on
—
1955.
he
(Special to The Financial Chronicle)
June 30/59
2,722,698,442 2,648,332,415
2.387,106;515 2,349,177,291
Dec. 31/59
Directors of
banks
Director
Deposits
from
holdings
Cash
was
resources-
Govt, security
$6,-
(Num¬
$7.50.)
Mee
TRUST
N.
The
CHICAGO,
become
Co.,
Street,
Now
n,
Jan. 2, consoli¬
dated under charter of State Sav¬
287.129.732
banks
U.
U.
a
Total
new
outstanding 829,216
Timothy J,
AND
Scranton, Pa.,
York,
219,120.
resources
1.639)483 The
$
by the sale of
stock, increased its common
tal
BANK
Dec. 31/59
ager
2
New
JERSEY
PATERSON,
in
resources—-188,314.759 181.627.090
170,921,606 164,454.831
Deposits
Cash
NEW
#
COUNTY TRUST CO.
STAMFORD. CONN.
o
*
OF
Dec. 31/59
Stanton, Mich.,
career
*
d
Smith.
*
CO.
the
Com¬
Hoboken Bank for Savings.
pointed
from
Govt, security
&
*
TRUST
Company, Beneficial
J
TRUST
a r
capital of $200,000 and
of $300,000.
surplus
a
he
years
operations.
Previously he
affiliated with the Manufac¬
was
*
CONN.
National
C h
&
to
Geauga County, Ohio. The Presi¬
AND
of Paterson, N. J., where, in
official capacity, he directed
Treasurer
AND
County
Chardon,
Depart¬
pany
179.281,108
5,369,446
holdings
Mr.
6,759,755
Bank
4.559,171
par value
^0ldnnS8
& discounts
Surplus
associated
Jersey
168.359.275
BANK
of
issued
CONTINENTAL ILLINOIS NATIONAL BANK
nine
beeen
profits—
——_
&
Loans
discounts
of
;f
New
discounts
resources—
Deposits
32,102,264
secu¬
holdings——
Undivided
Credit
the past
since 1955 to
Dec. 31/59
-1'I
S
U.
v
32,926.292
Govt,
Loans
$
172,278.697 184.995,489
152,442.898 170,381 726
from
banks
charge
assume
Jan. 11.
ence
TRUST CO
/
Dec. 31/59
..—
Munsick,
Mr. Zaper¬
has
P.
THE FAIRFIELD
resources
George
Consumer
on
104.605,461
CONNECTICUT
Loans
Deposits
bank's
94.936,283
*
THE
s
security
——_
Undivided
Undivided
Total
will
70,165,912
Govt,
Geauga
Bank
been
in
Director.
a
has
Birr
Pacific
a
53,198,200
holdings
The
has
Jan.
on
SAN
from
I*.
charter
a
from
June 10/59
364,201.006 326,490.336
due
&
banks
Currency announced
Board
request,
FRANCISCO, Calif.—Eugene
some
J.
J.,
CO.
399.643.243 376.490,336
Deposits
Office of the Corriptroller of
as
Brehaut
with
The
Y.
31/59
D.
#
'
R.
Loans
$
;
the
bank's
Birr Adds to Staff
SAN
value $25.)
par
steadily
echelon—.
(Special to The Financial Chronicle)
Killpack and the
Undivided
TRUST
of
capital stock of $3,(Number of shares out¬
James
N.
the
with
*
VNB
Director
continue
bank has
1,618,534
v.
ROCHESTER
ROCHESTER. N.
v
administrative
BANK
Trust
Bank
and
At
dent is James M.
Cash
94.268,368
LINCOLN
an
assistant
in
the
Division. He will ,con¬
tinue his duties with
that Division.
34.374.555
secu-
holdings—
Banking
NEW
the
of
National
/
the
Chairman of
Cashier,
Total
——51,713,809
Govt,
rity
banks
com¬
been
ap¬
and
and
in
management
climbed
(1934); Vice-Presi¬
(1940); Senior
(1949); Executive
Vice-President
(1953), to Vice-
Company of Morris County, Mor-
411.469,876 359.901.869
&
banks
Cash
FEDERATION
has been
charter
his
Vice-President
stock
the
Dunham
with
cashier
dent
Toledo,
was
*
4,
Secretary
Treasurer
The
of
merger
standing 126,500,
the
*
from
com¬
common
with
Dunham
upward
an¬
connected
colleagues, particularly in
Mr.
ristown,
June 30/59
s
Deposits
Cash
BANK
s
COMPANY, HARTFORD,
company
since 1930, has been
Assistant Sec¬
Mr.
NATIONAL
Dec. 31/59
the
administering
BROOK
':,^v
U.
~
Mr. Pederson has been
with the
company since
1941.
He
is
in
pany
Assistant
by Kings¬
President.
Assistant
of
was
FREF.PORT, NEW YORK
handling
pany's
retary,
pointed
a
National
Management Corporation and the
THE
a
personal investment accounts, and
will also continue his
duties in
that capacity.
Mr. Maher,
12
$
28,
The
under
162,500.
credit
96.530,040
Undivided
senior account executive
vestment
Jan.
on
elected
was
City, N. J., it
$
During
secu¬
joined the company
and
title
First
the
nick
profits—
Undivided
Invest¬
Division, Donald Maher to
Assistant Vice-President
in
the
on
Cassidy,
of
of Jersey
1,123,957
discounts
ment
announced
Bank
Dec.
Bank
$3,000,000.
Toledo
*
25,081.774
$
holdings
,
to
M.
*
.
Comptroller of
on
National
effected
1,000.000
■,
New¬
Spring¬
24,712,212
of New York
T.
of
and
*
>|5
^
stock of $50,000 with and into
mon
Hayes Circle
Reinhold Zapernick
from
Govt,
rity
Loans
States Trust Company
has promoted David
due
Currency,
of
announced
173.978.750 172,269,186
—_
&
training policies.
•; *
the
the
Federal
Director
June 30/59
NATIONAL BANK,
ISLAND. N. Y.
banks
V-
*
of
■
pany; Waterville, Ohio* with
Bank
President, announced.
Dec. 31/59
Cash
'
connection
nounced the merger of the WaterState
Savings Bank Com¬
$
15.440,875
14.914,843
resources
1,754,825
office
the
■//.
Y.
&
profits
1,000,000
The
serving
COMPANY,
holdings
discounts
profits—
former
Jan.'1.
Mr.
occasion
on
94,249,026
ville
field Avenue Offices.
from
LONG
discounts
The United
*
State
J.,,
on
secu¬
SECURITY
178,729.657
holdings-
Undivided
3.524,907
N.
ment,
Sept. 30/59
Total
&
177.416,708
3,662,732
National
Trust,
Lafayette
Brooklyn
from
Govt,
rity
Loans
80.429,043
183,162.626
profits-
YORK
Dec. 31/59
banks
•
77.997.519
discounts
Bank,
will consult
National
executive
on
longer
no
221,977,200
Toledo, Ohio, with
7,913.111
Undivided
COMMERCIAL BANK OF NORTH AMERICA
Total
due
Govt,
Loans
NEW
secu¬
Although
Valley
with
■...
Valley
Ariz.,
retired
100,768,711
the
$75,058,619 $80,636,946
64,183.239
69,635,079
banks
U.
'
,
1934
222,441,165
750,599
TRUST
—
;..
Dunham,
Phoenix,
since
discounts
539.768
Dec. 31/59
875,695.457
47,654,349
Mr. Michael
*
resources
&
Undivided
P
42,261,893
-
rity holdings
■'
376,468,634
45.799,421
secu-
L.
Bank,
386,463.441
The
BROOKLYN,
se¬
holdgs.
&
Undiv.
4.314.464.349
3.711,176,704
Total
banks—
46,515.308
bury S. Nickerson,
due
Govt,
Loans
H.
from
Singer, has been ap¬
pointed to the Advisory Board of
of
COUNTY
414,538,142
600.133
12.
KINGS
421,113.081
1,966,537
New York.
s
§
600.151
Sept. 30/59
s
Total
OF
YORK
S.
Oct. 6/59
328.053,666
due
par
■'/V
t!«
;
.
Sept. 30/59
———.
20,000,
v.,ti«
$
1.871.452
P.
Bank
U.
328,606.802
———
&
banks
OF
Dec. 31/59
from
«
Mr. Doelger is also a trustee of
Manhattan
Savings
Bank,
EXCHANGE
Deposits
CO.,
$
holdings
&
resources—
Cash
TRUST
$
—
Govt,
Loans
^
CORN
due
Undivided
the
CHEMICAL
S.
rity
Oct. 6/59
Director
a
National
Total
BANK
OHIO
'r.
291,709.015 279,565,874
&
banks
$4,194,863
profits
elected
12
CLEVELAND,
!iv
HOSPITAL
Deposits
Cash
from
E.
❖
v
resources-—,
ark,
by Horace
Chairman
of
the
Flanigan,
4.003,369
31/59
security
„/
William
profits—
ISLAND
outstanding
$100.)
*
NATIONAL
$1,500,000 to $2,000,000.
Dec.
30.
(Number of
Effective
shares
SOCIETY
'
COMPANY
S4.328,481
_j.
Govt,
421.982.833
tis
1
stock from
Greenbrier
•
*
320.003,766
339,951,702
10,805t337
11,814,964
275.933.819
Dee. 31/59
'
Flatbush
Advisory Board of Manufacturers
announced
S.
holdings
Appointment of Peter Governale,
of
*
TRUST
YORK
resources
banks
member
3,205,593
*
CORPORATION
"v" !
:
security
„—
t|».
a
value
discounts
\
Total
—
Deposits
U.
C.
undi¬
profits
Bank.
953,882,211
Western
891.838,109 867.440,913
'
.
the
to
from
>,"y'PSr
RHODE
12.264,100
27.051,658
discounts
Dec.
ropolitan Division.
&
tj!
;
stock dividend, the Amarilio
Bank, Amarilio,
Texas,
increased1 its common c a pita
Rainelle, W. Va., changed its
title
PROVIDENCE, R. I.
NEW
Total
Govt,
Undivided
•;v"'"v /:
-
13.240,619
&
International Division, and
a
'
S.
holdings
Loans
:•
■■;
By
East
June 30/59
149,311,828 175.838.852
secu¬
*
THE
&
Han¬
National
94.311,368
53,353.181
vided
due
U.
26,293,343
Surplus
Mr. Beam,
YORK
holdings—
Loans
Mr. Wydler, in the Credit Divi¬
sion, all are with the bank's Met¬
as
■
___
Govt,
rity
Benestad, James J. Brady, Albert
Friedlandery Oliver M. Mendell,
Francis W. Murray III, William
H. Schofield and Hans U. Wydler.
With
S.
NEW
61,764,422
—
Cash " & ' due '■ from
Helm.
They
Beam, Torleaf H.
B.
CO..
Dec. 31/59 June 30/59
'/.V. $
o/y S
70,341,515 102.857,949
resources—-
Cash
of
On Jan. 1, The Bank of Quinwood,
CO.
MICH.
982.109,770
—
——
banks.
TRUST
V-.v,
Total
resources
Deposits
Bank
;■/•■/•'■•.'
-.
TRUST
&
Dec. 31/59
Total
National
over.
DETROIT,
Revised Capitalizations
•
R. I.
DETROIT
THE
■Consolidations
National
Industrial
annual
meeting of stock¬
holders of the Trust
Company of
F.
RALPH
O.
L.
CREWS
[Directors
THORNEj
Number 5916
Volume 191
.
(177)
The Commercial and Financial Chronicle
.....
a
readiness
seriously.
They
professed
-
This
to nego¬
have not,
President Eisenhower's
State of the Union Message
of the Union address to Congress reports on
in the Soviet position, advises keeping military
spending level the same, comments on, importance of providing
foreign aid and offers guidelines as to how we can improve our
balance of payments. As for the domestic, economic front, the Presi¬
dent reports that 1960 promises to reach a record high; anticipates
a $200 million surplus for fiscal 1960, and $4.2 billion surplus for
fiscal 1961 despite projected budget increase to $79.8 billion; and
lists "nagging disorders" in price inflation, agriculture, labor-man¬
agement relations, civil rights, and other problems, requiring solu¬
tion. And, as if to answer queries about our defense posture, he
announces the successful firing and operational inventorying of our
of
Eighth and last State
Cites
the
realization that
he will be completing a record
number of years of working with
an oppositional Congressional ma¬
of policy
making, Presi¬
E i s e n-
dent
hower's eighth
audit
annual
and
of,
Ex¬
on
ecutive-Con¬
gressional co¬
operation in
dealing with
cold
the
on
for
Pres. Eisenhower
if
our
Federal debt
on
man¬
''yielding to the deceptive
'easy' Federal tax dol¬
bait of the
lar."
of the Message follows:
mon
Speaker,
members of the
gress, my
Seven
Eighty-sixth Con¬
fellow citizens:
years
I
ago
present office with
entered
one
my
long-held
resolve
overriding all others. I
then, and remain now, deter¬
was
mined that the United States shall
become
an
ever
for
source
realizing that
of
cause
an™al
a
but
peace—
peoples
for
determination
This
by the
mat
entire Congress
self-examination
definite
we
necessity
live
now
by
in
is
made
fact
the
divided
a
woiidiof uneasy
equilibrium,
our
side
committed
to its
protection
and
with
oWn
against aggression
by the other.
With both sides
world
ably
of
divided
this
in possession of unbeliev¬
destructive weapons, man¬
kind
approaches
state
a
mutual- annihilation
possibility.
No
equals this in
tance
colors
it
plan
say,
and
Other
do.
where
-becomes
day s world
~-
fact
of
-
a
to¬
impor¬
everything we
s
There is demanded
of
vigi¬
us,
lance, determination and the dedi¬
cation
of
whatever portion of our
resources
quate
that
will
security,
deterrent
things
All
we
to
provide ade¬
especially
aggression.
are
these
a
real
These
doing.
facts
emphasize
ot
a
just peace.
the
and
self-de¬
Nations Cannot
Themselves
Rich
Growing out of this con¬
the
is
cern
all
that
realization
newly
the
urgently needed in
developing countries.
-
of
are,
Indulge
remain secure and prosper¬
To
people of the free world have a
tinent, and prohibits nuclear ex¬ great stake in the progress, in
plosions there pending general freedom, of the uncommitted and
international agreement on
the newly emerging nations.
These people, desperately hop¬
subject. The treaty is a signifi¬
themselves, wealthy nations
must extend the kind of cooper¬
themselves to decent
living must not, by our
time, without
noticeable damage to itself, pur¬
Likewise
ing
ous
reject
we
be
forced
to
nation
for
a
frustrated
to
a
partners
and
of
prosperous society
the enmities it
But
nations.
years
the
isolation
will descend, and
incur,
will
which
it
disaster.
provide help.
recent
In
America
America's
and friends in Western
made
Their
through
gence.
did not become
softness
and
neither
we
nor
any
Her miraculous progress
Continued
on
DON'T MISS IT!
of
The 1060
free
Issue of k
they are
yet
insanity. '
_
agreements to assure against
resort to force in settling disputes
able
apparent to both sides
ing, countless
for
standing,
the
true
21st
Will Be Published January
foundation of
"ANNUAL REVIEW &
* The 1960
OUTLOOK" Issue will present the
opinions and forecasts of the nation's banking and
on the
probable course of the nation's economy in
* Get your
business perspective on
1—What
:v
ness
the basic factors
are
are
possibilities from the
the country's industries.
underlying the general course
the
major problems
':y "■/.'>
in 1960?
of busi-
that the various
-v'C'A,
industries face
prices and values of securities in 1960?
Administration's and Congress' foreign poli¬
program have on business conditions in 1960?
likely to happen to
3—What is
4—What impact
cies and
be through
the reopening, on Jan. 12, of ne¬
gotiations looking to a controlled
ban
on
the testing of
nuclear
corporate leaders
the year ahead.
in 1960?
2—What
peace.
the new year's
corporation leaders who manage
banking and
opportunities—most
well known to us all—
developing
mutual under¬
them
of
THE CHRONICLE
'
need for depend¬
Through the
!v
we
approach
this
apparently new
opportunity with the utmost
seriousness.
We must strive to
break
the
calamitous cycle
of
frustrations
and
crises
which,
if
unchecked, could spiral into
nuclear
disaster;
the
ultimate
is
Outlook
"Annual Review &
will the
domestic
Another avenue may
weapons.
The
Unfortunately, the clos¬
from the Soviet
met
with our
in an unsuc¬
develop
an
test ban, gives
the
clear impression that
their
conclusions have been politically
agreed basis for a
these questions and many
"Annual Review & Outlook"4 Issue of
Chronicle featuring the opinions and forecasts
others
in
of the
ing statement
scientists
who
scientists at Geneva
cessful
effort
to
find the answers to
You will
the
country's foremost Management
Executives.
opportunity to advertise your Firm, Corporation or
composite cross-section of America's most competent
and financial opinion which will appear in the January 21st issue.
* Do not
miss the
busi¬
Bank in this
ness
guided.
of
Those
American
tives
are
the
British
and
formed, individual and collective
opinions.
I am hopeful that as
not
the
negotiations begin, truth—
political optimism—will be
guiding light of the delib¬
Still
found
ment.
another
avenue
may
be
field of disarma¬
in which the Soviets have
in
Regular advertising rates
scientific representa¬
their
own
freely
the
for space
THE
will prevail
in this issue
COMMERCIAL AND FINANCIAL CHRONICLE
25 Park Place,
New York 7, N.
REctor 2-9570
Y.
great
self-indul¬
11
Through to the Russians
rich
A
a
into
the
internal moral and physical soft¬
ness
that
will be engendered,
ideals and in posi¬ will, in the long term, bring it to
This is
ing the same
course
peaceful
of
problem to
be solved not by America alone,
but also by every nation cherish¬
tion
for
can
a
sue
them neces¬
and investment
technical
assistance.
inspire hope, con¬
progress.
making its single goal
rial ease and comfort
by withholding from
sary
and
self-indulgence,
the mate¬
of its own
citizens—thus repudiating its own
spiritual and material stake in a
seek help
desire
natural
Their
better life must not be
that will
fidence
from, and finally become virtual
satellites of, those who proclaim
their hostility to freedom.
attempt
any
of
neglect,
less fortunate mem¬
to the
ation
bers
lift
to
levels
attain
erations.
trough the strengthening
spiritual, intellectual, eco-
defensive resources
omic
-
with
concerned
course,
fense.
surely be¬
can
pleasant promises until
tested by performance,
new
the
mportance of striving incessantly
foi'
friends
our
.
yet as in
other
issues
dividing men and
indeed, by all Americans.
nations, we cannot expect sudden
Proposes Measures for Peace
arid revolutionary results.
But
and
Strength
we must find some place to begin.
My purpose today is to discuss
One obvious road on which to
some features of America's
posi- make a useful start is in the
tion, both at home and in her widening of communication be¬
relations to others.
tween our two peoples.
In this
First, I point out that for us, field, there are, both sides will¬
shared
is
and
We
!
Lands
Underdeveloped
world nation can per¬
ourselves to
be misled by
other
cannot be for
peace
alone,
everywhere.
potent re¬
more
the
ourselves
Free World Should Aid
Why
peril of war.
Getting
mit
President, ; Mr.
to
begin
peace
While
The text of the President's State
Mr.
which would jeopardize our
commitments to them.
rising levels of human well-being.
Over the past year the Soviet
Union has expressed an interest
in measures to reduce the com¬
I-,";
;
re¬
participants in creating an
characterized by justice arid
age
farm policy, and
on
economy of
markedly different from
that of the early post-war years.
No
longer is the United States
the only major industrial coun¬
try capable of providing substan¬
tial amounts of the resources so
is
1960
come
debt, to live within our means,
the
economy
of archaic
to avoid
has
peace
pursued.
international
make poverty
to
success—we
some
rid
agement and
for
and they have
The..
•
unremitting efforts for de¬
pendable
the
to
we
and human misery obsolete. If our
efforts are wisely directed—and
latter, the
President asked Congress not to
lower taxes until a budget sur¬
plus makes it possible to reduce
regard
is
solemn
a
capacity
equal
economy.
restrictions
initiative
way
where
instance
cently been successful. A multi¬
lateral treaty signed last month
provides
for -The
exclusively
peaceful use of Antarctica, assured
by a system of inspection.
It
provides for free and cooperative
scientific research in
that con¬
in confi¬
we,
one
age—one
underdevel¬
to
can
is
vast new technological to impose its system on us or on
Europe
and Japan have
that, despite its capacity other peoples by force or subvert
great economic progress.
human
destruction, has an sion.
tibule of
war,
oped countries, and on our main¬
taining a fion-inflationary viable
our
our
Third, we now stand in the ves¬
assisting
With
There
found
eloquent
newly
fastened to that of these
countries; we will not act in any
Fruitful
that may lead to peace
brighter hope of diminishing the jects
intensity
of
past
rivalry
and with justice.
eventually of substituting persua¬
Certainly it is not necessary
sion for coercion. Whether this is
to repeat that the United States
to become an era of lasting prom¬ has no intention of interfering in
ise remains to be tested by actions. the internal affairs of any nation.
pro¬
posals for, our
country placed
stress
world
of
dence, make progress toward this cant contribution toward peace,
international cooperation, and the
goal.
I shall
Second, we note that recent advancement of science.
Soviet deportment and pronounce¬ transmit its text to the Senate
ments suggest the possible open¬ for consideration and approval in
ing' of a somewhat less strained the near future.
The
United
States
is always
period in the relationships be¬
tween the Soviet Union and the ready
to
participate-; with the
rest of the world.
If these pro¬ Soviet Union in serious discus¬
nouncements be genuine, there is sion of these or any other sub¬
jority and that
this is his last
year
free
Example
Exchange
I. C. B. M.
Tempered with the
economic strength
testimony to
the
striking success of the policies
of
economic cooperation which
freedom
the
other
is firmly
slight easement
Atlas
for
concern
peoples is the intellec¬
however, made clear the plans tual and spiritual cement which
they may have, if any, for mutual has allied us with more than 40
inspection and verification—the other nations in a common de¬
essential condition for any extent- fense effort., Not for a moment
do we forget that our own fate
si ve measure of disarmament.
tiate
25
page
26
26
(178)
The Commercial and
defense
President Eisenhower's
risk
of the
Through
and
ana
the'
World
Bank
d
f
other instrumentalities, as well
through
individual
action
by
substantial—
every
uluc.
Adherence
to
-
_
methods consonant with
and
reli¬
our
nation
satisfaction
in
hard
What
work;
the
mere
capacity
financial assistance. An
honesty
to
path of her
To
recognize
and
us
best
own
to
true
nation
every
thp free
frpp wo
the
world
rich o
or ooor
a, ric
these
poo , t
es
of
element
strong
of
tjons t0 exercise the national
dis¬
perity and
I
the
are
ready
tries
ties
peace.
believe
industrial
-to
fact
participate
to
of
the
achieve
determination
that
tionary.
progress.
Bettering
Balance of
The
ment
Our
need
for
quired
this
kind of cooperation is
underscored
atidin
by the strain
u\
in
me
our
uui
m
VIII
I
has
in
recent
stantially
tures
our
p
of
:
:
.
the
to
finance
private
1959
irv
approached
over¬
ter
invest¬
this
time,
deficits of
magnitude
impair
growth
our
and
I
A
over
we
must
rising volume
a
and
world
trade.
of ex¬
trade.
of development, will progress
only if they
use
their
own
•
their
the
can
gradually earned; there
and
to
progress in
tional transformation
own
will
resources
Moreover,
ox
cart
as
ful¬
a
be
na¬
only
is
no
easy
way to follow from the
to the jet
plane.
we
...
.
But, just
drew
sistance
in
on
our
novy do those
nations
Europe
earlier
new
for
as-
years,
and
so
emerging
faith and
that(;have this
determination
deserve help.
7
the last fifteen
years, 20
Over
nations
have
gained
the
political
in-
is
be
missiles.
emu
ships and
avvivv
armed
These
weapons,
ranging
earth.
on
become
O.E.E.C.
Initial
To
West¬
to
meet
situation
nu$ear
maintain
of
the
The
Euro-
war,
continue
we
carrier
our
forces,
vest
hltthis
trlat
be
The
people
of
the
veloping nations.
newly
By extending this help
we
make
de¬
hope
„
■■■
nations
and
those
that
have
OtheruL-icp
the
This
Our
I
the
Space and
to
effort
our
part
of
defense
is
often
be
an
research
development.
First,
America
has
made
great
the world's
fund
tho
of
years
knowledge
^a
for
.
in
Sijngle Out South-Asian
Area
Respecting
their
the major
focal
cern
is the
Here,
Aid
need,
points of
our
South-Asian
in
almost
two
five
nations
hundred
-
one
of
doing
are
million
a
standards,
so to make of
strong
spread
of
bulwark
and
themselves
against
the
an
ideology that
destroy
"■""'oy liberty
liberty.
~~
would
I
c
cannot
express
to
you
the
h of
depth
my
conviction that
in
that, in
our own
and free
world
we
1
In
must
1
interests,
cooperate with
others to
then- different
multi-year
r pians.
rilans
we
must
act
de-
community;
tant
■'
As
a
nation
we
can
pursue
successfully
7
these objectives
only from
position
of
broadly
based
a
strength.
No
quest
must
for
how
guaranteed
maintain
is
our
peace,
we
impor-
for
of
ultimate
more
outer
benefit
our
lack
engines,
of
military
forward
suffer
_
are
missile
success-
from
large
very
which
"
;
^
Second,
in distant
space
assured by
a
are
all mankind.
present
earnest
the
program, going
fully, does not
-
matter
they
exploration
for
space
of
but
foundation-stones
extensive
During the Interim
con-
people/ all working, and
working
hard, to raise their
in
and
"7-7- "'•••'
Keeping Up Our Defense
region.
alone,
history,
cisiveiy.
..--v..>■,
so
our
rocket
necessary
exploration.
I
am
high degree of
experts that the thrust
at
same
of
"""""""""r r* the
our
l"v oc!1,lv' 'Ul:
present "'"sues
wul
missiles is
are
is
xuuy
fully
engaged in negotiatadequate ' for
defense
ing the issue of aims
requirereduction,
ments.
Until
tanaihla
Until
dnfl
"military
a"!™' effectiveness
time
<
we
tangible and
mutually enforceable arms reduction
measures
miifnill.'
are
worked
out,
we
will
asS£5.3«U5
Amf.ri7 7.o
America
possesses
'
an
enormous
.
.
Third,
•'
--
the
•
-
--
-
■
United
States
-
is
'nto
space
for
exploration
ni
r
exploration pur-
needed
to sustain
free world.
;
when the original farm laws
were
an hour's farm labor
pro-
duced
only
uiu.y
uuceu
wheat
4.:,..,
tion
resurgent
then
une^uunii
one-fourth
as
as
much
jjiucii
at present. Farm legisla-
as
is
woefully
of
out
only
have gone on with
we
but
also
have
has
been
produced
while
war
left
producing
has long
America
been at peace.
Once
suffi-
again
I
Congress to
urge
legislation
w,
that
will
production
prosperous
year
closely
more
dom
in
farm
current
achieve
farm incomes.
problems
Avoiding
Another
a
of
refusal
to
come
agricul-
continuing threat of
together
with
the
01
our
ox
■
,,
..
has at
.
last
..
costs
lower
is
clear
our
see
employ-
the
in
any
water's
threaten to
edge.
Increases
drive
out
us
note
that
despite
major
benefits,
steel
gratifying
the
in
The
mands
that
dustrial
have
efficiency
be
steel
prices at
national
interest
in
the
period
which
—
of
has
—4—4
we
depend primarily
ously damaging to the nation,
We
mus5,
ln^atl0n as
would a firq that imperils
in-
u„iu
must
upon
re-
IJ
.management
management ana
and
labor
outside
the
bargaining
table, to consider the
interest of
fbe public as well as their mutual
"
.
'
it: seems almost
United States to
high
ducfivity, the final result
cussions Between
cushions
between
,
me
ours.
so
be
costs
my
inHIJ
I""
encourage regular dis»V
to
mar
de-
been
the good common
sense of the
sponsible ...V....V.V.WW,
individuals. It is
to
of
securely
were
an-
and
possibilities
as
once
"no
Qne 0f the lessons
of this story
is that the potential danger to the
entire nation of
longer and greater
strikes must be met.
To insure
course
in
this
productivity in the
manufacture of steel so that
price
increases Can be avoided;
~
'
against such
„
non-competitive, result
demands for too-high profit
margins or from increased labor
in
several of the
producers
peace
to
increase
no"uneed That*'There"*wilf
us
■
kets that
wages and
of
its crippling
Whether domestic prices,
also
all
Inflation's ravages do not end at
II.
is
is
general
tax.
War
It
to
need
and feel.
every American pays
achieyed
than
difficult
person,
city, state, or organized
g10UP can afford to evade the ob¬
ligation
to
resist
inflation, for
...
in
But
guises
many
prevent steadily rising costs
prices; calls for stern selfdiscipline 5y every citizen.
No
industry. ^Percentagewise,
companies
so
sometimes
and
this settlement the increase to
steel
is
■
can
settle-
a
opponent of
stop continuous and
price rises—a need that
pro-
.
bee»
living
requires
To
equai
are a11 l'eheved that
of
This
means.
must
we
that
to
settlement,
a
that
is
in
recognize.
persisting
Every Ameridisturbed by the prodispute in the steel
reaching
an
that
infla-
fiscal irresponsi-
citizens
issue
our
and
maintenance of stable prices.
We must prevent inflation.
Here
critical problem in
American
Deficits
expenditure, constant
reassessment of priorities, and the
is
the
net
Inflation
squarely
within
was
To
and
increased
Budget
Price
that
are;
persistent
sector
t,
mar-
operations,
steadily
"Nagging Disorders"
to
kets, make costly surpluses more
manageable, provide greater free¬
prior wage settlement since World
tor
gear
.
most
in¬
system which not
failed to protect farm
has
restraint
tention
date,
outmoded
labor-management stalemate;
of
war-
written,
meet
time.
a
v
Today our farm problem is to¬
tally different. It is that of effec¬
tively adjusting to the
changes
caused by a scientific
revolution:
The need to protect the
public
interest in situations of
prolonged
FS-SSI'as
poses.
food
we
increase
contributions in the past two
to
in
emergency
—
enact
.
u..
'
of
not
continue to be afflicted
nagging disorders.
ment
were writ-
an
during World War II in order to
provide incentives for production
for
hictn-v
Those
fj1
by
in
a
farms
even
history.
m °U1
the
Programs
refer
•
of
one
hardship caused
world-wide depression.
They
were continued
and their eco-i
nomic
distortions intensified
by
ClUvI
our surging strength is apooeveiyone. 1960 promises
be
.ment
as
soaring, threatening surpluses. Our
with
.
Toda-V
We
jaflh laws
ten 27 years
ago,
to redress
effort
income,
Parent to
„r
Cure
Mean
areas.
Our basic
Yor years
of
longed
industry and Hie protracted delay
is
-
met
downturn,
signs
.
I
Wab
were
j
jn
Agricultural
refer to agriculture
an
...
tection of the law.
that
>.
integral
and
security,
and neare
basis
exploration,Which
mistakenly supposed to
l
though
DroSDGrjt
can
security;
space
in
freedom
—-
Missile
a
IlctllUll
.
in certain instances
the denial to
to
the
effective and expensive.
care-
issues
.
economic
cSuiv conv^
potion of
a
directed
range
.
Next
al-
til"
an
tendency toward
bility;
strength.
have
I
Status of
nership between the less
fortunate
^
*
from
some
longer
a
imagined.
age
giant
A yeai ago,:when
tion,
will
necessary for a sounder collective
defense system,
under
an
our
which
to
steps"be taken to program our
military assistance to these
allies
on
this opportunity to
of productive
part-
the
.
'JLne
sea, is persuasive demon-
Moreover,
banner. No more startling contrast to a system of sullen satellites could
be
build
rate
a
freedom
the
ture;
stand
shoulder-to^shoulder w 11h
our allies for collective
freedom's
vye grasp
scheduled
stration of our determination
possible the enthusiastic
enrollment of these nations
If
is
deployment of
land and
E
a. supplement
with
.
one
lu!tcs
f
^ao
'at
steadily add to
strength of spirit and will
the
to
Vo
and
process
forward
g0
InZwhf
^st'ng'y effective
^ 13 u;1ed ,as
the
of
noltl
he
can
ean
Sary
industrialized
merit ~ rnnYtn f "Rn
great.
to
the
boldly
to grips with
continuing modernization of
is "a costly but neces-
that
amassing ot restrictive con¬
or the lack of
courage to deal
The
^hese^forces
Economic Cooperation could
help with initial studies. The
goal
js fQ enlist all
available economic
pean
in
bef°rre
We
alertL
ever
require solution
many
service units abroad,
always ready Army Strategic
Forces and
Marine Corps
divisions, and the civilian components,
Studies
,
less
by
our
for
Organization for
be
"luat
Yet
than
the
re-
assure Justice*
individual:
individual.
pvpi-v
Among
less
I
these
torn
strength-
every
.
Because of its wealth of
experienee,
must
peace
J-vi
continuous
•
ef¬
most
our
for
OV
fnr
for
trols
freedom
society.
Would
of
*
of
have alluded to
does not wither through
Impossible to
of
one
sentinels
UIIUVIO
IUVV.
sug-
the spiritual, intellectual,
God,
to
iu"8"'e
tbe
society is to
rn
with
remark-
destroy by surprise attack, they
will
de¬
>lng 80 ready achieved a high state of
fwilv Kini
liSi
W°r economic advancement, we will
and
in
invPctmint
ca^ capacity make brighter the outlook for
f, J
out
XnvM
fiee
^
'
woi Id
world order based upon
support in Vil
these
to
UUI
our
Use
eachnveTrCMSt^rffim
m
enter,: our .active
ainiJa
general
arid quick
..
in
ClllrCI
suuw
some
anywhere
nations.
Would
'
in
assist
en-
the
oceans,
will be capable of
accurate fire on targets
virtually
with the leaders of
several
ern
resources
gling with the problems
faith
luices,
forces,
fective
en-
possess
to
Qui1^8
all
a
&nd
and
accomplishment
tasks I
en^n§
tribute,
great
a
scientists
will
Polaris
able
auie
Further,
deavor to help lift the
scourge of
poverty from less fortunate nations. This will
provide for better
sharing of this burden and for
still further
profitable
fill it.
prepared
include ail industrialized
J
ground
is
American
deficient
particulars
and economic sinews of American
life.
The
A
steady V"*-t-—
purpose of our
an
r
velopment effort. During the
past
year I have discussed
this matter
nations of the. free world
to work
together in a new cooperative
demonstrate
destiny and
meeting
,va«
S
,JrPntlvFrom
filing lecentiy*
firing
rom
marines
^
^
f|10rD
This year,
moreover,
growing
numbers of nuclear-powered sub-
be¬
month, have similar
_
+
cause seri-
firm
7-
The
many
——
America had hone before,
of which
some
-
it
our
—
certain
C4PA,.
.
world
freedom.
common
are
forward
situation by
promoting
and
'
'
What
--
Stre"»themns
the Sinews »f
American Life
*.
de'sirabie"forthose'nations"which
economic
the
progress of the free world.
We must meet this
ports
in
visited last
anything
own
check
that fKoiP
their
sure
'
IVliot
area
chnrtiv
"v
iKof
pupa
"
believe
I
can
the
on
supports of
in_
the
is
strains
ous
and
J..
This
free society.
own
labor-management
the
mitteci shortly
test
gineers, who in the past five years
have had to telescope time and
technology to develop these longrange
ballistic
missiles, WtlGTG
-
difference
Other countries,
billion
would,
*
disaster
needs.
Continuing
the
world
progress
dollars.
like
spell
may
tween
assistance
four
rr*o L'A
'
own part of this great project be
amply and cheerfully supported.
Free-world decisions in this mat¬
nations. In
deficit in balance of
pay¬
our
"
mc
5.000
over
re-
ships
voluntary-
abiding, cooperation
Pallnro tn
Failure
to face up tn
to basic issues
in
areas
other
than
those
of
ex-
gegted iniprovements will be sub- .■
ballistic
recent
*
performance
the
security, prosperity
7
and peace, to make
expendi-j
ment, and to provide
to the less
developed
ments
i
sub-
military establishments
re¬
favor¬
urge
14
ranges
to
.....
■*
seek.
we
vvv
law.
space
in
nas
reports so far received its performance confirmed to the high
standard I just described.
Such
to
to
—;1 •';
own
to
AHn'
Atlas
American people, in the interests
make abroad to
maintain
we
seas,
•
fallen
years
short
ii
are
most
continue
—
of their
u
a.
years
o.
within the circle of total destruc-
revolu¬
short-term
no
the
even
shall
-
loi
1
for
In
launchings,
"
ably situated countries.
international
iiucuiditvudi
balance of payments. Our
surplus
vuoiiivoo
foreign business
transactions
anocivuvno
from
A*
is
inventory.
our
^nations
achieve
can
the important segments of
among
we
holding
the
most
promise
for
early and useful applications of
space technology.
■
Fifth, we have just completed
a year's experience with our new
an
everyone
that the develop¬
aware
process
sirengin
'*
we
dependable,
scout
over
cooperationamong
unless
.
b
as
a
intercontinental
T
phenomenon. Many
Payments
immediate
the
Moreover,
should be
for
the
luc data
miles, Atlas has been striking on
average within two miles of
the target.
This is less than the
length of a jet runaway — well
par¬
of
necessarily be gradual
and laborious rather than
developing countries
Measures
are
new
the need, and so earnestly to
seek,
for
aircraft; and for perfecting instruments to collect and transmit
missile has entered the operational
the process of improve¬
will
ment
actively in supplementing the ef-|
forts
of
ticularly essential because
coun¬
on
bearings
•
.
inntf-
rulv
to
weather; satellite
to facilitate and
-1-
,,
Atlas
cipline necessary for any sustained
development period. These quali¬
pros¬
.I
available,
communications
^wmmumwuuna
accurate
Now
During the past yea
o
range striking power,
today in manned bombers
is
8lobe» tor navigation aids to give
.
ICBMs
it
—er.nnt
worid's
e
tena
defense*.will^nevei tur
•
taken
qualities
security,
in
.—:
lay stations
Inventoried
continuing deteron the part of these na-
never
are
necessary today as
before if we are to march
together to great
t.
turn
never
Thursday, January 14, 1960
.
^
satellites
peoples and
Wui
swratmnal
^
is
process
•
except
indispen¬
this
assure all
again
^
But
esuuL'uuii.
loose this destiuctive p
obtaining outside
in
a
4
and
minatyon
would itself promptly
I once
must
matter
sable
interests.
<rreat losses
.
meantime,
presently
systems
all nations that the United States,
realize, of course,
that development in freedom
by
the newly
emerging nations, is no
and
the
us
country might sustain
the
.
w
to
remember that we
have only begun
to probe the
environment;
immediately
surrounding the earth. Using iaunch
even
terrible destruction.
£5?oVTtpHiZdXdion.
Requires
All of
States,
our
suffer
Development Process
The readiness to sacrifice for
worthwhile causes;
The courage to meet
every chal¬
lenge to her progress;
The
intellectual
United
in
j
necessary
war
the
in
gious philosophy;
A
attack
thou°h
position to help,
we must
sauarelv face
squarely
face this titanic
challenge.
'
•
.
principles
to
.
"
-
Fourth,
ever
1
Dowerfully support.
powerfully
support It
ii is
is worldwide knowledge that any nat*°"
which- might
be
j
acmevemeuu»
achievements nuw
flow num
from other
qualities far more worthy and
■
studied
mv
so
so
25
page
general
is
nation will
no
against us unaga"
less we should he
be so foolish as to
neglect the defense fo
forcesWe now
;
Continued from
it
power.
conviction that
Financial Chronicle
absurd
recognize
from
that outrun growth
hnmn
Oniv
suranee,
hv
and
pro-
is
seri-
oui
so
dong can we
destroying our
pensions and in-
from
the very roots of
econorhy
in
gnawing awa>
free, healthy
a
and the natibn's sectirity;
Anticipated
June
30
Small
Surplus
One major method
by which the
Federal
Government
inflation
insure
and
prices is to
expenditures are
below its revenues.
UV IV «
which
about
est
we
are
The debt with
now
*
'
c<
confronted
S290.UUU.U9U.UUO. With
$290,000,000,000.
<>
payers
about
that
this
»—
now
costing t,ax$9,500,000,000, it is
de
f,
dices of the
we
estimate
recent
that
our
will show,
June
30, this
on
is
inter-'
■»•
charges alone
clear
counter
can
rising
that-its
steel
strike,
accounts
year.
Number 5916..•.
Volume 191
of approxi- hailed the entry of two more reservation.
favorable balance
I support that reso-
»states of the Union—Alaska and lution and urge its prompt, pas-
mately $200,000,000.
^
I shall present to the Congress
K.ionPPH h„H^t Tnthp
27
(179)
The Commercial and Financial Chronicle
.
semantic
disorder in which old
$120 1VIllllOlfl BOIlCl.S
Hawaii. We salute these two sage.
Ifsirqilar
this isacceptance
done, I intend
to labels no longer faithfully de- (Jl
AP JN 6W I (XTK 04-^4-^
urge
of the scribe.
013,16
for 1961 a balanced budget. In the
Western stars proudly.
Court's
jurisdiction
by
every
Police states are called "peo- t*
1
A
n
l 1
Sea of defense, -expenditures con¬
Our Metropolitan Population
member^ of the United Nations, pie's democracies."
irOW^GI*-A.26nCV feOlU.
tinue at the record peacetime lev¬
Explosion
'
.j
Armed conquest of free people
O Reminisces
Joint Congresjo rallpd "liberation "
els of the last several years. With
Issue marketed by Dillon, Read,
Our vigorous expansion, which
Wpctprn .tare
n
.■■
_
^
on
exception, expenditures in
pvery'
major category
health,
ev„,
_
. of urill
xirolforD
Vio
single
o
all
we
welcome
as
a
sign
....
of
-
u
..
1U
sionai-Executive Duty
Halsey, Stuart, Kuhn, Loeb, W, H.
Such, slippery slogans make
education and welfare will be health and vitality, is many-sided.
' Here perhaps it is not amiss more difficult the problem of
eciual or greater than last year. We are, for^example, witnessing for me to say to the members of communicating true faith, facts
space expenditures the amounts explosive growth in metropolitan
the Congress, in this my final and beliefs.
;-v.-' ;.
Getting Our Peaceful Nature
practically doubled. But the areas.
year of office, a word about the
to the World
over-all guiding goal of this budBy 1975 the metropolitan areas institutions we respectively rep¬
°
,
y
Group. Third
Morton
step in fi-
Niagara
nancing of $720,000,000
Hydroelectric Project.
in
are
to
relationship between our two
branches has for the days ahead,
I am not unique as a President
in having „ worked with a Congress controlled by the opposition
local tax systems; providing for party — except, that, no other
essential
educational, cultural, President
ever did it for quite so
and social services, and destroy- long!
Yet in both personal and
twice the territory they do today. The roster of urban prob*ems with which they must cope
is staggering. They involve water
supply, cleaning the air, adjusting
local or political
.
Expenditure Increases, ojher
specific group,
insistence.
1
oelv
1
I have indicated, are
accounted for by the in-
those
than
pre-
enacted '
,y
^
V10U
legislation
of
cost
c
ing those conditions which breed official relationships we have say.
delinquency and crime.
'weathered the storms of the past
On my
Balanced Budget and
1961
Surplus
Fiscal
We must make clear our peaceful intensions, our aspirations for
a better world. So doing, we must
use language to enlighten the
mind, not as the instrument of
the studied innuendo and distorter
of And
truth.we must, live , by, what
. , we
.
recent visit to distant
of more
A nationwide syndicate
Across
of the United States will occupy resent and the meaning which the
national need—not response
is
ort
than 350 investment banking
firms, managed by Dillon, Read •& Co. Inc., Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co., and W. H.'<Morton & Co. Incorporated, of'fered for sale on Jan.»12 an issue
0f
$120,000,000
Power
Authority
of the
State of New
York,
general v
revenue bonds, series G.
. V;
The issue consists of $96 000 000
In meeting these, we must, if five years. For this I am grateful, lands I found one statesman after 43/8% term bonds due Jan. 1, 2006, value our historic freedoms.
My deep concern in the next another eager to tell me of the priced at 100%; and $24,000,000 ,•
keep within the traditional frame- 12 months before my successor elements of their government that serial bonds maturing on each ,v
work of our Fe^eral system with takes office,, is with our joint had been borrowed from our Jan. ! from 1965 to 1979> priced
surplus to
apPowers
divided
between
the na- Congressional-Executive duty to American Constitution and from to yield from 3 5% in 1965 to 4%....
theTfrlJet
budget as a surpms
to be
d
p
tional
and
state
governments, our own and tq other nations, the indestructible ideals set forth in 1979
F ^onn nn^nnn
The uniqueness of this system Acting upon the beliefs I have in our Declaration of IndependA
, V,
$4^200,000,000.
may confound the casual observ- expressed here today, I shall de- ence.
revenue bonds the Authority will
Personally, I do not feel that er>
but it hag worked effectively vote my full energies to the task
As a nation we take pride that *
**20000000m,t n
any amount can be properly called
for nearly 200 years.
at hand, whether these involve our own constitutional system, $72onofono
^
surplus as long as the nationi is
j do not doubt that our urban travei
-for
promoting- greater and the ideals which sustain it,
be reauired to comnlet? the
in debt. I prefer to think of such and
Qther
perplexing problems world understanding, negotiations, have been long viewed as a foun- p
Authority? N^^ Prnf
item as a
reduction on our
be golved in the traditionai to
reduce international discord, tainhead of freedom.
eZow md/r m
Thp •
children S inherited mortgage. And American method
In doing so or constant discussions and comBy our every action we must Niasarl l^oiect^
V'
once
we
have established such we must reaiize that nothing is munications
with the Congress strive to make ourselves worthy inter!p^
Tv mean*
a'
payments as normal practice we really golved and ruin0us ten- and the American people on is- of this trust, ever mindful that ife-line
with the AuthorityV
profitably
make improve- dencies are set in motion by sues both domestic and foreign.
an accumulation of seemingly "e
wiin i;ne Autnomy s ments in our tax structure and
yieiding to the deceptive bait of
In pursuit of these objectives, minor encroachments upon freeWhen coZm
thereby truly reduce the heavy the «easy» Federal tax dollar.
I look forward to, and shall dedi- dom gradually could break down
.wnea compi^ea, tnese two,burdens of taxation.
0ur
educational
system
procate myself to, a close and con- the entire fabric of a free society. fa ° est hvdro - el^tr^c
In any event, this one reduction
^ ° J* g ah recog- structive association with the
So ^ed we shall get on
will save taxpayers each year ap.
fh
.f , necessitv of having Congress.
*
with the task before us.
_
Lawrence Proieet is now in full ">
proximately $200,000,000 in inter- "
school Xnts weil-aJaliEvery "inute spent in irreleSo dedicated and with faith in
wUh the last of the 16'
est costs.
fied and adeauately cimpensated
vant interbranch wrangling is the Almighty humanity shall one
been hi-'"'"
This budget will help ease pres- Redh®!Jd ^,uaf^ using th^best Precious
time taken from the day achieve the unity of freedom production
,,
intelligent initiation and adoption to which all men have aspired stalled
in
July,
of power
1959.
Commercials,
started in
capita1 possjbie ' teaching techniques and- 4~+«n
sures
in our credit and capital
of coherent policies for our nafrom the dawn of time.
reduction
of tonower
started
m>
July, 1958 and
date the
Author¬
markets. It will enhance the con-
will be a
hnlanced one
Expenditures will
kp q7q 300 000 000
The amount of
Lme over 'outgo described in
This budget
rpneat*
t
as
a
a
can
an
,
can
develon!
J^gest ^hyd^o
^atmn'1having
res
curricuia
curricula
seek
We
and
omy
our currency
individual
to
be
educating our y u
ability
Progress
Debt Management
to
the route
But
minds
not
is
Before
better-trained
the swift
us
and
for
which
our
friends
p
VygO.
Is
of
an
ideology
more than four dec-
challenge
through
ity has produced and sold approximately seven billion kilowatt— j
The
hours.
Niagara Project is
goal—
common
a
brighter opportunity for our own
citizens and a world peace with
.
Panicked About
Be
Education's
Restrictions on
Congress'
to
Refuses
responsible.
fiscally
Attacks
and in our
collective
and
DWIGHT D. EISENHOWER
survival and progress,
tional
Qj
j '
j ' !
0 IdllS llCmllQ
approximately
50%
completed.
Initial generation is scheduled to
begin early in 1961 and all of the
Midwest Confer.
-
CHICAGO,
""{J® ^
111.—The 7th annual
atl°"
Xin "p,'r"'
-
the end of 1962;
has trumpeted abroad its Mid-West Conference of the ChiJbiic debCth^
summed fuwncia purpose of gaining ultimate vie- cago Chapter of the American
bonds are subject refortuLteW4 not6 fref oTLtificSl transfusion.
The educational tor7dverlll7orms°of government ■ Statistical*" Association "and "the demption, as a whole or
i
barriers
Its ability to dl^ with
process' essentially a local and at variance with its own.
Chicago Association of Commerce at any time on or
fhi
mf-Tim
personal
responsibility,
cannot
and
Industry
will
be
held
March
1970,
as
set
forth
m
the
Author-,•
the difficult problems in this field
Contrasts Single-Minded
25-26 at the Congress Hotel in ity's official statement.
d
t
lea
ahead 'b
crash
the huge
Treasury is un-
In the management of
has been weakened
administration of a Federal hypo- ad
greatly by the
of the Congress to
archaic restrictions. The
centralized
unwillingness
remove
need
for
i«s
in'
hand
freer
a
manae-emeni
debt
urgent
mere
even
tlfe^costs of the
whihhbl thfr u,Co1
today because
JL
fnrrJa
moval
of
nrioritv
fhic
in
y
itmh
w
loeinin,^
legislative
recom-
mendations.
Protecting the Right to Vote
Still
civil
In
a
another
nnr
hPtiPv
that
iw
*
*
,ILu
p anf
.
provtactl rnda acia[°Dref
udicesPmust
be
combauS
long perspective
strongest pillars of
first
duty Is
a
to
^^Lwiuibtanaing
ress
of
recent
deprive
some
In the
history,
of
right to vote has been
Our
to
relates
issue
rights
nif
free
..
.
We
w
realize that
Communism
Chicago.
however much
general theme of the Con-
•
1-.
J.
urge 4.?e
Hp0n lt'
av\
— —
a-P
•
^
•l
_
^
ni i
—
•
a
-
"P
formfdab^
CongreSS t0 take aCtl°"
Urgent Support Given to <
International Rule of Law
the
electronic computor to see if they Among those assodated with
Inci,
Kuhn,-:Loeb
&
™
.r™ Wt° PAUo1?' „Read &
Conine.
Halsey,
Morton & Co. In¬
But in 2
our scale of values
*uvn
1 we the industry leader.
place freedom first — our whole
, .
•
•
national existence and develop11
Manager for
There is one
other subject con-
Cerning which
I renew a recom-
ment have been geared to that
toic concept and are responsible
tne congress oi
intensifv our ef-
prize that uny nation can possess,
prog-
The present trustees pf the Au- •"
thority are: Robert Moses, Chair-..
repudiate the tenets 'of im- ference is centered on the evalua- man, William Wilson, Vice-Chaireliminate cur- perialistic communism, it repre- tion and statistical
practical tools.
application
Poletti,
A.'"
Each of
of man,
Thorneand
Hills Charles
and Finla
G. Crawdeficiencies.
It
is
designed
sents
a
gigantic
enterprise,
grimly
modern
s
to stimulate
classroom construe- pursued by leaders who compel the individual topics will be pre- ford. William and
S. Chapin
is genchief engineer
TTorl
4-«
v/I iitofn Th A1Y1
1
n •
a
1a
1
av»a! w-» a v-i o rfav* a-a r7
i A-P av\ rtlv\aa«
tion, not by substitution of Fed- its subjects to subordinate their g'ented in "two simultaneously con- eral manager an
eral dollars for state and local freedom of action and spirit and ducted sessions—one at an ele- of the Authority.
funds, but by incentives to ex- personal desire for some hoped- mentary, the other at an advanced
The bonds are exempt as to
tend and encourage state and for advantage in the future.
ievel of discussion. Another fea- interest from Federal income>
lQcal efforts>
This approach reThe Communists can present an ture of the program this year will taxes and New York State income1
jects the notion of Federal domi- array
0f material accomplish- be a special supplementary session tax, and are legal investments
nation or control.
It is workable,
over the past 15 years that devoted to the playing of Manageunder New York State law for
and
should
appeal
to
every Jends a false persuasiveness to ment Games, a newly developed insurance companies, banks and
American interested in advance- many 0f their glittering promises management training
device, trijst cdmpaniesj, savings banks
ment of our educational system in to
unc0mmitted peoples.
,
Competing teams will feed their and certain trust funds, in the
the traditional American way. I
h oomnetition thev provide is "management decisions" into an opinion of bond counsel.
this
mucn
t
then
advised
bias
still
mv
fn
this
KTeplace
persons
,
society
protect
vears
.
The Administration has proreasoned pro- We
of the
one
.
Posed a carefully
g^am f°r helping
j
¥
rLhinnir
mv
un-
Enterprise of
government action,
AJ
to
in part,,
after Jan. 1,,.,
nnmnco
to
^ewkTrule
country of equal protection of the
°
material
Co.
•
p
accomplishment in by
& Co.
and W.
H.
corporated in the offering are:
Blyth & Co., Inc.; Drexel & Co.;
p. I. duPont & Co.
ri sm can duPont
it is one
ord of
Stuart
*
Dallas office of Francis J.
p
i\/rorr>Qri+iiA "Runt
Merca^Bank
A. Rhett duPont, senior part-
' X;'
„
nian, Sachs & Co.;
j ^ Co. Incorporated; Kidder,
Thalmann
&
Co.;
Lehman
— -—
additional constructive
i
hope
that
a
wp
gress
B.
nnr
our
prQfo^hd
In the,past/18
mqnths,
^
we
have
repeal 1 our'rpresent
^self-judging political planet
deep
J.
Van
Brothers;
Fenner
Securities
Josephthali & Co.
•
*-•
r*v
«_
Expands Foreign Dept.
Josephthal & Co., 120 Broad-
Merrill
& Smith
Corporation;-
Ingen & Co. Inc.;
White, Weld & Co.
slgnal m the world cepted the Court's jurisdiction,, new era 0f the world's history we
eq^lit^umlprlaw fnrSniiVni'i^ but subject to a reservation of|,ar^now entering. :
V. /.- • way, New York City, members of
people.
law for all oui the right Jo d^mine^ undatei- But we must use that capacity the New York Stock Exchange,
that
for
Pierce,
Webster
effective
help of many
we have given in saving counts.
bmjons
Lstic^ The Court was established S^^ependence of many other!
be re'riouslv
the United,legal
Nations
to decide
domination.
seriously Tonridtredttinttfhp
consideied in the by
international
disputes
be- threatened
ccnrpHlv by outside
have the
canacitv
wifftv?011' 3
Sat
tween nations. In 1946 we ac- for handling the problems in the
Rations,
to
re-exaiiuuauuix vi.
wvv..
^on f0 ^he International Court of
Lazard Freres
Co.
&
Lynch,
devplnnoa
p d
si.
'
Harriman Rip-
and
■
Joins Hooker & Fay
(Special to The Financial Chronicle)
SAN FRANCISCO, Calif.-Irving
L. Ayres ' is_riow _connected_ with
28
(180)
and until
AS WE SEE IT
(Continued from page 1)
policies and
by World War II and in the effective help
Of many more billions we have given in saving the inde¬
pendence of many others threatened by outside domina¬
tion Assuredly we have the capacity for handling the prob¬
lems in the new era of the world's history we are now
omies wrecked
entering."
'
whatever the claims
of Russia where
or
the actual economic achievements
minimum,
a
We have often in the past proclaimed the
potency of
individual liberty as the promoter of the ultimate in eco¬
progress
and achievement. So have
a
few—alto¬
gether too few-mother voices crying in the wilderness. It
should not be needful, but
apparently is, again to expound
the role of individual
liberty as a basis for economic ac¬
complishment. We. therefore, ask the readers' indulgence
introduce at this
point the renowned presentation of
this basic truth from a
pen far mighter than ours. The
immortal Adam Smith published his "Wealth of Nations"
in 1776
if to mark the date of
as
pendence. From that
our
Declaration of Inde¬
imperishable volume
take
we
the
following extract:
V-
"Every system which endeavours, either by extraor¬
dinary encouragements to draw towards a particular
species of industry a greater share of the capital of the
society than what would naturally go to it, or, by extraor¬
dinary restraints, force from a particular species of in¬
dustry some share of the capital which would otherwise
be
employed in it, is in reality subversive of the great
purpose which it means to promote. It retards, instead of
accelerating,
the
of
the society towards real
wealth and
greatness; and diminishes instead of increas¬
ing. the real value of the annual produce of its land and
progress
labour.
"Ail
and
its
either
systems
accord.
own
interest his
of
preference
of ^restraint,
or
Every
away,
long as he does not violate
justice, is left perfectly free to pursue his own
own
way, and to bring both his industry and
man, as
capital into competition with those of
order of
men.
any
other
man
or
The
sovereign is completely discharged from
duty, in attempting to perform which he must
always be exposed to innumerable delusions, and for the
proper performance of which no human wisdom or
knowl¬
edge could ever be sufficient; the
duty of superintending
the
industry of private people, and of
directing it towards
the
employments most suitable to the interest of the
society."
^
a
importance in this day and time
that we never for a
moment lose to
sight this basic prin¬
ciple of the free enterprise system as we have
known it
and,
years
as
with
fortunate exceptions, we still
know it. Full
this fundamental
tenet is essential in
our
backward peoples if
hope of keeping them
we
are
some
un¬
awareness
of
dealings with
to
realize
out of the clutches of the
C01?cl?lun^s^s* ^ese Pepples have
the
our
imperial
no conception of individ-
itf theyare not imbued with the eighteenth and nineteenth
centuries as
that
when
we
grew to greatness. If
they
part in their decisions
a
the allocations
as
taken in the field of bank
such
consumer
purchases.
to pay
loans
by
may
lending,
particular attention to those
credit-worthy borrowers who
most
in
dependent
their
business
borrowed funds.
Bulk
of
Although
the
bread,
em
we are
important
that economic
achievement,
e
y
o
initiative
realize
—
our
or
own
we
a
of
•
From
crease over
fluctuations in the
from
of
amount
tendency to in¬
time, with rather large
rate of
increase
to year, the increase is
year
in
and
the
fyear
95%
out
0r
of
more
to be rear and perma¬
system of individual free¬
ask for failure. Nor
to
ing capital purposes.
(Consumer
credit in
largely fi¬
such
is
case
through
the
placing of
issues of securities by instal¬
ment
finance
companies on the
capital market.) There is in other
respects also a great degree of
flexibility
of
accounts
the
dependent
who
from borrower to borrower
the
the
much
aggregate
tant
than
the
change in the total
amount of credit
businesses
stantly
loans
in
are
impor¬
more
outstanding. New
of course, con¬
are,
being
started
and
new
are
being arranged for such
businesses every year, every
month, every week.
Many other
businesses will at any given mo¬
new
be
ment
their
of
growing
activities and
bank
and
in
credit
the
in
scale
of
which
obtain, but at the
same time
businesses will be
declining
their need of bank credit will
other
falling as a result of the ac¬
cumulation of internal funds from
earnings
cause
or
depreciation,
they
have
obtained
from the issue of bonds
Moreover,
amount
of
or
funds
stocks.
bank's Vview
a
credit
that
of
can
are
the
appro¬
priately be provided will in
cases
be¬
or
some
be revised downward. There
also
important
seasonal
move¬
ments
which vary greatly from
type of industry or commer¬
cial enterprise to
another, and the
one
structure
of
bank
loans
will
also
reflect
changes in trade credit re¬
lationships between producers,
wholesalers
and
consequently
in
retailers
the
banking accommodation
the enterprises in
categories.
Most of the
the
banks
carried
were
way
in
no
as
required
these
vari¬
therefore,
of
be
substantially
before
the
if there
even
year-to-year increase
the total volume of the
bank's
sources over a
Within
of
lending business
would,
on
and
amount
in
re¬
considerable period.
given total volume of
there
are
certain
fields of credit that the
banks
a
credit,
ca,n
expand or contract more
easily
than others* fields in
which the
trend
can
be made the
opposite of
en¬
credit
which have other possi¬
Describes the Capital Market
volume
recent
high
of
figures.
1954-57
In
(covering
of
banks,
are
we
in
sold
very
four
years
full business
a
cycle), net sales to
vestors
the
reached
the
non-bank
securities
and
C.
Savings Bonds
company notes..:
Corporation shares
.....
Capital
of
credit
and
capital, I should explain that
by capital I mean real capital or
physical capital such as
buildings,
machinery,
equipment,
improved
land, and works and
undertakings
of many kinds which are
not con¬
or used
up as soon as they
be transferred from
producer
in
but which continue in
for
some
time
and
user
istence
either used
for
the
ex¬
are
production of
other
goods and services,
themselves of use and
or
are
enjoyment
to
their owners
to
or
the
general
public.
Real capital can
only come into
through the application
existence
to
amount of real
capital that
can
brought into
time, there is
existence
the
increase in char¬
tered bank loans and
investments
during the period.
Such
net
sales
of
securities
to
non-bank investors thus amounted
to
an
per
In
average
year
1958
was
over
the
of
$1,430
the period
$1,255 million
of
1954-57.
$2,560
million
(total net
securities
of securities
million
corresponding figure
issues
but
rable
the
labor
amount
that
to
purchases
by banks
to
produce
du¬
things, not by the multipli¬
ferred.
In
which
created
the
be
any
limit
and
to
to
credit
or
trans¬
agencies
savings of others
life
as
the
at
similar
money
addition
lend
—such
no
of
be
can
new
amounted
net
human
insurance
compa¬
nies, pension funds, savings insti¬
tutions of various kinds—there are
were $1,305
other agencies whose business also
to the end of
November the figure reached an involves them in the creation of
extraordinarily high level of $2,- money or credit. The central bank
can
create credit, credit which is
865 million
(composed of net new
usually called money and which
issues of $2,085 million
plus net
has
the
sales by banks of
unique quality that it
$780 million).
must
be accepted in full settle¬
Net new issues in
Canada in
ment
of
recent years by
any debt.
Banking insti¬
category of bor¬
rower and
kind of securities is¬ tutions, in so far as they create
sued have been as
credit, are in much the same posi¬
follows:
million).
Ip
1959
Nevertheless, the
tion.
requirements
of Canadian borrowers
have great¬
ly exceeded the supply of funds
made available in
vestment
at
Canada for in¬
going rates of inter¬
est, and have resulted in substan¬
tial placements of new
issues of
foreign-pay
United
securities
States
abroad.
and
Aside
other
in
the
Undoubtedly there
a
entirely from funds
foreign-pay
recession
in
crease
There
stances
which
I i>5H
(Millions of Dollars)
—130
580
245
370
—365
1,135
80
55
other
be
agencies
to
in
public
and
bank
hold
moderate
total
the
make
of
use
already
an
an
exces¬
an
tendency on the- part
spending bodies to attempt
of
to
existing'
volume of credit too rapidly.
The
possible
action by a
wards
the
or
economic
has
I
degree
supply
of
credit
downwards for
reasons
believe
gerated;
useful
of
central bank in mod¬
My
up¬
general
of this character
been greatly
455
300
admit has evolved
190
210
150
is
535
350
215
455
295
390
own
view,
over
exag¬
which I
the years,
that the most desirable
way in
which this influence can be ex¬
erted
is
through relatively small
movements
2,085
the
down the transfer of credit in
340
2,560
circum¬
nature
in
central
to
1,030
1,465
other
opposite
1,250
maximum achievements unless
of
circu¬
or
supply of credit constant, or to
bring about a decrease, or to slow
ifying
55
255
an
would
interest for the
1!)-,!»
(11 Mos.)
in¬
amount
created
may' be
of
it
sive
-r,7
total
can
per year
Of the four-year total of
$1,800
of net new issues
of se-
times in
are
moderate
banking and other
properly operate to
stimulate economic activity.
agencies
endeavor
million
the
a
lated by central
Canadian
securities
(other than Government of Can¬
ada) have averaged $450 million
for the last four years.
when
money or credit
markets
obtained by Canadian subsidiaries
from
their
parent
companies
abroad by way of direct
invest¬
ment
here, net new
issues
of
-
(and agencies)
Real
discussing the role
cation of money or credit.
While there are limits
.
Municipalities (and agencies).*.
Corporate bonds and finance
Defines
In
in¬
payable
nearly
Total
Provincial govts,
their
houses and in
unincorporated
businesses.
own
three times
,.
Marketable Bonds
the
of
N. R.—.
and Notes
by
Canadian dollars amounted to
$5,725
million, which
was
Average
of Canada
use
depreciation
part of personal savings which is
invested by the savers in
to
Canadian
securities
has
years
for
direct
in the form of
allowances earned and
undistrib¬
uted corporate
profits, and that
can
Iwum Payable in Canadian
Dollars Only
Govt,
available
saver
sumed
bilities for raising funds.
the
degree
they need
are
bank
on
Turning now to the
capital market outside
months).
be¬
each category
borrowers
The banks manage a
pool of credit in which the changes
a
both
categories of bor¬
and within
rowers,
tirely
banks,
12
bank
sale of
or
in
the short-term loan
in
and those
of
represents
finance
but may be contracted at a time
when there is strong business de¬
mand for credit for normal work¬
loans being
re-lending of
funds which had previously been
lent ( usually within the
preceding
volume
made
raising of funds by
securities
capital development. For
example,
substantial amounts also
become
banks
between
year
foreign-currency
foreign-currency borrowings&
The
merchan¬
them
enable
each
the average,
pay
principal
Such
to
tween different
On
the
durables,
instalment
by banks to
companies and
itself only a very small part of the
total credit extended by the banks
year.
the
repay
cur¬
to
tend to ex¬
pand when other demand is slack,
finance
nanced
a
by
consumer
more
doomed to defeat. We
must, rather, convince
nent, must be
sought through
dom and
to them than
and
foreign
be used
by direct loans is, of
course, only one method by
which
savings, domestic or
foreign, are
channelled
into
investment
new
total
bank credit has
Canada
more
cr•
Re-Lending
should
as
and
sources
■
Credit Comes
Treasury Bills
liberty
operations
least able to find other
:
are
bank credit
upon
we
grinding poverty, no one
doubt what their choice would
be. In fine,
go to these peoples
preaching the doctrine of
loans
disers
of buying
loans
or
I
liberty
direct
individuals for the pur¬
pose and policy, at a time when a
quite selective approach has to be
need have
any
individual
credit,... whether
banks to
pose
they get the idea
must choose between individual
know it, and relief
from their
we
the credit
of
their
at
in
may
borrowings, and which provide a
natural
hedge against
the
ex¬
change risk involved in servicing
cyclical trend in other fields.
disposal.
In
particular they have declared un¬
equivocally that it is their pur¬
bank
freedom^
aswethinkof
spirit of
were we
play
to
same
formative
our
the so-called
interest
the
ous
It is of the utmost
proceeds
which
rency
One obvious example is consumer
by
Very Important* Factor
throughout
or
export
Continued from page 9
as
corpora¬
Some of these
corporations
provinces and
municipali¬
ties, have substantial revenues
sort
resources
in-"
and
unlike
amounts of their
be
the obvious
simple system of natural liberty establishes itself of
the laws of
,
What Role Should Canadian
or
therefore, being thus completely taken
principal
payable in foreign cur¬
$600 million was issued
by
Canadian provinces,
$400 mill ion
by Canadian
municipalities,-and
$800 million by Canadian
Credit and
though apparently increas¬
ing degree, of individual freedom is allowed. We should,
moreover,
be better pleased had he clearly and indis¬
putably repudiated the notion that it is now needful for
us to call
upon government to control this, "encourage"
that, and subsidize something else if we are to realize our
full economic potential in the future.
we
V/;
programs.
whose
are
rency,
should have liked to have the President say
we
straight flung words and few—particularly since his
words will be read and pondered throughout that so-called
uncommitted world is that we are where we stand today
precisely because we nurtured individual liberty, and that
any other peoples who aspire to sustained abundance of
the things they want must of necessity do the same thing,
if
terest
———-•
in
nomic
curities
bearing these tenets of individ¬
formulating our own domestic
tions.
What We Wish He Had Said
What
do better in
we
ual freedom in mind when
in the total
,money or credit of the
supply of
kind
ere-
Number 5916
191
Volume
of
new
a
from
Moderating possible decreases in
in
net
supply of money: There has
fact been no period since the
credit
of
for
Time
their
year
make
can
borrowings
penditures
not
have
to;be
In
a
1
-
:
/,
should I think be sufficient
to provide a climate of opinion in
financial matters: which. was fa¬
States
money
of
amount
the
sion—and
tuation which
voices
;
further
one
to
accede
of
in
expan¬
any
on
the
methods
We
expenditure
how
matter
selves, does much
good.
more
them¬
harm than
in
|
Turning to the current situation,
it may
be
of
interest
refer
to
approximate
magnitude
capital expenditure in Canada
of
to
the
on
several
also
housing are esti¬
mated
at $1,700
million, capital
outlays
by government
departin e n
t
new
and
s
cess
government-owned
enterprises
(excluding
housing) at $2,750 million, private
and equipment.
of
be¬
all of its own con¬
other
parts
be
can
export
the
countries
surplus
the world.
of
doubt that some
no
to
There
seri¬
ously
nomic
consumption
suggest the time has come
at
a
the part
of
to
people,
and
dissaving
or
consumption in excess of income
by others.
A change in net per¬
to
level below income
on
some
sonal
saving
either by a
about
change in the amount
.
may
give
the question
visable
or
wide
gap
a
come
and
more
rate
and
more
for us
thought
whether it is ad¬
to have so
desirable
our
between
our
.
of ceramic
kilns, expected
by May 1, 1960,
are expected to lift the company's
output capacity to 8,280,000 square
feet
square
tile per year. New
installed
be
to
advanta¬
be
plant has an approximate
production capacity of
6 000,000
is
consideration
would
,
maximum
broader
a
non-vitreous
present manufac¬
company's
turing
geous to reduce their programs in
periods of general prosperity and
increase them in
periods of re¬
duced economic activity. In addi¬
tion to other desirable results this
that ag¬
credit)
ceramic
of
feet
tile
The \
year.
a
primary market of the company
spans from Miami
in the South
to Washington, D. C. in the North
and
to
Houston,
Texas in the
>
and by govern-
further
should
turn
large in
so
accommodated, one
hope that the decision on
all
not
would
the
be
some to withdraw or
their requirements would
part of
reduce
be
total that they could
fierce
undesirable
other
private demands for
capital in money terms is so large
as
be incapabie 0f being real}zed
physical terms, it does not
necessarily follow that the only
way or tbe besj- way to restrain
inflation arising from this source
would be to use the instruments of
circumstances,
these
order to produce artificially low interest rates
would
merely increase the up-
creation of credit in
ward
prices and re-
on
pressure
sources.
„
Wants
some
a
Free
-
.
Interest
extent
Rate
saving
capital expenditure
provision of loans to governments
at' artificially low .interest rates
would in effect subsidize borrow„c
rocrams
of the
ncyoinct
ft
na
v-a<5-von-<*o
would remove some-
relative advantages of
ficiency
and
deprive
Central
credit
are
charged
use
their
inflation.
the~
by
banks,
it
fe
true,
statutes to
their
best efforts to prevent
But to attempt to do too
City, :
ef-
more
could be
Tobin
be<
investments
and
savings
tween
balance
the
These are problems of public policy which require serious thought
by al] those who wish to see continuous balanced economic growth
with
minimum
a
of
dislocations
and
other damage
inflation.
Are
we
as
done
a
;
-
by
people
sufficiently serious about these
objectives? Are we as a people
prepared to explore the feasibility
striving for the goal of balanced economic growth with price
stability along a broad front of
0f
nnliriPs_nnblir
Drivate
and
shall not be
cannot
■
policy
possibiy do the whole job
■
■
,
,
by itself, and would be
that it
states
down
business
because of limited plant
capacity,
had
turn
to
and intends to raise its production
week.
to six boats a
Gives Scholarship
I ,phlPu
A^
IJTllV
^ AAA v •
director
Goldstein
Morris
•
tt
i
•
-i
T
Irv
™rns Golds tenvdiire
,
r
t .
p
of re-
York Citv has
N„
S&ed^ ^new scholarship
fArfa
,4
wilh
..
.
-
a
j
wantofSlO 000
®
income
..
Aht endowment
lund
!s ?o
to
from
be used
support of undergraduate schol¬
arships in the College of Business
Administration.
in
Goldstein
Mr.
from
Lehigh
gree
of
business
in
graduated
was
1934 with a de¬
Bachelor
of Science
in
administration.
na-
placed on
monetary policy? Monetary
xy
__
,
corporation
The
has
polices—public and. pi vote. na
tional and local
so that undue
reliance
100
at
located
Craft,
em-
by the appropriate authorities — measures to provide
checks or incentives which would
affect the total volume of spending
or
intended spending, and
and
stock
common
Tobin Craft, Inc.
.
ployed
borrowing,
A
Webster Avenue, Yonkers, N. Y.,
was organized last Fall and is engaged in designing, building, and
selling small boats. The proceeds
of the offering, estimated at about
$117,000, will be used chiefly for
Plant relocation, new equipment,
construction, and debt^ reduction
These could
could be
be avoided
avoided or
or
measures
7,
(par 10 cents) of
at $2 per share.
These
other
circular
offering
an
class
of
shares
much by monetary means alone
might have undesirable side efef¬
and
to
General Investing
of 55 Broadway, New York
offered
and
sold 75,000
Corp.,
minimized to the extent that fiscal
interest rates to
determines relative
priorities in demands for capital
in the private sector of the economy.
In the public sector also
the test of interest rates plays a
;,-CT
monetary policy to bring about a
contraction in the total volume of
fects.
Rfects.
of
test
The
¥
country the total
any
and
ui/uv/ii
wl ail/
XvyL/lli
date^ Jan.
Central Bank Can't Do It Alone
in prices and
developments,
excessive
rise
significant
a
In
the competition
enough to produce
before
made
became
Tflhin C.VZlft StOfk
Pursuant
When, in
11
O
j-
whether
arises,
not be finanCed to a
extent through increased
public
-r
(jrGIl. lllVGSt. uGllS
revenues.
out
that demands upon resources were
question
n^V.fQv.
greater
W
J
^
high, the
could
they
—
it
included in the company's market territory,
capital programs without
level of
economic activity is very
of physical
resources that may be made avail¬
able
by new saving — for such
If
con-
If it is necessary to main-
reduction even when the
will exceed the supply
purposes.
bodies
governmental
tain
.
from
But if
for
it
whether
'
sulting
The
increase
to
extensive line of sizes
an
ceramic tile in 18 different colors.
mitigate the fluctua¬
arise
in total
eco¬
activity.
question
a
.
re¬
Inc.,
Lakeland,
in
and shapes of glazed
view of the situation can be taken,
-
saving
than
which
tions
under-developed countries
expenditures
on
non-residential urgently need foreign capital, real
construction at $2,000 million and
goods and services provided out
of other people's savings, if they
private
business
role, but other considerations may
purchases
of
are
to make an effective start to
be more important.
Government
™3chinery and equipment at $2,raise
their
standard
of
living
100 million.
The addition of in¬
capital expenditures whether naabove
the
subsistence
level
by
vestment
in
tional, provincial or local, can be
inventories
would
bring | the total to approximately moving into the - industrial A age. financed by borrowing at current
$9,000 million, which is 26%- of Canada is both an important in¬ interest rates, or may be paid tor
our
of
immediate
increases
in
out
Gross National .P r o d u c t. dustrial nation and a large im- «„t
oorter of capital,
indeed by far taxes, which might well mean a
About $5,000 million of this total
the largest importer of capital in
was
lower
overall tax
level in the
c-evered
by depreciation
the world.
earned or took the form of
long run, or capital works progov¬
ernment departments'
grams may
be slowed down or
In Canada we have had a scale
capital ex¬
penditures charged to current ac¬ of capital expenditure by the pri¬ postponed. There is another factor
count.
The remaining amount of
vate
economy
and governments which must be taken into account
the"
question
should
arise
roughly $4,000 million had to be
ogether at the rate of 26% of our if
whether it would be sound public
financed by net new savings, do¬
Gross National Product as com¬
mestic
or "
foreign." "Of this, net paredwith 18% in the United policy to encourage the granting
personal
saving provided ; about States. Though our own over-all of credit to governments at lower
$*>700million and net retained saving rate- has been relatively interest rates than < would otherkusmess earnings, provide about high, it has not been sufficient to wise: have to be paid in the mar$900
million, so that, $1,400 million match this extraordinarily high ket. It is clear that not all govin
a
given
category
was
required from the savings of rate of capital expenditure, and ernments
operate with the same decree ot
we have in recent years therefore
foreigners.
efficiency, frugality and prudence,
In connection with net
personal had to import capital to the tune
Some
have
lower
expenditures
saving, we should bear in mind of
$1,OOG-$1,500 million par year. or higher tax rates and rely less
that the
figure used is net; it is
It
is perhaps not premature to
on
borrowing than others.
The
the difference
between
Industries,
headquarters
of
ture
if any¬
have,
tendency
a
rather
ment.s and
and government
government enteronses
ments
enterprises
produce savings in ex¬
of their own capital expendi¬
and
thing,
cerned.
demand for capital by
private business, by individuals
(for such things as housing and
now
tures
business
fixed plant
These forecasts suggest
on
European
other
Tile
Florida
large rise in total production
In particular, recent sur-
gregate
capital requirements and eco¬
nomic growth of a large part of
the rest of the world, including
Canada. The United Kingdom and
tures
on
or
:he
physical
works
and
equipment
during the present year. Expendi¬
understandable
are
the
on
enough savings left over to make
a
substantial net contribution to
Situation
be ad-
may
hate indicated Substantial tiiations ^interest ratesfand over West. All or part of twelve states,
ZLii fn ^f:;AfpvnAnHft?,res a P^od of time save money for plus the District of Columbia are
■
tinuing economic growth out of
the
savings of its people, with
Spending
of* Which
in I960.
consumer
and
exports
simi¬
if
considerably slowed, indeed
by the effects of the long
steel strike, but there appear to
be virtually unanimous forecasts
a
one
hn
ditional facilities.
on
which
other hand for reasons
the
been
of
capital
variousJ corporate
out
Fla., is engaged in the manufac¬
1959
over
projects
municipalities
and
provinces
set back,
capital
expenditures in new plants and
equipment for the production of
joods for export. We must, how¬
ever,
recognize that the United
our
in
1960
in
carrying
...
,
loans and for
working
with
of Fi¬
to bring about a
as
additional
f
1958, and total demand may
increase
,
the retirement
complete success, but it can
budget
increase of 7%
an
endeavors
^
from the sale of the
shares for
scarcely be denied that some suecess
has
been
achieved. ; The
physically possible. In the
States, growth of produc¬
tion in the latter part of 1959 has
to think
accustomed
are
of
...
^
A
of short-term bank
capital spending
programs
in such a way as to
pro vide a stabilizing influence in
the business cycle.
This is by no
United
greater sta¬
fostering
of
States finances
Current Capital
April
class
its
modify
to-
Canada in 1959
Minister
Government
Federal
such is
to
method
some
r»r»int
fhp
well
assumption in his
such
be
ing subject to sharper fluctuations
than our own, and indeed to be
the source of a good part of our
own
fluctuations through effects
bias
programs,
worthy
to
the United States economy as
employment, reliance on
monetary expansion to facilitate
no
last
over
bility in themselves.
high
particular
expenditures
:
if the Gross Na¬
as
the
confirm
will
that the latter are not
extent
amenable
against expansion, but rests * on
the firm conviction that in oeriods
of
capital
It looks
tional Product in
rection
business
:
riictonpo -fVrvrY->
An nt
1958.
operate in the opposite di¬
to fluctuations in private
could
with
net proceeds
competitive position.
It- is
known, of-course, that-the
run
long distance from the low point
of the recession in the spring of
o
a
vvould
is not,
urgings
founded
governmental capital spending
assist this objective if they
in
another. The refusal
such
to
course,
American
age
be
or
activity and to encour¬
steady growth.
Fluctuations
consumer credit, in housing and
ment which would affect its long-
present time the North
economy has progressed
the
At
i
" *
abroad.
from
never
economic
Indeed, even at
high employment we find
in
every
quarter urging
monetary : expansion for
reason
can
to hold to a minimum the
in the total level of
try
o
employment.
times of
doubt
fluctuations
government deficit
justified as being
necessary
to stimulate spending
throughout the economy and thus
the level of economic activity and
can
of
e'essive, as has been the case for
.
some years in Canada in relation T_i
to the supply of domestic re- J OllIlSOllJLjS/nGk^DRCG
sources and saving—it becomes a n
m-i
matter for individual decision by Xp
C H o
Pi p ( ;pyy|
each element in the governmental
A
x
Wlli'
sector how vigorously to press its The johnson> Lane> Space Corp
claims. It is in some ways easier offered
^
j publicly on
— Jan.
T— 7,
« 105,000
for governments voluntarily to shares of Florida Tile Industries,
reduce or postpone spending pro- Inc. class A common stock at a
grams than it is for an individual price of $5.75 per share. The issue
business enterprise voluntarily to was all sold.
give up plans for capital invest¬
The company intends to use the
smaller supplements of resources
lar
the amount of
—that
no
completely ironed out. On the
other hand it is clearly an objec¬
tive of economic and social policy
be
would also say to
some
pattern
a
satisfied
be
can
nance's
.'.v.'-.;
Policy
which
diture
limit to
monetary
Social
Private business capital expen¬
is subject to cyclical fluc¬
investment and some
decrease in the level of interest
rates.
Agreement; on acceptance
of this half of the general view I
have indicated is apparently much
more difficult to achieve.
At any
rate there appears to have been
too
easy
an
acceptance of the
contrary opinion that in a reces¬
sion there is virtually no
domestic
new
Objective of Economic and
■:/
to
vorable
from
saving to finance additions to our
capital assets.
of
the total quantity
in
increase
,
,
available
is
;;
modest
,
time of recession a
into
moulded
this
in the total volume
of money or when public opinion
would have tolerated such a de¬
crease, and I do not say that any
such decrease would in the cir¬
cumstances have been desirable.
I do not think:; that a major re¬
duction
in
the ; money
supply degree of foreign borrowing. The
use even at a constant level of any
should be looked to as a means of
countering: inflationary
trends, significant/ part of pew savings to
finance a rate of consumption that
not, at any rate, if sufficient re¬
cannot be covered out of current
straint has been exercised in pre¬
income means, of course, that less
vious expansions - of the money
icant decrease
supply.
this scale are neces-
on
to maintain full employment,
Surely not.
No economy as advanced as ours should allow itself
w
(Ontario District), Toronto.
sources
sary
the
■
When the
total
demand for rer.
and
funds becomes ex-
feel that capital ex-
Some may
for personal% saving
erratically.
Consumer
fairly constant volume
of
Foreign
t0®urtr
environment
and
in
various fields of social policy.
they
of the benefits which
a right tp expect
some
have
29
of economic
and the more prudent
frugal
"
employment which is dependent
particular ef-. for
any extended period on capital
feet, the repayment of previous
expenditures financed by foreign
borrowing being a form of saving;
borrowing on such a scale.
The
that offsets (in the statistics) an
alternative' to this is to cut our
equal volume of new borrowing,
coat
rather more
in accordance
but large increases in
the total with the
cloth, and through polivolume of consumer credit of all
cies
of moderation and self-re¬
kinds in a relatively short
period straint to increase our rate of
can
add to instability in employ¬
domestic saving or moderate our
ment, prices, interest rates and the demands for c a
p i t a 1
to those
there has been any
when
spend
figure
does
were" apparent,
signif¬
ary' tendencies
to
year
fluctuate
when major inflation¬
even
war
who
excess
such
rate, involving as this does
heavy borrowing abroad.
incomes,
either
by
liquidating
previously acquired money or fi¬
nancial assets, or by borrowing.
Large changes in consumer credit
Supply
has so far been gen¬
erally accepted or at., any rate
practiced only * with .respect to
This view
the
saving by those who save,
change in the amount of dis¬
saving by those
consumption in
Reducing Money
Difficulty in
(181)
The Commercial and Financial Chronicle
.
or
and the
the central bank
otpd bv
commercial banks.
.
.
severely
Norwood to Admit
v
Lee
change
Norwood & Co., 20 ExPlace, New York City,
members of the New York Stock
Exchanse, on Jan. 14 will admit
A White to partnership.
handicapped if left in sole possess}on 0f sucb
responsibility.
To say
monetary
h
ai m e y
policy cannot make an important,
tms 1S no1 10 say
contribution.
What that contribu-
Joins Merrill
(Special to The Financial
CHICAGO,
Lynch
Chronicle)
111.—Jameg A. Hume
•
ju
+
has become affiliated with Merrill
tion can be is not preordained but Lynch> piercej Fennf?r & Smith
must .evolve in accordance with incorporated, Board: of Trade
changing circumstances in the Bldg.
,.
,
.
j
30
The Commercial and Financial Chronicle
(182)
one
SECURITY SALESMAN'S
tential
transactions
basis
be
of
an
contact
your
the
on
to the client, and
information that can
helpful concerning a security
holds, this often presents
opportunities
further
for
Go
the
Over
Records
and
This
May Find Some Good Ideas
.
There
several
are
why
reasons
should
keep accurate records of
customer's accounts. Firstly,
your
the
The
which
they
have
source of this type
information should be you—if
customer
And
more.
if you
a
to
it
is
portant
service
sold
records
in
you
lead
to
be
can
often
possible
to
such
this.
as
have
small
them,
arises,
but
Located
Continued, from page 15
toward
A
restrictive
a
growing
monetary
who
buy
from
time
to
time
sell their stock.
or
of
many
the
companies
growth
securities
the
has
Stock dividends and
increased
the
unusual
trading
been
in
their
tially above their original cost
ago one
small stockholders in such
offered
telephone
happened
an
and
odd
the
to
lot
salesman
receive
the
he
few
shares
had
and
he
went
located
same
and
y
'
*
to
of
he
stock.
He
he
that they
did
the
fered.
He
card
and
told
not
available
have
investment
finally
him
he
contacted
of¬
one
employee of this firm who had
bought a small amount of stock
less
than
three years ago. Unbe¬
to the salesman the
em¬
had also placed a
known
ployee
fairly
substantial sum in the
shares of
the young
company by direct pur¬
chase from time to
time. The stock
had been split several
times, there
were
inal
stock dividends and
the
orig¬
investment had multiplied so
that it represented a
sizable profit
over the
original cost. When the
salesman offered the 35
shares that
were
available he w'as
that this was of no
ex-customer
but
instead
selling
a
informed
interest to his
three years ago,
of
he
was
thinking
thousand shares and di¬
current
market
value
thousand shares of this
®kout $30,00(1,and. the
total
holdings
of
stock
a
unusual case, but
without detailed
records
of
purchases ; and
sales,
made even on a
not
have
been
basis, it
possible
to
locate the potential
business which
t
may be developed
spective
awards
with
this
in
place,
in
of
put in
dollars™ in¬
The three periods of
in
growth
bond
sewer
proj¬
insensitive to
relatively
money costs.
greatest
contract
construction
1947-1949
are
re¬
for water
sales,
dicates that water and
ects
abso¬
an
capital
data
bond
and
sales
water
and
1952
were
and
first
pro¬
bond
sales did not
respond subr
stantially to the easy money con¬
ditions
of
of
1958,
1954
but
and
the
tended
auring those periods.
cyclical tendency is
contract
awards
put in
place
projects.
The
data
in
or
level
No
off
contra-
evident
in
construction
water
on
first half
to
1947-49
and
sewer
dollars for
the
residual ''all other"
category
show the
contra-cyclical behavior
of this
group is
clearly
Tables 3
monthly
and
4
evident.
present
statistics
on
average
state
and
local government bond
sales, con¬
tract
awards
and
construction
work for certain
cyclical
phases
the
12
months
recession
^entered
troughs,
the
months of expansion
ond
12
months
around
first
and
the
12
sec-r
of expansion,
.
benefit
from taking
an
inventory
obtained
of your
this
con¬
stabilizing
the
argued,
was
also
result
in
that
been
This view
in
desirable
degree
a
contra-
Second, if it is
principle, has the
in
of
restraint
monetary
imposed by
during
boom
"excessive"?
policy
periods been
Deflated
the
Index
by
is
the
an
Associated
and
the
Commerce
for
construction
unweighted average
General
Contractor's
Engineering News-Record
Index.
used
one
by
This
the
deflating
statistics.
4
12
but
it
adherents
average
index
Department
water
and
of
sewer
the
to have
it
part,
that
probably also
that
operation,
the
It
has
often
economists
views
been
tend
In
1947-49
re¬
'
V.
34%,
Total
orient
state
Bond
that
Contract
Dollars,
now
their
public
pressing
luctance
cycle
span
investment.
to
as
be
Bond
Water
_
for
of
stable
course,
fluctuations
in
to
and
private
though
of
policy
considerable value
in
to make the
of
the
*
*
IK
are
t
>'V-:.
1st 12
Mos. of
Around
Expan.
Expan.
With
Around
Expan.
Apr/58
May'5S-
Trough
Apr.'59
Aug.'54 Sep/54Trough Aug. '55
Sep.'55- July'57
Peak
Aug. '56
333
498
494
461
394
485
506
542
557
645
647
468
581
605
629
666
714
758
132*"
150
132
431
■
410
370
97
87
90
100
137
135
138
142
143
134
109
142
153
154
160
168
163.
38
41
45
48
41
and
47"*
48
•
1952
water
of
49"
61
64
63
68
...*
/
'
361
r
303
249
"
300
>
304
and
sewer
and
sales
all
bond
construction
Publiciations:
Put
in
1956;
bond
for
56
57
57
for
340
357
407
433
the
Reserve
period
1952-56;
statistics
•
445
456
476
.523
from
bond
statistics
for
sources
Board
the
sales
for
Governors
of
the Investment Bankers
The
are from the
following Department
and
Costs,
1915-1956; Volume of
data
Volume
1945-1958; and
273
aggregate
Federal
the
.sales
data
The
for
72
290
*
t
338
in place
put
*"•*
*
•,»
322
,
71
;
..
190"*
The
Constrtiction
Place,
73
272
379
June
* 58
\
,*'
210
through
America
award
54
*
55
sewer.
various
July
date.
to
Construction
df
issues
1956
y-
strictly
of
less
comparable
I.B.A.
was
than
series.
15%
was
bonds
sewer
a
with
Review.
;
figures
for
earlier
During the last half of
higher than the F1R.B.
24%
higher
5500,000
than
which
the
F.R.B.
not
were
the
and
the
in
I.B.A.
the
F.R.B.
the
of
series
I.B.A.
broadereduca¬
on
series
The-differences
series.
covered
table
periods because
1956,
series,
water
on
bond
reflect
series.
iv
(Percentage Changes From Periods
of
in
Preceding Columns)
12 Mos.
12 Mos.
1st 12
2nd 12
12 Mos.
Ending
Cent'd
Mos. of
Mos. of
Ending
Cent'd
Mos. of
With
Around
Expan.
Expan.
With
Around
E'xpan.
1st 12
12 Mos.
■
July'53
Bond
&
govt.:
'
"
SaleS
Contract
.
local
+ 50
Awards
Contruction
—13
;i
+ 23
Work
•+24
Bond
Sales
&
4-
Awards
Bond
All
other
Bond
was
Work-
state &
Sales-—
•
+
15
■
.
Work/
,
.
bona
sewer
_
'
>'
comparable
of
bonds
less
;
with
the I.B.A.- series.
sales was 15%
and
.
.+
7
a*
+
3
4
2
+
3
+
1
8
4
1
4
4
l+
5
■
•
+
i
4'.
6
I <
was
than
.
.
+
•
—12
+ 14
—
6
,
3
"
8
0
4 17
+
7
4
2
+
31
+11
4
3
+
8
+ 72 ;
+
20'
4
25
—16
"+
,42.
in
Table
4.
•
+
+ 15
9
7
—
2
—-
3
» »
—10
7*
«
0 0
—
6
4
5
5
4
6
+
'
+
53
—
+ 25
4
'
4
.0
+
.
1
6
-
2
•f
4 10
10
•
3.
.
•
'
,
*9
'
0
,
strictly
of
tion
6
1
+
7
16
10
—
i
+
shown
Not
coverage
issues
—
'
30
local:
j—
Awards
Construction
exerting
+
+
J
Awards.-.,....
Contract
helping
4
+34
■
3
'
4
+ .37
+
Sales-..-..-.
Construction
to
+
Sewer:
Contract
in¬
—10
•47
.
Construction Work—Water
5
-
4
4
Education;-"
Contract
.
Aug.'54 Sep.'54- Sep/55- July'57
Apr.'58 May'58Trough Aug. '5ft- Aug. '56 - Peak - Trough Apr. '59 —
Peak—
Total state
:
*
1952-1959*
+-" /; +<,
Cent'd
:
dampening the final stages
preceding expansion
periods. Their actions
Place,
Averages of State and Local Government Bond Sales,
Construction Contract Awards and Construction Put in Place,
In
1947-49
Dollars,
for
Selected
Cyclical
Phases,
1952-59*
recessions of 1953-54
and 1957-58 as mild
as they were
and in
Sales,
in
Monthly
been
costs,
their
response
changes in monetary
Phases,
/
Buyer
issues
the
to
Cyclical
Put
12 Mos.
Work///-
Construction
and
State
terest
Government Bond
Construction
and
Ending
Awards
""Not
1952 should be
moderately sensitive
1959.
12 Mos.
._
Z
period
econ¬
local governments
have
only
28,
III
2nd 12
Work-
coverage of the
tion bond sales
anyone who is still
the
Even
Dec.
'
Commerce
and
about
impressive.
by Mr. Morris before the
Association, Washing¬
Finance
C.,
D.
($ Millions)
84
omy.
governments since
a
following price indexes were used for converting the data to 1947-49 prices; The
Department of Commerce index for all public construction was used for .the
aggregative
figures; the E. H. Boeckh and Associates Index for
apartments, hotels and office
buildings was used for schools; and an
unweighted average of the Associated Gen¬
eral
Contractors Index and the
Engineering News-Record Index was used for water
ex¬
in
move
irrespective
the
a
The
feasible,
contra-cyclically
for
Mos. of
—
Sales
contract
New
effec¬
capital
that they should
hoped
1st 12
Awards
Association
corporations. Opinion seems to be
moving full circle, from the view
that State and local
move
have
Mos. of
_
Sales—
the
school
monetary
restraint
during
boom periods than
large business
view
address
♦An
ton,
may not add to totals due to. rounding.
statistics are the following: The Bond.
sales
re¬
tive
penditures should, where
of
policy
Cent'd
Work
Construction
govern¬
more
monetary
hardly
"Details
business
local
1952.
advocates
Sewer:
Contract
growing belief that there is some¬
thing economically, even
ethically,
subject to
&
Bond
:
the
if State and
could
bond
■■
All -of-cr-state & local:.
-
private sectors of the
economy. In
addition, there appears to be a
are
ardent
stabiliza¬
since
12 Mos.
Work
Construction
appropriate
time
for appraising the allocation
between the public and
ments
most
the
to
economy
Ending
~
Awards
Contract
of capital
wrong
The
the
12 Mos.
Sales
Bond
There
greater
the
accept
of
Education;
growth.
This
affected attitudes
to
construction
local govt.:
&
Construction
and
appears
contribution
tion
Selected
for
~
Awards
the three postwar
recessions have
tended to
direct, the attention of
economists away from
toward
projects,
better performance.
Awards
'
'
Sales
Contract
Construction
have
sewer
and
compensatory
contract
With
Contract
to
to
by
by 23%
July'53
problems of the day. True to
form,
mildness and the brevity of
allocation
tial
Monthly Averages of State and Local
the
of
rose
rose
awards
local
and
Peak
most
limited
work, although relatively small in
amplitude, have made a substan¬
the
August, 1954
sales
by
Construction
'
noted
to
the
toward
seems
with
State
are not efficient stabili¬
r
con¬
local government bond
sales, con¬
American
public works
devices.
and
appear to
and the 12 months
programs, because of the time lags
involved
in
getting them
into
zation
of
State
been
schools and water
In
between
ending
1957-58 recession shows
.
belief
a
which
table
we are now less concerned
with problems of economic stabil¬
In
impact
on
fewer
that
ity.
have
to
pears
carried
today.
In part, this is
probably attributable to the fact
flects
controls
roughly the marginal 5% of capi¬
tal projects, those
having a more
postponable nature. Projects hav¬
ing high social priorities, such as
tract
bond
rising
\
the
did a restrictive
monetary .policy
"throttle"
or
severely curtail State and local
capital projects. Its impact ap¬
and construction put in
place rose
sales
view,
.my
tary policy should be expected to
no time
during the
by 24%. A similar comparison for
might other¬
monetary policy.
appear
change
a
monetary
market.
The
contracyclical fluctuations of State and
50%, contract awards
producing
to
accomplish. At
period studied
of the past two
trough,
government
figures,
response
mone¬
fact,
suggests
indicates
months
recession
unemployed.
seems
However, to
manner?
Construction
often
it
economy,
concerned
cyclical
of
Ideas
toward
would
Conclusions
10
Another
tribute
only would
problem) of
assessing these findings, two
economic
stabilization, the sta¬
questions of judgment arise.
First, bilizing influence of
bond sales,
is it socially desirable
that Statecontract awards and
and local government
construction
capital ex¬ put in place
by State and local
penditures fluctuate
In
account.
Reviewing Records Creates
Not
half of
1953, late 1955
early 1956 and the first half
problems
of stabilizing the level of
of 1957,&all periods of
rising in-"
output
and employment toward.
terest
rates.
Water
and
sewer
problems
and
young man's
company for
which he worked
has now grown
to over
2,000 shares. This is an
would
popu¬
so
ment.
is
in the
one-time
the
during the 1952-59 period: the 12
months preceding
cyclical peaks
of
versifying his holdings with some
reinvestments in other securities
The
shows
.'-'..Jv-V
sewer
the
telephoned them
II
producing
similar set
A
em¬
contacted^
declining rate
planned as to counter the
cyclical pattern of private invest¬
example of the
contraction
Table
sales
a
sufficiently fast
helping to bring
economy out
recessions.
the
reflect
have gone ahead largely
independent of the state of the
the
centered around
principle
in
action,
slowing down in the rate of
a
was
July, 1953 peak
a
an
response
the
secular growth,
gains, particularly
local governments since 1952
stitutes a model of what
of
affect.
of
some
that
evidence
be
two-year intervals since
is
the
and
•
may
be of value in
once
resources
sewer
of several
the
where
have
and
hands
file
fact,
feasible, public investment should
quirements.
brokers,
his
company with
prior trades in the
funds
for
on
this
had
those
other
his
the names
ployees
whom
to
time
some
was
that,
wise
lute
call
faith
with
the
the
In
programs
policy
fact
has
Table
enrollments)
who
of
projections
through
1965.
Per¬
haps the present decline in school
a
checked the market and obtained
a
selling order. Rather than offer
1955.
tenet
a
public works at lower social costs,
com¬
a
over
value.
to
bond
monetary
are
is
the
In
level, the kinds of
works
monetary
1947 and U. S. Office of Education
the
of
public
only nine months in
course,
normal
in
in
could turn out to
directed
and
in
growth of demand for schools (at
least the demand arising from new
of
value
growing at
with
splitups have
few years
ago.
Several weeks
pany
little
the
population
lie
accelerator
accelerated.
original
been
construction
of these stocks
very substan¬
some
the
for the
growth of the public school
electronic
had
future
get started
program
sales
bond
may
school
lation for
will
Recently
smaller
have
and
school
that
since
have
shareholders among their employ¬
ees
in
explanation
construction
companies
reflect
planning of
the
smaller
1953-54 com¬
the
but most of the
of
by
per¬
gains shown in these comparisons
adequate
an
an
unstabilizing influence.
experience of 1952-59, how¬
The
To the economists of my gener¬
ation, who were weaned on the
Keynesian orthodoxy, it
possible
decline
closely held se¬
traded only occa¬
sionally in the market. Sometimes
small,
a
have
may
suspect.
to
they
Account
are
or
months to
relatively
On Local Governments
a
New
a
Of
compensatory public
program
which takes 12
18
such
Monetary Policy's Impact
ac¬
as
duration.
com¬
of
group
still impressive when
that the 1957-58
are
small)
without
con¬
recognized
was
relatively brief duration,
out at the local
often
curities that
of
originated,
policy.
are
be
national
ideas
so.
There
to
busi¬
even
are
is
and
rising
although
in
recession
_
creating
with
Records
you
they
gains,
those
parison,
it
16%
place
latter
or
.
recessions
works
you,
than
small
are
lost
reasons
a
to
and
possibly will remember that iso¬
transaction,
than
by
in
put
The
centage
projects
of additional business when
When
the
waiting for you among these peo¬
lated
and
public works lost many adherents
because
of
the * long
time lags
experienced in getting nationwide
public works programs going. If
one-time
ple who at least know of
State
The contra-cyclical
possible! to bring them some¬
thing specific in the way of infor¬
mation then just expose yourself
to business.
Quite often there is
a
much better prospective client
of
only
had
be
substitute.
not
Quite
had
have
of
contra--
ever, suggests that this argument
is
not
applicable
to
need the records of every account
to do
of
law
trades with you within the period
the last several years.
If it is
that
the end result of
who
because
not
pelling
the
the
of
fluctuations
additional
use
opportunity
certainty
information
you
or customers that have had
transaction
one
source
where
value
behavior
perhaps
of
or
year
hearing
calls
when
also
the
should
very
Some capable salesmen find
counts,
the
accu¬
securities you
clients is that these
to
to
can
ness.
it
keeping
sometimes
helpful
that
for
never
a
client he will be
from you.
in
of the
for
a
your
know
reason
additional
generated.
obtain
can
interest to
interested
records
for
often
marketwise
•
You
have
A
elsewhere
goes
is
obtain it you may
very well have
lost the account.
The other im¬
rate
-
ever
mant
bought.
of
only
that
those
is
clients
There may be a security in some¬
one's portfolio that has been dor¬
they depend upon you to inform
them regarding the status of secu¬
rities
with
ideas
creative
business
discus¬
averages works very well.
Con¬
tact
you*
dormant accounts, or
transactions
past
you
is
social
work, even though the amplitudes
opportunities for business.
You
7%.
of
additional
rising
tial
local government bond sales, con¬
tract
awards
and
construction
which he
sion which may lead to
awards
struction
cyclical
of service
at
present, In my view, the substan¬
If
business.
Thursday, January 14, 1960
.
.
similar dampening influence
a
an
1
present
you
BY JOHN DUTTON
with
unrealized po¬
available
make
you
CORNER
two
or
account there is
.
24%
for
earlier
periods because
the
of
broader
During the last half of 1956. the I.B.A." series on.
higher than the F.R.B. series, ana the I.B.A. series on
$500,000
J.
figures
higher
than
which,
•-ft.
the
were
not
F.R.B.
series.
covered
in
The
the
differences
F.R.B.
educa¬
water
reflect
bond
series.
,
/-:»
■
'i.;.
'
*• '
■
"l
•
V;
volume 191- Number 5916
, .
.
The Commercial
and Financial Chronicle
ROBERT E.
the
RICH
$75,960,000, 10.7% above
Everything Clear?
first-half
record
The
Is
during the
period. At year-end it
contractual plans in
*
*
*
Incorporated Investors realized
net gains of approximately 700 per
1;he
share on sale of portfolio securities.
Directors plan to vote on
Jan. 20 the distribution of sub-
like
1958
mutual fund manager describes the marketplace.
had
84,600
one
force,
broker who said around the Thanksgiving holiday that
December—the month ahead—would witness an upsurge in the
market, climaxed by a year-end rally of large proportions. Well,
historically, December is a better month for bulls than any of the
other 11, but it didn't work that way in 1959.
There was another school of thought among brokers that held
there was nothing wrong with the market that a settlement of the
steel dispute would not cure. The settlement came as a New Year's
present and there was a brief flurry in stocks—notably steels.
"Inflation!" was the facile answer. Not too many hours later Presi¬
dent Eisenhower was expressing a hope that there would be no
rise in steel prices and forecasting a $4.2 billion surplus in next
year's budget. "Deflation!" was the cry and a lot of brokers and
their customers moved into the bond market.
On top of all this, the halo of many a glamour stock has slipped
of late; the oil stocks come to life for a day and then die; the rail¬
roads are brushed off for two days and then they die, and the
overall aspect is of the inability of the market to mount a sustained drive in any one group of stocks.
It's not just brokers—there's enough confusion to cover the
whole community.
And there's enough advice too. It comes from
all sides and tells us where the Gross National Product will be in
1970, how many cars we'll be turning out 10 years hence, measures
the size of the labor force and gauges the worth of the dollar. The
nice thing for the practitioners of that kind of exercise, of course,
is that it does nqt involve day-to-day judgments and skirts the
specifics that mean something to the investment community.
The confusion of the marketplace merely mirrors the rapidly
changing times in which we live. Surely, the men who engaged
in 1949 in one of those decade-long projections could not foresee
the Korean War, from which Communist-ruled China emerged as
a
major power. Nor could the pundits foretell that after being
around 100,000 years, Man would break out of his environment.
They couldn't even envisage the advent of a Republican Adminis¬
tration that would prove more New Deal-ish than the Democrats.
for
cal is the
the decade
Francis
portfolios, most of whom have
a
related " February 16 in stock or cash at
services the stockholder's option. This payment is
expected to amount to
industry.
Fund
Ltd.
the
for
period ended Nov. 30 shows total
net assets of $56,426,598 (Canadian
do
ars
dollars)
per
president, said this compared with, $59,687 963 or $12.30
a
share
on
5,024,499 shares on
Stires,
Nov.
1958.
30,
assets
net
business through the enlargement
of its agency funds and territory,
0r
through acquisition of insur-
Nov.
on
$11>70
largest group holdings of common
stocks were: steels, $9,476,275 or
net
of
16.8%
natural
and
assets; petroleum
$8,951,507
or
gas,
15.9%; paper, $5,784,465 or 10.3%;
public utility, $5,556,625 or 9.9%;
or
7%;
$3,929,500 or
6.9%; electrical equipment, $3,499,981 or 6.2%; metals and mming, $3,474,788 or 6.2%..
$3,932 500
lines
pipe
banking and finance,
*
*
*
Line
Value
Special
announced
of
establishment
■
*
*
in
hung
total
assets.
were
built to 9.9% during the
$5.55
was
a
funds.
The
transfer
shares.
total assets
with
Line
Value
shares held in
of
the
Tua
ine
one
at net
—
proviso
is
plan,
value.
that
shares
reports
total
1o04
asset value
value per
per
asset
the 1,301,234
outstanding, against $9,-
$7.13
of
shares
on
607,397, $6.94 a share and 1,383,817 shares at the end of 1958.
Fund,
Investment
a
30, the end of
Nov.
its fiscal year.
year.
charge to
There
cover,
is
npr
$8 89
share on Nov. 30
In
a
change
,
letter
plan
announcing
to
the
dealers,
were
ex-
a'capi-
after deducting
'djstribution of 31
in
vestment
holders
the
two
do
change
cnange, "
letter
letter
the
tne
stated. "An investor who has built
capital
roay
in
wish
porated
vestor
Incorporated
to
transfer
Income
in
in
r
Investors
into
Fund,
,
or
Incorporated
fund may find he wants
Incor¬
an
in-
T
Income
at
least
Murray J?ru
the preceding year,
and were the highest ever paid
by the Fund. . Realized capital
gains of 6 cents per share were
?"dJ
di«ed J*
whereas no such distribution was
made h last year"$9Net
asset value
75 on Nov
30
wag
;+oi
the capital
Including the
distribution, year-
19,59 after payment of
distribution.
gains
capital
end
gains
value
share
Investment Company
Dividends Number
142 &. 143
QUARTERLY DIVIDEND
12<£ per share
per
Both dividends are
1900
to
DIVIDEND
CAPITAL GAIN
SPECIAL
share
payable February 16,
stockholders of record January
Stockholders may elect to receive
the Special Capital Gain Dividend eith.-r
in stock, taken at average market price on
February 1, 1960, or in cash. No fractional
shares will be issued. Stockholders may
22, I960.
rerpiest the
transfer agent to purchase for
fractions necessary to
dividend to a full share.
their account any
round out their
JOSEPH
equivalent
was
closed-end
A diversified
STOUT
S.
Vice President
and Secretary
compared with $9.84 at
of the preceding year.
outstanding increased during the year to 2,656,599 from 2,501,758 at the close of
$9.81
the
end
j\jumber of shares
The
■
Investors
Company, Inc., stated that as of
Dec. 31 net assets were $59,849,American
General
; 1
.
>
.
>
■
> •.
•
.
> *
Lazard Fund,
inc.
7(y3o/
of
steel and 363,000
industries. Currently,
assets is invested in
equal
to
preferred
stock, were
$30.52 per share of
Annual Report
stock oh the 1,818,147
common
as
of December
a
89% invested in
31,1959
American
equities at
Business Shares
Available upon request
tions.
A Balanced Investment
Record
stock-
of
automobile
"In¬
funds.
objectives
mainly in the paper,
the
end ofand
1959'
The balance
was
short-term
obliga
in
cash
Parker
cited the
flexibility it would offer
investors
.
Murrav Fru-
DOMINICK FUND, INC.
1959
gain of 6.7%, the cornpany reported. In a statement on
its first
full calendar year of
operation, Lazard said its assets
$17.47,
service'
bookkeeping and
other costs.
,
Fund net asset value a
share in 1959 rose from $15.91 to
$5
a
'
^
as^t "SCal 1®58"
^1S
vahip
Lazard
surrendered in the exchange must
uave been
outstanding for at least
one
—
—
part of
asset
assets
net
General In•
cents
the $10,000,share declared on the same
of 71% P
year-end value per 943. The decrease for the year in
during the 1959 fiscal year. The share™aaf5|8y/0ar
According to the net assets, after payment of
WclS
Boston-based income fund had the annual report, bond holdings $4,669,248 in dividends and $716,net .assets of $10,003,707 on Dec. were materially reduced during 587 for preferred stock purchased
31, compared with $5,853,907 on the year and the proceeds were for retirement, was
$9,168,474.
the same date a year earlier,
invested
in
c o m mon
stocks. Net assets, after deducting $4,-
fund for shares
other
.
only
in
or
.
of per share in
with
with
*9281 302
$9,281,302
share
Fund
4L„
4
4
was
Mich
min has become associated as a
registered representative with
Morrison Investment Securities in
Dividends from net investment
income amounted to 47% cents
This per share compared with 47 cents
$87,980,888 and $5.65 on each of
the 15,573,177 shares outstanding
at the close of 1958.
Total net assets of
a
which is available only by means
of the official
prospectus, permits
exchange in whole
1VJLUJLI loUll JLIJL V
DETROIT
and asset
share on each
15,535,489
the
compares
1T
.
gains
in annual, semi-
new
categories,
highs in all sales
were
reported
by
Planning Corp of
America. The retail firm disclosed
that
business
written
in
1959
Company
0
75.2%
the
$82,508,000.
bettering by
of
previous year high
Second-half
volume
•
44
Wall Street,
Prospectus upon request
Investors
totaled $144,560,000,
Fund
invests, in a portfolio
bal¬
anced
between bonds and preferred stocks
selected
for stability)
and common stocks
selected for growth possibilities.
The
annual and Quarterly volume, resulting in
T
to
value
of
54
JYlUllcXj
J. 1 Ulillii ciu
mrvrmerm tlw qopc
*
*
*
-
Total
$10,255,140,
were
transfer privilege for shares held vestors Trust passed
by stockholders in either of the,.000 mark for an increase
two
to
portfolio had 56
issues in 17
industries, with utilities (11.2%)
the oniy group over 10% of the
balanced
fund, reports
total net assets of $93,253,155 on
„
risen
has
value
time the
$11.37.
The
that
Since
distribution.
the fiscal
the special
V
TVni'PUfl V HrnmiYl
Automotive holdings the Penobscot Building. Mr. Frulast min was formerly Vice-President
six months with the addition of
of Moreland & Co.
30000 shares of Electric Storage
Battery Co. and increases in Dana
Corp. and Eaton Manufacturing
Situations Co.. :
^
THE
amounted to $86,291,091
in Incorporated
-
including
-
Panies*
$4.08 on each of the
2,515,113 shares.
This compares
with $8,774,004, $3.40 a share and
equal
The Funds Report
has
special
share
'
anc5 fr0m °ther mSUrance COm-
of Investors
Selective Fund, Inc., sponsored
and managed by Investors Diversified Services, Inc.,
increased
2,583,113 shares at the end of 1958. from $24,611,831 on Nov. 30, 1958,
Value Line Income Fund reports
to a new year-end high of
that at the end of 1959 total assets $25,912,654,.
on Nov. 30, 1959.
total assets
1959
Diversified
part of his capital
Investors.
1
a
per
of
end
the
at
not
yearj
reports that at the close of
Fund
Inc.,
and
in
long-term capital gains.
net
from
and
$1.10
of
distribution
to
Incorporated
Investors
Incorporated Income Fund,
income
vestment
rents
49
from net in-
per
company management.
oi
naiH
S-2
iCpvstnnp
million.
$500
to
™
had
a value of $52,795,544, equal Net; asset value per share was
to 93.6% of net assets. Among the
rise of nearly 50% from
The Parker Corporation, manager
ciose
feguiar disfributfon
1959
30,
Keystone's
with
funds
of
assets
fund's
stocks
common
10
aggregate
share for the fiscal
of
largest
domestic
1959
16,
It
insurance.
J5
„!lit S
H
*unds to Perm't * to expand its
equal to $13.01 a
holdings
of
were
The
share.
Dec.
On
surgical
and
**ow has outstanding 246,424 cornmon shares- Net proceeds of the
al!
Hardwick
shares.
outstanding
dent
ended Nov. 30. Keystone S-2,
with total assets of $85,746,298, is
asset value per
$12.58 (U. S.
share on 4,723,154
acci-
and industrial . life, health,
Keystone Income Common Stock
Fund
c_2
inrreased
9%
in net
to
equal
,
The company is engaged in the
business of writing ordinary life
*
*
*
report of Scudder
Canada
of
$4.50 per sharel
$23,000,000.
over
1958? The individual
investor—butcher, baker or candlestick maker-—may not under¬
stand all the forces at work in the marketplace, but he has shown
a steadily increasing awareness that
the lot of the amateur, oper¬
ating by guess and by gosh, tip and rumor, hunch and fear, is not
an
easy one.
•
/
:
If there is one constant that has not changed and is not likely
to change, it is the odds that favor the professional over the ama¬
teur. This recognition by an increasing number of amateurs goes
a
long way. to explain the popularity of top-flight investment
$2.3 billion,
Financial
editorial
Semi-annual
an
some
been
chief
and
mutual fund
the
and
the
Workbook
Voorhis
Kalb,
enviable record in years gone by, must feel a pardonable
pride in the results. The general public has not been unaware of
the achievements. How else explain investor purchases in 1959 of
up
of
consultant
tax
has
editor
Plymouth Bond
Offers Fla. Ins.Stk.
Plymouth Bond & Share Corp.,
of Mikmi, Fla., has publicly ofstantially all of these gains to fered 203,476 shares of common
stockholders
of record
on
that stock of the Life Insurance Co. of
same date. Payment will be made
Florida (also based in Miami) at
*
Simon
M.
associate
Plannihg
by the electronics frenzy.
Managers of investment
*
*
in
Nor, for that matter, were they able to foretell that early
be uranium fever, to be succeeded late
the decade there would
during
46%
over
up
58.8%
a
written
12 months.
named
63.5% a
In the six months since
fund's
semi-annual
report,
bonds added to the portfolio
ago.
section were Armco Steel Federal
Paper Board and United Artists,
'Never.before so much advice and never so much confusion," is
way
year
against
stocks,
common
and
total
quarter
to
business
Themselves feeling in no small measure the confusion of counsels,
investment companies, nevertheless, are likely to be major bene¬
ficiaries of the basic uncertainties that nag the individual investor.
The old cliche about "playing the market is a full-time job" never
rang more true than in the fading days of the 1950s and here at
the onset of the 1960s.
; ■
11
As one who sounds out dozens of brokers* each week, this
writer can attest that most brokers admit they are confused. Typi¬
total,
increase
fourth
amounted
over
the
31
shares
outstanding. Net profit
from the sale of securities for the
66.4%
greater than that of the the
year
was
$3,545,699, all from
last six months of 1958. The comnew
long-term capital gains. Net inpany ended the year with fourthincluded
Long
Island
Lighting come from dividends and interest
period sales of $44,725,000, to top Co., first 5V4S, 1989 and Tennessee for the year, after expenses and
the previous high, set during the
Gas Transmission Co., first 5y4S, taxes, was-$1410,492.
1959
second
quarter, by 21.2%. 1979. Added to the common stock
'
*
* - *
to
came
MUTUAL FUNDS
BY
(183)
New York
Lord, Abbett &
New York
—
Chicago
Atlanta
Co.
—
Los Angeles
5, N. Y.
32
;
BY
to
York City was sufficient
elicitMvage concessions which
justments in Louisiana rates were
in
time
March
OWEN ELY
....
.
-
■
..'C-':-.
-
0
Gulf
*
.
States
i..|v
Utilities
.
Gulf
States
Utilities,
southern "growth
population
a
of
southeastern
central
cities
utilities,"
about
Texas
About
86%
trom
of
and
in
south-
9%
Steam
from
made
of
cane
well
as
increases
and
for
r
War
nn
of oil
ance
and
lime,
ply,
and
gas,
field cost of
II
1958
'
salt, sulphur
fuel
1958
three
-n
were
added
a
aU
to
v.
,
/
19-9
credit
of
the
loss of
in
cents
1960
due
the
appears
likely
the
that
will be resumed
trend
The dividend rate
for
ment
from
42
rent
in
cents
of
rate
$1.00.
cent
dividend
was
"tax-free,"
to
the
cur-
Thirty-six
in
payments
it
is
per
stock
has
selling
22.5
l
presented
a
ducements
industry
Q
VV lid I
the petrochemical
believe not equalled
has
expanded
plants in this
lished
ten
a
area
exist¬
or
industries.
estab-,
rations in
satellite
Our
plants
we
for
™and
not
may
only
forecast
it
should
power this
a,S° use
dI ®)die care to avoiid over-
retained earnings
The
.
neat-
i
a
mJre thTn
than dm?hWP.fnee
io4
doubled
19o3
more
since
aa
and
accelerated
-
proportion
seems
result
of
likely to
changes
relationships between bond
^
to
issuers
than
in
the
J^nt oast On the demand side
fh^abi myofmuiua 1 fundstob uy
ave-
stocks
seems
further,
and upon the
and
than
more
competition which
affords. The vastly
research
the
in
be
likel
to
these
jncrease
funds
$700,000,000
bought
in
1959.
Moreover,
pension
funds
inventiveness
iikely
to increase their stock
.,V.I0n kw in l9o9 to nearly
expenditures
rhases
will continue
million kw in
1963, an average
compounded rate of gam of nearlv
12% per annum. The increase in
generating capacity failed
to
up with load
matter
petition
keep
of it
own
although
in
been delayed
difficulties and technical
162J100 kw
unit
at
by labor
Glen Station
service
in
Willow
is expected
to go in
1960 and a second
unit
?Lo220f009
1963.
Land
has
isbeen
scheduled tfor
contracted
!?r %%ursyywsa
unit
this plant
tarSlirn1ant°ranheUtl}eArst
scheduled for
in
is
It!
!
steel
abroad
areas
but
have
The
at
T
etc
"
...
orovide
categories
wire
as
consDicuous
.,
.
,.1 thlnk
we can.thus summarize
general question of the qual-
Lf
th/hiVhp^ AVPr^n ^oLi1 Wfl!
fg
respect
to
capabilities.
,?
hnv
sen.iHties
nnr
improved
fddhion
In
u
.
nL
elected
c0nsPICU0us
of'this
,
ZlnTS.3
personal
sayings
■
i
in
.6?' ln the absence o£ ma-l°r
St?keS' f e"?s SU(r,e l° gr0W'
Importantly influencing
overall
supply-demand relationshms
be the matter of interest
seems
year
men^
probable
that
will
rates.
before
It
the
is
out the Federal Governwm again be a
heavy seller
of long"terrn bonds
as
the result of
ln 1960 Wlti{ a probable ending of the present
reported Congressional limitation of 4V4%
dividend-paying Moreover, as noted above, indus-
ca^h {}owf
and
try wiu be 5n the market for
—
»- - —Tu,rning, TW
tbe matter of
supply and demand for
stocks, the
s
1
sit"ation is somevyhat
„
..
....
.
new
wira
will continue to rise.
•
A
a
.
less favor- interest
...
rates than
fair'sized P',?"SrJ° ,build
"P.
a
"
FS
been forecast at
Kd^rtul^enli^^
to
produce plus incentives
creasing
"S
for
in-
efficiency
^ resuuing
resulting from
irom
sk
1959, $53 million for
I960 $46
million in-1961 and
$52 million
in 1962 0 963
might be considerably
^
ably larger
larger)I
ass -as?
seems tartx?
likely
to-in-
Thus, higher
©
.
'
all,
Ahead
...
which
is
_
the
expectations
nnnf'
of
issuance of new cor- security buyers and holders. The
P
setcnP.n
was. at a low main factor in this category that
llnlin""
billion
and an increase in
ek$9
iignihhas
tbonds
enros-mdeflected
,JJ
buyers away" from
new,
in
of
.
?ierings ^ possibly
and toward stocks
has been
$12
inflationary
expectations,
the
and
economic
With
1959
1859
curirtn'tZ''ILI,ew
cuntles to
-e" peclau°ns.
offered, the
major, the
mere
In
the
threat of
area
a
of
labor,
transit strike
gen¬
population
at
and
more
matters
will
influence
provide
stock
on
to
expectations
latter
half
of
the
struction
overall
in
trend
of
ness
excellent opportunities to
bargains.
tax
pick up
situation,
National
Gypsum
and, in the low-priced
United
Asbestos
are
stocks
in
this/ group
to
watch
closely.
In this connection, the
biggest outlet for aluminum is in
category,
the
building industry.
for
have
been
several
should
years,
witness
Aluminum
marking
time
and
year
this
much
improved
major
performance for all of the
aluminum stocks, of which Kaiser
Aluminum may be in a
position
perform the best.
to
A growing shortage of lendable
funds,- and consequent stiffening
interest
rates, should spell im¬
proved earnings for many compa¬
nies in the financial
category. Not
only the leading banks, especially
New' York
City banks, but also
such wholesalers and retailers of
credit
do
as" CIT
well.
For
volume
the
and
the
should
Heller
latter
should
increased
than
more
rising cost of borrowed
should
companies
have
an
.
of
offset
money.
all
sorts
"excellent
year
marketwise,
doldrums
be
of
capital
expected to
giving
good
goods
expand,
of
assurance
thus
holders
and
industrial
ments should remain
manage¬
stock
prices
in
1960
seems
the
15%
in
or
tion
of
if
is
by
so
1959.
A
which
general
backed
with
up
^Torth
Insur¬
America
all
"Glamor Category"
alluded
We
portance
in
of
earlier
glamor
to
;
im¬
inven¬
economy.
category
companies
the
and
research
modern
our
the
turned
In
elec¬
in
an
performance last year,
the compapies engaged in the,
exploitation of photography and
the application of electronic tech¬
and
specific
now
Insurance and
excellent
observa¬
kind,
however, is
only of value to a security buyer
it
y
tronics
this
suggestions, so let us
ceed
to
develop some
General,
provide excellent value at present
prices, y-y -y
'..1
this
prices
but
casualty
Life,. Continental Casualty,
ance,,; Coy. of
tion
probable, although the gain seems
likely to be considerably less than
rose
Aetna
only
been
1955,
property and
insurers, y Connecticut
The
Summarizing all of the forego¬
factors, a moderate advance
since
the
high, r:
ing
in
the
also
Continental
sat¬
-a
isfactory rate of activity in 1961.
Therefore,, the morale of stock¬
con¬
Georgia Pacific with its
unusual
in
manufacturers
to
this
should retail trade of all
can
1959.
country will re¬
strongly upward, and weak¬
in the group should
provide
main
the life
kinds be
\
publicity accorded
including not
insurers, which have
excellent, but the order books of
5
new
Insurance
respect
the
the
concerning business, these seem
likely to be high all year. Not only
niques to business were not far
behind.;, Eastman Kodak, IBM and
pro¬
practical
Bell & Howell
ideas:
:
in
this
are
but
obvious leaders
at. the
opposite
quality are a
number of smaller companies
Possibly the surest thing about which are doing well in develop¬
1960 is that capital
goods activity ing the-electronic and inventive
will enjoy a
strong rising trend. aspects of their business. Emerson
Steel will be in
strong demand
Electric, Northrop, Ryan
Aero¬
and steel companies will not
only nautical, Sperry and Philco come
report record earnings, but will in this category.
increase their dividends/This out¬
The matter of research can't be
end
Specific
such
lic,
Stock
seems
fully
issues
Jones
not
as
yet
have
to
well.
Makers
makers
of
D.
of
Electric and
have
of
earnings
include
markedly;
Blaw-Knox,
Chemetron, Harris
but
nevertheless
mental progress
at
year.
Ameri¬
are
all
grow¬
in
this
great
we
source
field.
should
of
consider
capital
gains
a
—
management
brings
of
us
a
names.
mentioned
means
;
changes — and this
widely assorted group
Crane, for example,
above, seems by no
to have yet attained
earning
Intertype and
capability
management, and the
vation
Seal,
group which drooped in
Johnson
Finally,
these
Crane,
look
a
Gyanamid, Olin Mathieson, G.
terests
an
Co., Gen¬
McGraw-Edison
companies of smaller
should be able to in¬
crease
without
ing companies with important in¬
provide varied aspects of
partici¬
pation in heavy industry. Also in
the
capital
goods
group
are
a
which
of
Seafle, Allied Laboratories and
Johnson &
electrical
equipment also should
excellent year.
Koppers
number
scale
earnings strides this
can
heavy equipment for the, steel in¬
size
the
chemicals and drugs. Du Pont and
Union Carbide should make
strong'
buyers of
U. S. Steel, Repub¬
Laughlin, and thr
leveraged K a i ser Steel
and
of
dismissed
been
and
&
fare
area,
Recommendations
discounted,
should
A
In
ln
the
the
Mergenthaler.
and common
stock
—
While
conservative
tempering
prices.
eral
L*t
of
mere
possibility
coming into power
which, it is felt, may act unwisely
on the market, dustry
Inflation
they
as
events
group
Ihcrae "now pre'highly
especially for gilt-edged securities
More
aboutexpanS10"
for
teraPeri"'g dffect
the
steadily to be becom¬
seems
a
look
needs Of states and municipalities
s»T;™ i»: as.'yssssr r jys s»*^t«sr.,ftsas
ne
temper
more
of
pur-
somewhat
a
? ?
J? a r"i?"'
the ""mber of stockholders in this
much
compact
tn
^n'have
a
com-
whicfTour
In
products/such
examples
problems.
the
fn
comnete
fencing
operation but last year three
111,kw units were
added, two of
had
from
hear
we
days about
automobile and certain
of
000
which
these
comes
to
foreigners
competition
industrialists
„0f
,Y?go,.)e„AAe,yearS
I9d4;58 on'y
213,000 kw was
placed
of
deal
great
growth in 1958, when
the company had
to purchase
29;.
000
kw
from
adjacent utilities,
about
1950s.
to
stocks
forthcoming
election
hazard. Investors have
y
declining rate of construction
dwellings.
However, in¬
creasing population pressures
ex¬
expecta¬
Building
.
the
in
was
of
of
inflationary
seem
kjTnm/rnfarlv ^--nt
years suggest high.
that inven& r^MIhe* abhitfof
tiveness
In the
J1.7
i
A
e 0r from
increase
attractive
Y the ^vestment of
"U.eS
h
new
the
bonds
as
past,
aa^j stock yields which will make
the sale of stocks somewhat more
emphasized
ness-the ability to find
!™P™tLT"0my; bUt
iTimnnnu'c
be
However,
of stocks to
in the
_
that the earning power of business
is in the long run to a great degree dependent
upon
inventive-
keep
ever-increasing de-
electricity to
bonds.
1960, possibly not quite
increase as in 1959,
the
rate
in
the
other
political
a
in
the
forgotten
early
ing
JDUblllt/bb
as
can
for
building group
likely to be unpopular, as
seems
it
due
the
to
a
not
large
Kll QTH PQQ
will,
part
In connection with the foregoing
is
companies
that
abreast of the
•
1UJL
an
dut at least 5%.
and
organization
great
as
constantly in touch with the headquarters of these large
so
b XJLllCdtl
Continued from page 1
plant within the last
Each such major addi-
attracts
f*
TAT*
And the Stock Market?
new
years.
^
tion
its
"1
of
capitalistic,
anywhere else in the world. Prac¬
tically every national chemical
ing
AT
A hDQH
Q
I
for
we
company
f
1
\A/ h
sat¬
he
cal to business that prevailed until
eral
T"TT1
rates,
have
combination
of
in-
post-war
from
the
have
■%/■%
Bargains: in
I960
mean
Further,
On
return
the
attractive
In
earn¬
a
re¬
coal
representatives
Equities
to
1929, they have not forgotten the
atmosphere in government inimi¬
'//%%
au
at
at
their
and, coal
field.
Possible
of
amounting
long memories, and, just
rate dustry average ar0und 16'7"
'/:.^://'y •■I'y'/u..---.I
ex¬
benefit
in
Peabody
good
holder
a
4% and these
rate.
1%%.
contains
with the in-
compared
or
average
tions,
re-
around 31, to yield 3.2%.
price-earnings ratio approxi-
mates
isfactory
probably
Turning
cently
The
the
compounded
are
pectations
—
deep-water
transportation
and an aucu|uaic
adequate oupjjijf
supply kjx
of cicttui.
electric
power
ings
gets
earnings
another 3%
estimated,
been
are
this
buyers to favor stocks.
1959
compared with 27% in 1958.
The
inflationary
growth
.
Coal
the
term
interest
rates
approaching
6%, there will still remain a sat¬
isfactory incentive for long-term
has increased
1948
into
way
from
used in the generation of
electric¬
ity.
Pittston
Co.
and
sooner
hand,
bondholder,
even
the tax-free bondholder, is
diminished by the inflationary in¬
crement. Thus, even with
long-
(after adjust-
split-ups)
he
retained
the
1961-62.
able
aiivj
addition,
the
upward
in
their
practical matter,
a
about
gain
However, it
find
kinds
now
to
have
peak, and from this
securities
should
coal
maining markets, i., e.,
metallurgical purposes
gets not only his current
yield, which at the present time
is between 3% and 4%, but, in
earn-
1959 results.
all
seems
its
on
benefit
increasing government
of
coal
time
expect
an
additional
modest increment for inflation at
this
to
price increases
of stocks
in
estimated
an
15C
steel
affect all wages and prices.
later
As
that the
drop rather
will
conditions, was the
Tefcaco, Phillips, Shell and
Skelly should"" be able to make
good progress in 1960. The com¬
petition of oil and natural gas
pectations seem likely to persist.
tfkely
appears
changed
reached
round of
new
price level. Thus,
figure); and
increase
the
of
to
oils.
with
or
indicated by the fig12 months ended Nov.
for
it
1957
further
some
tbe credit ts
0Ver
concern
Texas
times the
the
tual
Moreover,
stimu-
were
doom
settlement
expenditures
by a large amount of inter€St charged to construction (nearly
15-20
gas. However, during
all
earnings
The
to
sure
strike, which will set the pattern
for all industry, assures an even¬
course,
changes are necesthe proposal under
factor, it appears likely that
jngS may not show much
clauses designed to reincreases in fuel cost
cover
good fresh-water suppool of skilled labor, avail-
a
jn
cauSe
rather slowly
some
accepted
lated
due to the steady increase in the
<SatL
n-mv
cents level
split-ups.)
been
had
1958,
The larger citieswhere
gtill had
interest
earnings of $1.38. (The
figures have been adjusted
ha,
the end of
sharply in 1960, but recover some
0f the lost ground in 1961-62. Be-
Because of this factor
rose
at
50-year
new
cities
34
charter
30;
about rising fuel costs in the south
u
a
thf
record
in 1958, but for 1959 a
showing is indicated with
Th
has^h^naa^trempn^rmf«UinS
tho
1959
a
consideration.
$1.28
above
ufacturers include chemicals, syn-
area
The
31,
estimated
pipe line pumping, have become
increasingly important. Man-
HnftSal?1u?
since World
Oct.
lost in various rate
were
earnings
better
refining,
and
Coast
of
company's earnings
reductions.
cattle-rais-
as
19o4-oo.
in
as
past
cents, but later about 70% of these
to
Oil production and
except
the
1948-52. In the following
year
with the help of rate increases
earnings advanced to 93
share
ing.
of
year
during
the
sugar
c-t
gal;
stock
common
maining around the 72
electric
rice,- cotton
ie-
in the first half of the past decade
were somewhat
disappointing, re-
cor-
rural, commercial 27%, industrial
28%, and miscellaneous 5%.
Agricultural
activities
include
of
each
ratio
The
sales is about 40% residential and
growing
of
of
out
ures
Oil, and U. S. Rubber,
Louisiana business contributes
about 57% of revenues and Texas
breakdown
,,
it
are
throughout manufacturing, and in
an
election
year
Congress may
well choose to up the minimum
wage by 25%, which will, in due
city in Texas which
and
this offer.
.
33%.
was
rations-—Ethyl Corp., Esso
A
in
decade
Standard
43%.
shares
equity
*
service
provided for several large
.
virtually
was
were sold in May. Common stock,
offerings
had
previously
been
steam
electric
•
program
•
250,000
de-
are
electricity, 5%
27
peated, some $36 million being
raised by
three-way financing,
serves
950,000
revenues
and
gas
products.
po
each
grant
franchise
Company
,
the
the
Louisiana, including the
Port Arthur, Beaumont,
Rouge and Lake Charles,
rived from sales of
is
of
one
of
Baton
1, 1959.
to
New
fare.
the Louisiana Public
Commission, effective
by
would
r
not
The company has offered to pay
an
increased
street
rental - payment
.•
Ir
did
clauses.
••
•
Thursday, January 14, 1960
.
in
granted
■."-■'u
>
.
already
which
contain such
'Service
SECURITIES
Financial Chronicle
Similar ad¬
schedules
'
PUBLIC UTILITY
;
Commercial and
The
(184)
its full
under
same
new-
obser-*
applies to 'Crown Cork &
Smith Corona is in the first
1959,
phases of reorganizing its business
madeu.iunda-
under« strengthened management
team. International Tel. & Tel. has
ad justing, itself
1
sperates1 in
S^ve^now
[as
ve
\
lis I
lid !
reviewed the most
imooitant price-shaping influx
for
|c-
ly
[in
as
simple systems and
elements
as
STOCKS
critical
d
from
euni2tnoC
and resLrch oraTnizatfon
^trument
provide^^ maky [urinf
medium a^bteptiaUy
as
'fTny shfe throucm.nfheconn
that
list
page
tion
tion into
into digital
digital form
form., A single
instrument can provide as many
common as 90 contacting segments, each
Sous
fels
soundness of which will send out digital information for appropriate processing by recording, controlling, or"
indicating devices or mechanisms.
Typical applications include telestrength that assures peace, that metering, testing, automatic gradthey understand that the greatest ing and selective digital counting,
guarantee of personal freedom is Particularly, outstanding
is the
the right to own
property, and economy to the user — standardthat these
circumstances imply ized instruments providing up to
5
the essential
is
into
runs
the
thousands
and
This Week
30
Isocial stability.
Forum of
York City, Jan.
Luncheon
at
address
*An
Harrnonie Club, New
1960.
9,
■
.
.'•V**
carry
A—x
Convair.
90 contact
are
or
Cor¬
Space
Lane,
Johnson,
The
poration is offering today 70,000
shares of Georgia Shoe Manufacturing
Company,
Inc. common
stock at a price of $4.25 per share,
The offering marks the first pubthe company's common
lie sale of
n
tt
account
Inc.
and
as
'
1 Q'vf!
Dpf
cessive
•
losses
Cor¬
halanrp
chppt
I
n
,
current ratio of
Canitalization reflecting
200%
stock
dividend
paid
common.
An
additional
pany's general funds to be avail¬
able for working capital require¬
financing
including
ments,
Cas.
Aetna
&
Continental
Federal
own
^
,
Indie.
Price
Divid.
210—164
210
$2.40
Co.
Fire
F.
Assur.
_
Ins.
&
M.
1.20
59
1.00
1.7
131—101
131
1.10
0.8
19.07
207—168
203
4.40
2.1
2.90
148—115
134
Co.
Co
.
2.3
38"
1.50
4.1
29
33
1.20
3.6
^
,
stock
dividend was de,
^
.
U.
S.
34—
24
28
0.64
2.3
61—
52
53
1.30
2.5
42—
29
35
1.00
2.9
Fidelity & Guaranty Co„_'_
Cas. & Surety
Co
Western
1.38
47—
35
43
1.40
3.3
3.94
"In
of
effect
mutual
a
4
for
funds.
1
to
business
of
the
corporation
-
had
which
.
Na-
evaluation is
in¬
been
step.
reaching the public in effectively
$100 Million Issue of California
servicing its insurance needs, adsavings held by that pubBonds Offered by Nationwide Group
/Tic logically could be tapped for
predecessor
a
ditional
1937, is engaged in
manufacturing men's and boys'
work and sport shoes and boots.
It sells its products primarily to
corporated in
profits
•
u
Plans
A.
called for
Branch
America
with Bankers Trust
C°'
acting as joint manager.
Major votersi in.1958 Up to._Oct.31,
® ^
Ga
members of the
TCpPTTQH
XYUCIlali
vyU.j HIL'.
Offers State Ind.
Debentures ;
/
'cago,'and
For
J.
Keenan
&
Inc., of
Los Angeles, has offered $500,000 1
of
6%
of
subordinated
convertible
debentures
also
Co,
of
State
of
Industries,
Lbs Angeles.
awning
outstanding
shares
Net
and- school
frames,
and auditorium
certain
proceeds
debentures
be
of
sale
used
as
lows: $25,000 in the purchase
plant;
$125,000
?
has
common
indebtedness.
the
of
will
It
furniture.
2,000,000
and
equipment;
and
p___ji
•
*
the
.
the
premium of
t'rVct
cost to the state was
4.018%.
100.098. For
price was
million-veterans bonds,
the merged syndicate paid a pre-;
mjum 0f $349 for a combination
of 501
41/0% 3%% iand 4% bonds,
w
't interest cost to the state
was 4019%.
The dollar price was
u
|
$50
iqoooI
and
3ci
^
j
vioocrkind, Neufeld, Jordon
Effective Jan. 15 Goodkind, Neu& Co. will be dissolved and
$49*159
combination of 5%, 4^%,
bonds The net in- •
offered to
balance" for
,
£
a
the merged syn-
and 4%
the
Both issues were
investors to yield
to a d0iiar
maturity
1961-1985 on the
struction bonds and Oct. 1,
1
veterans bonds,
1985 on the
re-
from
price of par on the
t>on(is> according to
June
had made
nioie
tnan
con-
1961-
, -
_
--
Philip M. Neufeld, Treasurer; and
Charles R. Jordon, Vice-President
.• \.
•♦.< -r,
Digitizedand
for Secretary,
FRASER «■
increases, though the latter rep-
resent smaller percentage payouts
of earnings. Timing of commitments in this group still calls for
Stocks for Long-Term
An investor usually is
to
attracted
insurance stocks
to profit from sizable cyc¬
fluctuations
more
charac-
ing need not be pin-pointed to as
great a degree to obtain profitable
returns.
multiple line
either
lical
Our Annual
teristic of lower quality stocks or
inaugurated is to profit from longer term mvestapproximately . $1,350,075,000. The ment in the high quality stocks
amount of veterans bonds out- *with demonstrated and anticipated
standing in November, 1959 was superior growth. In general the
$990,900,000.
insurance industry can be exBank of America N. T. & S. A. pected to enjoy continued secular
and the underwriting syndicates though cyclical growth by giving
it manages, through successful due recognition to the coverage
competitive bidding, provide an 0f insurable risks as a necessary
assured source of funds for public factor in modern economic living,
projects and improvements re- Overall, above average growth is
quired by California's expanding sustained by the ever rising
economy. In 1959, Bank of Ameri- standards of living,
ca underwriting syndicates bought
por the investor inclined toward
more than $557 million of Cali- long-term investment, equities of
forma state and municipal bonds, those insurance companies known
^
'
i_
-r
for their ability to earn above
New Lavanaugh, ianner
average profits on rapidly increasPHOENIX, Ariz.—The firm name
ing new premium volume
hold the
bonds 0f Frank Charles Beck & Asso- greatest potential. This inflow of
the third of- ciates, 411 North Central, has been premium dollars supplies availfering from authorizations total- changed to Cavanaugh, Janner &*able funds which can be readily
i.-jcr
$400
million
approved by geek Inc.
invested for enhancing income,
voferg jn 1955 and in 1958. Among S
'
The policy of retaining a sizable
the major construction projects
Form Standard Sees.
percentage of earnings
The- state
which
construction
the funds were
Comparison
New York
Bank
piovides
City
Earnings
Available
Now
Laird. Bissbll & Meeds
Stock Exchange
Members
New York
Members
American Stock Exchange
120
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay
Bell
7-3500
Teletype NY 1-1248-49
Specialists irt Bank Stocks
NATIONAL.
AND GRINDLAYS'
BANK LIMITED
Amalgamating National Bank of India
and
—
26
Grindlays
^
BISHOPSGATE, LONDON, E.C.3
London
.
/
Branches
54 PARLIAMENT
13
Ltd.
Bank Ltd.
Office:
Head
...
just sold Jan. 13 were
for
effort, but the tim¬
conscientious
the program was
voted
ttq
miif
Standard
Goodkind, Neufeld, Jordon Co., are a $118 million program of the LOSI ANQELES Cam. b a
Inc.
will
be
formed .wun
with offices
V
Department
of E-uuLduvn
Education to
Co^,
nffi?
M—
loirnea
oiiices
uepanmeni 01
^ de- Secunfaes
„onlir:fipC
hndnpsc frnm offiat 400 Park
Avenue, New York velop state colleges. The authori- in a sec
,Q
t
Ronlevard
City. Officers bfvthe
ne firm,
urm, which
wnicn
zation also Provme^
provides inuic
more than
Sunset
/u£
a/'
1^.1 ces at 7805
Tames
L
Fallon
will be a
elr,:ofi
>,:of» the New
Kew $75 million for the University of 'Officers^are^James
mj^mbe
°Blc^snt.aThomaT E Dougherty
York : ■
Stock
Exc hhnge,
m
lange,
will be ".California,
.California, more than
thah $50 million
Thomas E. DoughenL
ind
Prpcidpnt:
Robert. H. Goodkind,
President; for the npnartment,
Department of
of Corrections
Corrections Executive vice-rresiaeni, sanies
feld
margins, in rising book
values, in profitable diversificatj.on, in successful investment returns, and in frequent dividend
profit
investment
153,000 home loans and more than
2,000 farm loans to veterans of
World War I, World War II and
Trust the Korean War. Of these, 48,750
-have been repaid in full.
The
state con- total amount of funds loaned since
q3a%
paint '4%
modern
Working capital.
a
bonds
naid
York.
million
$50
the
fol-
purchase and
install additional tube mill equip¬
ment; $80,000 for removal and
re-installation of present and new
to
of New
The dollar
The company's products consist
steel tubing, canvas products
and
^ate
f^
the state
Morgan Guaranty
Com nan v
ctrurtion
John
merged syndicate
included Chase Manhattan Bank,
First National City Bank of New
York First National Bank of Chi -
TlTP
Pp
OL
insUrance
growth, rather
depressed bargains
seeking
in premiums written, in sustained
v
ery
based on outlook
The accompanying selection of
j
i~u
one
and
stocks is considered representative
of those issues with strong growth
expenditure of equity investment.
underwriting
syndicate
merged $47 million in/ fiscal 1957-1958,
Getting back to 1960, the brighton Jan.
13 with a Bankers Trust $101 million in fiscal 1958-1959, er outlook for insurance stocks is
retailers located in all the States
Company syndicate to purchase and $75 million in fiscal 1959- supported by such factors as inof the Union and in Puerto Rico,
i960. A fourth sale of $50 million
creased application of higher rates,
$100,000,000 State of California
and
also
to
chain
is scheduled for later this year,
stores, mail
improvements in expense control,
state construction
bond s and
The veterans bonds sold Jan. 13
an^ stepped-up growth in investcimfoiiv^US« jobbers ari^-°cca- veterans bonds. The merged syn- were the second offering from a ment income from higher interest
?■ g°ve/fnmental agencies. d- t ; managed by Bank of $300 million issue approved by rafes ancj increased dividends.
of America N. T. & S.
3.27
for recovery prospects,
^
A Bank
6.78
split is pending.
Of course,
than
successor
1
5, 1960.
exceptionally
Once an organized and
efficient distribution force is
!
•
1.91
0.00
,
T
this
the
2.69
3.00
31
obligations, and for other corpor¬
is
8.42
-
42—
for
company
..
43—
tionwide Corp. already has taken
The
1.7
3.56
72
58
Corp
Ins.
1.1%
2.89%
55
69—
Casualty Co.
Casualty
Paul
St.
Co.
America
N.
Avge. 5 Years
11
Co.
_
Margin
Yield
72—
Co
Ins.
Fire
of
Profit
Recent
ventory, paying current debts and
ate purposes.
Characteristic of any in-
well.
novation on the horizon, negative
actions against "threats to the
status quo" are showing up to
ward off the next step, although
probably a distant one, the sale
1950-60 Bid
Employees Ins. Co.—.;
Co.
Ohio
employees
clared Dec. 15, 1959, payable Jan.
requirements.
A. P. I. enjoys an
as
-
printed circuits for its
and makes
ac¬
uev
Surety
Cas.
Insurance
Maryland
purchasing in¬
receivable,
counts
Z/,OUU SlldlCS H
finishing facilities. The company
also
does
its own dial printing
1
"•*
*
-
in
Price Range
KSSefc™::
Govt.
standing
'"VM"
,
.
board
Underwriting
Merchants
AAA
the
High Quality Insurance Stocks With Superior Growth Records
"Hartford
30,000 shares of common stock
will initially be added to the com-
across
written
and by such occurrences in the
same year.
Managements now are
attempting to meet the uncovered
inadequacies of formerly accepted
Ins.
its
the
In many cases relief
the many lines of coverage
giving'a
o 6-to-l
operates
operations-
& Surety Co. remain outside the
life insurance, field. Great Ameri-
of new
insur-
face
invading
market.
ance
the
in
competition
against $323,635 in current lia-
the
Also important
ventory. control.
policy
Long established mer-
inadequate
tion.
Thp
facilitates close in-
and
product,
effect
to
chandising policies have appeared
i
analysis by region and bilities,
sales
industry.
poration.
/Westinghouse Electric Corpora¬
provides management with month-
ly
moved
which showed current assets at $830,002
system
accountinS
1BM
Business^Machines
Tung Sol Electric Co.
Union
Carbide
Nuclear
derived from a traditional emphasis on the use bf the most
modern and advanced production
equipment and methods. A typical
example is the use of a complete
accounts of
40,000 shares for the
products
Also important are the economies
for
are being sold
of the company
shares
30,000
the
ottered,
shares
70,000
the
concen¬
a
proprietary
on
been
insurance
companies
tabulated,
only Maryland Casualty Co., Merchants Fire Assurance Corp. of
New York, Ohio Casualty Insur-'
ance Co., and Western Casualty
underway,
can Insurance Co. has begun 1960
with the announcement it has organized a new wholly owned subof America."
through increased rates has -been sidiary, Great American Life InRaytheon Manufacturing Co.
slow
and
inadequate; regulation surance Co.
Sandia Corporation.
by existing State procedures has
The trend toward greater diverStromberg Carlson.
come
under investigation.
sification for profitable growth
Texas Instrument.
The industry was shaken by ex- may develop further in other lines
Thompson-Ramo-Wooldridge,
resulting from the company's own
research and development efforts.
stock.
Of
accruing from
tration
is
managements
company
adjustments during this prblonged
loss cycle which has plagued the
Motorola, Inc.
Radio Corporation
available for less than $200.
benefits
companies
casualty
experience
poor
have
Corporation.
Industries.
Litton
relay points
profit margins largely reflects the
Offers Ga. Shoe
of
Corporation.
Maintenance of consistently high
J ohnsonLaneSpace
and
Insurance
Aircraft Company
Hughes
International
price
fire
for
Douglas Aircraft.
General Electric Company.
General Motors
diversification.
This
realization
has accelerated the trend toward
entrance into the more reliable
life underwriting fields in order
to develop "all line" operations,
Among the leading multiple line
on
from the several consecutive years
■
^
^
far
underwriting results continue
support the generally accepted
viewpoint that a gradual recovery
Aviation
Burroughs Corporation.
thus
reports
Insurance Stocks
—
to
n ~Corporation.
Bendix
of $90 and less, and custom
designed instruments providing as
many as
1959
y'Aerojet
rnnc,pal
customers include,
General Corp.
tags
: y.\'.J •''
C
:
contacting points,
Incomplete
princjpai customers include-
try
country. We must be
thankful that our people are will\M to make the sacrifices necessary
to assure the military
our
the
BY LEO I. BURR1NGTON
building block com¬
ponents for more complex control
or
iustification lor any inIthe basic justification for any inpstment in
I vestment
in. such
such, a potentially
«
jal
products
for
of
its
proprietary
both direct controls
systems. The company's customer
not6 forget" however,'
hmild
adaptability
33
BANK AND INSURANCE
creasing emphasis, on automation"
throughout all industry and the
related these to a num-
we've
a
Security
I Like Best
'inces that seem likely to be at
fnvk in the stock market in 1960,
r
broad sales base reflecting the in¬
The
number of
a
(185)
The Commercial and Financial Chronicle
.
management , strength
new
,„,l
,
aid
Number 5916
191
Volume
STREET, S.W.I
ST. JAMES'S SQUARE,
S.W.I
James's Sq.; Govt.
Rd, Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54 Parliament St. &
Trustee Depts.:
13 St.
potential for growth.
Largely responsible for favorSt. James's Sq.
able appreuauuii
appreciation pciAuiiiiaiivra
performances of
aDie
« ADEN, KENYA,
insurance stocks is this cumula- Bankers to the Government in:SOMALILAND
PROTECTORATE
owth eiiecx
effect 0f
earnings re- : Uganda, Zanzibar s
tive growtn
01 ean
13
tained to ensure stability and fuvtaihed-.to.
P g h the
expansion. Altho]
mov
ann<
Branches
INDIA,
PAKISTAN, CEYLON,
BURMA, KENYA,
ZANZIBAR, UGANDA, ;
SOMALILAND PROTECTORATE,
TANGANYIKA,
ADEN,
NORTHERN
AND
SOUTHERN RHODESIA
34
The Commercial and Financial Chronicle
(186)
.
.
Thursday, January 14, I960
.
★ INDICATES
Now
Securities
filed
29
ferred
notes and
Stores Corp.
Bros.
Aaronson
Dec
shares of 70 cent cumulative pre¬
40,000
Bass
equip and stock additional
may be opened in the future.
Office—526
East Overland Avenue, El Paso, Texas. Underwriters—
Eppler, Guerin & Turner, Inc., Dallas, Texas, and Harold
S. Stewart & Co., El Paso, Texas.
primarily
to
be
Co., Inc.
Aug. 12 (letter of notification) 62.500 shares of common
stock (no par).
Price—$2.70 per share. Proceeds—To
prepare estimates and to submit bids, as prime con¬
tractor on specialized construction projects.
Office—123
Denick
to
Youngstown, Ohio.
Underwriter —
Securities, Inc., 605 Park Building, Pitts¬
burgh 22, Pa. This offering is expected to be refiled.
Avenue,
Strathmore
ceeds—For
for
research
com¬
Stone stock..-- /v'/
Pro¬
Dec. 18 filed 316,667
subscribed
•
16,667
Finance
Dec. 22 filed
Co.
(1/26)
(par $1), of which 75,000 shares of the
of the
suing
the
offering is to be made
Prices—For
company.
the
on
behalf of the
debentures,
at
is¬
100%
stock.
common
Price—$115.50
•
per
Proceeds—For expenses in the
development
Office—840 First National Bank Build¬
Underwriter—None.
&
Texas.
share.
on
a
"best efforts"
Arkansas sales
and
15
of
cents
sales.
12
per
share
__CQtiity capital
concerns.
used
and
long-term
Office—Washington,
members who
Expected
m
execute,
a
loans
to
small
agreement.
.
System
OOO^nf 7le<V48?'000 shares
ofLL
m
S} mortgage
units
of common stock
notes, due Dec. J, 1969, to be
consisting of $100 principal amount of
V
Contracts.
for
the
or
the
E.
Kar-Go Trailer Rental
Hawthorne
The
operation of fleets of autoin the U-Haul
Trailer Rental
System.
Boulevard,
in
Office
Ore.
SEC
invest¬
stocks.
common
Office—301
Automatic Retailers
_
W.
11th
Street
Underwriter—Jones Plans, Inc.,
sidiary of R, B. Jones &
Sons, Inc.
of
a sub¬
_
America, Inc.
^JUPP^uyu?endment
to
loan, with the balance
trL«qU1 w£?;
r£,<S;
.
Mo
7
$2,000,000 of 6% convertible
subordinated
30, 1971 and 130,000 shares of
ment.
com
(par $1). Price—To
Proceeds
be
For
supplied by
amend¬
additional
manufacturing equip
ment, acquisition of property and retirement
of a $500bank loan. Business—In
addition to its
aluminum
operations the company fabricates
magnesium, stainless
steel and titanium. As a
leading subcontractor it serves
the major missile, rocket and
aircraft companies
—
000
-/
its missile container division.
&
Co., New York.
:
-
Underwriter—S.
through
D
Fuller
7
'
;
;
'
Big "C" Stores, Inc. * /''""'/
/ -;7 :•'-•/'fDec. 23 filed 250,000 shares of
common
stock, of which
125,000 shares are to be offered for the
company's ac¬
count and the
remaining 125,000 will be sold for the ac¬
count of certain selling
stockholders. Price—To be
sup¬
plied by amendment. Proceeds—For
repayment of cer¬
tain outstanding
notes; for payment: of fixtures and
equipment for new supermarkets; and the balance
?
for
general corporate purposes.
Ave., Portland, Ore.
First
Office
1845
—
S.
Underwriters—J. Barth
California
Co.
Inc.
both
of
&
San
Calif.; and Hill Darlington & Co., New York.
•
Boothe
Leasing Corp. •
40,296 shares of
E.
Co., and
Francisco,
,
;-:7'-; "■..''/•••• 7stock
common
Third
7'4
(i^o r(ar) be¬
ing offered to holders of outstanding
commonystock on
basis of one new share for each
eight shares held of
record Jan. 12; rights expire Jan.
29, Price — $24 per
share.
Proceeds—For
general
cluding the acquisition
the
company
Office
—
intends
corporate purposes, in¬
additional equipment which
of
to
lease
to
various
businesses.
315
Montgomery Street, San Francisco, Calif.
& Co., New York
City, and
Co., San Francisco.
Underwriters—Wertheim
J.
Barth &
Border Steel Rolling
Mills, Inc.
Sept. 14 filed $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50
par), to be offered in
units of $50 principal amount of debentures
and five
shares
of
common
amendment.
construction
stock.
Price
To be supplied by
purchase of land and
and for the manufacture and in¬
Proceeds—For
thereon,
—
the
of
necessary equipment.
Office—1609 Texas
Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El
Paso,
Texas.
7 /
.•
Border
Steel
Rolling Mills,
Inc.
Sept. 14 filed 226,380 shares of common
stock, to be of¬
fered for
subscription to stockholders of record Aug. 31,
1959, on the basis of 49 new shares for each share then
held. Price—To be
supplied by amendment.
For
general
corporate
purposes.
Proceeds—
Office —1609
Texas
Street, El Paso, Texas.. Underwriter—None.
Bowmar Instrument
Corp.
28 filed 27,000
shares of common stock.
These
shares are to be offered to holders of
outstanding stock
Dec.
purchase warrants, which are attached to notes issued in
January, 1959 and are exercisable at $2.50 per share.
Office—8000 Bluffton Road, Fort
Wayne, Ind.
Burch Oil Co.
Cruttenden,
^
general
~
'
Pro<*ed»
-
funds
ci & Co., New
\CLi!etot?r
0f ?otifiP}ion)
(par 25 cents).
4$
for
per
Office-1404
To
bank
expansion
York
Under-
City,
share.
and
Main
"
Securities
Co., Inc., Old Town
Building, Baltimore 2, Md.
ir Burke Concrete Accessories, Inc.
31 (letter of
notification) 2,000 shares of class B
stock, not to exceed $50,000, to be offered to
employees pursuant to Employees' Stock Purchase Plan.
Proceeds
For working capital.
Address — c/o Mr.
Dec.
common
—
George O. Gaetke, President, 255 Santa Clara Avenue,
San
Francisco, Calif. Underwriter—None. 7
California Metals Corp.
July 27 filed 2,500,000 shares of
common
stock.
Price—
At par (20 cents
per
of a pilot
share). Proceeds—For construction
plant; for measuring ore; for assaying; and for
general corporate purposes. Office—3955
South State St.,
Salt Lake
City, Utah.- Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.
California Mutual
Co-Ply, Inc.
/
of voting common stock. Price
—At par ($5,000
per share). Proceeds—To purchase the
mill and related facilities
of Durable Plywood Co. for
$690,000, with the balance
tal.
to
Office—Calpella, Calif.
be used for
working capi¬
Underwriter—The offering
is to be made
by Ramond Benjamin Robb'ins, one of the
nine
promoters, the list of which also includes Harry
★ California
of
common
Proceeds—
Street, Houston
Underwriter—Daggett Securities, Inc., Newark,
Tr
Bank
Ernest Holt, of
Eureka, Calif., President of the company.
300,000 shares
Price—$1
working capital.
2, Texas.
pay
L°s Angeles, Calif.
Podesta & Co., of
Chicago,
Bankers Management
Corp.
For
To
common
Septal 4 filed 140 shares
(1/26)
Dec. 15 filed
120,000 shares of common stock.
Price
stock
$1,200,-
S.
ment
share.
and
.
provide
Kansas City, Mo.
c r
per
'
Associations Investment Fund
Aug. 28 filed 400,000 shares of
common stock.
Price—
To be supplied
by amendment. Proceeds—For
.
American Gypsum Co.
of
Portland,
clearance is expected about
March 1.
on
Price—$8
T T°Cee{iSA
TcL increase capital and surplusv
i?1?
Ave'»
MemPhis,
Tenn.
Underwriter—
Union Securities
Investment Co., also of
Memphis, which
will receive a
selling commission of $1.20
Offering-
77'- • 7.
'
;7;7'
$6,000,000 of UrHaul Fleet Owner Contracts
$3,000,000 of Kar-Go Fleet Owner
4707
re¬
Offering—
January.
Arcoa, Inc.
contracts
provide
business
American Frontier Life
Insurance Co.
Nov. 30 filed
200,<X)0 shares of capital stock.
York, N. Y.
mobile-type rental trailers
D. C. Underwriter—NASD
selling
Underwriter
purposes.
oil
and
(par $8).
to
general corporate
& Co., Inc., New
warehouse, opening
Underwriter—Maryland
•
Allied Small Business Investment
Corp.
bept. 29 filed 100,000 shares
of common stock
Price—$11 per share. Proceeds—To
be
First In¬
Dec. 28 filed
out-of-state
on
—
common
Proceeds-!!
to be offered in
Mr.
share
per
Offering-p-Expected in January..
Life
common stock
(par $1)
exchange for undivided interests in
gas
leaseholds located in certain
counties in Okla¬
homa. Price—$10
per share. Office—523
Marquette Ave.
Minneapolis, Minn. Underwriter—None.
owner
basis, and will
cents
Service
in
Manufacturing Co., Kansas City.
stock
stallation
7'*/'7'7/
development. Of¬
Street, New York City. Underwriter—
Apache Properties, Inc.
20 filed 500,000 shares
Price—$1
80,000 presently
outstanding shares.
selling commission
E. 53rd
Nov.
Office—115
a
/*-"';
offices
and
of
cor¬
Louisiana Street, Little Rock
Underwriter—The offering is to be made
by John
Hedde, President of the issuing
ceive
Co.
and
Sept. 25 (letter of notification) 120,000 shares of class A
stock (par five cents).
Price—$2.50 per share.
Proceeds—For building and
equipping stations and truck
stop and additional working capital. Office—C/o Gar¬
land D. Burch, at 707 Grattan
Road, Martinsville, Va.
of
Ark.
Hedde will work
Land
—Ross, Lyon
Expected in January.
and
Underwriter
company and
on Sept. 2, which will i
stop order will be issued suspend¬
No decision has been announced.
a
14
expansion and
Proceeds—For
of 10,000 of its
hearing, to begin
Sept. 9 (letter of notification) 150,000 shares of
common
stock (par one
cent). Price—$2 per share. Proceeds—For
working capital to be used in
the purchase of oil and
gas properties and related
forms
of investment.
L.
a
—
Allied Producers
Corp.
per
($1
Street, Oklahoma City, Okla. Underwriter
vestment Planning
Co., Washington, D. C.
Anodyne, Inc., Bayside, L. I., N. Y.
Co., Inc., Dallas.
Dec. 3 filed 1,000,000 shares of
common stock.
common
Insurance Co.
Sept. 14 filed 300,000 shares of common stock
(par 40b).
Price—$3.50 per share. Proceeds—For
general corporate
purposes, including, possibly, the
acquisition of simi¬
larly engaged companies. Office
113 Northeast 23rd
Washington,
Office—Arlington,
Investors
shares of
American
Higginson Corp., both of New
general
to
Hemphill, Noyes & Co.
$5,500,000 of convertible subordinated
debentures, due Feb. 1, 1975. Price—To be
supplied by
amendment. Proceeds—To
buy planes and engines, re¬
duce indebtedness, and add to
working capital. OfficeWashington National Airport,
Washington, D. C. Under¬
writers—Auchincloss, Parker & Redpath of
—Rauscher, Pierce
3
fice—49
filed
300,000 shares of capital stock, to be offered
in units
$75 principal amount of
debentures and 30 shares
stock. Price—$108
per unit. Proceeds—For
(par 25 cents).
advances
filed 300,000 shares of class A
preference stock
($15 par) and 300,000 shares of common
stock, to be of¬
fered in units of one share of
preference and one share
of common. Price—To be
supplied by amendment. Pro¬
ceeds—For property acquisition and
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
Allegheny Airlines, Inc.
porate purposes.
stock
American
general corporate purposes. Office—229 S. State
Street, Dover, Del. Underwriter—Aviation Investors of
Bowling Centers, Inc.
$750,000 of sinking fund debentures
4
Dec.
—For
Allied
di¬
agency
an
ISSUE
debentures due Nov.
mon
Dec. 2 filed
ing the offering.
Aircraft Dynamics International
Corp. (1/15)
Sept. 25 (letter of notification) 100,000 shares of com¬
mon stock (par 10
cents). Price—$3 per share. Proceeds
Dec. 29 filed
granted
and
issuance
Founders, Inc.
(letter of notification) 300,000 shares of class A
determine whether
Whitaker,
Zappa & Co., Inc., New York.
Offering—Expected
January.
and Allen & Co. and Lee
York City.
option
an
Co.,
for
reserved
store
25 filed
if American Insurance
had scheduled
J.
31
Life Insurance
are
each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
national Trade Mart, New
Orleans, La. Underwriter—
Lindsay Securities Corp., New Orleans, La. The SEC
Alaska
Dec.
A
REVISED
(1/18)
Nov.
The
of
ther development and exploration of the oil
and gas po¬
tential of the company's Alaska
properties. Office—80
Wall Street, New York.
Underwriter—C. B.
in
class
Syndicate, Inc.
June 25 filed 600,000 shares of common stock
(par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting
Consolidated Oil Co., Inc.
Sept. 17 filed 3,000,000 shares of common stock
(par
five cents).
Price—$2.50 per share. Proceeds—For fur¬
A.
Foundation
Price—$4.50 per share (for the 250,000 shares to
American
of oil properties.
ing, Phoenix/ Ariz.
-
which 50,000 shares of
of the class B have been
(50,000)
the
of
C°.
ITEMS
working capital. Office—31-37
Fayette
Street, Martinsville, Va. Underwriters—Frank P
Hunt &
Co., Inc., Rochester, N. Y., and First City
Securities Inc
New York, N. Y.
77v''•* <
'
*'
Benson
''77/S7/ 7'777'
7',
Insurance
Price—$1 per share. Pro¬
salesmen; to repay a loan and
for working capital. Office—619 Warner
Building, Wash¬
ington 4, D. C. Underwriter—None.
it Aetna Oil Development Co., Inc.
Dec. 31 (letter of notification)
$245,000 of 4J/2% fiveyear debentures (par $100 each) redeemable in cash or
of
■,»
com¬
of
common,
all
to| by
ceeds—For
—
shares
Life
PREVIOUS
store and for
new
common
shares of class A common and o0,000
the exercise of
common
Office—Clayton, Mo. Underwriters
Scherck, Richter
Co., and Dempsey-Tegeler & Co., both of St. Louis, Mo.
100
remodel
publicly offered). Proceeds—For capital and surplus
the
13-month-old company. Office—Title & Trust
Bldg., Phoenix, Arizona. Underwriter—None.
Jan.
porate purposes, including the reduction of indebtedness.
for
issuer's
of
plus accrued interest from Feb. 1, 1960; for the stock, to
be supplied by amendment.
Proceeds—For general cor¬
debenture.
the
be
be
common are to
selling stockholder and the
a
B
and
A
shares
rector.
stock
common
class
of
class
upon
$5,000,000 convertible subordinated deben¬
offered for the account of
rest
shares
.
tures, due Feb. 1,1975, and 200,000 shares of
of
7//77 7'7:'77;
Industries
American
development, advertising and
Office—13215 Leadwell Street, N.
Hollywood, Calif.
Underwriters — Amos Treat & Co.,
Inc., New ,York and Arthur B. Hogan, Inc., Los Angeles,
Calif. Offering—Expeqted in January.
Aetna
To
portion or all thereof may be re-offered for public sale
by persons who receive same in exchange for Arnar-
and
working capital.
the market value of the
upon
Registration
common.
shares is being effected in view of the possibility that a
Accurate
Electronics, Inc.
Dec. 16 (letter of notification)
150,000 shares of
mon stock
(par 25 cents). Price—$1.50 per share.
formula based
a
pany's
ADDITIONS
SINCE
Bargain Centers, Inc.
(letter of notification) 120,000 shares
of
stock (par $10 cents).
Price—$2.50 per share.
&
Hospital Supply Corp.
Dec. 23 filed 53,000 shares of its common stock.
The
company proposes to acquire all the outstanding 1,415
common shares of
Arnar-Stone Laboratories, Inc., (of
ML Prospect, 111.) in exchange for 49,525 shares of its
common stock, and to acquire not lbss than 80% of the
6% cumulative preferred stock ($100 par) of ArnarStone, 1,029 shares of which are outstanding, pursuant
.
•
Dec. 2
American
Abbott-Warner
.■
stock will
common
on
Co., Nashville, Tenn., and Quinn & Co., Albu¬
querque. Offering—Expected at end of January, 1960.
open,
that
stores
40 shares of stock. The
and after July 1, 1960
unless an earlier date is fixed by the Board of Directors
of the company.
Price—$300 per unit. Proceeds—For
general corporate purposes, including construction equip¬
ment, and working capital.
Office—323 Third Street,
S. W., Albuquerque, N. Mex.
Underwriters—Jack M.
and stocking three new stores in El Paso, San Luis,
Ariz., and San Diego, Calif.
The balance of the proceeds will be added to the company's general funds and
used
Registration
separately transferable bnly
(par $2.50).
Price —To be supplied by
Proceeds—To pay for opening, equipping
stock
amendment.
in
*
*****
.
Jan.
8
Water & Telephone Co.
filed 210,000 shares of
*
stock, of which
200,000 shares are to be offered to the
public and 10,000
shares are to be offered to
employees of the issuer. Price
—To be
supplied by amendment. Proceeds—To be ap¬
plied to 1960 construction
expenditures, which are esticommon
'■*
X
Number
191
Volume
5916
.
.
The Commercial and Financial Chronicle
.
-*V
Office—300 Montgomery Street,
Underwriter—Blyth & Co., Inc.,
Building, San Francisco 4, and New York City.
at
mated
$13,387,000.
Francisco, Calif.
S',n
russ
Ltd.
300,000 shares of capital stock. PriceTo be supplied by amendment. Proceeds—For explora¬
tion and development of mining claims. Office—Toronto,
Canada. Underwriters—Pearson, Murphy & Co., Inc.,
and Emanuel, Deetjen & Co., both of New York City,
on a "best
efforts" basis.
Mines
Gan-Fet*
22 filed
Dec
(1/15)
200,000 shares of common capital stock.
Price—$4 per share. Proceeds—For general corporate
purposes including debt reduction, drilling and work¬
Cardinal Petroleum Co.
30 filed
N0v.
Office—420 No. 4th St., Bismarck, North
capital.
ing
Underwriter—J. M. Dain & Co., Inc., Minne¬
Dakota.
apolis, Minn.
•
'
Natural Gas Corp.
120,000 shares or common stock. Price—To
be supplied " by
amendment. > Proceeds-*—For- debt re-*
duction, construction, and working capital. Office—256
First Avenue N. W., Hickory, N. C. Underwriters —
Cruttenden, Podesta & Co., Chicago, and Odess-Martin,
Inc., Birmingham, Ala.
Carolina
30 filed
Dec.
•
(letter of notification) 100,008
Nov. 30
shares of common
10 cents). Price—$1 per share. Proceeds—For
stock (par
general corporate purposes. Office—River & Wood Sts.,
Butler, N. J. Underwriter—R. A. Holman & Co., Inc.,
Offering—Expected in February.
N. Y.
New York,
$3,000,000 of
debentures, due Jan. 15, 1975.
filed
11
Dec.
Price—To be supplied by
Proceeds—For construction expenses of the
Office—144 So. 12th Street.
Lincoln, Nebr. Underwriters — Paine, Webber, Jackson
& Curtis and Stone & Webster Securities Corp., both of
amendment.
its subsidiaries.
issuer and
cents
33
of
share.
a
Combined
Electronics, Inc.
800,000 shares of common stock (par $1)
Price—$2.50 per share. Proceeds—For general corporate
purposes, inclding expansion, new product development,
and working capital. Office—135 S. La Salle Street, Chi¬
cago,
111.
Underwriter—David Johnson. & Associates.
Inc., Indianapolis, Ind., on a "best efforts" basis.
;
Oct.
30 filed
•
Commerce
Drug Co.
Nov. 30 filed
90,000 shares of common stock. 'Price—$6.50
Proceeds—To selling stockholders. .Office—
per
share.
505
Court St.,
Sloss &
Brooklyn, N. Y. : Underwriter — Marron.
Offering—Expected in January.
Co., Inc.
Oil
Commerce
Refining
City.
refinery. Underwriter—Lehman Brothers,
Offering—Indefinite.
*
York.
•
New
:
Metals Co.
Commercial
(1/25-29)
stock
class A common
shares of
250,000
filed
9
Price—To be supplied by amendment. Pro¬
ceeds—To be invested in income-producing securities.
Office—33 Maiden Lane, New York City. UnderwriterLee Higginson Corp.
'
(par $2).
to the
to the
price at which the debentures are convertible into com¬
mon
stock; for the shares to be offered to the under¬
writer, $1 per shard; for the shares to be offered to the
public, the price will be related to the current price of
licly offered. Price—For the shares to be offered
debenture holders, 75c per share, which is equal
Engines Corp.
shares of common stock.
Price—
To be supplied by amendment.
Proceeds —To reduce
indebtedness.
Office—250 Park Ave., New York City.
it Clinton
11
filed 350,000
Underwriters
and H.
City,
& Co., New York
Bear, Stearns
—
Byllesby & Co., Inc., Chicago.
M.
Chemical
Coastal
Dec. 7 filed
Corp.
and 70,000
of which 50,000 class C shares
111,729 shares of class A common
shares of class Q common,
are to be offered for the account of Miss.
Chemical Corp.,
selling stockholder, with the remainder of the offering
to be sold for the account of the issuing company.
Price
—•For
stock:
$30 per share; for the class C
Proceeds—For working capital,
class A stock:
the
$25
per
at
porate
shares
on
Note
purposes.
—
This
Consolidated
as
scheduled fbr Jan. 25. Office—Miami
Underwriter
Beach, Fla.
—
H. Kook & Co., Inc.; New
York.
Consolidated
Development Corp.,
share.
shares of outstanding common stock
Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders. Office—512 South Akard
St., Dallas, Tex. Underwriter—Eppler, Guerin & Turner,
Inc. Offering—Expected any day.
V
Nov. 25 filed 100,000
24 filed
and President of the
company
underwriting corporation.
Cpar $5),
★ Consolidated Water Co.
30 (letter of notification)
Dec.
24,900 shares of class A
$10). Price—$12 per share. Pro¬
pay
in part bank loans.
Office — 327 S.
Salle Street, Chicago, 111. Underwriters—Milwaukee
stock
common
.
^Community Investment Corp.
Dec. 30
(letter of notification) $295,000 of debentures
8% series, due 1974 to be offered in denominations of
La
(par
Co., Milwaukee, Wis. and
Corp., Indianapolis, Ind.
$500 each. Price—At face amount. Proceeds—For loans
to its subsidiaries and for working capital.
Office—31
Consultants
Dec. 29 filed
Underwriter—None.
Hampshire Street, Lawrence, Mass.
Computer Usage Co., Inc.
(letter of notification) 47,000
Corp., Albany, N. Y.
First Albany
7 filed
$25,000,000 of first and
Enterprises,
refunding mortgage
1, 1990. Underwriters—Mor¬
gan Stanley & Co.; Putnam & Co.; Chas. W. Scranton &
Co.; and Estabrook & Co. (jointly).
bonds, series P, due Feb.
Aetna
,
Aircraft Dynamics
(Aviation
America, Inc.)
of
$300,000
Inc.)
& Co.,
Corp.
outstanding
resenting
stock,
by
:
Automatic Retailers of America, Inc
(White, Weld & Co. and Cruttenden, Podesta
West Florida Natural Gas Co.—
Debentures
Weld & Co. & Pierce, Carrison, Wulbern, Inc.) $837,200
(Bids
Common
Benson Manufacturing Co.
&
Fuller
D.
130,000 shares
Co.)
Debentures
Manufacturing Co.———
$25,000 to acquire and equip additional needed
for the company's operations; and the balance to
acquire additional machinery and equipment for cold-
space
type composition.
Office — 227-239 West 17th
N. Y. Underwriter—William David & Co., Inc.,
(S.
$2,000,000
Co.)
Fuller &
D.
(par 30 cents). Price—$1 per share. Proceeds—To
in the common stock of its proposed subsidiary,
Continental Reserve Life Insurance Co. Office—914-916
stock
invest
Bldg., Salt Lake City, Utah. Underwriter—Co¬
Kearns
Control
(Paine, Webber, Jackson & Curtis and Stone
Webster Securities Corp.) $3,000,000
Integrand Corp.
(DiRoma, Alexik & Co.)
Kansas tias & Electric Co
(Bids
Louisiana
be
lo
(Bids
Southeastern Factors
(Interstate
to
.Common
shares
—Bonds
Debentures
Corp.;
Trust
to
y
Pacific
poses,
McCarley & Co.
$500,000
and
February 24
(Wednesday)
Light Co
Duquesne
(Bids
17
March
11
EST)
a.m.
Cornbelt Insurance Co.,
$20,000,000
Debentures
to
be
$4,000,000
invited)
1—-Bonds
—Common
Inc
(Binder & Co.)
$295,000
Blauner &
D.
January 25
Blauner
shares
Debentures
&
Co., Inc.)
Southern
Electric Generating Co
July 7
(Mldtown Securities Corp.) $300,000
General Acceptance Corp.————
Debentures
(Paine, Webber, Jackson & Curtis and Eastman Dillon,
„
Co.)
$25,000,000
Micronaire Electro Medical Products Corp.—
(General
Investing
Corp.)
Coin.
200,000 shades
Micronaire Electro Medical Products Corp
(General Investing Corp.) 50,000 warrants
Wts.
Bonds
Gulf Power
—^—Preferred
be invited)
$50,000,000
November 3
to
be
Sept. 29 filed 100,000 shares of common stock, to be of¬
fered to stockholders of record Sept. 15 on the basis of
one
share for each share then held.
Price—$4.50 per
invited)
$5,000,000
(Thursday)
Bonds
Georgia Power Co.—'
(Bids to be invited)
$12,000,000
stated capital and
Galena Avenue, Free-
Proceeds—To be credited to
Corrosion Control Co., Inc.
capital
Proceeds—
For general corporate purposes.
Office — 33 W. 42nd
Street, New York, N. Y. Underwriter—Charles Plohn &
Co., New York, N. Y. Offering—Expected in January.
Dec.
Co.———————————Bonds
(Bids
_
-
paid-in surplus. Office—12 North
port, 111. Underwriter—None.
(Thursday)
(Bids to
29
Cornbelt Life Co.
share.
$40,000,000
Gulf Power Co..
t
&
r
Bonds
invited),,.$19,500,000
(Bids to be invited)
(Monday)
Securities
be
(Thursday)
June 2
$500,000
Citizens Casualty Co. of New York——Common
(Lee Higginson Corp.) 250,000 shares
Florida West Coast Corp
Common
Union
to
—
~
..Common
Co., Inc.) 25,000
Tenney Engineering, Inc
.1™
(Thursday)
Power Co
(Bids
January' 22 ~ (Friday) ——•
Tenney Engineering Co., Inc
(Milton D.
April 17
Alabama
Freeport, III.
filed 200,000 shares of common stock to be
offered for
subscription by common stockholders of
record Sept. 15, 1959, at the rate of four new shares
for each 10 shares then held. Unsubscribed shares may
be offered publicly.
Price—$4 per share. Proceeds—
To
increase capital and surplus.
Underwriter—None,
but brokers and dealers who join in the distribution will
receive commission of 40 cents per share,
Sept.
(Thursday)
Power Co
Mississippi
Co.)
including future redemptions of outstanding secu¬
property additions and improvements. Office
Hill, Ithaca, N. Y. Underwriter—None.
rities and
$50,000,000
invited)
(Wednesday)
Centers,
(Milton
be
—Terrace
(Bids
^January 20
/
—-——Bonds
invited)
Corp
Securities
Citizens
be
present or prospective members of the Co¬
operative. Prices—For the debentures, 300% of principal
amount; for the preferred, $100 per share; for the com¬
mon, $5 per share. Proceeds—For general corporate pur¬
fered only to
$165,000
$340,000
-
200,000
invited)
Service Co
Gas
(Bids
.Common
_
(2/10)
stock (par $3).
$80,000 of bank loans;
filed 165,000 shares of common
23
Cooperative Grange League Federation
Exchange, Inc.
Dec.4 filed $250,000 of 4% subordinated debentures, 10,000 shares of 4% cumulative preferred stock, and 200,000
shares of common stock. The common shares may be of¬
...——.Common
Co.—*
Power
Colo.
of New York.
David Finkle & Co.
Feuer)
(Thursday)
February 18
Duke
Inc.
including the organization of sales offices on the West
Coast and in the Chicago areas; and $50,000 to further
development of delay lines, filters and microwave de¬
vices.
The balance of the proceeds will be added to
working capital. Office — 10 Stepar Place, Huntington
Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose & Feuer, all
&
(Tuesday)
19
Rose &
and Gartman,
Electronics Co.,
$50,000 to replace working capital expended for equip¬
ment and machinery; $50,000 to increase sales efforts,
Bonds
1.
Inc
Co., Inc.;
Blauner &
D.
(Milton
.....Debentures
Central Electric & Gas Co
Co.,
Electronics
Street,
N. Y.
(letter of notification) 300,000 shares of common
Nov. 13
(Wednesday)
February 10
Control
holders
books;
$30,000,000
invited)
be
to
Common
<fc Co.)
Debentures
Edison Co
California
Southern
present
$30,000,000
(First Boston Corp.)
(Monday)
Co.)
shares
Corp
Montreal Metropolitan
125,000 shares
(White,
18
...Debentures
and Dempsey-Tegeler &
$5,000,000
120,000
the
Price—$3 per share. Proceeds—$100,000 to be
allocated to translating and publishing additional new
thereof.
.
________
Co.
Co.)
shares
.Common
_
Co.)
&
Stearns
(Bear.
Co
Richter
(Scherck,
$800,000
(B. M.) Harrison Electrosonics, Inc.—;
Common
(G. Everett Parks & Co., Inc.) $399,000
TelePrompter
Aetna Finance
Common
Co.—
Dain
M.
and Dempsey-Tegeler &
Co.
Richter
(Scherck,
stock, of
104,000 are to be offered for public sale for the
account of the issuing company and 43,000 shares, rep¬
Price—At pan Proceeds—To repay
Common
Co
200,000
International Corp.—-Common
Investors
Petroleum
(S.
(Tuesday)
(Friday)
January IS
(J.
Finance
Inc.
147,000 shares of class A common
Continental Reserve Co.
Power Co.
Connecticut Light &
Jan.
Bureau
Indianapolis Bond & Share
which
•
shares of common
stock (par 25 cents). Price—$5 per share. Proceeds—For
general corporate purposes. Office—100 W. 10th Street,
Wilmington, Del.
Underwriters — Marron, Sloss & Co.,
Inc. (handling the books), and Roosevelt & Gourd, New
York, N. Y.; L. B. Schwinn & Co., Cleveland, Ohio; Don¬
aldson, Luskin & Jenrette, Inc., New York, N. Y. and
Dec. 29
January 26
CALENDAR
ISSUE
NEW
January
Pompano
Beach, Fla.
.
/
140,000 shares of common stock (par $1)
Price—$5 per share. Proceeds—To pay outstanding notes
and for working capital. Underwriter—Consolidated Se¬
curities Corp., of Pompano Beach. Fla., on a best efforts
basis. Note—Nick P. Christos is a director of the issuing
•
Nov.
Dec.
Benson
formerly
Cuban
corporation
Delaware
a
challenging the registration statement, and the corpora¬
tion told this newspaper they planned to re-register.
•
January
was
company
Petroleum Corp., which
with Havana offices. Its
charter was amended last June, .changing the corporate
name
and sanctioning its entry into real estate opera¬
tions. The SEC announced a "stop order" on Dec. 10,
known
lumbine Securities Corp., Denver,
Cardinal
^
the American Stock Exchange
the time of the offering. Proceeds—For general cor¬
the outstanding
^
Jan.
the
and
holders
not subscribed for by the debenture
underwriter, respectively, to be pub-
above
described
ceeds— To
Casualty Co. of New York
Citizens
Nov.
(par 20c),
holders of
the issuing company's 6% convertible debentures, and
100,000 shares are to be offered to the underwriter, with
the remaining 150,000 shares, in addition to those shares
An SEC hearing is
Corp
16, 1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock
Price—To be supplied by amendment.
Proceeds — To
.
New York
Consolidated Development Corp. ;
Aug. 28 filed 448,000 shares of common stock
of which 1198,000 shares are to be offered to
was
construct
(1/18-22)
convertible subordinated-
Gas Co.
&
Electric
Central
commission
• Colorado Interstate Gas Co.
Jan. 6 filed $1,250,000 of contributions by participating
employees under its Thrift Plan, together with 28,090
shares of common stock which might be acquired pursu¬
ant thereto.
Office—-Colorado Springs, Colo.
Dec.
Pools Corp.
Cascade
construction, and repayment of loans. 'Office—Yazoo
Oity, Miss.
Underwriter—The offering is to be made
through Coastal employees with Miss. Chemical under¬
writing on a "best efforts" basis, receiving a selling
stock
11
(letter of notification)
(par 25 cents).
60,000 shares of
Price—$5 per share.
Continued on
page
36
36i
(188)
The'Commercial and
Continued from page 35
thruways, parkways and highways in the amount of $25
of such
Life
Craftsman
Insurance
25
18
(letter of notification) 8.000 shares of capital
(par $10) to be offered for subscription by stock¬
of record with the right to purchase one new-
stock
holders
cents,
ital
Rights expire within 30
Price—$25 per share. Proceeds—For working cap¬
surplus.
Office — 851 Boylston Street, Boston,
Underwriter—None.
Crest
be
of
Price—$110 per share of stock; the
in
offered
units
of
sion. Office—41 W. Preston
Crown
Nov.
30
notes
nolds
Arcade
hot rolling mill.
Bldg.,
Rochester,'N.
Adams & Peck, New York City.
Office—202
D.
Y.
Dec.
&
641*613
shares will
offered
on
a
Underwriterin
200,000
of
land.
ington, D. C.
of
shares
class
of
A
Office—3636-16th
Street, N. W., Wash¬
Underwriter—Consolidated Securities Co.
—At
ing
par.
Proceeds—For construction, to install ma¬
chinery and equipment, retirement of
outstanding class
B preferred stock and for
general funds and working
capital. Office—Kenmore, Wash. Underwriter—None.:
Fastline, Inc.
Nov. 6 (letter of
notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share.
Proceeds—
For
Place,
Under¬
Daryi Industries, Inc.
15 filed 225,000 shares of common
stock, of which
130,000 shares are to be offered for the account of the
Dec.
issuing company and 95,000 shares representing outstand¬
stock, are to be offered fcr the account of the
present holders thereof. Price—$5 per share. Proceeds—
For
—
18
filed
122,500
shares
are
of
Jan.
common
per
to be
of
be
E.
City.
Nov. 25
filed
—
None.
88,000 shares of
common
the
stock
rate
to
of
be
one
of¬
Price
ST per share.
For expansion and
other corporate purposes.
4th Ave., New York
—
City,
■
10,000
shares of the
„
per
share.
common
stock, to
thereof; from the rest of the offer¬
the company to be used for
expansion and as
working capital.
Office—6810 S. W. 81st St.,
Miami, Fla.
Dentists' Supply Co. of N. Y.
Dec. 22 filed 200,000 shares of
outstanding common stock.
Price—To be supplied by amendment.
Proceeds
To
selling stockholders. Office—York, Pa. Underwriter—
Reynolds & Co., Inc., New York
Communities, Inc.
common stock
(par $1).
Price—To be supplied by amendment.'
Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown
Water Co. and
Cantor & Goldman
Builders, Inc., witfr the balance to
be used as
working capital. Office—29A Sayre Wood3
Shopping Center, Madison Township, P. O.
Parlin, N. J.
Underwriter—Lee Higginson
Corp., New York.
building and the financing of loans.
Office—Orlando,
Fla. Underwriter—Lecn H.
Sullivan, Inc., Philadelphia,
Pa./on a "best efforts" basis.
Offering—Expected shortly,
ir Duke Power Co.
(2/18)
Jan. 6 filed
$50,000,000 of first and
refunding mortgage
bonds, series due 1990.
Proceeds
—
by competitive bidding.
&
Co.
Inc.;
First
For
Underwriter—To
construction.
be
determined
Probable bidders:
Boston
Corp:;
Halsey, StuMorgan
Stanley &
Co.; Stone & Webster
Securities Corp.
★ Eastern Gas & Water
Investment Co.
Dec. 14, (letter of
notification) 2,000 shares of series A,"
|6y2% cumulative convertible preferred stock.
Preferred
stock
is
convertible
2V2 shares of
—At
par
($25
sidiaries
tu.
•
i
a.
E.
H.
per
Office
delphia 2, Pa.
P.
into
common
common stock
on
a
basis of
for each share of
preferred. Price
share). Proceeds—For loans to
sub¬
1204 Broad-Locust
Building, Phila¬
—
Underwriter—Bioren
&
Co., Philadelphia
Corp.
160,000 shares of
capital stock
lj&10°i?00
$2.50 pei share.Soares are
Proceeds
purchase
of
vending
distribute automobile
one
new
the
west
on
balance will be used for
(oar
t0 be Publl.cly Offered.
—
10c)
Price
To provide
funds for thp
which will be used
to
machines
breakdown insurance
policies
on
of
class
A
Philadelphia.
Dec.
21
mon
stock
West Coast
Corp.
(letter
(1/25)
of
Formula 409, Inc.
Oct. 29 filed
300,000 shares of common
Price—$1.50 per share.
Proceeds—For
duction of
stock
(no
par).
advertising, re¬
indebtedness, bottling equipment, pavment of
$44,000 for acquisition of formula
409, a liquid degreaser
and office
equipment. Office—10 Central
Street, West
Springfield, Mass.
Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass. Offering—Imminent.
Gailahue
a
art
and
two
—
Associates, Inc.
C.
coast
equip
address.
Oct. 27 filed 161,750 shares
of class B,
non-voting, com¬
mon stock
(par $5). Price—S10 per share. Proceeds—
For general
corporate purposes,
including payment on
Office—Charlotte, N.
east
and
Price—S4
indebtedness
notification) 300,000 shares of com¬
(par 1 cent). Price—$1 per share.
Proceeds
—For land
acquisition. Office—30 E. 60th
Street, New
York City.
Underwriter
Midtown Securities
Corp.,
same
Sept. 25 filed 367,200 shares of
Mott
acquire
stock.
bank
Price—$155
Florida
City.
Don
to
A
as other
organizational and miscellaneous
expenses.
Office—142 Pierrepont
Street, Brooklyn, N. Y. Underwriter
—Stroud & Co., Inc.. New York
—
Diversified
the
on
of class
eliminate
and
debentures,
v
Naples Corp.
Dec. 17 filed
110,000 shares of class A
stock, of which
75.000 shares
are
to
be offered
Gailahue, the issuer's
to
Dec.
be
offered
for
fcr the account of
D. R.
President,
the
company
hue's shares will be delivered
in
and 35.000 shares are
itself. 55.000 of Galla-
escrow, to be thus held
for purchase of holders of
transfer¬
able warrants to be
issued by the
company to buyers of
.the other 55,000
shares at the
offering price.- Price
To be
supplied by amendment,
Proceeds
To reduce
^until Dec. 31, lp61,
indebtedness.
15
—
Office—542
Fabricators, Inc.
filed 75,000 shares of common
stock, each share
a warrant entitling
the purchaser to
share of
share.
buy one
30, 1961. Price—$4 per
with the balance for
at $4 until Jan.
common
To
reduce
indebtedness,
working capital.
Fla.
Office—275 East 10th
Avenue, Hialeah,
Co., of New York
"best efforts" basis.
Underwriter—Charles Piohn &
City, on
January.
a
Offering—Expected
-
in
•
Coil
Products
Corp.
(letter of notification) 99,000 shares of
common
(par 10 cents). Price—$3 per share.
Proceeds—For
automation of
operations; working capital;
additional
equipment and machinery and research and
stock
develop¬
ment.
Office—147-12 Liberty Ave.,
Jamaica, N. Y. Un¬
derwriter—A. T. Brod & Co., New York
and
D.
C.
* General
Dec.
Washington,
Offering—Expected
in
two
weeks
(subject
Exchange Commission clearance)..
Securities and
to
Contract
Finance Corp.
(letter of notification). 22,500 shares of
common
(par $2) to be offered on the basis of 15 shares
of
29
stock
the issuer for
one
Morris
Co.
York
Plan
Stock
share of common
stock
of the
Topeka
Price—At-the-market on the New
Exchange. Proceeds—To acquire 80% of
outstanding stock of the Topeka Morris Plan Co.
Office
Washington Avenue, St. Louis, Mo. Underwriter
First Northern-Olive
Investment Co.
Aug 17 filed 20 partnership interests
in the
partnership
Similar filings were made on
behalf of other NorthernOlive
companies, numbered "second"
through "eighth."
Price—$10,084 to $10,6*98 per
unit. Proceeds—To
purchase
land in Arizona. Office—1802
North Central Ave. Phoe¬
nix, Ariz.
Underwriter—O'Malley
Securities Co.. Phoe¬
nix.
Statement effective Oct. 9.
present holders
ing, to
and
J
-
—901
per unit.
Proceeds—For purchase of
land and the eo& of
construction of racing
plant as well
Underwriter—
principal amount; for the stock, S5
Proceeds—From
the
170.000 shares
one
The
stock.
'//'/■/
the
of
Offering—Ex¬
Inc.
Proceeds—To
$100,000,
B.
Finger Lakes Racing
Association, Inc.
of 20-year 6%
subordinated
sinking fund debentures due 1980 and
450,000 shares of
class A stock
(par $5) to be offered in
units, each con¬
sisting of S100 of debentures and 10 shares
new-
Deluxe Aluminum
Products, Inc.
Oct. 15 filed $330,000 of
convertible
debentures, and 70,000 shares of common stock.
Price—For
100%
share.
about
Purchaser,
Washington
Mortimer
Dec._ 28 filed $4,500,000
to present stockholders at
share for each three shares held.
Proceeds
—
inventory, working
capital, and general corporate purposes. Office—Moun¬
tainside, N. J. Underwriter—Milton DJ Blauner &
Co.,
Inc.. New York
City.
St., Danburv, Conn.
Unterberg, Towbin Co.. New York
fered
Office—215
filed
branches,
Davega Stores Corp.
I
11
coast.
offered from time to time
by the present holders thereof.
Price—To be supplied by amendment.
Proceeds—To re¬
duce indebtedness.
Office—39 Rose
Underwriter—C.
Office—8
purposes.
pected any day.
stock (par 10
publicly offered, 10.000
offered pursuant to the issuer's
Employees'
Stock Option Plan and
37,500, now outstanding, may be
to
are
corporate
★ Federated
Systems, Inc.
cents), of which 75,000
general
New-York, N. Y.
Underwriter
Burnside & Co., Inc., New
York, N. Y.
general corporate purposes. Office—7240 N. E. 4th
Street, Miami, Fla.
Underwriter
Clayton Securities
Corp., Boston, Mass.
/
City.
General Aluminum
bearing
-
working
Jackson & Cur¬
Dillon, Union Securities &
Co., both o!
Oct. 29
For repayment of notes and for
Dec.
■New York
General
Dec. 31
Pa.
senior
Underwriters—Paine, Webber,
tis and Eastman
Washington, D. C.
(letter of notification) 80 shares of class A
pre¬
ferred stock (par $3,500) and 80 shares of common
stock
(no par) to be offered in units of one share each. Price
Data Control
capifal.
stock.
common
$25,000,000 of
debentures, due 1980.
Price—To be supplied by amendment.
Proceeds—To re¬
short-term loans, with the
balance for
'.'v.
★ Farwest Plywood Co.
one-for-one basis to
writer—To be supplied bv amendment.
.
'■ v'
1
29 filed
Calif.
Allentown,
duce
;
|nc.
filed
24
tracts
The
working capital.
Dec.
N. W., Wash¬
remaining 858,387 shares will be of¬
fered publicly by the underwriter on a "best efforts"
basis. Price—To be supplied by amendment. Proceeds—
stockholders.
-
Office—1028 Connecticut Avenue,
Acceptance Corp.,
(1/25-29)
Proceeds—For purchase of various
properties, for development and subdivision thereof, and
to meet operating
expenses, salaries and other costs, but
principally for the purchase and development of large
Gas
be
•
Price—$5 per share.
Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
.
C.
Estates
January.
Crusader Oil
General
'
Rey¬
Offering—Exacted
.Glendale, Calif. Underwriter-
California Investors, Los Angeles,
ington, D. C.
100.000 shares included in the
registration
statement and not covered above.
Proceeds—For gen¬
eral corporate purposes, including
1,200,000 for install¬
a
Nov. 13 (letter of
notification) 100,000 shares of
common
(no par). Price—$3 per share.
Proceeds—To pay
an
outstanding obligation and for working
capital. Office
—1500 E. Colorado
St.;
preferred tor each
Office—1949 North
•
18th
stock
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc., Washington,
debentures.
common
additional
ing and equipping
,
stock, to
Fund, inc.
June 29 filed 2,000.000 shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment
stock,
to be offered in units of $100 of
debentures and 12 shares
cf stock. Price—$160 per unit; and $6.50
per share for
an
—
share of
111.
Thursday, January 14, 1960
.
Underwriter—None.
Associates, Inc.
Gence &
'
common
.
Street, Laramie, Wyo.
ESA Mutual
St., Baltimore, Md.
$1,500,000 of
15, 1977, and 180,000 shares of
a
share of Washington Steel.
Cicero Avenue, Chicago,
Proceeds—For expan¬
Corp.
17-year, 7M>%
Co.
and one-fifth of
common
common
Industries
filed
Jan.
cue
Aluminum
$500.
,
be offered in exchange for the common stock of Wash¬
ington Steel Products, Inc., on the basis of one-half share
Inc.
1,172 shares of type A and 7,400 shares of
type B common stock, together with $42,500 of 6% de¬
will
Products
.
shares represent holdings of
management officials
and
affiliated persons. Price—To be
supplied byN
amendment
Proceeds—For general corporate
purposes, including the
repayment of indebtedness.
Office
604
South
the
,
Nov. 30 filed
benture notes.
insurance for
a
Dec. 4 filed 21.609 shares of second cumulative preferred
^
Investment Trust,
for
stock, 6% series, and 54,064 shares of
and
Mass.
and
Ekco
share for each five shares held.
days.
breakdown
purchase price of
public relations and publicity program.
Office—Hotel Troy Building, Troy, New York
Underwriter—John R. Boland & Co., Inc., New York.
Co.
.
Dec.
Financial Chronicle
North
Meridian
Street, In¬
dianapolis, Iud,.
Underwriter—Raffensperger, Hughes
Co., Inc., Indianapolis.
;
Gas Hills Uranium
Co.
Oct, 28 filed 6,511.762
shares of common
stock, of which
3,990.161 are to be offered
for sale.
The
remaining 2,521.601 shares are
owned or underlie
options owned by
officers and/or
directors, affiliates, and associates of the
issuing company. Of the shares to
be sold, 415.000
shares
are to be
offered to holders of
the
outstanding common
of one new share
for each 20
shares held;
500,000 shares are to be offered
in
exchange for proper¬
ties and
services; 326,883 shares are to be
offered to cer¬
tain holders of
the company's
convertible
promissory
notes; and 2.748.278
shares are to be
offered for the ac¬
count of
selling stockholders, of which
number 655.500
—None.
"
V'-
★ General
Devices,
Inc.
Jan. 6 filed 60,888 shares of
common stock, to be
offered
for subscription
by common stockholders on the basis of
one new share for each
five shares held. Price—To be
supplied by amendment.
tion
thereon,
ing
capital.
N.
Proceeds—For land, construc¬
new
equipment, debt reduction, and work¬
Office—Ridge Road, Monmouth
Junction,
Underwriter—Drexel & Co.,
Philadelphia, Pa.
J,
General Electronic
Nov. 20 (letter of
Laboratories,
notification)
of
shares
of
class
A
Inc.
undetermined number
an
common
stock
(par
amounting to approximately $300,000 to
officers, directors and employees of the
chusetts
Pro¬
including machinworking capital. Office—195 Massa¬
Avenue,
Cambridge,
Mass.
Underwriter
Peabody & Co., Inc., Boston, Mass.
efforts" basis.
V
General Finance
Corp.
Sept. 11 filed 150,000 shares of
common
per
cents)
offered to
company.
ceeds—For general corporate
purposes,
very, equipment and
Kidder,
33V3
be
share.
on
stock.
a
—
"best
Price—$3
Proceeds—For working
capital, with $15,000
being allocated for lease improvements
and equipment
and supplies.
Office
Santurce, Puerto Rico.
Under¬
writer—Caribbean Securities Co.. Inc.. Avenida
Condado
609, Santurce, Puerto Rico. The statement
has been with¬
—
drawn, and the filing of
writer to be imminent.
a
new
one
is said by the under¬
///'
,
it General Foam Corp.
Jan. 7 filed
175,000 shares of common stock. Price—$4
per share. Proceeds—To
enable issuer to enter
synthetic
foam
manufacturing business.
Office—640
W.
134th
Street, New York City.
Underwriters—Brand, Grumet
& Seigel,
Inc., and Arnold Malkan & Co., Inc., on a
"best efforts" basis..
General
Public
Nov. 24 filed
(par
$2.50)
record
Dec.
Utilities Corp.
1,115,000 additional shares of common stock
being offered to common stockholders of
30, 1959, on the basis of one new share for
each 20 shares
Price—$22
so
held: rights to expire
per share.
loans, and the balance
of
the
company.
on Jan. 19, 1960.
Proceeds—To pay short-term bank
will be added to the
general funds
Underwriter—None,
sell unsubscribed
shares and solicit
but
dealers
may
subscriptions.
* Glass Magic,
Inc.
(letter of notification)
$51,000 of six-year 6V2%
convertible debentures to' be
offered in denominations
of $51 each.
Debentures are convertible into common
stock at $1.50
per share. Also, 68,0C0 shares of common
stock (par 10
cents) to be offered in
Dec. 30
debenture
and
debentures,
To
pay
at
units of
68
par;
shares
of
of stock,
off current accounts
materials
and
for
stock.
unit.
★ Glastron Boat Co.
Jan. 11 filed
$600,000
of
in
$51
Proceeds—
purchase of raw
Office—2730
Ludelle
Underwriter—R.
A.
Holman
Y.
6%
sinking fund debentures,
15, 1966, and 60,000 shares
be offered
per
one
Price—Of
payable;
expansion.
Street, Fort Worth, Texas.
& Co.,
Inc., New York, N.
due Jan.
common
$102
of common
stock, to
units consisting of $100
of debentures and
stock. Price—$100
per unit.
Pro¬
ceeds—For additional
plant facilities, including land and
production
equipment, and debt reduction. Office—92C
Justin Lane,
10 shares
of common
Austin,
Texas.
Underwriters—Hardy & Co.,
New York
City, and Underwood. Neuhaus &
ton,. Texas.
1
Co., Hous¬
Number 5916
191
Volume
.
.
.
The Commercial and Financial Chronicle
'
'
^
*
'
stock (par one
rent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
she re. Proceeds—For\repayment of debt; purchase of
eauipment and facilities and other general corporate«
purposes. Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change — Formerly Eastern Packing Corp.
both
Price—$5 per share. Proceeds—For
Office—702 Beacon Street,
Underwriters—M. L. Lee & Co., Inc.;
Milton D. Blauner & Co., Inc.; and Kesselman & Co.,
Inc., all of New York City, on an "all or nothing" basis.
owned
•
-
,
Home's
;■
Greer Hydraulics, Inc.
.
<
•
Underwriter — Burnham &
Offering—Expected in January.
C
filed
100,000
stock
general corporate purposes.
Office —
Boulevard, Long Island City, N. Y; Note:
The securities are to be offered first to holders of se¬
Proceeds
—
For
45-14 Queens
cial
ington, D. C.
'
;
'
—
material inventory,- and for working capital.
Office—Two Ryland Street, Reno, Nev. Underwriter—
None. "
; v /'
V v
finished
(B. M.)
Harrison Electronics, Inc.
(1/15)
Sept. 25 filed 133,000 shares of common stock (no
par)
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
H16 provision of funds to assist the company's expansion
Price—$3
mto
the
Mass.
per
share,'
civilian
market/ Office*
Underwriter—G.
.*
Everett
Newton Highlands,..
& Co., Inc., 52
—
Parks
.Broadway, New York Qity._-;
★ Harundale
Jan.
7
Mali
Associates
't
$1,190,000 of partnership interests in Asso¬
Price—$10,000 per unit. Proceed"—To acquire
filed
ciates.
one-half interest in Harundale Mall, a
regional shopping
shares of common
stock.
for
the
Aircraft
Co.
on
'•
Corp.
^
<,
IbldMU
Island
.
Foods,
Inc.
350,000 shares of common slock, of
175,000 shares are to be offered for the account
11
filed
which
of the
issuing company and 175,000 shares, representing out¬
standing stock, are to be offered for the account of The
present folders thereof.
Price—$4 per share. Proceeds
For
general
corporate
purposes.
.
Office —178
South
Lockhart
Wash¬
bilities;
unit.
D.
C.■
of Solar
4
Office—359 South Main Street, Salt
Underwriter—Schwabacher & Co.,
Gas Service
Co.
(1/19)
of first mortgage bonds.
filed $7,500,000
received
Under-
:
lia¬
Proceeds—To pay off current
for oper¬
GaithersUnderwriter—Hodgdon & Co., Washington,
a
**..
$300,000 of 6% sinking
debentures, series A, convertible between Jan. l, 1
Dec. 31, 1969 due Jan. lv 1975. Price—At face
amount.
Proceeti— For partial payment for a lime and ;
1965
and
limestone
r
and
Pa.
Dec.
•
Jan. 19.
fund
producing
plant,
research
working capital. Office—156 N.
Underwriter—None.
and development,
Main Street, Butler,
-
;
Macke Corp., Washington, D. C. *
29 filed 125,000 shares of class A common stock,
(G.
shares of class A
on
jc Macin, Inc.
Dec. 29 (letter of notification)
,
•
,
competitive bidding. Prob- able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Merrill Lynch, Pierce, Fenner & Smith Inc., and
Kidder, Peabody & Co. (jointly); Salomon Bros. & Hutzler; Eastman Dillon, Union Securities & Co., and Equit¬
able Securities, Corp.
(jointly)., Bids—Expected to be,
stock, to be ex¬
"7
,
writer—To be determined by
,
improvement; development work and
Office—414 N. Frederick Avenue
Md.
Louisiana
Dec.
ating capital.
burg,
capital
it will
San Francisco, Calif.
;
stock (no par) and 30,000 shares of class B
common stock (no par) to be offered in units consisting
of one share of class A and three shares of class B stock.
Price—$30 per
amendment;
Corp.
selling stockholders.
Lake
City, Utah.
IIIUU3UIC9,
mv.
Industries,
Inc.
Inc.
by
100,000 outstanding shares of common stock.
be
supplied by amendment.
Proceeds—To :
Price—To
(letter of
common
supplied
Dec. 14 filed
notification) $200,000 of 10-year 10%
registered debentures. Price—$100 per debentures. Pro¬
ceeds—For general corporate purposes. Office — 30 E.Sunrise Highway, Lindenhurst, N. Y.
Underwriter —
Heft, Kahn & Infante, Inc., Hempstead, L. I., N. Y.
23
be
reportedly be about $10 per share. Proceeds—To Wil¬
liam J. Levitt, President (selling stockholder).
Underwriter—Ira Haupt & Co., New York.
Harvester share for
2V4 solar shares, the offer being conditional upon accept¬
ance by holders of atTeast 80% of the Solar shares.
Of¬
fice—ISO North Michigan Avenue, Chicago, 111.
Investment Trust for the Federal Bar BiCg.
Aug. 14 filed 500 Beneficial Trust Certificates in the
Trust. Price—$2,600 per certificate. Proceeds—To supply
-he cash necessary to purchase the land at 1809-15 H
St
N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C. Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D. C., and Swesnick & Blum Securities
it Jonker Business Machines,
Dec
24 (letter of notification) 10,000
Hebrew National Kosher
x
x
Inc.,
Sons,
&
Price—To
stock.
amendment.
Levittown, N. J.
filed 600,000 outstanding shares of its
28
Dec.
the basis of one
None.
Dec.
writer—To be supplied by
Price—$3
outstanding common stock
?£nter
in Anne Arundel County, Maryland. Office—14
West
Saratoga Street, Baltimore, Md.
Underwriter—
:
/
.Levitt
Offering—Indefinitely postponed.
changed
Nov.
..."
stock (par $1), of :
by company and <
140,000 shares are to be offered by Laymen of the Church *
of God/ with which the company is merging. Price—To
be supplied by amendment. Proceeds—For working cap¬
ital. Office—1047 Broadway, Anderson, Indiana. Under¬
35,000 shares are to be offered
which
Corporation
International Harvester Co.
Jan
7 filed 266,064 shares of common
20,000 shares of 7% con¬
vertible preferred"stock
(par $10) and 100,00) shares
of common stock
(par $1) to be offered in units of one
share of preferred and five shares of common. Price—
$15 per unit.
Proceeds
To purchase machinery 1 and
equipment;., transportation and installation, raw and
,
Laymen Life Insurance Co.
175,000 shares of common
stock (par 5c).
*
★ Hardfacing Alloys, .Inc.
Dec. 31 (letter of notification)
,
Nov. 30 filed
Underwriter—Johnston, - Lemon & Co.,
company.
Underwriter—None.
/■
Washington, D. C.
$5,000,000 of notes (series B, $500,000,
2-year, 3% per unit; series C, $1,000,000 4-year 4% per
unit; and series D, $3,500,000 6-year, 5% per unit). Price
100% of principal amount.
Proceeds—For working
Alliance, Inc.; snbsidiariei! of the issuing
shares of common
cent). Price—$1.50 per share. Proceeds—
For general corporate purposes.
Office — Woodward
Road, Englishtown, N. J. Underwriter—Prudential Securities Corp., Staten Island, N. Y.
.
;
29, 1958, filed
capital.
Inc.
(letter of notification) 133,000
stock (par one
International Bank,
Commer¬
Electronics Co.,
Lawn
Nov. 25
Proceeds—For general corporate purposes.
Office—1700 Broadway, Denver, Colo.
Underwriter—
Speculative Securities Corp., 915 Washington Street,
Wilmington, Del., on a "best efforts" basis.
Inc. and Tilden
curities in Guardian Loan Co.,
150,000 shares of com- ,
Price—$2 per share. Proceeds—To
quarters and for the development
of new projects and for working capital.
Office—641
Sonora Avenue, Glendale, Calif.
Underwriter—Holton,
Henderson & Co., Los Angeles, Calif.
'
(no par).
the cost of new
cover
share.
Dec.
Y.
(letter of notification)
28
stock
mon
per share. Proceeds — For general corporate
including the redemption of outstanding pre¬
ferred stock and new plant equipment. Office—Westbury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass.
7 filed 600,000
Office—22 Jericho Turn¬
Underwriter—Charles Plohn
Offering—Expected in January.
purposes.
Landsverk Electrometer Co.
Dec.
Price—$4
International Aspirin
corporate
pike, Mineola, L. I., N.
& Co., New York City.
(1/19)
shares of common
85.000
Inc.
200,000 shares of $.70 convertible preferred
$10). Price—$10 per share. Proceeds—For
(par
general
purposes*
per
shares' of cumulative preferred
(par $10), $1,060,000 of 15-year 8% subordinated
capital notes, and $1,250,000 of 12-year 7% subordinated
capital notes.
Prices—At par and principal amounts.
17
filed
13
Oct.
Dec.
below.
;
Integrand Corp.
,
additional shares of common
Guardian Tilden Corp.
Dec.
stock
Plastics & Chemical
Colo. ■V."'-"'";/-''
Industries,
Lancer
Nov. 27 filed
Savannah, Ga.
Companies,. Inc.
Dec. 14
(letter of notification) 100,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
-—For general corporate purposes.
Office—125 E. 50th
Street, New York, N. Y. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth Avenue, New York, N. Y.
I C Inc.
' v''v.'.--/ v-,.,-:./"/..
June 29 filed 600,000 shares of common stock (par $1).
Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and enfranchising of bottlers, the local and national pro¬
motion
and advertising
of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Purvis & Co. and Amos C. Sudler & Co., both of Denver
Proceeds—For
Guaranty Insurance Agency, Inc. '
See, Mortgage Guaranty Insurance Corp.,
stock (par $1), to
Lane, Space Corp.,
indebtedness.
of
stock,
—
-
Co., New York City.
common
share. Proceeds—To repay
$25,000 indebtedness to the Sanford Trust Co., for re¬
maining payment on purchase by the company of certain
assets of Colonial Aircraft Corp., and for other corporate
purposes.
Underwriter—Mann & Gould, Salem, Mass.
expansion. Office—Bayard, Fl^. Underwriters—Pierce,
Carrison, Wulbern, Inc.. Jacksonville, Fla., and Johnson,
stock
($.50 par) to be offered for subscription by holders of
the outstanding common,
Price — To be supplied by
amendment. Office—Jamaica, L. I., N. Y.
Proceeds—^
To relocate company in. Los Angeles, with the balance
to be used for general corporate purposes, including the.
reduction
Sanford, Me.
135,000 shares of class A
filed
20
(par 10 cents). Price—$3 per
publicly offered and 45,000 shares reserved for issu¬
ance to employees. Price—To be supplied by amendment.
Proceeds
For general corporate purposes,, including
cent Securities
Nov. 27 filed 250,000
Nov.
Inc.
235,000 shares of common
225,000 shares
filed
4
Lake Aircraft Corp.,
Wood, Gundy & Co.
Canadian/ one.
be
stock (par $1)
South,, Nashville, Tenn. Underwriter—Cres¬
Co., Inc., Bowling Green, Ky.
the
Enterprises,
16 filed
Dec.
200,000 shares of common
stock (par 50 cents). Price-^-$1.50 per share. Proceeds—
For expenses for exploring for oil and gas. Office—212
Sixth Ave.,
Toronto,
of
Ltd.,
.
Corp.
Aug. 1, 1960. Price—To
the American group and
manage
Lafayette
Dec.
supplied by amendment. Proceeds—For general cor¬
porate purposes, including reduction of indebtedness.
Underwriters—Lehman Brothers, New York City, will
(letter of notification)
Oct. 15
by Home Oil) beginning
Cp., Greensboro.
Radio Electronics Corp.
of common stock ($1 par).
Price—$5 per share. Proceeds—For general corporate 1
purposes including inventory, leasehold/ improvements,
and working capital.
Office — 165-08 Liberty Avenue,
Jamaica, L. I., N. Y. Underwriter—D. A. Lomasney & '
Co., New York City. Offering—Expected in late Febru¬
ary.
;
■;■//:.//-/./ •. /'■■ /' ; //;
.. /
/./.
•
be
general corporate-,purposes, including the development
of bowling
lanes, bars.-and restaurants on various
Michigan properties. .• Office—-6336 Woodward Ave., De¬
troit, Mich. Utideirvriler—Straus, Blosser & McDowell,
Chicago, 111. Offerings-Expected 'sometirne^after Jan; 1,
River Production
rities
Ltd.
Dec. 16 filed $20,000,000 of convertible subordinated de¬
bentures, due Jan. 15, 1975, and convertible into com¬
mon stock of Trans-Canada Pipe Lines Ltd. (about 20%-
Howe
Price—To
Green
Price—$3
Oil Co.,
Home
Jan. 8.
1960.
200,000 shares of common stock.
share. Proceeds—For working capital. Office—405
Lexington Ave., New York City. Underwriter—Plym¬
outh Securities Corp., New York City.
per
filed 120,000 shares of common
be supplied by amendment.
Aug. 31
68, Great Bend, Kan. Underwriter—Birkenmay*
Co., Denver, Colo. Offering—Expected shortly.
Hi-Press Air Conditioning Corp. of America
Dec. 29 filed
■ <
representing out¬
the accounts of the ;
present holders thereof. Prices—For 20,000 shares, to be
initially offered to company personnel, $4.50 per share;/
for the balance, $5 per share.
Proceeds—For the retire-/
ment of $166,850 of bank indebtedness, acquisition and
development of land, construction of houses for sale, and :
general corporate purposes.
Office—114 North Greene
Street, Greensboro, N. C.
Underwriter—United Secu¬
Box
&
stock, of which
the account of the
standing stock, are to be offered for
existing liabilities; for additional equipment;/an*
for working capital.
Office—East Tenth Street, P. C
pay
Bowiing Corp.
Lakes
Great
115,000 shares are to be offered for
issuing company and 30,000 shares,
(letter of notification) 285,000 shares of coil
stock. Price—At par ($1 per share). Proceeds—Tt
mon
to offer 218,000 shares for sale
initially to stockholders (other than officers, directors
and principal sotckholders).
Shares not purchased by
stockholders and 4,500 shares purchased by the under¬
writer (Smith, Holly & Co., Inc.) at 10c per share are
to be publicly offered. The underwriter, however, has
agreed to purchase only 30,000 shares and to use its best
efforts in
the distribution of the remaining 188,000
shares.
The remaining 12,500 shares are being regis¬
tered for the account of Mortimer B. Burnside & Co.,
Inc., in consideration of its release of certain rights under
prior underwriting agreements. Price—To be supplied
by amendment. Proceeds—For additional working cap¬
ital; for retirement of short-term indebtedness; and for
promotion and development of its various publications.
Office—270 Madison Ave., N. Y. -Underwriter—Smith,
Holly & Co.,vine., New York. Note—A year-end 4%
stock dividend has been declared payable Jan. 22 to
holders of record
Kavanagh-Smith & Co.
30 filed 145,000 shares of common
Dec.
Inc.
March 11
proposes
the company
Mass.
Hickerson Bros. Truck Co.,
Publications, Inc.
235,000 shares of common stock, of which
23 filed
Le^ & Co.
Boston,
American
Great
Dec.
1
,
L.
competitive bidding.
mined by
general corporate purposes.
filed 500,UUO shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For general cor¬
porate purposes, including the purchase of additional
studio equipment, investing in properties in the enter¬
tainment field, and the provision of funds for a down
payment on another building or buildings. Office—807
E 175th Street, New York
N. Y. Underwriter—Arnold
Malkan & Co., Inc., New York. Offering — Expected
day.
Underwriter—To be deter¬
Probable bidders: Merrill
Lynch, Pierce, Fenner & Smith Inc., Kidder, Peabody &.
Co. and White, Weld & Co. (jointly); Eastman Dillon,
Union Securities & Co., Glore, Forgan & Co. and Gold¬
man, Sachs & Co. (jointly).
Bids—Expected to be re¬
ceived up to 13 a.m. (EST) on Jan. 19 at Room 2033,*Two
Rector Street, New York 6, N. Y.
for other corporate purposes.
stock, of which
125,000 are to be publicly offered and 11,000 have been
already acquired at $1 per shkre by the President of
Sept. 18
any
200,000 shares of common stock (no par).
Proceeds—For the construction of electric facilities and
filed
Nov. 20
★ Hermetite Corp.
Jan. 8 filed 136,000 shares of common
M.
37
(1/19)
& Electric Co.
Kansas Gas
Place, Brooklyn, N. Y.
Underwriters — Brand,
& Seigel, Inc., and Arnold Malkan & Co., Inc.,
of New York City, on a "best efforts" basis.
Grumet
Medal Studios, Inc.
Gold
(189)
.
-
Elliott
Gold Medal Packing Corp.
16 *ileci 572,500 shares of common
June
★
'
-.
B.)
of
be publicly offered and
20,000 shares offered to employees. Price—For the pub¬
licly offered shares the price will be supplied by amend¬
ment.
For the shares to be offered to employees the
which
price
105,000
per
shares
share
will
to
are
be
$9.50
in
if the
cash or $9.75
purchase price is paid through wage deductions. Pro¬
ceeds—For general corporate purposes.
Underwriter—
C.
Auchincloss, Parker & Redpath, Washington, D.
•
Magnuson Properties, Inc.
June 29 filed 500,000 shares of class A
common
(amended on Aug. 24 to 150,000 shares of 6^%
lative convertible preferred stock, par $10), and
shares
of class
A
common
stock
cumu¬
150,000
stock, par $1, with common
Continued
on
page
38
v
38
(190)
The Commercial and Financial Chronicle
Continued from page 37
Munston
Nov.
stock carries one warrant
entitling the registered holder
to purchase one share of such
of $11
stock at
common
an
per
Islip,
preferred^
the
transfers
subsidiaries
of
company; $106,000 will be used
and purchase contracts covering
and
properties
it Murphy
class A
to close certain options
Flh.
Office—20
purposes.
S.
E.
3rd
Ave.,
;
Miami,
and
for
New
working capital.
Office
—
2901
Jan.
Blakely
Underwriter«—Best Securities,
through
payroll deductions.
Price
$21.50 per
Proceeds—For working capital.
Office—YorkUnderwriter—Blyth & Co., Inc., Chicago, 111.
—
Investors
8 filed
Growth
Stock
Fund,
Office—Boston, Mass.
(1/25)
16
filed 200,000 shares of common
stock (par 10
and 50.000 one-year warrants for the
purchase of
such stock at $3 per
share, to be offered in units of 100
shares of common stock and 25
cents)
warrants.
Price—$275
unit.
per
Proceeds—For general corporate
purposes, includ¬
the discharge of
indebtedness, the expansion of
sales efforts, and for
working capital. Office—79 Madison
Avenue, New York City. Underwriter—General Invest¬
Nov.
9
filed
Price—To
be
supplied
by
stock
common
amendment.
(par
$1).
Proceeds—To
Majestic Mortgage Co. due
issuing company's acquisition of
all of the
outstanding stock of Majestic Savings & Loan
Association, with about $650,000 to be used for capital
the
(letter of notification) 200,000
(par 10 cents). Price—$1.50
mining
Office
expenses.
D.
McCormack
Mohawk Airlines
9
shares
per
—
of
com¬
Pro¬
N.
Y.
Mo.
it
working
4
(letter
(no par).
plete
Box
capital.
middle of
Ophir, Alaska.
Corp., New
present
model
Address
purchase other second
trust notes and to
main¬
for repurchase
of notes under
its repur¬
Office—11236 Georgia
Avenue, Silver
Montreal
$6,000 units.
used
S2tw
for
Canada.
and associates.
Products
120,000 shares of
opening of three
addl!:lonalx working
an
Irving Weis
all-or-nothing
basis
con¬
Corp.
common
stock.
with other
additional
capital.
Price—$7
funds, will be
retail
Office
—
&
Co., both
of
stores
122
New
-
West
Secu¬
York,
21
filed
edness
with
new
the balance,
if any, to
N.„C.
security
subscribed for
dealers
at
$2
per
be
be
used
offered
as
working
shares
any
oT".
275,000 shares
of
common
stock, of which
publicly offered. Price—$3.75
per share.
Proceeds—To reduce
indebtedness and increase inven¬
200,000
tories
are
of
to be
gears
and
mufflers.
Rochester, Michigan.
Co., Inc.,
Office
South
•
B. Burnefforts" basis.
nothing best
for
expenses,
a
on
the 200,000
shares
comprising the public
offering, and the privilege of
pur¬
chasing 37,500 shares of the
common
share.
to
be
The
sold
37,500 shares
to,John
L.
stock
thus
far
Appelbaum
at
$.10 per
consideration of certain
services rendered.
V
Oil, Gas & Minerals, Inc.
>
April 2 filed 260,000 shares
of
cents.
Price—$2
share.
per
common
Proceeds—To
loans and for investment
purposes.
'iorial
Trade Mart, New
Orleans
-
for
are
share
(par $25),
(par
retire
in
n
ban!
Office—513 Interna
La
Underwriter
Assets Investment
Co., Inc., New
Orleans, La. The SEC
stop order" hearing has
been postponed
from Dec 23
to Jan.
.
Ovitron
Corp., Detroit, Mich.
Oct. 27 filed
150,000 shares of common
cent). Price—$6
per
working capital.
York.
-7;^''
share. Proceeds-rFor
Underwriter—Sutro
~
to
(par
one
research
and
Bros* &
Co., New
Dec. 23 filed
28,637 shares of
common stock. The
11,372 shares for
its
common
stockholders of
and
work¬
Blvd., Azusa,
&
tional
¬
*
State¬
1
held
20.
to
one
holders of the outstanding
preferred share for each 15
Jan.
on
6;
Price—$25
corporate
rights
purposes.
scheduled
are
share.
per
Proceeds—
Office—1400
First
Bank
Na¬
Bldg., Dbtroit, Mich.
Underwriters—White,
Co., Inc.,. New York City, and
Watling, Lerchen
Co., Detroit, Mich.
\
V
V
Weld &
&
,
.
-
.
.
..
;
v
Precision Transformer
Corp., Chicago. ■- $700,000 of 6V2 % subordinated convertible
debentures, due 197Q, with attached warrants to
pur¬
chase 28,000 common
shares; and
*
Dec. 29 filed
chase
of
warrants for the
125,000
common
shares, which
to
company-connected 1 people;
shares. Prices—For the
and
may
pur¬
issued
be
150,000/common
debentures,
par; for the com¬
by amendment. Pro¬
ceeds
For debt;
reduction, plant construction, and
equipment. Underwriter—John R.
Boland & Co., Inc.,
New York
City, who will work on a "best efforts" basis
the
price
will
be
supplied
—
and receive
.sold. '
a
commission of $120 per
$1,000 debentures
.\
;v
-v
Prudential Commercial
Oct. 21
stock
Corp.
(letter of notification)
150,000 shares of common
one cent).
Price—$2 per share. Proceeds—
(par
corporate
purposes.
Office—City of Dover,
County of Kent, Del. Underwriter—All
Inc., 80 Wall Street, New
York, N. Y.
★ Puget Park Corp..—
State Securities
*
per
share.
Proceeds—To
edness.
Office—Seattle.
lington & Co., of Seattle
buy. land
Wash.
and
Price—$6.50
reduce
indebt¬
Underwriter—*Hill: Par-*
and New York
Reserve Insurance
Co.,
Oct. 20 filed
110,837 shares
City.
Chicago, III.
4
,
of capital
stock, of which
to be sold for the
company's account and 48,shares are to be sold for
the account of certain
62,676
161
-
V
*
-Jan. 6 filed
125,650 shares of common stock.
are
selling stockholders.
Proceeds—To
Price—To be supplied
by
amend¬
be
added to the general funds of
company to enable it to finance a
larger volpme of
underwriting and to expand its area of
operations. Un¬
derwriter—A. G. Becker & Co.
Inc., Chicago, 111.
This
offering will not be made in New York
State.
Offering
the
com¬
subscription by
record Jan.
15, 1960, upon
one new
share for each 50
shares then held.
remaining 17,265 shares are to be offered to
officers and
certain
employees of the
company upon the exer¬
cise of
options to purchase said
shares', the option price
being $9.35 as to 6,575
shares and $11 as to
10,690. Price
—For
the basis of
Jan.
For general
ment.
Inc.
pany proposes to offer
shares
expire
-
the basis of
on
.
stock
(par $1).
Proceeds-^—For
65,000 shares of convertible
preferred stock
being offered
For general
stock
stock
Underwriter—None.
effective Nov.4.
Dec. 7 filed
$.10 per
unaccounted
at
common
amendment.
Pioneer Finance Co.
mon,
St
Underwriter—Mortimer
on an "all or
underwriter
will receive
$15,000
$.75 per share
selling commission
„
342
—
by
of
_
no-
share.
Nu-Era Corp.
Nov. 30 filed
supplied
Street, Chicago, 111.
ment
outstanding
Underwriter—One
will
Inc.
shares
enabling of the issuing
shares for each five
share*
Proceeds—To reduce indebt
Office—Matthews,
400,000
be
in
company to make application for
licenses to conduct its
insurance business in States
other than Illinois, the sole
State in which it is
presently licensed. Office—222 W
Adams
Office—
capital stock, tc
of
Offering—Expected
...
Underwriters—Allen
common
holders
York.
.
Commission.
common
New
mum) are to be offered to the
public, which will also be
offered any shares
unsubscribed for by said stockholders.
Price—$5 per share. Proceeds — For
general corporate
purposes, possibly including the
Co.
by
option to
W.
Co., Bear,. Stearns & Co.,
and Sutro Bros. &
Co., all of New York City.
Pilgrim National Life Insurance Co.
of America
Sept. 17 filed 100,000 shares of
common stock
(par $1),
of which
55,000 shares are to be offered first
to stock¬
holders of record Aug.
31, 1959, and 45,000 shares (mini¬
Price—$250
Underwriters—First
Sireet> N^wt YorkUnderwriters—Standard
rities Corp. and
on
Telephone
per share.
Oxy-Catalyst,
Proceeds—Together
the
be supplied
by amend¬
repay bank loans incurred
for
Electro
Dec. 28 filed
share.
per
Price—To
Office—Quebec,
Corp.
Power
Metropolitan
Proceeds—To
Morse
debentures.
23.
1,
struction.
Electric
subscription
Price—$2
capital.
\
partnership interests,
for
more
—
Corp. (1/26)
Dec. 23 filed
$30,000,000 of sinking fund
Feb. 1,
debentures, due
1985, to be redeemable at the
option of the issuer
on or after
Feb.
1970.
Boston
held.
reserve
to be offered for
sale in
ment.
offered
The
Montmartre Hotel, New
York City
Dec. 29 filed
$1,234,000 of limited
.
Exchange Build¬
—
(Province of)
$15,000,000 of 25-year
sinking fund deben¬
1, 1985.
Proceeds—To be advanced to
Brunswick
side &
Spring, Md.
v'V
75,000 shares of common
($1 per share),. Proceeds—For
Office—404 Mining
Freed, Inc.,
days.
Calif.
Feb.
stock in the ratio of
two
Underwriter—
Underwriter—There is no underwriter as
such, but Adrienne
Investment Corp., an affiliate
of the
issuing company, will act as
sales agent, for which it
will receive a
selling commission of 7%.
/
be
air¬
$3,000,000 of second
mortgage notes and
accompanying repurchase
agreements, to be offered in
$3,000 units. Price—From
$2,000 to $4,000 per unit. Pro¬
ceeds—To
a
of
Sept. 4 filed 576,405 shares of
Office—Utica,
helicopter.
Holtonj?
:
par
30
common
& Co., St.
Louis,
January.
Seattle 8, Wash.
At
Z
property development, possible
acquisitions,
ing capital. Office
1111 West Foothill
Brunswick
filed
North Carolina
general
Montgomery Mortgage Investment
Corp.
Oct. 16 filed
chase agreements.
Dec.
Brunswick, Canada.
Underwriters—Halsey, Stuart
Inc.; Kuhn, Loeb & Co., and W. C.
Pitfield & Co.,
Inc., all of New York City.
Inc.
None.
tain
amount
&
Price—To
warrants, and the remaining
are to
be offered in units with
unit to consist of 10 common
shares
New
notification) 30,080 shares of common
Price—$6 per share. Proceeds—To com¬
testing the
—
Phillips Developments,
Blauner & Co.,
Inc., New
shares
principal
due
New
of
67—Boeing Field,
.
building at 245-249 W. 55th St., New York
55th Street, New York.
UnderwriterSecurities, Inc., formerly Chauncey,
Walden, Har¬
about
& Co.
Underwriter—Dempsey-Tegeler
Monte-Copter,
stock
7
tures,
Securities
including debenture redemption,
Offering-r-Expected
Jan.
$200
Jan.
Inc.
and
Price
.
bank
pur¬
common
it New
share.
—
equipment,
retire
Proceeds—For working
capital, to be used for
Office—Floral Park, L. I., N. Y.
Underwriter
—Burnham & Co., New York
City.
filed
corporate purposes,
to
per unit.
$3,500,000 of 6% convertible subordinated
debentures, due Dec. 1, 1974, $1,917,500 of
which are to
be offered in
exchange for a like amount of
company's
outstanding 5Vz% convertible subordinated
debentures,
due 1966.
The
remainder, plus any not taken in the
exchange offer,.are to be
publicly offered. Price.—To
be supplied
by amendment. Proceeds
For
plane
used
f
stock
Nov.
D.
be
expansion.
Minalaska, Inc.
Underwriter—B.
York, N. Y.
To
warrants
debentures, each
and
Street, Boulder, Colo. Underwriters—W. R.
Staats & Co., Los
Angeles, Calif., and Boettcher & Co.
and
Bosworth, Sullivan & Co.„ Inc., both of Denver, Colo.
mon
9
Hilton
ris
supplied
Indefinitely postponed.
400,000
13th
ceeds— For
^
mining expenses.
ing, Colorado Springs, Colo.
& Co., Denver, Colo.
(par $10).
Proceeds—For
attached, and 207,500 shares of common
stock, of which
127,500 shares of the common are to
be offered for the account
of selling
stockholders, 80,000
shares of the common are
to be reserved for
issuance
upon the exercise of the
contributions to its savings and loan
associations and for
other
subsidiaries, $51,000 to be used to repay
principal and interest on a short-term bank
loan, and
$55,000 to be used as additional
working capital. Office
21
V
,
Gold,'Inc. '■!'**:?•
(letter of notification)
Office—245
chase
loans to
Dec.
Dec.
National Equipment
Rental, Ltd. ■.vv.
Dec. 30 filed
$2,000,000 of 6% subordinated sinking fund
debentures, due Feb. 1, 1970, with common stock
pay the $1,360,000 'balance to
in connection with the
—2015
t
Pacific
purchase the
York.
of
Corp.
—.
warrant
—
Corp.
250,000 shares
Fasteners
share.
by amendment. Proceeds
loans. Underwriter—Milton
ing Corp., New York.
Financial
"
Proceeds —For
filed
Henderson & Co., Los
Angeles.
•
stock
common
share.
per
150,000 shares of capital stock
(par 50
cents). Price—$2 per share. Proceeds—For
new
equip¬
ment and
machinery and working capital.
Office—640 E.
61st Street, Los
Angeles, Calif. Underwriter
.
attached
entitling the holder to purchase one additional
The statement also
includes an additional 10,000
shares of common stock reserved for
issuance to key
employees pursuant to options. Price—To be
ing
Midwestern
100.000 shares of
$4
—
—
Micronaire Electro Medical
Products Corp.
Oct.
filed
Price
a
,,
Inc.
additional 7,000,000 shares of stock. Pro¬
an
21
of
be supplied by amendment.
Underwriter—Birkenmayer
working capital and debt reduction. Office—174 E. 6th
£ it Pantasote
'
St., St. Paul, Minn. Underwriter—Piper, Jaffray &
HopJan. 8 filed 350,000 shares of
wood, Minneapolis, Minn.
:
common stock.
Price—To
be supplied by amendment.
Mutual Credit Corp.
Proceeds—For new plant
*";
(to be built by Scientific Design
Oct. 6 (letter of
Co., Inc.) and equip¬
notification) $300,000 of 6%%^conyert- ■ ment
and "start-up"
ible subordinated
expenses pertaining
debentures, series A, due Oct. 1, 1969
thereto, with
the balance, if
Debentures are convertible at
any, to be used as working
capital. Office
any time through Oct. 1,
—26 Jefferson St.,
1968 into class A
Passaic, N. J. Underwriter-—
non-voting common stock (par $5) at
Bear,
Stearns & Co., New York
the rate of 100 shares of such
City.
stock for each $500 of
*
Pathe News, Inc.
debentures converted. Price—At face amount.
Proceeds
—For the general funds of the
Sept. 17 filed 400,000 shares of common
company. Office—c/o
stock
(par 10
Raymond F. Wentworth, 6 Milk St.,
cents) with warrants to purchase an
Dover, N. H.... Un¬
additional 100,000
common
derwriter—Eastern Investment Corp.,
shares at $3.'25 per share*
Price
Manchester, N. H
$3.75 per
share, with warrants. Proceeds—For
Narda Microwave
Corp.
general corporate'
June 16 filed 50,000
purposes, including the addition of
shares of common stock (par 10
working capital, the
reduction
of
cents) and 50,000 warrants to be offered in
indebtedness, and the provision of the
units, con¬
$173,000 cash required upon the-'exercise of an
sisting of one share of common stock with
York, N. Y.
ceeds—For investment.
•
27
stock.
Price—To
,
town, Ind.
it Mass.
Pacific
Nov.
Murphy Finance Co.
Dec.
it Marsh Foodliners, Inc.
Dec. 28 (letter of notification)
13,950 shares of common
stock (no par) to be offered to
employees of the com¬
pany
v
in
&
Street, Seattle 2, Wash.
share.
common
Old
shopping center in San Jose,
Calif,
Office—Patterson Building,
Carmel, Calif. Underwriter
—Binder & Co., Los
Angeles 46, Calif. ■L.r-lr •
common
offered
(no par).*
construction
stock, of which
exchange for 751,400
shares of Amurex Oil
Co., and the re¬
be
to
Office—511
Centers Inc.
(1/20)
~
(letter of notification) 73,750 shares of
common
Dec. 22
.
Fiber-Glass
Plastics, IttCV
Nov. 30 (letter of
notification) 200,000 shares of common
stock (par 10 cents).
Price—$1.50 per share. Proceeds
—For new plant
expenditures, research and develop-
Inc.,
are
capital.
Pacific
stock
aggregate of 571,400 Amurex shares. Office—El
Dorado,
Ark. Underwriter—A. G. Becker &
Co., Inc., of Chicago,
will form and manage a
group of dealers who will solicit
acceptances of the offer.
Underwriter—Blair & Co. Inc., New York.
Marine
ment
Corp.
95,800 shares of
filed
Thursday, January 14, 1960
.
Underwriter—None.
•
maining 1,875 shares are to be offered in exchange for
150,000 class B common shares of said company, the offer
being conditional upon its acceptance by holders of an
lands in the MelbourneCape Canaveral area; the balance will be added to the
general funds of the company and used for general
corporate
11
.
ceeds—For additional
working
Lancaster Road,
Berwyn, Pa.
Y.
93,925 shares
the
to
N.
Jan.
mortgage payments and releases; $465,000 will be paid
on notes acquired by members of the
Magnuson family
in
Manufacturing Corp.
Street,
Underwriter—Heft, Kahn & Infante, Inc.,
Hempstead, N. Y. Offering—Expected in January,
initial
share. Price—For
at par;iisand
for class A, $10.10 per share. Proceeds—:$291,1099
to
be expended during the period ending Aug, 31, 1960 for
Psrice
Electronic
9
(letter of notification) 50,000 shares of common
stock (par 10 cents).
Price—$6 per share. Proceeds—
For general corporate
purposes.
Office—Beech
6tock purchase warrants. Each share of class A comruon
.
Jl?
rights offering, to be
supplied by amendment. Pro¬
—Postponed indefinitely.
4
*
* Ridge Citrus
Concentrate,
Jan. 4
(letter of
stock
For
notification)
(no
par).
working
writer—None.
Price—$162.92
capital.
t
Inc.
378
per
shares
share.
Office—Davenport,
of
common
Proceeds—
Fla.
Under¬
i
Number 5916
191
Volume
•
•
The CoTnmevcial and Financial Chvonicle
.•
stock
Roulette Records, Inc.
27 filed 330,000 shares of common
stock (one cent),
f which 300,000 shares are to be publicly offered.
Price
t;3 50 per share. Proceeds—For general corp®rate pur¬
ges including moving to new quarters and installing,
Executive offices and sound studio facilities therein, ac- ■
firing technical equipment and machinery, and adding
EL working capital. Office —659 10th Avenue, New
York
Underwriter—Hilton-Securities, Inc., 580 Fifth
Avenue, New York, formerly known as Chauncey, Walit
den Harris & Freed at the same address, states that it
underwriting this Issue..
longer
is no
City
^
AT-
„
Tt T
tr
*T
i
Conn.
Underwriter
Conn.
System
Dec.
/
•
15
E.
—
T.
Andrews
&
Finance
.
Co.
,;1
Seacrest Industries Corp*,
.
\
^
Office—618
Jletter of notification)
^
$250,000 of 6%
executive
sales
and to continue research and
Office—188 Webster St., North Tonawanda, N.
Underwriter—C. E. Stoltz & Co., New York.
Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer..& Christensen, Inc., Denver
/ Y Y:-,;.
Soroban
•
^YY/Y .V Y!YYYaYYY;Y:Y/;-
"......
Nov.
Engineering,
Underwriter
Inc., Charlotte, N. C.
Melbourne,. Fla.
—
Dickson
S.
R.
Avenue,
Haven
New
Office—7725
indebtedness.
&
$150,000
in
the
capital
stocks
of
six
bank subsidiaries; to repay a
to add to working capital: to
000:
of
bank loan of $6.400,-
South
Dec.
11
&
Offering—Indefinite.
Bay Industries, Inc.
-
-
•
Price—$5
per share.
purchase
machinery, and add to working capital. Office — 42
Broadway. New York City. Underwriter—Amos Treat &
Cm, Inc., of New York City, on a "best efforts" basis.
Offering—Expected in February.
filed
210,000 shares of class A stock.
Proceeds—To pay off bank loans,
Inc., a New
full a bank
for-
For reduction of
Proceeds
.
bentures, each
purchase
snare.
of
basis
200
stock.
These debentures are to be
$1,000 principal amount of de¬
warrants for the
shares of common stock at $4.25 per
such
of
Price—To be supplied by amendment.
r? §eneral corporate purposes. Office
tvt
—
Proceeds
per
Charlotte,
Co., Greenwood, S. C.
Southern California Edison Co.
Jan,
4
gage
bonds,
filed
$30,000,000
of
first
'
"
and
M
Industries, Inc.
filed 963,000 shares of common stock (par $1).
share.- Proceeds—For investment,. Office
Securities
®o. Main Street, Greenville, So. Car., on a
efforts" basis, with a commission of 50 cents per
S.
C.
Underwriter— Capital
1^1
oest
share.
S*onBri*e Fluorescent Manufacturing Co.
p,?-V' o^led
140,000 shares of common stock (par $.10)
$5
nee
per share.
penmg
new
muffler
Proceeds—For plant
and
brake
improvements,
shops, advertising, new
er|gineering and promotion, and working capital
nl
3350 N. W. 49th St., Miami, Fla. UnderwriterCharles Plohn &
Co., New York City.
Offering—Ex¬
npp-U
Petroleum &
Development Corp.,
stock.
Transit
Price—At
Freeze
par
($1
per
in
(letter of notification) 75,000 shares of„ common
(par 10 cents). Price—$4 per share. Proceeds—For
for working
Cheyenne, Wyo.
(letter
of notification)
Prospective Offerings
-
Alabama
it
9
was
Power
Co.
(4/7)
announced that
plans regis¬
Commission of
this company
Underwriter
$19,500,000 of 30-year first mortgage bonds.
—To
be
bidders:
determined
Halsey,
by competitive bidding. Probable
Stuart & Co. Inc.; Morgan Stanley &
Co.; Lehman Brothers; The First Boston Corp.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Eastman
Dillon, Union Securities & Co.; Equitable Securities
Corp. and Drexel & Co. (jointly). Information Meeting
—Scheduled for April 4, 1960.
Bids—Expected to be re¬
April 7.
on
Registration—Scheduled for March 4.
American Jet School,
Inc., Lansing, Mich.
announced that the corporation plans to
issue and sell 100,000 shares of common stock (par $1).
Aug. 31 it
was
Price—To be
supplied by amendment. Proceeds—For ex¬
pansion of present Michigan
and Ohio sales force to
a
of new courses and resi¬
dent study schools.
Business—In correspondence school
business.
Office—1609 Kalamazoo St., Lansing, Mich.
Underwriter—In New
is
presently
The company
York under¬
York, to be named.
negotiating with two New
writers.
Britton
It
has
Electronics
been
Corp.
this Queens
reported that
Village, L. I.,
expenses
trucking business.
a
City.
—First
incidental to the development of a frozen food
Offiqe—152 W. 42nd Street, New.York
Underwriter — Jerome Robbins & Co., 82 Wall
Street, on a "best efforts" basis. Offering—Expected in
Tri-State Petroleum Corp.
Nov. 12
For
1403
(letter of notification) 199,900 shares of common
cents). Price—$1.50 per share. Proceeds
for drilling and producing oil. Office—
(par five
stock
expenses
G.
Erie, Pa. Underwriter—
Newark, N. J.
Daniel Baldwin Bldg.,
Daggett Securities Inc.,
Turner
Timber Corp.
12 filed $2,000,000
due 1969,
300,000 shares of common
capital. Office-M601 W. Lincolnway,
Underwriter — Atlas Securities Co.,
Cheyenne, Wyo.
is expected to offer an issue of common stock
January, pursuant to an SEC registration. Proceeds
—For plant and equipment, including the expansion of
3
stock
Nov.
January.
★ Stantex
Corp.
Dec. 28
and
Corp.
i
pected
Co.
(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—To
increase
inventories,
expand
manufacturing facilities"
16
stock
mon
company
in
semi-conductor line for silicon products.
York
January.
m
Manufacturing
Young
Dec.
national one, and introduction
300,000 shares of com
snare). ProceedsFor development of oil properties.
Underwriter—Firsi
""pstment Planning Co.. Washington, D.'C.
Dec.
j*rice—$5 per
-Greenville,
-
5,370 shares of capital
Price—$10 per share. Proceeds—For
Office—313 N. "G": Street, Lakeview,
Pittsburgh, Pa.
ceived
subscription. Proceeds—For working capital. Office
204, 955 S. Alverado Street, Los Angeles, Calif.
-non
L, due
Southern
Growth
12
i
Mangum, Okla.
viarch 20 (letter of notification)
refunding mort¬
1985. Underwriter —To be
determined by competitive bidding. Probable bidders:
walsey Stuart & Co.
Inc.; The First Boston Corp. and
Dean Witter
& Co. (jointly); and Blyth & Co., Inc.
series
by
Transcon
/
1
Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
mon stock. Price—At par
(three cents per share). Pro¬
ceeds—For mining expenses. Office—Noble Hotel Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,
Underwriter—None.
(1/26)
Underwriters—White,
Underwriter—None.
Ore.
Room
Underwriters—Interstate Securities Corp., CharJptte,
McCarley & Co., Asheville, N. C., and: Citizens
must
par).
(no
mining expenses.
(Thomas F.) Sanford
Dec. 29 (letter of notification) preincorporated subscrip¬
tion to 1,800 shares of capital stock (no par). -Price—$50
*
1
stock
*
debenture bearing
Streets, Panama City, Fla.
it Western Minerals, Inc.
Dec. 30
(letter of notification)
Underwriter—To be
Brothers.
common
purposes.
Co., New York City, and Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla. (jointly). '
fund debentures, due
ottered
the
Proceeds
Office—Maple &
supplied by amendment.
corporate
tration with the Securities and Exchange
Proceeds—For construction.
,
Weld &
indebtedness,
nnneS'u^Ue
Jan. 1, 1975, with warrants to purchase 100,000 shares of
Southeastern Factors Corp. (1/19)
9 filed
$500,000 of 6% subordinated capital deben-
general
Co., Inc.
1985.
;
(1/15)
Dec.
determined
& Co., Inc.,
of subordinated income debenbuy 25,116 shares of class A com-
issuer's coil business from Michigan to North
Carolina, and working capital.- Office—1090 Springfield
Road, Union, N. J. Underwriter—Milton D. Blauner &
* Texas Electric Service Co.
Jan. 6 filed $12,000,000 of sinking
Dec.
Gas Co.
Natural
$837,200
Price—To be
8.
Third
of
of
the stock, to be supplied by
competitive bidding. Probable bidders: 4
Halsey Stuart & Co. Inc.; The First Boston Corp.; Kid¬
der, Peabody & Co.; Merrill Lynch, Pierce, Fenner & *
Smith Inc.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & To.; Blyth & Co.-, Inc. and Lehman
on
Feb.
moving
.
r
($1 par),' to be offered first to stockholders'/
$100 of debentures with warrants for the pur¬
of three shares of common at $100. Rights expire
chase
January, 1970,and . 25,000 shares
Prices—For the debentures: at 100%
amount;
principal
amendment'.
,
:
in units of
31, 1960.
common-stock.
retire certain long-
Co., New York.
Teleprompter's treasury for the
due
debentures,-
:
Inc.
stock
mon
,
the. company's
term indebtedness: and to develop citrus groves.. Office
—250 South East First Street. Miami. Fla.
Underwriter
—Bear. Stearns
Office—Amity -
filed
21
tures and warrants to
Office—311 W. 43rd Street, New
York City/ Underwriter—Bear, Stearns & Co., New York
City.
''/-'v./
,;YYY-' 'V.'.':
Tenney Engineering, • Inc. (1/22)
Dec. 18 filed $500,000 of 6Y2% convertible subordinated
to
outstanding .at the .date of the stock offering:
reimburse
to
note due Dec.
senting outstanding stock, to be sold for the account?
if certain selling stockholders. Price—To be supplied by
amendment.
Proceeds—To retire .-70% of the commonInvest
convertible subordinated
/ purchase of Antennavision of Silver City,
-'Mexico corporation; $100,000 to prepay in
Mines,
(par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation
of a program of national distribution and for working Y
capital. Office—373 Herzl St., Brooklyn, N. Y. Underwriter—Glen Arthur & Co., New York. N. Y.
Y
—For
($1 par).
Price—To be supplied by amendment. Proceeds—$690,000 to supply the cash portion of proposed acquisitions;
Co.,
and 457,000 shares, repre¬
seven
Y.
TelePrompter Corp. (1/15)
*
Nov. 27 filed 125,000 shares of common stock
,.
investment
80
West Florida
Corp.
debt reduction.
.
Investment
filed
29
Dec.
Treat & Co., Inc.,
and Truman, Wasserman & Co., Inc., both of New York
City. Offering—Expected in January, 1960.
,
stock
of 6%
v
^
ville, L. I., N. Y. Underwriters—Amos
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1J
of which 1,543,000 shares are to be issued and sold foi
company,
$750,000
cluding expansion and
Sottile, Inc.
the account of the
filed
16
Corp.
stock
;
debentures, due 1969.
Price —9 At 100% of principal
amount; Proceeds—For general corporate purposes in¬
Inc.
'
t
Dec. 29 filed 100,000 shares of its common stock:
Price
—To be supplied by amendment. - Proceeds — For ac¬
quisition of land and erecting an additional plant, for
tooling and additional equipment, for fixtures and gen¬
eral furnishings for the new plant, and for reduction of
bank
Manufacturing
Telechrome
Un¬
Vita-Plus Beverage Co., Inc.
*
purchase additional factory and office
or
,
Aug. 11 (letter of notification) 300,000 shares of common
development, and the bal¬
space.
capital.
Colorado.
to lease
ance
Products
Ave., Eveleth, Minn. Underwriter—Sakier
50 Broad St., New York, N. Y.
manufacturing personnel1
and
panded
.
(letter of notification) 150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—
For general corporate purposes.
Office — 321% Grant
1
(letter of notification) 95,000 shares of capitaJ
cents). Price—$1.50 per share. Proceeds—
To purchase and install manufacturing equipment; con
trol and test equipment; advertising and for working
Dorchester, Mass.
Street,
Transistor
Vickers-Crow
loan, for additional working capital, and to establish ex¬
stock (par 10
»
Nov. 23
..
Sept. 8
_
Co., Phoenix, Ariz.
contracts (partnership in¬
terests) to be offered in units. Price—$5,378.39 per unit. Proceeds—For investment.
Underwriter—O'Malley Se-^
curities Co. Statement effective Aug. 11. *
r '*•
Secode Corp.
Shield Chemical Ltd.
• i
(letter of notification)
Val Vista
share for each share held. Price
/•
—$28.75 per share. Proceeds—For working capital and
to secure additional patents on present inventions, and
Dec. 28 filed $1,500,000 of 6% convertible subordinated
to continue and expand research and development work
debentures due July 1; 1965? The company proposes to
in the field of liquid compressibility devices and other
offer $300,000 of -the debentures in exchange for its
areas.
Office—188 Webster St., North Tonawanda, N. Y.
6% convertible notes due July 30, 1962; $587,000 in ex¬
Underwriter—C. E. Stoltz & Co., New York.
change for its demand notes totaling $587,000; and the
balance, or $613,000, to the public for~cash. .Office—555 '<
Taylor Devices, Inc. YYY':^Y/
Minnesota Street, San Francisco, Calif. v Underwriter— i Dec. 23 filed
18,705 shares of common stock to be of¬
>No underwriting is involved; but the debentures offered
fered for subscription by common stockohlders on the
for the cash sale will be sold om a best* efforts basis^
basis of six-tenths of one share for each share held. Price
throush dealers who will receive a 5% commission.
—$28.75 per share. Proceeds — To repay a short-term
18
June
at about $25,000,000.
Highway, Tampa, Fla.
a
.
—
expenditures,; estimated
ten-sevqnty-fifths of
.
150,000 shares of com¬
mon
stock *■ (par 10 cents).
Price—$2 per share. Pro¬
ceeds
For
general corporate purposes.
Office — 36
Sylvester Street, Westbury, L. I., N. Y. Underwriters—
VMichael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.,
New York, N. Y.
.
T
Dec.
-Tayco Developments, Inc.
; Dec. 23 filed 5,390 shares of common stock to be offered
for subscriptibn by common stockholders at the rate of
,
Washington
Universal
subor¬
North Dale Mabry
Underwriter—Stone & Webster Corp;, New York City.
■■
.
derwriter—None.
Office—111
notification) 165,000 shares of common
stock (par one cent).
Price—$1 per share.- Proceeds—
For general corporate purposes.
Office—354 Franklin
Avenue, Franklin Square, L. I., N. Y. - Underwriter—A.
J. Gabriel Co., Inc., New York, N. Y.
(letter of
unit. /
timber prop-
....
.
.
.
Jc United Finance Corp.
Dec. 29 (letter of notification) $150,000 of 9% subordi¬
nated debentures dated Dec. 31, 1959, due Dec. 31, 1966.
Price—At face amount/ Proceeds—For working capital.
•
—
Dec. 4
.
.
erties, with apy balance to be added to working capital.
Office—60 E. 42nd Street, New York City. Underwriter
—Frank P. Hunt & Co., Inc., Rochester, N. Y.
~
164,689 shares of common stock, of which
dinated notes due Jan. 1,1966. Price—At face amount157 346 shares are to be offered for the account of nine
Proceeds—For working capital/Office— 610 S. Sixth St.,
selling stockholders and 7,343 shares for the account of
Champaign, 111. Underwriter
Hurd, Clegg & Co.,
the issuer. Price—To be supplied by amendment. (Giv- * Champaign, 111.
ing effect to the completion of the proposed offering,
^ Tampa Electric Co.
net operating profit in the fiscal year ending April 30,
Jan. 7 filed 240,000 shares of common stock.
Price—To
1959 was about $1.48 per share.) Office—Evanston, 111.
be supplied by amendment.
Proceeds—For 1960 con¬
Underwriter—Kidder, Peabody & Co., Inc.
J
struction
...
,.
Co., Hartford.
(i_.:
6 filed
ran
Proceeds—For the acquisition of coal and
i
-r-i
Price—
$1,001.25 (plus accrued interest from 12/15/59) per
Supermarket Service, Inc.
Oct. 14 (letter of notification) 9,000 shares of common
stock (no par). Price—$11.50
per share. Proceeds—For
working capital. Office —103 E. Main St, Plainville.
Peterson & Co.
Row,
T
S\r.
125 shares of stock.
amount of debentures and
Street, Philadelphia, Pa. Underwriters—First
Securities, Inc., New York,. N. Y. and Frank TY
Hunt & Co., Inc., Rochester, N. Y.
Com ivi+4
ITtr'
I
, ,
.
,
(par 25 cents). Price—-$1 per share. Proceeds—For
?no1^' exPan?ion and working capital. Office—
4U N. 2nd
Aug
39
(191)
of 63A% convertible debentures,
stock (par one
units consisting of $1,000 prinofcpaL
and 250,000 shares of common
cent), to be offered in
Philadelphia
Corp.,
40
Exchange
Underwriter
Place, New
City.
Brooklyn Union Gas Co.
7 it was reported that the company plans to issue
Dec.
about
1960.
be
$20,000,000 of securities in the second quarter of
The precise form of the offering is expected to
in the first quarter. The company's cur¬
announced
rent
thinking is that it will
take
the form
of straight
preferred stock. About $120,000,000 is expected to be
spent for construction in the 1959-1964 period, of which
some $80j000,000 will be sought from outside financing,
Continued
on
page
40
40
(192)
Continued from page 39
with the
with
outstanding as of the end of this
in addition to about $2,250,0(»0 of hank loans under¬
taken in order to call in the
preferred stock of BrooklynGas Co., acquired by consolidation last June.
This company had about 100,000 meters in the
Coney
Island (N. Y.) area. Office—176 Remsen Street, Brook¬
Nov. 3.
(J.I.)
Note: Stockholders meet
Gulf
Dec.
16
it
August
lic
was
as
corporation, plans
financing in the form
(jointly);
of
a
its
stock
common
offering
it
was
announced
about
temporary bank loans
the
and
to
defray part of the
company's 1960 construction
—To
cost
2
it
was
of
Expected
(2/24)
announced
debentures.
Underwriter
—
To
,be
determined
tion
that
December.
Registration
auditors
future.
near
Georgia Power
Dec. 9
it
tration
was
of
still
the
Co.
likely
late
in
that
of
Union
the
it
general
ously
to
public
wants—a
with
REPORTER'S
lightening
events in
days
to
follow
the
it
en¬
trend
of
Treasury financing these
that
now
President
Eisen¬
hower has revived his
request for
modifying
terest
or
rate
eliminating the
ceiling
government
of
of
paper
in¬
current
the
Oct. 5
what
yield
it
in
it
obvi¬
keeping
prospective
return
what
for
longer than
offered
agency this week
issue of one-year dis¬
an
bills
type
for
subscription. This
security is definitely
of
aimed at
institutional,
rather than
to
the
the
of
develop¬
in
the
Treasury
which have taken short
long-term
yields
market
well
as
above
the
level.
At
any
vance
the
of
new
Bank,
for a day in ad¬
opening of bids for
government
issue, banks,
the- Federal
were
uals, both
who
rate
the
including
as
5%
"
by mail and in
person,
sought
to
participate.;
Since the bidder
fixes the yield
on
such an issue
by the price he
is
willing to pay, the
onslaught
of the public
caused no little con¬
fusion among those
caught in the
swirl of potential
buyers.
But
back
fanfare
all,
including
I hat
see.
parently
chance
term
fix
of
one
a
of
all
the
is that
attendant
stood
out
for
Congressmen,
the
stands
putting
funding issue
coupon
the
thing
rate
Treasury
a
pretty
across
a
will
ap¬
good
long-
provided it
that
to
can
give
available
the year-end
in hand.
over
are
indications
that
much
into
and
recently,
Mail
was
Order
people who
to
veer
old
toward
from
plans
earlier
bonds
and
of
this
place
in
slower-moving
invest¬
some
recently
corporate
new
issues.
Getting
a
reaction
Which
encom¬
passed the stock market in
recent
sessions has been a
factor in
making
The
up
some
people's minds.
nosediv^ of
some 26 points
before hitting
anything in the way
of
an
appreciable
"cushion" or
underlying demand
disturbing
to
percentage
much
only
But
some
less
doubt
no
investors.
basis
the
Put
drop
was
on
a
looks
formidable, running
about
Electric
was
it
to
come
was
rest
on
its
twice
new
corporate
issue
light, and that is put¬
ting it mildly. Next
Tuesday is
the big day in the week
with two
bidding
issues
for attention.
&
Electric
R.
F.
Co.
will
be
look
over
new
bonds. That's it for the
week.
tenders for $7,500,000 of
Quinn, Neu Sells
to
3.8%.
evidently it brought about
real
thinking on the part of
has
<
The James Co. Sells
Insul-Cup Offering
Street, New
share
offered
Co.,
of 12 East
York City, has
and
sold
at
stock
300,000 shares of
(one cent par) of
Corp.
of
$1
41st
pub¬
per
common
Insul-Cup
6.
are
to
Richard
appointed
Manager of the Sacra¬
Francis
I.
duPont
associated
Francis I. duPont & Co.
since No¬
vember, 1958. In his new assign¬
ment he will assist Jack
Claussen,
Manager of the firm's Sacramento
office, in an administrative ca¬
pacity.
2.
&
York
Co.,
members
Stock
of
Exchange,
the
has
5
St.
Paul
which
the
&
A.
Green,
a
be used for
v:
'
Plastics: Issue
Filor, Bullard
&
Co.
at
Jan.
Plastics
price
a
12.
Net
and
$4
issue
the
proceeds
common
Corp.
of
The
subscribed
the
& Smyth and Hardy
150,000 shares of
offered
stock
on
shares
common
per
share
was
over¬
books
from
will
Brooklyn, N. Y.
the
;/
sale
be
closed.
the
of
used
by
company
for
development and manufacture
plastic products, for new
new
decorating equip¬
in connection with
setting
up
a
new
moving to and
plant, and the
balance of the proceeds will be
added to working
capital and used
for general
corporate
purposes.
The
14-year-old corporation is
engaged principally in the design,
production
and
sale
of
a
wide
variety
of
\
houseware
products
specialties made
advertising
thermoplastic
and
thermo¬
setting materials. Houseware pro¬
partner in
banking firm
Br(own, was elected
director of th£.
of
a
Gal]edes..~_~i~~^..
Centennial Management
DENVER, Colo.:—Centennial Man¬
agement
Corp.
of
Galleries,
investment
Stryker
Pro¬
the
financing of
Office—Houston, Texas.
and
the board of
directors meeting
the
Parke-Bernet
Inc., Louis
for
<
is
Street.
Named Director
At
preferred stock.
ment, to defray expenses incurred
N. Y —The appoint¬
ment of Elliott J.
Smith as Man¬
ager of the
Rochester, N. Y. office
of
and
packaging and
Bache Branch
Manager
ROCHESTER,
at
company plans to
the sale of first
Filor, Bullard &
Smyth Sells
of
Bache
the
with
funds
Admiral
been
and
Research Corp. is
in a securities business
offices in the Boston
Bldg.
Ranald H.
Macdonald III, is a
principal of the firm.
engaging
from
America, located at 1916
Park
Avenue, New York City.
Books were.closed on
Jan.
The proceeds
—
been
Associate
drilling
capital.
Appoints
Calif.
Managers of the branch
common
licly
June
on
:'://v,o/;S
registered representative with
located
stock
(par 25c) of
Great Lakes. Natural Gas
Co,r Inc.
The Erie,
Pa., company intends
using the proceeds for
James
by
Halsey/ Stuart
quiries with respect to the issuance
and sale of Transval
been announced.
John Garland and
Elmer Sheehan have been
named
Quinn, Neu & Co.,
Inc.," of 40
Exchange Place, New York
City,
have publicly sold
150,000 shares
The
determined
stock.";;
an
Mr. Pedder has
New
Great Lakes Gas
Common Stock
working
1:.;^.
Angeles office of Sutro & Co. (home
office: San Fran¬
cisco) "may be contacted:
regarding- any andall in¬
Co., 1200 J Street.
of
for
<
official, announced on Jan. 8 that
Co., San Diego 1, Calif., and the Los
an
Norman C. Roberts
Pedder
as a
opening bids for 200,000 shares
additional common
stock, and
Louisiana
Gas
Service Co.
will
and
To ^e
bidders:
1960
common
Electronics
Downer,
.
L.
of
wells
—
that
in
raise permanent
1960 expansion
program.
if Transval
SACRAMENTO,
&
is
Gas
bonds
this company plans
regis¬
$40,000,000 of 30-year first
announced
market
existing liabilities, machinery and
equipment; and for working capi¬
the
Kansas
the
that
ceeds—To
its
mento office of
up
whether
Generating Co. .-(6/2/;.i
announced
mortgage bonds, and
its
of
Lift
And there is not much
question
but that the broad and
doubtless
"healthy"
9 It
Sept. 29
F. I. duPont
cultivating customers.
competitive
know
the
company is planning
additional common
stock,
probably in the form of a rights
offering and a negoti¬
ated
underwriting. Last rights offering was
underwritten
by Stone & Webster Securities
Corp., New York.
Associate
small
not
/
Tampa Electric Co.
ex¬
taxr
is
money
fixed-term
Certainly it seems that such
buying has been behind the hard-ening of the Treasury list and in
the
cleaning up that has been
taking
does
it was reported that
the sale of about
$7,000,000 of
regis¬
tal-
next week and
go ahead with
task of
clearing shelves and
For
•
•
planj
Sept. 14
oars
calendar
v.
announced
:
Mich.
equities.
can
Co.
Bids—Expected to be received
Registration—Scheduled for April 29.
placed
plans to register
inclined
were
Gas
Transcontinental Gas Pipe Line
Corp.
Co., Lansing,
away
bal¬
Inc.; Merrill Lynch, Pierce, Fenner & Smith
Inc.,
and Blyth &
Co., Inc. (jointly); Mor£an
Stanley & Co.;
White, Weld & Co. and Kidder,
Peabody & Co. (jointly);
Eastman Dillon, Union
Securities & Co.; Equitable
Secu¬
rities Corp.,
and
Drexel
&
Co.
(jointly).; The ' First
Boston Corp.
Information Meeting—Scheduled
for May
31, 1960.
(3/17)
company
&
& Co.
Dillon,
announced
how¬
ments.
Reserve
besieged by,Individ
funds
been
mild
ever,
been
with
large aggregations of investment
capital have been slow in
making
up their minds. There
have
headed
ments
have been
But, with everything in a state
flux, people and buyers for
individual
investors.
But
obvi¬
public's
appetite' has
whetted by recent
were
that the company
first mortgage
exempt operations,
so-called
funds
ously
the
do
heavy
on
Federal
count
issues
of
sold
program.
Previous issues have
been
No te—-On Dec. 31 Mr. McMeekin.
told
he
newspaper
be placed
'
"January rein¬
vestment''
operations.
Certainly
dividends
^nd interest payments
five-year maturity.
The
bond
&
buyer.
having more than a little diffi¬
culty in making up their minds
ran
4V4%
Kidder,
firm—the
Electric
tration with
the, SEC of
mortgage bonds.
Underwriter
competitive bidding.
Probable
Co. and Equitable
Securities Corp.
Information Meeting—March
14, 1960. Bid:—
to be received on March 17.
Registration—
National
Presumably investors
find
Co.
announced
Securities
Seasonal Demand
might
this
Outpourings Light
Congress, if it sidesteps politics,'
could
lend
a
The
helping hand by
underwriting industry,
yielding on the interest question. cept as it participates in
REPORT
Congressmen
was
in
;
Scheduled for Feb. 11.
plans regis¬
mortgage bonds
first
the
OUR
that
year
Last
of
(jointly).
Expected
the company
30-year
bonds.
new
company is contem¬
registration, .of 17,000 shares
approximately $8,000,000 of bonds in
December,
Proceeds—To repay bank loans
incurred for cur¬
construction
Dec.
S4,000,000 of
30-year bonds.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Kidder,
Peabody & Co. and White, Weld & Co.
(jointly); Mer¬
rill Lynch,
Pierce, Fenner & Smith Inc.; Eastman
(11/3)
announced
$12,000,000
in
company
believed
late
Carolina
Southern
—
Co., Torrance, Calif.
reported
v
the
conditions.
$100).
July 5, 1860. Bid:—
July 7.
Registration
on
1
■
that
privately./ He expects • them to be
sold
this summer; the precise
timing will be subject to mar¬
ket
Co.^ (jointly). In¬
last
was
tration
visited
is
(par
if Harvey Aluminum
Dec. 9
'
received
Mississippi Power
concerning a forthcoming issue of common stock.
Although no confirmation has been
forthcoming, it is
understood
stock
privately.
reported that this Newark, N. J.,
corpora¬
make an announcement in the
next1 two
sell
this
issue about
was
might
be
placing
placed privately.
plans regis¬
company
preferred
It
$4,500,000 of
Englehard Industries, Inc.
weeks
to
reported
S.1 C. McMeekin, President,
22,
1959.
& Co.
Hawaiian Telephone Co.
Aug. 3 it was reported company received
approval from
the Territorial Public Utilities
Commission to
Co.
Dec. 2 it
Drexel
to
—
bidding. Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co.; Eastman Dillon, Union
Securities & Co.; A. C.
Allyn & Co., Inc. and Ladenburg,
Thalmann & Co.
(jointly); White, Weld & Co.; The First
Boston Corp. and
Glore, Forgan & Co. (jointly); Blyth
& Co., Inc.; Drexel & Co. and
Equitable Securities Corp.
(jointly).
&
of
Stores, Inc.
was
the
South
June
Harvey Machine Co.
is planning
its initial
public
financing for the Spring.
Underwriters—Kuhn, Loeb &
Co. (managing) and
Tucker, Anthony & R. L. Day, both
of New York City.
'//,/;■/■'
;/
by
competitive
shares
it
selling stockholder.
Scheduled for June 3.
by Philip A. Fleger, President
and Board Chairman, that the
utility's sole financing in
1960 is expected to consist of
$20,000,000 of non -convert¬
ible
that the
announced
50,000
& Co., and White, Weld &
formation Meeting—Scheduled for
determined by competitive
bidding.1 Bids—Ex¬
pected to be opened in the latter part of
February.
Duquesne Light Co.
was
of
12
Underwriter—Van Alstyne, Noel & Co., New
York.
(7/7)
Peabody
Underwriter
program.
Bros. & Hutzler, and
Corp.;
be
Dec.
first
Underwriter—To be determined by competitive
bidding.
Probable bidders: Harriman Ripley &
Co.; Eastman Dil¬
lon, Union Securities & Co., and Salomon Bros. &
Hutzler
(jointly); Equitable Securities
that the company plans the
$25,000,000 of 30-year first mortgage
Proceeds—Will be used to repay $18,000,000 of
bonds.
it
tration
Dayton Power & Light Co.
of
$5,000,000
will
Dec. 9
New
for
Eastman
Power Co.
supplied
stock.
About 66%
of the issue will be
the company's account and the
remaining 34%
ance will be sold for the
account of a
plans regis¬
mortgage 30-
Scheduled for Jime 3.
Gulf
Thursday, January 14, 1960
common
the company
rent
pub¬
be
Nedick's
plating
that
of
.
State.
Nov.
31.
Dillon, Union Securities & Co. In¬
formation Meeting—Scheduled for
July 5, 196). BidsExpected to be received on July 7.
Registration —
last
first
Haven, Conn. President—Marvin Botwick.
30
SEC
Smith Inc.; Salomon
Chapel St., New
filing
the
York
(7/7)
announced
was
with
.
common stock
(par 10 cents).
by amendment. >
Proceeds—For
expansion and working capital. Office—130
Shepard St.,
Lansing, Mich. Underwriter—To be named later
in
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
scheduled for next
spring. Business—The company produes spray containers: to combat
ice. snow, and fog.
Proceeds—For expansion. Office—1184
Dec.
Co.
.
100,000 shares of
Price—To
bonds.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Equitable Securities Corp.;
&
Mfg. Corp.
that this firm, founded
reported
Delaware
a
issue of
—
year
It was reported in
early January that the company is
planning new financing in a few
months, possibly
through privately-placed notes. Office—700 State Street,^
Racine, Wis.
;
Research
it
tration
Case Credit Corp.
Consolidated
Power
Dec. 9
Feb. 9.
on
To
be
determined
by
Probable bidders: Halsey, Stuart &
Information Meeting—Scheduled for Oct.
Borough
lyn I, N. Y.
Underwriter
Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on
the company will have
year,
SEC.
Financial Chronicle
Co.
Proceeds—The offering now "in the wotks
to liquidate bank loans of about $13,000,000
is expected
the
competitive bidding.
$40,000,000 remainder expected to be internally
generated.
Commercial and
The
New Revel Miller
Branch
GLENDALE, Calif.—Revel Miller
&
Co, has opened a
branch office
at
102 North
Brand Blvd., under
the management of
John F. JudcK
.
ducts
food
include
various
of
types
dished,
ice-trays, beverage
coasters, ash-trays, soap
dishes,
nhonpgrabh
record
holders, ~ar
facial
tissue
other
items., Advertising
dispenser and
many
special¬
ties made by the
company are sold
to
restaurants, hotels, airlines and
other
businesses, primarily for
giveaway purposes. These prod¬
ucts
include
ash
trays, highball"
picks,
steak
markers and ball point
pens.
stirrers,
cocktail
With Robert J. Connell
(Special to The Financial Chronicle)
DENVER, Colo.
—
Russell
W.
Slade has become connected with
Robert
National
J.
Connell,
Inc.,
First
Bank Building, Ke.was
formerly.with Purvis & Company.
.
Number 5916
Volume 191
The
of Current
following statistical tabulations
latest week
1
'
Latest
each)
gallons
—Jan.
4
(bbls.)
jan.
(bbls.)
Jan.
Kerosene output(bbls.).y;.i**-:.._**wy_**._-_y**,_.*.._„_..*.... Jan.
Distillate fuel oil output (bbls.)—
Jan.
Residual fuel oil output, (bbls.)——
jan.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Jan.
output
Gasoline
(bbls.) at-;.—»—
—
Distillate fuel oil (bbls.) at—
Residual fuel oil (bbls.) at—.*———T
CONSTRUCTION
NEWS-RECORD:
public
State and
V",,'
.—
1i8,369,000
8,266,000
7,983,000
8,256,000
.£ 29,398,000
28,772,000
'29,714,000
3,216,000
2,756,000
2,600,000
3,080,000
14,129,000
.
188,966,000
184,045,000
181,406,000
186,482,000
26,771,000
27,080,000
30,351,000
26,057,000
164,093,000
126,056,000
50,451,000
53,898,000
60,525^000
^
138.900,000
174,600,000
98,700,000
144,106,000
12,900,000
40,200,000
_Jan.
—
BOND PRICES
U. S. Government Bonds
•
DAILY. AVERAGES:
1——
_il_—
Railroad Group
;
6.196c
275,644,000
282,695,000
289,639,000
185,000
6,173,000
6,454,820
6,364,304
6,244,056
'
,.$51,400
"$51,900
$49,300
12.500
12,500
12,100
-
24,800
24,800
-23,500
$88,700
"$89,200
$84,900
$50,379
$49,872
$43,970
13,259,000 •■"
'
by 383,
'
—
DEPT.
of
Month
—
COM¬
OF
Nov.-.
dollars):
of
1
;
;
!
OUTSTANDING—BOARD
CREDIT
GOVERNORS
intermediate
and
of November
as
RE-'
SERIES—Esti¬
FEDERAL
THE
OF
SYSTEM—REVISED
short
in millions
credit-
term
30:
.
credit-.,
consumer
Other
$66.41
$66.41
$41.50
$41.17
$42.50
$40.17
v
38,723
38,421
,
16,669
16,659
9,687
9,534
2.683
2,653
9.684
9,575
8,372
11,656
11,451
10,648
4,117
4,050
v:
33.600c
34.150c
31.075c'
31.525C
11.800c
_—
30.100c
':
'
13.000c
11.800c
••■■"
12.800c
13.000c
12.500c
12.500c
<-
3,582
4.614
4.525
4,370
2,925
2,876
2,696
125.5
123.9
13.000c
12.000c
12.500c
26.000c
24.700c
24.700c
99.250c
98.750c
99.625C
98.875c
v
83.40
87.32
(
85.07
85.20
84.04
90.20
87.86
94.71
85.85
92.79
78.43
'
:.
79.13
PRICE INDEX—1947-1949
81.42
•
81.17
-
8,452
2,334
81.78
88.40
83.53
83.66
84.17
90.06
85.46
85.72
85.98
92.20
•
125.6
'
:
:
:
Food
100-
s=
November:
of
items
Food
home__
at
Cereal
and
1
*
—
bakery
away
121.1
.
112.6
106.4
from home (Jan.
116.9
113.7
130.4
130.1
128.0
140.5
140.4
138.4
121.7
121.7
118.1
135.9
135.5
135.8
104.4
104.1
1953
—
100)
1
,___—_—:
;
Housefurnishings
Household
114.5
124.5
123.4
117.2
Solid fuels and fuel oil.
r
113.5
116.1
%
116.0
electricity
and
134.0
109.0
107.9.
Rent
Gas
117.6
134.2
134.1
home
at
Housing
-
119.4
115.8
j
107.0
food
Other
Food
118.4
115.1
117.9
-
products
Meats, poultry and fish__________
Dairy products
>
—
Fruits and vegetables-.
84.17
.
"
'
-
credit
Month
All
,89.78
83.79
83.40
83.40
,78.32
.
__4
accounts
'
-'
credit
payment loans
Service
.85.84
81.65
83.53
'
87.45
"
loans
CONSUMER
12.800c
11.500c
•
,
loans
27.100c
13.000c
79.56
goods
modernization
Noninstalment
28.600c
.
26.000c
80.67
Jan. 12
Jan. 12
Jan. 12
,—
'
-
:
,
12.000c
13.000c
Jan. 12
-
i
12.000c
"
33.100c
14,164
"
and
Personal
33,322
_•
;
__*
consumer
Repairs
'
!
credit '
Instalment
6.196c
$66.41
jan. 12
r.'> Public Utilities Group
Industrials Group
25,549,000
*
Automobile
$66.41
Jan. 12
-Jan. 12
i
•
.
21,661,000
export
1
"
;
transported
SERIES
NEW
SERVE
321
6.196c
Jan. 12
.
Baa
'1
6.196c
.
-
--
——
28,885,000
17,284,000
"
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
.Jan.
;
35,000
30,355,000
29,486,000
Total
13,554,000
;'-J'
248
.
Jan.
—
,25,039,000
21,000
-
tons)-
INVENTORIES
Charge
—-
(in
Single
Average corporate
Aa
104
'
—
-
249
226
242
7
y'/y
at
(barrels)
freight
general
CONSUMER
«'
—
imports
Wholesale
Total
Jan.
\;
26,012,000
17,000
>
Retail
382,000
DUN &
216,304,000
26,999,000
■
•
7,015,000
•
(barrels)-
output
October:
of
(Millions
30,494,000
: 446,000
14,167,000
"13,565,000
241,378,000
205,700,000
(barrels)-—,
output
(barrels)__
stocks
MERCE
OF
14,308,000
231,733,000
214,248,000
;
oil
Manufacturing
>
9
241,264,000
*
.
1—
all
BUSINESS
85,389,000
9,060,000
246
113
2
Jan.
Export
MOODY'S
,'.
'.
*
refinery at—
Lead (New York) at—
—
Lead CSt.> Louis) at
:
JZinc (delivered) at
Zinc (East St. Louis) at
Aluminum (primary pig. 99.5% )
^.Straits tin (New York) at—
331,000
.
(barrels)—(barrels)
consumption- domestic and
mated
QUOTATIONS):
-
6,850,000
-
131,400
INSTITUTE—Month
AMERICAN TRUCKING ASSOCIATION, INC.—
$259,989,000
154,800,000
91,500
112,600''
production (barrels of 42 gal-.
crude
carriers
V;
-
"
imports
Month
89,400,000
41,300,000
5
5
•
435,221
88,700,000
7
Jan.
Jan.
-
524,583
102,300,000
Jan.
ton)
'.
steel (per gross ton)-—:
PRICES (E, & M. J.
Electrolytic, copper— .Domestic refinery at
468,219
$293,700,000
101,200,000
130,200,000
88,900,000
5
METAL
649,639
$191,000,000
7
5,473,600
&
(barrels)
$231,400,000
Jan.
Jan.
Aaa
501,764
5,605,000
5,409,000
gasoline
Indicated
P!''j:,rad .y'v,
320,000
Pig iron (per gross
Scrap
446,903
•
5,500,500
product
Increase
COMPOSITE PRICES:
steel (per lb.)
Finished
Refined
151,441,000
468,752
Ago
5,818,500
output
oil
Crude
49,938,000
7,325,000
AVERAGE=1«0*
Natural
148,000,000
483,012
Month
;
each)
Domestic
7,056,000
;
6,713,000
Year
Month
therms)
(M therms)—
mixed gas sales (M therms)-
of October:
14,593,000
13,168,000
Latest
Previous
5,931,100
Total domestic
Ions
of that date:
are as
(M
PETROLEUM
AMERICAN
'
6,951,000
2
FAILURES (COMMERCIAL AND INDUSTRIAL)
BRADSTREET, INC.—————*
AGE
13,206,000
v
7,117,000
„
Jan.
Electric output
IRON
7,122,335
7,026,525
29,613,000
Jan. 2
STORE. SALES INDEX—FEDERAL RESERVE '
ELECTRIC INSTITUTE:
(in 000 kwh.)——
EDISON
7,108,875
J
,
,
sales
sales
gas
r
of'
month
J,
'
t
of quotations,
cases
•
gas
the
either
for
thef
'
" '
are
f
ASSOCIATION—F01
Manufact'd
COAL
DEPARTMENT
SYSTEM—1947-49
Total
2,111,000
2,726,000
I"
OUTPUT (U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)——
Pennsylvania anthracite (tons)—.
in
or,
GAS
Benzol
'
•
Federal
AMERICAN
Natural
Jan. 7
— Jan.. 7
Jan. 7
—:
construction
construction—
municipal——
Private
"
"
v
construction
Total U, S.
"2,715,000
.r
,
J
74.6
96.3
,
Intercity
ENGINEERING
1■'
' J-. ' '
—
"95.3
§2,715,000
ASSOCIATION Of AMERICAN RAILROADS:
Revenue freight loaded (number of cars)-:
Jan. 2
Revenue freight received from connections (no. of cars)—Jan.
2
ENGINEERING
Ago
4
that date,
on
October:
l
Jan: 1
Jan. l
jan. V j,
Kerosene
CIVIL
Year
Ago
7,067,825
1
l
1
l
i
l
to stills—daily average
Crude runs
Month
Week
><95.3
operations (per cent, capacity)
jan. i6
Equivalent to—• '
■'J
' i;:1"
-V
K,..,'Steel ingots and castings (net tons)*—
Jan. 16
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily average (bbls. of
Indicated Steel
42
Previous
Week
IRON AND STEEL INSTITUTE:
month ended
or
41
production and other figures for
cover
Dates shown in first column
month available.
or
: '
•
week
AMERICAN
(193)
The Commercial and Financial Chronicle
...
.
103.5
___,
135.4
135.3
132.6
109.4
109.4
107.7
109.1
108.9
108.5
100.9
101.3
139.2
138.5
93.3
92.9
149.0
148.5
144.5
137.9-
137.4
133.6
195.9
191.1
operation
'
DAILY AVERAGES:
BOND YIELD
MOODY'S
*
-Jan. 12
U. S. Government Bonds.
Jan. 12
Average corporate
Aaa
:
Aa
—
t
A
Baa
■
.Railroad
..
Public
■
-
.
Utilities
Group——I
Industrials Group
Orders received
Production
(tons)
■
NV
—
—
s.
AVERAGE—10«_
—
period
OIL. PAINT AND DRUG REPORTER
■
^
DecDec.
DecDec.
—
(tons)
Percentage of activity—
.
Unfilled orders (tons) at end of
1949
1V "
ASSOCIATION:
NATIONAL PAPERBOARD
4.60
4.61
5.33
:
4.86
•
4.22
4.91
4,43
5.26
4.85
5.04
4.53
4.85
4.41
Medical
4.26
Personal
;
4.71
395.1
>
4*"
31
31
""221,382
197,621
""138.521
251,626
»»44
78
*•424,821
345,194
Vy-'-"
31
31
:
:
365,380
275,752
310,853
■:■•■■:%
care
recreation
services
-
"111.70
•
Kilowatt-hour
from
sales
*
ACCOUNT OF MEMAND SPECIALISTS
FOR
TRANSACTIONS
;
.
-
Short sales
——
Other sales ——
•
Total
——————
—
sales':
1.'—>
———————.—
transactions*initiated off.the floor-
Other
^ Total purchases.
Short
sales
Other
sales
3
Total
Other
Jec- J®
Total
Dec. 18
on
round-lot
the floor—
*
'
;
for/-atcount
:
of,members-*
—
(customers'
V;
<
•.
.
•
Customers'n short sales——.
'
Customers'- other sales
Dollar
Short
FOR
Total
*
-
sales
34,100
Other
sales
-
881,108
Policy
788,220
792.482.
895,550
895,972
'
'
.
-
•
^
902,500
240,063 *
191,780
1,073,473'-
915,514
4,249,600
4,109;408
'537,840
4,080,380
3.727,433
3,611,424
4,420,836
4,316,734
-
1
693,403
:
705,310
\6a
1,916,269
.$97,462,821
1,706,960
;
$101,064,443
1,644,026
1,821,340
•
1,700,080
582,164,421
-1,755,661
1,633.355
$85,326,989
$81,686,253
.
'
Cotton
:
Meat
596,790
Outstanding—
640,860
738,900
618,110
DeL> 1B
.
All
•
—
U. S. DEP1.
at
1~
any.
Total
583,160
610.050
833.500
871,810
16,097,920
16,681,080
17,059.770
17,098.380
19,203,650
17,669,820
17,931,880
19,675,460
commodixles-w—
T" '
—
"• Farm
-
products—
'——
Processed' foods—
118.8
119.0
119.3
85.1
85.0
85.7
91.6
105.2
104.8
118.9
jan
..
——
89.1
—
128.6
•
AI)
commodities
other
"'■♦■Revised• llgure.
as
of
Jan.
1,-19^° as
than farm
108.4
89.4
102.1
128.5
127.3
Monthly investment Plan,
not
owned
1
under
UNITED
face
total
f
Zinc, sold oaoeuv-rea
1959.
s
:;e;
.
.
v
j
272
329
161
202
-
•
$295,000,000
$288,000,000
290,588,827
127,146
124,471
108,777
$290,924,917
$290,713,299
$283,031,201
411,673
412,700
debt obli¬
of
'
debt limitation.
obligations
GROSS DEBT
issuable
_i.l
>
-
424,227
$290,300,590
$282,606,973
4,486,755
4,699,409
5,393,026
$290,924,917
$290,713,299
$283,031,201
5,583,376
4,968,027
4,961,203
$285,341,541
3.300%
$285,745,272
$278,069,99B
$290,513,244
authorityi.——
282,922,423"
290,797,771
.
outstanding
amount
STATES
public
,
-
DIRECT AND
*
GUARANTEED—(000's omitted):
As
of
31
funds
Dec.
General
.-1*
balance'—"*—
**w*—
—,
Net.
debt.
annual
Computed
—
rate—r_-----
1959
ehcled" Dec. 31,.
"
■
the
—.
outstanding
above
by
_;
and foods
ipriiqe Western
»121
498
273
•,
^
public debt and guaranteed
gations not subject to
991.000
Digitized for one-half
FRASER
pound,-"".Fivq! da^;s
cent'a
105.5
88.9
128.5
1
lipased on new annual capacity of 147,633,670 tons
barrels of foreign cru 'e runs ♦Number of orders not reported since introduction of
basis of 148.570,970 ;tons
«K&ihHt Jan-" I;'1959
*n deliv 'red basis at centers Where freight-from- East .St.^oui^ exceeds
includes
obligations
obligations
Balance
/
■
.
$295,000,000
debt—_
>
Deduct—other
Grand
,
•
;
'
public
gross
Treasury
273
143
201
- - . 241
:.1. \ " 210
- .
235 "
" "
.
.___*■
time,
-234
.
138
v
247
218
.V
(000's
31
Dec.
Guaranteed
OF
100):
.
of
.
291
.
230 s ,-'.
'
DEBT LIMITATION
596,790
i
-—:—'
'
lf>
'
:■■■«
' 241
274
149
203
273
139
-
-
——
GOVT. STATUTORY
S.
.
275
Wool
U.
;
279
animals
Poultry and eggs————
Total grpss
g??*
=
243
Dairy products;**'————
"
n„_
.I*
'
.____
I
>
• -
-214
208
147
505
248
■
...
*165
-504
:
.
Livestock
425,630
425,630
''
550,650
Tobacco
: V
--'
199
.—216
.
f
219
228
——______^—.—
'1*
.t 235,,,r
■*.
206
^
.
:
>
150
-
;
260
■
-
r—-
grains and hay_
Food grains
Feed,
476,610
•
•,
464,070
230
216
.;
$245,100,000
.
,
l
L**
Commercial-vegetables,-fresh___-_jLi.
•
9,354
$93,735,024
;.v
\ *. Iv ' \ 1
1—':
"Crops
}
\
V
BY FARMERS — INDEX
NUMBER —U.
S.
DEPT. OF AGRICULTURE—1910-1914 = 100—As
of Nov. 15:
All farm products—
1.811,986
,
$594,000,000
$252,100,000
omitted$251,700,000
(000's
31
RECEIVED-
omitted):
Total face amount that may be outstanding
476,610
•-
N.
—.
_—_—,
CIRCULATION—TREASURY DEPT.
Oct.
—As
"
Dec- r®
Jec. 10
:
10,675
6,629
6,880
To
1,832,249
$107,754,083
1,762.290"
-
464,070
of shares
of
PRICES
•
1,959,235
%
—"
—---,
$604,500,000 '$567,800,000
1,107,294
1,313,536
'
$245,200,000 $244,400,000
44,200,000
60,400,000
9,300,000
9,900,000
53,400,000
52,300,000
53,900,000
127,100,000
112,500,000' 120,200,000
114,800,000"
104,300,000
105,200,000
9,400,000
—————_
dividends
MONEY IN
'
18
—
LABORS- (1947-49
56,014,065
46,300,000
Disability payments
Annuity payments
*
*
Commodity Group—
57,223,.930
.
$259,500,000
—
40,400
540,560
1,005,310
103,490
1,802,745
592,607,588
,
sales—
WHOLESALE PRICES, NEW SERIES
48,337,741
$821,511,000
.
of October;
500,160
■>
STOCK TRANSACTIONS
MEMBERS (SHARES):
OF
54,078,612
$921,510,000
57,301,024
31 — '
Surrender -values
-
-—
ACCOUNT
round-lot
Short
127.3
$891,122,000
endowments
Oil-bearing crops
^
SALES ON THE
131.6
52,060,775
-
benefits
Matured
Potatoes
'ec-
Total sales
-
'I
i
-107,330
"
,
562,100
Death
EXCHANGE AND ROUND-LOT
.
117.0
131.6
BENEFIT PAYMENTS TO
— INSTITUTE
OF LIFE
Fruit
v
Other sales.
*
Round-lot purchases bjr. dealers—Number
,
379,500
437;940
3,973,152
Dec. 18
TOTAL ROUND-LOT STOCK
2,668,880
403,840
3,618,670
:.
^
2,195,750
2,669,360
25,600
Dec. 18
r!
sales
2,250,120
431,440
3,143,560
sales
Round-lot sales by dealers—* *
: :
:
Number of shares—Total sales-l--—
;
C
405,840
Dec. 18
1
value
*
419,240
446.310 :
3,435,312
(customers' sales)—
orders—Customers' total
119.7
customers—Month of
customers at Oct.
ultimate
INSURANCE
As
826,595
475,110
——Dec. 18
——
,
■y
3,736,315
—
value
Odd-lot purchases by dealers
32,320
»
304,280
336,600
Dec. 18
COMMISSION
purchases)—t
—
by-dealers
Number of shares
■
Dec. 18
DEALERS, AND SPECIALISTS ON
EXCHANGE
SECURITIES EXCHANGE
sales
380,040
;.
2,785,000
473,130
-2,695,570
.
ACCOUNT OF ODDN. Y. STOCK
LOT
of
%
Dec.
-
STOCK TRANSACTIONS ROR ODD-LOT
-Number
2,645,740 V
'
_
—
transactions
'Other.sales —1
•Dollar
2,236.990
2,386,520
D60- *8
—————- Dec. 18
—-Dec. 18
18
—
—
v
Total purchases———
Short sales Vr---
Odd-lot
2,051,060
■
*_—
•*'
-
408,750
£ec-
1—*
sales
Other sales
Total, sales
.
395,460
Dec. 18
Initiated
-
.
2,781,990
■
—
:
2,529,380
Dec. 18
sales
transactions
Short
,
Dec. 18
Dec. 18
—
iTotaL' purchases—
r
^
—Dec.. 18.
"
f
(000's omftted)
INSURANCE—Month
which registered—
specialists in stocks in
Total purchases-. ,:
1
of
129.1
120.0
POLICYHOLDERS
BERS, EXCEPT ODD-LOT DEALERS
:
Transactions
147.0
132.5
ultimate consumers—
to
ultimate
'
ROUND-LOT
152.5
132.7"
,
___——
of
Number
LIFE
92.3
—
and
October
of
Month
Revenue
110.38
'
:ll'1.67
130.3
153.0
_<
and
goods
-
100.6
-
ELECTRIC INSTITUTE—
EDISON
405.256
196.0
-—'
-
October
111.6I
,anv
1
i
care
Reading
155
;■
'
PubliC
320,797
.
91
438,833
•
;
Private
384.2
/
—
apparel
5.09
•.../■
-
—
girls'
and
Transportation
Other
PRICE INDEX—
———.
Other
4.89
376.4
377.5
Women's
Footwear
4.88
boys'
and
4.09
4.72
%
Men's
4.40
4.77
4.73
4.75
0
4.57
:
5.32
•
5.07
4.90
Jan 12
INDEX——
COMMODITY
MOODY'S
-—
4.90
4.91
Jan. 12
Jan-12
Jan. 12
Group
4.64
4.91
4.78
Jan. 12
Jan. 12
t
——-
Jan. 12
Jan. 12
4.51
3.84
4.39
\
"Revised" figure. *
v" " ' ' *
J
3.260%
-
'
I»
Sa-* •
2.689%
it
■. -
42
(194)
The Commercial and Financial Chronicle,
tuated
substantially,
there
changes in the
issue yields. Furthermore, there is no definite relationship
between
new
issue
yields and "going yields" as ex-
Continued from page 3
pressed by averages
that
tfye new issue
ning
serving recent yields of Treasury
issues with varying maturities
from one to K
tain
nptfd tT+ilfTom!f*Lc w!th
at^
the shorter
tu t s.
out an analysis, this would indi-
most
$10 billion since the beginof 1959.
During the same
period of 1958, the increase was
only about $300 million. To ob-
y^,
lendable
funds, banks sold
government securities. A decline
of
$7 billion in their government
compared"with
than
more
period.
^
ket
for
in
The pressure
short-term
on
is
during
the
securities.
1958
expect,
mar-
paradox
due
is
influencing
both
influencing
the
Shorter-term yields are high because of a "congested-condition
of
Meanwhile
known
and
expenditures for plant and
equipment by business in 1959
will be up an estimated 2.8 billion.
that
means
5%
merchandise,
military
expenditures, government grants and other
capital
outflow
have
exceeded
our
receipts
other
of
from
sources.
Actually,
merchandise
ceed
of
exports
imports.
exports
continue
to
ex-
and other factors
have created the imbalance.
result has
reduction
£^J"er.
been
Curred.
the
,
of
some
rate
It
has
been
t
the
of increase
in
the
to'
causes
so
sharply.
utility bonds are currently the
highest since 1934 but still considerably lower than in earlier
The prime loan rate
since last September is well
the rate of the
early 1930's
the demand for
money was
years.
company.
terest rates
While
in-
are
rent
is
attributable to the
52% income tax rate
cur-
com-
pared with a rate of less than
14% in 1934. We are now
so accustomed to
difficult to remember
that it was not until 1940
that the
corporate rate exceeded 20%.
Since
entire
our
economy, as
money costs, is influenced
by the* capital needs of the Federal Government
the
nature
nf
Government, the
nature
well
as
of
the
debt
of
the
government
the interest rates
on
this debt
fundamental importance.
marketable
ment
close
debt
totaled
of
billion
earlier.
of
$178
fiscal
the
and
are
The
govern-
billion
at
the
1959, about $28
than, five years
higher
The government has
pri-
t5„'J de!!ci?s
This
lnis
m>Hcy
poncy
short-term
is
^
are
since
by creating deposits
Treasury, thereby adding
directly to spendable funds.
As
a
consequence* the government
finds itself in the
difficult
now
position
,
v.
of
having
over
Uhmarketable
debt
one
40%
of
maturin®
year-
The
present
average
rate on the
government
becomes
the debt ratio of the electric utility industry has been
increasing
fairly rapidly.
that
the
We do not believe
facts
actually
sold
approximately $11.4 billion of long-term
debt securities. This amounted to
*>*>%
of total
total new
new
w>% of
money financ-
JPS by the industry in those
years,
of this
mag-
Despite bond
issues
nitu.de, the debt
segment of total
capitalization
only
rose
from
49.1% at the end of 1948 to 52.4%
*n
Meanwhile
the
pre-
fe™ed
sto^k component of capitalization declined by an amount
-
mcrease ln debt
Preferred Stocks Costs
-
been
to
a
normal
year
preferred
with
stock
Ordinarily, the
cost of
even
respect
financings,
raising
new
preferred stock money will trend
with bond interest
rates, with a
spread to reflect the difference in
Before considering extraor-
risk.
dinary factors
preferred stock
-
a
now
bearing
costs,
let's
on
first
look at the record.
-
-
•
-
-
pension
invest-
plan
insurance
,
for
re-
com-
*
example of the impact.
October, NorthCompany sold a
preferred stock issue to the public
keting
5%
a
between
small
ferent
not
note.
the
when
two
spread
unusually
considering
the difinvolved.
Two
when money was
earlier,
tight, a Northern Natural
as
preferred was
basis.
Both
similar
We
The
was
sold
sinking
have
on
issues
also
5.80%
a
contained
fund provisions,
observed quite a
narrowing in the yield spread between
bond
averages.
and
preferred
stock
*
y
In
estimating near future preferred stock financing
costs, it is
desirable to determine the
relative values of
dividend and
interest yields to life insurance
companies.
now
„
'.
.
f
r,
_
..
,
^osl 01 common Stock Capital
The outlook for
common
capital costs is a subject
entitled to a separate
stock
really
presenta-
tion. It should give
consideration
to
general
stock
market
trends,
shifting emotions and nhilosonhies
philosophies
of investors, relative costs
among
industries and
different types of
securities, and the nature of the
flow of funds into
equity securities. While it is
impossible to
reach
some
all
of
these
matters
at
electric
a
new
It
P°mt
mon
stock
costs.
bonds has
continuously narrowed
until 1958 when
this position
In
fact
the
between
'the
price ratio and bond
spread
present
earnings-
vield<Tii
-
think
that
close,
the
5<7^ October
aW5aSvT?Tt^
5-year note.., In
a
a
ob-
©verages
of
seasoned
preferred
!t0Cks s%°™s that while yields
Seasoned
issues'
have
not
on
flue-
.
Where
does
this
dividends,
bond-stock
of
the
working
June
draws
in
some
of
good
our
the
we
to
a
will
be
position
of
industrial
we
of
to
expect
the
budget., message
forecast at least
for
the
1961.
the
fiscal
President's
this
a
month
small
to
surplus
ended
year
June
:.
We
believe
that
maturity. If
compiled
was
ments
made
for
with
aver-
it
adiust-
will
this
relieve
shorter-term
stock
splits and
st0ck dividends. The record
shows
that the market
performance of
is
accomplished
the
pressure
maturities.
on
While
it
temporarily
may
increase com¬
longer-term invest¬
ment funds, greater
flexibility on
the part of the
Treasury should
petition
this group since 1950 was substantially better than representa-
for
tive averages of either industrial
be
or
inflationary pressures. In addition,
the relatively high cost of
money
utility stocks. A rise
occurred
on
a
N
"growth"
bl
larger
a
most
gain
this
average
dividualW cf
in
our
Deen individually
»•
iecieaJust how good this
se~
performance
has been is shown by the following figures. Since 1950 the avera§6 of these
companies had a
compounded
crease of
annual
14%% in
market
of
in-
stock
common
stock
averages.
With
these
increases, is it really suprising to
have
lower
yields on common
stocks than bonds? As
a caution-
note, it should be remembered
than half of
more
future
of
be
policies.
impressive
corrective
being taken by the gov¬
to improve the balance
Certain
steps
are
ernment
of
payments.
be-
This is encouraging
though the problem
solved
in
willingness
the
crease
of
investors
rate
of
to
in¬
appraisal
of
earnings—in other words, from
rise
a
con-
tinue
is
indefinitely. Surely
major
the
future
frequently
chologv
of
tries
to
remove
this
(2) An increasing effort to have
participation by European
in loans to underdevel¬
countries
oped countries.
(3) A new requirement of The
Development
Loan
Fund,
and
possibly of the I. C. A., that loans
u
reality,
gold is
and
ness
nor¬
American goods.
on
the
more
recovery
here.
past outflow of
evidence of strength
abroad than weak¬
a
changing
for
nsv-
of
Outlook
like
Although
a
.
a
to
pre-
hazar-
minimum
of
new
during the
money
this,
that if rate
we
are
increases
sively applied for
as
I960
con
are
aggres
needed, the
future growth of the industry indicated by these figures will con¬
tinue
to
make
utility
securities
attractive.
wu
^
1
*
«
both long-term
funds
? should continue at a very
^vel. Expenditures by busi-
~
*
Based
before
on
the
Conference
York
Renters'build-up
? ?' Certam financings
^
.cause some
con^estlons
talk
a
Thirtieth
of
Ebasco
by
Schlesinger
Annual
Executive
Services
Inc.,
New
City.
and. equipment
*
d
T >ncreasing rate.
•lr?1pact °? the steel strike
—1..
temporary
on the calendar. Con-
sequently, it is difficult to forsee
anything
investor-own
industry and $28 bill/on
gas
industry. This i
the
-
v.^ 4^f
W
H
i ln
^
the
cates the need for large am'
should
bit.
es¬
for
Despite
I
with
Looking further ahead during
the next decade, construction ex
penditures of $45 billion are
timated
occupation, I want to give
views
nvfSSil°l
™
underdeveloped countries
In
electric
to
as
point
ahead
hedging.
1?
coun¬
restric¬
more
of
one
V
Jj
f„ 1
import
tions.
imponderables
investors
Conclusion
At
not
future.
in
the
price-earnings ratio,
It does not appear
reasonable to
helieve that
believe
that thio
this tron/i
trend «riii
will
the
may
near
steps include:
;
(1) Pressure on European
to
the
the
These
mally be spent
from
rates.
of sound credit
nance
from
stemmed
upon
interested im com¬
inflation and the mainte¬
price
1959
may,
impact
interest
primarily
bating
the
to
issue,
Reserve may be expected to
increase during the period
1950
retard
Through it all, however, the Fed¬
.
categories to the performance of
recognize^ industrial or utility
that
the
would
considerations
substantial
a
even
rate
price per share, 7% in
dividends per share, and
6V^% in
earnings per share. This record
has been superior in all three
ary
have
it
campaign
a
political
eral
More
since
become
and
so-called
nrnh-
helpful
may
carefully
imnrcssive
Turks
thP
0ver
basis,
industrials would
is
wla
a
of
eroun
show
record
257%
and stock divi-
while
selected
of
share
per
adjusted for splits
dends
this
the fairest
indicators of such costs
are future earnings arid
be
hope. VActually,
as
much
Seminole Securities
PITTSBURGH, Pa.
^Silberberg is
firm
comPrrer'E!th'%;EreseUnS
impact
government
investment
net about
ket
the
very
able
companies
with
at
10-year
market
price
a
age
not
too different from
the spread between bond and
stock yields
vields of
a ana SU)Ck
of
this
Ebasco's Annual Executives' Con-
was
reversed.
It
ference in 1958. A weighted
7°U]d
*>e dous
topic, our
The historical
spread between higher vielding
common stocks
and, lower yielding
.
year.
Congress will
again be asked to raise the 4Y4%
interest ceiling on government
is¬
sues
with
a
5-year and longer
least
this
com-
of
record which were represented at
dictions at best constitute
very popular
of bond and
nf
common
consists
look
a
However,
against
.
P°rAtant subject.
consider
in¬
contrasted
$12.5 billion defi¬
steel strike may now
stnrkV
time, I do want to give some of
our
thoughts on this very im-
aE comparison
throughout the
with the recent
cit.
av®*"-
conclusions,
deal
with
are
encouraging to hope for
balanced Federal budget for
the
year ended next June
reriormance
same
mar-
qualities
years
to
Nineteen fifty-nine has not
the
It will
upon
on
a
5.60% basis.
At the
time the U. S.
Treasury was
years
utilities
on
life
point. Last
Natural Gas
ern
this viewpoint or that the
present
ratio is high. During the 10
electric
depend
this
this
support
from 1949 to 1958 investor-owned
insurance
development upon relative financing costs will
illustrate
Since
point that deserves attention.
It
has occasionally been stated that
take
interest
of
reflect
leaving the subject of
money,
there
is
another
of
.
Before
debt
income
paaies'
A recent
money
issues
will
interest
to
impact of the
particular
any
serves
previ-
tight.
seasoned
on
exact
eventual tax exemption of
ment
seasoned
general
compared
The
on
provides
occasional sales of small
blocks contrasted with substantial amounts' of new offerings,
this sPrea^ is only natural. This
was Particularly in evidence in
1953 and 1957» and the same
situation also prevails currently,
purchased
large quantities by commercial
banks.
Payment to the govern-
for the
the
on
or
as
uf
-he
groUp annu"y
busl„essiCOmia")','S
The law
only
in
ment is made
when
aPPr°aching the
inflatio^v^lnrP
.inflationary
issues
d~
offer-
new
these
companies
has
premium on dividend
a
nature of its investments.
aIso be influenced by the extent
of the record of
review
outstanding
yields
high taxes that it is
sometimes
a
market
when
small,
currently at their
highest level since 1934, the effective rate, after Federal
income
taxes, is now less than half the
figure of 25 years ago. This natu-
rally
ously
bonds
above
which is of major
significance to
issuing
„
iTtiiitv
p
'
average.
company
T!"EJa,e(nneqUr
bonds otutility com-
is the spread between
ing yields and yields
at 5%
Actually in viewing the indicated cost of debt
money it is the
after-tax
"out - of - pocket"
cost
the
o
onnpriftP
/
compiled
f0r
'60
considering
15
jaw
the past 10 years may be of
value.
The record, of course,
shows the present relatively high
level of yields. Of more interest
public
on
market.
theless,
unusual
aggregate in-
Yields
MnrpAvAr
The
in-
in
the- friends who look hard for yearend adjustments to
composition of these averages,
improve their
picture. Moreover, it is reason¬
without
stock
inC0me.
pames is well recognized. Never-
debtedness that made money costs
rise
w
industrial and utility stock
a§es
mining
income
income.
P?Lthp
comparing the nSfnrm^pt
pei for
ance
by
later
a
1e5Jj e
Income
investment
continue
^he most infomctf investing
^"fjfm^tocks^ ConleauenUv
whether
the u*3innarises
qiaestion aris.es 1vh
have
piaced
as a capital gam
informpd
rates
had been
in-
monv
.
generally
aggregate indebtedness should
not
^t^owever? despite
JE,
is
by various factors. The
recent sharp rate of
increase of
^ d" ^duE'stock Ever¬
companies.
A new and
complicated formula for detertaxable
terest
thS
of
condition
portions
clear, though
earlier
It
fluenced
industrial stocks.
comparison
a
To
come
of the
The impact of all of these fac-
tight money and rising interest
rates.
longer-
by
investments for life in-
as
is
entire
of
Company
of
during
year.
supply.
thoughts concerning the
possibility of somewhat lower in¬
doing
with
the
Our
in
investing
surance
issue
Senior Money Costs
are
stocks
Jf™,
ic
mented
financing
enactment
been
contrasted
performance
Tax Act of 1959, renewed interest
been
created
in
preferred
"gue°fat4^4Jc
at parwouldprobablyrew^1°Ie°™u'ablv^re
hiper
interest rate than
present
going yiera.
system.
These
the
Since
Insurance
not
half!
.
that money in 1960 will
be in tight
This viewpoint is sometimes docu-
has
clear that it would be
is
b°"d at
a
quire a
_
Life
have
it
investors
*
the better
performance of the former, many
the
money
Sometimes
that
during the first
*
•
existing
evi-
miJ
money
triguing
development
involving
preferred stock financing has oc-
more
portion
ordinary
ar?
The
a
factor tending to reduce the
lendmg capacity of our banking
of
a
new
additional
faring.
1 when
the electric utility industry.
More recently a new and in-
currently impossible for the gov-
that
continuing
the supply of
gold,
in
of
prices
.
Thus it
Thus, it is grants
money
net
discount
term maturities,
return is taxable
and
of total
is
utilities
by
"genuine
investors who are not
in and out of: the market so freQuently. Furthermore, due to the
for
payment
For
year.
con-
of
this
rates
Nevertheless, it is our view that
by the end of 1960, interest
rates
may be easier than the
evidence
more
J,
maintained
1959, it is estimated that
preferreds will represent about
dates to reinvest the proceeds in
international balance of payments
higher yielding paper. Longerof the United States. A $4 billion
term issues are at lower yields
deficit is now estimated for 1959.' because they are held
This
that
terest
of 1960.
requires a determination of
how an investor in utility
st0cks
totaled
new
here?
relationship
reasonable
some
obtain
stock
They
of .the
little
a
permit
just
year
amount of short-term obligations. At the same time, banks
anc* others have been liquidating
holdings with similar maturity
by
4%
.
raised
tial
Of special concern has been the
recent further deterioration of the
marketed.
were
if
see
"To
ferred^has-been
to
Thursday, January 14, 1960
,
dence
"dry up.'
In 1957, for
mstance, when money costs rose,
instance,
only 10 electric preferred issues
that presently exists. The Treas"ry has been issuing a substan-
con-
yields are
expected
be
preferred
from
go
historical
elusions.
years about 12%
of
the
can
than
money. When money is tight the
to
when
more
consisted
tne( about
short- and long-term maturities.
to
e past
the
coin
oc-
credit continues to increase
sumer
mis
factors
factors
is
relationship
Will
Let's
a period of rising money costs.
In
might
we
This
other
yield
.
return? Why should investors prefer lower yielding stocks to bonds?
new money raised by inVestor-owned
electric
utilities
is
curve
it
and
selling
was
this yield
°Me ofwW
.
time
a
the
Therefore
of
new
Qf the
^J°"S Pe-
government
evident,
government
these
increase"
an
billion
securities
curred
$6
wide
individual
oe in
for* shorted-"loans6
than
been
higher.
^te that investors are prepared
to lend theirmoney
n?nein^roft^nnyIarhe T^
of
too
Impact of Tight Money on
Utility Financing Costs
have
.
other
than
higher
in-
Akiba
busihess
under
the
of Seminole Securities
name
Co. Offices
Bessemer
—
noy conducting his
are/maintained
Building, and
is located at
ington, D. C.
1^27
K
a
in
the
branch
Street, Wash¬
..
Number 5916
191
Volume
..
.
The Commercial and Financial Chronicle
.
STATE OF TRADE AND INDUSTRY
rate
(195)
12,500
was
strength
of
October ended with
averaging 18,800
Continued from page 5
/
n
Material handling equipment,
The reporting
there
is a lot of talk about no up 20%..
ire increase before then.
; Joining and assembly equip- 361,700 domestic
increase before then.
not
not necessarily
necessarily the
the case,
case.
magazine
says.
Steel
compai,v,rv-,o/lio+o nnct infrpacpc
the
immediate cost increases
nies face
immediate boosts in fringe
due to
benefits.
.•
ment
meill, up
st^el
applied.
not necessarily be.
"across the board" when
they do
.
,
4o/<?.
•
m^nt ^p §2%
mg equlp"
equipment,
v
brakes,
press
in
;./Z/++v..
y
Woe
a
^
nast.
has been tight,
cfmnnrT
pp
tn
thp
is strong
market
nvp^pnt
fhp
a
And
dn
Avi«tpH
enough to s
nrices
such
P
for
durable
consumer
goods such as automobiles and
appliances.
One
automaker
has
already
record that it .wpuld inprices if the price of
steel goes up. Others would probably follow such-a lead. However,
one event could keep higher maits
crease
costs
from
model
cars.
terial
1960
belieVes
showing up -in
If there is no
price increase until midit's unlikely automakers
would boost prices
so
near the
end of their model year. The increase would then be tacked onto
steel
year's cars, "Iron Age'Vsays.
Settlement with the major steel
ais0
next
But
Selective
/
contained
provisions for applying economic
contract ret-
benefits of
the
roactively.
H 0 w e'v e r,
contract
new
th£
companies /have
Instead,
payment
health
As
of
life,
insurance
an
the
new
industry
in
the
into
raises
will
units
575,000
expected
is
is
heaviest
turnout
Specialty
said
Ward's
counted
for
units
>22%
or
compact
of
last
to
in¬
dustry output. This compares with
nurr/may
Prices
wire; nails, and fence
Hiked
21% of last week's .passenger
discourage increases in
steel.
stainless
because
of
barbed
can
not be
foreign
enced
by
the
estimated
will be influ¬
blies.
settlement as
steel
tain
The scrap
to
a
industry expects 1960
good year, but it continues
be concerned
to
would
the
to
about the down-
units.
,
'
purchased scrap brought
Carloadings
For example, the
Above
totaled
scattered
since
Market sen-
cars,
since
week
an¬
increase of
an
14,793 cars or 3.2% above the
corresponding week in 1959, and
an increase of 10,728 cars or 2.3%
above the corresponding week in
14,260
were
the
cars
or
3.0%
above
preceding week.
erally,
Electric Output
5.6% Above
1959 Week
v
The
-
5,
when
was
than
Steelmakers'
efforts
amount
hhldf'/
a
&16
0f trucksout-of-the-way
?nd trailers.
bteel
buyers m
.
places
can
140
V/'
Last week, steelmakers
c7n' q7n
Lumber
.
A month
ago
Trade
weekly produc-
above
of electric
energy
cansritv
^
uq
at, 95%
Operated
of
^n nrrn
'
^
f
'
'
,
,
u
.
,
is based
for
/+
on
1947-49.
:
aver-
37-Month
tor
capitahy equipment signalsr a- Auto Industry Set for' 3"
busy
and profitable — year+?+7 Production High
.
makers of equipment used
the
Over 1959 Week
shipments of 461 mills
Barometer
were
Lumber
11.4%
production during the holi¬
day week ended Jan. 2, 1960, and
28.1% higher than in the same
week in 1959. In the same week
new
orders of these mills were
tion) was *169.7% and production
the in- 2,726,000 tons. A year ago the acdustry's 1960 capacity; producing tual weekly production was placed
2,707,000 tons. The~1960 annual, at 2.111,000 tons, or *131.4%.
' /
their furnaces
by
reporting to the National
the operating rate
(based on 1947-49
production. Unfilled
reporting
mills
amounted to 39% of gross stocks.
For reporting softwood mills, un¬
filled orders were equivalent to 20
below
•orders
of
6.3%
by the auto industry backed up days' production
at the current
metalworking industries.-.,.,
pians for a 37-month production rate, and gross stocks were equiv¬
_MeMworking plans to order High last week with reports of a alent to 47 days' production.
$5.65 billion worth of equipment:
surge in year-end retail sales-on
For the year-to-date, shipments
m
the coming 12 months — 24% both the new and used car fronts,
of reporting identical mills were
above last year's purchases, ac- Ward's Automotive Reports said,
below
production; new
0.6%
cording to a survey of metalworkThe statistical agency said Dec.
orders were 0.3% below produc¬
mg
companies by "Steel."
The 21-31 new car sales jumped 31.7% tion.
••/
bulk of the orders will be placed
above Dec. 11-20, with used car
Compared with
the previous
in
the first half.
For nine types buying up 8%, ending the drouth
(holiday) week ended Dec. 26,
of
equipment, here's how the dol- jn showroom traffic resulting
1959, production of reporting mills
lar volume of orders in the first
from the now settled steel dispute,
'.was 2.7% below; shipments were
half of I960-will
compare with
Ward's
said the 148,200 new 9.6%
above;
new
orders were
that of 1959's last half:
/,
cars
retaiied in the December 22.1% below. Compared with the
Steelmaking equipment, up close-out period was the highest corresponding week a year ago,
51%.
/ . ;/./:/
v
;
since late October. The resultant production of reporting mills was
Foundry equipment, up 10%.
average of 16,467 sales daily was 21.6 % above; 1 shipments ' were
for Machine
FRASER tools, up 18%. ' /
*31.7% above'Dec. 11-20 when the
Digitized
collected
by
1
!
■
i:
esti¬
Regional
Inc.
&
Dun
earlier levels by the follow¬
Atlantic
and
+4
+8;
to
Pacific
sum
+5
Central
South
South
raw
use.
dex.
the
of 31
foodstuffs and meat in general
It is
not
a
North
South
Atlantic
and
to
+7;
Central
Coast
+2
Central
East North
Central
+9;
to
West
+3
West
+6;
to
+1 to
+5.
general trend of food prices
at the
wholesale level.
Commodity
Wholesale
Index
Merrill Lynch Office
cost-of-living in¬
Its chief function is to show
ROCHESTER,
N.
Y.
Merrill
—
Lynch, Pierce, Fenner & Smith
Incorporated has opened a branch
office
at
31
Main
Street, East,
C.
under the direction of Edward
Price
Roth.
Down Appreciably
DIVIDEND NOTICES
hides, rubber, and steel
the
general
commodity
price level fell appreciably in the
latest week. The Daily Wholesale
Commodity Price Index, compiled
by Dun & Bradstreet, Inc., stood
at 273.63
(1930-32=100) on Jan.
11, compared with 275.91 a week
sugar,
scrap,
There
in
was
wheat
trade
Lumber
that capacity, is
•+•/
higher
according to spot
8%
to
4
total of the price per pound
Shipments Reflect 28.1%
Jump
for1 thTs" weekTfore-
percentage
east, based on
953%
-/■/
expect some trouble in
getting early deliveries.
distributed
95,3%
at
to, ship
this
ended
week
was
percentages:
New
England
+6 to +10; Middle
East
the
according to
ago,
year ago,
raisins.
represents
'.!
and Mountain
and hogs. Com¬
quoted lower were rye,
index
■'-.i
were
ing
REGULAR
QUARTERLY
DIVIDEND
electric light
earlier and 274.41 on the corre¬
and power industry for the week
ended Saturday, Jan. 9, was esti¬ sponding date a year ago.
Trading in most grains edged
mated at 14,308,000,000 kwh., ac¬
up slightly during the week, and
cording to the Edison Electric In¬
steel now that labor peace is as- beginning Jan.
4. JED. NOTE: stitute. Output was 883,000,000 prices finished fractionally
higher. Although volume in corn
sored, "Steel," the metalworking The strike in the steel industry kwh. above that of the previous
showed
little
change from the
weekly predicted.
\
which began July 15 was ended week's preliminary total of 13,prior week, offerings were lim¬
Demand from major users — by mutual agreement on Tuesday, 425,000,000 kwh. and
showed a ited and
prices moved higher.
automotive,
construction,, appli- ^an*
gain of 754,000,000 kwh., or 5.6% Limited
Actual output for the week besupplies helped rye prices
above that of the comparable 1959
ances, and containers — is strong
Jan.
4
was
climb moderately, but trading was
equa} to
and most steel users want to reweek. /,+•::
;+/+//Z/;::'
Rngnf
of the utilization
of "the
unchanged.
build stocks to normal levels.
a
oats, hams, butter, sugar, eggs and
The
and
year
steers
modities
,
'!,
mates varied from the comparable
peanuts,
cocoa,
the
Bradstreet,
in wholesale cost this
flour, corn, lard, coffee,
oil,
year
estimates
were
potatoes,
■)
'!
reports.
in
trade
it was
$6.24.
it
earlier
week
a
Wednesday
the lowest
was
1949
14,
ago*
year
a
were
in furniture,
Reflecting lower prices on lard,
Loadings in the week of Jan. 2,
the/union is asking, gen- Institute announced that the oplump sum payment of 8 erating rate of the steel companies
cents
an/ hour for each hour will average *169.0% of steel
worked under extensions; ^
capacity for the week beginning
•/.
"
/•
Jan. 11, 1960, equivalent to 2,715,Steelm/kers to Go 011 Production 000 tons of ingot and steel castings
Boom/With Labor Peace Assured (based on average weekly proSteelmakers will go on a pro- duction of 1947-49). These figures
duction spree in the first half and represent
no change from the
pour a record 70 million tons of
actual levels achieved in the week
Jan.
ap¬
The total dollar volume of retail
-
cottonseed
1958.
ments,
Nov.
On
to $5.70 from
earlier, and
level
current
$5.68.
Higher
7
1949.
the
below
level
lowest
fell 0.7%
week
a
The
the
to
November
8.7%
the Associa¬
Railroads
was
Inc.,
index
$5.74
Show 3.2% Gain
1959 Week
American
nounced. This
Steel Output Based on 95.3% of
Jan» 1> I960 Capacity
The American Iron and Steel
equivalent to these pay-
483,012
of
tion
by the steel labor peace,
programs.
index, compiled by Dun & Brad-
the
taken
over
accident
and
a
to
street,
and
up
most
television
sets, linens and women's Winter
apparel.
With
dealer
stocks a
little more plentiful, sales of new
passenger cars rose substantially
close
Loading of revenue freight for
week
ended
Jan.
2,
I960,-
production was 39% in 1956. It
is expected to drop to 27 % in 1960.
"Steel's"
price
composite
on
steelmaking scrap last week held
at $41.33 a gross ton.
+ 7/
1949
this
decline
con¬
week,
was
Shoppers
ago.
from
700,000
of
//' ;//>•'•/
about by technological advances
ratio of scrap consumption to steel
level
expected
Index
November
-/
the similar week
over
interested
week
work
which are almost cer¬
occur
during the month,
boost January production
preciably
1
clearance
stimulated
trade
!
Retail
Help
this
retail
brought the wholesale food price
assem¬
car
Saturday
23
Sales
buying
over-all
against 26
Price
Food
Since
fractional
A
its
schedules,
welL
to be
650,000-plus
Heavy
as
season
were
promotions
sumer
preceding week.
Lowest
the
continues
industry
failures
Wholesale
present daily production rate of
about 32,500 units,
Ward's said,
January output would result in an
producers
now;/ Z7'■//:+;,/v;:/>;+/'
Nonferrous prices
the
:;If
underselling American makers
are
car
production (112,113).
the
for
$100,000
above
week's
in
week
a
current
the
Jan. 5
TraditionalJ January
year
as
for
Trade Exceed Year Ago
of
ranged
the
held
$5,000,
same
prices were
Exports
of
week,
lower.
Clearance
sales
ac¬
Not/all steel products may be 24,197 units which accounted for
affected. Competition from alumi-
$5,-
to 216 from 200
steady at 26,
earlier, and
compared with 39 in the corre¬
sponding week of 1959. Liabilities
the
36,000
week's
of
trading on the New
Exchange expanded
estimated at
2,088,000 bales, compared with 1,243,000 bales in the comparable
period last season.
Z J
ualties, those involving liabilities
since
cars
estimated
an
rose
cotton
3l£ through
previous week, but re¬
noticeably below the 282
size last year. ; Small cas¬
of this
a
the
the
liabilities
with
more
mained
167,567 cars were assembled dur¬
ing the week ending Dec. 8, 1956.
Extra charges
or
in
Cotton
during
the
fractionally
down
was
contrast
prices,
hog
Although
York
comparable week of 1939.
Failures
inven¬
car
37-month high of 162,952
units for week ended Jan. 9. This
doesn't/provide for an timent, however, has been buoyed
immediate wage increase.
the
new
that
with
production
reach
early action,
jn steelmaking.
extensions.
of
items requiring a lot of production
manhours are prime candidates
producers,
Extension agreements
tories
car
when
1
goes
hfe increased.
may
trend in
contract
Dec.
wage/increase
producers hasn't solved air of the
labor problems of allof/the .steel
A significant; number
operated during the strike under
1959
According to Ward's passenger
"rqss, the
before/then.
COme
summer,
next
before
fjrst
on
gone
added,
under
effect.
tensively
It
mortality
Also,
from the prewar level of
/, 22%
Corp., 7.1% and S-P Corp., 2.6%.
sheet and strip,
—
of steel are used ex-
1958.
in the similar
and the 324 in
year
prices rose
to the
lard prices
and
week.
considerably
were
of last
week
by Ford Falcon sales at
level.
reported
lower than the 321
quarter, with the
86,700 being
of the Rambler
ended
Prices Wlll be raised eventually.
n^ely
These types
casualties
interviewed by "Steel" think steel
But 45
price . increases will undoubtedly come in pioducts in
shortest supply
fourth
Dun &
Despite this rise,
week,
Bradstreet, Inc.
<f worry about iI
out of 50 executives
?«**
1960>
board boosts in. quotations are un-
First
ceding
totaled 257,000 sales
cars
prices ad¬
Although lamb
dipped moderately from the prior
ended Jan. 7 from 226 in the pre¬
374,700 in November
in October. It said
in
rise
increased to 242 in the week
ures
car
com¬
000
"Steel"
•
new
December
ing was steady
fractionally.
In
Commercial and industrial fail¬
counted
slightly
above forecast. GM Corp., show¬
ing good strength, bit off 45.5%0
of Dec, 21-31 sales, Ford' Motor
30.6%, Chrysler Corp., 14.2% AM
mptaiworkin^
magazine
f
wC the market
the
99.3%
companies' will Praise Most metaiworkers think they'll
Hce*ve&
monthbefore experience a banner year with no
ices sevcici
serious shortages of steel or any
pi
with
526,700
featured
up
'
entire
Up Moderately
Business Failures
December volume of
up
.
and
,
compact
14%.
Presses
19%
and
u.
■
treating
for
pared
mspectlon equip
239
noari:„- -,nnA
Heat
hikes in
price
.However,
,
.
will
sales
% "%•'
This is
This
is
and
receipts dipped appreciably, buy¬
sales
car
service
built
v
price
new
day.
a
steers
vanced somewhat.
below.
16.9%
in
terest
28.1% above; and new orders were
daily
on
the
deliveries.
100,000
43
a
The Board of Directors has
declared this day
COMMON STOCK DIVIDEND
This is
lower
despite
Payable on February 15,1960
close
of business January
20,1960
Baldridge '
Milton C.
Secretary
January 7,1960
creased
Soybeans prices were steady in¬
fluenced
by light offerings and
increased activity in the oil and
.
/ /
to holders of record at
In¬
buying at the end of the
week helped oats prices move up
somewhat from a week earlier.
NO. 102
regular quarterly
25*PER
"V
SHARE
active
offerings.
a
dividend of
fractional decline
prices
and
'
|
;
THE COLUMBIA
.
CAS SYSTEM, INC.
_
meal markets.
Activity in most sugar markets
from a week
showed little change
and
earlier
prices
were
down
Both domestic and ex¬
somewhat.
port buying of flour was sluggish
and prices remained close to the
prior week.
.
Rice
prices
increased
were
COMMON
steady despite
and
export
domestic
Pakistan; contracted for
quantities
of
rice and
business from Cubav was expected
buying.
The Board of
sizable
dividends'
Coffee trading moved up
appreciably during the week and
prices were slightly higher. There
was
a
slight rise in cocoa prices
a
end
Hog
vanced
March
15, I960 to stock¬
holders of record at the
close of business February
15, 1960.
purchases..
was
up
.
.
By Arden E. Firestone,
Secretaiy
January 12, I960
moderately
,sand prices: ;were% slightly higher.
Increased receipts stimulated in¬
u
The Goodyear Tire & Rubber Co.
receipts in Chicago ad¬
appreciably from the prior
week/trading
share on the
Stock, payable
22 V2 cents per
Common
of the week following
moderate rise in
Directors to¬
day declared the following
shortly.
at the
DIVIDEND
No. 107
«
VHE GREATEST NAME IN RUftBEft
and Financial Chronicle
The Commercial
44
.
.
Thursday, January 14, 1960
.
(196)
WASHINGTON AND YOU
r
l
1
COMING
behind-the-scenes interpretations
from the nation's capital
IN INVESTMENT FIELD
It
and
It will be feverish by
speak.
of
D.
the Fourth
S.
As of
now
M.
Richard
likely
Republican
the
be
nominee,
dramatic development oc¬
curs.
The
ington,
is:
big question in Wash¬
of course,
will
nominate?
Democrats
;
and
more
but
course,
specula¬
more
•
tion's Capital
Robert
unless Senator John F. Kennedy
and
liams
nomination
grabs
early
convention
Senator
Stuart
is
the
the
at
Angeles
Missouri
off
in
Los
July,
Symington
likely
to
of
the
get
nomination.
The Senator
Me"
is
state
from the
"Show
already being de¬
scribed by some as the "Missouri
Compromise."
Meantime,
^
John
/
Kennedy,
Harvard educated and the only
Catholic to make a major bid
for
the
Presidency
Smith in
ular
since
political figure in
Although Gov¬
Smith lost four Southern
ernor
States, he rolled
of
The
:
crats'
and
Democrats
are
getting
to kick off their
1960
Presidential
campaign
in
the
Nation's
Capital, Saturday night,
Jan. 23, at Washington's largest
banquet hall at the Sheraton
Park
400
Hotel.
Approximately
Democrats
SlOO-a-plate
will
Adlai
Governor
in
bearer
standard
Mr.
Stevenson
E.
attend
the^
dinner.
V
cabinet
Chapman,
1952
is
Mr.
will
the
be
officers, Oscar
heading the big
Chapman
will
in
of
halls,
one
and
Chester
the
Stock
with
Market
Transactions
of
Con¬
is
in
report
a
Wash¬
Connecticut's
con¬
"paper"
This
how
on
also
profits
book
the first ballot
about
two.
or
the
Democratic Vice-
a
candidate?
you
stock
to
and
help
you
And
and
make
a
you
only
fortune.
-
It
to
To
CROWN'
I
#19
send
me
I
standing Put and
free examination.
I
If
•
not convinced
'
or
ida.
pav
™thyfnt2me™wVer'
/ may return
nothing. Otherwise I will
I
payment
how
man
!
vou
pay
$.* oO
Charge
camp
in
the
be
Eisenhower
from
the
plate, but
$25
Los
of
the
Collins,
has
been
National
who
is
Chair¬
Governors
Conference.
chief
all,
not
of
be
in
if
will be $50 and
[This column
the
/■
;/77-,.
is
intended
to
the "behind the .scene'
from the nation's Capital
or
may
coincide
not
Zone
here if
State.
you prefer to
money order for $3.00.
Then
l^we pay postage. Bame moneyback guarantee.
party
12, 1960
19,- I960*'(Houston,
Stock
and-Bond "Club of
Henry
the
C.
of
Texas
—
"The General
Conference
(paper),
on
Eco¬
50£
(quantity
request).
on
of
Foundation
Madison
Ford
Annual
Report,
Foundation,
Avenue,
New
(paper).
should
York
|
Co.
has
opened
Commerce
22,
Winter
a
branch office at 336 Clinton Ave.
under the management of Frank
Stratford.l/Tv
Association/&
at
now
conducting
business
Street.
from
its
investment
offices
George
A.
Co. is
at
8
Beach
Brown
is
a
v
Chicago
As¬
Congress Hotel.
April 10-11-12, 1960 (Dallas, Tex.)
Texas Group of Investment Bank¬
Association
Dallas.
April 8, 1960
Dollar-—An
annual
the
Hotel
"7
I960; (Atlanta/ Ga.) 5
/of/; Stock •/ Exchange
meeting of Board; of Gov¬
Firms
at Hotel
Atlanta
Biltmore.
excerpt
Detroit
Activities,
presented at
the
1959
Convention Meeting—
Advisory Committee on Special
Activities, The American Bankers
Association, 12 East 36th Street,
(paper).
Security
Traders
&
Michigan)
Association of
and
Michigan
Summer
outing at Western Golf & Country
Club.
'
"... 7'
•.
/
•'
Attention Brokers and Dealers:
TRADING
Ma-.„
in
{
9-10,
Special
16, N. Y.
•
-
June, 1960 (Detroit
New York
dinner
Ballroom-,; ofthe
Biltmore
>re.T-Zv'v'/r\/7r"
from the Report of the Chairman
of
the
Advisory Committee on
the
•;
-•
.
(New York City)
Security Dealers Asso¬
Association
Printing Office,
Washington 25, D. C. (cloth), $1.75.
the
Sheraton
Grand
May
,
of
7.
7...
.
the
at
,
25th
America
of
meeting
ernors
&
*// /
-
Mid-
Bellevue-
sociation of Commerce & Industry
7th annual Mid-West Conference
U. S. Government
State
Brown & Co. in Boston
the
Mar.
Annual Report
for
the
Fiscal Year ended June 30, 1959—
Superintendent
of
Documents,
Hoornbeek.
BOSTON, Mass.—Brown
/ annual
36th
,
dinner* at
New York
Commission
—-73rd
KINGSTON, N. Y.—Carl M. Loeb,
•
477
.
state
get
Philadelphia
ciation 34th
Interstate
Loeb, Rhoades Branch
Burn
V/, \;/-v*
19, I960'(Philadelphia, Pa.)
Investment Traders Association of
ers
picture at
Senator
outing at-the1 Brae
annual
N. Y.
\
Tex.)
Houston
Asso¬
Progress, 1001 Connecticut
Avenue, N. W., Washington 6,
prices
Sherman
Road under the direction of
&
/
nomic
1959—The
Rhoades'
?
Feb.
MARKETS
Botany Industries
j
Indian Head
the
Official
nomination.
Obviously the pro¬
fessional politicians, .who control
the political
conventions, would
I
(Boston, Mass.)
Security Traders Associa¬
25-26, I960 :<Chicago, 111.)
Chicago Chapter American Statis¬
Ford
Haeling.
Cadillac
tics
branch
7820
Rovelstad,-
Management, 229
South, New York 3,
(cloth), $12.00.
jority Leader Lyndon B. John¬
son
i
Sheraton
at
Park Avenue
MILLINGTON, Tenn. - HoweKreunen Company has opened a
at
•
N. Y.
D.
-
A.
board— National
Welfare"
v
Howe-Kreunen Branch
office
Ernest
Federal Budget and
with
views.J
own
and
re¬
inter¬
pretation
the "Chronicle's"
Porth
Commercial
B.
ciation of Credit
and
may
of
1960—Edwin
editorial
on
/;//
Manual
Laws,
Moran, W,
Randolph Montgomery, William C.
Most
$100-a-
principal.
executive
course,
be
Credit
a
Mills
Films
Southeastern Pub. Serv.
not take two men from
the same
part of
the country.
They like
spread the geography oh the
ground that it is good politics.
Carl Marks
FOREIGN
Vice-President
| □ Save postage. Check
ter
annual
will
via
circuit.
depending
.
80
by
who
Angeles
will
some
plate,
locality.
a
be
addressed
Nixon's
run¬
mate, assuming he is the
Republican nominee,
certainly
will not
be a
Far
Westerner.
He might be a
Mid-Westerner
20 BROAD
ning
or
will
at this time is
to
Address..,.,..
clty
enclose check
United
of the best Vice-
prospects
liberal,
ernors
Y\
Name,,.,,...,;,,,-,,.,,,,
-
two
not
are
has also been
Chairman of the Southern Gov¬
can
(Detroit, Mich.)
Hotel.
Feb.
cer¬
Conference, and
for itself
H and
pay
one
Governor
fairly
"
that it can
I
I
any
Governor Leroy Collins of Flor¬
own
"
President
F.
nominate
Democratic
Herbert Filer's
I'nderCall Options for 10
days'
I
I
too
with
up
fast-growing Southern
Publishers, Dept. A-",
Park Avenue South, New
York 16,
| Please
entirely
Fill in
this coupon today.
favorite bookseller,
your
■
come
Perhaps
would
1
is
Senators
The
Jou^css examine If Free.
mail
the
Vice-Presidential
It
Presidential
buy and sell puts and calls, how to
use
them
to
make
capital gains instead of
short-term profits, how to use
options to
protect profits on your
stocks, etc.
costs
about
regardless
of
geography they may repre¬
sent in the Congress.
/A
how they do it and
make maximum
profits
investment.
It shows also
sell options on
your
increase income, where
bock
but
the
can
can
1960
Bond Club of Detroit annual win-
Boston
BOOKSHELF
big
Capital
over
prospects.
States
to
J This
prospects,
to
solid
unrealized
they own.
Businessman's
own
Nation's
This
and
over
Hotel.
getting
are
their
There
will
speak
future.
Running Mates?
early
shows
you too
minimum
how
on
protect
the stocks
the
27.
dinners
going
can
in
Jan.
on
television
Republican
subject.
Sheraton Dallas
tion Winter Dinner.
Republicans
of
prospects.
successful traders and pro¬
purchase
"buy"
and
"sell"
options <call and put; because
they know
these options can
make
big profits for
and
The
ready to put
closed
cratic
of
at
ernors
GOP Dinner Set
to
on
Texas)
Stock
.
William
Pierce Rogers of New York.
again, not only about the Demo¬
FILER
like
vention
delegates are expected
along with Senator Ken¬
Ambassa¬
(Dallas,
of
Feb.
that
the
Exchange
meeting of Board of Gov¬
Firms
the
across
1960
Each
What about
Options
them
building
1-2,
Association
nomination himself.
tain that the Democrats
the
the
Feb.
the
on
policy—and
Country/-Glub.
However, it is reasonably
on
in
affairs
fiscal
fund-raising Republican
banquets
across
the
country.
The
PUT and CALL
authority
world
<
flect
Understanding
Thousands
fessionals
of
of
West..'
similar
question is asked
HERBERT
of that redhead
Easterner
an
dinner
Presidential
by
impact
government's
Guild Room
Ex-Gov¬
ernor
Bowles, a liberal, would
like
very
much to
have
the
a
the
shape
the
-
on
adjoining hall.
cost
book
(Chicago, 111.)
way."
in
ulated
put or call option, risk limited
of the option (maybe a few
hundred dollars), you can make
unlimited
profits ipossibly thousands of dollars in
SO days) is explained in this
clear, simple
the
market—the
the
Representa¬
Bowles
they may switch to Mr.
Bowles, said an authority on
Connecticut politics as he spec¬
Limited Risk-Unlimited Profit
to
discussed
stock
be
Then
How
"They
necticut, will be the toastmaster
nedy
on
the
dor
COGA* ALL£N,
Feb. 3,
toastmaster
go
at
25, 1960 (Chicago, 111.)
Security Traders' Association of
Chicago, Inc. Mid-Winter Party at
One of Former President Tru¬
ington
Associa¬
Jan.
-
the
Securities
ing at the Ambassador West.
nomination.
man's
(Philadelphia, Pa.)
National Security Traders Asso¬
ciation National Committee
meet¬
Washington that he will get
the
1960
Jan. 25, 1960
party's
nominee
for
a
third
time, but there is growing doubt
in
20,
meeting and dinner
Hotel Barclay.
the
Although he isn't listed for a
speech, he unquestibnably will
be heard from.
It may be that
There
2,-
Dinner
-
tion annual
again in 1956, will be there.
tive
ready
Winter
Michigan.
Former
banquet
Opening Gun
1960 (Kansas City,
Mo.)
City Security Traders As¬
Philadelphia
Stevenson of Illinois, the Demo¬
the
strength in Dixie.
Mid-Winter
University Club:
Jan.
California-
of
Brown
dinner.
his greatest
up
Senators Sym¬
to
Chapman-Bowles Toastmasters
1928, is the most pop¬
Yankee
at
Ai
the South today.
annual
sociation ^annual
Republi¬
the
at
20,
Kansas
or
Meyner of New Jersey,
G. Mennen "Soapy" Wil¬
of
Massachusetts
blast
a
Texas; Hubert H. Humphrey of
Minnesota; Governors Edmund
"Pat"
the effect that
Jan.
ington and Kennedy, other
speech-making hopefuls will be
Senators Lyndon B. Johnson of
tion behind the stage in the Na¬
to
have
deliver
addition
In
aa
knows, of
one
there is
the
will
25th
Dinner,
Although
he
is not
speaker, more than
he
to
DIRECTORS
a
as
(Baltimore, Md.)
Security Traders Asso¬
be
will
course
1960
ciation
cans.
unanswered
Whom
No
two
unless
some
of
15,
Baltimore
OF
will
more,
Former President Harry
present.
Nixon
will
probably
Truman
listed
Jan.
BOARD
Democratic hope¬
seven
and
there appears to be
Vice-President
that
doubt
between now
National
Convention.
the
At least
July, if not before.
no
shindig
political
fuls.
rvs
be the biggest
promises to
C.—The
Presidential campaign is under¬
way,
and it is going to get
spirited by the time the sap
begins to flow'in the springtime.
WASHINGTON,
Hke
House
Charles
Minority
Ilalleck
of
STREET
TEL: HANOVER 2:0050
•
NEW YORK 5, N.
Y.
TELETYPE NY
II
J »»
.
Investment
A.IIIII
..I.H
in,
Securities
10 Post Office Square, Boston 9, Mass.
Telephone
in
number is
LERNER S CO.
1-971
,
mtMIi
York telephone
CAnar 6-3840
'
MJJIHPII■nil
....V
or
Co. Inc.
SECURITIES SPECIALISTS
Leader
Indiana
Our New
&
,*-1.
Ht bbard
Teletype
.
2-1991)
„
»
BS
69
@FedFRASER