Full text of Commercial and Financial Chronicle : January 21, 1960, Vol. 191, No. 5918, Section 1

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The COMMERCIAL and FINANCIAL

ESTABLISHED 1SS9

AS WE SEE IT

Editorial

Business and Finance

often that exuberant enthusiasm about the out¬
for the year ahead so nearly reaches
unanimity as

(It is not
look

that which ushers in the year of

\ does

our Lord, 1960.
departments in industry
! or trade are now commonly called—which for some time
I have not been showing any marked tendency to
respond

Certain sectors—as branches

•

I
1

optimism of the day, such for example

to the

As is

housing
construction and agriculture,^ are usually put down as
"contra-cyclical" in their usual behavior or else are not
as

individual

Disquieting Factors Ignored

The

cernible.

are

far

fact

not

that

automobile

sales

regarded as
of time that has elapsed since the steel

■

strike, and the

put

technical

recent

degree

rates

which

down

''overdue"

prosperous

income

forward

certainty
plans.

and

sales

dent

-•

sales

again

with

the

trial

first

The

industry

quarter

optimistic side.

very few exceptions definitely on the
For the first half of the year optimism

the

appears to be all but unanimous. As to the second half
of the
year, the consensus appears
(Continued on page 99)

But

not

The

jobs but

new

the

Housing,

State and

ity

if
a

STATE aho MUNICIPAL

and

national interest

ex¬

peace

mis¬

prevails, the

new

year

spending, more profits and more jobs.
Depart(Continued on page 32)

623

So.

Hope

Street, Los Angeles 17,
California

BONDS

I NVESTM

CHEMICAL BANK

Exchange

Associate Member American Stock

Exchange

Members Pacific Coast Exchange

E NT

Offices

SECURITIES

Claremont, Corona

del

Mar,

Encino, Glendale, Hollywood, Long Beach,

NEW YORK

Housing ]

Agency

rr?r=-

Bonds and

Notes
(

Bond

Department

Oceanside, Pasadena, Pomona, Redlands,

Santa

Burnham and

BOM) 1)1 PA in Ml NT

MCMBERS

30 Broad Street

is BROAD
CABLE:

NEW YORK ANO

OF NEW YORK

Company

AMERICAN STOCK

STREET, NEW YORK 5, N.

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

New

York

Correspondent—Pershing

BANK
&

Co.

Active Markets Maintained

To Dealers, Banks and Brokers

CANADIAN

T.LWatson&Co.

canadian

establish^ 1832

securities

Members

Securities

Chase Manhattan

Southern

HAnover 2-6000

Net

Investment

California Securities

TELETYPE NV 14»a

COBURNHAM

Distributor

Dealer

Monica

Inquiries Invited

EXCHANGES

•

THE

Riverside, San Diego, Santa Ana,

THE FIRST NATIONAL CITY BANK

TRUST COMPANY

New York Stock

American

Stock

Exchange

BROAD

NEW YORK 4, N. Y.

BRIDGEPORT

•

PERTH AMBOY

CALIFORNIA'S
CIVIC

BONDS & STOCKS

IMPROVEMENT

Canadian Exchanges

CANADIAN

DIRECT

DEPARTMENT

NY 1-2270

WIRES TO MONTREAL AND

TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

gouthUKAt COMPANY

FOR

Commission Orders Executed On All

Exchange

STREET

/MunicipalBonds

Block Inquiries Invited

Teletype

DALLAS

the

lift this figure

State,

Members New York Stock

can

Commerce

Lester, Ryons & Co.

DISTRIBUTORS
of

FIRST

National

billion,

period of record-breaking business activ¬
high employment. • There will be more

money, more

and better products—

UNDERWRITERS

•

$480

HAnover 2-3700

Underwriter

rebounding

Gross

Municipal

New York 15

the

and Public i

Securities
telei»ik)ne:

economy

to around

Government,

Public

year

recently returned to Washington from

tours

ANNUAL REVIEW AND OUTLOOK ISSUE
U. S.

people's

deadlocks, then prosperity could be checked.

to be extended.
Business investment in
plant and equipment—which is a most important
and dynamic sector of our economy that generates
new

rates, ^pushing
for

thrust of free enterprise

will be

only

our

exports. At home, a word of caution: Let us be
wise and wary. Should there be excesses in
credit,
severe inflation and stubborn selfishness in strike

Frederick H. Mueller

benefiting

expect

and

sion and economic progress in many nations
open
fresh opportunities for American business to sell

industries which were affected by the steel
shutdown—particularly the railroads.
Rail carloadings have shown a recovery which we may

econo¬

ended with the

resulting from President Eisenhower's

other

forecasts of both businessmen and

with

Union

promote good will and trade in
Europe and Asia. I found that favorable reactions

The expansion in indus¬

operations

peak

tensive

ex¬

the, purchasing power of

year

I have

record turnout

the

to the half trillion dollar mark in the first half of
this year and to still higher levels a
year from now.

rate

tons.

higher incomes.

power

industry
has
pace which is

the

pectations of
for

annual

million

vehicle

line

the

all-time high in both volume and value terms/ The

:>.

•

started 1960 at

,to

;

140

over

to preserve

Last

industry is producing

currently
of

as-

now

rise.

are

motor

Product

and

State

are opening the new decade with a
strong
expanding economy .v We must work for con¬
healthy growth and improvement in our
standard of living and business
strength. At the
same time we must
fight against inflation in order

can

production

his

tinued

greater
in its

and

The steel

firmness

and

indicated

our

sales and profits, the Federal rev¬
base—recently cut by the work stoppages—
now be
considerably improved. As the Presi¬

Budget Messages, the Federal budget position will
be greatly strengthened.

With the settlement of the

with

now

Industrial

the

At any rate,

year. -

corporate

will

MUELLER

strike, an improved supply situation
sured; this will mean an accelthe affected lines. Business

Optimism Quite General

are

enue

conviction that 1960 will be

feature of the

one

half, is now lifted. With advances in
personal-earnings and the ^expected improvement

begin lieretvith—

ity reinforces

was

1959 second

of business in (dl industries 1

course

confidently for the period
a noteworthy improve¬

see

outlays.

The drag on profits that

Secretary of Commerce

year.

mists

ment in capital

up-to-the-minute official views

FREDERICK H.

■

eration of

period of tight money and high interest
expected boom in business, plus firm
policies in Washington, v/ould normally bring.

credit

ahead, and I expect to

financiers

.'/steel
-

and, moreover, as possibly reflecting in

sense

some

reverses

icith

indicated

statements

most

ket

market

and

Fresh supporting evidence of rising business activ•

mar¬

during the past week or two has not been indicative
of great optimism on the
part of those whose actions
control it, but with a few
exceptions, students of the

reader

HON.

[ C;,

relatively brief period of time. The stock

bankers

*.■

resumption of it, is still not great. It may
well be, indeed most observers
apparently are convinced,
that this situation will right itself of its own accord
within

The.

consumers-

quite what ! was expected is apparently
worthy of undue concern since the period

not

threat of

the

may now proceed more

officials and of the

government

probable trend of business in the current year.
-"These forecasts, written essentially for THE
CHRONICLE,
provide the

recent developments which might be
.regarded as suggesting that: all. is not altogether welly
with business have made any great impression
upon the
widespread optimism of the day, it is as yet not dis¬

had been.dampened by lack of
supplies- Program¬
ming of new, plant-and .equipment installations

ISSUE the

the

If certain„ very

opinions of

leading industrialists,

countrys

| regarded as very seriously affecting the general outlook.
Some

usual custom, THE CHRONICLE features in

our

today's ANNUAL REVIEW AND OUTLOOK

2 BROADWAY

■NEW YORK

Dominion Securities
Corporation
40

Exchange Place, New York 5, N. Y.

I NORTH LA SALLE ST.

CHICAGO

Teletype NY 1-702-3

WHitehall 4-8161

MUNICIPAL BOND DEPARTMENT

Bank

America

H.T.& S. A.
San Francisco

Los Angeles

Financial Chronicle

The Commercial and
2

The Security

Brokers, Dealers only

For Banks,

I Like Best...

A continuous forum in which, each

Call "HANSEATIC"

week, a different group of experts

Louisiana Securities
Indiana Gear Works, Inc.

production started only in

With

KILIAEN V. R. TOWNSEND

reaches

Security Analyst, Atlanta, Ga.

service and
broad

range

through

nation¬

our

wide wire system.

seldom

you're getting
possible coverage,
HANSEATIC."
sure

"Call

New York Hanseatic

introduced
into a
enjoying an estab¬

often

really

New York 5

Teletype NY 1-40

WOrth 4-2300
BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

lic

Principal Cities

Private Wires to

with

the

plant

intake

Dealers As*'»

Security

Gear

Works,

flush

mounted

screen

the keel and ejects it out

the

(Active and Inactive Itsaea)

WHitehail

3-7830

this

the

For current information

Call

plants

its

over,

designs.

More¬

provide
additional
capital. However, if, as

will

needed

likely, the rapid up¬
in sales continues,

appears very

ward

spiral
financing

taken

Absence

under¬

may

the future.

the

propeller,

of injuries and
boating, is bound to

cause

trouble

make

time in

some

greatest

this

jet

preferred

boat

drivers

test

leading

the

boating magazines and the several
hundred
people already owning
of these jet boats.

one

fact

that

cannot

turn

will add universal appeal

over

for both

new
jet type boat, then,
literally revolutionize both
utility and pleasure boating

the

industries.

Indiana'

And

tual

of New

substantial in¬
advantage and possibly a vir¬
monopoly through its patents,

Works, enjoying
itial

Securities Company

Gear

course,

profits.

earnings

Tokyo, Japan
Brokers

111

can

Elimination
outside

all

and

gears

will

impress

the maintenance minded.

And the

appendages

unique

feature

being

able

method

success

facturers

forced

the

into

stream

virtually every

This patented device is found in

Sales are doubling for
third year in a row, may double again next
year.
Current issue of PROFIT SITUATIONS
contains detailed, first-hand report about Vari¬
computer and missile.

expected during the costly intro¬

ductory phase of this revolution¬

development.

new

ary

the

But

York

Boat

Show

Consumer
Finance

Companies

this

January
price
Indiana
Gear

appreciation

for

Works common, now

for retail off-street place,
ment
blocks of inactive preferred *
or
common
stocks
of
dividend-

selling at 30.

seek

paying small-loan companies, sales

It is traded in the Over-the-Coun-

finance

companies,

ALBERT J.CAPLAN& CO.

Ira

the

friction

resulting

loss

prevented high speed performance.
the

jet stream is expelled directly

for sample

issue,

$50 for 1 year.

miles

month.

Hillsdale, N. J.

most

hour and more

per

are

Deflector plates provide

responsive steering system.

Forward, neutral and

reverse

are

accomplished through a three po¬
sition gate arrangement control¬
ling and deflecting the water jet
stream. This does away with the

HOW TO EXPAND WITH
CANADIAN INDUSTRY-

familiar worry

Have

been considering

you

in¬

in the expanding econ¬

of Canada? Many investors
have. Canada irtlie second larg¬
est country in the world, and its

omy

riches

and

industrial

potential

just beginning to he tapped.

For 47 years,

Nesbitt, Thomson
has been pioneering the develop¬
ment and financing of new indus¬
try in Canada. Through a network
investment

across

offices

extending

Canada, into the XJ. S. and

Europe, the Company is in

con¬

touch with Canada's finan¬

pulse.

interested in any,
type of investment in Canada—
you

municipal

are

corporate

bonds,

slocks—or if you want information on
Canadian investments,
Nesbitt. Thomson and

Company

will be glad to assist you.

about gear strip¬

ping.
Since

nothing at all projects be¬
hull,, this sensational boat

low the
vestment

MID COMPANY, INC.
25 BROAD ST. 140 FEDERAL ST.

NEW YORK 4

BOSTON 10

Stock

Phila.-Balto.

plane in less than three inches

can

of water,

boat

two

right

full plane within

reach

lengths, and

be driven
sorts of obstacles,

all

over

including exposed logs and sand
bars as well as submerged pilings.
Patents

have been applied for
propulsion mechanism and
the steering control apparatus by
on

the

New

diana
the

Zealand

Gear

Works

inventor.
has

In¬

obtained

exclusive

ture this

South

rights to manufac¬
jet boat in the U. S. and
in

America

for

vigorous

company

vital

the

CENTRAL

economy,

TRANSFORMER CORP. is
the

of the

one

industries

one

very

e w

imprest
Milo C. Wildrick

earnings
five

last
now

having

doubled

the

the company
ranks among the eight larg¬
years,

and

est.

Furthermore,
CENTRAL'S
growth potehtial, in my opinion,
is directly related

sive

growth

to the impres¬

projected

for

the

electric

utility, industry which is
3*2% royalty.
anticipating a 117% increase in
demand during the next 10 yeafe.
John L. Buehler, 48, is President
and has been with the company Also significant is the fact that
since it was started in 1933 by his since 1951, within the transformer
CENTRAL
TRANS¬
father.
Executive Vice-President industry,
and

Treasurer

Englehart,
and

has

since

age

been

1940.

39.
with

return

Theodore

He is

CPA

Indiana

Gear

Harrison

Fellows,

FORMER'S

sales

have

increased

by approximately 500% compared
to

increase

industry as

24%

for

CENTRAL

designs and manufactures electri¬

sion,

cal transformers at the main

sales

manager

for

the

Turbocraft Division.4

Pine

TRANSFORMER

plant
Bluff, Arkansas and at a

the

its

these

nation's

four

years

increased

industry

common

total

Stock

Monthly

61 Broadway, New York 6,
Telephone:
This

;

September, 1959,

our

Nomura Securities Co., Ltd.

its

sales

for

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

to elec¬

customers

past

has

total

not

BOwling
offer

Green

N. Y.

9-0187

solicitation for

orders for any particular securities ;

offering

shares brought

461,023

securities

with

consisting

-fOVl*

1959 from

a large insurance com¬
Adjusted for a 9-for-5 split
in 1957, a 3-for-2 split in
Septem¬
ber, 1959 and the new shares of¬

pany.

fered
are

133%

have

1959, sales
earnings are up
1955. Earnings per

and

|since

share
in

1955

rose

saving*

September,

86%

increased

from

41.00

95.50

1958.

Sales

for

from $4.2 million to $7.8 mil¬

lion during the

same period. Rep¬
conservative 42% of
1958 per share earnings, the cur¬
rent annual dividend is $0.40
pay¬

resenting

able $0.10

Over-the-Counter

quarterly.

the

For

analytically-minded,

study

formerly sales manager of
Chris-Craft's Cavalier Boat Divi*

2, PA.

IN JAPAN
Write

of
2,094 shares of 5% cumulative
preferred and a long-term 5V2%
promissory note in the amount of
$750,000 obtained in September,

the

whole.

(Assoc.),

Opportunities Unlimited

than 80%.

senior

has

well

89,773

the

sive with sales
as

company

in its

industry,

been

70 of the

utilities

during

CENTRAL'S

growth

of sales

remainder

than

(started

in 1942)

Exchange

LOCUST ST., PHILA.

mar¬

of the United

75%

utilities

the

and

few

biggest

areas

growing

the

Stock

Stock Exch.

Southeastern and

over

and

comparatively
youthful com¬
pany

Southwestern

fast

the

over

in the

are

leading

utility
Although

$23,362,500 worth of

CENTRAL'S

States with

lists

the electric

indust

trical
contractors,
dealers
and
suppliers.
CENTRAL
currently

suppliers of
capital goods
to

kets

areas

u r

Pitts.

minimum

transformers

Corporation

Florida Power & Light Co. which
contracted
to
purchase
a

has

Exchange

1516

newly completed plant in Florida.
The Florida facility will supply

years.

37,

NESBITT, THOMSON

York

Central Transformer

American

PLUS comment by Dr.

SEND

Box 14

New

universal joint, thereby elim¬
inating reduction gears. Speeds of

years.

PROFIT SITUATIONS

cial

Members

With Indiana Gear's Turbocraft,

obtained.

stant

Department, Eppler, Guerin

& Turner, Inc., Dallas, Tex,

Published twice

Research

most

Cobleigh.

are

MILO C. WILDRICK

jet

under

engine coupled to the jet unit with

Also report on

$15 for 3-month subscription,

P. 0.

water

into the air by an inboard marine

last 7

Boston

some manu¬

about S3, whose sales have risen in

company,

each of

The

of.
FORMER

CENTRAL

Quotation Services
for 47 Years

TRANS¬

compared

with

the

transformer
some

industry revealed
interesting ratios: (1) ratio

net

profit

sales

almost

National Quotation Bureau
,,

three

times

that

the

industry;

Incorporated

Established 19 it

(2) ratio of net income to net in¬
(This ia under
as a

circumstances to be construed

solicitation of

factors.

ter Market.

tried

plastics

manufacturer.

ants

hull.

the

Bankers

previously

with little

The Varicon Connector

Investment

Broadway, N. Y. 6 COrtlandt 7-5680

Members:

The

Yamaichi Securities Co., Ltd.

certainly should enjoy tremendous
sales and substantial

York, Inc.

Affiliate

would indicate considerable

safety and sporting reasons.

safety-

performance and

write

Yamaichi

This

could

its formal introduction at the New

And yet its speed is as fast

offices

STOCKS

lengths to
of Turbocrafts will include twin jet units
in
sleek
cabin
cruisers,
utility

the

conventional

branch

to our

JAPANESE

production

1960

Mobile, Ala.

recrea¬

country,

16- to 20-foot

only- in

boating, the already demonstrated
potential of this Turbocraft and

have been enthusiastically praised

NY 1-2762

Teletype No

NY 1-155,

■

;

stop in its own length even at top
speed by turning 180 degrees and

skeg.

Exchange Place, New York 5
Phone:

million

almost
boats

wires

Direct

relatively small capitalization, the
actual arrival of the jet age in

With

swimmers, fishermen, skin divers
and water skiers.
The ability to

completely- eliminatetl, as are the
driveshaft, strut, packing-box and

Odd Lots

St., New York 6, N. Y.

New Orleans, La.-Birmingham. Ala

Propeller, rudder and gears are

BONDS
on

governing factor.
tional

water

rear

into the air.

Bids

mort¬

refund and the
upon the
large new- leased

several

completion of

potential.

Named Turbocraft, it sucks water in through an

Members
T.

shallow

Exchange

boats, and lengths up to 40 feet/

sale

jet propelled boat.

& CO. INC.

sinking

first

and

This year a tax
K. V. R. Townsend

Inc., an
old established company and the
largest aircraft ana missile gear
manufacturer in this country, has
come up with just such a revolu¬
tionary development in its new-

GROSSMAN

where

$542,875

and

debentures

lar

WEINBERG,

boats

date,

ti-million dol¬

Indiana

a couple of inches of
virtually outmodes all other

non-cumulative pre¬

pro¬

mul¬

water

pleasure boating business grossed
over
$2 billion last year.
Built

25%

1959,

gage.

pub¬

and

viding

for this
the fam¬

financing

Stock

HAnover 2-0700

operate in

provide

American

19 Rector

fiber¬

additional

make

Turbocraft Division,

fund

ready popular

Members New York Stock Exchange

.„

Members

ferred,,

ap¬

Steiner, Rouse & Co.

shares of 5%

plied
t o
a
product al¬

American Stock Exchange

120 Broadway,

Eppler, Guerin & Turner, Inc.,
Dallas, Texas. (Page. 2)

which
was
purchased
by
employees.
Thefe are now outstanding only
228,450 shares of common, 3,015

new

concept

Dept.,

Research

having two prominent hull manu¬

November,

Established 1920

Corp.-r-Milo

Transformer

Wildrick,

the company is

ily-owned compaily soldf $900,000
of common stock to the public in

still further,

tion

new

In order to step up produc¬

sort.

some

Polaroid,

example

Associate Member

able.

Central

are

glass hulls.

vement

course,

Corporation

wise

only an

pro

since then.

month

each

boats

Sought—Sold—Quotec

(Page 2)

Atlanta, Ga.

competitive pricewith the various types avail¬

The

facturers

dif¬

ferent"

revolutionary

revolu¬

tionary,

market. Moreover, the

mass

"new,

make

that

principle
is
growth field
lished

the widest

increased

Indiana Gear Works, Inc.
It

Contacts

K. V.

—

Townsend, Security Analyst,

Spring of 1959, sales climbed
$319,000 in September and have

the

Trigger-quick

Selections

Their

security.

participate and give their reasons for favoring a particular

department offers

Alabama &

Participants and.

field from alt sections of the country

in the investment and advisory

Our experienced trading,

Thursday, January 21, 1960

Week's

This

Forum

(254)

offer to buy,
.

any

offer

as an

sell,

security referred to herein,)
,

vestment

than

Continued

three

and

46 Front Street
CHICAGO

page

126

New York 4,
SAN

N.Y,

FRANCISCO

Number 5918

Volume 191

Commercial

and

Financial Chronicle

(255)

Where U. S. F oreign Traders
Will Profit in 1960

CONTENTS
.v.:-:-.,..''/

Hy Walter II. Diamond,* Industrial Trade Consultant, New York
City; Former Editor of McGraw-Hill "American Letter"

International trade specialist predicts

favorable trade

our

will rebound to $2.5 billion from 1959's

this year

.Articles and News

securities flotation here, and

balance

ment to private investments in

under-developed

well-known custom, offers

his

shift from

areas. He

country-by-country

then*

Landed

blocs,
foreign

trading
S.

U.
t

;

bound
benefit

for

abnormal i'

other

such

removal

underlying
of import

Deflationary

Trailers

•

-.''.A

Obsolete Securities Dept.

;
...

v._?

WALL STREET, NEW YORK
.Telephone: WHitehall 4-6551

' '
•

partially

restrictions

Foreign

American

Moreover,

shipments
overseas
this

Development

tion

Administration

add

another

Road

Trade

—Hon.

Prospects

Henry

cross company

...

british industries

Inflation?
22

Trailing in Growth

cohu electronics

•-

Growth Industry—John D. Loftis

Without

Kearns

industro

Protectionism

transistor

——

American" policy demanding pur¬
chase
of
U.
S.
products with

will
jump by 10%

the

The Case for Railroads

and

Tour

—Roger W. Babson

com¬

quotas

abolished

Seen Leading—Not

Eu¬

ica's commer¬

and

new

normal peace¬

level

time

Walter Diamond

new

the

1959

from the

than

Total

year.

much

incredible

the

imported

increase about 3%

lion

1959

that

means

from $15.6 bil¬

$16 billion.

the

tal

will

goods

Fund

texota oil
BUSINESS

money

International

Coopera-:
outlays will

$1
At

level.

billion
the

Starting

time

same

AND

lending institutions, namely
International
Development
and

structure

This

nomic

problem

to find

favorable

new

veloped

1960

countries

our

their

faced with another gold and dollar
loss of $2 billion in 1960.
w

Business and

the

seas

cotton

sales

bolster

ket

prices.

drouf

the

developed

severe

soybeans

:orn,

feed L grain

advent

responsible

aircraft

commercial

exports.
the

jet

for

nearly

age

deliveries
lines.

billion increase

assured.

exports

(Editorial)

Insurance

Stocks

will

the

billion

$20

Einzig: "Closer Economic Links Are

next
year

Funds

——1

About Banks

Observations—A.

:l>.

billion

capital
the

from

come

Wilfred

May:——.——

■

Public

Utility

Securities

Prospective

You—By Wallace Streete

The State of Trade and

direct

grants

loans,

and

LYNCHBURG, VA.
LD 39

export

on page

-5-2527—

CTflPK^

Twice

FINANCIAL

Weekly

CHRONICLE

Park

DANA COMPANY,

Founded
York

1868

Stock

Exchange

1959

{

Reentered
ary

Publishers

25,

office

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Other
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135

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(Telephone

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♦

S.
of

year

year.

M0REUND 8 GO.
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Thursday (general news and ad¬
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plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Every

Office:

SOLD

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Thursday, January 21, 1960

—

New

York, n. Y., under the Act of March
8,1879.

Pan-American

City

Febru¬
at

Subscriptions in United
States, U.
Possessions, Territories and Members

GEORGE J. MORRISSEY, Editor

Other

New

Subscription Rates

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WILLLAM DANA SEIBERT, President

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BOUGHT
matter

the

TWX LY 77

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second-class

1942,

Other

ST., NEW YORK 4. N. Y.

by William

Company

Place, New York 7, N. Y.

REctor 2-9570 to

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Reg. U. S. Patent Office

Nashville
Newark

STRADER and COMPANY, Inc.

^Column not available this week.'

Private

DDCFF DDFI1

Boston

Commonwealth Natural Gas f

6
128

____

Bassett Furniture Industries
Life Insurance Co. of Va.

Tax-Exempt Bond Market—Donald D. Mackey

WILLIAM

Albany

■

Industry

Washington and You

inllltrtKllLU 01 UUllO

25 BROAD

American Furniture

124

Security I Like Best

Published

New

118

Offerings——

The COMMERCIAL and

Members

Trading Interest In

105

Corner.

and

St. Louis

Security

San Francisco

Registration.

Salesman's

The Market
The

-I;

Securities

Now

Dallas

Philadelphia

___—_

Cleveland

Los Angeles

Governments.

Chicago

109

financing by Government-backed

Continued

many years we
have specialized

L— -i-—

Bankers

and

Direct Wires

125

inc.

Exchange Place, N.Y.

Teletype NY 1-1825 & 14844

Indications of Current Business Activity

News

Reporter

organizations of the West through

...

For

HA 2-9000

Washington Ahead of the News—Carlisle Bargeron

Mutual

mackie,

:_\* 8

Welcomed

Reporter's Report

only $8 billion a

possibly

127

Sight Indeed"
From

Our

annually required by

years,

can

Singer, Bean

107

.__

Dealer-Broker Investment Recommendations.

Security

117

Coming Events in the Investment Fields————

ever

offset the $7

___Cover

ri__:

Bookshelf.

Our

the less-developed nations for

foreign

that

Hawaiian Telephone

under¬

outlays responsible for our

investment

billion

Fourth, end of

manufactures

Allies

huge payments deficit.

the U. S. steel
strike will reverse
the
decline
in
shipments
of

finished

See

and

Business Man's

nor

aid, tourist and private invest¬

ment

the

will

and

Third,

principle

nations

sufficient to

tfain the unusually

higl

Western

other

;h struck Europe in

1959

Second,

Bank

large emergency loans from the

mar¬

Hawaiian Electric

Regular Features

"Buy-Ameriean"

"Buy-American"

they become

(Boxed)

policy is sound thinking and far

over¬

fully competitive with world

Workers

Hawaiian Airlines

will

shift from Govern¬

protectionism, as its critics
Spurring U. S. Exports
7
decry. There is a tremendous dif¬
Special
circumstances
unlike
ference
between trying tor help
those of recent years' will force
our
own
exporters and discrim¬
1960 U. S. commercial
exports up
inating
against
our
neighbors'
to the all-time
high second only sales of
lead, zinc, copper and
to the 1957 record which was an
petroleum with quotas or tariffs,"
aftermath of the Suez war. First
which of course is true protec-.
of all, an advance in the
export tionism.
However,
neither
the
rate

Castle & Cooke

Delivering Annual Budget Message

from

payment

Exchange during 1959.

Eisenhower Predicts Surpluses in Fiscal 1960 and 1961

Certainly

the New York Stock

York 5

DIgby 4-4970

C. Brewers

and military programs to stop the
gold and dollar drain.

39 Broad way, "New

today's issue will be found

private financing—principally because of pressure on
Washington to curtail U. S. aid

for America's balance of payments

will

J. F. Reilly & Co., Inc.

less-de¬

shortage of capital and the
There is

bound to be
ment

responsible
S.

cover page

usual

occurred

U. S.'s heavy gold losses.

YEAR

tabular record of the
high and low prices, by
,months, of every stock and bond issue in which dealings

the face

this will be far short of the
$4.5 billion export surplus re¬
quired to offset the high military t
foreign aid, tourist and private
ever,

the

THE

of today's ANNUAL REVIEW
ISSUE, we present the opinions of
Government, Industry and Finance regarding

In the SECOND SECTION of

eco¬

will

the

$l.SM)illion touched in 1959. How¬

deficit. .Thus

of financing the'

ways

billion from the nine-year low of

„

TURN

SPEAKS AFTER

OUTLOOK

leaders in

International

However, America's major

industrialization

outlays

the

FINANCE

the outlook for business in 1960.

Inter-American
the

trade balance will rebound to $2.5

investment

AND

THE

the

Monetary Fund and World Bank,
will boost XJ. S. shipments.

last

set

Loan

"Buy-

Bank, along with expanded capi¬

slower rate

pace

Washington's

Association

figure of $16.8 billion. Imports on
the other hand will continue to
climb but at

some

export

billion

$18.5

99 Wall.

—William S. Wasserman

African and Far Eastern

cial

year

exchange

♦>

Growth Stocks for 1960—Albert Pratt—.—,.
A

goods within the past few months.

Amer¬

—William B. Nauts

America's

spur

financing exports.. Eleven

pletely

' v-

Commercial Bank Portfolio Under
Today's Conditions

these

are

countries either

increased
1960.

the

ropean,

Economy

those

across

and

them for cash

5'":

————i—•

—Levering Cartwright

come

obsoletes,

.Why Our Dollar Must Not Be Devalued
Again '
—Walter E. Spahr__^
_____!_"J_

discrimination against dollar
goods
and greater
availability of capital

to
from

business

abroad

forces

d e r s are

r a

addition

sales

She'll
^

factors, certain to

•

Gas in the Nation's

Symonds

COMPANY

"LEAVE IT TO JANE"

Insurance Shares Continue-to Be
Growth Situations

profits in 1960.

the .spreading political
unrest in Latin America and the
distinct possibility of economic
warfare
between Europe's two

of Natural

—Gardiner

and, of the 52 countries analyzed, he opines U. S.
exports will be up in 38 and down in 14 countries. The author
concludes the American foreign trader should realize
substantially

Despite

1960

Entries—Ira U. Cobleigh_._J___-_^

and

trade analysis

better

AND

Growth

LICUIMM

■'

govern¬

economic

...

Economic Outlook for 1960 and the
Next Decade
—Paul W.
McCracken—

$1.2 billion and will

Where U. S.
Foreign Traders Will Pr.ofit in
—Walter H. Diamond
_!

help lower our balance of payments deficit to $2 billion. The econo¬
mist outlines the factors certain to spur our sales abroad, foresees',
rise in European

St.,

STate 2-0613).

Bank

$45.00

and
per

foreign
must

Record —Monthly,
(Foreign Postage extra).-

account

the

fluctuations in
exchange,
remittances
for
subscriptions and
advertisements

rate

Midwest Stock
Detroit

Quotation

year.

Note—On
the

Publications

be made in New York funds.

Stock

Exchange
Exchange

1051 Penobscot

Building

DETROIT 26, MICH.
WOodward 2-3855
Branch

Office

—

DE 75

Bay

City,

Mich.

■'

;

table,

these

they will enlarge the de¬

5% income in our I960 econ¬

possible realization of a real

for capital formation. He

McCracken foresees heavy pressures
that

adds

The

and

state

rise

steady

displays a per¬
suggests the opera¬
natural law of the

that

sistence

require stepping up gross capital formation
one-quarter above our normal GNP level and would mean less
output available for non-capital-formation uses until gestation of the

y/z% to 5</2% it would

tion

about

economic universe, with another
rise in 1959 of roughly $3 billion.

investment is completed,

How many

future.

economic

the

should

know the very

for

here,
-

...

ample, were
predict ing
early
last
year
the
vigorous

up¬

that
under

swing
got

of the work force.

to 4%

What

ex-

the prospects that we

are

this

achieve

can

are,

demand
T think,

The problem is not so much

good.

business

whether

conditions

after

April?

will

whether
improvement will come about

improve sufficiently, but
this

■*

way

in¬

needed

They

output?

for

aggregate

the

crease

will

that

circumstances

under

the basis for a further
vigorous and sustained expansion.
provide

On the other

We also

hand,

know that the

policy-maker
i

govern-

on e n

business

P. W. McCrachen

Dr.

must
some

o r m

about future events.
Indeed, it is probably true that
decisions
are
important
largely
judgment

to the extent that

they do involve

well

the

into

effects

that

future.

Moreover, it is good dis¬

carry

look at the pros¬
pect for about the most exogenous
let

First,

sector

the

accused of
than

One need be
serious crime

the

1961,

ex¬

billion

S81

about

year

York

New
Federal

assume

penditures
fiscal

perusal

••Times'*

for

economy—govern¬

expenditures.

ment

increase

roughly S2 billion over prob¬
expenditures for the current
When the figures are
added up at the end of fiscal year
of

able

cipline for economists to forecast.
Here we do not have available

fiscal year.

only
making projections (not predic¬
tions), or that we are only pre¬
scribing what ought to occur but
not necessarily what will occur.
In
forecasting,
the
economist's
job is to see if his use of economic
analysis
is
skillful
enough
to
produce answers that mesh with

1961,

the

we- are

forces

economic

the

those

that

out,

easy

trying to analyze will themselves

subsequently produce.
In short,
he is subject to the disciplinary
test of simply being right.

American

the

economy

is to

provide for reasonably full utili¬
zation of its productive resources
in

1960,

must rise

the demand for output
roughly 5% above that

This would allow tor

1959.

productivity
historical rate

and

improvement
the

long-run

outlays

may

exceed

S81

billion somewhat. The President's

Message is the financial
pricing out
his proposed
program,
but the Congress may
Budget

plan

decide

not

limits.
man

may

to
a

live

within

these

benevolent weather¬

embarrass us with fur¬

ther

agricultural abundance, com¬
plicating the life of the Director
of the Budget and the Secretary
of

Agriculture. And growth-pro¬
moting hormones and chemicals
may
also contribute to this lar¬
gesse and at the same time enable
the Secretary of Health, Educa¬
tion, and Welfare to share in these
joys. It would not, therefore, be
surprising if Federal expenditures
from calendar years 1959 to 1960
were
to rise by somewhat more
than $2 billion, but I shall stand
on
that figure.
It is apparently
true

that

little

this

will show up as

workweek
40

increase

the

per

year,

employment of about

With the
already slightly above
hours except for the near-term
same

effects

2*2%

magnitude.

the

increase

steel
in

strike,

the

employment

era

when economic

analysis

distressingly often goes little be¬
yond the

slight¬

ly smaller increase for 1960. Our
seem to be somewhat less

citizens

happy in their capacity as
state and local taxpayers, and at
than

times
grimly determined to do
something about it. And borrow¬

Gross National Product

period

corresponding

last

And needs remain urgent.
come

tion

have

been

good

I have never
question, because
I do not think anybody is smart
enough to know. I certainly would
not want to put myself in -that
many

but

years,

that

answered

class of

demigod.

As your ex¬

pert witness, I tell you no expert
witness is good on that.? (A state¬
ment

the

fore

M. Baruch

state

year/
are

Senate

meeting

dredth

care

of by

units

1929

1953

state

tive-capacity increased by at least
130%. There is grave danger that
those in our society who are gen¬
uinely concerned about the level
of taxes and public expenditures,
and

this

may

concentrate their efforts too

much

includes-

state

budgets.

battle

line will

local

govern¬

on
this
Pyrrhic vic¬

Success
be

Because needs at this, level

tory.

demonstrable

are

people,

many

and

ment

and

constrictions

severe

pressing,
and

state

local

budgets will create irresist¬

ible

pressures

Government
sion

these

for

yet

provi¬

But

dis¬

doesTnot

history

shaping

seem

Federal

over

needs.

with

continuity

the

for
take

and

up,

it is reasonable to conclude, there¬

that

fore,
levels

least

than

expenditures
at
all
will be at

government
billion

$5
in

higher

1960

uncertainty about
identity of the next sector to

the

which

turn

balance

our

—

— because
that is the
major item as we work our
up
the
national
product

payments
next

way

table.

Here is dramatic testimony

the

ever-changing

economic

problems.

nature of
How many

recently as two
would have predicted
as

1959

would

our

for

pects

our

ments?

outlook

COMMON

Arnold

Bernhard;

York, Simon & Schuster, 182

$3.95,

typifying the procliv¬

ity to emphasize news, in lieu of
value criteria for appraising indi¬
vidual stocks. On his Sunday

night

Walter Winchell

Mr.

broadcasts,
would

advance

announce

about individual

news

companies,

caus¬

avalanche of buy orders to
get to the Exchange floor by Mon¬
day morning's opening.
'
"The only objection that could
ing

•

taken

be
was

Winchell's

hard.

"If

writes

X-Y-Z

Mr.

Bern-

did

bring in an
prove that
worth more. It might

well, that does not

the stock

was

be worth

remarks

that the facts he reported were

unevaluated,"
oil

less

than

was

A-B-C

did merge with
that would not
necessarily mean
that the two
were
worth
more
together than
actually

company

apart.

...

D-E-F,

In short, the sin of Wal¬

ter Winchell

facts

was

without

that he presented

evaluating them."

no such thing
as a stand¬
value; that there is no way

there is
ard of

when

tell

cheap;

balance

should be?"

of the

together

ments
a

from

Mr.

above key passages
Bernhard's
book
as

showing his basic thesis—-that all
the facts relating to a company,
complete the logical arrival -at

investing decision; must be. re¬
ri%f%;;

lated to the current pnce.

should be regarded
that go up. and

Investments
not

numbers

down, but as ownership rights se¬
lected

for

specific .purposes*.- • •
author, or anyone else,
can
put over this simple, unchal¬
lengeable
concept, - surely' some

% If ] the

kind

award

Oscar

of price,

portance

gives

assent, which turns "into

service" at the first ensuing occa¬
sion for its practical employment.
classes

all

With

investment

from

investor,

company

for

will show
cannot

major

the barber, unstoppably
persisting
in
concentrating
on
ticker quotations or the-equiva¬
lents; and with even much of the

market

"literature"

dwelling

outside

expected

domestic

vancies, what chance is there to
re-orient the (lay investor in the
right direction?
For example, inflation is cited
by the author as one of the chief
environmental

which

loose

most

factors

frequently

vances

his

about

generalizations

made.

conclusion

proved by
evidence)
that

historical

power

direct

through its

important
the

have

may

stocks; although it
indirect . effect

influence on the alldividend-payability of

stock.

The

Current

Although
word-count,
sion

that

Playing-By-Ear
have not made a

we
we

the

have the impres¬
about

book

evenly balanced, 50-50, betweep
de
bunking,
and
constructive
-

affirmative
hard

standards

Mr. Bern-

discussion.

that

agrees
are

now

some

"Now," Mr. Bernhard continues,

Continued

page

EST.

1)
1870

year,

business

activ¬

Correspondents inprincipal cities

throughout theUnited States and Canqda

ity.

Call.

Expects

Capital
Billion

The

Marketing Department

outlook for

McGraw-Hill

results

INCORPORATED

70 PINE STREET

capital outlays
a strong
rise,
survey, whose

were

released

indicated

spending

from

last

1959

I960.

5, N. Y.

The

gains ranged from an
increase of 19%> for manufactur¬
ing to

ing.

...

decrease of 5%

will

not

for min¬

surprising

Continued

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

month,

gain of 10%. in capital-

projected

NEW YORK

Office* in 112 Cities

19J59

businesses is for

The

Merrill Lynch, Pierce, Fenner & Smith'

Spending
Over

on page

if
71

Dominick
Members AVt

Dominick

,kroYv
American & Toronto Stock Exchanges

14 WALL STREET

value

use,

but

quite hazily. They are "intuition1

as¬

rising

I
the
the

of money has
relationship
to
the

purchasing
evaluation

are

ad¬

(which,

convinced, is

our

makea

irrele-

improvement, but

contribution
of

concern

some

man¬

ager

balance-of-pay¬

our

quick
"lip "

mere

dol¬

have

order.

Usually the party so addressed pn
the logical and ^businesslike
im¬

position will continue to be

cause

level

here,

cite the

For purposes of pulling my an¬

large

dear

pay¬

discussion

that

generalization
and
background
influences, such as
political
developments
and; the
weather, determine what prices

pros¬

shortage perhaps, but not
ba la nce-of-payments problem.

sumed

stock

that

and

general does

that

session

lar

alysis

did

when it buys and sells stocks and,
at
the
same
time declares
that

well,

oil wells. If company

new

between

Winchell

what Wall Street

selling

spite of the new oil

three

difference
'

high-sounding,

WINCIIELLISM is cited by Mr.
Bernhard

the

Walter

what

the desola¬

discipline."—From THE

STOCKS,

pp.,

whqse imagination

EVALUATION

New

count

deluded crowds

(of investors)
knows

hun¬

the

it would

compared

wrought

all the
riggers of

market
raised

power,

nothing
tion

deviltry

were

"what

years

devoted
,

the

•

stock

time

lor, in

1959.

There

all

and local
governments in real terms in¬
creased 121%, while our produc¬
expenditures

"If

crooked
all

From

1929.

the future.

propor¬

government

local

and

than

THE TICKER

be¬

Committee

Bernard

smaller

needs taken

half

ator,

It may

that

resources

our

social

the

surprise

devoting

now

ago

sell

whole | are too high today.
You ask, is the market right? Sen¬
[as

one

Banking and Currency-^-the soby state*, and- .local govern-;
calied
Fuibright Committee> inment units.constitutes. ope- source
vestigdtingrrthe: rStocki Markets-*.
of demand in.the capital markets
March 23, 1955.)': •:%
'
with a quite discernible sensitiv¬
ity to changes in interest rates."Stocks are not always worth
The
statistics do
not, however;
sell for. Sometimes
suggest " any marked displacemen t' what they
in
the rising trend of these ex¬ they are carried too high, some¬
penditures.
Tax collections--will times too low, • by mass excite¬
ment.
Sooner : or
rise in response to Vising levels
later, though,
of
business
activity.
Borrowing- they move into line with value.
thus far this year is slightly in- This book explains how to project
excess
of flotations
during - the the normal value of stocks into
ing

increase

enlarged Federal
purchases of goods and services.
They
will
show
up,
broadly
speaking, as transfer payments.

roughly 2*2%

some

It is reasonable to expect a

largely take the form of
limited
more poeple at work; and a 2. *2,%
extent to which we can
really
gain would reduce unemployment
say anything very definite about
of

outset, let me emphasize
knows whether stocks

the

that

local expenditures

from

consciously to increase our growth rate

were

t'At

$5 Billion Rise In Federal
Spending

Sees

amounting to about $30 billion are set forth by former member
Council of Economic Advisers. With regard to the decade ahead,

omy

VERSUS

VALUE

and services.

mand for goods
Bases for

WILFRED MAY

expenditures are directly for pur¬
chases of goods and services or
are
merely
dollars
transferred
from
government
to
private
hands,

Ann Arbor,

-A

■

But I assume that
additional Federal

at all,

the act

McCracken.* University of Michigan

By Dr. Paul W.
'"v

whether

Next Decade

And During the

All

Thursday, January 21, 1960

other transaction runs
never being seen in

any

risk

the

Economic Outlook for 1960

Dr.

L.i,

(256)

Financial Chronicle

The Commercial and

NEW YORK

126

Number 5918

Volume 191

The Commercial and
Financial Chronicle

Landed Entries

specializes in Florida soil,
owning
totally about 157 square miles, in
three East Coast counties and in

Sarasota.
Its
most
prestigious
property is the Boca Raton Hotel

By Dr. Ira U. Cobieigh, Enterprise Economist

Contains a brief catalog of companies affording investors opportu¬
nities for income and gain through ownership of real estate equities.

past couple of weeks newsand magazines have been
awash with: pictures and articles
the

naoers

Spring i'ash-

describing the new

procedures

the

and

purchase

cedes set,

and

sale of parcels.

So, until quite re¬
cently, ownership in land and real
estate
development
companies

Milady. What is less ap- was over the head of the average
is that there are also small or medium sized investor.,
But 1959 did a lot to
changing but authentic fashions
change all
in finance.
Matter of fact, one that. Investment houses took note
market analyst I know has a the¬ of burgeoning land values in the
ory co-relating these
two sets' of suburbs, on Long Island, in Flo¬
fashions.
He claims that when rida, Arizona and the Southwest.
They realized that investors were
skirts are high—so are stocks!
meciated

it may, the obvious

But that as

fashionable favorites among equi¬
in Wall Street in 1959 vvere
electronics and the land com¬
pany shares. Electronics we cov¬
ered earlier, and we shall surely
talk about them again in 1960. But
today's stint is the real estate
ties

the

stocks.

they have become
popular in the past 18 months?

Why should
so

is intensely logical.
man's oldest long-term
investment.
We're still making
ahswer

The

Land

people but we've stopped making
land. So with this population ex¬
plosion everyone is buzzing about,
land is, over time, a pretty sure

speculation

fire

supply.

land

limited

thing needed

im¬

millions, who

industrial

only

steady
that the

the

land

commercial,

residential,
tural

need

The

to assure
prices is

land

rise

(1)

the

of' seething populations

pact

and

due

for

agricul¬

purposes

have

the money to own or rent
(2) the money to develop

it
or

exploit it. In the past, apart from
home and farm ownership, rela¬
tively few had the money to pur¬
chase acreage, and title to broad

to be attracted to the
growth
potentials of land, and home de¬

shopping '

centers,
commercial and industrial build¬

ings, if one they could packaged
in
readily marketable, actively
traded stock certificates.

our

terrain

was

sales

and

values,
development
leasing profits, without

the burdens of
property manage¬

ment,

handling

purchase

sales

market,

limited

and

inactive

complicated

legal

procedures.

landed corporations
Pacific Land

Texas and

Trust, New Mexico

and

Arizona

Land,

Kern

County

Land

Co.; and the big land hold¬
ings of railways such as Northern

Pacific and

quite

Union-Pacific, only in

recent

months

have

real

estate companies gained the mar¬
ket spotlight.
It has taken the

companies, attractive and
bouncy underwritings, and lively
market

action in them to set the

vogue.

markets,
shares

result,

quite

daily

volume

its

facilities.

rising

Mer¬

This plush

addition

Arvida

will

traded

found

in
,

real
«

One of the

Arvida

over-the-counter at

$1.75 this

16V2.

year.

only 18 months

ago.

its common stock which
df 52
of
a

N.Y.S.E.

A proven

equity
managed company with

well

fine

sells

now

record

and

attractive,

Other

Land

and

Building

Stocks-

We couldn't begin to cover them
If you;* taste runs to hotel

all.

property

then

look

Sheraton

Corporation, Hilton Hotels Corp.,
Hotels

Hotel

and

Corp.

If ' motels- attract

you,

inspect Holiday Inns. If you're a
shopping center fan then inspect

Properties

and

Roosevelt

Field.

Corp.

and

000

mostly

acres,

East

Coast.

some

the

Its main

190,-

Middle

current

de¬

velopment

projects are at Port
Charlotte, Port St. Lucie and Se¬

bastian; Highland; The formula
quite simple:

(1)

them

monthly payments,
a
completely
planned community and LU ounu
and keep the utilities these new
(2)

easy

build

houses in

towns and
eral

cities will need.

Knapp,

City

Kratter

Investing Company
Corp. For suburban

ments, the reputation of the
pany for quality building.
don't

too

pay

high

com¬

And

price

fund

specializing in real estate;
-

„

The/Federal

amount

Mr.

Smith

month

retirement

reflects

Banks

due

cash

the

member

Federal

Home

' ■ - *
Giving effect to the retirement

Banks

selections

ness

the

notes,

Home :Loan

has

outstanding indebted¬
of $1,693,660,000.
-

man¬

change, selling currently at 20 V2.
to

equity, it

described

mature

surely be called

may

animated market performer.
Tishman

Getting

from Florida,

away

rounded

company
is
Tishman Realty and Construction

after

holds

and

acquires

buildings,
they're
the

whole
in

the
new

141 Selected Stocks for Investment

Pres¬

Fifth

^*>SOAJ

fi¬

leasehold

some

666

the

process.

has

ings, including the
building

them

has

and

techniques

interest

land,

manages

built

and

resources
nance

build¬

38-story
Avenue,

Our vear-end

York; Concord Village, a 1,apartment housing project in
Brooklyn; and the Gentilly Woods
000

shopping center in New Orleans.
likes

corporations

dend

large

1960

paying

ranging

prospects and a list of 141 divi¬

stocks with returns currently

common

up to

or more

(calculated

1959 divi¬

dends). If you would like a free copy, just write or
call for

FC84.

long term leases.

reduces

lease

Special Report contains both a general

discussion of

New

This

for1960

The Market Outlook

Realty & Construction

excellently

expenses

for tenant

changes.

AND

The Tishman balance sheet

NEW

THE

most

BANK

AMERICA

cus¬

tomarily shows line working cap¬
ital, and real property carried at
conservative

Tishman

pays

plus

valuations.

sells

lfn/2,

around

cent dividend

Members New York Stock
NEW

BOSTON

Electronics is
at

breaking the bookkeeping barrier

regarded

real

estate

Dl 4-6600
,

*Open Thursdays until 9 PM

cash,,

distribution.

stock

Weeks

Street, New York 5, N. Y.

*Midtown: 400 Madison Ave., at 47th St. (17).

listed ^<011

common

N.Y.S.E.

Hornblower
40 Wall

DETROIT

BANGOR

PORTLAND

equity

PL 1-1900

■

Exchange and other Principal Stock Exchanges

CHICAGO

YORK

PROVIDENCE

CLEVELAND

PHILADELPHIA

PEORIA

HARTFORD

WORCESTER

CHARLOTTE

ROCKFORO

MEMPHIS

of substance and promise.

Bank of America...the bottleneck that has

The Hornblower

always hampered banking procedures. As the Bank
grew

Now, Electronic
of

second

operation, thus widening its
it

new

ERMA and other electronic

systems make

new revenue

producing services (/ike BANKAMERICARD) to its
customer facilities,
and dividend

enhancing appreciation

prospects for

The

THE

new BANK of

Kern

This

growing investment

INCORPORATED

SECURITIES

INVESTMENT

Members,' Pacific Coast Stock Exchange

•

American Stock Exchange

647

SOUTH

SPRING

ST.,

Economical Service

AS TRANSFER AGENT

New York, N. Y. and

County Land

one

old

land fanciers.
great cattle

Half Century of Efficient and

equity

Jersey City, N. J.

favorite

started

range

but

afford

economies

and

other

underwriters, distributors,

gets over 60% of its income
royalties from the large stores
oil and gas lying beneath its

LOS

ANGELES

•

TWX SF 885
TWX

alone

Kern

370,000 acres in fee,
useful not only for oil but for
substantial future building devel¬

"kicker"

Kern

maker of automobile
parts, netting nearly $2~ million a
year; the Watkins-Johnson Com¬
pany specializing in electronic re¬
search; and important oil drill¬
ing interests at Lake Boeuf, La.,
ing

•

California

has

opment.

(Associate)

FRANCISCO

County

County owns Walker Manufactur¬

Midwest Stock Exchange

Offices serving investors throughout California

Over

advantages to

corporations

now

as a

First California Company

SAN

16-

seven

It's an
benefitting
from the
economic development
in three major cities.
interesting

stockholders.

AMERICA

ST.,

11% and pays 40c.

around

land.

MONTGOMERY

Butler

Hill Residential Community
University Heights, New York
City. Canal-Randolph, listed on
American
Stock
Exchange sells

300

owns

out

free color booklet

just

out

over prop¬

owned

company

Representative
ready to help you

level store and parking garage in
downtown Dallas and the Fovd-

among

Send for our

started

taking

ham

economies of

profit margin.

profitable for the Bank to add

company

story building in Chicago,

pioneers in this electronic
new

Randolph Corp.

erties formerly
Bros.

revolutionizing banking methods.

breakthrough, will realize great

four years ago,

—

speed measured in millionths

Bank of America,

The

This

and accounts increased, paperwork and

overhead mounted.

Canal

533

and Nevada

and their
Write
and

for

our

Slate

stockholders.

free booklet setting forth the Current Federal

Stock

Original

Registrar

and

Issue and

Transfer Tax Rates.

Transfer Company

Co.,

Mississinni

and

British

Co¬

50 CHURCH

STREET

15 EXCHANGE

PLACE

Established

New York 7,
BEekman

N. Y.

3-2170

of
in¬

aged and loaded with sales talent.
About 6.3 million company shares
are listed on American Stock Ex¬
Not

into

to .repayment

made

stitutions; of

substantial

flow

necessity of

Loan System prior to Jan.

offering.
So you have plenty of issues to
choose from. In making your own
man¬

nine

said

seasonal return

California

3.80%

the notes without the

advances

quality

Banks

maturing Jan. 15, according
to Everett Smith,
Fiscal Agent
of the Banks.* V
>'••••>•"•• ''
; •

new

stress

Loan

notes

the

recent

Home

paying off from current cash
resources
$80,000,000
principal
are

Builders

•

Federal BanksPay
Debts From Cash

refunding

Corp.
And there are
ones
coming along such as

•'

Gen¬

Development is smartly

for

glamor and romance.; Next thing
you know there will be a mutual

development there is All - State
Properties,
Inc.
and
General

is • Great Southwest Corp.; and there
was
Garden Land Company Ltd.

subdivide large
acreages into home sites and sell

agement,
location
of
land
and
price., paid for fit, adequacy of
working capital, and, in developr

For diversity look into Webb and

Its land stake is

future.

Food Fair Properties, Grant Food

General Development Corp.

Tishman

ELECTRONICS

•>

Another popular Florida devel¬
oper
is
General "Development

Corp.,.

lion

America.

may earn

Northwest Terri¬

broadly spread
enterprise grossing $85 mil¬
year, and paying $2.25 on

land

common

sells

the

then

nities will create,- Arvida

new

ently it owns,

biggest land holders

developers

HeFe

Knott

erects

greatest

and

tories, Canada.,

commu¬

which

the

lumbia

subdivided

for

Arvida Corporation

financed

home

share in the
earnings of the util¬
ities
(water and sewage) which

current

common

estate group.

and

will

replete with yacht club

marine

Arvida.

newer

Further, real estate had the draw¬
back

involved

So while sophisticated investors
have
long
known
about
such

con¬

fined to private land timber and
ranching companies, railway lines
and, of course, the government.

an¬

of course, the real es¬
tate company which permitted its
shareholders to participate in ris¬

swaths

The

was,

land

which

velopments,

ing?

around

palm-draped enclave will be known
as
University City. Its unfolding
should
be
highly, profitable for

sure

swer

Club

shortly emerge a 700-odd
community for the mink and

for

ions

(257)

1899

Jersey City 2, N. J.
HEnderson

4-8525

The Commercial and

(258)

market

firm

municipal bond doing a good job, cooperathe tively. The timing and pricing

has

been generating
the

new

week's

been

have

seem

issues

have

^urrentiinancing included

Larger Issues Scheduled For Sale

highway bonds. The issue

ana

aceom-

state payable primarily from

due 2006 have been

substan-

tial

premium bid since issuance.
The $100,000,000 State
California

longest

serial

well

sue seems

bond

is-

placed and the

term

Co.,

(1981-1985)

for the

Brothers,

Lehman

1981-1984

are

demand

Minneapolis-St. Paul Metropolitan

No.

;

1,000,000

may

manner

be lifted,

amended,

buyer interest.

;

awarded

were

Metropolitan Dist., Mass.__

Burlington,

---—

11:00 a.m.

1961-1986

11:00

1963-1991

a.m.

Clinton Prairie School Building

Ind.

Corporation,

____

Coweta County, Ga
Knox

County, Tenn.__
Muscatine Community

Sch.

1960-1989

and

11:00 a.m.

1961-1975

11:00

a.m.

1962-1979

1,150,000
1,500,000

Rotterdam/' Colonie

the

2:00 p.m.

11:00

p.m.

Dist.,

Pensacola, Fla.

Tax

1970-1990

Noon

January 26 (Tuesday)

bonds

8:00 p.m.

2,974,000
1,275,000

years,

1963-1980

1963-1985

1,680,000
1,100,000
2,000,000

196, Minn

Boston

and 1982 maturities. Here, lssoes on Jan. 20 to an underceiling for Treasury issues again, a good bond with gen- writing group. The $18,000,000
State
of
Washington,
maturing in more than five erous return has attracted
Fuel

p.m.

Ro§emount Independent Sch. Dist.

maturities.

Vehicle

1:30

7,000,000

Commission, Minn._i.__.

Airports

reports that the 414%

Motor

1963-1988

1,525,000

—

January 25 (Monday)

......

Corp.,

Bldg.

Indiana

ure

School

Jeffersonville

Orders will be taken

or more

amount

through
Halsey, Stuart & Co., and
small premium, as are certain many, others. At closing time the day. Similar issues have
recently been in good demand.
other shorter maturities.
^ total of only $1,728,000
reThe State of Washington
This better market
feeling mained
in these
accounts,
is attributable in some meas- Yields ran to 4.15% for 1981 also sold two important new
bonds

tabulations we list the bond issues of
for which specific sale dates have been set.

following

Information, where available, includes name of borrower,
of issue, maturity scale, and hour at which bids
will be opened. .
'
:
"
/
January 21 (Thursday)

fund reye-

highway

certain

buying group mJ. Devine &. Corna total of $13,175,000 various
_Txu_s t Compurpose
general
obligation pany-Morgan Guaranty Trust
bonds to groups headed by Company
and many other
Bankers Trust Co., Northern prominent underwriters. The
Trust Co., Smith, Barney & issue 1S scaled to yield 3.85 /<

York1 Power

the

a general obligation of the $1,000,000

weeks.

sea-

;

favorably. " The New
On Tuesday (1/19/60) the nues. The
Authority 4%'s 'City of Detroit, Michigan, sold eludes: C.

soned

since early in plished to the general satisBoth of last faction of investors in recent

year.

new

has

that

tone

better

factors

^10,900^000 btate ol Louisi-

maintained

market

Thursday, January 21, 1960

been raised.

The state and

marketability,

yields are
to 3.35%.

scaled from 2.75%

MACKEY

combined as up. An easier stock market
stabilizing this and general new year invest¬
This high grade state issue segment of investment. More ment interest also helps these
should have broad market ap¬ immediately, the better mar¬ high yielding issues.
Although the new issue calpeal. Its rating has recently ket tqne, helps point all this
the

and

1961-1979

TAX-EXEMPT BOND MARKET
BY DONALD

Financial Chronicle

1961-1980

•

9:00 a.m.

Guilder-^

1960-1986
Also on Tuesday. $4,495,000
land Central S. D., No. 3, N. Y.,
T,751,000
/ 2:00 p.m.
present Congressional session. Oyster Bay, New York USFD .Eastman, Dillon & Company Waco, Texas ($6 million g. o. and
1:15 p.m.
1961-1985
8,400,000
$2.4 million rev.)____-^
making possible the issuance No. 21 bonds were awarded to
White, Weld & Company
of some
January 27 (Wednesday)
longer term Treasury Halsey, Stuart & Co., Kidder, syndicate. The bonds were ■;%;/%>%/%/
4,137,000
1961-1980 Nop n
With
the
near Peabody
obligations.
&
Co.,
Goldman,
3;^()% for. the Alexandria, Va.
2:00 p.m.
Florida State University, Fla
9,846,000
1961-1999
term
prospect of balanced fi- Sachs & Co., and associates. 1976-1977 maturities,
10:00 a.m.
Houston, Texas _!
9,800,000
1961-1985
8:00 p.m.
nancing, as against mainly The bonds were scaled to 1 • The $10,089,000 State of Troy City School District, Mich.—
2,300,000
1960-1989
short
term
Noon
or
"roll
over" yield
—__v- 1,250,000
1961-1985
4.30%
for 1985-1988 Washington, general obliga¬ Zanesville, Ohio

early in the

_____

methods,
denced.

bills

market

some

provement

The

tion issue

maturities. Investor reception

im-

latest

awarded to the

was

nation-wide

same

evi- was good and the issue is reissues of ported about half sold.
- •

presently

This issue, rated

Monday (1/18/60) $4,sharply below: those "of last 000,000 Sheboygan, Wisconweek.
The
long
Treasury sin general obligation bonds
bonds

have

rates

also shown

sold

were

some

the

Commercial

nancial Chronicle's

Municipal

Bond

and

taken

this

This
is

further

week

the

gain

Manhattan

Bank,

scaled

was

to f a

has

average
been in

now

Yesterday (Jan. 20) State of & Company and associates,
$11,- This high grade west coast
and insofar as
municipal 106,000 serial general obliga- name usually attracts general
bonds are
concerned
it re- tion
bonds
to
the
Morgan market demand,
ress

-for

fleets
able

about

progweeks

three

North Carolina awarded

continence ofthat at First National Bank of ChifavoN Guaranty Trust Company -

times

sewn

The

these

issues

new

issue

volume

Bank-Shie ds

and

dealers

to be

seem

Halifax County,

others.

The

issue

matures

for

were

the

moderate
tations

and

Municipal Securities

•/

♦

were

point to
point in some

Vnderwriters and Distributors

Corporate

most

demand

from one-half
than

instances.

than

issues
a

week

were

District, Calif.
1

and

suggests

the

some

market

tone

continued

ac¬

INCORPORATED

Co.
^

Exchange—American Stock Exchange

Broadway, New York 5, N. Y.

Telephone: REctor 2-7800

New York

—

Detroit

Teletype: NY 1-3489

good demand too. Im¬
proving toll revenues, more

efficient operations,
—

Chicago

—

San Francisco

—

Los

a.m.

12,467,000

1961-1980

10:00

a.m.

1,180,000

1961-1985

10:00 a.m.

Angelas"

higher
more

truck

3,750,000

1960-1984

10:00 a.m.

Park Ind. Sch. Dist., Texas__

1,000,000

1961-1980

8:00 p.m.

1,500,000

1961-1970

7:30 p.m.

Deer

Kane, Cook and Dupage Cos. Sch.
District No.

46, Ill.__.____

4,450,000

Yorba Linda Water

District, Calif.

generally

and

recognized

•

1,670,000

1966-1995

7:00 p.m.

February 4 (Thursday)
School District, Mich.__

1,865,000

1961-1986

8:00 p.m.

Jefferson Parish, Consol. Drainage
District Noi 1, La._____^________

1,000,000

1961-1980

2:00 p.m.

Jefferson

Parish, Fourth Jefferson
'2:00 p.m.

Drainage District, La.__________

2,000,000

1961-1980

Miami-Trace Local Sch. Dist., Ohio

1,652,500

1961-1981

22,000,000
1,100,000
1,910,000

1961-1965

11:00 a.m.

1964-1984

11:00 a.m.

New York, N. Y

Oberlin, Ohio
Osseo Ind. Sch. Dist. No. 279, Minn.

1:00 p.m.

7:00 p.m.

1965-1990

Plainwell Community School Dist.,
'

Michigan
Angeles,

Wash.

Education,

>%.

1,010,000
1,700,000

1960-1985

8:00 p.m.

1962-1984

■; 2:00 p.m.

1961-1980

7:00 p.m.

1960-1985

8:00 p.m.

February 5 (Friday)
County Board of
Va

1,600,000

February 9 (Tuesday)
Otsegq School District, Mich._____
Public

(local

Housing

1,750,000

Administration

Authority bonds)

102,830,000

________

None

Stillwater

Independent Sch. Dist.
834, Minn
Washington Suburban Sanitary
No.

____

District, Maryland

___

1,932,000

1963-1986

10,000,000

1:00 p.m.

1961-1990

iy)
February 10 (Wednesday)
South

Haven School

4,700,000

1961-1980

10:00 a.m.

2,330,000

1961-1989

8:00 p.m.

1,155,000- 1963-1990

Dist., Mich.__

10:00 a.m.

February 11 (Monday)
10

February 15 (Monday)
Dallas, Texas

relatively

traffic,

1:00 p.m.

Sch.

____

8:00 p.m.

11:00

Concordia Parish Sch. Dist. No.
Louisiana
/_____—

seem

1963-1990

1961-1977

Shreveport, La.

bonds

a.m.

Austin Independent Sch. Dist., Tex.

been at¬

Indiana Toll road

a.m.

9:00

1,000,000

and

Members

120

Authority issues have

9:00

1961-1980

1963-1991

tracting
investor
attention
and
gains
are
substantial.
Among many others, Ohio

Established 1905

New York Stock

pike 3%'s have also improved
more than a
point during this
period. Botlj New York Power

1964-1980

February 3 (Wednesday)

point during the past

cumulation. The Kansas Turn¬

McDonnell &

____•

Port

a.m.

—__—

N. C

3T4's and 4%'s. Both of Berkeley County,

way

these

Rights and "When Issued" Securities

quo-

w^fhe nunotaCTon
'

Specialists in

part

and

11:00

1,090,000
1,675,000

Milwaukee County, Wis.____
South San Francisco Unified

■

1961-1974

Ind.

Goshen School Building Corp.,

with favorable
incredibly persist- cago, the Continental Illinois investor attention, the second¬ /
Greenville

Company- ary phase of the market was
has been
coming to market m White, Weld & Company-Bear
generally active too The dolmanageable proportions. Is- Stearns & Company - and iar
quoted
re'Venue issues
suers

meeting

Were

a.m.

1,000,000
.1,500,000

College Dist., Cal.
Fridley Independent School Dist.
No. 14, Minn.

Lubbock, Texas

While

technical factors

11:00

1,200,000

Cerritos Junior

issue

1964-1989

February 2 (Tuesday)

Sacramento, California

yield $500,000 of bonds remain in of America-Chase Manhattan3.642%. The quiet upward account at present.
Harris Trust &
Savings-Blyth

trend

Fla.

•

school

Chase

1:00 p.m.

2,600,000

Antelope Valley Joint Union High
School District, Calif

the The

1960-1988

;

Development Commission,
(St. Lucie County Issue)

likely.

The

Florida

the

indi-

Development Commission,
(Sarasota County Issue)___'

seems

district, also awarded
large block of bonds :on
market average over the
past 3.50% yield for,1979 and 1980 Wednesday. $10,000,000 serial
week, of about one quarter of maturities. This high grade
obligation bonds scaled
to
a
point. Last week (1/13/60) pffering attracted
consider- yield 3.65% for the 1984 ma¬
the average yield was
3.661%. able interest and less than turity, were sold to the Bank
cates

Fla.

afternoon for

good reception

4/255,000
3,900,000

January 29 (Friday)
Florida

will

Orders

Savings Bank.
Morgan Guaranty Bank and

State and

Index

Trust

ris

Fi-

maturities.

both issues. A

impro^ement in light volume, tional Bank of Chicago, HarThe

yield 3.70% for the 1978-

1979

First- Na-

Free School District No. 22, N. Y/
Springfield City School Dist., Ohku

scaled

was

January 28 (Thursday)

•

Oyster Bay and Babylon Union

higher than

the Fuel Tax Issue,

(1/18/60) went

•

syndicate.

___

10,000,000

1961-1980

%• 1:45 p.m.

February 16 (Tuesday)
Northfield-Macedonia
% District,

Ohio

Local

Sch.

1,200,000

1961-1980

Noon

Number 5918

Volume 191

The Commercial
and Financial
Chronicle

endar is not considered heavy,
-their money after years
important • issues have been of lower rates but their acceprecently scheduled for Janu¬ ance is gradually implicit.
ary
and February. Dallas, Actually the /higher interest
Texas will offer - two issues rates that prevail, and seem

(259)

This announcement is neither
Bonds.

The

offer to sell nor a solicitation of an offer to buy any

offer

sale of $12,467,000; about the same general
bonds- This is the lowest level

2/2/60. Waco, Texas will

general ob¬

$6,000,000

offer

bonds

1/26/60.

yield) in 25

less.

Despite

volume

$2,400,000

ligations bonds and
revenue

est

$25,000,000

level.

1 . obligation

gen e r a

First and
-•

(high¬

-.V-V.v.v

this,

the

-.-.V---,

Dated

New

Port

York^ money is needed,

definite date
maturity
schedule is reportedly 19671980. The Port, always care¬
with

bonds

ful in its

The

timing of

bers

••

-tr-'»;•./ '
•>

/.,.

•

/•

**. t'/.'Y''-"

r.i

•/*

y r*

Due February 1,1990

:,*•

V-

Copies of the Prospectus may be obtained in any Stqte from only such of the
undersigned as may legally offer these Bonds in compliance
,.
with, the securities laws of such State.

•

• —

and 6%

the New

has

MORGAN STANLEY & CO.

Canadian

money,

Stock

PUTNAM & CO.

fSTABROOK &

CHAS. IF. SCRANTON & CO.

& CO., INC.

THE FIRST BOSTON CORPORATION

EASTMAN DILLON,

DREXEL & CO.

CO.

UNION SECURITIES & CO.

Ex¬

that Alexander

become

with the firm in

-higher prevailed
a long
period.; Four to
high grade bonds have:
commonplace through

York

announce

Thomas

high interest rates. Prior to
5

change,

unaccustomed

become

that time,

long

Oppenheimer, Neu & Co.,
120
Broadway, New York City, mem¬

During the past 25 years we

and

•

Price 99% and Accrued Interest

receptive and

Department for
Oppenheimer, Neu

issues,

new

seek a more/: receptive
period in the seemingly im¬
proved market trend.

1959

Thomas Heads

may

have

•?

set.

sale

record

higher rates, as
might, obtain at times;
$6,629,000 general obligation; during 1960, should not deter
the
bonds on 3/2/60.
issuance
of
bonds
as
The

»•-••

February 1, 1960.

amount. Even

Authority has authorized the the market
sale
of $30,000,000
serial orderly.

*r-;-

•;

Antonio, Texas will offer they

San

Bonds, Series P

Refunding Mortgage

•

....

years more or-

was

of these

is made only by the Prospectus.

totaling - $18,000,000
on likely
to remain for
some
2/15/60. $10,000,000 will rep-: time, seem not seriously frus¬
resent general obligation debt trating to state and munici+
and $8,000,000 will be reve¬ pal financing. From last June
nue
supported
debt. / Mil¬ •to the present, the municipal
waukee
County,
Wisconsin; bond averages have been at
plans the

associated

GOLDMAN, SACHS & CO.

HARRIMAN RIPLEY &

KIDDER, PEABODY & CO.

securities.

Incorporated

charge of trading

CO.

SMITH, BARNEY & CO.

even

over

6%
been

SARASOTA,
Heaton is

long financial history. We
again becoming accus¬
tomed to this general market
level. State and municipali¬

was

>"/A//:/.'

(N. Y., N. Y.)

Angeles, Calif
Baltimore, Md
a

BOND

1974-1975

1978-1979
1977-1980
1978-1980
1980
19801979
1977
-

January 20, 1960
QUOTES

—

Bid

PAINE,

WEBBER, JACKSON & CURTIS

January 21, 1960.

3.20%
3.35%

3.50%
4.10%
3.90%
3.65%

3.90%
3.70%
3.50%
3.85%
3.80%
4.15%

4.05%
4.00%
4.20%

>1980

Index

3.90%
3.40%
3.75%
3.70%
3.15%
;j:

NEW

any

ISSUE

Issue

(as

INFORMATION

GREER HYDRAULICS, INC.

Maturity

+ 1/4

4.63%

Common Stock

(.*)

Price

1071/4

100

1-1-1974

Yield to

4.42%

(Par Value $.50 per share)

PUD No. 1

10434

Cfiicago-O'Hare Airport
1-1-1999.,.

235,139 Shares

Net Changes
from Prev. Week

Offering-

Price

whole)

Call

1-1-1978

January 15, 1960

3.642%

AND RELATED

First Callable Date

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

This announcement is neither

(Prices and yields are approximate)

Chelan Co., Wash.
5°o 7-1-2013

DEAN WITTER & CO.

Asked

4.05%
3.55%
3.90%
3.85%
3.30%
3.30%

1980-1982
1978-1980
1978-1979

3V8%
3H>%
3%%
3)4%
3Y2%
3V4%
3)4%

Los

DOLLAR

Maturity

1978-1980

3%
3%
3%%

York (State)
Pennsylvania (State)

name-

SERIAL ISSUES

33/4%

(State)

Jersey Highway Auth., Gtd.__

New

•

F. S. MOSELEY & CO.

Co.:

ZVz%

Cincinnati, Ohio
New Orleans, La.
Chicago, 111.
New York City, N. Y

LEE HIGGINSON CORPORATION

117 Cen-.

formerly with Paine, Webber,
& Curtis and Goodbody

Rate

(State)

Vermont (State)
New Housing Auth.

securities

Jackson

MARKET ON REPRESENTATIVE

New

WHITE, WELD & CO.

of D. W. Heaton & Co. Mr. Heaton

not like paying more

Connecticut

Donald

—

engaging in

tral Avenue under the firm

are

California

Fla.

STONE & WEBSTER SECURITIES CORPORATION

Opens

business from offices at

our

ties may

D. W. Heaton

106

Chicago Reg. Port
4% 7-1-1995

4.60%

-1

7-1-1962

85»4

+ V2

4.01%

5-1-1966

103

931/2

(••')

4.19%

1-1-1965

10334

731/2

+ Vz-

;

Highway
434% 1-1-1998..

1-1-1978

Indiana Toll Highway
31,2% 1-1-1994

911/2

10434

+1V2 '

Time,

1-1-1962

103

851/2

(*j

4.32%

103

1021/2

(-)

4.11%

10-1-1962

103

731/2

4- 3b"

4.99%

7-1-1960

104

931/2

+21/2

basis of four additional shares for each five shares then held.

4.62%

The Underwriters have

1-1-1964

108

8912

1-1-1958

104

851/4

+l1i»

1031*.

agreed, subject to certain terms and conditions, to purchase

unsubscribed shares and, both during and after the subscription period, may offer
shares of Common Stock as set forth in the Prospectus.
any

-Maine

1-1-1989

^iS3Ao)IISrl,ts
J.30%

Turnpike Authority

5-1-1994
Massachusetts Port

5-1-1962

Authority

434% 10-1-1998
Jersey■ Turnpike Authority
338% 7-1-1988...,
'

New

•

105'4

104

10-1-1969

1-1-1995.,..,..'
7Jo0lk,Powei' Autlrority
4.20%
M.20O6

+ 34

3.73%

103

1-1-1963

9334

835s

+ 38

4.08%

{*)

4.23%

8314

103

1-1-1970

+ T4

7-1-1960

•1031/2

Ohio;Turnpike Authority
6-1-1959

WftS8Cif¥i"iK
Project, Calif.

8658

+ 38

3.99%

103

8U4

+ 14

4.15%

7-1-1963

Tinae!a1J,u,7ikt

103

6-1-1959

1031/2

+ 11'2

4.66%

7-1-1959
9-1-1959

Unchanged.

J*5} 7-1-2004

Copies of the Prospectus may be obtained from the undersigned only
in states in which the undersigned is qualified to act as a dealer in
securities and in which the Prospectus may legally be distributed.

4.00%

99\fz

?tno°'Vi,l'Uway Authority

_314% 6-1-1992....,

Subscription Price $4.00 Per Share

4.44%

1031 '2

.7-1-1958

3.20%

7-1-1994

4.97%
4.29%

•
.

Ne*York Power
Atuhorlty

+ 10%

1,2_.

//•

104

+ 14

3.97%

105

8434

+ (4

3.80%

York

January 29, 1960. /

3.73%

Kentucky Turnpike Authority

4% 1-1-1994.....,....;
Turnpike Authority

to the holders of its Common Stock of record at the close of

5.27%

7-1-1967

3.40% 7-1-1994
Mackinac Bridge
Authority

offering

January 14, 1960, the right to subscribe to 235,139 additional shares of

its Common Stock on the

Authority
338% 10-1-1994.....

Subscription Warrants evidencing such rights will expire at 3:30 P.M., New

Kansas Turnpike

Company is

business

5.46%
'

Jacksonville. Fla. Exp.
414% 7-1-1992

The

37'B?; 11-1-2005.......a.

Illinois Toll Highway
334% I-I-I995
Illinois Toll

1031'2

Grant Co., Wash. PUD No. 2
f

10312

4-1-1962

Florida Turnpike
Authority

Bornham and Company

The Commercial and Financial Chronicle

(260)

."Thursday, January 21, 1960

DEALER-BROKER

Banks—Comparative figures
the
15 largest
banks in the

United

Week

AND RECOMMENDATIONS

Bond

Governments

state

and

Broad¬

120

Equipment

—

Review

Ira

—

Colgate-Palmolive
New

Street,

available

Co.—Analysis
Co., Inc., 1 Wall

York

reports

are

Y. Also

Lynch

Corp. and P. H. Glatfelter.

in Jet

Airlines

Agre

Review—

—

John H. Lewis & Co., 63 Wall
New York

St.,

5, N. Y.

Burnham

15 Broad Street, New York
Also available in current

5, N. Y.

Foreign Letter.
Canadian

Gold

Mining

in the atomic

Ltd., 25 Adelaide % Street,
West, Toronto, Ont., Canada.
:'
Market—Bulletin of fi¬

nancial facts—Annett & Company
Limited, 220 Bay Street, Toronto
1, Ont., Canada.

Yielding

5% or
& Co.,

Inc., 74 Wall Street, New York 5,
N.

York

the

hawk

State

Stock

Original

State

Sites—In¬

Plant

industrial

resources

served—Niagara Mo¬
Corporation. Dept.

area

FO-1, 300 Erie Boulevard
Syracuse 2, N. Y.
t
.

—

Bool^let

on current
and
Transfer

Batten

Co.,

—

Bulletin

1835

—

Street,

N. W., Washington 6, D. C.

Foreign

External

up-to-date

§tn
between

son

stocks

the

used

Averages

Se¬

curities—Tabulation of 1959 YearPrices—New York Hanseatic

End

Corporation,
York
a

120

discussion

standing

Broadway, New
Also

available

price

estate

and

the

industrial

-Dow-Jones

the ,35

industrial

over-the-

stocks

used

the

Treasury bonds.
Insuiance

Products & Processes—Booklet
for

and

Booklet

1960 reap¬

—

Union

—

Railroad

Prospects

Bulletin

Broadway,
Also

New

available

York

Electric

and

Ilandley

14, Calif.

Securities Outlook

Japanese Stock Market—Study of
changes in postwar years—In cur¬

Walker

Ltd., 61
N.

Co.,

Broadway, New York 6,

Also available

of -the

outlook

for

review

Plant

and

Equipment Expenditures in Japan
for
1959
and
brief
analyses' of
Mitsubishi Heavy Industries,
Nip¬
pon Flour Mills Co., Iwaki Cement
Co.

and

survey

the

Steel

Industry.
Japanese
mation

Stocks—Current
Yamaichi

Infor¬

Securities

Company of New York, Inc., Ill
Broadway, New York 7, New

—

Co.,

Power

2
Y.
of

Com¬

memorandum

1960

ask

—

for

—

copy

lected

stocks

report

—

for

investments

H&mblower

Department

FC\84

se¬
—

Weeks,
40 Wall

—

Street, New York 5, N. Y.

Report

—

Co., 45
New York 5, N. Y.

Wall

Street,

Babcock

Eisele

Co.,

Wilcox

Analysis

—

Broadway,

York

New

Babcock & Wilcox—Memorandum

—Pershing & Co., 120 Broadway,
New York
Bank

the

5, N. Y.

bank

Booklet

growing invest¬

First California Company,

Incorporated, 300 Montgomery St.,
San Francisco
Barber-Greene

Company

—

Anal¬

Ten

Promising Stocks for 1960

North

Franklin

135

South

cago 3,
Bell

Salle

Street,

Chi¬

111.
Co.

Telephone

West

Power

the

Booklet

—

sources

Canada

Ferro

Pizzini

Corp.

Fahnestock

area

Growing

industrial

re¬

served—Utah

Light

—

Hills

Power

Power and

Light

Com¬

Light Company, Rapid

City, S. Dak.
Bristol-Myers

Memorandum—

—

memorandum

First National

City

Louisiana

—

First

for

Compo Shoe Ma¬

chinery Corp., Republic Industrial

Corporation and Utility Appliance
.

Motor Wheel

—

Memorandum

Fricke

French,
123
Street, Philadelphia

Broad

9, Pa.

Also available is

randum
Food

New

Memorand um —W oodcock,

—

Moyer,
South

memo¬

memoranda

Machinery

dustries.

Cor¬

dum—Blair
Broad

Co.

Incorporated,
New York 5,

Street,

Harsco

Corporation

Hirsch

Co.,

New York

Corporation

—Analysis—William R. Staats &
Co., 640 South Spring Street, Los
Western

States

Life—

Celotex Corporation—Annual Re¬

and

Ohio

Hudson

Metallurgical

National

Analysis

—

Broad

New

Fan-

Chemical

Analysis

—

Joseph

Sons, 120 - Broadway,
5, N. Y. v^.V

York

—

Continued

Street,

page

4, N. Y.

Pulp & Paper—Memoran¬

memorandum

SECURITIES

Georgia Pacific.

New

York

available is

5, N.

OUTLOOK

Also

tabulation of repre¬

Canadian

Limited—Analysis—

business

Doherty Roadhouse & Co., 335
Bay Street, Toronto, Ont., Canada.
Indian

Head

—H. Hentz

new
a

Mills, Inc.—Analysis

Co., 72 Wall Street,
New York 5, N. Y. Also available
is an analysis of Hoffman Elec¬
tronics Corp. and

circular

County

Guaranty

Memorandum

Our

—Van
Wall

Report—Chesapeake
Railway, 3800 Terminal

Harvester

—

interest

Department
our

serious-minded

investors.

—

Copy F

request

52
Y.

available
are
reviews
of
Atchison, Topeka & Santa Fe and
Fruit

Research

Review

Alstyne, Noel & Co.,
Street, New York 5, N.

United

investment,"

publication topics of special

Golkin, Bomback & Co., 25 Broad
Street, New York 4, N. Y.
International

attractive

discusses in this issue of
,

Title
—

together with

possibilities for 1960.

the

Railroad Industry.

for the

prospects

year,

selected list of securities

with

Also

1, Ohio.

The January issue of our
timely survey assesses

Securities.
.

Oil

G.H.Walker&Co.
ESTABLISHED

1900

Co.
Members New

York Stock

Exchange

STREET, NEW YORK 5
Bridgeport

St. Louis

Hartford

Providence

Cable Address: "WALKERIAN"

Thermo

Potash Co. of America

Accounting Card

Primary Markets In

Dynex

Whatever
credit

Trading Markets

edge
with

your
business' working
capital
and
needs, Talcott has the
experience, knowl¬

and

resources

Talcott

Talcott Financing Service*

...

.
•

TRUSTER, SINGER &

•

CO.

•

Members New York
Security Dealers Association

call

to
or

help
visit

ACCOUNTS

you.

any

Talk

Teletype NY 1-376; 377; 373

Bogue Electric

over

Dashew Business

offices.

our

Machines

RECEIVABLE

FACTORING

INVENTORIES, EQUIPMENT,
INDUSTRIAL TIME

REDISCOUNTING

REAL

ESTATE

SALES

BarChris Construction

LEASING

♦

PLYMOUTH SECURITIES

Trinity Place, New York 6, N. Y.

Co. and

Co.

Distillers

Corporation

Inc., 1510 Chestnut Street, Phila¬
delphia 2, Pa. Also available is a

Railway—

Annual
Ohio

Chemical

Sutro Bros. &

—

dum—Sheridan Bogan Paul & Co.,

Rockland Utilities, Inc.

Walter

Distillers

Analysis

Armstrong Cork

Walker

Imperial

—

Co., 120 Broadway, New York 5,
Y., Also available are reports

steel

Manufacturing—Memoran¬

California

brochure—

Co., 120 Broad¬

available

Financial

c a n

New York 5, N. Y.

way,

Analysis—Hill, Darlington & Co.,
Street, New York 5, N. Y.

sentative

California

Allen In¬

—

40 Wall

poration, National City East Sixth
Building, Cleveland 14, Ohio. Also
a-memorandum

m e r

and

L. F. Rothschild &

Corp.

Chemical

Barge

45 WALL

Electronic

-t-

Also available

Motorola—Analytical

National

Granite City Steel.

N. Y.

White Plains

IIAnover 2-2400

institutional

Inc., 120 ;; Broadway,
5, N, Y. Also available

bulletins

are

Trading Favorites

Portsmouth Steel

Co.,

Kpppers.

Imperial Chemical Industries Ltd.

Gas.

Cleveland

Tower, Cleveland

investment, and a memoranda oh
Consolidated
Freight ways
and

are

Bank

Street,

1959

King Corp.

Pont

port—Secretary, The Celotex Cor¬

financial institutions

candidates

stock

—Bulletin—Bache & Co., 36 Wall

Chesapeake
For

1 Wall Street, New York 5, N. Y.
Also available is a list of common

Commercial

Mortgage Co.

Dept. A-7, 419 Park
South, New
York
16,
Y.—$3.00
(ten day free ex¬

amination).

Rockwell

;/>J; >■<

Inter

Crown

ysis—Francis

—

Co., 65 Broadway,

Standard.

report on West Coast Life.

—

Midland Ross Corporation—Anal

Oppenheimer & Co., 25 Broad St.,

Publishers.
N.

Filer

Company—Analysis—

Gude, Winmill & Co., 1 Wall St.,
New York 5, N. Y.
/ I
"

New York 4,

Avenue,

Herbert

—

Op¬

iii.

Magnavox

Corp.

Memorandum

—

Gorey Com¬
pany, Russ Building, San
Fran¬
cisco 4, Calif. Also available is a

tions

Buckingham Freight Lines—Mem¬

Report

Call

A. G.

—

Co., Incorporated, 120
South La Salle Street, Chicago 3

memorandum

Bickle

Angeles 14. Calif.

Review

—

Yprk 6, N. Y. Also available

Company Limited, 44 King Street,
West, Toronto, Ont., Canada.

Co.,
Box
899,
Dept. K, Salt Lake City 10, Utah.
Put

General

New

Wills,

—

poration, 120 South La Salle St.,
Chicago 3, 111,

Recent

Industries—Memorandum

orandum

& Hanly,
100
Street, Hemp¬

Magnavox Co.

New York

Eastern

Memorandum

—

stead, N. Y.
Chest

Inc.—

Cable.

ganization,

Orange &

Bulletin—Edwards

Stores

Also available

memorandum

Frantz

ysis— William Blair & Company,

Arkansas

—

Street.

—

20, Calif.

Co., Inc., 30 Broad St.,
4, N. Y.

O'Neill

New York

Drug

New York 4, N. Y.

Broad

Dayton Rubber Company—Analy-; Morrison-Knudsen
Company Inc.
sis
Butcher & Sherrerd, 1500
—Bulletin—De Witt Cohklin Or¬
Walnut
Street,
Philadelphia
2,

Y ork

America—Color

available

Cunningham

review—George,

Inc.—

Jerry Thomas &
Co., 305 South County Road, Palm
Beach, Fla.

—

Libaire, Stout

King,

—Q

e r

Properties
—

Co.,£ Inc., 25
Broad Street, New York 4, N; Y.

Goldman, Sachs & Co., 20 Broad
Street, New York 5, N. Y.
Also

Ridge

Memorandum

—B.
<

Sensible Over-the-Counter Stocks
u a r

Coral

Memorandum

—

Co.,

-—

McKinnon, 2 Broad¬

New York 4, N. Y.

Black

Survey For
F — G. H.

Company,
South La Salle

Pa.

Company

Understanding
for 1960—141

Hardware.

York.
Market Outlook

pany—Annual report—Black Hills

Treasure

—

1960

analysis

pany,

Securities

For

Goodbody

—

Moore

rent issue of "Nomura's Investors

Carbide

Corporation. 30 East 42nd Street,
New York 17, N.Y.

praisal—Robert H. Huff & Co., 210
West Seventh Street, Los
Angeles

Beacon'V-Nomura

developments—ask

Telegraph
Herbert E.

—

Co., 52 Wall Street, New

5, N. Y.

ment—

Virginia

Stocks

Stern &
York

4, N. Y.

tax

tax-eligible

Memorandum

—

compari¬

listed

and

research

Internal

Co.

Folder

—

New York

Rates

Telephone

American

Chicago-

Illinois

Analysis—Hardy & Co., 30 Broad
Street, New York 4, N. Y.

analysis of Mead Corp.

Anaconda

Florida Real Estate

Transfer

Co.—Analysis
—Hayden, Stone & Co., 25 Broad
St., New York 4, N. Y, Also avail¬

way,

showing

Peck,

American-Marietta

Thomson

Over-the-Counter Index

Adams

—

Broadway, New York 5, N. Y.

West,

rates—Regis¬
trar
Company,. 50
Church Street, New York 7, N. Y.

Tax

120

National
Quotation
Bureau
Averages, both as to yield and
market
performance over a 20year period — National Quotation
Bureau,
Inc.,
46
Front
Street,

and

Issue

Memorandum

Company

Incorporated, 231
Street, Chicago 4, 111.

American International Bowling—

able is

Power

counter

and

Federal

12, La.

—

pany

Stocks

—

parative figures—Scharff & Jones,
Incorporated, 140 Carondelet St.,

New

Common

age

<New Orleans Banks Stocks—Com¬

formation

Better—Bulletin—Walston

anc&kpace

Hemphill, Noyes & Co., 15 Broad
Street, New York 5, N. Y.

Booklet—Draper Dobie and Com¬

Canadian

Street, New York 5. N. Y.

gain wider

Trust

Analysis—The

—Orvis Brothers & Co., 15 Broad

will

which

New Orleans

Stocks

Era—Discussion

New

metals

use

View—Monthly Invest¬

ment Letter—Burnham and Com¬

pany,

Metals

Becker

Continental Illinois National Bank

Analysis

—

Ladenburg,,
Street'

—

N. Y.

Trucks

Droulia

—A. M. Kidder &

The

Corporation

New York 4,
Mack

6, N. Y.

Ana¬

—

Thalmann & Co., 25 Broad

Ga.

Aeroquip

Brochure

lytical

York

Citizens &
Southern
National
Bank, Broad
and
Marietta Streets, Atlanta 2,

THE FOLLOWING LITERATURE:

Co.,

Longview Fibre Company

Haupt & Co., Ill Broadway, New

municipal issues—Bond

Department,

Sparks

Memorandum—

—

New York 5, N. Y.

Clark

Weekly

—

way,

commentary on governments,

UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

TO SEND INTERESTED PARTIES

Trust

Bankers

—

Department, 16
Wall Street, New York 15, N. Y.
Company,

INVESTMENT LITERATURE

IT IS

States

Corp.

Chrysler

U. S.

•

221

FOURTH

Other Talcott

AVENUE, NEW YORK 3, N. Y.

offices

...

CHICAGO

•

DETROIT

•

LOS ANGELES

•

ORegon 7-3000
BOSTON

ATLANTA

CORPORATION
LIBERTY

Dlgby 9-2910

STREET
•

•

N.Y. 6,

•

N.Y.

Teletype N.Y. 1-4530

127

Number 5918

Volume 191

The Commercial
and Financial

Steel Production

attitude

higher

Food Price Index

TRADE and INDUSTRY

Auto Production

Commodity

can,
think
sure, lilinK
we

ma^-ipal factor in
.

Althn»«v>

pondering h'8her steel costs

careful

aive

+J+ho
the

consia-

>iriPint find

alw»v«

says

threat

is strong.

the cover page, the without

roster

of contributors includes,

•

irr~

^ yin.g ln the
as increases

;

versonaaes

the

"T.

will

users

have

reasonably

good stocks.
An

uninterrupted

steel

supply

is certain with labor

peace assured
for the next two and half years

w Ret'usal to absorb freight costs
and a definite cutback of out-of-

develop

soon.

year

change

ago,

$40.33.

was

sizable concellations

be attributed to

can

Steel Output Based on 95.2% of
Jan. 1, 1960 Capacity

Scattered requests for delayed
The American Iron and Steel
shipment or for a stretchout of Institute announced that the oporders previously entered are in- erating rate of the steel companies
dicative of the

titude-

relaxed

at-

•

mat

catch

brief

anoiner

definitelv

wait

Although

does mot

sales

continued

see

many

they

quarter,

mignt

too

seem

executives

for-

strong demand for

products

forward

striice

short of stock. Now

them

utuizauoii

01. wte

Jan. 1, 1960 annual capacity of
148,570,970 *l*f tons. 1 Estimated
*7n Q7ft net
percentage for this -week's fore¬
cast, based on that ' capacity, is

expect their
r
to be as

(based on 1947-49 weekly produc^lon) was *164.4% and production
2,641,000 tons. A year ago the ac-

books

they

l'°

A month ago the operating rate

the

don't

fully specified

2,727,000 in the week

Jan.

second

order

steel

(hased on average weekly production of 1947-9). These figures
compare with the actual levels of

neededBuvBr^ri169.8%' and

iear

*168.8%

average

capacity for the week beginning

quirements and telling mills that
tonnage- previously requested on

TtenLive bTsil L

will

W 2^^ jSffSftSj beginning

Current supplies of finished
in
consumers'

most

any list price advances.
.

have had

plants total about 10 million tons, riskv*
half the normal size. By May,
* y'

These include:

in buyers' psychology.

tight.

steel., products

;;

result

profit

Produce

was sounded Jan. 18 by

long

that

normal inventory working levels

The Iron Age" points out that

noted

nrtcUtion

they raise

Mav

know

remains

magazine

steel Inventory Recession

participants -in Uur yearp^™^, ^ of
sy mposium^ on the subject. As higher steel costs to users, even
wen
-c,

have

their

that

Overstocking

, possible

steel industry

^■■■■:■

market

feeling

operation,
make

prices late this year, they will have
missed their market peak.

hww

steel indnctw

vieips ana opxn

expressed herein by the?>are jprobable.

ions

the

which

for the reader

eration to

I he

,,uonrl

while

Price Index

mills,
cost

have

the

labor settlement, but steelmakers

P[lce uncer- v A warning to metalworking
pardonably are };]rsjeel companies/companies to guard against overOf no better nrL
steel after reaching
OJ no oeuer puce ?^™°Uthel °n Possible stocking
increases,
the

wcuZ

they

Business Failures
j

not present in the small

mdlfThese

Carloadings
Retail Trade

hs:ue

(261)

Electric Output

>; The State of

This being the CHRONICLE'S
Annual Review and Outlook

Chronicfe

were

when

a5 wlc\.weie
t^l^ekiv^rt^^^asulk^
U ™,hlin Dfo
3 definite cutback of OUt-of- and ample steelmaking capacity AU11^
for every product. But since depromment in public life, an district shipments.
users *eared resumption of the ™a0A weekly tdhs, or *128% / piaced
at 2,056,000 prodiaction was
strike.
extraordinary cross-section OJ
Product substitutions. In the mand for flat rolled products will
January steel output may break
the
nation's leading indus- tight market that prevails, users be strong, a shortage "feeling"
the
*Index of production is based on averrecord, the magazine gaid
malists
bankers and finanacc^Pt a higher-cost product will persist.
£.-■ N-'d-'-.-X
-fnr
the
mn<tf
wh.en a lower-cost item, which is
Steelmakers hope that what Monthly steel ingot production ag<! week"'pr,,d,,c,i<>n1947"49
1;jrl

•

Written

Ciers.

/ satisfactory for

happened

is not avail-

use,

part expressly for triei^tl tiUftl-r able.
1CLE, the articles constitute
Continued movement of prenn
invaluable set of quide- mium-priced steel. Brokers and
"+n
neneml onnnnmin sma11 warehouses are still able to
posts to the ge
move
high-cost steel,
although
Olltlook

perhaps,

and,

the

urgency

gone

from

after

the

strike

1956

won't happen again. Even though
steel users were assured of uninterrupted supplies for at least
three years, they boosted their
stocks to 25 million tons and invited liquidation. Result: An in-

this

may pass

the 12 million ton mark.

1959

December's output of 11.9 million
tons

but

narrowly missed the mark
still
eclipsed the previous

record

(last

May's

11.6

million)

wide margin.

Last week,

steelmakers operated

Steel>Production

totalled

Over 93.4 Million Tons

furnaces
in
the
United States produced 93,436,813
net tons of ingots and steel for
castings during 1959, according to
the preliminary report of AmeriSteelmaking

importantly, to the expecta- segment of4the market. But major ventory recession in late 1957 and their furnaces at 95.5% of capacity, can Iron and Steel Institute. The
Hons for the Specific compo- users-will take high-priced steel
1958.
V
slightly above the previous week's total was the seventh highest in

nation's entire

f the

economy.
Clearings Up 1.1% Above

Bank

Week

1959

will
show an increase compared with
a
year ago./Preliminary
figures
compiled
by
the
"Chronicle",
based on telegraphic advices from
week

this

clearings

Bank

in¬
ended

the chief cities of the country,

week

the

for

that

dicate

occur.

Among

If the year in 1960 is drop/tons. Output: About 2,721,000 ingot the history of the industry and
price of a 135-million- rate.
8
million
tons
above
the

needs> which continue
the

ingot-ton
to

mills, price
talk is at a minimum, even to
the point of saying they are un¬
likely until November, if then.
But this

major

rather
and
A

out-of-sight-out-of-mind

settle for

million

offer to sell

was

nor a

now

1961..;

prices rose last week,
"steel's"
composite price adScrap

vanced 34

cents to $41.67 a gross

85,254,885 tons made during 1958.
December

11,980,000

production totaled
net tons, an all-time

the

ton, the first change since Dec. 9.

monthly record. The output of the

reported by

Suppliers expect heavier demand

Continued,

relaxation

scramble for steel

This announcement is neither

they'd

1961,

125

105 ^million

/slight

over

million

solicitation to buy

any

of these securities. The offering is made only by the Prospectus.
^

NEW ISSUES

January 19,1960

16, clearings from

Saturday, Jan.

all cities of the United States from

which

possible to obtain
will be
1.1%
for the corresponding

clearings

above those
week

last

totals

against

Our preliminary
$26,910,319,041

year.

stand

week in

tive

summary

York

•

1?)60

Convertible into Common Stock at any time prior to maturity or

Chicago
Philadelphia

1959

1.359.054

788,867

—

Complete

clearings

+ 10.7

712,689

Price 100%

bank

the

Plus accrued interest from December 1, 1959

the nation
appear on page 45 of our Monday,
Jan. 18, edition.
Mow

throughout

Long

Will

per-

1.8

•

details

earlier redemption at $12

before November 30, 196A, and at $13 per share thereafter; subject to adjustment.

3.6

1,147,000

1,126,000

on or

5.8

1,408.309

Boston

share
—,

S13,926,297

.$13,111,358

Due November 30, 1971

Dated December 1,1959

000 omitted—

J'in. 16—
New

for
the
leading
during the past

follows:

Week End.

6% Convertible Subordinated Debentures due 1971

1959. Our compara¬

centers

money

the

for

$26,617,963,302

Company

$2,000,000

same

week

The Benson Manufacturing

weekly

130,000 Shares of Common Stock

Industry

Steel

Maintain Present Tempo?

(Par Value $1.09 per Share)

Just how long the steel market
retains

how

its

tension

users

depends on
inventory

their

set

05.11$ecirP

policies, "The Iron Age" reports.
The

the

answer to

tion, whether

general

continue

ques¬

inven¬

tory buildup after, shipments and
inventories
come
into
balance,
can
a

make

big

the

difference

average

There is

immediate

the steel market

will
as

But that

now.

Faced with balanced shipments,
will

ilicling

policies,

Janney, Dulles

affected

influences

"The

Iron

Howard Weil,

Labouisqe,Friedrichs

Incentive

Relatively low,
to
keep

costs

keep

inventories

comes

Boenning & Co.

nancing,

down,

as well as

This

Raffensperger,

carrying, large

Berwyn T. Moore & Co., Inc.
Robinson &

Hughes & Co.

Company, Inc.

Incorporated

stocks of steel.

Incorporated

Cruttenden, Podesta & Co.

Childs, Jeffries & Thorndike, Inc.
J. H. Hilsman & Co., Inc.

Davis & Davis

from desire

economy

I.M.Simon&Co.

.„J Company

com¬

in¬
further
bolstered by the prospect of tight
money and the high cost of fi¬
of

Reinholdt & Gardner

& Christensen, Inc.

con-

inventory

Age"

Peters, Writer

ments.

fluence

Neuhard, Cook & Co.

& Battles, Inc.

products

begin to meet
demand. For others, particularly
llatfrolled, the market will stay
tight through June.
users

Hallouell, Sulzberger, Jenks, Kirkland & Co.

easing

change in the second quarter

some

hwfully offer these securities in this St Pe.

S. D. Fuller & Co.

Bioren & Co.

says/
,

be obtained from only such of the underwriters as may

between

third quarter,
the national
metalworking weekly
or

Copies of the Prospectus may

Ernest M.

Fuller & Co.

C. F. Cassell & Co., Inc.

Draper, Sears & Co.

page

116

The Commercial and Financial Chronicle

(262)

Gas,

Growth of Natural Gas
In the Nation's
'

*'•

Economy

which

they
definitely -have
wholesaling Jem
>•< J .v *■;
pipe¬ solved,"

now

•

Transmission

Company* Houstdn, Texas

Oil,

will

which

continue its

great progress, despite difficulties, in

the

tion

the need for compensatory rates of return;

opinion,

understood

least

but

the

for

lives and

our

economy

the

fuel

with

sources

Almost 40%

the

nual

internal

the

population
the

this

world's

airplane wings. It

modern

our

country

once

wells

and

from the

burned

day

ergy

logical

advances

huge supply of fuel en¬
available, and the skill of
our engineers and
technicians in
putting it to use.
Machines,- powered
by
fossil
fuels either directly (or indirect¬
ly,
by creating electricity,
for
example)
do over 95%
of the
in

would

people

as are now

Our

fossil
of

cause

fuels,

their

alive

origin,

Its

ized.

the

first

be¬

the

util¬

age,

gas

our

gen¬

assets.

gross

ranked

now

industry

faster than

that

sion

Un¬

til recent years it fueled our rail¬

such

ized the United States faster than

other country in history.

the

probably
other

any

Co., with

the

transmission

Tennessee

has
ma¬

lines-

Gas Transmis¬

which

other

is neither

bur these securities. The

asso¬

ciated; its subsidiary, Midwestern

offer

sell

nor a

solicitation of

offer

offering is made only by the Prospectus.

their volume- of
BTU's, coal declined

its

1959

contribution

•'

usage:

J speech

January 19, 1960

Such sales make for
the

had

gas

'--4.

the

FPC,/gas is not w. Also this year will,see an
urge
being, allocated .a large enough for government regulation of
the
part of the cost of drilling for oil end-use of gas; as the real
goaf of
and gas, i.e., that gas field prices
the controversial drive of the
being

dicted

kept

that

low.

too

this

would

producers' .incentive

to:

decline

would

reserves

consumers .would

-In

other

find

one

gas,

fuels

an.

policy*/it

One

•

has

said
conversely
that
consumption of fuels should continue

interesting development or
being observed on the
which

seems

a
GAS, 32% of consumption; 33%
result of producer regulation.-In
of production;
r
I
:
several cases, oil companies with
COAL,
25%
of
consumption; substantial
gas reserves and pro29% of production..
;
duction have gone direct to major
The place of natural gas as we
industries,' electric utilities and
enter
1960, then, is that of the other
large gas users within the

relative

determined
costs

by such forces
specific loca-

tions; efficiency of use, depfendability of supply, cleanliness
convenience and

of control '

ease

utilized

most

three

great

the

na¬

together
basic

fuels, which
provide
the

only

not

for

energy

might, but also the

modern-day
life

make

venient

than

and

for

power

appliances

ever

industrial

our

free

before

hand

here

labor
else¬

where.

But the progress of natural
to

state

where

able

uncommitted

have taken

and without

gas

that

have
result

would

applying
to
regulation. I

the

from

the

tidelands

Supreme
1960.

Court

For

such

facilitate

and

procedures.

$5.50

ownership issue
does not stop development, how-

utility-type
inclined to think,

ever.

•

however;
that
there : are
not
Rate Matters
not been free of troubles or prob¬
/enough such
/available to . / For m
gas
companies
in.
lems, nor will it be in the future. appreciably affect the volume of
ciuding ours> the most serious and
Let's look at some industry de¬ gas
which
must .seek
market
important phase of regulation afvelopments and problems.
through interstate pipelines. They
fecting our business is that of gas
haven't
affected Tennessee Gas,
saies rates.
And in that field, it
There Is One Problem—
at any rate.
^
is the problem of rate of return
Regulation
<

Jales

Regulation is

try's problems.

of the

one

Not

indus¬

much

Kcit
Expectecl

The FPC

despite
think

it.

But

has

all

helped

in the long-lines part of the in¬
dustry to keep our growth order¬
ly and sound.
But

the

amount

regulation,
the complexity of it, the time
lag
between applications and
rulings,

something that takes
industry thought, time
money, which means added

lot

and

costs

The

consumers.

ness

of most of

1954—of

its

them

Federal

shows

aware¬

problems/But

stem

from / the

task—starting with

regulating producers'

gas
And that prob-

*5®$ u! cruPial- ^cie a"n"?1 ,cast
of debt capital to us and all other

companies

would

say,

Will

Y '

developments

fairness

Decision

v
FPC

the,

fact of regulation, for the
industry
has grown during regulation, some

Stock

per

The year 1960 should see several

Case,

decision

which

The

for

the

Commission

any

government bonds,

rules,

emphasize

appealed,

the

time, I cannot

Federal

consumers

that increases in the cost of debt
capital

jected for'future expansion, but
costs actually experienced—must

case

transportation

important to the industry,

The FPC had denied a certificate.
The Court reversed and directed a

—

not

merely

costs pro-

be recognized.: And the recogniContinued

is neither

DARYL
•

INDUSTRIES, INC.
f

•

»'

•

Common Stock
signed

other dealers

underwriters, dealers

may
or

brokers

securities, and in which the

Pierce, Carrison, Wuibern, Inc.

Goodbody & Co.

be obtained from

only in

are

may

of the under¬

states in

qualified

Prospectus

any

to act

dealers in

Price $5.00 per share

...

Copies of the Prospectus

The Johnson, Lane, Space Corporation

Jack M. Bass &

Company

underwriter^, including

may

bjp

obtained

the undersigned,

may

any State only from
such o) the several
lawfully offer these securities in such State.

Courts & Co,

McDaniel Lewis & Co.

(30<t Par Value)

which such

be legally distributed.

McCarley & Company, Inc.

peals decision in the Transo-Con-

January 21, i960

over-

and

Commission

Power

offer to sell, nor a solicitation of offers
of these securities. The offering is made only by the Prospectus.

the

solidated ; Edison

announcement

buy,

get

The Third Circuit Court of Ap-

general/position

At such

matter what the FPC

time

same

out of

formula.

seems/certain

the

opportunity to take their dollars
their savings accounts and
5% on traditionally the most
conservative
investment
of
all,

Zwerdling's
recommended decision, which in
general would prescribe a public
utility
type / cost
of
service
No

improvement has ocurred
•

S. saver and investor, so that
recently individuals have had the

studying- Examiner

the

first

now

regulated as utilities
steadily over the past

years.

broad

producers

put

risen

several

Phillips
Supreme Court

1954

regulation

time.

has

regulation,

gas

will rule in the

that

under

NEW ISSUE

•.

Copies of the Prospectus

business

The

225,000 Shares
Price

com-

today's important position has

prices in the field.

Share)

for

simplify

them
am

bill to free

gas

ours, which is drilling
in the tidelands, settlement of the
matter once and for all would

dir.e
been

predictions producers
making

panies

one

the

decision, in

degree, this represents

some

natural

Ownership
before

intrastate

users,

regulation.

realization

and

reserves,

producers
from
regulation, the
chance for passage in this election
year is non-existent. \

the job of supply-

over

■

they have these siz-

ing gas for such

which

comfortable/con¬

This

per

Secretary of the Interior Seaton

Horne's Enterprises, Inc.

(Par Value $1

legislation an .adf vantage over the other" two fuels
said /which * coal;'has been;
unable;to

man

kind.

wrong

Coast

Gulf

appears

trend

a go.v-

attempt; to/achieve

and*, regulation

suffer.

words,

industry for what they cqll

pre-

-reducev ernment

that

haps the

OIL, 43% of consumption; 38%
production;.
'
' '

Commission's

235,000 Shares

before

cases

many^

Common

indus-

not enough regulation is going on,,
gain in the free market.
fuel .the other said too much, or per-//;

all

over

Power Commission

New Issue

proximately these figures for the

announcement

use.

selling

gas for

coal

all add up to

This

load

are

fuels

two

competitive position.
Our
preliminary figures indicate ap¬

nation

jor industry in the past 20 years.
Its growth has been based on

powering steamdriven machinery that industrial¬
any

have

indus¬

great

V/',

fifth

grown

It helped usher in America's

industrial

exist.

expansion
the

stories

success

Natural

three

are

Techno¬

eration.

was

which

population

one

trial

the

increasing

were

heat units

second

were

flares
night.

and

growth

become

number.

Coal

many

called

and

centrations

labor

since

But

the fuel preferred over any other
and piped everywhere large con¬

earth.

fiery

with 1958 both in BTU's

even

produced and consumed.

un¬

metallurgy
and
welding
made
big,
long¬
distance pipelines possible.
Then
the ugly duckling became a swan,

nation—work

our

the

was

nuisance

equivalent hand
require 80 times as

ugly duckling of fuels, a
stepchild of oil. Huge quantities
of it were piped away from oil

that

wanted

enjoy the
highest standard of living.

done

This was.about

5% increase registered
Coal, meantime, just about

tion's
gas

wasted

work

sys¬

Fastest Growing Industry
Natural

It is little known that this results

which

highway

well-

the

it
auto wheels.

globe and

known
we

held

after

1901. -Fueling

can

7% of its land.
Gardiner Symonds

volume

Possibly more than any one
substance, it changed the Ameri¬
way of life.
:-

U.S., although
have only
of

1859/

tem.

trial

high

the

by oil.

combustion 7 engine, *

many

led

the

',
industry

And in this century, it put a good

world

the

Well

put America first

energy

Drake

Spindletop

an¬

consumption
occurs

the

known

became available

energy.

of all

became

goods
all parts of

nation.

Oil

providing

people,

for

materials

raw

the

■

basic

and

country

our

settlement

and

.Ian.*

three

opening

twice

f
:"v/

transportation

played

part

than in 1959.

roads,

important facts of today, in

most

the

the past

tween 9 and 10%.

and $2 billion expenditures are estimated for 1960— 1
$200 million

operations

transporting valley

growth is shown to have substantially outdistanced produc-

growth;

maintain

in the field; \
no right to assert
authority over
Second, an oil industry spokes- end-use
10 years. •
of
;
"
gas'/' which
it
had
5 - In
the twelve months of calen¬ man in a gas producing and ex*/ asserted in the case."
-V
1'
dar 1959, it is estimated that nat¬ porting state issued a statement
'
.>
• v■j, :/•>>'U a*
/
ural
gas
consumption
rose
be¬ contending that in producers'rate ;^bat ; Coal Is Seeking to Obtain

which

the

will
of ^ gas

ability

FPC. most, efficient operation of a
pipehearing claiming the FPC should line system, at the lowest
MCF-"
be investigated by Congress for
mile transportation cost. *not preventing
more, effectively; '
The Court reversal was
based
the rise
in producers'
prices' of /on the position that the FPC

enjoyed

has

1944,

50% growth, of

occurred

made

the

ownership of tidelands and the outcome of

reserve

One

f r;

regulation in 1960—are discussed; confidence is expressed that
FPC will face up to

the

1960

has

factor

state

time 'pipelines

same

recently

twos other

our

past 10
years.
Coal is down 37% from
1944, most of which has occurred

ahead. The difficulties and how they probably will be

overcome—such
rate

since

than

40%

and the years

what

assets, growing faster than any major industry in the past 20 years,

will prove:.: .1
First, a? Congressman from a
gas-importing '.and
consuming

merits made about the

industry has tripled, dou¬
bling in the last 10 years.
*
And

certificate be issued, and the
FPc
now plans to appeal.,, v ...:.
..-.If, the Court is upheld, it

ural gas

major fuels in those periods?

is depicted as the nation's fifth industry in gross

not

.Opinions about regulation vary
widely, as these two public state-, strengthen

Outpacing coal quantitatively and enjoying a faster rate of growth
than oil, natural gas

Thursday, January 21, I960

through Minnesota and Wis¬
consin this year; and Northern
Natural Gas. Since 1944, the nat¬

line

;

■

to Chicago and plans a

gas

By Gardiner Symonds,* Chairman and President, Tennessee Gas

Clayton Securities Corporation

page

126

Number 5918

Volume 191

The Commercial

and Financial Chronicle

(263)

elected

President, and Herbert V.
Prochnow, • Vice-President,
was

elected

-l

•

■■

■

•

>;1

.• • ■

...»

;

,•

was

elected

1945, was elected Honorary
Chairman of the Board, a new

dent

and

President

•

The Board created the title

•

—

;

tors

since

.."

■

Cashier;

Vice-President

•

Stockholders

position.

'v,

•

partment.
Raymond H.
Becker,
Vice-President and' Cashier, was
elected Senior Vice-President and

James B. Forgan, who has been
the
bank
since
1909
and
Vice
Chairman
of
the
Board

Revised Capitalizations 2

•

Vice-President.

with

BANKS AND BANKERS
Consolidations • New Branches • New Offices, etc

Executive

Senior

■

Vice-President

and

pro-

and

Meyer,

Comptroller,

Senior

Vice-Presi-*

Comptroller.

Promoted

James

Charles

from

The

First

Chicago,

Na¬

Illinois,

Jan. 12, elected two new Direc¬

the

Board.

elected Directors
A.

Assistant Vicewere

Division

Bank

Freeman,

The

newly

Mr. Gaylord

are

Jr., and Herbert V.

Prochnow.

Vice-President

Baxter

tional

Edgar M. McKinstery of Di¬

The' stockholders

approved

the

plan for the five-for-one split of
the

capital stock proposed by the

Board of Directors last Oct. 9. The
,

S Ka°

vision J in the Commercial De¬
present $100 par shares will be
Chemical Bank New York Trust Vice-President-Comptroller,
Company, New' York has selected-bert F. Softy, -from. Comptroller com Vice-President and head of partment, and Horace WCondit, reduced to $20, and the number
four new members to its advisory
to Vice-President, Osmond Aikea-V/-°- ■* ■
president and head ot 'Charles E. Troughear and Eller- of outstanding shares will be in¬
boards, ChairmamHarold H. Helm head, to Assistant Secretary, WilP the Trust Department, was elected
creased from 1,250,000 to 6,250,000.
ton A. Lodge of the Trust Depart¬
announced today. They are: Holgar 'liam E. Hill, to Assistant Secre-.- a Senior Vice-President, and con'
Continued on page 15
•;
' ."
j. Johnson, who is named to thfer taPY,> ,. ^ •'v •• y.-.Xfi,..: /V;,..tinues as head of the Trust De- ment;
Bank's Upper Mid town Area-Ad- ..
•.
r. *
-v. v. '
i f
visory Board; Edward U Steiniger,., Jack,- Haiisman Cand
Mvron. M. '
to
the r Rockefeller . Center ;Adr Simonson, .b.oth Directors of the visory
Board,, and George F. former Central . Bank and Trust
;
This is'neither an offer to sell nor a solicitation of an offer.ta buy any of these, securities.
James, and. William M. . Weaver,
Co. t which merged with 'Meadow
•

Central ;Area Brook; were elected Directors of.

Jr., to the. Grand
Advisory Board. .

the Meadow Brook National Bank,
Bank New York Trust West Hempstead, N. Y.

Chemical

The offer is made only by the-Prospectus..

;A.

....

...

New York has elected
members to7 its Advisory

'•

*.•*>

' X

XJl

No/

New Issue

■

ai'.:

■

;

Company,

five new

-rtLon
Bank's 30

.V.'t-v
Total

Broad

Samuel Nass, to the

visory Board;

THIRD

;

UNION

CINCINNATI,

OHIO

F™t

Bank's- Queens

the

visory Board.

•

undivided

334,776,132 j 317,286,320.

•

95,532,592

profits

;

100,000 Shares

83,958,206 >

The

Board

83,855,071

6,790,084

Ad-

5994790

Lockhart

Directors

the

Common Stock

.•

;

Duke, President, Chairman of the
Board
and
C. Malcolm
Davis,
Senior Vice-President, to^ucceed

" AAY;a

Appointment of Kenneth P. Heer
as
an
Assistant
Secretary
of
Manufacturers
Trust
Company,

($1.00 Par Value)

President. Horace K.

announced by Horace .Sorbin, whom Mr,. Duke succeeds,
Chairman
of the-was named Honorary Chairman of

New York is
C.

Mr. Duke

Corporation

Fidelity Union Trust Company,
Newark, N. J., elected Roy F.

•

June 30,*59

$353,070,981

u. s. Govt, secu-

Fremont C. Peck, to the
Brooklyn
Advisory Board, and
Victor Gallucei, and Wallace Paddon,

$371",010,071

75.155,533

B0WHr

Boaid,

TRUST

"Dee?. 31,'59

•

resources—

Jennings, to deposits1 z
Art
<Cash and
Street Ad-,
from
banks

Thev are: Alvin R.
.

FIFTH

COMPANY,

Harold H: Helm

Boards, Chairman
announced.
the

THE

Flanigan,

Board.

1938.

the

joined

Bank

Price $11.50

the Board. The changes are effective immediately.
/ vH-V-'

Heer

Mr.

V./
-/....Mr. .Duke, with the Bank since
* *- -y * •
•
>.
V • -1916, is retiring March 1. He was
Appointment of .William. J. Ken-a elected President in 1954 and has
ney as Assistant Vice-President in
been a Director and a member of
the Comptroller's Division of The
Fidelity Union's Executive Corn-

•

...

Bank of New York was announced

Jan.

Simmonds,

Albert C.

mittee since
.

Jr., Chairman of the Board.

The

:•

Grace

J *

.National

•

Bank,

Edward

Charles

elected

has

Malcolm Davis.

Underwriter only

qualified to act

as a

dealer

Prospectus may legally be distributed.

new

•

Schwabacher & Go.

Directors

the

Fidelity Union Trust Co., Newark,
N, J., voted Jan. 19 to supplement

•

J. A.

'.the cash dividends;paid in 1959

•

Board

The

Director of the Industrial'

four

Hornsby Wasson, and

son,

been

Bank of Commerce, New York.
,

in securities and in which the

:}t

Preusse,

he obtained from

Bank,

!!;

may

in which the Underwriter is

- Robert S.

Aborn, Directors.
*

the

states

directors were elected. These were
Corbin, Robert M. Jack-

New

1943.

Copies of the Prospectus
in

At the annual meeting of share-

holders

York elected William H. Chisholm
and

Per Share

The Banks :for Cooperatives, New wRh a stock dividend of 25,000
York offered Jan. 19 $109,500,000 "shares. This is in the ratio of one
of 5.15%
Consolidated Collateral share for each 22 shares held. The
Trust
Debentures, due June 1, dividend will be distributed on

Hogle & Co.

J. Barth &-Co.

Edward L. Burton & Company
January 21, 1960

1960, at 100%. The offering is : Feb. 15 to stockholders of record
being ' made
through
John
T. -0n Jan. 25.
'
Knox, Fiscal Agent! fop the Banks,
This isvthe fifth stock dividend.-:
.

with

the

wide

assistance

selling

dealers.

•

Proceeds
will

the

: ;

nation- • declared by the Fidelity
securities ; Trust Co. since 1951.

financing

the

refunding of

$113,000,-

of. 4%%
Consolidated Collateral Trust Debentures due Feb.

Feb.

1, 1960.

;

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

buy any of these securities.

The offering

regular quarterly cash
a share, payable
to stockholders of record

•

January 20,1960

NEW ISSUE

Jan; 25.

•

Dr.

This announcement is neither an

also

of 750

dividend

000

Union

Directors

the

voted

by the Banks to-

Board

The

from

be applied

ward

group

$7,500,000

Melville Bell Grosvenor, was

*
*
*
elected a Director of the Riggs
Savings Bank National Bank, Washington, D. C.,
Brooklyn, New York announced' succeeding
the
late
Dr. John
that Charles D.
Behrens, President Oliver La Gorce.
since
1948,
had
been
named
•
*
*
v*
Chairman to succeed Winthrop Bank of Amherst, Amherst, VirTaylor, retired.
ginia, and The Lynchburg Na■

The Kings County

Louisiana Gas Service

First Mortgage

Company

Bonds, 5%% Series due 1985

Charles

named

man,

since

1955,

was

President, Charles H. Hoffformerly

urer,

Executive

Brau,

Vice-President

Assistant

made

was

51
*
*
National

^afayette

Brooklyn,
E. P.

Doelger,

William

•>
E. Cone and James -D. Vos-

Vice-President
u>al

the

Indus-

Bank
of
Commerce, have
elected Trustees of the Dime

ueen

avnigs

Bank

j"' New York,.it was anPrpP'/T
• Henry
W. Weber,
esident.
1

i?[a^

Young, President of the

atbush Savings Bank, Brooklyn,

fmi

14 announced the
voted by the

jouowing elections
oard

cago,
-

Trustees:

Copies of the Prospectus may be obtained from only such
undersigned as are registered dealers in securities in this

'• "
First

National Bank of

Chi-

uii„0is, Jan. 12, announced
the promotion of Homer J. Living-'
ston, President, to Chairman of the ^
Board, in which position he will
continue to be the bank's Chief
mann,

the

William

man

we,
from
Vice-President

Freeman, Jr.,

Stroud & Company

Board. Gaylord A.
Vice-President, was

Adams & Peck

Incorporated

Fulton, Reid & Co., Inc.

Hallowell, Sulzberger,

& Co.

DeHaven & Townsend, Crouter & Bodine

J^nks, Kirkland & Co.

Walter M. Hey-

who was Executive Vicebecomes Vice-Chair-

President,

W. C. Langley
Blair & Co.

cago>

Executive Officer.

of the
State.

Illinois,

accrued interest

Robert C. Becherer was elected a
Director of the Continental Illinois
National Bank & Trust Co., Chi-

Williamsburg!*,

nruin

Merchants National Bank & Trust
Co., Indianapolis, Indiana, elected
Clarence O. Hamilton a Director.
««

;..

Price 101.64% and

Bank; and

•'
4

•

Director.

-John

Bank

Y., elected

National

-Lynchburg
to 'Trust Co. '■

Treasurer

Co., Lynch-

consolidated Jan.
4, under charter and title of The
Virginia,

burg,

Treas-

succeed Robert Freifeld retired,
t

tional Bank^and Trust

J. S. Strauss & Co.

Stein Bros. & Boyce

.;
tic

Insurance Shares

either

will continue to be "growth" situa¬
industry and the factors said to

valuts

submits the inherent

the turn for the better, Mr. Cartwright

of many

this

companies should increase at the year-in-and-year-

To illustrate what he

look

vestor

inviting to him.

investment virtues of these com-

Shares investor"^heTire-ca^uaity pTntes

ctaHred
stocks started

and

good

demand

out

and

;

for

fell

observer

business

haunted
there

staggering the
companies

Oldtimers

Many

there

rallies
but

Levering Cartwright

feeble

wp
We

favorable

underwriting

months

began to dissolve the first
quarter blow.
In recent

the market has

years

reports that the companies are
required to file with the California
Insurance
Department. The
drop in the market due to first
quarter losses caught the professionals off guard because they are

/ accustomed to the fact that this is

always
If the

never

wasnT

Perhaps

But

nadir

period.

r
can't
ran

will

dence

that this is

can

luck and
luck ana

old-

cvcles
cycles

answer and

there

it is hearten-

comnanies

see

whole

acting

de-

accumulation
soned

and

stocks

proved

Lrte

in. They

are

facing

situation

to the

and

They

remedies regardless of how

days

shj

to' me

companies

mined

got

t ]ast t0

nQt tQ

if the leader-

have

"theil. >teeth

mak"

KSvu?'

Effect

r/"';/'

save

Will,

theof omission. continue to be
,futu?e .to

growth

Many

resolution

conditions,

cope

will

the

great
coijipanies

with

the task is
life

however,

now

insurance

markpt

to reconfirm that

are

also

burden

Overall

that

say

seems

(based

upon

un-

correct

identical

accounting procedures) 1959 after¬
tax
earnings will be about the
1957, after tax earnings
That is to say, the tax has rubbed
out

the

would

increase

otherwise

earnings that

have

announcement

h> neither

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

hay

any

I he

of these securities.

been

gen¬

erated

during the past two years.
parenthetical proviso, is ur¬
gent, for the 1959 statements are
going to be built with the utmost
new

income tax law.
are

procedures

available to the companies for de¬

ferring

income

and

these

may

to
depress the appearance
earnings. You have to "cher-

serve

RAD

6-LITE,
Common

chez

INC.

taxe"

lights

developing
|»y

s*>tem

cmergrney

ence

and

disturbed

SECURITIES
ARE

for

4J/2

Copies of the Prospectus

This

announcement

SAEFEO
A

offer

ing

"sleeper,"
look

that

for

is neither

kind

hppn

market

ought

reflect-

expectation, the stock¬
be given agreeable

holders

may

su^Prises from time to time; it is

unlikely they will be disappoint¬
in the long run.
/
The
long, range
prqspect for

good

insurance

stocks

remains

favorable.
Insurance

Stocks

That

insurance

situations

include:
Hartford

Fire

Insurance

Com¬

"Yankees" (Of

The

pany.

prop¬

erty insurance.

1960

its

come

dend

of $10.00 per share and divi-

payment

well

tion
clude

able

which
a

have

what

$3.00, they
a celebra¬
certainly in¬

stage

would

stock

Travelers

only

dividend.

Insurance
many

Co.:

another

offer

sell

nor

solicitation

January 20, 1960

INC.

per

Share)

Copies of the Offering Circular may be obtained
from the undersigned in any State in which, the

undersigned

may legally offer these shares in
compliance with the securities law of such State.

NAME;,.
(I'leao- Print)

ADDRESS:
C1T V;.

ZONE:.,.,

TELEPHONE;

STATE:

MORTIMER R. RIJRNSIRE &
CO., INC.
40 Wall

150th

anniversary. With investment in-

Price $3.00
per

Hud-O Lite. Inc.

Are

Inviting

COMMON STOCK

that

If investments are made
in life insurance situations against
such
an

■r
without obligation, prospectus

reason-

growth.

FASTLINE,

56 Beaver Street, New York

100,000 Shares

be obtained from the undersigned.

witnpcc.

•

But it should be

(Par Value 10<i

me.

the

the electronics and missile

fields.

J0I111 G. Cravin Co., Inc.

Gentlemen: Please send

in-

not

buy any of these securities. The offering
made only by the
Offering Circular..
,

are

With

life

the

havp

the

market

Underwrite!;

stocks

f»f

vehicles.

S1.50 per share

may

influ-

During that

years.

New Issue

PRICE

and

possibility of

are

market

nervous

THESE

general, it is well to have
the tax question resolved.
It has

Company i» in the Ini^ine^ of designing, nianufaeturing, installing and leasing electronic building
tralfie

not

The

system*

new

indications.

been

protection

reading the

and

surface

Stock

Par Value >.25 Per Share

controlling

figures

view

the exception of the

Inviting

numerous

letting

is that many

insurance

subtlety to the complexities of the
There

300.000

constructive

finding

•

prices

prices.

boom

5n%

1955

that I -share

life

place

equivocal and emphatic chorus of

when

selling at attractive

un-

The

This

the

surance

span

meltine

-'ind all
/the?
part

one

this

answer

was

stocks

•

the

During that

;

the* July

good
•

nroDortions?

////a/g

■

them come
or
of the way
in jagged fashion, the values were
mounting impressively, measured
by insurance in force assets and
surplus. ' ; •
•/->. ■•*• y. VV-.
the

/;v.■.//''
tax

+ •

same

inguranre

the

J-

Correction ;»

market

interesting

glares

the

0f life insurance operations to

1959 Trends in Life Insurance

reetion.
from

are

Life

Companies

changing

continue

"growth" situations,

„

v"'

of Tax Burden
.

Pr°Peny uaDllu/ insuianc® question
one
of

that

y,,

a
The last four years llav
have ,corna wholesome period of cor-

increasing

Tho DroDGrtv-lisbilitv insursnc^

field

ever

the

prised

population

ingredients
basically constructive.

and

those

growth.

'•

aceePta"ce of life insurance «>"stitute
the

liqui.

own

va;n eff01-t

deter.

preside a{ their

dadon

bone

are

and the

around.

1Ml

banks) and they

The

•...in¬

enough
;But those

A Wholesome Period of

Vleld on'"is more Than offsetting
bite.

/.>•

years

"deadengun finiche"

are

fme 35 th.ey <"a,Ve been, many

tax

weren't

James Joyce said.

The fundamentals

so.

close to 80 to 90% of these
whereas the bank pays

50%

There

compared

(as

1955^ when

stand-on end. r
.^
those were the
wrap-up.

companies

funds

of July,

sea-

something like 15%

earn

growth
looks

com-

dras-

earnings

the

are

applying

and

The great lncrease

alf

the foreath-

£0™pany President said to me:
What these brokers say we are
going to do makes-, your.- ha il¬

insurance

!?'p'°kcvestments

deploring the state that they

the peak

money-making

institutions.

the

^volution tna^

cjsively these days and not merely

been capitalizing

generously,

forthcoming

cnaoiic

Antnnio^ lon^rr

problem

petitive

underwriting results

mn-

the

favorable period for

with 8 to 12% for

rnn

"nor

xt,

every

For

jng

view

possible

that

through, but this is

huriness in whirh

range

this they

strength.

depend
on

brink

survive

on
in

nnnmn

reliance

see

when the

the

resting or stagnating,
The "action" has been in the
promotional field where the organizers and their
crews
have

that the* necessary evi-

that

say

saying

reiiance^n

timers*
umeis

time

calamity and go
and always gain

drew

and

believe

dures, the Forand bill threatening*,out

most-

yield

apparent

the market to respond

who count

pioce

were

ing a 1 to 2% or even lower rate taking stoiy of the postwar maron
a > life
insurance investment, .ket which
took life insurance
stockholder equity is being ac- stocks from storm cellar prices of
cumulated in his behalf that will
times earnings up
justify and, in due course, compel to 20-30-40 times,- and finally to

stockholder

raiing

.•

ly triggered by tax jitters.
Many

recent 5% government issue
the investor will have to be convinced that in return for accept-

investor skepticism.
There are the deep seated bears
all the hobgoblins

path. The down-beats

of the seasoned issues have been

made

was

period the, *liifG- insurance stocks
have cut a saw-toothed market

tax

emphasis

new

■

happier underwriting climate in ^en good investments because
reeent years and with each dis- they don't pay out their earnings.
.iUusionment came a hardening of These" t'hey'keep"''and'"compound,

many

implied that it would

!were

the year

seems

wont

were

was

disaster.

any

attempt

Thursday, January 21, 1960

the

the fire-casu-

often

were never so

business

this

point and
t

Hobgoblins

of these
apparitions in the field as today.

owners

gave up at

hobgoblins.

weather losses
;

been

false

msuiance,

this

•To

and

;

v-"

alty

with

fire

in-

place in

that

ulti-

not

are

With the

there is room

Often Haunted by

the/; roof
in, so to

speak,

is moderate, so

improvement here.

«"-1

the first quar¬

ter,

such year
will sure-

They

•then* during
-

a^ata be^me'^ntS-

witt

ated. Investment income has been
mounting and the dividend pay.

the year strong
yea
g

off

third

1960

hopes and what
appeared to be false starts toward

cult to live through for insurance

narticularlv

was

There'have

favor.

companies that

be brought under control then the

year

ly again claim high

diffi-

Last

consecutive

second

improvement.

series

the author appends 11

means,

with

year

then fire-casualty stocks

remain favorable.

the long range prospects for good shares

"the

proves

prospects for this industry, except for a possible sleeper, but

boom

does say

magnificent

was

vear

10% and that' the market should reflect this. He holds no

out rate of

buoyant premium volume and improved loss experience. Thus, although we may still be speaking
in terms of underwriting deficits
(especially on a statutory basis)

points out many are now selling at attractive prices. After

reviewing the problems besetting the
indicate

shelter.

immediate

basis.

mate
,

general 1959 will prove to be
a better year than 1958.
For many
companies it will be a far better
one
and
for some
companies it

firm specializing in insurance sfocks believes fire,

casualty and Mfe insurance shares

Year

will

tions and

Consecutive

.....

* .■ ■'
' -i'
situations. The com.*"
are
fully
taxed
today,

•

"growth
pames

Improvement

III.; Former Editor of "National Underwriter

Head of a Chicago

be.

Second

Cartwright, President, Carttcright. Valleau & Co.,

Chi at go.

-V," ■' • :
they may

•

revolutionary

and

seem

To Be Growth Situations
By Levering

Chronicle

The Commercial and Financial

(264)

St., New York, N. Y.

BO 9-7930

They

insur-

Number 5918

volume 191

trying to achieve—

house is

ance

•

and Financial Chronicle

eon

meeting

The

Co.; >; Rich
of common stocks available

will .beckon.

provides

Life

cord i

David

the

vocational
ucation

H. Cal-

B. Meyner

organiza¬

Home

tion

ordinary

insurance

to' Invest

could
4 to 1

the year for the
has been rumored.

the

finance.

stock

Life:

dividend

and

Board

ciation:

Many

Owns
nuts

winter.
each

$40.00

M.P.A.

Paul

laid
of

equities

share.

New

York,

founders

ip, 29.

will

; ; Mr.
with

Donaldson
G.

rank¬

the

Lufkin

Co.

associated

Milbank,

Main

em¬

toward

un¬

growing ! smaller

,y:

securities

and

the

been

winter,

and

made

Lawrence Rappee Opens
HILLS, Calif.

—

324

North

the firm
pee

with

Camden

name

Co.

Mr.

merly

private

with

Alkow

Drive

Lawrence

Rappee

Toboco

Co. .'

and

imm

the Ex¬

Professional Ins. & Inv.

Darius,
named

and

surers

the

New

Colo.—Professional In¬
Investors, Ltd. is en¬

gaging

offices

business

securities
at

East

104

Officers

are

Eighth

Charles

was announced
Foundation President Edward

Treasurer; and L. E. Nelson, Sec¬

for

1960.

appointment

Pierce.

Mr.

Pierce

Sampley,

retary.

is Vice-

Lynch, Pierce,
Smith, Inc.

Fagenson Admits

Leighton
is leading
Foundation's campaign in the
the

;

securities

counter

the
over

field

for

to
support
the fight on
arthritis, the nation's most wide¬

funds

Fagenson

Co.,

120

Broadway, New York City/mem¬
of the New York

bers

Stock Ex¬

change,
have ' admitted
Jerome
Frankel, member of the Exchange
to partnership. " "

Member

Federal Deposit

Fee/era/..Reserve

Insurance

System "'r [

•

tr;;:

Corporation

:DETROIT, MICHIGAN

Statement of Condition

December 31, 1959

;

Tin^e

RESOURCES
CASH
U. S.

DUE

AND

FROM

* 50,820,962.48

BANKS

146,098,602.23

GOVERNMENT OBLIGATIONS

STATE

MUNICIPAL

AND

OTHER

BONDS

STOCK

LOANS

FEDERAL

AND

FURNITURE

695,139.71

SECURITIES......
RESERVE

480,000.00

BANK........

AND

132,522,877.75

DISCOUNTS.

HOUSES

BANKING

OTHER

AND

17,185,639.74

BONDS

3,567,977.82

•'

1,075,357.25

FIXTURES

ASSETS..

TOTAL

1,776,062.02

give

and attention to your

some real thought
investments? Dras¬

tic

changes have taken-place in the se¬
markets during the past twelve
months.....Many common stocks are still
curities

selling at prices which seem relatively
high, historically, and top-grade bonds are
now
available at yields which haven't
been as high since the nineteen-t wen ties.
As you start a new year,

liabilities
DEPOSITS
OTHER

.v.

.........y

LIABILITIES

CAPITAL

list ol

visit

our

holdings with

may prove

$354,022,619.00

profitable

40 WALL

•

Providence

hour

our

thing

experienced

do and it G

to you.

Estabrook & Co.
Boston:

OFFICE, GRISWOLD
SERVING

6,131,326.24

PROFITS
TOTAL LIABILITIES

MAIN

one

the sensible

It's

men.

take

office and go over your

8,000,000.00

*••••••>

UNDIVIDED

$324,939,658,79
6,951,633.79

8,000,000.00

(COMMON STOCK)...

SURPLUS

•

$354,022,619.00

RESOURCES

CORNER FORT, DETROIT 31,

GREATER DETROIT

MICH.

THROUGH 47 OFFICES

STREET, NEW YORK

Hartford
•

Pouchkeepsie

•

Springfield

Investments & Financial Service Since
Members New York and Boston Stock

1851

Exchanges

Rap¬

for¬

versity concerned.

DENVER,

"to.

the Uni¬

Departments of

se¬

was

—

;

Law¬

under

enrollment

and

through

Rappee is engaging in a
curities business from /offices

As¬

individual

rence

Managing Partner;

was

Jeremiah

rapidly

BEVERLY

formerly

was

Walker

service.

is -directed

companies.

investment

years,

offers

specialized investment,

President; Michael T.
Keaveny,
Vice-President
and

Mr.

behind

'new

firm
a

broker¬

facilities,

covering -y,"and- ; eot t <e n s i v e 1 y,
researching investment ; opportu¬
nities, particularly in the area

approach to investment.
course,r sent
out
in six

The

President of Merrill

the

The

specialized

phasis

regular

underwriting

management

Jenrette**

offices

Brothers

...

designed to provide

investment

Member

Rheumatism

Allen

►

has

Arthritis

The

Life.

for

course

Avenue.

Foundation

Asso¬

Revere

;away

Directors

Division

Fennel* and

Protective

Universities

with

new

public^ with basic instruction

from

split—

ranted.

Massachusetts

the

Ontario, British Colum¬
Alberta and Saskatchewan.

Securities

following
split unwar¬

three

Mr.

the

ing thenl anlbng the youngest to
organize their own member firm.

sistant

Chairman of the Over the Counter

Sell-off

and

investors

banking, counseling and broker¬
age service^ Average age of the

partments

tension

Leighton, Chairman of

Incorporated,

This

Richard

Street,

again through the Extension De¬

Head Division of

;

and

.addition

age

Stock

mailings will be available through¬

by
Aetna

Money in Bonds
is
being
offered

sensible

York

Connecticut General Life:

announced

Your

Stocks"

and

out

re¬

operations well ahead.

has

the home-study course "How

should

re¬

and

Canada

Associa¬

municipal

vigor here,

sales

Dealers'

Co.

Exchange, has
been announced by
its"founders,
William
H.
Donaldson, Dan W.

perform

The Forum is composed of those
interested
in
various'
facets
of

5%.

new

life

that

the

Sheldon S.

with

Investment

The

Sells to yield nearly

sults will hint of

Study
^

The

bia,

York

Broad

Course

sub¬

Financing Plans
New Jersey."

Open

of; Brown

Harriman

ing firm of Donaldson, Lufkin &
Jenrette, Inc.,* members of 4he

corporation,

Western

State of

Hard

1959

Department

Formation of the investment bank¬

New

investor, and Mr. Jenrette: was
withVthe, Investment
Advisory

XjUIKIII

managing ■* directors.

Arthritis Drive

Life:

and

rehabilitation, and ed¬
physicians and the
"

TTvfbnn

& Jenrette

Lufkin

tion. Governor

competitive organization.
Earnings and growth impressive.
National

physical

T^nTlQlrlQrm
iJUIldlUbOn,

cure

for

Future

hitting,

Lincoln

and

cause

through clinics and

ject will be: "Fiscal Problems and

Associa¬

Life.

the

proj¬

disease,' service to patients

Meyner's

World

y,
J r.,
President of

premium of Farmers Inter Insur¬
ance
Exchange of Los Angeles
(for which it provides manage¬
ment
service),
owns
67%
of
New

t h

jlaxva

growth. Market has been reflect¬
ing good news for some time.

Farmers

e n

Club,
West St.,
New York, ac¬

tion: Recherche—Receives 20%

the

find

of research

Fri¬

Rob't

12:15

Athletic

Casualty

Underwriters

Downtown

Co.: Mag¬
nificent results in 1959 with great

Farmers

This one should
gain increasing respect;

No.

"•'•r'*•*

•

^the Roof Gar-

potential;

Continental

day, Jan. 29 in

with

new,, genes

Municipal general public.

p.m.

Springfield Fire and Marine In¬
surance Co.: Merger with Monarch
fine

of support

Foundation's program con¬

sists

held

great discount

timed plunge

$150.00 per share

ects

York

because of illinto casualty insur¬
ance
field.
Well along now on
come-back trail.
If New York
block to life companies owning
property
insurers
is removed,
liquidating value of better than
at

disease and

T '

Forum of New

vein

chronic

The

Insurance

Phoenix

spread

(265)

cripplef;

Governor Robert B.
Meyner of
New Jersey will address a
lunch¬

adjusted earnings of
share for 1959. ,\

show

$9.00 per

The

Gov. Meyner

Group " Associates:

Employers

To Hear

market.

May

•Municipal Forum

complete multiple line, integrated
operation under one roof.
They
have taken off the gloves
com¬
petitively and don't propose to be
denied their share of the insur¬
ance

the market

that

and you

...

; ;;

chips, depress prices unduly, it was dications were that their new,'
more
clearly a complete lack compact cars were being well
sessions,con¬ of buying support.
/ received, and that sales would

1960

market.

tern

stock

monotonous pat¬
early, selective

some

demand that dried up

The

outstanding
than not

times

quickly, Pont, which
more by
cuse,
since
on qual¬ has resumed
it to dispose

had its

' y

was

spurt

trial selloffs, but have shown

that

now

and

buoyant,

haven't

couraging effect of the indus¬

■V'r'11 ■■■'."•;'

change.. They

been able to shake off the dis¬

that the steel midway between the hxgh and
shortage isn't pinching pro¬ low. posted la§t year when it
casualty duction. Steels were far from, split its shares for the first

Casualty With Cause

been

have

Investors

following

couple

week's

this

for

With all the attention beingresistance
t o
t h e
decline]
paid to it, AT&T was one of
Their outlook is bright over¬
the more sturdy items in the
blue chip' section. It wasn't all, with only the possibility
of a strike as the big cloud in
completely immune to sellingthe 'future. Expectations are
squalls, but was lolling about

The retreat of the blue

the

Thursday, January 21, 1960

they; continued to sagpersistently, even though in¬

tinued

figure to become the big¬

VV;V"""

also contrary

were

that

gest money-maker ever.
Autos

underway in all but

STREETE

WALLACE

Financial Chronicle

The Commercial and

' (266)

time in

investors
worrying with

agreement will be
mid-year with

reached: until,

their workers..

history.:;J:.;4";;:>j c;:-

threat

The

•

enough to

was

One newcomer not n o r - keep the carriers restrained
foresight aboutv where- mally in the- spotlight- even although the well above aver¬
efforts to force
the familiar pressure
production will level off once, occasionally is United Carbon age yields., of 5 toy 6% are
available in. the quality roads
of its $3 billion inventories are rebuilt : and which
ity items, y;
was'given a lift by one
interest
in
General
Motors. the
supply situation is more service's■>' plug * for it as -- a -such as Santa Fey Chesapeake
Few of the better-known The persistent selling in this normal. In other times
theirt -"stock f o r. action." United & Ohio,' Nickel Plate, 'South¬
industrial empires were issue clipped it back a couple concern would extend
only as Carbon is primarily the lead¬ ern Rail, Union Pacific and
Great Northern.
spared in the selling, the cas¬ of dozen points from the final far as the glowing first quar¬
ing; supplier of carbon black
ualties being almost as nu¬ 1959 posting, nearly four ter results and not be antici¬
to the thriving rubber indus¬
/
"Snap-back'VCandidate
merous
as
the various ideas score points from last year's
pating some sort of slowdown try. But it also .is importantly
of what was causing all the peak, and carried it to a new in
Like Chrysler,*; New York
intrenched in the oil and gas
operations in the latter por¬
low for 1959-60. That is hard¬
Central is regarded by several
tion of the year. And for this
selling.
industry * which hasn't had
ly in keeping with the prom¬ the rash of year-end predic¬
commentators
as
the ; "snapmany candidates for the spot¬
to be

followed

once

the

ex¬

own

government

seemed

rare

Volume Favorable

The

ise

the

Glowing

Sixties.
difference in this

spot • was The only
turnover, which drifted along case is that the chagrin has a
a

der

three million pace.

scant

This is

the

about

million

pace

a year

line

with

and

excuse.

;

■

•;'"■

•

Elsewhere

\V".

year-end
act.

the constant

daw¬

just before the Electric had a partial reason
rally went into its for
retreating steadily.
Its
*

The low volume hinted that
it

was

late

runup

the absence of

buyers,
weight of the
which was giving

pated
to

last

year

antici¬

stock split in the issue

lead

the

Westing-

rather than the

house had established. But

offerings,

far such

the market such

There

was some

liquidation of
holdings. .Some
large blocks dotted the tape

occasion.

too

action has

not

come

hard time.

important

Selling of blocks

big for the market

to di¬

when

the

routine

single lots

along.
Perverse

American

Motors

American Motors seemed to
take

delight

trading abruptly

were

able to estimates

acting

per¬

dollars for the calendar, year.
The feat was first turned m

the

size

in this

Investment opportunities,
although

rare,

years ago

recently sold

As specialists in
an

than $50

Designate
American

hoating investments,'

per

in various

Cost

Telephone

its

small

stock

total

$11.49 in 1955 and from $2.29
re¬

1956

$13.75

such

reports steel strikes hobbled the
pany both
the period.

-Rails

of
in

the

with

cide

They

Pearson

the

com¬

early and late in

This

announcement

NEW

is neither

Now Corporation

(Special to The Financial Chronicle)

Calif.—Lile

PASADENA,
Inc.

has

investment

the

East

Green

business formerly

Officers

Street.

President;

solicitation of an offer to buy
only 'by the Offering Circular.

nor a

any
>

of these securities.
V

!-■

•

January 20, 1960

99,000 Shares

GENERAL COIL PRODUCTS CORPORATION
.

Common Stock
(Par Value $.10

per

Share)

Span America Boat Company, Inc.
Phone

R. A.

Holman
HANOVER

2-4890

NEW YORK

5, N. Y.

A.
1

address

•—-——,

zone

state,_

i
I

120

Broadway

N. Y. 5, N. Y.
BEekman 3-1600

BROD

Members New York Stock

CITY,

per

name

Copies of the Offering ( irculnr may be obtained onlv in
such States where the securities
may be legally offered.

Co.

INCORPORAT
STREET

Price

write for your copy

CO.

Exchange
931

Co.,

are

Robert D.
Joiner, Vice-President; and Diane
C. Rhodes, Secretary-Treasurer.
Lile,

ISSUE

Performer Boat Corporation

continue

been formed to

share.

by Buddy J. Lile under
-the firm name of Lile & Co., 1001

Winning Friends

ai^ofTer to sell

have prepared "

as:

conducted

{Railroads had some friends
It now
to exceed among: the market- analysts

The.offer is made

Corporation

"Chronicle."

those of the

sport—

request—discussing such companies

this article
time coin¬

any

1957.

year.

position

those

presented
author only.]
C
are

Mr.

last

Earnings for , 1959 ,are ^ex¬
throughout the pected to-make a relatively
without regard for the poor
showing since glass and
and

necessarily

not

up-to-date study of companies in this growth field—Y

available

54 WALL

of its domain.

areas

control, sale of proper¬

[ The views expressed in
do

months

$1.00 five'

shares.

out

$1,189 million until the later

have often been

exceptionally profitable. A stock that sold
.

consistently above
the line, although still not
challenging the GM profit of

$.1 billion

million

prominently. They
jumped from $2.13 in 1954 to

Biggest Money-Maker

seems

boating has become

ler

have been

Stocks
industry and America's leading outdoor family
with predictions for I960 better than ever!

8^4

General Motors' total is above

exclusive company.

calendar

years,

under

stand

the

are

was

by General Motors for 1955>, 283 million, and that of Ford ties with the smaller drain for
although not* repeated - since. nearly 55 million. So when a maintenance,; and a * g o o d
boost in carloadings could add
AT&T's results are running at
good year comes along, the
a rate that assures
it a place
per-share earnings of Chrys¬ up to a good year for the line.

better

and

new

BOAT Stocks

year

le«s than

to a
dramat¬

shows up

one

change

year

pinched

ports its results for the

item where the

Actually, Central has
being- been pushing, a cost-saving
Even the financial services given some attention but improvement program to help
were somewhat off the beaten
mostly, it seems,. because of itself internally. With a boom
road, or sticking to the slowi- its demonstrated habit in re¬ incarloadings,- estimates are
that savings of more than $20
er-moving, more - solid]; items cent years of showing the
such as American Telephone. largest snapbacks after a dis¬ million will show up in its
costs. One electronic classifi¬
'
Discussing the prospects of couraging year. " *• > '
cation yard alone offers an¬
this colossus was something of
l-.-*;-•••'• Y.v -H -if-'-'- * <f.-r.
t'f
nual savings of nearly $3 mil¬
a fad, now that.it seems to be
Chrysler's market volatility
lion and it is one of several
the second .'company headed is
in large- part due to
its
the road is planning to install
for a net profit of a billion small
capitalization of slightly

had to be made as off- versely, pushing ahead in
board, secondary offerings. dreary markets, and reacting
in

well

;

gest

But

were

vorite, ^Chrysler

whittling was largely without
dling days of November and solid explanation. General
December

that

•

un¬

ago
the

definite

bright

one

back"
hedged light in many months.
'
i i-iv;/''-..' '■■■-:y-;v: >;■:
over
steel operations late in
"i vtW 4', from
Interest in Chrysler
boom
1960 will have to take part of
the blame.
"
«
For the standard auto fa¬ ically.
tions

15th

St., N.W.

Washington 5, D. C.

STerJing 3-8000

Number 5918

Volume 191

The Commevcial

National

News About Banks
And Bankers

were

St.

Louis, Mo.,

Executive

the bank

Vice-

Executive Vice-Presi¬

dent and consultant.

a?d Roy A'
F f-s ^S'-.t-sss ? S=«;s.rviS
thefVank^l'^8^61''in char6e of from5 ^SDeeiar'11'3™'■ D1 ".LumPe
TOlhelmRand''^istaiR easier'et>resentat,ve• to

■

Co. Chicago, 111.-;
L. Thomas of the
department a Vice-Presi-

President

years

cago,

Michel T.

for

Island,

Vice-President

old

the

structure

tired.

cisco

mission

Neely remains with

declare

the

approval,

President

Island,

into

Rapid
Savings : Bank,' Big
Michigan, has converted
a -national
bank under the

title

First

Big Rapids.

National

Bank

which will increase by $50,000

With White & Co.

;

Bank's

capital

will amount to

Advisory Director. He

ST.

With

$350,000.

LOUIS,
is

feldt

capital

in surplus,, total

$350,000

the

pany,
of the

$700,000.

506

with

White

ftft

A
fti.

•-

•

.»•

••

Stock

the

Capitol

droth a'S

Abe

John D.
sistant

Jan.

Director.

Prentice, who

Vice-President,

Vice-President.

ted

George

December 31,

Forrer

also

was

As¬

was

elec-

was

Rudolph' F.

elected

retired." ;Mr. • Forrer '
his."membership^-on-' the;"

who

retains
bank's

Board

Trapp
ship

of •" Directors.

retains

also

-Mr.

his. member- •;

the bank's Board.

•'

United States Government

;Lyon

retirement

announced; his'

Executive
1

Vice-President,

■

•

6,233,043.09

;

Not Collected

9,161,099.47
7,704,836.55

Equipment

3,032,339.59

....

$2,722,698,442.44

LIABILITIES

Demand Deposits.

......

.....$2,041,110,744.00

was
■'

345,995,771.30

Deposits

Time

:T-

•

i
;

Income Accrued but

Total Resources

elected to succeed Mr. Lyon,
i

7,500,000.00

Bank.

Acceptances

Other Assets

Milwaukee, Wisj, on Jan. 12.
John J. Schweda, Jr., the bank's

)

206,408,823.42

31,229,512.71

Customers' Liability

;President -pf .the:;:
Milwaukee 'Marine.'1 Bank,

South

...

1,289,840,818.76

Stock in Federal Reserve

South

....$2,387,106,515.30

Total Deposits.

C. Harold

Nicolaus, President of
Cudahy Marine Bank, Cudahy,
Wis., .reported
that, alL of .the",

the

Directors

the

elected Jan.

bank

were

12.

Joseph

•,

Income
-

•

Ely, President of the
Waukesha County Marine Bank,
Pewaukee;, Wis., •' announced the'
election, of Herbert' C. Hackborth

■;

to the
neWly Created office of Ex¬
ecutive Vice-President.
•

■■

':•••

•

National

Bank

oL'

the

Omaha, ' Neb.,

election Vof

John

Bay, Duane Hillmer, Joe P, Mul--

National

Nebraska,
tion

Directors
Bank

'.;■;,

10%

irst

v.....

at the

The

Edward

St.

meet¬

stockholders

the

of the Board of

77,000
,

of record

the

meeting. This
increase the bank's

770,000
Par

of
to

KENNEDY, Chairman

* President -■ :

■ -v

'•

;

ALFRED COWLES
,

CUDAHY

Board
Cudahy Packing Company

WALTER J.

CUMMINGS

Chairman of

■

JOHN
:

JOHN

Swift &

Jones

and

John

ell, Vice-Presidents

First

ROBERT

HOLMES

JR.

Board of Directors

Fairbanks, Morse & Co.
PHILIP

Company

PILLSBURY

Chairman of the Board of Directors

JENKS

The

Company

H. MORSE,

Vice Chairman of the

Company

BOX H, CHICAGO 90,

Pillsbury Company

HERMAN

International Harvester

Inc.

MITCHELL

Mitchell, Hutchins & Co.

HE WITT

Partner

President

F. CUNEO

President

The Cuneo Press,

Trust Officer

WILLIAM

Director

FRANK

LOCK

$20 each.

Deere &

LOWELL

MARK

Company
A.

LEAVELL

Banker

Commonwealth Edison

the

Executive Committee

JAMES

Vice President and Executive

WILLIS GALE

President

.-'~t Chairman of the
The

!
!

Director

WILLIAM

Cowles Properties

will

action

■"

Incorporated

Sears, Roebuck and Co.

Company

P. FISHER

General Motors Corporation
.

KELLSTADT

President

Chairman

President

Pullman

outstanding

CHAMP CARRY

•

I CHARLES H.

FENTRESS, JR.

LAWRENCE

Inland Steel Company '

CALVIN

Member Federal Deposit

.$2,722,698,442.44

DIRECTORS

Allstate Insurance

AISHTON

PHILIP D. BLOCK, JR.

;

the date

capital
stock
from
847,000 shares with

value of

Edwin

"A"

EDWARD A.

approved

the issuance
additional
uvLUltlUllCtl
shares- to

shareholders
of

RICHARD A.

Louis,

L-lro«iors involving
•

272,181,608.14

Chairman of the Board

Reaf Estate

•

•;V

ADAMS

J. Q.

Vice Chairman

.Chairman

^commendation

.........

obligations carried at $265,028,670.48 are pledged to secure
deposits and for other purposes as required or permitted by law.
BOARD

promo¬

annual

bank's

McDonnell,.

22,181,608.14
.$

United States Government

*public and trust

12, according to William

Board.

150,000,000.00

Capital Accounts

Total Liabilities and

.'ft.'

National; Bank

ing Jan.

100,000,000.00

...$

• • •

Accounts... A

Total Capital

dividend was" de¬
the
stockholders
of

the

\ :

stock

clared
f

Undivided Profits.

of -Omaha,

Carlson to
Vice-President, Don R.
Ostrand to Vice-President.
•

$2,450,516,834.30

announces

Jan.

.Av

........i..

DAVID M.

Board

First

*' ft

•

4,584,808.66
10,038,994.08

...

ler and Drexel
J. Sibbernsen, Jr.,
to serve as
members of the Board.

The

n...

Collected but Not Earned

Surplus:;V.\Vv.

;v;.v..

10,000,000.00

Capital Stock (3,000,000 shares Par value $33^ )

The Directors of The
United States
announced

Bank

Contingencies

CAPITAL ACCOUNTS

25,000,000.00

Total Liabilities.

7,449,445.72

Interest and Expenses.

Other Liabilities...

Executive Vice-

President..'v'"V•

6,337,070.54

Reserves for Taxes,

Reserve for

Walter L.

created office

Acceptances.

Due to Federal Reserve

re¬

Stock, who has been
a Vice-President of the
bank since
1948, was elected to the newly

1959

559,037,770.43

Obligations

Securities

Loans and Discounts

Bank Premises and
William vH.

•

602,550,198.42

|;; Cash and Due from Banks

Other Bonds and Securities.

President, replacing Theodore A.
Trapp,

•

RESOURCES

State and Municipal

^Vice--

•

Condition

Statement of

waukee Wis.; announced the election

•

W. Grossman, President of \
Marine
Bank
Mil-;

Lero

ILLINOIS

Insurance Corporation

WALDECK

Banker

Biel-

& Com¬

Olive Street, members

Midwest

CHICAGO

Mo.—Gary

now

COMPANY

NATIONAL BANK and TRUST

'.i"

Rapids,

Vice-

will

Bank

McLary a Director.

Big

Fran¬

bank's-national

Blue

Maurice

San

com¬

stock dividend of 16%%

re¬

named

the

for

Har¬

has

Franklin

was

division.-

Co., San

was

the

office.

First

(Special to The Financial Chronicle)

6 n named Vice-President.
On the bank's Board of Direc-

elected

main

the

who

Miller

McWilliam

banking

state

replacing

Jacobson,
E.i

named

Manager

Trust

and

Calif.,

Vice-President

Bank's

approved

were

Joseph

was
-

office

Pasadena

Francisco,

San

and

Western Bank

North Side State
Texas Directors

expansion

Reidler

of Blue
elected

Bank
111.

State

Subject to

was

by the stockholders.
,

Jr., and Jack A.1 succeeded James S. Neelv as hnad •
of4, the
correspondent bank-den
jvHandley, Directors.V ;
n(- fVwa
partment,was
advanced
from tors, Charles G. Young ■ Jr., head
Vice-President
to
Senior; Vice;- of ;the trust department, has been
The Standard State Bank, Chicago, President. Mr,
Director.

Houston,

capital

elected Wendel F. Barclay a

15.

Richard

„

H. Zimmerman,

III,

Sarasota,

elected

Director.

a
*

Halbouty, Chairman of

mendations

Bank,

Calif.,

McMicking,

the Board, announced that recom¬

Pullman
Chicago,

The

Bank,

the
ft

Bank

old. '

Vice-V'.

California,

Cooper, President of the

■"

Uihleim

National

Francisco,
•

Florida, died Jan.

1 c™ler- '
conesoond?J:hf.r®e.of
"°^fesP°ndent division. the bank's • J installment loan department
the_ S ,!hailS?s were made in
Salle National Bauk ChiV
*
:
" pS' T: Sew> Assistant ViceIllinois, elected Edgar J,r ®'^cto(rs °£ City .National Bank V^derlt'was named Vice-PresiJr.
Director.
' /
tsurT.f
Co., Kansas City;. Mo. 'at' '■
i'ivW V-:*
*.
* fJ,r,™c*?PS.Jan;'12 announced >■
National's commercial
Trust & Savings
wing Promotions:-'
vV®3"'; Partment, Marion K
111, elected Otto
James F., Mack, who on Tan i ic I* Assistant Vice-President'

savings
dent.

First

Bank

:!:

Alan

V1«?-PresWents were Thoffios™"
mldTZnln

Northern Trust
elected Donald

Officer.

Trust
ft

/. Other changes in the correspon-

meetfngfJ^ileiC2°rS °*

Vice-PresidentA and

Senior

-Other changes in the corresponat its annual,
bank department: Melvin D.

The

Presidents " of

Continued from (page 11
Additional shares will shortly be

*r»f

Bank

elected

and Financial Chvonicle

Exchange.

The Commercial and Financial Chronicle

(268)

fundamentally, is that given
two preceding paragraphs.
The problems of a great expan¬

swer,

Why Our Dollar Must

the

sion of credit

Not Be Devalued Again

Bv
■

are

devaluation

any

Waller

Dr.

Spahr, Executive Vice-President, Economists'

New

Problems of

higher cost of mining gold, growth of foreign potential

solved

•

volume

price inflation

and

trade,

not,

are

according

Spahr, solved by devaluing our dollar again. In answering the
for

ments

contrasts

tionist

devalue to

the point where we

advocates

misuse

one-sided

other

provide for

ment

ounce

week

Feb.

dollar

ending

should

abroad.

same

the

changes

unit

are measured

altered.

measurement

respect them.

which

publica¬

tions in

risen,

also

unit of

found in vari¬
ous

the

other

words, it reveals either a misun¬
derstanding of the functions of a

coun-

have

which these

26,w 1.958,

this
r

contending
that
because
the
prices measured by the standard

widespread

This

an
ac¬

South

with

refusal

If the reservoirs,
New
York City

provide

water, should

land, Canada,

become dan¬
gerously low in their water sup¬
ply, the people of New York City

the

could

Africa, Eng¬
United

States,

and

elsewhere,

when

and in various

the

bills

Walter

which

Spahr

have been introduced in

Congress.

chief

impetus

comes

from

for

that

this

ment,
ured

agitation
interests

gold, from various others who
one

reason

another

water

were

re¬

the

things

meas¬

created

confusion in

frequently-

tempting to serve purposes other
than endeavoring to help a nation

advanced argument that, because
credit or the volume of
trade, has

obtain

expanded

and

then

maintain

good

short-

effort

per¬

the

that

uncriti¬

same

this

all

argu¬

our

banks

insurance

which

actually
of

sort

applied

were

government

panies,

claims

potential

com¬

operate

fractional

cash reserves, the logi¬
conclusion would be that all

cal

ety

are

bankrupt.

argument

This vari¬

employed

advocates of another deval¬

many

uation of

dollar and their

our

un¬

critical followers rests either upon

ignorance of the principles

gross
of

Arguments in

fractional

willingness

reserves

desire

upon

Possibly the most

mislead.

Acceptance
Another

There

spread
ments

for

Idea

wide¬

and

behalf

ently there

the

ready

acceptance

devaluation cf

sons

Devaluation

the

argu¬

another

dollar.

our

Appar¬
two principal rea¬

are

this:

One

that

ar¬

gument employed, at least by gold

interests, is that, since prices

in general and the costs of

mining

that

reason

jected

the

virtues

the

should

devalued

our

contracted

prices

gold

procedure,
provide

huge

unit smaller.

greater

credit

said,

This

would

liquidity for the

structure.

The

monetary

standard

Extfiaift Vice President

an¬

that

economic

CJutintuiri of the Board.

The

fact

that

widely and
the
in

1920's

Statement of Condition

nomic

problems

MA SSI E

Chairman of the Trust
Committee,
Chemical Bank \ctc
Tor\ Trim Company

DUDLEY H. MILLS

our

dollar

factor

ASSETS

MOORE

President.
The First Kctum.d Ctty
Bank of New Yt„k

devalue

seems

arises

the

that

case,

41%

Today,

"doctors"
with
qualities of quackery

similar

would ampute
for

cure

aches

and

mone¬

practitioners

tant past.

the

Why

coud

rious

effects

relatively

people

our

fixed

declining

since

The

industry

in¬

unit

tary

widespread

and

ready
our

relatively

principle,

exam¬

debt—and

wipe

frac¬

Laidlaw
Founded

arise,

Broad

Co.

1842

Street, New York

4, X.

Bankers

was

Brokers

Dealers in Municipal Securities v

eco¬

to be lost

I." 1'

York

Stock

Exchange'-J J.

Bankers

•

Members

Exchange

Stock

Canadian

Stock

.Stock

Midwest Stock- Exchange

New

Bankers

A ?r-'S\
Exchange

"■

'•

~ " Boston

"x.V-5-

..,>>•

Association>"

-Investment

•:

i. *

York

State

Bankers

Association

Assn.

Exchange

•

:
•

..Bloom field, N. J.

Washington, D: C.
•'

•~

Princeton, N. J.

Oil City, Pa.

•

Montreal, Que,

Toronto, Ont.

•

■

Security Contracts,

market

less

•■>.

74,469,928.92

"
"

70,961,.V50.69
'

J./

Cash and Due from Banks

TkeElI-lH

I HI Mil ftlNlflN-lHll.Vrco.-

**344,224.67
CINCiNN AT I,

247,087.52

2.859,492 27

■

Statement

SI 48.882.084.07
and

United

State

$2,000,000.00

Surplus

Banks

and

8,665,347.02

Income

Other

■■•'-t1,938,599.50

Securities..

2,314,371.34

___________

Discounts

179,796,387.13
4,483,684.28

1.00

____

Liability Under AcceDtance8_j_.__-_.c__.__.
Receivable and Prepaid Expense.

1,201,799.48

Resources..

•

$371.010.071.24

LIABILITIES

48,911,227.08

Security Contracts

Accrued Taxes

3,180,652.36
962,754.44

Expenses

Capital Stock
Surplus-..
Undivided

($25.00

Par

Value)_■

6,790,083.50

Capital Funds
Reserve for
Dividends, Interest,
Liability Under Acceptances

$148,882.084.07
OFFICES: FIFTY-EIGHT PINE
STREET

TAxes____.

and

52.746.54

Savings.

323,647,556.65

Government.

11,128,575.02

Liabilities

144,288.36

TOTAL

•Includes
went,

$371.010 071.24

$6,701,0R3.17

which

Section

under

1107.12

31.790,083.50

4,246,821.17
"

•Commercial, Bank
Other

13,125,000.00

Profits

DEPOSITS:

464,560.95

$11,875,000.00

Total

645,264.19

534,356.74

TOTAL...

35,827,278.03

Endorsement

52,746.54

Accrued

225,000.00
•_

95,532,592.20
75,155,533.03

Bonds

...

2,665,347.02 $

Acceptances Rediscounted and Sold with

Sundry Credits

19S9

___

Accrued Interest and

from

Buildings and Equipment
Other Real Estate..
Customers'

______

OHIO

December 31,

Bonds

Municipal

Bonds

Loans

4,000,000.00

Undivided Profits
General Reserve

Due

States

and

Other

Capita!

RESOURCES
Cash

LIABILITIES

the
a

of trust, money

deposit

provisions bj the-Banking

preferred

claim

against

the

law of
assets

Banking Departthe State of Ohio,
the bank.

mone¬

the largest pres¬

the national

ple,

for

agitate,

burden that exists—for

ent

ac¬

dol¬

sound

why not focus

ceptance of the idea that

ounce,

standard

our

used

price of

industries?

our

devaluation of

comes.

commonly

among

pay

billion?

fine

per

they
that

small

with

$290

some

devaluation

$100

government
of

should

which

se¬

example,

gold stock be

our

give gold producers

$70

expected

bloodletting indeed with

dis¬

debt

its

eliminate still
For

sufficient number
dollars to enable

gold

national

off

Another devaluation of

dollar

our

into

small

the

remedy of bloodletting by the

medical

problems.

why should not
cut

tary standard—like the old stand¬
ard

why the dollar should

devalued

greater

again because their

economic

pains is amputation of the

not

the

save

amputation

required to

was

patient.

United States Government
Securities and
Interest Receivable Accrued

though it was so
hopelessly gangrenous, which was

:i;Qk

....

Loans Payable

President

not

stability

monetary and

instability

,\cit> York

HERBERT N. REPP

Devaluationists

proper

currency

•/ HAROLD H. HELM

profit to gold mine interests
provide a larger number of
gold monetary units against'credit
or
trade,
a
question
logically

of December 31, 1959

Acceptances Discounted

('hanvutn of the Board.
(Chemical Bonk \cf York Trim
(Company

Bankers Trust (lomp,

the

properly regarded in

world

^Manufacturer* Trutt Company

Chairman of the Bo..td

\ Of
If

and proper way to solve

OF NEW YORK

Sundry Debits
FLA NIC AN

MOORE

Another Aspect of the Arguments

1933-1934,
"doctors" treated

monetary
dollar

our

by the idea, chiefly imported into
this country in the
early 1930's.
the easy

not

standard monetary unit to provide

"DISCOUNT CORPORATION

'omptiny
__

CHARLES e; DUNBAR

WILLIAM H

properly.

does

disposed, to

reserve
system. The other
is that they have been conditioned

devaluation—by making each

standard

GEORGE CHAMPION

GEORGE S

solve

is not

both.

pTtfition: The < W Menhir, Bank

how,

and

tional

the Bo,:ij.

ADRIAN M

government

know

was

the. dollar should be devalued

corrective measure.'

HORACE 0.

that

standard

manipulation by
"solve" problems

government

low that

its

correc¬

currency

and

monetary

oppose

which

1932-1934, the argument

that

was

among
experienced

economists

tively few people understand the
implications of a good

standard,

HENRY C. ALEXANDER
Tnt't (

rests
money

deposits are so expanded and
prices are so high that the dollar
tive.

good

who

and

Boston, Mass,

\e;v fork

our

except

and

who under¬
stand the nature of, and
advocate,

perceived by the
propagandists for, and supporters
of, another devaluation. Today the
devaluation

again, prob¬
resistance

nature and

supply,

;

monetary

our

little

meet

condemnation

or,

appear not to be

for

would

that

lacking in in¬
irresponsible as

dollar

our

well-t rained

employed today and in 1932-1934

contentions that

so
so

ably

arguments for devaluation

agitation

means

telligence and

The fundamental inconsistencies
in

to devalue

manipulation.

currency

American

MoTgjiw

government,

devalued

dangerous aspect of the

rela¬

monetary

DIRECTORS

of
and

management

American

(2s«mar»

again is

sub¬

variety

government

New

„

been

endless

arguments

has

them is to manipulate the nation's

by
common

present picture.

Ready

tary gold units should be created

the

one

of them

great volume relative to the
nation's gold stock, more mone¬

Agitation

mine

years

such

monetary standard.
Common

during recent

treat¬

our

the" uninformed

ment

full, if

were

gallon

Closely related is

at¬

are

problems, in¬
thought that
can
hardly reflect favorably on
the
intelligence of - any human
being.

who wish to increase their profits,
holders of gold mine stocks
or

because
have

volves

from

for

the

sufficiently to yield that
gallons.
Changing the unit of measure¬

the

mine

gold

gallons

reservoirs
of

duced

It probably

estimate

the

size

reader

same

number of

accurate

provided with the

number

the

potential

against

exercised.

lar should be, or will be,

our

cal

risen, the price of
should be raised

cordingly.

foreign

This

suade

of gold

involves

gold stock
though they would all be exer¬

are

gold have

agitation, which appears to
reaching a new high pitch of
intensity, perhaps chiefly because
of the Treasury's loss of gold be¬
ginning in the > -

cised.

gold inflow and provide other advantages which he describes.

not

fact

further devaluation

dollar

our

the generation reaching ma¬
turity in the 1930's and since for

upon

term claims

ounce,

genuinely free gold market, should encourage

common,

advocates of

fine

That

and falla¬
argument employed by the

cious

prefix "free" as they seek only a favorably

per

Fixity is a basic
any
standard of

dollar.

our

Another

restricted-type of gold market. The author declares that the

This

argu¬

among

by reducing the

Thursday, January 21, 1960

reservoirs

or
not
respected by
for another devaluation

agitators

and asserts "free gold market"

solution, resumption of redemption at $35.00

proper
would

the

can,

understood

Dr.

today's arguments with those of 1932-34; asks the devalua¬

why not

measurement.

higher gold price, the well known monetary economist

things, wipe out our national debt;

requirement

short-term claims against our gold stock, greater expansion of credit

of dis¬

not solved

York

size of the gallon.

monetary unit
the scarcity of

than

would

Monetary Policy

water

National Committee

of trade

tortions in trade

\ Number 5918

Volume 191

stroke of a pen,"

units by "the
i( were?

of the sale of

The present agitators for
"free" gold market

called
a

program

designed

those days provided any Re¬
liable guidance as to the rate at
which

redemption should be re¬
sumed, Jan.; 2, 1879. The' Treas¬
ury wisely and properly resumed
at
the
standard'redemption rate
of

tion
or

with

their

effective Jan. 1, 1960.

the

restricted

verv

tion

the

type

supply

of market

dollar

our

result.

would

pro¬

the

which

standard

only proper sense

can

nation

and

should

have

exist

gold

redeemable

cur¬

That

step should

bring all the

known to

objective monetary
economists
can
bring.
A great
variety of present tensions should
be

relaxed

should

flow

^disappear.

Gold

abroad

from

and

and to refund

savers

public debt at lower rates of
interest than now prevail.
Busi¬
ness and foreign trade and invest¬
the

health¬
expansion.
Op¬

ment should experience a

and

ier

greater

timism for the future

should

tion

rency.

much,

become

abroad.

quality of our money.
question, aside from
of credit control,
should be finally and well laid to
rest. The path to socialization of
a

The currency

the

problems

this

nation

would

experience of the decade prior to

it must be

1933

sured that this Republic can

prices

found

demption,

Mistakes

resumption of

re¬

Congress

can

as soon as

were

ment

repeated.

should

The govern¬

able

sell

its

Argument

control of the
'once

this

public

mine interests as a means

nation

individuals

they

are

will be preserved.'

support of innocent advocates
of private property and free mar¬
kets, is an argument for a device
calculated to be a prelude to an¬
other devaluation of our dollar. It
is not an argument for a redeem¬
able currency at the statutory rate
of $35 per fine ounce of gold or
for a free gold market
in any
ing

of that term. It is an
argument for a "free" market for

BANK

NATIONAL

proper sense

relatively small output of the

the

gold mines on which any demand
for

The Treasury

gold could fall.
be

woud

to sit on the
large stock of

required
with

sidelines

its

STATEMENT OF CONDITION, DECEMBER 31, 1959

a depressing of
this restricted market
by Treasury sales of gold.

gold to

prevent

prices

Should

for this highly
supply of gold rise in a

marked

RESOURCES

prices

restricted

the Treas¬

above

manner

Cash

Hand and Due from Banks

;

"; '

•

;

Accrued Income and Other Resources

;

Federal Reserve Bank Stock

;

United States Government Securities

ury's official price of $35 per fine
ounce, then
it is to be expected

Other Securities

that

384,549,753.93
543,143,393.84

Loans:

the

other

gold mine interests
exclaim- with

would

the free
gold is $70 an

ounce,

ury's

artificial

'See,

price

the Treas¬
too

and

free market, and

the

of anything

measure

is its price in

glee:

value

market

low, the true
therefore

and

dollar

should

devalued to $70 per ounce"—or to
whatever price the speculators in

that

small-supply

market

635,326,922.84

Real Estate Mortgages

Bank Premises

...

virtue

of market urged
It

gambler's market in

by the

would

relatively

small supply of demonetized gold
in terms of an irredeemable
paper

money.

nothing
fact

would

insofar

are

demonstrate

monetary

concerned

that

money

irredeemable

thing

one

paper

gold is
prices
in¬

and

public

to their

meaning and significance
the

arguments for a
free" gold market.
The only good free

considering

functions,
mtegral

the

part

jn which

mislabeled

fold freely

its

gold

can

the

buy

the

gold

the

for

interests

an-

are

reason

be attakes

that

the

vernmenf is then in a stronger
;,,sltl0.nL to institute redemption,
vmnu?at g00d da*' arrives, than
nf
a!"
case if Part or much
fprii16- nati°n's gold were scattered
m

tho

private holdings.

ig the Peri°d of the irre? Greenbacks, 1862-1878,

people were permitted to buy.
bod a** retain gold.
An orghnlishp^
jet for gold was estabspii

nu'

those who

are aware

fl"ancial history may re.
Jav r!? fi
ts of James Fisk and

whirl!
i° corner gold—efforts
ended
in
http://fraser.stlouisfed.org/ the notorious
Federal Reserve Bank of St. Louis
call

Savings and Time

Accrued Expenses

Acceptances

Deposits

Total Deposits

•

;

•

;■

;

•

;

•

68,320,331.90

•

and Letters of Credit

•

Capital Funds:
Common Stock ($12.50 par value)
Surplus

66,439,294.50

•

and Other Liabilities

$1,344,228,425.63
441,597,169.37

$1,785,825,595.00
23,677,518.71
11,845,161.37

40,000,000.00

90,000,000.00
....

♦
.

•

25,894,639.82

155,894,639.82

$1,977,242,914.90

States Government

deposits, including

Securities carried at

$172,027,713.28 in the foregoing statement are pledged to secure public

deposits of $17,441,912.54 of

the Treasurer, State of Michigan, and for other purposes required by law.

Member Federal

BOARD

Deposit Insurance Corporation

DIRECTORS

doJi

Other Public Funds

price

government

the

136,942,793.22

United States Government

sell

best—or the least harm is

ned—if

$1,072,526,006.01

inflicts

currency

°nVmce justice cannot

Other Banks

standard

national

Individuals, Partnerships, and Corporations

monetary
that

government

redeemable
rved

11,845,161.37

Credits

market for

w?
Congress.
When
11

3,900,000.00
16,404,908.91

Commercial Deposits:

Undivided Profits

one
a

have

anyone, including

Treasury,

10,672,170.14

$1,977,242,914.90

the

beyond

someting
else.
The
volved could be
expected to con¬
tuse the general

g°ld,

775,112,414.66

might

whatever

gold mine interests.

values

139,785,491.82
_

LIABILITIES
is

the type

Customers' Liability—Acceptances and

produce.
There

231,615,112.05

Loans and Discounts

Howard C. Baldwin
Partner—Baldwin,
Boos & Baldwin

Heiiry T.

Bodman

President

Prentiss M. Brown

Chairman—M ackinac
Bridge Authority

Ray R. Eppert

Ralph T. McElvenny

Robert B.

President—Burroughs"

President—A merican

President— Wyandotte

Natural Gas

Chemicals Corporation

Corporation
Malcolm P. Ferguson
President—Bendix
Aviation Corporation

Charles T. Fisher
President—Fisher and

Company

John N. McLucas
Senior Vice President

Thomas E.

Millsop

R. Perry Shorts
Chairman—Second
National Bank of

and

Saginaw, Saginaw,
Michigan

Laurence P.

Director—General Motors

Corporation

Director—Chrysler
Corporation

Corporation

Curtice
Director—General Motors

Peter J.

John B. Ford

Corporation
William M. Day
President—The Michigan
Bell Telephone Company

Chairman—Cunningham
Drug Stores, Inc.

Vice President-Finance

Company, Inc.

McLouth Steel

Harlow H.

Nate S. Shapero

F. W. Misch

Cudlip
President and Treasurer—
M. A.

Semple

President—National
Steel Corporation

Fisher

D irector—Wyandotte

Chemicals Corporation

Monaghan

Partner—Monaghan &
Monaghan & Crawmer

purse

would

lie with the people of

chiefly by gold
of gain-

market, concocted

insurmountable barricade. The

argument for a "free" gold

The

blocked

The only proper solution to our

The Correct Solution to Our

now

na¬

justifiably so, both here and
Integrity
would
once

and

"Free" Gold Market '

The

of this

widespread,

pressing monetary problem, is to

•

Present Monetary

gold

securities to

earmarked for foreign
account, should be released to
our Treasury, banks, and for .gen¬
eral use—this last not exceeding
3% of our total gold stock if our

gyrations in

tablished in the

ard

gold

from

that

ounce.

benefits to this nation, and others,
which the best monetary stand¬

posed, and that another devalua¬

market

Fortunately,-the Congresses and
tator, to the institution of a Fifth
Administrations of 1861-1872 were
Republic, and to a deflation of the
depreciated franc at a ratio of not misled sufficiently to assume
100 to 1,

agi¬

fine

for

in the

estab¬

present

connec¬

proposed

get support for it.

ounce

The

Then,

genuinely
free market in gold would be es¬

so-called

market

wrapping their program
flags of "protection of pri¬
vate property" and
"fostering of
free enterprise" in an effort to

that taken by France,
1928-1959, which led to the prac¬
tical destruction of the value of
her franc, to the loss of her Fourth
Republic, to the coming of a dic¬
as

1837.*

act, at the statutory rate of $35.00
per

"free" gold
obviously are hoping that
Congress will be misled by prices

prevent

has not prevented them from mis¬

using the word "free"

fine

per

tators for

Secretary
Boutwell
from
spoiling their plans. But that fact

and irresponsible.
Such
action
probably would
demonstrate that we are on the
road
of repeated devaluations,

$20.67

lished

so-

offer

any

netent

(269)

gold

tion, to break the high gold prices
generated by the speculators in
gold.

government is both incom-

such

consequence

Secretary of the
Treasury
Boutwell, in Grant's Administra¬

of the matter is
tuat there
is no valid argument
that can be offered in support of
another devaluation of our dollar.
And if our dollar should be de¬
valued again, it seemingly would
be conclusive proof that our na¬
tional

and Financial Chronicle

essence

The

The Commercial

Black Friday of Sept.
23, 1869, as

of devalued gold

terms

•i. nut

Donald F. Valley
Chairman of the Board

George E. Parker, Jr.

C. E. Wilson

B. E. Hutchinson

Vice President and Trust

Director—General Motors

Detroit

Officer

Corporation

■l;,

where

to be

as¬

and

Chronicle

The Commercial and Financial

(270)

limited

savings of the people can
finance.
The strong demand for

By William B. Nauts»*\Assistant Vice-President,

City

sidered

loan

bankers have
the
past
years wished that they
had

many

time

during

short ; term

very

ments.. I

can

assure

have not

con¬ .you

how

some

seven

;

However,

thatv have

banks

for

demand.

wonder
at

when liquidity was con¬
relic of the past. I

govern-

that if
this wish,
you

had

you

in
demand
deposits, ;are very fortunate. If you have
is world wide and money centration
virtually all countries are and have a heavy loan demand, it you are in good company,
high.
This demand for money is advantageous to be cautious so
I will not labor this matter
of
seems
most
likely to continue. as not to be in a position of being liquidity, except to emphasize
it
These all create inflationary pres¬ forced to sell in a depressed mar¬
Treasury
Bill j, yields - are
only
sures and high money rates.
ket. They should be bought to be
slightly lower than on bonds and
held to maturity. Stay with
10 notes. They are most

of years

than the

New York banker offers

Thursday, January 21, 1960

time in

Under Today's Conditions
The Hanover Bank, New York

moving -higher all the taxes on some good grade medium
spite of the high level of term municipals-; is much'above
disposable income.
Foreign na¬ that on mortgages.
These obligations are obviously
tions, well-to-do and underdevel¬
oped alike, are demanding indus¬ attractive for banks with a large
trialization at a moj^'Vapid pace volume of savings deposits and a
credit

Commercial Bank Portfolio

money

rates in

practical investment advice and a rundown

•

the

that

cautions

investment decisions. Mr."Hants
unpredictables which prevail rule against

affecting

conditions

today's

many

relying primarily on future trends in interest rates in making port¬
folio decisions. And he insists that one man, free as possible from
and

interference,

not

should

committee,

investment

decisions.

investment

;

Federal

Reserve

issues and good A

year

Policy Now?

;•

attractive.

;

About'

What

make

quality.

better

The

if-

big

problem

money.

find

the

Government

Agency obligations
Now let's summerize these in¬
are becoming more and more im¬
for
continued
low
For about 20 years up to the time sible
money
formal comments and opinions.
of the so-called Treasury-Federal rates.
:Yy'.V a faster rate than productivity, is portant as bank investments. The
(1) Money rates are not abnor¬
Reserve
Accord
in
By the time of the Accord, the disturbing
early- 1951,
the1 Reserve
Board, volume of these securities out¬
mally! high. Whenr. business de¬
nation's productive capacity had which is keeping a tight rein on standing has increased from about
which was the first step in upclines—as it will some day—yields
been
greatly expanded and the bank reserves in the battle against $2 billion five years ago to about
pegging bond
will decline. But it seems most
Korean War, and later the cold inflation.
$8
billion
now.
Although
not
prices, interest
■'
rates were
specifically
guaranteed
by' the likely that the accompanying ad¬
war, combined greatly to increase
The Treasury, too,
must con¬
the demand for funds.
U.Y.S. Govrenment, and without vance in bond prices will be much
The flex¬
1 o w.
They
sider the problem of its present
less than it was in 1954 and 1958.
ible Federal Reserve policy begun
were
affected
immense
amount
of
short-term going into detail, they will be paid
about
1951
initiated
at maturity. Their marketability ;
a
climb in
(2)Investment: decisions are
by what now
debt. The Secretary of the Treas¬
is not quite up to that for Treasury
interest
rates
which
with
two
seem definite¬
very
closely linked to a bank's
ury has repeatedly stated that he
significant
interruptions
during will seize every opportunity to issues, but nevertheless has iitH circumstances. Best results usually
ly to have
the two short and minor recessions
been
non-re¬
are
obtained - when
the
final
lengthen the
maturities of the proved right along and is excel¬
The pressure to do more faster
and faster, to increase wages at

•

curring
d ep r

The

came

the

and

billion

1947.

The

Government
it

fixed

there

Let's

in¬

debt

time

the

Pearl

prices.

lion,

bought all

securities offered

After the

This

the

around

large

was

largely

brief

all

are

not

than 4*4%

which

defined

are

look

the

familiar

with

the

ings—exchanges of short-term is¬

in and

year

out. Capital
corporations are

year

for

long bonds.
This may
lower prices for long-term bonds.
sues

view

excess

planning vast
the road

respon-

grams

examples.

pro¬

future

There

rates.

of sound moves that

without

Consumer

One

work out

AND

TRUST

BANK

new

money
are

Banks'

makes

...

Insured

Mortgage Loans

—

1,247,259.21

920,151.82

......

1,078,627.10

Other Assets

178,954.13

Total

5287,129,731.97
Amounts shown
'

are

net

count

Voluation Reserves

These

Discount Collected,

Other

Not Earned

Payable
Stock

...

.,......,,

—

921,675.34

........

4,507,917.59

..,.

,,^

221,932.12

...,

293,835.43

$6,105,000.00

—

Surplus

......

Undivided

........,..,...................

Liabilities

Common

Expenses, etc.

Profits

8,895,000.00
4,054,951.59

total Capital Funds
Total

Convertible

can

19,054,951.59
5287,129,731.97

time to
of

neglected.

quite

bonds
sometimes
attractive. The ex¬

aminers insist that the price must
not be higher than estimated in¬
vestment
of

means

subject

decisions

must

have

bank.

and

the

sure

value;

They can be a
capital gains. But

good

to insist

good quality.

Naturally, it is only occasionally
that 'these
obligations
can
be
bought to fulfill these conditions.

deci¬
often

too

Liquidity Is Not

Anachronism

The matter of
to the fore
to

pass

liquidity is much
recently. This has come

after

long,

long period

of the local loans that should

care

made

and

possible

withdrawalswith

This

spare.

deposit
something to

hard

achieve-

but will produce good results.

*An address by Mr. Nauts before the
Maryland Bankers Association, Baltimore,
if,■ '.'f. :
5
'■'f-y'i/i

Stern, Frank

tit

To Admit Partners
LOS

ANGELES, Calif. — Stern,
Frank, Meyer & Fox, 325 West
Eighth Street, members of the
New York and Pacific Coast Stock

Exchanges,
Emil J.

Feb. 1st will admit

Rothenberg and James G.

Fraser to

partnership.

is Manager

Mr. Fraser

of the firm's Trading

Department.

own

future loan

among others,
important fac¬

the most

are

his

tors, in investment decisions.
responsible

for

possible

without

any

The

investment

has

many other
be as free as

duties. -He- should
manage

the

portfolio

interference

that

not

absolutely necessary, from any
of the top brass. The
job is frus¬

trating at best and usually should
be
the
definite
and
continuing
responsibility of one man. The re¬
sults
flowing
from * investment
very

Trust Department total $83,502,772.00

management

1IM

> I9 60

can

unsatisfactory.

What types of securities should
; '<!!
di" ■ i"1

banks

OFFICERS:

Ye:* 1 *■&'-

'J ■'

*/s.

•:

HfilM EW^

AND TRU ST

CO M

PWkVjs

JOHN C. BARBOUR

't.iil

ifei
1

»i/I

Membtr

Feder»l

Federal

Reur.t

Srst**

Deposit Insurance Corporation

President

COWLES

tjl

•

ANDRUS

ill
Hii'mii

Mil.

17 offices in
•

HALEOON

NORTH HALEDON

PATERSON

•

JOSEPH F. HAMMOND
Senior Vice-President

•

PASSAIC

WEST PATERSON

NORMAN

BRASSLER

Executive Vice-President

LITTLE FALLS

EDWARD

JrHrfl

klini'itiili

count.

Obviously,

RODEN

Executive Vice-President

Govern¬

the backbone of the
current

prices they

mJjoh

ac¬

are

most

attractive, considering yields,
salability and of course quality.
With

the

present
tcr

GRIFFEN

Senior Vice-President

ii':-1.";
CLIFTON

are

see no reason
CARL

•

^)\v

buy?

ments

Senior Vice-President

•

sjh^'ii!
j

Member

FULLER

Chairman of the Board

i'lviii

jersey

^IfRANKll

KENNETH

yield

curve,

termediate

buy Governments

term

Company

Governments

WEST

provide the very best yields based
on

the present unusual yield

Tax

free

obligations

the

highest

fact

the

STATE

STREET

TRENTON, NEW JERSEY

curve.#

Now

Six

Offices

Trenton

now

»1

are

Mary

selling to provide excellent yields,
years.

Trust

renton

longer than the 23/8's of 1965. In¬

for

yield

many

after.

MEMBER FEDERAL

;

Maryland.

The bond

deposit trends,

committee
In addition to the obove, assets held in the

feel

Such factors

changes usually
$262,129,369.90

...

Reserve for Taxes, Accrued Interest,

$25,000 and subject
30% income tax rate.

(4) Liquidity at all times should
more
than adequate to 'take

taxes, and of prime importance he

man

Deposits

,.v

corporate

probably -should

should have some knowledge
economics, finance, government,
mathematics, asset allocation and

often

after deducting

LIABILITIES

Dividends

It's

most

and

attractive

man

.......

...

attractive,

investment

Equipment

under

are

3,885,150.33

Fixtures

too

come

made without sufficient atten¬

22,665,806.96

..............

Banking Houses
Furniture and

59,953,067.39
....

Loans and Discounts

Accrued Income Receivable

all

good

Trusts for banks with taxable in¬

tion to the many factors involved.
In banks with limited personnel
it is not unusual of the bond ac¬

64,852,363.46

Conventional

—

Railroad

are

—

Guaranteed

for

47,591,853.13

30,105,612.25

Other Bonds and Securities

Mortgage Loans

made

fact

the

The shorter

do not yield as
municipals—after
exception
might be

good

most"

Investment ' Decisions

the

generally

54,650,876.14

......

Obligations

Municipal Obligations

for

to invest, and whdn
low and unattractive

briefly

attractive. Most

but

tvY:>

limited to ten years, and govern¬
maturities to a maximum
of five or six years.

when

much

is that when

and

Perhaps this is

sions."

State and

bonds

are

law

income,

■

bonds

ment

sold,

taxes.

satisfactorily

high

are

"who

U. S. Government

Corporate

the

are

man.

be
avoided. All maturities should be

advan¬

plenty

of the crystal ball.

use

touch

ASSETS

provision

governments

1959

further

(3)-Municipal

obligations

available for this
without fear of the wash

purpose

sales

the

the money market.

for

being

be made

are

naturally have plenty.
tough, but a fact of life.

of close of business December

have

with orfe

Agency obligations

often

terms

Statement of Condition-

Cash

commercial banks usually have no

yields

COMPANY

trends

can

fundamental

yields

NEW JERSEY

r: They

tage

too long.

can

sub¬

swap, programs..

seem

projects, of which that should

building and school,

are

They

of them

estimates

advantage in tax

part do not

interest

authorities

be used to good

Land

lies

He should know the bank as well

intermediate \

available

stantial discounts.

unpre¬

may be dangerous to
portfolio decisions primarily

The U. S. Government and various

local

many

ia the

are

responsibility

FNMA

Federal

and

Bonds

maturities

good

governments.

over

base
on

and

the

Bank
.

afford

dictables, it

high and tending to rise further.

war

familiar to all of

obligations

cur¬

often

Debentures

bonds—

011

Yields

spread

has so far

Congress

refused to permit the Treasury to
pay

budget of about $41 bil¬

expenditures

state
was a

take

defense

in relation to peacetime

demand.

are

think

tremendous demand for money.

from

billion at the end

Federal

naturally

of money

money

expanded.

national

Harbor to $267
of

the

causing

war,

the

crease

because

now

that yields on

lent.

He is severely handicapped

debt.

intermediate

greatly

was

Then

con¬

with a maturity longer than five
level, naturally with frequent
years.
Some day this lengthening
fluctuations, some¬ •will take
place on a large scale
times perhaps violent, are here
both by new cash offerings and
to stay.,
\;V'Yp
through so called forward refund-

William B. Nauts

in
amounts

large

has

rent

gold

this country

supply

fair to conclude

Governments of

the

price

high,, and

abnormally
is

which

1957-58

and

Historically, then, rates

ession.

creased

$64

1953-54

tinued up to the present time.

Govern-

fac¬

First the

tors.

Roebllng,

President-Chairman

DEPOSIT INSURANCE CORPORATION

Number 5918..

Volume 191

The Commercial una
Financial Chronicle

and

FROM WASHINGTON

thought he had the problem

licked.
to

(271)

But it

has

gone from

retary of State Dulles- died.-

bad

up.

straits, it
everybody .in
the
sur¬
rounding community — the mer¬
chant, the truckers,- the fertilizer

BARGERON

manufacturer
turer
tor

of Vice-Presidentr Nixon's
greatest problems, , assuming V he
is the Republican candidate for
president, certainly not a rash
assumption, will be to get away
from the Benson farm program.
This will not be easy because it
means
getting away ;from - Mr.
Eisenhower's program as well. /*
One

that

million

wheat.
bins

are

reaping

16V2
this

Presidential
has
disclosed

costing us about $iy*
day just to store surplus

Owners

get
of

are

Symington,

cents
must

grain storage
harvest. They

bushel per
be added the
a

day
cost

transportation and handling of
grain. It has also" developed

er's

the

to have

that

been telling friends that

grain

of the things he will do.

this is one

that

doubt

his

son

The

back
i

inasmuch as Nixon had
part of the program.- It
has been discussed several times
at Cabinet meetings, Mr. Benson
been

Nixon

not

did

it 100%.

has been

vides

has

latter

the farms has caused
problem for them.
on

Rightly

is the most
of

the

that

dubious role

now

the

now

20%

tivation.

than

plan.

first

year

committee of the Senate
ture Committee headed

Hagen

are

Edward

Hagen,

To Admit Odzer

formerly

J. R. Williston &
way, New

lie, Vice-President; M. B. Hagen, the

Secretary-Treasurer;

and

Rand, Cashier.

York City, members of
Exchange, on

will admit Harry Odzer to

partnership.

p!| ipN I—I^!j| If1

The second year the sup¬

•

■■

ikjij: ji|||

of cultivation.

Mil i

I! W 1 !!

drop 75% with
having to fake 25% out

Ilil

The third year the

BAXK
|;i!i

support price would drop to 65%

new

jfiiii l!

not go any

!?:II iii

i i

is:;:

HI 1

lower than

that.

|||| ||jj | |jjj||||

representatives

wanted

Agricul¬

the

keep

Benson

supports.

by Sena¬

"T®

Ikcsfe

L-

II! M-

i 'A

■-

.jjj i p j-::

rigid

his

liii itiiH!

-i

Congress

high

•

(

ers'

i
H'

•

fight

won

STATE AND MUNICIPAL BONDS
Head Office: 55 Wall

St., N. Y. 15, N. Y.

Municipal Bond Department

BARCLAYS BANK LIMITED

•

82 Branches in Greater New York

•

Teletype NY 1-708
.'**•

Member Federal

Deposit Insurance Corporation

Anthony William Tuke, Chairman
Head Office: 54 Lombard

Chief Foreign
Over

Street, London, E.C.3.

Branch: 168 Fenchurch Street, London,

Statement

E.C.3.

Wales

2,200 branches in England and

of Accounts

December, 1939

31st

LIABILITIES

1,676,407,29d

Current, Deposit and other Accounts

Acceptances, Guarantees, Indemnities, etc.,
for

account

customers

Paid-up Capital

49,307,803

• •

40,812,828

Wertheim
Members

ASSETS
Cash in hand and with the Bank of

Balances

with

course

and

•

102,050,430
147,391,000

of collection

at Call and Short

Notice

Bills Discounted

Investments
Advances

;

to customers

and other Accounts

tNjsw York Stock

change

136,5/4,368

England

Banks

British

other

Cheques in

Money

21,500,000

Reserve Fund

120

BROADWAY

NEW

YORK

267,786,387
393,542,971
648,944,347

Investments in Subsidiaries:—
The British Linen Bank..

3,728,558

Barclays Bank D.C.O..;

8,682,414

Other Subsidiaries.......;

2,227,312
10,727,710

Other Trade Investments..
Bank Premises and

udjoining Properties......

17,064,626

Customers'

liability for Acceptances,
Guarantees, Indemnities, etc

49,307,803

Representatives in U.S.A.
G. E. Meek and A. S.
120

Macmillan, V.R.D.

Broadway, New York

P. C. Eccles,
Suite 1636,
235

C.B.E.

Russ Building,

Montgomery Street, San

Francisco, 4

INVESTMENTS

;

Beane, 2 Broad¬

New York Stock

Feb.

•pi

Williston & Beane

& Co.,
Officers

American Bank Building.

It pro¬
an

port price would

A sub¬

ever.

of his land out of cul¬

the farmer

situation

since Sec¬

assurance

farm

a worse mess

is entitled

proprietor, President; W. R. Brat-

controversial member
He

Walter

formed to continue the investment
business

admit

office.

Just

wrongly, Mr. Benson

Cabinet.

Even if Congress passes the bill
that
the Administrtaion
will veto it
Benson would no longer be Sec-:
because it boosts the present sup¬
retary of Agriculture would go a
long way, not to solving the farm port prices. Benson wants them
still lower than they are at present.
problem, but to mollify the farm¬
Benson a few years ago
was
ers.
He is their No. 1 whipping
boy. Apparently nothing he can crusading for what he called low
do is right.
V "
flexible supports while the farm¬

just

ac¬

Corporation

will

partnership.

paying him in¬

wheat

the

for

took

Administration.

Perhaps,

farm¬

Now

PORTLAND, Oreg.—E.-I. Hagen
& Co., Inc., a corporation, has been

Ellender, Chairman of
Committee, has

but would

hopes of remaining under a

in the

shrunken

80%
support price provided the farmer

hook or crook. Per¬
haps, he can do so by announcing
early in his campaign whom he
intends to appoint as Secretary of
Agriculture, thus showing it won't
The

This

manu¬

complaining

Feb.

■

Keve to

Agricultural

introduced

by some

Benson.

acreage.

tivity

even

of the New York Stock Exchange,

the money but has paid
of the principal.

Senator

it is a safe bet that
Nixon will try to get away from

are

the reduction

They

makers,

truckers and fertilizer

about

•

, .

Nothing is likely to be done at
this session of Congress about the
farm problem.
The Administra¬

the

However,

assumed

implement

announcement

their'candidacy/;

Alstyne, Noel & Co., 52 Wall

Street, New York City, members

is coming up with proposals
they will be the same pro¬
posals that were rejected last year.

-■

farm

facturers
er's

selves withlthe

Van

but

with

along

Ray¬

implements.

To Admit Keve

single Re¬
publican candidate, that is, not in
the farm belt, would dare support
him.
They all disassociate them¬
a

tion

offered
the slightest objection.
He would
be very much surprised, he said,
said, and Nixon has never

operations,

manufac¬

But not

none

President would campaign on his
program

government

Polick, .sold his bins
when

son

terest

the, Vice-

head of the

storage

mond

Secretary Benson put him on
the spot on the Meet the Press
TV show. He said he had not the
But

slightest

the

farm

the

loyally.

usually affected by the farm¬
political mood.

The

the

Vice-President is reported

The

and

Mr. Eisenhower has stuck

him

affects

CARLISLE

Van Alstyne, Noel

ythe State
Secretary was
living, Benson was a close runner

'The actual farmer does not have
the political
strength he once had.
But when he is in bad

...Ahead of the News

Even

when

worse.

• t

■

The Commercial and

Financial Chronicle

Thursday, January 21, 1960

Underwriters Trust

Company
of

the

published

accordance

the

Superintendent

the

provisions

State

the

of New

with

Cash,

balances

banks

nies,

and

ances,

Banks

States

Law

other
compa-

;

•

reserve bal¬

cash

items

$8,629,418.41

Government

obligations,

1959,
made

pursuant

Banking

of collection

process

United

Bank Stocks

with

trust

including

call

York,
ASSETS

December 31,

by
the

;

Broadway, New York 4, New York,

close of business

direct

and

guaranteed —i___—21,184,460.88
Obligations
of
States
and
..

political
Other

subdivisions

bonds,

notes,

2,038,117.19

and

de¬

bentures-—-

Insurance Stocks

Loans

481,870.51

discounts (includ¬

and

ing $993.98 overdrafts)—

Banking

Real

Christiana Securities Co
Common and

estate

fix¬

premises—269,697.31

assets

TOTAL

252,932.70

—

other

owned

banking

Other

owned,

and

——

than

Preferred

premises

furniture

none;
tures

19,876,233.94

—221,097.88

ASSETS

LIABILITIES
Demand

deposits of individ¬
uals, partnerships, and cor¬

Laird, Bissell & Meeds
Members

New

York

and

American

Stock

porations

deposits of individuals,
partnerships,and
corpo¬

rations

120

Bell

Bldg., Wilmington, Del.

Whitney Ave., New Haven, Conn.

Waldmannstrasse, Zurich, Switzerland

160 W.

United

States

—

Deposits of States and polit¬
ical

subdivisions

Deposits

Philadelphia, Pa.

Broadway, Salem, N. J.

;

Government

Teletype NY 1-1248-49

Phila. Nat'l Bank
Bldg.,

i.—

Deposits

BROADWAY, NEW YORK 5, N. Y.

Telephone BArclay 7-3300
DuPont

Time

Exchanges

of banks

and

trust

companies
Other deposits

(certified and

officers' checks; etc.)—

225 S. State St., Dover, Del.
TOTAL

Other

DEPOSITS

liabilities—

TOTAL

mmmmmmmmm

LIABILITIES.—
CAPITAL

$49

ACCOUNTS

Capital t
$1
Surplus fund—u ; 1
Undivided profits
*
1
...

TOTAL

CAPITAL

ACCOUNTS——

TOTAL LIABILITIES AND

CAPITAL

+This
stock

ACCOUNT3—

bank's

with

capital

total

par

$52,953,828.62

consists

of common

value of $1,000,000.00.

MEMORANDA
Assets

pledged

other

Loans

reserves

shown above
of

■'

are

126,500.00

—

KENNETH

'•

reserves

LANDPARE,

Treasurer

the above-named

institution, hereby cer¬
tify that the above statement is true to the

offices

best

and

of
.

GROWING!

164,670.92
as

deduction

of
.

for

are

$12,540,109.69

deduction

after

and

above

shown

Securities

assigned to

purposes
as

after
-

liabilities

secure

knowledge and
KENNETH

belief.

LANDFARE

Correct— Attbst;
CHRISTIAN

Member: Federal
Deposit Insurance

PERCY

Corp.

Federal Reserve System

JOSEPH

C.
B.

V
^Directors

KORELLV,

MAGNUS

TAMNEYj

Number 5918 ...The Commercial

Volume 191

retrieval field
this great.
to place a
chke in this potentially
colossal
Lid? Obviously, he can bet on
information

rhe

potential is many times
How is *he investor

reasonable

with

raM

and some of which

areas

to come. He can buy,Lctman Kodak, whose film seems
likely to be used at least for the
storage elements
of the system.
To hedge his 'bets, he can
pick
processes

for magnetic tape, or GE
for their new process for storing
graphic information and there are
other possibilities.
In each case,

cur¬

spectacular performers
may show
more

growth than the "glamour

expecta-

annlication somewhere in the>

can

rently be bought to yield close to
5%.
In the long
run, these un¬

inn'that their devices will surely
t

and Financial Chronicle

'short,

investment

phi¬

only a small part of his

not

neglect

the

mentals

which

the long

economic

is working for htm
graphic informationre¬

the

trieval field.

. ..

•

address
1960

Investment

Mr.

funda¬

prevail

Pratt

Outlook

before

meeting

sored

by Paine, Webber, Jackson
Minneapolis, Minn., Jan. 14.

tis,

Corporation whose entire

Itek

is concentrated in .the in¬
formation technology field. Here
the investor will find
a
unique

changed to The Benson

was

1937.

Operating four plants in
Kansas City, Mo., the
company is
precision

metal fabricator

the

spon¬

Cur¬

••

- •

»•

»■ _■ •

-•

• •

steel

'•

■

tors

and

York

member of the New

Stock

Exchange, and

of¬

number of

corporations,

other

Directors

Peddy, Gerard B.

ficer and director of

Board of Direc¬

new

'■.

Election of

David

and

titanium.

1st

the

New

Stock

admit

will

York

and

Exchanges,

Finkle, senior partner of the firm
of Finkle, Seskis and Wohlstetter,

has been
announced by John R. Peddy, new

Exchange.

President

corporate officers
Corporation Gen¬
eral, 48-year-old registered closed-

Mr;

for

•

Davenport Co. to
Admit. Partner7.7
bers

Sells Benson Com.

777 7V"
' V

"
■

Mr.

Henderson,

Officers

spe¬

of:

Board

new

end investment company,

less

mond

•;

The
consists

.Names New

Manufacturing Company in June,

Moore,
Vice-President, and M.
Hoffman, Secretary-Treasiirer. *

Investment Firm

company's

S.E>. Fuller & Co.
#

business

the

new

Securities

director

and

corporation.

officers

elected

the

members

the

Michael

were:

America

had di¬

itself of all its holdings in

Securities Corporation General.

Rich¬

Feb.

Of*

;

William

York Stock

announcement,
stated that Dynamics

Peddy

vested

Peddy, other

New

making The

Corporation

;

In addition to Mr.

RICHMOND, Va. — Davenport &
Co., 1113 East Main Street, mem¬
*

Accordingly, I venture to sug¬
gest that the investor might look

name

in "1907,

pull!

always

invested dollar
in

continuation of

founded

losophy today is simple: Be alert! cializing in "aluminum but with
to
the
new
developments in a established
capabilities "in
the
rapidly changing world, but do fabrication of
magnesium,, stain¬

Ampex

however,

Inc.,

(273)

Wal¬

lace,; Jr. to partnership.

;

effort

of scientific talents
devoted to lifting ;the crushing;
burden of paper from the scientist,
the research worker and the busi¬
nessman.. I know of no other com-'"
p^ny in which the sophisticated
investor
receives such
a
large
stake, per dollar invested, in in¬
combination

formation

retrieval.

Public

offering

The

Benson

Company,

Growth

by S. D. Fuller &
ciates.

The

fered at

est

from

100%

exclude

mean

consideration of the growth

seeker,
bilities

this

dynamic

there

which

ion

the

oils

are

many

opin¬

oversold.

are

others.

Even

markets, selected issues
new

economy

drugs

the patient investor.

There

in. bear
make

can

Those

stocks

really
can

that

bearish

still

about the

find

should

individual

show

stocks

companies,
population

many
or

electric

power

Stock

Exchange

Stock

Exchange

York

Members

New

Members

Will Admit Stein

American

•

Mich.—Harris

DETROIT,
Book

Building,

New

York

members

Stock

admitted Myron

Co.,
Over-the-Counter

of'~the

Exchange,

has

Trading Dept.
Brown

Howard

D. Stein to part¬
MacKain

Frank

nership effective Jan. 21st."

stock
share.

per

Net

first

NEW YORK 5, N. Y.

100 BROADWAY

Sutro Bros. & Co.

com¬

closed.

proceeds from

the

ing will be used by the

COrtlandt

7-6800

Bell System

—

Teletype NY 1-1459

To Admit Partners

for

various

purposes,

York

purchases of addi¬

Feb.

manufacturing; equipment,
purchase of buildings, the re¬

tirement of
ance

ing

bank loan.

of the proceeds

for additional

for
of

Benson

one

the

ricating

City,

oldest

the

try.

Incorporated in 1928

son

Brass

Mo.,

aluminum

are

op¬

Manufacturing

companies

admit

Arthur
to

Koch

partner¬

ship.

Form

Shields & Company

fab¬

has

Company

been

formed

with

offices at 2812 West Peterson Ave¬

to engage in a securities busi¬

ness.

Officers

are

James L. Marcus,

Distributors

Underwriters

President; Martin H. Shender and
Samuel
S.
Herman, Vice-Presi¬

coun¬

Ben¬
Works,

Chandelier

James, Martin Co.

CHICAGO, 111.—James, Martin

nue

The

will

re¬

manufactur¬

company.

Company,; Kansas

members of the
Exchange, on

Stock

Ernest H. Steiner

and

will be used

expanded

and

the

Co., 120 Broadway,

City,

The bal¬

working capital

enlarged

facilities

erations

York

New

tional
the

Sutro Bros. &

New

corporate

including the

financ¬

company

growth

of which

industrial

date

oversubscribed

was

Books

the

and

modest

appreciation over the year ahead.
In particular, I have in mind the
common

stock,

mon

quired

highs.

market

inter¬

common

$11.50

of¬

were

marking the
public sale of the company's

possi¬

and chemicals
are
several
possibilities
could handsomely reward
In

ours.

1959

asso¬

offering,

Ingalls & Snyder

Harris & Co.

stock

existing

other

the

from

and

and accrued

Dec. -1,

priced

Jan.

Co.

debentures

was

Areas

the field

of
de¬

Manufacturing

made

was

delivery, while the

of auto¬
mation, in its broadest sense, I do
not

$2,000,000

subordinaited

bentures, due Nov. 30, 1971 and
130,000 shares of common stock

The

Other

In discussing

convertible

dents;

and

Edward

Edelstein,

Secretary-Treasurer.

Industrial and

fnfc
mi

Municipal

Securities

COli.\lV

Second National Bank

TRUST

OFFICES

COMMUNITIES
8

FEDCsVt

Ashland, Kentucky

IW *-

C C»
DEPOSIT

iNSURANCE

31, 1959

STATEMENT OF CONDITION AS OF DECEMBER

CORPORATION

ASSETS
Cash

Hand

and

United

THE FAIRFIELD COUNTY TRUST COMPANY

States

Public

Housing

Loans

Bank

and

1959

Fixed

5,486,250.00

.........

Undivided Profits

Banking House, Furniture

Reserves

.........

Other Real Estate.........

261,912.26

Total Resources

.........

Deposits

Total Liabilities

.$188,314,759.09

Other

•

.—

544,686.30
71,404.02
4,471.38

$30,749,167.25

...

Interest,

1,761,605.41

Undivided

1,237,747.43

Profits

Capital
Total

.$488,314,759.09

444,993.34

$2,244,993.34

Reserve

Capital

....

700,000.00
1,100,000.00

—

Funds

Valuation

Loan

170,921,606.24

640,273.56

...

Funds

and

2,885,266.90

Reserves

$30,749,167.25

LIABILITIES.....—..

TOTAL

45,027.97
24,266.68

1——

Etc
1.—:

$27,794,605.70

—

Taxes,

Capital Stock-!.Surplus

...

for

Liabilities

1,009,384.68

Deposits

ASSETS-...

Unearned Discount

40,293.42

Other Assets

Assets

1.00

...

LIABILITIES

Reserved

Other Liabilities

544,685.30

—

TOTAL

1,283,102.83

$ 13,384,415.33

3,466,534.59

Equipment

6,615,062.50

17,609,025.62
54,000.00
12,465,579.93

...

and

2,641,554.90

1._

Assets-

Overdrafts

Other Bonds and Securities
16,083,522.56
Loans and Discounts......
105,898,304.47

Equipment

Discounts

Building
Fixtures

Other

Capital

—-

Bank

Reserve

Furniture,

LIABILITIES

39,944,632.59

206,227.65
949,750.00
1,485,577.25

Securities—

Securities

and

Cash

Federal

Total

Cash and due from
banks..$ 22,619,562.20

$6,482,100.64
8,485,370.08 $14,967,470.72

;

Harold E. Rider, President

P. S. Government
Securities

Authority

Banks

Securities..

Agency Securities
Municipal Securities.J.
Total

RESOURCES

from

Federal

Stock

STATEMENT OF CONDITION AS OF DECEMBER 31,

Due

Government

OFFICERS
JOHN

STAMFORD

GREENWICH
RIDGEFIELD

DANBURY

DARIEN

BETHEL

NORWALK

GLENVILLE

NEW CANAAN

WILTON

RIVERSIDE OLD GREENWICH

BOONE

PAUL

LOGAN,

CLICK,

MAYO, Chairman

CAMPBELL,

MEMBER FEDERAL

SO. WILTON

DEPOSIT INSURANCE

GEORGETOWN-REDDING

Vice-President

CORPORATION

JOSEPH KING,

the

Board

WILLIAMS, Executive Vice-President and Trust Officer

PAUL GRUMBLES, Asst. V.-P. & Tr. Off.

NOROTON HEIGHTS SO. NORWALK

President

Asst. Cashier

SEATON, Vice-President

FORD DIXON,

Cashier

C. Ei PICKLESIMER,

Asst. Vice-Pres.

DON EDWARDS, Auditor

Financial

The ommercial and
C

(274)

Chronicle

.
''

Thursday, January 21, I960
'

ent

A Deflationary Tour on

sort

the

namely,

The Road to Inflation?

time

honored

balanced

Recalling 1929, investment banker maintains that while admittedly

debt,

plant over-production,

top-heavy inventories,

and

increasing

"stupid" armament
ion economic and
with

race

with its inflationary spending. Ventures opin-

dollar is

monetary retrenchment and deflation will be tried, ./•//

ensuing re-inflation—but with

common

1929

and

carry

of the early '30s are apt to
be called today's Cassandras when
compare

the

today
are

and

less

dently buying

ate

ings

earn¬

because

they

believe

inflation
here

and

the
W. S. Wasserman

mar¬

deficit
of

times

sure,

Government

financing,

wages

tion

and

plus

the

have

spending,

rising

advance

tide of optimism

the

record

but

lest

the

fundamental

there

rules

cre¬

backed

past

forget

tide

popula¬

surging

rapid

technology have all helped to
ate

inventories,

six

years,

certain

governing

months has

small

but

increase

and

credit

card,

the

where

the

host

the

who

are

already

system is
never

ondly,

been

debt

that

our

It has

Sec¬

one-way street.

period of prosperity

within

dose of

cyclical system.

every

brings

first

its

always

change

the

stock

some other symbol
instability, that alarm

over¬

been

forerunners of depression.

the

again will put a temporary
end to our speculative
mood, and
we will begin to see the
possibil¬
ity of a major depression. Ever
since

thp NEW DEAL each incipi¬

that

necessitate

will

armament

some

limitation .is
.

achieved

result of

both

countries

having arrived at
point where in the event of
win

can

the
war

both

-and

fore,

destroyed.
There¬
continue to spend large

sums

money

for

weapons

that

will only be used in the event of
the destruction of both countries

vast

the

height of
when the

cially

have

almost

been

In agri¬

forced

giveaway

and

absurdity
world

espe¬

needs

against

the

has

Free

tion

the

dollar

mitting
bark

den

vast

reservoir

are

benefit

European

stronger
mon

that

result

the

and

certainly have vast

tors of the

the

some

the

re¬
sec¬

market, and this in re¬
depress the market as
•
/ ;/ /

may

whole.

31,

The

com¬

Threat

the

when

the

downward

holder

1959

Deposits

Unearned Income.

.,.

dollar

gold

will

Optimistic Counter

are

State Taxes

Dividend Payable in

50,140,549

$394,317,575
4,029,851

^
.

These

indebtedness
states

Reserve for

......

1,290,380

•

■

by tanks.
failed

Capital Stock

Total

...

move-

its wake

;;

first

For

inflation.

history, we
the prospect

our

continue to follow

that

remember

must

debts have reached

proportion of
there

are

ap¬

them

down.

once

certain

national income,

our

only two
The

to scale

ways

first

take

painless route of infla¬

well

may

dollar

gold with

embargo

consequent weak¬
American position

ening of the
throughout the
route

and

which
flight

consequences

world.

the

one—the

route

The sec¬
disagree¬
of
bank¬

ruptcy, the scaling down of debts

through

33,907,598

the

force

Pomekoy Day, Executive Vice
President
John B. Byrne, Chairman
of the Executive Committee

viajeur of the

bankruptcy court and consequent
reorganization.

brought about

Raymond C. Bali., President

time

the

$436,060,296
Lestek E. Shipper, Chairman

iron

inflationary route which

ond

•mm

the

for which

cure

threatened

from

500,0(H)

7,001,348
•.

that

either deflation

time

1,841,919

....

$436,060,296

Gov¬

overabundance

debt, the only

able

individuals,

Federal

$12,406,250

Capital Funds.

the

What most people have

tion—the

14,500,000

Undivided Profits.
1,173,833

and

realize

967,103

Capital Funds:

5,055,810

popula¬

capitalist society is that
period of prosperity brings

each

Contingencies.

based

are

they remind me of the
spectacle of the infantry in the
first world war when they were
being attacked for the first time

496,250

•

January .'I

Other Liabilities.

186,081,520

argu¬

opinions I have just

ing brought into play by the in¬
creased tempo of modern inven¬
tion. - However, when these are
stacked
up
against the growing

the

Income..

counter

many

following—growing

;

Surplus

the

painless one
and socially much more desirable,
we are going to run up against the
possibility of a flight from the
dollar.
_/

oh-4*"

em¬

large

pears to be the most

(Par Value $12.50j

„

per¬

more rapid obsolescence, the
speedy developments of new tech¬
niques and the new industries be¬

; The gist of my argument is that

distribution

Accrued Federal and

gold
Treas¬

government

expressed.

our

State, Municipal and Other

Other Assets.

the

Argument
There

LIABILITIES

81,291,087

........

cheapened.

rule of
Unprecedented Dollar-Flight. 1

market and their methods of

manufacture

bring about a disruption
present industrial pattern

will

and

growing

economy
as

with

worst

armament,

percussions

U.S. Government

Banking Houses

leading to

ernment,

our

remains

Accrued Income Receivable.

con¬

balances, thereby
a

and

the

fact

Although I
nothing precipitous to
place, the very act of limita¬

turn

.$111,027,167

Loans and Discounts

possibility,

increase

the

event,

the

large portion of the
supplies are owned,
distributed
and
controlled
by
American, companies.
However,

Cash and Due from

Securities

nations-

the

tion will

cred¬

eagerly de¬

that

for

take

/V'

Securities

But

coun¬

at best can
eventually
major lifting of the bur¬

look

fuel

December

Banks

embargo

gold.

spending pro¬
gram without the necessity of onbalancing the budget.
In either

agreement

and

lead to

Mexican

RESOURCES
•.V-.":

another

World

of the

will

the Soviet

and

soon

Statement of Condition
'

dollar

price in which event the
ury will show a large increase in

the

depression.

that should

•

export

multilateral

are

•

there
the

already witnessed

There

the

i>*4

run

namely, coordinated action by the

construc¬

living of mankind

How

reach

resources

will provide some form of limita¬

pro¬

now

have

whole.

sire

were

still

these

standard

in order to rid ourselves of

world's

large
Coming

balance

adverse,
a

pre¬
once

very

our

try

the
pan¬

tion,

minimum costs.
we

itor nation.

ex¬

program.

when

our

strength abroad.

of inherent

time

ments to the

once

wake

debt, and such overdoses
have

activity

been

going into areas
formerly supplied pri¬
marily by the U, S. To be sure,

it has been in fhe re¬
cent past by an overdose of
spec¬
ulative

spending

negotia¬

our

definitely in prospect.* /This has

ex¬

all

are

cotton

scale

agreement with
Russia no one'can tell, but cer¬
tainly the peoples of both the

triggered

The

embark

able

that

Whether that alarm is going to be

constant.

now

form

quantity—ma¬

surpluses. Brazilian

alarmed.

free enterprise system that remain

caution

again

adopt

authorities

monetary

employ

gram

increasing debt is
brought to a stand¬

the

point

have

tively for the improvement

culture

this pyramid of

going

likely to grow
finally, throwing
to the winds, will

and

low

day,

month by month in a
sharply as¬
cending spiral. One of these days

still

icky,

major exporters of
machine tools, many of which are
selling at competitive prices be¬

cuff.

Eventually,

deepens,

government is

Britain

trip

day

export

depression

tools is just one
example
agricultural machinery is an¬
other.
Today, Germany, Russia,
Italy and Japan as well as Great

buy

reached

costs-

that

the

siderable

chine

install¬
can

articles

may

experienced

the last 25 years..

over
as

have

this will only come after the

the

fact

than the minor

severe

depressions

payments

Stupidity

and

all

This

necessarily increased
government spending to the
point
that the next depression
may be

likely to

tions with the Soviet where

concerned,
their
export

is true

dollar.

indefinitely.

lost

the

seems to me to be
foolish to count on a
continuation of human • stupidity

What is true of Ameri¬
other

used

burgeoning

you

automobiles

can

due

largely

with

extremely

American neither -side
far as their- sides can be

Impermanent

the

production

have

tre¬

meal

world

debts

municipal,

now

everything from
around

the

markets.

plant
impor¬

been

measure

kinds—state,
ment

Our

a cumbersome burden
The buying prosperity of

last
no

labor

technol¬
up

y,?.

•

their

catching

the

longer, for

fact,
motor-companies

all,

mendous

changed.

business,

lower
No

necessarily

Finally, it

are

far

not

that

rapidly

•

competition from
new
competitors
and equipment and

have;

mobiles.

set¬

intermedi¬

good

heavy

of debt.

ket lim i tations.

future,
is

severe,

the

does

factor

ours.

ample, do we occupy a preemin¬
ent position in the export of auto¬

also foresee the initial signs

top

tant

stay

foresee

can

than

strike

steel

benefit

far

cost

with

for

history

our

plant
technological
efficiency
is
equal of ours and who have

1928,

yield

over-production and most

science

has

the

period

can

current

Looking into the

tled, I

the

that

now

sold

stocks

than

money.

confi¬

50 times

whose

the

some

many

article

tant

competi¬
areas, but

importantly,

time

abroad

1928
when
it was
possible
buy good bonds yielding above

future

respects

experiencing

wonder, therefore, that
today reminds one

some

who

situation

and"

era

young

hopefuls

the

;

conditions that prevailed

then

"New"

with

optimists

first

Reminiscences

only

and

competition where the cost price

ogy

as it
priced

strong

ruthless

selling price. To be
sure, wages are advancing abroad,
but they are still far below Amer¬
ican standards. The more impor¬

is that the

not

will

determine its

through constant doses

market

much

Some Uncomfortable

backs the

our

scars

have

manning, the, government
of expenditure without the
of provoking a
flight

possibility

inflation, out of the

tive

We, who still remember Oct. 29.

longer

ourselves,

stock values.

factor

new

was.

drastic intervening decline

The

omy.

cor¬

past

pumps

much

applied in time to prevent
very serious upset in the econ¬

be
the

the

will be

competition from abroad. Doubts generally assumed permanence of

in, it cannot
has been in

delay

that

doubtful whether this remedy

cites tremendous overdose of state and consumer "on-the-cuff*

man

from

with the other free
world, we are going
to find ourselves up against the
steadily increasing impact of So¬
viet
competition, a competition

But today there is a new factor
abroad in the world which makes

cyclical depressions, Among present portents of trouble, Mr. Wasser-

In ad¬

sets

rected

nations of the

A Weaker Dollar

"times have changed," our free enterprise system is still subject to

world.

merit

dition, along

and

New Deal administration.

City

free nations of the

put to
work under Mr. Roosevelt's first

By William Stix Wasserman, William Stix Wasserman & Co.,

\
'■/V

tion that!

gov¬

expenditures and the un¬
budgets that were so
discovered

the predominant posi¬
occupied amongst the

longer in

pumps

increased

sharply

ernment

happily
Inc.. A eiv York

full

its

quickly catching up and in some
cases surpassing ours,
we are no

has been stopped
maturity by a re¬

depression

before

labor

This
a

productivity

employment.

has

vast

always

increase

and

also

un¬

It has brought about

incipient farm revolts and in the

history

The Connecticut Bank
AND TRUST
HARTFORD,
28
MEMBER

has

never

the
been

since

1914

successfully

car¬

world

ried through to the end.

With J. P. Lewis

COMPANY

CONNECTICUT

(Special to The Financial Chronicle)

MILWAUKEE,

Wis.—-John

Fishclick and Samuel Ostach have

Offices-ready

to serve you-in

FEDERAL RESERVE SYSTEM

•

20 Connecticut communities

MEMBER FEDERAL DEPOSIT
INSURANCE CORPORATION

become
Lewis

Street.

associated
&

Co.,

with

735. North

P-

Water

Number 5918

Volume.,191

The Qomriiergial and
Financial Chronicle

proposed committee that is to deal
with this matter must
enjoy high

Closer Economic Links Are
A Welcomed

priority.

Canadian

Sight Indeed

By Dr. Paul Einzig

taken

true

economic

to continue

its

cooperation
economic

depends

inflationary effects of

British anxiety that

the

LONDON, England

As a result
of the Ministerial meeting held in
Paris a modest beginning has been
made of the new movement towards the establishment of closer
economic links between Western
Europe
on
the one hand and
—

most

Paris

could

third

broader

the

place

basis.

and the Free Trade

All these aims
British

with

American.

It has

tain's aim
a

European
United

can

Trade

Area

could

the

thing

peoples

also

Britain, Their

steel

cated by

using

outprice

for

them-

There

certain

cussions

revival

would

drastic

Woods
•

want

revision

taken

the governwould
be a

thing

last

The

up.

ment

inflation

Sir Hawtrey off and on
15 years, would be

some

reper-

amount

anxiety about the possible

our

;

Britain
the

the trend

the

Gretton

system,

- —

Chicago Analysts to Hear

of whges and .prices in Britain.
In a letter to The Times a leading
British economist Sir Ralph Haw-

trey,
this,
and

results, and the
have

in the United States

that, 4 to

suggests
the link

prevent
sterling'

between

sterling should be allowed to
appreciate in proportion to the

and

•

...

CHICAGO, 111.—A. O. Carpenter,
President of the Chain Belt Cornpany, will be
guest speaker at
the luncheon meeting of the Investment Analysts Society of Chicago to be held Jan. 21
at the

the dollar should be severed,
-

Midland Hotel.

already

points

views,

doubt that the presence

Pershing

nomic

nroeress

coring

the

Francp

months.

;. '

NEW YORK STOCK

eco-

rim-in0

EXCHANGE

AMERICAN

Much will depend
the

Co.

MEMBERS

progress.

EXCHANGE

STOCK

re^ery

The

that has taken place in that coun-

try

has

been very
remarkable
and if President de Gaulle

indeed

succeeds

Com-

120

from

Once that

American point of view.

equal

strength

Private Wires

footing with Britain

with the

even

WOrtli 4-4300

Europe," will achieve

economic

and

deal

Teletype NY 1-749-51

be reached at which France,
far from being the economic
man

BROADWAY, NEW YORK 5, N. Y.

A stage will

soon

the burden it will be all to the
good from a British as well-"as
an

utterly unlikely that this
proposal, which has been advobe

selves from international markets,

Atlanta

United States,

Boston

Houston

stage has been reached

Buffalo

Lima

Los

Chicago

Dallas

Hartford

Detroit

Minneapolis

Angeles

New Orleans

•

tsreaKingf

tne - ueadiock

Finally,
the
American
move
to have broken the deadlock
arose

between the Common

tion

de Gaulle may show
inclination towards coopera-

with

tries

the

rest

field.

economic

French

••

St. Louis

San Francisco

Wheeling

Washington

Youngstown

the

indus-

link the two organizations have
until

Free

South Bend

sufficiently prosperous
they will no longer be afraid of
becoming party to an arrangement
under which they would have to
face increased British and Ameri-

Market and the Free Trade Association. All the British efforts to

San Antonio

Pittsburgh

President

encountered

now

uncom-

are

Carl M.

promising resistance on the part can competition in the Common
over
North America,
or
at any of President de Gaulle's France. Market.
'LT'.V:
rate if some of its provisions could
Before the Paris meeting it looked
Hopes We Have No Revival of
be applied
there, so much the as though the two trading groups
Inflation
better. The encouragement of the would remain isolated from each
penetration of American competi- other and might drift into rivalry
It would be a pity if, as a result
tors
in
the
Western
European verging on economic war. For this of a revival of inflation caused
be

would

of the United States and Canada
at these discussions will facilitate

sufficient

which

Area

American

industries

It seems

rise in American prices.

likely,to impede future
negotiations.
Nevertheless, there

seems

expense

one

access

are

"sick

Trade

States.

For

gain

considerable diver-

some

between

roped

seeking to establish
Free

con-

beyond

premature

negotiations

which

countries too will be
in to carry tfreir share, of

been Bri-

never

gain advantages at the
the

well

the

over

European

in accordance

are

far

course,

sions

monwealth.; If the proposed
scheme means that other Western

new

interests

being

become accentuated.

Association.^

upon

developed

full member sub-

policy
may create a bridge between the
two rival trading groups of Western Europe, the Common
Market
the

the

in solving the Algerian
problem without thereby provok¬
ing a violent political explosion
at home,
progress
is certain to

means.

ject to certain restrictions. In the
second place it aims at organizing
economic aid to underdeveloped
countries

for

would

is taken in London that it looks

directly responsible for the under-

Western Europe. .This
be served by joining

0. E. E. C. as a

revealed

the other. The wheie
oi-js reahzed that the
American
move
in
taking the United States can no longer be
initiative to that end aimed at expected to carry the high prokilling three birds with one stone. Portion of the ''white man's burIn the lirst place the United States
den that they have been carrying
wants to be included in the bene— '-since the end of the war. Britain
fits that might
result from the is quite prepared to increase its
establishment of broader trading share within
the limits
of
its
end

optimistic-expectations.

rejoice

attitude towards the problem the
British attitude is in accordance
with British free trader traditions,
The idea of placing economic
assistance to backward countries
on
broader foundations
viewed with favor in

all.

acceptance of the aim of

progress

is,

/
or

North America on

areas

depended

stitutes

■

basis

common

mere

settlement will

•

far from having

very

establishing such cooperation

to break the link between the dollar and sterling.

pressure

cause

been

thoroughly difficult. Nevertheless,

He also relates

our steel

achieved

are

ican

solve

inflationary repercussions on wages and prices in Britain

have

could-have

agreement and President de Gaulle

greatly

and

recovery

Algerian problem without a. domestic explosion.

its

Hrr

European

ability

found

of U. S. A. protectionism, isola¬
tionism, and rivalry verging on economic war in Europe. The com¬

admits

result

industries

the Common Market and to the
Free Trade Association. The view

•

Einrig who feared emergence

France's

initiative it might have
before
even
that

been

ever

American-

achieved, if indeed it would have

American-Canadian initiative in attempting to forge closer
economic cooperation with and within Europe spells good news to

mentator

the

years

modest

Recent

Dr.

Without

(275)

expanded

Loeb, Rhoades

Co.

Members F[ew Tor\ Stoc\ Exchange, American Stoc\ Exchange
and principal

Commodity Exchanges

42 WALL STREET

NEW YORK 5,

N. Y.

markets

considered

Underwriters and Distributors

British
opinion
is
duly by the terms of the recent settlegrateful to the United States and .ment in the steel industry, the

London

reason

to be

vival

infinitely preferable to
of

tionism
contrast

protectionism
in

the

with

and

United

the

re-

isola-

States.

Canada

result

French

narrow

for
of

agreeing

intervening

inducing
that

the

with

the

France
work

to
the

United States would be unable to

derive

full

benefit

from

Corporate and Municipal Securities

ar-

rangement under which American

LONDON, ENGLAND
ST.

NEW YORK STATE:

Lincoln Rochester
7

Middletown

CLOSE OF

Utica

•

YORK CITY
Geneva

•

Watertown

•

BUSINESS DECEMBER 31,

Anderson 8c Strudwick

Boettcher 8c

Statement of Condition
OF

Elmira

•

Hornell

•

Richmond, Charlottesville, Va.

Chicago, 111.

Company

Denver, Colorado Springs, Grand Junction,

•

■

•

J. C. Bradford & Co

Pueblo, Colo.; Chicago, III.

Nashville, Ktioxville, Jackson, Memphis,

1959

Clarksville, Tenn.; Atlanta, Ga.; Jackson, Miss.

Chaplin, McGuiness 8C Co
RESOURCES

Cash
U.

Government

$ 53,198,1.99.94

Bonds*

—

Other Stocks and Bonds*
Loans*

Mortgages*
Banking Houses
Accrued Interest & Other Income Receivable
Other Assets

-—

Philadelphia, Lancaster, Germantown,-York, Pa.

Cooley & Company.

94,936,282.53
15,337,634.11
168,359,274.78
59,741.569.17
6.195.410.94
1,522.583.91
352,288.04

...

—

Dittmar 8c

Hartford, Conn.

Company, Inc..

after

Interest

General

Loewi 8C

•

for

Co., Inc.

Surplus

Prescott 8C Co.
Sanders 8C

———

Profits.

•

15.000.000.00

"J4'5

TRUST
—

——————

Company........
.,

.*.......,,..
,

1FOREIGN

———

————

Paulo A*.

........

CORRESPONDENTS

Bromherg.

183 Main Street E.,

and

Member Federal Reserve System

Member Federal Deposit Insurance

Co., Ltd.

Corporation

their

i........

.Tokyo, Japan
.Melbourne, Australia

access

connections

Caracas, Venezuela

•

Ian Potter 8c Co

Providing immediate

Toronto, Canada

.Montevideo, Uruguay

PRIVATE

Rochester, N. Y.

Sao Paulo, Brazil

Mercantil De Inversiones S.A.

$459,596.049.89

Lincoln Rochester Trust Company
.

.D.allas, Tex.

Montreal, Canada
v.

Roldos S. A.

Yamaichi Securities

Main Office

Billings, Great Falls, Mont.

Greenshields 8C Co. Limited

DEPARTMENT i
—

Baltimore, Md.

.Minneapolis, St. Paul, Rochester, Minn.;

.Cleveland, Shaker Square, Canton, Columbus, Toledo, Ohio

$399,643,243.42

—

Chicago, III.

.Cincinnati, Ohio

Louisville, Danville, Lexington, Bowling Green, Ky.

T. A. Richardson & Co.,.

Assets

........

Slltro 8C Co. San Francisco, Los Angeles, Beverly Hills, Hayward, San Jose, Calif.

$30,090,671.35

Washington, D. C.; Alexandria, Va.

-..-$10,531,500.00

Undivided

.Milwaukee, Appleton, Beaver Dam, Chippewa Falls,

Piper, Jaffray 8c Hopwood-

30,090.671.35

Stock

.Chattanooga, Tenn.
.i.....

Bay, Janesville, Madison, Racine, Waukesha,
Wausau, Wauwatosa, Wisconsin Rapids, Wise.

500.246.25

lst„

Capital Funds..
Common

.San Antonio, Dallas, Tex.

....

Lyons 8c Co
Mead, Miller & Co.

1.033,673.64
3.014.490.95

Discount

Unearned

......

•

•..v...v.

•

W. L.

803,155.04

Expense

Dividends Declared & Payable February

Eau Claire, Green

Reserve, for Federal Income & Other Taxes
Reserve

Hill & Co..

$364,201,006.19
for

Farwell, Chapman & Co..

LIABILITIES

Deposits
Reserve

.....

St. Louis, Clayton, Mo.; Springfield, Belleville,

Jacksonville, III.; Houston, Tex.; Little Rock, Jonesboro, Ark.; Keokuk,
Ames, Iowa; Shreveport, Lake Charles, La.; I.aurel, Miss.; Phoenix, Ariz..

Elder 8C Co.

$399,643,243.42

applying evaluation reserves

A. G. Edwards 8c Sons

Johnston, Lemon 8c Co..
''Net

Pittsburgh, Pa.

E. W. Clark &£ Co

Ithaca

•

Stroudsburg, Pa.

•

Betts, Borland 8C Co

Syracuse

•

HOTEL, NEW

Auburn

CORRESPONDENTS

COMPANY

TRUST

REGIS

WIRE

SYSTEM

•

primary markets through Branch Offices and Correspondents
over
100 cities throughout
the United States and Canada
to

In Fiscal 1960 and 1961

the

With

ting

projects a $4,2 billion fiscal

tion

Message underscores the importance of fiscal soundness in meeting
domestic and international aims, and strongly advise that adher¬

of the

sides

revenue

last

for

Congress,

$79.8 billion budget for the

196 1 fiscal

let up

year, no

fail

taxation

during

and the

happy

de¬

spite

bil¬

planned1
in

increase
fiscal

1961's

spending.
The

Pres. Eisenhower

budget

is the last
the

the

one

for

will

President

with

cooperation

oppositional
next

live

with, in

one

his

term

soundness

government

and

the

debt

limit

lower level

budget is not increased
decreased;

increase

military outlays, space
projects and mutual security pro¬

and removal of the interest

gram;
rate

role

assure

higher

actual

fiscal

temporary

another year at

revenues

the

and

effett, the submitted
budget sums up his philosophy as
to

—if the

Congressional

majority,

last

office.

Federal

blueprint calls for
higher aviation and gasoline fuel
taxes and postage rates; continua¬
tion of corporation, transportation
and
local
telephone taxes;
de¬
ferral
of
taxes
on
earnings in
underdeveloped
areas
until
re¬
patriated; some correction in our
depletion tax laws; extension of

surplus
$1.4

huge

our

fiscal

The

billion

lion

surplus and

debt.

ahead,
of

tax

reduction

ex¬

pected

$4.2

$1
billion
recom¬
increases so as to

pass

achieve the projected

pros perous

prospect

mended

the

period

the

^particularly urges Congress not to
Veduc^ taxes, increase spending or

ceiling

The
to the

stronger military defdhse and bal-

government bonds.

budget

message,

Congress

this budget demon¬
objective can be

delivered

Jan. 18, stated

in part as follows:

the

time

same

required
military
enhancing the na¬

and

the

America's

resolve,

our

allocate

the

nation, to

prudently,
to maintain the nation's security,
and to extend economic growth
resources

our

highlight,

this

budget

pro¬

■"?;

Revenues

to debt

reduction, which I believe
a
prime element in sound

fiscal

policy for the nation at this

time.

■'v"

(2) New appropriations for the
military functions of the Depart¬
ment

Defense

amounting

$40.6 billion, and expenditures of
$41 billion.
These expenditures,
which will be
the

1960

strong

provide

versatile

and

which

will

(3)

Increased

appropriations
(including substantial restoration
of congressional

reductions in the

1960

budget),
and
a
virtual
doubling of expenditures, for nonmilitary space projects under the
Aeronautics

and

This

Space

furthers

ye tt tit/tj/ter

/ettt/itty <;xr/tttnye±

outer

(4)
rity

with
in

(T+O

for

rear/way, e/lfw
//rttf,

Danbury,

ILLINOIS: Chicago, Dixon
Kalamazoo

(Cotton)
PRANCE:

•

Hartford,
•

MICHIGAN:

PENNSYLVANIA:

I. A/.

•

HONG

•

KONG

New Haven,

world
forces

Treaty

Philadelphia

ARGENTINA:
•

Torrington.

Battle Creek, Bay Oity,

Bethlehem,

WISCONSIN: Madison
Paris

Meriden,

•

LEBANON:

Beirut

Caracas,

Flint, Grand Rapids,

•

Memphis

ENGLAND:

Maracaibo

VENEZUELA:

•

MONACO:

(5)

Waterbury

TENNESSEE:

Buenos Aires

year,

million

This increase

needed

chiefly through the
Loan
Fund,
and
to

accelerate

London

Monte Carlo

forces,
of

the

weapons

record

$1.2

tures,

strengthen
particular

North

Organizations,

vanced
CONNECTICUT:

$100

assistance,
Development

(WcrU.AM

\rir '/Art J3,

secu¬

economic and technical

the
.

new

current

expenditures.

free
190 A

mutual

the

increase

program

for

programs,
an
increase
of
$950 million above appro¬

priations

Commodities

excise

legislative

constructive

(10)

to achieve improvements
in existing laws relating to gov¬
ernmental activities and to ini¬

program

and

Atlantic

with

ad¬

equipment.

total! of expendi¬

billion, for water

re¬

projects under the Corps
Engineers and the Bureau of

sources

Reclamation.

the interests of our

people.
In

In addition to funds

tional

million

total

for
of

1961,

will

new

and

na¬

welfare.

and

security

veterans

higher

compensation

and

State

and

$2.4

billion

ex-.,

local

increase

NEW YORK 5, N. Y

Telephone REctor

2-4949

over

Private

wire

Philadelphia

they should rightly have
deciding between reductions in

the public debt and lightening of
the tax burden, or both.

Soundly

conceived
be

tax

revision

approached

then

can

comprehen¬

orderly basis, rather than
by haphazard piecemeal changes,

and

can

accomplished within a
economic
and
fiscal

setting
of
stability.

Budget expenditures in 1961
estimated at $79.8

tributable

$1.4

should

fairs with

high

financial

its

conduct

total
to

the

increase

(1)

1960

for

relatively

Research

and

the

by law,
on
the public debt, vet¬
compensation and pensions,
and public assistance grants, and
(2) an increase of about $500 mil¬
interest

af¬

erans

meeting the
nation's needs and opportunities
within its proper sphere while at
pru¬

in
expenditures because of
commitments made in prior years
for Federal housing programs, for

discipline in matters of bor¬
rowing and spending, and in in¬
curring liabilities for the future.

civil public works
projects and
other construction, for loans under
the mutual security program, and

the

time

same

exercising

dent

lion

for other programs.

Totals

Budget

present fiscal year
encouraging prog¬

the

During

made

have

achieving
sound
fiscal
objectives. The deficit of
$12.4 billion in fiscal 1959, which
ress

policy

largely caused by the reces¬
is expected to be followed
surplus of $217 million in the
current
year.
To safeguard this
small surplus, I am directing all

was

government departments and
the

over

funds.

be attained only
if economic growth is not inter¬
rupted.

retirement.
the

1961,

year

only sound
amounts

some

reduction

are

debt

judgment this
course.

Unless

applied

the

recessions again produce
of

prosperity, such

anticipate in the coming year,,
sound fiscal and economic policy
requires a budget surplus to help
counteract inflationary pressures,
to ease conditions in capital and
credit
markets, and to increase
the
supply of savings available
for the productive investment so

essential

continued

economic

budget
recommendations
lay the groundwork for

1961

sound

than the

less

enacted

1960,

than

and

,1961.

and flexible

million

less

expenditures

Budget

receipts under existing
proposed legislation are ex¬
pected to rise substantially to $84
billion

1961.

This

compares

with the revised estimate of $78.6
billion.for 1960 and actual receipts
of $68.3

billion in 1959.

Management

Achievement

the
of

Debt

Public
the

proposed
budget surplus will provide an
opportunity to offset part of the
incurred

years

1958

cause

and

the

1959

fiscal

the

be¬

largely

recession.

The

cor¬

responding reduction of the public
debt
will
reduce
government
competition with private industry,
individuals, and state and local
governments for investment funds
and will

interest

help

ease

rates.

recommended

the

pressure on

Along
removal

the

with
of

the

fiscal policy

Continued

page

na¬

expenditures, public and
private, for these purposes —in
to

strong

and

assure

modern

stimulate

technological
(8)

prompt
crease

aviation

basic

MEMBERS

Commodity

CORPORATE, MUNICIPAL & FOREIGN SECURITIES

120

Broadway

New York

5, N. Y.

JE.

Teletype: NY 1-1973
Cable Address:

EVANST0CK

CO.j

Telephone DIgby 9-0777

and

AFFILIATE:

EMANUEL,

Exchange, Inc.

UNDERWRITERS—BROKERS—DEALERS

progress.

legislative

American Stock Exchange

continuing
defense

research

ROOT

Recommendations
taxes

1929

Stock Exchange

Midwest Stock Exchange

action

CO.

NASSAU.

LTD.

BAHAMAS

for
REPRESENTATIVE'S

in¬
10

highway

DEETJEN

BUILDING,

and

fuels, and to raise postal

TELFX: 2 41

AVENUE

(IX

GARE,

in¬

rate

ceiling on long-term
Federal debt, this will help hold
down budget expenditures for in-

ESTABLISHED

}

•

Emanuel, Deetjen & Co
New York

al¬

amounts

recommended

$401

estimated

terest

growth.
The

million

deficits

times

rec¬

prosperous

deficits.
In

obligational authority

and

periods, we can expect an ever
larger public debt if future emer¬

gencies

New

budget
surplus
of
$4.2 billion to be applied to debt
a

offset

are

ommended for the fiscal year 1961
totals $79.4 billion.
This is $306

can

fiscal

the

For

increases

reductions in other existing
programs, including the proposed
elimination of the postal deficit.

for

expenditure of Federal
so, the slender mar¬

Even

gin of surplus

These

need.

ready

agencies to exercise strict controls

expansion of

certain other programs have been
included on a selective basis of

sion,
by

activities and

New

entire

farm price supports fixed

un¬

development
billion—Avell

at¬

increase

than $1 billion in relatively
uncontrollable
expenditures
for

of respon¬

sense

than

The

are

billion, which is

vigorously

sibility,

billion

level.

tion's

to
.

choice
in

pen¬

aid

governments

these

one-half

order

Teletype NY 1-724

controllable expenditures is
than $1 billion over 1960.

(7)

•

and

public assistance and employment
security activities. The aggregate

expenditures of $8.4
120 BROADWAY

later

over

relatively uncontrollable, par¬
ticularly $9.6 billion for interest;
$3.9 billion to help
support farm
prices and income; $3.8 billion for
sions;

UNLISTED INVESTMENT STOCKS

revenues

years will give the next adminis¬
tration and the next Congress the

The

aspects

many

are

INDUSTRIAL & RAILROAD SECURITIES

pro¬

period of years.

(6.)Substantially

Brokers and Dealers in

exercised

higher

ture,

reasonable
in the fu¬

will

periditures in a number of cate¬
gories which under present laws

and

ap¬

million

$496

1961

presents a balanced pro¬
gram which Recognizes the prior¬
ities appropriate within an aggre¬

cost

Stock Exchange

the

budget

for

propriations

Yor^ Stoc\ Exchange

and

budget

this

short,

vances

going work, this amount pro¬
vides for the initiation of 42 new
$38

for

levels

sive and

proposals it makes for legislative
action provide for significant ad¬

for

require

and American

improve

actions

needed

tiate

high-priority projects, which

Members Ntw

tax

the

restraint

rates.

If expenditures

revenues.

held

are

posing

ex¬

present cor¬

and

income

proposing

Nearly $4.2 billion

about
•

the conquest

space.

appropriations

Stocks vBonds

program

exploration and
with
development of
the
large

boosters essential
of

intensive

our

scientific
the

/>*■</ / XX /

poration

defense

require under prevail¬
ing world conditions.

with

tend for another year

Federal

the

plans to keep moving ahead
vigorously
and
systematically

ty/tirA Z/.rA f'/.re/ttt

.Recommendations

(9)

slightly higher than

level,

our

•//{em Aerl

to support the highway
program at an increased level.

of
$84
billion
I believe that the American
of $79.8 billion, {
leaving a surplus of $4.2 billion. people jiave made their wishes
This surplus should
be applied clear: - The Federal Government
(1)

Administration.

Cfi.

costs

and expenditures

National

\foc/c 2

bring with it further increases in

rising

the

proper

and

ice,

A continuance

the

users

gate of Federal expenditures that
we can soundly support.

into the future without inflation.

poses:

in the years ahead.

airways and postal serv¬

the

Federal

economy.

time, the budget is

same

test of

attests

Thursday, January 21, 1960

of economic prosperity in 1962 and
later years
can
be expected to

place

and safeguard

budget

strength

of space,

delivered
Monday, Jan. 18th, provides

Message

ance

The

debt.

this

while

This

cold war, exploration
meaningful assistance to
underdeveloped
countries,
and
real economic growth at home. It

Eisenhower's Budget

surplus.

These measures are needed

rates.

welfare..

tional

At
President

that

strength

economic strength.

tax reductions and reservoir of

national

the

maintaining

and expenditure
budget would lay the foundation for future surpluses,
principles enunciated in the

the

effort

substantial

attained

our

ence

determined

strate

contracyclical fiscal policy in an election year. The Budget

Congress

proposals in

in a forthright

surplus to debt retirement and not to tax reduction
stress

1961, I
join with

year

This will make possible a reduc¬

expenditures. Congress is admonished to apply the

1960's estimated

the

invite

United

the

the fiscal

States for

transmit¬

message,

Budget

achieve

surplus and a $1.4 billion increase in spending compared to

1961

United

this

the

next to last annual budget

the

Congress

States:

President Predicts Surpluses
President's

Chronicle

The Commercial and Financial

(276)

OFFICE:

LAUSANNE,

SWITZERLAND

TELEPHONE

<021) 22

Number 5918

Volume 191

The Commercial and Financial
Chronicle

...

small

Trailers Seen Leading—
Not Trailing in Growth

This

buy

mobile hotel rooms and—particularly for the
mobile factories for small businesses are envisioned in

ing
of

another

so-called "trailers" are enjoy¬
great growth in every state
our
country. This especially

often
to

their

about 35 feet in
sell, fully equipped, at
about $100 per foot. There are
larger ones, 40-50 feet long and
8-10 feet wide, usually with two
complete bedrooms, a studio couch
in the living
room, and ample
bathroom and kitchen. They are

(1) Be
before

can

such

Buying Property in
State

trailer

and

rent

lot

trailer with an option to
buy later on if you wish.
/

Mobile

trailer

•

.y*i

/'? "*

Factories Are

Coming

who leave

months of the

but

the

year—become very

helpful

to
one
another. They watch out for one

friendly

and

into business for themselves,
fear the competition which

big

to go

three

unoccupied

—perhaps

corporations
that

forecast

them.

could
the

give

mobile

you,

factories

only

STIEGLITZ

■

—

•

:
.

i. *.

•'

see

1886

since

the
your
or

one

the

would

units.

cost

Members IS etc York Stock
and other

mobile

similar

followed

independent

factories, etc.
Not only
set

could such a plan be
give qualified young

people

chance to

profitably

ness

but

into busi¬
themselves;

for

leading exchanges
First Nat'l Bank

14 Wall Street

Bldg.

CINCINNATI 2

NEW YORK 5

plan could be
mobile candy

the

Exchange

association

the

.......

each

the size of

upon

all

W. E. HUTTON & CO.
■

kind

Boston

Philadelphia

Baltimore

Dayton, O. Columbus, O. Lexington, Ky. Easton, Pa. Hartford, Conn.
Portland, Me.

Lewiston,Me.

Biddeford, Me.

Burlington, Vt.

10 East 44th Street, N. Y. 17, TV. Y.

Ilackensack, N. J.

mobile

factory
could
easily be moved to another city,
any

sold.

This

would

es¬

en¬

forecast

mobile

great growth

UNDERWRITERS AND DISTRIBUTORS

Sixties"

"Wonderful

the

ahead of

In fact,

these

t^at

us.

MUNICIPAL AND CORPORATE
SECURITIES
•

PLACEMENTS

PRIVATE

MEMBERS

SponsoredbyN YSE

Exchange

A etc } ork Cotton Exchange

Chicago Board of Trade

CORPORATE and MUNICIPAL SECURITIES

Evening Courses

1889

distributing

In Securities

Commodity Exchange, Inc.

Wall

Street, New York 5, New York.

•

„

buy their supplies cheaper than

■

making these
might agree to

bakeries could form

during

New York Stock

Co-operation Possible

city (depending
the city).
Then
to

Commerce

factories will nave

regional Small Busi¬

companies

mobile

American Stock Exchange

New

Program,

.Exchange,

UNDERWRITERS, BROKERS and DEALERS

in many

joyed by fixed factories.

ESTABLISHED

Stock

York

companies",
finance just

address

action
"small

pecially valuable feature not

Information

tors'

Administration office.

sell

HALLE

time

unions

concerns

the

nearest

The

Many young people—after they
have learned a trade—are anxious

any

The

help

small

National

their trailer there the whole year

park each winter,

could

Chamber

ness

for your

Details may be

op¬

two

labor

formation

contact your

buying. Do not buy from
"sight unseen." (2)

rent

For

local

the property

sell

investment

new

office

subdivision, but wait
and see what kind of people your
neighbors would be. (3) Buy raw
land only, for cash—then go to
a local bank to get help in build¬
ing a house. (4) Otherwise, buy

'' V

Those who visit the same

which

feet

with

Congressional

business

new

courses

year.

Recent

Try not to be the earliest buyers

have

Other Advantages

Many

concern

blueprint,

the

obtained by writing to the Inves¬

management-employee groups and
other: organizations arrange and

"factory"
be big enough to cause
any large corporations.

sure you see

management.

Exchange will help schools,
libraries,
professional
societies,

while the
the
product.

with.

authorized

Another

private phones, if desired. There
is
no
grass
to cut, garbage is
taken care of,
and milk is de¬
livered.

struggle

would not

buy

stay at

would

private auto.

Rules When

usually located in a
pleasant parking lot, at a charge
of about $20
per month.
Some
have adjoining cabanas with porch
may

There

fields.

also

able

I should
largest trailers
by tractors; but

under

schedule

char¬

industries,, during the

The

assistants;

would

way,

the

hauled

hauled by

are

They

are

over those who

that

anything

convenience.

furniture.

local

would

owners

"factory"

other

the

and portfolio

specific

adjoining city.

the

three

country—having

mention

northern

also

and

They

One

the

of the

some

erate

"fans"

must

air-conditioned, and
food refrigeration and every

other

and

much

advantage

friends

;

motels.

These average

have

illness

> permanent

couple could

Operate the Factory, the
Other Sell the Product

trailer

small permanent homes

length and

heated

their

that

means

investment

System,

One

Trailer
see
an

Described

case

homes.

applies to Florida and the South,
including Texas; and to California
and all the Pacific Coast. ;
■ :'
Mobile Houses

invite

serve

acteristics

live

glowing terms with regard to their future growth prospects.
The

great help

people.

bakery, a candy shop, or a
stocking
factory,; all
equipped
with
the
latest
machinery and
ready
to
operate.
They
could
bring this factory to a central
location in the city in which
they

Trailers as homes, as
future—as

factory will be

to such
young

By Roper W. Babson

(277)

Stock

York

New

The
has

reported that

Exchange

record number

CORPORATE

FINANCING

evening adult courses in securi¬
investing has been sched¬

ties and

for

uled

winter

the

New York area.

New

STREET

WALL

York 5

Sixty-nine

STREET

COMMERCE

Mitchell

HAnover 2-9050

2-5690
:

the

or more such courses

beginning this month or next

are

Newark

term

schools, libraries and

commu¬

Tax Alstyxl, Noel&Go.
.

Members:

New York Stock Exchange *'

nity centers in New York City and
environs. -This is more than dou¬

NEW

;

American Stock Exchange

YORK

ble the number of courses offered
Los

this time last year.

Angeles

Philadelphia

PRtsburgh

This is the sixth year the courses
have been offered

locally and

na¬

tionally.: More than a half-million

persons—equally divided between
women

and men—attended similar

classes throughout the

Underwriters, Distributors and Dealers
';v:v

country last

There are no charges, other
small registration fees set

year.

than

stock 6- bond

schools.
Developed by the Exchange as
part of its broad educational ef¬
fort, the courses are conducted by

by some of the evening

Corporate and Municipal Securities

members

volunteer

the

brokerage service

Ex¬

Investors' Information
in 85 cities around
country. In the New York

change's

for Banks, Brokers and Dealers

Committees
the

Members

New

York

Stock

CO.

h i r s c h

Exchange and Other Exchanges

metropolitan area, some 300 rep¬
resentatives
of
100
Exchange
Member

Firms will serve as lec¬

turers.

BROAD STREET,

NEW YORK 4, N. Y.

The

courses

Telephone:

Teletype: N.Y. 1-210

HAnover 2-0600

weekly

utes

each,

and

WASHINGTON
FORT PIERCE

BALTIMORE

NEWARK

LAKE WORTH

Newark

PALM BEACH

AMSTERDAM

Fort Pierce

provided by the Exchange.
Material covered includes types

securities, how to read the fi¬
nancial page of a newspaper, how

Service:

Washington

financial
reports, how economic indicators
to

Baltimore
Lake Worth

question periods. Literature,
and other visual aids are

films

HAVANA, CUBA

Direct Wire

Palm Beach

GENEVA

LONDON

Correspondents:

New York

MIAMI BEACH

Miami Beach

Hardy & Co.

*
j
consist of eight or

sessions of. 90 min¬
divided into lecture

nine

are

interpret corporation
useful

Govern¬
Federal Re¬

investors,

ment finance and the

Members New York Stock Exchange
Members American Stock Exchange

New York 4

30 Broad Street
Telephone DIgby 4-7800
MAIN

ST.

&
543

Teletype NY 1-733

MEETINGHOUSE
MADISON

LANE,

SOUTHAMPTON,

AVENUE, NEW YORK 22, N. Y.

I.,

26
•

•

The Commercial and Financial Chronicle

(278)
'

,
,

,•

The Case for Railroads

yet to come.

Asa Growth Industry
and

By John D. Loftis,* Marketing Director, American Car

Foundry Division, ACF Industries, Inc., New York, N. Y.

regarding the future of railroad
of progress made supporting

industry, Mr. Loftis details evidence
his contention that rails are a

of rail

freight costs by half;

course,

confidence

railroads

the

iV'

World: War

Since
of this

compile them. - Perhaps the most
revealing one is the sudden in¬

•

railroads

II,

tense

interest

the/automobile

nation have spent $15 bil¬

companies that only recently were
lion to do two basic things: (1) to saying that all but 3% of finished
improve service, and (2) to pro¬ auto deliveries had been taken

official anticipates such future potential accomplishments

reduction

as:

the railroads must
earn
by their own actions any Service has been extended in one
attention, respect and cooperation ' way or another to all 50 states,
they are to receive. And so the most of Canada, and many foreign
most impressive evidence of all ports.
Types of ladings have di¬
that better times are coming is in versified
beyond ^ all ability to
the

rail supply

growing confidence of the railroad in themselves, the
company

Confidence in

Growing

Themselves

War II with $15 billion spent, said to reflect the

made since World

Thursday, January 21, 1960

railroad

forms

all

freight loadings.
•
Participants have increased in
the past
year
to more than 50
railroads, including virtually every
Class. I railroad in the country.

thPTYW^lvPS

After citing progress

growth industry.

crease

130-year-old Iron Horse is

Rails

gloomy views held

V
the

Contradicting

■

increase from present

promises to

the

dark horse of

freight transportation.
■

The

clues

advantages

this

shippers

containerization

limits

1.;.
the manv
that take

are

far

beyond

piggybacking.

look at the list of
pluses
lower1 freight

costs,

dling

costs,

surance

the

quick

includes

lower

han¬

lower, in-transit

in¬

costs, reduction of product

damage and pilferage
during
reduction ; of
traffic

shipment,

problems such

trans-shipment

between

rail, truck and ship, and
many cases,; easing of
ware¬

house problems.

This

tempting dish to set
before shippers,
to demonstrate how much $15 bil¬ highways,
especially when
and
that they were
it is realized
that, according to a
lion is—well, it represents a stack" trying to remove the remainder.'
vide

43% to 50% in handling of gross ton-miles of all transportation;

lower

Just

off

mile

costs.

operating

study by the Wharton School of
Actually, the total volume of:
Business, approximately 60% of
piggyback freight still is very low, the consumer

the

railroads

favor

the

doubling

6%,

more,

after-tax

rail

and further

profits;

technological advances.

the

railroads
utilities

mud

stick-in-the-

reactionary,

ward,

that

some

people

out

but

add

man's

one

distillation

the

have

would

that this is not

opinion, nor one
based on seat-of-the-pants judg¬
ment of the passing scene.
It is
just

the

not

are

I hasten

here that
back¬

I should like to propose

think they
are, but rather
they are for¬

you

role

supplier to
intention

looking,
ingenious, in¬

dustrious

reflected in all

ings,

and

try to prove

Then,

And

rail-

Loftis

tion

both

the

from

other

carriers

and

the

equipment

plagued' by

troubles

and

the

economist.

of
are

most serious as¬

troubles.
of

direct

And

these

concern

government, private enterprise

known

benefits

long-range

investments.

good evidence that the golden age

earning his right to
to
reap
the

the

matter

known

—

rates while all the others

are

con¬

tinually trying to increase theirs.
But these

just words, and I

are

said I would try to prove

analyzing the
ten

them by
the past

record

years—that is, what happened

single

The

the produc¬
tion of a flatcar designed with the
hitch specifically for use in piggy¬
back

step

service.

that

going to recall is

new

to you,

but it is very possible that
have not considered the total

you

impact
them
It

of the complete

at any
takes

time.

one

new

roster

scant ten

flatcar, 10 feet longer
15,000 pounds lighter than its

and

predecessors. " Each
two 40-foot

And

other

with

year

for

highway trailers.

Jefferson Standard Life Insurance Co.

ber

Casualty Insurance Co.

and
Established

& Company

CHARLOTTE
Atlanta

NEW

Columbia^ Greenville
Direct

Wire

tank

operation.
Dieselization

cars

with

cars,

construction

the

locomotive

YORK

CHICAGO

Electronically controlled freight
yards and signaling equipment. >>
Car leasing plans for the rail¬

Miami

Raleigh

Richmond

roads.

This list

covers

categories. There
and

only the major

are

the

customer.

Inci¬

dentally, this study, made in the
1930s, is presently being updated
indications

and

that

are

figure will remain the
consumer's
held

demand

nels.

that

cases

some

between

nine, to

there

provement.

is
4

As the

many

others,

tremendous number of
finements within these
a

the

and

just cannot be

short
of

Comes

True

Most

significant of all is that at

both

railroads

and

come

freight

standard-length

broad

expand
areas

tioned.

Foreign Securities

value

sive

Specialists in

and

They add

success

industry

stories

can

it would

I
up

have

are

the

revolution

midst

that

the

Standards

National

portation

both have
this

and

had

so,

influence in

some

happy to

agree¬

the

railroad

shippers,

aggressive

selling by the railroads, or promo¬
tion by the carbuilders.
I don't
know which

came
first, but it all
to increasng demand for
specialized types of equipment.

adds

No More

Defense

Trans¬

A
is

the

car

100-Pound Bags

spectacular

example of this
hopper car.
This
along in the 1920s to

covered

came

cement.

carry

was

small

of the

haven't been worked out, the con¬

of the
was

lading and its use, of course,
More recently it has

had

has

the

been

details

for

accepted.

predicted

this

only

this

one

year

dreamer.

•

"In the railroad business

consider

demountable

one

may

containers

part of the over-all piggyback¬
ing picture. Of course, ten years
ago one

wouldn't have considered

containerization

all

since

in¬

terest in the concept simply didn't
exist then. ' Now, stimulated by
the

interest

railroads

and

research

their

limited.

been used to carry such chemicals
as
lime, sulphates, silicates and
phosphates.
However, after the
war, the closed hopper car became
a

hot

red

item.

tionally had

Shippers

moved

their

tradi¬
granu¬

lated products in 100-pound bags;

now.,they
saw
a
sealed-tight,
weather-proof hull that" could cut
-

their

packaging,
shipping
and
handling expenses drastically.

the

suppliers,

high specific gravity

this

moved

point, the food people
the picture, shipping

into

the

1891

&nc.
Associate

Members

30 Broad

Telephone
WHitehall 3-9200

Sixty'Ninth Year

1960

which

the

UNDERWRITERS

•

DEALERS

•

DISTRIBUTORS

probably

PRIMARY MARKETS

piggy¬
is

also

CONNECTICUT SECURITIES

This method of
shipping freight
miust be considered to
have corpe of age. Ten

INVESTMENT

Our

men¬

certainly

years ago

has

SECURITIES

American

said

that, "today
so fast that

growing

Co.,
piggyback

one

can

tell where it will be 10
years from
now."

Chas. W. Scranton
Members New York Stock

Go.

Exchange

More
Stock

Exchange

Street, New York 4, N. Y.
Teletype
NY 1-515

specifically, the expansion
Piggybacking is running in four
traffic, participants,

directions
area

and

NEW HAVEN

—

equipment.

be¬

cause

Although

was
strictly in the conversation
stage.
J. P. Newell, the Board
Chairman of Trailer Train

itffa/n/ic/dand

say,

builders.

car

flatcars

Association

Association.

Now—I have to start somewhere

■

equipment. Shippers and railroads

containers,
a
adopted by the

was

the most talked about.

Foreign Investments

in [ railroad

be proud.

which

can.; :

number

and it may as well be with

backing,

and

cooking it

impres¬

somewhat

that

im¬

•

piggybacking story indi¬

complete

standard-size

re¬

covered

I think

paper.

con¬

for

railroads

are

they

;

times

Categories

that

line

tempting dish for

suppliers

rapidly

room

Yes, this is
shippers, and

cates.

The

the

cargo

manufacturer

sumer—so

60%

all distribution chan¬

many

handled

their

the

same.,

prices dictates greater

economy in

by
Dream

...

All Offices

the
to; the

ultimately

This may be the result of demand

Standardization

fleet.

Exchange

or¬

ago, he would have been called

design

economies

were

the ' finished

wholesaler,

cept

economi¬

and

INCORPORATED

Member Midwest Stock

the

the previous years combined.

num¬

ladings carried.

their

R. S. Dickson

variations

Standardized

1919

the

products carried
in them.

Many

and

cars

doorstep

have

and

cally

Life &

specifically

service

the

to
and

and

•

dered by the railroads than in all

American

increase in

systems, such

built

cars

piggyback

mountable

hopper

pounds.

making places for

are

move

Covered

combined

140,000

and

cars

Clejan Car

ment

well

product

that

materials

raw

manufacturer

retailer

represents

distribution

carry

themselves in the piggyback field.

piggybacking method
of
shipping freight, including' de¬

tremendous

can

three 27-foot high¬

forwarders have

Gulf Life Insurance Co.

one

carrying

the Flexi-van and the modified

last

the

was

It is significant that in the past
new

years ago:

containers

result

ACF 85-fopt

;

products and

Cites Progress Made

trading markets in:

was

The

billion. Probably no way; trailers
of the accomplishments',, gross weight

one

This has

dollar

costs

those $15

trailers to flatcars.

become the industry standard for
such devices and more than 13,800

have been sold in this short time.

fact,' railroads

only public utility trying
approval to lower their

get

hold
*

The

We maintain active

I be¬

tractable
trailer hitch, the
first
equipment specifically designed to

ever.

as—and

being
growth industry.
As

than

methods to make a growth indus¬
A gooa many persons, because
equipment man. Perhaps this is
these
why I am so convinced that the of
problems,
regard
the try—and we have them on the
growth potential of the railroads railroads' future as a gloomy one. railroads. Please evaluate this list
of equipment and methods, mak¬
is dependent upon and is resulting I do not concur.
It seems inevi¬
from improvements in equipment table that tax, legislative and reg¬ ing history today, that were un¬
known or barely in the conversa¬
and methods, and that this in turn
ulatory reforms concerning the
tional or early development stage
is causing railroads to become at¬
railroads
are
coming.
There is
tractive

of all railroad traffic.

1.3%

pants

better job

We feel he is

and the people of this nation.

I am an

the

weight into the battle to survive
and

What with rigid

wonder!

pockets of lieve it is the trend that
equipment
private citizens who are betting is
taking that provides the more
the railroads are here to stay.
significant view of things to come.
No, the Iron Horse isn't lying It was less than three
years ago
down.
He is throwing his whole
that ACF first marketed its re¬

back¬

had wider edi¬

these

And

out

are

sortment

methods.
an

consider

automobiles, and soaring
passenger train deficits, this abso¬
lutely basic and essential industry

growth will result princi¬
pally from unbelievable improve¬

not

private

their

regulatory rules and
policies, ever-increasing competi¬

growth industry, calamity
howlers notwithstanding, and that

that

forward plan¬

and obsolete

com¬

let

No industry has

ments

our

along
find¬

torial and public attention paid to
its problems than the railroads.

by looking
ahead, I shall
try to show

prise

pass

these

ground.

this by
an
analysis of the

the

our

railroads.

the

interpretation

the

First

First I shall

roads

market

ning.

resourceful.

that

our

interpretation

our

ward

record.

all

research at ACF Industries in

one

dollars are not
of the United States Treasury,

high.

dollar bills

thousand

Last

year

loadings totaled about 415,000 cars
and
580,000 trailers, about 50%
more
than there were in
1958.
This is in contrast to
the 2% in¬

New

Danbury

{York REctor 2-9377
Bridgeport

•

Bell Teletype NH 194

New London

Waterbury

Number 5918

Volume 191

The Commercial

and Financial Chronicle

17,000 cars, and the national tank

other products.
moving in the
nOO covered hopper cars on the
ai?s today tops 220.
However, carbuilders, railroads
nH shippers are not complacent
d are constantly seeking ways
nf improving these cars and their
handling
of
ladings. Recently,
ACF
as have
others, improved
its basic covered hopper line by
offering cars with pneumatic as
well as gravity unloading equip¬

%hp

grains and
of items

car

list

have

beginning.

months

have

just

In
of

cars

the

of these

emer¬

planning stages

potential

the

railroads'

asset

cost reduction.

tion in railroad

the

creased

lieve

can

and railroads alike, of standard
quickly by one man/
outstanding accomplish-^ design cars, or production design
cars as we call them at ACF. " 5
ment is the carrying of plastics in
There has been gradual accept¬
covered hopper cars. .-The con¬
tamination allowable is only one ance of this theory, and this ac¬

come

dramatic instances
of
specialization have occurred in
the tank car field/ This is worth
mentioning despite the fact that
Other

have

tank car field

Cars

of Tank

take

has

been

story

when

World

1960:
II

War

locomotives

in di¬

the

for

diesel

car

tures.

freight

steam

every

was

locomotive

whistle

would

see

freight

diesel
on

locomo¬

certain lines

Within 10 years, 90% of
freight was moved by diesels.

freight.

Electronics

Take

per

and

primarily the chemical
an' all-time high of

the

must do

Con¬
other

advancements manufac¬
have on their draw¬

turers already

in mind

ACF

have

believe

Branch lines and
terminals, and the railroads' need
for them,1 have become obsolete
and unprofitable, running up costs
needlessly; J Branch and distribu¬
tion operations have become the

be.

railroads

during

with which I have
contact

was

wave—the

new

the

ACF

Industries Plan for leasing cars to
railroads. The advantages of this

see

and terminals, I believe, and since

all

these costs account for twice the
will

if 'we

have at-

precom-

^g SO: that vwe can maintain our
position as a leading supplier to
the

shall

trucks.' We

the

companies,^main-line costs, many reductions

believe is

role

with

estimate and

for what

pare

gradual abandonment of such lines

that

any.Therefore,
to

„

operation only.

don't plan for the future we won't

tempted

However, this is true of main-line

eco¬

must

must be

manufacturing

bearing

that the railroads' great,

hard earned,

advances

J This isn't just blind instinct
part. As

transportation

comforting est .asset is the low cost of their
thought that terminal-to-terminal operations.

were

earn further recoggrowth industry. '
*

Rail freight

(1)

it for ourselves.

the

coming

result.

Railroads

will

cease

to be terminal-to-terminal opera-

instead will really con-

tors and

tribute low cost transportation between load centers.

(2) Railroads will handle 50%
0f gross ton miles of all transpor-

tation...r'

they
are ' handling
43%; To reach 50% will mean a
tremendous increase
(actually a
Currently

Lists Advances Yet to

From

the

results

Come

this

re¬

especially-since we
ton miles lost
inevitable
or
highly
possible. •by the elimination of branch lines.
Some of these are more imminent However, as I have suggested, this

search, I have compiled
list

than

advances

that

own

think

are

others,' and there may be
spectacular ones around the

gain),

;16%

•shall

see

some gross

to the

costs

reduce

will

point

where the railroads will be in a
corner that
cannot now be fore- more
competitive position and
plan have been widely published, seen. But, extending my neck as they, therefore, will replace this
-but all I want to stress here is I have
promised to do, here is loss of gross ton miles by reduced
that it and other plans available the list of
potential accomplish- _;COsts and more effective use of
are
tools which enable railroads ments that I think will enable the
Continued on page 28
maintain

current

•and

equipment to
transportation

basis

economical

meet
on

efficient

cost.

Five years of creative

planning
study, based on our back¬
ground knowledge of the car leas¬
ing business, went into the ACF
Plan.
At ACF's annual meeting
last year our president said he
considered the plan to be in the
same category as the development
and successful launching of a new
product.
and

We maintain

to list it among

ill

§i
I

vibrant and profitable rail¬

road industry.

Dynacolor (Corp.

That concludes my reference to
the

Copeland Refrigeration

the other positive
are adding

that I believe

factors
up

primary trading markets in

Laboratory for Electronics

My purpose in mentioning it is

factor.

trade, is at

first ,of this

Over

The
electronically
controlled
It
was ingenuity
and effective for¬ freight yard also was unknown
ward planning that saved the day only a few years ago. Today there
here and provided all hands with are many, but even this ultra¬
lucrative new sources of business. modern approach to the orderly
Our own Shippers' Car Line lease shipment of freight may be out¬
by piggyback techniques,
fleet serving exclusively the ship¬ dated

transportation

one

closest

■demands

1943, others were mapping
to defeat the diesel. Even in
this
negative atmosphere, rail¬
roaders moved ahead, and in 1944
diesel locomotives were moving
all

The

the

had

diesel

ways

end

use

—in

tank

the

sound effects record.

tives haul

doubly interesting be¬
cause
ocean
tankers,
pipelines
and highway tank
trucks could
the

never

major

the
and

shows that the opportunities were
few and the response spotty.

Yet, back in 1942 some people
were
quoted as saying that they

alloys, linings and design
improvements all have gone into
this vast field day of diversifica¬

doomed

power.

metal

have

old

iar

carrying an

petroleum, petro-chemical, chem¬
ical and food products,
liquids,
semi-solids and compressed gases.
Our own last count was in excess
of 700 varieties of ladings.
New

Plan

wonderful, still-un¬

future

other*

the Equita-r

followed i by

Mutual

manner

nomic miracles

individual plans that enabled the
to
lease cars.
History

ton of
hauled by
Today about the
can hear the famil¬

almost

later

years

only place you

This

Plan,

came

This prediction is made

ago.

years

railroads

practically unknown. Only 10

days tank cars .were devoted al¬
most exclusively to the petroleum

tion.

ble

hauling

freight that moved

•

Plans

benefit of manufac¬

of
ladings
sinc^
World War II. ^Whereas in those

variety

car

Leasing

the

dreamed-of things will happen to
the railroads.
Why not? It hap¬

Car

necticut

years?

even

The job won't be done for us;

About that time

order, and he is able to

believe

versification

trade, they now are
almost
uncountable

include

be¬

the

doesn't

ten
then

just

be¬

stop his lines and retool

the full

railroads.

costs will be reduced by half.

dreamed

even

re^

Until about 10 years ago this was
not- the case with the railroads.

apparent.

the

believe that many

healthy, active and profit¬
not

railroads

eco-

pened that way in the past.
:
But those technological and

course there is nothing new
leasing cars to .industry.

about

opportunity to re¬

costs

However, in the past year, this
turing and purchasing economies. log jam was broken by the emer¬
Now here is a fact that is hard gence of new plans with new fea¬

was

There

for each

province

Diversification

his

duce

give.:< the

designs

carbuilder the

is more within
of the carbuilders
than
of
railroads
themselves,
since tank cars, / of course,
are
leased to or owned by industry
rather than by the railroads/
the

the

and

Standardized

■

New

One

accelerating as
all concerned

power

leasing
plans in the latter category.

desirability, to carbuilders

large a part
equipment in the

»changed

and

nition

though non-scientific

earlier, improved

methods play

build¬

surgence

ceptance

20,

tools and equipment for that work,
r As mentioned

improved

advantages

has

development

ing, and I have mentioned only a
few of many, has led to the in¬

is equiv¬
of pencil

scheme of rail¬

with

easily and

part in 10 million—that
alent to one small piece
lead in a boxcar.
*

With

all

The whole

maintenance

political

moves were

What

way

greatest

car

able

con¬

ened.

are

specializa¬

freight

cost

climate?

It is hard to

ac¬

techniques,
communications have improved as
the pace of railroads has quick¬

all of this

course

trols have proceeded
apace.
the adoption of new

transportation

—

Modernization

counting procedures and

30,000-gallon capacity, all

aimed

conditions

monplace.

few

the

signaling

nomic

our own King-Size tank
others carrying upwards
thousand gallons economi¬

cally.

These "Ship-O-Matic" cars,
designed for the movement of
dry granular or powdered chem¬
icals and food products, eliminate
hang-ups and
can be unloaded

past

the

seen

Electronic

devices and
systems, unknown not
too many years
ago, now are com¬

the

and

car

ment

only

gence

seen

boards.

ing

population is 168,775. *

Again

recent

past of the railroads.
Who is to say that the list wouldn't
have been even longeivSor further
under

advanced

Burn.lv

Corp.

favorable

Lazard Fund

We Make Markets in Over

the Counter Securities

Banks, Brokers & Dealers

Private Wires

to:

Silcox and Johnson

Charleston

Wyllie and Thornhill

Charlottesville
~~

Denver
Detroit--.

OPeSQ

Grand Rapids
Hartford

T"\

Dependability

Telephone WHitehall 3-7600
Corporate Teletype: NY 1-865 • Municipal Teletype: NY 1-1691

>'
We have direct wires to the

Ci»b(moZ.-:To.$£*cl:
Los

Angeles

Louisville

Nationwide Coverage

King and Company

Cohurn & Middlebrook, Inc.

Houston--Underwood, Neuhaus & Co., Inc.

Martinsville

Albany

Woolrych, Currier & Carlsen

Spartanburg---A. M. Law & Company, Inc.

Beverly Hills

Farmington,N. M.
jtvx-xv

l$i

Denver
El Paso.

Durham

Fayetteville, Ark.

Beloit

Charlottesville

Dallas

Cleveland

Grand Rapids

Fullerton

Baltimore

Burlington

Detroit

Des Moines

following cities:

Asheville

Boston

Cincinnati

Chicago

-—John W. Yeaman

A. Riecke & Co., Inc.
Pittsburgh.
-Arthurs, Lestrange & Co.
Portland (Ore.)--Zilka, Smither & Co., Inc.
St. Louis
i
Fusz-Schmelzle & Co., Inc.
San Francisco
Walter C. Gorey Co.
Seattle
Zilka, Smither & Co., Inc.

Albuquerque

Berwyn T. Moore & Co., Inc.

Philadelphia

American Stock Exchange

Exchange

__Lowell, Murphy & Co., Inc.
Baker, Simonds & Co., Inc.

Kansas City (Mo.)

New York Stock

Dallas Union Securities Company

Dallas

Members

Wm. H. Tegtmeyer & Co.
J. N. Russell & Co., Inc.

Chicago
Cleveland

Fayetteville, N. C.

Greenwood, S. C.

Harrisburg

I
*

Huntington, W. Va.

Houston

Jackson, Miss.

Indianapolis

xvxv:>

pis $r

Joplin

Kansas City

Montgomery

Los Angeles

Nashville

Malone

New Orleans

Minneapolis
Philadelphia

Pittsburgh

Troster, Singer
Members: Neiv York

fc Co.

Security Dealers Association

Trinity Place, New

St. Louis

San Antonio
'

Telephone IIAnover 2-2400

San Francisco

Spartanburg

Salt Lake City

Santa Ana

Toronto

York 6, N. Y.
Victoria, Tex.

Rock Island

Potsdam

St. Paul

Santa Fe
MM

Seattle

Portland, Ore.

Rome, N. Y.

Teletype NY 1-376; 377; 378
wmmm

Washington

Tulsa

Whittier

Utica

Wichita

The Commercial and Financial Chronicle

(280)

utilization

car

The Case for Railroads

As
Continued

from

substituting wheels
pipelines.

page

I do not think it

physical plant.

This

is unrealistic to forecast that rail¬

will

roads

handle

50%,

know

constantly increasing inter¬
city transportation demands.

them,

ton miles.

Pipeline
employed
in

methods

load

centers.

will
of

make

This

transportation

possi¬

railroad

line

freight

themselves.

This

(6)

Today

they

permittting

run

equipment

will

conventional

travels

car

by developing load-center
transportation tech¬
niques, thereby creating high vol¬
situations

Rail

wear

out, averaging 10 to 15 years' life.

will do

half hours

total

freight

basic flatcar will

products that have

collected at

out

will

have

upon

day, and in in¬
making 450 miles

cars
are

similarly,

un¬

called

not

jobs for which they
designed. By the way,
important by-product of greater

will

this

"railroads

the

are

equipment to replace rolling stock
has

been

for freight

Offer

Hardy

Co.,

Broad

railroads

cars.

York

far

first

question might be,
really believe all of this,
Loftis?"
My answer is an un¬
qualified "yes."
It

has

speak
in

been

engineering classes
of our leading universi¬

many

The

privilege

before

ties. My theme

always is the

same.

railroads

today
offer
the
challenge of industry to
young
people.
There are more
opportunities right now than there
greatest

been

first

Stock

present
adults

Investment for

Income.

and

The

For

the

AND STOCKS

including

UTILITY—RAILROAD—INDUSTRIAL

will

Greenfield

Investment

teenth

Street.

the

Co.,
He

since

1870's

the

the railroads

phase

—

With

(Special to The Financial Chronicle)

Salle

the New York Stock Exchange by
G. Edward Slezak, The Milwaukee

with

the

corporation.

company,

Officers

which

also

are

President;

Joseph
Harold

Stansbury

Struck,

Assistant

has

Market
New

Stansbury

—

Charles B.
connected

members

Stock

Exchange.
formerly

creation

I have given this

with

With Creston Funk
SAN

ANTONIO, Texas — W. T.
"Tug" Sanders has joined the firm
of Creston H.

Funk, Hobbs & Co.,

National Bank of Commerce Build¬

ing,

effective Jan. 1, 1960 as a
registered representative. Mr. San¬
nation and

will

specialize

in the

origi¬

distribution of munci-

pal bonds.

;\;'.V;y>

and
same

the

last

Japanese Securities

ten

revolution;

ten will

revelation.

railroads,

have produced

address

by Mr.

Loftis

Transportation
Research
York City, Jan. 5. 1960.

before

Forum,

YAMAICHI SECURITIES COMPANY

the

New

of NEW

Philadelphia Bond

Service Firms

W ith Retail Distribution

YORK, INC.

Brokers and Investment Bankers

Club Elects

Your Inquiries Solicited

PHILADELPHIA,

F.
120

FOX

Pa.'—

Lloyd of Drexel & Co.

CO., INC.

BROADWAY, NEW

Telephone

YORK 5, N. Y.
Teletypes

NY 1-944

The

was

Bond

Morris
elected

Club

1-945

;

TOKYO,

Philadelphia at the annual meet¬
ing and election of the Club held

ceeds

Bertram

Wilde

Affiliate of

YAMAICHI SECURITIES CO., LTD.

Thursday evening, Jan. 14 at the
Hotel
Barclay. Mr. Morris suc¬

—

REctor 2-7760

President

111

JAPAN

BROADWAY, NEW YORK 6

COrtlandt 7-5680

Jan-

Dulles & Battles, Inc., whose
expired.
Other
officers
elected
were:
Willard S. Boothby, Jr. of East¬
ney,

term

■at

man
Dillon, Union Securities &
Co., Vice-President; Spencer D.
Wright, III, of Wright, Wood &

JAPAN

ORIGINATORS

Co., Treasurer and Edgar J. Loftus
of

INVESTMENT
Perhaps
even

you

cant

if you can,

That

sshere

read

OPPORTUNITIES

Japanese,

great many

you're away from the
we

in.

come

can

the

scene

and

securities,

information.
on

particular

com¬

special studies tailored

your

ask, there's

telephone,

charge

obligation, and

Hutton &

following

NEW JERSEY MUNICIPAL

Boston

terms;

Corporation for three year
Robert E. Daffron, Jr. of
&

Co.,

term and

Bertram

one

for

two

and

term.

year

M. Wilde for

With A. C.

are

year

AUTHORITY REVENUE

OBLIGATIONS

Allyn

has

become

E. Holm-

associated

with

A. C.

Allyn & Company, Incorpo¬
rated, Gas-Electric Building.

Boland, Sa££!n,

and Investment Bankers

Broadway, New

(Special to The Financial
Chronicle)

write:

Nomura Securities
Co., Ltd.
Telephone:

elected

First

beck

UNDERWRITERS

DISTRIBUTORS

Co., Secretary.

were

ROCKFORD, 111.—John

Brokerf, Dealers

the Board of Governors: Cornelius
A. Dorsey, of
White, Weld & Co.
and Phillips B. Street of The

Harrison
on

needs.

Feel free
as

want

help with information

general economy of Japan, information
panies, information on
your

people can't; and

W. E.
The

•

York 6, N. Y.

BOwling Green

9-0186

With J. Clayton Flax
(Special to The Financial
Chronicle)

Gordon & Sautter
-

SPRINGFIELD, Mass.—Joseph A*
Tangrady

has become connected
with J. Clayton Flax &
Co., 1562

Main St.

Established

1920

35 WALL STREET, NEW YORK
5, N. Y.
i

•

Bell

the

Mr.

and

were

and

Brothers, 425 West

& Co.

and Marvin Neumann

Wouters, Assistant Treasurer.

Co.

Savings Bank.

was

Good body

ders

formerly

become

Street,

York

Secretary; Thomas L.
Mosher, Assistant Vice-President;
and Russell

with Almstedt

retary;
Mr.
Slezak,
Executive
Vice-President; Earl C. Barton,

George

Trust

LOUISVILLE, Ky.

Johnson,

Executive Vice-President and Sec¬

Secretary;

was

Bros.:

(Special to The Financial Chronicle)

Frank e,

F.*Baumann, Harry P. Leadingham, Edward G. Ricker, Jr.,
Robert
G.
Stenger, Clarence L.
Finger, Carl G. Hausman, Fred M.
Distelhorst, Karl W. Backus, Ad¬
dison Haugan, William G. Martin,
Earl Pryor, Vice-Presidents; Van
L. Call, Treasurer and Assistant

Almstedt Bros. Add

member of the Midwest Stock Ex¬

change,

St.

Lamson

Harris

Company,
207
East
Michigan
Street, will become an Exchange
member

Seven¬

CHICAGO, 111.—Walter M. Camp¬
bell is now with Brown Brothers
Harriman
&
Co., 135 South La

the

membership

621

was

formerly
National; Bank.

First

With Brown Bros. Firm

Be NYSE Member
Wis.

bnam

associated with J. K. Mul¬

now

len

lecturer.

Mullen^

DENVER, Colo.—Louis W.

Milwaukee Co. to

Bank

(Special to The Financial Chronicle)

with

MILWAUKEE,
acquisition of

National

Joins J. K.

the Willkie Memorial Building, 20
West 40th Street, New York City.
C.

with

now

First

Security

course

FOREIGN ISSUES
Particularly Adapted

Co.,
Building.

given Thursday evenings from 8
to 9:30 p.m., starting Feb. 4th at

Samuel

are

Huey

Exchange, will
informal course for

except for this thought:

years

are

Weissman

City, members of the

York

John

just about

"Do you

—

concludes my case for the
railroads' as
a
growth industry,

DEALER SERVICE

DENVER, Colo.
Robert f
Barbey, * Edward
D.
Erickson
Tully W. Waner and Louis b!

Street,

New

Huey >

Chronicle)

This

-i

OF BONDS

(Special to The Financial

Investment Course

advice to my son in advising him
to consider a railroad career.

COMPREHENSIVE INVESTMENT
AND

prices

dare to go at this time.

expansion.

will

out

worn

reduce

And that is

their

PUBLIC

why

reasons

1880's when

ALL CLASSES

will

railroads

but the greatest of all is
price. Planned regular buying of
production
designed
railway

have

Established 1928
We

final

regularize their equipment

The

much

equipment and
satisfactory condition

were

operate

that

—

beneficial

pay

cases

I believe the

using points.

leads

buying pattern.

Now

distrib¬

are

tend to

Cars

miles.

service

solete

they

and

this

prediction

that

inating the situation whereby ob¬

one

spread

AJU

much

day. The trend toward greater
utilization will
increase, causing
equipment to wear out and elim¬

load center to the
center
where

then

customers.

average

;

costly than

greater varieties i to
meet specialized demands of their

I want

dividual

been

distribution

carry a

for

greater utilization, averaging per¬

example, product pipelines
through large "slugs" of in¬

railroads

increase.

instance,

be able

haps 200 miles

frequently

For

uted to

For

day for

per

dividual

the

average of two and

daily

piggyback

where volume opportunities make
it efficient to do so.

send

many,

to load-center

trains

eties of containing structures will

mands

entails

production

will

ume

vari¬

and

types

containing structure this will
more
efficient usage of
equipment dollars while still per¬
mitting the railroads to fill de¬

improved handling
equipment, whereby a filled con¬
tainer coming off the
end of a

counteract
this
by
fighting fire with fire—that is by
adopting pipeline-like operational
methods

but

permit

may
be lifted,
loaded, moved, sorted, lifted again,
transportation.
etc.,
all
automatically,
to
the
We are facing the
probability break-bulk point of its trip where
that much bulk
product business the contents of the container are
will go to the pipelines. The rail¬ distributed.

roads

production,

Thursday, January 21, 1960

Four With L. A.

;

the

pipeline-like

ble.

will

that

methods

better, I believe.

(4)

(5) Automation will be the fac¬

Lower costs

railroads—to the level of
or

(7) Basic forms of rolling stock
be
used,
permitting mass

will

ing structure is

tor

savings to the shipper, but
they also, mean added profits to

profits,

cen¬

Hardy & Co;

New

stock.

variety of con¬
taining structures. Since the roll¬

answered in the pre¬

was

mean

the

operation and
total capital required for equip¬
ment. More frequent renewal will
keep the fleet abreast of techno¬
logical advancements in rolling

ing pattern

expansion be¬

ceding predictions about costs and
gross and

load

many

costs

the railroads to follow the chang¬

needs little

cause

but

reduce

This less permanent type of plant
will permit greater flexibility for

levels.

This

will

assembly and dispatch
of railway and highway vehicles.

than double their pres*

there

ters for the

(3) Railroad profits, after taxes,
will

that

means

rails for

and

few rail freight yards as we now

more,

of the

ent

Growth Industry

fleets.

smaller

This in turn will enable railroads

System Teletype-NY

WHITEHALL 3-3414
1-535

Number 5918

Volume 191

The Commercial

and Financial Chronicle

(281)

ports would fall—and

Foreign Trade Prospects

country

our

would lose.

Second,
continue,
and

diet

labor

disorders

could

disrupting
production
ability of American pro¬

the

ducers to maintain the "exposure"

of Commerce, W ashington,

Affairs, U. S. Department

foreign commerce direction.

billion

I). C.

victorious

from
prolonged work
stoppages, management or labor,

of a key position permits Mr. Kearns to give a candid
unfavorable and promising developments bound to affect

Occupancy
review of
our

necessary for keeping world mar¬
kets.
No
matter
who
emerges

Henry Kearns,* Assistant Secretary for International

/;f Hon.

increase in

He concludes

our

exports

under

year

which

said

are

illustrate

the

view

expressed

that

times. Pundits already have
dubbed it as the beginning of the

our

•Soaring 60's

that

tifiable.

It might be,

Looks

will

deter¬

the

for

mine

years

the difference
between

whether
as

sizzle

Unfavorable

'(and

Henry Kearns

our

extremely

that

the

severity

international balance of pay-

problem

placing

should

stringent

eased

controls

economic
economic

freedom, or a forced, ultra-high
growth resulting in a loss

ply lines, thereby reducing the
availability of raw materials so

achieve

such

are

peace

how to
through

and

war;

lasting

questions

peace,

honorable negotiation, or peace at

price? — sustained
growth resulting from

any

rate of

economic

freedom

and

cor-

responding

rise

and who

to, and how will he,

inflation?

guide

least

our
national
destiny,
through the first half
the coming decade?

Truly, I960 promises to be
of

our'

Some

most

say

interesting

one

years,

entering

are

the

"Decade of
I

Decision," but history,
think, will record that most of

the

crucial

decisions

this year.

The
will

over

the

years

chart

commerce

with

nations.

the

for

necessary

other

probably

attributed

the

expansion

inflationary spiral which would
increase prices, reduce foreign
confidence in the dollar, raise
havoc with our exports — and
again the country would lose.
Sixth—there are other events
many other events, which could
transpire, all, or one or more of
which, would lead to a reduction

low

suit

ducP the

reciprocation

Should

level of

thus

our

imports

or
reour

level ot our imports,^our

*oreign. supplieis

as
or

die'

may never

suffei

would

cut

funds

necessarily

would
Ex-

purchases of our goods.

and

key contributing factor to eco¬
stability.
then

with

what

concerned

are

the "future

the abnormal

1958."This

certainly

tially better
Why Trade
In

the

Outlook is Promising

absence

such

1960 is

ers

adverse

after

States

after

rising in
spring of 1959 and continued
good level through the sum¬
mer months.
In the third quarter,
adjusted
for
seasonal
variation
and
exclusive
of ' military - aid
shipments, exports reached an an¬
nual rate of well over $17 billion.
was

13%

some

above

the recent low in the first quarter
of

1959,

1958

and

exceed

annual total of $16.3

7% the
billion.

The expansionary trend appears
to

have

been

interrupted

of economic

ex¬

and hence of demands

ports responded to the upsurge in
economic activity after an inter¬

rate

—

to Canada and Japan, then a little
later to Western Europe, our ex¬

the

This

forecast¬

for U. S. materials and equipment
—in foreign industrial areas. First

two,year decline, began
at

some

main, U. S. export gains

early 1959 stemmed from the

pansion

This is

exports,

is substan¬
$15 billion

year ago.

renewed strength

why:
United

In the

highly promising."

the

than

level predicted by

I have described, if we
gain further understanding of the
good7 which
foreign
trade
can
bring to the Unitedv.States, the
Department's forecast has a ten¬
able quality: "The outlook for ex¬
pansion of U. S. foreign trade in

events

pre¬

year, our

export total for 1959 probably will
equal the $16.3 billion recorded in

for

conditions

vailing at the end of the

rightly

holds

export position.

our

during

the

recently
concluded
fourth
quarter, however, as the effects
of the steel strike began to show

lude of comparative slack in the
wake
of
the
1956-57
boom
in
world

industrial

trade.

ized countries
also

production

Asia

and

began during 1959 to
general improvement

the

and

Sales to the less industrial¬
Africa

reflect

the

world

commodity demand, while
only those to Latin America con¬
tinued to lag seriously.
It is probable that further ex¬
pansion of output and incomes in
the free world's industrial centers

will prevail during 1960, and that
this will progressively bolster the

earnings

international

and

Continued

pur-

page

Canadian
Investment Securities

E. Ames & Co.

The country would lose, because
Peter Drucker put it, '"Export

Limited

be our slogan.

AND DISTRIBUTORS

UNDERWRITERS

A. E. Ames & Co.

Members Toronto and Montreal Stock Exchanges

ENGLAND

CITIES IN CANADA AND

OFFICES IN 14

A. E. Ames & Co.

to the elementary ABC's of interIncorporated

national economics, we must ex-

P°rt to earn the exchanSe necesgary tQ pay fQr thege essential
jmports.

*a^in& incomes and without sufficient

of exports — and of course the
country would lose.

our industry. You simply cannot but 'export or decline' is a proper
Pick and choose in a world trade one already."
policy. History indicates clearly
Very basically, our gradually
that once one industry gains some depleting natural resources, plus
sort of protection, it becomes increased industrial consumption,
nearly impossible to withstand point to an early time at which
the clamor of other industries for this country will require vastly
protection. And once one country larger amounts of imported mateembarks upon a protectionist pol- rials if we are to remain a major
icy, other countries quickly fol- industrial power. And, according
retaliation.

economic

measurably

course

our

made

our

the

future

for

were

influenced

this year

other

; :

pattern

growth

could be forced again into

imports. There already are signs
of moves in that direction. This
then would have a serious effect
on our export trade.
A protectionist trend will most certainly
jeopardize world commodity sup-

traders

optimis-

election-year Congress

decide

ments

fizzle.

Before

offered

bromide, "we're pricing ourselves

number of events.

could

nation

First,

soar

sink,

and

could

credits

/Qut of the market"),
exports
tic because the course of our for- would fall — and
the country
eign commerce during the cur- would lose.
rent
year
cou'd be influenced t' Fifth, by a series of "budgetunfavorably by any one or more busting" actions of the Congress,

alone

months

Influences
It

by refusing them the money
and credit they need to compete
favorably with the terms and

ers

countries. V Orders would be lost

First

however, in

„

tions during
-the'

preoccu¬

existing foreign markets and the
winning of new ones.C Such pre-

sense, very pessimistic; or, in
another sense, extremely optimistic.
'
-

providing

good,

nomic

ac-

our

too

essential to the maintenance of

one

"Siz¬
zling 60's."
Yet, I venture
to
predict
the

economy,
American

Voccupation clearly would lead to
The outlook for expansion of falling markets—and the r counU. S. foreign . trade in 1960 is try would lose,
highly promising. Under normal > Fourth, our private financial
circumstances this forecast is jus- community could fail our export1

Nineteen-sixty promises to be one
of the most interesting years of

will

that

banner

pied with local markets to wage
the7 "total marketing" campaigns

unlimited

positive Government action taken.
t

for

force

Exports

jobs, wages, profits, and interna¬
tional understanding. Exports are.

virtually

are

domestic

our

are

in reduced shipments of certain
important types of products,„,parr
ticularly machinery and vehicles.
Nevertheless, even with the slow
start at the beginning of the year,

sustained

drasti¬

country would lose.

could

producers

opportunities are available if earned, and he outlines examples of
\

and

in the direction of self-defeating protection. The
official reviews representative countries he recently visited

commerce

for

year

however,

—not,

our

fallen

agreed that I960 will be

must make

have

Third, economists

normal

"aH-out national export drive" involving Government cooperation

will

cally—and

we can expect a $1.5

this

But to set a record high, he adds,

circumstances.

exports

can be likened to a
of healthful foods,

They

saTy

are

exports are not only necesfor the United States, exports
good for the United States.

1960

1930

Boston

New York

;

BUSINESS ESTABLISHED 1889

Over Half

Century

of Investment
With

over

ments,

50 years

organization is well prepared to

our

investors interested in

TRADING MARKETS

ices

are

Experience

of experience in Canadian invest-

Canadian securities. Our

readily available

investing

serve
serv¬

institutions,

banks and dealers.
Direct private

in
♦

-V

fourteen

and

UNLISTED SECURITIES

accurate

able

stock

wire connections with affiliated offices

Canadian

principal

cities

provide fast

service in Canadian securities, and en¬

execute

exchanges,

orders promptly

all Canadian

prices in United States

net

funds if desired.

Wood, Gundy & Co., Inc.
40

Wall

SrecTveaudCompaTW^
Members New York

Security Dealers

Street, Neiu York 5, N. Y.
Telephone Dlgby 4-0633
Affiliated with

Association

Wood, Gundy & Company
Members
The

37 Wall

Street, New York 5,

Toronto

N. Y.

Stock

Exchange

Canadian

Exchange

Stock

Montreal

Stock Exchange
and

Telephone

Teletype

Wood, Gundy & Company

IIAnover 24850

NY 1-1126 & 1127

Limited
Head

Direct private wires to Los

Angeles, California; Denver,

Colorado; Dallas, Texas

Office—36 King St., West, Toronto I, Canada
■'

•

j..

Branches in the

„.

•

principal cities of Canada and in London, England

The Commercial and Financial Chronicle

(282)

although

ucts offers very

Without Protectionism
of
many
other
countries supplying industrial ma¬
terials for the expansion.
If so,
once the remaining effects of steel
shortages upon our ability to de¬
liver are overcome, the basic up¬
swing in our exports which began
in the spring of 1959 should be
strongly extended and broadened.
chasing

power

Too, the marked gains in United
States exports

in the third quarter

occurred

when

time

shipments in several leading cate¬
gories, including cotton, steel, and
aircraft,
were
still
abnormally
low. Shipments of cotton are ex¬
pected to rise in I960 because of
a
recent change in the govern¬
ment's pricing policies, steel be¬
cause

delivery.
Moreover, because of
the drought in Europe this past
,

shipments

summer,

this

feed

also
<

;

basis, then the outlook
promising.
But in
a

highly

I say, this might in itself

sense, as

expected to rise.

On
is

pessimistic.

spectacular

rise,

nation

are

have

can

IF—IF

"total
seas,

Creating

all-out

Normal

Than

statement.

substitute

for

customers"

the

market

to
ap¬

For this
reason the Secretary of Commerce
agreed that an on-the-spot exam¬
world

should

tions

between

sequence—

made.

Sept.

could expand

more,

the

freest

country

trading

So here is

earning

vast

amounts of

foreign exchange, with
good will towards American prod¬

and

Dec. 20 of the year

just concluded ucts and
increasing opportunities
impor¬ for sales.
trading
In
Chile the recent improve¬
capitals in an intensive official
ment in copper prices and copper
tour.
Every continent, 20 coun¬
demand has improved the foreign
tries and 120 days at hard labor,
produced an overall impression exchange position very materially,
and, as foreign exchange becomes
that should be helpful in assessing
our opportunities and problems. V
available, Chile becomes a poten¬
To illustrate the problems and tially greater customer for Ameri¬

—I undertook to cover the
and

tant

representative

would like to review

products. This potential ranges
all the way from
heavy industrial

equipment to
as

opportunities

year

dollars

Representative

world
trade, I
a few of the

Austria the economy is one
stability and growth; their cur¬
rency is readily exchangeable in

all-out national

world

which

consumer

govern¬

Visited

half

Countries

drive,

can

items such

consumer

markets,

and

goods

markets

for

increasing

are

aid

our

programs.

production

machine,
motor, generator, tractor
vending machine shipped/ to

electric
or

Viet Nam under the
in

effect

becomes

future

aid

ambassador

program

sales.

opinion there is also great oppor¬
tunity to increase the potential

crafts.

;

Malaya the economy is sound

and

one

that

offers

very

come

through its sale of rubber,
tin, and tropical products. At the
same time, it is
becoming an in¬
creasingly active market for auto¬
mobiles, trucks and the full range

consumer

orientation

United

goods. In the past the
has

distribution
hands
who

of
are

sales.

Peru the recent International

Fair

was

tremendous

success.

More than 650,000 people paid ad¬
see the products of the

mission to
world.

been

the

British

are

the
the

people

British

examples,

American

industries

made

the

products

would

the

somq

that

market

of
in

are

sympathetic

however,
have

most

facilities

There

their

towards

Kingdom and

with

effort to sell

the

Malayan

outstanding

estimate

that

success.

American

sell

can

between

$50 and $100 million worth of

con¬

sumer

ally

products in Malaya annu¬
if their distribution efforts

merit such sales.

months

and

thereby

becomes

years
the Bhat has been
freely exchangeable in the world
money
markets.. The individual

Thais

lion

Thailand

people

sound fiscal

there

who

are

benefit

history.

found,

American

products.

example,

Thai

through the economic system for
American radios, refrigerators
and
nylon hose.

Many other examples
exchange
opportunities
are

available

the

who

person

India

perhaps offers the greatest

contrast

world

markets.

this

Specialize

West

Coast

South

people, currently
with
an
exceptionally low per
capita income, who just recently
achieved

their

independence,

mil¬

from

For the past

the

millions

such

from

the partition with

insufficient

primitive
and many

this

refugees

Pakistan,
production, a

food

transportation

impediments

of historical and

Yet,

country

system,

as a result

religious beliefs.
has substantial

basis for

vastly increased produc¬
tion, in steel, jute, tea,
manganese,
mica, wood products, and a host of
beautiful, exotic and unique han¬
dicrafts. India is desperately look¬
ing for markets for its products
and

is struggling to standardize
quality of products, and to im¬
prove deliveries and methods of

the

merchandising
world.

country

needs

the

;

the

same

modern
time

practically

thing from extra rice to keep rpilalive, to a few more yards

lions
of

fabrics

the

ward

summer

and

off

the

has

had

the

making close and sizeable position

markets in

wide

sale

tropical
it is

and

are

variety of unlisted

our own

bananas

fruit.

frigerators,

and

the

for

transportation equipment and
productive machinery of all types,
and

down the

whole list of

distribution.

(Established 1932)

time
re¬

generators,

transportation

Japan, in my opinion, offers the
greatest potential in the world for
the expansion of
American ex¬

retail

Saunders, Stiver & Co.

other

same

heaters,

all

types
equipment.

always interested in

purchasing blocks for

its

excellent customer for

and

issues

ports.

This country is prosperous,
dynamic, and of growing industrial

Underwriters and Dealers in

Municipal and Corporate Securities

importance.

Japanese
products
being sold in the world mar¬

are

kets

SCHERCK, RICHTER COMPANY
MEMBER MIDW EST STOCK
EXCHANGE
320 N. FOURTH ST.

ever

increasing amounts,

earning foreign exchange that

One Terminal Tower

Cleveland 13, Ohio

PRospect 1-4500

CV 283

can

become available for the
purchase
of many items that the

Japanese
economy and the Japanese people

ST. LOUIS 2, MO.

need

and

that

desire;
will

seems

MEMBER

MIDWEST

STOCK

EXCHANGE

wise

to import
Japan some textiles, some
plywood, some cameras, and some

from

electronic devices, so that
we, in
return, sell automobiles, business

machines, cotton, coal, and
of

Newhard, Cook

other products to
be the pattern

Co.

trade.
in

Members

Underwriters and

New York Stock

Distributors

Exchange
Listed and

American Stock

Unlisted Securities

Exchange
(Associate>

Municipal Bonds

Midwest Stock

over

will

the

FOURTH AND

removed

and

both

the

Clayton, Missouri
East St.

of American products

difficult.

There is

million

potential
but

Wire

Clark, Dodge

our

for

trader

his

increasingly
offer

difficult

prod¬

who

products
be

In Viet Nam it is in

Co.,

New

York

assist

this

desires

the

prepared
problems

our

to
of

national

country

its economic
development.
this we are

making

financial

Inquiries Invited

substantial

American

must

many

REVENUE BONDS

question but

•

<fe

AND

econ¬

problem

Filipinos

market

the

present

interest
Private

foreign exchange, internal distri¬
bution, and Nationalism.

Jefferson City, Missouri
Louie, Illinois

TAX

in¬

is making the sale

Philippines

Branch Offices

Alton, Illinois

can

country to

Philippines the

of nationalism

1-5585

MUNICIPAL

omies.

meet

Telephone CEntral

sales to this

our

benefit

ucts,

SAINT LOUIS

two-way

sizable export balance
imports. Import restrictions

proportions

OLIVE

This

very

crease

that

Exchange

Over the past few
years
trade with Japan we have

our

had

host

Japan.

can

Dixie

Terminal, Cincinnati

To do

substantial

contributions

Walter, Woody & Heimerdinger
403

Viet

winter, unbelievable demands

Ameri¬

substantial

heat

cold

country.

Ecuador

this

every¬

foreign exchange income through

One

finds 400 million

excellent customer for the indus¬

will

explore the Thai market.

tries in the United States that will
make the effort to set
up capable
and vigorous sales representation
can

silk

desired by our wives and
daugh¬
ters
that
can
be exchanged

the

This

country, with a broad
base of foreign exchange
earners,
has improved its exchange position
materially during the past few

eight

struggling to increase income and
great
living
standards,
and
overbur¬
sales.;
dened by overwhelming problems

opportunity for American
Malaya has a very substantial for¬
eign exchange hard currency in¬

lipsticks and cosmetics.
In

new

manufacturers

and

but with

export

case

con¬

one;

come

nations in the world.

condi¬

market

result

Every

Export Gain

billion

a ready market
country and there has been
a
constant
reduction
in* import
restrictions.
Our
negotiations
would
indicate
that
during the
next few
months Italy will
be¬

praisal is to be realistic.

ination

over.

products find

can

"Talking

has

now

to change |his
American products

in this

in merchandising know that there
no

business

opportunity

orientation to
as

products, but

They are becom-. purchasing power of Viet Nam
ing known for their advance de¬ through sales to our
country of
sign and versatility. Many Ameri¬ its unique and beautiful handi¬

Those who have had experience

major world

French

American

great

Thursday, January 21, 1960

economy.
The Vietnamese
been* traditionally oriented

towards

for
a

Italian products are found

the world

high. ;
This is not dreaming; there is a

tour.

Under the normal circumstances
I have outlined, United States ex¬
a

trader.

next year can set a record
sound basis for my

future.

near

Italy has become

ing my recent world examination

'A-

ports

in the

Stales exports in this

United

taken

market centers that I visited dur¬

launch

export drive.
,

producers

export

of the settlement of the steel

labor dispute, jet aircraft because
of
known
orders
for
overseas

are

join, with
traders in the
marketing" of goods over¬

American

has

place in the last 90 days and addi¬
tional steps towards freeing im¬
port restrictions can be expected

operate more successfully, and
larger numbers of

seasoned

liberalization

stantial

which

1959

By far the greater pro¬
portion of goods that would ,be
imported into Austria suffer from
no governmental restrictions. Sub¬

exporter and provides him with a
world-wide climate in which he
can

substantial oppor¬

tunities.

mightily to assist the

ment works

have

the country is not one
population, The existing
good will towards American prod¬

Foreign Trade Prospects
Continued from page

Nam's

of great

MAin 1-5071

Nurffoer 5918

Volume 191

Americans

items

^During

take, for

few months
tremendous re¬
appraisal and reorientation of In¬
dian thinking, resulting in a move
directly into a more cooperative
posture with the United States,
On Dec. 9th President Eisenhower
opened the American Exhibit in
the
Indian ! World
Agricultural
pair. This exhibit is such an out¬
standing success that throughout
past

the

they

Tndia the

"America

i- aswhich means

asked

was

potentials

Lists

that

(283)

What

First,

Government

the

Can

Administration

trade

United

the

deficit

balance of payments must be redoing so, I had the duced through expanded
exports,
to talk to political not protectionism and restriction.
and
business
leaders
in' Cairo. In
the
total
national
interest,
This area
has very
substantial' equilibrium
is
to:.be
obtained
assets—the fertility of the
soil, the • through growth rather than concent

tourist

world.

attractions

also

the

center of travel to the

traction.

the

potential

which

awakening

African continent. It may well be¬

seek

lower

that

obtain

level

r\*

otFLllOI'S

Feb. 1 will admit William H. Hurt,
Ralph E. Phillips, Jr., William B.

632

Los Angeles office,
Spring Street,

South

With F. I. duPont Co.

Pacific Coast Stock Exchanges, on

■

Aiw+p

WHITE PLAINS, N. Y. Albert C.
Fish has become associated as a

registered representative with the
White Plains office of Francis I.
James Wiley to general partner- duPont & Co., 175 Mam_Street. it
ship, and William L. Stewart, Jr., was announced by John F.Martin
to limited partnership.
Manager of the firms White

Doyle, Will Richeson, Jr., Howard
C. Tharsing, Irvin J. Whitehill and

solutions

balance

wil1 make their headquarters in
the firm's New York office, 14
Wall Street. Messrs.-Hurt, Phillips, and Richeson1 will^be in the

menders of. the New York and.

strong'conviction

*4-

SAN FRANCISCO, Calif. —Dean
Witter & Co., 45 Montgomery St.,

This position is predicated on a

•

Canal, and the most magnifi¬

W ILlt/JL Go vU.

JLO xxClIYllL

international

our

opportunity

Suez

-Arab

the

Jpr

T\.ori

al-

ready is taking the position that

examine

in.

Republic.

Mela,"

largely by the efforts

Americans make.

entire Fair is now des~-

ignated

American will be deter¬

are

mined

has been a

there

The Commercial and Financial Chronicle

...

achievement

the American Fair. come the crossroads of the Mid¬ simply are not in keeping with
During President Eisenhower's dle East. As exchange problems the main thrust of United States
Mrvisit millions of Indians carried are solved, and they most cer¬ destiny and the maintenance of
on their
lips the thrilling state¬ tainly will be,'many millions ;of free worldleadership.^.,
ment "Eisenhower zjndeba d," dollars will be freed for importa- : —r Second,--as a result of our gov|
Of
which means; "Long Live Eisen¬ tion
ernment's- diligent and energetic4 !
andconsumer
capital
hower."
'
'
•
actions during .the past several * I
goods. The sales will be made by

D°yle

and

Mrv" Whitehill Plains office.

Never

before have so many peo¬

those

who

knowledgeable of -months, in-the GATT and in bimarket,"1 able to laieral consultation, a number of

are

Egyptian
strong a desire to de¬
economic exchanges with present their products in the most countries have taken, or are about
another country as is now evident attractive, light, and who are pre¬ to take steps to remove or reduce
in this great subcontinent.. This pared
to deliver at reasonable long-standing restrictions against
offers opportunity for the adven¬ prices and upon reasonable terms, dollar
goods.- Markets
virtually
the things that the market place- closed
turous and the ambitious.
Y
to
many - American
pro¬
-calls for. I believe that the future
ducers for several years are open¬
In
Pakistan,
with k problems
the

ple had so

velop

will

find > this

similar

trader

million people

hunting ground.

to, those in. India, the 90
posing a combined
problem of lesser magnitude but
making/tre¬

country

this

lift
out of
individual poverty and dire need.
The people are industrious, tough,
and
they
like
Americans,/ and
while American concerns current¬

the problem. The

to 'literally

efforts

periencing
con

difficulty,

with

that they expect

offer

ing rapidly;
Third,

this:

major

that

inescapable

con¬

reached

Opportunities

are

munity
and

the askingr-they must be

the future to hold

increased

business

corn-.'

business desires

such

foreign

assistance

to-

effec¬

markets

level

increased

in¬

irrevocable

tively. V'v*1,v

unlimited

available for

certainly not

«■

very

national

the

long

—but

;

in-

t an

exports

provide

requires

trade

to
as

since

have

obligation:

and

must

services

These

opportunity

;

•

and

level

;

terest,

re¬

trading

world.

free

the

assistance,;

creased

are

;;

the repre^ -definitely

that

;

today are providing
exporters with a minimal amount'

every

the

both

clusion

few

examples

center

indicate

them

are

flected

Pakistan are ex¬

great

ultations

These

sentative

itself by its own bootstraps

ly operating in

Earned,

mendous

•'

Unlimited Opportunity Must Be .j of

the leadership

nonetheless; acute,
of

aC, happy,

exports

essentially is the responsibility of

jeaimecL

business

itself,

Within

however.

members:

substantial

Our

promise.'Products from

the industrial

world

and will

can

course,

be sold to the Pakistanis. Whether

government- must,-- of
take

give you

fralnework

free

New York Stock

competitive enterprise, it is busi¬

action—let

positive

cherished

-our

not

ness,

few examples.

signs,

Other

Exchange

Principal Exchanges

which de¬

government

manufactures, ( distributes,
the goods in our export

and sells
trade.

national

all-out

drive initiated by

has

export

the government

of success, unless the
community, as a whole,
willing to shoulder this respon¬
sibility and take the lead.
*
a

prayer

business

when

going

The Eisenhower Administration
is

resolutely

moving

tively

American

its

business

The results will be

to
a

expectless.

higher, level

Municipal and Corporation Securities

of
-•

market,

prosperity, economic stability,
the promise of world peace
and tranquility.
and

address

"An

Annual

it's...

Philadelphia,

the
Conference, Chamber
Philadelphia,

by Mr. Kearns before

Forecasting
of

Commerce

of-

Pa.,

Greater

Jan.

1960.

The First Cleveland

To Conduct Course
51

THE

OHIO
?:■

Mtmbti of tht Midwttl Stock

Vestments

COLUMBUS 15, OHIO

fxchonge

The Ohio

Ohio

Company creates and

Corporation

Member Midwest Stock Exchange
National City E.

At Hunter College
Dr.

CLEVELAND

maintains

eral

6th Building

14, OHIO

Davison, Director of

Edward

School of Gen¬
has announced that
Whitehead again will

the Hunter College

Telephone PRospect 1-1571

Teletype:

CV 443

CV 444

Studies,

Louis

through its exceptionally wide

course

Canton

Toledo

Sandusky

Columbus

Youngstown

the

conduct

distribution.
Thorough distribution makes good markets.
markets

HIGH ST.

COMPANY

Distributors

Dealers

Underwriters

effec¬

and

part—we

in¬

be¬

vestments

ginning Fri¬
Feb. 19.

day,
The
will

course

meet

one

evening
week for

DEALERS

SECURITY

sions.
v

Toledo

Address

partment. Teletype:
«»o u. i

Bank Wire:

Cleveland

Cincinnati.

Loans and

NCLV.

m. o»».

BANK

Assets Over One Billion

Dollars

Whitehead

Securities De¬

CV 240.

field, Rickards & Co.
ESTABLISHED

1908

faculty of

the New York

Institute

Finance,
successor
to the New
York
Stock
Exchange Institute,
where
he
conducted courses in

Economic
Developments Affecting Invest¬

Economics and Current

Underwriters and Distributors

Municipal & Corporate
Securities

ments.

Formerly a member of the

fac¬

of Syracuse University, and
American Insti¬
tute of Banking, Mr. Whitehead
has been engaged in investment
counseling
in New York
since
1936.
He is a partner of Nye &
Whitehead, New York City.
ulty

OHIO'S LARGEST

in New York

Chicago

member

the
Louis

Pittsburgh

ses¬

!Since 1942
Mr.
White¬

CLEARINGS
We clear for dealers

15
"

a
to¬

head has been

SPECIALIZED—PROMPT

tal

lecturer for the

Prospective students may regis¬
ter

telephone

Henderson

at BU

by calling Mr.
8-7210.

1556 Union Commerce Bldg.

CLEVELAND 14, OHIO
Telephone PRospect
Teletype—CV

1-2770

174

1707

Union Central

Bldg.

CINCINNATI 2, OHIO

Telephone Main 1-3776

Teletype—CI 197 & CI 150

The Commercial and Financial Chronicle

(284)

Thursday, January 21, 1960

Business and Finance Speaks After the Turn of the Year
with

Continued from page 1

financing problems becoming increasingly

requirements is equally well demonstrated. In
four-year period from 1959 through 1962 the gas
pipeline and utility industry expects to spend nearly
eight billions of dollars for construction and expansion

factor

range

in the picture.

We
expect it to reveal a record population of 180 million,
up 29 million since the '50 census, now growing at the
great Decennial Census.

ment in 1960 will take the

million

rate

year.

Investment in business inventories has traced a highly
irregular pattern. Liquidation of stocks featured in 1958
cyclically-dominated picture, although at a declining
rate as the year progressed. A strong recovery got under
way in early 1959, in major degree reflecting the typical
recovery cycle but also featuring anticipatory
buying

expansion will continue.
Savings will be increased.
Business will invest the
money in research and in more efficient facilities. This,
in turn, will make jobs and create an abundance of new
and better products.
All these factors can fashion the
This

population

amazing

into

Decade

1960-1970

there will be pauses and hazards

course,

well

higher

ment

the moral

dented

take full

force

advantage of

opportunities, the best time of
Business moved

The

our

the

march

latter half

value

total

billion.

Federal

of 1959.

the

time, output

lost

materials

tide of income

Materials

Expenditures

ance

still

factor

not

slowed

State

and

the

anticipated

local

ried

The marked

during

expanded

show

1958

income flows

ponent

was

income

higher.

were

than

other

higher

than

off somewhat

was

but, by year-end,

was

rate

Phonograph

The
are

most

areas

Another

factor

favoring

ERNEST

Electric

The

this

year

not

was

realized

owing to

the

The

sales,

down

were

evident

from

the

that

peak

the

reached

1959, but despite the recent drag,
from

the

reduced

were

1958.

purchasing

power

During

in¬

the

spring of
substantially

the

were

tinued
and

and contributed

consumers

1958 —reversed

importantly to the

direction

were

though

limited
In

real

recent

the

weeks.

supply
,

1959

automobiles,
one-seventh

new

cars

was

terms,

basis, were steady,
largely reflecting offsetting downward
price movements

for

farm

products

and

foods,

and

prices of industrial goods.

upward

tendencies

the

well

number

peak

the

for

bus

natural

gas

ahead

the

707

than

billion

10%

against

new

Thus, the nation's
than
and

all

Great

than

reserve

borne
a

two-thirds

out

record

10%

dence

country

future

both
and

the world

plans for
the

its

the

United

future.

million

generating

Russia's

1960

The strong
resurgence of home
buying which featured
the recovery of 1958
carried over into

have

new

total

1957-62.

was

record

volume of residential

1959 and the
year

construction,

al-

hieh: fSn?Q^UrTh from, 1.958' an<* topping the previous
J
,n housmg unlts initiated came
early in ivff' year® and
the

demand has

subsequently slowed,

capability

and

the

this

industry's

that

increase

billions

1962

for

utilities

dollars in

will install about 9.3

industry's confidence
in

its

ability to help

the

free

enterprise

the

nation's

their

economy

future

and

nation.

ACKERMAN

and the

intercity

All

elements

the

here but there

major

both

meet

The

;

roadblocks.

reacts

mil¬

its future busi¬

the

nation's

for

quite

sharply,

prospects

long

likely.
dispute will

Product

the

will

result

the

decade

surer—the

critical

casters
to

over

secret
era

over

tell

well

mean

boom

1960.

the

Sixties,

growth

the

roadblocks less formidable:

indicators—population growth and

that

rate

million

people

sonal

leisure time, personal
building—point to a con¬

the

population.

million

the

and

stand

exploding

three
us

four

F. W. Ackerman

rise

could

internal migration, vacation
disposable income, highway
tinuing growth of travel.

exciting
gaining

the

seems

steel

bus ticket sales in

are

of the

breaking production
It's likely that the

1960.

National

the levels of

All

delay

the

record

delay

business.

such

end

year

curve

assure

It's

keep

The gas

production,

But

capability

kilowatts of generating
capability. The companies
expect that revenues this
year will be about
7%
greater than in 1959.

ness

similar

Looking

larger

also

utility industries enter the '60s
factors

are

business

mean

kilowatts

Investor-owned
3.4

nuclear
will

investor-ownership.

Confidence

1960.

some

bus

Gross

capability of 199 million

estimated

construction and

1958's

industry's confi¬

reveal

average

electric

healthy

success

rising

pre¬

lion

saw

period

spend

found

Those plans

States will

five-year

alone will

electric

total
1960

the

advantages

prosperity

take

great

can

kilowatts.

preparedness

leader

kilowatts, representing
the

the
its

over

1958.

illustration

continued strike, or
any other delay
full employment and

generation

capability by

164.8

1958

the

end

governmental

and

Ernest R. Acker

capacity alone

Britain's

years

quickly to
We carry people who
pay
their
own
way.
When
they
haven't got a job they
stay home. A

proven

129.3

future

the economy.

reserves,

high

the

Greyhound
industry.

The

its generating

peak demand

and

year,

the

power

demonstrated

could

kilowatt-hours, almost

It also increased

and

gas

future

for

nation's needs

1960

this

and

electric

ownership,

Let's

custo¬

amount

.^:y'Y;■Y''"Y Y^';

marked many improvements in
transporta¬
service, equipment and economics. But the Sixties
certainly will see growth and expansion beyond
anything we have known. The course ahead is charted

world

significantly advanced

bene¬

tion

con¬

liminary figures for 1959 that show

major contribution to
improved business in 1959
provided by investment demand.
Gross private do¬
mestic investment was
up one-Yourth
from
1958.
All
major elements including fixed
capital and new resi¬
dential construction
moved forward from 1958
to 1959.
New plant
construction was little
changed, but business
purchases of new
equipment were 15% higher. Total
outlays tor plant and
equipment have not yet recovered
to their 19o7
peak.

record

also

most

industry

gas

have

The Fifties

assuring adequate long range sup¬
plies of this fuel. That the electric
industry is staying

Investment Demand Higher
A

time, the

for

field

industries

President, The Greyhound Corporation

production

new

field

operation

re¬

development.

same

States

in¬

challenges to these companies this year
throughout the decade.
The
continued

strong and

the

generating

power

great

recoverable

was

United

new

customers

into

year

aid

advance * asthe

and

new

the

power

served
mers

total.

consumption increased by something
over 5%.
This meant a substantial
gain on a per capita
basis as well, as consumer
prices were up 1%. Prices
in wholesale
channels, on an overall
for

the

this

plant

The
as

1958 recession.

with

field

the

ment

Corp.

favorable

electric

system and the benefits of

demonstrated

the

many

industrial

activity in
gas business sets the
stage for another major challenge to the industries. We
are
confident, however, that the industries will continue
to keep the public informed as to
the dangers of govern¬

research projects by
investor-owned electric

electric

At the

upsurge in consumer

markets this past year. Led
by purchases of
total purchases of
durables in 1959 were
above 1958 even

full

perhaps

both

nuclear

downward

first

additions

companies,

by more than 6%. As in previous
postwar years, buying on soft goods and services
stead¬
ily advanced, while purchasing of durables—which
had
moved

incomes reflected

the year,

nation's

leader

buoying activity in 1959 and testified
improved well-being of individuals. Total ex¬

penditures

and

nation's

investments

results

major influence
to

industries

capability and further emphasis
still

half

expanded,

the

significant

the

of recovery from the

Larger Consumption

With

level of

second

revenues

sults

industrial

full-year record for business profits is
It

utility

sale

Inflation continues as the most serious and
persistent
economic problem facing the entire nation. Its
effect on
both the construction
programs and the operating costs
~of gas and electric utilities will
continue to provide one
of the major

with

electric

its

increased sales to all types of cus¬
conditioning and the prospects for in¬

air

sales

pressure

inven¬

again in 1959 their solid growth qualities and, despite a
prolonged major strike in the basic steel industry, their

disputes.
complete.

and

gas

and

gas

for

and

ACKER

President, Central Hudson Gas

new

million, up 1^ million from 1958. Unemployment was
substantially below that of 1958, although here again
the earlier anticipated improvement in the
latter part
the

greater extent in air conditioning invent,ories.

The

favorable for

very

but

capability
490,000 kilowatts.

radio, but

even

the

power

tories at year-end, at the
factory, distributor and dealer
level. This is true not only in television and
to

found

associated

uled

likely to

lower

■

1,400,000 kilowatts and will require estimated expendi¬
by the companies of 570 millions of dollars. Three
plants are already in operation. With three more sched¬

the Government Elec¬

improvement

:V''Y Y.-■ :V Y .Y:

tures

Industry-wise in the television and radio field, there
to be a tendency on the part of the public to¬
wards the purchase of higher priced
units, which should
result in a larger dollar volume of sales and
profits.

favorable showing was a record volume
of employment and
continuing rise in per capita earn¬
ings.
Total employment in 1959 averaged over 65^

com¬

1958.

nuclear power, 131 electric companies
organizationsare participating in
16
atomic power plant research and
development projects.
These
projects
represent
a
combined
capability
of

Corp.

high.
Behind

about

industry's house heating customers
million, up 6.8% from 1958, and gas has

been

the

and

appears

during

again at

Radio

during 1960.
improvement

marked

com¬

1958.

Emerson

Air Conditioning Divisions.
Tp a lesser de¬
improvements are also expected in our Television,
Phonograph and Radio Division.

major

The wage and salaries

factory employees

the strike months

lower, but

was

spend

expansion

gas

extremely bright.

These outlays

tronic and

flow of personal income reached a record of
$380
billion in 1959, up about $20 billion, or 5^% from 1958.
The real gains in purchasing power were also
large.

proprietors'

during

of goods,
through aggressive sales pro¬
by holding; down the costs of'

and

processes

creased

1959.

gree,

The

Farm

plan
for

year

24,500

miles

with the manufacturers of all types

only

are

improvement in sales and profits of Emerson
is expected to continue at an even more

1959

accelerated

business.

programs

billions

result, the

tomers

BENJAMIN ABRAMS
President,

Higher

investment

this

another

■tY'iY YY^Y;^''r.:: vY.

Both

outlays* in
resulting from a
extensive programs car¬

almost 10% from

buoyant note in the Nation's markets in 1959 was
provided by the expanded purchasing power of indi¬
higher

companies

gas

add

283,000

fited this year from

postwar increase

under conditions of higher costs.

were

The

and

during off-peak periods has strengthened the load fac¬
tor position of distributing utilities
■■•-Y'Y'/.V:

expansion.

revenue

governments

growing population, and

jobs in November, there was a rapid recovery in steel
output and a resumption of volume production of auto¬
mobiles and other final products; affected by limited
working stocks.
With steel production
assured,
the
economy
is again
moving ahead under income and
demand conditions which give promise of
pushing us to
new high ground.

viduals

will

expected

dollars

programs

dustrial

year-end, but after the return of steel workers to their

Incomes

and

year

and

The

total 20.4

now

though here again interrupted work sched¬
resulting reduced incomes in some major in¬

1959, extending the

shortages developed and the rising
were

defense steadied late

national

in 1959,
with

dustries

was

difficulties

motion

the year at a level

arrested.

was

supply

decade.

service.

defense

pushing forward under
the impetus of the strong cyclical recovery under way
since the spring of 1958. Subsequently the momentum
was

Stable

Purchasing

slightly above that of 1958; nonoutlays have been little changed. With higher
receipts, the Federal budget picture changed from a
large deficit in 1958 to one of improvement in the bal¬

high point in activity was reached by mid¬
the GNP rose to an annual rate of S485

At that

last

year

billions of

fuels and

Demand for goods and services on the part of the Fed¬
eral Government was virtually stable during the course

ules

when

year

1955-1958
..

for the consumers' dollars

terms.

The year's

the

'•

...

tively

tories than at the start of the year.

year.
Gross na¬
goods and services
produced in the economy) approximated a record $478
billion for 1959, according to preliminary estimates—
up 8% from 1958 in value and 6% in "real" or volume

productI (the

tional

;\,,Y

During 1959 the gas and electric utility industries ac¬
competed, both with the distributors of other

volume of inven¬

—

unprece¬

our

notwithstanding the setback to the economy brought on
by labor-management disputes which slowed the up¬
ward

this

drawn

this

pared with 1.8

though less well balanced

—

lives is ahead.

high ground in 1959

new

being

miles

Towards year-end, business had on hand a somewhat

bright prospects and forward steps. But, if govern¬
and the public have the economic wisdom and

1.9

again

billions

industry now has 595,600 miles of natural gas
pipeline and distribution main. It installed more than
24,000

prolonged, inventories were
down in the final quarter of 1959.

6.3

The

were

rewarding of history.
Of

projects, compared with
period. .y.';',:: ""..'a

of materials in the face of possible shortages.
These
expanded working stocks provided a cushion to sustain
output during the strike period. As the work stoppages

challenging and most

the most

the

people

per

gain

will

annually.

threshold
We

have

year,

been

and

fore¬

stepped up
Disposable per¬

income has been rising at an even
faster pace.
A
shorter week, two and even
three day week-ends, longer
paid vacations — these contribute
not only to more
but to the raising of seasonal and week-end
valleys in the travel market. The result? Total travel
has actually doubled in
the last

travel,

will

history.

the

decade;

the

Sixties

than

any

people
time in

The intercity bus
industry has reason to expect a
substantial share of this boom.
America's great program
Continued

page

34.

Number 5918

Volume 191

The Commercial and
Financial Chronicle

...

ments

President Predicts Surpluses
24
7,
which now amount to a
one-eighth of t e

term

most

budget.

;
•

•

CI,pn

*****

■

"o";;"~v

changes

estimated that the public debt,
which stood at f $284.7 biluomon

with

-y

-oia 4/4/o

tion

permanent debt ^onomic activity m calendar

Treasury
working

Congress,

the special services they receive,

resulting

allowances

t0 ;re.^ove the price

nnin-

the

from
the

finished

clay,

selling

cement

products, and mineral products
generally; unless the problem is

bile est rates on Government sede- curiues maturing after five years,
cline to $280 billion at the end of
Rp
.
tc
fiscal 1961. Thus, the budget sur■
,......
plus estimated for fiscal 1961 will;pinnated budget receipts of $84
permit the Government to end the billion in the fiscal year 1961
year with desirable operating lee- assume a high and rising level of
the

the
been

which
has

satisfactorily

resolved

case

now pending before the Supreme
Cour^, the need for corrective

•

year,

tion of the depreciation

provisions

than'thr,

for less

$295 billion .if ,the
cepts my budgetary
C

Interest

i l i

present were depressed somewhat by the
Cong, ess ac- ^ juration
the steel
pioposals.

n g

...

Effective

—

management of a debt of this size
requires a reasonable distribution

ferenf times.

present

Treasury

outstanding

t°daV

long

as the
be paid

maintain

Federal

it is

necessary

that the

tax

June 30,

of which $80
billion will mature in less than a
less than five yeais,

year.

rateg

1960.

cornoration

The scheduled

reneal

P0Z

tox

the

session

eSL**i'.»SAS
impossible to issue and sell any

rs.'KiS XJRfls

marketable securities of

over

enacted

way

expensive

pressures

volume

increase

short-term

and

the

have

Treasury
To

make

has

refinance

the

often,

possible; prudent

and

flexible management of the public
debt, to permit sale of a modest
amount of intermediate and longer

The Treasury will continue

bal-

reason-

The task of providing.a_reas
of

3™^

our

other

securitv

iSicaterbv the
Stifle nrogrels

The

yeaTs hLe wTn^seS
£
oerhaos

the

swift

vltai

ereatlv
pace

last

what

hav"

ad-

raoid

most

Techno?ogy

Mt,

erai
the public are estimated at $102.2
billion in 1961 and payments to

Furthermore unexpectedly rapprogress or a
technological

excess

the relative importance

receipts.
excess

repay

of receipts

cash

the

govern-

has'oreviousivbon'owed

thfputoTJ

greater

the

gram in order to redirect resources

to, th ei newe:r a nd more important
weapons

amount

other

reevaluation of the defense pro-

Repay™ of

than

competitive systems. This has necessitated a continuous review and

will be

systems and to eliminate

gallon
should
which

be
now

imposed
are

jet

untaxed

The

conversion from piston

engines to
jets is resulting in serious revenue
the

government.

These

losses will increase unless the tax

jet fuels is promptly enacted.
revenues

from

all

taxes

ment of the tax laws.

hv'eventT'Thus toIhe" tosTfew
W events, inus, in tne last lew

Pected to add ta their holdings

of ,pu.bli.ch f" securities to the years a
®xtenV t.hat. lfUst, fund r,e.^elpts the lime
exceed trust fund expenditures.

^hls

amn

nlSrfv^

lomSna^t

toeir

devefoDmenT

dlminarted

For^ example

^^romi«dn^ a^odvnamic

clearly should not be deposited in

the development

prehensive

com-

revision program
will take time, the Congress
should consider this year certain

inequities.

These include amend-

should be

credited

general budget receipts, as a
partial offset to the budgetary
costs of the airways system, and

„

mifciip

For the fiscal year 1960, on the ^P"
6
other hand, an excess of payments De Aauucnea oy sur ac a
to the public of $542 million is
Continued on page 35

the highway trust fund.

tax

changes in the tax laws to correct

fuels

The cost of other Federal
grams

pro-

which provide measurable

special

benefits

identifiable

groups or individuals should be <
recovered through charges paid by

—

j p. «

q
qx

|V| f\ ^

f—J

PORTER

UNITED MARINE, INC.

kJ IV|

r\ IN Y

BUILDING

PITTSBURGH

19,

PA.

Municipal and Corporate
Securities

6% Sinking Fund Debentures due 1974
With non-detachable Warrants to

purchase Common Stock

Common Stock
Par Value 81.00 Per Share

Copies of the prospectus may
will

executed

he obtained from, and orders

by the undersigned, in States where the

undersigned

may

Underwriters

legally offer these securities.
Distributors
'

■

"k' '

•

'■

•

-T

I ^

Dealers in

BOENNING & CO.

CORPORATE AND MUNICIPAL SECURITIES
'
'

Established 1914

Members of

of American Stock

WALNUT
LOcust

STREET

NEW

8-0900

utcher

Exchange

PHILADELPHIA
1529

■

Established 1910

Philadelphia-Baltimore Stock Exchange

Members

115

YORK

BROADWAY 6

COrtlandt 7-1200

was

»nm

like ^amount by pletely^eliminated. For examp ,

ownershlP to the trust

aviation

TyfLS

amf^ertSn^he^Fed- stjH in Pr°duction, and some while
transactions, receipts from
under development,

This

to work in cooperation with the
committees of the Congress in developing
sound
and
attainable
proposals for long-range improve'

few

trustfund

The

hence

when

provided valuable informa-

The task of providing

without endangeHng

pronto-owedto the^bTcw.fr

Further, effective monetary policy
difficult

System

hearings

falStd ^y

again that the Con-

not reenact this rider.

cress

ceipts from the public over cash
payments to the public. In this

gasoline snouid be piomptly m

tion bearing on changes in the tax

liquid securities mounts,
especially if these securities are
acquired by commercial banks,
more

Tax

restrictive

law, popularly
the Buy American Act.

once

much

general

known

represented by

the

I urge

greater surplus of total cash re-

from

laws.

highly

becomes

the

vision

than

anced budget with a substantial
surplus is reinforced by an even

used

of the Ways and Means Committee ; losses

and

the

manage

tionary

inefficient
debt. Infla-

„

the Public

To help defray the cost of the
fe?eral airWa7s syfem' th-e..eI"

tax

The recent tax revision

now

a"dhIf,.ayments to

^
Cal policy

Proposed New Levies

fuels

borrowing

limited sector of the market

postPoned

Improvement

Exclusive reliance

last

five

years' maturity.
in

larl

y.i.5,,^

loCchaeidUteleoheoBneal service, 'whtoh

issued

*«<*«*

re-

j."'e0V"s*™* ™fs

propriation acts for the past several years have contained a rider
which limits competitive bidding
by firms in other countries on
certain military supply items. As
I have repeatedly stated, this pro-

it or planned to

...

*
*
*
The Department of Defense ap-

.»

ing in
of $5.9 billion of system, in itself, often diminishes
^ ^ at ^-^.result, breathrough on any one weapon

the property.

newly
bonds exceeds the present

would have to

readily

Accordingly, I recom™end
consideration be given
to a c.han§e "J the law which
would treat such gam as ordinary
accepted.

Auctions in the excise tax rates

that

rate

^ded Tor iToZ

Three-fourthmf aU
securities

marketable

or(jer

revenues,

roposals

pending before

trUSt

funds,

quested to act favorably on the
postal rate proposals described in
this message and on a number of

other specific

unem-

ViiaTnixrQV

highway

and

ployment,

legislation in this area will con- be submitted this year for intinue.
4
creased fees or charges for special
Under existing law, administra- services. -vyv
■
•
v >

billion: However, the «W0. Specifically, this revenue is being hampered by the attempts
fluctuating
seasonal pattern in estimate is consistent with an in- of some taxpayers to claim exreceipts will again require a tern- crease m the gross national prodporary increase in the debt limit
ucl
ak°ut 5480 billion for ing 01 tneir property. It gain from
during the fiscal year .1961, since calendar 1959 to about $510 billion the sale ot depreciable personal
the
present temporary limit ot for calendar year 1960. Personal Property were treated as ordinary
$295 billion expires on June 30, '"ct^d
^
1 Qfio
excessive depreciation
1960. it is expected that the re- fxpected to rise considerably
tenagr
quest for a new temporary limit beyond last year's levels, which

She

nlrvirmont

I have directed that further work
be done by the departments ana
agencies on a carefully defined inventory of Federal services which
convey such special benefits.
In
the meantime, the Congress is re-

St of $285
-

estimated despite the anticipated
budget surplus of $217 million,
This situation reflects the fact
that total disbursements of trust
funds will exceed their receipts
in 1960, notably in the old-age

taxes
the general public. Whenever
feasible, fees or charges should
be established so that the beneficiaries will pay the full cost ol'

i-u-Qimnt

deductions

30, 1959, will be $284.5
lion on June 30, 1960 and will

within

technical

comPutation of percentage deple-

June

wav

beneficiaries rather than by

number

committees

an amendment to prevent unintended
and
excessive
depletion

•

limitation

taxation

before the Con-

that the Congress

law
now

There is also before the Congress T Tnaxro
To help accomplish this purpose, and survivors insurance,
ampndmout
that -fiirfUor. iwrirk
onrl

conai-

Department

™

and

gress,

and to

nnnfwi

Limit

Debt

Statutory

warrant

<WW

markPt
:.

tions

terest,

bonds when

ii_-.

the

cooperatives,

In Fiscal 1960 and 1961
Continued from page

(285)

Sherrerd

1SOO WALNUT

ST., PHILADELPHIA 2, PA.

PEnnypacker 5-2700

Teletype PH-4

Members: New York Stock
American Stock

Exchonge

•

Exchange (.Assoc.,)

•

New York BArclay 7-4641

Philodelphio-Baltimore Stock Exchange
•

Boston Stock Exchange (Assoc.)

The Commercial and Financial Chronicle

(286)

Continued from

page

from 81,829,000 tons in

118,000,000 tons.

super-highway building will continue to make bus
travel faster and smoother.
The greatest proportionate
of

to perform until

this

These

in addition to the regular Scenicruiser Service comforts.
This and other special buses are forerunners to the

buses you

super

the

Sixties.

Terminals
Great

too

being

are

enlarged
such

centers,

and

the

modernized.

the

architects'

drawing boards.
Most important, service is being
stepped up to meet
the growing challenge.
Buses have taken advantage of
new
super highways to provide non-stop, serivce, with
frequency and speed unheard of a few years ago. Elapsed
times, down-town-to downtown, usually compare favor¬
ably with rail, often even with air service.
,

Another

important

factor

the

economic

future

Greyhound and the bus industry is the rising volume
of

package

terminal
to

facilities

accommodate

expected

revenue.

express

that

Bus

being

designed

are

this

such

extra

non-passenger

augmented as time goes
volume of United States mail.;
1960

all

transportation

reduction from 10 to 5%
It is hoped that this

in the tax

remaining 5%

and

operation.
by

and

New

Pittsburgh Works.

Three

expansion program at the Cleveland Works, representing
an
investment of $90 million, was completed in the
is the

normal

due

tively. In a new program, two basic oxygen steelmaking
furnaces, to be built in 1960 and 1961, will be the-world's
largest. The new furnaces will produce a high-quality
ingot at a lower unit cost, and' the capital investment per
of capacity is attractive.

EDWIN

passenger travel.

war

Oregon.
plant

President, The

ADAMS

Bank

time excise tax

decidedly

un¬

portant factor

prices,
a

ning, I

west will

year.;

substantial share of this
growth for the intercity bus.
Along with other indus¬
we will have a running fight with
rising costs in

increased volume into profits.
great deal of potential business in

ahead.

sight

Greyhound expects to

grow with

But

there

the road

it.

our

effect of our current
$235 million
cost reduction
program should result
in an increase in

productivity. How¬
ever, our employment costs have been
increased far beyond the
productiv¬
ity attained in the steel industry
during the past 20 years.
:
Now that labor peace has been
sured, the steel industry in 1960

as¬

can

expected to produce at an alltime high of 130 million
ingot tons.
This figure represents an
average
operating rate of 87 % of an increased

industry capacity, which is

63%

147,633,670 net tons of capacity.
The record year is 1955 with
117 million tons.
Purchases
of finished
were
about 70.1 million tons in
1959.
of steel products in 1959
were at about

have experienced
beginning level of about

that demands deferred
of that

Exports will be

look

nearly

high

age,

and

that

system reveals to

might

strictly short-term

unable to

believe

Quarter 75.0%.

banking

business,

not

rate

our

industry has

grown

the

good year in

difficult

estimate

whether

the conditions described
will result in
gross
sufficient in the face of
steadily increasing costs
to produce a net profit
consequentially greater than 1959.

common

with

ALBERT

some

nomic

areas

conditions

the

west.

most

Eco¬
our

territory—especially lumber
last

quarter

1957

are

that

this

upturn

continued

E. K. Albert

additional

tourist

and

indications

will

continue

Southeastern
enjoy stepped

our

will

business

due

new

recreational facilities and added
pay¬
rolls
from new* natural
gas
lines
being built through the area.
Southern Nevada will
benefit from

business

and

start

expansion

decade

new

dealt

with

growth.

markets

challenges that
in

individual

have

set

objective goal of doubling our sales
every five years with
a
minimum
15%

annual

improvement.

The

in¬

serve—printing, packag¬
textile processing, construction

ing,

maintenance, and manufacturers
requiring protective and
coatings

for

and

ups

offer

—

and

downs

number

of
of

aggressive

marketing

product

de¬

programs.

served

by Sun closely reflect
National Product.
For

of> Gross

its

Norman E. Alexander

ample

with

company

one

major

products, printing ink, has

years

registered total annual sales
ap¬
National Product,
showing
the close
relationship to the total volume of goods and
services consumed each
year.
The consumption of inks
in the
packaging field, has grown much more
rapidly
than Gross National
Product and Sun's
increasing co¬
ordination with the
packaging field will enable us to
of

Gross

grow at a
correspondingly higher rate. Coatings and
chemicals, our two other product
groups, show a similar
relationship.

Gross National Product
at

billion

by the end of the

further

September

increase

during 1960.
The

•

30,

and

sales must be

hit

$485
for

are

the rate

improvement in

achieved,

rate of $478

probably

Predictions

year.

7/7 .7

77,

annual

will

much

difference between

and the desired

was

billion

GNP
v>7:

increase in GNP

individual company's
feel, through better market¬
an

ing and through further penetration
in growing markets
through product development and
acquisitions where
this will accelerate
growth plans.
To achieve the
first of these

has

developed

objectives, Sun Chemical

marketing concept which

in substance

is oriented toward:

our

products.

customers make the best

(d) Promoting the customer's
business.

promote

wider

use

of these

use

For example,

Run-of-Press color in news¬
and cooperate in
publicizing garments
using fabrics treated with our
textile chemicals.
In the months
ahead, companies will find that
supply¬
paper

ing
an

advertising

service

aggressive

months,

equally

marketing

important

program.

"products"

provide

the-publishing

opened nine hew

including

on-the-

and packaging

ink facilities in recent

completely integrated plant in
Caracas, Venezuela. It now
operates 39 such facilities
strategic markets in the United
States, Canada and

Latin

America,

tions for

area

tourist

the

various

industries, Sun

and present

specifically,

California
up

the

and

through 1960.
More

ALEXANDER

goals, we ex¬
anticipated

spot technical services for

recovery

areas

the begin¬

part of the

the

produc¬
decline in the

through 1958. Nineteen hundred
fifty-nine showed a sharp

in most

our

activity in

•

I must condition
my
remarks on two assumptions—no
long interruption in
steel production and no
prolonged rail strike in 1960.
Growth in most of our areas has
been steady
and, on
a
percentage basis, has not compared
with

others,

many

*7:^4'77

(a) Researching our customers'
needs.
(b) Developing and
supplying products and services
to fill these needs.

President, California-Pacific Utilities Co.

Fourth

operating rate
for 1960 is
expected to be about 90% of
capacity.
Despite the 1959 labor
difficulties, an optimistic atti¬
tude about the steel
industry is justified.
in

1960 will be

but

and

our

only

but also the

company

revenue

J&L, the nation's fourth
largest producer
operating at about 94% of capacity. Our

Capacity for making ingots

rates, but we are
operation could succeed

loans.

We have confidence that

the

At present,
is

money market

that such

ing areas—started

82.7%;

Treasury Bill

affecting appreciably the tight money
supply
high rates on regular commercial and industrial

Quarter

reduction in the

continuation of the
accelerated rate of
production, as consumers
strive to build up their
depleted inventories. There will
be some decline in the
third
quarter, and this will con¬
tinue in the fourth.
This is the
way we foresee steel
industry production by quarters: First
Quarter 94 5%*
Second

Third

available method by which
this

market operations effect
and

Re¬

likely to be eased. The monetary authorities
lessening reserve requirements or
by open

at about two
million tons.

95.4%;

Edwin E. Adams

In spite of lower
look forward to
7

1960

formulating

must

banking

activities

proximating .05%

;

year

plant obsolescence, and the need for
growth capital faced by all
industry.

for

lime

are

the

area

anticipation of continued growth. At the same time
acutely aware of the challenge presented
by
increasing competition, rapid technological advancement
with; accompanying
product
and

instance,

aggravate this extended condition.
flection upon the mechanics of the
commercial
condition is

economy.

these

Many of the industries

man¬

increases

local

velopment, acquisition

loan totals will

current

Quarter

comfortably

further

shipments by about 3.5 million tons
see

major bank

every

can

higher in 1960 than in 1959 or any previous
'/
777,: o777."

toward

potential

will sustain

high level that they have created
loan-to-deposit ratio which in the

case

The first half of 1960
should

strike

decorative

through 1960 and result in
record levels for the year. This
in turn should result in a

Consumption

including exports. This shipping
level would provide a
build-up in inventory of about
12 million tons.
Foreign steel imports are
expected to
reduce domestic mill

long

is that total loans have reached such

76.1 million tons.

inventory reduction from
15 million tons to a
critical
year-end level of 9 million tons. The
high point at mid¬
year is estimated to have been
about 26 million tons.
We anticipate finished steel
shipments to be at about
94.6 million tons in 1960
a

the

reasonable

seems now

steel, including imports, by
consuming indus¬
at

continuing upward pressure on loans.
Our principal concern at this time

nearly

148.6 million tons for 1960.
In 1959,
the industry produced
about 93 mil¬
lion ingot tons for an
average of
of its

tries

face

this

with

business

prices at the present time,
although the settlement with the United Steelworkers of
America is
unquestionably inflationary. The cooperation
which we are now
receiving from our employees and the-

Thus

result

the

of products

business

Corp.

Avery C. Adams

strike, it

assume

new

Chairman and President,
Jones & Laughlin Steel

We do not plan to increase

to
the

AVERY C. ADAMS

steel

and

President, Sun Chemical Corp.

maintained

rising volume of travel

the

NORMAN

order to turn

States and

business
Southern

products.;. A

production

that business

sure

■>.,

and

the United

soon.

look ahead to

finished

Overall, with the reservations outlined
,

steadily in volume during 1959. Since
this strong volume of business was

up, we

people in
good year in 1960.

tries,

sum

of'waste; products

into

the

dustries

fares will be eliminated

lumber

steadily increasing its output and payrolls.
our areas
except Southeastern California and
Nevada, livestock and agriculture are an im¬

derestimated the strength of the
up-turn in business that
had occurred. Loans, which we had
expected to remain
about level during the
year, grew

the

In all of

Calif.

article written for the Chronicle's Annual Review
and Outlook of January, 1959, we rather
an

Southern

growth
V,

utilization

went

'■> ^ 77\4--

in Northern California and

manufacture

we serve

California,

getting into
partially finished lumber

Oregon the trend

which

lumber producers are

our

4'-v7 ';77'7

same

complete

amined

the

Eastern

of events with

course

new
heavy equipment in the steel industry, the first
opportunity for these mills to operate at anything ap¬
proaching their target capacity of profitability occurred
in the early months of 1959.
This meant that 1959 was
the year that our Cleveland plant began to
operate effec¬

recreational

7.^',

is much the

batteries,

oven

construction, one to be built this year, and one
These will reduce need for purchased coke.
(4) Cleveland Works. A two-year modernization and

San Francisco,

benefit

under

1958.

Several lumber producers in
these

•

instead of plain
lumber.
These
trends all
increased local employment and increased
realiza¬
from raw materials.
These areas will also
experi¬
a
marked
step up in tourist: and

ence

ago

coke

Oregon will benefit
industries, plus a firmed up market

new

business.

Sinter Plant, and
These facilities, to be

new

;

products
tion

new

next year.

increasing

Electrolytic Tinning Line,

■'

.„

Continuous Annealing Line.

Henderson

mean

ten

...

the manufacture of finished

with most modern controls.

middle of

area.

More and
.

completed next year, will give improved control of prod¬
uct quality, and some added capacity.
one

the

Basic oxygen steelmaking

previously were shipped to Aliquippa from
Pittsburgh Works.
;
"
Weld Pipe Mills.
These two new ?mills
replace old butt-weld mills. They give added capacity
and produce high-quality small-diameter pipe at high

new

the

installing plants to use waste products for
producing hardbqard, chipboard and other
material.

the

speed and

.•

•

areas. are

the Tin Mill

iron

by the influx of

diversification in higher

Continuous

production
mines in the area, from -increased
tourist
from new small industries that have
located
,'.7 .;>•.

for lumber products.

Northern California and Southern

V'1:'

.v.

will

revenues

should

spaces

revenue

further

cargo

furnaces. These new facilities produce steel of high pu¬
rity and ductility at lower cost.
^
.
a 44-inch Hot Strip Mill provides skelp for the Welded
Pipe Mills and hot bands for the Tin Mill., This new
facility is an addition, not a replacement. Hot bands for

structures

now
open in Detroit and Pittsburgh
designed to accommodate the expanding fu¬
Many others are now in service, under construc¬

\777\v-"•

Aliquippa, Pa., Works.

(3)

multi-million

7*:

the

plant, competed late in 1958, represents J&L's

new

■(2)

^r-:>i

been

ture.

tion

all major highways

see on

;:\77/:

travel

new

dollar

have

expect to

can

'v V-7

important to the corporation's
priced specialty products.*

include:

industries

new

•'

business and

entry into the stainless sheet and strip markets, and isr

hound, the nation's largest intercity passenger carriei%
has its fleet of 5,600 buses operating more than 1,300,000
miles a day,
over
100,000 miles of highway routes.

Louisville, O., Stainless and Strip Division Plant.

(1)
This

are

Greyhound will record nearly 10 billion passenger miles
in 1960.
These passengers will travel in ultra modern
Scenicruiser
Service buses, enjoying the comforts of
air-conditioning, restrooms, panoramic windows and airsuspension ride. They ride with the safest drivers on
the road and pay the lowest fares in all transportation.
Along the East Coast
between Boston, New York,
Washington, Richmond and Norfolk
thousands are
now trying "something new" in
highway travel — the
Golden Greyhound.
This newest bus features relaxing
recorded music, and much roomier, widely-spaced seats

preparing to meet the challenge
movement of people.
For example, Grey¬

mass

1959.

from

'■:
Southern Utah will benefit from stepped

Our capital expenditures include many projects which
were completed in 1958, but did not really have a chance

old, who are the best prospects for bus travel. The
time, and increased spendable income, aie
also centered largely in the lower income groups moie
naturallly attracted to bus travel.
of

industries, and
area.

leisure

companies

population increases will be among the very young and

Bus

1960 estimate of over

1939 and is expected to be over 600,000 in I960.

very
new

1939 to its

Total employment was about 4o0,000 in

Thursday, January 21, 1960

Plans

are
underway for additional locaJ
manufacturing printing inks,
building materials,
finishes, textile chemicals and other

paints and
in

growing

services'

markets

which

available to

products

not

customers

areas.

For further market
program

quisition

enjoy

the

•,

penetration, Sun's plant expansion

being coupled

program.

now

in older
metropolitan-

with

recently

present
.

forward-looking
acquired

Continued

the
on

ac¬

Facile
page

Number 5918

Volume 191

■

Commercial and Financial The
Chronicle

•

•'

President Predicts Surpluses
In Fiscal 1960 and 1961
at

time when there
need for a
a

critical
Continued from page 33
high-energy fuel to
marines, was greatly diminished
provide an extra margin of
range
hv the successful
acceleration of for
high
performance
aircraft,
the much more advanced Polaris
particularly our heavy bombers.'
ballistic missile launched by sub¬
Continuing technical problems in¬
merged submarines.
volved in the
use
of
this fuel
Another example is the recent
coupled with significant improve¬
concellation of the F-108, a long- ments in
aircraft range
through
range interceptor
with a speed other
means, have now raised se¬
three times as great as the speed
rious questions about the
value of
of sound, which was designed for the
„cp

high-energy fuel

bombers

manned

against

mid-1960's. The
substantial progress/being made
in ballistic missile technology is
rapidly shifting the main threat
from manned bombers to missiles.
the

period of the

result, the

has

been

was a

program. As

of this

scone

project

declines.

Hence, expenditures for
stockpiling and expansion of de¬

...

of other im¬

portant programs have been re¬
duced from earlier plans. Notable
in this category are the Jupiter
and Thor intermediate range bal¬
listic missiles, which have been
successfully developed, produced,
and deployed, but the relative im¬

fense production

portance of which has diminished
with the increasing availability of

rials

intercontinental

Atlas

decline from

Amendments
contracts

also

history

program.

are

now

was

outstanding
being nego¬

longer required for stock¬

piling.

Arrangements
to dispose

under

way

excess

tives

technological fac¬
by the

This project

the

whenever

also

are

mate¬

stockpile objec¬
disposal will not

seriously disrupt markets or ad¬
versely affect our international

fuel

relations.

started

■:

free

VX-v-''

world

who

reached

now

prosperity

a high level of
recovering from
war.
Accordingly,

after

the ravages of

multilateral
expanded.

programs

At the

being

are

same

time; the

the

Bank

sell

can

its

bonds

private investors.
Last October the Governors of
the International Bank for Recon¬
struction and Development unani¬

mously

Development
will be

Bank.

International

Association,

Under

this

will

flexible

Bank

principle

which

closely affiliated with the

Association
more

approved

U. S. proposal for

able

proposal,

make

the

loans

terms

of substantial economic assistance

under

the

gram.

mutual

■

and

for

finance

international
estimated

are

billion \in

1961.

million

security.;pro¬
v.V

$2.2

This

the

amount

fiscal

offer

loans

the

under

its

repayable

for

1960,

program

States
and

the

mutual
whole

helps

developed
strengthen
free

the

world.

United

and

defenses

For

these

helps
the

purposes

obligational authority of $4,-

new

million

fiscal

acted

for

recommended

1961,

year

$949 million

an increase of
the amount en¬

over

1960

which ' $700
million is for military assistance).
Expenditures are estimated to be

$3,450 million,
million

(of

increase of $100

1960.

over

the Association, for use in
lending
operations, other member country
which

holds.

submitted

governments

The

the

early

member

this

year.

major

national

this

sistance

established

bursements

Development

established

the

trust

fund

to reimburse States

ures

for

want

funds

available

from

have

fund

been

established./

;

I urge the Congress again to in¬
the highway fuel tax by
one-half cent per gallon

crease

continue

the

Interstate

provision for membership will be

sirable

transmitted
the

the

Congress

Highway

1961

Construction Program

proceed

will?enable

with

Interstate

sistent with

$2,728 mil¬
trust fund

the

States

construction

System at

the

level

con¬

the

pay-as-you-build
principle established by the High¬
way Revetoie Act of 1956 and re¬
affirmed by the Congress in 1959.
Last

year

MEMBERS NEW YORK STOCK EXCHANGE

•

McDowell

ceed

the

construction

level.

diversion

and

DETROIT

STOCK

EXCHANGE

•

AMERICAN

EXCHANGE

STOCK

EXCHANGE
(ASSOC.)

year

have

made

excise

recommended

tem

fourths

SOUTH

CHICAGO

NEW

costs

among

available

1961.

electric

ANdover

•

MILWAUKEE

KANSAS CITY

GRAND RAPIDS

3-5700

MT. CLEMENS

TELETYPE
CG

generation,

that

I have

&50

tures

construction,

small. However, in the

Trading

Retail

fiscal year
1961
they are estimated to be
$300 million, an increase of $125
million
over
1960. New
obliga¬
tional authority of $700 million
is requested for 1961, an increase
of $150 million over the amount

Continued

loan

the

This

1960.

for

enacted

vide

will

Exchange

Exchange (Associate)

pro¬

essential

funds

Midwest Stock

American Stock

policy objective of
assisting in the economic growth
of the less-developed countries of
foreign

our

world.

free

the

Indianapolis Bond & Share

lending

BUILDING

•

120

E. MARKET ST.

ment

2-4321

In the past year

doubled

was

DEALERS

•

Over-Counter Stocks

Corporate Bonds
Listed Stocks

Mutual Funds

■_

Develop¬

planned

total

billion, including
the United

from

NEW YORK

BOSTON

States, is expected to begin opera¬
tions before the close of this fiscal
year.

Expenditures of $80 million

estimated

are

Member Midwest Stock Exchange

—''I

Investment Bankers Since 1912

CHICAGO

with

Bank,
million

$450

for

Monetary Fund in¬

Inter-American

The

resources

Bank

Development
that
of
the

by half.

creased

BROKERS

ment

Municipal Bonds

and

International

Investment Service

and

INCORPORATED

the capital

International

the

international

Reconstruction

•

being

increasing; the capital
organiza¬

tions.

UNDERWRITERS

countries

are

channeled into economic develop¬

INDIANAPOLIS 4, INDIANA
MEIrose

world

free

funds

INDIANA

Agencies

from

resources

the

CORPORATION

International

1960

the

fiscal

year1

the first installment of the

U. S. cash investment in the Bank.
In

addition,

$200

available,

guarantee

million
on

will

authority

made

the basis of which

MIAMI

fi¬

presented to each of the

New York Stock Exchange

expendi¬
have thus far been relatively
for

years

and

past two sessions of the Congress

MEMBERS

velopment banks. Because many
of these projects require several

appr<&-

Housing and Community
Development

and

the

future

Congress

for the ensuing conduct
nancing of the program.

industry, including industrial de¬

recommend^

tions will be made to the

for roads, railroads,

are

power

the

priate time, further

million. More than threeof
the
projects
it
is

financing

3, ILLINOIS

TELEPHONE

YORK

DETROIT

STREET

SALLE

en¬

highway beneficiaries will become

highway fuel taxes be increased
by lVz cents per gallon for a pe¬
five years to meet esti¬
expenditure requirements.
The Congress after months of de-

estimated 148 loans totaling some

$1,400

taxes

and recommendations

allocation

favor¬

for

de¬

July
1, 1961 to June 30, 1964. New re¬
ports giving estimates of the cost
of completing the Interstate Sys-<

1960,

commitments

pro¬

request repeal of

By the end of the
the Fund will

currency.

fiscal
M IDWEST STOCK

program

System to

higher

terms, often including the
^option, to repay in the borrower's
own

acted last year for the period

Federal payments of
lion from the highway

appropriate time.

tax

cents until June 30,1964. This will

able

Straus, Blosser

trust

and
equitable and proportionate pro¬
grams in every State have been

sources.

the

avoided,

order

other

that

kept

promptly

Fund

The capital is provided

in
By timely action and
planning however, potential fail¬

provide
capital
to
less-de¬
veloped countries, when capital is
not

reim¬

balance.

Listed & Unlisted Securities

time

could

fol¬

Loan

1957

plan had

States

security section
Economic as¬

discussed

construction

the

paragraphs in this section.

The
was

the States for future

had to be reduced and

message.

lowing

chapter

discussed

for the

mated

been

requested, the
has
been
rate

Legislation
authorizing
U.
S.
participation and making financial

riod

has

delay

apportionments

The

the

Department
and

the

desirable

permit

.f: The military assistance portion
this'program is carried in the
Defense

both

only

years.

program

below

progress.

slowed

and

stability
in
less-

growth

countries

under

member could provide to

currencies

revenue

roadbuilding

being prepared and will probably

security

promote

economic

result

ex¬

mainly

prior commitments.

Through

which

provisions

two

another

be¬
larger disbursements by
the Development Loan Fund un¬
der

contain

increase

and the failure to provide the full

amount of

draft charter of the Association is

cause

that the charter of the Association
will

enacted

cent for less than

$177

higher than estimated

penditures

U nderwriters—Brokers

than

charter, such

lay
1

pressing need for economic devel¬ in the
currency of the borrowing
opment requires the continuation,
country. In addition, it is expected

175

where practicable, so as to
minimize the delivery of mate¬

ballis¬

high-energy

1961.

tiated

illustrated

the

estimated to

$230 million in 1960

rials

The impact of

are

to $134 million in

tic missile.

tors

have

year

the
Most of the objectives for the
$4 billion for stockpile of strategic and critical
the force that had been planned materials have been met.
Re¬
—and the time period in which it ceipts of materials under
con¬
would become operational, it was tracts to promote
expansion of
decided to stop further work on defense production are continu¬
the project. Meanwhile, other air ing at a reduced
rate, as the num¬
defense forces are being made ef¬ ber of such contracts still in effect

the

friends

Expenditures

and Defense
Production Expansion

Finance

improve eco¬
nomic conditions
throughout the
free world. In
helping to improve
economic conditions, w.e are
being
joined in larger measure
by our

Stockpiling

and

The United States is
continuing
to support
programs to maintain
world peace and to

affairs

F-108 system—over

The size and scope

International Affairs

sharply curtailed.

Considering the high cost of

fective.

(287)

BEACH

page

The Commercial and Financial Chronicle

(288)

Thursday, January 21, 1960

Continued from

34,

page

National Cash

company

Corporation

industrial

fabrics

and

special

materials

developer

and

atomic

installations

energy

increase

and

military

needs.

acquired

Ampruf

Company,

the

for

manufacturer,

dyestuff

joint

ownership

aware

ahead

us.

solved

all

convinced

are

large

this

that

through

part

problem

gining for

;

would

S. industry competitive with , the,
nations
which - have made
such

keep

othev

adjustments:

hon

economists

Leading

ratner

have

detract from it.

than

early legislative action
v.

stated

that;

heartening.

are

Chairman of the Board,

far

Planters

this

prospects

National

American

country

better

Tenn.

concerned

tion

the

•

last

and

year,

course

will

appreciated^by

those

the

farmers.

who

come

year
V. J. Alexander

but, after
enjoy will be

year,

all,

proved

The

sound

further

which

are

the?

These

"programing'^ controls will
make decisions, in addi¬
tion
to
simple ^'on-off". selections,
which, involve compiling and sorting >
facts and-situations;'followed- by. au¬

steel

Board,

of;military

its

best

moral

year.

must

My confidence in

beliefs

tinued

but do

and

both

need for

been

great

today.

which

the

future

these

United

our

tasks and

things, the 1960's

can

progress

for

indeed be

Trust

day has reached staggering
this

the

re¬

risk

propor¬

and in

Added to both of these is
of transactions-of all

world.

C.Allyn

•:

number

one

representing

our

178 million

record

keeping is
information, more

be
a

people.

premiums, shorter work¬
employee benefit measures, the cost of
keeping
records has increased
along with volume.
dilemma

created by

these conditions, manage¬
ment in all
types of business is more interested in mech¬
anization of record
keeping than ever before. In 1959,
sales of office
equipment were up at least 10% over
1958.
By the most conservative estimates 1960
should
show a comparable
gain which would take the total
volume on the

industry over the S3 billion mark.
Equipment Industry is meeting the chal¬
lenge of the ever-growing mountain of
paperwork with
The

Office

the greatest

investment in

research and development in
During the past five years our own company
$60,000,000 in this effort, an amount which
represents a vastly
stepped-up program ahd is leading
consistent development of new
products.
The

its

history.

has invested

advent of electronics
has created
entirely ntew concepts
ot
speed and
economy in the field of record
keeping
and much of
the industry's research
activity is in this
SI 03L
The

past

year,

which

was

the

management

invested

duly

investment

moderate and

new

terest

of general
that

Anniversary

reflect

country's great

which is steadily gaining favor as

gas

industry are beginning to
"fabulous," because of predictable,

family formations and because
of

living in

overseas

of the

nations.

Despite continued

ica,

there

European

country

in¬
Hoyt Ammidon

trade

through

very

Common

expect

credit
of

to our economy,
the control of costs.

spur

some

further gains

competi¬

technological

in the containment of

We believe that

gains are being made through
foreign competition, the stronger stand
against highly inflationary labor con¬
advance in
technological and managerial

policies,

managements

tracts, the
skills, and Administration efforts for fiscal
responsibility.
However, we do not believe that the battle has been en¬
tirely won, nor do we expect any critical showdown in
1960.

Rather,

expect further limited gains in
slowing
cost increases, in gradual betterment
of work practices, and in efforts
toward governmental
fiscal responsibility.
We believe that our economy has
the strength to carry forward for a time
without com¬
plete victory on the cost question. We also believe
that,
given the continuation of sound fiscal and credit control
the

rate

wage

policies, a basic stability of the currency and price level
will eventually be restored
by technological progress and
coming larger additions to the work force.
We expect
security markets to maintain essential sta¬
bility in 1960, with normally wide price fluctuations and
with net changes
probably in the direction of higher
interest rates and higher
equity values. Despite wide¬
concern

correction

about the need for

after

period

great

political rumblings in South Amer¬
discernible desire to emulate the

Market,

barriers and

trade

with

each

with

reduction

significant
growth

economic

accompanied

resulting economic
other

inter-

progress

and, with. the

tion

previously a novelty in Europe, now is in great demand.
Automatic washers have been almost unknown
in Euro¬
pean nations, but the market for this
appliance now is

would be essential to
satisfaction of the
South America's

rapidly rising

States.

will

people in

of the '60's

rapidly developing.

will not prevent them. We fur¬
ther believe that the challenge of international
progress and to

one

In Europe there is an
insatiable "hunger" for Ameri¬
can-type automatic appliances. The home refrigerator,

offset to

higher

revolutionary

believe the rising living standard in
foreign nations will;
be to our overall benefit in the
immediate years ahead.';

these gains

Called

through

equipment.

w<ej

general-

expansion.

anticipated
will

rates

1961

and

spread
75th

normal

genuine concern that low cost foreign com¬
petition will seriously ruffle the U. S.
market, - but

■

We expect the de¬
a

market

source.

and
era

standard

and

construction

conditioning device.

noting the ;

gains

plan

heating

call the

strikes, that the
1960 will show gains ap->

residential

period

air

to vary,

and better ways

new

control devices and associated

supply of natural

prospects

crippling

inflation.

With higher wages, overtime

the

eliminating built-in human tendencies

new

There

significant

believe

Last year

written and
processed,
than 65 checks for
every

weeks and
In

cline

were

the

buying, auto sales, the
industries, business capital
expenditures, inventory
accumula¬

thr&^heer increase in the num¬
types handled in the business

than 12 billion checks

the

determine

consumer

years.

moving part, and is expected to be completely
cbmpeti-j
tive with conventional
compressor units. This device will
permit warm-weather utilization of this

of New: York

service

The number of retail
transactions increases sub¬
year, the number of checking
accounts,,
at 55 million, has doubled in
15

now

expect, after

expect

stantially each
more

will

proaching those shown in 1959.
S.

greater detail.

ber

and

available

economy in

of management for more

quickly available

banking

tion and exports.
upsurge

factors

employee records for social security,
unemploy¬
compensation, group insurance, hospitalization and

the demand

•

only,

Company

loanable funds.

vidual

various other purposes.
Another reason for the

trust

returns

changes in our social system, bring¬
ing with them the demand for indi¬
ment

free piston refrig¬
erant
compressor, it operates on natural gas, bottled gas
or automotive
gasoline, and is suitable for central home
air conditioning, office and other
industrial use, and for
automobiles. The remarkably
simple unit has

(1) the condition of the general economy,
(2) the state of confidence in the dollar, (3) the action
of the security
markets, and (4) the.
•
1 ;
:

it is

result

fundamental

new

funds in 1960:

The amount of paperwork required
in the operation of
any business to¬

part

misunderstand.

illustrate,

ammidon

States

New York, N. Y.

Four

•

;

Old jobs will be done in
use

civilization

■r

hoyt
President,

tions.

economic progress. And we
to the strengthening of the

oi} great and rewarding

intro¬

the gen¬

year and

service it performs. The function of
office equipment is to save labor and

The

cooking.

The trend toward

ourselves

ultimately depend.

decade

ever-increasing need for

security

re-dedicate

must

Demand for any product exists in
direct relation to the need for the

never

operations, and in-.addition, permits
holding a meal at exactly the desired
degree of "doneness"-without con-r

reduce costs.

able

forget

great

erally favorable economic outlook.

sults has

industry

responsible leadership in the free world, both in terms

upon

certain

during the

factors

indicating a bright future for the
are
a significant trend
toward "pro¬
gramed" controls for home appliances and a vast "hun¬
ger" by Europeans for automatic appliances which have
been commonplace in" the U. S. for
•
; •: V.;.,;;-;.
many years.vA-4:;; V-.
;'
be

long

by the industry, upon the new prod¬
ucts

of the American

the type of equipment manufactured

duced

output,

the

National Cash

is based

bt..'.',t.,:arden

allyn

logically antici¬

respect

re¬

people for protecting the dollar
erosion represents an important step
forward in the battle against inflation.
; V
Although we can view developments in 1959 with

combination of important factors, I believe
that the Office Equipment
Industry can
this

against

pate that 1960 will

Among

controls

rose to new
a

Thomas T." Arden
completely *
controlled home equipment will continue to develop, as it has in the
automating of industrial
machinery, replacing personal supervision of routine

Chairman

Because of

satisfaction, we cannot afford complacency toward the
future.
Strong efforts, under conditions of prosperity,
must be made to preserve a balance in the
budget and
to provide whenever possible for retirement of
part of
our
huge public debt. We must continue to exercise

season

President, Robertshaw-Firlton .Controls Co.'. *',v.

industry: - The united support for.
prudent Government financial poli~~

concern

help to this part of the country and,
turn, to the banks and other business people.

conform

program

will change again next year, as it
has during the past several years as
we cannot outline the
program from

during the coming decade.

Robert B. Anderson

the farmers
the

strength and resiliency of
enterprise economy was
'

the special problems of investments

and of banking, we expect 1960 to be an excellent
year
our field and to
point the, way to greater opportunities

/ cies, which pointed to the achieve-; tomatic execution of -.the complete
ment
of
task.
An example is a new control
a
balanced
budget, was
■*
system for gas range ovens recently
heartening evidence of a willingness
introduced by our firm. A single dial
the disciplines of economics that have;
handles starting and stopping of all
in the past.
The growing and genuine

the

in contact with ?■'

Probably

achievements.^;The

disruption \of*; output
'

despite continuing problems regarding
stability, inflation containment,-the interna¬

summary,

tional position, and

.take satisfac-

records .despite the impact of.

support the Goverrunent will render
and

can

employment and income

My understanding is that the 1959
cotton
crop will
be much higher
than

economic

further / demonstrated

;

of very favorable weather conditions.

;V;§

free

our

people

their

markable
:

than

they have been for
several years. From the standpoint
of agriculture, the farmers have en—joyed an excellent crop as a result •

'-|
'4

the

part

much

are

Bank, Memphis,

strong business trend and in their
integrity. *

contribution to monetary

anderson

and as individuals, handle our affairs
responsibility and prudently.
In
looking
back
on
1959, - the

Union

I960; marks more than the, beginning
new
year.
It is the start of a decade that can bring
great rewards to the freedom loving people of this nation
and
throughout the world.
All that is required
to
realize our truly breathtaking op¬
portunities is that we, as a nation

companies to offset higher costs. However,
bankingprofit gains during a period of higher rates are offset
by
security losses and the greater difficulty of
obtaining
deposits. The greatest benefits from adequate rates lie

January,

Present indications

Alexander

robert

trust

Secretary of the Treasury

liberalized depreciation schedules would increase Federal
revenue

securities,

helpful to the management of investment accounts.
Higher interest rates, though still moderate after allow¬
ing for the impact of income taxes, will help banks and

in the American ;
.

the

expect both increased dividends and higher aver¬
age interest rates during 1960. Increased returns will be

Such forward looking legisla¬

manufacturing facilities.
tion

decade of great advance
our people.

this

that

to be an excellent be-

prove

confidence

believe

in their reflection of

depreciation schedules which would take into considera¬
tion the effects of inflation and rapid obsolescence of

industry

will

1960

tconorhy and the status of

can

modernization

believe that

late interest in foreign

automobile, the rising level of
capital expenditures anticipated
to be 14% higher than last year, all point to a year of
full employment and record business activity.

growth-minded companies, Sun is acutely
of increasing capital needs in the dynamic decade

1960.

amount

steel and
income, and

consumer

British company, Williains-Ansbacher, Ltd.

this

over

that

future will gain
during
confidence, in addition to
supporting domestic investment values, will also stimu¬
1960.

particularly

special dispersed pigments, and entered into an agree¬
ment with Williams-Hounslow, Ltd., British pigment and
new

believe

Looking at 1960 in terms of general business condi¬
tions, I believe it should be a year of exceptional op¬
portunity. The favorable outlook for basic industries,

Paint Co., Pennsylvania Color and
Inc., a leading manufacturer of

Chemical

ables

botn domestic and

During the past year it also

classified

by cost and price inflation, and despite the imponder¬
of international, political and labor
conditions, we

proximately $420,000,000 representing a record year for
overseas.
We anticipate a substantial,

and laminated films and
tapes as well as

decorated

and

for

Jersey,

New

Paterson,

manufacturer of unique coated

United

Here, too, equipment utilizing automatic controls

resulting rise in

general living standards.

There

that
But
and
new

the

realization

industry, ,of course,
things can be made for less money overseas.
long as there is continued emphasis on research
development by American industry—development of
a

lot of

products

and

sophistication

present

products—

there is little intimation that our industrial
system can
be seriously disturbed. The controls
industry,'fortunately,
has
been
foremost
in
research

and

accelerating
development.

its

investment

Improved

efficiency of its manufacturing facilities is
equally important to the controls industry's growth. With
the completion of a new
plant at New Stanton, Pa., in
mid-1960,

will

have

the

newest

and

modern

most

plant system in the industry. Even
though the New Stan¬
ton plant is
very large and not yet complete, Robertshaw
probably will have to build another
equally large plant
to produce its
recently announced free piston refrigerant

compressor unit.

Business for

>
.

1960

is difficult to predict, because most
first-quarter activity still is in the lap of the "steel
gods."
I have noted
increasing

optimism, however, that this
continuing very serious situation can
rapidly be resolved
without further
dampening of the economy. I personally
am
very optimistic for business
prospects in 1960 and
the years

immediately ahead.
-

Continued

page

Number 5918

Volume 191

The Commercial

...

and Financial Chronicle

(289)

ing recent

president Predicts Surpluses

funds

creased

Continued from page 35
comprehensive program of leg-1

the Government's
community develop¬
programs.
Some of these
for

islation

reach

ment

the

rproiumendations were enacted in

Act of 1959. This
legislation will be requested

past

of this

growth, the insurance re¬
the Corporation cannot

levels

commensurate

mounting

without

Housing

the

over

continuation

insurance

premium rate.

am,

not

with

liability

appropriation action,
'

<«

Public Housing Programs

end of fiscal year 1961;
500,000 * Federally-aided

By the

about

public housing units will be oc¬

phasis is being given to projects
be constructed in the
The'1959 act au¬
37,000
added units
of

which will
thorized

be'available

housing,., to

allocated.
Accordingly,
additional
authorization
is
until

Increases of $18 million
expenditures result pri¬
marily from rising Federal con¬
1961

tributions
under past

authorities

local

•

/; V. ,'.!v

contracts.

the

extend

on
a

provements.' This program, which':

institutions.

makes:

Savings

Insurance

The
and

loan

and* Loan

Corporation
of

accounts

associations

savings

insured

Savings and Loan In¬
Corporation
have
in¬

surance

sales

fluctuations in the de¬
insurance dur-

Sharp

mand for mortgage

The

direct

stocks

assist

small

will

property

tinue. In order

also

Very

loan

pro¬

little

enacted.

con¬

and

cannot

solved

oVfernight.

session

this

applicable
The

that

fact

effect

the

made!

cannot

before

1961

crop.

significant

any

would

budget

delayed until the fiscal year 1962
the need for prompt
action at this session of the Con¬

underlines

gress.

Authority

additional

bring

land into the conservation reserve

expires after the

1960 crop year.

Legislation is proposed to extend
this
authority through the 1963
and to expand the pro¬

year

crop

limitation

basic1

the amount of pay¬

that

ments

the

increasing

gram

in any

be made

may

from $450 million
to $600 million. Specific authority
will be requested for the Secre¬
calendar

year

tary of Agriculture to give special
consideration, in allocating, con-,
servation
States

funds, to those
regions where curtail¬

reserve

and

other

wheat or
commodities
is

production of

ment

surplus

long-range

with

consistent

Continued

the

con-

page

Veterans

terminates July 25,

and

1960,

asking

for
At

authorization.

further

no
that

LISTED and UNLISTED SECURITIES
*

time, over $1 billion of loans will
be outstanding, and the program
will

have

loans

provided

150,000

over

There

veterans.

this

Markets

Active

Local

all

including

Securities

CHRISTIANA SECURITIES

longer-justification for continuing

G«vcriiiiieiit-Miiiiicii»al-Coi'|»ornte

In'fact; wheat legislation Enacted

was

that

expected ,t6 rise
bushels by

billion

1.4

Adminis¬
tration, which has been extended
the

gram

several times,

INSURANCE STOCKS

program

recommend

and!
of!

carryover

would

facilitate small

of that

and

victims

1960,
an
amount
that
provide for more than two;
years
of domestic ^ consumption!
without any additional production.!
/ The wheat surplus problem has f
been a long time in the making i
July

businesse:

fair share of Fed

Agreement,

almost

the

currencies,

wheat

through

Wheat

foreign

needy

•

housing

for

efforts

our

high level, but
obligational authority i
a

the Federal

price

realistic basis.
continuing to

abroad

wheat

International

the

spite

are

disaster
people. The

obtaining

surplus

move

eral Government procurement and

major

on a more

now

wheat

put

grants

Federal

rise

important

urgent

Stocks of wheat

outstanding loans will increase

Efforts
in

im¬

home

supports

recommended because repayments

authority for:

loans

new

Particularly

re¬

quested.
in

less

loans

this

Administration

will continue

en¬

;

Other

Business

give

legislation

future.

public

cupied and an additional 125,000
units will be under contract for
Federal contributions. In the allo¬
cation of new contracts authorized
in the Housing Act of 1959 em¬

hear

enactment

contribution :to
At the same time, the
statutory modernization of existing homes, business financing, the Securitie
Act of 1933 -should be amendeo
goal of1 a ?reserve' equal to* 5% would otherwise
expire on Oct. 1,
of such accounts and
to extend the provilege of sim¬
borrowings I960.;
^
Ji!?exceeds potential needs and should
plified filings to a• wider range
Last y^ar legislation was rec¬
be reduced to 2%. - In
of security issues. ; ••
addition, ommended to
•,/ ;:
•provide some flexi¬
the Corporation should be given
bility in maximum interest rates
authority to borrow from private
on mortgages originated under the
sources,
both • to
increase
the
Agriculture and Agricultural
housing loan and guarantee pro¬
available
sources
of
funds
to
Resources
grams of the Veterans Adminis¬
levels adequate to meet any tem¬
In the fiscal year 1961, Federal
tration and under certain-mort¬
porary
borrowing needs and to
for
agriculture .will
gage
insurance programs of the programs
reduce1 its potential dependence
Federal Housing Administration. again have a heavy impact on the
upon the Federal Government.
The action taken by the Congress
budget, . primarily
because
ol
was inadequate, and some of these
continued high' agricultural pro¬
Insurance of Private Mortgages
duction and the past unwilling¬
programs are now: seriously ham-,
The
mortgage insurance pro¬
the
pered by. their inability at present ness of
Congress to make
grams of the Federal Housing Ad¬
maximum interest rates to attract appropriate modifications in the
ministration will continue in 1961
adequate ; private.: capital.. :; The long-established
price
support
to underwrite a substantial share
Veterans
AdministrationU should laws. The longer unrealistic price
of the mortgages on residential
be given the same flexibility to
supports are retained, the more
housing.
While it is. difficult to
adjust its interest rates to market difficult it will.be to make the
forecast mortgage
insurance re¬ conditions which is now
possessed adjustments in production needed
quirements, the general mortgage
by the Federal Housing Adminis¬ to permit relaxation of Govern¬
insurance
authorization
of
the
tration in its basic mortgage in¬
ment controls over farm opera¬
Federal
Housing Administration
surance, programs.
In addition, tions.
:
"■:
now
appears
to be adequate to the maximum
interest
rate
of
Last
meet demands for# mortgage in¬
year
I proposed to the
4% %
oh insured mortgages on
surance
until the "next Congress
Congress urgently needed legis¬
armed
services
family
housing
lation relating to price supports.
is in session.
should be removed. "

;

insured

businesses.

ex¬

insurance

the

recommend

Small

ex¬

demand

the budget estimate. ^
Legislation should also be

1% of the share accounts and bor¬

rowings

ceeds

exceeds

reserve

time

for such

when' actual

penses

acted

the

To correct this

of additional income

accordingly,

force | until

should be sub¬

programs

for these

available

problem.

appropriation language
is being requested to permit use

effect

for the authority necessary
continue important existing
programs and provide necessary
flexibility in interest rates.' The
authorization of additional funds

matter early consideration.

situation,

store

ject to

made

recommending legislation to re¬
the higher premium rate in
prior to 1949, to remain in

only'

Congress

personnel
act
limita¬

meet this

increase in the present

Act of 1958 will continue in 1961.

the

appropriation
legislation previously proposed to
tions to be inadequate in periods
the
Congress to encourage the
of heavy demand to provide the
formation
of -additional
invest¬
staff
required
by
the
Federal ; ment companies by liberalizing
Housing
Administration
for the authority of these
companies
prompt service on applications. thus
expanding
the
supply
of
Supplemental funds are usually private capital available to smali

serve

housing and

year

fivefold

With

years.

rate of

for

under

In Fiscal 1960 and 1961
a

have caused

years

available

DELAWARE BANK STOCKS

readjustment program.

Mortgage Purchases by FNMA

Federal

Syndicate

Mortgage Association to
borrow from the Treasury to pur¬

Trading

authority

The

Securities

—

Underwriters

the

■—

assistance

Brokers

will

program

hausted during 1961.

John C. Legg & Company
Established
*

1899 ;
■„

Members

•.■

New York Stock
Exchange

•

•*!.

•

'•

•

"•

;

American Stock Exchange

(Assocty

this

NEW

BALTIMORE

Midwest

program.

;

YORK

Special assistance for these

Bell

•

American

Exchange

Chicago

Exchange

Stock
Board

...

Exchange
o)

Trade

;

Exchange, Inc.

WILMINGTON 99, DELAWARE

Del. Trust Bldg.

Bldg.

Telephone

mort¬

Stock

members:

Commodity

Nemours

housing for the elderly.

COMPANY

and

Stock

the

and

York

New

renewal areas, op. housing for
relocation of ^fusplaced families,

Philadelphia-Baltimore Stock Exchange

Dept.—Hugh C. Wallace

The additional
funds will be used chiefly to buy
mortgages on -housing
in urban
for

LAIRD

to ap¬

propriation review. An additional
$150 million is requested for 1961

Dept.—O. Chester Jones, Mgr.

I am recom¬

subject

O'Connell, Mgr.

ex--

which would
increases t in au¬

future

permit

Dept.—^^11

Research

mending legislation
thorizations

Miller, Mgr.

Dept.— Duncan

Municipal Bond

special

mortgages under its

chase

Dealers

National

Telephone 6-7741

6-7741

& WL 486—Private Telephone to New York Office
New York Office 61 Broadway—*-Telen hone BOwling Green 9-4900
Teletype WL 89

is intended to be transi¬
tional', and an increasing propor¬
tion of total financing should in
the
future
be
obtained i from
gages

With annual fi¬
of
$1 billion already in
sight for
these programs, the need can be
met only with the full and active
support of local communities and
private financial institutions.

private sources,"

nancing requirements" in excess

UNDERWRITERS

•

DISTRIBUTORS

DEALERS

Corporate and Municipal Securities

the

purchases
Active Markets

MEMBERS

Expenditures

STOCKS

and

million

$975

—

New

York

Stock

Exchange

Members

—

American Stock

Exchange

(Associate)

Philadelphia-Baltimore Stock Exchange

1961.

CHARLES & CHASE STREETS, BALTIMORE 1,
Telephones: Baltimore—LExington 9-0210
,

Carl M. Loeb,

MD.

New York—WHitehall

Bell System Teletype—BA
Direot Private Jt ire

New York

270

Correspondent

Rhoades & Co.

will

3-4000

NEW

"
-

for the addi¬
purchases of the

Small

:i:

• ,■

i. M

•

Business Program

financial as¬
sistance to small businesses under
The

the

increase

Small

Business

;

EXCHANGE

COMMODITY EXCHANGES

—

COMMODITIES

IN LOCAL SECURITIES

Investment

120

OFFICE

Bell

BROAD

BROADWAY

Teletype NY 1-1243-49

PHILADELPHIA NATIONAL BANK

—

AND

CHESTNUT

STS.

Telephone—LOcust 7-6226
DOVER, DEL., OFFICE

preferred stock of the Association
required to support the mortgage"
purchase program.
i'

BONDS

YORK

PHILADELPHIA OFFICE

necessary

Treasury

—

Telephone—BArclay 7-3500

purchase of common stock by

STOCK

DELAWARE

Wilmington & State of Delaware Bank Stocks

mortgage sellers.
Budget expen¬
ditures of $50 million, however,
tional

STOCK

SPECIALISTS

purchases will be almost
wholly financed through the sale
of debentures to the public and
the

YORK

99,

8-4241

Christiana Securities Co.—Common & Preferred

These

Mead, Miller & Co.

OLYMPIA

purchases

for such

estimated at $1,047 million in

1960

WILMINGTON

—

NEW

PRINCIPAL

OTHER

fund

are

BUILDING

TELEPHONE

Association's

the

PONT

secondary market operations trust
will continue at high levels.

Securities

in Local

mortgage

time,

same

Laird, Bissell & Meeds

SALEM, N. J.,
SALISBURY, MD.,

—

225 SOUTH STATE

STREET

OFFICE—160 W. BROADWAY
OFFICE —130

EAST MAIN

STREET

ZURICH, SWITZERLAND
<

DAY, STODDARD
44

WHITNEY

& WILLIAMS DIVISION

AVE., NEW

TELEPHONE

HAVEN

SPRUCE

7-6851

CONN.

BLDG.

The Commercial and Financial Chronicle

(290)

Contini\ed

from page 36

The construction

factor in

GUY

1960 as increases in non-resi¬
dential activity and repair and modernization offset a
decline in new home building. Gains are being" projected
in 1960 for commercial, industrial, institutional and re¬
ligious building.
Repair and modernization expend¬
itures are likely to advance in 1960 as families forced to
withdraw from the new home market because of the cost

AVERY

President, Acme Steel Company

Any forecast of business conditions in the steel industry
during 1960 must be qualified because of the uncer¬
tainties
the

the strike situation at
statement was being prepared.
We have just witnessed the close
of
a
year
which was a study in
shocking contrasts.
It was a year
reduced
to
a
productive period of
only 7^2 months by an industry-wide

existing with

time

this

regard

strike.

unavailability of mortgage money decide to expand
refurbish their older dwellings.
While the total demand for building materials and
flooring products in physical terms may show only mod¬
and

est

will

solution

felt

for several
first

half

Consumer

come.

achieving all-time sales records
consequently,
were
earnings

and.

exceptionally

was

brought the

•

companies, however,
statistics of the first half of the year
of

reports

rosy

back

into

down

steel

by the strike recorded

realistic

focus.

All

the

companies

shut

sharp drop in sales which
limited by their small inventories at July 14. And

were

they all reported substantial operating losses.
The industry quickly reached high production shortly
after the Supreme Court injunction brought a
temporary
halt to the strike, but it is doubtful that earnings in the
fourth

quarter were satisfactory.

Against such
the

backdrop, and with

final settlement

labor

controversy not yet accomplished
written, it is particularly difficult to

being

forecast
We

what

the

know

1960

year

that

hold

may

this

clearly

in store for

us.

backlog and rate of
order bookings will permit full or
near-capacity opera¬
tions in most areas of our business during the first half
of 1960. Beyond that, we are
reasonably confident that
the demand

for

the

half

second

into

our

steel products will be strong during
1960
and will continue favorably

1961.

The

impact

settlement

upon

earnings

our

cannot

with

measured

labor

contract

accuracy

this

time.

Assuming, however, that production is not again
interrupted by a continuation of the strike, it is probable
that

earnings in 1960 will be

than

double

oi 1959.

those

iV'-v

There is special reason for optimism in that direction
for

Acme

Steel

problems

Company in

recent

years

have

experienced in

steel

needed

the

One

1960.

has

been

the

major

our

difficulty

purchase of the semi-finished

manufacture of

diversified line
products. Steel shortages and premium market
prices have had the effect of stifling our opportunities
for corporate growth.
In

western

hemisphere.
facility, which has an annual rated capacity
450.000 ingot tons, will produce a sizable share of

This

our

quality

steel

other

requirements

effect

and

pared

with

the

substantial

purchase

1960.

cost

will

reductions

com¬

steel

semi-finished

improve
from

producers/
J.

fairly

Still

American

economy stands on a
heralded decade of the Sixties.

much

erating

family formation

well

further
our

and

Ahead

optimistic

generally

predictions

that

will

lie

expanding

rising productivity, which
improved living standards
growing population.

the

accel¬

markets

assure

still

deserve

our

attention,

look

ahead.
First, is 1960
beginning of a decade
terrupted progress and,
the

what

to the first

anticipate
business

further

activity

proachmg
in 1959.

those

gains

during
that

were

mark

trend for the entire decade of

overall

depend
work

r**

business

attained

some

J. Backstrand

spending reflects
programs

one

deferred when

was

recently depressed and, on the
other, the
provision of facilities to
meet the requirements of
what
some have
called the
"Surging Sixties."
The
re-establishment of normal
inventory positions in
Key
areas

•

added

second

factor

real

strength,

particu-

^lrs* ^
I960. When inventory demand
rising business orders for
capital items and

RPrvhLfx??ndmg Demands of consumers for goods and
inde d
Seneral business picture becomes bright

front,

the 1960's.

question,

the

actual

realiza¬

willingness

aggressively
such

responsible people to
and, wherever possible,

reduce

major

impediments

to>

national

our

engines. The industry will be financially
further increase during 1960 on the

any

servicing and handling them.

The outlook, then, is for even
narrower profit margins
than the industry has been forced to subsist on for
the

past few years.

1958, when the first pure jets went into service, the
profit margin for the domestic airline industry was down
to

approximately three cents on the dollar.
shrinking process continues.
the industry can continue to maintain forward

The

How

momentum in the face of such paper-thin profit
is a sobering question.

margins
Many investors, including finan¬
shy away from any industry
which offers such meager profits.
/
»
/:<//.;,.
; Can the airlines, individually and as an industry, over¬
come these problems of the Jet Age?> Can
they continue
to hold the line against
expenditures that increase in
cial

institutions

tend

faster proportion than income? '
'
- •
■ v
The final answer may lay at collective
tables.
The airline

ness,

lar

are

' :'

bargaining

industry, because of the nature of its busi¬
sensitive

industries.

levels

wage

than

Approximately 50 cents of each

most

other
dol¬

revenue

paid out in wages.

When that is compared with
narrow profit margin earned for its shareholders
by
the airline industry, it becomes
clearly evident that the
cost of wages represents the razor's
edge between profit
the

loss for the airlines.

Increased labor costs and the threat of work
stoppage's
implied at every bargaining table have created a sword
of

Damocles

the

over

airline

industry.

that kills the Jet-Age golden

sword

It could

the

goose.

Responsible labor leaders must exhibit more business
and a more mature approach to some of
problems set forth herein if airline management is

statemanship
the
to

break

through the problems imposed by the

air

new

age.

Their
the

attitude, in short, largely will determine whether

airline

during
force

can
surmount the problems and
challenges
1960 to keep the industry a vital and
dynamic
the nation's progress and
economy.

as reckless spending
at all levels of govern¬
requiring the continuance of tax rates at levels

progress
ment

that

diminish

required

incentives

for

and

prevent

FRED

capital formation

short-sighted labor-management
that lead to repeated price
increases, and
all, the creeping tendency to turn to government
"something for nothing." These are some of the

agreements
above
for

factors that lie
flation and
nancial

roads

such

familiar

problems

in¬

deterioration in

our
country's external fi¬
foreign competition makes new in¬
American industry shackled
by government

position

restraints
the

back

and

labor demands.

The

promise of

1960

products in

■

The

business

high in

the

been

Free

about

-rest

the

of the airlines
during 1960:
traffic; heavy economic turbulence

headwinds.
Airline

addition

will

otherwise

■<.

show

substantial

normal

increase

and

over

traffic

scale

industry.
,/ At some point this

(1)

fare-,

the

competition

the

than

over

any other industry, face
and above
those of other
/

Taxes, not necessarily corporate taxes of the
type paid
by most industries, will call for even more
midnight oilburning in airline business offices next
year.
As long
ago as 1958, the most recent
year for which full figures
are
available, the airline industry paid out more than
total

Continuing
reduced

net profit in aviation

Fred W. Bartlett

severely/

already

an
*

sizable

scale, in

capital investments, even if
time of reduced profit margins.

Rising
main

Misunderstanding of, and

wotild

G. T. Baker

re-equipment

problems

competition
industry.

(1)

stated before a Congressional
Sub-Committee
time ago, "If the scheduled
airlines were permitted
to carry at
published rates and fares, the one billion tonmiles of cargo traffic and the
400 million ton-miles of
passenger traffic handled by MATS over
airline routes,
they could accelerate and expand their

of its

sharpening

costs

and

percentage depletion.

was

unique tax
industries.

surplus

the

threat

inflation.

further

political problems—often inseparable from
the economic difficulties—embrace:

receiving from MATS, the Military
Transport Service that is
virtually a global airline.

runs

States, / and.

tonnage.

curtail

gasoline

(prior to
jets) and oil taxes, or a total of
$25,000,000. .The jets and
prop-jets gulp down fuel in awesome
quantities—about
four gallons of kerosene
to one gallon of
gasoline con¬

oil

consequent attacks on,
The reduction of the 21Vz% rate

exploration

the

United

States

and

eventually lower the level of reserves which this coun¬
try has available and which it needs for its own security.
(2) Continued Federal regulation of the wellhead
price for natural gas under utility-type controls which
have

proper

place in such

competitive risk activity.

(3) Certain features of the oil import regulations, such
as government
surveillance of prices in a strongly com¬
petitive industry and the inequities involved in the
bases for

allocating import quotas.

are

Airlines, perhaps

resulting from
producibility of

(4)

affecting the nation's

programs;"

the

problems

The

num¬

has

oil, excessive refinery

competitive

management however, faces these

lies

oil

political

peculiar

economic

United

never

ber of passengers must be
wooed and
Increased coach and other econ¬

problem

the

the general

(2) Slimmer profit margins, stem¬
ming from oversupply and from

jets will

astronomical

largely

world-wide

tanker

capacity,

effects
on

activity,

Oversupply,

excess

the

lift capacity than all other
types of transport aircraft. To meet
this

the

economic

prime

(3)
year,

oil

include:

crude

ment, however, demand new-market
and

The
new

The enormous
capacity and sched¬
ule performance of
Jet-Age equip¬

offer

level

for

by about 4%

industry.

growth accelerated by jet equipment.

programs

1959

over

World, about 7.5%.

protracted steel strike

.*y.;_--w

travel

1959—an

increase

4%; the increase for the
Free

problems
-

outlook

revenue

will

States and by about 7% in the remainder
World.
The domestic increase in 1959 has

been beset by economic and

BAKER

President, National Airlines, Inc.

half

1960

in the United

years

are

BARTLETT

Socony Mobil economists estimate that demand

and

beyond will be realized to the extent that we
prepared to grapple realistically with our
problems.

Chairman, Board of Directors
Socony Mobil Oil Company, Inc. ,Wv,v/;/v'g.

growth,

some

Capital

resumption

second

the

upon

eliminate

1960-ap-

tics for

and

wide

Meanwhile, the industry is in the midst of a vast reequipment program which has already reached a cost of
$3 billion for jet and jet-prop equipment plus the logis¬

tion of the unprecedented
potential of our economy will

Air

expenditure surveys
suggest that business investment in new
productive
facilities will expand
considerably in 1960 providing a
substantial stimulus to
employment and incomes. The
renewed expansion in
the

the

Another major
schedules airlines

now

hand

nize, however, that despite the progress that has been
made in
taming the business cycle, it is still a phenome¬
non
of our free market
economy.
In terms of the first
question raised earlier, then, it would seem unwise to
project an uninterrupted and steeply rising business

economic factors that are
adversely
sales in the world's markets.

secondly,

capital

1960.

across

by economic millstones in the form of
mounting taxes,
climbing maintenance and operation
costs, and the de¬
manding unrealistic posture of labor leaders—the same

unin¬

question,

is foreseen for

strength apparent

travel market. Airline

major obstacles lie in the path
expected progress?

answer

closures

for

formidable^challenges during I960 heavily handicapped

of such

through good years and
virtually all types of

growth

services, more beguiling vaca¬
tion
packages must highlight the
industry's drive to corral the mass

are

mover

omy

prime

it does appear that the American
economy will start the
decade of the 1960's on an auspicious note. We
recog¬

Turning

vulnerable

fuel tax front.

won.

being made for the 1960's and are
drawing our plans accordingly, two.
questions
stand
out
prominently

which

steady

much

as a

history of the

threshold

While
the

rates

months

result, the packaging industry has

further

containers and
With

structure re-analysis on
before required in the

BACKSTRAND

President, Armstrong Cork Company
The

bad.

development

for

enjoyed

new

own

importance of the package

of merchandise.

mid-1959,

shortly before the steel strike began,
operations in our new $35 million plant
which produces basic steel
by a process using hot blast
cupolas and oxygen converters for the first time in the

the critical

started

our

of steel

the next few

over

advantages to efficiency-minded, quality-conscious man¬
ufacturers, should be clearly greater than in 1959.
/; Mounting competition for the consumer's favor has
led American business managements to a realization of

present

our

rapidly

recover

their inventories

would occur.

goods

maintain high levels throughout the year.
Ac¬
cordingly, the market for industrial goods, and particu¬
larly for-those
materials
that
offer
demonstrable

\yere

build

against the strike they felt certain
quarter

and

that this

customers

Third

There

expected

disregard the
high level of business
motivated by the desire of steel

/fact
Guy T. Avery

good.

;

chose

who

some

durable

sumed by piston

quality

production, as well as the
output of machinery, mobile home and office equipment,
hampered in recent months by metal shortages, are

1959, steel
companies almost without exception
were

trends

previous year, recent

the

over

items with unique func¬
tional and esthetic characteristics will gain sj^Jl further
acceptance.
- "
• /•.
"
•'.//'.• *••/'

national

the

years

gains in 1960

suggest that premium

Its events and their ultimate

economy
In
the

industry may prove to be a neutral

the economy in

Thursday, January 21, 1960

(4) High taxes
to

bear

gasoline which

disproportionate share

•

■

forcing motorists

are

of the total tax

burden.

(5) Special-interest pressures for further government
intervention in the form of, for
example, end-use con¬
trols on fuels and
arbitrary regulations on shipping.
Such economic
distortions would limit the consumer's
freedom of choice and raise his
costs, for the benefit
of

favored few.

(6)

Political

(and

economic)

instability

countries.

(7)

The

growing

consuming

pressure

countries

beyond

efficiency.
industry for

some

these

time

eased

by rising demand.
enough, stem• from the
owned

oil

the

many

refining facilities in
point of economic

Most, if not all, of

raw

for

companies

materials

and

the

problems will

come.

But
very

Some

many

will

with

least

the
be

of them,

ironically

the

privately

success

assuring adequate supplies of
refined

products

Continued

that
on

people
40

page

Number 5918

Volume 191

The Commercial

aiicl Financial C

ronicl^

President Predicts Surpluses Kraisr will be
n sluing portion
1

T"V

f\ n r\

financed

In Fiscal 1960 and 1961

and

'vilion

in't

transmission
and
distribution • wiU be a bottleneck for shipping
facilities. More than one-half of on. <he Tenriessee River. Approthe total Power sales by the REA prlatj°"s are therefore ;recomsystem are made to rural Indus- .:n;.e"ded..io/1961 to .begin contrial,- recreational,;., andt other Ruction of a new lock at Wheeler
non-farm customers. These nonaln--v

Continued from page

production-adjust-

The
rental
rates
Sed to induce farmers to wxtndraw
cropland from- production
goals.

conservation reserve deprospects from farm

under the

which in turn are a
reflection of the I levels of price
caoDorts.
Therefore,, the, future
authorization for the conservation
reserve
program should
not be
increased above the 1960 level
unless needed price support legislatj0n is enacted for wheat.--Estimated
expenditures
f o r
agricultural programs
in fiscal
1961
are
$5,6 billion, which is
farming

the current year . but
$907 million less than was spent
in 1959. Total new authority
to
incur
obligations requested for
for

mate

agricultural re1961 is $4.6 billion,
This amount includes $1.3 billion
to restore, to the extent necessary,
the
capital impairment
of the
Commodity
Credit
Corporation
resulting
from
previous
price
and

agriculture
in

sources

tional

programs

meet

needs,

are

recom¬

particularly

last

the

strides

for

years

great

have

been

made

security, welfare, and
fields.
The
Secretary of

Health, Education, and Welfare is

these

and

make

improve¬

information

ments in current data. Obligations

in the social

health

various agencies for
1961 will help close
significant gaps in our statistical
in

planned

the fiscal year

the

several

forward

and'

na¬

important

education and labor fields.

users

than the esti-

$510 million more

new

mended

and for formulating public
private1 policies.
Activities

omy,

in the various
the budget
are
estimated at $62 million/ in¬
cluding $20 million for the decen¬
nial census and other periodic sta¬
purposes

functional categories of

tistical

"...

programs.

This budget includes funds for
now comprise over
Research for converting sea , continually reviewing the various
80% ;of the new customers being water and brackish1 water into - programs in these fields for the tabulating and processing basic
added;
,
I
- - ' • „ *
'fresh water, carried on coopera- purpose of determining where economic and demographic data
, .
The Rural Electrification" Ad-^/vely by the Department of the improvement should be made. As collected through the Eighteenth
ministration, currently finances<ntenor and non~Federal groups, needs for improvement are found, Decennial Census, and for the
the capital needs of the cooperaprogressed to the point where appropriate recommendations will ffrial publication of the results
of the 1958 censuses of business,
tives by borrowing-from the 'som? processes are in the develop- be made. manufactures,
and
mineral in¬
Treasury at the statutory interest P161- ®Construction will
:
..lis "■
sic
tj:
■' '■
dustries.
Other recommendations,
rate of 2% and relending at the ^begln>i1" 1960 at Freeport Tex,;
include
the
initiation of
a
new
Government Statistical Services"
same rate. Legislation is proposed 011
a demo"stratlon plant
series on the service trades and
under which REA would
(a) coa/ersl°n of sea water, and $1.5
Adequate and timely national the
improvement of data on retail
borrow from the Treasury at not PI1,!!10/1 ,1S ^conimended m the statistical information is essential
trade,
on
consumer
prices, on
to exceed the average rate of ? ,
the Federal cost for
recording and appraising the health, on crop and livestock prointerest payable by the Treasury °f building the first brackish
Continued on page 41
on
recently
issued
long-term water plant af well as a second performance of the Nation's econ¬
marketable obligations, and (b) sea u'ater Plant.Advance planning
make future electric and telec°™Pleted in *961 on two
phone loans at the same rate addltl0»al demonstration plants,
plus one-fifth of 1% to cover
administrative expenses and esLabor and Welfare
timated losses.
Legislation now
Budget expenditures for labor
before the Congress to place the and welfare programs in the fiscal
operations of this agency on a year 1961 are estimated to reach
revolving fund basis should also an all-time high of $4.6 billion, of

the income

npnd on

presently authorized activities in
the
fields of science, vocational
rehabilitation, education, welfare,
and health. In addition, a number

th.e present lock at Wheeler Dam

;

(291)

■

Miich three-fourths will take the
grants, to States and
estimated costs and losses through
The total expenditures
the fiscal year 1960 of other protelephone as well as electric bor- are: estimated to be $128 million
grams
financed
through
that rowers to obtain funds from a more than for the current year,
agency.
mutually owned financing institu- The largest increase is for promo¬
tion
to
meet
the needs for the
don of public health, mainly for
Stabilization of Farm Prices and future
growth of these borrowers, research and hospital construction,
Farm Income
Under
this
longer range
plan, as a result of muchdarger approMost of the recent year-to-year
loans
would
also
be
available priations
by the Congress in
variations
in
expenditures
for from
the
Rural
Electrification previous
years.
Significant inagriculture and agricultural re- Administration to meet special creases are also estimated for the
sources
reflect
changes
in ex- circumstances. The Secretary of support of basic research provided
penditures for price supports and Agriculture will work with REA by the National Science Foundaother programs to stabilize farm
cooperatives and other interested tion and f°r the defense education
prices and farm income. During parties
in
developing
such
a
and Public assistance programs of

be enacted.

support losses and $1.4 billion to
reimburse
the
Corporation
for

ahead, thatr")rm
of
legislation be developed to enable localities.
js

vital,

looking

the

fiscal

five

Federal

these

for

has accounted for

grams

80%

4955-59,

years,

spending

the

total

all

for

70%

1961,

these

mated

cost

increase of

but

programs

agricul-

$3.9

are

Under

over

enacted

wri

fun(js

period, , trust fund expenditures
for these programs, including
social security and unemployment

help

used

Electrification

and

Telephones

96% of our farms
have central station electric

ice,

with

compared

serv-

11%

electric

erating

additional

capacity

in Federally-affected
for hospital construction,
by the recently enacted revenue and for waste treatment works
bond legislation, the power facili- construction.
Larger appropriaties portion of this project will be tions
are proposed
for other

Valley Authority Act as amended

gen-

heavier

and

MARKETS../

schools

Tennessee

the

under

authorized

capital every

new

provide

EASTERN

AND

New obligational authority
recommended for 1961 totals $4.5
billion, about the same as for
start- construction of the Melton 1960 but $356 million more than
Hill project for navigation and for 1959. Reductions from 1960
power,
in accordance with this are recommended in the grant-inadministration's
policy and as aid programs for assistance to

now

require substan-

year

SOUTHERN

LINKING

hon in 1961.

and of other units under
including new generating
capacity in the eastern part of the
TVA
area.
The
Authority will

cooperatives
financed
by
the
Rural Electrification Administration continues to
tial amounts of

d t
PHILADELPHIA

WIRE SYSTEM

PRIVATE

way,

1935. The expanding use of
power
in the areas served

EQUITABLE'S

will have pomtupled to> an estimated $16.2

plant

About

HARTFORD

compensation,

second

unit in the Paradise steam powerRural

1903

NEW, YORK

and " welfare programs will be
rnore than double the amount a
decade ago. During the ^.same

dur-

These

1961

"" "finance construction of

;

..■•

bonds

revenue

decrease of $1.2 billion from

Budget expenditures for labbor

•

past session, the Tennesggg
Valley
Authority plans to
jssue an estimated $115 million of

1960,

19a9,

legislation

jng

esti—

billion,

$450 million

TVA Program

The

!n!^ Pr°§rams. ln the fiscal year

FOUNDED

the Department of Health, Education, and Welfare,

proposal.

pro-

^tUwtance Comfwruf of cTennmee

SUMMARY OF

Based

EXPENDITURES

RECEIPTS AND

BUDGET
on

areas,

legislation

existing and proposed

(In millions)
lflfiO estimate

Under existing
Jaws and

Proposed

laws and

1<>59

enacted or

for later
trans-

actual

recommended

mission

authorizations

Description

Ru(1 get

Receipts*

Individual income 'taxes
Corporation income taxes

$36,719

------

Excise taxes

Employment
Estate

17,309
8.504

___

925

1 176

3.160

' '

S^'-^t^ai'stcurUy.
International

affairs & finance
berftS

Agriculture

agric." "resources

General government
interest
Allowance for

•

$78,600

Proposed
for later
trans-

recommended.

mission

lili

340

Total

Equitable's

3,935

makes

$2,844

$84,000

1,704

7W77

Q 385
-

$78,005

' :

$378
—-

of $354 million.

.Mil

$78,383

*-911

9,o85

200
$79,354

+$217

"ttess than one-half million

dollars.

200

$461

wire

system

up-to-the-minute

will

office

put

you

Any

immediate

4S69
5,623

717
'

9,58d

private

markets,

1JU

9.385

;

extensive
broader

and faster execution of orders.

Equitable

$24
62

4,906

for

quotes,

4^1

5.173

SETTER EXECUTIONS

340

-WO

$45,544
2,180

4,441

,23,o00
9,323

—-

$43,706

1,37b

2 066

...

BROADER MARKETS,

$81,156

1.606

w v

3,923

2,058

■

$78,600

JS3

—$12,427

$1,200
1,632

1,3/6

4,015

51111

6.529

22.300
i,891

45'424

$43,706

1,176

726,54$624$45 $
$23
,64 650

3.780

includes proposed postal rate increases

----:
—-

' '

Budget expenditures.$80,697
surp. ( + ) or def. (—)

——

contingencies III

Budget

9.100
333

4,015

$68,270

Budget receipts,-

$f-306

—.

9,100

1.333

;

Miscellaneous budget receipts--

¥>

$40,306 A
22,200

321

and gift taxes

Customs

Total

authorizations
enacted or
*

333
1,470

taxes

-—1961 estimate

Under existing-

$79,816

+$4,184

touch

with

the

entire network.

Securities Corporation
DALLAS
ATLANTA

•'
•

HOUSTON
HARTFORD

•*
•

322 Union Street
Nashville

3, Tennessee

BIRMINGHAM "•

GREENSBORO

•

NEW" ORLEANS

•

PHILADELPHIA

•

MEM'PHIS
JACKSON

Two Wall Street
New York

5, New York

(292)

Continued from

The Commercial and Financial Chronicle

and

page

least during the first half of the
year.
also anticipate additional spending by

of defense procurement and can be expected to increase
substantially in 1960. Electronic equipment for missiles
alone cost approximately $1.5 billion this past year.
Missile electronics will reach $2 billion or more dur¬
ing 1960.

local governments, which can
business conditions generally.

electronic

equipment expansion and modernization.

also bound

and

need

The

want.

alleviation, of these
problems lies at least partly in increased public under¬
standing of

solution,

business.

our

JOHN C. BARBOUR
,

My brethren and I in the Banking Fraternity when called
upon to make prognostications regarding the business
outlook for 1960

are

merely called

upon

To put it another way,
either benefit

some

metals

whole, and
harmed by

are

It is reasonable to
Federal, state and
affect interest rates and

Long range future benefits predictable by the
devices include an inexpensive mass

all, we at. Republic National Life look forward
to a most satisfactory record of new life insurance sales
in the coming year, as well as the possibility of a better
renewal experience on outstanding life insurance. ■
CLARK

reflec-

are a

There is

prospect of heavy inventory ac¬
and consumer durable goods, at

to be forecasters

of the economy as a

non

cumulation

All

President, New Jersey Bank & Trust Co.
Passaic, New Jersey

of the economy.

beyond our control.
When appraising the outlook from
my vantage point, one is aware of

BEISE

tain pen.

Association, San Francisco, Calif.

Some

two very vital forces at
work, namely
inflation and the tight money
policy
of both Federal Reserve and the U. S.

Treasury Department.

think the fiscal authorities

excellent job

and

are

have

win¬

ning the battle at the present time.
Despite the skillful handling of the

Nineteen-sixty marks

our entry into a decade hailed in
promising higher standards of living,
higher personal income, more efficient and easier methods of production for all Americans.
The availability
*/*
'
of products and services predicted
during the next ten years are not
figments of imagination but stem
from
responsible reports of scien¬
tists, industrialists and businessmen.

Whether
translated

policies the underlying infla¬

money

.;-•

my humble opinion, it looks like
continuation of tight money and a
high level of interest
rates for the visible future. From
my own personal expe¬
rience at New Jersey Bank and Trust
Company during
this period, I cannot
say that we have turned down any
legitimate requests for loans, especially commercial loans.
We are. like all banks,
very keenly aware of the amount

customer has maintained
years.
We are, like banks

period

of
selective.
One

deposit over a
in general, quite

problem

facing us during the coming year, like
our brethren, is
having funds to take care of the demand
for automobile loans which should rise
in 1960. However,
we do feel that
the demand for
mortgages will subside
somewhat as housing starts are
expected to decline

where between

100,000 and 200,000.

I mention both
a

the above types of loans

important part in the earnings of

very

folio.

end

help

they play
loan port¬

our

bank, in the coming

years,

forefront of automation. This
reduce operating costs in our
fight against

inflationary forces.

In my opinion the
plus factors will enable the

business,

whole, to have
w \ •: • t A•• •

/•••>•;•

a
;

THEODORE P.

banking

favorable year in
f •: •.
:

1960.

Republic National Life review business for
the
year just closed and look forward
to conditions as
they
may affect our business in
1960, we are convinced that

should be
life

it
very good year for our
company and for the

insurance

industry

The American
at

whole.

economy, as it exists

this

and

companies

for

surance

means

staying liquid

beng sold. Consumer

Turning to the investment picture

as it affects our
op¬
considerable volume of real
estate loans
heretofore warehoused will
be absorbed
by
institutional investors, who
may be seeking to
put year
end funds to work
promptly. The decrease in the rate of

housing starts

could

possibly

ready

for

some

and the slow down
of
result in some

delivery,

and

existing house sales
shortage of mortgage loans

thus

mortgage originators who
piled, since they would

accrue

presently

benefit

ability

investors and the
possibility
betterment. Mortgage loans
will, no
with

securities and

Although
still
road

reigns in the

industry.

1960

with

leveling off

possibly
is

Federal

bank

steel

are

stock¬
avail¬

price
continue to

industry, there

some

rate

apt to continue
increase in rates
If

over

the

limitation

borrowing, it should relieve
credit, as the Treasury is
enabled

obligations

some

very

experienced.

eliminates the present
interest
term

loans

possible strike in the rail¬

We do feel that
interest rates
a

attractive yields
available on corporate
Federal Government
obligations.

remains the threat of

before

benefit

greater

doubt,

peace now

high during

the

have

from

compete

Congress
on

long-

the

pressure
to market its

longer term periods.
Other factors
that should affect
the year 1960
fact there is
bound to be

grossly insufficient to take

are

ment

needs

care

the

urban

The

With economic

invest¬

the

increased spending for
plant

food

economy,

the

investment

need

for

which

should

move

potential.

are

attain

our

1958.

This

greatest

10,000,000 home

sales

should

units

1,800,000.
Industrial
decade

year.

increase
-

total

before.

electronics

While

rapid
total

industry

corn

was

of
•

circuit
to

control,

begin
this

volume
Robert S. Bell

closed-

communications) will more than triple
volume of $9
billion, almost half of total

increasing acceptance

tool

industrial and

during the years ahead.
One of the most
important and immediate
capabilities
of the electronics
industry for the coming year lies in
the development of
communication satellites. It is within
the realm of
possibility that satellites equipped with
electronic coding systems
might substitute
place,

existing

for,

postal^

telegraph

and

world.

Every

year

the

percent

tronics grow greater.

now

military

and cotton, price
support activity through Oct. 31
running substantially below the comparable period

the

preceding

season.

However,

government

stocks
,r ■/'

■■

numbers

on
farms have been rising for two
increase in slaughter with some weakening
of prices is likely this
year.
Hog production, which rose
sharply in 1959, will continue heavy during most of the
first half of
1960, but will be reduced during the last half
of the year because of a
smaller spring pig

crop.
Hog
prices, after allowing for seasonal changes, will
probably
higher than the current levels. We look for some

High cost, which has held back indus¬
automation, is being overcome by new
computer
techniques developed for
military use. Closed-circuit
TV
find

preceding year. Strong domestic
delayed marketings pushed soy-

average

industry sales.

will

ever

a little lower in mid-November
;th'a?r a year
number of price supported crops were selling

Cattle

trial

educational

higher .than

from previous
crops were considerably larger than a year

increase in milk production with
prices averaging a little
higher than in 1959. As for
poultry, the number, of layers
on farms on Dec.
1, 1959, was down 4% from a year ear¬
lier, and prices of eggs should show some
improvement
this year.

radio

gear

re¬

systems^ of

that

elec¬

represents about one-third

•

We believe that prices received
by farmers have made
adjustment to the record production of 1959.

and

annual

Although

were

years, and

process

11%

earlier.

expected to double to $20 billion
by 1970, industrial electronics (data

processing,

was

however; dropped by i nearly
the prices farmers received for

crop,

bean prices above the
support leyel. Feed grain prices
in mid-November were above the
levels of a year earlier,
reflecting a good demand for big supplies. Except for

broken

around

will

record—which
wheat

above the levels of the
and export demand and

radios

expansion

1958

The

one-fourth.

by 300,-

the

mendous

export picture.
output hit another new peak in 1959, some 25%
1947-1949 average.
Led by big increases in
and cotton, total
crop production equaled the tre¬

corn

1960, about 899,000 above 1959.
Stereophonic high - fidelity equip¬

000

only by the 1956-1957 record.

favorable

above

sold in

ment

exports will probably be
highest in history, ex¬

Farm

6,400,000 sets, com¬
5,800,000 in 1959. An¬
other 2,000,000 will reach
the used
set market by the end of 1960.
There
some

second

activity and trade abroad. This,
the continued growth of foreign gold and dollar
holdings, the general convertibility of most major cur¬
rencies, and some easing of trade restrictions, adds up

with

Taking

person.

plus

approximately

will

newed surge of economic

1960 by another 10-12% increase.
Television sales will increase to

pared

only 2.8 million
1958-1959, are expected to double in 1959-1960.
Foreign demand appears to be stronger also for animal
fats, oils and oil seeds, rice, fruits and vegetables, and
will continue high for wheat and feeds. There is a re¬

earlier,

will

There will

bales in

crops

will

1960

Cotton .shipments,

BELL

record

in
per

1959.

ceeded

Ezra Taft Benson

electronics industry, fifth largest in
the nation, continued to
expand in 1959 with an alltime high factory sales volume of
$9.2 billion, an in¬
over

meat

the growth in popula¬
capita consumption of food
will probably be about the same as

the

•WV;

16%

con¬

per

volume

fast-growing

agricultural ex¬
ports, which dipped sharply in 19581959, will increase in 1959-1960. The

people must learn how to iden¬
tify waste and extravagance. They need clear exposi¬
tions in lay language of how to convert waste
to savings

crease

The value of U. S.

The

favorable

many
more

account

leader¬

in saving..

supplies

into

productivity, for
for commensurately

BENSON

fiber

tion,

savings.
The public must become
acutely aware of the serious
nature of the
challenge we face and the direction in
growth

and

Food

high

and

programs

TAFT

little larger than in 1959.

development

industrial

many uses to

kets also expanding, a strong demand
for farm products is assured.

■

and

nation.
needed

produced on our farms.
activity expanding, these consumers will
have the highest buying power per
person in history. -With foreign mar¬

ship, at all levels, to take the initiative during 1960 in
helping to educate the people on the problems facing

the
are

the

development of an adequate savings program
challenge facing the American people today and in

the immediate years ahead.
It is incumbent upon business

the

•"

picture for 1960 has
There will be about 3 million

for

sumers

research.

Some of the

agricultural

aspects.

The

the many advances

\ Y

*1-

EZRA

our

transportation facilities,

large segment of

electronic "miracles" which will translate many of these

business and industry, our defense
program, educational
and

come

activity

will be applied will be to
bring better health,-longer life and a higher standard of
living to all people. This year, 1960, starts a decade of

country if we are to achieve our *
greatest growth potential. ;
Today we, as a nation, are saving billions of dollars a
year less than those needed for capital investment in

The

spending
for 1930 should
increase with the
prospect that there will
be a greater number
of
employed persons at rates of
pay
exceeding those in 1959,
thereby providing a possibility
for greater sales of
life insurance.
feel that

day

ROBERT

our

pro¬

President, Packard Bell Electronics

reason
Theodore P. Beasley
for
believing
that the present
economy and method
of taxation will
bring about a constant increase in
the
amount of life
nsurance

erations,

from

increased

carries

Secretary of Agriculture

But increased productivity depends basically
on capital and capital can come
only from savings, the
savings of individuals, businesses and government.
There is no question in my mind that our
savings to¬

in¬

estate taxes.

emerges

base,

nation's needs.

enough to meet the heavy burden of
This

living

for

now,

development

and

prophecies into realities.

ductivity.

to the purchase of life

common

closer to

come

power.;

research

increasing

Right

will

benefits

for defense and space study.
which this new knowledge

ac-.

dispel our present
apathy toward the lasting and permanent
goals of sav¬
ing and replace it with a better
understanding of the

of providing an estate for his
while
a
person
who
is

family,

one

conscious of the broad purposes
Such
leadership will serve to

wealthy finds himself looking

and

the

1960.

•HON.
of

aspect

modest means finds the
pur¬
chase of life insurance
to be the sur¬
est way

recognize

low
productivity to high productivity.
Responsible leadership should counsel people to be¬
more
discerning in their expenditures and to be

their

problems. With high income taxes
man

will

come

to life insurance
answer

on;

•

From laboratories will

and to transform

stage in history, encourages
obliges the people of America to

look

are

increased

that

standard

S. C. Beise

heavy

President, Republic National Life Insurance Co.
As

The electronic industry
the

the

Every

our

BEASLEY

atomic

of achievement.

expansion,

One fortunate factor for this
is that we have been in the
will

some¬

exert.

tion required to permit us to achieve
those goals as well as the rewards

reports

of these electronic

example, electronic
measuring devices are being used inside an atomic re¬
actor for
the first time.
This major contribution to
atomic research
helps to gather needed information
concerning fuel rod materials, which directly affects the
efHciency-ofVatomic reactors and the cost of producing

,
"V.
first year of the '60s
we
must
adjustr our
habits,
our
thinking and our philosophies to the "

During

of money a

reality .depends

;into

the effort

tionary forces are still at work in :
the economy, as evidenced
by results
of the recent steel situation.
'.A,'

John C. Barbour

not.. these

power.

realization in

quarter as

every

use

source

Low cost conversion of salt water
into fresh water on a large scale will result from an
electronic process. Electronics will play a part in devel¬
oping new sources of food proteins from the sea, the
mass production of appetizing synthetic foods and
fully
automated housekeeping. The TV set of 1970, exclusive
of viewing screen, could dwindle to the size of a foun¬

President, Bank of America, National Trust & Savings

nuclear

certain factors

done

Thursday, January 21, 1960

their major

Overall, prices for 1960 probably will

average nearly as
as in 1959.
Prices paid by farmers
may increase a
little further this
year mostly because of
higher prices
for items produced

high

by industry.

With
and

decline in

some

further

inching

cash

receipts from

upward

marketings
production expenses,

mostly originating outside the farm
sector, some further
drop in realized net income is
likely this year, perhaps
half

On
an
is

much

the

1959. *

other

hand, total agricultural assets are now
all-time high of $208.2
billion, while total farm debt
$24 billion. The net
equity of U. S. farmers is $184.2

billion--~an increase of $141

billion since

Despite continuing problems, U.

1940.

agriculture
*/»/v.

„

/./-J

-v>

all
n

in
J

-;
,

Number 5918

volume 191

The
and Financial Chronicle

Commercial

(293)

vestment

President Predicts Surpluses

banking field, has been

named representative for the new

Pressprich office.

•

fornia

Paying

Agent

under

the

Kennedy, Frank and

Bond Ordinance."

Miller, Inc. Formed

Arthur

Continued from page 39

and on State and local

duction,

necessary and I have
recommended in this budget.

.government finances.

The

served

and Other

Social Insurance

';"

'•

;

million

veterans

during World

«■

insurance

security

social

The

the

provides basic pro¬
against loss of income
death, disability, and retire¬
to about 85% of our labor
now

system
tection
from

ment

Another 8% are covered
under the railroad retirement sys¬
tem and other public retirement
force.

systems.

benefits from

War

present.time 10 million

•>

who
II

cessful

eligible
highly suc¬

readjustment

For the

been

that

the

formed

1291

minimum

programs

million World War II
veterans the GI bill
provided un¬

veterans;

training

education

benefits

veterans;

and loan

8.4

tion

million

assistance

improvement

and

acquisi¬

homes,

people aged 65 farms, and businesses.; Except for
.and over are receiving monthly the loan guarantee and direct loan
old-age
or
survivors insurance programs, which will' terminate
benefits. This vast insurance sys¬ on July 25, 1960, the World War,
tem, which will pay $11.7 billion IF readjustment benefits have es¬
in
old-age, survivors,' and dis- sentially expired.
Similar read¬
ability benefits/ to
14.6 million justment programs, which will
continue into 1965 for veterans of
people of all ages in 1961, is ad¬
ministered at a cost of about 2% the Korean conflict, have already
of the social security.' taxes.;•
provided 2.3 million veterans with.j
,

(the

York,

New

Albany, N. Y.,
Boston, Mass., Chicago,, 111., Phila¬
delphia, Pa., and San Francisco.
The company
underwrites, distrib¬
utes
and
deals
in
government,

project
gross

will

produce a
income of about

Liberty In v. Co.

Building

eral

securities

STREAM, N. Y.—Wil¬
is engaging in a

business from offices at

Birch
of

name

Lane

under

the

Robert

Kennedy, Secretary; and Alan

Miller, Treasurer.
All were
formerly with Family Funds of
New York.

Liberty

to conduct a gen¬
business. Officers

Guardian Sales
Sales

Cohen, President;
J.
L.
Pressman, Vice-President;
and Howard M. Browning, Secre¬

Guardian

tary-Treasurer.

Leslie

Cor¬

Broadway, New York City.

are

Batkin

securities

formed with offices in the

(Special to The Financial Chronicle)

Life

liam

offices

Harvey Frank, President;

Form

investment stocks.

W. R. Batkin Op ens

with

securities business. Officers are

CHARLOTTE, N. C.—Liberty In¬
vestment
Company
has
been

VALLEY

N. J. —
Miller, Inc.

Paterson Plant Road to engage

$2,000,000 when in full operation.

state, municipal, housing author¬
ity, public revenue, railroad, pub¬
lic utility
and industrial bonds;
equipment trust certificates and

employment and self-employment
compensation
payments
to
9.7
million

located

Planning

poration is engaging in
business

ties

from

securi¬

offices

225
*

firm

William R. Batkin Co.: c

16 million

the

has

fices

were

the

5 million veterans for the

the

Korean conflict

for

Welfare

j ''-v

Kennedy,

Frank

Members

,■

SECAUCUS,

San

D. Little, of nationally
Consulting Engineers of
Francisco, have
estimated

changes, R. W. Pressprich has of¬
highly

known

American and Midwest Stock Ex¬

In Fiscal 1960 and 1961

Embassy House Assoc.
Embassy
gaging

House Associates is en-/,

securities

from offices ;at 61
York

City.

Davis,

.Broadway/ New

Partners

Fox.y • '

;

•

BROKERS-DEALERS

Jack

are

Fishbein

Eli

UNDERWRITERS and DISTRIBUTORS

business

Irving

and

\'//.

insurance and public

Our social

education

and

training

benefits

systems provide basic

and

700,000 with loans.

protection to the worker and his
family.
For those >who have no
such
protection and whose in¬
comes
are
insufficient to meet
basic needs, the Federal Govern¬
ment
shares, through grants
to
the States, in providing four cate¬
gories of public assistance pay¬

cial

unemployment compensation

retirement

These

ments.

(2)

assistance,

(3)

to dependent children,
aid to the permanently

aid

and

old-age
the blind,

(1)

are

aid

(4)

totally disabled. In 1961, the
Federal share for payments, made
to an estimated monthly average
of 5.9 million beneficiaries,
will
and

total
about
-

billion, or
the total Federal-

estimated $2.1

58%

State-local

public

assistance

ex¬

penditures.
This contrasts with
Federal expenditures of $1.1 bil¬
lion, representing a Federal share
of 52%, for payments to 4.9 mil¬
lion individuals in

1950.
has long been

Public assistance

recognized

primarily

a respon¬

sibility of the State and local gov¬
ernments, because need for these
payments in individual cases can
best

level.

determined
am

about the

spe¬

for Korean conflict vet^

program
erans

which

aided

1.3

ends

has

veterans.

million

further extension

1961

liberalization

of these benefits is needed.
Sji

The

tinuing sound economic growth in
future.

the

achievement

The

these

plans, however, will in the
last analysis depend oxi the people
themselves.
believe

way

people have the
hold expendi¬

to pay their own

check,

without borrowing from their

children, to choose wisely among

and

State

sense

tends

because

this

; While we
are
dreds of millions

spending
aid

for

hun¬
to

knowledge

are

the

alleviate

causes

pendency and of the best
it.

prevent

de¬

ways

I believe

that; 'appropriations to initiate
of

program

research

and

reinforces

which

dations I

the

recommen¬

made.

have

DWIGHT

annual

its

meeting and Herman Altschul and
H. H. Rogge were named VicePresidents

Seallan

Mr.

Institute.

the

Altschul

Mr.

dent-sales

Spring Street

Teletype LA 533

PRIVATE

WIRES

NEW YORK

AND ALL DIVISION

OFFICES

Vice-Presi-

American

General

ANGELES

647 South

Teletype SF 885

man-Standard Car Manufacturing

Co.;

LOS

FRANCISCO

Montgomery Street

Pull¬

of the

is President

SAN

300

Coast Stock Exchange

American Stock Exchange (Associate)

Midwest Stock Exchange

Transportation Co., and Mr. Rogge

OFFICES

INVESTORS THROUGHOUT

SERVING

CALIFORNIA

AND

NEVADA

Division of ACF Indus¬

Foundry
turned

Institute

office

firm

the

The

Inc.

tries,

also re¬

Barker, of

WALTER C. C0RET COMPANY

Peal, Barker
Vice-President, and
Renz, Secretary and
Hardy,

Rawlings,

EISENHOWER

Walter

Russ

San Francisco 4

Building
I

Teletype SF 1011—1012
6-2332

YUkon

To Market Calif.

Specialists

District Bonds

CALIFORNIA WESTERN STATES LIFE

January 18, 1960
B. J.

Pressprich Branch
In Hong Kong

selected by the
Ventura Port District, California,
to form an underwriting group to
distribute approximately $10,000,has

ment banking

are

firm of R. W. Press¬

prich & Co., New York, N. Y. It
will be located at 603 Tak Shing
'

House.
Norman

wealth

L. Yu, who

has had a

experience

in the in-

been

Report available upon request
ALL LIFE

000 revenue bonds to finance con-

struction

finance

bonds

revenue

opening of the company's first
foreign office in Hong Kong, Brit¬
ish Crown Colony, on Jan. 18,1960,
has been announced by the invest¬

WEST COAST LIFE

Ingen & Co. Inc., New

Van

York,

demon¬

causes

Institute

Members: Pacific

Rail¬

Van Ingen Group

stration projects designed to iden¬

tify and alleviate these

Car

elected

was

American

the

and sound growth with
security. It is that determination

progress

the

large gaps in our

INCORPORATED

Treasurer.

The

needy, there

Seallan

President

priorities, and to match sound
public policy with private initia¬
tive.
It
is
that
determination
which
is the key
to continued

particularly concerned

local responsibility.

John

First California Company

is President of the American Car &
our

determination
tures

Am. Ry. Car Inst.
Elects Officers
way

presented in
this
budget meet the Nation's imme¬
diate needs and will support con¬
plans

growing Federal share,

especially
weaken

local

the

The

public

con¬

BOUGHT

boat

small

STOCKS

QUOTED

SOLD

harbor. The harbor will be located

approximately

65 miles

City of Los Angeles

the

Wire

north of
at Ven¬

tura, Calif.
The

317-acre

site has been

System

John C. Legg & Company

Baltimore and New York City

ac¬

quired by the District by payment
of $1,000,000: $800,000 from pro¬
ceeds of a State Loan and $200,000

Troster Singer &

New York

•

Co.

City

;

note to the Bank
of America N.T. & S.A., both of
which will be retired from sale of
the revenue bonds.
Construction
through sale of

bids

have been

received covering
with surety

about 80% of the work

The balance of the
let
construction on the project pro¬

bonds

posted.

construction contracts will be

Compare our

prices

gresses.
Jack

before you

U. S. Government

Our weekly

provides

Securities

master lease to

Municipal Bonds

Municipal
yours

issues.

Ventura

group,

harbor.

The

Marina,

master

Inc.

Call

the C&S

Bond

Department

request.

The Citizens &

Southern

National Bank
Atlanta 2, Georgia
Teletype AT-399

Broad and Marietta Streets,

JA 5-3811

•

INVESTMENT DEALERS

guarantee the payment
sufficient to meet all
service requirements; in ad¬

AND BROKERS •

New York Stock

percentage of the gross income.
master lease group will be

The

obligated-to pay expenses of op¬
eration and will post a bond guar¬
antee fund equal to annual debt
service
of

requirements. The Bank
N.T. & S.A. has been

America

appointed Bond Trustee and Cali¬

•

INDUSTRIAL BROKERS

Exchange • Pacific Coast Stock Exchang*

American Stock Exchange

440

MONTGOMERY

STREET

•

(Associate)

SAN FRANCISCO 4, CAUFORNIA • EXBROOK

TELETYPE: S. P. 30«

dition the District will also receive
a

UNDERWRITERS

MEMBERS

lease

group will
of rentals

debt

SUTRO & CO.

desig¬

highly qualified and
experienced and has ample finan¬
cial stability with which to suc¬
cessfully operate the public small
boat

Gov¬

ernment, State and

the

nated

U858-/960

has,

This group is

up-to-date quota¬
tions and co m

mentary

Campbell, Manager of
stated "that the Dis¬

after many interviews
and much investigation, deter¬
mined to lease the project under
trict

_____

Agency Issues
State and

the District,

com¬

mentary, "The
Week in Govern¬
ments,"

trade:

2-0900

S. F. 30»

OTHER OFFICES

Los Angeles 14

New York 5

Van Nuys Bldg.

40 Wall Street

MAdison 4-7711

WHitehall 3-4000

San Jose, Cal.
55 N.

First Street

CYpress 2-2442

CORRESPONDENT OFFICES:

Beverly Hills

Hayward, Cal.

9804 Wilshire Blvd.

1217 A Street

CRestview 4-8021

JEFFerson 7-6811

HONOLULU. T.H.. MANILA, P.I.

DIRECT PRIVATE WIRES TO ALL PRINCIPAL MARKETS

The Commercial and Financial Chronicle

(294)

all

at the

;.':.

•

emphasis

iuumsiu

fall
to
an
estimated
$6,600,000,000, down from
approximately $7,100,000,000 in 1959.
Although the number of missiles produced is a closely
guarded secret, it is obvious, considering the potential
of each missile, that their numbers in no way approach
the estimated 11,000 planes produced in the most recent
peak year of 1953 when we still were relying heavily

the food for peace pro-

—-

aggressive agricultural marketing and utilization research, and an expanded rural development
program; and if our recommendations for realistic, upto-date price supports and an expanded conservation
reserve are favorably acted upon by the Congress, U. S.
farmers and ranchers can l°°k forward to a truly prosgram,

perous, exDanding and free
expanding

ag ic

nerous.

„

ears

Gas

ice,

increased

see

business

for all types

This forecast is based

and motor hotels.

number of

economic and social factors, including population growth,

prosperity, more business competition, increased vacation
the

time

and

ever-g

rowing

desire

American

the

major

hotel

the

in¬

■

„

and

traveler

and

Martin

cat¬

units

to t h

Their

primarily
business¬

will enjoy
higher sales dur¬
ing the coming

competition, one of the key methods
employed to counteract this competition is more personal
calls on customers and potential customers. This necessi¬
tates

travel

which

can

directly

converted

business travel.

the

increased

use

conventions

elements.

facilities

for

These

running

groups

new

into

available within

the

The effect of such movement

therefore

determining

hotels could be

fields

and

mean

new

various cities

construction, not only on the part of
the hotel industry but also on the
part of city convention
new

American

traveling

With

leisure

more
and more.
time and the desire

higher

see

people

wages,

places, a tre¬
demand has been created for accommodations

mendous

new

specifically related to the individual
pleasure

ROGER
i

while

route to

cial
of

family seeking

destination.

Motor

hotels, an area in which HCA
recognized industry leader, are becoming
prominent as a factor in the industry. -

into

might

one—those
the

seem

basic

sciences

unrelated

and

panies

to¬

and

will in

way

assure

the

1960,

and

for

generations

will

come,-

depend upon the amount of creative thinking, hard work
with which we approach the space age.

should like to emphasize, however, the
dangers
building motor hotels without careful planning. The
competitive picture in the motor hotel field is such that
without such planning, units that should be
profitable
might be running at a loss because of lack-of foresight.
To counteract this, we developed
guides and criteria for

establishing

properties,

new

ESKIL

Other operators

are

peace—will
v

BERGEN

The year just ending was a time of dramatic
the nation's defense
industry.

obsolete.

of course,

this
a

reason

now

the

The

change for

829 million feet. Of that

airplanes,

million

has

f
«

From

been merely a matter of
going from
the production of one
product to
another.
It has meant a
complete

metamorphosis in the

nature

natural

of the

The

past.
These planes have
replaced by weapons systems

•

requiring

a fraction of their
number,
but capable of
delivering many times
their destructive force. In
fiscal

William B.

Bergen

for missiles

and $8,000,000,-

fiscal 1960,
government
expenditures for missiles will rise
to $3,900,000
000 from
an estimated
$3,360,000,000 in 1959 and

available

the

sources,

aircraft'spending

Illinois,

our

lion in

1959.

1959

new

high.

the

industry.
strike
pro-

that
more

Roger M. Blough
.

stoppages, promises

industry suffered

the

nation's

to be

one

use

from the impact of
steel

heavy reduction

million
a

sharp

during the recessiori,

stocks by

the

first

■/.

half

1959,

steel

operating rates
rapidly as steel consumption increased
along
business activity and as
consumers rebuilt,
their depleted stocks
and even
with

general

economy.

According to

expanded

their

inven¬

possible

•

subsidiary,

in¬

gas

to the

System for

.-Y

•

estimates, total inventories

end

There

Storage
was

■

our

of steel, at,
November were lower relative to
the econ¬
omy's needs than at any time in
the postwar
period. The
high output of December
only slightly alleviated this
problem.
Consequently, strong demand for steel to re¬
build inventory should be
expected during the first half,
of 1960 even were
there to be no
change in national industrial output.
the

mar¬

day in 1958 and by 75 mil¬

consolidated gas sales of Peoples Gas
reached

optimistic

are

millionYY;YYYYYYYr

tories because of

re¬

Mainly by virtue of the increased flow of
area,

steel strike at
mid-year. But
all. of the inventory
accumulation, of the first half and
more
was
wiped - out ^during the
116-day steel' strike
which hobbled production
during the second half of 1959,
and prevented the
steel
industry and its employees from
sharing fully in the strong
resurgence of our national,

billion

storage

1950's

During

1959.

1958, steel ihgot production totaled
but

moved

Gas available to customers of the Natural
Gas

lowest level since 1950.

20 million late in 1959.

creased by 70 million feet

steel cus¬
tomers—about 10 million tons in
ingot equivalent—to the

gas

increased by

strike,

combined with

the

amount

prevail.

economic consequences

heavy steel demand.

drop in

dis¬

the

tons

end of 1959.

Company

1955, the Department

aircraft.'

all

peace—

delivery capac¬
ity of Texas Illinois Natural Gas Pipeline Company was

are

SnPe/ense ^$718,000,000
000 for manned

one

the

alone, our nation's-...'.', .Y. •:Y-'Y.YTY
capacity to produce steel has
increased by almost onehalf. Yet,
during the past two years, the American steel
industry has produced less
tonnage than in any two-year
period since 1949-1950. In
strong and welcome contrast
to this
discouraging record, the six months
ahead; in the
absence of further work
In,

aggregating ap¬

ica brought an additional 185 million cubic
feet to
ket late in 1958 on a peak day basis; the

days when sorties of planes
darkened the skies over
enemy ter¬
been

available in Chicago by
on a peak
Eskil I. Bjork
day, was
760 million feet compared with 560
million two years earlier. System
pipeline companies have
been expanded: Natural Gas Pipeline
Company of Amer¬
the

defense industry.

ritory

■

increase, 95

of expansion moves in

sult

not

became

especially

with

than.$650

by the
its

every¬
the com¬

authorized projects
require further expenditures of

the
System has been increased by about
350 million cubic feet to

practical purposes, out
plane business.

however,

and

expand

During this two-year period
peak day delivery capacity of

conventional

transition,

area,

out

and.

losses, U. S. Steel Corp. plans to

similar expenditures was $128,000,000.

that Martin, for 50 years

to all

company

national

about the future of the
steel

development of

tribution system in Chicago. For the
last two years the total figure for

They are being replaced,
by missiles. And it is for

manufacturer of manned

the market

parent

During 1959, it was made crystal clear that aircraft
a
military weapons system are gradually becoming

gas

President, The Martin Co.

■

BLOUGH

Accordingly, despite heavy

BJORK
^

and

soon

Despite the
of the steel

proximately $41,000,000 were made during the year by
pipeline and storage companies of the System for new
facilities to increase its supplies of
Y.-.natural gas and to transport more

urged to do likewise.

WILLIAM B.

The year 1959 saw continued
growth and
our markets. Gross
capital expenditures

particularly motor hotels.

and the job
security .that can come
only from a soundly based industrial

Chairman, The Peoples Gas Light & Coke Co.

affected,

and courage

Chairman, U. S. Steel

industrial

success

nation's defense system or the companies which
producing the hardware to back it up.
'

Success

become

alone

typified the

strikers themselves and their
families.
It is hoped that

rapidly approaching the time in which finan¬
Y ceed

resources

j 116-day strike and the

our

are

has

are

once

America must meet the
problem of continuing inflation
caused mainly by unrealistic
nation-wide union wage
demands if it expects to attain
adequate economic growth
at home and
good markets for its products abroad. The

defense needs.

non-business' segment

other operating

field with broad implications
Y emergency it caused has hurt

research

now

and

merger would make possible.

they

the rapidly changing state of the art and scientific and
Martin is proving its own
flexibility in
its diversity and broad concepts of research.

bureaus.
The

which

nostalgic appeal of the past.

pro¬

profits must be maintained in order to meet
the as yet unknown demands of life in the
space age.
The Research Institute for Advanced
Study, supported
by Martin, is involved in just this kind of research.
(3) The progress of space age companies will to a
large extent depend on their ability to adapt quickly to

important factor in

ad-/

morrow's

may,
in some cases,
of hotel business from older

pattern

Constant

(2)

year.

facilities

changing
facilities.
and

thousands,

the next

This, too, is

in the space age.

business-getting tool by companies and industry groups..
Many large cities recently have opened convention
others will

now the aim of
System management to seek to
Peoples Gulf Coast into Natural Gas Pipeline in

Sales of gas dryers by
Chicago dealers and by Peoples
reached record
levels, as did sales of gas ranges.
And the
rapidly-increasing number of outdoor gas lamps
in the yards and
patios of Chicago homes has made them
a symbol of modern
living, just as

duction of space age systems, under one
corporate roof.
Martin is also producing nuclear power sources and fuel

countdown

•

Gas

Control, which auto¬

missile

are

1960, and to achieve the economies

the Titan; missile check-out gear

complex

systems.

Another important feature in
stimulating business at
large hotels, those designed to cater more to the busi¬
nessman,

monitors

com¬

System pipe¬
contemplated with an esti¬
$75,000,000 to provide additional peak

projects

benefits that such

cedures, and, capability in solid and liquid propellant
All of there reflect Martin's "systems concept"
of
engineering
and
manufacturing.
Our
object
in
diversification is to join the many different skills and
talent that go into the research,
development and pro¬

Jet transportation has enabled a businessman to make
trips in shorter periods of time, in some instances elimi¬
nating overnight stays.
However, this factor is more
than compensated for, in our opinion, by the trend
more

Martin's Master Operations

matically

increased business for hotels.

toward

merge

highly

vanced missiles such
such

expansion

diversification at Martin include guidance control
systems such as Missile Master, now a vital part of the
nation's home defense system;
ground support units
which
insure the operational readiness of

When business in general is faced with the pros¬

year.

conditioning load.

wholly-owned subsidiary, was important to the
Peoples
Gas System.
vy:u V:; ■,Y Y:'Y\ ■
••

pect of increased

air

summer

first full

conditioning,

Company,

future, and this includes the future of The
Company, will depend on the extent to which

industry. At The Martin Company, over 3,000 of our
7,500 engineers are in electronics. Other specific areas

A. M. Sonnabend

in the

for year-round air

a reorganization
plan involving the dissolution of Texas Illinois
Natural
Gas Pipeline
Company and the assumption of its assets
by Peoples Gulf Coast Natural Gas Pipeline

(1) A diversification in fields linked with the missile

man,

re¬

waiting list.-

achieved

success

expected

substantially

day capacity of 185 million cubic feet.
Consummation in December, 1959, of

they meet the following requirements:

those

ering

John J. Bergen

line

mated total cost of

trade

the

1960,

pany plans to seek FPC authorization in 1960 to
further
increase peak day withdrawals.
Peoples Gas also expects
to acquire additional
gas next fall from the other
pipe¬
line source previously mentioned. And I960

projects today will depend to a large extent on how
well they will be able to adapt to this
newly created
environment. 'Y.
ij

sort

of gas

sources

Although it is too early to be specific, the storage

age

dustry, those de¬
signed for the re¬

the

was

year of promotion of gas
and in expansion of the

ponents are in demand for the nation's burgeoning space,
programs.; The success of companies involved in space

segments

Notable also

a higher unit cost per weapon.
industry is evolving in the transi¬

new

be available to the
company in
duce if not eliminate the present

tion from planes to missiles. Even before these missiles
became operational, their power plants and other com¬

Both

completely

heating applicants has
mid-year, the plans of Peoples

since

naturally results in

public

travel,

This

the

somewhat

Commission, should, with other

Pershing,
a
U. S. Army missile with an unjammable guidance
system, is to have its first firing early in 1960.
The nature of companies like Martin today is basically
a
research and development business,' the purpose of
which is to create a relatively smaller quantity of highly
complex but infinitely more effective delivery systems.

of hotels

substantial number of commercial and
in¬
premises.

System for bringing additional supplies to the mar¬
1960, if timely approved by the Federal Power

ket

Ballistic Missile in the United States arsenal.

Hotel Corporation of America

will

1960

had

grown

share achieved in 1958.

time in I960, will be the most advanced Inter-continental

Chairman and President, Respectively,

year

dustrial customers, and multiple-family
While the waiting list of space

The company is producing three operational missiles,
Mace, Bullpup and Lacrosse. We are developing the
Titan, which, when it reaches combat-ready status some¬

SONNABEND

single-family and two-family applicants on
waiting lists at mid-year had been offered gas serv¬

our

heating
Chicago,

All of the

$4.01

of them in

1959, to bring the total
approximately 340,000.

end to

Reflecting this greater reliance on missiles, sales of
Martin Company for 1959 are expected to exceed
$500,000,000, marking the ninth consecutive * year in
which sales figures have been higher than the year.
before. Earnings, too, are expected to increase over the

AND
A.

about 50,000

The

BERGEN

Within the two-year period about 93,000
space
have been added by Peoples Gas in

customers

manned aircraft for defense.

come.

JOHN

In Chicago, The Peoples Gas Light and Coke
Company
began to receive gas during the year from another
pipe¬
line serving the area.

will

than it is

sounder financial position

•/.
v

beginning of 1960.

increased

With
vviin

•'' ■.'1

page

never

was

now

Continued from

Thursday, January 21, 1960

♦

are certain
questions still clouding the over-all
business outlook in addition
to the
danger of the con¬
tinuing of cost-push inflation—the
threat of work stop¬
pages in several sectors of
the economy, the
possibility
that there
may be a slowdown in residential
construction,
that 'the initial -momentum'
of a .good'
automotive year
may be lost from forced
production cutbacks in Novem¬

ber and December, and
that there
may
ment in business
expansion plans.

However, although these serious threats
|
4

some

curtail¬

cannot be dis-

■

Number 5918

Volume 191

The Commercial
and Financial Chronicle

counted lightly, the resumption of the
rising trend that
brought national output to new highs last summer
ap¬
pears a reasonable expectation. In brief, the
early part of
1960 can see a heartening
outpouring of goods larger
employment and a very high level of individual income
Because of the immediate need for
steel to
refill

con-

oper-

million tons

the

take

imports, however, will undoubtedly continue
large share of

the

domestic

market

for

The flow of investment funds
into
fixed income bearing

to-

certain

products. Jn contrast with the traditional position
steel industry, steel imports
may again exceed
exports for the second straight year.

continues

the

President, John Wanamaker, Inc.*

the

forecast

sensitive

for

Foolhardy.

an-entire

Retailing

But

attempting

would

year

has

are

extremely

distant

most

projection-

months

include
the

1960

retail

two

which

the

set

vestors.

and

national

total

income

follow-

particularly if

strike and

there

strikingly

been

market

the

fuller

the

steel

fident, particularly if this confidence is based
and

prosperity.
much; in

very

six

months

plus to
A

word

fact

prevailing

the

there

about

first

affected.
with

the

six

such

the

Due

which

general demand.

Finally, it is
better than

those

people have

trade up at every

income level.

there
on

page

for

„

<■

U#c

,'v /

o
,

>• X

the

and

with

issues

that

been: raised

Stanford

O'Connor

form¬

was

Corporation

Sons.

middle-term Gov¬

and

state ;funds.

dications

with

attributed

There

are

Federman, Stonehill

which has
the sale of

money

through

Federal

Appoints M. J. Bayer

in¬

obligations.

According
to; reports,
state
pension funds are still making

Federman, Stonehill & Co.,
70
Pine
Street,
New
York
City,
members

the New

York

Stock

Exchange, announced that Mitch¬
ell Jay Bayer is now associated
with their firm as Manager of the
investor's

well

service

department.

Reasons

the

paid

which

five

being

are

...

will have

years.

are

the
for

demand

Federal

for the customer

areas

funds

BEAT

obligation with

due

date

THE

CLOCK —Two

hours

tinuing opportunity to capitalize
developments.

=■

Federal securities with

able date of

the

pay¬

Accordingly, it is expected that
will announce on or

UNDERWRITERS

the Treasury

BROKERS

provides

on news

con¬

breaks and

SAVE

than

TAX

THE

one-half

having To

—

Pacific

million

pay any

customers

dollars

last

saved

year

—in NOT

state transfer tax.

PREFERRED RATES

ENJOY

3
'

—

commission

other

are

extended

Preferred

rates

approved members of

Exchanges and members of the NASD.-.

ENJOY WIDE SELECTION

—

550 issues of

Western, and Hawaiian companies
world's

are

Eastern,

traded

DISTRIBUTORS

will be offered to the

which

floors in

one.

holders of the 3%s that will come
-

•

due

the

15th

'
•

month.

of more than $11
billion is
held in the main by
Federal Reserve Banks and Gov¬

•

This large issue

Corporate and Municipal Securities

agencies

ernment

Federal

Foster & Marshall

enough (about $5.8 billion) to get
the kind of treatment which will

Investment Securities
Now York Stock Exchange.

Stock
M:_'()

Second

Ave.

PORTLAND

•

Exchange (Associate). Chicago
SEATTLE

SPOKAN E

•

YAKIMA

make it

American

Board of Trade

Teletype SE. 482-673 •

ECO EN K

•

The

Phone MU. 2-1600

OLYMPIA

•

MKOFOKD

owners are

but the nonstill significant

successful operation.

February

Financing

Therefore, money market spe¬
cialists are again trying to figure
out
in

way

this
a

what

the

Treasury

will use

of issues in order to put

February

refunding over in

satisfactory manner.

Because^ of

PACIFIC
Los Angeles
618 South

COAST

STOCK

Spring Street

Los Angeles 14, California

301 Pine Street

hours

San Francisco

4, California

EXbrook 2-6533

MAdison 7-8741

Market

EXCHANGE

San Francisco Division

Division

—

7:00-2:30

(Pacific

Monday through Friday

Coast

the !

only Exchange combining two major trading

about Jan. 28, the kind of securi¬
ties

need

than five years.

trading time

Feb.

after the close of Eastern markets

sources.

great desire and
the

for the dealer

intermediate-

and

use

maturity

purposes

TRADE PACIFIC COAST

15, there is not a
hope of this taking place because
of the 41/4%
interest rate limit
on

M i: M Hh.lt S

Government debt, and the oppor¬

case

•.

erly

the

meet
as

tunity is presented when obliga¬
tions are maturing as will be the

has

engage

new

will continue to remain

extend

to
.

ernment

certain

Overall

Eighteenth St.,
in a securities

business. Mr. Lawrence

purchases which have been made

by the Treasury, unless sold at a
sizable discount from 100, is pre¬
cluded
under prevailing money
market' conditions. Even though

constant desire to

Continued

evident

near-term

which

W.,

Open
John C.

Sidney R. Overall

Lawrence

with offices at 919
N.

—

several

maturity of more than five years

catering to the cheaper trade for as

they have

improvement

other

opinion that quality stores will do

money,

been

large, both from non-Federal

The

sportswear and children's wear.

our

The

and

have formed

Current Market Operations

Treasury's Hands Tied

opportunity for sales increase in the coming six months,
women's

will

have

and

the

well

Probably the two specific spots that offer the greatest
be

will

high since these

would

Lawrence

long note
the Treasury.
a

that the current rate

short

term rates

past

quest

;

than

less

result,

very

greater

its

used for such

be fewer housing starts,

and

the

securities

the

Apparel and other soft goods

fashions

WASHINGTON, D. C.

sur¬

existing money
The policy of
with the

investors

means

interest

should definitely be on the rise due to stiffening prices,

flattering

Ex¬

along

operations,

should about hold their own,.even

falling food prices.

short and

too

by the Federal Government in its

sales

Lawrence & Overall

tax-exempt' securities has been
put to work in some measure in

prevailing laws of the land.

This

such, will probably be adversely

Food sales

1960.

issues;

demands

-XT'T'X

composition

not

and the refunding of ob¬
ligations as they come, due, to

Stock

addition, the Treasury

confine

must

peace

seem

months

will \ probably

home-furnishings,

would

York

money

picture, particularly for the first
and, therefore, add a very definite

1960

two

for

that

the

factors

two

bullish forecast.

our

pattern

These

restraint,

months. In

ope of con-■
buy when con¬

tend to

New

for
loanable
funds, is
keeping interest rates at or about
the high levels that have
been

plus factors of higher income and

The American people

the

demand

employment, there is the intangible

fjdence.

conditions.

credit

the conservative

in line with

were

addition

satisfactory.

carried out successfully and
cost
of -these
two
ventures

the

similar

and if they came about, all bets would be off.

fact, it
if they

surprising

first
new
money
raising
refunding operation of the
Treasury in the new year has

settlement prevails in the railroad picture;'
Such strikes would loom up as catastrophic in our econ¬
omy

this

would

to be offered by

were

selected

renewal

and

forecast—namely, the possibility of a nation-wide rail¬
road strike, a renewal of the steel
strike, stepped up
foreign competition, tighter money and fewer housing

side,

discount

bers

short-

The

Richard C. Bond

starts—we believe this estimate to be

Initial Financing Successful

off-sets to this bullish

are some

Because
not

come

steady and people will have somewhere between 2%
and 3% more purchasing power. Department store sales

pattern and while there

that

area

rather

refunding issues provided the in¬

ahead of the same period in 1959.
This estimate is based mainly on the
fact
that
employment
will
hold

and

rate

quarters of

Treasury in this impending opera¬
tion. Also, some money
market
prised if

most

change, announced that Clarence
obligation with, say, a year*
J.
Whitesell
is
now
associated
maturity
will
be
part
of
the
with the firm as manager of the
package deal which will be made
Institutional Department. He was
to owners of the maturing cer¬
formerly syndicate manager for
tificates. In addition, it is believed
that an obligation with a due date Cohen, Simonson & Co.
of a note will
be used by the

investors
12-month

financial

followers

same

recent

issue

the

received.

would again be after the Treasury

therefore, is that the
department store
business, ih the
first
six
months
of
1960, will be
3%

bill

coupon

would

Our forecast,

between

they

and

a Government
issue, has
plenty of attraction for these in-'

one

somewhere

treatment

basis for

Fur¬

Will confine our forecast
phase of the retail business,
namely, the department store field.
ther,

the

ob¬

were

sizable way. It seems as
though a
5% return, whether it be with a

really

summer.

the

which

after

Treasury

namely,

seasons,

spring and early

Government

Accordingly, these

would

with

experience

want to make would be for the first

six

marketable

went

circumstances,

becoming

of, 1964 < brought
savings bank type of investor

satisfied

women.

these

Under

so-called

ligations and evidently they

ear

whom

the
-

prominent. It is evident that

into

seem

to the ground and is subject to the emotions
-whims-of its customers, 90%

and
of

sales

retail

risky business.

investor"

Federman, Stonehill
& Co.,
70
Pine Street, New York City, mem¬

have in these 3%s

term

"magic!!- ,5s

the

Forecasting, at best, is

the

it is believed

show

Governments

BOND

Central Banks

obligations
signs of ex¬

purchases

and,

panding
"small

RICHARD

Stonehill

first

steel

•Federman,

CHIPPENDALE, JR.

:•

Steel

;

JOHN

mean

half.

1990

being this week's favored issue.

Whitesell With

industry

ingot production as high

ment bonds with the 3V2S of

capacity. This could

or near

commitments in the long-Govern¬

Our Reporter on

sumers' depleted stockpiles and the expected
high rate of
steel consumption, total demand for steel in the next
six
months should be enough to warrant steel

ating rates in the 90's,

(295)

Time)

Continued from page 43

evidenced little

WILLIAM

BRADY

President, Corn Products Co.

climate,

ahead, and the years that follow it, should be
interesting and eventful for our industry. During the

.figure of some $52 billion.
doubt in my mind that

spectacular growth will continue.
my opinion, it will be
marked by two transitions of great
importance.

However, in

The first is in the mind of the con¬

During the 50's the nation's

eating habits were upgraded in
finer,

varied convenience foods. There

indication

will

maker
T. Brady

many

particularly in favor of
tastier, more interesting and

and

.ways

the

than

that

settle

today's home-

for

anything

delicious

most

But, there is now

less

meals.

greater awareness

the part of the public of the role of
active good health, longevity and

growing

mass

between

the food

diseases can't

other

and

effect
If

of evidence pointing
we eat and our susceptibility to heart

family

help but produce
'

menus.

food

the

business

closely together, a goal best achieved through research,
despite considerable strides made to date, a great

where

the

industry, with international brands well

way

becoming

well

known

national

brands in the United States.

will

increasingly

the foods which

around

to obtain

seasonally.

now

able

the

get

year

they have only been able

The American

corner

grocery, for

instance, carries beef bourguignon, ravioli and the mak¬
ings of an oriental dinner, while stores overseas feature
hot

dogs and the ingredients for apple pie. The transi¬
already well under way and the opportunities it

tion is

presents to

business

our

We have just

are

completed

almost limitless.

gratifying first

Corn

Products-Best Foods merger and are
in every area to meet the demands we see

regard

them

excellent

Again,

And

stepping

are

have

growth

4$ur

suggested

of the

year
now

geared

ahead.

opportunities

for

the

election

this

doing

entire research activi¬

that

the

entire

industry

expanding rapidly. Finally,
and more to develop our own man¬

are

agement people and management methods to keep ahead.
We

foresee

rapid rate of growth
comparable period.

than in any

HARLLEE

in the 60's

accelerated

In the service

,■

area

and

accelerating rate

and

Company system,

expect the

use

151

Southeast, as
is

the record of

established,

many

location for
success

manufacturers

the so-called

Harllee

Branch, Jr.

have

averted

favor

manufacturing
existing plants. Once
new

find

profitable

In the
first three quarters of the
past year the number of such
was 99 and the amount to

expansion plans made public

The

m lncreased Productive facilities is

selection

our

service

frf^yi2?^4inanUuac!uring
from 1947
through 1958—is
U]g

chi^rv

utter

>ear

area

the

site

for

Phints—1,350 in the

12 years
naturally gratifying. Equally

nevv

™?idl>* expanding

importance.

types of industry which had
previously

also

economic

and

management, it

that

Soviet

this

challenge.

not

The

Sen.

Styles Bridges

least

the

while

pro¬

the

too

kept sufficiently in hand
hampered ;in meeting the

has

had

anticipated,

inequities

in the present tax
With the continued high

competing with private interests

the

year

1960

predict

economy

Federal
was

what

inflation
will

have

The

effect
far

Government.

precariously

the

steel

one

even

The

basic

strong

had

primary aims,
priority. ' '

his

growth

expenditures

Consumer

and

Space Age with which

rate,

the

and

retail

sales

non-durable

The

will

indicative

Southwest.

rise

the

Gross
is

Age,
can

are

far

progress

reaching that

the
.of

loans

rose

should

business, with

be
new

readjustment

banner

year

control

this

new

Of course,

records being set in

which

boom will not
come, in

will

test

demand for

the

credit

also

economicr activity
in the
almost 10% in 1959 and a

there appears to be little likelihood that the rigorous
monetary policies being pursued by the.Federal Reserve

will

relaxed

the

over

near-term.

summary, 1960 should be a good business year.
Unless the economy is hampered unduly by strikes, or

disrupted by unforeseen international difficulties, gross
national product -may approach the $500 billion mark.
the

Southwest, further gains in employment/income

and production are expected.

HARRY
Former

The

Chairman

the

BULLIS

Board, General Mills, Tnc.

business outlook for 1960 is excellent in the Highest

degree—particularly
tion

assured.

national

product

that continuous steel produc¬
$500-billion-mark for our gross
(total of all goods and services pro¬
duced) will be passed early in the
now

The

and

year

entire
The

causes

movement

cession

early

will

many

for

all

instances.

strength

opinion, until 1961.

the

re¬

have

soon

little

Total

total

low

than

production

services

last

least

the

above

the

in
a

year

all goods
quarter

June's

had advanced by more than 10% in
physical terms.
Yet, in all these months, we did
not add to
Harry

Bulli*

our

stocks of goods.

need to increase

Thus

production once

again in order to fulfill the demands
of

our

mately
general

forward

From

clear.

low,

recession

the ef¬

one

of the vigorous

are

total personal incomes
have, grown markedly. Consumption

year

stage

the

high average for
will be attained.

year

$30. billion

this

durable

in 1960.
Since deposits have
proportionally, money is "tight" and interest
rates have been forced higher.
In order to restrain the
inflationary pressures currently evident in the economy,

further into the Space

both

risen

not

and

only speculate rather than predict.

1960

Any

to the Soviet Union.

reflected

expected

and

business,

pace

year can overlook

usher in the

;

Purchases

1959.

increase

;

are

age.

start gave

in
If the capital

again at peak levels. Auto¬
about 30% in the Eleventh Federal

decade.

increase

apparently high

figures.

District in

sharp

goods

were

Despite all sorts of gloomy
predictions, this country is
forging ahead in rocket and missile
development, and
we are
making gains in narrowing the gap which their
fects

downward

substantial

this year.

occur

confidence

greater

coming

strength

sources

currently
being .V planned
materialize,
in petrochemical—plastic capacity along

jump

Gulf Coast

the

budget

balance,

year

No business forecast for the
the

last

primary

the

1959, construction activity is in

relates

with the pent-up demand

President

one

was

which is not expected to be reversed before 1961.
Aided by the general economic improvement and a

the

income

fiscal

can

spending, interest rates will remain
high level because the Govern¬

yet

industry in

Vb:-.; '• V -''

prospects for the building trade do not appear so
Whereas this segment of the Southwestern

further

market.

early

been

highly significant

area.

another

present

money

has

but

new

missiles continues.

manufacturing and re¬
stimulated by this
the rapid development

been

chemical production is anticipated in 1960.

with

level of government

result

net

have

trend

;

adjustment of

some

activities

relatively

in 1958 and

spending will continue at the general $80
the major portion
going for defense
and associated items, so that the government
impact on
the national economy will remain the same. As
long as
level

corresponding

to be facing another year of reorientation

research

economy

Government

billion

rise—causing

favorable.

While collective bargaining will
for negotiations between labor

must be

country

pressure

probably

appear

Reserve

that weather
Crop production and live¬

the change from manned aircraft, to

The

our

foundation

agricultural sector

expected to be higher in 1960
on farm jprices and income.
hand, the cost of products purchased by

will

survival will be fought.
the

the

for

are

further

mobile sales

1959.

outlook

prefaced by the assumption

other

the

whole economic system must be geared
to meet that challenge.
In the stalmate of nuclear war¬
fare, it is on the ,economic front that our battle for
still

results
the

marketings

bringing

this

challenge to this country
throughout the world and the

one

stock

may

the Soviet

more,

overall

should show at least slight improvement

tumultuous

conditions will be favorable.

standstill, or seriously slowed down
negotiations are carried on. "
and

made

can

In addition, the development of better
forecasting techniques
is
allowing managements to
anticipate and avoid undue inventory accumulations in
refined
products.
Given, normal weather conditions,

shift.

longed

Milton Brown

under the
system,

experience

year's

operating-rates.

if indeed

The settling

establishing some sort
so that the economy of

head

$86.5

the dlversity °f these new enterprises. Paper,
transportation equipment and electrical ma-

machinery

that

However, electronic component

Congress.r.On the other hand, there'
is
a
great deal of public sentiment
of

^more *

be less severe in the
the industry has

may

Now

west

major labor-man¬

any

several

for

mandatory
import
quota
more
accurate; adjustments

agement legislation at this session of

important assets

had

condition which may

exist

problem
future.

lated

end

year ;,

there are indications that the

years,

the

cooling-off period

tremely great.

enlarge their plants and expand their
operations.

million2

1958

that

decline in profits and a worsening in the parity ratio.
The aircraft manufacturers with plants in the South¬

for,'the loss to
be
made
up
in the six
months before the fiscal year ends on June
30, 1960.
The year ahead will see continued
determined effort
to control inflation,
although the pressures of a possible
unbalanced budget and the steel
settlement, which has
hitherto been a pattern for all
industry, will be ex¬

area.
These plants will
investments of $53.5 mil¬

continue

farmers

sufficiently

This

legis¬

most

the

loss of revenue due to the effect of the steel
strike
unbalance the budget.
Undoubtedly some loss
has occurred at the
present, but it remains to be seen
whether industry can catch

is at an
average rate of
nearly 17 plants and $6 million of
investment per month. As far as we
can
foresee, this acquisition of new
industry will continue during 1960
without diminution. One of the

plants,

from

accelerated

would

service

represent

this

and

construct

lion.

concerned,

the steel strike before the

for

of 1959 by

industries announced plans
production facilities in

new

at all is proposed.

any

of electric power

During the first 9 months of 1959,

our

expected

legislation affect¬

of labor legislation,

scope

strike

10%. This compares with a predicted
increase of 8% for the electric indus¬
try as a whole.

can

pressing

most

far

business

ing

Southeastern
Northwest Florida,

to exceed the record
year

the

only

ment will continue to be

of The Southern

While this is

Hampshire

Even with

structure should be undertaken.

industry in the

Georgia,

Mississippi

pace

negligible effect on busi¬
activity in the Southwest.
surplus of oil in the petroleum
industry has been well publicized.

Comments

lation, including the annual appro¬
priations bills, will be undertaken,
in my opinion.
The i big
imponderable
at
the

comprising most of the states of Ala¬
bama

legislative

recession

The

over

year,

opening of Congress.

very

but

President, The Southern Company

New

From

the 4outstanding

The

the coming year

BRIDGES

such is the case, no substantial tax cut

BRANCH, JR.

The impressive growth of business and
Southeast is expected to continue at an

during 1960.

and

with an early July adjournment
Congress prior to the national party conventions, an

machinery of

us in a major drive on the wrorld-wide prob¬
hunger and improper nutrition. Our overseas
affiliates are making a splendid contribution within their

weiare

Senator

due

part

record.

must

respective countries and

STYLES

parisons.do not show gains as large <
as they have in the past in
relation..:
to
the national figures,
this is in

ness

1960-62.

the country cannot be brought to an

join with
lems

company.

ties.

period

million in 1960 alone.

moment,

enough
to cross national boundaries enjoyed the
culinary treats
of other countries.
Exchanges in ideas, technologies,
people and products have been stepped up. People the
over

transmission

three-year

Until recent years, only the traveler fortunate

world

the

for

expected to exceed $500 million, and to exceed $180

are

pace,

„

Secondly, I anticipate for the 60's the transition to
true world food

generating,

new

facilities

•

had only a
*

in their history.

must

Our goal
will be to bring food enjoyment and good nutrition more

deal remains to be done.

for

Expenditures

cater

successfully to consumer needs and demands,
therefore emphasize new product development.

requirements for electric power in the
and in the years further ahead, the
Southern system companies are engaged in the largest

distribution

The South¬

While the year to year com¬

levels.

the

HON.

continue

Southwestern perspective.

economic sectors to reach new record

high plateau. A firmer price struc-.
operations.

program

turned in a remarkable performance in
overcoming weakness in
three of
its
major

1959,

future

construction

Dallas,

;

western economy

power revenues

extended interruptions in steel and other industrial pro¬
duction due to work stoppages in 1960.
meet

1960 appears generally favorable when

outlook for

The

viewed from the

..•

The

Bank

Dallas, Texas

ture should be of substantial benefit to textile

immediate

BROWN

resources,

expansion of business and industry which we. are
predicting for 1960 is the normal growth trend of the
area.
It is neither reduced by the prospects of a business
recession nor expanded by the exaggerated characteris¬
tics of recovery from a depression.
However, cur fore¬
casts are based on the assumption that there will be no

National

Mercantile

President,

many new types of industry established in the Southeast.
The year 1959 was one of increasing productivity for the
textile industry in our area and 1960 should see opera¬

/
to

are

human

noticeable

materials,

raw

Despite the fact that

food and nutrition

well being. The
to the relationship

Thursday, January 21, 1960

MILTON

the

tions maintained on a

this

sumer.

area

influenced

from the textile
industry have grown more than 40% in the last 10 years,
this industry is percentagewise a smaller factor in our
industrial sales than in former years. This is due to the

climbed at this year's end to a record
no

have decided

our
are

decisions

food business enjoyed an era of un¬
Sales of retail food stores chalked
up
at
about $35 billion in. l^oo,

There is

diversity

and others.
"""<

precedented growth.

interest in

Their

growing purchasing power of citizens and thus by the
increasing size of the consumer market; by the favorable

The year

past ten years the

here.

locate

William

Commercial Financial Chronicle
and

The

(296)

our

people's
an

total

extra

growing
$10

expanding income.

incomes

billion of

inventories

and

goods in

levels

approxi¬

add

1960 to restore

consonant

with

our

Total construction in 1960 is
expected to set a new high
for the sixteenth successive
year at a little over $58 bil-

Continued

page

Volume 191

Number 5918

Commercial and

The
Financial Chronicle

(297)

Tomorrow starts with steel...

;

all like to do. Kids like
to plan ahead. So do adults. And so does U.S. Steel. 1
That's why we have spent more than 4 billion dollars in the
last decade and a half to bring you new and better steels. Take

And,

Planning for tomorrow is something we

the steel, for

backbone of
of Interstate Highways scheduled to be

example, that forms the very

America's 41,000

miles

Right

now,

dozer blades

in every part of the country, super-tough steel
chewing out huge hillsides . . . sheep's-foot

are

rollers with hardened steel prongs,

packing down roadways... massive
without breaking

like the one above, are

shovels ram through rock
teeth.

their extra-tough steel

the completed sections of this great

new

highway

system, welded wire fabric actually binds the concrete, making
roads 30 per cent stronger
...

and much less expensive to maintain

thousands of feet of steel guard rails divide opposing lanes

traffic, making driving safer than

ever

before... and hun¬

dreds of underpasses and bridges, which owe their very existence
to

completed by 1971.

*4*

steel,

ease

the ever-increasing flow of traffic.

Helping to build safer,
ical highways

designed to lighten
widen your
Watch THE U.

comfortable and

vital part of
your

work

our
.

more econom¬

job at U.S. Steel

brighten

your

—

leisure

job
.

world.

S. STEEL HOUR

television. See your newspaper

for time and station.

United States Steel

t't 4

•

)

t'V'-yi

■

;

V 'f '

Continued from page
Business

lion.

The

expenditures are

equipment

and

plant

expected to be up about 10%. Public construction will
reach a higher level, and highway construction is ex¬

level of

to hold to last year's greatly increased
billion, up from $600 million a year or

pected

two ago.-

almost $3

Housing starts are expected to be down 10%, or from
1,328,000 in 1959 to 1,200,000 in 1960. Because people are

and not because the cost of the
expected to rise very much, total

better houses

buying

house construction

outlays for houses next year are expected to be
only about 7%.
Food
manufacturers are expected
to increase

down
.

their

capital spending about 8% more than in 1959.
New
and improved "convenience foods" will accelerate their
growth and other family food spending will also increase.
Based on steel being in supply, 1960 will be a good
automobile year.
The estimates of automobile produc¬
tion are around 6,750,000 cars.

tighter, not alone

will undoubtedly be

rates

Money
because

the

because

the

Federal

the rate but also

hardens

business demand

is anxious

Reserve Board

to keep

foreign balances here in order to check the outflow ol
gold.
\ V
,
•
V
•
In my opinion, great economic growth can be expected
for the first half of the decade of the 60's, even though

federal

climb

when

periods

interrupted for short

may

individual corporations will have to roll with the punches,
ride out intervals of slow growth, but always be prepared
to

take

advantage of periods of expansion.

There

billion.
nomical

'in capital outlays by industry,

tion, the marked decline

failure of the money supply as has so frequently
occurred in our nation's history with most devastating
by

results.
But

)

short

are

inventories,

and

long,

not

inventory recession plants the growing seeds for

expenditures for needed plant expansion.
our

banks

possessing

Finally, with
liquidity twice that of 1929, we

safe foundation for the

expanding mone¬
tary supply we shall need to finance the remarkable
growth in the economy I foresee through 1965.
a

the

debt

federal

deficit

and

months

recent

averaging

costing

are

financing

about
nearly

seem

now,

The terrible burden of

deficits

the

incurred

were

during

neither

war nor depression. There have been four deficits
totaling $23 billion since the Korean War was stopped.

Budget Director Maurice Stans
in

rising expenditures

sees

The

total

States

with

has gone

the

Federal Government

United

nearly $16 billion since the Korean
period were not for

War. And the great increases in. this

born

and

ments

dustiy,

cost

press

the whole issue—and
a
patient and urbane
of our accomplish¬

approach

that

confidence

the future.

from

be,for 1960?
is, I believe, only one way

There
to

attention

such

quences

Half of these deficits
we
were fighting

when

years

prices

be uppermost in our
never before have

all,

public. So what will the conse¬

and

federal debt is the result of

years.

but

drug

about

furor

After

had

cheapening of our currency.

our

past

help

minds.

in-

the 1939 index. And all present

dications point to continued

the

can't

continuing inflation. Purchasing power of the dollar has
dropped for the past seven consecutive months. It is
down to 47.3 cents

wonder what they all will
the industry. Certainly, just

mean

hear¬

Suocommittee

xvefauver

,nc

ings and

heavy factors

are

glaring headlines and the widespread interpretations of

at this moment in the history of
pharmaceutical industry might, at first glance,
bit hazardous. The hesitant might look at the

attempt forecasts

the ethical

issues

Federal

into

high purposes. As an

which

little for

have

apologize and much of which we can
be oroud. We are a prime example
how well the free enterprise sys¬

George R. Cain

military and foreign aid. They were in domestic-civilian
These frequently involve multi-year or per¬

works

tem

for

benefit

the

incentive

We illustrate the

of society.

practice

action.

philosophy

programs.

values

manent

professions which has helped to
bring about a truly remarkable rise in general health
levels—and at prices that, over-all, are in line with the
economic means of the great majority of people, and in
line with the legitimate aims of any industry.
s
If we base our actions upon this fabric of beliefs, if
we can tell our story convincingly,
the net result of the
Kefauver hearings will react to our benefit. So I predict■>
that in 1960 the industry will emerge from all the sound

commitments for heavy spending

of this domestic-civilian

Much

in the future.

spending is for subsi¬

dustry, business, private finance, agriculture, transporta¬
tion, power, housing, health, education, States, localities,
individuals, etc. When they take subsidies they give up
independence and freedom. They submit to bureaucratic v
'

control.

;

Subsidies and inflation feed

Washington bureaucracy. By the
our
a

money

level

admitted.

ties

usurps

State and local

obivious

come

the

power

sources

all

Both

are

understanding.

new

Federal

Government, States and locali¬
finding it difficult to pay their bills.

are

American people. From them will

better climate of

products, the yardstick of success,
will continue but possibly at a bit slower rate than in
recent years. On the other hand, one never knows when
a new discovery will spark a series of better products in
any given area. On
such discoveries will depend any
spectacular gains in 1960.
;
In all probability industry research expenditures in
1960 will climb well past $200,000,000 mark for the first

the

expenditures

The hearings will in the long run be good for

good for the

Our progress

not

the Federal Gov¬

revenue

greater

encourages

••••

...

of centralizing

time

levels.

which

process

ernment
same

socialism

state

and

of cheapening

process

fury better understood than ever before by the gen¬

eral public.

and centralizing power we have descended to

In the

and

each other, and both of

them feed paternalism. Paternalism centralizes power

to the health

of service

through all kinds of federal loans, grants and pay¬
ments. The Federal Government is now subsidizing in¬

tives should have learned by experience not to postpone

should have

this astro¬

off

paying

for

3%.
5%.
Should the whole debt of nearly $300 billion ever be
refinanced at the new rates, the interest cost would be
upwards of $15 billion, compared with $9.1 billion now.
Interest

New

it.

from

plans

debt.

CAIN

Abbott Laboratories

President,

recov¬

Capital expenditures of industry in my
opinion, will not decline because labor will be short,
wages will be high, and research and development out¬
lays will bring forth many new wanted products. Busi¬
ness has not been wise in its capital outlay retrenchment
in any of our three postwar recessions.
Business execu¬
ery

are

Thursday, January 21, 1960

GEORGE

reaching its all-time

month

dies

Economic recessions may come from inventory liquida¬
or

this

debt

peak in the history of the Republic. It will reach $293

the

Chronicle

The Commercial and Financial

(298)

President,

trying to push their costs

BURGESS

Electronic

Specialty

Co.

increasingly aware of the
tremendous
opportunity
for
selling
merchandise
in
the world market, 1960 will mark the beginning of an
of

unprecedented

world

wide

prosperity. True,
competition
will
always be present and there will be
increasing

nism.

of economic

awareness

competition

from

However,

World

Commu¬

United

the

national product will

gross

time. This will be intensve and efficient research which

will advance the frontiers of therapeutic knowledge—but
to

levels,

As the United States becomes

era

the Federal Gov¬

ernment—States sacrificing their sovereignty and locali¬
ties their autonomy.

WILLIAM

States'

continue

look for

Taxpayers, pinched by levies at all ^
loopholes and avoidance at the ex¬

tax

of their self-respect.

pense

profligacy of the Federal Government has perme¬
the whole economy. We have increased total debt in

ated

the United States

this

have

increase

nearly
than

nearly $200 billion in five
is

private.

trillion

This will provide a basis
expanding defense expenditures
which
will
place
increasing
em¬
phasis on space exploration.
These

funds

will

dollars which
vate

of
William H.

Burgess

will flow

industry.

require

accrue

even

from

electronics

greater

will

percentage

the defense and space

potential

for

Electronic

budget, the
such
as
Co.
will
be

company

Specialty

years.

debt

now

their

debt,

and

will

Most

people

American

public

condition

present

our

wonder that the Warren

legislative

usurp
at

State

set

free

state

backs;
than

mind

convicted

pattern

-j/"'

the

operations,

Warren

markets. Such

In sum,

rec¬

decrees

see

every

health

Chairman
We

are

Senator from

entering

Senate

strength.
*
'
privilege of the rank and file of labor to organize
generally conceded. It is also conceded that legitimate
,

labor unions should have the

Virginia

Finance

gaining when they

Committee

these

etc.

Our

population

elements

for

the

good

all

mankind.
With

responsible citizenship, good
and
fiscal
soundness

there could be

Without

these

can

federal

have

wages,

the

power

grown

too

undermined

our

Harry F. Byrd

faced

are

fields.

serious weaknesses.
They

ditions which must 'oe reversed.
The President has

are

dangerous

con¬

predicted surpluses in

the current

Budget Director forecast

than

million

year as a

wage

I doubt that it will.
is

Industry

problem.

everybody's

population.

only

Not

himself

of
the

segment

other

any

solv¬

interested

affected

is
by

low

imple¬
people, the automobile indus¬
the railroads, the truckers and
entire
community around the

prices

but

costs

are

days of labor were lost>
direct result of strikes. Strikes
felt

are

directly,
our

but

the

farm

are

earned

imports
are

is not the only factor in
others. But in 10 years we have

this
pur¬

abroad, invested abroad, and given away abroad
gold and liquid dollars more than we have
from

foreign

nations

through

exports

goods

1959

deficit

running at the rate of $4

In 1958 it was $3.4 billion. Such deficits

indefinitely if

we are

can

billion.

not continue

to keep the dollar strong.

tolerance

of increasing federal
paternalism and
spending, increasing usurpation of power by the
Supreme
Court, and increasing arrogance by labor leaders is a
clear sign of national weakness
developing
These

among

are

three

menacing

subversions

which must be brought under
control.

our

us.

system
1

there used
strong
ignores
those
as

but

that

de¬

pendent upon that of the farmer.
Farm
Sen. Homer

in balance of pay¬

be true that there are
farmers

of' economic'' health

state

and services.

The

politically

products must

importance at this time. The
imports affects our balance of

many

and that they are not so

who deal with the farmer and whose

of the

much

It may

to be

Capehart

prices this

year

are

expect¬

slump 15% below 1958. The
"parity" squeeze tightens, too; in
relation to prices they pay, the prices farmers receive
are at a
19-year low. Hogs recently hit $12 a hundred
pounds in Chicago, the lowest in nearly four years, how¬
ever, on the farm they are much less. Corn brings $1.12
a

level

problem; there
chased

not

man

matter of great
our

the

farm.

money.

Our

fiscal year and for fiscal
1S61, but this may be premature.
It they
develop, they will be largely the result of infla¬
tion. Both the
President and the
rising expenditures.

to force

$17 billion in

will for freedom. We

problem.

the

impaired; when they

difficulty now. Serious imbalance siphons out our
This, among other things, involves the value of

The

our

should
But it

Congress

farm

the

ing

to stop produc¬

power

production

gold.

today with growing inflation,
sinking foreign trade bal¬
ance, dwindling gold reserves, Russian
gains in the con¬
tinuing race in scientific, military and economic
are

economy

invariably increase production costs. Some

our

have

system, changed

Indiana

subject

should

of their

increases unjustified
increased production, they create inflation.

ments

bureaucracy

arrogant. These

our

attitudes, and hobbled

our

comparative level of

too big, usurpation of power
by the federal Supreme Court grown
too mighty, and force of labor
lead¬

These

and

This is

grown

ers

year

problem

try,

imperiled; when they have the

tion

damage is hidden. For instance,
compete in foreign trade markets.

session

payments with other countries. We
sapped

this

political

farm

important

ment

the

nor security with mili¬
tary preparedness. These are simple
requirements. But we are showing

paternalism

bonafide represenatives

undue

neither

CAPEHART

Senator from

farmer

during the past

solid progress

weakness at many points.
Our strength has been

are

The

privilege of collective bar¬

almost

fear for the future.

there

of the sixties

On the threshold

irresponsible labor leaders have the power
virtually to shut down the country, our national security

government,

of the industry

the hallmark

been

most

when

But

upheavals in specific

should not affect over-all progress.

HOMER

membership.

of atomic energy,

new era

rocketry,
increasing. Our resources
are great.
Our productive know-how and capacity are
yet unsurpassed. Representative
democracy with free
enterprise should thrive soundly on
space,

be expected in our over¬

for pushing toward the goal of better
longer lives for more people .everywhere.

the

with

deal

The

HON. HARRY F. BYRD

can

and economic

United States

being

100%.

plants—in Eng¬

new

reason

HON.

tional

over

world,

that has

and

institutions, and invading our privacy.
Without the great strength developed in this
country
in its earlier days, it would be difficult to survive this
latter-day federal bureaucracy and judiciary. Federal

tronic

sales increased

for four

our

Probably

gross

American

the

projected gains, of course, are always

since World War II.

usurpation, combined with abuses by irresponsible labor
leaders, curtail sound progress and insidiously sap na¬

Co.'s

which

for 1960, we foresee in general the same kind

growth

greater. a"d the outlook will be for a continuous in¬
crease in business of at least 50% in 1960.
In 1959 Elec¬

Specialty

say.

area

countries. But these

:";V-

Court's

can

breaking ground

subject to political

Communist

Some of the best legal experts in the nation have

undermining

seas

Supreme Gourt has been able to
and executive authority, strike

•

ognized the

man

health needs of the

and

persons

subversion.

land, Italy, Australia and Colombia. The peoples of the
world are as hungry for better health as for the other
essentials of life. Continued growth, in keeping with the

sovereignty, deprive citizens of tradtional free-

and

doms

powers

what extent

Possibly the greatest tangible gains in 1960 will be in

pharmaceutical manufacturers have made significant, if
little understood, progress. We at Abbott, for example,

$550 billion in private debt.

tax

back to pri¬

The

dollars

billion

$350

overseas

The

to increase.
for

bushel in Chicago

(down from $1.21

year

ago), but

is selling on the farm for less than $1 a bushel. Cotton
was
the cheapest in December for any December in a
decade.
And the predictions are that farm income will
slide

further

this

all-time high.
It is costing

year.

Yet the
<

cost

of
i

living is at an
-

the taxpayers more to run the Depart¬
Agriculture than at any time in history. From
its establishment in 1862
through the 1953 fiscal year
it cost $27.6 billion to
operate the department.
Since

ment of

1953
we

will

have spent $29 billion and by next June
have spent a total of nearly $36.6 billion.

30,

Obviously there is something

wrong and yet Congress
reluctant to settle down and face the problem.
For several years I have been
pressing a bill which I

seems

Continued

page

Volume 191

Number 5918

The
Commercial and Financial Chronicle

...

(299)

hand in things to come

Shaping another sun
I

7000

been created by

degrees

...

Learn about the

inferno approaching that of the sun's surface has

the scientists of Union Carbide. The energy comes

now

arc.

Through the

use

exciting work going

carbons, chemicals,

metals, plastics, and nuclear

from the intensely

Write

hot carbon,

of mirrors, the heat is reflected to form a single

gases,

energy.

for "Products and Processes"

Booklet

I, Union Carbide Corporation,

30 East 42nd

burning image of the electric arc at a convenient
it extends the limits of

high-temperature research on new

For years,

electric furnaces to capture many
the finest steels.

of today's metals from their ores

But, in addition to extreme heat,

light that rivals the

sun.

In motion picture projectors, its

with

every

The carbon

arc

and to produce;

brilliant beam floods pano- ;

vivid detail from a film no larger than a postage stamp.

is only one of many

element, carbon. The people of Union

the, carbon arc produces a dazzling;

ramie movie

screens

fired blazing

Union Carbide Canada

Canada,

Limited, Toronto.

materials for the space age.

mammoth carbon and graphite electrodes have

St:, New York 17, N.Y.

point. Called the arc-image furnace,

useful things made from the basic
...a

Carbide will carry on their research to develop ;
in

even

better ways

for carbon to serve everyone.

hand

things to come

.?.■

The Commercial and Financial
48

Continued from

for greatly
industrial uses of

stepped up research into increased
products. This would not be an overnight solution
but in the long run I am confident it would give the
answer
to our mounting surplus which is costing the

farm

million

President, Texas Eastern Transmission Corp.

solution of the farm prob¬

It would seek .to create a crash program

taxpayers

There is good
cellent

year

tomers

have

■■■■

generally favorable business climate
anticipated for the year should fur¬

the

sales
over

As I say
done

this is

situation.

immediate

the

relieve

Rockefeller's

proposal

60,000,000

take

out

production and put them into the conservation reserve
has merit. In fact, I have a bill pending to take 40,000,000 acres out of production.
.
In view of the steel strike settlement, the question
of

additional

some

will

legislation

labor

probably

the time when the atmosphere is not so

until

over

charged by politics.

:■ • v.,

Vi".Ji,'.'

■

see

the

lifting of the

CARLL

ELMER

fifty-nine will close as one of the most pros¬
perous years in the history of 'the country.
Most econ¬
omists seem to feel that although any all out boom in
business for
1960 has
been successfully counteracted,
conditions

sound

are

and

healthy for a good year.
Any appraisal of 1959 must

clude:

in¬

steel, but

other items

many

chandized here for less than

produce them,

tight

money

the continuing
creased

cost

While

cold

mar¬

normal

seasonal

Continued

decline at

time of the
with

inflation

stem

quent tight money and high interest rates

Carll

the

financing
with
higher
interest rates
and
maturities, which increase the monthly carrying
Any

affect

builders supplies, but will also have its
appliances, furniture and other items required
furnishing of new homes. Foreign imports should

make

further inroads

1960.
A

tight

most

mortgage

the

year

the

domestic

markets

market

should

there

continue

may

through

some

easing

about

mid-year when foreward mortgage commitments
presently in existence will be very much depleted or
exhausted. The present mortgage situation and the near
future prospects do not argue well for
housing starts in
1960, certainly not for the first half of the year. Unless
there is

material

change in the

economy

icies of the Government and the Federal
starts in 1960 will be much less than the
many

are

and the pol¬

Reserve, house
15% reduction

forecasting.

With the high earnings of most
corporations this year,
by stock splits, increased dividends and year
and extra

evidenced

dividends, we have in prospect for 1960 a
continuance of Federal Reserve tight
money policies, at
least until there is real evidence of the
beginning of a
slump in business. Other factors to be considered are
(1) Continuance of the Cold War and high defense
costs. (2) high interest rates and a
tight money market,
(3) increased foreign competition, (4) continued threat
of strikes, and (5)
reduced housing production.
On

the

other side

pects

for

serious
diflerences
work
and

of Vthe

balanced

ledger there are, (1) pros¬
budget which helps for a sound

thinking to find

between

labor

and

way

to reconcile

management

without

stoppage and the consequent loss to the
economy,
(3) prospects for a higher dollar volume in con¬

struction other than
housing.
:
While many conditions have
all the ear marks of 1928
the many built in
stabilizers, such as insured
better control

deposits,

of the

stock market
and

others should

insure

and

through

price

contract

re¬

redetermination

"T"

through the S. E. C.

SociaI

shifted to buying durables
There
the

are

adverse

Security and

major depression.

again.

•

of international payments,

balance

ative unfavorable balance, of trade and the
less residential

theless,

the rel¬

possibiiity of

housing because of tight money.

Never¬

expect to see GNP, Production, Employment,

National

1960. ;Tbere is

uncertainties ahead in

some

Income

Credit

Consumer

and

all

make

new

all time highs.

Business

CASE, JR.
Sessions Co.

looks

have to be

bright for 1960. Shortages in steel that
made up will mean higher volume for the bolt

and nut manufacturers
This

well

for all the metal trade.

higher volume, together with the shortages,
the advantage of the American
Steel

ufacturer.

man¬

production has been
lot of ground

low for two years <so a

■/.

will be made up.
It

.-Vv-.V,;

not

likely that the American
manufacturer will receive any im¬
mediate help from the unfair foreign
competition.
However, those of us
who forge metal have found we can
move it further, into a wider variety
of
a

shapes, and more accurately. As
result, we have new markets open¬

ing to

which heretofore

could

not reach. These markets are not eas¬

ily serviced by low wage paying for¬
eign producers. The opportunity of¬
fered here is great and the market is

George S. Case, Jr.

larger than that we may lose abroad.

likely that the decade ahead will have
well as its opportunities. It will pay to
keep costs down and to watch out for hidden danger as
the problems could add up to a worse recession than any
It

seems

its problems as

War II.

the opportunities look better

Despite these problems

There could be even more dramatic

in the decade ahead.
progress

than in the decade behind us. Cold war tensions

might be eased without increasing the danger of' the free
world becoming satellites of the Communist areas. Noth¬

ing is

CASPERSEN

GEORGE

President, The Lamson &

since World

valuable

as our

It must be preserved

freedom.

because without it there is

Chairman of the Board and President,
Beneficial Finance Co.
If

the

forecasts

many

for

business

meaning in this life. How¬

ever, if cold war tension could be eased without the dan¬
of our losing our freedom, there would be real growth
throughout the world in all kinds of ways.

activity for the

year

1958

were

more pessimistic than the facts
warranted, the op¬
timistic projections for 1959 underestimated the remark¬

able

resiliency and bounce

The

pace

recovery

the

American

economy.

Index

former

reached

levels

and

earlier

is interrupted

did

not

recession

there

levels.

until

than

drop
was

distorted

antici¬

was

less of it,

comes

boom.
at

were

burgeon into

sumers

and other

cars

goods

and

were

The

in¬

using

con¬

considerable

Business

process.

was

equipment and modernizing

\
O. W.

Caspersen

credit

plants and
lot of old plants. It looked
new

if the accelerating pace of business
activity would soon
have to pause for breadth and that the
boom would peak
out in the spring of 1960. Then the steel
strike took some
of the steam out of the boom." It

lion in the third quarter.

payments maintained
little change.
and the

use

dropped GNP by $5 bil¬

Fortunately, transfer

consumer

the

third

and

However, toward the end

quarter, it began to
in industries which

employment
steel

disposable income with

scare and retail sales
credit continued higher. In the
caused enforced unemployment

early weeks the strike
mainly in the steel industry.
of

and other

Consumers refused to

Secretary

Mitchell

had

cause

felt

secondary un¬
shortage of

the

figuratively

eat

his hat.
The

cooling

settled

the

economy
the boom.

the

labor
ness

1960

off

issue

period

work

unquestionably

the

steel

rules, but
to

stretch

strike

its

effect

out

the

has

not

the

life

Whether the 3trike is settled
before, or after

day

Taft-Hartley period; and despite possible
in the railways and on the
docks, busi¬
its way to new heights that will
carry through

turmoil

without

readjustment.

rebuilt

money

for all this

economies

Japan,

business.

This is healthy.
The in¬
terplay of competitive forces means
great

consumer

building
a

great development and building of addi¬

installations.

Germany,
France
and
Italy. will
liiean more rivalry for American

durable *

consumer

Furthermore, the
spending is present—on the
big companies.
v
Nineteen-sixty will see more for¬
midable
competition from abroad.

were
spending it. Contrary
they had swung back to buy¬

to 1958

great industrial expan¬
the steel strike will

books of the

much.

peaks, and

will bring in
delayed

from New York

capital

but because
so

CELLER

EMANUEL

spending

tional

Consumer'

new

The

way

steel

generating

considerable

the

sion.

pre-

the

the demand for it increased
The
economy
was

ing

Nineteen-sixty

lot

its

the decade

if that progress

at intervals.

HON.

Money became tight not be¬

there

cause

quite

active year and

of great progress even

U. S. Congressman

exceeded

pated. Unemployment improved
but

one

faster

was

anticipated.
The Production
Index, the GNP and the Employ¬

ment

1960 will be

sure

ahead will be

than

strike.

although

The expected losses did. not materialize,
maintained their buying and furthermore

consumers

ger

increase in monthly carrying charges re¬
percentage of potential buyers and will mate¬
rially affect house sales in 1960. This reduction will not

in the

feet

many
nations clauses.

favored

conse¬

haSj put con¬

duces the

also

cubic

eliminating

mortgage

only

one-trillion

below

pressure on the supply of mortgage money.
heavy discount on insured and guaranteed mort¬
gages requires builders to turn more to conventional

affect

put a drag on the recovery while consumers
pay off their debts before being able to spend for

goods.

new

stabilizing

has

year.

The

charge.

and

system Texas

own

the progress that is being made toward the resolu¬
tion of certain longstanding problems.

siderable

shorter

periods would cause heavy losses to cred¬

itors

emphasis being placed on the
return.
The resulting benefits

In summary, the outlook for gas in 1960 is most favor¬
able in view of the country's overall economic outlook

are

this

lated in boom

depends heavily on senior capital, appears to be
making good progress in its efforts to impress upon reg¬
ulatory commissions the importance of money costs as a
factor in setting rates
of return and 1960 should see

On its

alarmists

that the load of consumer debt accumu¬

which

price of gas in the field.

the

confounded

have

they

process,

strike, high levels of output in most of the large
consuming industries should be reached in 1960.
optimistic outlook for the gas industry does not
stem from higher sales
volumes alone.
The industry,

and

sales

the

The

postwar

who preached

gas

rate

the

the outlook for industrial gas sales also is encour¬
aging. A close relationship exists between the level of
industrial production and industrial gas sales. The larg¬
est industrial users of gas are the processing industries
such as chemicals, refining, steel and cement and the
electric power companies.
With the settlement of the

switch their spending for hard
goods to soft goods and services but they continue to
spend freely bolstered by the income stabilizers built
into the economy.
When they spend they help their
budgets by the use of consumer credit.

estimated that from
for spaceheating. Fur¬

the gas industry should be tremendous.
Some progress is also being made toward

indicated

have

consumers

recessions that they may

year

and

Russia,
and the in¬

store

efforts

construction

residential

industry

gas

Gas Association estimates that
approximately 500,000 new heating customers will be
added in 1960 through conversions from other fuels.
With the expectation that 1960 will be a good business

negotiations

Elmer S.
high and demand for goods in many
other areas is strong, the house mar¬
ket, especially in new houses, has dropped off

the

level

the

thermore, the American

about

defense.

department

the

accomplished much through its outright
purchase of the Rayne Field, Louisiana, gas reserves of

war

recorded,

ever

all-time

high of
1,396,000 units reached in 1950. Al¬

the

relate

Eastern

can

interest rates, threat of a
rail strike, the outflow of gold, the
achievements

directly

the

ket, high

scientific

total

highest
close

and

conventional

mer¬

creates

though the outlook for residential construction in 1960
is for somewhat fewer residences, a reasonably high
level of activity is expected.

competition, not only in automobiles
and

ond
Orville S. Carpenter

And

comes.

these efforts result in less

Government deficit
and its effect on inflation, the un¬
settled steel strike, increased foreign
large

Acceleration and cost of living
contracts will also add to consumer in¬

steel

President, Industrial Trust Co., Philadelphia, Pa.
Nineteen

neverthless,

activity

sales be¬

70-75% of all new houses use gas

interest ceiling on
FHA mortgages.
The banks and other money lenders
are
just not interested in letting their money go for
5^4% when they can do better elsewhere.
Also, I am in favor of lifting the interest which the
Federal Government is permitted to pay on its long term
bonds.
Having to rely on short term borrowing is no
way to manage the national debt. It is too costly.
intend

Thursday, January 21, 1960

without wage increases.
clauses in wage

had to

construction

potential new cus¬
tomers.-Housing starts for 1959 are
estimated at 1,350,000 units, the sec¬

sur¬

the in¬

direct bearing on gas

cause

Governor

acres

achievement for

Residential
has

Something must be

long term plan.

any

dustry.

of more than
little more re¬

farm

7.5%; commercial upindustrial
rose
10.2%.
circumstances, this is a

remarkable

products which with a
search could be adapted to industrial uses.
other

100

penditures are budgeted 10% higher than in 1959.
It is inconceivable that wage disputes will be settled

and

Under

Department of Agriculture knows

the

1958.
were

6.5%,

products, corn products are another. In fact, the
relatively small staff of the utilization research agency

in 1959 rose about 9%
Specifically, residential

gas

sales

farm

estimates*

current

According, to

how industry can utilize

Soybeans are an example of

industrial sales.

ther stimulate

day in storage alone.

by high rates of construction

been created

could produce all

farmer

New residential cus¬

for the gas industry.

activity, and
-

to expect that 1960 will be an ex¬

reason

he wanted to and find
a demand for it.
It would bring prosperity not only to
him but to the farm implement people, the railroads
and the truckers who haul the farm products to the
market and the entire farming communities.
The

business, plant and equipment for 1960 is up 10% over
1959, and at the previous peak of 1957. Advertising ex¬

CARPENTER

ORVILLE

page

believe would be a long term
lem.

Chronicle

(300)

Indicated

spending

for

productivity

wider

and

dis-"

tribution of goods for all.
I have
.confidence in American business in¬
dustry.
It
will meet the growing
challenge of foreign competition by
itself

growing

Automation

greater

even

costs.

tions

competitive.

bound

degree

Europe's Common market
and

the

come

bring down

Emanuel Ccller

na¬

Outejr Seven nations will

all

offer acute

challenges but the two-way street of trade will stimu¬
late

industry to greater effort.

find
for

mass
as

will

ican

markets for

Our manufacturers

their products in

the standards of living in

the

demand

for

manufacturers

will

these countries,

foreign markets rise, so

American

products.

These

Amer¬

already building their own
plants in these areas, buying European companies or
setting up U. S.—foreign ventures.
In the
meanwhile, in 1960 our economy in the United
States will place on** the
assembly lines and pour out
are

goods and services at the astronomical figure of half a
trillion dollars a year.
Thus, 1960 should be a

of
and

year

prosperity.
services
air

American

than

will

consumers

ever.

conditioners, freezers,

They

will

ranges,
-

buy

buy
clothes

goods

houses,
driers, dish*

cars,

Continued

page

'V'
Number 5918

Volume 191

'•

The Commercial

,,,

and Financial Chronicle

(301)

coal and aircraft industries.
ital goods expenditures will

Prospects for

Cap¬

the slack from declining

con¬

her earlier expansion rate in I960.

investment

Production already is gaining mo¬
mentum and will rise 5%.
Ab¬

sumer

Foreign Trade

buying

plans

are on an

will

not

and

take

upward scale/The
looming European economic split
affect

Common

Imports
faster

Continued from page 3

did
U.

in
S.

exports

Market
;

will

than
will

expand

exports

1959.
be

the
1960.

slightly

just

Purchases

to
in

area

they

from

the

This means
private - investors will be a result of recent lifting of quotas.
Additional liberalization of dollar
called upon to furnish the remain¬
ing $12 billion annually needed to, import restrictions is certain but
close the gap between the capital
full convertibility of
sterling is
exporting and importing nations.
not in-the cards for this
year.
Since the end of World War II
guarantee insurance.

at least 25%

that

After

year

tightening,

of reform and belt-

France

will

pushed

ments

ship¬
imports fell

overseas

while

result of the throttled

econ¬

But in 1960 imported gouds,

omy.

particularly

will
jump 8% due to sweeping relaxa¬
raw "materials,

tion of quotas and other curbs on

dollar

in the Common

goods and

Market.

5%.

French

exports

Gold and dollar

exceed $2

will

reserves

billion and will remain

rising

tourist

receipts, the competitive position
of French products in world mar¬
kets and one of the strongest of
European currencies.

normal steel and auto exports last
year

bolstered

high,

resume

Belgium's
slow

ence

will experi¬

economy

recovery

but the

coal

glut will continue to stymie over¬
all
production and employment;
Exports will improve moderately

End of

hamper the textile lines.

steel strike here also will cut into

from Amer?
requirements in
1959.
Imports from U. S.—down
5% last year — will hold at the
present level. The recent series of
laws designed to promote Belgium
as
distributing
center
for
thq
Belgium's

ica's

bonanza

emergency

Market

Common

will

vestments from the

bolster

government concentrates
finding new world markets for

its businessmen.

Textile and steel

industries will continue the come¬

sales
tion

aggressive U. S.
result of import relaxa¬

but

back

by England

Checking the rate of

expansion is
in

Netherlands.

the

backlogs,

sumption,

Orderbook

investments and con¬
due to escalator wage
Continued

and France will

economic

the principal worry

annual amount of
granted by the
world's
commercial
banks to
overseas customers has been less :;
than $300 million. In no year did
the I figure
surpass $500 million
and it is improbable that the rate
will reach more - than $1 billion >
a year by'1970.? Investment, guar-.;;:
antee
concessions Cby. the less-/,
developed
nations: • along withe
average

the

loans

long-term

3%#

avoiding double taxation;*!
capital-exporting countries •
and new laws to encourage the;"
outflow of private capital abroad
will lift direct foreign investment
and reinvestment by businessmen
treaties

in the

to $8 billion a year.

the West

European

Increased

Sees

Securities Flotation >■"

remaining"..$3/billion

the

Thus

;

required annually to finance the
development needs of the capital-

the

nations

importing

Free

raised through in¬

World must be

flotation of
securities in the world's financial
markets. Despite the gloomy ex¬
direct investment—or

Chemicals is

its chemical group,

bad taste left over
bond days of
the Twenties and Thirties, it is al¬
together possible that this rate of
and

perience
from

defaulted

the

bond

stock and
tained
set

during

firms in

the

through the eight divisions of

W. R. Grace & Co. stands among the top chem¬
fifty-five

United States. These divisions, with

plants in seventeen countries, contribute to the progress and

The trend that

the past two years

profits

of hundreds of industries.

S. and European un¬

for more

ical

issues will be at¬

day.

some

business. Today,

our

houses to offer secu¬
foreign businesses un¬

derwriting
rities

doubtedly will show
ward

curve

Three

Co.

reason are given
observation. First of all,

losses

which

firms

the smaller
internationally-minded brokerage
houses eager to lay a foundation
have

made

for their

for

way

for

the past two years have been ar¬

Second,

interest

lower in the U. S. than in the

country

where

quired.

virtually

every area

human prog¬

of activity: agriculture; medicine; elec¬

transportation; clothing; nuclear power; food

household goods.

capital is re¬

the

dearth of out-

And third,

$6,000,000 Washington Research Center.

packaging; weather forecasting;

generally

rates

our

tronics; construction;

ranged by this streamlined ag¬
gressive kind of brokerage house.
are

ress

during

firms

overseas

wide variety of materials. Each product owes its
conducted both by the operating divisions them¬

products of the Grace Chemical Group serve

all

floated

W. R. Grace &

The

foreign operations. Prac¬
of the new securities

tically

produces

selves and

Wars

World

the

between

growing company in this field,

merit to research,

in¬
suffered

the old established Wall Street
vestment

come.

principal

this

for

As befits

sharp up¬

in the years to

,-V..

•Tets 101* accumulated reserves
up

by the

many

built
giant investment

trusts, mutual funds,

ings, etc., beckon
vestment
:
>

new
.

"'Now let

the

leadoff

hop

controls

Western

liberalization

our

DEWEY AND

GRACE

to Europe,*

over

Continent

round-the-world tour.-

Recent

THE

CHEMICAL
•

U. S. at least
in I960.

POLYMER CHEMICALS DIVISION

Europe in a

10%

$400 million,

The first of these nations

whose economic and trade outlook
will

analyzed

Kingdom, where
by London

United

the

1960 is

Year

regarded

OVERSEAS DIVISION

RESEARCH

•

SPECIAL

SYNTHETIC

CAfALYSTS

RUBBERS

•

AMMONIA

and

kept

will

weak¬

If wages and

compared
when the

line,

last

country

10%
climbing

year's

was

out of its mild recession. Although
the general

picture is bright, there

are

remain strong.

with

Digitized for dark spots in shipbuilding,
FRASER

'•

prices
then the
Indus¬
trial output
should rise about 5%
can

pound

•

AND RESINS • SILICA

without
running into inflation, balance of
problems

UREA • HIGH DENSITY
GEL AND OTHER
DESICCANTS • SULFURIC ACID • CONTAINER SEALING COMPOUNDS • PLASTIC FILMS AND
BAGS FOR PACKAGING • BATTERY SEPARATORS • FERTILIZERS AND AGRICULTURAL CHEMICALS
NUCLEAR REACTOR MATERIALS • ULTRA HIGH-PURITY SILICON • PLASTICIZERS AND SYNTHETIC
LUBRICANT ESTERS • AND OTHER INDUSTRIAL CHEMICALS AND CHEMICAL SPECIALTIES
PRINCIPAL PRODUCTS: SYNTHETIC

POLYETHYLENE

the present
upward curve

ening pound.

^
1

lenge." The number one question
is whether Britain can maintain

payments

DIVISION

Chal¬

GRACE CHEMICAL DIVISION

HATCO CHEMICAL DIVISION

GROUP

responsive effort to help

alleviate
Washington's balance of payments
problems, along with sustained
economic growth in that area, will
lift Europe's purchases from the

ALMY CHEMICAL DIVISION

DEWEY AND ALMY

import

DIVISION

DAVISON CHEMICAL

■

111

CRYOVAC DIVISION

types of irH*
;
':>'

Prospects

European Trade

pension sav¬

avenues.

7 Hanover

in¬

U. S. in 1960.

the

Square, New York 5, N. Y.

page

Continued from

page

sets—more than ever.
Then, too,
they will buy more vacations.
Whether the United States should pour more of us

television

into

wealth

will not, in my opinion, se^ve the
of the United States. A decade hence can

interest

best

tragically reduced and stagnant in the areas
public health and public resources.
If
the United States does not at the time of prosperity, in¬
vest in the future, the forecast for 1970 will be in snockfind
of

la.e 19ol.

7-7

ductive endeavors.
Thus

reaffirm

best

can

strengthen

;

in an effort that is
benefit ourselves and the people of the world.

leadership

our

and
to

economy

own

our

One

the ointment is inflation.

fly | in

This must be

must

ures

budget without regard to our public
and defense needs can adversely affect all of us. /
But

balanced

should, for ail intents and ^lirposes,
for business, labor and the consumer.
must not lose sight of the dangerous lags which

Nineteen-sixty
be

good

But we

rise

can

year

/ *;'

plague us.

;"/;./,/
;/
retail

sure

President,

In the electric

The

Detroit

Edison

Company

seeable future is the constant

responsibility of all man¬
agement people. This is mainly because the planning,
financing and construction of a m?jor facility such as a
generating plant takes from three to
four years.
To allow for this leadtime, electricity requirements must
reasonable

with

ascertained

advent of
This

particularly

important

ligations

Only long
planning can

assure/the

weeks

the year indicate

that

cars.

market
than

1960

will
it

has

been

7 million units. This would make it

retail.

sales

last fall

for

1960—made

early

would

soon

1960

estimates

L. L. Colbert

rates/and

favorable

supply
symbol

which
of

ample

have

the

Walker L. Cisler

become; the

American

electric

power

is the 7,600-square-mile Southeastern

case

Michigan/territory served by Detroit Edison.
tionwide

economic

recession

1957-8

keenly in this area/ Yet the past 12 months have

mostseen

have

been made

many

raise

reasons

few:',

:■/

motorists

'■"

figures show that in the past year
Michigan made the greatest gain of any state in our na¬

tion—an
In

estimated

this

17%.

period,

same

unemployment

uced,( and automobile production
that of

was

greatly
30%

25 to

was

re-

over

the

previous year.
It is true that many companies in our area,
including
our
own
and many thousands of people — were ad¬
versely affected by the steel strike. Nevertheless, 1959
turned out to be a reasonably good year and now that
the

strike

issues

are

settled

believe

1960

will

better year

both locally and nationally.
•./,;.//'
industry prospects for
1960, the electric power companies are planning and
working toward new records in generating capability,
production, sales and revenues.

even

As to nationwide electric power

By the end of this

year, total generating capability of
industry, according to Edison Electric Institute
studies, is expected to advance 7.2% over 1959 for a total

the

176.7 million

kilowatts.

Electricity production for 1960 should run more than
7.5% higher than in the past year to a total of about 760
billion kilowatthours.
It

estimated

that

sales

throughout

the

industry

will rise 8%

to a new total of 675 billion
kilowatthours,
number of customers will
approximate 59 million.
The revenues of the nation's electric
companies should
be some 7% greater than in the

and

preceding year—about

$9.8 billion for 1960.

Incidentally, though the Russians

are

working hard
productively at the task of expanding their nation's
electric power
supply, there, is little indication that
they will catch up with the United States at

and

the

112

foreseeable

any

future.

million kilowatts

Their

by 1965.

goals

In that

call

for

time

110

the United
million kilowatts, topping
Russia by at least 133 million
kilowatts.
Any look at the future of
electricity must include

States

review

country.

Atomic
the

planning

brief

some

this

Our

Power

western

for

atomic

power

example

project,
Lake

reactor

the

located

Erie.

This

near

progress

Enrico

Monroe

one

atomic power

Fermi
the

projects, undertaken by various companies
l£,e natAon' which wil1 cost 5570 million and

afford 1,400.000 kilowatts of

power1

electric

hum
built

**v.rrni pr°ject> construction of the non-nuclear
ErtSf
turbme-generator facility being
by Detroit Edison—is
C°

ment

proceeding on schedule in
Reactor Develop¬

n>atl0n with the Power

Company

reactor plant

construction

program.

nonpnt"«=niiCrfaK *GSts of assemblad reactor plant comDpwknml being earned forward by Atomic Power
actor
Thpfi Associates, Inc., basic designers of the reboth thl m,Piie
WJU contlnue through next June and
are s^hLXi
/ and no1n~nuclear portions of the plant
♦

this

vear
>ear'

lnhSr,C°TiP
Subsequently,

n durin& the latter half of
year-long

program

low-

business

/ --/'/.

option"

—

are

size

be avoided

and

new

being

year

1955.

Sixties.
motive
1950's.

demand
We

not

industry expect increasing auto¬
in 1960—but throughout the

now

mediately ahead, and by 1965 this age group is expected
be 25% larger than at
present. These young people
cars

and

strong

market

for

cars,

especially used

economy cars.

abbut 58 million ears now in
use, as compared
with 36 million ten
years ago, the annual scrappage rate
in the same period from
2V2 million
to well over 4 million.

By 1965

ber of cars in

and

that

the

5l2 million.

use

expect that the num¬
will range between 66 and 69
million,

scrappage

rate

will

probably

reach

represent

new car

regis¬

compact

cars.

units in 1964.

analysis

substantially

the

correct,

automobile

project

market

and 30%

during the next five years
growing convenience-size car market,

complete line of body styles in the field,

with

includes

either

six-cylinder
four-door

of¬

avail¬

V-8 engines. This line

station

wagon and the-only
domestically produced convertible in the low price range.
a

new

So far, during
the 1960 model year, the
station wagon and the Lark convertible have
for

25%

the total

sales

four-door
accounted
Dealers report that

volume.

9.6% of S-P's retail deliveries have been Lark converti¬

bles, well above the industry average of 4.5%.
In
V-8

addition, Studebaker is offering the lowest priced
cars

in the industry.

;*7

■7,/,,vy

century old, the manufac¬
ture and sale of motor vehicles is today as promising as
it was in 1900. The automobile business is probably the
Although

than half

country's oldest and largest growth industry.
Trends that will increase

car ownership in the future
growth, an expanding suburbia, increase in
family income, growth of less populated states with
greater travel distances, decline of public transportation
facilities, and the new national highway system offering
more pleasant, convenient use of cars.

include

Trends favoring the Lark-size car will include in¬
creasing popularity of its economical and maneuver¬
ability features, more multiple car ownership by families,
traffic

congestion in urban areas, and greater competi¬

tion for the

consumer

dollar by more

ucts and activities.

recreational prod¬

People are increasingly buying selectively; they are
buying a particular product rather than a corporate name
and corporate image. This will assure a favorable arena
for free and equal competition among big and small
manufacturers.
The

for

be termed the "Sensible Six¬
functional design providing
sound investment, with maximum return
the transportation dollar invested.

ties."
the

has also increased

will

visualize that the sale of American-made
will grow from about 660,000 units in 1959

provide

six

one-third

the steadily

able

only

entering a decade when the base of auto¬
demand is going to be well above that of the
The population of the United States is

units, compared with the
previous
years
(1953-1958)
of

the 1959 level

fering

Before

are

6,600,000

Studebaker's prospects for 1960 are excellent.
The company is the only American manufacturer

condi¬

million greater than it was ten years
ago, and the number
of households has increased from 42
million to 51 million.
The population will continue to increase
by more than
3 million a year, so that by 1965 it will
probably be close
to 200 million, over 20 million more than
at present, and
the number of households will have
increased by 4 to 6
million. The number of
young people between the ages
of 15 and 24 will increase
very rapidly in the years im¬

will

Harold E. Churchill

cars.

cars

our

was only one year when more than 6 million
sold at retail in the United States. Since
1955,
three of the four years—including 1959—have been
close
to or above the 6-million mark.

We in the automobile

units,

over

were

motive

increasing, in terms of units, by between 15%

records. 7.

was

that

the most dynamic

the

for

about

average

;

of Lark-

sales

and

about

may

Studebaker's

close to the record level reached in
7-million-car year in 1960 would not be so far

give evidence

to about 2,250,000

The

are

would

one-third

on average, and that the average annual
registration figure for the six years ending with

Lark-size

1955, there

cars

one

•

By 1964, we anticipate that of the above

only a few of the many good reasons for
estimating 1960 retail sales of passenger cars at-7 million
1955.

trations,

healthy used-car market keeps trade-in allowances high.

from

is
sales

demand for good used cars continues to be
steady, and used-car prices are firm. This
important stimulant to new-car sales, because a

—which

;

5,770,000 units.

and

These

1960 will witness an accele¬
demand and production of

average

The

car

1964

favorable, consumers will have an increas¬
ing inclination and ability to buy. Many economists are
predicting that consumer spending will push total 1960
(4)

1960

cars

new

tions remain

sales of goods and services to

have

7,000,000 units

have

business

will

domestic registration* of American-built cars will exceed

Consumers

can

forecasts, however,
transportation

It is estimated that by 1964 annual

(3) Consumer confidence is high. It has remained high
through the steel strike. And if further interrup¬

production

6.5

Corporation's
an
increase in \

indications

the year
ration of

even

tions in

from

growth cycles of American industry.,
competition in the field,

debt, including the mort¬
are
in a position to
buy new automobiles and other durable goods as well.
their homes.

spend
estimate
million to

variously

With greater

three times the amount of their

strong

manufacture

the

national product is running close to the half-trillion
dollar level. Personal income is high and
rising. Indi¬
viduals' savings at the midpoint of 1959 were more than
gages

/
will

All

units.

car

1959.

All

promising.

They

': 1

1960.

•

over

for anticipating an ex¬
Here are a

conditions

'' Z 7 C77.

•

Studebaker-Packard

cars

modified

target/for

gross

245

local

Plant

shore

year,

General

(2)

"economy

7V/

CHURCHILL

registrations will

million

passenger

helped to
stimulate the entire market.
There is greater public
interest in new automobiles of all price classes than the
industry has seen in any new-model introduction period
since the fall of 1954. Dealers all over the
country have
reported heavy showroom traffic, and many say it is the
heaviest they have ever seen.

—

for

car

•

(1) Chrysler Corporation's Valiant and the other new
cars introduced last fall—which have provided
with

Studebaker-Packard

compact

Personal

/:'.7/ -,

;

year.

production

/ /.7

other

by labor problems during the model

cellent automobile market in the year ahead.

remarkable recovery, at a pace which appears somewhat
to exbeed that throughout other parts of the country.
income

new

convenience-size
are

growing automobile market through¬

production of basic materials in key industries are affected

cars

There

The na¬
felt

was

billion

facilities

The automobile industry is planning to produce about

power

President,

pushed a substantial
production over into 1960. Hun¬

schedules accordingly.

2,240,000

point to

changing

seven

But

and

econ-

This market will not only be
bigger but
diversified.
The needs of motorists are-

that

strike

upward

All signs

$16

resumed

well below 7 million units.

American-built

new

Industry forecasters predict that Americans

the asuumption that steel

reception of the

retail

their

the

This consumer attitude
is

7,"'ff/;.////' /-77' —'77V'

HAROLD

Z'7; 7 /•■••/■■/■■' •/'/,/
industry estimates

Some

oublic
cars.

the whole economy /•

their lowest level since the end of 1954.

essential/in maintaining

solutely

fit their needs.

best

during the fourth quarter have been postponed and these
postponed sales have caused car manufacturers to revise

ab¬

..steadily in line with changing patterns of living.-And
; as' the automobile industry responds to these
changing
needs, it will continue to provide a strong stimulus to

near-record year, second only to 1955
when
7,200,000 cars were sold at

1959.

which in this

1959, the

out the Sixties.

better

even

•

industry. Comments on future prospects should
perhaps begin with a review of the picture at home—

balance

cars.

illustrated by

!' omy

during the first quarter of 1960. This
would make it the highest first quarter production in
automotive history. Moreover, production will probably
continue at high levels throughout 1960—in part to keep
pace with the expected high rate of retail
sales- and
in part to replenish new-car inventories depleted as the
result of steel shortages. New-car inventories are now at

And

that

cars

1958 and makes it

over

industry's third best year.
•
Clear signs indicate that the auto¬

dreds of thousands of sales that would

economic

This gives 7

tne

volume of automobile

soundness of programs for expansion
of power plant and system capacity.

economic

final

new

the continuation of the steel

public/Service ob¬
so
clearly
defined.
foresight/ and careful

are

sales

new-car

were

business whose

the steady increase in station-wagon sales,
the past year an increase of 1,400,000 '/'■ '■'•7///*'■.' "by the interest in the small imports, and by the enthusi-

production

ac¬

years before the actual
the anticipated new load.

some

curacy

two

figure jumped to 7 million.
•/, 7'7 7,
;
Closely related to this growth of multiple-car house¬
holds is the tendency of more and more people to
regard
the automobile not only as an all-purpose family
vehicle,
but also as a personalized and highly specialized
means
of transportation.
People are looking for the specific

/v/,/ /7;7V/

Chrysler Corporation believe
that 1960 retail sales, including im¬
ports, will reach and probably exceed

industry, exploration of the fore¬

power

the

sales of

units, including close to 600,000 imported

CISLER

households owned

lion
,

passenger cars in the United States ):
during 1959 will exceed 6 million and may reach 6,100,000

-*/

L. L. COLBERT

President, Chrysler Corporation

Estimates for

mobile

WALKER L.

excel¬

by the Administration and appropriate meas¬
be taken to prevent any unwarranted rise.

watched

cars

great majority of the outlying "communities make no
provision for public transportation/ Along with the sub¬
urban trend has come a greatly increased emphasis
on
outdoor living and recreation. Also, the number of mul¬
tiple-car households is increasing. In 1954, some 4 mil¬

education,

ing contrast with the glowing expectations of 1960.

for anticipating

reasons

throughout.the Sixties. The
growing
population continues to spread into the suburbs;,;and
suburban dwellers must depend on" their
cars, since a

fn conclusion, it seems that the key to success i.i meet¬
ing the challenge of world competition in the decade ot
the 1960s is in continuing and accelerating all our pro¬

alone

goods

sumer

the

question

people
The manufacture and sale of con¬

I960.

must decide

services

public

Thursday, January 21, 1960

additional

are

lent market for

ca^adty expected

kilowatts of electrical

100.000

Chronicle

There

nuclear testing is planned, with full-power opera¬

power

tion

washers,

Commercial Financial
and

The

(302)

decade might

It will be

era

car owner a

Forecasters predict over 70 million cars will be sold
during the next 10 y^ars. Nearly 100 millioh vehicles
will be on the road by 1970.
We expect more than 30
million of these will be Lark-size cars."

Continued

page

Number 5918

Volume 191

The Commercial
and Financial
Chronicle

vrelaxed;

.*'•

(303)

steep grade cannot be main-

does not materialize. But

«-v
'■■■ '■; 4' >'■ '• tamed, Imports will climb, sub.rway rising exports and stantially
as
inventories
are
V1 Plant-,and depleted. New orders are showing
f
g W111 stimulate demand an upward trend and gross narnaphS1116'1' goods and heavy tional product will advance 4%.
"(Kbinhuii isrii'- Expanding fImpact of the Free Trade Area
?v5 hidustry ; will be on Sweden—the chief supporter
1*

Continued from page 49

steep upgrade.
government will impose such ,yan invp?S^w:e-^11<A1^1'1- mean, a great long-term market
measures as dearer money policy
•
.™f. :. y
7
•*' Potential and much less dependto retard the fast growth.
Credit *' £Main difficulty ,for. Sweden in ence on p. S.
v; will
be
tight } and, the > Dutch i^960 will-be keeping the priceSwitzerland's- dark spo.t in ...her
increases, are on a

sharply. A recent poll reveals 62%
of industry
expect business ex¬
pansion. Foreign investment in-

trading

intermediary,
one

European
will

—

The

area

doubt

Italy

the

most
important
1960 outlook is the

aspect in

the

increased

capital exports.

investments.

will

Italian

heavy
„

Holland's

whereTh S. firms locate.

wage

increase. Timber and

expor^s rose sharply in 1959

Imports

steel

lose

but. trading

if integration

the two

areas, which is their goal,

export credit insurance. Italy will

liberalize

imports further

national
.

product
will
expand
in 1960. All industrial

sectors

are

booming,

and

tourist

Common

toward

way. Export markets
improving at a rate of 8% a
year.
Energy
build-up
enables

Austria

export.

companies

Continued

certain.

are

newly-acquired

Spain's

status

full member of the Organiza¬

operation
with

Economic

European

for

tion

bilateral

and

West

and

France

Co¬

treaties

Germany

well for 1960. In fact, op¬
say
the outlook is "mo¬
mentous." Trade with England is

augur

timists

•

growing and last year's devalua¬

external

Investment
allowing
100%

Law

capital

1960

will

BURN IN G

draw *$35

according to gov¬
Eventually

estimates.1

ernment

Spain will
the

The

Foreign

sweeping
Petroleum

million

inflation.

checked

has

tion

become

member

Common

European

Market:

Until then U. S. must compete for
this

market

; disadvantage

despite $400 million in aid, most
of which has been

grossly misused.

Spanish industrialists show
inclination

little

import newly freed

Natural Gas has taken competition and

materials, machinery and

raw

parts due to political specu¬

spare

lation

indecisive '■

and

regulation in stride from the start. Now full

national

leadership. Import capacity, while
expanding, still is insignificant. '

grown
-

Little
change
is
expected ; in
Portugal during 1960. But Lisbon
has much to gain from member¬
ship in the "Outer Seven" and

will

target

closer

for

mercial ties in the future.

com-

America fully 25% of the

It's
:

incentives

;

ready limited market.
.

Shortage in Western

Western

Germany

ords will be set in
sales

seas

abroad,

and'

1960 for

rec¬

as proper

produce and deliver

required for

our

country's future growth.

over¬

purchases

capital

national

gross

new

reserves,

Natural Gas

Germany
In

long

maintained, the

Industry will continue to develop

increasing competition in this al¬

Labor

are

will be faced with

exporters

energy

it needs to grow on.

big job—and

•

Ameri¬
_

can

and vigorous, the Industry brings

from

investment

and

to
increase another 5%. Exports will
reach $10 billion and
imports $9.5
billion. Order books are bulging
in the

product—sure

automotive, chemical, elec¬

trical

equipment
industries.

goods

picked

and

consumer

Textiles

have

hard-hit

the

even

coal mines should show
some,

provement.

problem

Because

shortage,

the

im¬
leading

the

acute

industrial

manpower

investment

stresses modernization

auto¬

and

mation.

Prices and wages will be
but serious inflation is not in

the
U.

offing. Bonn will assist the
S. in the balance of
payments

deficit here by
pre-paying Amer¬
ica's

postwar

granting

derdeveloped

aid

economic

long-term

loans

and
un¬

nations.

Denmark's activity is the highest since end
of World War II.

dustrial' production—up" 8%
year

—

will

continue

In¬

last

climb

steadily

during 1960 while un¬
employment is one of the lowest
in

the world.

Membership in the

Outer Seven" is bound to bolster
the

already

accelerated

and

sales

the

output
building mate¬
metals, food-processing,
chemicals, textile and clothing in¬
dustries.
Both
exports and im¬
ports will
improve again but un¬
in

rials,

favorable
cut

into

weather

1959

PANHANDLE EASTERN PIPE LINE COMPANY
Subsidiary: TRUNKLINE GAS COMPANY

Pioneer Producer, Processor and Long Distance Transporter of Natural Gas

will

presently healthy
ex¬

change balances.
Nevertheless,

120

BROADWAY, NEW YORK 5, N. Y.

her

sharply. Bilateral exchange with

her

More mergers will Eu¬

romarket

13%

output to five neighbors. Foreign
investment in Austria is rising

Market

products.

con-

industries

are

will rise again, but
emphasis
will
be
away
from
American machinery and prefer¬
ence

with

leading the

exports

and

gross

another 5%

in 'struction

will > continue •«. strong. Wage spiral and growing Govern- record-level* economy is future Argentina, Mexico and other Latin
Many new industries will sprout ment:. spending yfrom unleashing relations with the Common Mar- Republics. Balance of payments
Up.
Refinery capacity, already Ihternal inflation. Labor troubles'. *ket and "Outer Seven" countries, will be in the black, with imports
Europe's largest, will be expanded
also certain as the. proposed Although the Swiss played a .and1: exports up. However,; the
further. Foreign investment, espe- y° turnover tax on most goods leading- role in: setting' up the latter will expand at a faster rate
cially American,»Will not be en- inspires unions to demand a 6% Free Trade Area, they stand much due to the extended Government
because

pace

guilder

couraged

production

existence by 1962. -Swiss output -flow
will
continue "to
make
capacity is expanding steadily as records. Only unsolved problem" is
exports and home
consumption the two million unemployment in
gain. Only bottleneck is the labor - farming and impoverished Southshortage, which could upset rising ern areas.
*
import trend.
Austria's
fast

y go.vernment credits Of the "Outer Seven"
will be
order.rioycompete- with Ger-'small in 1960 but closer ties with
will European .trading partners will
i

there is
regional

•

remains strong and in¬
will
climb

currency

dustrial

and wants to act

thai

Washington finally has interceded

'■■t

biohoi'

now

on page

The Commercial and

(304)

Financial Chronicle

Thursday, January 21, 1960

,..

Continued from

page

COMSTOCK

ing and will enable the organization to investigate the
whole new product area.
The formation of this group
removes
the burden of new product activity from'the

President,. First Security Bank of Idaho, N. A.

COMFORT

HAROLD

RALPH

Boise, Idaho
A

1960 will be the most prosperous to date in the
history of the food industry. Moreover, it will usher in
decade of growth unsurpassed by even the phenomenal
revolution in food buying that followed World War II.
The year

And, in terms of value received, the
will

consumer

ever

abundant

ness

1960

and

the

one-

Production

exceed

those of

centage.

'.
in

Patterns

(1)

dustrial
Harold

Comfort

of this is

should

1959

levels

half

the

billion

125

milk

pounds of
form.
The

this year consumed in this
sales
increase will particularly benefit the dairy farmers, who
receive the highest price for milk used in this manner.
produced

1960

should

Ralph J. Comstock

1959.

seriously

copper

because

cattle

tural

indicate

and

(3)

pressures

livestock

Housing

production

and

than

the

relatively low

cost

markets

One

area

prices

goods.

and

Because

the

consumption

balance

better

and

between

abundance

For the

that will

excellent

recent

improved products, particularly of the instant and con¬
venience variety, but few of a radical nature.
Compa¬
nies will
concentrate their research
and
development
efforts on major modification of
existing products/ to

buildings will increase. Local gov¬
of
schools
and
public service
facilities should equal that of 1959.
Highway construc¬
tion, however, is moving at a slower pace because of
shortage of funds.
'**

the

general::trends

tion,

crease

retail

crease

and

nation's

history,

ahead

move

however,

much

easier

emphasis

have

fast.

prepare

the

two

combined

Our

population is gaining
3.2 million new consumers

at the rate of

(4)

slightly lower, especially if consumers in¬
buying of durable goods including auto¬

mobiles.

for

20%

total

63%.

food

faster rate

greater emphasis
will be
next

making

teen-agers

will

the

continue

part of the

effort

the levels of 1959.

the

types

proteins.

good

generally

had

expect to

have
have

their

Although

decade

All

tribute
able.

purchase

dollar

highly

going toward
products with

processed
"built-in" services, more "exotic" and
luxury foods. And,
through better education, we can expect a
continuing
move

the direction of

nutritious foods.

Accord¬

ing

to Government estimates, about one-third of the
population in the 1930's was poorly fed
by nutrient
time/today, by the same standards, the
figure is 10%, and that more through
ignorance than

standards at the

need.

the

past 20 years the consumption of
highprotein animal foods has increased
per capita
by 100
pounds. This trend is likely to
continue, with a notable
effect on the dollar volume of food
purchases. Total food

expenditures, $73

billion

1959, are expected to rise
another. $3 billion in
1960, and may reach the incredible
total of $115 billion a
year
To equip itself to

demand,
i

the

by 1970.
produce the goods the public will

food

industry will invest

ifSn ^ ne^and modernized plants and
1960.
Much
of

than

equipment

this expenditure will
go toward

ping up capacity, rather than for
will be
not only a greater

P?ifit
marginsnCeS

will

step¬

replacement. The result

volume

efficiency that

$600

enable

output,

but

manufacturers

WhUe maintainin^ 'already

narrow

and

economists

the

are

progress

1960s.

With

get

off

the

conditions

growth

seem

Population,
these factors

that
George H. Coppers

will

and

our

the

assure

varieties made

new

increased

for

We. .believe
food

runs

its production

until

the

em¬

summer

seeking to build

our

case

several

excellent contribution

Like most other segments of
are

products—to improve both product and pack¬
easier serving, handling and storing by the

consumer.

Every

company

minded.

have

made

in the industry has become extremely
Competition and consumer interests

increasingly

sharpen our
product and

consumer

have

two

marketing

taken

feel

are

and

important for

programs
research

steps

and

all

broaden

to
our

activities., At Nabisco

this

direction

which

research.

This

headed

important to

past

year
a

in this key

establish

Vice-President.

sonnel experienced in

and

products.

our

introduction

the

new

area

of marketing

products division

His division

is the

South

can be pursued with
Central America, the

and

estimates this growth

that

■■1
the

1950's,

from

158

for
matter of
people—there is also

per

merely

consumption

grow.

at 2.5 million a year

It is not, however,

soft drinks

capita

earlier, the
prime one. The Gov¬

per

person

will

consumption

soft drinks

I think it is a perfectly
feasible goal to expect that by the mid-point of the next
decade that figure will rise to 250 bottles per year.
rose

The

189 per year.

factor of the supermarket can

hardly be

stressed

This kind of store is named by more than
33% of the nation's bottlers as their best sales outlet.

greatly.

The

trend

earlier is

the

response

fast-moving big package

mentioned

to this fact.

convenience and service features

de¬

size

the

opti¬

recent

promising trend

are

expectation

every

industry, introduced

into their

consumer

selling
ri

too

good labor climate.

success

the decade ahead.

manu-;

industry, biscuit and cracker manufacturers

for

ernment

volume we experienced last
year.
items in several product lines will make

in 1960.

the

question of population growth is

and

sales

new

appearance

the food

age

relate

was

Middle East, Far East, Africa and Europe.
With respect to general trends mentioned

favor¬

and
processing will be in
supply and that commodity
reasonably steady levels. Nabisco

two-year contract with

seems

Additional

their

based

big 16-ounce bottle,; a "more-foryour-money" package which rapidly
gained
consumer
acceptance
and,

Cott

Areas where this

in 1960
positive assets

are

materials

raw

Our company, and others in the
number of new products in 1959.

us.

factors

natural trend to the

facture

hold
a

growing

con¬

ample
concluded

potential for American soft drinks in the world market.

the

employment

,to the entire food field.

1961

forecast

for

tribution of the successful Big Giant Cola line.
Another important consideration for all of us

the

which

disposable" income will be
and

growth

packaging of soft drinks is in line with
bigger package in inany lines.
Another factor was the spread to new brand names
in cola drinks, a factor which can be said, without exag¬
geration, to have opened wide the cola market.
For Cott, a share in these two trends has been a sig¬
nificant fact, with the introduction and national dis¬
a

the

right foot.

ployees this past year which

the

food

the

significantly, did so in an outlet of rapidly burgeoning
importance to the industry, the supermarket.

industry in
industry

and

shouldn't

prices

its

John

exception of a prolonged
resumption of the steel strike, there
are
no visible reasons
why the new

tively

specific

One

possible

constant at about 22% for the
past two decades. With the
average family's volume of purchases
remaining rela¬
more

cracker

Biscuit

anticipating considerable
the

long-term

The change in

and

leaders

ness

been

stable,

year

velopments

encouraging year in 1959 and we
improvement in the coming 12
months. The great
majority of busi¬

incomes

rising faster than the cost of food, families
made no significant change in the
percentage of
after-tax income going for food. It has remained

markets I and

mistic

continued

see

the

A fifth of all fami¬

year.

record

and somewhat above

COPPERS

National

one.

have the money to spend. Two-fifths of all families now
have an income of more than $4,000 a
year—the point at
which discretionary
a

TnJk outlook for the biscuit
1960 is

buy a greater variety of the more costly,
highly processed foods.
And they, along with their older
counterparts, will

$7,500

three

expanding popula¬
increasing number of volume

'/The
be good

GEORGE

can be expected
to
population, accompanied
of foods consumed, with
Also/the teen-age group

spending begins.

in¬

President, National Biscuit Company

wives tend to

than

the

are

content of certain of

girls in three are married in their
and forming households.
Better education, more
venturesome, more pressed for time/ these new house¬

money

authorities

overcome

(7) Employment will increase by at least one
million,
unemployment will decrease slightly except as affected
by additional strikes.

decade—two

earns

Tight

Reserve
or

in this.

teens

lies

avoid

Durable and non-durables will share

"buying decisions" in 1960 and the

Federal

flationary pressures.
(6) Retail trade should

consumption
in

about

consume

normally active adults.

than

further switch

And

calories than

volume

rise

almost

:'x

goods and fear of inflation continues.

policies

1.8% a year, or
alone. As the base widens, the numerical in¬
crease each year becomes
greater. More important, the
"population mix"—the distribution of population by age

mate,

They

vending machines. • " v" : " V:
;
In
addition, however, there are
specific causes for optimism based
on
proved performance in the past
year — for 1959, with its excellent
weather conditions, is bound to be a

(5) Interest, rates will continue at high levels, cor¬
responding to those of the fall of 1959 so long as demand

this year

groups—is changing sharply. In the next ten years, for
example, the number of persons between 15 and 19—the
"teen-age" group—will increase, according to one esti¬

factors.

may be

their

some

COTT

based

are

home.

faster

made

are

The

development of pack¬
aging and processing machinery, to improve quality,
flavor and keeping ability of products, and in an effort
to hold down rising production costs.
The industry will
offer existing products in an even
greater variety of
package sizes, particularly larger ones, a move that got
strongly underway in 1959.
^
^
There will be, however, no radical change in the con¬
duct of the food industry—in this year or next decade.
As in the past, it will be tied to the two factors that have
always principally controlled its growth: population in¬
crease, and rising consumer income. At no period in the

them

make

have

soft drinks industry will make great strides in the
coming year, the first year of what will be the "Golden
Sixties" for our industry.
-,r

Continued increases in savings are anticipated at
high rates of returns offered to savers. The rate of in¬

There will be greater

but

years

The

construction

ernment

steadily rising cost
We feel that this area, of
price and profit structure,

President, Cott Beverage Corporation

trial and commercial

food industry as a whole, 1960 will be a year
the introduction of a vast array of new and

see

the

attention.

JOHN

high discounts on mortgages continue as
deterrent factors.
However, demand for indus¬

major

undertaking a
thorough review of our several distribution systems to
try and learn where other improvements can be made.

will be somewhat lower
of 1959.
Tighter money

year

increased

headway

selling.

consideration
receive

must

construction

concern

distribution

prime

these agricul¬

neweif

area

and

feeds, dairying promises to be the most profitable
agriculture in this coming year.

department

new

bakeries.

housing decreases.
(2) Total agricultural and cash farm income will be
slightly lower in 1959, but considerably above the 1957-8
levels. The huge crop surpluses and the large inventory
Of

The

major new construction in 1960, we think we will have
to
add
to production
capacity by 1961.
We will, of
course, continue to improve existing processes and to
expand to older plants some of the new equipment
and techniques which have been proven in our

result of restocking

picture has become increasingly
has the job iof - co¬

advertising

vantage of recent innovations and developments in
production machinery and methods. These expenditures
by the industry will continue, for most of us have
learned that the job of keeping plants up-to-date never
really ends. While Nabisco will not undertake any

in¬

approxi¬

half

States

industry has done considerable spending in recent
to modernize plant and equipment to- take ad¬

years

follows:

advertising

several divisions and subsidiaries, both
and abroad, and the development
separate advertising programs,-the cor¬

our

number of

The

depleted during the prolonged
strikes of 1959.
The outlook for lead
and zinc is slightly improved over that of one year ago.
Lumber production will decrease slightly from the early
and

sharp advance in per capita consumption of
cottage cheese, and other skim milk prod¬
slight gain in the use of fresh fluid milk is fore¬

half

general

company's consolidated advertising activities.

the first

inventories

buttermilk,

first

production

steel

are
diffi¬

by a like per¬
-C

...

established

ordinating these separate efforts, pooling resources and
information
and
ensuring greater flexibility ' for 'the

segments of the econ¬

the

that

mate
Part

In keeping with the postwar
consumption of such high fat
products as butter and heavy cream only can be expected.
However, ice cream consumption should increase. There

United

the
a

by at least 5%.

should be somewhat

omy

capita

about

1959

poration's
complex.

per¬

should

indexes

Trade should increase

lower

with

Over¬

labor

additional

trend,

cast,

growth

however,

year,

threats

Also

not

and

income.

this work

department which we believe will increase the efficiency
of
this
phase of our marketing program.
With 'the

price increases.
are expected

national

has been in several years.

would

national product

gross

shadowing

pounds (in terms of whole milk),
total consumption can be expected to
gain about 1.7%, with the estimated
volume
of
1960
milk
production
going into Government surplus as
manufactured products lower than it

ucts.

mild boom

the

settlement

that

basis

culties.

quarter of a percent. Although per
capita consumption of dairy products
will
likely remain at around 690

per

continuation

assumes

further

sonal

with

increase about

This

been

Substantial increases

prices comparable to last year's. According to industry forecasts, milk

production will

had

places

to do

disrupted in mid-1959 by the strikes in
steel and other metals industries.
However, good busi¬

before.

supply,

1960.

that

strikes

generally will be
this year. Dairy products

half

and

the first

expected

business

upsurge

lead

for

supplies

»plentiful
will

getting

dollar than

her food
Food

sharp

occupied with day-to-day operations
it with an Organization specifically set up
as a primary responsibility.

several departments

The Borden Co.

President,

includes per¬

research, production and market¬

Vending machines are another factor I mentioned—
figures make it clear that here is another pattern
development which is of the greatest significance to
our industry.

and the
of

Estimates
before

industrial

construction

for

the

decade

billion per year. That, in
turn, means thousands of new plants located throughout
the country which will have to be equipped with vending
us

run

machines—and

$10 to $15

soft

drinks

are

the

top

sellers in

such

machines.
All

these

facts

themselves

represent an oppor¬
One of the
ways in which we intend to do so is by greater emphasis
on promotion
and advertising direct to the consumer.
tunity

which the industry must capitalize.

With the aid of intelligent planning, aggressive mer¬
chandising, hard-hitting promotion and advertising, the
coming year will be the foundation stone for the "Golden

Sixties" which await the industry.

Continued,

page

Number 5918

Volume 191

and Financial Chronicle

moderately although the

Prospects; for

The Commercial

...

ing:

trad¬

pattern may shift
slightly

>hp; bpviet bloc
chases

the

East

large quantities

slightly

the

pur¬

time.

Continued from page 51

' ;/

;

will expand in 1960 but
Austria desires to switch over to
regular trade channels. Commer¬

with ; the{ "Outer
will be stepped

relations

de-emphasized with the

but

Market members.;,.

Common

terest

re¬

tian

trouble while
petroleum

stallations

neighboring

Austerity

Saudi

meanLthat fiscal
restored;
a

new

gins.

Arab* Republic,

development
Import

program

licenses

will

also

changing

continued

has

is good

will

viet

bloc.

will
build

S. firms, to build a steel
mill, with
most of the money
coming from loans from Wash¬

required

roads,

climb

Aramco

"equipment

production

and
of

will

cli¬

imports

accentuated

offset

freedom
tives

and

sporadic

lence

will

retard

ress

and

this

the

American

Recent
eral

even

spreading drive
among
millions of
labor

turbu¬

lack

this

ability

buy

-y

discovery of oil in
of

na¬

Libya,

sev¬

principally

by American companies, offers a
completely undeveloped market
for U.
Now

panding market potential.
How¬
ever, the U. S. share of Congo's
imports continues to decline due

economic prog¬

goods.; <V

areas

for

The

plan begins in 1960, which means
billion will be avail¬

another $1.5
able

for
transportation,
power,
housing and educational projects.
A $100 million outlay for hydro¬

electric

S. and European exporters.

time to

are

being-

•

built.

the

Egyptian cotton exports
also

will

The

larger but
to Iron Curtain

price

African

Political

gian

imports from the U.

development

will

the Bel¬

did

not
ex¬

dollar

agreed upon to pay off the
million
debt to American

will

•''''

River

Volta

Continued

«.

on page'

$300

and
exporters, Turkey will
be shopping for heavy equipment,
furnaces, coke ovens and building
materials for the expanding steel
European

development.
moving on to the Middle

Before

stop seems advisable

East, a brief

European coun¬
Yugoslavia, it. is well to
note that President TitoMs out to
break trade ties with Communistnations and may be successful in

Eastern

two

IE km ECrY RO PH 1 €r

tries. In

Negotiations for British and

1960.

and

French

are

u rider way.

German

companies

credits

Canadian

report
orders

capital equipment

sizable
from

MACH

Yugoslavia." Rolled

steel; chemical products, fertil- 1
izers, wool and cotton are high on
the list of import needs so that
this market
certainly is worth
exploring in i960. Yugoslavia will
in

self-sufficient

become

this year

wheat

and now will emphasize

capital goods imports to expedite 1
the industrialization program.
Predicts More U.S.S.It. Trade With

the

West

:have

West
be

with

Soviets

The

I960:

huge

Western

will

trade

Russia's

shopping; list- for

suppliers.

Moscow

es¬

pecially wants chemical and elec¬
tronic

equipment
machines

press

and

exchange

for

forge

and

iron and manganese ore,

oil, coke,

-pig iron, rolled iron, steel, mineral

fertilizers, cotton

grain.

and

Electronically

Aid

underdeveloped
countries
is:
high up on Soviet's "must" list for

1960, with
•scheduled
freed

for

assistance

offers.

dle East will be
up

I960

and

Mid¬

the

Ehctmnkalty

another 5% in

political relations

to be

with

retains tjp

appear

inproving for the time being
U.

aid

unrest
an

must

the

count

structure.

affect

Despite

revenues will not meet the

cieticit—a

regular
scene-

revolution.
ports

fries

Soviet

currency

and

bloc

Rut

the

have

ally

im¬

coun-

the

with

the

aggravated
commercial

life.

ease

ern

authorities

will

gradu¬

import controls on West¬
nations to revive the market

hampered by hoarding of com¬
modities and abnormal price hik•mg.

•

.
_

Public

confidence is spreading"
Lebanon
and
gold and
ex¬
change
reserves'
are
climbingr
steadily. u. S. and European, exporters are
relaxing terms on saleshi

? Lebanon.
abolished

foreign

reduce
accounting and processing costs with the
new time- and money-saving features
of the National COM PU-TR0NIC.
Now businesses

encourage¬

deals

already stagnant

ation

Your

work

order

encourage

Imports

will

of all types can

operator can now process more

...

accuracy

with greater
without special training.

in less time
..

•

need for greater

accounting efficiency

simplicity.
'
>
The COMPU-TRONIC brings Elec¬

and

Mf-cettf
•

tronics to every size office to

provide

management with more timely informa¬
tion for

rben dstofjf':■' ptpddcfvxto. nearest

■_

—awd what the C0MMJ-T8ONIC

does'
canned eta wrong

{

the operator
'' j

profit-making decisions.

Elec¬
tronic Accounting Machine performs* *
"split-second" computations during the
creation of the accounting record.... a
new, more economical answer to the
This

NEW multiple-purpose

'A-.TRABfcWARK
"

Ask your

&&&&., &>A.rr <>?*>

nearby National represent¬
m

ative—a trained systems man--to ex¬

plain how much money the-COMPIE
TRONIC

can save

for ydur business.
■A: Trademark

mcissmfymmtrt

jmm

THE

Income taxes will be

capital,

fa*

new

Efecttaflfwtly

■,

1958

West,

barter

pototo-off correct j&dntoj pvnctu-

the

hard

the

budget

feature
since

Restrictions

from
in

ment,

intredeced

pelroleum

government,

economic

Efactmhkally

demanded

Oad; products for

pM .factors when

■fori we

expected

the

rise in oil production
hy
the

;

ElecltonicaUy -<i-%

all sizes!

businesses of

use

■

: eftases

economic

the

reported

well.

Iraq political instability will

continue

retains.: toietari

time and money for

saves

and?

nations

Arab

international oil policy
In

Ekcfrankatfy

Simplifies data processing

quantities to capture some of the
Middle East petroleum markets in
you

•

PBrfV^ cfeaf&^^putotioft*

sizable. But as soon as Sahara oil
flows
to
France
in
sufficient

Europe,

ta31 .constant factors

EfecfronkMy

will

Nasser

;

Bocifonkalfy i§MR
pttrf&ttis hmdreiis "pt. decision*
and commftrtds
|§§I§1|

technical

" '

trade

every

that

colonial

and '288

America's

Ehcttankaffy;^yj._,.

projects

"countries

themselves

dependence"
•

industrial

SfJk-secDTKJ $pBe<Js

computes

1039

NATIONAL
OFFICES IN

121

CASHREGISTER COMPANY, Dayton 9, Ohio
COUNTRIES • 76 YEARS OF HELPING

BUSINESS SAVE MONEY

this

open up many new mar¬

With arrangements finally

ington.

second-

beginning

plan

program

million

the'Colony 's rapidly

1959

under

the" $280
hydroelectric
project which will require heavy
purchases of transportation, con-

investment.

during

kets for U. S. exporters.; Heart of

laws

new

upheavals in

Congo

impede

years,

private

too high

for British buyers.

down

past three

welcome

billion

Ghana's

year

West'

development

consideration in the U. S.

foothold in

pipelines

while

Libya

get

imagination in selling
long-neglected territory.
second 10-year development

Heavy spending by petro¬
leum companies already has ac¬
counted for a 40% rise in imports

countries.

schools.

oil,

due

moderately

the

products.

be¬

in quantities

houses

be,

partially by shipping $130
millionof ■ surplus
agricultural

the bulk still goes

three U.

deficit

cline

construction

by heavy loan repayments to So¬

political

imbalance

exports

substantially after last year's de¬

get a much-needed boost from the
recent
$144-million
deal with

welcoming American capital., But

health has been

The outlook

will

of.

mate and revised investment laws

Syria

Arabia

volume

West

enterprises

will

though

More specific in¬
Western firms in Egyp¬

;

continue

I960.

result

over

business activity will

Turkey

Textile {industry

and Jordan.

Seven" countries

United

feature of

refinery production has been cut
by 35% due to opening of new in¬

Russia

cial

the

strengthen but a real infla¬
tionary spiral is-possible for the
mains

will

year,

Currency will continue considerably increased
trade
with

ese fruits.

first

Leban¬

last

declining trend.

#e* urn

Continued from

MARK

page

President

COX

LEWIS

Co.

Fireman Manufacturing

President, Iron

fields

is forecasting a 7% increase in sales volume
an average increase covering the four
which we are active—(1) residential heating

industrial steam

equipment, (2) commercial
generating equipment for power and
heating and cooling industry made
components for military aircraft and

and cooling

Been

the

general

economy

months.

should

heating and cooling
substantial

just
been

shown

industry made
in

increase

ended.

Unusual

the

■

has

—Again
the

Lewis J. Cox
both gas-fired and oilmajor factor contributing
\
to the higher sales volume has been the high level of
new housing starts during 1959.
Most economists are less
optimistic regarding the outlook for new housing starts
in 1960.
If, as predicted, housing starts are at a lower

for home use,
fired.

—Concentrate

large

Government

the

field

parts
past

undoubtedly,

and

affect
Our

components.

the

demand

own

for

company,

mid-1959.

by strikes in

steel

that

time

and

other

was

resumed

1959.

industries.
in

the

sumers, and

1959, the banking system was
forced to sell United States Govern¬
in

securities

order

finance
Kenton R. Cravens

for

funds

year

the

and

that

substantial losses
the funds to

provide
increase

terest rates

demand

were

loans.

In¬

rising during most

period.

felt

that

the

will continue heavy in the first half
rates are likely to be firm.

interest

rates

rise

may

result..

"money panic" are too extreme, we
experience "tight" money for some time.

loanable

struction

funds

and

has

already had
likely to curb

While

some

words

likely to

are

The

impact

scarcity
on

con¬

borrowing by

industry.
After

mid-year, the rate of industrial recovery will,
undoubtedly, slow down and it is possible that weak¬
nesses

apparent.
of

some

the

The
its

economic

influence.

recovery

momentum,

would

become

be
be

the
one

mistake
or

The promise

extremely cautious

first

will

tend

restraining

expenditures will

will

expected

uninterrupted
it.

the

time, businessmen
cautious policies.

which

movement

and

At that

Nineteen-sixty
It

will

other electrical

orders

new

1960

construction

be
are

lose

effect

exerting some
likely to adopt

year

unprecedented

decade

growth.

to expect that the growth will
that all industries will
participate

is great,

but businessmen should

about

committing funds and making
plans without
realistically appraising some of the weak¬
nesses as well as the

strengths in the American
economy.

example,

one

Westinghouse in

invested $2.5

1959

comprehensive program in 1960.

an even more

Electric Home

13%

its only

The Total

source

cooking, washing, cooling,
importantly—heating. There

power

entertainment
are

about

now

million

electrically heated homes in the United
If the industry organizes to effectively promote

States.

electrical

electricity

uses

lighting,

and—most

living, there

be eight million electrically

can

heated homes by 1968.

products

tremendous

Such

increase

demand

power

means

challenge for the nation's electric utilities which, within
20 years, will have to put into operation facilities equal
to the entire world's

capacity.

utility specialists, during 1959,
comprehensive program to enable utilities
to
eliminate guesswork from
their future expansion
planning.V:. -V

produce

launches the

present installed electric generating

Westinghouse

developed

■

modernization

and

This

billion

worth

construction

their systems on paper and

than the value of all real estate

Armed

all

;

Forces

also will be demanding more
industry, which shoulders an ever
responsibility as the electrical and electronic

the

space

become

age

—V'

■-

of these efforts.

success

large these additions should be.

During

the past year the company also developed a
industrial control system called
PRODA£. PRODAC

new

control and monitor operations of electric generating
stations, blooming, slabbing and plate mills, paper mills,
chemical processing plants and other mass production
operations.
■", '
can

•

and

increase about

15%

and

million

over

and find

such

seek

mid-1930's

and

that

launched

important part of
1960,

United

development

That

power.

During

large

States

money

re¬

has

$190
products
was

invested

Westinghouse

research

—Broke

the

transformer

research

blossomed

into

first

for

atomic

export

station

built

will

And

New

All

these

are

atomic "firsts."

new

which will double

Scientists at the company's

ratory face, in 1960,

new

frontiers,

JOSEPH
-

$190

million

invest

The

and

United

CULLMAN

been

But only

energy.

achieved

which

are

recently have breakthroughs
bringing us to the point of

practical application. Thermoelectricity,
simply stated '
results in heating or cooling
directly from a flow of

electricity;
source

generating

of heat.

electricity

directly

from

Widespread

consumer applications of this
principle do
likely before the mid-1960's. But eventually
we can
have refrigeration and
air-conditioning directly
from the flow of electric current
through suitable mate¬
rials; or we can directly generate electricity from a coal
fire, a nuclear reactor or any other heat source without

not appear

need

for intermediate
apparatus.

Another field
ceive

concentrated

research

't/'molecular. electronics."
electrical
their

devices

conventional

compactness

and

This

1,000 times

about

will

continue

re¬

during 1960 is that of

new

means

creating

smaller and lighter than
counterparts will make possible the
great' reliability of performance

and

similar gain in cigarette
gain in the size

marked
age

group.

domestic cigarette consump¬
United States will reach

545-billion

it will

units

grow

1965

and

nearly 710-

the 1959 record sales by the

therefore,
and

mm.

billion cigarettes. The increases
•'

smoking,

the

1975

will

255-billion

over

industry,

about -90-billion

cigarettes,

respec-1

tively.
We

estimate

that

rette consumption in
will
reach
between

billion
which

lion

units,
will

the

over

smokers

set

domestic

set

455a

the

and' 460-

4%
of

1958.

United

record

new

peak
in

ciga-

the U. S. in 1959

between

cigarettes

and

436-bilIn

States

J. F. Cullman 3rd

1957/

*
.

;

409.4-billion

consumed

cigarettes/These totals represent about 96% of all ciga¬
rettes

which

scientific effort

3rd

industry will sell one-half trillion ciga¬
Looking ahead to the next.decade, we
sharp increase in the population ; of the

smoking

Total
tion

The

nuclear

of the

during 1960 will advance other projects which hold
promise today as did nuclear energy 20
years
"

Westinghouse

1960.

State

based

develop¬

principle of thermoelectricity has offered a fasci-'
nating challenge to scientists for many years, just as did

anticipate

much

ago.

cigarette

rettes

they seek to apply

research

Westinghouse

President, Philip Morris, Inc.

atomic energy for tasks in outer
space—another chapter
in this story which has read like
science fiction since
World War II.

The

Borough outside Pittsburgh,

size of the present
research laboratories facilities at that site.

Astronuclear Labo- !

large power
transformer divir
a

the

For

gun.

■.

for

—Announced plans for construction of

power plant
Westinghouse

Westinghouse, atomic power has come of age as a
profitable business, but the pioneering is only well be¬

at Muncie, Ind.,
plant, which is part of

research center in Churchill

England's first atomic

completed.

ground

project that constitutes the largest single capital
expenditure in the history of Westinghouse;
—Completed a new plant at Trafford, Pa., for produc/ tion of power circuit breakers;

Mol, Belgium. At home, the first atomic-powered air¬
craft carrier, the eight-reactor USS
Enterprise, will be
launched.

the company:

sion

into operation

power

will

year,

apparatus is manufactured;

just

business today.

our

the

for

sum

During the

programs.

$25 million expansion and moderniza¬
tion program for facilities at Lester and East Pittsburgh,
Pa., and Sunnyvale, Calif., where heavy electric power

investing approximately

knowledge, develop new
and better ways to build them. It

new

research

atomic

plow back

new

facilities and extensive rearrangement

new

retooling

—Announced

development,

Westinghouse laid plans during 1959 to grow with the
steady growth in demand for its products. These plans

1959 total.

com¬

and how

include both

the

high speed digital

As in the past, we will

minutes,

reproduce the experience of the next 20 years,
when additions of equipment should be made

can

time, incoming orders should
the

In 20

showing

;

investment.

puter

increasingly

;

determine the optimum exr

pansion to give greatest efficiency and maximum return
on

electrical

for

technique,

called Powercasting, uses computer
programming by which utilities can "build" models of

trademark of the next decade—a decade

lower construction
more

picture

benefit from the

can

the

ment

European
Europe and Ameri¬

million in its Total Electric Home Program and will push

peak

Westinghouse is organized to bear its full share of the
responsibilities our industry will assume in the decade
ahead.
Westinghouse stockholders and employees stand

recovery may cause funds to

some

industrial markets will

'complex.

American monetary policy is now
considering more and
more the impact of
their decisions on our international
balance of payments and flow of funds. The
move

see

requirements

weeks

increase in state and
local expenditures.

ment

increase of

new

That is 20%

greater

recovery

expenditures,
spending by con¬

$600

interrupted

The

only

1960, Westinghouse sales are expected to exceed all
previous records, as all product lines gain in volume to
produce billings at least 10% over 1959. At the same

equipment

increase

14%

surge

will

And

the

upon
the anticipation of inventory
accumulation, a modest increase in

and

from

Since the steel

and

;

commercial

types.

Mo.

last few

small fraction of the cost of achieving the same
program'by conventional television. V
/
Even though new knowledge and new products will
create new demands for power, the electrical industry
during 1960 will launch aggressive marketing programs
to further stimulate the use of electricity in home and
industry.
-y.:'-- ■'* V/,/-'

at lower ;

standing in the United States today.

aircraft

dispute has
settled, it is believed that
recovery will continue at least until
mid-year. This expectation is based

plant

effort

from many directions.

come

appliances and

that

been

now

technical

was

1960 is expected to be one of high industrial
Industrial recovery started in 1958 and it con¬

until

business will

which will be

CRAVENS

President, Mercantile Trust Co., St. Louis,

tinued

increase

activity.

new

sale

massive

enjoyed substantial growth in gyroscopes
relays for missile and aircraft applications, and we
anticipate further progress in 1960.

The year

the

5,000,000 students in 13,000 schools

over

products, bringing

The

year,

and

better products

make

ways

higher than in 1959. The electric utility industry
already is thoughtfully looking ahead to the power de¬
mands looming for the mid-1960's.
*

and

KENTON

20%

will

during

Cresap, Jr.

New orders for all types of capital goods will be about

new

will,

Mark W.

for the home.

opportunities for the electronics industry,
although the direction which the missile program is tak¬

ing

which

modern civili¬

management

educational

half

measure

missiles

•

Consumers will spend more than ever before for elec¬

keyed to defense requirements and the level of govern¬
ment spending.
It seems a certainty that emphasis by
Federal

years

power

six midwestern States. Stratovision
will make this possible at a cost per student which will
colleges

for

trical

gories, but there should be no let-up in the need for
schools, hospitals, churches, and other similar new-com¬
munity projects. The industry-will be helped by the
demand for gas and combination gas-oil
heating and
power equipment in many communities where natural
gas will be available for the first time in adequate supply.

the

and
.

Electrical manufacturers, in 1960, expect to obtain
more new orders than in 1959—and 1959 has been a

The market for commercial-industrial steam generat¬
ing equipment should offer excellent opportunities in the
coming year. Industrial production will be up, and new
plant and equipment expenditures should exceed ex¬
penditures of last year by almost 10%. There may be
some
pluses and minuses in various construction cate¬

from the air to reach

knowledge

against inflation;
—Invest unprecedented sums in research and develop- *
ment to help find the combination to our future well
being and to maintain technological leadership.

This

1960

Airborne Television Instruction will beam TV programs

comi

cost—the first line of defense

year.

1944

Beginning in September, 1960, the Midwest Council

/./'

finding better

level, the sales potential for domestic heating equipment
however, it is expected that the demand
for home modernization plus an increasing preference for
better heating and cooling equipment will make 1960 a
good year for the industry.
|

create

ma¬

within
our

answer

educational TV.

new

electric

the

proved

home;

zation;

will be affected;

are

output

is the "muscle" of

Aircraft and missile production

double

again in 1959 when

once

invention

work-

into space. >•
challenge, the elec1 ViV. V
yi

this

demonstrated

was

Westinghouse
.problem.

trical industry will:

furnaces

and

ment

our progress

meet

■

the

automatic

defense; and

speed
To

year

strength

boilers

nation's
to

The sometimes

pact and reliable equipment for the
:

electrical systems for tomorrow's
•••.'•••"
delayed value of research and develop¬

production of the

apparatus.

for

and

be produced in

can

"Stratovision" — the system of transmitting
television programs from a high-flying airplane — was
adopted during the year for application to the needs of

chinery for the factory;

•

the residential

that

noted

reward.

conveniences

transistors

exactly the form in which it is used^-a major advance

responsibility

will demand

efficient

crystals

germanium

conductor devices such

hold,.']

the' 1960's

increased

saving

looking at specific industries, it

The 60's

recent

>•

development,

and

the steel industry and by
of

principles to control the "growth"
so that the material for semi¬

electronic

molecular

the electrical industry, which
closely tied to America's growth

and

the settlement in-*
the strength

For
is

and

enhanced

Officer,

promise

(4) machined compo¬
nents
for commercial and military
aircraft
The outlook for 1960 has

missiles,

which is vital for the equipment which will be used to
/explore outer space.
.1
Westinghouse scientists within the last year have used

JR.

Executive

entering a period of growth and progress
without precedent—a decade many people are calling the
"Golden 60's."
During the 50's, man successfully har¬
nessed the atom to do useful work.
In the 60's, he will
step into outer space.
*
~

This is

Chief

Westinghouse Electric Corporation

America

Our company

1960.

Wv CRESAP,

and

for

January 21, I960

The Commercial and Financial Chronicle .-.•..•Thursday,

(306)

made

this country;

export outside the
Smokers

now

United

have

the 4%

balance is sold

lor

States.

become

accustomed

expecting

exciting new products and packaging from the cigarette
industry and the day when a handful of brands could
control by far the

major share of the total market defi-

the

Continued

page

Number 5918

Volume 191

dr»rkc"nop*f~q "fnv

The Commercial and
Financial Chronicle

for

uction and electrical equipment .products
shiDrteiil to
as
well, as machinerytfand fuel.'
sincere dri®e
Cocoa, rubber and banana yields
Japanese- items
are increasing rapidly,as result of:
;ump
{4%with * ereatest
sti

irrigation systems and wide

fertilizers.'

and

potential

untold

"commercial

U.. S..

,? I

t^ston oitoto^''bn
Pro<Sit*tion
will

rises

Singapore

and

steel

and

;

important

distributing .center?

saver."

land will spend $20 million for
let-age air bases.. ,

wmi

„

help U. S. sales.

/ -

>■

This Colony's recent

rice,

greater

juggle
ju

in addition to

rubber

and

tin

quotas

sugar

response

demands

1960

from

sharply.

American

are

likely to
- - ••

show
-

sales

such

luxury

Continued

Con-

will

in South Africa's

The downturn

has been halted and ex¬

economy

pansion is the watchword for I960.
Disposable consumer income will
climb as a result of snowballing
increase

move

With

un¬

$200

of payments

balance

million

wages

sur¬

native labor.

skilled

1959, import permits now
liberalized. This year will

plus in
will be

witness

sharp pickup in inven¬

investment. But tariffs will
rise in line with the mood to give
tor/

maximum
ary

the

protection

industries.
for

looks

second¬

South Africa still

that

spectacular

boom

proves

Washington finally
hike in gold price

this

few

day
is

ap¬

but

off, although

years

getting closer.
A

10%

gain

America's

ex¬

ports to the Far East is likely as
a

result of relaxation of curbs

dollar goods by Japan, Australia,
New Zealand and Malaya.
•
.'
India's

part

import

policy for first
.will
not
be

this

year

changed

but

some

expected

by mid-year.

terials

and

relaxation

Raw

ma¬

industries,

machinery for heavy
particularly those in

the export

line, will be required

in quantity.
Will

The U. S. and Russia

intensify competition to gain

the upper hand
market.
enced

sion

But

by the

in this expanding

New

Washington.

influ¬
inva¬

territory

leaning toward

closer

Wave

arrangements

again

links

recent

businessmen

Private trade

plan

with

licensee

signed

months with
will continue.

ciations

Delhi,
Chinese

Red

Indian

asso¬

concerted

cam¬

.jute" and

man¬

paign to promote

ganese sales abroad.

New

double taxation treaty with
the so-called "tax
sparing" clause

included

will

ratified

can

in 1960,. This should
the outflow of more Ameri¬

capital to India.

The

second

aInstan

Five-Year

will

started.

Plan

slow

Emphasis

in-

getting

will

sugar, textile and metals produc¬
Foreign exchange reserves

tion.
are

are

far

over

many's
will

from

year

ago

but still

healthy. West Ger¬

Afro-Asian

concentrate

drive

trade

Pakistan. But

Karachi will be
recipient of the
major share of U, S.
aid, particuan.y Irom the

Development Loan
und, which means
imports from

America

will

rise

moderately.

Optimism characterizes Japan's

business

for

I960

but

much

trJDe,!
011 *be U. S:
urfil Steady growth is
th
r,

expansion

1959

will

the consumers'

laking the PlacePersonal
Of the
boom.
will

the

free world's

supply of copper was

creased when Anaconda's new
went into
ern

1945.
a

there

tion

are

additional reserves

It teams up
a

with

produced more than
Today, after four

other

increase

^* Observers believe that the
liberalization policy on dollar im¬

great

mines.

records. This is

one

important
on copper

rest assured of

Expanded

new

increasingly adequate supplies of this

copper

program

applying

the

greater mine, Chuquicamata,

little farther north in

And in the,future, Chilean icopper produc¬

repeatedly set

over-all

mines thus far discovered.

an even

those

the Earth's most bountiful storehouse

versatile red metal.

for 40 to 50 years. And
which have not yet been

promises to take its place as one of the

reallyi great copper

located

can

exceed

why nations and industries dependent

can

reason

it has proved ore reserves

fully developed. It
few

of copper ore.

production. Located 7800 feet up on the west¬

central Chile, El Salvador
largest new copper mine that has been opened since
Soon to produce at a rate of 100,000 tons of copper

year,

still

Chile is perhaps

slope of the Andes in north

is the

reserves

ore

significantly in-;

mine, El Salvador, recently

production in Chile is part of

which

than 60

development of

years

new

Anaconda

sources—but also to

meeting the expanding needs of industry for

Chile. Here Anaconda has

better

6,000,000 tons of copper since 1915.

continually

of experience—not only to

copper

and

products in the entire nonferrous metal field. The

Anaconda Company, 25 Broadway, New York 4, N. Y.

decades of production, Chuqui's proved

economic
expected,

investment

expenditures

High in the Andes, Anaconda opens another great copper mine

the

U. S. Senate
spur

"'El Salvador" mine and concentrator of Anaconda's subsidiary, Andes Copper Mining Company

Washington's

first

60181B

AnacondA
SUBSIDIARIES OF ANACONDA MANUFACTURE: COPPER AND ALUMINUM ELECTRICAL

WIRES

AND

CABLES; ALUMINUM FOIL. SHEET, ROD AND BARS, STRUCTURALS, TUBING

ports will

have substantial impact

AND

EXTRUDED SHAPES:<COPPER. BRASS

FORGINGS

AND

BRONZE SHEET. PLATE, TUBE, PIPE,
ROD,

EXTRUSIONS; FLEXIBLE METAL HOSE AND TUBING.

exporters

20%
-- --

International

Association

Development

to
abolish all' import controls.
imports from the U. S. will be

anticipated

and

the new

dollar

has worked surprisingly well and
strong pressure is being exercised

uncommon.

controls

future

current levels. Another
campaign to increase exports of
manufactured goods is'planned.
Relaxation of import restrictions

mineral output
will recoup completely from the
1957-58 letdown.
Transportation
is
expanding rapidly and
will
spark the mining industry into a
major
supplier
for the world
boom.
Recent
liberalization
of
Federation's

loans from

/ " r ; Y:--v;r-^-";ry

•••: /

around

for exports and imports not duction will be

import

overlooked

for American goods in- the Asian
Export 0utiook for Australia is
area-JPurchasp from U S should good as earnings should rise about
be up at least 25% m 1960. Eng- 12%; Wool'prices will remain

Prospects, in Thailand .are for
"neu°{ th,e best years economically
ln
*• -long history. Rice shipments in 1960 are expected to
exceed 1958 and 1959-exports by
^?-Rubber sales abroad estab-

amounting to $112 million in 1959.
The

not

currencies.
1960. Tin exports also have in- are expected for copra, hemp and
thmdne
tobacco shipments were s;s '™?n trade con- creased during the past year and
metals. The Philippines will benelesnonsible for'the largest fav,'lnue?
'?ap s*aadily'"Y
1111- are on the rebound, Tungsten, fit .from Cuban hostility . td.>U. S.
Washington undoubtedly will
orable trade balance in history presslve gams of.2°% each month lignite, iron ore and cement pro- as ——coupled

exports

and

may

sales here by U. S. exporters

the iron
V,to
Philippines trade will be
Xtri^'lXSk
diverted more and more away
and the yen
w?ll remafn 9moft ,M5edt>a ^e-year record in. 1959 'from Europe and U. S. to Southstahle of AatelfcurrSciS^ ™
?orn
d SUrPfS V"8 l^ure.ln east Asla" ™twns- Stro"§ prlee?
™

the Federation of Rhodesia
Nvasaland revival of copper

nrh.es

quantities"

be as awe-inspiring as President
Garcia declares but it must not

recently makes

goods

gressmen.-With exports increasing,
the peso will firm so that sporadic
rumors of devaluation
must be
discounted.. Finding
of
oil
in

far-sighted

exporters here..
- Lifting
of controls

be rewarding. ;

sive

Continued from page 53

use

output. Last year the Thais im?
ported ah incredible $400 million
of goods with 17% coming from
the U. S. This market offers an

;»";©xports and imports each will

new

(307)

V50g?°"°.mic growth is one of the
*lp™f[»o» gam, particularly highlights of Far Eastern-com•'strhrtkn
de
J1 ^' con- . mercial life, with commodity
"p "J
'
lu.e1' ,col1"" activity brisk in most lines. U. S.
Tov?™ ?io
and machme tools, voluntary controls on Hong Kong's
nhnlilnfr,f^ii ^nS1- -UP?-n
textiles will not work and the
:
0n ^olony also, will capture more
^outheast Asian markets. Aggres-a

lObPt/CLO X'UJU -ft.
X

gain in
-•

good's

on page 57

The Commercial and

Financial Chronicle

meet this insistent
the cigarette indus¬
Philip Morris, has intensified its research and

nitely seems to have passed,
To
demand'for new and better products
try, led by
development activities.
Research is the key by which we

and the industry are

products and bring continuing
improvement in products to anticipate and meet the
swiftly changing consumer taste patterns.
1959 marked the sixth successive year in which both
our sales and earnings topped the previous year's totals.
The record sales volume achieved last year came largely
from products the company did not have five years ago.
Actually, they accounted for about 80% of the company's
peak volume.
The new products included its lightly
mentholated, high filtration Alpine cigarette rolled in
high porosity paper; high filtration Parliament featuring
its exclusive one-quarter inch recessed filter, Marlboro
filter cigarettes and the
premium quality Benson &
Hedges brand of cigarettes.
Reflecting the steadily increasing sales and profits, we
recently increased by 20%, the dividend on common
stock. At the November 1959 board of directors meeting
the common dividend was placed on a regular quarterly
introduce

basis

cents

new

the year

tion

1959.

and

conceivably produce a better year

could

steel

presently foreseeable.

I960 should see a prosperous year.

for

each

The

quarter.

payment at the

first

place

third

into

moved

has

the increase is approximately 370%. Marlboro,
regular filter brand manufactured and sold by the

years,
a

has been a constant volume leader for the
company and in the industry since its introduction in
1955.
Marlboro now represents over 50% of industry's
company,

total

flip-top box cigarette sales.

volume

premium quality cigarettes.

among

In ad¬

dition, sales of the company's Philip
Morris brand
cigarettes continue to maintain their industry position
among

50%

non-filter cigarettes which now represent about

of the total

market.

the

that

industry

popular mentholated filter products.
is the

fact that

seven

the market by the
The

Indicative of this

filter brands

new

were

placed

industry last year.

surging increase in

our

Most experts agree

half of 1959.

rather

but

has its headquarters.
Early in 1960, Nicolet Paper
Corp., a Milprint subsidiary, will open a 100% plant
expansion in West DePere, Wisconsin. This new facility,
which will cost
paper

making

than $2,000,000, will include a new

machine

improved glassine

paper.

its

for

capacity with

mated

ink

new

production

new

and

Milprint also has just increased
and highly modernized, auto¬

Polymer Industries, Inc., another Philip Morris sub¬
sidiary, which is well known for its technical skills and
achievements

the

industrial

adhesives

and

textile

chemical fields, also has charted for opening next Spring
the nation's most advanced, automated solvent
mixing

cate
to

that

the

finance,

total personal

incomes.

the

consumer

and

this

demand

could

extent

some

cultural

been

confidence and

tend

again it is time to look into the crystal ball and
predict the future of the construction industry for the
year to come. This crystal gazing has to be tempered by
judgment of three very important factors now affecting

see

finance
we

industry: the supply of steel; the

amount

which

could

state

lent

laws.

by
few

A greater

unity of

rowing public.
will

our

offset the increases in

during

interest

are

tinue

to come.

projects

retard

them

and
for

will

con¬

some

time

The best estimates

United

States

and

the cost of

obtaining

money.

This increased burden

own

observation

not

recession

the last

feel

was

the

that

full

until

the

consumer

effects

some

six

the

Challenging

decade.

months

the

commercial banks.

institutions

are

glad to

recognizing

that other

lend¬

tremendous

need

see

the

free

world

and

the

;•

next
/v--

■

•

DARBAKER
Executive

Chief

Steel

Officer,

Co.

Throughout 1959, four of the company's five divisions
at a high production level. A.t the Wire and

operated

Cable

Division, production was cur¬
due to a 47-day strike.
The
company
realized substantial bene¬

tailed

fits

from

its

modernization

and

ex¬

launched
and completed in 1958. The
of that program has led the

pansion program which-was
1955

success

Board of Directors to approve a new

$15,800,000 expansion and improve¬
ment program which will be under¬
taken during the next three years.
It will involve equipment to produce
new products and to improve present
manufacturing facilities, i
This project will permit the Wire
and Cable Division to increase sub¬

finance

after

Copperweld will have the highest sales' volume
history and the outlook for 1960 is most encouraging.

recovery

Competition in the consumer finance field is increas¬
ing from the stronger emphasis on consumer loans by
ing

For 1959,
in its

economy

tinue the "boom" growth for some months after the rest
of the economy may be peaking-out at the end of 1960.

Daly

the

Copperweld

industry tends to lag slightly behind
in reaching the tops of booms
recovering from the bottoms of recessions.
the

and

JAMES
President

finance

of
as

from

R. C.

understanding of the

us.

the conditions and the problems we

general economy had pointed upward, or until late 1958.
Thus, we expect the consumer finance industry to con¬

plans of many of the industries, cur¬
tailing production dependent upon
steel supply.

facing

-.'.V" -"'-v'.-w

industry did

expansion

The

rest

well

Productivity

between management and

purpose

decade.

growth may not be so spectacular as
others, but it is steadier. Generally speaking, the

Our

that
the influence of this strike will
carry
on through the first half of
1960. The
strike further affected the
are

other factor
affecting private
building is the tight money market

rate

consumer

the

th^qat.

Every sign points to sustained and realistic growth in
the

1959.

that

many

ominous

they are, but laden with opportunity for progress, too.

which

rates

progress.

construction

expect to prevail in

can

The total effect of this favorable legis¬
become apparent until sometime during
expectation that these legislative changes

not

It is
tend

some

business

How strong is the free

pace

issues and the alternatives

Normally, our industry tends to be less cyclical than
others and considerably more stable. This usually means

import of the steel strike
cannot yet be evaluated. We do know
that this strike has retarded

business and

community—is

labor must be achieved through an

increased

charge which could be made and several
permitted the sale of credit insurance to the bor¬

our

for

with demands of organized
labor.
The only solution is full awareness of the long
range implications of inflation and the moral strength to
decide that we favor the self-denial necessary to avoid
the alternative of more Government regulation.

consumer

money market, and the carryover of
the
construction
volume
now
in

The full

the

bad word?

Inflation will remain

little in prospect which

very

occurred

is profit

currently cannot keep

would expect that profits of the in¬

companies under

1960.

Consequently, we look for
industry to continue its growth

the

will

climate

business

it.

creased

lation

be problems

of course,

enterprise system?

is willing

dustry would tend to keep pace with this growth.
During the 1959 legislative sessions several states in¬

Once

our

can

undermine

consumer

rate

will,

welcome

future income for the repayment of
obligations depends directly on his
confidence in the amount and stability of that future
income. Normally an election year tends to add to this

the

new

finance

DALY

industry in the Sixties:

his

obligate

consumer

during 1960 and

consumer

invention—

Research will

importance.

special influence on agricultural products
new industrial uses are developed.

There

new

Company

which the American

"agri¬
rather

increase

These, then,

The degree to

their

food and

rates.

terest

will

continue

exert

money" does not have an appreciable
larger companies in our industry, except

the

Investment

American

ence

economic

Research—the industry of innovation and
will

deal of discussion about the

great

ultimately

problem" must

than political.

The

has

John H. Daniels

expand

condition, demonstrating that "the solution of the

housing attributable in part to a lack of funds for mort¬
There

because the consumers of the world need and want

con¬

decline

continue

will

products.
.;.rvjc/.'- ■'./...
Rising world demand for food and fiber will gradually
but inevitably lift agriculture out of its current chaotic

Offsetting

1950.

these goods in

participation abroad.

industries

could, however, lessen this confidence.
experts aree predicting an increase in the sale
of new cars during 1960 and a continued replacement of
obsolescent hard goods which were purchased in the last
buying splurge of

will be

growth as it has in the past. For;
example, the electronics and chemical

try

big

and

economic/

Selectivity will govern this future

-v

finance

countries

massive

disease,

trial

prolonged strike in the railroad indus¬

into

Domestic industrial growth

that consumer confidence will remain

expansion

credit.

sumer

with

paralleled by investment and indus¬

strong during 1960, particularly in view of a settlement
of the steel strike.
This confidence, of course, is the
basis

turn

trade

Sixties is visible:

during 1960, either individual or corporate, and thus
disposable income (the real income available for repay¬
ment of consumer credit)
will increase at a slightly
than

con¬

world

pledged to conquering hunger
as well as Communism.
Against this background, the most
likely course of our economy in the

slightly and there should be some reduction in
unemployment to approximately the 3 million level. We
do not look for any basic change in the tax structure

It would appear

underdeveloped

and

mark

lower rate

that; the

and

group

$500 billion

exceed the

should

Product

National

Gross

stalemate

gradual solidifying of the Atlantic

nations

which

incomes,

personal

DANIELS

ultimate

intensification

the

^determine the demand for consumer
should continue to grow during most of 1963.

its

President, George A. Fuller Company

success¬

Archer-Daniels-Midland Company

conditions will lead

These

rapid expansion qf the

large extent

and

polymerization plant. In 1959 this company doubled
Tesearch,
manufacturing and
office
facilities
in
Springdale, Conn., where the new $500,000 polymeriza¬
tion plant now is being erected.

these problems

next decade.

based on the rebuilding of
inventories plus normal demands.
Second half of 1960 should see a
continued growth but at a less rapid
rate than occurred in the first half.
I
Our own observations would indi¬

Lawrence M. Curtiss

room.

con¬

population explosion will not be checked for at least the

that

gages.

with

toward

tinue

economy,

population obviously will

packaging field, has acquired for future expansion needs
considerable property in Milwaukee, Wisconsin, where

decade

new

the economic war with the Communist nations will

that "tight
effect on the
as it affects in¬
terest rates.
Usually, in such a money market, consoli¬
dations of smaller companies with the larger companies
become more pronounced and the normal expansion of
the industry continues at a slightly slower pace. We do
not look for any easing of interest rates during
1960,
neither do we expect a substantial increase in these in¬

the increased

valid appraisal .of the future we. must assume, that

In any

full-fledged boom

not be a

products and packaging demands of all types, Milprint,
Inc., the company's subsidiary which leads the flexible

meet

JOHN

tightness of money which, of course, has its effect on
the consumer finance industry. It has been our experi¬

President,

months

all consumer goods industries.
packaging demand of new food

demands

place new

Most

will sell one halftrillion cigarettes in 1960, we also predict a continuation
of the trend toward filter cigarettes, including the newly
estimating

•
#

this will

Benson &

Hedges cigarettes, another Philip Morris product, is the
sales leader

•

predictions which we have
1960 indicate that the first
of the year should see
a
continuation of the upward surge
which had its beginning in the last

menthol

the

Alpine was introduced by Philip Morris Inc. in
August 1959. High filtration Parliament, introduced by
the company in January 1958, is one of the leading
brands in this cigarette market. In its first year, Parlia¬
ment showed a 235% sales gain and, for the first two
field.

of a

advent

the

equipped us to meet

fully.

Many

six

new,

Alpine is now in distribution in more than one million
retail outlets in all 50 states.
In many major mar¬

well

has

read for

higher, 90-cent regular quarterly rate was made on
Jan. 15,
1960 to common stockholders of record Dec.
18, 1959.
Alpine, the company's new high filtration, light men¬
thol cigarette, shows a remarkably high growth rate and,
in a recent five-week period doubled its sales volume.

kets

Company

Investment

Illinois.

company

increase

pected results of our own company,
American

has paid consecutive annual dividends
on its common stock for 32 years, the last ten of which
have been at the regular rate of $3 a year, or 75 cents
The

anticipated

the

fidence, recognizing that it will present many problems
and challenges.
We feel, however, that our experience

since our business
the economy as a
of necessity, are based on the ex¬

Our estimates,

will

Sixties

welcome

will

parallel those of industry generally,
is closely tied to the performance of
whole.

year

population, particularly in the 20 to 25 year old bracket.
We do not look for this to have a material effect in 1960
but it will be increasingly important in the mid-Sixties.

Co. of Illinois

finance industry

1960 results for the consumer

The

wel]i

economy,

the

into

CURTISS

President, American Investment

annual basis of $3.60 a share.

for 1960

In any event, barring a
resumption of the steel strike, the construction industry
than

in¬

generally, and for the consumer fir
nance industry.
Consumer confidence will remain strong
throughout the year with a possibility of some setback
from a major strike.
Earnings in the consumer finance
industry should be good in 1960 and with a few excep¬
tions the results of consumer finance companies during
the year should set new records.
One
major -factor which should contribute to
the
growth of the consumer finance industry as we progress
the

for

installed for

has been

dustry and our own company . particularly, are
equipped to meet.
In summary, 1960 looks to us to be a favorable

A break in the tight money market situa¬
further interception in the production of

This move put the stock on

share.

installed

of construction

ume

We feel that this

loans.

competition presents a challenge which our in¬

creased

skeptical of proceeding.
Despite the uncertainty in steel supply and the tight
money market, there appears to be sufficient volume of
work in progress and contemplated, bolstered by the
Government projects, both State and Federal, to indicate
that the year 1960 will see approximately the same vol¬
category, making owners

Thursday, January 21, 1960

demand for consumer

and

in the marginal

buildings in some cases puts them

Continued from page 54

able

(308)

James M. Darbaker

will

y
able

stantially the production of

weld.

Alumo-

The Aristoloy Steel Division

alloy steels having higher
strength-to-weight ratios and improved resistance to
high-temperature fatigue. Ohio Seamless Tube Division
will

install

new

produce

electric-weld

heavy-wall steel tubing

lines

which

will

produce

to 7 inches in diameter.
Continued

And

page

Number 5918

Volume 191

...

The Commercial and Financial

demands

Prospects for
Foreign Trade
Profits in 1960
55

Continued from page

further

tinued
will

for

devaluation

austerity
dollar

turn

crisis.

away

Russia for aid
After

haustive
cocoa

But

from

and

con¬

three
now

barter

years

1960.

concluding

deals

tration

coming

elections.

probable

view

of
ex-

coffee

and vegetable oils for Soviet

heavy machinery, petroleum and
oil-drilling equipment. ^ large
A
^

Government

forming

another 5%

Chile

excellent

will continue.
ic.

products

further. Brazl1 s credit position

wil1 weaken as the cruzeiro will

handlinS finances and rebuilding
Yle economic foundation. In 1959
Chlle had a favorable trade balan5e aiid attained a "good" credit
!?h?g for the first time in yearSl

Businessmen both in Chile and

further.:

import

hit 250-due to heavy currency creased
ttherhuUd-up.orW «* issues for financing^ Brasilia^
A

aPPare"t and Growing unrest by industry and

reserves is

change

Last

year's

jump

exports of 30% indicate an easing
of

foJ^onsTderable" improvement.

regulations

purchases

from

in¬
abroad.

and

investment more attractive. Copper production will be high and

restrictions win oe re- Congressmen
against
Adminislaxed. U. S. exporters will be able
to ship more raw materials, ma- i
chinery and
textiles but trade
NEWS ON TEXACO PROGRESS
with Iron Curtain countries will
rise" Expansion of several indus¬
tries,
notably
paper,
will be
accelerated. Plans for a common
market with Australia1 will not ;
make much headway in 1960.
import

tour

imaginery

this

the

and

economic

comeback.

sol

and
the currency
will
strengthen
further.
Sugar
and
cotton exports are up and the out¬
for

still

1960

promising. The U. S. will increase
Peruvian
sugar
quotas
while
cotton

prices will be higher. Im¬

quotas
are
being
lifted
gradually and prospects are for
greater purchases from abroad.
An increase in local petroleum
port

Collections

promptly

and

debts
have

panies making substantial outlays
expansion,

the

been

surplus

Colombia

loan

bail-out

Another

this

likely
has

year

her

means.

minimum. More loahs

to finance

from U. S. are assured

rapid development
populated
areas,

sparselyhydroelectric
of

projects an(j transportation.
.

Bolivia's

outlook

remains

gloomy as y. s exporters tighten
terms and restrict sales.
One of

incentives provided the worst cases of inflation in the

by the new Industrial

Promotion

Continued on page 59

brought in

ap¬

proaches Latin America, it must
be realistically kept in mind that

declining

exports are in a

to exchange shortages,

trend due

import controls, the Russian eco- \
nomic
offensive,
political
dis¬

surpluses and
commodity prices.
1960 dip will not
be as sharp as last year's
15%
drop,
in
all probability Latin
American purchases from the U. S.
coffee

turbances,

instability of
Although the

50,000,000

the

But

10%.

another

will

fall

most

far-reaching economic event

Republics in 1960 will be
beginning of the South
American common market, con¬

for the

cars

the actual

sisting
to

now,

Venezuela sure

and

Mexico

with

countries

seven

YESTERDAY. When, in 1901, a great gusher blew

join later.

—

stage of Argentine's

The second

spouting its black geyser against the
learned

for the

world

will mark

abundance. And it was at

estimated

million

Foreign

will

trade
and

$330

budget deficit.

the

tackle

balanced

exchange

ports

and

tional

restrict

will

Crude

in¬

oil

production

but booming auto
up

will
in¬

exchange

president Frondizi
a
hostile
Congress and
labor turbulence expected

savings.
lacing
more

With

1960,

the

country's future lies

the

hands

.Imports will be

Forces.

Armed

slightly.

Elimination
of
multiple
ex¬
change rate system by Uruguay
lays the groundwork
for some
improvement in the deteriorated
economy.

hard,
•

will

in addi¬
U. S. arid
maintain its

dustry will swallow

•

Spindletop oil.

goods consump¬

consumer

jump 60%

•

to obtain and market

stability. Tight money will

recent

tion.

the Spindletop field that Texaco came into

million

$200

Peso

the whole

stepped-up ex¬

credits f from

Europe.

—

gold

reserves

in line with

crease

being

in at Spindletop

South Texas sky

first time that it could have petroleum

self-imposed

austerity
program
1960. Main problem-will

will be a
since last

it
pull

However,

frustrating

year's crop failures, flood effects,
decline
in
meat
output,
large
trade deficit, work stoppages and

rapid

inflation

the

create

worst

crisis in her history. Prospects are
for

low-quality and reduced
dip, more
strikes and
a
weakening peso. New reform bill
a

wool

Placing taxes
ports

will

chases
d

from

Paraguay's

down

on im¬
further pur¬

to 300%

cut

trade

balance

growing, with the 1959 surplus
largest in years despite a decline
in
exports and increase in imports
during last half. This will carry
into 1960 as low sugar prices,
dip in lumber demand from
Argentina and poor cotton crop

over

the

will hurt. Meat and wool
ore

good

ments
in

are

among

prospects

collection

while

pay¬

the most prompt

Latin America.

possibility
of a successful revolution
against
the
dictatorship is drawing closer.
In

Brazil

But

another

trade

gap

Roughly $300 million again faces
the
Republic. Refusal to comply

with International
Monetary Fund

TODAY.

America's millions of motor cars

have only been made possible

industry's high production of oil. Today, Texaco is the
largest producer of domestic crude oil. Its integrated operations are
worldwide in scope. And its laboratories are investigating not only petro¬
leum's valuable energy, but also atomic energy. By keeping in step with
the future
„. Texaco continues to grow.
by the

petroleum

hard

the

lgarned

within

export

import increase will be

Thus any

kept

1957

paid

are

outstanding

all

paid.

live

way

industry, with a number of com-

for

throughout

prevails

Optimism

prices has spurred activity in the
:

foreign

Colombia.

return¬

ing

look

lure

capital.

the

will

Law

gain

gusher

that

Decline

S. A. to

The

Imports From

American

Latin

are

Confidence

appliances are being crediVTrom Moscow "also'is "ex- Y; S' haye. gr.e?t 9°.nfidePce in the
shipped to Australia for the first pected Exports wilh continue to {ile.s/andF1\ Administration. Austime. Both Japan and Europe will;, recover the 1956_58 dip but j
terity will be maintained while ,
enter the investment scene but the portg frQm the u
g
the new escudo replacing peso
will
strengthen
the
currency
S.

stability

should

index

in 1960.

financial

Peru's

per-

job

textiles and

to
have
U.
rush
licensed in Australia

industrial

the

Brazil

and trade in

nearly

threats, Rio is

means

Chronicle

TEXACO
1

The Commercial and Financial Chronicle

(310)

Continued from

with

page

philosophy which suggests that further inflation
with resulting loss of purchasing power

of the currency

Superior Steel Division, the company will be in a

at the

is inevitable.

position to produce larger coils of strip steel.
Wire

and

Because of this

for

by the electrical industry, has exceeded
Sales of Alumoweld have been limited be¬
cause of lack of sufficient production capacity.
The new
expansion program will provide additional production
facilities and lead to greater sales of this product in 1960.

•V

y :

Superior Steel Division

■

tional

position of the United States

contrasted, with

that of ten years ago

is bound to produce many unantici¬
pated effects. Thirdly, the high costs of production in
the United States, due in part to high-unit labor costs,
rnse »
nous question with which the national economy

At Superior Steel

Division, Carnegie, Pa., sales of stain¬
less, high carbon and alloy strip steels were considerably
higher in 1959 than in 1958.
The highlight of operations during 1959 was the com¬
pletion of the installation of a new 25-inch Sendzimir
cold rolling mill.
This $1,750,000 mill is considered one
of the

salvation rests

that their economic

the

lems.
Inflation already has been mentioned., Another
problem stems from the fact that the changed interna¬

;

hindsight.
A man's responsibility to his family is just as great
today as it ever was. Even though equity prices rise,

During the past year, operations at the Aristoloy Steel
Division, Warren, Ohio, were maintained near the limit
plant's capacity.

there

Division in

customers

established

on many of the
meeting the heavy demand
own steel-

means

substitute

provide

for

which

Because

that
of

is not

another

this

outstanding

service.

tubing made

stand

and

Division's

the

over

stranding

all

Unlike

Copperweld International

partially

Copperweld

orders

have

for

are

installed.

Board

Index

all-time high of 155.

Industrial

record,

manpower and
ductive capacity.

machine

exert

than
a

years

salutary

and

United

Davis

the

econ-

The nation continues to
have with it the
threatening
specter of further
inflation, and the efforts of the Ad-

•?u-°upreserve the. purchasing
merit

power

atmosphere

become

labor

that

should

will

War

reached

leaders

enable

result

automation

World

tell

history.

expected

dollars

salt; and fifth in manganese ore.development
of
the
area's

The

natural

for

has

resources

responsible

from

and

the

any

omy of the Middle South. In the past
decade over $2 billion has been in¬
in

plants

new

and

industries.

paper

concerned, I'm hopeful

see

end

annual

1949

the

value

this

rate

increasing gains that have

taken place, we are
viewing
future with the same enthusiasm
with which we
review the past.
•
;
As an example of our
confidence in the future of the
Middle South, System
companies have now under con¬
struction two new
generating units scheduled for com¬
pletion in 1961. One of these units will have
a capabilitv
of 230,000 kilowatts
and the other will
have 325,000
kilowatts of capability.

evidence of

Thus,

our

faith

estimate

there

should

the justice of

small

freight

this

our

difficult to

time,

revenue

increase

over

Today's economic

but

efforts
of

assess

our

that

this

is reasonably accurate. I
would assume that
the net results for the
year will be somewhat comparable
to the recent
year.
•

increasingly imbued

for the

year

was

Missouri Pacific Railroad.
Obviously,

good

one

had

Railway System
has

easy access to one of
useful aids possible.
It is readily available in
book stores and the cost is
nominal.
To put it
simply, all he needs lis a map, of the South.
If he will point to fiat
map and pre¬
dict that "this is

the

most

next year—for

diversification,
kets

and

thefregion to watch
industrial growth, for
for expanding mar¬

healthy

economy,"

reputation is

secure.

make

prophet.

him

first

South either spent or
authorized almost $366 million to construct and

Suu, +2 ?

f n*\5lants and expansions. In doing

20,000

To be understood

they

so,

new job opportunities, with

glVe

to come

his

The South will

11 months of 1959, for
example, there were 256 new indus¬
trial developments
along Southern
Railway System lines alone. They
included new industries,
large new
warehouses
and
distributors,
and
major additions to existing plants.
Businessmen ,who had apparently
been looking at their
maps of the

Harry A. DaButts

reSion's economy
fully, 1959's growth

lift for

must be

pay-

years

seen

part of an industrial "chain reaction"
that has been going
on in the South for
years, particularly the burst of ex¬
pansion in the last two decades
that has involved thou¬
sands

new

developments

and

plant investment.
This

Review of 1959

DeBUTTS

Southern

most

that

feel

1959.

estimate

Compared with 1958, the pa3t

producing tangible

future.

forecaster

the

inflation

we are

the

HARRY A.
President,

then the economic
the railroad negotiations
labor leaders will have

In the

inflationary spiral

qualification, it

1960

preliminary estimates

Middle

South System
operating
serving 625,461 electric customers, had
an
owned capability of
750,000 kilowatts, and a gross
plant of $340 million. Ten years later, at the end of 1959.
System companies were serving more than
890,000 elec¬
tric customers, had owned
capability of 2,742,000 kilo¬
watts, and a gross plant of approximately $850 million.
Certainly, we cannot predict with complete accuracy
those events yet ahead.
Guided, though, by the steadily

time.

eliminate featherbedding.
If they do,'the future
railroading will be much brighter.
of

*■

were

be the best

Because

H. Dixon

Mississippi.

the

until

understanding of the competitive situa¬
now
confronts our industry and as we sit

bargaining table will

are
expected to
in the future for drilling, exploration,
produc¬

be spent

realistic

which

at the

our

Over $1.5 bil¬

Tidelands by the gas and oil industry and billions of additional dollars
ana

business

first

facilities

lion has been invested in the Louisi¬

for the past 10
years,

So far

and

the

chemical, petro¬
chemical, petroleum refining, alumi¬
num
building materials, and pulp

railroads

other industry

1960 will

reach

the

been greatly
maturing econ¬

the

for

activity
income will rise
sharply
Total spending in the

up.

oil;

Not overshadowed

II.

unless

realize

them,

...

of crude

reserves

natural gas liquids.

program

1960
us

continuance of the upward

high commendation. The
present generation
an

rail

and

government

competition, and

rules

that

do want

to meet

national forecasters

trillion

tion

provide assurances
a year of
excellent business conditions.
replenishment of inventories and the
supplying of
the pent-up demand for
goods unfilled during the strike
as well as
an
impressive increase in estimated
capital
expenditures, will provide a strong stimulus to the
econ¬
omy for the year ahead.

end

What

change

States.

States

are

Deane

,*2Lthe ?teel strike durinS

discoveries and increases of

the

ways over which their

work

cannot

future appears bright.

that I960 will be

lived

the

•

The

it tends

Russell L. Dearmont

regulation and competition than

has haunted

the loss of

long that

new

disturbing factor in this optimistic forecast is the
prevailing labor situation, particularly in our own in¬
dustry. If the steel industry settlement does not result

inevitably result,

natural gas, and

perhaps ironically, the restraints
imposed

for

mechanization

and

half

national tragedy. Personal
hardships
on
the strikers and the
workers in
related industries

unfortunately has

things:

efficiencies

goals

United

of the magnitude of the recent
steel
work stoppage,
tends to

wages often exceeds
which may be achieved for a
long period. At the same time, and

the

pay for

According
will mount to new
heights
employment will be

one

gains

ways

that

year

become

their

Outlook for

effect

Every strike, and particularly

dollar

...

Our

upon an economy almost snowballing
with activity prior to the steel
strike.

and

the

pro¬

tended

restraining

trans¬

longer the transportation monopoly they used to
they are subjected to more kinds of govern¬

in the

Money rates dur¬
ing 1959 reached the highest level in
more

outmoded

since

two

public

ment

re¬

longest steel strike
116 days of both un¬

used

DIXON

Since 1949 the Middle South,
comprised of the states of
Arkansas, Louisiana, and Mississippi, has led the nation

government subsidy.

our

are

Production

Also, 1959 will be

President, Middle South Utilities, Inc,

companies

programs

have

two

realize

These

membered for the
on

the

June, the

are

billion

Montpelier, Vermont

achieved

want

need

carried

Company

The year just ended has established
many new records
for the American
economy. For example, in
Reserve

for

agencies" of

^hat they

change in

Insurance

years

regulations that will enable

DAVIS

Life

an¬

out.

which

the $15
National

that

billion

operate.

We
and

DEANE

'/•

The

the fact

trains

come

product when

facilities

the

effect of the economy of an area on the
utility
system providing it with service is shown by the almost
directly proportional relationship between the improved
operating results of the Middle South System and the de¬
velopment of Arkansas, Louisiana, and

entirely paid for by the
taxpayers, railroads pride themselves

from many countries and it is
anticipated that there will
be a substantial foreign potential for this
the additional production

tion, and pipelines.
^

excellent

carry

other

portation,

Sales by the Copperweld Steel International
Company
were made in
66 foreign countries last year.
In 1959,

first

quality of
right to

knows

the

nance

product

agree¬

motive power alone,

cars and

they want to

its

are

nothing of general improve¬
ment
to their properties.
The big
problem confronting them is where
the money is coming from to fi¬

presently served.

accepted
this new

Railroad

say

to branch out into

per

1958 earnings.

dedicated

least $1

the

planned for installation in 1960, will permit this Division

International

and

has

management
invest at

nually
freight

machines enabled this Division to produce a better qual¬
ity of wire at a higher rate of speed.
This new equipment, together with other facilities
not

Pacific

Rail

of the Flexo Wire Division in
Oswego, N. Y.,
substantially higher in 1959 than in 1958. Modifi¬

areas

kind

public

should

Flexo Wire Division

Sales

Federal

DEARMONT

government economists

expect?

the threshold of this next decade which

the

render

service

sizing mill changes.

President

public

year

spectacular growth and expansion
in every conceivable way, the question might well be
asked:
Are the railroads equipped
-V
;

better instrumentation for the control of
heating billets
for piercing and better equipment for

Inquiries

prosperous

■

independent and

department to facilitate handling and
fabrication of tubing.
Technological improvements were made wrhich included

Alumoweld.

for

care

ment will be an era of

new

$7,362,000, equal to $3.93

can

■

President, Missouri
As

fabricated-parts

were

mandatory-appropria¬

be about

Class A stock, from

vested

previous shipping records on hot mill production of tub¬
Improvements of facilities enabled the Division to

cation of equipment and the installation of

will

simple

RUSSELL L.

ing.

tions

of Class A stock, compared with $2.80 in 1958.
Dividend of $2.40 per share was paid in 1959

for his responsibilities

care

here

There

immediately

Division, Shelby, Ohio, broke all

increase the size range of the hot-finish

Balance

personally to

individual

truth, and because 1960
promises to be an active year for the national economy,
it is my view that the life insurance industry will enjoy

Ohio Seamless Tube Division

the Assel mill from 514" O.D. to 6" O.D.
Extensive improvements were made in the

$1,700,-

increased employee benefit taxes. ';.
after all charges and

000

this development, the area now
ranks first in the nation in the pro¬
duction of bauxite; second in barite,
bentonite, sulphur, natural gas, nat¬
ural gasoline, and petroleum; fourth

insurance.

life

estate which will

event

them.

consuming divisions.
During the year, plant metallurgists developed new
procedures for quality control, particularly in the field
of stainless products.
V

Ohio Seamless Tube

in the

of the company's

and

other

of the

outside

represents increased Federal Income Taxes and

dependent
the continuation of saving and thrift as laudable
virtues, nothwithstanding the charm of a stock market
which makes it easy to show how large fortunes could
have been accumulated, if individuals had enjoyed the
benefit of

The economic future of the United States is

Aristoloy Steel Division

facilities of this

end the year with an increase of 4%.
•
Operating revenues are • estimated - at $304 million
compared with $291,800,000 in 1956. They would have
been approximately $5 million higher if the steel
mills
had remained in operation.
Estimated operating expenses of $232 million will
be
$9 million higher than 1958, of which $7,600,000 is for
higher wages and employee welfare benefits. Tax ac¬
cruals will be approximately $24Vz
million—up about
$3,700,000 compared with 1958, of which $2 million
.

upon

most modern cold rolling facilities in
provides the potential for considerably
higher production in 1960.

were

been
-

must cope.

finest and

records

have

the country and

Production

would

mistaken

ownership of such property. Anyone who care¬
fully has studied the history of inflation in other coun¬
tries knows that this does not necessarily follow. How¬
ever, its appeal cannot be denied, with the result that
life insurance companies and other savings institutions
must make a stronger effort to impress upon the popu¬
lace the need for caring for first responsibilities first.
A long-range rosy picture readily can be painted for
the American economy with substantial justification, but
the future is not without the challenge of great prob¬

use

it
:

earlier

expectations.

strike,

Carioadings, which had been running about 8% ahead
in
the
year,
started declining in
the fourth
quarter, due primarily to the steel strike.
We expect

philosophy, more and more
people tend to turn to equities of one kind or another in

military antennas and for copper-covered steel ground¬
ing electrodes for utility use. Interest in the Division's
new
product, Alumoweld, an aluminum-covered steel

steel

the

better.

the erroneous belief

Cable Division

During 1959, at the Wire and Cable Division, Glassport,
Pa., guy and messenger strand sales to the power and
telephone industries were at the highest level in the his¬
tory of the company. Other sales increases were achieved
for machine-straightened wire for use in industrial and

wire

for

been

not

much

Thursday, January 21, 1960

industrial

momentum

and

billions
the

know to be in the planning
stages lead
growth in i960.1 Southern

tinued

new
us

dollars

projects

to expect con¬

Railway backed

Continued

this

page

/&■

Number 5918

Volume 191

The Commercial and Financial Chronicle

balances

Prospects for
Foreign Trade
Profitsinl960

devalued

contrary.
an

rumors

Petroleum

the

exploration

disappointing after

optimistic beginning.

tries

also will expand. The trade
deficit will be cut further in 1960.

threatened.

earnings

and

metal

from

growing

competition.
Soviet

offers

new

gantuan

plans

make

am¬

Gar¬

Mexico

missions
taken

come

Chances

ment

and

heavy
textile

certed

Bolivia's ailing oil indus¬

reality.

industry.

is imminent. * •
Recovery in Ecuador has been

try

Several

machinery,
plants

for

Practically

par

manufacturer

has

though^ optimism''is much

will

nucleus

submitted

Domestic

^Mexico

trigger

Mexico

are

railroad
be

con¬

from

Moscow

auto

loans

from America.

major

favor

,.£

and., political

■

•

jus¬

and banking facilities.
exporters will have to

of industry

trade.

tighten terms unless they can af¬
ford
longer delays in 'payment.

turn

Imports will decline^steadily for
next five; years, until economic

more
;

uncer-

stability returns. Sugar crop and
demand from Europe will, be good
in

I960,.

will

outlook

But

cut in

sugar

quotas

retaliation for ex-

par-

tainties

production,

gloomy.

Deterioration of the Do-

propriation of American property,

minican

Republic is spreading on

Dwindling gold and exchange re-

steel

indus-

also-, make

the

still

will

Castro

illusions

closer

Moscow

himself

tie

■

Our

country-by-country round¬

today will end on a more op¬
timistic note
in Canada, where
up

business

will

good

recovery

will

waning months.

Settlement of the

U. S. steel strike will
uous

demand

place stren¬
Canada's primary

industries.

Rising interest rates
government proj¬
ects.
Shortages of mortgage
money will cause a slowdown in
building and household appliance sales. The Canadian dol-

will delay some

lar premium should narrow as soContinued on page 61

Italy, Czechoslo¬
Yugoslavia." More hi-'
lateral
exchange
with Latin
American neighbors is certain;
'
In Venezuela a gradual broad¬
ening of controls and reforms can
be
expected in 1960.
Actually
these. will
be
only
protective
and

just as the recent ex¬
license restrictions on

measures,

tension

were taken
Imports of con¬
sumer
goods from this country
will be down at least 50%.
Al¬
though Venezuela has remained
the largest Latin American buyer

luxuries

precaution.

most

now, another
will give first
to
Mexico.
Venezuela
position
still boasts of a $1 billion trade
surplus annually and
gold and
exchange balances are more than

from

20% drop this year

But the de¬

amount.

half of that

Presi¬

anti-Communist

termined

Betancount, still
problems as the enor¬

Romulo

dent,

faces such

debt inherited from

the pre¬

vious Administration and

political

mous

infiltration.

outflow

Heavy

refugee capital to U. S. and Eu¬
rope will ease while the increased
number
of
recent
bankruptcies
should taper

Collection pay¬

off.

but the

slow

remain

will

ments

Iron

bolivar will not be devalued.
ore

production will

diamond

<=and

1960 while

petro¬

jump again

leum output

will hold at about the

peak 2.5 million barrels per day.

Only

relatively small part of
will enjoy eco¬

Central

America

nomic

in
1960.
Com¬
unrest and in¬
Panama will handi¬

progress

munist-sponsored
filtration

business somewhat.

cap

Last year

Panama increased purchases from
the U. S. by 30%
but will be
forced
sales

easier now as retail
resistance. Mer¬

find

may

chandise

would

handled

by Colon Free
through
the
Canal will continue to set records.
Zone

Costa Rica's coffee
all-time

American

coffee

output is at

People scoffed when the explorer,

Latin

the

but

peak

Agreement quo¬

London newspaper.

tas
impede
exports.
Exchange
earnings also will suffer from one
of

the

smallest
Costa

years.

-for Central

banana

Rica

American

crops

distributing

integration
central

area.

investment law is
in

rare

are

deficit

this

new

one

for example lay idle under

Natural gas,

the earth. How could it be put to work?

foreign

challenge created the long

This

distance pipeline. Today, through our 11,000-mile

system,

of the most

world. .Large deposits
have been found

key states are supplied

with the world's finest fuel. Natural gasl

But

short-term

More than 2 billion

pros¬

and

likelihood

Salvador

impressive.
A
coffee exports

Delivered dependably and

the

result

and

large

pending

increase in
is fore¬
close

economically'round the clock in any weather.

are

Japan

seen

tionship

100,000 tons of coal.

auster¬

Political stability and industrial

cubic feet daily... the equivalent of over

hampered by the budget

development

From

natural gas and

oil... heat, power,

relar

commodity

wider service to mah.

petrochemicals that mean ever

Salvador also is in line

for more U. S. loans.
for greater
imports.

Outlook

Guatemala's industry will show
some improvement but low prices
and limitations on
exports of cof¬
fee

industry, man always responds to challenge.

re¬

ity.

deals.

did! Risking life in the Antarctic

Who would answer? Thousands

facing a thorny problem in

Shackleton, placed this ad in a

metals

recently.
pects

for

center

gional trade

answer?

leader

the

and intends to become the

liberal

vou

traffic

and

Latin
American
FRASER Agreement will handieap the entire economy. Exchange
resulting

from

Digitized for

the

SAC
TRANSMISSION

TENNESSEE
DIVISIONS: Tennessee

Gos Pipeline Company •
"

Tennessee

•

"HOUSTON,

TEXAS

Bay Petroleum Company

Gas Transmission Company - East Tennessee Natural Gas Company
Life Insuronce Company • AFFILIATE: Petro-Tex Chemical Corporation

SUBSIDIARIES: Midwestern
V-V"

Tennessee Gas and Oil Company

COMPANY
"

through

But the pace of
taper off in the

most of the year.

made by France,

vakia

trade

and intrigue.

The

...

and preposterous

means

discount for

(311)

about obtaining U. S. financial aid

expenditures

further nationalization

over

American

the West Indies, Communist

world, .infiltration

the

will

serves

years

Uneasiness in Cuba appears
tified

the $100 million credit bait

the

every

will remain at
sometime.' - '
- "

will not

substantial

any

political stafew

Defense

peso

re¬

cannot

lightly.' But they

down

proposals

noticeable than a year ago. ticipate in Mexican
business remains dull
Petro-chemicals and
but banana, cacao and wood .ex¬
ports have been expanding.
A ,
marked shift in trade from the U.
S. to Japan and Europe, including
the Communist satellites, is oc-: „
curring.
Chief gains are being .

Govern¬

trade

Thus

past

icit for first time since 1940.

face

sulting from recent exhibits and

one of the
largest automobile pro¬
ducers in Latin America will be¬
a

harder

the

climbing and Trujillo is faced
with a balance of payments def¬

Moreover,

concrete

bitious industrial expansion.

sell

are

Imports from Europe will be up
sharply while U. S. shippers will
to

broad scale,

bility

coffee, cotton
will improve.

exports

firm peso the base for

country near bankruptcy and
dollar loans scarce, Bolivia will
turn to Russia in 1960. A $60 mil¬
lion emergency credit from Mos¬

slow

dip

have

the

cow-to

despite

will not be

Stability will be the keynote of
Mexico's economy in
1960, with a

the nation.. With

plagues

continue

has been most

Continued from page 57
world

will

However, the quetzal

The Commercial and

(312)

Continued

for new iocomounits and 1,240

belief with $38 million worth of orders
and

tives

1959—48

cars

diesel

new

addition to its own map
of the South.
During the year we concluded an agree¬
ment to acquire the Interstate Railroad, an 87-mile line
in southwest Virginia, subject to Interstate Commeice
Southern planned in 1959 an

will give the pro¬
readier access to

Allied with Southern, the Interstate

ductive bituminous coal fields it serves

expanding markets along the 8,100-mile Southern Rail¬
Already there are 47 coal-burning electric power
plants served by our lines, and more expansion is planned.

way.

served

the Interstate stands

gain

development as well, due to Southern's active
in attracting new industry to areas it serves.

industrial
interest
This has

already happened in territories served by four
other short-line railroads Southern has acquired in recent
-■'■■■'

years.'

<-.

/-'V;

They are the Louisiana Southern, south of New Or¬
South Georgia and the Live Oak, Perry and

leans; the

Florida; and the Atlantic
Carolina, running from Goldsboro, N. C. to the
Recent industrial developments in these

have involved

total investment of

million and have created

than $100

job opportunities for more than

2,000 people.

impressive, do not tell the full
story. Vigor, enthusiasm and the sense of new beginnings
found everywhere in our territory are changing the map
of the South and making it industry's blueprint for
however

Statistics,

building

ARTHUR
President, C. I. T.
1960 and in the years

instalment

will

credit

DIETZ

Corporation

Financial

to follow, the use of consumer

continue

increase

will

and

new
record levels as it grows in proportion
the expansion of the entire U. S. economy.

reach

Sales

new

for the largest

which

cars

the year

ahead to

This forecast

will

trouble

further

includes

the

Within
sales

car

While

there

increasing

seems

important weapon to combat this threat
development and adoption of technological

improvements in

machines

methods.

and

dangerous

unemployment
-V

deterioration."

However,

costly

and

volume

persons, over the increased
of
instalment
credit,
the

getting

underway.

the

year

15%?

used

was

1958

will

thari 7 V2 %

basis.

just

was

(Last year the
302 million.)

over

Oris Dobbins

with

respect

larger

ever

ultimate

tax

liability

involved.

amounts

Legisla¬

tion

has been proposed which in one bill could settle
the matter for past years on the basis of court decisions
to date (which have held in favor of the
taxpayer), and
for

future

principle
in

favorable for

the

years

industry

which

figure

and

recognize

the

intelligent

the

for

need

reasonable and sound basis.

settlement would

would

depletion

percentage

Such

clear up a

manner

most

vexing problem for the industry and its stock¬
holders, as well as for the Treasury Department.
New housing starts have already turned down
partly
due to high interest rates, and there is
every indication

strong emphasis:
sales

with

uncertainty

continues

the

our

than

administration that corrective legislation be enacted. As
a
result litigation between the taxpayers and the In¬
ternal Revenue Service continues on a broad front and

the national economy. This trend is
expected to continue;
and inasmuch as advertising accounts for three-fourths

12%?

use

Thus,

deple¬
tion remained unsettled throughout
the year in spite of the urging of the

publishing and broadcasting industries,
which include most of our customers, should benefit as
American business looks forward to a period of
competi¬
tive selling supported
by strong advertising and sales
promotion.
U.
S.
advertising
expenditures
increased
about 10% in 1959 over 1958, bringing the
industry back
to its long-term growth trend which is twice as fast as

con¬

The question of percentage

printing,

appears

might

national

total

dollar

that

the

behind

housing
high

the

in 1960

program

established

pace

Construction of

new

will continue

early in

lag

1958.

cement

manufacturing plants con* >JF
capacity either under
construction or in the planning stage totals some 425
million barrels annually, about 30%? more than current
consumption. Foreign importation of cement continues
a

■

tinues

and

to be

mar¬

Current engineering and research is concentrated
printing presses, conventional and photographic type¬
setting machines, radio-TV transmitters and automated

Arthur O. Dietz

troublesome factor in

present

Competitive

studio

expansion of credit purchases actu¬
ally is a sign of a vigorous and healthy economy.

season

increase over the 1958 figure—in the
neighborhood of 325 million barrels

ket.

the

probably reflect not

"dollar
1

by products just beginning to reach the commercial

some

cement

Printing, Publishing and Broadcasting

Development—About

awards

September when the
provided and, because

was

lateness

which

will also require deeper recognition by government, labor
and management that unsound wage and price levels
cause

brought

highway

what started out to look

engineering and research development, prob¬
ably the most extensive program in its industry.
Of
$20 million invested for product development in the
past
decade, almost half or about $10 million is represented

car

in the minds

concern,

the

slow

fundamental

tracts awarded since then have been
G. S. Dively

is spent on

new-

8-million

and

June

decline

late

until

few

units

continues to be

is accelerated

can

year

financing

and price levels in the United

to receive

in sight.

are

fiscal

election

severe

Product

annual

Shipments of cement in the early part of 1959 and
continuing through July were at a greatly increased rate
over the previous year., Failure of Congress to
finance
the Interstate Highway Fund prior to the closing of
the

States compared with the rest of the

cars.

be expected to average

can

7.5, million
years

and

Presidential

DOBBINS

CRIS

1960. The company has doubled in size
during the past
five years, reaching $65 million annual sales. Two
pro¬
grams of major importance in this growth will continue

labor

Harris-Intertvpe's outlook also

there

industry
sale

few years,

„

President, Ideal Cement

wage

13%

some

assumes

steel

500,000 imported

undoubtedly be at an all-time high, both for the devel¬
opment of new products and ih its efforts to reduce costs
through improved processes.

total revenue of printers, publishers and broad¬
casters, it provided the basis for a good year in 1959 and
the coming year should be even better.

account

sustained

projected

can

r In
a
deeper sense, the threat of
greatly increased foreign competi¬
tion resulting from noncompetitive

total of Sf>.8

million.
be

single segment of in¬

stalment credit should rise
in

carry-over

tensions, "space" develop¬
and the usual unsettled at¬

mosphere of
year.

The

strong and successful future.

the

With

national

ments,

problem.

areas

1960.

prolong this prosperity are the exer¬
of restraint by businessmen in
keeping inventories in line, effective
government control over money rates
and credit, and good business plan¬
ning. Factors which may complicate
the picture are labor unrest, inter¬

coast.

assured

general business atmosphere seems

Important influences that could help

world

Atlantic

much longer absorb higher costs
partially compensate for them
of course, generalities. There wili
be exceptions with regard to individual companies
and
specific product lines.
*
•
The chemical industry's
research expenditures will
industry

better prices to

All these things are,

of production
delayed by the steel strike added to the generally high
level at the start of the year, new highs can be expected.
most

Gulf Railroads, in Georgia and
East

believe the

without

Corporation

President, Harris-Intertype

Thursday, January 21, 1960

cise

Commission approval.

area

and

favorable

for

gondola and hopper cars.

The

Chairman

DIVELY

GEORGE

from page 58

Financial Chronicle

equipment, printing plates and bindery products.
Acquisitions—Continuous exploration of further com¬

productive

will

pressures

some

of the country.
be greater in the

areas

probably

future

the

confidence

nation's

have

consumers

and

economy

their

It is

own

the
per¬

sonal prospects.

Recent

rises

brought
of

total

demand

can

often-repeated
by most

1957-58

recession.

pent-up

In
as

addition,

consumers

before production cut-backs

cars

the

expect

There

various complementary areas in the

pany,

the

nation's

leading producer of microwave test
Its purchase brings
Harri's-Intertype's elec¬
tronics business up to 20%? of total sales.

equipment.

coming decade is the

our

seemingly well-grounded forecasts
best-qualified economists and business

will

the

period

greatest

growth

history of the United States.

sary

assume

make

your

nomic
case

at its

By far the

above

average

for

housing,

must

years

age

are

somewhat

above

average for furniture.

obvious

-^onsumer instalment credit.
particular,

that

by sound

reared in

higher than
higher for the

such

mass

con¬

financing

Younger consumers, in
an

age of credit buying

}y.lthout vast

credit

half-cent
time

increases in

the amount

and wis-ely used instal™nt

regardless

thl records

used.

of CI

Ta?i?nt'-1Si

credit,

Cause for concern and

Flnancial Corporation

for the past

buvpr ic
^
conclusively that the average U
buyei.is always an
excellent credit

manager

influences

upset

activity
1959.

and

1960

prefer to

major

deter
as

that year

was

Leland I. Doan

have

the

industrial

can

move

the

range

continued

tions

the

short-term
in the

overall

effects

population

the

and

economy which

some

bound

are

plants and

some

have

companies

FREDERICK G.

belief

Competition will continue to be keen but I think we
might see a modest rise in the index of chemical
prices.
Chemical prices have been
declining for three years in
the face of
continually rising costs. This obviously is a
I

not

that

1960
will
be
a
good year for
The country can look forward to a
record output of goods and
services provided unneces¬
sarily prolonged and widespread strikes are avoided.
my

generally.

In the automobile
industry, avail¬
ability of steel will be the limiting

factor

to come.

production for

some

time

Later in

the year, the
will depend on market demand.

believe

demand

will

ployment and income

build-up during 1959 and

indefinitely, and

DONNER"

Chairman, General Motors Corporation

The chemi¬

these

industry.

and down in short swings

conditions prevail we will be
approaching
capacity in some lines, and I would, therefore, expect to
see more capital
spending than during the past two years
—although not as much as in the peak year of 1957.

increase

increasing demands
for
housing,
schools,
hospitals, shopping centers, roads
and
streets, etc.
should continue to provide
gradually increasing markets
for cement.
Meantime, there are certain to be fluctua¬

continue

rate
We

brisk.

can

expected

With

business

rise.

Em¬

and consumer confidence
maintained,

this

industry's

cannot

attendant

business

diversification and the fact that its products are essential
to all other major industries.
In general, the health of
the chemical
industry is inclined to be somewhat more
vigorous than that of the overall economy.

which

con¬

plants;

building ready mixed
and concrete products
plants; and companies
in
other
lines
of
building materials adding cement
production to their activities. Thus, for the first time
on a
significant scale, the cement industry as a wholly
separate entity seems to be undergoing a
change, the
effects of which could be
quite far-reaching.
While immediate prospects are somewhat clouded be¬
cause
of the
uncertainty of the steel settlement, long

it is therefore free to follow its normal
pattern, which is
for chemical production to rise more
sharply than pro¬
duction generally. This occurs because of the

trend

cement

avoid major work

through the second half.

appreciable inventory

ready mixed

concrete

cal industry should make substantially greater gains than the economy as a whole. There
was

building

It has

instances

recent

buying or
companies buying

all-time high
then, after the beginning

steel

been

companies

cement

eco¬

stop¬
pages I believe industrial production
will climb
gradually to new highs
through at least the first half of the
year, then perhaps level off or tend

If instalment
inctl we?

ac¬

crete

dwin¬

durable

automobiles, 36%

supported

having been

the

what

can

strike, gradually

under

even

major appliances and 75%
With these facts, it is
sumption

other

neces¬

you

somewhat

apparent. I
there will be

that

always

course,

dled until the mills
reopened.
since been recovering.

age bracket.

highest.

ExDenditures of couples
27 %

and

arid

production reached

being in the ''age of acquisition"—
age (or soon to be) when
demand

Co.

are

in June and

family-forming

automobiles, houses, appliances

goods

trends

influences

we will have fewer
than 36 million
persons
that bracket but
by 1970, this group will have
grown
by 50% to more than 50 million. This is
the group that
can be described
as

the

inclination

assume

own

And,

it is

pessimistically

tremendous

Next year

assumptions.

optimistically

cording to

demand for goods and services.
rapid increase will be in the 15 to 29

Chemical

InTorecasting the fortunes of business

additional

for

DOAN

President, The Dow

population will reach 180 million in 1960 and
during the next 10 years, population gain will
equal
the nation's total
population just 100 years ago.
Consumer expenditures will rise
just from sheer in¬
crease
in
population but sharp
changes in the age
groupings within the population will add
most

indication of the kind

the

printing equipment

supply field, and the electronics field with emphasis
communications equipment and instrumentation. The
sixth acquisition since 1953 came in December
with pur¬
chase of Polytechnic Research and
Development Com¬

LELAND
an

the

and

that

leaders

new

by the end

accelerated

longer look ahead,

growth

billion

which

pany purchases will be pursued. Fields of interest include

brought about by the steel strike.

Taking
of

the

credit,

spurt in auto sales in October

sought to acquire
were

$38.4

somewhat

were

following

was

instalment

consumer

outstandings to

October,

there

and

industry this year than for some years past.
Perhaps one of the most significant developments in
cement industry recently is
the tendency toward
amalgamation of allied lines with cement production.

indication

will

-X

•

jjji
Mm

BMp

mmm.

Frederic G. Donner

also

Competition

b.e

true
our

of spending.
industry will

more intense than ever. Introducof
new
smaller American

tion

cars

has

brought

added
interest
The potential
unusually wide
makes, including a variety
•

into the market place.

car

buyer

choice of

has

of imports.
More new models are
wide range of attractive
styles and designs,
prices generally are unchanged from 1959.
In addition to
expanding consumer demand for pas¬
senger cars, a growing market for trucks is
anticipated.

offered

while

Continued

page

Number 5918

191

Volume

. . .

feel

carefully watched
*■,hv'V•"/-;V;:
C

52 countries analyzed,;
exports will be up for 38

the

Of
S

interest

let

people, whether
normally employed

remember,

or young

that

people,

are

work!

among

added

might deprive
"We

lack

employers in participating in a
program. And there has been
cooperation from labor unions, some of which

little

Highly controversial
issue regarding American invest-^
ment will not alter steady capital
inflow but purchases from. U. S. .
..v..?if:s-?Suihmary

business,

people

youth-employment

oetitive.

by' Ottawa.

old

to do useful

"The placement agencies have encountered

Continued from page 59
called "hot money" will be re¬
patriated due to climbing interest ,
rites in U. S. and Europe.
Irade
deficit should improve as Domin¬
ion
exports become more com-

and Workers

Prospects for
Foreign Trade
Profits in 1960

will

(313)

The Commercial and Financial Chronicle

offices

firms and
business men
personnel
policies and operations in order to encourage a sub¬
stantial increase in: the employment of younger
people.
•
;
•;
...
■;
;■ '■

engage
Mr.

maintain

and

Co.

offices

Laramie

the

C.
J.

Street,

Inc.

Midwest

1d.

Mason, Garlington

ducting

offices

securities business from
3272 Peachtree Road,

North East.

Lawrence Mason is a

principal of the firm.

Greenberg.

sharply.
certain

exceed

the

M *** *

record-<-and

OHIO

American : foreign

will realize substan¬
tially better profits m 1960.•

trader surely

address

*An

the

aPEAKE

Mr. Diamond before
Trade
Association,

I960.

Texas, Jan. 4,

Houston,

World

Houston

reaching new

economy

the

peaks,

segments; of

all

practically
U.

$510 -billion—

6% from the 1959

with

4,19®°

product

national

gross

January

With

AND

pah-WAV

Martinelli, Hindley

Form

Co., Inc. is
securities business

JVTartinelli, Hindley &
engaging in

offices

from

i960

Street,

Wall

New York City.

Vincent Martinelli

principal of the firm.

Forms RMC Associates
Carlisle
ties

engaging

business

offices

from

Bloomfield

Avenue

firm

name

M.
securi¬

N. J.—Richard

MONTCLAIR,

460

the

under

Investment

RMC

Associates.

Barth Opens New Branch
SAN

.JOSE, Calif.

Barth

—

Creek

Road,

the

under

business

the

Hamershlag, Borg Admit
in

Street,

members

Borg
New

the

Stock

York

Landsberg Partner
partner

Corcoran

has

become

Landsberg and Com¬
pany, 123 Greenwich Street, New
York City, members of the Ameri¬
can

revenues

produced

the steel strike. Revenues

Exchange.

James A.

day of '60

threshold of its 175th anniversary, ended the year

long history. Working

excellent first half-year and held up well despite
$10 million and nonexport coal traffic showed a similar $10 million increase. C&O progress also was
marked by eighty new industrial plants locating along its 5,100-mile system.
With the favorable general business predictions for '60, a year of uninterrupted
industrial activity would mean C&O revenues and earnings greater than 1959.
Freight

York

New

the first

stronger,

Co., 25
City,'

financially and physically, than at any time in its
capital rose above $60 million, highest level ever.

Stachelberg has been
to
limited
partnership

Hamershlag,

Broad

highlights below.

Chesapeake and Ohio, on the

admitted

Again Chessie starts the New Year by sending to its 90,000 shareowners on the
first working day of 1960 the results of the previous year's operations, shown in

manage¬

ment of James E. Ryan.

Charles

its way

Co. has opened a branch office at
Town & Country Village, Stevens

from merchandise freight increased

Stock Exchange.
1959

1958

$4.00

5.60

Weintraub Associates

6.36

FOREST

HILLS, N. Y. — Carl
Weintraub has formed Carl Wein¬

Dividend Paid per Common Share

traub

Earned per Common

Associates, Inc. with offices
Continental

gage

Avenue

securities

highlights

Oppenheimer
Oppenheimer

Co. Names

York
Harold Nelkin

director

their

institutional research department.

Joins Marshall Associates

become

111.—Daniel' E. Boone
affiliated

with

For a copy

of Chessie's

$162

write

$177

161

151

348

356

302

304

NET INCOME

$46

$52

Working Capital at Year End

$61

$55

Total Operating

Revenues

Expenses, Taxes, etc.

—

......

Net

Railway
3800 Terminal

Mar-

} ^ Associates, Inc., 75 East

Wacker Drive.

1959 Flash Annual Report,

Chesapeake and Ohio

■

(millions)

Coal and Coke

Other

(Specinl to The Financial Chronicle)

CHICAGO,

Operating Revenues
Merchandise

Co., 25 Broad St.,
City, has appointed

New

en¬

business.

Tower,

Cleveland 1, Ohio

of
the
Stock

ATLANTA, Ga.—Mason, Garling¬
ton and Wilcox Company is con¬

and down
crease

110 South

members

and

LeRoy

Exchanges.

Building,

Boston

ment of Gerald M.

for 14. The greatest in¬
America's overseas ship¬
ments
will
be in agricultural
products, cotton, foodstuffs and
vegetable oils, followed by air¬
craft, petroleum, scientific instru¬
ments, vehicles, textiles and capi¬
tal
equipment.
On the import
side, the slight increase in U. S.
purchases from abroad will be
represented chiefly by • vehicles,
textiles, apparel,
raw
materials
and coffee, with the last two up
because
of higher prices rather
than volume of sales. Lumber im¬
ports
are
expected
to
drop

Dain & Co.,
York

New

Denver, Colo., under the manage¬

Commerce.

Sixth

—

the staff

joined

has

Kopp

Buf¬

Cody,

branch

Chronicle)

MINNEAPOLIS, Minn.

will

Investment

Sheridan, Wyo., as well

branclr

was

'Cheyenne,

falo,

Central,

•

.^Special to The Financial

Herbert

securities business.
formerly local
for Allen Investment Co.

Taylor

employ ment • is to be meaningful as a delin¬
quency deterrent, it will be necessary to make
summer
employment and part-time employment for
youth much more generally available than is now

North

150

Taylor

manager

"If

Chamber of

—

Taylor has formed Taylor Invest¬
ment Co. of Wyoming, Inc., with

urge that business
review and revise their

York

Wyo.

CASPER,

emphasis on youth employment
union member of a job,

specifically

-the case."—New

Joins J. M. Dain

Taylor In v. of Wyo.

The Commercial and. Financial Chronicle

(314)

Continued

window cleaning products benefit from

from page 60

1960

that

the

sales

States

United

Our

forecast

may

well total in the area of 7,000,000 cars, including
imports, plus 1,000,000 trucks.
This total of

would

units

8,000,000

than in

represent more new
year except 1955.

enthusiastic

acceptance

While it

the public.

from

continue to be the choice of the majority.

utilize

materials, and
Our

GUILFORD DUDLEY,

•

be said

three

about

emerge

expected

continue

First

Nevertheless, the industry holds

backlog

commercial
that the year

of military and
promises

will be both stable and

active.
If the nature of 1960

activity could
be summarized
in one word, that
word would probably be "competi¬
The trend in defense orders is

ended
D. W.

Douglas, Jr.

increasing complexity, thus bringing into the
field additional companies not closely identi¬
fied with aircraft in the past.
Assuming that the defense budget will not deviate
greatly from $41 billion, it becomes apparent that
fall

major international upheaval.

Indications

are

that

1960

will

see

stepped-up

importance to national security but it is difficult

to calculate their effect

the aerospace industrial econ¬

omy during any given calendar year, as many—perhaps
most—extend through longer ranges than the current
12-month.

The

delivery

accelerated

for

rate

during

commercial

1960,

and

aircraft

because

there

will

has

ing,

write-off of development
costs, it may be
expected that the year-end balance sheets of those pro¬
ducing turbine-powered transports will show improve¬
ment.

-M,fc.

The

trend

toward

sophisticated rocket-powered
vehicles will probably bring with it a gradual decrease
in aerospace employment,
following the requirements for
higher skills but fewer people. The employment census
more

could also be effected
cut back

governmental decision to

any

stretch out existing programs.
Further and serious competition
may be
both domestic and foreign
or

expected for
markets, stemming from the

vigorous efforts of
consolidate the

manufacturers to hold

overseas

and

the

new

jets may

acceptance

soon

the

the assembly

lines.

■

Barring international complications, we_may expect a
period of good vitality during 1960, steady growth in the
national production of missiles and
space-age vehicles,
and additional expansion of the
jet transport market.
ROGER

DRACKETT

President, The Drackett Company Y
Sales of

our

Sept. 30,
those
are

the

based

in the current fiscal year ending

company

1960

are

expected

preceding fiscal
our

about

12V2%

These

year.

above

expectations

belief that the year ahead will be
of

general,

steady

increases

one

the

American
of

settlement
of
perplexing
problems in industry
generally that
marked the start of 1960.
presumes

Dollar

quarter
be

volume
ended

about

period

Between

Dec.

15%

31,

ahead

the

first

our

1959,

the

fiscal

will
year.

two
periods
the
company's
sales
of
all
consumer
products increased both in dollar and

unit

volume,

well

as
in
total
share of their
respective markets.

Population growth,
innovation,
Roger Drackett
and
diversification
three factors
favorably influencing the national
economy—are expanding our markets.
Every rise and
—

shift

drain

population stimulates

new

home

demand.

Our

cleaning, toilet bowl cleaning, metal
polishing, and

the

were

share.

common

converted

into

of course,
to rise

stock

the

fiscal

bank loans.

ended

year

'
reached

Sept.

30,

1959

ever

concerned.-

are

.>■'

•

Research and

development expenditures therefore, will
be more in 1960 than in
1959, when they' were up 85%
over fiscal 1958.
Materially improved formulas of two
products were put on the market during 1959. We hope
to market test several new
products this year.
: '
Plastic

products

the

particularly by metal strikes.
the Calmer Division

and

the

: not

helped
Rather operations of both

company

were

Maclin

Company benefited
from the improvement of
many industries that buy their
products. Although we added new plastic products, as
part

new

continuing development program, nothing
startling nature was marketed in 1959.' Both

our
a

Maclin,
and

maker of thermo-plastic molding
compounds,
Calmar, producer of plastie sprayers and dispensers,

operated at record high levels in 1959.

Additional space

adjoining the Los Angeles plant was leased to provide
enlarged facilities to improve both production and re¬
in

the

plastic

continue to grow

division, whose sales

despite

severe

and

profits

/■"''' " V V"'

ance

assets

increase

the

preceding year.
Our sales force was
substantially again in 1959, following a 26%
expansion during the previous year;
therefore, we look
for only a normal
selling staff expansion in 1960. Since

enlarged

the

have leveled off to

volume

little from any

sales

week

handled

advertising

any

one

program,

quarter varies

other quarter.

fiscal year we completed the East
Stroudsburg, Pa. plant,
whose operations are better than
expected, and finished
the
Toronto, Ontario plant which opened late last
autumn.
overseas

plants

are

planned

fiscal

Drackett

1960. Although none of the production
Toronto plant is going outside of
a

result of

Canada,

our

during

from

the

are,

Dominion plant, in a better position
shipments if and when we feel the
opportunity presents itself.
to

make

new

overseas

Decentralization,
ing
to

of the San Leandro, Calif,
receive

cause

initiated with the open¬
plant in 1953, continues

careful
are

company study and application be¬
constantly mindful of the ever-increasing

transportation costs
centralization
in

policy

finished

our

may

mean

products.

This de¬

additional

facilities

1960.

Acquisitions and mergers always are
being considered
being the basic philosophy of the
company. We
are
always studying companies whose
products

our

manufacturing and selling patterns.
financing is contemplated t<^ restore our cash

funds, which

are

down

extent

vw M ■' lis*

-•'rV

'-M 1

•

"'M" '

*..

■<'

•

of recent years and that

will

are

market

our

place.'- Let's

r
*

take

quick

look at the
population is at

Our

of this market.

remarkable nature

all-time

high and growing steadily with about four
each year. - Life expectancy for today's
is approximately 70 years, a record in
itself. This means simply that there will be more people
needing more products and services, occupying more
homes, and living longer and longer with the constant
improvements in health care and medical science.
Another plus side on the economic outlook, of course,
is the fact that employment is at an all-time high and in
most instances wages and salaries have steadily increased,
resulting in consumer income being at an all-time high
an

million

births

child

■new-born

also.

The

only soft spot in the

unsettled

nature

minus effect

well

the world's

the

plus

M.x'-/;'-.'--'

economy,

steel

strike

which

will

the entire nation's
way or another. >
v

upon

one

course,

the

have

economy as
,

the

December, 1959 issue of Dun & Bradstreet's
publication, "Dun's Review in Modern Industry," the
following statement was made, "By 1970, today's rosiest
forecasts will look like short-sighted pessimism if all
American business can follow the pattern projected for
their companies by the top industrial leaders who make
up the President's Panel of Dun's Review.
These men
expect on the average to increase their sales 75% by
1970, profits will rise even higher,'the immediate predic¬
tion is for 100% gain in the next ten years."
All I can say is, if these experts are right, and I hope
they are, we will get our share of it.
J.

RUSSELL

DUNCAN

President, Minneapolis-Moline Company
The year 1960 heralds

promises to be

one

satisfying periods
agriculture and the

the start of

decade which

new

of the most exciting, productive and
in man's history. Business, industry,
in the street all have their hope¬

man

ful sights on these years. The decade,

however, promises to be less than
rewarding for one part of the popu¬
something is done quickly to put him
in the proper perspective in the eyes
of the public.
The farmer too long
has been made the whipping
a

combined

result

will

new

reserve

higher

boy for
ills, including

number of economic

so-called

high food

prices.

As President of a manufacturer of
farm machinery, I call upon all oth¬
ers
in our
industry, manufacturers,
distributors, dealers alike, to get be¬
hind a hard-hitting educational
pro¬

gram

designed to acquaint the public

with

the

economic

they

apply
importance

the

facts

farmer,

life

J. Russell Duncan

and-his

to the well-being not
States, but of the entire world.

only

United

the

I recommend that individual
state secretaries of retail

farm equipment dealer associations
spearhead the educa¬
tional program which will
open the eyes of the public
to the farmer's
importance.
Here
*

are

some

the facts

that should be put across:

In 1958, only 11.1 billion
man-hours

produce

crops

with

pares

—that

fit into

•

some

lation—the American farmer—unless

Expanded
production, necessary to meet enlarged
sales, can be handled with our present plant
capacity,,
though we are adding production lines to certain
plants
to produce more
economically. Expenditures for plant
equipment and machinery in 1959 totaled
$1,076,428
against $736,349 in 1958.
We expect to
spend
about
$700,000 on plants and equipment in 1960. In the last

than tripled.
be offset to

competition.

Our 1960 advertising budget calls for a 10%
in appropriations.
This follows a substantial
in

can

durfng the year,
••
-K •>'.> MM
probably more fortunate than most industries

year.

increase

high marks of increase in assets of the life insur¬
industry as well as increase in earnings- on these

Advertising, promotional, and selling activities on
specialty products will be expanded during

this

However,
industry

the tight money market causing interest-rates
companies as well as to

the ever-upward pattern

($4,225,282) excluding .the plant peak reached during;
soybean development. What is past, however, is pro¬
logue to the present and future, two periods with which
managements

the

see new

p.m.

Considering all these factors, however, I feel that the
gain in life insurance in force during 1960 will follow

1960,

until 3:00

segment

has been helpful to life

)*j ^ XllCS r

market

common

this and the mutuals

by increased earnings on assets and,

price of Drackett
.shares exceeded the call price of the preferred.

the; tab for most of the
budgetary requirements of

This

Guilford Dudley* Jr.

Net in the quarter

are

companies

happy about the bill. Those compa-*
nies
making the greatest progress
were
penalized the most and in the
case of our own company, the taxes

income per share ($2.76), and gross plant and
equipment

same

these

particularly
stock

The

relativelyMight.

off

got

high levels in sales, net earnings, dividend pay¬
ments on common stock
($831,938), earnings retained
($965,991), net working capital ($5,914,380), taxes on

economy rather than one
boom
nature.
This forecast

cents

was

time

neither

household

travelling public of the jet transports augurs well for the
receipt of additional orders by the plane-makers and the
steady increase in air freight tonnage suggests that
cargo
versions

1958

first

bonds, and

■An

gains which they have made, especially

in the production of power
plants.
The immediate and
enthusiastic

and

great one insofar as

the Treasury on

ahead

record

been

substantial

31,

the

increased

progress

in scientific probes of space, which dictates increase in
research and development programs. These are of
para¬
mount

picked

rate. /M;:-

Feb. 10, 1960. Thereafter, Drackett for the first year
:rce its incorporation will have no preferred outstand¬

many

greater part of the industry will be
engaged in the production of defense items and allied
equipment, any 1960 prediction must assume that there
will be

1960

booms

companies

concerned.

year,

15,

but can

the

higher

will

stock

fact, so many preferred shares were converted that
be company decided to call the preferred outstanding. It
will be redeemed at $26.75 a share on Feb.:

their established

upon

nation

the

ings

ability to fulfill defense contracts to the satisfaction of
the using services. .•
0;AV;:'
Inasmuch

omn.on

;

devices of

rise

somewhat

corporate

having

basis—during this period.

Dec.

for

1959

aerospace

must

44 .year

fiscal

for share

moving steadily to vehicles requiring
for their reliable operation electronic

manufacturers

its

year

sales

Dunaway acquisition costs.'
Earnings per share in the first fiscal quarter will
range between 60 and 70 cents a share depending on
the number of preferred shares converted—on a share

'"5-,/ '

tion."

economy

quarter profits at the start of December
appeared to be running about 12-15% ahead of the like
1959 period.
At that time we had non-recurring ex¬
penses, such as the almost entire absortion of the Judson

which

orders

risen

last

Net

international developments, are estimated at 10%
'of fiscal 1959;""y
MM.■;

foreseeable future.

substantial

the

from present indi¬
cations .and barring unforeseen unfavorable national or

into the

well

The company

Profits for the current fiscal

years

may

Company of Tennessee

benefited from

doubtedly get its share of the growth. The impact of the
recently-enacted Federal Tax Bill on
life companies for the year 1959 and
retroactive on the year 1958's earn¬

early

volume.

have

pattern of transition which

is still very evident and

also

years

performances.

highest sales

our

the requirements placed upon the industry designers and
manufacturers.

ago,

the

have

through the "Soaring Sixties" as predicted by practically
all the economists, the life insurance industry will un¬

the

ing 1960 must be tempered with prudence, owing in large
to the swiftly changing and evolving nature of

began

confidence about

the past

recession

measure

may

markets.

JR.

& Casualty Insurance

history, the
little or no effect on
1935 were $1,432,400 against
fiscal 1959 sales of $28,399,758; and net profits were
$105,171 and $2,334,407 respectively in the two periods.
The 1959 figures reflect sales of the Judson Dunaway
Corporation, acquired Oct. 31, 1958. Sales in 1959 were
about twenty times what they were in 1935, and profits

DOUGLAS, JR.

Predictions for the aircraft and aerospace industries dur¬

the

varied resources of skills,

our

ahead perhaps stems
in 1959 had

from

President, Douglas Aircraft Co.

Generally speaking, it

efficiently

restored

a proper

President, Life

the broad national economic trends.

that

of long term

relationship between dividends and
earnings retained in the business.
;
,

and

plants and equipment, and the payment
loans.
The cash reserve funds should be
maintaining

research

is still too early to determine the extent of the demand
for smaller cars, we are confident that larger cars will

DONALD

inventories—required to
business—outlays for

volume

increased

new

development expenditures approxi¬
mating S10 billion annually—almost four times those of
1950—numerous new and improved products are creating
new business and employment opportunities.
Like many
companies we have diversified our products and services

and

cars

handle

larger

receivable and

accounts

the total increase

dwellings, however, have a larger

new

With

General Motors' 1960 lines of cars and trucks have

All
won

any

Most

percentage of glass than homes built a generation ago,
a
factor in larger sales of window cleaning products.

500,000

trucks sold

homes.

Thursday, January 21, 1960

and

livestock,

billion

record

recently

billion in 1920.
.

•

The

com¬

1950, and with 34

currently produce four times
during World War I.- *
1

as
-

productivity rate in livestock production has

about doubled
.

spent to

This

Farm field hands

much per man-hour
*

were

low.

over

Today's farm

the

same

period.

worker1 grows

enough

food,

fibre,

Number 5918

Volume 191

The Commercial and Financial Chronicle

...

(315)

tobacco to supply himself and 23 others; the Civil
farmer supported only four others.
Summing it up, I maintain that the American farmer
has contributed in an outstanding way to holding the
line against inflation at every turn, and that the Ameri¬
can public should be told as strongly as possible about

and

War

contribution.

this

EDWARD

DWYER

president, The Electric Storage Battery Company

1959 was a good period for the battery indusThe rapid recovery of business from the 1958 re-,
cession to new highs in industrial activity and personal
income created a favorable business climate, which even
the long steel strike did not seriously
The year

try.

batteries

Since

areas

serve

many

business and

modern

our

personal life, the industry has benerecord peacetime demand.
Moreover, it appears highly probable that over-all sales: of all types
of batteries
will continue to grow
during 1960, even though sorne segments
of
the
market may show

fited from

experienced improved

tery Company

virtually all its product lines

sales in

corrosion

and

sunglasses

flashlights,
equipment,

batteries
for
radios, toys, etc., safety
dry

—

JflHn'h

Storage Bat-

1959

■

||r

jJ■VjB

decreases.
the Electric

modest

resistant

cements, as well as storage batteries for motor vehicles
and myriad industrial and military applications,
L,coxing ahead, we anticipate that ou^sales volume will con-.tinue to increase as our economy expands.
While

changes

different effects

the oyer-all economy will have
several markets served by our

the

product lines generally appear to have grad¬
growth characteristics. New products and technical
improvements in industrial and consumer equipment
using packaged power should broaden the possible appli¬
cations for all types of batteries.
industry,
ual

Like other industries, the battery industry is facingincreasing competition from foreign goods.
To offset;
this competition and,
at the same time, to take ad-,
vantage of the growing foreign markets, our industry is

stepping

its export and foreign manufacturing opera¬
convinced that by building superior qual¬
ity and longer life into our products we can compete
successfully in foreign countries, despite unfavorable
price differentials.
up

tions. We

are

In summary, we believe that the battery industry will
experience further growth this year. Speaking for our

Ship and

company, we anticipate continued improvement in most

segments of
tion in

1960,

sales, our profits and our participa¬
various markets we serve.
Looking beyond
believe intensified and broadened research pro¬
our

Travel

the

will

grams

business in 1960, and we believe we will

our

agaih increase

result

tinuing growth.

profitable

;

HON.

products and

new

con¬

Santa Fe

i,'

ALLEN

ELLENDER

U. S. Senator From Louisiana

Without
our

doubt the

darkest cloud

economic horizon is the threat of

Longest railroad

presently visible on
a continued upward

in the U. S. A.

spiral in the cost of living, a development which I fear
be further aggravated
by the recently announced
settlement of the steel strike.
The

will

reached

settlement

finally

"soft"

...

ill-designed to halt the

one,

was

always

the

move

constant devaluation of our currency,

toward

and the slow but steady rise in tbe

would

like to

see

both manage-

better

mment and labor join together to sta-

mkbilize

plif j;

jNjMjjjg

wages

way!

prices voluntarily,

and

and, if possible, to actually make a
start

rolling back the cost of liv-

011

l00king towards the time when
our

|i/|i

economy

our currency

■HP

strikes

should

Allen J. Ellender

can

be stabilized

and

placed again on a sound
me

•

exerted

that every effort
to convince these

two major segments of our economy
of the need for such
action, for, unless inflation is stopped
through voluntary effort, there will almost certainly be
a hue
and cry raised for the imposition of government-

policed wage and price controls.
In

violence

judgment, this
being done to

system, under which
and
In

extreme could result in great
traditional free enterprise

our

the United States has grown

strong

prosperous.
the

field

agriculture, where the

United States,

unlike most of the other nations of the world, has been
blessed with overabundance, I foresee no major legisla¬
tion

by the Congress, with one exception,

namely, wheat.

that ways and means be formulated
drastic overproduction, in this commodity,

II is imperative
to
L

reduce the

before,

as a result of its own impetus, wheat
drags down all of American agriculture.

this

production

primary roadblock in the way of
is the growing mis¬
understanding which divides farmers and consumers—a
Misunderstanding based primarily on a lack of apprecia¬

achieving

tion

regard, the

For service,

remedial wheat legislation

the

unfortunate, but too

difficulties

inherent in

farming.

American consumers
believe that the American farmer, alone, among all other
segments of our economy, is getting an outright dole

many

Continued on page 64

New York

call

write:

Freight Office: 233 Broadway; Phone: DIgby 9-1100

New York Passenger

Office: 500 Fffth Ave.; Phone: Pennsylvania 6-4400

Continued from
the

from

This is not

being constructed

page

Federal

receive similar

Government—that

other segments

help.

so.

million

past, in my judgment
the American farmer would be more than willing to put
an end to Federal support, if
only others would be will¬
ing to do likewise. Farmers ask for no quarters if all
segments of industry are to be treated similarly.
In any event, with the sole exception of agriculture,
1960 should see further expansion of the American econ¬
omy. I can only hope that this growth will be real—and
that it will not be impaired by the pressures of a growing
inflation.

•

Connecticut, to the surprise of many who were ready to
write New England off the books, is in the forefront of
growing states. In terms of personal income, recent fig¬
indicate that the per capita income in Connecticut

highest in the nation, and that
average family income is over $7,000,

the

been

ahead of the

na¬

Connecticut

war,

scene

has

remarkable

in¬

controlled"

growth, with expansion of
existing firms keeping pace with the
steady
influx
of
new
industries.
1950

will

the

expansion

area

decade

past

phenomenal in the next five

but

has

will

far

100 years as a

enough to believe that Connecticut will maintain

reason

popula¬

tion,

accounting_ for 35% of all retail sales.
manufacturing

within

250

miles

firms

from

offers

sumer

the

34% of all

and

market

are
located
Connecticut itself

for

all

kinds

con¬

products, and the nearness of other
emphasized by the rapid perfection of

areas

active

air, rail, and highway networks.

Companies coming to
18,000 competent suppliers of in¬
and materials ready to serve
them, and

Connecticut find
dustrial

parts
interested and

groups

eager

finding the best possible plant

space

assist

them

location.

The loss of certain traditional
industries—which
thought was evidence of industrial decay—has

nothing

than

necticut

five

The

precision parts, plastics, electronic
components—produc¬
products that are high in value but low in
weight,
reducing < transportation and material costs,
serving
a great
variety of customers and diversified markets.
Our

lack

and

natural

fuels—coal

and

oil—may

soon

meaningless by virtue of the work being done
Windsor, Connecticut by Combustion
Engineering,
and by many others who are
developing nuclear and

uct

tive

power.

Our large force of skilled

and

inven¬

labor

adapts easily and imaginatively to the new
techniques required of them. Our pleasant
living standards, in the attractive
setting of Connecticut's
skills

and

hills and lakes and shore
areas,

bring us—-and keep

people needed to staff and manage
Connecticut

our new

the
industries.

and

marked

our

company

will

take

early sixties.

New

projects, including

ROBERT

largest

company's history.
During the next five

•

years
the
company
will
reach
one
quarter
billion dollars invested in
facilities
to serve Southern
New Jersey. This
will
be
five
times
the

plant
The

that

B. L.

trial,

commercial

and

definitely

Perhaps^

777,777: v.7.7.

are

the

presently

numbers
will
the

ap¬

will probably not in¬
quite that much. This is based

7.7...,,:777.

market, but are increasing and soon
50% of the total market. Industrial share
40

that

mean

trie industrial
of

and

45%

and

will

only

drop

being

in share

in the

field.

not

units

there

will

reduction

entertainment field.

purchased

Actually

fields
increase, the change being only in relative share of
by

users

market)

Electronics
new

and

7/J

military purchases represented about

between

does

use

devices
general

hence silicon

total

will represent

the military,

field.

In the past year,

35%

and

greater demand in this field than in the

industrial

This

merchandise

feet

the

facts

will

developments

continue

the

these

I .7

marked

"7'7/7

exciting
and semi-

decade,
conductors will be important components in each new
device.
■'" 7
'
over

FIELDS

President, The Cincinnati Gas & Electric Co.

growth.

are

few

ERNEST

continuing

many more millions of
this country than there were

years

greatest

Currently,

ago.

population

increase

Keeping

pace

with the continued growth of the Greater

Cincinnati area, The Cincinnati Gas & Electric Company
will spend $93,000,000 during 1960 and 1961 on expan¬
sion. This is

in addition

the

for completion

in
age
groups
which
consistently buy more shoes than

the

as, a whole.
This
factor—the big' increase in

number

adult
rection

of increased

number
will

increase 28%.

number
the

persons

of persons

five

shoe

years—or

customers,

customers —leads

some

Station

nearly 4% a
buy more

will

increase

year.

who

pairs

These
per

19%

the

are

good

year

than

was

excess of retail

sales.

This

was

larger than

filled, and

production.
1960

The

production

pipe lines have
will

necessarily

now

been

funds

for

completion in

1962, and for relocation
to

clear

and

areas

the

for

highways

pro¬

grams.'.The remainder will be

spent

other

plant and equipment in¬
cluding facilities to serve additional
requirements
of
residential,
com¬
Ernest S. Fields

due

geared

facilities

well be that shoe production in

chiefly to inventory deficiencies at the
beginning of the
year—arising from the fact that retail sales in 1958 were

scheduled

Fall

expressways

is over and above the
number of children under 15.

1960 will in¬
less than shoe sales at retail.
vThere
indication that 1959's
large production (greatest

these

by October,

new
250>000 kilowatt unit at
Walter-C. Beckjord Generating

aged 20 to 24

somewhat

.history)

new

the

United

will
1960,
172,00Q7kilowatt..-.unit at
Fort Generating Station,

part

Miami

In the next five years the
States aged 15 to 19
(A 5% increase in I960
alone!) The
the

older age groups—and all of this

may

large

for

young
the di¬

the

teen-age and

pairage,

continuing increase in the
It

A-

population

special

1959.

$31,000,000 spent

than

occurring

Robert C. Erb

communication equipment, as
accuracy is so important.
requirements are of increasing impor¬

especially in

tance,

entertainment

sales

and

computers, where

the very satisfactory rate of
spending for footwear in the last few

crease

projects

diodes.

in the.tunnel diode is the low'

upon

based^TfcoSion'of TubLjndusresidential

ERB

general

parel

1947.

trend

growth,
development and improvement in
Southern
New
Jersey should ac-

England

This forecast is

present

business

increase—despite the prospect

crease

company's

investment

over-all

limit, and look for

plans,

the

5% to 7% increase in total national
product, and a 3%
to 6% increase in total retail sales. For
footwear alone,
we are inclined to
accept the upper

new

This represents
construction program in

diodes and tunnel

navigation
in

Environmental

generally accepted forecast for 1960 appears to be

There

the next five years.

Faegre

generating station in the eastern section
of its territory,
the completion of
an
accounting and
data
processing center near Atlantic
.City and other general construction

the

population

totaling $119 million have
been budgeted
by the company for

well
Robert

President, Melville Shoe Corp.

during
a

mesa

slightly, with the real reduction

only

company construction

result of

airborne

also

months

form

..•7'v/77 77:77>7;

speed-up in growth in 1960 will come about

tory because of the increasing use of semiconductors in

seen

manufacturing

Emphasis
throughout
industry
is
on
stability
in
operation and reliability of components. This is manda¬

three principal prod¬
contribute a solid "assist"

improvement

for

growth

germanium,7 but
techniques and 'the

noise characteristics it embodies.:

com¬

facilities

than

7.7' ; 777' 7' 77-> f/"

Part of the

favorable outlook for its

Chairman, Atlantic City Electric
Company

era

new

costly

the':greatest advantage

construction.

industrial

BAYARD L. ENGLAND

new

still

advancements

prices.

be off as
this loss will

industrial

ready for the future, and our growth
and progress will be aided
by wise and careful business
leadership, leadership that has given Connecticut
a rich
past, a dynamic present, and a
promising future.

Board

the major share
market, but growth of silicon types will be greater
in the years immediately ahead. Each has special char¬
acteristics which will keep both types alive for years
to come.
7:7, 77.77 7'7777>7V:''7I777;
of the

than made up by'
residential additions

population

activity.

The

greatest utilization.

types continue to enjoy

expansion of markets is expected to bring about lower

may

year,

chemical

$750 million and pass the $1 billion mark in
Major markets will continue to be industrial
military, with computers and data processors ac¬

Silicon

products.

divisions, Mando aims to
the

that in five years sales will total

now

years.

Germanium

to stronger demand in 1960
poles, timbers and the preservative treating services
supplied by the company's National Pole and Treating
division.
;7 ; 77'' 7 7:7_

exploding new markets.

is estimated

counting for the

and

expansion of suburban

and

as well as in the home enter¬
result, the semiconductor industry

field,
As

tainment field.

and

points

With

electronics

trial

and

for

thus

become

reaching effects in the military, medical and indus¬

far

over

rapid

support

ing

alterations

change and shift which gives Con¬
many

building

higher rates of
and

becoming increasingly important and having

group, are

insulating,

acoustical

6%this

doubtless

mercial

firms—doing research, making

structural,

and

home
as

centers

smaller

decorative

some

role in the nation's
economy. The build¬
some old mill now houses as

new

rials_ line

much

Herman Fialkov

thereby replacing the delicate
and costly hand work now involved.
Semiconductors,
both in the transistor group and the diode and rectifier f ^ l\

nearly

also anticipated for the
Insulite building mate-

are

company's

While

speeding
produc¬

are

mechanizing

into

will have

printing and
converting
-V7 7.. 7>77 ^'7.7

papers.

Gains

the

for

tion,

high in sales volume during 1960.
the upswing in general business activity
rising trend in market
newsprint

possible

manufacturers

States

research

new

Mando

to
undersell comparable
American products by nearly 40%.
In
view
of
this threat, United

■

specialty

been

ing that used to house
four

for

some

active

demand

country

Connecticut.

and industrial

market

rich

with

Lower labor costs

Japanese

years.

products industry is quite optimistic
for the decade ahead and Mando hopes

look for

made

have

industry

semiconductors

the

the United States.

forest

Along

increase its industrial prowess.

New companies coming to Connecticut find
themselves
within 500 miles of some 34% of the
nation's

manufacturing

Japanese imports continue to rise,
so far have
not stunted growth

ROBERT FAEGRE

expects to reach a

are

but

President of Minnesota and Ontario Paper
Company

prospects

types,

the electronics field.

The

domestic producers will

techniques improve and use of semi¬
conductors becomes more general in

heritage of
national industrial focal point: there's

silicon

and

decline

steady

been: phe¬

1960.

$450,000,000 mark, exceeding those of 1959 by
than 30%. Unit costs, both for

germanium

homes

Our

that sales of

expected

expected to continue their slow but

will

there

that

Corp.

the

600

economy.

nomenal
Ostrom Enders

Connecticut's

over

the

thousands

and

estimate

near

our

local

Connecticut's nation wide rank of second in the
produc¬
tion of machine tools; its nation wide rank of first in
the ratio of skilled-to-total
workers; its rich

America

Our

Transistor

General

unabated

continue

business, like most others in Southern New
Jersey, we feel our opportunities lie in growth. With
this growth comes an ever-increasing expansion of our

metalworking fu¬
nearly 70% of the new nrms that got under way
in that period are
metalworking industries. Add to this

added

metals,
and
93
produce electrical
machiney. This certainly speaks well

the

1960.
such

by 1968. During the past year
electrically heated homes to its lines
bringing the total of such homes to 2600;

Of
these, 252 are machinery
manufacturers, 219 are in fabricated

and

homes in

million

ACE

cut.

for

added

four

1956, for instance, no
fewer than 1,034 new manufacturing
firms began operations in Connecti¬

ture,

will

capability of 136,000 kilowatts. It will be a semi-outdoor
power plant with boilers and generators located outdoors
and turbines housed in the main building.
The company's Managers also reported there were
63 new industries and expansions of present industries
added to the company's lines in 1959, averaging over
ohe each week of the year. A total of 5,600 new cus¬
tomers were added during the year bringing the total
number of customers to 227,000.
;
The
Electric
Industry 7 will continue several hard
hitting national campaigns designed to promote the

phenomenal gro wth of the semiconductor industry

The

including all year electric air-condi¬
tioning. At present there are 500,000 electrically "climate

dustrial

From

built in the Coastal region since 1911,
scheduled for completion in 1962, will cost $27 million.
It will be located on the Great Egg Harbor River in
to

7:77

FIALKOV

HERMAN
President,

total electric home

average.

Since

pleted and many expansions and renovations now under¬
way. It also excludes money earmarked for state, county
and municipal street and highway improvements.
The company's new generating station, the first power
plant

reach the 700 million

try, the industry will undoubtedly
level in not too many years.

com¬

18% above the average for New

tional

view

Township, Cape May County.
The first gen¬
erating unit installed at this new plant will have a

OSTROM ENDERS

England and 30%

comfortable margin, for

major projects partially

production will exceed 600 million pairs, by a
the second successive year. In
of the continuing population growth of the coun¬

that shoe

District Managers compiled reports
their respective areas totaling $25U
for
completion
during the next

several

However, if our expecta¬
sales is correct, this should assure

tion of increased retail

Upper

President, Hartford National Bank & Trust Co.,
Hartford, Conn.

some

scheduled

three years.
This excludes

Thursday, January 21, 1960

the rate of sales at retail.

county area

planned for the eight

this company serves.
The company's 12
of actual projects in

As I have said many times in the

ures

Commercial and Financial Chronicle

The

(316)

will

mercial

and

industrial

With the two

customers'.

generating units
CG&E's
total
generating
capacity
increased to 1,475,000 kilowatts by the end of
new

1962.
To

assist

financing the expansion

will have to borrow Sabout

program,

CG&E

$30,000,000 in 1960. The com-

V
*1/!

Number 5918 ...The Commercial

Volume 191

and Financial Chronicle

spent $271,000,000 on expansion in the last

pany has
10 years.
CG&E's

it, based
that

electric sendout during 1959 exceeded the
1958 sendout by about 13.7% and the gas sendout was
up about 3%.
The population of the area continues to grow at a pace
that adds from 7,000 to 10,000 residential electric cus¬
tomers and 5,000 to 6,000 residential gas customers each
vear. Along with our new generating facilities, we will
have many improvements in the supply and distribution
of gas.
*
■
'4
To further augment the supply of gas during extreme
cold weather, CG&E recently completed construction of
a
huge underground cavern, 350 feet beneath the sur¬
face, for storage of liquid propane. This project, costing
$2,000,000 includes a processing plant to vaporize the
propane from the cavern and mix it with natural gas.
Greater Cincinnati, located near the center of the
Country's population, has many advantages to offer as
a
site for manufacturing plants and headquarters for
companies doing a national business.
"

relatively high number of existing houses
replaced,, a drop in the rate of new

should

(317)

housing in 1960

seems

and

operation

greatly
met

without

with

housing

new

expect

cannot

everyone.

concerned

financing
be

that

the

other

improving
so

achieved

the

that demand

the

co¬

money.

hand, we are
machinery for
can

rising

trend

new

continue to

industrial

upturn that took place in new housing in 1958-59
mean a continuing high rate of new construction

The

should

and garages during 1960, since this
usually lags behind new housing.
should also contribute to the demand for water and

of stores, restaurants

contributing to further inflation.

the

in the cash flow of corporations, we expect a
increase in the rate of expenditures for cost

reduction, modernization and repair, and research and
development, in spite of the restricting effect of tight

paramount issue
without

year

continued

inevitable because of tight.money.

We believe that inflation control is

today

past

plant

construction to continue in 1960.

Manufacturing activity
general has not yet caught up with capacity attained
by previous expansion. But growth in certain industries
is so dynamic that the
gap in the^r capacity utilization
has already been closed or will be closed in the near

systems,

sewer

construction

type

financing

municipal

although

will

limited

by the high cost of money.
The increasing trend of expenditures for new schools
and other institutional buildings was slowed down dur¬

result of rebellious taxpayers.
that post-

ing 1959, apparently as a

future.

However, the need in these areas is so urgent

With the improvement that has taken place during

Continued

the

'i*'V -i-J

HARVEY

a't

page

f-'t

FIRESTONE, JR.

Chairman of the Board & Chief Executive Officer,
The Firestone Tire & Rubber Company

New Role for

industry will enter the "Soaring Sixties" in
a strong, healthy
condition and with a very brignt fu¬
ture.
We are on the threshold of a 10-year period that

The rubber

unprecedented growth for the industry as it

promises

ever-increasing demand for

meets an

products.
1960 should be the great¬
est year in the history of our pro¬
gressive industry. The general up¬
ward
trend,
which
was
briefly
interrupted in
1958, was back in
stride in 1959 and is pointed toward

its

The year

►\

greater heights,

Nation's Defense

•

optimistic fore¬
cast
for the coming year and the
decade which follows on the great
I

basing

existing

promise

the

economy,

vehicles

motor

number

The nation's railroads will become

in the national,
rapidly increasing
in

part

gram

rapid growth of foreign markets,
improved technology within the
rubber industry,
the expansion of

the

facilities

production

existing

and

Firestone,

integral

of the Strategic Air Command's defense pro¬

use,

the

if the mobile-missile plan

now

being favor¬

ably considered by Defense Department officials

Jr.

adopted.

diversification into

•

broadened fields of activity.

support of the promise existing in

the general econ¬

The

expect approximately a 7% rise in both
gross national product and disposable personal income
in 1960.
There is a dramatic growth in the number of
families forecast for the next decade and there will be
omy,

nuclear
ness

growth in the number of vehicles in use. An
extensive expansion of the synthetic rubber industry
in

Many

manufacturing interests in these foreign
tries.

Union

Pacific

bases

has

on spe¬

augment

country

missile-carrying

deterrent

global

the effective¬

countering

possible

kept

with

military

pace

constant progress

in mobile

of powerful diesel and

acquisition

equipment,

im¬

proved operating techniques and electronic

com¬

gas-turbine

expansion of products and
facilities within the general field of rubber, the indus¬
try will greatly expand into allied and. related fields.
Diversification will be a key word for the rubber in¬
addition

immobile

science for defense

The technology in the rubber industry has never been
higher and is constantly producing improved products,
many special purpose items, and new applications for its

They would

growth indus¬

"/Vi.v;-i

products.

act as a

the

attack.

countries is now in process and will con¬
American companies have operational or

foreign

war.

Mobile

schedules.

launcher-trains would

rapid

tinue.

unfixed

resulting from increase in popu¬

the road,

cars

cial trains which will constantly roam

lation, increase in number of family units, increase in
number of multiple car families.
European countries, now in a boom, are experiencing
a

plan will base long-range missiles

can

development

locomotives,

munications.

dustry in the 1960's.
The year 1960 will see record consumption of
both in the United States and the world.
There
a

continued

increase

both

the

amdunt and

Our

rubber,
will be

the per¬

centage of synthetic rubber utilized.

the industry,
tire demand

another

believe
in the
one

big factors

unsurpassed

in transporting

everything, from delicate instruments

massive

dependable 'round the clock schedules.

record-breaking

units.

biggest

are

Union Pacific is

lion

year

smoothness,

missiles,

increase of 10% over 1959. We
year in passenger
car
replacements, which will reach between 68 and 70 mil¬
127,000,000 units,

expect

outstanding safety record speaks for itself

and safety, along with a roadbed

for

In the tire business, the backbone of
there promises to be an increase in total
to

optimism is well based and the first
challenging decade is almost sure to be the
yet for the rubber industry.
this

FISHER

handle skillfully the

greatest

commodities in history
to

geared

transportation of the

flow of peace-time

and is well prepared

join with other railroads in accepting this

new

role in the nation's defense program.

Chairman, Johns-Manville Corp.

Barring unforeseen developments, the business outlook
ior

I960 appears to be excellent.
We should
expect a resumption of the rising trend of
business that began early in 1958 and was interrupted

the steel strike. Johns-Manville
is so highly diversified that in order
to appraise the 1960 outlook in thevarious areas affecting our company,
we must cover
several specific segmbnts.<: - '
In
the
construction segment our
sales will
reflect activity not only

§1
■v.H.iwSSiSSSKr:

residential

industrial

institutional
water and
In

these

construction, but

also

plant, commercial
construction
and

and

sewer

areas,

systems.

sales of our prod¬

UNION
PACIFIC
The Union Pacific

dependent not only on new
construction but on repair and mod¬

ucts

are

ernization
A. R. Fisher

latter

of existing

category should

"Strategic Middle Route'

facilities. This
be somewhat

higher than in 1959 in line with its
long-term upward trend as well as the carrying over
of
projects from last year as a result of the steel strike.

Despite

the demand for

new

housing and the need for

OMAHA

NEBRASKA

Dependable Freight and Passenger Service

Jf-

(318)

Continued from

page

prolonged

during the year, will be concluded without
damaging results.

noticeably with the cancellation of the
Fortunately, this will not affect

suffered

B-70
em¬

contract.

strikes and
can

phase of the business cycle would probably reach a
peak during the latter half of 1960.
It now seems
reasonable to believe that the strike, which has now

stretching out the
upward movement at least until early in 1961.
settled, will have the effect of

been

HENRY

expenditures
for
plant,
equipment
and
modernization may increase to $38 billion.
The shift
in business policy from one of decumulation to one of
accumulation should rebuild inventories to more normal

ployment of production or

levels, increasing total production substantially.
Residential construction will probably decline in 1960,

automobile

expenditures for all types of construction, including
housing, are expected to remain at approximately $54

vorable,

billion.

only be temporary afld the long-term
upward trend should be resumed in 1960.
Before the steel strike it appeared that the recovery
ponement

Bomber

tainty the degree of growth for The Dahlberg Company
acquired by Motorola last fall. We are working closely
with the management of this hearing-aid firm and plan

Capital

but

FORD, II

Xotal
be

For

time

some

predictions

heard

have

now,

that

golden years lie ahead. The 1960's have been described
as a decade that promises the prosperous, growing econ¬

that is vital to a thriving automobile industry.
Economists
optimistically cite : a/v

omy

population that may reach 215-million, or 12-million more families, in
the
next
decade. They
point to a

much

the

automotive

industry

Ford economists predict:

seven-million mark

1960.

Normal replacement

—

will

automobiles

demand for

A normal

—

1.5-million units a

proaching
decade.
—

the

area

There is

units

million
The

than

creases

Although

cars

ROBERT

'■
a given
combination of
public reception of

but

good

new-car

sales above the

the

road,

the

7.5-million

continuation

40%

erally

and

the

trucks

passenger

tinue

cars,

the road

can

FRED

see

our

National

Bank

expanding

the

effects

of
was

Committee,

incomes, and the value

construction

all reached
were

set

new

contracts

awarded,

peaks. These records
of
labor
dis¬

spite

turbances, principally the steel strike.
Gross and net earnings of business
enterprises

wholesale and

whole

were

consumer

fairly

stable, and
activity was at a

high

ings

from

all

needed

finance

business
The

sources,

the

volume of mortgage

of the

strong demand for funds and of the limited
supply
available, was increased interest rates, but the increased
of

normal

money and

the

decline

its

reflections of

availability

prosperity resulting from
usually high level of business activity.

were

un¬

economic

gives promise of favor¬
conditions, satisfactory earnings, rising

employment, and considerable growth
uncertainty
being the
possibility of
The

following comments

other

another

and

steel

estimates
strike in

important negotiations between

the greatest
further
labor

—

disturbances.

there* will. not be

seen

and

the
,

spending

horizon,

cash will

The

;

much

many

events yet
or highly

changes in

that

has

hands

barring

con¬

is almost
will also

before

the

probable

human

continue

un¬

im¬

nature,

circulate.

unprecedented
scramble
be¬
even within,-:various in¬

tween, and
dustries

cash

direct

into

flow

particular tills, will continue.
Hopefully, 1960 may, and certainly
should,
see
definite
and
realistic

Fure\

1960

equally

are

and the company

the record 1959

over

be at this time.

business

prove

ex¬

communications products intro¬

last year or

the

two-way radio
improve each

1960 should

will

new

continues

and

so,

including personal pocket

radio paging systems and closed circuit television equip¬
ment. Our already established portable two-way radio

products and

our

microwave equipment will also benefit

from the needs of business and

efficient

industry for faster,

communications.
there

"•

excellent

assume

new

facilities. We fully expect, however,
the commercial aircraft market im¬

begin to serve
mediately and anticipate a relatively short transition
period. Sales of these products should increase even

though the earning potential of the new subsidiary,
Motorola Aviation Electronics, Inc., will not be realized
until later

on.

Our electronic products for the home
continue to lead the upward trend in
'

share
to

are

expected to

business, with sales
significantly higher. We markedly increased our

in 1960

lead

the

television

business

last

and

continue

also had

radio

products

year

in sales of stereo hi-fi instruments,

dramatic increases in

the

and

expect this trend

sales

of home

continue

despite foreign

com¬

graded
been
cess

taste

reflected

encouraging trends to

consumers

the fact

for
that

fine

is the up¬
furniture. This has
us

Motorola's greatest

is in console television where both our
and the Drexel line of television

own

furniture
consoles

have

proved

popular. We also

and

that

1960, and that

industry and labor

suc¬

line of
stereo

expect

that

1960 will witness the
"settling down" of the stereo in¬
dustry; stereo instruments have now achieved true
high
fidelity, sufficient power, and furniture styling to please

the most exacting consumer. While there
is still a
major
education job to be done in stereo
hi-fi, I960 should
result in a much more mature
understanding of stereo
by dealers and consumers.
We

are

expanded

quite confident that

our investment in
greatly
production facilities and in development and

engineering behind our transistors will result in
profitability for the semiconductor business.

have

invested

nearly six

years

and

millions

sales

emanate

from

government or simul¬

taneously and improbably from all three, is difficult to
foresee.

hands of the

challenge of
In the very

however, it
increased

the

curbed

individual

thrift.

inflation

businesses

return

the

biggest

single

;

face of rising' prices and increased spending,
is quite likely that 1960 will be a year of
and

long-term health of the

the

should

and

be, for thrift is

the finest possible tonic for
economy.

As the first of the 60's passes,

and

defeat

the year.

curb for

sure

meet

in the middle of the squeeze, the con¬

inflation

That

sumer.

will

inflation

likely,

man

industries

I suspect that
will

devoting

time and money to finding ways to get a

and

better

all wages,

including executive and managerial
salary dollars. The problem of expecting more and more
remuneration for thinking and doing less, appears to be
seriously prevalent at almost all levels and in practically
all business,
industrial or service organizations. This
on

cause

inflation

must

curbed—productivity

must

keep pace.

Prosperity,

always, will include pitfalls. The ability
and permanent prosperity will, there-

achieve sound

ifore, be determined by
perity

on a

our ability in 1960 to place pros¬
completely sound foundation.

EDWARD

GAILLARD

President, The Union & New Haven Trust Co.,

•

;

From

New Haven,

Conn.

all reports and

indications, industrial production,
sales, the income of individuals and business activity
generally are running at high levels—at or near record
levels in some instances.
The steel wage settlement,
announced
recently,
has removed
the major

uncertainties for business

during the immediate future. While
reports indicate that no immediate
price increases by major steel com¬
panies are expected, the terms of
settlement would appear to be highly
the

wage

price

boosts

advances

run.

When

put into effect,
will
undoubtedly

are

follow, giving stimulus to the wage
price spiral, with resulting further
erosion

of the dollar which is, of
harmful to the economy.
Barring the outbreak of other
crippling strikes such as a possible

course,

rail

Edward M. Gaillard

walkout, the prospects are now
booming business for the first

for

1960, with possible record production and
automobiles and related industries, due
replenishing inventories and to the
continuation of consumer buying at high levels.
Some
six months of

sales

the

steel,

need

for

other lines

of businesses may not fare so well. For ex¬
ample, residential building will be off because of very

high

dollars

developing a sound and profitable semiconductor
activity and the last quarter of 1959 indicates that we
will capitalize on this effort from now on.
Motorola is
already the leading producer of power transistors in
this country and
we
believe
that our quality Mesa
transistor is second to none.
our

the action will

for

labor, management,

in¬

Prospects for

national and personal economic lives.

inflationary in the long

of the most

ranks of

the

our

initiative

Whether the

ception. In addition, we believe we
begin to capitalize on several

Robert W. Galvin

duced

mobile

ously affected

achieved,

creased

The business outlook for 1960

able

for

may

year

One

huge
loans, the bor¬
rowing requirements of Federal
state and local
governments, and business expenditures
principally for plant and equipment. Also, there was a'
heavy demand for consumer credit. The natural result

cost

prospects

improve

Motorola

were

greatly exceeded the available sup¬
ply of funds, particularly long-term
Fred F. Florence

that

Never

been

people,

$300 million.

over

petition.

level.

demand for credit

credit

However, it would be mean¬
ingless for me to forecast what earn¬

good,

prices

overall

increase

year.

investment in

Dallas, Dallas, Texas

1957-1958 recession.
The year that
quite satisfactory for business generally,
and Gross National
Product, indus¬
trial production, total
employment,
all

military elec¬

long-term prospect for
the commercial aviation products being acquired from
Lear, Inc., 1960 will be a period of consolidation and

the

personal

and

overall

earning

favorable

While

During 1959 the American economy demonstrated again
its, resiliency and staged a remarkable
recovery from
just ended

with

sales may

Our

FLORENCE
Executive

industrial

tronics

about 10% in 1960. If this is

10 years.

expected to in¬
such

sound growth pattern in con¬

sumer,

huge highway construction pro¬
gram
and the continuing growth of truck-dependent
suburbs. By 1970, the normal new-tru^k
market prob¬
ably will approach 1.5-million units a year.

Republic

cash

upward,

edge

inevitable

Rankin

industry particularly in the
ahead. Motorola expects to con¬

year

factors

our

Chairman of the

increase.

GALVIN

should

sales

new-car

1970. This is based

economic factors

determine

Although prices will probably

and

electronics

range

increase

policies

by possible labor
industry, all indications point
prosperity for the economy gen¬

than 32-million

big growth in the truck population in the
The number of

unsound

will

steps taken to curb an inflation which has already seri¬

by 1965, it should be remem¬
bered that a swing in the business
cycle could easily
cause
a
particular year to be well above or below the
expected normal.
'•
/. '■ *■
:
•;

crease

which

for

tinue

high

Although the outlook is still clouded

seven-

mutiple-car families.
previously mentioned

result in the normal rate of

Besides the

difficulties in the railroad

is inevitable. Of

should
the

tions

outlook for the years beyond.

President, Motorola Inc.

working toward

year,

and

number

all

outlook

business

public, is essential to the maintenance of an orderly and
rate
of growth in our economy, which is
both desirable and possible.

the

"routine

term

1960

practices by government, business, labor and the general

seven

standard

prosperity" already applied to the
by at least otn^ .financial editor,
could, I believe, be a very compact and reasonably ac¬
curate forecast. Within
"routine prosperity," however,
will lie many challenges, the solu¬
The

assure

avoidance

the

years old—indicating a relatively
living. Maintaining this "young-car"
ownership would require an average of 5.7-million new
cars a
year, and this figure does not allow for an ex¬
pected annual growth in the 1-6-year "car-age" bracket.
Rising incomes will be the chief basis for further in¬

high

FUREY

RANKIN

President, The Berkshire Life Insurance Co.

sustainable

figure.

less

are

coming

push

-'-v.

year.-

increase in replacement demand
51-million

some

activity

models could

new

substantial asset to Motorola.

their

automatic factor

economic

peak.

new

to be

1965.

sales volume for the

high

that

the normal rate of new-car sales will be

1965

7.5-million

close to

of the

proportion of multiple-car owners ris¬
of the total at the beginning of 1959 to

12%

15-16%

—

the end

year

conditions

realized

overall

ing from

1960,

both sales and service in the coming year.
confident, however, that this subsidiary will

most

prqve

degree of cer¬

early to determine with any

too

expand
am

1960 appear most fa¬

sales in

automobile

expect to have a good year also.

continued favorable
this country.
And, it should be

statesmanship

business

Henry Ford, II

The

degree

truck market ap¬

new

will require the exercise

enterprises, and

five-mil¬
lion figure in the early years of the
1960s.
""Vv/,
i, '
the

pass

that

billion

radios and other electronics equipment to
manufacturers continue to be satisfactory

during 1960.
These developments re-emphasize the need for strong,
experienced management for banks and other business

exceed the

could

New-car sales

—

»<
Gross National Product will

.■

are

$508

about

activity rises as anticipated, total employment
will probably increase considerably, workers may feel
assured of steady employment, consumers generally will
likely continue to spend their current income freely
and use their credit, whenever necessary, and a strongdemand for capital funds and bank credit will prevail;

strongly optimistic. In more specific
terms, our

billion.

indications

goods

approximately the

car

because

for

expenditures

business

the fu¬

therefore,

whole,

the

for

1960.

Government

$101

The

1970.

On
ture

since 1946, and another new peak may

and
services probably will not rise substantially, but such
expenditures by state and local governments may in¬
crease
approximately $3
billion.
Estimated Federal,
state
and
local
government expenditures may total

rise

national product that will soon
reach $500-billion and half again as

reached

Federal

about

gross

expenditures have established a new

consumer

record each year

President, Ford Motor Company

..-v,

Sales of

and

volume' will

1959.

same

1960

Total

extent.

technical people to any great

.military electronic have

costs of materials and labor and competition for
finance such projects. Increased
profits can be expected in some lines, but rising costs

the

and

funds necessary to

increased

competition will

prevent earnings

gains

in others.

Money and credit are very tight and interest
arfc at the highest level since the late twenties and
thirties.
-to

Credit in the next six months

continue

tight, and interest rates

can

rates
early

expected
to

be expected

Number 5918

Volume 191

The Commercial and Financial
Chronicle

change more likely to be

continue firm with any
ward than downward.

past two years, even
though the general economy recov¬
a high level
during 1959.

up¬

prospects for banks during the first six months
1S60 are for a continuation\of strong demand for loans

high interest rates, with the result that gross
income should be at high levels. However,
costs and
keen competition among banks and
financial institutions will tend to hold down net
ating income.

are

living in

time

oper¬

the

ating

rising
other

celerating.

pace

and

progress

competition

has
;

-;'.v

mechanization—lead
serve

been

The

back

advances

ac¬

chines
1959

and

industrial

dustry.

well

markets,

the

modernization

machine

tool

industries

tools,

Due

about

yet

purchases

lead

the

time

spotty

pattern

orders

Refractories

orders

their

are

generally

expected.

Industry

output should

\steadily recover from the subnormal levels of 1958-59.
Continued

leading

Co.

<r A

*•»<•*<

...

year
1960, will see the refractory industry and
Harbison-Walker Refractories Company, in particular, at
new record levels.
New record highs are expected to be
set in the operations of most of the major consumers of
i tit a-tones.
The heavy- industrial
markets include iron and steel, non-

metals, and various mineral

products like glass and cement. Re¬
fractories
are
essential
wherever

to?

high temperature furnaces are used
or
where other rigorous.industrial
conditions

are

with

line

met.
the

...

chief

consumer

refractories—iron' and steel—the

refractories business should

expand

rapidly in the first half of the new
year.
The expansion will be most
rabid

half

comparison' with .the

last

period

depressed by
the steel
strike.
Looking into the
second half of 1960, reffractory ship¬
ments

New

expected

are

the

1959,

high

record

level

technologic

Earl A. Garber

hold, close

attained

factors

have

the

first

half.

developed

been

very

rapidly in the metallurgical industries in recent years.
There is every indication that they will continue in the
future and possibly accelerate even more.
In keeping
with the

expand
terials

conditions, Harbison-Walker dedicated its

new

Garber

new

Research

Center

the research function.

1959

New

and

continues

Products

and

ma¬

being developed in expanding numbers.
expansion of the various basic-oxygen
steelmaking processes, in particular, is and will continue
to make a profound
change in refractories. The product
mix of the industry is
being modified radically. Some
old product lines are; declining.
In turn, their place is
are

The

recent

being taken by newer products such as recently de¬
veloped types of basic refractories, monolithic products,
and other specialized refractories.
Both

the

service

meet

today

about

the

conditions

the

and

changes.

fractories

research

the

economics

New

have

refractories

involved

products
also

have

brought

developed :by

been

re¬

available

made

improve conditions jn customer furnaces.

In practically

all

cases
the change has been to a higher quality of
refractory.- This has generally been the history of the
refractory industry, but not to the degree presently
being experienced or expected in the future.

As
not

part of improved service, Harbison-Walker today
only offers an ever improving quality in its products,

but also is

both

extending its geographic

within

the

United

foreign operations.
the

States

coverage of

America

and

markets
also

Plenty of plant sites with husky

profit potential

waiting for

are

you

Further diversification is typified by

recent

announcement of the formation of a joint
venture, Harbison-Carborundum Corporation. The prod¬
uct
involved is one of extremely high quality and

UPSTATE, N Y.

refractoriness.
All in all, the

new

year

will be

one

of considerable

expansion in operations for both the refractories
industry
and

Haribson-Walker. The decade of the 1960s, indeed,
anticipated as one of great growth, changing condi¬
tions, and economic opportunity.
is

Here, in the 22,000 square

nearly
suited

several generations

most

in America have

favorable living standards, and
that

°i

tully 3%

per

year.

that

come

enjoyed the

productivity gains

from

the

use

not

out-of-date

machines, but they flow from man¬
agement innovations and advanced

methods, using more accurate
productive machinery.
In

there

the
are

and

metal-working industries
outstanding examples of

improvement and moderniza¬
tion programs during the past decade.
However, by and large, American
industry is not keeping its machine
tool equipment up-to-date.
This is
evident from the rising percentage
of
over-age
equipment in use, as
reported in the "American Machin¬
ist"
Inventories
of Metal-Working
plant

Frederick

V. Goier

subnormal

Equipment.

It is also evident from

purchasing of machine tools during the

your

search for
can

con¬

benefit

comprehensive inventory
of buildings and sites and the inti¬
mate, detailed knowledge of our
district managers about the com¬
munities we serve.We'll gladly assist
from

aut-ornatic built-in

fact

help in

fidential assistance. You

have come to
improvement
We have been apt to overlook the

can

profitable site with fast, expert,

Chairman of the Board,
The Cincinnati
Milling Machine Co.

can

our

specific research

vou

need in your

Before you

in
ral

choose

plant site, learn

abundant water...

solid labor force...

ive

you

Upstate, N. Y.: a wealth of natu¬
resources
plenty of low-cost

electric power...
a

advantages waiting for

a most attract¬

political and economic climate

NIAGARA

to serve

the richest

Northeast.
healthy, diversified industrial
neighbors prospering here. Trans¬
portation is particularly attractive;
.

the

growing network of superhigh¬
the St. Lawrence Seaway, the
barge canal and excellent rail and

ways,

air service combine

dependable
eastern

For

access to

provide fast,

the rich north¬

market and Canada and

die seaports

search for the ideal location.

all the

find the plant site admirably

its needs...the site from which

market in the world... the great
We

FREDERICK V. GEIER

miles served by Niagara Mohawk,

of industry

every type

the

equipment will be reflected in more active machirie
tool buying.
Normal rather than boom levels of new

The

ferrius

and

for

President & Chief Executive,
Harbison-Walker

ma¬

60%

GARBER

new

New orders for machine tools in
of normal volume for the in¬

lagged.

Given generally favorable conditions for capital ex¬
penditures in 1960, mac ine tool builders believe the
accumulated
replacement
needs for productive new-

development

needs

machine

producing special machines, 1959
industry shipments reached only 50%.of normal output.

of the war-tor-n nations have made their industries more
advanced and competitive at this time of
rising world,wide demand for industrial, growth.
Recognizing this

demand,

have

came

longer

directly to machine tools. They

reconstruction

The building of machine tools

major aim in communist countries.
technical

In the United States there have been notable

the cutting edge of economic
progress.

rapid

countries have been active in technical progress

expanding capacity.

has also become

home

EARL

in science,

small, improved living standards
development have become primary goals
of government
policy.
In links of this chain—better
living standards, industrialization, production equipment,

the

uncertainty.

advance

In nations
great and
and industrial

oper¬

immediate prospects for business appear
bright, there are, in my opinion, many, unhealthy forces
in our economy and many unsound trends have become
increasingly in evidence.
Time will not permit to
enumerate or discuss them here, but if these unfavorable
factors cannot be corrected in the near future, they
will prove very damaging to^ the nation's economy.
Therefore, the
long-range outlook is clouded with

rapid

and

•technology and industry. Clearly, during the past decade

While

overseas

ered to

The
0f

(310)

complete information

services

of the world.
offer...and for

the

concrete

help in your search...write, wire or
phone Director of Area Develop¬
ment,

Niagara Mohawk Power Cor¬

poration, Dept. CF-1, 3 00 Erie
Blvd. West,

Syracuse 2, N. Y.

BUSINESS MANAGED

•

MOHAWK
TAXPAYING

page

Continued

foreign steel hit

from page 67

continue

Brothers, Inc.

Gimbel

least

favorable

as a

whole

with

Real

this

estate

show

should

1960

Business

million

150

syndication than
form.

year

lower

final

the

low

The

for

industries, however, will have

duction

1960.

terms

anxious

R. L.

Gray

point

Naturally, steel
a

efficient

with

finished

distribution

indicates

that

advances

over

the

major

almost

all

steel

healthy

many

schedules
three

6,750,000

call

for

months

industry's
sembled

automobiles

the

1960.

the

total

number

cars

which
will

Sales
show

1959

ahead in 1960.

household

moderate

plans

because

7—; ~

appliances

increase

from

other

the

levels

sure

1959.

inventories of appliances in dealers'
relatively low and need strengthening.
Purchase of steel by the railroad
industry will show
a
marked increase in
1960, moving up from the very
low level of the year
just past.

that

they

will

well

below

average of recent years.
A
and

rise
a

seems

small

that

There
must

for

increase

drilling

see

this base

some

temper the

011

.V.

With

the

■

these

lead

funds

motive

for

the

chosing
Signifi¬

syndication invest¬

the

overall

,7V:;7>:■ 7.7^'7;7 ".-v^-

.7 7.

facts

•"

■

;

real

year

PAUL W.
President, Chicago Title
The outlook for real

Chicago

area

country,

and

funds

building activity in the

from

other

acting as
particularly

influence,

195.9.

wmcn

imPending in 1960,

strikes, would have

damaging

the nation's production
and payrolls.

manvP°otherf vital materials
vilal1, aSf Wel.*
y
other
parfly to^hnH^ mfluence
ty to shoitages caused

and

finished

on American
by

the

goods

business'.

strike,

However,
money

the 'rate

and

consumer

Before

1960

should

ends

types
a

000,000,000
output.

might

the

reduce

nation's

labor

duction

ployment,

force,

the

rate

will
.

were

new

housing units

apartments

has

apartments

family

„

all

whereas

substantial

homes.
in

the

only

total

year we

the

total

re¬

unem¬

increases

Joseph Griesedieck

personal

consumption expenditures, more government
purchases, larger capital spending by industry and even
greater production.
The Sixties seem especially sunny for the
brewing
industry. * "Newcomers" to our adult population will
continue to increase by millions annually due to
higher
birth

rates

years

is expected

sumers

This

ago.

even

influx

"new"

Total

1959

industry
years,

000,000

increase

brewers

barrels

consumption,

approximate

may

and should

1960.

beer

about

are

con¬

substantial

the second half of the decade.

during
7;77;t,77.7

nearly

another

static

barrels

86,600,000

million

barrels

predicting approximately 93,by
1965
and
"about

consumption

101,000,000 barrels by 1970.
'
\
;
Falstaff Brewing Corporation in 1959 will have estab¬
lished

new
records for both net sales and
barrelage.
Sales should be close to 4,750,000 barrels for the
year.

Under

normal
of

growth

about

patterns

sales

anticipate

1960.

Our

detailed

the opening of additional major markets
may be culminated by some activity in this direction
during the year. We will, of course, continue a dynamic,
pattern-setting marketing and promotion program to
achieve even greater depth sales in our present 27-state
area despite keener
competition.
on

The

outlook

ising.
very

hut

for

the

largely

agreements

the

for

are

railroad

how

If
in

able

rule

tween

the

half

carry
1959

govern¬

ago

and

assuming
the

issues

again

reason¬

and

wage

pending

now

their

and

1960

five

some

the

traffic than in
when

the

were

railroads

seven

the

be¬
em¬

the

w.'ll

cent

per

first half of

busy helping to

effects

the

reces¬

sion.

cannot

outcome
am

A. J.

26%

Greenough

very

tions—as

venture

the

If,

however,

these

labor

predict
issues,

the

but

hopeful of reasonable solu¬
I

imagine most labor

management

1959

the

own.

railroads

overcome

with

the

years

labor
industries, in¬

ployes, I would estimate that in
first

The

growth in
compared with single-

three

satisfactorily

settlement

Approximately
Chicago area in

our

prom¬

depend

will

year

steel strike is not called

work

deficit)

compared

and

January

Federal

development

been

the

number

cluding

for

quickly
in

Co.

industry in 1960 is

results

reached

in¬

GREENOUGH

Pennsylvania Railroad

actual

home

year.

lower

need

important

housing

probable

An
Paul W. Goodrich

value

During this election
well
see
expansion

easing in mort¬
the

much

borrowing

econ¬

half-trillion-

dollar mark, possibly reaching $510,-

restraining
on,

balanced

may

America's

the

pass

be evident by the

may

(or

Corporation

heavier.!

1959.

im¬

Due
imports of

some

quarter

should
ment

as' inc°m.ihg shipments *of

half

second

Brewing

during the
during the last
spending by both

the
Chicago region
will
probably be somewhat lower than in

budget

GRIESEDIECK

and

ALLEN

1960, in

vestments

yet

problems

Falstaff

President, The

common with the rest of the
to reflect the financing problems as¬
sociated with high interest rates.
Competition for mort¬

the

be¬

live

vigorous

months

business

Trust Co., Chicago, 111.

estate

gage

will

'7."

'•

•

is likely

these

Inventory accumula¬
expansion are ex¬

GOODRICH

prospect
'

pected
first six

planning

estate

'.777

and

The

population

our

business

increase

expectations in mind, I cannot
help but be optimistic about the immediate and projected
future of real estate
syndication.
The time and the
situation are primed for its
growth.
11.

assured.

Outlook.

estate

real

upper-middle range. Tne future
as lower income investors

syndication

shadows of
concern, however, which

the

gage

th?vthrL!?Hj0mlaiO-GC0ntrOVe,rsies

^
pact

invest

that

broadened,

1960

uninterrupted production is
are

their

of the soundness of

aware

and

products is forecast
for both oil and gas

well be steel's biggest

rapid rate.

tion and

recent

petroleum

ail>,1960 could

■■■■,

indicated

building. New home construction

certain.

in
now

demand

Steel exports will be
greater next year than in strike-

though

majority, syndication

is the

cases,

1959,

which

survey

shows

importance
picture..

shortages

are

restricted

the

through syn¬
corresponding increase in the

a slight decline in new
housing
by increases in disposable income.

hands

increase in the amount of capital available
dication investors, and a

this market, the effect of
starts will be offset

And, in most

real

mature, cautious and
prudent investors who have already discovered the me¬
dium's advantages.
The result will be an impressive

—

almost

are

same

become

industries

steel

reach

primary

ment

1955.

expansion

shelved

were

move

the

will

for

number

average

inflation,

Until

answer,

annual incomes in

as¬

a neavier demand for steel products.
capital spending for new plants and
industrial equipment in 1960 is
extremely bright, and
the total could easily top the peak reached in 1957. The
steel industry itself will
spend heavily for new facilities,
a

t^an

against

present, the majority of syndication investors are
executives, businessmen and professional people with

building will bring

and

means

Dollar volume of construction may be
Up only slightly,
greater emphasis on
industrial
and
commercial

outlook

higher

hedge

of the investors.

but

The

returns
a

centers.

most

record-breaking business achievements and
brewing industry progress should gain momentum in
1960, starting an era we may well refer to as - the
"Soaring Sixties." Barring prolongation of the nation's
steel auficulties, our American econ¬
omy should forge ahead to new highs

omy

stability of the investment.
cantly, this choice was in preference to the high rate of
distributions, indicating the cautious and prudent nature

likely to be second only to the record 7.9

million turned out in

en¬

their families and friends.

syndication investors plan

Present

that

provides

within

syndications

higher production rate in the first
the year
than at any time in the
and

7777:77

;

First, real estate operators

among

medium

industries
will show significant

history,

■

investor who is,seeking

investment

The

1959.

'''"777

ineligible investors.

portion

The auto industry, which enters the new
year with
extremely limited stocks of finished cars, may produce
as

fi¬

challenge for the increased demands

prudent

added

and

America's

year.

vestment

consuming

them

methods

modern concept,

has made real estate investment available to
previously

systems

inventories, particularly in the first half of 1960.
review

1975

JOSEPH

Tremendous de¬

traditional

the

heights.

will

and

for

Syndication,

;

and

last year's steel production is sure to go toward building
A

needed

people

1960

President,

Syndication solved the problem by
parceling out the large investment to the public in small
portions. Just as mutual funds have brought stock in¬

are

users

years.

Louis Glickman

the average person.

un¬

They need not only to fill their produc¬

replenish their
goods as well. So

million

mf&ti

available

syndication, however, the
initial high cost of participating in realty ventures barred

tion

but

made

new

the

estate

"day's
to

few

■

they have turned to the general public. Today, ap¬
billion in property is syndicated, and
amount is reportedly increasing at the rate of
$3

equity

working level.
lines

earnings

their inventories to

rebuild

War II.

that

investors from

For

these inventories have shrunk

matched since World

climbed to

the

the pattern of steel pro¬

the

in¬

proximately S12

vital

supply,"

will

billion

bearing

flow

unem¬

Now

in the hands of steel consuming

now

within

commerce

of housing, indus¬
trial development, and urban planning will tax the re¬
sources
of municipal authorities and the
building in¬
dustry.
,7
■■ 77

nation's

fresh

will

sums

capital.

listed

inventories

steel

and

metropolitan

Simply stated, syndication is the ownership of a prop¬
erty by a large number of investors. It took its present
form just after World War II, as the
cost of realty

months.

six

level of

this

will help meet this

the first half and somewhat

figure

trade

tween

capital
other in¬

the

nancing this expansion.

higher than this

—

are

important
source
of economic, strength for this region. The St.
Lawrence Seaway will add significantly to the volume

investors

in any

With

capital

Vast

operate at an average rate of about
next

the city

underway. Industrial development remains

housing, office buildings and factories.

January 1, 1960, the industry should
85%

Ambitious urban renewal programs within

of their

expanding there are
opportunities for the
of

mands

producing

'will

from syndication investors.

above

tons

income

fi¬

nation's

the

that

vestment

from

approximately 90 million tons
produced in strike-restricted 1959.
Based
on
its
expected
annual
of

the

of syndication in¬

indicates

ployment

the

capacity

largest

and

commercial

and

cushion the decline in home

produce between 125 and 130 million
tons of steel.
This would be a new
about 40%

second

and

plan to invest

year

all-time high, and

poration,

the steel industry should

year,

construction
should
help
building in the current year.
terms of longer-range outlook, the Chicago area
continue to experience growth and development.

Industrial

vestment

upturn

building presents

than housing. Indications are that
capital spending programs by industry will result in a
good level of construction in the present .12 months.
New commercial shopping
centers are being planned,
although at a slower rate than two or three years ago.

Population studies indicate that all major metropolitan
areas will grow significantly in the next 15
years. About

economy

decided

industrial

and

vestors, conducted by Glickman Cor¬

just past, as almost every segment
of the economy looks forward to expanding production
and sales.
To support a generally faster business pace
turbulent

the

nation,

A recent survey

Steel Corporation

Armco

the

industry

equaled
President,

economy.

'\ 77'

nancing and ownership of real estate
through modern syndication tech¬
niques has become a vital factor in

GRAY

GLICKMAN

President, Glickman Corp. U-.;

and appear to be for the future.

industry

their power to keep prices

;'J''''

Commercial

the

now

creeping up again as a result of the long lange infla¬
effect of the steel settlement. Our stores will
adhere to their traditional policy of meeting competi¬
doing everything in

and vacancies tend to be concentrated

units.

older

return to a more normal

New apartment projects have not experienced

rental problems

relatively brief history of real estate syndication,
the prospects have never been brighter than
they are

tionary

down.

LOUIS J.

-v/':'7-

7,7,,

prices to start

wholesale

for

this probably represents

situation.

highs in employment and personal income.

15;
.

certainly do well to be cogis likely to be a renewed ten¬

dency

and

check further increases in

new

this

risen steadily in the past two years. However,
vacancies were abnormally low for a great many years,

the horizon for other industries,
can

apartment units

rental

rate

vacancy

has

area

the

to solve

the

encouraging picture

indication that women's and
apparel and accessories
will show stronger gains than home
furnishings, furniture and basement
divisions
(housing starts ,are likely
'to be down again this year). The
public has given every indication of
a
desire to upgrade the quality of
their purchases and alert merchants
will
certainly do wel lto be cog¬
nizant of this trend.
Although 1960
there

found

can

for

trend.

this

production, 1960 could well be the most
productive year in our nation's history. And with this
record production would also come record prosperity

children's

will

industry

cost

every

Bruce A. Gimbel

ways

its

not be at
1959.
There is

up,
now

demand

increasing

living, plus relatively easier
single-family homes, accounts for

for

than

financing
The

summing

Thursday, Januaiy 21, 1960

proportion was 17%. An
conveniences of apartment

As long as steel

1959.

displace jobs and wages of American steel-

labor disputes

will

believe

and if

stronger gains in the suburbs for the spring season. It
is too early at this stage of the game to make much
of
a
forecast
for
the
fall
sea¬
son
but
there
appears
to
be
no
to

workers.

Department and Specialty store sales should show in¬
creases of
3% to 4% in downtown locations and even

reason

high

new

production costs in the U. S. remain at levels so much
above those of foreign producers, imports of steel will

GIMBEL

BRUCE
President,

tion and

Chronicle

The Commercial and Financial

(320)

people

are,

and

and
cer¬

tainly the rest of the country is.
differences are not settled without

Number 5918

Volume 191

The Commercial and
Financial Chronicle

•

of traffic or wages, the effects could substan¬
the potential upsurge in the general econ-

serious loss

President,

such troubles the general economy is ready
into high gear. The peak level activity in steel, as
industry replenishes inventories depleted during the re¬
cent strike, will spur continued growth in consumer ex¬
penditures.
Both durable and non-durable consumer
goods production should be at near-record levels. This,
coupled with the continued growth of the over-all econ¬
omy, is
bound to be favorable to the railroads with
their unique capacity for mass transportation and their
ability to handle substantial increases in business at rel¬
atively little additional cost.

Rockland-Atlas

The

general

and

show

required

involved and the
bringing this about.

are

problems

these

remedies therefor
I

confident

shut

steady.

Board

hood

did

down

The

index

and

over

500,000

doubt

credit

steel

not

147.

ing,
for

prospect,
out, is for

bank

rates.

loans

least

firm

the

The

1960 will be

year of record

for

the

purchasing

United

States

that

H. F.

lar in

Hagemann, Jr.

activity

stem

long

teriorated,

dollar at home has shrunk

the result of persistent creeping
the currencies of other countries

there

Today,

were

serious

however,

the

have

made

the

United

has

Reserve

also

international

situation

has

union

demands, will not help the dol¬

secure

the

worldwide

outflow

confidence

the

dollar

and

gold,

penses
and curtailment of subsidies and gifts, both
foreign and domestic, are also absolutely essential. We
cannot continue to live beyond our income.
The time

inflation.
also

the

foreign markets.

fiscal sanity including con¬
tinued credit restraint and high interest rates are essen¬
tial. The wage price spiral must ultimately be broken
if the dollar is to be stabilized.
Some cutting of ex¬

economy,

power of the

Federal

rise

resistance to

rising

is the growing concern
about the American
dollar, and the related question of
the United States
gold position.
Since World War II
about 40%

the money supply
world's highest cost

relatively free market
helped to, restore confidence in the
have gained some confidence from

I960

Overhanging the promise

and

permitted interest rates
and this has also
dollar.' * Europeans
these actions and
while gold still continues to leave our shores, the rate
of withdrawal has declined.
The inflationary settlement
of the steel strike with the administration putting up no
to

demand

financing and the enormous expansion in bank

1951.
As a result, we have lost some $3.3 billion
gold in the last two years, which serves as a warning
that we are out of step with world economics.
Recog¬
nizing this, the administration has taken some steps to
keep expenses down and to cut down foreign payments.

The

strong

some

some,

the

foreigners,

since

.inventory accumula¬
tion, large continued business capital
expenditures and consumer spend¬
starts

minds

producer. With the ex¬
ception of 1957, the United States has had an adverse
annual balance of international payments in each year

Federal

June,

below

the

to its future value.

the

States

econ¬

year

dollar is less in demand and there

The

particularly

Deficit

industrial

the

demand.

exists,

figure for November is 148,
undoubtedly December will
a
further gain.
With a likeli¬

cussions.

solved—and

are

mills

strikingly.
Beginning
143 and
rising to 155

of enough freight cars to serve a rising economy.
Pennsylvania has the good fortune to be in the
the largest freight car acquisition program in
railroad history—some 23,500 modern cars, and addi¬
tional locomotives to go with them. Unfortunately, this
is only a small part of the total needed if the industry
is to do its job right.

and in

trend

upward

production brings this fact out
very

The

what

continued

idle, the rest of the

remained

omy

Reserve

midst of

continued progress in freeing the rail¬
roads to compete freely and fairly with other forms of
transport, begun with the Transportation Act of 1958,
can
and should come in 1960.
At the same time, of
course,
problems of subsidized competition, excessive
taxation, the passenger deficit, and suburban service
have certainly not been resolved, but they are moving
much closer toward
solution. Growing awareness in
government circles and among thinking people as to

steel

workers

latest

Longer-range

one

business

nations

index

is lack

was

activity interrupted, however, by the
ongest steel strike in
history. Even with most of the

biggest short-range problem facing the railroads

The

1959

year

dramatically. Other major trading nations have taken
steps to put their financial houses in order.
The pound,
the mark, and the French franc are now hard currencies

Bank,

Boston, Mass.

Barring

to go

National

FREDERICK HAGEMANN, JR.

tially arrest
omy.

(321)

•

de¬

reper¬

Continued

changed

page

they will be solved, one by one—the basic advantages
of rail transport will strengthen the competitive advan¬

of the industry and at the same time reduce the
costs of transportation for the economy. This

tage

over-all

development, coupled with an expanding business po¬
tential, should produce substantially brighter prospects
for the railroad industry and for the Pennsylvania as
time goes

on.

GEORGE

GUND

President, The Cleveland Trust Company,
Cleveland,

for

clear that
the

feeling.

0•/

of all it is
the carryover of activity from 1959, resulting
steel strike, will provide an upward push in
-the first part of 1960.
Steel mills
share

I960, ,and

from

Ohio

general are confident about the outlook

Businessmen in

that

First

•

have

very

large backlog of orders

which will keep them

operating at or
several

close to capacity for at least

months.

Automobile producers have

scheduled

record

output

cars

the

in
a

first

second

quarter.

Assuming that

long strike does not occur,

national product should climb

gross

above the $500

billion mark by mid¬

perhaps in the first quarter.
from
the
post-strike re¬

year,

Aside

bound, several factors promise to be
on the plus side of the 1960 business
One of the most impor¬

scoreboard.
tant is
George Gund

for

new

the

1958

low point

spending by business concerns

rise

plant and equipment. While
in such outlays from the

has not been notably vigorous so far, a

substantial

increase

indications

are

for 1960. Present
expenditures will be "more
above the 1959 figure of about $32% billion,
reasonable chance of exceeding the all-time peak
in

that

prospect

total

V;.

than 10%
with
of
<

$37 billion in 1957.
The

outlook

incomes
the

and

average

factories

favorable

also

for

larger

consumer

spending. Employment will increase and
number of hours worked per week in

Above

are

sketches of

likely to edge upward. The same is true
hourly and weekly earnings in manufacturing.

Industrial

Consumer spending for services and nondurable goods
should continue to advance at a steady gait. Purchases
of durable
goods will show a bigger percentage gain,

chiefly due to larger
automobile industry is
record

area

performance

New

1955.

passenger

6% and 7

This stimulus will slacken after steel

but

for

1960

needs have

also

prospect for purchases of goods
Government and by state

Federal

gain of $4 billion

over

Interest

rates

likely to show
Total

will

somewhat

remain

from

the

in 1960. They may
level, but are not

place in 1959.

measured by gross
national product, will probably be about 6% greater than

for 1959.

1959

was

healthy in the New Jersey

Electric

and

Gas

year

Service

our

The final quarter

was

here will continue during the
-

■

•

territory there is visual proof of the growth of industry,
new

office buildings and

New, modern, landscaped industrial establishments

Valley section,

well

Central

and

new
are

residential

seen

Northeastern

in the
New
many

by Public Service. Urban renewal is taking place

cities.

years

new

particularly successful, and there

progress

years.

commercial centers,

new

Company.

Jersey, at the Crossroads of the East, than during

ahead

hold great promise. All of these facts reflect the

growth of New Jersey, and Public Service is growing along with this great
planning and building ahead to meet all demands for

are

our

services.

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
...

•
,

•

NEWARK, N.Ji

recent

the sharp rise which took

business volume

state. We

high

year.

months and

many

The

1959.

downside, residential building will experience
a
fairly sizable decline from the very high level of 1959.
The number of new nonfarm dwelling units will prob¬
ably drop by 10 to 15%.
_\
J

to New

parts of the area served
in

by the

Public

Jersey. Shopping centers and housing developments have risen in

On the

advance

industrial plants erected in New Jersey during 1959

indication that industrial

Delaware

whole

and
and
local
governments, particularly the latter. Combining
the two, the 1960 total should be around $102 billion
services

well

areas.

in 1959.
A rise is

came

every

Throughout
as

the increase in
business inventories will probably amount to between
$6 and $7 billion as compared with around $4J/2 billion
filled,

the

coming

Inventory accumulation will be another plus factor.
operate strongly on the upside in the early part
1960 when steel users are restoring their depleted

been

car

It will

stocks.

new

growth during the

served

industries

automobile sales.
In fact the
anticipating its best year since

production in 1960 will probably run between
million as against 5V2 million for 1959.

few of the

of average

the

1960,

Tsxpzying Servant of z GreztStete
A-8-60

Commercial and Financial Chronicle

The

Continued from page

come

for the

politicians to declare themselves.

Sim¬

plified there are just two camps—(1) Those in favor of
honest money and the protection of savings, insurance
and pensions; and (2) those in favor of dishonest print¬
ing press money and the destruction of savings, insur¬
ance and pensions.
The voters should find out in which
camp their representatives for office belong.
Booms need increasing amounts of credit.
Between
1946 and 1958, governments, corporations, and individ¬
uals borrowed some $435 billion. There is an ultimate
which credit cannot be expanded. Booms
always have a beginning and -always have an ending.
Foreign distrust of the dollar and the absolute necessity
limit beyond

interest rates to prevent an even more rapid
gold are working against the extension of
the present boom, and raise a serious question about
the overall business activity for 1960. These factors cast
a serious cloud and cause me not to share in the unlim¬
of

high

outflow

ited optimism expressed by

growing interest of Mainland capital inHawaii—as illutrated by the Sheraton purchase of the
four Matson hotels and the Equitable Life Assurance-1

at a

very

steady level

Empire State.

areas

increase

the

1959 has continued

reported from Utica, N. Y.,

clouds
for

the

industrial

from $88 million to approximately
$200 million. '
'-T ri
'
There is every indication that the fast economic pace
of 1959 will be maintained through 1960.

indicated

in the

depends

Home

construction

anticipated

are

level

been

has

our

1960

These home starts have
in the
price range and
there is no important surplus of new
the present time there are no large,
during 1959.

for the most part taken place

Charles W. Hall

homes

and

low

unsold. At

moderate

heavy building contracts under way and other than some
new

buildings to be needed for our growing population
there is not much construction

schools and colleges

pending.

: V":':

'■

A few miles to the west of Utica is located the

Griffiss

Air Force Base which is the military

supply base for the
eastern seaboard.
This base, which has been increasing
in its importance to the government, is presently employ¬
ing approximately 8,000 civilians and the total payroll
is now running at a level of $45 million per annum.
It
has
a
very
influential and important place in the
employment of this Central New York area.
There have been steady gains in the banking deposits
of this area and at present all normal needs of the people
are

being met at

satisfactory level. The general outlook

for Central New York in a broad sense is favorable.

CARL

HANSON

President, Bishop National Bank of Hawaii

which has been growing at a
the nation as a whole in the last five
years, broke practically all records in 1959.
Added to
the underlying growth forces were (1) the achievement
of statehood after 50 years of con¬
certed effort, and with that the sud¬
den development of intense nation¬
wide
business
interest in
Hawaii,
and (2) the inauguration of 600 mph
jet
air
service, resulting in the
closing of the time-distance gap be¬
Hawaiian

The

economy,

faster pace than

tween

Hawaii

the

and

rest

the

40%
itors

from

bringing

overseas,

bors

During

the

year

ment

reflected

were

4V2%

in¬

World

War

II.

With

the

labor

n*rket. already tight at the beginning
of this increase was

of the year, much
possible only because of a net inflow

res^dents from the Mainland, resulting

growth

nearly twice

,®a"ks and
l'y

other

the

normal

financial

rate.

in population

institutions,

course,

•

during the

year.

Total

bank

de-

vlrihf" 10%. during the first six months
Hawa Vhhnl
t7 greasing the loan-to deposit ratio

of the
of

thJnn* ans? hanks to

figure

in excess of 50%.

thatexists'Ft'hnC'n?•the samefor themoney
tight
nation—and

across the

same

Hawaii

Scott Corporation

of the nation's most prosper¬

one

ment.

century,
of modifications

been

kept

The

service.

new

big demand for ex¬
penditures for harbor facilities. In¬
land ports will mushroom and coast
George W. Hanson
norts must improve to say in busi¬
ness."
Senator Allen J. Ellender, Louisiana, Chairman
of the Subcommittee on Public Works of the Senate Ap¬
way

creates

propriations Committee, in an article titled, "The Case
More Spending on Water Resources," in the Nov.
16 issue of the "U. S. News & World Report," said, in

for

asked annually to pick

part, "The American taxpayer is

the check for river and harbor, flood-control, irriga¬
tion, power and other resource-development projects

in
on

Security Program
essential to the
countries.
Yet, the

foreign countries under the Mutual
the
basis that such projects are

economic

development

those
'We cannot afford this pork

individuals who cry,

same

when Congress appropriates money for the de¬

barrel,-'

velopment of America, urge even larger appropriations

I think it is high time for the United
States Government to start thinking and planning as
much for the Americans of the future as we do for the
for

foreign aid.

growth of other countries.

future

I am

...

little sick

having the pork barrel label placed on water-re¬
source-development projects in this country."
of

Owing to larger and deeper-draft vessels, and the
ever-increasing number of industries seeking "waterside
locations both for expansion and new plants, improved
harbors and channels are imperative.
These important
facilities must not fall behind the Nation's growth in
directions.

other

economy

dependent'

the

ours,

optimism

dustry leaders indicate that produc¬
tion

this year may climb

130-million

tons

high

13-million

—

tons'

"more than the record output of 1955.
As

result of

the prolonged

only 93-million
last

Robert E. Harvey

strike,

tons were produced
;

year.

Merritt-Chapman &

■

Scott

Corpo¬

operations are tied closely to the
barometer reflected by the levels of steel

diversified

ration's

economic

Our Company's industrial units include the
Department, Milton Steel Division and
three major subsidiaries—Devoe & Raynolds Company,
Inc., New York Shipbuilding Corporation and Tennessee
Products & Chemical Corporation.
Two maritime serv¬
ice activities, marine salvage and derrick heavy-hoisting,
round out Merritt's roster of operations.
Construction, the nation's biggest single business, may
hit near-record levels this year.
In the fields of heavy
production.

Construction

and

contract

construction

industrial

new

awards

the United

are

States, 6%

alone,

over

show that
$21.5 billion

surveys

expected to top

1959 and just under the

peak of $21.7 billion set in 1956.

all-time

Of this total,

billion will be earmarked for private construction
and $10.5 billion on public works ($3.3 billion for high¬

$11

T''^v
-'TV,,/
U. S., scores of major new projects are
planned in Africa, Asia, Europe and South Americaall spurred by the common goal of greater economic
development. They include hydroelectric dams, high¬
ways, bridges, pipelines and power stations.
Construc¬
tion of enlarged airport facilities to handle the huge
new
airports of the jet age is contemplated by many
foreign countries. On the basis of past experience, it is
fair to assume that U. S. contracting firms probably will
ways)..

Outside

the

be awarded

large share of this work.

backlog of $220,000,000 at year's end that in¬
three of
America's biggest competitively bid

With

cluded

Construction Department entered
at a peacetime peak. Its scope of
operations encompassed the U. S., Canada, the Panama
Canal Zone and such distant points overseas as Iran,
Merritt's

projects,

Industry and commerce follow the dredges; that fact
is too narrowly realized. When the Houston Ship Can-

plants and

new

of the
steel industry offers strong basis for
confidence in 1960,
Surveys of in¬

uneconomical

St. Lawrence Sea¬

'steel

repairs

and

Spending for

equipment may hit an all-time high.

the turn of
but through a patch¬

have

I960 with employment

nal, connecting Houston with the Gulf of Mexico, was
first proposed it was derided as the "damnedest fake

Israel

out of doors."

struction

Instead, it has made Houston the greatest
city in the Southwest and, more than once, the second
largest port in the Nation. Relatively, many other such
examples can be cited and many such opportunities

still lie ahead.

being

our

largest customer

(and

activity in

our

a great extent upon the amount Con¬
decides to spend for the development and improve¬

world's

near-record

Perhaps

the

concerning
We

The

significant observations
metal

mining

are

made

all

know

that

the

United

States

losing gold

there

are

many

have

most

may see

Silver presents

Throughout

the

market

duction and the

reasons.

in recent years

in point.

of the nation's major manu^
paints and industrial finishes, is

one

The automotive, appliance and equip¬
the company's larger custom¬

ment industries are among

and 1960 prospects are bright in these fields.
of automotive finishes can be expected

Devoe's
to

in¬

metallurgicals, fuels

and

building mate¬

steel

production, account for a large share of Ten¬
and the company's volume is accord¬
ingly tied closely to conditions in the steel industry.
Steel's anticipated record year is expected to result in
the greatest demand for ferroalloys since 1955.
Since the reinforcing steel produced by Merritt's Mil¬

nessee's

is gainThe United States cannot
produce at South African yields and

our

consumer

product lines of Tennessee Products
& Chemical Corporation.
Ferroalloys, a key ingredient

interesting situation.

happening to

trends.

Raynolds,

Chemicals,

Africa produces and

are

quickly

rials comprise the

ing gold.

what

case

operations

for example, if automobile manufacturers realize
their production goal of 7,000,000 cars this year.

gold

is losing gold.
Gold is the great common denom¬
inator. In its reflection we

product

crease,

properties capable of producing ore
of this grade, but prevented
from
operating by higher costs. Herein
we

Scott's

sales

ing in the mining of gold. In South
Africa, the average yield per ton
of ore is $9.20 (U. S.
funds). In the
States

Devoe

already hps approved.

short-term delivery basis and react

on a

to economic

ers,

are many, but are best
in the light of what is
happen¬

United

vessels it

facturers of

reasons

seen

preparedness programs are advanced, and on. the
to which Congress appropriates sufficient funds

Merritt-Chapman

centered

economic battle for survival.

shipbuilding industry will depend both on

vigorously the merchant marine replacement and

how

largely
be

entered

ahead for the

the precious metals, gold and silver.

around

in the

most

non-ferrous

employment.*-

peacetime

backlog pf $260,000,000 that insures a high
level of activity into 1962. The volume of new business
1960 with

to build the

HARDY, JR.

rate of con¬

by the launching of the NS SAVANNAH, the
first nuclear-powered passenger-cargo vessel—

lighted

naval

of the Nation's channels and harbors.

We expect our high

and Australia.

activity to continue this year.
New York Shipbuilding ended 1959 — a year high¬

with
Sam

dep«ids to

South

e ,ln these developments. Bank loans
■r°sl 14% during the first half of 1959 and appeared
a
20" 25? ? ratG °i r-se during the sec01"* half, for
increase
niw

& Pacific Co.

Carl E. Hanson

during the year, with unemploy¬

are

ROBERT M.

„

developments

in employment
the lowest since

1960

for

years. With the settlement of the steel dispute, only
possibility of work stoppages in key industries poses
major threat to the upsurge in business predicted by
government as well as private econ¬
omists. Nearly every branch of our
economy is expected to reach record
levels
of * production
and employ¬

President, Sunshine Mfining Company

products, envelopes, steel reinforcing rods, and a wide
variety of other items. Overall, Hawaii's basic agricul¬
tural industries
(sugar and pineapple, primarily, but
including coffee and others) registered fair to moder¬
ately successful records. Defense activity continued at
a
high level.
These

look

extent

were opened or started for the
pro¬
duction of refined oil
products, cement, plastic cups, steel
pipe, boxes and cartons, corrugated containers, rubber,

crease

the

work

ment

plants

new

HARVEY

ROBERT

President, Merritt-Chapman &

inadequate even before
the

1960

the

not only non-ferrous metal mining,
segments of our economy, will suffer.

Many of the piers still in use were

gress

year's total to close to the quartermillion mark.
Construction activity
rose
by 20% above 1958, to a vol¬
ume nearly double that of five
years
ago.

HANSON

competing as well), we reaffirm that

a
result, Hawaii recorded a
increase in the number of vis-.

occurs,

but also the other

states, "Our ports and har¬
antiquated,
inefficient.

message

WithOJncle

world.

dollar

the

gold, does not forecast an optimistic
dollar. As further depreciation of

the U. S.

issue, "Engineering Newspublished a message titled,
"Needed: a better 'public plant' to
serve
our
growing nation." Underone
of
the
several headings, The

they

the same
experience

loss

for

Record"

give

for

starts

at. about

the

with

future

March 26

coming year.

compound the drain.
/
The net result is loss of silver which, when combined

appropriation decided on by Congress for harbor and
channel improvements.
Many projects with great po-<
tential benefits await action. In its-

10% increase

than

the outlook for the dredging in¬
largely on the amount of the annual-

there will be at least

alone is consuming more silver in coinage
is produced each year in the U, S., and the sales

the Treasury

year,

better, than the past year.
This will
mean
good employment,
reflecting a strong purchasing power
that bids well for a high level of
retail sales.
The anticipation is that
equal,

not readily replaced, for

that is

asset

of an

Treasury

ous

GEORGE W.

volume of business

of silver, but we see supply and demand bal¬
anced by sales from the U. S. Treasury at prices below
the world market. This bargain sale is stripping our
coinage

Hawaii

investments

insurance

life

A current review

leaders

anticipating

are

that

100

Thursday, January 21, 1960

Today the trend is toward greater foreign

other lands.

the last five years

in the heart

horizon

concern.

last

the

been financially

historically

Looking forward into 1960, we find

cause

of a new 50-acre shopping center.
of the world which have developed;

years, the new State.self-sufficient because
of a high rate of personal saving.
In fact, until recent
years, Hawaii had been a capital export area. Changing
saving patterns, rapid economic expansion and need
for funds, and growing Mainland financial interest in
the islands have now altered this picture, as shown by.

economies

their

has

dustry

& Trust Co.,

busy and important industrial city located
of the

most

As it does every

Utica, N. Y.
The general business climate during

financing

Society's
Unlike

Treasurer, Atlantic, Gulf

HALL

President, The Oneida National Bank

the

was

most for the year 1960.

CHARLES

during the*

financial development

Another interesting

■

vear

has

(322)

ton
.

business

Steel

Division

sold

the

construction

the near-record volume of work expected

enable this M-C&S operation to con¬
high level of activity and employment. ,
While marine salvage activity always is governed by
the unpredictable freciuency of accidents at sea, Mer¬
struction

Robert M. Hardy, Jr.

economy.

a different story with a similar
ending.
world, consumption far exceeds pro¬
supply has been balanced with demand
by demonetization of silver coinage in

industry,

in heavy con¬

tinue at

should

ritt's Marine

Salvage Division generally is most active
ocean shipping is heaviest.
Opera¬

when the volume of

tions of

our

Derrick Division normally reflect the

ton-

Number 5918

Volume 191

The Commercial and

...

Chronicle

(323)

of. heavy cargo shipped through the Port of New
When the volume rises—-as it usually does in
boom
periods — there is a resultant increase in th^
demand for derrick services.

nage

York.

with

common

almost every

segment

The Economic

Outlook for'60

America's

business community, Merritt-Chapman & Scott looks to
the months ahead with confidence.
We share with all

the hope that setbacks dealt the economy in
1959 by the extended steel strike will be more than
compensated by the advances realized in 1960.
industry

Continued from
the

overall

10c/r,

plant

peak,
rate.

Sheraton

President,

Corporation

America

Everything seems to point to a record year, now that we
have reached the beginning of what may be known as
the Spectacular Sixties.
Although labor disputes may
temporarily reduce the nation's momentum on its path
to greater achievements, even such
tiisfortunes—by creating a backlog
demand—seem

further

guarantee

rates

realizing

that

than

and

the

equip¬

Sheraton

our

sults

greater

stockholders. Surely

than

from

recovery

the

that

Ernest Henderson

affect adversely

conditions,
and

our

econ¬

business

downward

transition
peace

decade

should
and

seasonally

this

year

were

registered
quarter

ex¬

increase

this

from

35%,

that

expect

outlays

CHEMICALS & PL AST ICS—Cyli nder

heavy clay and fine ceramic products are
extremely abrasive. Parts subjected to

liners that compress gases to

35,000 p.s.i. Steel liners, distorted

liners, grinding rolls, etc.) are often made

Kennametal

from Kennametal for longer

solved the problem.

life.

would

turn

the

inventory
to

out

the

And the

low

quarter

with

44%

the

depletion

steel

situation

scene.

strike

and

has

may

the

resulted

During

tons of steel beyond steel
consumption in order to restore a

reasonably normal level of inven¬
tories.
But this is by no means
of

end

The fact is

Cincinnati, Ohio

generally
issues before the

relative

expiration of the Taft-Hartley injunction, and assurances

for

than hardest steel.

the

METAL PRODUCTS—Kennametal tools

for metal cutting often

triple machine out¬

put and greatly reduce costly machine
downtime. Production savings
ucts of the

bring prod¬

metalworking industry to

market at lower cost.

inventory story.

that

inventories quite

are

the

labor

strike,

should

will be resolved without
usher in an extremely high level of
business activity during the first half
of

During

AIRCRAFT-MISSILES-ROCKETS—

side

the

ment

Year,

the

needs,

service

effectively

Several remarkable characteristics of

end

es¬

after

the

Christmas

Initiallyt

for

requirements

government se¬

use

This, in turn, could place the Treasury in the
of
seeking buyers elsewhere for the large
weekly bill maturities now held by these corporations.

nomic

First

activity

half" of

cessive

tive,

so,

use

indications

and

strong

credit

demands during

the

However, over-indulgence—the ex¬
of credit—ultimately brings its own correc¬
events unfold, we always must be alert for
I960.

indigestion in the consumption field, a
certain forerunner of a cyclical reversal of the busi¬
ness

trend.

Continued

page

billion

would

the indicated

systems, automatic pilots and gyro-

power

units and unlubricated seal rings

are

made from

are

made from tantalum powders and

Kentanium.f Capacitors

anodes

produced by Kennametal Inc.
platinum-base material, is used
in seals and other parts in contact with
highly corrosive rocket fuels.,

re¬
'*> >

K501,

•

accumulation
about $10 bil¬

were

inventories

tion

Current mass consumer confidence reinforces the dis¬
tinct likelihood of the materialization of high level eco¬

accumulation

has

been

easy.

some

will

items

Nevertheless, it is

able to expect that
substantial

not

reason¬

1960 will
for the

pressures

see
ac¬

cumulation of stocks of goods in
the first half of the year, and

quite probably well into the second half. For the year as a whole
an

accumulation

seems

not

unreasonable

billion
at

the

present time. About half of this
WOUld
represent
the
current
short-fall in stocks, while the re¬
maining I expansion
would be
needed to service rising levels of
sales.
The

qutlays

remaining item in capital

is, if

course,

How many

im¬

proving.
And during the fore
part of the year rapid accumula¬

position

atmosphere of this kind banks, at the very time
they might be laying plans to meet the increased credit
requirements of all type of borrowers, would be re¬
quired to give major attention to the Treasury's needs.
The fusifln of the Spring credit demands into this situa¬
tion could greatly intensify a relatively tight credit
situation.

stocks.

well not occur. In¬
heavy relative to
sales by the end of 1956. Credit
will be tight.
Efficiency in the

curities.

ance

stabilizers. Temperature sensing ele¬
ments for jet engines, ground support

The full extent of the latter

ventories

might result in the
corporation invest¬

ments in short-term

justify

accumu¬

existed at the

many com¬

increase may

accommodate the broad inventory

liquidation

itself

highly suitable for

ponents such as integrator discs in guid¬

year

1960 would

lion.

needs of industry

G. Carlton Hill

1955,
$6

year,

usually develops
Holidays.

the predit

Kennametal hard carbide alloys have
made them

quired in 1960.
If the year-end
1956
inventory-sales ratio were
to be achieved by the end of next

moderate,

that

credit demand

about

the

highly

If by
inventories
brought into the same rela¬

tionship to sales-

active
if - not.
nullify, the temporary relaxation of
requirements
of
could

economy,

will

of additional

end

were

re-establish¬

inventory

other

sential

simultaneous

levels

indeed, require the

lation

initial quarter of the

the

inventory rebuilding in
steel should be in full swing. Fur¬
ther,

activity

ness

and,

1960.

New

all

— manufacturing,
whole¬
sale, and retail. And the antici¬
pated further expansion of busi¬

that the railroad labor problem
a

sales

low

activity

steel

mining tools produce low-cost coal
generating steam and electricity.

items.

million

HILL

metal

20 times longer

Obviously

1960 the steel industry apparently
will need to produce about 12-15

POWER—Efficient, long-lasting Kenna¬

jet nozzles for drill bits made

of Kennametal last up to

inventories

PETROLEUM & GAS—Oil well pump
valves and

sleeper in

economic
steel

the

would be

year

compared

the

President, The Fifth-Third Union Trust Co.,

Sleeper in Inventories

The

good

settlement

(3 times stiffer than steel)

corresponding period dur¬
ing the last expansion.

enjoying the bonanza accompanying Hawaiian Statehood.
The four Sheraton hotels recently acquired on Waikiki
Beach and two new ones now under construction furnish

final

make poly¬

ethylene must withstand pressures to

for the

1960

quite tangible foundation for an optimistic view of
year ahead.

CERAMICS—Materials used to make

greatest wear (pulverizing hammers, mold

10%

rise,

slightly above those of

about

The greatest single advance in our industry will prob¬
ably be recorded in the Honolulu area where hotels are

of 1958 to year-end 1960 would be

the two prin¬

are

equipment

expansion

units.

lif

periods

1957 peak in rent terms.

manageable—as was our
half ago from a wartime to a

business travel

quarter

While

only

CARLTON

KENNAMETAL

appropriations; in

by the end of next

These are likely to
break all records in this 60th year of the 20th century.
Sheraton expects accordingly to break all its own prior
sales records, even after adjusting for newly acquired

page

increase is realized, these
outlays

spiral.

cipal feeders^ for the hotel industry.

strong expansion, it does not im¬
ply any lurching boom.
If this

economy.

Tourist business and

Continued

businesses next year will be close
billion above their 1959 vol¬

much desired termination of our differences with Rus¬

transition

may,

to S5

bring about a cut-back in armament spending. Al¬
though heavy, dislocation of industry would follow from
the

1960.

basis

and

ume.

(2) The possibility that peace talks will be successful

expansion

reasonable

plant

and

sia,

other

third

seems

tary policies in their desire to curb inflation in the face
rising wage demands, and discourage drains on our
gold reserves, may precipitate through tight money, an¬
other stock market collapse.
Such an events—by dimin¬
ishing the liquid wealth represented by common stocks
new

construction

help make for you?

On the basis of this evidence

Residential

however, exert only limited fur¬
ther downward pressure on the

How many things does

uajtv

between these quarters in 1955.

(1) The possibility that those who influence our mone¬

start

given
current
FHA
rates,
make financing

ly lower in the third quarter.

sub¬

I960

ceeding slightly the 9%

are:

—could

good

into

became

appropriations

national prosperity

our

indicating

second-to-third

in.

may

latter

the strongest since 1955. And with
the steel industry excluded these

The two question marks presently visible
omy

October to No¬
decline seems likely to

6.7%, the highest in

was

for

year

taken

.adjusted

shareholders, since
^
workers receive such a large proportion of the available
dollars

quarter

four years, and it was only slight¬

greater stake in efficient opera¬

even

tions

some

rate for rental units in the second

Information
about
corporate
appropriations for capital expen¬
ditures
also
indicates
a
strong

Company

must become clear that labor has

that

now
being
1,200,000 annual

tendency around this
stage of the upswing for actual
outlays to exceed planned out¬
lays.
;■'/ *; •.

nearly $20 go to employees in wages
and benefits for each dollar paid in
dividends

I960,

the

probably

carry-over

shows

alone can produce
higher wages without the accom¬
panying
penalty: of
higher
price
In

for

are

Costs
once
again are
moving upward. And the vacancy

of the steel strike this
year. More¬
over, a study of these survey re¬

productivity

levels.

for

projects

stretching-out of prosperity.
hopeful signposts point¬

perhaps

1959

stantial

ing towards greater economic growth
are the indications that labor leaders
,

increase

news

The most

are

part

difficult.

are

While starts exhibited

outlays to a rate of close to
$40 billion by the end of 1960. For
thing, the. recent CommerceSEC
release
showing
reduced:

HENDERSON

units

and

started at about

ment

ERNEST

These have already
from their May

over

continue somewhat further. Credit

increase is

bringing

fallen

vember,

page

construction.

residential

things

help
If you are

can

you

make?

concerned with industrial production

lock around your operation. Ask

what

KENNAMETAL

take

yourself this question

out first? Chances

are you can multiply its pro¬
times and reduce costly machine downtime
by making it from (or reinforcing it with) Kennametal. For

wears

ductive life many

information write Kennametal Inc., Latrobe, Penna.
972 7 S

♦Trademark of

series of hard carbide alloys of tungsten,

tungsten-titanium and

-tantalum.

tTrademark of

series of hard titanium carbide alloys.

KENNAMETAL %c.

-n

Continued from page

To this end, its

performance in 1959 was

atory.

HEWITT

WILLIAM A.

.sales

receipts

reached

billion

$34.3

declined to

each

Preliminary estimates for
a further decline. In
of1 these years cash receipts

from

crops

1959.

1960

anticipate

expected to remain
fairly constant at about $14 billion.
The

decline

that

and

date

ex-

t>ected in 1960 is accounted for by
lower receipts from
marketings of
livestock and livestock products.
Conditions such
result

industry

erately

sales.

lower

financial

position of
remains strong

group

William A. Hewitt

purchasing

their

power

The

for

life

larger capacity farm machinery continue unabated. They
form

solid

future and

entirely

foundation

should

the

for

somewhat

influence

optimistic view

lessen

of the

are

very

CHARLES

the almost

Chairman of the

the end of the War will continue, given
during the coming year

new

investment.

possible that a rate in the neighborhood of
be attained.
Unfortunately, as a consequence

entirely
will

of the

higher rates of Federal tax which have been im¬

posed upon life companies, the cost of insurance to pol¬

HOFF

lowered in proportion

icyowners will not be

higher

of investment earnings.

rates

Board, Union Trust Co. of Maryland

even
some

ultimate effect of

the

steel

dence

strike.

available

fundamental

There is

make for

today
uptrend

evidence that the economy was in

period of prosperity, having made
recovery from the doldrums of the
recession.
However, just
activity was fast picking up mo¬
mentum, the steel strike seriously
upset the picture, especially among
the

to compete for

Vice-President
John Hancock

the

beginning

Mutual

C.
&

The

economy

recovering both broadly and briskly from the most
recession

since

the

end

the

War.

strike, which is estimated to have
indirectly — upwards of a
million
in

workers

year

the

industrial

alone,

month

for

achieved

The

new

other

ready

actually at the threshold
level implicit a

year

the

unexpected,

mean

services,,

^The

surpass that

for the year

as a

will
year.

sum

law restricting branch powers of savings banks
help to provide efficient savings banking service
fast-growing suburban areas.
■

the best

ended

year

in aeroquuip's

fact

that

efficient

have to be

Sept.

history,

equipment and

must"

all

the

nation's

capital

with

prepared

30,

1959,

record do¬

up-to-date

times.

goods

the

Turnabouts

right

industries.

third factor that

improves the outlook for all sav¬
ings institutions has been the increased stability of com¬
modity prices. The wholesale price index registered little
change in 1959, small increases in other prices being off¬
set by lower food prices.
The cost of living index rose
less than in the previous year. Waning of public fear of
inflation

highlight

they

overseas.

aware

of the "revolution" that is

economic
this

life.

1960

will

the

have

been

taking place in Europe's

than

spectators to

development and have initiated the construction of

plants

Baden

The
The

Baden and Hannand Muenden

Germany, In addition,
sidiary in Switzerland

formed
serve

West

wholly-owned sub¬
a
holding company

^uUr*expanding foreig". investments.
The
financial health of
nearly

remove

threat

serious

over¬

offer higher yields than other classes of
With a larger volume of new cor¬

all of the

nations

IRVIN

Idaho

First

National

begins

Bank, Boise, Idaho

high level of optimism
prevalent in most sections, and this is also true in Idaho.
new

year

Idaho

The

satisfactory
fair

economy

from

the

and

abreast

sound,

standpoint

have

products.
soil

farmers

productivity of
efficiency of our

decrease

products

and

farmers

paid

goods and

keep

increasing costs and show

been

The

the

amount

continual

has

general 'business

only
agricul¬

our

progress.

point out the latest figures reflect
ceived

1959

and
of

received

have enabled them to
of

normal

with

prices for most of

tural
our

the

for

re¬

all

increase

prices

all

farm

prices

necessary

services. '

serious

and the'present
surpluses aggravate the situation. We
need the production because we have
—

William E. Irvin

expanding population and untold
growing acres are going

numbers of

of production each year—to industrial installations,
expansion of urban areas, and to road construction.

out

Vision
sound

tion

needed

keep

condition to meet

our

agricultural

plant

almost immediate

produc¬

requirements.

Mining, another great industry in Idaho, is suffering

both

activity by American enter¬
Aeroquip, we have been very much

prises

would

Executive Vice-President,

facilities,

effect

anticipate that

conditions.

further growth of business

were

peak during 1960, and the record
whole surpass that of
any previous

production, employ¬

income.

is an accumulation of
plans for capital
expenditures that should provide the thrust to lift our
economy upward to unprecedented heights.

normal

economy

banks

other

and

would

WILLIAM

physical and technical, to take advantage of this.
Of course, our attitude is not
unique. It is based on
views and experiences shared
by many corporations.

national

savings

mutual

high
quality mortgages from 64 to 66%. Because of the at¬
tractive rates of return given by mortgage loans, the
higher proportion of mortgages increases earnings and
so makes possible the payment of higher rates of inter¬
est-dividends to depositors by many institutions.

sell

promising. The con¬
labor harmony, 1960 will see

that, assuming

was

progress

a
$500 billion
economy, a
forces making for a return

the

whom

to meet challenges.
Another impetus behind our capital
expenditure pro¬
gram is the high expectations we have for the future

°f operation> anniented by

gmwth

Barring

ago in

and

assets

Government-underwritten

invested

unexpectedly and competition intensifies very sud¬
denly. There is never a period of grace
which, allows you

" New

goods

nificant has been the increase in the

earning

proportion

Peter F. Hurst

to "get into shape"

By the end of 1959, in terms of
gross national product
expenditure

that characterizes the

come

economy.

total

savings banks to strengthen
competitive position. Most sig¬

their

bond offerings in prospect for 1960, however,
savings banks are likely to add substantially to
their holdings of such issues when they are made avail¬
able at relatively attractive yields.

the

facilities

Dr. Bishop C. Hunt

mutual
August Ihlefeld

porate

laxity in periods of high sales and earnings. Another
lesson taught us by the recession was the
clearly dem¬

growth at the average
of the last 40
years.
The strike but inter¬
broad and soundly based
upward thrust in our

improving

many

rate

rupted

was

staunch

the

reflected

strike

the

mestic expansion program was started.
Like many other firms, we learned a
great deal dur¬
ing the 1957-1958 recession. One lesson was the danger

underlying
annual

and

which

pre-deprression

levels by an amount which

steel

1960

erations.-During the fiscal

steel

became apparent.
production had al¬

words,
to exceed

development

quality investments.

bitious expansion program in
Aeroquip's 20 years of op¬

strike

come

second

savings bank deposits
has been the taking of steps by the

long

significant forces at work in 1960 will
large backlog of capital expenditures. With the
general business outlook as favorable as it is, industry is
very anxious to establish the necessary facilities to take

peak levels in the output of the na¬
tion's factories and mines were in
fact attained before the first effects
of the. steel

the outlook for

Mutual savings banks will continue to regard mortgage
as
a
favored investment outlet for new funds so

One of the most

low

Spring of 1958.

the

until

records established in national

ment

completion of recovery
point
of
recession

the

reached in the

onstrated

virtual

the

from

particularly keen competition
banks.

loans

un¬

strong and the outlook is most

sensus

was

significant dynamical feature
year's production record was

the

effect of

postpone

record.

products represent a typical cross-section of Ameri¬
can industry and we are
finding growing confidence in
every direction. Inventories are relatively low, demand

new

hanging the growth prospects of all savings institutions.

the

advantage of the opportunities that our growing nation
and economy will afford in the years ahead.
On our part, we have already launched the most am¬

idled—directly

amounts

for savings

chronic

goods.

cover

encountered

The corporations to

severe

the

large

high-yielding

vided

our

October

production

whole

Despite

offer

a result, the
will have less

short-term obli¬
gations,
tailored
to attract
liquid
savings out of thrift institutions. Last
October's offering of "magic 5s" pro¬

HUNT

national

capital

present status of America's economy.
The economy is all set to move full
speed ahead. • •: ;
:
•

Economist,

the

occasion
new

of the capital goods in¬

tide of progress

funds. While

Life Insurance Company

1959,

customers

happily familiar pattern of requests
to postpone deliveries.

balanced budget
new

range

dustries,

BISHOP

Aeroquip's

entire

tight money may reduce new housing starts, it will not
too seriously affect investment in fixed
assets where
appropriate—nor for that matter with the sales in the
automobile and appliance industries.
*
Also helpful will be the expected gains in exports,,
which declined in early 1959.
One main objective will be an inflation free economy,
but to achieve this will require a great deal of effort
from government and private sources alike.
In Baltimore, with highly diversified manufacturing
and commercial interests, the economy may be expected
to follow the national upward trend.
DR.

manufacturers

reduces ithe needs of the U. S. Treas¬
ury

admirable

1957-1958

Money rates will hold at present
levels, and may well rise a fraction
under the law of supply and demand.
Even in a tight money market funds
will be available for plant expansion
Charles W. Hoff

the strike is resumed.

the early stages of

renewed

prosperous year.

making towards bal¬

State's

Prior to the steel strike, which dominated the business
scene
in the last half of 1959, there was convincing

ample evi¬
to indicate
which will

possible that the steel strike—
regardless of the serious shortages it
caused—may have prevented or at
least postponed a recession. Depleted
inventories
are
being rebuilt, but
damaging consequences may result if

HURST

President, Aeroquip Corp.

It is

—especially

PETER

1960 opens upon a firm economic foundation,
though accompanied by a sense of uncertainty in
quarters due to inability to measure precisely the

budget.

Mutual
savings banks also are strengthening; their
competitive position by improving service to depositors
and conducting effective educational and promotional
programs to stimulate thrift. Liberalization of New York

Baltimore, Md.
The year

its

United States Treasury

(before taxes) on

certain maintenance

of current levels of interest rates

difficult to predict.

ancing

investments rose from 3.85% to 3.95% in
no reason to doubt that the upward trend

in progress since

although not offset

receipts in 1960.
As usual the weather and government farm programs
will play important parts in determinng sales in 1960,

but these two factors

There is

available

for this expectation is

reason

Government

protection than ever before, not only

rate of return earned

average

company

1959.

lower! cash

One

against the hazards of untimely death or dependent old
age, but also against the costs of hospital and medical
care, and against the loss of income because of disability.

substantial.

The long run factors which create a strong demand

life company

for

the notable progress that the Federal

American life insurance—more people

However, the
farmers as a

and

despite the intensive competition
savings that prosperity generates.

expect the achievement of new records in
will come to enjoy

confidently

equipment; therefore, the most
probably outlook for 1960 is for mod¬

larger gain in deposits
was achieved last

year,

of high levels of general business activity
employment in the year ahead promises higher levels
individual and corporate incomes. We may, therefore,

farm

to expect

reason

savings banks in 1960 than

The prospect

sales

is good

of mutual-

''y"

IHLEFELD

AUGUST

President, Savings Banks Trust Company,
New York, N. Y.

and

these normally

lower

billion.

this hopeful outlook.

There

reached a new
peak of $534 billion, an increase of $38 billion during the
year; an increase, moreover, which exceeds the total cov¬
erage
in force 40 years ago. The industry's invested
assets—in other words, accumulated savings which are
the counterpart of insurance protection—increased ap¬
proximately $7 billion, or 6%, to the vast sum of $114
31, 1959, the total in force

ripe for a top year in 1960. Let's hope
single-minded short-sighted purpose stall

are

events

beginning of
inter¬

century, at least, it has experienced only one
ruption and that was both minor and brief.
As of Dec.

market

Conditions
no

truly an

States

United

the

estimated $33.2 billion

insurance

outstanding growth phenomenon. Since the

all-time
1958 and

Life

rate.

dustrial

life,

the'economy goes, so goes

these countries extremely'attractive in¬
places that cannot be ignored.

makes

Europe

Thursday, January 21, 1960

the growth
of life
it is a tact
that in periods of lesser buoyancy or even depression
its growth nevertheless continues, although at a slower

important single determinant: cash receipts from
farm marketings and government payments.
Farmers'

In periods of economic expansion,
insurance naturally accelerates. But

most

cash

said that

It might be

of the outlook for farm equipment industry
1960 necessarily begins with estimating their

high

clearly prepar¬

insurance.

& Company

President, Deere

Appraisal

Financial Chronicle

The Commercial and

(324)

and

unfortunate

situation. "Low metal prices
profit out of the mining business,
and that applies particularly to
lead, zinc, silver, and
cobalt.
Gold mining has come to a complete standstill.
We are stimulating and
encouraging foreign competition
have taken most of the

enable

our

This

pressure.

offshore

friends

Communist

survive

is being carried on under the
direction of the State Department and under the mantle
of foreign aid.
Right or wrong — good or bad — our
domestic

program

mining industry is suffering.

Lumbering in Idaho has been good, and the prospects
for the coming year are also
favorable, but one wonders
—with the extreme tightness of the
money market and
almost

absence

price—how long

mortgage

we can

money

reasonable

continue to have home building

and other construction hold up at the present rate.
The steel strike and demands of
industry and labor

Number 5918

Volume 191"

The Commercial

promise that the

not hold any great

squeeze on our

industries will be improved.
It is true, Idaho looks to 1960 with optimism because
our people
are resourceful individuals who can adjust
to meet .conditions and circumstances, which in them¬
selves would not make the future loom up like boom
times; but neither do we expect to go without the normal
luxuries to which we have become somewhat accustomed.
basic

(325)

and Financial Chronicle

Possible
Financing Difficulties
enough to provide reason¬
full utilization of our pro¬
Second, we might have difficul¬
ductive resources?
The evidence ty financing the expansion. This is
examined here points in an af¬ a ' possibility.
The demands for
firmative direction.
bank credit will be heavy to fi¬

large

The Economic

Outlook for'60

1960

President, Swift & Company

still

looks

would be

is ahead of us, with more goods
people to buy them.
With a probable 45 million additional people to feed
in the 1960s, and with the indication of increased pro¬
duction, there is great opportunity.
An expanded market is certain, and :\
a
steady rise in personal income
seems inevitable.
^
1
;
\ V,
,;
decade

dynamic

and services, more

will

There

1959,' but

thirds of

regarded

as,;

would

obviously

have

levels,

changing conditions and who utilize
to the fullest their knowledge and
research—product-wise and market-

wise.

consumer

This will be

in the 60's.

fast pace

something

per

plentiful

moderately during the
due to increases in supply
already in progress.
There are indications that pro¬
ducers
in
Corn Belt states plan a reduction in the
rise

spring pig crop. ."Supplies for the last part of the year
come
largely from this crop, so a reduction in pork

production for the last half of the year is probable. The
net for the year appears to indicate only a slight overall
gain in pork production. : .
•n.
Lamb> and
mutton
production for 1966 will show
-

•

some

tion
been

increase, and.a nominal increase in veal produc¬
is expected. The retention of calves in herds has
an important part of the recent buildup
in cattle

numbers.

Broiler
,:as

is expected to be about the same

LILCO will

THE

OUTLOOK

1960

considered

assuming that there are no other national

strikes

this

Others

year.

peient

make

are

com-

predictions

which

standard
indices,
theories on cyclical trends and fore¬
casts of production, construction and
merchandising. I feel that I can be
the most helpful by indicating what
needs
to
be done in
1960, if the
United States economy is to be made
based

are

the

to read

1960.

phasing in.
tivity -by the
'evident.

ing

1960

receptivity to new means for

achiev¬

productivity
through
increased
liberal tax depreciation

increased

automation encouraged by more

and
a
greater concentration on adjustment
assistance, particularly for affected individual workers,
by both government and business.
Also for some co¬
operation between management and labor under the

policies

productivity.
There will be increased emphasis on foreign aid and
technical assistance for development of less developed
free world areas as we recognize the dangers we face
in Asia, the Middle East, Africa, and South and Central
America from the Communist economic bid. It has be¬
come almost in the nature of a seduction of less devel¬
oped countries which are not too experienced in free
institutions, by the U.S.S.R., which has seemingly been
able to pull itself into the industrial age by its own
bootstraps—notwithstanding the sacrifice of free insti¬
tutions and religious and ethical values we hold often
than

itself.

life

extensions of
utilization of manpower on a scale we have
heretofore not even contemplated. I see new partner¬
ships between ourselves and the industrial nations of
Western; Europe, Japan, Australia, Canada and others,
The

new

economic struggle

will call for

credit and

taking firm root for this
In

the

field

trade,

purpose.

there

will

resolved

been

enormous

Continued on

page^74

growing

LONG ISLAND

These

outlays fell sharply early in 1D58,
this was a major exogenous
factor in the recession
The easy

explanation
the

like
with

square

sales

models

$32,000,000
will be

of these

held

that

fact

new

must

cars

not

did

people

that

new

the

same

through December 1957,

equipment such as transmission
distribution lines, and

major question regarding the
outlook

whether

con¬

lay

out

them¬

for

selves in the months ahead a weak

$11,000,000
has been allocated to gas

volume of spending on
durable items relative to their in¬
strong

most useful

The

comes.

the

when the nationwide survey

soon

this

completed by

just

consumers,

Research Center, has
Though the
analysis is not yet complete, I
understand the
preliminary re¬

the

Survey

been

indicate

some

short-run un¬

and misgivings, partly
associated with the steel strike. It
certainty

however,

looks,

for the erection of gas

confidence remains
unimpaired, and this would be re¬
assuring.
And,
with the steel
longer-range

this

expect

salubrious

effect

generally.

recently placed in operation at

to have a
the attitudes

consumers

seems

probable,

plans

buying

of du¬
rable items by consumers should
rise about as rapidly as their in¬
comes, with the possibility
of a
bit more strength with the im¬

therefore,; that

passe

the

purchases

steel

industry

Let

now

The

out.

look back over our

arithmetic

implied

analysis suggests an increase

national product from
1960 of roughly $30 billion

gross

1959 to

—government, up $5 billion; some
improvement in net exports; plant
and

equipment outlays,

$4 to

billion; change in inventories
of $7 to $8 billion, up perhaps $4
billion
from
the 1959 average;
residential
construction, down

perhaps $2 billion; and purchases
of
goods and services by con¬
sumers, up $18 to $20 billion.
At

the otitset this

expenditures for construction

plants and equipment to serve Long Island ■
consumers have totaled over $236,000,000. And the '
new

1960

budget exceeds last year's by $3,000,000 to

meet the needs

construction all

analysis and see where we come
this

In the last five years

of the industrial plants,

commercial

establishments, apartments and homes now

Potential Demand

Brentwood, L. I.

re¬

solved fairly promptly.
Sums Up

and electric

operations centers similar to the one

strike settled, it would be reason¬

able

superior fuel in home

$5,000,000

if their

constantly growing demand for

and business.

fully analyzed.

sults

properties,

mains, and other equipment to meet

evidence

will be available

this question

lines,

substations.

confident

feel

prospects

spent on new electric

generating plants and other related

very

though business activity had been

demands of the public to increase

dearer

to serve

and

The urgent need for increased produc¬
American economy will become more

I look for

this'

have

should

and

Sen Jacob K. Javits

ap¬

the

events of the last two "years.

also

year

have,

propensity to con¬
sume.
Any lingering doubts about
the
passivity
of
these
outlays
of

bility

will mark the in¬
tensification of the economic struggle
with the Communist block.
We will
see
more
clearly than in 1959 that
the cold war of aggression, subver¬
sion and
invective is phasing out,
and that the grim economic struggle
The

upon

rather than by endeavoring
"crystal ball" of business

secure,

durables

parently, never heard of the sta¬

enough
about their economic situation and

$48,000,000

incomes.

sumers

York

all sides—in view of the settlement of the

steel strike and
emergency

FOR

parts :of

inventories.

current

JAVITS

Senator From New

BUSINESS

promising

JACOB

such

spend

short-run

other

the economy,

HON.

declining for some months.

1959,. remaining at close to record levels.

minimum

repercussions

well right

production

page

this

Outlays

this year.

production should
first half of 1960, .largely
Pork

of increase.

rate

year

Outlays for nondurables can also
expected to behave with a rea¬
sonable degree of circumspection,
turning in a rise roughly parallel
to
the
expansion
in 'consumer

of medium and lower grades of beef
larger than during the same period in 1959.
Supplies
of better
grades; of beef should continue about as

Continued

to plod

produced in 1956 and about 1 billion more than in 1959.
; If government forecasts prove correct, there will be
an increase
in beef production in the last half of 1960,
supplies

l%v

been

services, be¬
item .that it is,

have

"•with

have

output of goods and

highlighted in the first year, as total
p-M- Jarvis v
meat production is likely to set a
new record—slightly higher than the 28.1 billion pouods
•

member

Consumer

kind

is reasonably
safe, it is
reasonably unimportant since
this is heavily an imputed item,
is quite steady, and its changes

KThe meat industry promises to set

year-to-year changes in
bank
deposits recently
only somewhat over
Moreover,
internal
.bank

Indeed,

the

—

also

prospects for orderly and sus¬

Federal Reserve can
be expected
to keep
reserves
under tight rein.
the

Services'

doubt be expected

billion

-x'v.'

re¬

jeopardizing

garded as something
the

to be

fairly in¬

fairly strong out¬

short, for about two-

our

services.

erally

Consumers

the

can

alert

are

look,

probably
bank

inflationary

the

With

Rise

Now

the

gen¬

the supply

credit may be

bank

Billion

ing

those.,'who

settlement

current

from

First,

- sources.

elastic.

require¬

capital

time when

tained expansion..

successful merchants and processors
.

possible

production

decline

from

market,

three
steel

The

far

not

therefore, should not be over $2
billion, v;
' ;::;V^

premium on ..innovation—new, im-.
proved products and packages, lower
costs, and better service. The most
will

trouble develop in

There are, I think,

picture?

ments

This

reasonable.

annual rate.

outlays

higher

even

for

current

this

decline from the total

working

nance

Ill

Where might

From 1,000,000 to 1,200,000 private housing starts for

JARVIS

ably

Continued from page 71
economy.

In short,
are

over

under

the Island.

LILCO's investments in new equipment

multi-million dollar vote of confidence in the

prosperity and growth of 1960—and a pledge that
Long Island will be supplied with the

best in economi¬
electric service.

cal, adequate and dependable gas and

mco
SERVICE
1910-1960

LONG ISLAND

question was

posed: Will the increase in ag¬
gregate demand for output be

LIGHTING COMPANY

The Commercial and Financial Chronicle

(326)

Continued from

page

WILLIAM

effort to expand exports and
free

trade

with

the

area

Communist

imports, both in

bloc

amounts

The dangerous

the

lag in rockets and missiles anticipated

1960s will come in for great attention.

early

governmental

facilities

private

and

efforts

I
accelerate

higher education through aid for building
additional classrooms and dormitories, through increased
salaries

increased

and

student

loan

and

higher

education

zation

and

land

diversification

for

those

reserve)

cultural production, than of

who

remain.

and

farmers from

higher-priced

crop

agri¬

supports

carriers

more plentiful.
I do not believe, however,
tightness will be so pronounced as to create a

material

likelihood of greatly increased interest rates.
contrary, I think the whole climate of political
public opinion will be against sensational interest

the

and
rate

increases and it will have its effect.

The emphasis on
mation would have

great deal to do with stemming any
materially increased inflation. Here, too, public opinion
and the political climate should

help greatly.

have stated not only my views

our
economy
issues of the

have

course

to the outlook for

but inherently my views
national

campaign of

as to the major
1960, which will of
what happens to our

material effect upon
The outlook is promising—indeed
a

economy.
we
in government

and

those

the

splendid if
do

economy

needs to be done.

what

the

and

Express

between

nation.^

for

the

cost

gross

modest

William B. Johnson

each

FRANK

JEROME

Seattle, Wash.

The

overriding problem faced by the banking industry in
1960 is the shortage of loanable
funds. Barring interrup¬
tions of basic
industries, there is every indication that the
year will bring a substantial rise in
consumer demand
augmented by buildup of inventories
and
a

capital expenditures. This

continuing

bank

credit

inflation
sure

rise

means

demand

for

increase on less-than-carload
express,
additional 25 cents per hundred pounds
minimum per shipment, or 35 cents when such
traffic
moves within the
Agency's Eastern or Mountain Pacific
regions, was effective September 1.
an

the

continued

then, the Agency extended its
ment

able

banks

the

of specific

about

37%

predicated

consider¬

commodities

current

first

lower unit costs

class

rates,

have

Reserve to restrain that demand.
This generally is

regarded

short-range condition
an

upward

cycle.
the

phase

the

product

trends.
credit

The

the

some

bank

primarily from deposits. But
deposits have failed to grow at the

same

the

price

loan

demand.

Over

lines;

Frank E. Jerome

keep

with the overall growth of the
economy, measured
by an 86% increase in gross national
product in a
10-year period.

large part this situation reflects the fact that
private
has

been

increasing faster than

the

growth of the

is also

complicated by the growing com¬
petition for deposits from other financial
institutions.
During the past year the banks have
liquidated about
7%

of their

been

investments to get loanable funds.
by an increase in corporate

balanced

securities

which

has

down their balances with
the
new

by bank loans. When
investments held to secure

for

allowance

government

deposits, the banks will have
difficulty in liquidating
similar

growth,

very

new

lending,
met

installment

The

sharply.
be

growing demand for

1960.

fully.

the

During 1960 all of the company's efforts will
continue
be devoted to
providing better and more economic
express services designed to deserve
and win greater and
wider shipper
support and use.
Accordingly, the express
company's diversified and
far-flung national and
inter¬

national services

pected
ahead.

make

by rail, highway,
considerable

WAYNE A.

can

the

availability of
excess

the

those

immediate

examine

clearly

estate

extension

the

quarrel with
Reserve aimed
at

Federal

Growth

This

credit

term

Present
will be
net

indications

$15,500,000,

income

based

for

loans will

the

current

restraining

economy is limited
natural resources and

limits

situation,

bound

however,

implications of

higher

labor.

expenses

million,
lion

the

for

1959

This compares with

revenues

for

the

for

1959

are

million, compared

Operating

will

year

$213

compared with $207 mil¬

Illinois

Central.

and

pect

of about

1960

expenses

$217 million.

revenues

estimated

will

for

$280

the

year

After allowing for in¬

expenses

have

and

net

taxes,

income

ex¬

fertilizer.

A aa-

Carloadings in

1960

Working capital
be $56

million,

the

for

expected
.

simplify interchange and expedite
A' AAaA.

AAa.v;a;:
■■a,Aa
Industrial Development

1959

working capital ratio

Is
of

■

along the railroad to discuss industrial develop¬
A motion picture, "Gold Mine on Main
Street,"
help promote this industrial effort.

calculate,
The value

served

tion

was

the economy of the area
As of the end of
September

billion,
by

1959, construc¬

under

which should

way
on
96 new or expanded plants
produce about $4 million a year in addi¬

tional revenue for the railroad.
To further the industrial

development of the railroad,

the company has purchased
nearly 700 acres of industrial

property at Woodstock, Tenn.,

AAvAv A A

Early

1957

the

Illinois

Memphis;A•

near

General

/.* V-'aVa'

A; A

Central

joined

was

by a
of other Chicago lines in an
application for
authority to serve the Lake Calumet
Harbor
area
through an extension of Illinois Central tracks
number

tp the

harbor.

Permission to serve the area was
granted by
the Interstate Commerce
Commission in October. Object¬
ing railroads have filed a petition for reconsideration
and

reargument.

1
'
Illinois Central Railroad vs. the New
.

The

York

case

of the

Central

of the contract

Railroad

governing

connection

with

termination

of Central Station by New
finally adjudicated in 1959.
The Illinois Central
received $5 million in settlement. In 1956 the Illinois
Central filed a protest with the
Interstate Commerce Commission
objecting to the move
of the St. Louis-San
Francisco Railroad to obtain stock
control of the Central of
Georgia, which is a
York

Central

trains

use

was

link for the Illinois Central to
the Southeast. Following
hearings, the full Commission in November 1958 found
the Frisco acquisition of
Central of Georgia stock to be
in
violation of the. law and ordered the Frisco either
to divest itself of all
Central of Georgia

estimated
2.42%.

\ deposit such
holdings with an independent corporate
trustee approved
by the Commission and under condi¬
tions prescribed
by it. The Frisco elected to trustee
the stock and has
submitted a proposed trust
agreement
to the Commission.
The Illinois Central has filed ob¬
jections to the agreement and has
asked
that
it be
modified to require eventual
divestiture of Frisco owner¬
ship of the stock and to make the

trustee

dependent of the Frisco.

Approximately five

acres

air

rights

entirely in¬

over

Illinois

tracks in the
vicinity of Twenty-third Street
and Lake Shore Drive
were sold to the
Kabak Corpora¬
tion.
The Kabak
company proposes to construct a 650room
lake front hotel on the
site which is opposite

Chicago's new exposition hall, now
being built. Zoning
changes approved by the
Chicago City Council have

opened
147
acres
of
air
rights over
tracks between Roosevelt Road
and
for

Illinois

Central

Twenty-ninth Street

development.

The

carloadings of 3.3%
1960.
Carloadings
in 1959 will total
about 1,794,000 cars.
are estimated at
1,853,000 cars.
predicted

for

1960

$16,500,000.

An increase in

Wayne A. Johnston

cents

Central

1958.

creased

share.

million,

illusory. Beyond
banking must re¬

loan-to-deposit ratios. Will this force
banking
curtail its
activity in fields such as
mortgage lending
installment credit, and term
loans where it has
its greatest
registered
gains in the
past generation?

quarters

holdings

income

improvement in traffic
during
196*0 should
improve the showing of

the

toward

net

AA;■

connecting

inflation.

trend

ex¬

year

Operating

long-term

during the

with $265 million in
1958.

policy of

Growth

per

our

estimated at $271

things

physically by

are

$18 million, or $5.80
per share,
3,111,775 shares presently
outstanding.

not

air

JOHNSTON

that

are

1958

cut

direction

advances

and

President, Illinois Central Railroad

mortgage

will

sea

1959, and will pay
share for the fourth quarter,
making a total
share for the year.

the railroad.

■

adding greatly to

Air-Express, is
business by the

basic

that

There
the

real

and

:'x y\; '

dividend of 50

but it is estimated to be
$45 million annually.
construction of these new
plants exceeds

Air Express

limiting their lending activi¬
virtually eliminate

stringently.
This
will
commercial bank
participation in

the 32-year-old

$70-million-a-year

continuous

service

.X-..

up.

Banks therefore will be

air

volume again in 1960. Whatever
the reasons for
the failure of
deposits to grow, banking enters the
year
almost fully loaned
ties

scheduled

.■

accomplished

deposits created

made

This has

by drawing
banks, thus offsetting the

three

There has been
an
average
of about- 100 new or
expanded industries located directly on the Illinois Cen¬
tral every year since World War II. The
additional rev¬
enue
these Industries produce is difficult to

combination air-rail express

express rate structure; and re¬
vamped operating facilities and
procedures, both imple¬
mented and scheduled for
the
coming and subsequent
years..a
aA;'

holdings of

been

through

service;
Agreement providing for
partnership-type operation with the scheduled air¬
start on a comprehensive
study looking toward

revisions

pace

economy.

new

past decade the total deposits of

rate

signing of

commercial banks have increased
only a little over 50%
while loans have increased more
than 150%. The ratio
of loans to deposits is now
about 50% compared to
30%
10 years ago.
Bank deposits have also failed to

debt

to all others

ment.

the express
company's new freedoms in the line-haul
routing of its traffic; a program of office
consolidations
affording economies as well as better overall

comes

first

paid

rail

new

is used to

are

the

meet

and

cities

transportation service,

pected to contribute to

customers

Central

will

of meetings with
community-leaders, real estate men,
bankers, and other businessmen was held in five major

During 1959, Air Express continued to give the nation

Among other developments during the past
year ex¬
more
satisfactory express results

also

longer-range

ability

demands

miles

intensified industrial development program to lo¬
cate new industries was
adopted during 1959. A series

regulatory approvals.

business

time

same

has had to a great extent for
many years. Despite pro¬
tests from truckers and
forwarders, the rates have won

end of 1964.

associated with

per

ships in small quantities to individual
customers, the
opportunity to take advantage of a quantity rate com¬
parable to that which the large volume
express shipper

expected to become

installation

deliveries.

the greater volume of
traffic attracted and have resulted in
greater and more
compensatory gross revenues from the
many express
shippers involved. Their full impact is expected in 1960.

current

the

cents

ment

been

its most dependable and
speediest
direct by aid to those cities with

piggy-back operation was expanded by joining
in ownership of the Trailer Train
Company. This com¬
pany, owned by the Illinois Central and 17 other rail¬
roads and a freight forwarding
company, is the nation's
largest owner of piggy-back cars. This source of equip¬

picked up at one
time for express
delivery at any number of different
destinations. The reductions,
generally affording savings
of

switching
diesels

passenger

Our

In ten years, gross Air
Express revenue will
have jumped 181% with an
estimated total of $48.6 mil¬
lion for 1959 compared with
$17.3 million in 1949. At the

Federal

rock

various other dates since
incentive rates on ship¬

aggregations of 300 pounds
number

service.

pres-^

Effective September 8, and

and

and, with the threat of.

present,

has

enlarge the

174

Freight Rates and Service

who

Bank,

also

will

freight and

Many freight rate adjustments were made during 1959
to meet competition with other forms of
transportation
as
well as with other railroads.
Adjustments of rates
were made on
coal, grain, lumber, vegetable oils, vege¬
table oil meals, liquefied
petroleum gas and phosphate

incentive-type rates, pioneered by the Agency in
1955, give the businessman in a growing list of
industries,

Seattle-First National

the

Illinois

of $2

The

V'"'-'AA President,

railroad

locomotives

411

The

rate

providing for

The

fleet

Dividends

figures for the company's 1959
slightly in excess of $400 million.

revenue

Central

$800,000, of which 57
welded rail. /'
' A. *

independent company.

Final

cars.

hoppers,

locomotives. [ These

include

express-

Those devel-

year.

year are expected to be

productivity, development and auto¬
a

Agreement

gondola

service, making a total of 627 diesel locomoitve units.
Roadway improvements amounting to nearly $6,500,000

collectively, have enhanced the prospects for
eventually profitable operation of the reorganized,

make credit
this

covered

diesels.

opments,
an

Money will apparently continue to have an atmosphere
of tightness until the other
developments I have outlined

Standard

new

carrying railroads have helped re¬
duce by some $20 million the
$38
million out-of-pocket express losses
previously anticipated by the rail

see

by government.

that

All freight ;cars, except for
piggy-back flatcars and gondola
cars, will be built in our own car shops. /
*
A
The 1960 program includes the purchase of 15 GP-9
the

Illinois

company

likelihood of the encouragement of retirement

(conservation

seventy-ton

surface

diesel

of
a
Operations

greater understanding of long-term trends, and
willingness to finance marginal farmers leav¬

boxcars, 1,500 seventy-ton hopper cars, 150 covered
hopper cars, 20 covered triple hopper cars, 25
piggy-back flatcars,
100 bulkhead flatcars, and -200

upward and downward—and
developments attendant to the sign¬

ing

roadway improvements and $26,800,000 for
The new equipment will include 500 fifty-

twin

abroad.

and

for

ton

shipment services for

here

equipment.

operating economies and ef¬
ficiencies, express rate adjustments

ing the farm; and to improve opportunities for mechani¬
far

international

will

New

campaign of 1960 will bring a great clash on
policies for agriculture. I believe that what will result
a

and

small

shippers

and

The

therefore

air

made

was

of the fundamental

—both

scholarship programs. The lag
just more than we can allow.

will be

some

domestic

teachers'

progress

Improvements

Capital expenditures for 1959 will amount to nearly
$19 million. For 1960 such planned expenditures will
amount to approximately $33 million, of which $6,500,000

Inc.

during 1959 in finding
problems that have
faced Railway Express Agency, Inc.
As a result, the 121-year-old business has new and
greater opportunities and responsi¬
bilities in the Sixties. We are looking
toward even better, more economic

may

discrimination.

expect

Significant

solutions to

preferred in larger
<for non-strategic goods, but only if the Com¬
will
accept
GATT
trading
rules
of
non

munists

for

European
Trade

the less developed areas.

and

JOHNSON

President, Railway Express Agency,

Thursday, January 21, 1960

Central

acquired

the

properties

the

Tremont & Gulf
Railway Company on Aug. 1. These
properties, now operated as part of the Illinois Central's
Mississippi Division, extend from West
Monroe, La., to
Winnfield, La., a distance of 61 miles. The line serves

timber
A

and

paper

interests

the

area.

three-year moratorium on work rule and
wage
agreement changes expired last Nov.
1. Proposals have

Number 5918

Volume 191

The Com
and Financial
Chronicle

; .• .•

(327)

by the railroad unions which would cost
industry $750 million a year. Railroad man¬

made

been

the railroad

agement Is asking for a revision of out-dated
the
now

elimination of make-work practices.
in the process of negotiation.
It

rules and

The issues
is' difficult

predict, when a settlement will be reached

DWIGHT

Outlook for'60

Continued from

JOYCE

Chairman and President, The Glidden

Much progress was made during

liquidity

ratios

Company

the

•

All-time highs in

records

may

latex-emulsion

new

paint

siding

for

other

kets

throughout

the

also

achieved

marketed
Work

primer,

Rustmaster

absorption

1960

should

see

demands

«though

also

will

the

range

new

ing

used

Thunderbird

primers

will

not

se¬

the

moderately less
money
by mort¬

enable

funds

must be

possibility

the

heavy

met—

prepared

for

even

Third, this prospective

expan¬

if it
terms,, will

They are currently be¬
the unitized bodies of Lincoln

that

and

for

not

automobiles.

mean

Recently

in¬

commensurate

crease

These

remarks

with

for

few

the

prospects
been

For

1965

when

present.

ties, to

use

1970

300,000
of

longed

sizzling

are

now

and

statisticians,

rising

an¬

one-half

and

one

ex¬

million

from 1965 to 1970.
The
absorption
annually
of

two-thirds

the

year

people

labor-force

can

ex¬

pected to pose some problems.

Moreover,

the

will

this

time when the

if
problems.

some

decade, with the

into

they look close at hand?
They look, fortunately for us as

there will still be

1,-

in the first half

half

us.

economists

year

rates*
to

smooth

per

'Six¬

upon

participation
will be close

increment
of

cess

per

the

nual

for

enthusiastic char¬

one

On the basis of
assumptions
about

average

long

retreat

These

acterization,
How

for

the

the out¬

from the harsh realities of

escape

per. year.

averaged close to 900,-

labor-force

conclude

favorite

economists

the

might

decade.

have

reasonable

comments

the labor force

increment in

will

come

number?
force

labor

real

output
productive

the

we announced the installation of additional
capacity at our Cleveland, Chicago, San Francisco
and Toronto plants. This equipment, involving a capital
investment of about $1,200,000 will be placed in opera¬
tion during the early spring of 1960. The new reactors

if the price level rises. What are
the price level prospects?*
The

the Paint Division to meet the growing
polyester products and also to manufacture

whom

a
couple of areas of poten¬ m i d d 1 e-management personnel
tially interesting problems imme¬ /must be drawn will not be rising.
diately suggest themselves.
/ In the next five years, for exam¬

One

set

these

arises

out

ple/the number of mem 25 to-34
of age in the work force is
expected to decline and those in

the

our
population prospects.
These
population
prospects
have,
of

constituted

course,

major

this period.

half

There will be

years

needs

into

these

family

new

units

for

housing and other consumer
capital formation are expected to

high

assure

doubt

men

sharp decline in the last
in the

number

in the labor force 35 to 44

of age.
a

ing

and

statistics

bracket will in¬

Thus

period

we are

when

the

moving
number

of recruits to the work force need¬

rising levels of
demand for output.
The popula¬
tion

age

moderately. And there

of the decade

great
upsurge of family formation.
The
a

very

will be

the

one

confidence about

sources of

crease

supervision

will

rising

rapidly while the population from
which these supervisors and junior

point
They also point
to
some
labor-force
problems.
One of them is quite simply that

would normally be drawn will be

the

not

and

middle-management

in this direction.

number

into

the

labor

and

force,

static

maturing

people

shrinking in size.

anticipate that this will

enable

demand

rf the

rranv

for

"atices and

its namt nroducts.

other

resins developed for

use

in the

increase

United

States

about

20%

Canada,

and

our

the

distribution

and

planned for 1960. VW
••
service'programs have been

technical

will

introduced

early part of
product

pourable cake shortening which
baking industry'during the

the

1960.

This

the

baker

offers

new

completely different
cost-saving advantages

and

many

services

amount

SUMMARY OF CONSOLIDATED EARNINGS
12 Months Ended November 30

are

provided

rates.

can

increase

the

prices, which

other

1959

the

be somewhat lower at

$23,700,071

19,114,373

Gas

Electric

16,576,276

1,006,827

food

Operating Expenses and Taxes*.......
Net

$41,190,674

Income

39,231,055

35,399,170

$ 7,170,171

Operating Income......

Other

end of

914,327

$46,401,226

Total

wage

the index should not rise and may

im¬

$26,280,026

Telephone

ex¬

full

hand

1958

Operating Revenues:

another third of

are

page

and Subsidiaries

repre¬

rise by almost the

pected to

handling and batchpreparation. > It also permits
longer shelf life and greatly improves cake texture.
The development of this unusual product was made
possible by the Durkee Division's intensified work on
These emulsifiers have become

these

revo¬
emer-

increases.

annual

direct labor costs and

food emulsifiers.

to 2V2%
some

Continued

CENTRAL ELECTRIC & GAS COMPANY

the one-third of

prices
by heavily
'mechanized
industries, such a:
electricity or telephone service
many of these items are virtually

for

opment of Fluid Flex,

It-

service

lar 2%

lution, but it constitutes

ment, will step up sharply. Dur¬
ing the current decade the an¬

break

price index

cipitate another managerial

into productive employ¬

the

likely to be.

unexpected

consumer

-While

number of new developments have come
this work. Typical of these activities is the devel¬

from

prosperous

absorbed

prices
did
not
turn in another of its quite regu¬

accelerated and expanded in our Durkee Famous Foods

Division, and

seems

senting

A similar increase is

Research

year

ahead

with the past if

representing

branch

one

would

„

network.

resources

prospect is for some increase in
1960. It would be unusual if the

; ;
Also during the past year, 24 new paint branches were

opened

our

$ 5,791,504

125,556 * -

146,663

portant part of the Durkee product line and it is ex¬
pected that they will find increased use in the> coming
year in prepared mixes, candy,
bread and other food

the year than now, in response to

Net

abundant

Interest and Other Income Deductions..

2,115,093

1,811,773

items.

Net Income before Minority Interest....

$ 5,183,634

$ 4,126,394

2,181,461

1,832,818

$ 2,999,173

$ 2,293,576

294,023

243,041

$ 2,705,150

$ 2,059,535

$1.80

$1.42

* ■
Instant

Durkee's
cellent

key

market

...

V../•"

■'

••.

'•:•" ;.p'

Minced

Onion, which received exduring its introduction in
during the past year, is now being

cities

placed in national distribution.

The division also plans

intensify, marketing of its entire line of products for
institutional trade. Additional sales personnel have
been trained and, assigned to cover this, growing mar¬
ket, and a broad advertising program is planned. 1
We have recently
given new emphasis to the growing
importance of chemical operations of our company and

•

the

have consolidated
of

alignment will

our

prove to

growth of Glidden.,
In our
ume

two chemical

divisions under

be
v.

a
-

•

seems

the

likely

price

GNP

deflating

Net

data

can

division's

this

dioxide

titanium
the Adrian

our

further expansion of
this division was commenced

customers,

Joyce

Works of
during
early part of 1959. This expansion program is de¬
signed to eliminate critical bottlenecks between various
stages of production and will provide progressive in¬
the

creases in

plant capacity over the next few years.
Further progress was made during the past year in
our
Organic Chemicals Division in the development of
new

synthetic

terpene chemicals for the aromatic and
trade. Introduced in 1958, these products are.

perfumery
receiving increasing
tion

consumer acceptance and produc¬
facilities for them will be completed in 1960.

In order to achieve
wider distribution of

our

Organic

•

Continued

page

Central

Company

Common Share on number
outstanding at end of period

per

of shares

terms

rise

bad

price

would

not

third

the

for

CENTRAL ELECTRIC & GAS COMPANY

year

not

CORPORATE

EARNINGS

Operating Revenues:

2°/

over

Gas

performanc'

•

The strong upward
pressures on costs and prices for
reasons
not primarily related to
of

excess

do,

supply

element of

ity.

These

cyclical instabil¬

produce

pressures

for

what starts

out

adequate increase in money

demand to be insufficient, in real

terms,
These

avoid

evitably have
on

But

able

does

this

sufficient
the

capital

not

bind

now

turn

outlays.

seem

situation

in¬

impact

will develop

rapidity

business

adverse

prospective
it

capacity.

excess

developments

prob¬

with

jeopardize
in

1960,

though we are apt to hear a great

(including dividends from

subsidiaries)

Interest and Other Income Deductions..

for

Common

per

......

Stock...........

Common Share

Central

Electric &

standing at—

877,175

$ 2,399,447

617.716

550,871

$ 1,848,576

294,023

243,041

$ 1,954,849

$ 1,695,535

period

$1.30

Gas

Company

out¬

November 30, 1958
purchased

$1.11

Common Stock of

November 30, 1959....

"Includes

„

number

of shares outstanding at end of
of

$ 2,248,872

Preferred Stock Dividends

Earnings

15,968,331
$ 1,522,272

$ 2,866,588

Net Income

Number

18,211,519

956.937

Earnings

Balance

914.327

$17,490,633

$ 1,939,681

Operating Income

Other Income

Net

$16,576,276

$20,121,290

Operating Expenses and Taxes*.......
Net

$19,114,373
1,006,827

Total

profit margins and

tendency

give

however,

new

squeeze

relative

demand

..;.

Electric

vigorous

expansion.

Chemical

products, we have recently entered into a
long-term agreement with Firmenich, Inc. under which
that firm will act as an exclusive distributor for certain

Stock

SUMMARY

chemical

adequately meet the growing needs of

Common

& Gas

Electric

Earnings

Dividends....,

Expects Total Real Gain of 5%

Baltimore which will be put into full operation around
the first of the
year.This laboratory consolidates all
the, division's activities in ,connection4 with inorganic

Gas

demand.

research, product development and .technical
service, and incorporates the most modern scientific
equipment available.

for

ex¬

demand
for output
in
something li'-e r
quarter may be a price rise, leav¬
ing about a 5% increase in real

■y

headquarters

Electric

roughly 7% increase, in ag¬

money

1959 which are two and one-half times greater
than those for the
previous year.
:
'
We have constructed a new Inorganic Research and

Center

Central

Stock

Balance

for fiscal

Development

for

Company
Preferred

for 1960.
used, for

index

Income

$ 5,938467

gregate

Chemicals-Pigments Division, higher sales volnew production efficiencies produced earnings

and

2%'■now
Since

Minority Interest

rise of something like

of the

the

••

par¬

third

pected to rise by at least as much
as
the consumer price index, it
seems
reasonable to assume t.hfd

expect this
major step in the continued

single*^vice-president.

meat

remaining

the

therefore,

direction

The

index, prices of non-food
commodities,
will
almost
cer¬
tainly rise somewhat.
For the
consumer
price index generally

acceptance

consumer

supplies

ticularly.

$ 7,295,727

Earnings

gas

1,499,360

;

1,447,914
of

$11,412,303 and $9,786,724, respectively.

pre¬

price level did not rise somewhat

will

use

resin

6f:people

frorfv

And

Imbalance in Our Work Force '

sion in the year
ahead, even
is realized in dollar

applications for these products.
and

spill

to the

higher
interest
rates,
particularly
for
short-term borrowing.

year.
wide

nual

as
,

years

should

gages

Dwight P. Joyce

water-reducible industrial coatings has been

intensified, and

guess

constraints

Government

which

nationally in the coming

and

money

tend

expansion
in 1960.
The markedly improved
budgetary position of the Federal

portant breakthrough in anti-corro¬

will

riously jeopardize

sive finishes-for industrial maintenance with the devel¬

opment

some¬

financial

im¬

either the

market

Nevertheless,

product received excellent con¬
sumer
reception and full-scale na¬
tional marketing is planned for 1960.
division

Fi¬

coming

for

other.

new

The

markets

and spread congestion

over

The

country.

will

1955.

long-term funds,

capital

•

mar¬

and

capital

the

what

surf¬

in about 50 selected test

wood

businesses

ex¬

aces,

terior

in November

'overloads in

ex¬

Paint Division
House Paint,
a

Spred

introduced

deposits, compared

nally,

•

1959 lour

54%

their

ceeded in 1960.

During

with

Foods, Chemicals - Pigments - Metals
and Organic Chemical — and it is

these

end

64%

during the year in our present four
divisions — Paint, Durkee Famous

possible

relentlessly upward.
At
of November, for exam¬

ple, loans of the weekly reporting
banks in
New York City
were

anticipated that

greater development and expansion.
both sales and profits were achieved

reduced
as
deposits have

subject

time

been

loans

the

000

look

page 73

has

pushed

1959 toward improving

Glidden Company's profit-making ability and it is
the coming year will be one of even

The

about

the year moves along.
,

of bargaining efforts.

come

deal

are

the out-

The Economic

The Commercial and
76

(328)

Continued

ness

from page

products of the division in the United States and £"311The agreement with Firmenich, one of the world s
leaders in technical developments for the perfume and
ada.

industries,

flavor

eventually be extended to em¬

may

markets.

most world

brace

Nineteen-fifty-nine was an excellent year for The
Company, and barring any unforeseen events,

Glidden

the coming

should be one of the most productive
history.
;

year

managers

ahead and

drive

and rewarding in our

■

Muskegon,
together
extensive farmlands and much
and

Jackson

with

vacation country.

within

are

GMC

and

Truck

service

our

and Ford also are

Coach

and

Chrysler

area.

represented by large

plants, and there are many producers
automotive

parts and equipment.

Non-automotive

products of

some

larger electric and gas customers
are chemicals, paper, packaged food,
pharmaceuticals J furniture and ma¬
our

Dan E. Karn

1959 Outstate Michigan made a strong re¬
covery
from the recession of 1958. In
the last two
months of the year, however, the pace of this recovery
chinery.

was

decelerated

by the steel strike, which caused some

manufacturers to

stantial

transacted
In

turned

1959

million.

curtail operations. A sub¬
which might have been

carries

now

passenger

1960.

United

the

cars.

Commerce

The

into

over

companies

million

4.2

out

5.5

business

automobile

1958

about

suspend
of

amount

States

1959

Department

was

year.

Michigan's industrial centers, including Detroit, offer
ready market for the dairy products which are the
No. 1 cash crop of Michigan farmers. Tourist and resort
a

business

Michigan

has

increasing.

been

continental

with

convenient

systems for office

influ¬

the

it
of

expect to step

reflection

which
market

the

confidence

new

construction

certain

that

plan

has

the

area

construction

Charlevoix,

near

50,000-kilowatt

Michigan,

spring,

and to go ahead with the installation of con¬
ventional generating units that will add 795,000 kilo¬
watts of capacity by 1963. This will mean an increase
of
35%

in present system

The

pipe¬

supply of

expansion of

This will open

our

business,

gas

especially in the space-heating field.

FREDERICK

President, B. F. Goodrich

least 1,600.000 long tons of new
ber

17%

1959,

recession year of 1958
the previous high set

000

other

mand

for

still

world

growing

United States.

estimated

1959.

1960

successful

services than

duced

also

and

provement

service

our

may

record

10%

im¬

three

that

million.
the

the

3,264,000

1946.

are

the total

five

years
ago and
half 10 years ago.

expect continuing
service
in
1960.
This
course

growth

means

Frederick R. Kappel

that

will keep on building a

Construction expenditures for

Incn come *° about $21/4

i960,

ments

capital.

billion and our program for
now, will be at least that much and
For this and later
construction require¬
shall continue to need
large sums of new
see

for
be

services and

other

than

an estimated 425,000 tons of
expected to be imported by Iron Curtain
>/.■
.-vr

approximately

than

year

anticipated

dollar

127,000,000 units in 1960.
solid 8% gain over unit sales in

goods will

new

re¬

installment

have experienced thus far in

the 1958 low.

level

Relative to the current

income, however, the

net

in¬

of steel

shortages, durable goods, particularly
off

get

may

durable

all

ably at
5%

start;in

the

first

in subsequent months

goods, including automobiles,
8% to 10% increase next year

modest rate; and

is visualized.

ahead but prob¬
increase of around

move

durables and

both

non-durables, percentages of increase in the first half of
will

1960

second

probably exceed those to

reported

in the

half.

This

HOWARD

KELLOGG, JR.

1959,

substantial pickun

and trucks in 1960, added
in the market for replace¬

replacement

Non-durables will also

the category

slow

new

new cars

further modest expansion
ment tires. Record sales of 67,500,000

durable

flow

in debt will not be excessive by comparison with

Chairman of the

new

;

consumer

greater

even

Keener

tons,

non-durable goods can

and

1959.

long

the

high level of employT
personal

well approximate

1,630,000

shipments for

for durable

anticipated.

over

the

and

Taft-Hartley

consumption expenditures during practically all of 1960.
with the result that good gains in consumer spending

may

pas¬

19,59,earnin?s

are not in at this writing, we expect them to be consistent
with results for the first three
quarters, and better than in 1958.

tJ:°"S"r"" ®arni,ngs prospects
things. One
climate for
is

States

rubber

depend largely

two

industry that will give busi¬

consumption

would have been
for strikes against three
of the major rubber companies in the second
quarter,
and the steel strike's effect on automotive
production in
the third

and

not

been

fourth quarters.

Intense competitive con¬
ditions led to a price decrease in
replacement passenger
car
tires in the third quarter, in
spite of higher wage
and benefit
costs, and substantially increased prices for
natural rubber and

Under

more.
we

This will create

sales

than

the

will produce a favorable climate for

and

faster

higher in 195.9 had it

billion

the Bell companies
great deal of new plants.

ma>

the second.

quarter, but this will be made

and

1960 increase will stem from

United

comparison, we handled about
billion long distance conversa¬

tions
and

The

during

record, besting the 1955 unit sales
about 112,000,000 by 5,000,000 units.

in tire

settlement

"cooling-Off" period and that no other; major work
stoppages will occur during 1960, an increase of about
8% to 9% in industrial production would appear rea¬
sonable this year. The rate of increase should be higher
than this average in the first half and somewhat lower

Because

Growth in the use of rubber for nontransportation
products, such as hose, belting and footwear, has been
averaging about 5% a year. This is well above the growth
trend in total industrial production in this
country. Rub¬
ber consumption in nontransportation products in 1960
is estimated at an all-time high of 610,000
long tons.

previous
in

conversations

oyer 1958 and

number

for the year will exceed
three billion.

two

has been

Total consumption

rubber

reach

throughout 1960.

senger car tires are expected for 1960, 3% more than in
1959. More than 45,000,000 cars will be two or more
years
old in 1960—the prime market for replacement
passenger
car tires.
1
/.

earnings.
telephones in 1959

exceed

distance

about

level

possible

gain

Long

much-needed

over

equal

efficiently;

will

steel companies

Board,

Spencer Kellogg and Sons, Inc.
In

forecasting the business outlook for the vegetable oil
processing industry, several generalities must first be
accepted if the final conclusions
The
must

political
be

considered

path

same

aspects

year

1959.

tion

year

indicated

True, it is

are

to have any

surrounding
following the

during

our

farm

validity.
economy

the

major elec¬

well

tact,

betterments

The increase in
will

good.

that people used more of our
before—quite a lot more; we intro¬

operated
made

and

mean

ever

numerous

and

are

union

assumption that the

similar periods of the past decade and installment credit
should continue as a positive force in the sales picture

additional

This does not include

natural

record

1959

the

crease

Industry tire sales in the United States will set

„

and

the free world countries outside the United States in 1960

countries, de¬

rubber

new

much .smaller
the case in

was

governmental expenditures (Fed¬
eral, state and local), and private business investment
in both new plant and equipment and inventory will
provide substantial increases; 1 ".
v *
"
'v

automobiles,

free

cause.

the recovery since

long tons.

Other areas, such as

credit

rub¬
the

long tons, and the possibility of a
consumption level as high as 1,700,-

prospects for

representing

now

major attrition to the economy is not ex¬

pected from this

quire

estimated total of 1,650,000

year

is
now
comparing
against the abnormally

income

Although installment debt has already expanded con¬
new peaks in the sale of

and 5% above
in 1955.
For

1960 the outlook is for

which also set

successful

than

residential expenditures.

personal income than

automobiles and

consume

of the

money

siderably, the achievement of

plastics.

The United States will

The

means

income

past,

years

world consump¬

tion of rubber and

countries.

KAPPEL

farm

tires,
rising living standards point to

represent

had

with

of replacement

higher sales

building

case

largely offset the decline in pri¬

unfavorably

portion of total

Company

increase in the number of automobiles on the road

the

T high levels of late 1858 and early
comparison will also • continue adverse, but

This

ment and

will

System

1959.

KEENER

Expanding markets both at home and abroad give the
rubber and plastics industries cause for optimism on the
physical volume of business during 1960. The continuing

President, American Telephone and Telegraph Company
Bell

■v'V

generating capacity.

1960 will see the completion of the
line facilities needed to
bring us a substantial
year

additional gas from Texas and Louisiana.
the way for more rapid

Charles H. Kelistadt

invest.

income.

tight

Farm

requirements.
As I have indicated, we look for good business in the
year ahead.
However, I think all optimistic business
predictions, and all the hopes of business to generate
more
production,
employment,
and
prosperity,
are
wrapped up in the determination we display to keep in¬
flation arrested, keep our dollar sound, and keep offer¬
ing Americans good and attractive incentives to save and

rise to

1959.

plant

will

exacting

generating plants, it
construction expenditures in 1960

start

electric

which

electric

total

will exceed those of

atomic

facilities

Considering the facilities required to
gas supply in 1960, together with con¬

serves.

the

tinuing
is

business customers

our

States

exceptions to this

residential

are

farm

vate

constantly strengthening our network to be ready for
emergencies, and increasing our ability to meet the most

further increases

company

needs

communication

giving special attention

United

causing a
lower level of .starts; however, ac¬
tivity in other areas of construction

introduction of more
telephone instruments and

are

major

two

former,

this effort in 1960. Also, while
is not possible in a brief statement to go into details
our defense work, I'd like
to emphasize that we are

and

by general business conditions, which, according
economists, will be good in 1960.
The expenditure of approximately S104.000 for the
most

improvement of

Tne

statement

and

use.

the

areas

economy.

growth of our

Europe;

fears,

of substantial increase

year

most

inventories

and it
probable tnat 1960 will

appears

and

attractive

and

now

depletion

removed .These

have

business in 1959, ex¬
amples of service improvement that I might mention in¬
clude:
a
very
broad enlargement of Direct Distance
Dialing, which greatly speeds up service; opening of a
second transatlantic cable linking this continent directly
the

from

enced

expansion

resuhant

fore¬

•;

determination.

full

casting 6.7 million in 1960. The automobile companies
are similarly optimistic.
If all this confidence is justi¬
fied, Outstate Michigan can look forward to a busy and
prosperous

crest

performance,'and progress. However a few commissions
still prescribe a very skimpy earnings diet.
So a big
part of our job ahead is to keep carrying the message
that progress does depend on good profits, and prove it
by performance. This we shall do in good faith and
with

that the high

production in the first half of iy59 would result
inventory accumulation so rapid as to cause a
in the business cycle in late lu59 or early 1960.
Ine length of the strike and the

recognizing the ties between profit,

are

Roebuck and Co.

Sears,

level of

their staffs

».

strike there was danger

the steel

the

certain other

stimulus

raw

materials.

higher, crude

rubber

U.S.A. consumption of synthetic rubbers reached
a record
proportion of 65.5% in 1959, and should creep
higher still
in

1960.
B. F.

the

Goodrich, which owns jointly with Gulf Oil Corp.
largest general purpose synthetic rubber producing

facilities

the

world, recently opened special purpose
synthetic rubber producing plants in
Holland, Japan and
England, all in association with companies in these
countries.

there

and

prognosticating

what

way

the" electorate

will do with respect to the
very tick- ;
lish fa*m problem. We are beset on
all sides with

clamor for relief.

The

consuming
public
wants
cheaper
product prices in the form of beef,
pork, poultry, bread and what-haveyou.

wants

On the other hand, the farmer

adequate return for his efforts.

The farmer's

net income

has shrunk

materially over recent years as a re¬
sult of increasing costs for the articles
which he buys, while at the same
time

the

products

which

have come down in value.

prices

KELLSTADT

CHARLES
President,
Prior

■

•

industry and the telephone business is no exception.
More" and more I think the regulatory commissions
and

resins in the world.

best

the

and

Aside

Although industrial production is
highly diversified, the automobile
industry ranks first. The home plants
of Buick, Chevrolet, Pontiac, Oldsmobile

announced plans for con¬
Australia to make Geon vinyl:

company

plant

plastic raw materials. B. F. Goodrich Chemical Co: is,
together with its associate companies1 in England, Japan,
Canada, Mexico and Brazil, the largest producer of vinyl

here is that it

business under public

job for their Customers and em¬
corporate citizens contribute the most
the community at large. This applies to all kinds of

good year in the Outstate
Michigan area where Consumers Power Co. operates.
This
is
a
64-county area embracing 28,700 square
miles. It includes industrial centers such as Flint, Grand
v
Rapids, Saginaw, Lansing, Kalama¬
zoo. Bay City, Battle Creek, Pontiac,
looking forward to a

are

force

Thursday, January 21, 1960

the

1959
of

struction

regulation.
The second need is for all government agencies and
regulatory bodies .in particular to recognize that the
public will get the best service or products at the most
reasonable price if they will allow earnings that stimu¬
late
top-flight performance.
We have been studying
this
question intensively, and the evidence is over¬
whelming that companies that show excellent profit
applies full

ployees,

Power Company

Consumers

President,
We

During

the encouragement and incentives to
really perform. This applies to all in¬

dustry but the point I want to emphasize

records

KARN

DAN

Financial Chronicle

ratio has sunk

prewar

Kellogg, Jr.

sells

Thus, the controversial parit:
levels, withvthe month of Oc

tober

showing but 77% of normal. Admitted, that unde
such conditions the so-called farm bloc
may exert enougl
influence on our political decisions to
bring about som<
improvement in the farm picture. This could be don<
through higher support prices for articles such as wheat
corn, soybeans, flaxseed,, etc.; On the other hand, then
may

controlled

acreage

output at reasonable levels.
conservation

program

order

keep

Or there may

the

farn

be some soi

following previous patterns, bu

Number 5918

Volume 191

The Commercial

and Financial Chronicle

Let us assume from our standpoint
tnat the status quo will be maintained.
Next; we: again have a factor influenced by Govern¬
ment policy, that is, disposal of surplus items such as
on

(329)

larger scale.

however,

The Economic

oil and cottonseed oil. For the current crop
October, 1959 through September, 1960, it looks
as though there will be so much surpliis oil that it will
be
impossile to . obtain adequate storage space in the
event processors continue crushing at capacity.
In the

Outlook for'60

soybean
season,

Continued from page 75
...

Even with this
surplus disposal program in effect, the price of soybean
oil,.as an example,i has declined rather sharply in re¬
cent years. If this program does not operate effectively
this" year, then the processor is going to be squeezed
badly.: Let us assume again that the programs
during .the=past year will continue for the com¬

in effect

ing year.: » ) /: \T/ *'
,
„
.Under such a .set ,of conditions, it looks as though the

interlude there would be conceived normative level. If one
uses, not more.
thing is clear it is that measures
( Actually the pressures for heavy
designed to prevent people from
decade
when
we
shall want to
capital formation should be quite paying higher interest rates are
fh? seid°us attention ourmeasures strong in the 'Sixties regardless more apt to prevent them from
to rate of
at
will
accelerate

much

u5?es
ok!
to 190/
+

,know

rate

conclusion

stuay

that

marketing problems.
the

meet

which

must

other

articles

market

open

competition

from

places the processor in a rather uncom¬

position. Secretary of Agriculture Benson has
been doing his level best to lower supports and to get
the Government out from under the farm program, but

fortable

only partially successful.

has been

Until his goal is

eventually completed, the Government will continue to
exert

creased

What

each and every detail
Government support of the

material and lack of similar relief on end products

raw

major influence on the profit which the processor
Improve¬

will receive on items sold in their crude state.
ment

the latter is being sought constantly by up¬

over

grading end products of vegetable oils and vegetable
oilmeals, and it1 is here that the greatest potential lies
ahead of the processor. »Vast amounts of money are be¬
ing sunk in research, seeking improvement along these
lines, and I feel confident that in the end the industry
will be able to overcome the deficiencies imposed upon it
by the artificial farm programs.

t^n

business

conditions

generally

with

future

these times.

bankers uniformly view the
degree of optimum that is unusual for

excellent; and
There

some

are

differ¬

between areas,

whole is

but the outlook
of confidence, al¬

one

intangible

the

strike

Should

railroads.

most

the

course

business

the

steel

Nevertheless,
to try.

Discusses

Capital

the

labor

months
to

slight increase

for

all

near

over

pared with

present levels

loans,

William F. Kelly

indicated
With

for

commercial loans.

other

steel

the

strike, all categories

show an increase in
1960.
Demand for bank credit is expected to remain
strong, although there is evidence of greater selectivity
in the granting of credits to various types of borrowers.
Small business generally has shared in the overall in¬
crease
in commercial borrowings during 1959 and the
demand is expected to continue. Most bankers indicate
that they will continue their policy of assisting all woithy small business needs in the future.

consumer

loans

are

expected

Rates

remain

mand

for

categories of loans, altnougn
a
few States report that the maximum is now being
charged under existing credit rate laws affecting con¬
sumer credit loans and, of necessity, rates on these loans

pressure on

will

remain

rates for some

static.

Loan Turndowns and

accelerated pace

man.

not

•

vary

the

growth

long-run

r,rr,rllin+;,ru.r

nrot+v

roughly

rate

Mooriu

object to achieve, economists will

cates that there is more to this
labor

<}esired ends—this
Wordsworth's

But it is reasonable to

that

in spite

dictum

indignant

tight labor

than

costs

„,rn„„iin„ wi.h

h„

problem of scarce means relative

phenomenon of persistently rising
unit

continue to be struggling with the

Productlvlty pretty clearly indi-

markets.

50-75% increase in

force will tend
ctraint

high Heaven rejects the lore

the

nicely caiculated less or more."

,h;A]0i^X

to exert some re-

wases

other

Statistical

and the AmeriAssociation> Washington,

Association

sxrainion wages, un ine omer ^ Economic
hand' the factor returns to capital o. c.

?—•

——

And a neces¬
sufficient, re¬

im¬

estimation

capital

re¬

quirements constitutes
an
area
very much needing more research,
it seems probable that our stock

wealth

productive

(including

public capital for¬

and

dollar increase

gross

na¬

If we were to in¬
the rate of economic growth

product.

percentage

two

historical

three

points above
one-half

and

our

with a $500 billion GNP,
goal for secular growth

year's expansion
would be $27.5
billion per year instead of $17.5
billion
on
the
historical 3l/2%
growth basis. This extra $10 bil¬
lion of GNP growth would require
additional gross capital formation
of $30-40 billion—if we are talk¬
ing about on-going economic
progress and not just a short-run
spurt.
Adding two
percentage
points to our goal for annual eco¬
nomic expansion, in short, would
require stepping up gross capital
formation about one quarter above
what normally might occur at this
of next
cyclical)

from one'area

to anothei

Continued on page

World Market for Connecticut Products
Business

Connecticut

level of GNP.
This

would require no

small dis¬
some

placement of economic resources.
Nor can we legitimately take re¬
fuge

in the easy answer
obtain this extra

that we

wide

Reason¬

today is

ten

■

complex of thriving businesses

years ago.

making products

These products enjoy

world¬

prestige because Connecticut ranks first in percentage

of skilled workers

utilization of our pro¬
ductive
resources
would be
achieved with output only two or
three
per
cent
above present

Connecticut.

of them born with the Nation, others

unheard

capital
the exist¬

ing slack in our economy.

ably

Grows

the total work force

because the

full

states

this would be only
half of the first year's gross capi¬
tal formation required. For some
levels;

many

cultural, social, educational and recreational

facilities attract

and

in fact, this more rapid rate
growth would have to mean
less output available for non-capi¬
tal-formation uses. Eventually! of
course, the more rapid growth of
total output would offset the ef¬

Area

and

lively, growing

hold

people who want to be

part

economy.

Development

Credit difficulties also

accelerating

for

recession

the annual increments to the labor

expansion,

per

not difficult to see that amidst the
growth which it should be our

earnings even during the re-

years,

Credit Problems

appreciable change is noted in loan
turndowns, although applications_are being screened
more closely.
Credit reasons continue to be number one
in order of importance as reasons for loan turndowns,
followed by the tight money and the inflationary effect
on
the economy of the particular area.
On the whole,

augurs

our resources, with a moderately
higher cost-price level by the end

rates' The continued rise of hour-

increments
provide

formation by taking up

respect to interest rates is expected
firm to slightly higher.
The anticipated de¬
credit is likely to produce a slight upward

The situation with
to

1960

they shouid exert some 0f the year. As we look at the
°n waSe 'Sixties, at last close at hand, it is

assume

would

Interest

one thing

for

well for a fairly full utilization of

developments
with them some important
potential

output to capital formation.

our

(some

the cor¬
finance com¬
to more sub¬
the effect of strikes.

settlement

While

being

com¬

increase

activity

carry

shaping

These

provements in productivity is the
allocation of a larger proportion

economy

depending upon
anticipated in mortgage warehousing
loans due to the tight money situation and secondary
market conditions.
No material change is looked for
in the trend of term loans and a moderate increase is
Less

though

that

responding period in 1959. Loans to sales
panies are expected to show a moderate
stantial

sion in demand that now seems to

per

cent per year rate, what would
this imply for gross capital for¬
mation? This would mean, for an

steady to substantial increase over

output

also
that any significant accelemeans
a
more
rapid gain

output

improvement

per

will

commercial

clearly

will

force

basis foi

ration

the

that the first six
show a steady

now

1960

Formation

enlarged

economic

labor

man.

the

Credit Demand
appears

until

shall

Needsv

crease

fujture.
It

ellments

But

have

tional

would be one of
important factors shaping

the

capital.

While

"•

*
*
*
This review of forces likely to
,

te?hnSogTcafUde- mitigatin® influen<*

our

each

reoccur,

the

ability to; prescribe a
program for accelerating growth.

nonmarket methods of alio-

eating savings.

output: implication for factor prices. For

gain in

cannot be very confident

about

some

And the more rapid

the

double

puts,

getting credit. And in the process
there is forced resort to cumber-

consciously

mation) should rise by something
between three and four dollars for

activity during the first
be significantly af¬
fected by the labor situation in such
critical
industries
as
steel, copper
half of 1960 will

and

output relative to measurable in-

consumer

business

of
in-

These

sources

the

set out

our

be influencing the course of the
force will economy during the next year and
require enlarged capital formation during the next decade leads me
jf we are n0£
lower the rate to these conclusions. The expangrowth

cent

though most all agree that the level

per year.

competition.

know more about this increase in

quirement

for

the

rraearch

sary,

principal industries and for general
the first six months of 1960 is

The outlook for the

together

velopment, and other

Chairman, Credit Policy Commission,
American Bankers Association

Trust Co.,

this

step

of rising wage rates and, in
Some cases, more active foreign

tMnlJfcviS Ptrfi?d? Aj great Tany

know

President, The First Pennsylvania Banking &
r V
Philadelphia, Pa.

inputs

„

cause

interesting question:

were

SOme

KELLY

labor

half

from

total

only 1.7%

raise

other

ences

and

capital

full attention is given to

unless
of our

was

off 3.5%.

rate of economic
growth. There will be incentives
to relieve pressures on costs be-

output grew at the aver-

annual

data

growing output. Ac^ lca > :fr°m 1^89

interesting

Profits are not likely to be as large as last year

the

about

levels.

try.

the

outset we should not overestimate

age

soybeans, but. a larger crop of cottonseed, these three
categories comprising the largest segment of the indus¬

f0r other

0f whether

advancement.

economic

volume of

the vegetable oil processor will remain at high
There is a slightly smaller crop of flaxseed and

may

iess

obvious that this will be

shipped abroad in fairly large quantities.

rather

well be relatively high, particularly if we seriously set about
output for other purposes would to accelerate the rates of gain in
have to be smaller than
at the productivity.
It is to be hoped
present
3V2%
growth
rate
for that we shall not introduce into
roughly the first seven
years, the economy any unnecessary imExpanding our capacity to produce mobility through attempts to hold
itself absorbs production, and dur- interest rate levels .to some pre¬
allocating another 7% of our output to
gross
capital formation,

sent will cause some strains. force jng
imbalance in our work
mat

past, Public Law 480 operated to the advantage of vege¬
table oil processors in that such surplus oils have been

proportion of GNP
going for these other purposes. If
achieving another 2% annual ex¬
pansion in our economy required

THE

HARTFORD

ELECTRIC

LIGHT COMPANY

Hartford

266 Pearl Street

fect of a lower

Serving the busy metropolitan

areas

of Hartford,

Torrington, Stamford and New London.

The Commercial and Financial Chronicle

(330)

Thursday, January 21, 1960

Continued from

page

ALLEN
President,

confined to marginal firms with in¬
experienced or incompetent management.
With regard to collections, the highly industrialized
areas affected by the steel strike report slightly higher
delinquencies in consumer loans; no general trend is
evident with respect to agricultural loan delinquencies,
but in particular areas affected by adverse conditions,
agricultural payments are slower.
Some increase also
but generally

reported

are

certain

sectors

real

loan delinquencies.

estate

■>' t

sible,

this

Our service

area

40,000

some

the

business

outlook

for

Minneapolis - St.
Paul
but extends from
Wisconsin through southern

metropolitan
western

ner

South

cludes

the

also

and

Dakota

three

largest

North

NSP

Generally speaking, business conditions now are ex¬
ceptionally good and prospects for the first half of 1960
appear equally encouraging.
The rise of interest rates
has

not

the

volume

Most

affected
of

the

demand

loans

borrowers

all

for

borrowed

categories

ary

forces

evident

now

still emerging, but such forces
were in the first half of 1959.

are

not

are

Barring extended labor trouble in early 1960, the trend
of business activity is expected to be upward
during all
or most of
1960, although there is no evidence that any¬
expects

one

boom

W. DENIS

low

the

tive

sea,

70 years

some

marine

vantages found
Because

its

ratio,'which

can

times

that

Diesels exact

ago, has

other

high
be

gasoline

W. Denis Kendal]

four

engine,

necessarily made of stronger metals.

These

make

considerably

engines.

farther

less than marine

These
as

well

Diesel

facts

are

much

the nationwide movement to
recreation at
In

the

military,

American
belief

Marc

and

over

three

times

becoming known to industry,

to people of
average income who

the

are

joining

sea.

industry,

the experience of
five years bears out my

past

that we, in

1960, are entering the Diesel decade.
first year of business, four
years ago, American
Marc sold a mere 33
small, lightweight Diesel engines.
In our 1958-59 fiscal
year, the figure was 2600, and we
expect to sell twice that
many during this fiscal year.
In January, American
Marc will create an
entirely
new
American industry when it
begins production of
the world's first Diesel
outboard motor.
In late 1959,
we
had firm orders on hand
for 60,000 marine Diesel
outboards.
In

our

Equally encouraging is the entire picture of
the
craft industry, which
American Marc

rine pleasure
came

the
a

Today, there
the

United

figure will be
I

firmly

sales

will

are

believe
be

7.8 million

States.

owners

year

that

this

the

time,

greater percentage
Diesel powered

field,

year

new

foresee

services.

stand

Because

this

growing, particularly in the
Here, the demand is for
equipment
under rugged

field

conditions.

thnan oper,ate on iet fuel,

anlSwi?a,ny
more

t?ons

r»-

Diesels

+W y
to

power

equipment

such

age

field

our

fierce

competitive struggle,

necessary

of automation and

controls.

these

factors

business. High priority on the new product list will be
given to those items which offer greater convenience to

today's busy homemakers. In addition, processors will
give greater attention to developing improved case and
packaging designs which will lend themselves to easier
handling, quicker identification and more
attractive, dis¬
plays. }'•
V-;
y
y/:1' ■\
At the retail

service

and

area

and

fancy

offer

will

pad

from

into

its

proper

which

impose

continually

have

KENNEDY

addition

will

decade that has

Sixties

...

era

Corporation

propel

our

great

the

economy
"The Soaring

expectation."

most

part

Therefore,

will

Economists

agree

holds great promise for
be

that

our

off

1960

with

the

effort to cut back

bedding and to hold
warranted

Treasury

tfn-

wage increases, the tight
money
situation,
financing problems, international economic
Outweighing all of these will

relations and many others.
be such favorable factors
nation's population and

further

increase in

family formation, plus

tional gain in the level of
income and money
for
discretionary

the

addi¬

available

spending.

While it

seems

apparent that the food

developments,

industry-is in

the

new

the heart of

are

any success¬

trend toward

further accelera¬

harmonious

MAXWELL

KING

President, Pacific Finance Corporation
Further

increases in the use of consumer credit and a
continued upward trend in the
economy are in prospect

for

1960, provided there is

tion

brought

last

half

no repetition of the disrupr
prolonged steel strike in the

the

1959.-The

finance

dustry should benefit by
of

about

installment
level
will

billion

credit

around

not

consumer

outstanding
$42

in¬

increase

billion.,

This

great an increase as
1959, when the gain in outstand¬
ings amounted to $3.6 billion by the
as

end

the

celerated

porting
level

third

rate

quarter.

gain

structure

The

and

the

de¬
sup¬

increasing

disposable personal income
rising
production
will
keep

and

credit

sound

income

personal

rate

the fourth

with

basis.

Disposable

should

around

reach

$360

the

quarter of 1960,
estimated $341

fourth

quarter

billion
Maxwell C. King

com¬

bil¬

1959.

The

production
of 153
quarter of 1959 before dropping back
as a result
of the steel strike, can be
expected to ad¬
vance
through 1960 to a fourth quarter average of
index, which reached
in

the

about

high quarterly

average

second

159.

Estimates

set

passenger car production by American
in
1960 at 6.7
million, an increase of

manufacturers

1959 production. Retail sales have been
between 6.3 and 6.8 million units.
Both
would be the second
highest on

estimated
levels

over

record,

only by 1955's production of 7.9 million
of

7.1

million.

expected
It

Increased sales of used
late

models

cars

into

come

topped

and

can

the

Boat

financing,

which

rapidly growing segments
tinue

sales of
mated
of

grow
new

motors

1960.

record

been
the

and

volume

trailers in

cars
cars

•

the

industry, should
for

1959

most
con¬

retail
esti¬

Following the pattern

the proportion
time has

one

dollar

$465 million.

sales,

sold

Total

boats, motors

automobile

and

has

market.

can

sales

also

expected that 60% to 65% of the new
and
more
than half,
perhaps 60% of the used
will be purchased on the
instalment

con¬

feather-

the line

foregoing
food

plan.

There will be the shadows
of

tinuing problems in 1960. I refer to
the
inflationary forces, a possibility
of further
labor-management strife

improved

industry as a whole placing
the further training and improve¬
personnel since, in the final analysis, in¬

the

about 22%

The food
industry did well in the
so-called recession of 1958 and
fared
even
better in 1959, in
spite of the
national steel strike.
Food execu¬
tives
invariably believe the food
business will be good in
1960, and
foresee a steady,
healthy growth in
the 60's.

for

cooperation
all segments of the food business. Through such
cooperation the entire industry will be in a better posi¬
tion to take advantage of the
many opportunities for
growth which lie ahead in the ensuing months.

country.

proper start.

Kennedy

the

conclusion, 1960 should produce
of

lion

nation's

already been termed

for

S. M.

find

its

pared
Foods

possibilities

among

perspective, 1960 is the launching

excellent

sales and profit picture.

always be ready to supply its

President, Consolidated
in

see more merchandising
promoting convenience items
plus non foods, since these products

foods,

operators

annual

Placed

level, 1960 should

activities centered around

tion

will

ful operation.

to come.

tighter production and accounting

During 1960, the manufacturing end of the food indus¬
try will undoubtedly devote increasing expenditures to
the
research
and
development of an ever-expanding
array of new and improved products' since these innova¬
tions have proved the life blood of the modern
food

ment

industries, and the in¬
and
machinery.
We

change

growth

electrical requirements.

can

horse a"d carriage
greatest growth in the

and

plants,

ad¬

and in radar installa-

this

formed, well-trained people

many

use

at Red Rock, south of St.
Paul, and an
island in the Mississippi River close to Red
Wing. These
isites were acquired in order that
they may be available
when we need to build new
plants 10 years hence.
We have confidence in the
prosperity and growth of

the

com-

y'y

continue

vantageous

year

controls

acquired sites

be¬

that

176,000

now more readily avail-

daysG i^staltlnf1]^1 nAU?t^ korn in
space

fact

we see

increase

kilowatts of capability and will
place a similar size unit
in service in 1960. Actual construction on our 66,000
kilowatt atomic Pathfinder plant near Sioux
Falls will
begin this year, and the plant is scheduled for
comple¬
tion in 1962.
For future steam power

ma¬

military installations is
Defense Department is ordering

i0nS 3nd llghting ^sterns

The

increasing demands for electric service, we are now
making definite plans to be ready to meet such demands.
In 1959 we placed in service a
generating unit of

armed

that

businesses

future

electric

also

them

year.

significant

vantages of the Diesel become
better known, particularly
among the engine-wise skilled
workers of America who
today make up 32% of the boat
owning population.'
The use of Diesel
engines in combination with
generators

toward

automatic

these

the

dollars.

competi¬

food firms will make greater use of modern mar¬
keting tools to provide ; them with
sales • increases.
Through the proper utilization of, up-to-date marketing
procedures, progressive companies will gain a competi¬
tive edge, partially because they will be in a
more ad¬

rates

home

new

which is equivalent to doubling
for 1960 places the sales

year,

contribute

pleasure boats

than 8.2 million.

that

aid

greater emphasis

bulge in 1959.
longer look into the future,

part of this past summer when
it introduced
the country's first
complete line of Diesel powered boats.
m

our area for several years

ma¬

economy is yet another impor¬
the boat owner who is able to

per

take

troduction

boaters.

fuel costing
gasoline.

area.

effect

following the slowing down

can

hazard, long

consideration

travel

our

interest

mortgage

slight retarding

lishment of

This danger is eliminated in boats with
Diesel power
because Diesel fuel is non-combustible
outside the com¬
bustion chamber. Diesel
tant

Among the most important of
these factors are the
ever-growing population, the ex¬
pansion of the use of electricity in the
home, the estab¬

them

major advantage to owners of Diesel powered
pleasure craft is the absence of fire
menace to

levels of

present

only

electricity

This, and

there

prime

buildings is indica¬
requirements of many busi¬

space

our

that

1958 and

factors

are

are fewer
moving parts, also means
maintenance problems.
All these factors add
up
tremendous economy advantages.

nearly

over

fewer

considered

Construction

every 10 years.
The outlook
on the
long-term trend line
in

Diesels

rine

have

just
;

ratio,

firms.

energy sales of NSP for 1959 showed
increase of about 10% compared with a
314% increase
in
1958.
For
1960 we are anticipating about
an
8%
increase over 1959.
Our long-term rate of growth is

energy from fuel than other engines.
fuel itself costs
considerably less than gasoline.Because of their high
compression

business

ad¬

more durable than other

"j. Total, electric

The

the fact that

and

growing

construction

engine.
as

sales

Residential building

feel

will

compression
much

re¬

activity will probably con¬
the high level established in 1959. As
increase in residential customers, it
appears
in 1959 we will show a gain of more
tnan
15,000
customers,
but
for
1960
we
estimate
a
gain of slightly under 15,000 customers.
In
con¬
sidering new residential construction prospects for 1960,

pleasure craft, today's Sunday sailors
are
turning to the Diesel engine
because of the safety factor.
The
Diesel engine, since
it was
invented

the

by
that

thousands

NSP

commercial and industrial

measured

prime factors.

tinue

today.

military applica¬
tions, the small Diesel is beginning
to repalce gasoline
engines, particu¬
larly when durability and economy
are

The

individuals

nesses.

In industrial and

•

1958.

numerous

Diesel

States

customers

territory, the year 1960 should be one of
expanding business activity and general prosperity for

the growing use of Diesel engines
applications is making the manu¬

United

industrial

For the NSP

engines one
of the fastest
growing power indus¬

tries

both

small

lines for the food

endured.

many

12% in 1959 compared to
department stores, shopping
centers, office and business buildings, hotels and the like
were up 17%
in 1959 compared to 9% in 1958.

sea,

horse-power

facture

and
agencies must be patiently
others, including the ever-growing

of non-food

keen.

industrial customers increased

Diesel.
on

The cran¬

use

KENDALL

President, American Marc, Inc.

On land and

are

Competition within the .industry will

covered in the year 1959 from the slowing down experi¬
enced in 1958. Kilowatt-hour sales to manufacturing and

Nineteen-sixty will mark the beginning of the decade of
the small

:yy

■

industry will have its share of special prob¬

position to solve the problem of obtaining
sales increases while simultaneously keeping
prices down and maintaining adequate profits. Playing
a key role
in these achievements will be an intensified

The commercial and

top of present levels.

tion

they

and

sales.

and
high.

money

continues

growth

industry. The bene¬
fits of such a wide diversity of busi¬
nesses
have again been apparent as
we look back on 1959 operations. The
disruptive effects of the steel strike,
which produced a minor industrial
Allen S. King
recession in many parts of the United
'[*:£:■ :
'
V v
states, had no apparent effect on our over-all industrial

aware

There

860,000 utility cus¬

over

continued

committees

where

area

predominating

the money situation,
and thfc increase in interest rates is generally
being ac¬
cepted without adverse reactions. Some mild inflation¬
are

serves

this

i' ;,y yyy

;

berry incident will not be easily forgotten. The further
time-consuming and costly investigations of government

tomers, principally electric and gas,
there is a wide diversity of industry
and agriculture without any single

future.

near

Dakota.

for

lems that always add new hazards to business.

in¬

cities

climate

favorable climate to solidify and expand its share
of the
market..
;AThe food

area

Minnesota into the southeastern cor¬

the

miles centers

square

favorable

development in 1960, and I sincerely believe it is, that in
itself does not automatically guarantee the
progress of
individual organizations since the success of each
com¬
pany will depend on how astutely it capitalizes on this

the

around

writing, even with a steel strike still pos¬
is a general feeling of confidence among

there

bankers

another successful

in 1959 with operating revenues increasing for the

As of

Company

Power

26th consecutive year.

y^y/yv.' %.

States

Northern States Power Company had
year

mortgage

Business Outlook

Northern

extremely

KING

been

outboard

boats

upward trend
60%. The rising
trend of instalment credit
outstanding on mobile homes
is
also expected to continue.
An
estimated
85% of
mobile homes are
bought on the instalment plan. An
increase of 5% to 7.5% in
furniture volume is forecast
for 1960 and sales of
appliances are expected to be
about 7%
beter than in 1959.
Improvements in these
and

currently at between 58%

and

Number 5918

Volume 191

The Commercial

and

should all be reflected in finance industry reports
according to the latest available figures, 55% of
furniture buyers and 52%. to 55% of appliance buyers
are credit customers.
~
Increased emphasis on the use of credit through ad¬
vertising campaigns, the entry of more businesses into
the credit field, and the broadening of credit services
will intensify competition.. With no present indication
of any softening of interest rates or greater availability
lines

S.*, - KENNEDY ;.C

•.

ha*

itc

prof

outlook for a continuation of . the upward
business in, our service area.:,looks favorable
Although the? estimates show a'* slight slowing
the rate of growth, the entire area we serve
homa and Western Arkansas shows
7

original

equipment

trend of
for 1960/
down in
in Okla¬

range of products to
think new
records
are

has

Construction

begun

RALPH

266,000

ft.

sq.

sion of
for
Donald S.

Blue

Bell,

the

Many other
in

industries

service

our

Aircraft

;

tile

and

lines.

Cotton
Flour

number

large

shopping

Oklahoma
Plant

Gas

and

kilowatt

Oklahoma

near

total system

$80

increase

sales

new

Our

soft

home starts in the Spring of

con¬

completed

long-term

anced

•

•.

accessories.

South

last

plant

good

amounted

million

program is also
Capital expenditures in fiscal

.Transcona, Canada; construction of
at
?

Bensenville,

plant

East

plant, and conversion of

development of downtown parent stores and sub¬
We believe our outlook for long-range

growth continues to be favorable and 1960 should see a
continuation of the steady upward trend that has char¬
acterized Federated's past record.

plans call for

Clevite

Corporation

profits

are

not yet

than

was

approximately 50%

spent during the past fiscal

Continued

during

its

hood of $82 million,

The Plastic Wire & Cable

and earnings something in excess of

$3.00 per share.

This compares with sales of $63

anLear,nings
What's

Manufacturers of Electrical Wires,

$L60

ahead?

should be good.

operating

and

Second,

feel that from

automotive

Jewett City,

Corporation

Cables and Cord Sets

Conn.

financial,

Average Number

have never

Net

of Shares

Income

Net

walk-out

business today-.

our

marketing point of view,

been stronger.
Last year's steel
our

million

per share in 1958.
First, the general climate of business

Fiscal
is

affecting

Net

Income

Outstanding

per

Year

segment of

Sales

(as amended)

During Year

In the last quarter of 1959, some of

customers

had

slow

lines

their

99,500

$ .58

252,275

99,500

2.30

9,226,499

374,813

101,792

3.35

1953

8,567,520

278,957

108,667

2.33

1954

6,202,502

248,967

133,327

1.87

1955

8,512,565

322,548

147,663

2.18

1956

11,427,775

682,404

164,861

4.14

1957

12,302,916

754,656

178,208

4.23

1958

10,093,714

303,313

186,594

1.63

1959

12,311,796

462,934

197,382

2.35

1950

$ 2,920,320

1951

5,972,228

1952

$ 63,587

close down their
plants for lack of steel.
For

suppliers

Postponement

components

Production resulted
at

ourselves,

the

results

However,

orders.

the

were

loss

depletion of new; car stocks

the

dealer level and today, cars must be produced
only f0r sale, but to replenish inventories. A first
Quarter build of
perhaps 2.5' million cars and trucks
not

seems

likely. For the full year, Detroit is predicting
°tal of 6.8
million cars and 1.2 million trucks.
With the total
nan

sion

bearings,*

other

All

significantly larger

it was last
year, our sales of engine

rubber-and-metal

automotive

levels.

areas

automotive market

signs
of

the

point

components
7
'
to

economy

959, the automotive

which

reach

and

high

parts
new

....*.

increased

market

and transmis¬

suspension

should
.

pace
are

in: the

other

interested.

In I

provided little more than

year.

One of the

major items in the current year's program will be the

last year enjoyed
the best sales
history. Though consolidated figures
available, sales-should be in the neighbor¬

molding
in

record $12,000,000 to be spent

plant additions in 1960,

President, Clevite Corp.
and

molding

Bluffs, Iowa, to the manufacture of cast iron
pipe. Manufacturing of this new product line
in February.
The balance of our capital
expenditures
went
for
cost
reduction
projects
and
several important new processes.

LAFFER

sand

shell

wheel plant

begin

approximately $60 million.

WILLIAM

a
a

chilled iron

pressure

-will

urban branches.

research laboratory

Council

Present

•

plan to continue our program of bal¬

Illinois; conversion of
Chicago, Indiana, into

three-year period ended 1959, and we estimate con¬
struction expenditures
during the next three; years will
amount to

the

improvement

pace.

bringing

construction

new

consider

over

Mustang

summer,

Bend

$8,000,000, or about $3,000,000
;less than the record-breaking additions made in 1958.
A major portion of this outlay covered the following
projects: completion of a new steel wheel plant at

Ralph Lazarus

At Federated, we

and

the

subsidiary to be
excellent and its operations should have a healthy effect
on future earnings.

expected
strong upswing during the first half of 1960.
Similarly, our stores in cities with important steel
fabricating industries should show slightly larger gains
reflecting
the recovery from steel shortages which
resulted
in some
unemployment in steel fabricating
be

tools

prospects

1959

being

machine

growth

goods

non-railway customers.

Generating
the
1,138,000 kilowatts. The com¬

City

capability to

pany expended
the

expected

are

both soft and hard

industries.

Company
its

The

other

the

volume.

increases
over

industries should exceed the average

refineries

are

were

product list was expanded further when in June
we
acquired South Bend Lathe, Inc., of South Bend,
Indiana, which for more than half a century has been a
leading producer of precision metal-working lathes and

im¬

stantial employment in capital goods

pipe lines

areas

Electric

addition

sales

factors

which

continued and

Our

disposable income

expected

past

sales

figures

antici¬

Federated stores in cities with sub¬

structed in the towns we serve. The largest is the Penn
Square Center in Oklahoma City, which will have more
than 500,000 sq. feet, of
building space with parking for
5,000 cars.

240,000

our

bettered in the last quar¬

year's sales testifies to the
Approximately 59% of total
sales was accounted for by our traditional business—
railroad equipment—while the remaining 41% was made
up of a diversified list of non-railway products, includ¬
ing roller chains and sprockets, coating and wrapping
pipe, hydraulic machinery, boring mills and industral
steel castings.
This broad sales spread is in sharp con¬
trast to the early postwar period when only 10% of our

1960.

Steel

steel
been,

effectiveness.

continuing at

packing

Oil

processing

appear

this

program's

than in hard goods because of an
anticipated decrease of 10% to 15%

Oil

milling

Food
A

oil

the
have

ter of the fiscal year.

breakdown

and

national gain as this segment of the economy is

Meat

seed

goods probably will be slightly higher

Glass

;

are

Sales
extend

their facilities

Furniture

1960.

contributing

increase

include:

Containers

well

increase

portant

expanding

are

These

area.

Brick

-V

chandise

Dixie

Inc.;

sales

would

launched shortly after the War, was

was

markets.

a continuation of the pattern of
"trading up" to better quality mer¬

and

City.

both

for

except

record

Our diversification program,

and

its

the world's largest manufacturer of
sport clothes, has announced the opening of
a
plant in Seminole, Oklahoma, to employ 275. This is
the company's third plant in Oklahoma.
International
Harvester
Company is constructing a
new plant and warehouse
of 80,000 sq. ft. in Oklahoma
work

and

this

equaled
Joseph B. Lanterman

LAZARUS

Dayton, Ohio, whose sales

1959

pated

Kennedy

•

strike

are
looking forward to an 8% sales increase in the
first six months of 1960,
including the operations of new
units other than the recently
acquired Rike-Kumler divi¬

nearly doubles the size of this

and

plant.

likely

the highest for any
period in the company's

were

-Cup Company plant in Fprt Smith, Arkansas, which will
add

\history

President, Federated Department Stores, Inc.

addition

well-diversified

three-month

small British electronics
company,

wide

million expansion
Ada, Oklahoma plant, increasing
to
million barrels annually.

$20

$2,773,000

royalty and licensing agreements with bearings and
electronic companies in
Brazil, Mexico, Australia, Eng¬
land, and several other European countries.
In brief, Clevite is in
excellent condition and is
selling

telephone service. This

at its
capacity from

Germany.

interest in

and

switching equipment for

program

New

profit in 1960.

reported to be a $35 million plant.
Ideal Cement
Company has just

completed

railroad

have an

Electric, the manufacturr
subsidiary of AT&T,; expects to
open its plant in Oklahoma City by
the spring of 1960, which will em- ';,
ploy 5,000 persons in the manufac¬

farm,

September 30,

$5.30 per share, from $4,524,$3.50 per share, earned a
year ago.
This amounts to a gain of
51% in per share earnings; * Sales of;
$112,311,287 in fiscal 1959 rose 19%.
from last year's volume of $94,543,123.- Our, third quarter earnings of

us earn good in¬
this section of our business.
In addition to 13
plants in the United States, Clevite
owns.and operates plants in Canada
and

creases

Western

ture of dial

for

durable goods producers.

operations

quarter

1959, net income increased to $7,168,-

027,
393,

andt improved products should help

ing

long distance

components

consumer

last

fiscal year ended

our

our domestic business covers a broad
industry, ranging from replacement parts

-SQuipihent and

further prod¬

in our long range

Although the steel strike adversely
affected

Tlie remainder of
of

.to

Lanterman

plant expansion program, all contributed to make fiscal
1959 a satisfactory year for American Steel Foundries.

a£

uct diversification and marked progress

and iS operatinS at S°od sales and
thr?e product divisions are transistors and diodes,

spectrum

^ v

^"-vV,-v-;

■"

LANTERMAN t

Joseph

Substantial increases in sales and earnings,

active and many new or /
expanding industries are adding to
employment and income. Some of
the larger developments are as fol¬
7 *

President,

much

are

•

both

;

JOSEPH

industry

P^zoelectric products. Of these divi-.
nf tJua
Jtransistor, the country's largest producer
«oi?, in in2n
computer diodes, should show the largest
gain
iybi).

great vitality in a growing, economy.
Residential and commercial building

lows:

;

ft levels1

linne

President^ Oklahoma Gas & .Electric Company
The

An almost equal dollar

e automotive business. By manour major electronics units
m sPecialized areas of its large poa result» each has a leading position

n,i

Win?'™tn-fraJ

»>

are

asTm

it is unlikely , that the increased
competition will result in; more favorable credit terms
for the consumer.
The extension of credit during i960
may
in fact, Xbe on -a somewhat'more selective basis
than during the past year.
>•>'V,
DONALD

electronics.-

hiphpl+no raA?S of- the electronics

however,

money,.

(331)

vofurnp1"onrvv!: ^Ur totial sales>
came from
volume

since

Financial Chronicle

page

Continued from
a

■'

come.

order

Start of

1959).
in

other lines,

our

1960

From

the

for

encouraging

Particularly

Controlled

Griffin

subsidiary,

cwned

Pouring

Pressure

the

Process

model

1960

Wheel

Company,

economy

the

that

should

wholly-

our

application in the steel industry for the manufacture of
semi-finished
steel
products as
blooms, slabs,

the production of steel freight car wheels.
This month operations will begin at the new pilot plant
cipally

Bensenville,

the

application

and within

process

whether

feasible

semi-finished

JOHN

can

be developed.

"y-

Howard

F.; Leopold
•

A.' LAWLER

ins, with the traded

President, Aeronca Manufacturing Corp.

with

this

extent,

factor

year

of major adjustments to the declining proportion of
aircraft with the increasing necessity for pro¬
duction of all types of missiles. Adjustments in produc¬

nomic forces tend to keep more

manned

road when

cause concern

ductive
eral

capacity.

shows

absorb

The

their

field

started

progress

has

few

been

years

made

gen¬

travel to kitchen sinks

1960

for Aeronca.

and

It will

should

...

into the

commercial

agreement

best

organizations,
bring with it

may

become

least

be strengthened

division

$12,000,000

With the support of the research
and
Aeronca can add to

Protecto

New

York

Aeronca

commercial

and

seat

sales.

Metal

in the

for

work

Division

Aeronca

is being done at
Middletown, Ohio. The

been

years.

During

sales.

important

Aeronca

moves

well

into

the

into space and onto the

Peter

planning

for

and Mars.

and

the

Division, Aeronca is engaged
principally in
manufacturing large subassemblies for military and
commercial jet aircraft.

Middletown, production includes
training target
subassemblies, air transportable shelters and

missiles and

support

equipment for missile and, electronic
Aeronca today is the largest
producer of
brazed stainless steel
honeycomb structures in the indus¬
try, and is engaged in further
advanced research and
production of ceramic adhesive
sandwich and develop™ent of production processes
in exotic metals such
as
beryllium and others.
'

applications.

The

Aerocal
Diyision is also
structures and missile assemblies
in

such

COnd?ctin%
materials

esses°
*n
thA

siles

producing air vehicle
for the nation's defense

a strong program of research

exotic

molybdenum. Rene

r incorP°ration. into production
its
r

combined

also

were

aid

Ero's

acquired in Texas during
penetration of the

further

1960, which will be additionally imple¬
manufacturing facilities are completed

and

increased

income,

leisure

time

look for

divisions, Aeronca has

the

Elmer L. Lindseth

40%.

Marine

and

proe-

facilities

m,ana8ement team to continue to be a leader in
b.oth
d space iUte ey
tiavel activities.for manned aircraft, misr

It will continue to
take

"•

-i T-'

Thus,

total unemployment

during

period at no time exceeded 5%.
- /
V I
the resumption of
jte^^operations,;JJie^-arpa^

With

vigorously; By-^the end ofjthe

responded

economy

yeaiy

weekly power requirements were within about 4% of
pre-strike levels, and other indicators confirmed that
Northeast
Ohio's economy> generally had returned to
the

high mid-year level.,

The first year's
saw

■>
V/.'*: .'./'"Vi,-..
operations,of the- St. Lawrence Seaway

estimated

200,000 tons
of foreign', shippingCleveland, almost triple the 1958

handled at the Port of

With

tonnage.
work

continued expansion of Ohio's net¬
highways; the Seaway will become
to an ever-widening hinterland,% and

the

multi-land

accessible

take

011

Ohio

economy.

major role, in the Northeast
V.V:->•
i.:
V
Traditionally, Ohio's rate of growth parallels; that of

the

nation

increase
The

•

whole

industrial

and

outlook

tinued
Lake

for

■

both

1960

regard

population

expansion.

Northeast

growth

both

Ohio

these

respects.

for

con¬

Significantly;

County, adjoining Greater Cleveland, is the fastest-

growing
in

increasingly

county

the

state.

The

entire

four-county

expects to receive its full share of the 8%

industrial

production

forecast

for the

increasd

nation

the

ahead.

year

The area, although intensively
much

prime

land

establishments,
which

make

available

industrialized, still has
factories, commercial

for

and homes.
the region

The

are

various

communities

keenly aware of the
businesses to fill these

importance of bringing in new
sites, and are determined to maintain the good business
climate which has long been an Ohio asset.
Many local
organizations
as

contribute

of publicizing

program

continuing

the area's

industrial location.

nation-wide

manifold

This program

advantages
will be carried

forward

vigorously in 1960, and all possible assistance
provided to businesses interested in locating here.
In sum, Northeast
Ohio, long advertised as "The Best
Location in the Nation," looks forward to a
resumption
in 1960 of its long-term trend of continued
growth and
increasing prosperity.

—

Coast

volume

insulated

winter

underwear

for

We also made
barbell

substantial

freight advantage in

our. market

area,

LIPSCOMB

Traffic

Pan American World

and

Sales,

Airways

The year 1960 will

see the world shrunk
by 40% as Pan
World Airways links the United States
by jet
service with the major centers of
industry and commerce

American

throughout the
additions

service,

world.

its

Caribbean,

Pan American

round-the-world

jet

schedules

recently announced

jet
the

to European cities, and
in the Pacific, including

points

Sydney, Australia. During the peak
transatlantic
period
next
summer,
Pan Am flights will be
made almost
totally with jet aircraft.

market

While shipments did not begin until late in
was nevertheless impressive.
With

Vice-President,

the high

These sales in

products

expect full year sales in 1960 to make

—

strike

the

bear fruit

banner year for

sporting goods products.
almost

also

the first half, volume
a

s';

did much to offset the strike's effects.

WILLIS

With the increase

Our

new

successful entry into the central states

For

the

year

whole,

Pan

American expects to offer 25%

passenger
more

capacity and about 34%
cargo capacity than it did in

1959.

major advance.
furniture sales organization was absorbed late in 1959, the principals of which were
placed
in charge of a new division to market the
combined

Pacific, effective Jan. l, lower com¬
modity rates in the Atlantic area and

metal furniture lines of Ero and

well

Ero's

Relaxon

the

hassocks

acquired

line.

Sales

company,
of these

New lower bulk
cargo

products in 1960
tion and

in the

are expected to reflect both the
acquisi¬
the strengthened sales organization.

Realignment of our manufacturing facilities will
pro¬
a major
cost-cutting advantage in 1960. The fourth

to sell

seven

years to our Hazlehurst plant enabled
former plant in Philadelphia
during 1959. As

result of lower production costs at

ship

Hazlehurst,

can

economically to Eastern Seaboard customers
facility. Full benefit of this shift will
Moving our Texas operations into a
leased special-purpose plant to be
completed in the
Greater Dallas area early in 1960 will cut
manufacturing
costs by approximately 40%.
Increasing use of automated

from the southern

be realized in 1960.

office equipment will act to hold other costs in line.
We also expect to continue our

policy of adding items

to our line which

ment

and

can

marketed

There is

be manufactured

through present

much

room

in the present economy
of that economy.

present equip¬
distribution chan¬

for individual growth with¬

potential for further growth

Rising costs can be fought, and com¬
petition is not new in America; 1960 offers
promise, and
every year demands unremitting effort.

stimulate

of air cargo

tendency, noted
length of the

eri 2 ",e*s"

rate

Willis G.

Lipscomb

the
a

considerable

increase

by shippers and importers in the

states and throughout

The

increased

over

the world, Pan Am said.
past decade, toward an

the

average

trip, will be accentuated

With round-the-world

trips now possible
all-jet schedule, and once difficult and
long (trips to places like Australia and
South Africa, now
made quick and
easy, more and more travelers will visit
•

rate, should

use

vide

addition in

rates in the

transatlantic 500-kilo bulk
giving a discount of 35% from

one-kilo

nels.

moon

Middletown

ground

chain

activity, which has greatly increased
importance during recent years,

A national metal

Dr.

Aero.cal. Division of Torrance, Calif.,

national

stores, established in
improved sales in 1959

invested

in February.

during 1959,

range

placed Aeronca squarely into the missile
field.
of

Our

specialty

of the market to include outdoor workers.

safety beacon encoder, a power distribution
panel and
an infra-red
tracking system. These and other projects

Presently, under the technical direction

auto

sportsmen, which jumped almost 100% last year, is ex¬
pected to continue upward with the current development

name is new, this
organization has
Division of Aeronca for more than
that time it has developed ground

Castruccio,

expected to respond to the increasing interest in boating
and aquatic sports. Renewed interest in home
exercising
is having a favorable effect on our exercise machine

support equipment for the Talos and Atlas
missiles, de¬
signed and supplied electronic devices such

seat

Guard-approved life jackets, floating boat cushions, and
lightweight life belts and vests for water skiers—are

While the

associated

five

health

1959

for that development for Aeronca
placed with the Aerospace Division of Balti¬

more, Md.

will

area

1960.

our

responsibility

been

car

expectation for

our

Ero's diversification in other lines will

exciting stainless steel "Swirl-Flo" sinks are
principal products of this division.
Along with its interest in the commercial field,
Aeronca,
like the nation, is
basing much, of its future develop¬
ment on its
ability in the space program.
The

market.

cover

businesses

they

Southwest

among the

has

seat

franchise

mented when

and

new

50% of foreign

the

addition, the area's commercial

area

covers.

in fact begin to offer ready-made

we may

level of personal

Products

using seat

now

these two makes duririg 1960.

cover

1959;

development which

City.

Other commercial
the

families pur¬

for

cars

enjoyed considerably
over the initial period of operation.
New stores added
during the year will in turn reach higher sales in 1960,
and we plan to open 20 or more additional units.
Two

Buensod-Stacey was organized in 1935, and has
principal fabricating plants at Charlotte, N. C. and
Bronx, New York City. The executive offices are

two

cars

mid-1958,

product.
the

for

broadened

substan¬

Buensod-Stacey's "know-how" Aer¬
will be able to increase these sales
and to better the

onca

new

Other factors also contribute

merge.
Buensod-Stacey, one of the
conditioning installation and design

will
at

"second"

good year for Ero, which should increase its share of the

work

air

extent

volume,

covers

February if the shareholders of Aeronca arid
Buensod-Stacey of New York approve the Board of Direc¬
tors'

industry in a num¬
To begin with, the smaller autos will to a
cover

com¬

tially in

nation's

cars,

We expect foreign cars to represent
10% of
growing made-to-measure business. Since Volks¬

cover

mercial business field.
Our

the cake for seat coyer
in fact, are the first

economy

wagens and Renaults contribute

good business year

moves

of the older cars on the

dollars

products.

covers.

Ero's

result,

year

of change and
progress.
planned, and we anticipate further

for chemicals, rubber and
plastics, and other non-ferrous

eco¬

The increasing number of foreign cars on the road has
also created a substantial new market for custom-made

of expansion and growth
A strong sales program is

are

hand,

covers to improve the utilitarian upholstery of
priced autos. This is virtually double the per¬

centage of

year

from mis¬

siles and manned aircraft.

Lawler

new

major market for the seat

the lower

Presently, Aeronca spreads its
production
knowledge from
space

sales

down, thus acting as a built-

are

just the frosting

The

considerable

since.

John

than

decorative

ago

car

other

lies

plants

ordi¬

chasing them, thus increasing total auto industry sales.
Even more significantly, seat covers will
be, sold to per¬
haps 40% to 50% of economy car buyers, who will use

inter¬

each

sales

new

the

volume.

cover

new car

ber of years.

should present opportunities for fur¬

ests

are

the seat cover industry.
This year, however, new car sales promise to provide

new

utility aircraft production
healthy growth picture and

ther development in 1960.
Efforts to spread Aeronca's

seat

business.

pro¬

many established aircraft manufac¬
turers who will find new and related
fields of action

cars

new

in compensator for

tion schedules and allocation of funds

be expected to

millions

>:: 'y>,

usually dressed up'by the dealer

car

covers.

new

Nineteen sixty for the aircraft industry promises to be a

may

outfitted with seat covers,
principally clear plastic cavers to
"I protect the interiors of higher priced
models without hiding their luxuri¬
ous upholstery. Also, more than 80%
of new car purchases involve trade-

with

it will be known
method of producing

efficient

products

25%

Some

narily

year or two

and

steel

seat covers.

the

The

States

United
our

where

other than wheels, will be explored.
Steel Corporation
isd experimenting

process,

Illinois,

understood that the prin¬

the road.

this

expanding its steelmaking and steel
fabricating facilities, has seen many

But

for

diversity of the
region's economy. Since World War
II
Northeast Ohio,
in addition to

two to three years,

The process is now used prin¬

tube rounds.

sold.

anticipated.

been

reason

constantly growing

These cars, every
become potential
customers for restoring their interior
attractiveness
inexpensively
with

ready

such

billets and

will

cars

have

The

cipal auto seat cover market is rep¬
resented by the 67 million cars al¬

have

may

might

the expectation of successful sales of
automobiles, and more particularly on the
auto industry's estimate that IV4 to
IV2
million of the
new
domestic

is equally

fact

•

is based in part on

indicates that prospects for 1960 are

long range viewpoint, the outlook

;

the

major steel centers, of course felt the impact
However, the effect on business gen¬

indication that 1960 will be a good year
automobile seat cover industry. This judgment

highly favorable.
bright.

Co.

one

erally, despite the complete shutdown of all steel mills
in the ' area, was less severe than

President, Ero Manufacturing Co.

(compared with about 50,000

area,as

of the 1959 strike.

There is every

in
This, together with the improvements expected
during

cars

Illuminating

Electric

Cleveland-Northeast * Ohio

nation's

LEOPOLD

HOWARD

compared with $21,000,000 a year ago.' Expectations are
that the railroad industry will order as many as 60,000
new

LINDSETH

Cleveland

The

President,
The

year

backlog

our

■

ahead, the outlook seems excellent.
on Oct.
1, 1959, which marks the
current fiscal year, amounted to $34,000,000,

the

for

Thursday, January 21, 1960

positive position to grow in I960 and for many years to

new

Our

ELMER

Through

'•giant steps" into commercial fields, however.
this diversification effort also,
Aeronca will

page

steel wheel plant in Bensenville, on
which construction is scheduled to start before June 1.
building of

Financial Chronicle

The Commercial and

(332)

59 hours

these

formerly distant lands.
advantages of jet travel

These

will help to fill the jet
capacity to be offered in 1960
by airlines now taking
delivery of the new equipment.
Another major inducement to
travelers would be a

worldwide economy fare. The
airline submitted proposals
for such a fare at
the International Air

Transport Asso¬
last, fall and says it will
reductions at future meetings. Pan
An}» by pressing for a worldwide economy fare, said it
is
following its traditional low-fare
policy. This policy
culminated in the first overseas
tourist fare in 1948, to
Puerto Rico, in a tourist fare
across the Atlantic in
1952,
ciation
press

and

meeting in

for such

Honolulu

fare

the transatlantic
economy

fare in 1958.

Number 5918

Volume 191

. ...

The Commercial

and Financial Chronicle

LIVINGSTON

IIOMER J.

again

National Bank of Chicago,

President, The First

resumption of steel operations on November 7,
♦hp economy has demonstrated
again the same remarkip
degree of resiliency which has characterized the
it strike periods of the past. The settlement of the
Srike announced on January 4 re¬
the

one element of uncertainty
possibility of another pro¬
mpted interruption in the product on of steel.
This should be helpful
to the economy and
contribute to a
resumption of the upward trend that
marked the first half of 1959 until it
'as interrupted by the steel strike.
Yet to be determined however, are
the cost-price adjustments that may

■:

■«

Tan

ofierincr
offering

an
:

Chicago, Illinois

one-year

thriffap^mfn/6 ♦lme wiU be
nothing

In the

are

Livingston

developments,

output of

likely

of these two factors, the total value

nation are
1960, especially in

goods and services of the

considerably in
year.
Furthermore, the physical
output of our factories, mines and utilities will rise
sharply.
Employment, incomes and corporate profits
will continue their upward trends and reach new high

the

first

levels.

move

half

the

these

circumstances, the upward trend in
evidence during the past year in the buying of consumer
durables, such as automobiles and appliances, is likely
manifestation

business

activity

This demand for

will

the

anticipated

high

demand

strong

of
credit.

level

for

loans, coupled with the probable con¬

tinuation of the present restrictive credit policies of the
Federal Reserve System, suggests that credit will be
tight and interest rates firm and under some upward
pressure.

Board's

interest

unrealistic
4%

rates

5,554,082
Jan. 5,
1959, and exceeded the 1958 maxi¬
mum
day's send-out -by 9%. Output
of
electricity reached
12.7 billion
kilowatthours, and a total of 806 mil¬

relation
rate

ff'.-V-^fP^fff;.'f"

up.

the

which

;

Donald C. Luce

forced

construction

51/4%

interest

loans

rates

What good is

VA-guaranteed mortgages
that basis in the face of

is'

generally

will

soon

this is done,

Inability

believed

can

expect

home

the

Federal

rediscount

even

tighter

financing

obtain

Administration

that

its

rate

pany's construction expenditures have exceeded $100.000,000 and will bring to more than a billion dollars the
amount expended for additions
and improvements to

under

loan

Reserve

again,

the

except

Additions
clude

particularly important to that large part
consisting of families who sell
existing homes and buy larger, more modern dwellings.
We have found the lending operations under this law
ommend

Because

policy,

the

states.

employment,

money

become

much

government

agencies

realistic

view

and
of

serious

the

industry's

during

and

after retirement

some

,•;%.*

effective

most

use

of the company's

Continued

present economic conditions.

building industry and the millions of people

on it face serious economic trouble as a result
Federal Government's tight money policy, coupled

with

the

Treasury's, draining

channels- by

savings from private
offering to the public,

•goyernmenty obligations
'yields.••

The

and

amount

cost

■■

living better, working better, building better

high

with
.•/

v.-.:.

•

home

...financing throughout 1960 depends
.' entirely t upon
policies pursued by

Federal Re;
Board,; the Congress and the

the U. S. -Treasury,' the

;

serve

Everett

Livesey

the-tight mortgage money market in
the immediately foreseeable future,
despite what some people say.
In fact, the already tight situation
was
made
tighter only a few days
ago'-when the. U. S. Treasury, for
the
second
time
in three months,
,

drained off millions of dollars that
way into the mortgage market.
Pave no assurance that the Treasury will not do
same

Wniiia
Wo

f°ond their

thing again in the months that lie ahead.

Lending

with
>

institutions
5%

return

New

York,

states,
the

'elding

cannot

compete

Pay

one-year

new

gas

25%. Still,

than

all-time

natural

demands for

gas

high

8,740

kwh

customers increased

WWP electric and

service continues in this eastern Washington-and northern

Idaho

area

—

abundance of

raw

area

with

great

industrial

potential, and

room

tinues

savings

government

for

securities,

materials, great rivers of clean water, and

New

thrift instiwhich are permitted

and

York

the effects of the

aggressive building

program

to assure new

industry

dependable, economical supply of electricity and natural gas.

in several of the

THE WASHINGTON

with

interest to de¬
and some of the

WATER POWER COMPANY

m0l,tgage-lending institutions of the country were

suffering from

its

growth and development. The WWP Company con¬

the

substantially higher dividends
case

for

money.

institutions

competing

positors than is the
°hier states.

for

depositors' dollars
market, with mutual funds, with high-

are

stock

and

u<ions in other
parts of the nation
0

reached

annually. In the past year,

against

has

customers

residential consumption of electricity by WWP

average

housing agencies.
V I can see no appreciable easing of
-

The

Treasury's sale to

older

•

dependent
of the

com¬

generating facilities and to maintain high standards of
reliability of service. Among the new switching stations

and

in the

for

program

order to insure the

not take a

needs

largest

construction and reinforcement of
major high-tension transmission lines and switching
facilities, at a cost of almost $40,000,000, is under way in

the housing and other

departments do

stations

1, 1959.

The decline in construction volume, and

will

the

generating units at Marion Station,-the company's total
installed generating capacity will be 4,054,000 kilowatts,
an
increase of almost 60% over the capacity on Jan.

have already experienced a sharp decline in

housing starts.

tight

kilowatts,

817,000

these three

■

Government's

Federal

pany's system. Upon completion of the new facilities at

desirable and unhesitatingly rec¬

all other

service

for

scheduled

capacity

to cost more than $66,000,000 and
in 1962, will raise the station's

This unit,

capacity.

home market

extremely sound and

New Jersey, estimated, to cost nearly $110,-.

similar capacity

York lending institutions—particularly the mu¬
savings banks—are making n;ore and more use of
provisions now in the State Banking Law
which
permit 30-year 90% loans on a conventional

This

facilities in¬
Station in

Bergen

turbine generator

liberal

new

The

nearing completion. One 290,000-kilowatt
is in operation and the second unit of
will be placed on the line early in 1960.
The Mercer Station, located in Hamilton Township near
Trenton, in the heart of the Delaware Valley, will cost
approximately $130,000,000. There the first of two 320,000-kilowatt turbine generators is expected to be placed
in operation in 1960, and the second, of similar capacity;
in 1961. At the existing Sewaren Generating Station,
near
Perth Amboy, work has commenced for the in¬
stallation
of a
turbine generator of 342,000-kilowatt
000.000,

New

of the

projects.

major

three

Ridgefield,

Veterans

tual
the

equipment since 1951.
to the company's generating

plant and

money.

almost
prohibitive discounts, has severely reduced the mass
market for moderate- priced homes. And of course the
reduction in volume has reduced
employment in the
construction industry,
As money grows tighter, we can
expect this condition to spread to other sectors of the
housing market.
program,

firm contemplates expenditures of about

our

$140,000,000 to $150,000,000 for new construction during
1960. This will mark the fifth consecutive year the com¬

unattractive.

increase

provide facilities to keep pace with the continually
demands for electricity and gas in the area

it serves,

when
higher

along the line, except at substantial discounts?
reason, the 5%% FHA-insured mortgages

increasingly

sent out dur¬

year,

increasing

same

proving

Board

rate

be made

can

all

For the
are

industry and home buyers.

the

1,100,000 customers.

mately

connection, the inconsistencies of Congress and
housing agencies are adversely affecting the home

was

customers and gas service to approxi¬

to about 1,400,000

In this
the

occurred

gas

10.3% and 3.8%, re¬
spectively, above the 1958 amounts.
During
1959,
approximately 30,000
and
13,000
new
customers were
added respectively, to the company's
electric
and
gas
systems. Public
Service now supplies electric service
ing

Federal

has

send-out

lion therms of gas

exist-,

government-backed loans

rediscount

record day. A maxi¬

1958

day's

therms

beinS loaned in
on

the

above
mum

WWP CUSTOMERS...

President, Dime Savings Bank of Brooklyn, N. Y.
The home

flowing

EVERETT J. LIVESEY

;

State fare

money

year, conventional loans probably will
major portion of the home mortgage vol-1

1960, providing Congress and/or

to continue.

One

York

keep

;

completely

basis.

than they originally planned.

consequence

peak load. On the same day,
a
record day's output of 45,976,800
kilowatthours was established, 12%

the 1958

coming

Reserve
all

it may well be that present
estimates of business spending may prove to be too low,
for as overall economic activity rises, businessmen tend
As

money now

because interest rates

iume
J.

production schedules and higher output.
A second factor contributing to the satisfactory out¬
look picture, is the anticipated rise in business spending
for plant and equipment which is indicated by current
survevs.
Expectations are that the rise in business
spending will accelerate in the months ahead. Initially,
greater emphasis will be on purchasing new equipment
and machines in
an
effort to reduce costs. As sales
rise and operations approach capacity, expenditures for
expanding plant output also will tend to rise. Because

of the

mortgages.

constitute the

months ahead as businessmen attempt to replenish
stocks depleted during the steel strike and to keep them
in line with rising sales.
Such inventory buying should
be reflected in a further rise in new orders, revised

in "New

effort

principal and interest

in the

spend

possible

?f ^he I^fgage

low levels.
In the past year, for example, sales have risen about
7%, whereas inventories have increased only about 4%.
In addition,
the steel; strike arrested the growth of
inventories and caused them to decline as businessmen
were unable to replenish stocks
which they sold. This
suggests the likelihood of substantial inventory buying

banks

savmgs

11% higher than

Sept. 9 of 2,597,000 kilowatts,

aownstate New York comes from
re-investment of funds
leceived as payments of

starts are expected to continue
to decline, there are two basic and
widely accepted reasons for the view
Homer
that business in 1960 will be good.
One reason is inventory accumula¬
tion. Currently inventories are at relatively

these

load

say

advoAL me bulldln§ industry. No large individual
?e hi?' I commi,tments can be made, but available money
rfncofml spread around judiciously so that the greatest
tioiis
number- of builders can continue their opera-

ing

both

reasons.

L eveiy

LUCE

Service Electric & Gas Co.

During 1959 new records for demand and for output of
electricity and gas were established. The unusually
hot weather of late summer resulted in a record peak

reQuired for individuals'

^ov?rn™ent financing operations alone, to
withdrawals for other

nothincr

and hous¬

Although farm income

President, Public

5%.

those iwn

settlement.

the strike

from

flow

over

?ntS~theuPrlmary source of mortgage funds—
c? en,ou^1 ,f°. offset the deposit losses from

moved
the

yielding slightly

DONALD

es !as* October when the Treasury
Permitted the public to subscribe to
bills

ri
of

(333)

Serving eastern Washington-and-northern Idaho since 1889

page

Continued from page 81

Gloucester

President, Household Finance

the company will expand its distribution
the installation of 22,000 new, electric
meters, 2,000 miles of overhead and underground wires,5 000
additional
distribution transformers, 5.000 new
In addition,

with

facilities

part

The company's

additional

42.000

will

customers

than

35,000

increased

the

demands

and

provide service to an expected 30,000 additional gas
heating customers include the installation of approxi¬

mately 285 miles of gas mains, 22,000 services, and 27,000
meters during 1960.
While

the

certain

impact

of strikes

areas

the

business during 1959
was
severe,
sales of

country

electricity and gas for industrial purposes in the area
by Public Service were only slightly affected,
demonstrating again the benefits of this area's wide
diversity of industry. The 1960 outlook for business in
served

this

is also

area

continued

unique

favorable,

growth

location

Electric

and

the

Gas

Philadelphia

confident

are

because

of its

the

served

by Public Service
between New York and

area

Company
its

and

development

and

transportation

excellent

•

" ■

evident that

than

■

also at

were

during

first

the

number

respect

accounts

the books,

half

ment in

even

power

with the Atomic
turers. It is

cities

•.

and once

again will set

and revenues.

President, Northern Pacific Railway
Northern

year

Pacific

1959

quarter

for

into

traffic

First

The

rapidity and

and

operating revenues.
Furthermore, 1959 agricultural tonnage was down from
3958 because the crop in our terri¬
tory
was
substantially
below the
above-average 1958 yield.
In

spite

pears,

these

this

our

setbacks

ap¬

is
we

November, that

written

still will exceed

late

ness

1959

from

the forecasters.

the

open

offices

new

many

and

economists
highs in

that

new

gross

prices. In such an at¬
mosphere, -where demand for bank

consumer

loans will exceed the supply of new

funds,

additional

added

causing

loans

already

will

high

continuation

level,

the

very

tight money conditions which have
prevailed for the past six months
thorities
R. T.

policy

Marsh, Jr.

The

more.

will

and

count rates.

Federal
maintain

Reserve
a

au¬

restrictive

even
increase dis¬
Many loan requests may

may

have to

be rejected. In my opinion,
"panic" will take place, however.
We do not live in an absolutely controlled economy
but the money managers have great powers. The admin¬

nothing approaching

wherever

favorable

opportunities appear, and to modernize and
relocate offices wherever the public can be betteb served.
We believe that 1960 will witness a continuation of

istration also has great powers.

It is obvious that these
will be used fully to keep business booming in

powers

election

Household's growth.

surprised

of busi¬

product, personal incomes,
profits and unfortunately

business
in

new year, there seems to
unanimous opinion among

1960 will witness
national

of opening offices in that state.

continue

Bank

recovery

recession

enter

; businessmen

approaching the completion of a modernization
begun almost 10 years ago—during the course
of which many branches have been relocated in modern
shopping centers and in other concentrated retail service
will

National

the broad

be almost

are

MARSH, JR.

1658

program

areas.

Merchants

scope

into effect just recently, and we are

came

process

■

Richmond, Richmond, Va.

1,018 offices serving families in 712
states, and in all 10 provinces of Canada.

law

the

now

records in customers, output

new

ROBERT

During 1959, we opened 60 new offices—47 in cities not
previously served. Both Montana and Alabama adopted

Alabama

exceptionally good
the steel strike began in the third

when

cut

headed

was

„

protection to their citizens for the first time. We opened
offices in Montana during the course of the year. The

MACFARLANE

increase,

President,

the individual

for

com¬

greater reluctance by voters to
projects.
■

small loan laws during the year, thus providing effective

ROBERT

aware

sense

Energy Commission and large manufac¬
approach that will achieve maximum

have

make

sound

the year 1959

now

are

not

The outlook for the utility industry in the 1960's
is
highly favorable. It will continue to be a growth industry

about $385.

does

benefit to customers and investors, and there will be an
all-out effort to achieve this goal in the present decade.

with about 1,590,000 accounts
on
our
books, totaling about $610,000,000—an increase
of about 6.5%. The unpaid balances of these loans aver-,
age

major goal of the electric utility industry is the eco¬
development of nuclear power. This has been
undertaken * on an industry-wide basis, in cooperation

incident to the steel strike.

areas

the industry in the
encouraging signs. It is

second

some

We ended

government

nomical

and the

of loan account.

the

that

been

tax-free

approve

half of the year, families turned
increasingly to Household to secure funds with which
to set their financial
house in order as they became
more fully assured of their future regularity of income.
This process was retarded somewhat by the unemploy¬
During

public and lawmakers

have

pete with it. As tax burdens

considerable

total amount

they

the

there should

accounts believed to be un¬
higher than normal level for

government to tax an industry to the limit and then
shown an

period of time after employment gen¬
erally began to improve. The net effect throughout
much of the first half of the year was adverse, both with

facilities,

diversity of industry and commerce, extensive research
centers, fine cities, shopping districts, and residential
suburbs.

collectible
a

customers

present

level

mal

charge-offs

Its

1959.

of auto¬

use

competition will continue to burden

field, Household'^over-due ac¬
counts rose significantly during 1958
and remained at a higher than nor-

H. E. MacDonald

huge tax load and the threat

future. However,4 there are some,

families find it difficult or impossible to meet their obligations on
schedule. Thus, like other companies

the

greater

the

many

gas

bringing

1959,

equipment, particularly

application of elec¬
operations, such as customer
billing and system power dispatching.
'

in its

heating customers were added
total number to approxi¬
mately 280,000, and it is anticipated that by the end of
1960 the company will be serving about 310,000 heating
customers. Plans for gas distribution facilities to meet
More

during

mated

periods of significant unemployment,
-

use,

tronic computors to complex

exceptional record in living up to
obligations. However,during

natural gas.

straight

about

Thursday, January 21, I960

recent years. There will be a much

their

principally in the New Brunswick area, and by the end
nearly one-half
of all customers in
the company's territory, will be
with

later,

.r
1
American families have

of 1960 more than 560,000 customers, or

served

generally .until

companies
year

affected,

year

it did not come for consumer finance

pliances from mixed gas operation to the use of straight
natural gas in certain areas will be continued in 1960.
About

Corporation

1959 was

year

consumer

of converting customers' ap¬

program

the

finance companies. This iesuited from the fact that the effect of the business cycle
on
such cash lending agencies lags significantly after
changes in general business condi¬
tions. Thus, although the upturn in
business is generally thought as hav¬
ing occurred in about April of 1958,
for

adiustment

and 8,500 additional poles during the year.

street lights,
*

considerable

increase total revenues through greater
the other is operate more efficiently and
economically. The power plants of the future will exceed
even the higher efficiencies achieved
by those built in

customer

scheduled for the near future are
and East Rutherford for
service in 1960, and Aldene switching station in Clark
Township scheduled for service in 1961. Just placed in
operation is the $6,000,000. Newark switching station,
with an ultimate capacity of 330,000 kiiovolt-amperes,
located close to the city's central business district,
located

One

tions.

MacDONALD

„

under construction or

tho«=e

Chronicle

The Commercial and Financial

(334)

year.

1958

earnings, when net income of
$22,011,976, equal to $3.68 a share,
was the highest in 15 years. The ex¬
tent of

the

increase depends

cost

right-of-way in
tains

which

heavy

Cascade

try through

moun¬

This will have

years.

November

operating

In the face of

Robert S. Macfarlane

expenses.

aggressive freight

car

sion of centralized traffic control and
tional diesel locomotives.

Anticipated
our

lumber

and

leveling

reduction

tonnage
off in

building program,

and

the

purchase of addi¬

decline

business

mean

greater

will

cut

housing starts
agricultural and

the

ondly, there
aggressive

the

American

before.

These

greater

1950's,

and

steel

and

ore

should

coal

move

increased

tonnage also is expected to

piggyback

and

other

forwarder

traffic.

Timely fall rains have greatly improved moisture
supplies and the general agricultural outlook in our
territory, both in the Pacific Northwest and in our
Eastern

areas.

The

wheat

winter

and

promoted
omen

and

root

for

feed

rains
rye

and

have

and

crown

good

seedings of

stands

and

development—always

year's crop. Livestock
supplies appear adequate.

population

have

good
is up

Addition to a fleet of new
all-room Slumbercoaches
to cur transcontinental
Vista-Dome North Coast Limited
on

Dec.

our

1959,

expected

have

long-haul passenger business.

man-operated

buy private

cars

make

possible

salutary

These

for

effect

new

Pull¬

passengers

room

sleeping accommodations on a coach
economically priced service is expected to
attract travelers from
other modes of
transportation.
ticket.

This

Substantial
estate

rentals

possible

non-rail
and

income

iron

satisfactory

ore

from

the

prolonged steel strike.

timber,

real

help make
Northern Pacific if busi-

effSpotgerfr4?. y re1covers early in
of the
effects

oil,

royalties should

year for

from

year
—

-—

the

find

peaks

programs

individual
are

the

are

utility
new

many

will

com-.,
Earle J. Machold

and

that

electric

will

utilities

were

industry's emphasis

complete
on

electric home" is typical of this trend.
The postwar growth of the natural
gas load
tremendous. Even where there is
high

use

the "total

has been

saturation, there

plenty of opportunity for further expansion. Gas utili¬
ties and pipe line companies are
cooperating to establish
storage fields near local markets. This will be a factor in
further

phasis

growth of

markets, and there will be new
heating and air conditioning.

em¬

gas space

The most serious obstacle to the

progress of the utility
industry continues to be rising costs ol operation. Rate
relief, if achieved at all, usually lags behind the need and

only partially offsets higher costs.
The utilities

are

services

the

conclusion

confident

$500
is

attacking this problem from two direc-

"jf

this

;

-.p
t
§

billion

supported

attitude

The second

year.

the

or in a
position to promote electric home heat¬
ing. In the next decade, a drive for this
potential market
will spread across the
industry. Likewise, in the electric

gas industry the emphasis
of services. The electric

;

total

JJ
jf

prevalent
in

capital
investments. The chemical industry
now
anticipates its own such ex¬
penditures will run 24% over last

great

interested

and

§f
•

One is the

.among businessmen as evidenced
their currently planned new

ever

few

This

by the

reason

Dr. W.G. Malcolm

is my belief

the

basic underlying factors
causing, our industry
nearly three-fourths again as fast as all indus¬
production over the long term will continue to
their influence this year. For
example, tremendous

to grow

trial
exert

systems, this physical expansion

relatively

year-

nation's

and

exceeding

level.

amounts

of capital expended on research and
develop¬
ment, long characteristic of the chemical
industry, have

yielded

new' products
numbering in the thousands, as
quality improvements and new applications for
many existing products.
No slackening in the rate of
these outlays is
likely, if for no other reason than the
highly competitive nature of our business. Drugs, plas¬

well

tremendous investment.
ago,

and

projections stems

the.

of ", goods

tainly

continue, with increased emphasis on transmission
capacity. Everywhere in the industry, there will be an
intensive effort to load every line and
pipe to maximum
capacity in order to achieve an adequate return on this
years

compari¬
will reach many new
sales.
However, it seems

doing

during January-June
those of the second half.

that

the chemical

favorable

— its
gross national product—will forge substantially
upward, cer-

industry made huge capital invest¬
facilities, particularly in electric generat¬

ing capability. For

operations

year

and

Throughout

1960

gains

output

utility

new

MALCOMB

definitely

from two considerations.

and

uses

in its

production

likelihood,

likewise stepping up?
secure

and

The first of these

.more

than

to-year

achieving

are

1959

will surpass

Sec¬

new

equally likely that chemicals'

greater

Association

vigor

markets.

Ten

brought fall

industry's

Gas

scope

stimulus

ments

should

the

manufacturers,

greater

parts

and

confident that
with

sons

Nation wide, the promotional "ef¬
forts of the Edison Electric
Institute,

However, other tonnage in that category, such as canned
goods, frozen foods, paper products, automobiles and
Iron

indications

total demands for

effort

their efforts to

increase

many

President, American Cyanamid Company

industry will experience

profitable loads.

panies who

producing areas are expected to affect some of
"manufactures and miscellaneous" traffic
adversely.

volume.

growth indus¬

will

electric power and natural gas.

our

iron

are

I
were

the

explosion"

customers

lumber

and

tjiere

First,

progress.

"population

large

construction

new

the 1950's and

rate of increase in

our

substantial amount of rail and ballast, exten¬

coming

industry, Northern Pacific is looking to 1960 with
what might
be termed cautious optimism.
Counting
carry-over items,
our
budget for improvements an(jl
new equipment will
exceed 1959 and will permit con¬
tinuation of

;

point in this direc¬

tion

own

laying of

DR.

MACHOLD

that their progress will be accelerated in the next
decade.
There are at least two factors that

and

labor crisis in

America's investor-owned utilities

our

heavily damaged
Washington's
worst

impact'

December

was

western

flood

largely

restoration

the

EARLE

President, Niagara Mohawk Power Corp.

tics

and

where

synthetic

new

fibers

are

breakthroughs

just

1960

few

familiar areas

are

distinct

bilities.

possi¬

My other projection—smaller year-to-year gains after
midyear—is attributable to another characteristic of the
chemical

business.

The

customers

who

diversity among our products,
buy them, is so great that we
only a keystone of American industry but a
mirror reflecting fluctuations in
virtually every sector
of
manufacturing, mining, agriculture and construction.
and

the

are

not

Some

industries, notably

home building, have already
slackening activity during 1960. In
others, though, an anticipated rebuilding of de¬
pleted stocks« by producers and users of steel and in

shown

evidence

most

some

soft

should

goods

support

therefore

the

However,

industries

(e.

first-half

industrial

chemical

the

latter

g.,

rubber

and

textiles)'

production, and
industry, at very high levels.
half of the year these extra-

Number 5918

191

Volume

and Financial Chronicle
The

Commercial

will gradually be dissipated, to be
moderate forces, and gains, aseconomic
activitv.
Mnrpnupr
•tPd with
"normal" economic activity. Moreover,
)C
SOCi:
fhP chemical
industry iQ+nrJ half-to-half tapering +U/t
this
off
>r
nnnonf
xiriiV*
,

pressures

„.,rv

«
ioppd

rePia

nhp r°g r a jns are CC)mpleted over the next few
Pe°PLe back t0 the cities> the downtown
coniinnnfff ^ v°rwa to increased business despite the

U^v

—ill

f%(~\ m

store.

ment

I959e'pattern,''"which

was steadily upward throughout

the ye»''

President, The
11

Mof

marsh

Atchison, Topeka and Santa Fe
Railway System

•

„

are

equally between new
and
improvements to roadway and other facilities.
It in-;
eludes 227 miles of new and heavier-

i "vj
Held

most serious factor

expect an improvement in the volume of business
in 1960 from increased industrial production; and argi-;
adequate

We are in

the railroad.

faster

which

tation in

are

moisture

generally favorable at this
in most areas served by
of railroad transpor¬
service is

era

new

and

dependable

attracting additional traffic. Improved forms of piggy¬
back service hold promise of still greater increases in
that type

of business, and further development of this
shipper and public interests depends upon
final approval of tariffs by regulatory authorities.
service

There

still inequities facing the railroad industry
that should be cleared through legislative action to give
are

the railroads equal

competitive opportunity. Among the
important items in the railroads' legislative program
are
repeal of the agricultural commodities exemption

its extension

non-motor

carriers; elimination of
artificial barriers that prevent transport diversification
by railroads; full repeal of the 10% excise tax on pas¬
senger transportation, which is scheduled to be reduced
to 5% on
July 1, 1960; revision of depreciation policies
in respect to railroad
plant and equipment.
On the controversial "featherbed" issue in current rail
labor

negotiations,

merely looking at
the situation as its exists
today and not criticizing -or
attacking anyone or any group over happenings of the
past, certainly not our faithful employees who are doing
an
excellent job under the rules of the game.
Our
attitude is that laws and
regulations] which are so out¬
moded by the
passage of time and technological ad¬
vances

the

Santa

the

1958.

stations at

unpaid

over

well

source

days

longer
This,

highest in its

income

1958

$11,926,596, or $1.89 a share.
The leasing of private wire
,

data

was

;;

;

and

rates.

Union's

business
that

duces

this

revenues

1959.

business
at

rapidly

increasing

1958.

This

Mcdowell, jr.

the

with

trend in

population, with ample space
and a prime geograph¬

for expansion,

business, still
Walter P. Marshall

extensive

with

expansion

coupled

systems being leased to industry and

government, will continue to rise in 1960. In 1961 two
nation-wide data transmission systems will be placed
in service for the U. S. Air Force. They will add more

ical location

near

the markets of the

Northeast, Midwest, and deep South,
should continue to develop economi¬
cally during 1960.
In

Virginia, 1960 should be a not¬
expansion year, and from a
conservative
point of view should
continue the general upward climb
in our over-all economy, with no an¬

than

$15,000,000 annually to the telegraph company's
private wire revenues.
One of these systems will require construction of a
new
coast-to-coast microwave
system, in one of the

able

largest single

microwave projects ever undertaken. It
provide facilities of such magnitude that the broad¬
band data requirements of the Air Force and 12,000
telegraph circuits could be operated simultaneously.
This vastly augmented circuitry will be available to
Western Union for use in leasing new private wire and

ticipation of

will

any

data

processing systems as well as for telegraph message,

facsimile

and

other'

new

services.

Dun

The

Bradstreet, the U. S. Air Force, Bache &

tremendous surge in

expansion programs of manufac¬

turers, an increase in

retail buying,

and the

growing demand for services
continue to support the high level of
business

Among the private wire systems installed or expanded
in 1959 were networks for U. S. Steel, United Air Lines,

segment which might out¬
balance our existing growth pattern.
one

A. H.

textiles,

lumber,

tobacco

products,

Continued,

Com¬

changing world should now come under
appropriate modernization and improvement,

lust

have modernized

and

operations of the

improved the facilities

and

railroad.

American

Natural
A

morton

President,
We expect
stores.

The May

1960

While

the

MICHIGAN

Stores Company

department
temporarily slowed

excellent year for

JERSEY

Gas

Company

CORPORATION

MAY

Department

economy

NEW

was

CONSOLIDATED GAS COMPANY

MICHIGAN WISCONSIN

PIPE LINE COMPANY •

AMERICAN NATURAL

•

MILWAUKEE GAS LIGHT COMPANY

AMERICAN LOUISIANA PIPE LINE COMPANY

GAS PRODUCTION COMPANY

down
cui

by the steel strike during the last half of 1959, the
lently depressed state of inventories should have a

strong

upward

influence

retail

is restored in the steel
and no other major labor

sales if peace

industry
stoppage occurs.
' Hard goods
showed surprising
strength in 1959, but we do not be¬
lieve there was enough time prior to
the
steel
walk-out to
satisfy the
,

created

demand

pent-up

the

Retailers
can
look forward to substantial increases
in sales of consumer durables.
recession.

1957-58

The
soft

lead
the

area

stores

ment

Morton D.
May

continuing

goods,

are

better

improvement in
in which depart¬
strongest,

profit margins

coming year.

should

during

Apparel lines are

expected to make the bes,t sales
trend toward branch store development will
storpu *llrouSh I960 and beyond, although department
p,,/; Plains are undertaking major modernization prom'?c or their downtown stores. Today May Depart„

tnv

Mores derives about 40% of its sales from branch
n<^ we exPcet this figure to be 50% in the not
lls;tant future. As pioneers in branch store develop-

stn

ton

WITH MORE

believe that

npnocf and
r

bran

combination of strong

well-located

modern

suburban
a large

/ary to compete successfully in
u3' ^ *s significant to note that

divi.oj
d

.are
from

added
the

stores

metropoli-

and more
less sales are

as more

a
given area,
downtown store.
In

downtown

fact,

urban

GAS TRANSMISSION AND DISTRIBUTION

THAN HALF A CENTURY OF

tan

AN INTEGRATED NATURAL

MORE THAN A

McDowell, Jr.

activity. Industry in Virginia is well-diversified

chemicals,

in this

review for

continued

existing manufacturing industries,
continued increased growth of new
enterprises in Virginia, has become a manifestation of
the State's economy. Virginia, realizing a steady upward

The
rate

nearly $55,000,000, or nearly 20% of
company's gross
revenues,
as
against $41,551,702, or 16% of gross
in

for

President, Virginia Electric & Power Company

the

revenue

1960

cilities, methods and techniques for rapid transmission
! of messages and data by wire, microwave and cable.
It currently spends from IV2 to 1%% of gross revenue
in development and research.
An indication of Western
Union's
planned expansion is the recent $60,000,000
standby bank credit negotiated in November.

pro¬

annual

for

esti¬

now

planning

research

processing systems to industry

mated

Public Fac¬

years

for

and government continued to be the
fastest growing segment of Western

Union

inaugurated

called

facsimile and radio beam fields. During the past
the company has spent more than $35,000,000
in creating, perfecting and advancing fa¬

ing,

Strategic Air

system links 57 weather
air bases throughout the nation for transmis-

12,000-mile

growth and expansion in the private wire, data process-,

that operating revenues for

1959, after taxes, is expected to ap-;
proximate $16,000,000, equal to about.
$2.50

link

.Western

and earnings in 1959

operations for

than $2V4 million
high-speed facsimile

installed in mid-1959 for the

This

Service,

distance

Co.

$275,000,000 compared with $255,138,709

Income from

leased to business and

By the end of 1960 the Telex network
major cities in the United -States, Canada
and Cuba.
Telex permits the user to dial other sub¬
scribers in eight seconds or less for instant, two-way,
automatic
telegraph
communication at special
time

109-year history.
are

ordinary

Francisco.

will

marshall

revenues

transmission

-sSan

of income.

Union Telegraph

well

sized documents,

Under

balance.

of full-page communications, letterdrawings and other recorded data.
During November and December of 1959, Western
Union completed extension of Telex service coast-tocoast from New York and Chicago to Los Angeles and

;the

Paper Company.

"Wirefax," linking New York,
^Washington, Chicago, Los Angeles and San Francisco.
This new service provides facilities for public use for
simile

department store

bill within

data

nation-wide

/ sion of large weather maps.
On Dec. 1, Western Union

increasingly important sales stimulant iny

1959 will exceed

Ernest S. Marsh

time with

pay

was

Command.

Cleveland" and
:

interest «on the

pay

Preliminary estimates

affecting the future of industry and employees.

cultural conditions which

and

can

Western Union expects its

Inflation continues to be

network

first

The

annually.

store in San Diego

new

schedule repayments'

walter

Denver,

President, The Western

adequate and efficient service and
to produce the most economical operation in order to
help keep abreast of constantly rising costs of doing
business.

the

of extended credit plans.

use

customer

the coming year as

centralized traffic control and traffic re¬
and other projects.
This program is designed to meet continuing growth
of population and industry by providing modern facili¬
perform

charge

should be

signaling;

open

growing

plans,

period

stallations of

ties

without

continuous welded type;
60 new
2,400 horsepower freight
diesel-electric locomotive units; siz¬
able expenditures in connection with
Arizona line change projects; 50 new
baggage cars; about 2,500 new freight
cars
part of which are already in
production schedules; , construction
of a new modern freight house at
Kansas City; consolidation of freight'
yard facilities at Brownwood, Texas;
installation of microwave communi¬
cations at various points; further in¬

significant development in the
the

these

the

versal

scheduled

Washington, D. C., areas, and
should be completed in 1961.

pnuipment

rail of

recourse to equity financing.
nave tour new stores under construction and six
m
the pianning stages.
During 1960, new stores

Intrafax, the facsimile systems

our subwith Adequate funds

wl CLUr pr.?^ram without

about

divides

VaPripany recently

transmission

Wire,

Bank

The

engineered to accom¬

government users, now produces more

years. Fortunately, the
concluded arrangements for a

flow, will provide

embarked upon a $100-million capital
Inenditure program in 1960. This $100-million program
larger by some $13 million than for any prior year,
1L compares with expenditures of approximately $60
million in 1959.
The 1960 program, ;,; .
Fe has

Saute

-is difficult to determine the general
on retailers' expansion

ctontiiwon mortgage loan. This, coupled with
antial cash

Company,

International

systems are

new

communications.

higher interest rates
during the next few

nrnorom

trhp

these
the

modate

"tore Volume.1" the'r percentaSe of total ^Part"

cnno

Most

and

Standard

American

r.n

Midland

Marine

pany,

vear

by the more
bv
...iiu
"nnrmal"

SYSTEM

SUCCESSFUL OPERATION—SERVING

MILLION CUSTOMERS-CONTINUING

ITS EXPANSION PROGRAM

min-

page

The Commercial and Financial Chronicle

(336)

Continued from page 83

that

sense

•

„

bitter

and paper products, these being major cate¬
gories. These industries, many of which were founded in
the era of World War I, have noted a continuous upward
erals. paper,,

expansion trend. Supplementing those employed
manufacturing
wholesale

retail

and

those

were

groups

which

trade

in the
in
the
largest single

employed

the

alternative

the

conflict

and

return

which

struggle

the

days

steadily mount¬
This is evident from the improvement in oil
companies' earnings which occurred in. 1959 despite the
abnormally low refined products prices. It is encourag¬
ing to review the progress of the industry's cost reduc¬
tion efforts.
In the producing side'*of the
business,
greater emphasis is being placed on wider, well spacing

ing costs.

in the region for so many years.
"The people are also in this survey expressing a warn¬

power progress

ing

any

hard-won

or company which will upset the
partnership.... Clearly, they see the
Utility Districts as hav¬

agency

gains

condemnation actions of Public

Virginia's business activity of nonfarm employment, in
October, 1959, exceeded all previous records.

other utilities.

matter

interest,

manufacturing group dominates the Sta^e
various components have furnished, and
should continue to furnish, a sound economic foundation.
The raw materials in Virginia are being continually
The

utilized to

employed

depend

greater advantage. Nearly one-third of those

upon

manufacturing are in those groups which
agricultural products as raw materials, or

market for finished

products....

In looking back over

■r.

this past year, additional indus¬
expansions and the resultant additional employment

trial

have

outnumbered

the

itself

indicative

industrial

new

plants which in
satisfaction with Vir¬

industry's

ginia's business climate. We believe that Virginia will
share liberally in the enlarged economy which has been
predicted nationally for 1960
^!
1";.
■
Vepco's belief in the future of our area is shown by
.

large construction

our

Construction

program.

expendi¬

tures for

1960 are estimated at $58.600,000, and the com¬
plans to expend about $60,000,000 annually for the
ensuing three or four years on new construction. The

figures for 1961 and beyond may go as high
$75,000,000 annually if the Federal Power Commission

the company's application to build

approves

kilowatt hydro station on the Roanoke

ton.

The

generating
units

above

expenditures

completed

are

capacity

capability of

1962

Gas¬

additional

When

Vepco will have

2,600.000 kilowatts, "

over

near

include

kilowatts.

625,000

200.000-

River,

these

system

The company is experiencing growth in the number of

residential, commercial,
ers

now

totaling

and industrial

electric

custom¬

735.000 and ^gs customers of over
are continually
increasing their
requirements for electricity and gas which is the basis
of our planning for future demands. ;
:
We in Virginia are
looking forward with anticipation
over

97.000. These customers

1960's

potential

business activity.

frank

Mclaughlin

What

its

the

record

electric

industry's outlook for
has been—good!
Why is this?

Light Co.

1960?

Just

Because

supplying the people the high¬
quality of service at the lowest

positive steps toward

The

second

utility

the

over

central

industry

pivot of the entire

closer,

ever

Airplane Company, is named as
'outstanding job' in building the
ates. Thus we find a remarkably
of the Puget Company with the

witness

economy.

the

bulwark

peaceful

for

never

there have been

area

all, the

any

prevented

way

catastrophic

substantial

and

veritable

—a

Louis

Harris

and

electric

public

thrive.

utilities

were

man's

that

the

prevailing

demand
of
the people
of the Puget Sound-Cascade
region is for continuation of the era of
cooperation be¬
tween public and
private electric utilities. What is

more,

there is further evidence that the
public will not tolerate
any efforts to upset or
change this balance.
The

Harris

"There

three
to

report

out

better

every

meet

stated:

deep-seated
four

the

belief

needs

better

among

people surveyed

power

the

that

region

has risen to 7 to

Public

'■

5-to-l

people

the

region

for

cooperation

that

say

harta

they think
than

PUD

Commissioners

action.

"The

taking

significance of these results

can

estimated.

condemnation
not

under¬

Taken
together, they constitute a wellthought-out, carefully considered and
deep-seated

phi-

^ Ear °f ^ PUbIk ab°Ut P°Wer
Pvnpln 7ie believe that they have now seen
xperienced the
fruits

aie

convinced that the

its

the

economic

life

own

neighbor
of

the

that

has

marked

Puget's past performance."

dignity of the individual, and for human growth?

1959

year

Continental

witnessed

Oil

further

and

conditions
.

few

and

the

its house

the

cooperation

power.

partnership idea will work.

the
and

Thev

They

the

basic-

petroleum

upward

the

continuation

trend

other

and

fields

domestic

47% of the retail price and 85%

the U.

by the producers of natural gais during 1959, yet7 in¬
adequate to provide
sufficient ^incentives to assure
satisfactory supplies in the: future. The inadequate prices
being received by the7 producer for natural gas will
ultimately bring about shortages. Until this is felt by the
consumers
and
distributors,., increases- in natural gas
prices will continue to be slow,
.r
7.
J..'V;V^?:'.77.'
,

Throughout its 100-year history,- the oil industry has
faced and solved a great many problems such as those
associated with wars, political upheavals, and
threatened

shortages of oil.; There certainly is no reason to believe
the industry cannot solver the
present problems;
Perhaps the greatest single factor which will reduce
today's oversupply is' the steadily increasing desire of
that

the

world's

attributable

increase

5V'i%

1959

such

the oil

petroleum industry

refining
industry alone
as

was

fortunate

the steel strike.
demand

domestic

mentioned
crude

above

production

caused
of

about

from

the previous year.
However, full benefits
larger volumes have not been reflected in oil
companies' earnings because of continuous weaknesses
of

these

refined
So much

products prices.
has been said and written

inventory management in

the

lately about

petroleum

poor

industry that

further reference to this
subject is needed here
It
encouraging to note, however, that during the
closing
months of 1959 refinery runs were held at
more realistic
levels.
This brought about some
improvement in in¬
ventories, but the situation at year-end still leaves much
no

to be desired.

Unquestionably,

as more

people in the oil

industry become cognizant of the need for a sound and
intelligent approach towards inventory controls on an
individual company basis, the
problem will get nearer
to its solution.

The

industry is making significant

for

oil.

million

barrels

Every

year

the

increasing by well

daily.- This

growth in demand,
accompanied by the best management of which our
industry is capable of exercising, will go a long way in
helping to reduce surplus capacity. 7.:777;7:''7'
7
7!
7 The problem of overcapacity — that much discussed

RALPH

;7: '

McELVENNY ,7

President, American Natural Gas Company

•

American Natural Gas
Company has completed a decade
of record expansion with
fine prospects for the future.

constantly

expanded
of gas

sources

At present we
which

will

obtain 7

supply:

;

•

involved in proj -::
further strengthen

are

our

despite the slowdown in general business
activity which
The

population

demand for oil in the Free World is

growing markets in the future.;; /
Pipe Line •
Company has increased its capacity
by one third since it was completed

that domestic demand for
petroleum and its products
was
about 4% above the 1958 level.
This increase is
in line with the
long-term trend and has taken
place

was

of the wholesale price

refinery.
7,/.;;77 .7y\ :?
yf7.":
A third major industry
.pivoble^
There has been a slight upward trend in prices received

Our American Louisiana

In similarity to any other
the petroleum industry must
recognize the
fundamental principle of economics that
demand should
determine volumes of production.
^

1959,

tech¬

of gasoline at the

business,

about

;

our
supply situation and enable- us
to continue to meet the requirements

for

and has not arisen overnight.

workup 'bring

price of bread has.jumped 40%, milk 23%, and rent
State and Federal taxes on gasoline have increased
55% since 1949, and now represent on the average about

ects

activities
to

31%.

marketing, is not peculiar

will

the

additional

finding, de¬
velopment and operating costs, and
by what some outsiders call, and
L. F. McColIum
admittedly with some justification,
inventory mis-management.
Tne
problem
of
over¬
capacity in crude oil production, and for that matter
in

industry

nological efficiencies and better products at reasonable
prices to the consuming public. Gasoline prices, exclud¬
ing State and Federal taxes, have increased less than
4% over the past 10 years.
During the same period,

During the past 10 years the American Natural System
tripled its investment,7 revenues and earnings and

industry

reason

^reducing costs' and
improving efficiency rather than to the addition of plant
capacity. As in the past, competitive forces within the

has

the outlook for

*':•<
V7'7!
greater proportion of domestic-

be -devoted

has

petroleum

these views is, of course, the present
overcapacity in crude oil production.
Domestically, this problem has been
the

will

investments

greater demands of tomorrow.;

lesser degree, these
views have been shared

augmented

7'7:y'

abroad.

members

child of today —- will, like many problem
children, grow up to lead a useful life. : Today's over¬
capacity will provide the wherewithal to meet the

Company

getting

success

should improve profit margins and assure
availability of the capital required for the
a dynamic industry both in this
country

improvements in the

industry seemed to be
Despite this obvious

techniques.

marked

problem

McCOLLUM

better order.

Worldwide,

good

2V2-to-l margin, the public feels
that the right
to condemn
another utility's
property is not sound or
desirable. By better than 5 to
1, people say they are
opposed

that

would

increase

aversion to the whole idea

done

confidence

In the light of the foregoing, is it any wonder that
Puget faces the future with confidence in the fairness,
strength and resourcefulness of the people and with the
knowledge of their basic respect for the freedom and

AaSl conde"?nations have
And
by

to have

Utility District condemnation actions.

count,

1957, sentiment for this
margin. Today, in 1959

"Underlying this deep-felt sentiment

3-to-2

and

ls,a" equally powerful public
of

way

together in

Back

conclude, therefore, that Puget Sound
Light Company has earned and attained a high
place in the esteem of its own customers. Clearly, this
is an uncommon achievement for a
company.
It has not
been won easily, and by the same token it will not be
dispelled overnight.
However,,, its very basis rests in
the
continuing of jthe kind of modern, progressive

than

the

develop the local economy to its fullest extent is
all private and
public electric utilities work
close-knit cooperation.
approach existed by a

itself.

service must

Associates

All

Power &

McLaughlin

through adequate rates and other means.
clearly evident from a survey made in mid-1959

It is

salutary changes in

progressive and reliable

cornerstone

people.
"We

reservoir

have in

customers

by
Frank

short-sightedness from
being strong and dynamic. To fulfill their responsibili¬
ties, utilities must, be maintained in sound financial
health

and

results augur well for the future of both
electric power and of the Puget Company specifically
in its own operating territory. It points to a cumulative

pessimistic

healthy

the

dramatic

survey

industry

mighty ingredients that make for
Richer, Fuller, Better Life for all.

would

achievement

public attitudes toward private electric service.

the future.

for the satisfaction of human wants—

electric

•4

of solid

the promise for
the days that lie ahead is a
continuing and abiding confidence of the public. In
Puget Sound Power & Light Company's own operating

current

ending supply of energy

record

improvement, investors maintained a
generally pessimistic attitude, both on

national

Anything so basic
necessity be enabled

in which it oper¬
high degree of identity
well-being and future

recovery

with

For the next few years,

and

quately;

are
a

doing

company

area

"Underlying all of this

safety
and
security—a self-starter in the plan¬
ning and building of new industries
—a

and

petroleum industry; demand increased to a more normal
rate; profits improved generally,
although not : ade¬

present,

purposes.

the

of the area..

The

successfully develop atomic

for

energy

>_v\7; 7* v7-';> 77;*-7

"In

President,

Through ceaseless research the chal¬
lenges of new horizons are constantly
being met and the future brought
efforts to

continued

same

1959, we find that 94% of the customers of the
Puget Company express the ifelief that service is out¬
standing. As a result of this satisfaction with service, it
comes
as.
no
surprise that Puget, along with Boeing

applied

maintenance of

base of

has

become

years

made at the

survey

secondary

being

operation

approaches

this they want

time, the solid
public confidence in the Company and the qual¬
ity of service provided emerged most clearly: ;
!
a

electric

partnership, and

continued in most certain terms." -..v

possible cost.
grown

all. People feel that the
been clearly marked in the

area

power

use

pipelines and refineries.
Marketing
operations are coming under closer scrutiny, with em¬
phasis directed toward more volume through -fewer
outlets.
Successful implementation of these and other

■

path of solid progress has

the

over

has always been bold and imaginative in
measuring up to
its full responsibilities of
est

electric

service

Chairman of the Board, Puget Sound Power &

Automation

-•>.
7 7 7.
...ipublic concern is not in

"The central focus of current

the

pany

construction

receive.

single

economy.

ing

increased

and

seriously harmful effect on electric service they
Overwhelmingly, they reject the idea of further
invasions of other companies' or agencies' territories by

employer.

nonmanufacturing

Thursday, January 21, 1960

another of its major problems—-that of

electric

back

set

solving

Michigan

Wisconsin ^Pipe

capacity this;,

past

year.

• •;

...

;

Recently the Federal Power Com-

mission authorized
Michigan Wiscon-'.
sin

obtain

lo»,000,uuu

cubic

feet

Ralph T. McElvenny

daily

gas

through intermediate
source? from rich new producing fields in western Can¬
ada.
This multi-million dollar project will bring new
supplies to all of our markets. This project now awaits
approval of the Canadian Government.
j
:
When these facilities are
completed, the areas served
by American Natural will be linked with the three larg¬
est

of natural gas in North America.
No
offer that advantage.
Further major expansion of Michigan Wisconsin
sources

area

other

can

ties with gas from United States
in

sources

1960 and

increasing volumes of
be anticipated in the future.
Our

gas

is also

facili¬
expected

from Canada may

two

distributing utilities, Michigan Consolidated
Gas Company and Milwaukee Gas
Light Company, con¬
tinue to enjoy a
seemingly insatiable demand for natural
gas for industrial, commercial and
domestic purposes,
particularly for space heating.

Approximately two-thirds
derived from sales

are

nerative

and

stable

for

the

System's revenues
heating, a very remu¬

space

market.

result,

however, we

experience tremendous fluctuations between summer and
winter demands. American Natural has met this
problem
through the use of underground storage fields. At pres¬
ent

with
and

operate

five storage fields

central

Michigan

total

with

capacity in excess of 110 billion cubic feet
ready capability of delivering over one billion

cubic feet of gas a day to meet winter
peaks.
The storage fields permit our two
at

progress in

1956.

Line Company added
80,000,000 cubic
feet of gas a day to its

pipe line systems

operated

the most

economical

high load factors throughout the

distributing companies

serve

basis

by delivering
year. They allow our
maximum number ot

1 Number 5918

Volume 191

tine

other

The Commercial

and Financial Chronicle

at rates substantially below the cost
also own or control storage rights in

customers
fuels. We

fields which will be converted to storage

everal other gas

1958°°° kil0Watts in 1955

^
*
~ Seaway, together
uj , ev&VUiV.i.
completion of the St. Lawrence ~
lrt Ua»»
W/l

COITlj/AC

•

l.k.

ftftl

X J'i.

of skilled labor and executive knowhmv
ow, excellent transportation facilities, great industrial
isn't and the state's location in the center of the extenlan
midwestern market, assure Michigan of an advancing
1

Snnnomv> in"the
'

«■

«•«

"4"

ft ~ '

/% W"> A

•1

to come./
As further evidence of our faith in the future of Michiwe will
begin construction next spring on a new
920 000 000 office building for our companies in Detroit's
Lautiful Civic Center. ~
We look forward with confidence to the years ahead.
years

ing contender for

President and

politan

areas

served

that

ahead

season is some

to 1963, the
15.1/2 million MCF. •

largely

Co., Inc.

expanded.

the

shown.
and

plans.

time,^operating costs continue to

creep

In this highly

the

even

often

not,
the development of a
superior drug by one company will
all but wipe out the
existing market of another. On the
other hand, the
industry's scientists are attacking many
there

expansion

being installed

are

company's
63,000 MCF

the

program

rapidly

meet this

load.

placing
diversifica-

see us

year

need for new

Over
two years, the company has
upwards of $7 million in
and engineering, the results

flHI
Emerson e. Mead

will

equipment.

become

evident

research
of which
the

The company is particularly interested in
products in the fields of printed communication,
processing, and accounting machines.

possible in

present
per

with

agreement

its

supplier

As often

now

are

has,

gas

therefore,

:/•

two.

been

President, Lease Plan

production,

years

lar

Carolina's industrial growth is due not

increasing
means

research;

juture growth hinge
lation, the trend to

companies

mark.

will

pass

This

the billion-dol¬
include

not

does

leasing of equipment by man¬
ufacturer
to
user,
nor
the multimillion sale-lease-back arrangements
between retail stores and real estate
direct

investors.

Lessees cite two

particular advan¬

gained by leasing equipment,
rather than by buying it outright.

farmers are

They

than

50%

classified

of those

South

(!)

their income.

Carolina Ports Authority's $21

for

million ex¬

>■:,

y_•

■

healthy state government favorable to industry, a
Development Corporation capitalized at more
a

million

dollars available to

be spent

(2) Rentals are expenses, thus de¬
an

for

income

important factor

tax

H. L. Meckler

purposes—

in view of the

present high corporate tax rate. Both of these factors
add up to higher profits for shareholders of large con¬
cerns
as
well as partners in small businesses.
Lease

plans

are

particularly advantageous to growing

than

equipment is released for other

ductible

/■>;,;.

Business

•

Money which would

capital needs.

and improvement program which is now in
is undoubtedly stimulating the industrial prog¬
ress
of the state.
Authority officials in December at¬
tributed much of the increased business at the ports,
which set new shipping records in 1959, to new industry
in the area.

are:

assist in financing,

Continued on page 86

,/\

prospects for

the industry's

upon the unremitting rise

in popu¬

scientific farming, requiring more
products for animal health and
nutrition, and the expan¬
sion of world
trade.

Despite aggressive competition from firms abroad,
construction of
has opened

oped

countries

will

grow.

unc

the

American-owned plants on foreign

many

sou

entirely new markets.

become

prosperous,

As less devel¬
these markets

research

adidtion, a sustained high level of scienthroughout the 1960's should help to insure
S.'leadership in the world's chemical .and
Pharmaceutical marketplace.' ' /
ontinued U.

S. C. McMEEKIN

;

President,

South Carolina Electric &

The

Gas Company

South Carolina's
heavy gain in industrial growth and ex-

utn Carolina Electric & Gas
Company since 1954.

ago,

load

1965 at

and

for

this

The

the

increase

forecast

the

several

These

contract

large

three years.

figures
held

Generating

A few miles

Progress
Electric Power

and
Go

exclusive of a
South's Carolina
a

power

Michigan south of Milwaukee.

Hand-in-Hand

the
—

the large area

additional business stimulated by the new St.

area

which includes the entire operating terri¬

south of Milwaukee is the Oak Creek power

new

plant where

275,000 kilowatt unit in 1959 brought the total

capacity of this plant to 775,000 kilowatts. A sixth unit of 275,000
is now under way and scheduled for completion in 1961.

kilo¬

watts

Supporting economic growth in this area is our
that

continuing expansion

which looks always to the years ahead and recognizes
progress and power go hand-in-hand.
|

program

are

Company,

Oak Creek

the Wisconsin Electric Power Company system.

the addition

for

the fact

industries have
purchased tracts in the area and ex¬
pect to build large operations within
that

Si'asC.McMeekin

tory of

area.

1965 has been accelerated by

from

Lawrence Seaway

in¬
kwh.,
1,800,000,000 kwh. in
1,150,000,000

benefits

that

an increase of 144.22%.
Forecasts for 1960 place the

dustrial

shore of Lake

Milwaukee's fine harbor facilities stand as a gateway to

.kwh.,
.

—

Five

the demand for industrial
power was 409,778,000 kilowatt hrs.;
by 1959 it had reached 1,000,782,000
years

largest in Wisconsin

plant of Wisconsin Electric Power Company,

L\r?10n ls re^ec*ed *n ^e increase in industrial electric
9m?tke^peri^nced in the 23-county area served by the
,

the premise

wholly-.

■

nn?

owned subsidiary, with the Savaner Plant of the Atomic Energy Commission which

Abases all

of its

out-side

power

from this company,
demand, the eom-

eePmg well
ahead of the overall
system's generating capability

was

increased

excess

five

pansion

result, the annual volume of leasing
of $100-million and in

International Corp.

and small, are turning in
leasing of equipment as a

new

data

better profits for their shareholders.

creating
is

the

numbers

large

Businesses,

progress

effective

made

An example

addition

new

MECKLER

day.

is the.development last year of
highly safe and effective drugs for
treating mental
depression. Such developments should help provide a
moderate gain in sales for the pharmaceutical industry
m 1960.
■
/
'• •
• ';
In

and

the last
invested

year.

is underway

nonproductive
new

improved

interest has been

this

tion

the

recep¬

new

will
increasing emphasis

service

increasingly

equipment,
systems,
methods which can cut the cost
to

The

distribution

from

become

tages

The

competitive business, however,

which

was

installed

counties

numerous

distribution

for

and

ahead, for the labora¬

short-lived, obsolescence is high.

treatments.

been

working off the farm to supplement

spectacular research achievement may
moderate over-all gain. New products are

disease problems for

and

acquired
installed
wholesale for

were

Also, the labor supply has been greatly enhanced by
the mechanization of farms and the Soil Bank Program

most

provide only

into

have

which results in better-than-average

tory is unquestionably the well-spring of the industry's
progress.

system has been

system

only to'
the influx of new enterprises but to the expansion of ex¬
isting industries, as well.
•
Perhaps one of the States greatest assets is its people,
with their attitude and aptitude in learning new trades

years

South

spending in the

tive

municipal franchises for retail distribution have

mains

month

John E. McKeen

1960

costs,'for example,, are at an all-time high
and still moving upward/?Ih the. pharmaceutical segment
of the industry, research spending will probably top $200
million this year, well above the $127 million spent just
three years ago. There is little likelihood of a cutback
in research

available for
industries and just recently a large glass manufacturing
industry announced expansion of its operations in South
Carolina and will build a huge plant in SCEGCO's serv¬
ice area.
Almost simultaneously, an optical company
announced a
new
plant also in SECGCO's territory.
These are the most recent developments within the past

faces a
•
/.
in competition around the world.

Research

supply

Natural

efficient.: methods. ;;,;V

sale
-

Hm
mains

The

to keep

better,

those towns.

In the year ahead industry management will
a close watch on.costs while developing

upward.
have

upsurge
same

gas

systems

Augusta;

been secured from all towns where

Along with prospects of increased
sales and production,*, however, the

of
and

area

•

continued

the

expanded.

point

$1.5 billion for new plants and equip¬
ment in 1960, or-about 15 to 20%
more than the
1959 outlay.
'Cy,.-.' 7

Distribution

North

Transmission

According to various estimates, the
chemical industry will spend about

industry

and

cost

and

forecast

natural

Summerville;

and

industries strive

still-growing demand for plas¬

chemical

Aiken

the

has

1954, sales

^-v ■?-•:

the

half

for

account

to
-

systems at Charleston and Columbia have been extended

tics, pesticides, fertilizers, drugs and
industrial chemicals is reflected in the

expansion

being

12,000,000 MCF. Looking

>:•

the product is sold at
municipal distribution at Orangeburg. The

1959.

capital

cosmo¬

period

doing business. This staggering pile
of
paperwork is compelling more
and more companies to take a long,
hard
look at their office routines

company
■

period

first half. The U. S. Depart¬
ment of Commerce predicts that sales
of chemicals may reach $27 billion
this year, a gain of close to 10% over

industry's

the

were

ending March,

heating

in the

The

only

Columbia

substantial growth ahead for the
office equipment industry.
The amount of paperwork
involved in running
American business has steadily
grown,
and today, it is estimated
see

punted to 931,000 MCF. The forecast for- the 19591960

During this

plants will be kept busy as metal-using
to catch up and replenish inventories

and

Marchant, Inc.

Smith-Corona
We

Some indication of the
tremendous increase in the vol¬
ume of natural
gas sold can be gained from these com¬
parisons.
For the 12 months

the U. S. economy moving upward at a healthy
the chemical industry is looking ahead to new
in sales and production for 1960. Many chemical

peak's

since

use

MEAD

EMERSON

Executive Vice-President,

time.

pace

industrial

Charleston

and expanding industries.

new

April, 1962.

territory during the winter of 1953-1954. Fighowever, pertain to all departments and are not

segregated

Chairman of the Board,

Chas. Pfizer &

With

gen-

this

uies

McKEEN

JOHN

abundant water,

and

power

uring the

•th
rith the resources

expand,

the

will

dependable

business in
industrial areas, the
gas business gained momentum
same period since natural
gas was introduced

room

kw.

which

the rapid
expansion of the electric

the increase.

P
The
i-b

station

with

raise

for another steam electric

announced

Power
lms

sites

production capability to 1,027,500
scheduled for completion in

pr?Hn?eC+ ?' 1959, plans
nS station

industries, see a very bright future for
.A/ean Auto makers are predicting a 20% increase in
diction in I960 and retailers expect a 10% rise in
prS Employment, payrolls and industrial building are

attractive

and to 890,000 by the end of

natural gas at low rates, are all
inviting factors which are focusing the national spotlight
on South Carolina's bid to become the southeast's lead¬

were

aSwpqLanddother
oil on

(337)

WISCONSIN ELECTRIC POWER COMPANY SYSTEM

The Commercial and Financial ChronicleV

(338)

Continued from page

vehicle fleets.

fined to motor

recently

Research

agement

President, Fidelity

freeing them from the difficult chore of raising
cash. Money already on hand can be used for other
purposes, thus contributing to growth and future profits.
However, leasing is not restricted to concerns strapped
for cash to feed ambitious expansion programs. Multibillion dollar concerns also find they benefit both capi¬
tal-wise and tax-wise, and also that they are able to
avail themselves of present day costs without going into
long-term debt—an important factor whenever rising
costs, tight credit and high interest rates prevail.
Originally, equipment leasing was pretty well con¬
concerns,

The Foundation

estimated

that

for

25%

Deposit Co. of Maryland,

schedule

Baltimore, Md.
These

are
confined to Fidelity (dishonesty
Surety bonds, lines in which we spe¬
cialize.
But in venturing a forecast for 1960 we must
keep in mind some of the uncertainties faced by practi¬
cally all segments of the insurance
industry.
Rate-making procedures, approved
and closely supervised by i the sev¬
eral states,
and which have func¬
tioned satisfactorily for many years,
are
under investigation by a Con¬
gressional Committee.
:
it'

in¬

dustrially used vehicles are leased and that their value
$575-million. It believes leased vehicles eventually
will replace most company-owned fleets and about 50%
of cars individually owned by salesmen.
is

While

healthy
that

and

competition
it is felt in
intense

■

;

aircraft

leased

now

and

ships,

ranges

and

what

encouraged,
Rising prices

well as completely-equipped
major industrial plants. And yes, even kiddy parks.
In Lease Plan International

$28,716,000
w-v*

now

might

total nearly $100-million. Only recently we entered an
entirely new field and provided a major airline with

steel

them

from

leveling

scratched. But with

dynamic,

shall

make rapid

gains

B. H. Mercer

construc¬

effects
after

;

will

settlement.

Assuming that

from these

anticipate

good

peak

and

line

will

crease.

definitely

show

off.

—showed

plans has barely been

normal increase in 1959.

tracts
able

while

There should be

performance of

increase.

public

13%

compared

contract

con¬

glass container segment of the nation's $10 billion
packaging industry will inaugurate the decade of the
'Sixties by producing an all-time
record of 23 billion
bottles and jars in 1960. The record

disappointing in
off
approximately

were

;

with

public

buildings, highways, sewers, water supply
systems,
cetera, must keep pace with national growth.

In addition to

years as

manufacturers

de¬

velop

lighter, stronger, more
nomical, and more convenient

ecocon¬

ored

to fit

specific needs as well as
to companies that meet the
challenge

through
The

research

versatile

and

development.

glass

container

through research.

and

economical, king-size containers.
A large share of
these, too, went to market in glass.
Another significant
development during the decade
us

new

the

J For

our business the year should be
clouds on the horizon.

some

IRWIN

Business
areas

strike had

the

during the
bright
sold

outlook

15 years.

that

convenience

One

the

its

reason

for

the

WmMmmIHNf
'-si

demonstrating

own

faith

The

and

improvements in

existing

ones.

begin making bottles and
jars in
tainer plant in
Bogota,

The

new

com¬

glass con¬
Colombia, and start construction
of another
plant at New Orleans in 1960.
New plans for the
production of
the

new

semi-rigid
playing an increasingly large
packaging liquid detergents and other
household
products, will be opened at Kansas
City, Mo., and To¬
ronto, Canada, in 1960.
Our Paper
plastic container, which is
role

pened

one

the

Products

world's

most

an££lng one near
plants in Chicago
another

modern

in the fall

Minneapolis early in

over

Division

corrugated

and will open

1960

Irwin L. Moore

553,074

1958.

report

favorable

within

few

basically

points

the

were

capacity—230,000 kilowatts

1963 and 100,000 in
1964—from

our

Brayton Point

about

$30 will ap¬

1962,

were

steam

130,000

New York

Mass.

This

enough for

in 1963 and

Mount Hope Bay

site, ideally located
an

near

American

„

in¬

our

year

ended

last year,

Canada
about

so,

Dry

1960,

what

and

economy

this

will

consumer

purchasing power. Com¬
R. W. Moore
the industry — both
in the
advertising and in-store marketing sense—figures
to continue to be brisk and
challenging due to the nature
of the
industry's expanding market, the growing popuv' lation, and the increase in leisure time. Because the
pub¬
lic's demand for
variety and quality continues to be a
<■
growing trend, we believe our company is in a
specially
favorable and advantageous
position. \
In i960, Canada
Dry looks to continuing and intensi¬
fying its diversification within a single field which
petition

within

several years ago when we
"A flavor for

Fall

adopted

our

began
theme,

program

every taste." Further development of the
vending machine and canned phases of our business can
be expected in the
year ahead.
Tthe domestic sales of
canned drinks have doubled
during the past year; we
have
recently supplemented our production facilities by
adding canning lines at our Chicago and Atlanta

Together

with

possible for

plants.

our

other canning lines, this will make it

to put Canada

Dry in cans in most U, S,
our licensed bottlera
jobbers participating in their distribution.
1

markets by the end of 1960 with both
and

1964

River

at
tidewater, is large
installation of at least
1,000,000 kilowatts

MORRISON

President, Morrison-Knudsen Company, Inc.
The

entire world,
including so-called underdeveloped
countries, is teeming with construction
activity. In for¬
eign countries
particularly, these construction programs
reflect improved and more
stabilized economic conditions
.

and

the

desire

of
the
respective
strengthen their in¬
ternational trade positions. Accord-ingly, there are in progress or in

governments

the

planning stage numerous pro¬
involving the construction of

grams
a

great variety of facilities to

serve

industry

and
agriculture and
the
needs of peoples.
Here in .the United
States, 1959
,

was a

record year in the construction

industry,
billion

with
new

approximately
construction

put

$52
in

place.

Contingent on freedom from
disruptive steel and railroad strikes

above

neighbor
Niagara Mohawk Power Corporation.
This will permit
us
to build in one
single operation a 450,000 kilowatt
plant in two units to come on the line
at

the

1960
Harry W. Morrison

expenditures

000,000 and for 1960 our construction
budget
proximate
$35,000,000.
Recently arrangements
completed to buy, substantial blocks of
excess
electric

now.

optimistic

genera¬

percentage

weather

but with one reservation. It is diffi¬
cult at this time to foretell the effect
of the prolonged steel strike on the

shares, and (4)
conditions throughout most of
1959. As a partial offset to some
of the increased
costs
we
did have some
non-recurring Federal income tax
benefits. Also helpful in the
earnings' picture for the
full year was the
general improvement
during the last
quarter of '59 in hydro output.
Heavy rainfalls in the
past three months have boosted
hydro-electric
to

MOORE

by good

summer

understandably,
are

taxes;
additional
subnormal

million

common

normal year in 1958.
For 1959 construction

for the fiscal

it was
accomplished in the
(1) higher labor and other
(2) increased municipal

water

tion

im-

leading companies in

expect

show

inflationary trends, and rainfall

aided

be up about
$1,200,1958 and will
approximate

half

$17,100,000. This will equal $1.33 a
share on
12,821,366 average common

costs;
(3) over

con¬

packaging's

in the coming decade by solid investments
facilities

pany will

000

that

1959, consolidated

net income will

face

thoroughly

things she buys.

our

economy, and
gas sales to all classes
of
consumers showed'
healthy

improvement in our per share
earnings is particularly
encouraging
because

packages
the industry's

store.

are

overall

shares compared to
$1.29
fewer average shares
in

and
should

after 200 bottles per capita consump- ■
tion rate.
We're practically within

over

•

our

1958— gains which
expect will continue in 1960.
For the full year

■p

tinuing trend to self-service in retail
outlets is
another,
for the right
package is the businessman's best
salesman
in the
self-service
We

despite

The

production

consumer

one

in
New England Electric
service
generally good. The nationwide steel

ultimate

-r.

double

good

MOORE

but little effect on
volume of electric and

for

industry will

conditions

in 1959 were

de¬

use

Chairman, New England Electric
System

trip containers.
The

contractors who measure

underwriting standards.

bottles for beer-and soft
drinks because of
economy and the convenience of these
single-

one-way
both

uses

present-day packages.
coming decade will see
greatly increased

The

and
engineering requirements of our growing
economy.
Corporate suretyship must keep pace
by providing per¬

gains
research

sales

gas

Our contracting
industry is strong and resourceful. It
has the capacity and experience to
meet the construction

packages.

they expect their

partments to develop
many new products in the 'Sixties
which either will
require new-type containers or will

bring

was

of aerosol pressure

Our customers tell

encouraging

and

Electric

Sept. 30, 1959, showed all-time rec¬
ord high sales and
earnings, thanks

residential, should

sound

container

believe

:pany's

throughout the year.
Public
construction produces a much
higher percentage of con¬
tract bond premiums than
private construction but there
has been a noticeable increase in
bond premiums on"
private contracts.
'
r

formance bonds for all

as a

decade just ended saw
many
new products added
to the medicine
chest, the pantry,
the cleaning
department, and the boudoir in the Ameri¬
can
home, many of them packed in glass bottles and
jars.
The 'Fifties
brought an increasing trend toward
greater
self-service in grocer,
drug, and other retail stores as
well as greater use of both
convenience items such as
instant coffee, and a
myriad other "instant"
products,

use

high level

value
The

the

ideally equipped to handle the chal¬
lenge and we expect to add to its

Carl R. Megowen

dustry expect 1960 sales to increase
from 5% upward.
Our own com-

continue

beverage,

industries to market.
Packaging in the 'Sixties belongs
to those materials that can
be tail¬

it impossible to be precise in any
prediction of
share earnings increase. How we fare will depend
large extent on how much new labor contracts now
being negotiated will increase operating costs, general

The

its normal

Private contract awards, other than

tainers for carrying the
products of
the nation's drug,
chemical,
and food

1960

electric

sight of that goal

program of heavy engineer¬
ing contracts, Federal agencies must of
necessity build
more post
offices, court houses, et cetera, and new
types
of construction such as missile
launching bases and facil¬
ities are coming more into
prominence.
;

1959, will be the forerunner of

record-breaking

England

carbonated beverage industry will forge
on
to even
greater prosperity in 1960. Industry leaders are predict¬
ing that 1960 will see the attainment of the
long-sought-

reason¬

somewhat

awards

than

our

provements of about 7 and 14%, respectively, over 1959.
However, there are some unresolved situations which

crease

The

container

volume

for

was

less

'''

President, Canada Dry Corp.

crease

glass

the

outlook

1958, despite the fact that an in¬
of about 7% had been
anticipated. Such a de¬
has little significance. The fact remains
that our
population is increasing and living standards are im¬
proving. The need for schools, hospitals and other

CARL R. MEGOWEN

The

slightly off in 1959 should show

Nineteen-fifty-nine

production,

and water conditions.

further increase this year.
Premiums on bonds guaranteeing

industp^-wide sales

President, Owens-Illinois Glass Co.

series of

■

totaling

somewhat

was

expect to finance

Surety lines premiums on Judicial risks—bonds
for executors,
administrators, trustees and other fiduci¬
aries, and bonds needed in various phases of litigation

in this market.

from

amount

In the

that

In 1960

this

and

at the end of 1959.

business conditions and

in¬

per
to a

year

in the three-year cycle of Fidelity

year

that

$13,600,000

and

make

from devel¬

foreseeable

now

lines.

our

premiums

have

time

some

not

This is

pro¬
designed to clear up any confusion on the part of
prospective clients, and spelling out the dollars and cents
benefits obtained through use of leased
equipment, we
gram

its

issued

unlikely that we will sell any New
System common shares before 1961.

money

serious dislocations result

for

But profit pictures will improve
steadily over the years
now
that overhead costs are
for lease

retarded

and

felt for

opments

expenses.

market

had

activities

capital expenditures at
a time when their resources
are being
strained by the
transition from piston engine to the
expensive turbojet
and turboprop powered aircraft.

The potential

tight

additional

The profits of the leasing companies themselves
been held down by
starting costs and overhead

strike

tion

ground equipment, ranging from panel trucks to loading
equipment. Other airlines are examining this plan which
releases

and

are
contributing factors to
Fidelity and Surety losses. The

both

subsidiaries

our

construction activities
.from internal sources and from
temporary bank loans,
with about a $10,000,000 bond or
preferred stock issue
by a subsidiary late in the year. As of now, it appears

market

alone, annual rentals

completed

were

j $20,000,000

work

$10,000,000 of preferred stock.
The
used to reduce short-term bank debt
and
for construction expenditures.
At the beginning of
last
year,
subsidiaries had short-term bank debt
proceeds

destructive competition should

prove

from office equipment

funded- debt

■'

keep and
some quarters

o\\

exterior

the

Electric

Company.
During 1959

;

most

expected to be in operation late in 1960, is held
through
our subsidiary, New England Power
Company, owner of
30% of the common stock of Yankee Atomic

Equipment

with

Installations of machines, equipment and controls
inside
will continue through the winter and
spring. Our investment in New England's first atomic
plant, which

comments

insurance)

Man¬

Construction of the 134,000 kilowatt atomic
electric
plant at Rowe, Mass., by Yankee Atomic Electric is

MERCER

Thursday, January 21, 1960

will

record

top
$lJ/2

evidenced

1959's
to

construction

billion.

This

part by our own
company's record domestic backlog of
$328,000,000. For¬
eign construction backlog of
$77,000,000 brings our total
backlog to $405,000,000.
We estimate
that
approximately one-third of 1960
construction will be of the
"heavy" or engineered type
normally undertaken by ourselves and our subsidiary,

The H. K.
Ferguson Company.
"Heavy" construction
projects include railroads,
highways, tunnels, bridges,
hydroelectric
developments, transmission lines, pipe
lines, airports, missile bases and steel,
paper, synthetic
fiber and other
types of industrial plants. In other divi-

Number

Volume 191

5918

The Commercial and Financial
Chronicle

the industry, mass housing and commerical
will be important elements of the 1960 picture.
The construction
industry is a large user of steel,
,„mber
cement, petroleum products, rubber.tires and
Ljflvv 'construction equipment. The unchecked trend
ifhigher wage levels and expanded fringe benefits in
Inst of these industries can only mean that we shall
III naving higher prices for their products in 1960 and
;iQ61 The construction industry itself is also plagued with
fhp problem of unstabilized wage scales.
Consequently,
"'
'use of the materials and wage factors mentioned,
P
onininn
that
1960 construction costs will Ua,
it
is our opinion that
1960 construction costs will be
1
O""
« /i/
vwsw,
mua
1J1Ubetween 4 and 5% higher than 1959 costs, thus pro¬
foneing a trend that has been in evidence for the past
longing a
—- —
O
several yc
continuing challenge
several years. This has presented a the develonmont nf
•b
instruction
industrv
for
of

inns

current General

dings

new

sales

Foods program of installing a radically
distribution system from coast to coast,

and

•

ims

—

——

*•

•

too,

prove

our

General
its

part

able factors, we

Jhe/€

•

food

industry

prepared

our

Construction climbed

tions

personal
man's
10

and

convenience

the horizon

prices

the

age-old insistence

for

they

It is

new

must

ways

food

world

and

food
There

today—resulting

better

found

life.
to

nutritious

the

meet

the

contribute
versal

food

some

measure

toward

meeting

for

that

uni¬

United

our

food

States

National

Bank

the way

which

should

carry

.common

sixties, America's biggest
our

na¬

period of prosperity
any we have enjoyed so far. ;•
The great challenge in the future
threshold of

the
greater than

being

even

is to
certain that food continues to

make

be"

entire

the

for

industry

affected

two

bushels.

the

Considering

three

last

much

selected

feed

this

during

the

strike

tremendous

period. Retail merchants also
will be replenishing stocks of items,
which

were

either

not

available

not

being purchased exten¬
sively in the last half of 1959.
were

However,

the

"fill-up"

inven¬
impor¬
expansion in

tory pipelines may not be
tant

Indiana

supply

Farm production

will be paying off

incurred

essential items postponed during the

the

into
cash receipts.
Cattle and calves on Ellsworth Moser
feed in Nebraska on Oct.
1, 1959,
were up 22%.Western ranchers of
our area continue
to expand production.
Net farm in¬
come was lower for 1959 than a year ago.
Cash receipts
dropped about 6%.

areas

lay-off period and, in addition, will
be making purchases of many non¬

denominator in the transfer
of

MOTHERSHEAD

supporting
business

any

the

months

to
Wilson

Mothershead
might be expected. The steel
strike, as serious as it was to those
directly affected, was not as important in affecting the
Indiana economy as one might have assumed; In Indi¬

come as

anapolis, for example, the effects were relatively minor.
Apparently, much more steel was available during the
Continued

costs moved up-

good value in quality and
.convenience, a bargain vin

sumers—a

built-in

food

that

fewer
For

hours of
an

obtainable
work,

industry

for

•

even

;'L

that in

the-year

just ending employed — directly or
indirectly—one of every four per¬
sons
in the American labor force,
.

paid some $45 billion in

salaries and

served 178 million Americans,
had sales totaling around $73

wages,

and

the 1960-1970 span offers a
opportunity for all of its seg¬
to serve the public even better

billion;
Charles G. Mortimer

time of
ments

than

ever,

have

past. It is axiomatic

the

that we

only earn benefits for ourselves and our stock¬
holders by first benefiting the American consumer. And
can

all of

us—suppliers, manufacturers, distributors, whole¬
retailers, and growers,.-'alike—must find better
ways of serving the consumer more efficiently, effec¬
tively and economically. Only in this way can we con¬
tinue to earn an even
larger > share of the consumer's
dollar, in the period of an expanding economy and in¬
creasing population which lies directly ahead.

salers,

Our

generating

net

ca¬

increased

has

pacity

The record-breaking gross national product, estimated
at around
$480 billion for the year just ending, is ex¬
pected to reach
$540

year's almost
$380 billion of
personal income is forecast to hit $485
billion by 1965 and $600 billion as the population soars
to some 210
million people in the United States by 1970.
In our
all-important concern with serving the wants
and needs
of our customers
and consumers.
General
Foods is
looking well ahead in research, development,
marketing, distribution and into all the elements of this
important industry which will make it more attractive

tor
.

111

everyone to do

We feel

improving

are

our

billion by 1965. This

business with our company.

beginning to make important progress
services to the trade by actively and

consciously trying to find out how we can better serve
both
large and small grocery stores in all areas and then
taking positive steps to meet the common objective of
making it less costly, more appealing, and more con¬
venient for

our

mutual boss—Mrs.

Products and services.
For

example, customers

Consumer—to use our

have favorably

welcomed the

ap¬

value for American con¬

good

food

of course, the steel strike is not re¬
industry and users of steel will be

steel

indebtedness

ord book of Nebraska farmers.

will

rebuilding inventories, for an ex¬
tended period into 1960. Consumers

highs in business activity and provided

new

The

sumed.

years together, which followed
drought choked 1955 and 1956, they
are truly fabulous pages in the rec-

tion

situation

period, provided,

crop

there

particularly the first
half, probably will be characterized as a "catching up"

Corn exceeded any other
in the state's history by

crop

million

size

that

Business activity in Indiana in 1960,

Omaha,

well into 1960
prosperous basis. Total crop produc¬
tion was the second largest on record
only 7% below the 1958 all-

indicate

Indianapolis, Ind.
of

feed-grain tonnage is at an :
all-time high. Livestock will be the

industry—looks forward to

Omaha

President, The Indiana National Bank,

Tremendous agricultural production led

area1

momentum

G. MORTIMER

enter the decade of the

business—the

local

MOSER

Nineteen fifty-nine proved to be another "record buster"

Foods Corporation

General

resources

housing. The area is
back into growth through

major uncon¬
trolled factors: (1) The national economy, with a politi¬
cal campaign year, labor problems, agricultural subsi¬
dies, foreign aid and related inflationary influences.
(2) The weather, with its dominant effects on agricul¬
tural production and thus the fortunes of the area.

Omaha, Nebraska

Rudy A. Moritz

■

Chairman of the Board,

The

for

All classifica¬

private

except

WILSON

ELLSWORTH

corn

Officer,

obligation.

time high.

Chief Executive

highs during 1959. The
a 32%
increase. Plans

Our

Total

and

new

problem

will

Estimates

can

American

ahead.

industry and national boundaries.

revolution

years

demand

has made during the past year.
Accordingly, our plant improveyv;
:
\
V
merit and expansion program, and our advertising, sales
and promotional efforts are being geared to take fullest
advantage of the greater sales potential for our products.

CHARLES

index showed

construction expansion.-

'people everywhere. We hope and believe that the ex¬
periments being conducted in the food industry today
and the plans we are now
making for the future will

pany

Chairman

affect

building activity

grow¬

...

com¬

increase

fected by weather in the second half.

first part of 1960, but lower agricultural prices
the area's economy. It could be further af¬

the

will

that

tomorrow

*s an?ther challenge for the

from

favor¬

our

progress

fully

ago.

proximately $70 million spent on buildings of all types,
$15 million on Interstate Highways, and $40 million
on defense projects in 1960.
•*-' ' "
A strong demand for bank credit to finance the rise
in business activity and expanding agricultural produc¬
tion brought an upward surge in loans. Deposit growth
in area banks did not keep pace with the increase in
loans.
The situation is likely to remain tight in the
coming year.

industry that lies

look ahead to con¬

of the

tinuation

the

for

showed

Hard goods sales during the first 10
months were up 15% for the state; soft goods 6% higher.
Retail sales should be sustained at a high lev# at least

to im¬

ways

Omaha

records.

new

year

plowing much of its

that cuts across

t-'

set
a

indicate 1960 will show further increase.'

S ■~*Ii Quality

President, Drewrys Ltd., U. S. A. Inc.

focusing

are

meeting the "trade-up trends" of

afford to pay.-

MORITZ

of these generally

contribution

Foods will

Because

over

aaily to provide the American
people, through our cus¬
tomers, with evemb^
more
nutritious foods with

maintaining construction costs in balance with
other industrial costs.
Therefore,^ we are pledged to
continue a policy of careful planning in the execution
of construction contracts and
close coordination with
construction equipment manufacturers in the develop¬
ment of increasingly efficient units.

markets.

sales

working

cessity of

objective opinion that the increase in total beer
consumption in 1959 should be continued in 1960.
The steady growth of population reaching the beer
drinking age, the constantly greater popularity of beer
with women, high employment and
industry expansion with accompany¬
ing increased purchasing power, and
the overall more and more favorable
recognition of beer as a family bev¬
erage
justify : the
expectancy of
growing beer industry volume.
Located as we are in a heavy steel
and automotive
industry area, the
improvement
in labor conditions
should mean a better business cli¬
mate
in
many
of
our
primary

and

Two of the most
important of these are General Foods
ivitcnens and the General Foods Research
Center where
hundreds of scientists and food technicians are

„

It is our

cus¬

our

space,

ing population as the expected rise in
personal incomes
becomes reality.

one-half of projected increased costs have to date
passed on to construction buyers.
an industry, we are acutely conscious of the ne¬

RUDY A.

planning

ttilly installed in 17 major centers
early in 1961. Each
these centers is
individually tailored to meet the
wants and needs of
each customer in that market.
In other
areas,

been

wards.
It looks as if we can expect some further drop
during 1960. Lower average livestock prices appear in
offing. The government loan price on feed-grains
will be lower. Odds are against as large a crop in 1960
as the bumper harvest of 1959.
Business proved as "golden" as the corn crop. Retail

demonstrated by the fact that approximately
.

long-range

created to enable

was

inventory levels, warehouse

the

concept of service to customers is already
operation in seven major markets and will be close

the construction industry for the development of
ci
efficient and more economical construction metheffi<
The success of the industry's efforts in this diods. The
ocib,
•LliV
j—U.T
+v.o.
j'
-

ago,

our

■■ •

years

capital investment.
This unique

■

nnlv

some

conceived

tomers to reduce

more
more

rection is
rection'is.

program,

eiiorts

yVrlA*W>(

(339)

the

past

241,000
kw

v.,',

years

from

1,138,000

increase

371%.
A

new

turbo

240,000 kw steam
generator

was

placed in operation at our
Mustang Station, 10 miles
west of Oklahoma

June,

City in

1959.

are

A copy

meeting all service demands

and have

1959

adequate reserve supply.

OKLAHOMA

GAS
321

North

AND

ELECTRIC

Harvey, Oklahoma City, Oklahoma

Donald

Annual

of our
Report

is yours on request.

Kennedy, President

COMPANY

page

Continued

from

strike than

was

page

alternative

the

made

the

supplies of steel that were available, thereby
maintaining operations and employment at reasonably
satisfactory levels. In fact unemployment claims in
Indiana never did reach the highs reported last Janu¬
and only in one week, the last week in October, did

ary

claims

such

approach

even

the

year.

further evidence of

are

.....

sales and banking activity

Department store
months

highs for the
past

the moderate effects of

Except for mortgage loans, credit ex¬
continued at relatively high levels, and

the recent strike.

have

tensions

credit has expanded

consumer

rapidly.

the restrictions imposed

rowing

may

outlook

and the accompanying high cost of bor¬
be the dark spots in an otherwise bright
business in Indiana during the first half

tight money
for

Chicago,

take

Burlington

advantage

peoples

Quincy Railroad expects
opportunity this year to

every

produce better results. In 1959 operating revenues were
up slightly, net income was about 10% below the pre¬
vious year's level, due in part to tne
steel strike, and to higher wages and
payroll taxes.
Freight traffic volume was ad¬
versely affected in the second half
of

1959

ments,

Carloadings showed

food simpler to
farmers but for the
densely populated and less developed

By using new techniques to induce mutation and new
for
combining different species, we may be
develop vastly superior crop plants.. This could

able to

have

a far-reaching impact.
Significant information also
being found to make our food more beneficial and
flavorful through scientific
selection, plant nutrition and
hybridization of plants.

hauled

27,750
flatcars

loaded
in

can

expect

New frontiers will be
crossed
other means of

and

preserving

Work

about

freezing

foods.

about 45.000 last year, and a further
increase to 60,000 is anticipated in
1960.

canning,

trailers

1958

coin,

see important development in food
process¬
ing with emphasis on greater retention of
flavor, vita¬

mins and other nutrients.

from

meinods

half the margin of increase recorded
in the first half.
Piggyback traffic
rose

make

for

the 1960's to

gain of about

countries.

ways

only

On the other side of the research

a decline in grain ship¬
well as the steel strike.

also

not

5% for the year as a whole, less than

in business built solely on the expecta¬
tion of a need to refill inventory pipelines, ultimately
could result in burdensome inventories. This possible
Thus any surge

development together with

The

Thursday, January 21, 1960

but

grow—simpler

President, Burlington Lines

addition, wise choices

uses

limited

dramatically

MURPHY

estimated and, in

made

were

The Commercial and Financial Chronicle

(340)

will

various

continue

proteins

ways

that

evaluate

foods

can

the
quality
identified not

only

as to content of the all-important proteins but
also
make-up and value of the protein included.

,
_

1960.

yt/Y:Y;

HON.
/

The year

KARL

Senator

1960, it

seems

South

world, based
developments and decisions which took
place during the year just concluded. Most significant,
of course, is a brighter prospect for *' ■
momentous

'the continuance
enter

world

called

"cold

war"

began

mier

Nikita

Russia

1948.

and

Khrushchev

President
est

Eisenhower

world

the

We have
the

standing,

international

inter¬

called summit conferences

Hon. Karl Mundt

under¬

Act

the

first

the four

session

the

86th

members of the labor

greater control of their union affairs to the
clusion of the dictates of
powerful labor bosses,

ex¬

may

long

toward

way

preventing

harmful

work

stop¬
pages which disrupt the American
economy and rob the
workers of their

daily income.

On this optimistic horizon
year, there still

looms

that

lies

ahead

the

new

major threat with which the
country has been grappling for the past few
years. This
is continued eroding
away of the value of the dollar.

unable

vested

and

earn

savings,

are

pensions

Moreover, it has

living

definite

are

social

in retirement

income

effect

1959

increased

Patronage

despite

the

from

security

our

in¬

benefits.

world

trade

balances.
convinced

that

the

battle against

its

end

excursions, and theatre
the

inflation

government—Federal, state, county
can

and

sports tours

accepting
Too

business

devote

dollars

labor

enough

too

men

much

and

wage

attention

profits, salaries

And

pense.

further

niques

must

improve

our

forward

press

plant

and

with

its

earners

trying

wages

and

equipment,

and

YYYy

world

population

annually, the

actually operate

ol/u eflectlnf,
mint.
~nE„Ci0nSmy
voters

face

Soup Company

National Sales
Tax,

\n- g°vernment could

become

1SSUe "Ithe 1960 PolitYal

y come to understand
spend

give

shall

awav

the

greatest

campaign if

that the
only the

Federal
money

recttaxatfonnr hayJrT, a1' the people whether' bv diing as
hidden but
effective Sales' ^nflati0n °perata

foods

industry

unparalleled challenge—and
outstanding oppor¬
tunity—in the Scientific 60's to reach

knowledge about food.
not

thresholds
Whether

America

can

the

summon

leadership
tain

that

necessary
world

other
see

technical

make

population

cer¬

growth

challenge

and

knowledge
or

than

the

simple

application of

less

developed

areas,

the

rearrangement of some
economies
to
make

productive.

food

research—new
knowledge
could revolutionize much of
today's thinking about

yields,
about

plants,
about

about harvest times and
ways

about

widen

breeding

the

automated

climate

disease

for-r

farming

Instead, the challenge means
locking -— through agricultural

Murphy

ex¬

current

eign

Win. B.

un¬

and

that
crop

harvesting,

tolerances

resistance

into

food

plants,

genetic

techniques that will make possible new
horizons in plant breeding, about the
human body's use,
requirement and response to various
food, about the
complicated chemistry of flavors, just to
mention a few.
America's food researchers are on the
way to bringing
in many of the
necessary answers, and the facts
they
seek so
diligently today may form the basis for the new
and

complex questions of tomorrow.
genetic research shows
healthy progress
enabling plant life to grow where it

toward

wouldn't before.
Development of new disease and
weather-resistant vari¬
eties will help make this
possible.
we

finding

ways

can

the

each

easily

world

area,.

produced

introducing
those /areas

local

development of
edge.
|

somewhat different kind of knowl¬

■

America's food researchers can be counted on
to
tinue their aggressive efforts and to
help ease the
dox of

con¬

para¬

hungry people in one nation and farm
surpluses
in another, of horse and
buggy agriculture in one part
of the world and
galloping technology in another.
V

)

MURRAY

Chairman of the Board, Hooker Chemical
Corp.
The decade just ended was marked
by the greatest
pansion in the history of the chemical

industry.

expenditures

plant improvement and expansion to¬
approximately $13 billion, running from $0.77

taled

lion in
cal

ex¬

Capital

for

I9o0 to

1957.

and

billion,

of $1.72 bil-

peax

allied

products

$13.2

were

whereas in the
they had risen to

ended,

1949, sales of chemi¬
year

just

than

$25 billion, an increase of 90%. With
upward of $13 billion put into plant
expansion and new products, it is
not

surprising that over-capacity has

been

which

created

competition.
tion

would

pacity
for
the

catch

within

the

has

intensified

Undoubtedly
a

consump¬

present

few

very

ca¬

but

years

fact

that the expansion of
industry is continuing with near
annual capital expenditures

record

forecast

for

ahead.

the

This

will

that

probably

immediately

years

means

continue

and

Lindley

Murray

over-ca-

unlikely

that

this

highly competitive domestic situation, more and
are being imported. These
imports have,
been stimulated by low prices made possible
by the much lower wage and salary rates in effect in
chemicals

course,

other

countries

The

compared

recession

1957

newed

and

which

our

to increase crop yields

occurred

own.

:YYYY

towards the latter

during the first half of 1958 stimulated

efforts

part
re¬

the part of the U. S. chemicalindustry

to cut

costs, improve quality, tighten budgeting, intensify
research, streamline management organization, and trim
capital expenditures. These efforts undoubtedly helped
prevent 1958 from being worse and strengthened 1959.
However, it is more difficult to keep costs under control
when business is
booming and efforts must be redoubled
to avoid
losing some of the gains made during the re¬
cession.

perative.

Continuing intense competition makes this im¬
Y
Y - * Y Y.
' Y Y:'

Experts seem to agree that, in spite of some ups and
downs, business in the Sixties is going to be pretty good.
During the Fifties, sales of chemical and allied prod¬
ucts showed an over-all
growth rate of 6.5%/ Even if
this rate is not maintained
throughout the decade just
^starting, a growth rate of say 5% would still represent
pretty good business. However, it must be admitted that
tight money and high interest rates, inadequate depre¬
ciation
regulations, and wage-price spiral and labor
unrest, the cost-price squeeze, international tensions and
increasing foreign competition cloud the future.
As for ouri
company, sales
record levels

being

17%

better

than

in the year just ended were
than 19% above 1958 and

1957,

our

best

previous sales year.

Although the adverse factors already mentioned are
making it more and more difficult to maintain our profit
spread, earnings per share
than
our

1958

and

best previous

the $1.68

Our

Not only are

production,/processing and,-dis¬
systems more efficient, all of which
requires

tribution

does not overtake the
earth's ability
to feed its
people.
This

portation

choose to be in this
position,

undoubtedly true that
nations will be
watching to

common

that

making

the

to
persons

not

'economy-minded Federal officials and we
spenders and the schemers into retire-

aenerzu

Govfrnfw
whilh

unlimited

this dynamic
industry will reach more than 85% or so
of installed
capacity in the foreseeable future... Added

growing by 50 million

involves

Federal money by
inflationarv moves

y^YYYYY

Y-

research efforts of America's
food

Qoi?eTaCinltieS imposed upon them a 53% National
thI?Xth
6 v£ters develop maturity enough to realo

tech¬

our

MURPHY

President, Campbell
With

earn

seems

part

foods

pacity

WILLIAM B.

to trying to protect the
earning
buying power of the dollars which
they receive.
With the dollar
today having a purchasing power of
only
47
cents, the time is here to stop deficit
Federal spend^nfr~^he greatest single cause of inflation. Actually,
inflation should be
spelled "tax" as it operates
precisely in the manner of a National
Sales Tax. It ignores
the ability to
pay and takes most from
those with the
largest families instead of
granting exemptions for de¬
pendents as does the income
tax.
Voters would be
quick to reject
candidates for office or
public officials

tiffi

purpose

and

°S- Wh0 vot-e t0 spend
financing are triggering off

programs

procedures, our rates and service, for the
of attaining greater
operating efficiency
making rail transportation more attractive
to
shippers and travelers.
dual

attention

use

biiiion

and

can

con¬

government, in
regulation and taxation—areas in which our
competitors now enjoy a favored position at
our
ex¬
regard

and

reasonable wage schedules.

many

opinion
pay

services while

also

While uncertainties cloud the economic
scene, general
conditions presently indicate increased
traffic for the
railroads in the current
year. However, it is certain that
1960 will witness intense
co?npetition for the transpor¬
tation dollar. To meet this
challenge, our industry must
conduct an
unrelenting campaign on several fronts. It
is important that we continue
to strive for fair and
equitable treatment from all levels of

municipal can
keeping their budgets in balance. Also, business
contribute by trying to hold the
price line of mer¬

chandise and

potential

complexity: of fobtjs and food

Zephyr

improved showing.

corollary of holding the price line is the
greatest
domestic problem our
country faces in 1960. Everyone
has a stake in this
fight and all agencies and levels of
aid by

re¬

100,before the cars had completed three
years in
Special group movements and creative trafficbuilding efforts such as student educational tours, week¬

new

Vista-Dome

Zephyr and the Vista-Dome Denver

and

people in the older age brackets who

the

small

new

season,

well-being of all
particularly damaging to

miles.

while

one

Inflation affects the
prosperity
classes of Americans and it is

revenues

train

so-

unions

tributed to

where the heads of

Congress, giving the rank-and-file

freight

service.

great powers will continue their efforts to iron out long¬
standing and irritating differences.
Here at home, we
begin the new year of 1960 with
strong business activity, high employment and prospects
of setting new records in our
gross national product pro'viding labor strikes can be avoided. Passage of the

Landrum-Griffin

approximately 3,000 exist¬
repairs. Y/;YYyyYY"

000 mark

and

evidenced by the forthcoming series of

bulkheads, and flatcars

close to full capacity throughout the summer
and the number of travelers using the
Slumbercoaches on the Denver Zephyr crossed the

definitely moved forward

field

chemistry.

remained

goodwill.
in

received heavy shop

cars

vacation

and

California

un¬

friendship

peace,

endless

dolas with removable roofs, and
with bulkheads. In
addition,

fleet

its

new

Passenger

the

States, followed by the
precedented
It-country
tour

list is

because of the variety and

of. the world's food problem revolves
around helping educate people in the use of
new foods
to reduce dietary deficiencies. This
calls for maximum

duction

Pre¬

United

cars
to be acquired in 1960 are under
Among major projects planned for 1960
are the completion cf a new
freight house to serve the
Kansas City, Mo., area, and a new
bridge across the
Mississippi River at Quincy, 111.

This has been brought about, first by
the interchange of visits by VicePresident Nixon

shippers'
■
for occasional

consideration.

The

Harry C. Murphy

gen¬

was

spot shortages.
freight equipment
2,400-horsepower diesel-electric locomo¬
tives for fast
Chicago-Denver service, and more than
1,000 new freight cars, including wide-door box cars,
Damage-Free box cars, covered hoppers, Airslides, gon¬
16

New

new

point

supply

to. meet

year, except
railroad augmented

ing

peace.

decade, all indica¬
relaxing of interna¬
tional tensions which have plagued
peoples of the world since the sotions

car

sufficient
last

with

the American people, in fact for the entire

erally
The

Dakota

holds great promise for

me,

Y Burlington's
needs

MUNDT

from

yY/Y-.-YY-

yy Y'Y

included

the

five

exceeded

earnings
13

years,

cents

were

the

$1.68

than

25%

achieved

better
1956,

share year, by 7%,
of non-recurring profit.

per

and
In

expect to spend close to $100
million for capital
expenditures compared to $61 million
in the last five
years.
Y '
we

We also

are

definitely planning to intensify and spend
on .research and development in 1960 and

more money
the years ahead.

Number 5918

Volume 191

CLARENCE
Chairman

The Commercial
v
commercial

MYERS

idleness—in

President,

total of $534 billion at the year-end. Benefit pay¬
ments probably exceeded $7*/2 billion. With generally
'avorable economic conditions likely
for the rest of 1960 another good "
year is in prospect for life insurance.
The Institute has projected a further
rise in insurance in force to $575 biljjon and estimates that benefit pay¬
ments during the year will, amount
to nearly $8 billion.
: ■
in force has risen in all
but two years of this century,: and
has risen in every year since 1933.
The average American family now
has coverage equal to 19 months of ;
disposable income. This,., is a com-,/
mendable achievement .for our busi¬
ness, the product of persistent efforts
Insurance

the

Myers

substan¬

children

and,

the average

cover¬

better

/ /

business.

Last

life

year,

assets increased by $6 billion, and the rate of
investment return rose by about 10 basis points to 3.95%.
of investment earnings is of great impor¬

Now the rate

to the insuring

public, because it affects the

cost

of insurance and therefore the coverage the average fam¬

ily can afford to carry. So are the loan values of the
policies, which are always available at contractually es¬
tablished rates and for as long as the funds are needed.

however, that the investment side of our
important to the general public as it is to
our policyowners, and it
is principally from this stand¬
point that I would like to make a few brief comments.
In recent years the asset growth of the life
companies,
one of the largest sources of savings in the
economy, has
not kept pace with the record sales of insurance. Policies
I

believe,

business is

emphasizing protection and involving a minimum of in¬
vestment represent an increasing proportion of the sales
in

business.

our

distressed

if I

life

insurance

thought this

was

would

the cash value of permanent insurance creates

cause

investment the average policyowner
to

man

enduring trend, be¬

scarcely expect

can

accumulate, except by fortuitous investment, with the
outlay for term insurance combined with

same

side

savings

Frequently,

program.

out¬

the temporary

too,

insurance is allowed to expire and the
family is left with
no

financial backlog with which emergencies can be met.

citizen,

the possible

however,

effects

growth might have

concerned

leveling off of life

7fa1vy one'

productivity

over

asset

company

the savings of the economy.

The

better life cannot both be satisfied

productivity continues to rise. But worker

will

not

are

rise

made

the

necessary

available

economic

race

the

tools

labor

and

force.

such

due

NOYES

Insurance

opera-

Brothers, Pepsi Cola, and corporations of this type.

The total tax assessment of all office buildings represents

feet

make

New

York

ciency

means

City

operation
permit the

use

tion which

tronics
ment

these

over

that

ests
in

outstanding

years

building of today almost defy
ago.

Downtown two

inter¬

$231,000,000—Chase Manhattan
building costing $131,000,000 and

(Diesel Construction Co.) in the erection
buildings that he and associates have erected in

the

the Church Street neighborhood and the Insurance Dis¬
trict containing nearly 2,500,000 feet of modem office

It is

space.

Manhattan

Island

where

practically all

this modern office space has been and is
being pro¬
duced. This small island is only 22 square miles in area
or about 14,000 acres.
Figuratively speaking, it is about
the size of

Sterling Forest, one of the properties owned
by Robert W. Dowling's City Investing Company. The
City of New York itself has a population of about 8,150,-

Commercial

On
not

the

and

population of Manhattan alone is 1,871,000.

Manhattan

Island

there

are

These office buildings alone

$2,337,000,000 and these properties
New York each year

During the recent
square

feet of office

Island.

Among

space

those

struction

Company

Rudin,

assessed for

from

fewer

■

builders

Wolfson),
Fisher

Corporation

Industrial

market

who
are

have

been

Uris

Brothers,

range

are

dozen

two

up¬

probably
400

these

manufacturers who

introduced by

sig¬

are

the leaders.

The

industry has been hurt by a
nationwide epidemic of price cutting
that was triggered by the drop in
available
two

business

years.
are

ures

While

available

during the past
earnings fig¬

for

kinds

through
For

all

channels—thus

part

own

through life insurance
interests

will

continue

policyowners, and to

requirements of the general

GEORGE

President,

the

are

confident

grow

keys
that

1959.

outlook

The

modest

for

of materials and

seems

prices to

labor;

recognition on the part of manufacturers
this industry's profits are more sensitive to price

reductions than
—a

reductions

trend toward mergers

fort to find ways
—an

effort

volume;

of manufacturers in an ef¬

of reducing costs;
the part of distributors in

with

dering better service
—new

the lines carried;

developments leading to more widespread use

higher levels of illuminations.

Minskoff

Continued

best

the

economv.

NEWBURY

Manufacturers and Traders Trust Co.

The economic outlook
would be bright indeed were it
for the evidence, of.
mounting tension and ill will

not

the

relationships

Despite that

- between
management and labor.
unfortunate circumstance it would take a

hardy, soul to visualize 1960 as other
a. period of above average busi¬
ness'activity. I view it as definitely

/than

above average

However, jn

year.

judgment,

America is to continue its
-

econ

mic

progress at anywhere near the rate
it has established in the post World

REALTY

CONSTRUCTION

War'.; II

period, an answer must be
to-adjusting differences be¬
tween" labor and management that
will not result either (1) in extended
strikes or (2) in such strained rela¬

CO., INC

found

George

must

Newbury

ave
c

all

ln a

i aits

internal

strife

the
of

world.
the

kind

But
we

these past few months can

relatively short time.

of the world
rcimand to catch

economies

realize that

witnessed

are

dissipate that
Our competitors in other

straining every resource at their
long hours—foregoing

us—working

"?umer goods—and in some countries submitting to
Indentation and restrictions on individual freedom,
we can
maintain

lead

^sacrifices

in this economic race

without

provided we keep our splendid economic
functioning smoothly. We may fail to do so
continue to indulge ourselves in long periods of

achine
we

Owners and Builders Since 1898

tionships that efficient operation is
unlikely.
We have a long lead in the race
for superiority in productivity among
the

this field to

improve their profits by carrying fewer lines and ren¬

saving

the

serve

apace

these lines:

along

offset cost increases

better

—a

that

1960

increase

the

Louis E. Newman

the

most

manufacturers, it is believed that few in the industry
earned a profit of any consequence during either 1958

Diesel Con¬

Brothers,

than

field

There

400.

Investment and the savings to finance it—savings of all
future.

/ -

fluorescent

for

nificantly contributing to the new
developments in the lighting field..
The
others
rely on bringing out
competitive copies of new fixtures

into the City of

has been added to Man¬

construction

(Erwin

Tishman,

v:/V

NEWMAN

Smithcraft

and

tensely competitive

from 1947 to early 1959, 33,500,-

foremost in office building

Samuel

pay

are

approximately $95 million in taxes.

years

years.

been

ward

1,289 office buildings

including millions of feet of loft, salesroom and fac¬

tory space.

•

that definitely will

number of manufacturers in this in¬

—a

000

regards construc¬

$250 million a year.
growing at an average rate of about 8% a
year.
It is my expectation that 1960 will be a year of
average
growth.
Estimates of the

construc¬

Erwin Wolf son
of

President,

It has

alone have invested

their

In addition to this, there are

lighting fixtures aggregates about

Vision, ingenuity and advanced ideas in the
years

certainty

produced within the next three

The

current available for all purposes.

imagination of ten

which

•////

be installed with ample AC

can

tion of the modern office

a total of 11,059,000 square feet, much of which
occupied in 1960 and all within the next two
In addition, the figures do not include 6,615,0(H)

LOUIS

buildings are so
Charles F. Noyes
erected that the equipment manufac¬
tured by International Business
Machines, and other

the

effi¬

new

companies of this type,

will

buildings

dozen

providing

2 to 3 million feet of additional space

accomplish¬

authority for the fact

that today we have under construction 16 office buildings

tion for the next two years.

of mechanized
opera¬

speeded

MacDonald, Director of Research of the

na¬

economy

new

Dr. Gordon D.

Real Estate Board of New York, is

feet of space' that is now a

through science and elec¬

has

These

ago.

greater

and

their

Greater

houses, theatres, places of amusement, department
or loft and factory buildings.

are
in the planning stage representing
15
Of these, Grand Central City of 2,400,000 feet
is the major unft.,; Thus .we see that the^.e are 17,500,000

predominate.

headquarters.

assessed for taxable purposes

buildings.

nation's

tional

of all the properties

Manhattan Island and does not include homes, apart¬

feet

buildings attract many of
important corporations

new

Company and not a few by financial institu¬
large corporations such as Union Carbide,

Lever

years.

elevators, air conditioning,
lighting, modern lava¬

These

and

few private investors

because of increased

40,000

Also

group.

and

stores

Company, Inc.

Kaufman

Weiler-William

Jack

erected

25%

Noyes

the

the Joseph Durst family. A few buildings have
for investment by the Metropolitan Life

been

and

Glickman

ment

My 51st consecutive Annual
Report, along with the new
year s forecast, is
definitely the most interesting of any
because it features the
erection of the new office build-

hattan

equipment

world

it.

CHARLES
Charles

our

this

Louis

000

aspirations for

Brothers

tions

of us—management and labor alike—

would do well to
reflect

growing requirements of national security together with
unless worker

of the years ahead.

penalty for failure

•

1S a

the

company

tance

pro-

improved
Large floors from

/ .v:^

investment side

is the

some

20,000' to

One of the most important aspects of life insurance

components

tories and rest
rooms, and
window spacing.

continue to be

insured public.

xnought to

torless

young

possess

the

fluorescent

Clarence

families do not

many

course,

among

Nineteen-sixty holds promise of being a good year for
+iS ln America. Nevertheless, it is high time we gave

utility and usefulness

many years.
Even so most families continue to be
under-insured. Nineteen months' income is not

age./Our long-range goal must

hatred

in§s. Primarily popular with tenants

companies for

families with

promoting

C°n0m*C team—*n intentionally limiting

ductivUy

ing a

tial backlog for

(341)

Estimates prepared by the Institute of Life Insurance
indicate that insurance in force rose again in 1959, reach¬

by many

and Financial
Chronicle

Life Insurance
Company

York

New

and

666 FIFTH AVENUE

3460 WILSHIRE BLVD.

NEW YORK 19, N. Y.

LOS ANGELES 5. Calif.

page

The Commercial and Financial Chronicle

(342)

Continued from page

Chairman

ment

would

of strong—but not booming—prosperity. Unemploy¬
is expected to fall to the three million level while
disposable income (personal income after taxes) is ex¬
pected to reach a new record high of $364 billion.

Associates Investment Co.

Board,

the

year

bARE

ROBERT

nation's *°ngest stee*
strike, our country's economy, as measured by the gross
national product, reached unprecedented heights dur¬
ing 1959. On the premise that the steel strike will be

For

Despite the adverse effects of the

within

settled

Taft-Hartley

the

in¬

junction period, there is every indi¬
cation that we can look forward to
further marked expansion in gen¬

activity throughout the

eral business
new

year.

•'

reasonable

rise

industrial production in

to expect

sharp

1960

following the large scale liquidation
of inventories which took place asresult of the steel situation.

This,

in turn,

should create a high level of
employment and a favorable up¬

trend

sult,

consumer

services
RobertL. Oare

As a re¬
expenditures for

personal Jncome.

able

dur-

record
throughout the coming
expected

are

gains

sharp

and

non-durable

and

goods

Further increases in government, as well as busi¬
ness expenditures, for plant and equipment should also
contribute to the prospective business improvement.
The automobile business and the automobile financing
year.

business, which Associates is primarily engaged in, has

of a short supply
of new automobiles in the face of growing public de¬
mand.
However, taking into consideration the period
since the introduction of 1960 models, sales have held
up
exceptionally well. The public's early interest in
felt the pinch in the past

the

or so

models, particularly the smaller compact cars,

new

with

coupled
would

month

substantial

climate,

economic

favorable

expected

indicate

market

automobile

year.

this

Based

the

availability of an amply supply of steel,
some forecasters see the coming year as the largest sales
year in the history of the automobile industry with sales
exceeding the 7.2 mililon record established in 1955. Our
outlook is not quite so expansive. We anticipate sales in
on

the neighborhood of 6.5 to 6.8

million, including foreign
optimistic projection de¬
parts from reality to some extent. The big automobile
year in 1955 was helped in a large measure by the re¬
laxation in installment financing terms—both the length¬
ening of maturities and the lowering of down payment
imports.

It would

requirements.

would

perience during

seem a more

the

that the industry's ex¬
recession clearly indicates

appear

1957-58

that there should be

further

stretching of terms. An¬
other significant factor which must be given considera¬
tion is the tight money market now prevailing.
There
is a good possibility that lending institutions may be¬
come

restrictive

the

the life

potential

both

the

total

passenger

cars

have

seem

billion.

$496

from

112

1960

should account
million

4.8

for

1.7

during the coming

2.3

million.

year.

account for

Such

car

are

Ordinary

should

Equitable
Two

factors

the

past

reserves

new

family house¬

than

At
in

automobile.

one

Associates,

1960.
of

source

consumer

goods,

fident of

our

credit

good automobile year
financing is our principal

automobile

business,

continues to develop
financing services for other types of
well as business needs. We are con¬
our

and make available
as

company

ability to provide worthwhile

sound basis to

tax free

On the

President,

and

needed

nation's expanding econ¬

our

The

OATES, JR.

Equitable

Life

one

com¬

will

average. The whole country suffered
but the Detroit and

Michigan

standing

Retail

felt

United

the

about

area

States

•

Frank Pace, Jr.

feel that automobile

15% in 1960 over 1959. We

the

major

cars

1959

16%

ahead

retail

sales

ahead

are

last

the

production

will

revising these figures

are

was

less

than

the

up
up

pro¬

demand

for

due to the shortage of steel. The output of electrical
power in Detroit is running ahead of 1958 by about 25%.

Currently, the output is approximately the same as last
v;- '
■
.v=''
We
are,
indeed, a fortunate country. We do have

year.

■

major problems. I would

some

list

them

follows

the

defense

the

commercial

continued

$485 billion

sonally
tained

adjusted
in

the

annual

second

rate

quarter

sea¬

at¬

the

continuation of the up¬
"recession" low of

from

With

the

first

and

generally

business

heartily

reality

economy
in

the

year-end

national

should

outlook

find

become
our

product at the level

proximately

$520

billion.

for many

say

to presume that he has
of them would be a very

man

one

the

and

Common

reread

Webster

least.

There

to go
and

are

many

Sense. I think it
might be
to the libary, get this pam¬

absorb

it.

What

us:

"Common Sense

implies

making practical or prudent and
sions; gumption, a colloquial term, a

common

capacity

reasonable

deci¬

capacity for esti¬

mating the better possibility, such as success or
failure;
judgment, an ability to comprehend the
significance of
facts or conditions;
wisdom, a common sense and judg¬

and

gross

tells

for

optimistic.

early part of 1960
should

serious

are

sense?

long imagined one-half trillion

dollar

assertion,

one

any

These

June, 1809.

phlet

of the steel
the first week of the

the

any

even

LABOR.

BE¬

was

well

settlement

controversy in
year

quarter

for

pamphlet entitled

the

billion

cure

AND

CONFLICT

regarded highly during his mature years, and
contributed greatly to this new
nation, the United States
of America. He was a friend and an
admirer of Ben¬
jamin Franklin. His name—Thomas Paine. He wrote a

This is a rise from the strike
induced setback to the $479
billion
annual rate of the third
quarter and

swing

CAPITAL

ETERNAL

contrary forces at work, and so many people involved
in any settlement.
In thinking about these
things the other day, I thought
of a man who lived during
Revolutionary War days. He
was a
literary man and wrote profusely. He was born
in England in 1737, and died in New York in
He

year.

represents

sure

daring

the resumption of steel
operations at the end of
last year, business
expansion was, once
again, the order
of the day. Gross national
product in the fourth quarter
of 1959 is expected to
approximate the

aircraft

transition

new

era

Oates, Jr.

ap¬

Nineteen-sixty

us,

without

and thus

diversification

average." It appears to me that com¬
exercising that brain power which God

throwing in too many educated
cluttering up the reasoning process.

side

will be marked by
and turbo prop com¬
year should see the start

all jet

without

areas

losing sight of its responsibilities to, and
with, the armed services.

its potential

MOREHEAD
Chairman
American

AMF

the

60th

the

fortunate

our

PATTERSON

Machine

Board,

Foundry

position

Company

the next
with the highest
revenue and profit level in the
history of the company.
This position is not based on mere
optimistic specula¬
tion but on certain facts and
figures
decade

and

known

form
in

anniversary

this

time

strong foundation

I960.

■

that

for

starting

year

will

AMF

■

First, there is the continued
sion of

expan¬

bowling activities, includ¬
ing the leasing of AMF Automatic
Pinspotters and sale of bowling prod¬
our

ucts such

as lanes, ball
returns, bowl¬
ing balls, shoes, pins, in fact, every¬
thing the proprietor needs to equip
a
bowling center completely.

AMF

started

other

14,000

eration
1960
All

the

than 40,000

year we

machines.

with
lease.

shipped
This

an¬

means

machines in op¬
bringing in revenue in

and

will

than

things

Pinspotter portion of
machines installed
In addition to

down in

areas

this

Morehead Patterson

higher
will

than

1959.
of

and net profits from
business in 1960 based on

revenues
our

lease last year.

some
a

assure

the
the
i

this, while the bowling boom

where

mated tenpin

one-third

being equal,

substantial increase in

many

numbe? of

other

slowed

1959

year

Pinspotters

have
parts of the U. S., there are still

market

bowling.

These

can

are

may

developed for auto¬

in the West, where the

economy continues to expand, and in New England and
Southeast, where other types of bowling have so far
prevailed.
>
Another large bowling market area that
AMF is devel¬
oping rapidly is in overseas countries. In many of these,
the

such

the United Kingdom

(where this month

be the first
company to start automated
and West

shall

tenpin bowling)

Germany, the civilians became attracted tc
automated tenpin
bowling by seeing' or trying it on
American military bases. In other
countries, like Swe¬
den, Belgium, and Australia where
they have never seen
this form of
bowling, we literally have to create the
desire for it.

The

improvement

mon

issues,

and

but also
in related fields,
such as, improved ground
handling and transhipment of cargo.
•
In the coming year, in addition to the
activities in
the areas mentioned above, General Dynamics will con¬
tinue to broaden its operations in the non-government

the

leisure time recreation.

gave

should

business

Also, the

developed countries

sense means

purchases

air

ment far above the

James F.

decline

ve¬

rise

than

cargo transportation, accompanied
by technological innovations not only in aircraft design

that the

the

space

items will

and will

industry. The success of individual
will continue to depend largely on

contractors

During the past

and

missiles,

for
year

accomplishments of their research organizations that
have been established or strengthened during the nine-

order of their importance;
First, the COLD WAR;
INFLATION, which is tied in with the national debt; the

PROBLEM

total

the

They

bit, due to the fact that the last quarter's
of

level

of this

come

electronic

and

competence

....

within

effects of the steel

15%

are

forepart of
December. Automobile production is
rapidly
approaching
capacity
and
barring a continuation of the steel

H. P. Parshall

duction

the

year.

last

13%

Currently,
that

year,

this

ahead

felt

running

little

running

until

the

As it is now, my under¬
that the Ninth Federal

sales

10%

strike.

probably

than

1958,

Reserve
District,
the
Minneapolis
District, is lagging behind the nation,
due
to
the
agricultural
situation.
Detroit and Michigan show substan¬
tial improvement over 1958.

were

1959

change
as
new
into being
technological breakthroughs are

offset

The

recession in

area

generally.

unre¬

military aircraft. The intense com¬
petition between major weapons systerns will call for a high degree of

mercial-transports.

than

the

steel

systems

Spending

of the

predicated

about the

continue

hicles

PARSHALL

area, for the latter part of 1957 and all of
operating considerably below the national

composition

during the

1958,

be expected

can

settlement

made.

The Detroit

impact

teen-fifties.

President, Bank of the
Commonwealth, Detroit, Mich.

The

weapons

and

pated tax benefits by reducing rates for
group annuities
our
case
by some 15%.
We look forward to the

was

now

total.

plans administered by banks conduct¬
In fact, The
Equitable, along with
companies, has already passed on the antici¬

HOWARD

must

remain at

new tax

important continuance of insured pension
plans where
annuity payments in dollars certain are guaranteed
by
financially strong, experienced, regulated life insurance
enterprises.

;

solved, or potential, problem in the
transportation industries.
'/
Defense outlays can
be expected

continued

trusteed

problems, and for

With

the

hand, the

the

expeditious settlement

interest

—in

Assurance

Society of the United States

The

expected

Corp.

find that the major economic

With

optimism

our

become

life

strike,

As far

year.

Dynamics

rising, and I think that they

trust business.

TWEEN

JAMES

new

are

continue this trend.

dispute,

to the in¬

regard

upswing

their

and

indices
to

more.

gradually tax exempt over a threeOne net effect of these changes will be to
help make the group annuity benefits offered by life
companies more competitive with those offered under
ing

good

PACE, JR.

General

look toward 1960

RACE

omy.

5431

sharp

industry

sales of The

while

cars,

anticipate

While

the

FRANK
President,

period.

other

will be

will probably be off somewhat—agriculture somewhat
depressed; but overall a good year showing considerable
increase, say approximately, 10% to 12% over 1959.

legislation raises
substantially the tax liabilities of life companies, but on
the other, it permits the investment income of
pension
year

196*0

concerned, interest rates will remain on
the high side, demand for loans will be heavy and the
competition for deposits keen. The building industry
are

(stock and mutual) engaged in the life insurance

business.

sales of

step-up in two-car ownership. As our
standard of living continues to
improve, more families
will have the financial
ability to purchase and maintain

year

been

1959

over

for

pertinent in

are

One

1960 will be the formation of

units, and

sales

legislation affecting

panies

expansion in growth
growth of
year period.
Contributing factors to this phase of new care expan¬
in

the writer that

firmness in the year ahead. The other is the recent
sig¬
nificant change in Federal tax

sales is well in line with the average annual
2 mililon units
during the past five

sion

insurance

♦

expected to increase still

outlook.
in

rates

life

at least 8%

up
are

other

dustry

race

process

criteria of the potential for future growth, vast

any

lent.

same

bankers

com¬

opportunities still await the industry.
With personal
income rising and general prosperity prevailing in 1960,
the outlook for advancing life insurance sales is excel¬

about

hold

life

the

and

Large as these sums are, however, they represent on
the average only 19 months' income for American fam¬
ilies. Obviously, if family needs for increased protection

opinion,

our

new

million

115

panies held in trust for these policyholders close: to
$114 billion of assets, up $6 billion from the 1958 figure.

replacement sales of about 4.5

the growth market should
from

this

\Tpe number of policyholders covered

million to

scrapped.- This ratio when applied to the average num¬
ber of automobiles expected to be on the
highways in
to

the

rose

the

operation

problems ....... and I am hopeful that
applied to the cold war on both sides
would materially lessen world difficulties.
All of these major issues have a bearing on our econ¬
omy and on our prosperity for
1960; however it does

replace¬
ment and growth markets would
appear to support the
6.5 to 6.2 million projection for next
year.
During the
past five year period, an annual average of about 7.5%
of

tion

industry, in terms of life insurance in force, passed
in 1959. Latest industry esti^
mates for that year place life insurance in force in the
United States underwritten by legal reserve life com¬
panies at $534 billio%-orusome 8% above the 1958 figure

year

for sales afforded

some

taxes, reduce our national debt, promote amicable rela¬
tions between capital and labor, contribute to the solu¬

the one-half trillion mark

basis.

sound

The

avoid

could

Our

develops; however,
ample credit should be available for all qualified u:ers
as

people, our President and our Congress
good old plain common sense to the
sure that we
inflation, balance the budget, revise our

apply

major issues above referred to, I am

four

insurance industry, 1960 should be a year
advancement and new statistical records.-

continued

we,

rThursday,-January- 21, 1960

has

economy

given

people

many

money

the
for

We feel confident that in these
countries automated tenpin
bowling will become popular
as it is in the U. S.

Another

part of

AMF's

business

that

looks

good

for

Number, 5918

Volume 191

The

Commercial

and Financial
Chronicle

Government Products. Total shipments in 1959
million. We are starting this year with
Lice this amount—approximately $80 million—in unllcd orders for Government work. We are thus assured
at in this part of our business, revenues and profits
chnuld be substantially higher in 1960.
As for the rest of AMF's business, we believe that it
will depend on the state of business generally.
Since
Tost economists are confident about general business in
1060 it seems safe to predict that AMF will set new alltime records in gross revenue and net profit this year.
is

iqfiO

duction contracts

about $40

wore

FREDERIC

Pei

Bank,

In
act

looking towards

three

our

second half of the twentieth century begins with an
for capital emanating from virtually
ali corners of the world. For the nations of the Western
World, it will be important that they be in a position
to largely satisfy
this demand. In
the United States, the needs of gov¬
ernment, of business, and of con¬
sumers have already pushed interest
rates, in some cases, to the highest
on record.
Forecasts for 1960 sug¬

the

year

Research

such

record. Private housing starts
likely to decline somewhat from recent levels with'

the total for 1960 at about

1,100,000 units. The downward
months partly reflects the strong?
competitive pull of other borrowers for funds that might
trend of the past few

power5

under way as well as to simulate

experiment.

For

Demands

credit

for

observation

post

In the aircraft

and

capital

will

continue

introduced

during

our

tions

the im-

•

whether they be private bankers
bankers, are likely to be under considerable'

and will need
public opinion to sustain

pressure,

the

support

their

informed

■

and statesman-;
ship. Lasting economic growth, reasonable price
stability,•.
and labor
employment of a magnitude which recognizes
the
necessity for some periodic under-employment of
all segments of

patible in

our

courage

productive apparatus

market

The

economy.

free

are

not incom-'

nations of the

world need the
support of a strong United States dollar
to provide
capital for our friends and potential friends

everywhere.

Corporation

Despite the impact of
budget-balancing felt throughout
defense industry
during 1959, the year was one of

the

progress and relative
stability for us.
view of

business

hand, the
into

the

From the point of

company successfully went
second phase of the F-105

fighter-bomber program, moving the
more
advanced "D," or all-weather
version, into the production line. The
"

first
"D"
model was factory-com¬
pleted three weeks ahead of schedule.
The build-up of production on

all-weather
effect

1960's

and

model

1959's

will

have

are

entering

programs

new avenues

will

may

Our

near

Our

over

ising.
Mundy I.

day1

-t

end

in orders, a

1961 's

whole

has

rates

based

realistic

outmoded concepts of charging

filed

with

application

the

that

commission, must
the

volume

customer, precisely in the
the concept is employed by electric utility
companies. The cost of standby capacity is thus charged
to

those who benefit from it—the part-time customers—

rather

than to the customer whose traffic produces a
steady flow of business day in and day out.
In other words, we believe that in the coming year

horse

will

sense

begin to

prevail

the railroads

research and development
for sophisticated anti-ICBM

activity in this
FRANK

PRIOR

Chairman of the Board,

Standard
Before

taking

Oil

Company (Indiana)

look at prospects for the first half of

1960, let's see how the oil industry looked in
Demand for

5.6%

higher

Product

than

demand

crude

oil in

1959

1959.

totaled

about

1958.
about

was

4.9%

1958.

over

industry

domestic

Product

stocks

excessively

were

many ' tough
regulatory,
legislative and laborproblems, and
while
a
high level of carloadings

high,

won't make these problems go away,
it at least
will 'give our industry

refinery

runs

have been cut back somewhat.

Also,

Insofar

solution
as

concerned,
is for

the

are

New

are

cpntinued.
York

about

1960.

Our

increase in total carloadings,

centralized traffic

prices

result

were

recently

prorated oil production in Texas, the
largest producing state, was held to
a
low level of nine days a month

Alfred E. Perlman

months

the

for

out¬

July

through

November and ten

particu¬

Earnings

larly in such commodities as ore, coal, steel and auto¬
mobiles., Moreover, during the next year we should be
in a position to g'ain significantly from our comprehen¬
sive physical rebuilding during the past five years, our
continued
heavy program of maintenance, sustained
even during the depths of the steel strike, and our con¬
tinued tight control over expenses.
•
For 1960, we have budgeted improvements totaling
approximately $100 million, including 2,200 new freight
cars, completion of one new electronic classification yard
and starting of two more, and extension of our trackage
under

However,

Central

optimistic

and

weak.

time to catch its breath while efforts

dard Oil

for

days in December.
my company,
Stan¬

(Indiana), for the first nine

increased
23%
over
the
period of 1958. Earnings of the
oil industry did not quite

months,
same

Frank O. Prior

domestic

Little

last
I

level

this

reach

improvement

quarter

predicted

improvement.

over

1958

can

expected for the

1959.

company's earnings in 1959 to be about

the level of 1957. This would have been true except that

long refinery

strikes over management's responsibility
Continued

control.

TEN Years of GROWTH in
The BLACK HILLS of SOUTH DAKOTA
Fiscal
1959

1954

$ 6,794

$ 4,229

$ 2,509

358,3.32

205,648

106,160

29,896

26,820

19,863

37.5

25.4

19.2

year

Electric

revenues

(thousands)

Kwh sales (thousands)
Number customers
Common stock

Earnings
An

equity (%)-

per

share (common)—

Annual Report will be mailed on request.

1949

2.53

2.08

1.92

,.D

BLACK HILLS POWER AND LIGHT COMPANY

contracts were retechniques, decoy

nuclear detonation simulations;

prej¬

at the hands of State and Federal Govern¬

Missiles

work

over

ments, without prejudicing the vigor and health of the
trucking, air and water transportation industries.

re¬

the

Corps for an advanced combat surveillance drone,
expanded in men and facilities. An additional $2,000,000:

and

can

way as

million contract from the Army Sig-

extended in
obtain a

customer

Rapid City,

Pro!

lower rate than the sporadic
same

indica¬

the company has a backlog of
weekly payroll of $1,992,000 and

Missile Systems Division, currently at

nMjannore than
c>i

Animation

token,

same

levels.

working

the

integrated transportation systems. Such

upward

prospects. We an¬
will be up slightly

per

udices of years gone by, resulting in fairer treatment of

1958, and

1959, with 1961 the most prom¬
• •
•
■ ?
''' '.'V

health

years

01 business of better than $500,000

Work

"Uii

economic

some

service with the U. S. Air Force in Europe and in
acific region.

uaved

the

business;

Reduction

.Republic's

the

of the supersonic F-105 fighter-bomber
i o 'l
on Dec. 11 set a new unofficial world's record of
+r16 *2*Ph. for a 100 kil. close course) is set at least
nrough 1962. This Maeh 2 jet is currently in service with
f
e Tactical Air Command here and units are scheduled
(

tolerated

Per share earnings for 1959 will be
somewhat over $2.00.
At the year's

Pea]e

$oOO,000,000

have

still f.has

toward

costs,
what the
bear, must be initiated by the railroads and
approved by the regulatory commissions, without re¬
gard to the effect of such rate on a less efficient mode
of transportation. Rail rates can no longer be held high
in order to protect the traffic of the truck companies.
Similarly, contract rates, which a number of railroads

reflected in increased volume of rail¬

traffic.

has given it.
will become in-

program

public

traffic will

key industries, steel and
automobile, are in especially promis¬
ing production positions,- with large
backlogs of demand built up.
This
anticipated high level of
heavy industry production should be

freight

the

required by the shipper.

the

two

road

1960

new

rather than

with the most favorable

levels of

record

permit

of scientific

it should
exceed modestly 1958's $218,547,879—
but its principal impact will be on

ticipate both

benefits of

service

already

System

St.

will be;

any form of transport to utilize
technology so as to produce trans¬
portation at the lowest cost consistent with the level of

plasma

and commercial

continue

longer

economic

Business

service speedups

improvement

our

that

the

PERLMAN

1960

years.

that industrial
year

what

look

PEALE

Aviation

tools

believe

barriers to truly

moon.

the depressed

election

President, Republic

economy

MUNDY I.

gov¬

colleges and

center,

Central

between

eliminated for the sake of the shipping and consume
ing public, which is paying the penalty. There will be
increasing pressure for the removal of present artificial

many years into the future.
Beyond it, we have
comprehensive developments taking shape in the verticle
take-off (VTOL) and short take-off
(STOL) aircraft for
the Air Force, the
Army, the Navy and the Marines.

covered from

More such

train

craft

prospects in several

banking system,

central

East.

introducing

we are

and faster freight

is to be maintained. The wasteful overlap of
competing modes of transportation, resulting from the;
penalizing of the railroads through excessive taxation
and .obsolete regulatory controls, while at the same time;
subsidizing air, highway and water competitors, YnustT

have a number of designs and
improvements in the basic F-105 aircraft which could
easily extend the capability—and longevity—of this air¬

Our

portant Presidential election year of 1960. The leaders of
or

the

month, for instance,

new

country

of the wage-price spiral adding to the need for a con¬
tinuation of tight money. Advocates of
easy money and
low interest rates are not
easily silenced. Plans for pub¬
lic works measures and 'increased federal
housing ex-'

likely

of rebuilding already accomplished is
pay off in freight service improve¬

systems would

activities

President, New York

seem likely to go higher with con¬
sequent lower bond prices. Bank lending rates, as well
as the rediscount rate, might also
be subject to further,
increase. Recent wage settlements
suggest a resumption

are

areas

propul¬
for space
vehicles, currently underway via two con¬
tracts, will be expanded as will development work on
high temperature hydraulic systems,
trajectory analysis
and studies
relating to the establishment of a manned

atmosphere.

strong. Interest rates

penditures

example,

ALFRED
boom

electronic

sion

have gone into mortgages.

1960 in

dozen

new

number

re-

as 1960 moves along, and as our
young man¬
agement team begins to take full advantage of the new.'

space

accelerate

debt

announced

covering
environment, re-entry simulation and
radiation, will provide facilities and "brain¬

areas as

nuclear

completely

Louis and the

we have about $12,facilities and personnel

agencies and more than
universities similarly engaged.:
The seven laboratories in
this

developments undoubtedly
will be a substantial accumulation
of inventories which has been esti¬
mated
at
approximately $6 to $7
billion.
Surveys for business plant
Frederic A. Potts
and equipment expenditures are en¬
couraging and an increase of 10%
in these outlays would seem to place them at a level
which is not inordinately high and is perhaps sustain-.
able. The anticipated strength of consumer income will'
create a good demand for automobiles with sales that

entering

net

our

ments. Just this

approximately $6,000,000
Development Center' which will

ernment

reduction

debt

creasingly convinced that the economic waste resulting
from an antiquated national transportation policy can

invested

and

extensive

years.

beginning

now

budgeted for adidtional
expansion during 1960. /This
laboratory,:one of the most
advanced in private
industry, reflects not only the best
thinking of our people but that of more than 100 experts
in
51 firms involved in
advanced research and

standing

are

important

5^ c,enter of th*s activity and

nnn

requirements to finance an
estimated Gross National Product of
something over $500 billion annu¬
ally by mid-year. One of the out¬

one

development will be carried

UUU,000

continuation of these large-

Clearly

beyond,

our

raising to $94 million

duction in two

simultaneously, in aeronautics, in astro¬

financing,

new

$6,000,000 for Research
Last

scale

seem

and

research and

areas

continue

The five years
1960

must be

that

expect to

despite this heavy spending on physical improvements.
In 1959, the Central cut debt by $44 million net after

nautics and in ballistics.

insistent demand

highest

nose

astronautics.

The

could reach the

missile

borne in mind; the arrival of manned
space
venicies will come, not
by revolution but by steady tech¬
nological evolution.
Aircraft, as we know them today
ana as we can
visualize them for tomorrow, will continue
to have a critical
role to play. It is for that fundamental

gest a

for ICBM

guidance systems.
most comprehensive
program we've been

haps the

engaged in is the broad scale
expansion of research and
development aimed at
accelerating the company transi¬
tion

POTTS

The Philadelphia National
Philadelphia, Pa.

received

were

cones and missile

reason

President,

(343)

South Dakota

page

industrial production gains
ployment at about 3%.

from page 91

Continued

manage efficiently in three of our refineries, starting
July and still continuing at two of the three locations,
will reduce our company's earnings for 1959.
to

century-old oil industry is still a growing industry.
sales of oil industry refined products alone

estimated

billion level for 1959, a

the S25

pass

high. The year's research expendtures—a key to
growth—increased to about $300 million, a new

new

quantity rates,

record.
*

this

From

1959

for

basis

first half of 1960.

look ahead into

can

the

and

tunes

are

most

closely

well
in excess of demand. The domestic refining capacity has
been somewhat over-expanded, even in the face of in¬

the

St.

the

than

tied

whose

women's

world-wide

first

crease

crude oil

produce

months of

six

domestic

1960

for

demand

anticipate

products of
1959's first half. This also assumes steel

about 3.1% over

petroleum

about

assuming no marked change in gov¬
imports.
reasonable to expect, the industry has

4.2%,
is

learned

lesson

1958,

this year, then there should be a better
supply and demand. A good 1959-60 winter
heating season would be most helpful.
In
this
economic
climate
prices
should firm
and
petitive

half of 1959, and

given

intensely

profits for the first
those for the first

effected,
depleted

few favorable factors somewhat

the

estimated

1959

Importantly,

1960

domestic

outlay

vve

same

time

continue

just topped

better

inventories
a

malte-up

many
year.

for

1960

total

for

domestic

really

1959

the

attracting and encouraging American private capital in¬

improved

product

year

will

labor

resumed

costs

and

will

our

Executive

devising

and

output

Puerto
Puerto

future,

large

expected, and

increases

must-

excess

rose

investment

QUINN

21%

President, Chicago, Milwaukee, St. Paul & Pacific
Railroad

1959

concluded

For

Rico's

and

its

first

history,

first

decade

industry, tour¬
the

economy,

up a

Railroad

fortunes

national

the

latter

half

normally

—-

which

expect

rose' to

goods

record

gains in traffic and
the first

the

Obviously,
complete

William J,

industry's
earnings during

estimate

ahead

year

would

tiveness

work

rules

railroad

Now

that

the

settled,

and

000,000,
since

Juan

Gonzalez-Ramos

impose

steel

wage

the

upsurge in all

1960.

number

of favorable

specific,

these factors which

factors

would

consider

industry:
FIRST—The
called

economy as

e,enr£

Bureau

attention

■

business

opening

the

whole

stretched it out;
the

National

the steel

upturn.
of

Rather,

rebuild
I960 will

ovmerteWw^r and
Specifically,

emp
employment.

will

been

this
in

ahead.

there

await

Based

oil

solid;

current;

problems

well

as unprece¬

investments to Puerto Rico,;,

the problems at hand and
opportunities reality. It is our hope that the
aspects of our development program may ~ find

the

areas

the world

also

to improve their lot..

are,

HENRY H.

need, as

RAND

President, International Shoe Company

;

the

outlook

detail

for

some

Affairs,
fact

it
steel

that

Inc.,
for

not Check

has
the
the

has I probably
inventories in
industrial pro-

in substantial gains in
agency

estimates

1960

not expected

was

Puerto Rico's

record

15%
1

re¬

value of

were

new

$200,000,000,

under
a

construc¬
record

near

until

1.975.

industrial front, some 600
Bootstrap
as the first decade of
industrial
a close.

year

$275,000,000

over

shipped
in

the

Continental

manufactured

its 1958 volume and

163%

U. S. manufacturers launched
Rico for the first

goods.

Rico's

This

was

than in 1952.

thgse products in Puerto
time—ethylene glycol, carpet sweepers,
silicone
compounds, stereo
cartridges, plastic shoes!
bakers yeast, safety and
parking brakes, auto leaf springs
and steam

boilers.

By year-end the Puerto Rico Economic
Development
Administration was
consulting with U. S. companies con¬
sidering these products for 1960 in the Caribbean Com¬

monwealth:

Vinyl plastics, synthetic fibers,
motors, small
boats, aircraft and aircraft parts,
soaps, detergents, nylon
and rubber tires.
Puerto Rico

major attraction for U. S. manufacturers
rising productivity, lower production
oosts, and relatively high profits. The island's
Bootstrap
continued

1960.

The

results

in operation
came

Shoe manufacturers should
produce in excess of 600,000,000 pairs again in 1960 but
production probably will not
reach 1959's estimated record of
640,000,000 pairs. "
Shoe retailers can
expect another record sales
year

reaching

year, Puerto Rico spent $86,29% of its budget on education.
Literacy rate
from 75.3% to 86.6%,

industry last

because

perspective

carry

that

6%,

Illustrating sustained industrial growth, Puerto

negotiation
be

development

goods and services

strike did

Efforts to

months

have

important in the railroad

significant

rose

-—

volume

effec¬

types of production.

Viewing the railroad industry in

veals

overall

industry

removed—and removed
must be—the pent-up demand for

will carry an

the

negotiations

remain,

decade

should be the trend to integration- of
existing manufacturing operations which need satellite
plants.
The $30,000,000 Union Carbide ethylene glycol
plant which opened in 1959, for example, should form
the nucleus of a substantial
petrochemical complex.
Tourism should play an increasingly important role in
Puerto Rico's economy. Again based on current
trends,

America

1954 has risen

plants

railroad

the

Transportation
Over
1,000,000 passengers moved
through San Juan's International Airport in 1959
This

immediate economic-

management.

when

roadblock

now

problems

industrialization

basic

Education—During the

point of view, but also because of the limitations which
outmoded

output

Construction—Projects completed

taking these factors into account, as
as
the issues involved in the railroad
industry's
negotiations now pending. The problem, however,
an

serious

application in other

$228,000,000.

tion approached

without

wage
is an urgent
one, not alone from

working force remains idle while hundreds off
can only find part-time work.

While

make

island

record value of

Quinn

have been lost.
the

however, will whittle down

135 U. S. manufacturers

Agriculture—Farm

the

half of the year will

the Western way of life. -Whether India, for

flow of U. S. private capital

■

has

lands will have

new

—

profitable—was very seriously
affected by the steel strike.
By the
all

in these

dented opportunities in the decade ahead. A combination
of economic and political
stability and continued heavy

of; 1959

Bootstrap'.' program would;
?'3V':''/v

■

Eisenhower

000 annually.
In sum, Puerto Rico faces

Tourism
An
estimated 250,000 tourists visited the
Commonwealth in 1959.
They pumped a record $50,000,000 into the
economy, a 50% increase over the previous
year.
'
-•"

rail¬

"Opera¬

Bootstrap plants. These
included Standard
Brands, Trouser Corp.
Proctor Electric, and the Borden
Co.

net

roads

the

Puerto Rico's socio-economic
pic¬
last year:

for

the

During the first
carloadings were up
earnings, too, were up
substantially.
Unfortunately, how¬
13%;

ture

1959

under

program, the island's

high of $670,000,000.
Briefly, these were the highlights

pattern.

half

followed

■

we believe that
by 1970, a million tourists will be visit¬
ing Puerto Rico every year. Their contribution to the
economy should be considerable, approximately $200,000,-

Industry—Puerto Rico's Economic
Development Administration signed

Bootstrap"

purchases

cri|cial underdeveloped and. developing.

trends, the Economic Development Administration antici¬
pates that by 1970, some 1,600 Bootstrap plants will be
in operation. An important factor in the acceleration of f

eco¬

capita

the first half of 1959.

industrialization

Puerto Rican

proven

"Operation

President

opportunities

high rate of

tion

the

success.

wealth's

income passed the $500 mark.
Also as a result of a

the

long,

has much ground to cover to increase employment. De¬
spite ten years of industrialization, 13% of the Common-;

time

per

-was

Puerto Rico in the past decade has made steady prog-?
ress in its program of economic
development-; Yei it still;

the

new

$300,000,000,
the

they "found

thousands of Puerto Ricans

railroad industry outlook for 1960,
it is necessary to review developments during the past
12 months.
One year ago virtually all industries in the
United States were looking forward to 1959 with opti¬
mism. There were strong indications
that business gains of a substantial
nature would continue for most, if
not
all,
of
1959.
That ^expected
growth and expansion in industrial
activity was realized in full during
considering

$1,400,000

reached

GNP.

Puerto

Co.

warned; what hap-v.
important bearing!
example,;
can
develop along democratic, free enterprise lines,-is
all important to us.
'
:
:
I k:.3*;
•
V

pens

RAMOS

records in

new

then

real

For

year,

50%

await

the unions.

Against a background of a
prospering
Commonwealth's gross national prod¬

the oil industry outlook

3;'
WILLIAM

well

experience to the
be

Director, Continental Operations
Branch,
Economic Development
Administration
in

ingredient

industry there would project the

world,

continue

this

necessarily

GONZALEZ

development with
ism, and agriculture.

the demand

uct

end

Rico

basic

wage negotiations with

nomic

The

a
sort of overseas "launching pad? forsAmerican corpo¬
rations. Now, if U. S. companies who either have invested
in Puerto Ricoj or who are conversant with the success

With

goad.

prospects

already

forecasts

JUAN

compared
a much

much better return

bright.

ever,

vestments.

range economic and political stability*'/'f
i In a sense Puerto Rico over the
recent:years has become

quarters,- we can expect
Thus, with larger move¬

coming year.
railroads'
earnings

revenues,

outcome

for energy are

their

gross

management needs to do

one,

planning

longer

the

with

expendi¬

investment.
the

half

the

industry.

outlook

plants

have

future.

near

1960

job

the

marketing programs keyed to

railroad

seven? food

coal, and other heavy goods expected,
anticipate that the advances occurring in the

can

this trend is continuing in 1959 and will

the

make

with the

public

established

investors

Caribbean's

for

must

throughout the

such

tures. It appears

the
be

first

billion.

S5.2

expenditures for manufacturing will
be for modernization rather than for capacity increases.
It is significant that foreign expenditures in 1958 for the

and

the

upon

ments of iron ore,

Capital expenditures for 1960 will be about the

first

mean

transportation,
far-reaching changes
policies which today

see

the Puerto

;on

Foods Inc.; a $3,000,000 meat packing facility
by Little Rock Meat Packing. Co., and a $2,000,000 rice
mill by Rice Growers of California.
(3) Puerto Rico's Significance to Underdeveloped. Coun¬
tries. Some 1,500 observers came to Puerto Rico in 1959
to see how the Commonwealth developed its economy by

recognition
railroads

the sales dollar*.
missile part.,

result, Puerto Rico should soon emerge
largest producer of grain products,
meats, poultry and fish products.These investments
included a $4,000,000 l'lour and feed mill by Nebraska
Consolidated Mills: a $3,000,1)00 fish processing plant by.
the

other forms of

will

regulations

heavily

the

Star Kist

right direction

increased
that

try.

Puerto Rico. As

summarize, I would say this:
Assuming that labor troubles in the railroad industry
are
resolved promptly, as
they must be, and with the
settlement of the steel
industry wage matters already

better.

those

that

the

With

lawmakers

(2) Expansion of Puerto Rico's Food Processing Indus¬

srengthening

cause

the

confident

weigh

com¬

demand

ratio

now,

good

the

as we see

should

1960

industry

automatically

not

price. Nevertheless,
half

oil

improvement

does

supply

the

but

that

step

equality of treatment with

strengthen,

was

industry.

part

tion of products
balance

which

railroad

result of the senseless overproduc¬

These

year.

73333'3-'3""33-

One California electronics company netted

profit of 31.6 cents

FIFTH—Public apathy towards the railroads is rapidly
giving place to deep public concern and understanding.
This is already manifest in the Transportation Act of

ernment control of oil

If,

has been in 1959, and this is certain
gain for the railroads in this territory.

s'7

Rican production of a vital

output near capacity. Demand for domestic crude should
rise

Seaway

•'

■

manu¬

NaUon-icide Interest in Puerto Rico As A Manu¬

markets.

can

Midwest, the opening of
offers bright prospects for

net

in¬

Lawrence

™3,

(1)

Estimates vary, but it is generally agreed
Seaway traffic promises to be much better in 1960

that

demand.

product

the

ability to

plants registered 21% and those

facturing Site. A growing number of West Coast and
Middle West companies opened island plants during the
year, particularly to reach East Coast and. Latin Ameri¬

for¬

and

blouse

were:

economy

interests

" "

•

facturing fabricated wire products 19%.
Three other trends emerged during the

the

showed that U. S. affiliates producing house¬

hold appliances netted 58 cents on the sales dollar, while

future.

creased

population—and thus our

our

FOURTH—For

gas.

The

A survey

—expanding rapidly, the factor of an expanding econ¬
omy,
alone, means a greater traffic volume for our
industry.

THIRD—With

net profit of 16% in relation to sales,
nearly four

times after taxes.

new

Aggravating the domestic oil
industry s economic
problems are problems created by government—prin¬
cipally excessive gasoline taxes (amounting to more
than $5 billion in
1959), and stifling regulations and
controls. Federal regulation has held natural gas prices
so low that it is affecting the level of exploration for oil

Thursday, January 21, 1960

about double the U. S. rate before taxes and

signal and communications systems,
new
maintenance
methods, and highly efficient new
types of freight cars which virtually become a part of
the manufacturer's assembly line. On every hand there
is evidence of new and better ways to do the job.

future

...

plants averaged

the rise in em¬

and

Domestic
are

SECOND—Revolutionary changes are taking place
the
railroad
industry which are producing such
developments as the highly successful concept of piggy¬
back and
refinements of the general principle, such
as the Milwaukee Road's own Flexi-Van
system. These
changes have produced new traffic research techniques,

The

Chronicle

The Commercial and Financial

(344)

for

reason

between

difference

the

retailer

and

manufacturer is that, broadly
stated,
the retailer reduced
inventories
in

1958,

built

should

inventories

1959

stable

and

inven¬

tory policy during 1960. A portion of the
inventory

fluc¬
among
shoe retailers was
brought about by a difference in the

tuation

economic

mediate

hide

climate.

reason

prices

But

the rapid

was

starting

little

im¬

rise in
over

While shoe prices reflected
advance, they followed well be¬

year ago.

this

hind the increase in the cost of hides.
Shoe retailers tend to
buy more free¬

The

Henry H. Rand

rising market.

current

Higher

prices

holding

price position of hides is rather unstable
have

resulted

volume

shoe

orders waiting for price stability,

facturers started to

use

retailers

jshoe manu¬

inventories and tanners have

bought fewer hides. Hide prices have
dropped and the
situation is currently the reverse of last
year, although
there has been some recent

firming of hide prices. These

recent

price gyrations of

to obscure

some

of the

basic

material

have

problems of the shoe industry.
The cost of labor is a
larger part of the cost of
of

shoes

than

the

case

tended

fundamental and long range

many

other

paii

commodities

Many materials, other than hides, are basic in this in-

Volume

191

Number 5918

...

The Commercial
and

Financial

(345)

Bowers,

n /n
.•

Chronicle

Monihan &

Little,

Inc.

Opens

NEW

ORLEANS, La. — Bowers,
Monihan & Little, Inc., has been
formed

with

offices

the

Pere

Marquette Building, to engage in
securities business.

Alexander

^Sv.r

Daniel

Jean M. Little, Vice-President and

J-S

2^5*

erly

business—bulging markets, rich reservoirs of
manpower,

excellent

;

transportation facilities.. .and

expansion of generating capacity in the

In every sense,

history

Light Company.

c°-

FLORIDA POWER
,

;

Miami, Florida

Helping Build Florida

PRODUCTS

through

Forest Utilization

Incorporates

Lambert,
with

Inc.

offices

W.,

has
216

been
Gold

to engage in

business.

Lumber, Veneer

Officers

are

formed

Plywood, Paperboard

Avenue,

a securities
Milford W.

Fine

Paper, Pulp
Paper Cups, Napkins

Lambert, President; Mary J. Lam-

bert,

Secretary

Elizabeth P.

Treasurer;

and

Dairy Containers

Zinn, Vice-President,

Mr. Lambert was formerly proprietor of M. W. Lambert Co.

fe?
& LIGHT

;

Lambert

Florida futures represent a

sensible investment!

ALBUQUERQUE, N. Mex.—M. W.

guaranteed by the greatest-

of Florida Power &
-

depend¬

Underwriters;

!§

friendly governments, lower costs,

able electric power

Tower

LINE

form-

was

Mr. Little'Was with A. M. Law &

Growing fast, Florida offers rich dividends in
superb climate—ideal for living, favorable for

with

A COMPLETE

Executive

Treasurer; and

Secretary. Mr. Monihan

are

President;

Monihan,

Vice-President and

g-v?

Officers

Bowers,

Watling, Lerchen Branch

COMPANY

DEARBORN,
Lerchen

Mich.

Watling,
opened a

—

has

Co.

£rS

branch office at 1010 Mason Street
under the management of Sarkis

p. Bayekian.

Williston, Beane Branch

BOCA RATON, Fla.—J. R. Williston & Beane has

igp
A V\
^

office
*

branch

North

Ocean

opened

151-153

Drive under the management of
John W. Wolf.

GENERAL

OFFICES

LEWISTON

•

IDAHO

(346)

Continued

from

The Commercial and Financial Chronicle

page

country. Another fertile

of demand

area

the

expan¬

sion of the industry's activities in foreign countries. These

generally forecast for 1960, we look forward to a further
increase in the industry's production of primary alumi¬
num ranging from 7-10% above
present levels.

easily be convinced of the vast advan¬
tages of plastics over other materials plus the fact that
only simple molding equipment and basic materials are
required in their production. Important is that there is
no need for costly construction of steel or concrete
plants.
One way

of bringing about a greater interest in plastic
materials in foreign countries is through the shipment
of prefab houses to help solve the lack of low-cost hous¬
ing. Areas of particular interest to the U., S. would
include India and

Reichhold's contribution to the growth of the chemical

industry

best be illustrated by its construction and
1959. This includes new con¬
struction of a $4 million maleic plant and a $5 million
can

expansion program during

phthalic plant at Elizabeth.

N. J.; and a multi-million
in Tacoma, Washington. Production
began this year in two new plants, one a formaldehyde
plant in Kansas City, Mo.; the other a resin plant in
Houston, Texas.
dollar phenol plant

During the year we announced plans for future con¬
struction of two other plants.
One to be located in the

South, the other in Newark, Ohio. Also as part of our
expansion program, acquisition of new divisions included
that

the

specialty Chemicals Division, the Alkydol
Laboratories Division, and the Varcum Chemical Division.
1959 will be a record-breaking year in our
growth.
During the first nine months of 1959, our sales increased

31%

the

over

period in

same

quarters of the

1958.

For

the

these sales amounted

year

first

three

involved

expenses

$24,000,000

our

expansion

program.

We have confidence in the future
growth of the chemi-

industry. At Reichhold,
duction

and

demand

will continue to expand pro¬
in keeping with the
growing

construction
the

part

consuming

industries

and

the

D.
President,

Kaiser

aluminum

there

Aluminum

Chemical

aluminum

come

sparked

applications

nation's building, transportation
other major industries.

vestment

significant

commercial

Kaiser

Aluminum

business.

1958

the year.

contracts

amounted

During

1959 the
shipments of

.With

to
95,000
corporation

excellent year.

credit.

While

the

aluminum

most

1959

national

aluminum

labor

costs

under

government

now

established

growth

profitable

development areas for
building and construction, a
now
consuming practically a

application

production.

Intensive

true

mortgage

and

versatile

attention

selected

Cultural

the main

and

1959

than

loans
offset

may

slow

application

Exhibition

Russia. Another
built as a sports

200

palace

significant advance
the

200

foot

for

world¬

dome

was

building to house the United States

Industrial

Moscow,

was

decision

for

foot
in

Sokolniki

dome

Park,
recently

has

Paris, France.

aluminum

Libby McNeill

the
&

canning
Libby to

package its 1959-60 frozen
orange concentrate in alumi¬

This application will
require 100-million cans
produced from aluminum supplied
by the Kaiser Alumi¬
num & Chemical
Corporation.
cans.

A 100%

marketing

-I;

expansion in facilities for the
production and
of

industrial

refractories was achieved
by
the Kaiser Aluminum
& Chemical
Corporation in 1959
through the merger with our
organization of the former
Mexico Refractories
Company, of Mexico, Missouri, a
leading producer in this
specialized field.
Expansion in international
operations has also been
a
characteristic of the aluminum
industry during 1959,
and will
continue to be
important in 1960. In addition
to substantial
increases in
international sales of alumi-

K?lser, Aluminum

& Chemical Corporation
S.S investments in aluminum production and
J
n view
rpunsts ,m Afgtmtina, India, and Spain,
of the
,j

high level

they produce

number of

blessing
returns

rates

are

may

have

likely.

of economic

activity that is

industry should
gain 10 to 20%
tons

With

the 2.45 million

production

record

million tons, 25%
lion tons of 1958.

over

of about

1.95

1960

new

uses

railroad
ers

will
made

the

automobiles.

Now,
can

companies

developed in

ROJTMAN :V

heading of prophesy to

pre-

specifically,

what

areas

look for the greatest
change?

Certainly

of the most important
marketing. It would not
be an exaggeration to compare the
marketing techniques of the farm
equipment industry over the recent

of these

one

to that of the "mom and pop"

years

grocery stores prevalent
tion ago, but now no
And

seen.

genera¬

longer to be
major factor

certainly a
development of this country's
amazing automobile industry was
in the

advanced concept of marketing—
especially with regard to the char-|
Marc B. Rojtman '
acter of the modern
dealership. The
farm equipment
industry must revolve a new approach
to marketing and
selling its products—and this means
casting its dealers in a new role, and training and
equipping them to sell with the most modern tools avail¬
an

able.

This is

job that must be accomplished in the '60s.
of major change is that of
product.
If

area

represents

the

brain

company,

cer¬

before in its history to evolve
products that appeal
through performance and quality. As an example of
this, over the past three years the Case
company has in¬
vested $28 million in
research, engineering and tooling
for new products.
The figure is more than double the
company's earnings for the same period. We believe—

the

which

will

changes ahead in
talking about the com¬

industry, such

misleading because it leaves

operations

out

designation
large area of
major changes in
a

very

also, undergo

years.
I am referring to construction and
utility equipment manufacture which is
becoming more

and more

factor with the "farm
equipment'' companies.
more than 30% of the Case
coith
pany's $200 million sales volume was done in construc¬
a

Fpr example, in 1959,
new

into

tion,
R. S.

Reynolds, Jr.

vehicles, bridges,

roadbuilding

The '60s will

ing greatly

Housing,

freight cars, defense
and electrical
applications.

been

look of the farm
equipment in-?
answer is
simple—the

farm equipment field.
panies which make up this

major

1959

The

the

the 1.57 mil¬

in 1960.

peaks

In¬

assume that other factors in the
industry do also—
that superior products will be a decisive
factor in sales
success in the '60s.
'
The theme of this article refers
to

fully utilized. However, it is possible
that growing demand will
require
nearly all of this capacity some time

breakthroughs

purchase, Tube

and

Despite this high
level of
operations, the new capac¬
ity added in recent years was not

Aiding the industry's rise to

the

visible.

con¬

year.

new

industry
to change. As a
matter of
fact, many features of
industry's new look are already
;

the

management

in 1959, which was a
one-third increase over the
previous

during 1959
important step

tainly product represents its heart. In the decade ahead,
the farm equipment
industry must do more than ever

in production and
Aluminum shipments in 1960
should

Primary aluminum

-'has"

REYNOLDS, JR.

shipped

1959 set

associate

dustry in the 1960s.

eclipse the records
over

It does not come
under the
diet vast
changes in the

expected, the aluminum

sales it set in 1959.

acquisition

MARC

public, to take the

Aluminum's prospects for 1960 are
bright.
tinued general business
upswing

continued

overseas

Another

and

breakthrough

President, J. I. Case
Company

necessary
steps for dealing with them will
prevent the development
of an
inflationary boom and its inevitable aftermath.

S. producers

there, just, as markets have
country since World War II.

time

modest

major

foreign-interests.

based

that a growing awareness of
increased willingness, both
by the

government and the general

Reynolds

this

hopeful, however,

dangers and

electrical

Reynolds and its

utilities.

vestments, Ltd., own a total of 96% of British
Alumini¬
um's common
stock,; We are convinced that
markets for
aluminum can be
developed

forget the continued

year or two will

their

One is the
on

major interest in the
Company, Ltd., which has operations
Kingdom and interests in several
other
countries throughout the world.

present, we
menace of inflation or
business setback. The terms
of the
steel strike settlement
indicate that the
wage-price spiral
has not yet been
stopped. Large government
expenditures
also remain a
major source of
inflationary pressures. If
we
permit prices to continue
rising and boom-period
excesses to
develop, a business setback
during the next
not

costs for railroads.

British Aluminium
in the United

seem

into

high. How¬

paid

products,

services, aluminum armor-plated tanks

electrical

expand

offsetting factors.

car

alu¬

for

made

was

higher

these

labor, reduce weight, increase payload

principal U.

up¬

unmixed

tested.-"----'V-;
The

,}}'•;

for

initial
inroads into frozen
orange juice concentrate.
The first
aluminum 24-bottle carrier
for soft drinks was market-

higher

loans. The banking
meet at least the most

not

refrigerator

President, Reynolds Metals
Company

structural

when

are

that

armed

and

orders

conduit, where aluminum's
light weight cuts installation labor.
Aluminum cans were used for the first
time for beer,
were
adopted by more oil companies and
made

consumer

may

programs

aluminum, the Kaiser Aluminum Dome, received

earning assets acquired when

residential construction field.

unique

rates

banks, 1960 should be a reason¬
Contrary to a widespread belief,

year.

interest

by aluminum
producers have greatly increased
aluminum usage in the

num

rise

interest rates.

possibility of

these

spectacular
was

industry

and

industry.

quarter of the nation's aluminum
promotional

was

policy of preventing excessive credit
expansion is almost
certain to be
continued, the banks may not be able to
of the marginal or more
risky credit demands.
We can
probably expect, therefore, some continued

rising

save

doors

car

test by major railroads.

highway bridges and aluminum substations

towers

any

the

minum

not likely
choking off of prosperity by serious credit
shortages. However, since the Federal Reserve
System's

box

forward

and other vehicles
appeared in 1959, New structural uses
of aluminum were seen in the
construction of two

system will be in a position to
important of these credit
needs, and there is

freight in box cars, went
Aluminum inner liners to
pro¬

....

somewhat, this should be
demands for business and

the

•

industry's

service to American

field

the

placed

look

cut maintenance

Remington

banking industry will share in this
higher level
activity, since there is sure to be an increased
demand

should

D. A. Rhoades

by
new
three-year contracts, and with the recent 1.3 cents
price change partially restoring the 2 cents
price reduc¬
tion of April 1958, both the
industry and our company
are in an improved
position for continued

been

and
John W.

The
of

bracing

walls,

car

which will

provide stimulus to the economy
throughout the year. Thus, despite some
probable decline
in residential
construction, the prospects are that 1960

for

aluminum exteriors

lines, with other materials optional.

were

1960

mass

box

floors

haps higher exports,

will be

the

tect

addition, rising
expenditures, and per¬
too, are likely

government

its

cross-members, for

during
1960,
perhaps only gradually at first and
more
rapidly during the latter
of

aluminum
housing market.
Railroad breakthroughs resulted from
Reynolds prod-

into

then

part

all

-into volume production.

equipment

post-World War II
average of about 8%.
Favorable as the outlook

supply contracts.

wide

and

mar¬

uct development programs.
Southern Railroad ordered
*1,200-aluminum gondola'and hopper cars.
Aluminum

wth the

the

sup¬

•

presently paying less than the
3% maximum permitted. A second
is the likelihood that
the curbing of excessive
credit expansion will
restrict
growth in the volume of bank
earning assets. A third is
the fact that
rising interest rates are
necessarily accom¬
panied by declining bond
prices and hence by losses in
the banks' bond
portfolios. Banks realize these losses
when they liquidate
securities to meet loan
demands.
The net effects of these
various factors cannot
yet be
foreseen precisely, but total
bank profits are
likely to
be somewhat
higher thari last year and the net
return
on capital should
not be far out of line

company
shipments
of
aluminum
under then existing
government

major

plant

long-life

;The Reynolds House of Ease program will be
extended
Uo more cities, and a new program will take

increase

higher interest rate that
deposits by those banks

accomplishment of 1959 was the re¬
placement
oft former; government
contract shipments of aluminum with

One

also

suc¬

homes fur¬

lumber

National Honies will standardize

by inventory accumulation, fol¬
lowing the running down of stocks
during the steel strike. Business in¬
should

Corporation's

aluminum

•'for

expenditures

consumer

the

builders, with the aluminum products
by Reynolds and its manufacturer customers.

^supplied

and

those

and

made

will

Homes

line

1960 the lumber dealers research council will
a
line of aluminum homes through local

ket

year,

pickup

dealers and home

■

this

National

introduction

demonstrated

during the
provided

pace

the

concept—homes
by 50
for 60% of new

introduced

public's desire for the
low-upkeep features of aluminum,

serious strikes in major

ever, there are

the

tons.

Initially,

banks.

been

for

ply

are

industries.

Corp.

industry in the United States has

products have

ther

For most commercial

brought to
the market and a number of
impor¬
tant breakthroughs have been made
in

slower

half

exteriors—was

construction.'

cessful

sharply during at least the first half of 1960 and will
probably continue to improve at a
'

second

the Reynolds "House of Ease"

all-aluminum

.home

good position to

a
,

'leading builders in cities accounting

ward pressure

RHOADES

through 1959, a year of unusual industrial disturbance
stemming ffom the prolonged steel strike, with a sub¬
stantial increase in shipment volume. Total aluminum
shipments for 1959 are estimated at
2,450,000 tons, compared with the
1,785,000 tons shipped in 1958. Many
new

REMINGTON

The outlook for banking is
good because it reflects the
favorable prospects for business as a whole. Present indi¬
cations are that economic activity in general will pick

ably
The

meet all

public.

1959

President, American Bankers Association, and
President, Lincoln Rochester Trust Co., Rochester, N. Y.

to $71,147,000

compared with $54,434,000 for the same period in 1959.
However, our earnings have not quite measured up to
expectation. This is due to a costly strike at one of the
plants earlier last year, the loss of the Austin, Texas
plant as a result of being struck by tornado, and the

heavy

JOHN

somewhat

of the Near East countries.

some

rolet, General Motors and Ford, is in
participate in this growth.
*
with

countries could

Thursday, January 21, 1960

into other

contain¬

The aluminum
engine in Chevrolet's
compact corvair
is the first of
many an American
passenger cars. Rey¬
nolds, with its molten aluminum
contracts with Chev¬

and
material handling
equipment,
the farm equipment
companies expand¬
into this field—with greater diversification
see

areas as

well.

•

♦

■

*.
.

As
I

for

not

prospect for the year
immediately ahead,
share the shroud
of.-gloom that has become

fashionable
It is
areas

the

raiment

progress

listed

above

the
that

some

Case
is

sections

the

industry,

company has made in the
the basis of
my confidence.

Number 5918

191

Volume

The Commercial
and Financial Chronicle

billion industry, that means
in it are doing 90% df the
business. The Case company could have a highly suc¬
cessful year just chipping away at some of that volume.
But all in all, our feeling is that the companies in the
industry that will make giant strides in the '60s are those
who will face up to the tremendous changes to be made.
This will take courage and a definite discarding of the
"old way of doing things." For our part, we expect the
face of Case to change more in the decade ahead, than
it has in the preceding
118-year history of the com-"
pany. We are looking forward to the '60s eagerly. /
is said, ours is a $2
the other .companies

If as

that

THOMAS

prove

profit margins

and strengthen capital, so that it
position to provide the credit needs that will
develop later in the decade.
will be in

always, the

economic

to detect
any of the
ful corrections of

there

are

picture bears

careful

study

danger signals that precede the pain¬

excesses

area

financial

and

abuses.

this

several

developments attracting attention.
April residential housing starts drifted lower
each month,
reflecting primarily a tighter money market.
The trends of new
incorporations and the total liabilities
Since last

of business failures have

though much
steel

RICE

(347)

strike.

this

been

may

perhaps

unfavorable

due to

the

recently, al¬

effects

the

significance has been the

continued optimism.
around
the

the outlook for the.railroad industry as a
whole for 1960 is favorable, the remarks contained in
the following paragraphs pertain to the outlook for the
Atlantic Coast Line
Railroad. Reports indicatev that
While I think

leveling off of the ratio of consumer credit ex¬
tended to that repaid. This
suggests that sometime in the
latter half of 1960 the demand for credit on the
part of
the

consumer may

economy

about $30 billion over 1959. With

exception of residential housing, all major compo¬
will contribute to record levels of

activity. The
lar

consumer

increase of Gross

most

$20 billion

for goods and services.

balance

the

federal

will

pace

the advance in the dol¬

National Product

he spends al¬

than in 1959, about $310 billion
Though attempts will be made to

budget

through

strict

is schecluled to show

increase

A^^^BA

ing of about $3 billion in 1960.
With the economy

of half

operating well above

trillion dollars, the nation's industrial facilities

gives

cause

Continued

for

percentage

:l|jjj
V** -IMB
jjjr "v,

have

large
expenditures for

the

and expanded plant facilities
wil1 be in the Southeast. Since, so
-many iactors which influence manunew

facturers

for

^rial

the

location of plants,
availability of indusavailability of
large
requiring a minimum

water,

acreage

0£

example,

sites

ATLANTIC

graciing and other

preparation, a
climate, an
abundant supply of labor, are present

^vorable

industrial

■

jn the territory served by the Atlantic Coast Line Railroad, we expect
to have a substantial share in this

w. Thomas Rice

I ■ill

anticipated that our freight
level in 1960 than in 1959. As
optimism, we have on order 1,000 new

growth.

industrial

traffic will be at a higher
a

measure

our

HHi

delivery of which will begin during the
1960. We are also enthusiastic over the
potential of our expanding piggyback service which was
inaugurated in 1959 and which may well prove to be
freight

cars,

the most important source
in the year

traffic for Coast Line

new

ahead.

Coast Line continues to seek new
and

increasing

novations
tial

MMMP
.mm.

quarter of

first

its

from

made

were

means

traffic.

passenger

for retaining

During

unquestionably has not yet been realized.

ample, after
sentatives

in¬

1959

which the maximum

poten¬

For

ex¬
>}>«>«

<*♦»'<

absence of many years Passenger Repre¬

were

restored to the East Coast Champion and

West Coast Champion to assist in catering to the
fort of passengers; a low-cost "American Plan"

com¬

meal
without lowering the
caliber of food or service; giveaways or souvenirs have
been provided, particularly for children; an intensive
program designed to encourage courtesy to our patrons
arrangement

was
was

inaugurated

was

inaugurated;

and

•

suggestion system
worthwhile sug¬

employee

instituted which has brought many

gestions for the improvement of our service.
It

primarily

because

these

which

innovations,

have been designed to make our service more attractive
and thus meet
the increasing competition offered by
other forms

transportation

planning stage—that the

—

outlook

Building...

and others are in the
for passenger traffic

in 1960 is favorable.

HAROLD

for the Years Ahead!

RIDER

President, The Fairfield County Trust Co.,
Stamford,

Conn.

The end of the decade finds the nation still enjoying an

expansionary phase of the business cycle which should
remain with us well into 1960. The work stoppage in the
steel industry has resulted in pushing a great deal of
activity originally scheduled for 1959
into

This

new

17-story Atlantic Coast Line building, on

the bank of the St. Johns River at Jack¬

sonville, Florida, will be completed in 1960 to serve as our

home office.

1960, with the expectation that

inventory
more a

accumulation will be once

positive force in the economy.

Although

certain

indices

We believe this

activity have declined in remonths, on an over-all basis the

condition
and

strong

The

steel

sured

the
as

economy

enter

the

sound
new

industry should be asoperation during

capacity

the 1960 first half
pleted by the

strike,

Barring

inventories, deare

replenished.

areas

I API
W

|W, $
^

*^JApF
gflA

the

A vital link in America's

in transportation—an era that will chal¬

evidence of

our

faith in this

new era

kind of transportation services they need for

nleosure and Drofit.

Haro

economy,

advance

being

The outlook for banks is excellent. And with the pros¬
pect

business
ward

continued

strong

and consumers,

for credit from

demand

it is difficult to see any

both

down¬

trend

developing in money rates or bond yields.
the banking industry was called upon to
supply large amounts of credit to help the economy in

During
its

1959

of
throughout

recovery. As would be expected under conditions

demand,

the

money market remained tight
the year. And
most banks are beginning the

high proportion

their earning

'60s with a
assets in loans. Earn¬

ings, therefore, should show further improvement. And

the

industry should take advantage

of this period to im-

Southeast Coastal 6 states which we serve... and in our own

the greatest
witnessed during the first half.
Business spending for plant and equipment is expected
to. increase significantly. And when considered together
with
inventory spending, they will be major determi¬
nants of the level of
production, employment, sales and
over-all economic
activity in 1960.
rate

location

and in the future of American railroads... in the

ability to provide our customers with the
>

industry.

transportation system, Coast Line looks upon our new

growing economy of the

■Am

resumption of work stop-

page in any basic industry, 1960, will
establish new records for most major

a new era

lenge the ingenuity and facilities of our entire

nornic
cent

building symbolizes

pjjAPvN"

eco-

;

annual rate

will be called upon to produce at record rates.

substantial

and

believe that

reason to

every

PP'

1959

over

expenditure

control, increased spending by state and local units will
probably result in an increase in total government spend¬

capital spending by industry in 1960

iiffiSHI

major

One by¬

product of capacity operations will be the alleviation of

be somewnat lessened.

The outlook for the over-all

$510 billion,

are

Gross National Product of

nents of the economy

recent

President, Atlantic Coast Line Railroad Co.

Assuming that there

strikes in 1960, we look for a

serving the
Southeast

Coastal

page

(348)

Continued from

The Commercial and Financial Chronicle

1958.

page

Department store sales

that was with us in 1959.
Another problem of 1959, the gradual weakening of our
balance of international payments, should be lessened in
1960 as our exports benefit from the prosperity of some
of our better customers abroad.
Unfortunately during
this prosperity stage of the business cycle, profit mar¬
gins are often sacrificed for volume operation and this
leads us to the belief that prices in general will continue
unemployment,

problem

of credit —life-blood

custodians

have

our

great challenge facing them

they allow the country to indulge in

1960.

Northwest economy. In fact, every usual
indicator of growth points to progress.

Whereas

be but

expect

• •

•»-

•

even, productive
west can

incubate

consumer

rially

1960 promises steady growth for electric and
utilities operating in the Pacific Northwest. In the
investor-owned

electric

utilities

two

serving

lieve it

the

not

so-called

bring

belief

upheaval in

sales.

mile

service

26,000-

from

come

the

groups to attract new industries,
and especially from the fact that, thanks to

capita income throughout

the

The
is

1947

and

Water
often

population.

1957,

Power

supposed

that

Pacific

diversity, the
Northwest

people
as

from

matter

past

the high

ten

Such is not the case,

certainly in the Inland Empire, people are unusually
electrically minded. In the past 12 months, the average
residential kilowatt-hour use increased
by 455 kilowatt
hours. Every new home
constructed, every new family
that joins the area is
quickly imbued with the idea of
modern living. Year after
year, and in spite of already
high saturation of appliances and use of electric
service,
the trend climbs ever
higher.
The promotion of natural
gas,
undertaken recently in addition

which the company has

to electricity, does not
to deter consumer
acceptance of additional kilowatt
hours. The public
concept of leisure, convenience and
seem

modernity apparently is sufficiently dynamic to
pass

both.

The

scores

{services which

are

of new

still

the

uses

encom¬

for

electricity and gas
drawing board are already

anticipated by the consuming public. There is no
ap¬
parent limit to comfort and convenience which
the public
wants, and will pay for, if

purchasing

possible to realize them.

are

not

power

makes

overly speculative,

therefore, to say that by 1963 the average annual con¬
sumption by residential customers will reach
10,000 kilo¬
watt hours.

Power supply should be no
problem in 1960. For the
first time in
many years The Washington Water Power
is self-sufficient as
regards power needs. This situation
is realized
through construction of the

company's Noxon
Rapids hydroelectric project on the Clark Fork
River in
Western Montana,
costing some $87,000,000 and
which,
upon completion early in
1960, will contribute 400.000

kilowatts.

The

western group utilities of the
Northwest
Power Pool had installed
generating capacity of 3,450,000
kilowatts in 1950, while at the end of

1958, installed

ca¬

pacity had been doubled, with
7,803,000 kilowatts avail¬
able. Another
6.060,000 kilowatts were licensed or
construction.

under

this

amount,

3,485,000

kilowatts are
represented by 14 projects of non-Federal
publicly owned
and private utilities of
the region.
During the past year,
the private utilities
alone have placed in
service projects
with more than
1,000,000 kilowatts of
capacity. Thus our
immediate power needs
that there can be no

Projects
throughout

are

met, though all of us realize
let-up in planning for the future.

now

progress, or
Inland Empire,

soon

get

under

way

the
represent construction
investment in excess of $2
billion.
In Spokane
itself,
construction for the first
eight months of 1959
topped $35
lion, up nearly one-third
over
the same
period in

indeed.

for

the

mean

larly to be able
vested.
to

It is

attract

the

capital

future market if
f

earn

their

fair return

the

industry will

required

build

mines

the

pleted.

Additionally, the hard-pressed railroads

have to build coal

future

cars

to move the coal

will also

required in the

and certainly

they will be unable to build these
stand-by basis. This, then, is a serious problem
which not only the Government
must recognize but also
cars on

the

consumers

rarily

along the eastern seaboard who
tempo¬
by the cheap imported residual oil and

benefit

natural

gas.
Can these consumers afford to
go out on a
limb and further weaken the
coal industry when in this
uncertain world their
supply of residual oil can be cut

off overnight
by revolutions or other disturbances in the
producing countries, not to mention, of
course, war?
Also, it would seem to me that they should realize

the

three possible

heat

and

electric energy,
namely, gas, oil and coal, coal is more
likely to have a
stabilized market over the next
decade and they cer¬
tainly could not afford to destroy this
competition to oil
and natural
gas.

The

Government

strides

must

realize

that

already made in the production

prognostications

the

1960,

some

are

12.7

1958

times

production, the oil

1958

production,

market

car

dieselization
oil

The

and

natural

the

its

generally
market.

expansion
ultimate

cars

this

maintain

Contrary to
the

domestic

domination

the

this

will

continue

strongest

program.

•

v
,

originated airplane-type
single-unit
(applied in building all the new
compact
introduced last fall) and has 20

construction
"

cars

years

of manufac¬

turing and engineering experience in
using it.
American Motors builds more
cars in a
single set of
facilities
than

enables
out

any

manufacturer

match

this

efficiency and

our

competitors' big
to
take
advantage of the
manufacturing facilities.

country.

economies

This

growing

volumes and enables

car

economics;'of; concentrated
\

Rambler's public
acceptance, product superiority, pro¬
volume, low costs, selling
strength, financial
resources,
factory-dealer r cooperation,
managementunion-worker teamwork are
fully capable of taking the
greatest individual
advantage ;ofMhe explosive growth
that will occur in
compact car sales in 1960.
duction

RUSSELL^

President, Southern Pacific Lines
It is
of

impossible

Southern

The

this

time

predict the performance
the year that lies ahead.
problems which face our
economy are
have clouded 1960's
forecasts.
Principal

Pacific,

during

unresolved

factors

which

among these, of course, is the even¬
tual
disposition of the controversy

tremendous

over

working rules in the railroad
industry. The ability of the railroads
to

obtain relief from the
wasteful
practices embodied in
obsolete work¬
ing rules will play a

major part

determining the shape of the
to

years

come.
t

reserve

gas

estimates
22.9

In the year
just

were

and

coal

ern

the

their business

due

some

heating homes.
protection during

these next few years to
again get on its feet. If it does
can not afford to
develop the mines for the future.
In summary, I would
say that while the immediate
outlook for the coal
industry is

dependent upon what
protection the Government will
give it over the next few
sure the Government
realizes the neces-

felt

concluded, South¬

the

strike,

stringencies of
every other

did

able to take
positive actions which
helped
cushion the effects of the strike,
were

some

the

Pacific
steel

railroad. But

railroads and the replacement with

gas for domestic fuel

not, it

years and I am

they-will

battle.
|
Rambler has the widest
choice. of compact Rambler
models. Rambler not
only introduced and sold the compact car idea, but

Subcommittee that,

natural

industry must therefore have

European-type
industry sales in

advantages and a relatively
strong financial position. American
Motors dealers have
the selling
advantage in the compact car

We must realize that the
bituminous coal
industry has
suffered a very severe blow over
the past ten
years when

small

cent

The expansion of
Rambler sales
1960 because American
Motors has the

of energy and the

2,200 times 1958 production.

they lost practically 40%

think

market

of the amount
required in the future
that coal, with which this
country is so wonderfully en¬
dowed, should be protected and
encouraged as undoubt¬
edly the main source of fuel in the
production of energy
for the future. Resources for
the Future, Inc. also
pointed
out to the Senate-House
Economic
based

per

saying,

car

that of

sources

foresee the

It has basic
compact car cost

some

modern mine is a
very costly project and requires
the greater part of three to five
years before it is com¬

not

ket.

the

country will be at the expense I
big-car programs of the
Big Three.
American Motors is in a
position to capitalize on the
change that is taking place in the U. S.
automobile mar¬

able

for

see

pre¬

responsive to the

of the

capital in¬

protection in the form of controls
not afforded the
industry by limiting the amount of
residual oil (liquid
coal) and disallowing the uneconomic
dumping of natural gas in the Summer months. To build

new

Eco¬

will

penetration of the American

what

of present

not

substantially from

compact

1975 the demand for bitu¬

the

cars

cars.

country

obvious that

new

exceeding their 1959

industry

Senate-House

have greatly stimulated
buyer
comes not
only from the fact
differ more
cars

stimulation

While
coal

compact

This

these

priced

told

George Romney

Chevrolets,

year

industry produced this past year.
Future, Inc., supported by the Ford

recently

will

big turnaround, and there
basic rearrangement of the
industry. Early in¬
dications of this trend occurred
in 1959.
For
example,
what were the
"low-priced" cars are now the medium-

Mr.

the

has

penetrat¬

so-called

new

will be

cost and average
market during the Winter

long-term outlook in the bituminous

bullish

now

origi¬

vious models but because
they are
changed needs of the buyer.
The coming

Routh

annual production of
approxi¬
mately 750 million tons. The main problem within the
industry is how to survive the next few years particu¬

average use of present
stood at 8,669 kilowatt
and

75%, which in terms

words,
electrified

arithmetic pull down the high
customers, which by Oct. 1, 1959
hours per residential customer.
however. In the Pacific Northwest,

Joseph

■■

production, will

other

highly

that

regardless of

consumer

nomic Subcommittee that
by
minous coal will increase

coming to the area
saturation of electric ap¬
not

price in the

Foundation,

The Washington
increased by 47%.
It is

areas

The

boiler

forced

see

interest.

equal monthly delivered basis throughout
and, necessarily, must use this gas for boiler

Resources

between

years

is famous.

area

other

also

that

Compact and small car sales in 1960 should be
at least
2,350,000 units. The Rambler
target is more than 500,000
units, or about equal to the total sale of all
imports.

there will be required over 900 million
tons of bituminous
coal annually and that the electric
industry by 1965 will
use
as
much as the

customer

residents

new

pliances, for which the
should

the

served

Company have

would tend to dilute

40,000

customers

the

Philip Sporn, President of the
American Electric Power
Company and one of the most
distinguished utility executives, predicts that
by* 1975

spending.
Analysts predict, for example, that the Spokane metro¬
politan area in the next 40 years will show nearly 100%
increase

are

car.

idea

car

and larger than small
foreign imports)
would represent 50% of the
automobile market by 1965.
Now that the
Big Three has decided to let the
public
decide the speed of the
transition, it will be 50% sooner
than that.
yy-1

on an

months.
Kinsey M. Robinson

for

compact

Fords, Plymouths

The

production.

in the Summer months

out the

per

year

use

part

sufficiently high to insure continued

gas

the

steady progress
normal population

months

utilities

buy

conservative,

increase, serious efforts

Summer

Last year I estimated
that compact
(cars smaller than

inroads

far below the cost of

prob¬
three will

out of every

one

cars

of cheap imported
(liquid coal) and natural
which is dumped at prices dur¬

Electric

The

ment based upon several factors. The

will

The

and

sell
new'

luxury "compacts"
following the Rambler Amabassador
in medium-price
brackets.

which, therefore, mate¬

the

use

small

ing the entire industry, and

ing the

expect normal business improve¬

industry

that

soon

spite of this, the bituminous
industry is in serious danger

gas,

Washington Water Power Company,
we

steel

industry should

nated with Rambler is

residual oil

that

area

able

of bituminous coal

users

the

ex¬

January,,;

7,000,000 and 7,500,000

The

production.

•

controversy is not
beyond the end of

automobile

was

from

either

the

largest

1959.

"Sizzling Sixties" will

great

any

production
square

personal

the

.,'.v

year

passenger cars in the United States
in 1960. Of this
number, it is

President,

Co., Inc.

coal

companies is planning to reach
higher level of performance.
It

and

steel

between

electric light industry—will consume
greater quantities in 1960 than in

be said that each of these

can

Pittston

increase in consumption.

—both

and

one-quarter
million customers, or 63% of the total
population. Without exception, I be¬
one

Board

of bituminous coal and

affected

10%

Washington, Oregon, Idaho and Montana

are

the

place, is
brighter and I look for approximately

year

approximately

tended

outlook for 1960, provided there is no
renewal of the steel strike or a rail¬
road strike does not take

President, The Washington Water Power Company

there

little, if any, better
in 1959 than in 1958.
This, however, was due to the pro¬
longed steel strike, which industry is the second largest

KINSEY M. ROBINSON

If the

™

ROUTH

the

•.*

the

will be available in Ameri¬
'

automobiles.

can

greater things in years to com«

Production of bituminous coal

economy with objectiveness.

States

noticeably, but will maintain

The

extension of credit, so as to temper the enthusiasm of the

gas

decades

•

even

Chairman

country to much higher levels of economic activity
and prosperity in the coming decade. It behooves all
lending institutions then to exercise great care in the

four

down in history

temperature in which the Pacific North¬

our

The

Sixties do not sizzle too

record year in I960, it appears to
the path that is going to carry

stepping stone

will

"big turnaround" in the automobile industry.
It will be another exciting year—for the
industry and
for the car-buying public—because the widest
choice in

Again, and it bears repetition, the year 1960 will not
a period of
spectacular boom. In fact, over the long
haul most of us will be quite satisfied i* +V.A>
if the Sizzling
%

sixty

the

unusual

and

ROMNEY

Nineteen

belief that the upsurge

the

GEORGE

President, American Motors Corporation

and security programs, not to mention miscel¬
laneous routine expenditures, should continue to stabilize

speculative binge
resulting from re¬
sumption of production in the steel industry is not tem¬
porary but the beginning of a big boom, the nation could
well be vulnerable to a painful readjustment. •
based

economy.

are

Further, whether we like it or not, it must be recog¬
nized that roughly one-fourth of our national income is
disbursed by Government—local, State and Federal. Re¬

their upward path.

bankers

sity for it, that the long-term future of the
industry is
bright indeed, in fact, the industry may well have a seri¬
ous problem in
supplying the coal required in the future.

are up 6%, home building
12%, employment up 34%, bank debits
9.5%, and even postal receipts move steadily upward.

permits

Thursday, January 21, 1960

and
Donald J. Russell

bring

relatively

through the

year

system of incentive rates
major factor in bringing us
healthy increases in
which helped compensate for

traffic,
and

steel

reduce

loss

traffic due

the

charge

which

per

good condition.

was

other

copper

strikes. These are rates which
100 pounds for heavier
loading,

benefits the shipper and
encourages larger loads
benefits the railroad to
greater revenue
per car and makes better use of
our
equipment. Since
and

thereby

Number 5918

Volume 191

The Commercial

and Financial Chronicle

first introduced on perishables in the Spring
75,000 carloads of fruits, vegetables and melons
have moved under them, and in the year just passed
they are credited with bringing us increased volume
and higher carload revenues on lumber, sugar, beets
canned goods and other commodities.
Improvements which helped boost our operating effi¬
ciency also aided us in maintaining our position.
Ap¬

(349)

they were

SECURITY SALESMAN'S

rumors,

good

freight cars of various types, and
motives.

105

new

diesel loco¬

JOHN

stock slid off

DUTTON

Despite the immediate problems that I have mentioned,
the long-range growth of the territory served by South¬
ern Pacific is well-founded. The rapid population
growth
of the West and Southwest is continuing, with a cor¬

responding growth in industrial capacity.
However, this nation's economic welfare

dependent
system. The ills which
portion of the nation's

upon a healthy transportation
have ^endangered a substantial

railroads must be curedi>if their full contribution to the.

is to be made. Government, labor and manage¬
ment must work conscientiously and faithfully together
to strengthen the railroads for their tasks in the years
-

;:r

There
of

tendency on the part
people to believe that

most

the

knows,

whTt
what

other

fellow

own

common

MRS.
Chairman

MARY

;

and

ROEBLING

-/-.•'-Trenton, New Jersey
As this
his

opinion

which

;v"

trip throughout the Near and Far East and has

gospel of peace to
creeds, colors and
prelude to

lations

are

waiting world of people of
languages. This

re¬

due him for spreading the

satisfactory

many

could

with

the

too,

affecting

this

affairs

answer

my own

"^1x1™ J?™?*!'

re¬

country's

coming is not

heralded

advent

former

forebodings

dustrial

forecast

that has become
If
of

are

cloud

for

thought,

contingencies

usual

prosperous

large nations.

that

triicf

of great abilities

rvritPd

has

seems,

top

boueht

the

Ann
Ann,

who

husband

nrice

A ?

well

lip

question

have

good

told

few.

that

officially

delivered.

and

that

save

with

It
'

about

50%

months

the cup

happened

the

company

certainly

ccitanuy

was

yygts ilkj

*lW?
A ^ J
ha.t bee" e several
va d
the past

kargain or?

based

upon

rumors

pvprvnnp

now

was

dollars

half

friend

share,

can

in my

regardless of party.

Never before have

able

per¬

Congress and in various branches of govern¬

mighty corporations,'/of teeming factories, industries
large and small, wholesalers and retailers by the
Continued

page

The

stockholders.

sells

stock

around three and a half and there

sat at that

it has

level for over a

Yet, the people who head it

year.

pretty big potatoes in this
of the woods. They have a

are

neck

Our economy is sound. Its might is measured in terms

con-

—-—

—

signed,

Since it

sealed

was

and

govern-

between other contractors in siiwV
lar

situations

weii

when

business is transacted with Uncle
Sam.

It looks like something has
jelled however. The stock has had
a

rise

during

the

week.

past

could .4? aand ask for this one—no
better. (Don t anyone write
fi

rumor*

infn

nr.

anv

rumors, no into on ana-

tX^VcSrL'rTto'sXctlhose
fho
nrofLsiLals and whS
are

™

afford

I iT

tell

take

them I have

risk

heard

*
a

alsb
;t

pretty

solid rumor but nothing official.
I tell them I like my source and
1

think

pretty

the

stock

good

yalue

"buy"

Here

salesman
is

the

again

can

never

out

advisable

purchase
when

the

you

a
are

security
a

limb,

suggest

speculative
overpaying

value, or at least what looks
like value. If you gamble on
winning a lawsuit, on putting
through a merger, or any other
event that MAY OR MAY NOT
TAKE PLACE, be sure of one
thing—you are in nothing more
than one big gamble. If it works
on

O. K. — if it doesn't you struck
out! Knowing that you don't build

An and"buy"they

source

oversell

never

it, and
In

this

KNOWS
for

business

matter

start

never

that

overstate

you

only

classify

how

information

7n7 it" won't
ron't

others

ever

it,

never say

know.
FOOL

take
you

leading with

ToYg

your

you

chin.

Gibraltar Investors
(Special to The Financial Chronicle)

Mark Robson is engaging in a
securities business from offices at
242 West 49th Street, New York

City, under the firm name
Gibraltar Investors Co.

speculators.

among

pen.

they wanted to initiate some buying in this stock they would only
have to tell a few people, who
tell

would

some

others, and

be¬

selling at
four, then five and it might go
to ten. I've seen things like this
fore

long

could

during the past year in
pretty awful dogs. Some ad¬

happen
some

RED

basis of all the
evidence, including past perform¬
ance,
the
aforementioned
"so
However, 011 the

Filling, Land Reclamation,
Canals and Port Works

inquiry

Ship Channels

asked

the

way

client

that

think
are

equipped

tion and

execute

port work

all

kinds

of dredging,

reclama¬

anywhere in the United States

Correspondence

the

Federal

Government

invited from Corporate

I played it. I
if she was in¬

(Why some people
can have the

such

answer

don't

things

"Tell
think the

know). Then I said to her,

friends

stock
to

very

that I
speculative. I

have

it whatsoever. If
they want to speculate and they
opinion

and Private

think their information is

worth¬

and

while following let me know
Interests

•
.

Everywhere

gladly buy it for them."
Then I explained to my customer
that sometimes speculations like
I

Longest Experience

will

this

work

Atlantic, Gulf and Pacific Co.
HOUSTON 2, TEXAS

are

15 Park Row

BArclay

7-8370

Citizens

CApitol 4-6091

Cable Address:

State Bank Bldg.

"Dredging," New York

out

well

for

good

what some
people think is a good reason. I
suggested that she refrain from
passing on any opinion. If people
reason

NEW YORK
38, N. Y.

broker

your

Contractors

such

terested, and she said no but she
did want to get the information
for her friend.

about

situation?
Here's

River and Harbor
Improvements, Deep Waterways

when

Dutton

does

gets

doesn't figure. But

stock

so"

and

what

and

higher.

remained

others

while

temporarily

only

but

vanced,

anyway,

ma]^ing a pjay based upon the
probabilities and the odds. I don't
think
can build
confidence

substantial loss if it failed to hap-

stock

this

you

following

it.

one

territory. So far they have
absolutely nothing for the

done

and

over the precarious course of national
international functions. Upon these foundations of
nation rest the basic formula of forecasting.

get

you

know

do? The history
this outfit is pretty well known

political leadership

wants

about

think

what

in those who are leading
them are men and women

sizable

very

of
in¬

was

are

When

Mary G. Roebling

some

year

ment contract there is always a
a slipup before the
ink is finally dry—this happens

before.

familiar

J
if

show

certain

slips" between

some

the

insurance

formed

whose

some

and
to

„.QO

could

seen

years

askod

the

company

begun

'these" people

what

with

)}v

n?A™

hnshand

ment to lead them

our

tho

and

lomer's

the American people had a choice of so
many
sonages in

Qu.

r„ne

about

ten

life

clients

is going to ten.
People who know told him. They
have some savings and my cus-

in¬

our

friend,

He says the stock

beset

My confidence in

shaken, my faith
and those who may succeed

when

now

three

nation

years

has not been
us

from

selected

few

had

way.

when

made

was
a

present

with^ibothercom- Fusibility of

told

f +vT

widow. I

herself

lriend that

lately reliable

that he had

and

with one school
shall continue our

succession

and

capital

some

to agree

the

well

a
client

which the stock would be merged,
based
upon
the terms
of the'
merger,
and
he gave
me
his
source which was unimpeachable.
Knowing that this man had the
connections, and that he was abso-

quality utility stocks. She has two
boys to raise and she will need

™nn

leader of nations.

some

funds

mon.

other¬

just

Ul vT'f my
friend mentioned, and t e terms,
ft il ilSbhl ?%n
n"hfl mdl<raJed. ,a+1?0 to 40% profit was
T?g if nir Jll arnL there
the the went through
It
selling around possible if also deal likelihood of a

been

and

her

call

Ann'<=

since

years

national

character

cheerful

has

are

called

one

2!fsire Tolwes°^nh%he0Stpltv"

economy

evening
customers

T-nie
This lady

home.

5amf

come

Going Way Up?

other

hnmn

time throw¬
ing all forecasts out of balance. How¬
ever,
as
the year 1960 dawns, its

wise

The

telephone
president,

came

signs of life after over a
steady downward drift. I

eood

verv

stock

u?? horTrd"cfTmnanTwaTd^

Is It

from

heard

;

could well erupt at any

the

interesting bit of in¬

that

but

desk with-

the past few days.

evening# He told

put

Here

capa-

;

happened

one

a2o

about

remembered her ,H
friend Ann.

nations

day.

Boss Man

.f.

are

possibly

the

samples from

overseas.

Then,

the

one

baLs agn°nALYttonmv tele 'trac? was in Pr°gress of comsumC connfc,ed attorney, tele- mation Indeed the contract was all
phoned me at my home in the i~.*

securities,

situations

one

mutual

is written, the President has just returned from

ceived all the honors that

Co.,

few davs

the spot, and are asked to give

have

President, Trenton Trust

Another

sense

•

public interest

most investment salesmen

tells them "just isn't so." In every
bull market, when
we
have
a
,„J

one

100% Information

likely *° 1)6 true' tkan

their

ble of predicting such things,

and

another

happened

lose and

case you

says

important,

investment

With

hours

off, the

20% in

over

formation

"Tips, Rumors and Inquiries'*

economy

ahead.

called

was

be,

Within the past few weeks there
was

Forty-eight

deal

tips,

even

appeared

nothing.

Talked

what

....

interesting development during the year was the
inauguration of piggyback service for automobiles. Cur¬
rently, we are taking delivery of 350 auto carriers and
100 85-foot piggyback flat cars to handle this traffic.
An

this

later the

CORNER

clientele

information,

said

proximately 406 miles of Centralized Traffic Control
were: placed in ;operation
during the year along our
southwestern lines, and, with the completion of 250
more miles this year, our entire line from Los
lAngeles
to east of El Paso will be electronically controlled.
During 3959, Southern Pacific took delivery on 1,500

investment

of 1958,

goes

told

for

not to buy and the stock

then

up,

advising

all,

are

those who

the

blamed. If they sug¬

gest

that

the

stock

might

good speculation and it goes down,
they are also convicted. In either

42 BROADWAY. NEW YORK 4 * 295

MADISON AVE..NEW YORK 17

The Commercial and Financial Chronicle

(350)

Continued from page 97

world must be sustained from withiruwith

ments—in debt

thousands, an army of buyers with a disposable income

than

greater

with

These,

period.

former

any

the

assets of banks and financial

institutions, with
unlimited resources and research organizations, make it
difficult to restrain one's enthusiasm about the country
enormous

and

its

possibilities.

have

optimistic

conservative.

strongly believe in the American system of free enter¬
prise and all the benefits that flow from it.
So, I briefly state my forecast as one who has studied
attitudes

those

hundreds

many

bankers

who

Miami recently. They represented a cross
section of the country's large and small banks and trust
companies. My own conclusions follow:
I believe that compared with the last half of 1959
general business conditions in 1960 will be improved.
gatherer

eral

that

with

compared

structure

higher.

interest

the

rates

' ;'" "
; ■. ' —
expect home building in

the

present,

during

1960

gen¬

will

"u';"\

and

farm

our

installment

anticipate

outlook

and

overall

assured

ceeding

any

during

area

loans

credit

renaissance

1960

will

evident during

the

business

and

industry

gross

ahead.

year

President, Island Creek

Coal Company

industry should share in the general
economic improvement being forecast for 1960, and re¬
cord substantial improvement over 1959 in production,

yr,/■■■•>*- v'is

act

and

take

word

inflation

interest

certain

risks

has

until

coal

to enjoy harmonious
relations, but labor difficulties
work stoppages in 1960 in steel,
will

and

can

other major

Without

turbances

rates

that

some

caused

hesitate

many to
the clouds

some

govern¬

municipal spend¬
ing, with bond issues and their increasing burdens of
carrying charges are closely scrutinized. This fear is a
deterrent, but confidence in a stabilized America breeds

What

the

V
R. E. Salvati

such

economic

10%

over

1959.

also

reflect

should

12%

im¬

been

1959, and increased productivity will be recorded as
industry continues to invest large sums in the inter¬
of improved efficiency.
Bituminous coal did not
share, to any extent, the general business improvement
and

despite

lowest

increased
As

years.

coal

costs,

wage

consequence,

demand

forecast

and enable the

for

1960

should

reverse

Government

does

about

loans

over-all

the
a

and

trend

tempt to deal with these great issues
in Washington are aware of the far-

reaching
made in

effects

decisions

reshape

strike. Industry, labor and
hapless consumer have all been
hurt
by
the prolongation
of
the
strike, and the Federal Government's
hopes of a balanced budget have
of

tax

solved

Big
re¬

end

Once the present differences
confident that the

roaring

industry will ignite

new

Leverett

Saltonstall

legislative solu¬
settled, however,
hearths of this basic
a

economic

growth

the

domestic

small

cars,

reliable

The

of this

automobile

industry,

and this industry for
barometer

the

our

new mass

manufacturing
long time has been

now

nation's

economic

health.

transportation systems

essential

national progress.

Overshadowing

all

these

questions - is the
great issue of foreign policy. As I write
this, President
Eisenhower is
completing the most ambitious world tour
ever undertaken
by an American President. I share the
enthusiasm of most of ,the American
people, who believe
with me that this
person-to-person

diplomacy,

now

our

sincere

eventuality—to continue, for instance,

military contributions to NATO for
But I do hope and
believe that his

increase

in world

officials, and

some

years

trade, further exchanges of public

by the quality of our strength
and the character of our relationships
•K, «ce nations throughout the world/ '
'
The
f

freedom

which

turn

the

outside

long-range
by

systems

(8)

Classes

instructor

cational

100,000
will

forecasts will
electronic observation

open a

(10)

out and

and

be
of

materials
will
the

that

under

become

throw
way

exploration
XX-wElI*

basic

one

edu¬

whole

well

direct

new

advanced
as

circuitry— the

amplify,

and

light

systems
for

the

for

components and
control impulses

what

possible

defense

consumer

v«9*

and

space

industrial

last

equity

Broadcasting

Co.

greater * busi¬

plants

new

and

1959 give every reason
the
continuing growth of RCA's

for confidence

business, as well as
the national economy,

emerging decade of the Sixties.

spending,
especially
for
Despite dislocations,.
of

1959

has

economists, points

scored

conserva¬

$512 billion year for 1960.
keep pace with the accelerated
a

activity in all sectors of the
the nation's advertisers,

econo¬

my,

expected
in

1960

past. We in
believe
all

invest

than

about

the

can

peak

year

just

Robert W. Sarnoff

broadcasting confidently

that

substantial gains will continue to be made
of the TV industry with total outlays

segments

some $1.7
billion, surpassing the estimated $1.5 billion invested by advertisers in 1959 and
accounting for
better than 14% of all

advertising

Radio

expenditures.

well may be expected to attract

tising dollars in 1960

adver¬

continues to demonstrate its
effectiveness and economy in
reaching the mobile mass
as

market.

'•

•

Network

television, which

accounts for approximately
half of all television
advertising dollars, may reasonably
be expected to reach
the $850 million mark in
1960,

accompanied
local

substantial

television.

gains in

national

spot

and

By far the most stimulating and
promising area for
television's
growth in 1960 is in color. NBC's schedule
now provides an
ayerage of 20 hours of color program7
ming each week, with color shows
spread throughout the
week's schedule. The
expanding scope of color pro¬
gramming has led to a substantial increase in color set
sales during 1959 and as
color set circulation increases
further, color programming is expected to
keep pace.
Like our parent
company, the Radio
Corporation of

America, NBC welcomes
facturers

Trends during

fr, the
in ♦£? electr.onic? industry and

National

accumulation

for

quarter

im¬

treat¬

destroy enemy ICBM's.

Improved

swing from seri-,

spending

(

front

new

avalanche

medicine, diagnosis
students

Board,

inventories,

tively to

auto¬

(9) Our national security will be
immeasurably en¬
hanced by advances in
electronics and atomics, including
the development of an
effective anti-missile
missile able

to seek

demands

debt, and

goods.

commonplace with
and other electronic
tools.

television

health—the

of NBC

for

weather

satellites'

Electronic aids to medicine will
the war on disease and
bring an

the

a
record high in our total
output of
goods and services and, in the view

fully

driving.

formations.

provements in preventive
ment of human ills.

5°w5f"lly influenced
of

possible

credit,

the

chores.

(7)

tour will mean

cultural and student
programs which
have succeeded
remarkably in shining the bright lamp
of
friendship in some dark areas of our
foreign affairs.
in
the final
analysis, our welfare at home will be

face

factory

Electronic safety devices for
highways and
the danger out of

gifted

come.
an

and

with electronic sight-and-sound
communications and entertainment.

cloud

be lightened

may

situation,

ROBERT W. SARNOFF
of

durable

David Sarnoff

years:

the world.

Accurate

will

equipment, and substantial hikes in

equipped

(6)

credit

consumer

come

concern

not

believe his tour will mean
any reduction in
Federal expenditures for
preparedness, because for some
years to come it will be
necessary to preserve a state of
readiness for any
our

ness

Electronic systems without
any moving parts will
cool the home more
efficiently, and electro¬
luminescent panels in the walls and
ceilings will replace
bulky electrical fixtures and cumbersome cords.
(4) New homes and
apartments
will

made

for

Banks will examine

business

and

(5)

Treasury

budget

long-term
be expected to increase.

liquidation

ous

the

(3)

ex¬

tending to the underdeveloped areas, will
spread
a
worthy image of our country throughout the
world, and

bank

;

nomic

they

mobiles will take much of

domestic

convince many overseas leaders
for peace and
progress.
i

even

events

(2) Global television in full color,
relayed by orbiting
satellites, will provide the home viewer with a
thrilling
window
heat

expanding steel output will be

availability of steel should also speed the highways,

bridges and
to

user

office

: T

high..;

broadcasting will share significantly
in the growing prosperity of a
year that promises to be
the best in the history off the American
economy. Dis¬
cerning observers recognize the signs of flourishing eco¬

developments
that

ten

run

demands

I feel confident that

America.
The chief

the

may

Chairman

(1) Super computers—smarter, smaller and
speedier
(by as much as a thousand times)—will take over
and

are

era

ahead.

certainly hope, as does
everyone, that it is accomplished by
voluntary bargaining. If not, the
President and Congress must
provide
tion.

tactics

Projects now taking
shape in electronics laboratories sug¬
gest these ten major developments
likely to affect all of us before the

revenue.

soon.

these

damaged by the resulting fall-

The present stalemate between
Steel and Big Labor must be

entertain¬

and

were, I am confident
will be
eclipsed

decade

total

more closely than ever their
lending to marginal customers, where the
earnings record or capital position of the company indi¬
cates a narrow margin of safety for a loan.
-

They helped
to
the Jet Age of commercial

close to 7,000,-

communications,

strategy

Impressive

the

for

extension

aviation, and opened to exploration
the infinity of outer
space.

steel

off

home

are

high. The rising demands for
upon a banking system whose

fall

comfortable

rowers.

defense.

usher in

the

been

the

modern

Our economy suffered in 1959 from
the

computers and controls continued to

the White House.

gress and at
'

saw

Electronic

1960

ments, whose needs and expenditures keep rising, and
individuals, whose willingness to incur debt is expand¬
ing consumer credit rapidly.
•
Certainly bank lending rates will continue to be high,
and will probably be increased, for all
types of bor¬

SARNOFF

broadened

dimension

new

in
late

Other segments of the economy which are expected to
add to the demand for credit are state and local
govern¬

the base of the electronics industry
by a series of spectacular break¬
throughs. The tiny transistor opened up a whole world
of miniaturization.
Color television added an excitin-

vastly

ment.

the present session of Con¬

The

will

1960

burden

capital

industry to record economic and financial

improvement.

The past decade

jhave already increased materially in 1959. While

business

Chairman of the Board,
Corporation of America

war

credit

prices

this

inventories,

reduction

remain

were adversely affected and many segments of
industry recorded losses. The acceleration of supply

and

their

expected to
Horace Schermerhorn

profits
the

Such

discouraged by higher money
total activity in this field is

rates,

the

expansion

est

1959,

services.

through the whole year.
specifically, this'prediction
supported by estimates of a ma-

for calendar

provement over the depressed levels

were

and

up¬

national

V 000 cars which looks high. Although
construction activity seems to have

rapid

gross

momentum. Estimates for production

;
,

Market
an

goods

indicate larger
outlays for plant and equipment. The
automobile industry is confident that
its 1960 sales, deferred
temporarily
by
the
steel
strike, - will
recover

dis¬

Boston

resume

1959. Current surveys

consumption and demand
a

Bank ,of

levels

new

contrast

Radio

missiles, taxes and such burning issues
as the steel strike
will determine in large measure the
health of business in the coming months. We who at¬

...

carry

terial

;

seriously affect

expected to reflect

prices

SALTONSTALL

peace, space and

ac¬

Over-all
is

S. Senator from Massachusetts

Federal

expected

electric power generation,
general industrial use.

and

DAVID

LEVERETT

confidence.

anticipate increased
consumption of coal for metallurgical

to its

ment deficits are controlled. Ambitious

HON.

trend

the production and sale of bituminous

coal.

Shawmut

is expected to

ward trend, resulting in
product-and total output

industry

continue

tivities

reasons

this important field may be overcome and progress con¬
tinue uninterrupted.
The

the

that

transportation, and

ex¬

a curb in that field. Fewer
housing starts
However, I feel that problems arising in

forecast,

Industrial production

outburst of industrial strikes. It

expected

improvement

is the question

■

the

SCHERMERHORN

National

labor

bene¬

than

buying is
;

HORACE
President,

sales and profit return—provided the nation is
spared a

national product will

Residential construction may pose a question
continuing number of homes built. One of the

averaging

growing

purposes,

billion dollars with all of its collateral

consumer

The bituminous coal

fits.

advanced

...

and

industry, we look for a rise in busi¬
from the present $14 billion to $16 billion in
1960,
and to $25 billion in 1965.
Such a rate of expansion
would
make
electronics
the
nation's, fastest

SALVATI

area

day,
k,

major industry.
V•' *:f. v
: • - •
As a pioneer and leader in this
industry, RCA expects
a
continued increase in'its own-business and
"profits
in 1960, and a virtual
doubling of its volume in the next
five years, as it expands
existing activities and takes
advantage of new growth opportunities.-.*'
?

will

Americans

a
.

In the electronics

of life

way

dollars

steady progress toward new prosperity for the American
people and toward the solution of our major problems

year.

quite possible that the

reach 500

are

economic

income

billion

increase.

long run depends on such public progress.
Of course, there is no easy solution to any of the great
problems that confront our country. But I believe that

During I960, I expect employment in my area to re¬
at present level.
During 1960, I expect farm spending in my area will
remain at present
levels.
So, I enter the new year in an enthusiastic conserva¬
tive spirit, believing that the Greater Trenton area is

extent

sonal

ness

main

It is

modernized

must

the interests of both the farmer and the consumer.

business

will increase.

1960

laws

the

new

increase.
I

Our

whole, there are heartening signs
strength as our output of goods and services ap¬
proaches the rate of a half-trillion dollars a year. Per¬
of

and
instance. A sound management of the
absolutely essential to an advancing

believe

debt

economy,

Thursday, January 21, 1960

In the economy as a

solid achieve¬

management, agriculture, education

rights, for

serve

termed

been

civil

national

will

produce

the

prospect that other

manu¬

color

sets in
1960, recognizing
greater acceptance of color will
have correspond¬
ing benefits to the
advertiser, the stations and the public.

that

During
of

1960,

television

tape

also

look

toward

networks

and

larger
stations.

utilization
The

use

I
Number 5918

Volume 191

...

The Commercial and Financial
Chronicle

already

made possible remarkable strides
flexibility of our operations. Ad¬
vances relating to compatibility and fidelity, especially
in the color area, are incorporated in RCA productionmodel equipment now being delivered to stations in
all parts of the country. We look hopefully, too, toward
the addition of television stations in many markets now
inadequately served. A long-term solution to this prob¬
lem ranks high on the "must" list for the government
and the television industry.
has

tape

the efficiency and

close of the old year,

With the

look

can

back

(351)

AS WE SEE IT
to be somewhat less ebullient

but

nonetheless

cheerful

has grown

from it

necessity
be
greatly stimulated by res-

toration of

inventories and

which

the 1 industry.-

around

NBC

in undertaking
systematic basis.
feel—and

have

and

such

through
any

..strike.

practices

the

part

grown

others

review

have

who

measures

That is the

course on

which

half

SAUNDERS
Western

Railway

We have now entered upon a decade that

Co.

promises to be

the most

exciting and prosperous in our history. In the
total value of goods and services in
is expected to rise from $479 billion to
billion—an increase of almost

next ten years the
economy

our

$800
100%.

Total

consumer

spending will

probably increase from $313 billion
to $500 billion.
Steel production is
expected to expand from 91 million
tons to 175 million tons, automobile

production from 5.5 million
8.6

cars

houses

from

1.3

million

In the

1.7

60's, the nation's transporta¬

40%, and the railroads will
unparalleled opportunity to
compete for the/ additional traffic
or

have

and

reverse

their share

public is

the
of

now

downward

ahead

trend in

intercity freight. The
acutely aware of the

excessive

regulatory and tax burdens borne by the rail¬
roads, and thq prospects are for more realistic regulation
and taxation.

addition, the railroads are making important prog¬
ress in improving freight train schedules and in adapting
service and equipment to the changing needs of shippers.
But perhaps the
most significant indication of more
flexible managerial thinking is the growing movement
the basis of costs.

■

the making

-V

Last year, many railroads experienced sharp
in traffic as a result of the steel
strike, but, with

declines
business
activity expected to surge forward to record levels
shortly, 1960 should be a good year for the industry.
This projection, of course, assumes no further interrup¬
tion in steel production and no long railroad strike. The
Norfolk and Western, for its part, is convinced that 1960
will be another
year of economic and industrial progress
for the
expanding territory it serves in the States of
Virginia, West Virginia, Ohio, North Carolina, Maryland,
and Kentucky.
In addition, the outlook is for substan¬
tially greater coal production this year than in 1959,
when the steel strike sharply curtailed demand, and this
should benefit the N&W, which now originates more
bituminous coal than any other American railroad.
I960

and

last

the transportation needs of its territory in
succeeding years, the N&W is now receiving
268
new
diesel locomotives
which were

ordered last year.

These units will completely dieselize

our

operations and provide us with the most modern
motive power in the railroad industry. In addition, we
are

adding

over

2,000

new

freight

cars a year

Continued

•

to our car

page

100

tne

remark-

cost

pro

country this year.
It
that

here

foreign
and domestic national policies

by the great have
will be es- our

created

our

difficulties

international

financial

one

election year.
reach a more

from

the
grassroots, and a lent, but full realization of
plainly spoken word at that, our hopes depends upon what
is likely to make it possible we ourselves do in the
for the budget
makers to premises,
reach really constructive

goals this

With Stifel, Nicolaus

year.

■//.V/
Cheap Money Advocates

paring
heard

to
in

to be

arbitrarily
and low
busy pre-

money
are

make
no

expected

themselves

uncertain

terms

CHICAGO,

111.

Petruzzi

become

has

—

Joseph

affiliated

®50e,LNiCi°n?U\^ ?on?Pany'
the New YoTk

s"?eet. members^ of
Midwest

and

Mr.

Petruzzi

Stock

Exchanges.

formerly

with

George
M.
Baker
&
Co.
Freehling, Meyerhoff & Co.

and

was

Safety Guaranty Inv.
(Special to The Financial Chronicle)

WEST

PALM

the

BEACH

Fla_

cut any. rrss Hattothed
might be made toward
Wlse

Secretary-Treasurer

true

beyond question.

given willingness on the

ticularly
union

the part of their
.a ,great, deal
done quite infor¬

leaders,

could

PROFIT

mally within the framework
even of current agreements to
reduce the cos\ of production

Now is the time to PROFIT from your

big deal.
Corporation has the financial resources,
the
experience, th£ imagination to answer "yes"
to
premium real estate offerings. If your office,
commercial or industrial property requires a
Glickman

throughout industry and trade

generally.

Eisenhower

The

that
can

has

let

intends

promote such

minimum cash investment of

your

The

informed

enced economists

fact
that
and
experi¬
seem

big PROFIT deal to

us,

$1,000,000,submit

first.

ex¬

pect very active business this
year,

accompanied

price

stability, seems to imply that
they expect such cooperation
in substantially greater de¬

Business

part of wage earners, and par¬

well

Real Estate is Everybody's

For

coura-

Even

into the markets of this

come

cooperation.

inc.

been felt much

ducing the goods which will

what

Knapp

factors

Consumer

increases

known

sential.

taken too much

Administration

Webb

geous cooperation
American public

recent months before

SSL

the

troublesome

banking and credit situa- safety Guaranty Investment Corp.
anything in the nature ot a ^jon? an(j the opposition party of West Palm Beach has been
business
boom
developed, has many of them It can not formed with offices at 223 Datura
What is more, labor agree- be taken for
granted that the greet to engage in a securities
ment after labor agreement in Democratic
party will not win roy, President; C. A. Anderson"
the past year has embodied this autumn and that in
power Chairman of the Board; D. M.
provisions which would j+ will not proceed to under- Higbee, First Vice-President; Wil-

meet

tude of the rank and file may

well determine the outcome,

kept under control. For this home.

prices as the time for the voting aphave shown a tendency to
proaches. The President's own
edge up from time to time party is not without advocates
even during the recession and
0f perpetual tinkering with

liberal
regulation, they are now putting to good use their
greatest competitive weapon—the ability to transport a
ton of freight cheaper than most other forms of trans¬

not

exist.

now

ICC

portation.

certain

heart.

able feat in conditions such

The railroads have tradi¬

tionally been low-cost carriers, and, with

whose business it

increases would be

of rates

year.

Development of a
Then as was
surging general level of busi- the advocates
ness
activity such as that now induced cheap
being predicted without price interest rates

Stuart T. Saunders

toward simplification of rate structures and

economic

Another trouble spot obviously is our international fiBut admittedly
there are nancial position and prospect,
certain flies in the ointment. We have in quite appreciable
it could hardly be that the degree priced ourselves out of
outlook is so uniformly
good foreign markets and opened
anci
so
completely without our own to foreign producers,
trouble spots as all this would Were it not for the fact that
appear to make it. If the ex- we have undertaken and still

into the future. This
fact would appear to indicate
that
the
continued
cry
in
some circles Vparticularly in
Washington —about the danger of inflation in the months

requirements should increase by

30%

govern-

Trouble Spots

is to peer

million.

tion

real

this

progress

usually placed well
1959, and more often

economists

million cars, and construction of

new

to be

thing this is position. A full realization of
Every effort our hopes for the year would
than not at least somewhat
to
satisfactory seem to rest in part upon the
better than the first half of
budget position will find success of the Administration
i960.
rough sledding in Congress, in getting greater cooperation
It is of particular interest to Of that we
may be certain, from other
countries whose
observe that there is no genOpposition to rigorous econo- economies have now grown
eral expectation of any very
my
in national affairs this strong in part with our help
significant rise in the price year will be opposed not only —or else in some other step
level whether in the wholeby the political opponents of to accomplish the same pursale or cost of living indexes, the
Administration
but
by pose.
That at least appears to be various members of the PresiThe outlook is all but unithe
consensus
among
the dent's own party. Only word versally regarded as excelabove

gains.
STUART

non

well purpose
intelligent and

somewhat less favored second

ing is entering a year—and decade—of fresh and steady

President, Norfolk

levels

above those of 1959. Even the

is set and all signs indicate that broadcast¬

the industry

1960,

year,

seems

qua

avoidance

mentally induced inflationary
sine factors. Here, again, the atti-

or dangers must be avoided and these lost markets woulc( have

industrial Production for the

the broadcasters themselves.

National Product

™°SS

the Federal Reserve Index of

government also feel —< that5 the most effective
method for preventing such occurrences in the future,
and for assuring the continued growth and maturity of
the medium, is self-regulation and self-development by
the

fact,

careful

page

are
very few
place such favorite pectations for the year are to undertake such large "unilatof business activity be
realized, a number of real eral transfers," the effect of

who fail to

followed

believe the responsible agencies of

Among the economists
willing to "stick their

are

neck out" there

and

continuing

general rebound following the
long and, troublesome steel

full recognition by broadcasters of
thorough and conscious review on their

for

need

the

I believe that

ex-

the first half will of

not characteris¬

was

medium in which it occurred.

pect in view of the fact that

quiz show deceptions—which victimized the broad¬
casters together with the public—as an incident, which
though shocking and reprehensible,

about

could well

one

the

tic of the

(Continued from

gree than has been apparent
in the past. 'Tis certainly a-

consummation most devoutly
to

wishecl.

It, in point of

Louis J.

Glickman, President

Real Estate Investments Far The
565

Fifth Ave.,

New York

17,

Investing Public

N.Y.

•

OXford

7-8300

The Commercial and Financial Chronicle

(352)

100

Continued from

page

peacetime
fleet, which already numbers 81,000 cars—more per mile
of road than any other railroad 250 miles or more in

(3)

Treasury had to finance the largest
in history.
At the same time there
heavy demands for consumer credit, for residential

investments.

were

The

Population

Aggressive

leognhDec.

Norfolk and Western
merged with The Virginian Railway Co., whose lines
complement the N&W's in the West Virginia coal fields
and parallel them for several hundred miles in Virginia.
The operation of the highly efficient Virginian in' con¬
junction with the larger and more diversified N&W will
result in savings of at least $12 million a year.
In
addition to these savings, the merger will assure better
and faster service for shippers and greater opportunities
for industrial development.
We are convinced that the
N&W-Virginian merger opens new horizons for our rail¬

share of

to expand

SIENKIEWICZ

Economic

The failure of the

amazing capacity of the
economy to perform at high levels
in spite of the prolonged steel strike.
Production, income and consumer
showed

generally

buying
tained.

reflect
held

rapid

of total

the

re¬

frequent

This

and

and household appliances

sold.
whole probably will
be well maintained in spite of rising building costs.
But
housing starts may decline somewhat. Among the re¬
tarding factors in the residential market are higher costs,
are

oversupply of houses in some areas, and
scarcity of mortgage money generally.

the

growing

Expenditures by the Federal Government, on the other
hand, may be reduced somewhat under the pressure to
balance the budget. Total government purchases of
goods
and services, now approaching $100 billion or about onenational

nation

all, it

this

trillion,
of

all

have

tre¬

that the total gross product of the
exceed $500 billion or one-half
record

will have

decisive effect

services

The

sum.

thus

and

general

billion in

$100

trend

the value

the

purchasing
Any increase in overall prices will

level

hand,

products and

and

increases

prices

thus

far

refundings.
might

the past.-

Similarly,
porations
lion

also

processed

items

food

industrial

items

the

one

other.

general level of consumer retail prices, however,
has been rising since last
May, with sharpest increases in
the cost of services,

particularly medical

trend

care.

prices is likely to be upward. For one
business boom, competition for labor and ma¬
terials becomes vigorous and
managements may slacken

thing, in
their

attention

costs

and

increased costs

pass

efficiency

the

bank
take

rise under the
increased squeeze on

credit

also

will

long

they

consumer.

Should prices
and

adds

further

pressure

profits,

expand

the

further

higher costs
demand

because

for

will

rates

bond yields.

lation

1930 s,

the

appear

But when
compared

erably

and

rates

the

from

lower, largely because
interest

borrowings

and

the

war

and

the

rates

bonds

in¬

1951,

rates, they still

loans and

re¬

depression of

postwar years until

with the earlier

return

the

during the
in

which did not exist in
the 1920's.
The rapid rise in

heavy

and

be high only in

artificially low rates in

flationary pegging of rates
lower

tion

aggravated
in

the

Sources of

Treasury bills

vide

cash

domestic business

likely to unload

for

their

lean

create

securities

current

will

rates

and

(1)

cost

pro¬

then

commercial banks
limitations.

ceiling to provide
financing, the inevitable
in

short-term

servicing, and (2)
inflating credit supply.

aggravated

depreciation

the

increase

This may

value

the

dollar.
The

how

•

finance

and

fac¬

increasing reliance on bank
lines, subordinated debt and common stock, while longterm unsubordinated debt and preferred stock seem to
be declining in popularity.
an

Mainstay
of the industry's own borrowings are the
banks; approximately half the resources of commercial
finance and factoring companies come from short-term
bank loans. While this money is borrowed in wholesale
quantities, it is lent out in retail portions to businessmen
all over the country. The commercial finance and factor¬
ing companies regard themselves as "viaducts" of the

banks, serving

channels through which

considerable amount of bank funds flow to

industry and

commerce.

interest

funds for the commercial

toring companies indicate

commercial

W\%

debt

in money supply by
mean

hold

Treasury

The

certain

further rise

cor¬

now

upon

Unless the Congress lifts the
greater flexibility for Treasury
result

they

needs.

for support

credit within

expands,

portion of the $21 bil¬

any

(New York): and Bankers Commercial Corporation

The finance
sales
the

industry—including the consumer loan and
sectors—collectively has been and still is
single industry customer of banks in the

finance

largest

country. In 1959, the industry accounted for about 3% of
the total commercial bank loans.

crucial

problem

willing and able
of

control

dollar.

our

that

confronts
to

are

can

expect

therefore, is
purchasing

determined

President,

integrity of the dol¬

reasonable

stability in interest

rates and in the general level of
prices.
demonstrate fiscal

But if

fail to

responsibility, continue to insist on
public spending without
providing funds for it in a
period of active business, and allow
excessive credit
expansion generally, then the
consequences will be to

stunt the

orderly economic growth by
encouraging spec¬
ulation, discouraging savings and investment for
growth,
and by
weakening the confidence in the value of the

dollar at home and abroad.
this condition to

HERBERT

the

really

inflation and safeguard the

lar, then

us,

defend

are

Obviously,

cannot permit

develop, particularly in the

competitive economic
struggle that is
throughout the world.

now

face

of the

taking place

of continued

year

ahead

for

serious

Continued

pansion
1958.

labor

might

SILVERMAN
Talcott,

business

Nineteen

expansion
if

steel

looms

there

the

1960

settlement

strike.

unrest

might conceivably halt the
in the Spring of

bring

even

about

contraction.

new

Inc.

accelerating

the

that began

James

and

American

aftermath

was

fifty-nine

ex¬

year

recovery from recession and, in
of the unresolved

spite
labor-management

dispute

the

over

wages and

THEODORE H.

future

level

control of the production

process, a year of definite expansion.
But
money
costs
of

^President, Standard

continued

SILBERT

Financial

Corporation

factoring companies of
supply working capital to
growing
small and medium-sized
businesses, experienced their
greatest year of activity in
1959—despite the steel strike
The
volume of
business financing
through the finance industry in 1959
$12

billion.

$400 million

This

over

was

gain of

and

was

years

was

For
and

factoring will

for four

were

For these

level

are

consid¬

heavy income tax
since

1958

reflects

lagging rate of savings for

customers

and

re¬

expanding their sales—
because of tight
money, are de¬
manding longer terms to settle their
bills. Their suppliers will
need

look fo'r 1960 to be

a
period of
expansion, of consolidating
its cost rises, of discounting

Theodore H. Silbert

this situation, a somewhat
higher
investment may be expected.
field, the commercial and industrial finance
factoring industry, should continue to outrun the

steel

shipped

semi¬

will

rise

new

signal

strong

many

types

other

industries
of

services

manufacturers

factored

approximately

record

commercial

1959

level

finance
served

1960,

industry
S. and

our

in¬

has

clients

Canada. The

vir¬
num¬

has

offered.

expanded, as well as the
"Non-notification" factoring

one

income-producing machinery, which

new

$12,200,000,000 in
approaching $13,-

several

will be

sources.

sales financed
from

tually every section of the U.
ber

throughout

postponed expansion. They

000,000,000.
The

are
generally down
today because of the steel strike in
1959, they have begun
to turn upward with
resumption of steel production. To
carry larger inventories before
they are

cash.

curtailed

dustry

remained

stride's leveling of activity. Agreement

should

We expect that

1959

additional working capi¬

own

seeking funds from

tal to carry this
increased business.
(2) While hard goods inventories

goods, will require

rises.

despite the steel

re¬

but

finished

H. R. Silverman

amidst

general economy.
Demand for funds

grow

and

deter¬

business

reasons:

(1) Industrial
tailers are

reasons,

digestion

cost

Our

financing

continue

settle-.-

difficult, if ^not
impossible, for many companies to
pass on increasing costs.

offset

financing,
factoring. Ten

commercial

will

gains and fighting
losses, of using production and marketing economies to

volume of busi¬

the proportions

1.960,

industry

the

whether further rises must be
reckoned with. An
ending of uncer¬
tainty will release a flood of goods.,
that will
make
it

commercial

billion

ago,
versed.

Only

1959

financing done by the finahce
industry in 1959, approximately $7
billion

rise.

basic

economic

1958.

Of the $12 billion

mine

The 6,000 commercial
finance and
the
nation which

was

ment

resume

the controlled

bank loans do. As customers pay

Top four companies specializing in accounts receivable
financing and factoring, with capital funds of at least
$10,000,000, are Walter E. Heller & Co. (Chicago); James
Talcott, Inc. (New York); Standard Financial Corpora¬

upward

,'V,.x

as our own

are

interest rates

bills,

(New York).

invested

now

the

ness

money for current operations—to
buy raw
materials, to replenish inventories of finished
goods and
to meet payrolls.
The total of bank loans
already has
reached a record volume of
peacetime and resulted in
tight money conditions with
rising interest

Current

financing usesloans, and requires

collateral for

rates.

';,x

the short-term

has

The

Commercial

production

wholesale

invoice.

the

receivable

The heart of the

1960.

relatively stable but this stability reflects declines

farm

can

to inflate the volume.

been
in

bound

stupendous

course,

goods and

The

will

of the dollar.

power

tend

income, are
the economy.

seems

year

truly

prices, of

these funds flow back to the manufacturer
and are used daily to liquidate the loans from the com¬
mercial finance companies.
;
:
.>
>

its operations

by foreign interests. Business abroad is ex¬
panding vigorously and the demand for credit is increas¬
ing.
As interest rates rise to attractive levels there,
foreign funds may leave this country as has happened

power

Spending by state and local governments, which rose
rapidly in recent j-ears, is expected to increase further.

their

hamper the effectiveness of the Federal
policy, and disturb the financial markets

pressure

have

terms

periodic cleanup

notes

can

All

under

expansion

would

fourth

will

accounts

confine

of commercial

financing and factoring is to
provide growing companies with immediate cash as soon
as
they ship_ their goods to their customers—thereby
eliminating the wait of 30, 60, or 90 days for payments

which

predictable, the buying attitude of the con¬
optimistic, though may be on the cautious and
selective side. The threat of work stoppages and loss of
income
always
create
uncertainties, particularly
in
larger industrial centers.
Buying on installment has
been increasing and is likely to increase further as more

mendous effect

increase

withdrawal of the funds

upward.

The heart

less reached about $80 billion in

one year or

will

and

construction

forced

light metal products, electronics, chemicals
textiles, paints, : cosmetics, sporting goods,
equipment, shoes, furniture, plastics, automotive

drugs,

parts, aviation parts, paper and paper products.

short-term

precisely

volume of

and

man¬

'j-

to his customers. As a result, the manufacturer does no
waiting to collect his receivables; the waiting is all done
by the factoring company.

will stimulate the demand for goods and services.
The outlook for trade generally is good. While never

The

the slack and provide the interim cashx

processing,

maturing is¬

financing will take

Major financing by commercial finance and factoring

excluding

refinanced.

immediately than wait

Commercial

companies in 1959 went into the following manufacturing
industries
(in order of importance): machinery, food

This year

securities,
to

to cover attrition

pressure on short-term interest

patricularly in
using products, will be vigorous early in
it is at present. Plans for business capital

passenger cars

have

collect.

factoring arrangement lies in the sale
of the accounts receivable to the factoring
company im¬
mediately upon shipment of goods by the manufacturer

C. A. Sienkiewicz

stocking of goods, these expenditures will have an im¬
portant effect on employment and income in that they

sumer

will

money

Reserve credit

unemploy¬

being revised

marketable

rather have cash

nies will reach $12.5 billion.

cf the
economy,

civilian labor force.

are

$290 billion.

some

would

office

of these four-reasons, ;; the
I960 volume of
financing by commercial finance and factoring compa¬

huge volume of floating debt in a period of
is inflationary because short-term
securities, being as good as money, enlarge the liquidity

is about 25% smaller than the year before.

expenditures

the

business

Business buying to rebuild inventories,
as

sorts

sell a larger
working capital

Because

bonds of longer ma¬
turities than five years at the fixed rate of 4^4% in the
5% market where investors demand higher returns. The

Such

steel and steel
year

all

the

36 months

icit in the second half of the year.
It is virtually impossible to sell

1959

ment insurance benefits in the Phila¬

the

resort

market, will require

production and sales.

who
or

remove

must

manufacturers endeavoring

the

same token, increased instalment
buying
big-ticket items ranging from autos to washing ma¬
chines, will require financing for distributors and dealers

redemption of savings bonds and for seasonal def¬

sues,

maturing in

stoppages, including the steel strike.

area

new

the

Unemployment, mostly frictional, has
aggravated
by
many
work

delphia

need

has

been

The number of claims for

also

from

productive activity
goods.
Employment has continued at

hence

and

billion

$48

which

recovery

down

95%

order

risjng, resulting in in¬
goods output of alT sorts.

financing at increasing interest rates.
The volume of short-term securities thus is
growing at
a
disconcerting rate.
Outstanding marketable issues

most durable

bills, will mature and

sus¬
conditions

of the steel strike

effects

consumer-

the archaic re¬
the rate which the Treasury is permitted to

Congress to

Treasury, therefore,

well

were

business

Current

(4)

for long-term money is, in a sense, anotner straw in
wind to those who fear that we cannot keep our

about

activity in the year ahead is likely to continue
at record high levels and may even reach new peaks in
some
areas
in the early part of the year, if the steel
strike is settled
early and other work stoppages are
averted.
The
year
just
closed
Business

not

alike.

aging the national debt of

Inflation

Growth Without

whether

dubious hedgings to protect our savings.
The Treasury faces a very difficult problem

Chairman of the Committee for

ABA

large deficit in a prosperous year, the growing
rigidity in the cost-price structure, the continuing down¬
ward creep in the value of the dollar even in the re¬
cession, the shift from fixed dollar claims to equities
as a hedge against
rising prices—these are elements that
engender an uneasy feeling among savers and investors

the

Philadelphia, Pa.

ahead

The

house

National Bank,

issue

willing to adopt inflation

life.

pay

critical

as a way of our economic
Recent developments are disturbing in this respect.

are

striction

it serves.

President, Central-Penn

strike, for public works and other welfare projects.

The

the

year,

territory

the

and

road

last

mortgages, for inventory building in anticipation of the
steel

keep

curves

demand for

creased

deficit

Thursday, January 21, 1960

techniques. Another, the leasing
makes its

bene"

Number 5918

Volume 191

The Commercial and Financial
Chronicle

without depleting working capital. Our
providing interim financing in conjunc¬
public financing, cooperating with investment

available

rtc

nmDailies are

tion

With
liking firms in

the same way they supplement

com-

Scial

banking facilities.
The year ahead will offer many new opportunities for
in this
industry since their extrejme flexibility
firmliquidity will be especially needed. They can conand
■pntrate investments in active, growing fields and transfPr readily as conditions change. The industry's forward
1

that funds may be made available
where needed and in the
wnere neeaea ana in

assure

planning, towhen
clients

problems.
"
forward planning augurs well for the industry's
rontinuing growth abroad, as interest in industrial
financing in other countries grows out of increased
activity in the field of international trade.
r
,
AS for our own company, which has been financing
American industry for 106 years, the prospects appear
promising. Volume and net income set new records in
1959 for the eighth consecutive year, and our receivables
outstanding at year-end were-the largest in the com¬
pany's history. There " is "every indication that James
Talcott, Inc. will share fully in the industry's growth
]960's

This

neld

laundry

rapid popu¬

Another reason for the

reduced,

*u^ure

r»u*i

ing

year.

• \*

•/

probably continue

ices

government

been for

business

case,

higher

our

•.

present

than

has

ther wide

sixty gives every indication of the materi¬
a
deep water port and an Inter-American
Center, all designed to provide both
tourists and residents with every
possible cultural and
economic facility.

better

South

major

The

here

in Florida

Tourists

and

convention

warm

temperature

We look for

many

sunny

Ross D.

the

Siragvisa

past and

should

of transistor

radios

We are more confident
time since the Jap imports

cost basis and can produce

on a

Florida.

move

and

Florida

south

flow

our

make

Florida's

has

and

also

is the

building

6,000 people.

ments

a more

will

cen¬

ad¬

been

the

largest

number

our

that

south

portend
might well

Florida.

Complacency

reminiscent

Law

defeat

may

enforcement

much
at

of prohibition

management

days. Strike settle¬
and-labor forced through

free

survive.
devote

Miami

modern

Beach

society

not

ballot.

Unless
the

over

enough

another.

that

pay

taxes

and

cast

free

the

society must govern itself to
more
gifted members of society

time and energy to preserving their
political freedoms that they do in preserving their busi¬
ness profits, we shall find that the business of
govern¬
same

left to
second
class
citizens with second class
minds will produce a second class government incapable
of competing successfully with the best minds of the
totalitarian governments.
ment

Nineteen

progressive

1960

sixty

can

years

and should
history.

one

Continued

air-conditioned

the

most

page

102

product than the imports.

substantial increase in commercial elec¬

expanding its research: and
during the past two years

engineering departments
obtain more of this

business.

the

two

per

family
buying

effective

Color television will continue to grow and

Island

elections.

bond

between

tronic sales and in the production of equipment for the
Armed Forces in
1960
and have invested
heavily in

rapidly

government.

occasional

mainland

growth

complacency on the part of its citizenry toward
solve the many responsibilities of local and

local

ebb

completion

conventions

to downtown,'
bridges and cause¬

access

the

and

income

government pressure invite new strikes and release
dangerous inflationary forces. An economic imbalance
is created where government appears to favor one side

Conventions booked for the slack season
help
stable economy. More than 300,000 per¬

attend

Beach

residential

middle

level out the flow of tourists into Miami Beach and

sons

needed

low

and

for

threat that faces all communities in America.

same

helping

Miami
Frank Smathers, Jr.
Beach.
In addition to this facility,
which can accommodate almost 20,000 people, many of the larger hotels have their own
exhibition halls and dining rooms, some seating as many
as

construction

New high speed

Manhattan

the

national

multi-million dollar convention
exhibition

under

are

greatest threat to Dade County's economy in 1960

This is

growing labor supply.

visitors

The

indus¬
to

commercial

skies

take

units

between Miami

ways

Another

is the moving of many

County freeholders if the

areas.

and beaches.

ocean

blessings to count.

attracted

goers

Dade

They are designed
families who desire quick and easy

where

favorably

and

have

year

caught.

thousand

business

challenge for our society is that those who
enjoy its blessings must respond to its obligations. Busi¬

accelerated by the recent

huge

SMATHERS, JR.

nessmen

this

voted

thief is to be

1960

The

news

Japanese sale

better performing

will expand
three years than in

the last six.

percentage of

power

manufacturing employees

appliance
the

outlook

also

bullish

for

1960.

One

caused

total

by the long steel strike
which seriously depleted inventories at all levels. [ v
vacuum

^Admiral is in stronger condition today than at
time
in the past four

will increase in
at

1960 at

population

any

five years and we believe profits
a faster rate
than sales. Inven¬

their lowest

factory, distributor
geared for

growing population has created one
vehicular traffic congestion.
It is

perhaps the greatest thief of time, money and lives for
County's million people who fume daily along its
inadequate highways. A $100,000,000 road program must

President, The Miami Beach First National Bank,
Miami Beach, Florida

compete

are

Our transportation
problem has resulted in a new
housing trend. Large apartment buildings with as many

provide

tories

Florida's

problem

Dade

good business year.

vantage of

1960.

the

their

increase two years ago. With our
suppliers and ourself completely automated we can now

The

with

In summary, the outlook for the consumer
goods in¬
dustry during 1960 is fairly optimistic with prospects for

tral

and

commendable

of this situation than at any

reason

system

Trade and Cultural

ing business at present and we expect it to become even
more
important in the year ahead; in fact, transistors
will be one of our major
product lines in 1960.

tries and major corporations

angle

television

been

believe

school

Nineteen

alization

ofhas

The semiconductor field should continue to
expand in
1960, particularly as regards transistors for military,
commercial and industrial applications. This is a boom¬

begin to level off during 1960.

public

natural attraction for research-minded
industry. The
University also provides our citizens with entertainment
ranging from good football to symphony and opera.

time.

some

south Florida's other bless¬

county-wide

backlog

own

addition to its climate,

buildings and good teachers, unsurpassed medi¬
cal and hospital facilities and the
largest private uni¬
versity in the South.
The University of Miami has
research facilities ranging from medicine to
electronics,

is no lessening anticipated in the
military need for the products and serv¬

industry. In Philco's

the

are'also

modern

Consequently, there
government and

concentrated.

are

conventions how extend their visits to include their

ings include

need for military preparedness will
unabated for a long time to come.

wipe

this country has just about reached its peak and should

world

vacation time.

Unfortunately, the

trend

of these

coverage

started

ness

optimistic

found that 80% expect either to visit

radio receivers in 1960. Network and

••

the

beneficiary of a changing vacation pattern in America.
Increasingly large numbers of persons attending busi¬

the combination washer-dryer. In

are

is needed to clean

sales

even

highly

are

glare

tube, the political conven¬
tions and elections will be important

the

tube.".

the

addition

local

and

rooms

throughout 1960. Air condi¬
tioning should be another improving field for the com¬

23-inch

events

stereo

becoming' permanent residents
growth rate second only to
Nevada's. One of our nation's major
corporations recently surveyed its
employees for retirement plans and

only

and

soft cloth

stimuli

•

one on

safest
Reflection
and

front of

in the

.■

are

larity growth of the 23-inch tube is
the fact that the bonded safety glass
makes the tube the

business

FRANK

equally divided between the 23-inch and
21-inch sets. By the end of 1960 approximately 75% of
Admiral's television sales will be in
23-inch models which
provide an
almost rectangular picture.

the

Philco's case, our
greatest sales increase last year was in
the area of our Duomatic
combination model and we look
for this trend to
continue

ROSS D. SIRAGUSA

sales are about

with

improvement

a good business year for the
appliance
whole. Prospects are
particularly bright in the

Chairman and President, Admiral Corp.

visibly

for

anticipate
as

nome

Television sales in 1960 will be spearheaded by the new
wide angle 23-inch picture tube. Our current television

market.

look

101

I960.

needed,
neeaea,

wnen

needed, will enable many clients to cope wi$hV

amounts

and we therefore
field during 1960.

(353)

and

IMS

poipt in years and our entire
dealer

sales

organizations

are

healthy 1960 operation.

per capita

per

capita
research

industrial

laboratories

patents granted
JAMES

SKINNER, JR.

President, Philco Corporation

Barring

a resumption of the steel strike, 1960 promises to
reasonably good year for the consumer durables
industry. We do not look for a drastic change in any

phase of the

industry but

the

continuing interest

the part of the con¬

in electronics
sumer,

CONNECTICUT

good steady business year.

Naturally,

fed by the publicity given the

military's

use

and also by

electronic

devices

the challenging new de¬

velopments of industry research, such
as
transistorized
battery - operated

portable television sets, is benefitting
the
home
electronic entertainment

prime contracts awarded

field.

per

capita military

Radio should continue to be a

good solid business in 1960,

with in¬

in percentage of
skilled workers to

total

creasing emphasis on sets using tran¬
sistors. 1 Television sales
showed a

workers

slight increase last year and although
we
do not anticipate any great up¬
M.

Skinner,

Jr.

ahead. The lag in sales of stereo°mc-high fidelity instruments is traceable in part, we
.» t0 confusion on the part of the consumer about the

t)hr

ilS)c

per

capita

personal income

e°ncept of stereo, what it is and how
deal of consumer education is

it works. A
before this
sic
understanding of stereo takes place, but once it is

mieved, we expect the business to come into its own
eooa

J. t
I

do expect perhaps a mod¬
est increase in sales during the year

swing,

necessary

Address

inquiries to:

Power Company,

Area

Development Department, The Connecticut

Light

and

P.O. Box 2t)10, HarrfPrd 1, Connecticut. Telephone MOhawk 6-2431.

102

The Commercial and

(354)

Continued jrorn page

record.

101

forrest

production is also headed for a good year,
estimated at 1.3 million units.

Antonio,

Texas

San Antonio,

;

San Antonio and its trade area have

business

good

year

will be

indications that

1959

activity.

clearings

Bank

new highs each
merchants are reporting

hitting

are
month and
record

are many
year in business

record

encouraged businessmen to
raise their capital spending plans. While not of the same
magnitude as the 1955 upsurge, business spending on
plant ancl equipment is growing, and this can be trans¬
lated into increased consumption of steel in the ma¬
chinery, industrial construction, and railroad equipment

there

Locally,

1959.

volume of

sales, with em¬

industries.

excellent vblume of
Christmas business.
Operating costs
continue to mount, which, of course,
reduce net profits.
Although sales of new automobiles "
have lagged
because of the , steel
strike, business in the automobile
phasis

line

has

the

year.

trade

Our

territory has likewise experienced

restrict

with general business conditions continuing
real estate developments. A
much better type of accommodations is being provided
visitors and tourists throughout the territory by means
of more modern resort-type motels and hotels. Livestock
conditions continue good, with weight of animals reflect¬

and with much activity in

well

yield of wool and mohair have been most satisfac¬
While cattle price have receded somewhat from
their highs, other prices incident to the livestock indus¬
try have increased to form a generally satisfactory live¬
stock operating year. The agricultural areas this year
produced the second largest cotton crop in their history
and also, for several years, the largest marketed citrus
crop was produced. This year again the Falcon Dam has
proved its necessity by assuring and furnishing an ade¬
quate water supply for all agricultural activities. Vege¬
tables in general measured up very well, although some
early crops were damaged by weather conditions. Prices
have been af satsifactory levels. Machines and mechani¬
zations are becoming more prominent in the production
and harvesting of crops. Diversification has been a most
important factor in the growth of the Rio Grande Valley
and our surrounding area.
Our trade

john

opment.

deposit increases,
with
highs in their growth.

Valley

banks

showing

record

Many of the important national business and industrial
are looking more and more into the favorable at¬

firms

tributes of San Antonio and

great South and South¬
Industries from many areas are interested
in the excellent living conditions prevailing here. /

west

our

empire.

approach

1960,

expect

favorable

business

conditions to continue well into the

new year. Our
popu¬
business enterprises are being
constant growth in all phases of our
community life. With the backlog of demand for many

lation is

increasing,

added and there is
items

created

at a very

good

flation

new

by the steel strike, 1960 should start off
pace businesswise.

During all of

excellent growth and prosperity, in¬
to be the great hazard to our future

our

continues

Seaboard Air

;

our

believe it will be that, providing that
research, new
product development and the gains in production that
7
should be achieved after years of
I

modernization

cilities
for

must

any

set

Company

take i into
be

can

account

beneficial effect

economy generally, and will result in
-at hew annual record levels in order

satisfy

anticipated

demand

output

operations in this

ample, the pulp and
—one

7-''

key

dollars

and

—

source

this

cies

tion in this

where

there

unusually

are

smaller

numerous

favorable

conditions

gested

activity.

found

Cost-conscious

Florida's

its

pulling

power

man¬

for

seem

business
to

assure

general,
strong de¬

Latest major development
million

mand for steel mill
products in 1960.
a

Minneapolis-Honeywell

Reflecting their rising incomes and
willingness to continue to expand

personal debt,
consumers
will be
spending at record levels this year
and this will mean
high levels of
output in such important steel markets

tries..
and

the

stallation
near

John F.

Smith, Jr.

of both

new

compact

automotive experts look for

production of nearly 7 million
passenger
which

would

make

1960

the

second

just

getting

West Palm Beach.

under

cars

this

best auto

year

Administration

Sen. J. J. Sparkman

went

buy

our

times

told that

field

housing

grow

increas¬

population continues to

expand.

the

past

years

higher interest rates

the nation
home loans

loosen the flow of
mortgage money and make it
borrow money to buy homes.
Interest rates
up,
but it has become
increasingly harder to

home.

1953 FHA's

5%%-—35%
and

had

economy.

the

easy

become

maximum

higher.

builders

mitments

rate

Despite

was

4V4%.

this, discounts

Today it is
are
rising

finding it hard to get advance com¬
1960's houses.
This situation could
instead of better in 1960.

are

build

worse

Housing starts

falling off and may continue to do
through a good part of 1960. Home
building is one
of the best producers of
jobs in our whole economy. A
.continued depressed condition in
home
are

in¬

prove

way

It will house

serious

Fortunately,

research and
develop¬
ment center for the
company's Semi¬
conductor Products Division.

building could

matter.
our

country

bilizers which bode good not

future

has

lot

built-in

only for 1960 but the

sta¬

entire

the economy.
I refer
road retirement and
programs

As for Florida Power &
Light Co.,
we
estimate that our 1959-60 con¬
struction

approximately

the

problems in

number

would

structure

program will approximate
$153,500,000 of which

what

has been

and advanced

automotive, appliance, and container
indus¬

Encourag^, by early
standard models, some sales

gone
—

business operation.
Higher interest rates have
repressive effect on this segment of our
The

new

in
a

picture

get

tax

income has

farm

and

ingly complex

manufacturing plants and major
expansions have been added. Indus¬
trial payrolls climbed from
$544 mil¬
lion to $745 million
annually.

fact, together with the favorable

The

his

professional and skilled workers.
In the past three
years, some 2,000

outlook

farmers'

are finding it difficult
capital in order to expand. However, they are
becoming seasoned to the pinch of tight money. Through
legislation passed during the last few years small busi¬
nessmen
are
becoming more able to keep their busi¬
nesses
going. However, it is still a struggle and the
substance of that struggle hinges around the small busi¬
nessman's inability to borrow at a reasonable interest
rate, the necessary money to improve and modernize

recruiting

This

the

The nation's small businessmen

for

Light Company

sonable

would

and expansion.

favorable

economy.

the

its

about

Congress wants is too
great to be bridged sufficiently to
offer substantial
relief.
Inadequate attention to the problems of the
family farmer can have an adverse effect on the entire

population is growing fast. Yearis increasing steadily as
industry
discover the beneficial character of

including

disturbed

farmer, the small
businessman, and the home construc¬
tion industry.
Farm prices have continued to rise

between

permanent
to

desires

employment
economy,

gloomy one—will not change much
for the better, if any, in 1960.
The
problems are complex, and the gap

McGregor smith
&

•

Alabama

1960

downward.

greater
development to take place in these less con¬

Chairman, Florida Power

hold costs

what

while

are

pres¬

can

holds for the

1960

areas.

If the

sparkman
From

particularly

communities

are

john
Senator

future does not look too good.

into

certain to direct greater attention toward
those possibilities and it is
logical to expect still
industrial

1960,

are

section, have frequently enlarged those facili¬

section

just

early

looks prosperous for
most segments of our economy there
other
segments for which the

the

almost as
soon
as
production commenced. This
demonstrates, perhaps more clearly than any other evi¬
dence that might be offered, the
outstanding opportuni¬
ties the area provides for successful
operation of manu¬
facturing and distribution enterprises.
Another "plus" for the Southeast stems from
industry's
discovery that lower costs and more efficient production
may be achieved in small towns and suburban areas. In
this

progress as
opposed
boom and bust cycle.

While

year

for

good.

appears

steady

any

ties

and

116-day strike, are still below rea¬
working levels and their re¬
building
should
extend
at
least
through the first half of the year*-

outlcok

with the attending dangers of inflation but
there
factors which may serve to slow the
pace and make

for

potential of the Southeast for fur¬
ther commercial growth, one aspect of
past development
takes on particular significance.
It is the fact that so
many national concerns, upon establishing a first opera¬

continues

inventories, depleted by the

profit than the

Our

strike is settled every sign points to
1960. Certainly there will be boom tenden¬

prosperous

are

ex¬

expansion
run

1956, each
1959, had a

Member, Joint Economic Committee

is moving

will

and

Now that the steel

the

ties of the region.
In appraising the

State's

Steel

net

,1955

sales, than

line, the first half of calendar 1960 will be another
period for Keystone and its 3,500 employees.
7

long-term impact of these
expenditures will be felt throughout the economic activir

round

year.
-

past.

hon.

industry

elements

substantial

the

For

area.

and

banner

rr'-'l''"

paper

economy

with

New investments by this

programs.

millions

the

Southeast's
ahead

the

steel

Even

however,

Adding substance to this view is
the unabated interest shown
by busi¬
ness concerns in the establishment of
new

are

in-'l

all-time high sales
record, yet
profit was lower than in past

lower

better
Reuben E. Sommer

cleared, then

labor, taxes,

net

with

enjoyed

in the recent past.

industry
interruptions dur¬

years.

1960 may well prove to be one of the
better years the region has

Settlement of the labor
controversy in the steel
eliminates the threat of further work

ing 1960. This is bound to have

fa¬

question of major labor disturbances.
If those hurdles

by continuing

deterring factors in the
hoped for growth of our national
prosperity.
•
<
Let me cite, for example, our own
situation at Keystone. Last year we

prediction for the

sustained high level of business activity

materials,

ent trend of business continues and if

year

John W. Smith

expansion

offset

becoming

lent.

smith, jr.

raw

terest, etc. \".

look

and

not

are

inflationary trends. Rising costs

1960.

course,

;

general the American people look upon 1960 as
tjie
beginning of a decade of real opportunity and promise;

■

Summed up, both the short-term and
long-term out¬
for economic growth in the Southeast are
excel¬
The region can look forward with
confidence to a

secure.

President, Inland Steel Company

President and General Sales Manager,
Keystone Steel & Wire Company

results in

agements

that budgets are balanced through reduced
spend¬
ing. All of our forms of government—national, state and
local—should be on a safe and sane fiscal basis if

Railroad

.:y*

'71'77.'yy

smith

Line

.7,; y

sommer

tinuation of the upward trend which
should produce even more favorable

varied kinds of industrial

Every encouragement should be given to
representatives in the state and national congresses

see

john

v/'

116-day nationwide steel strike. Business in general was
better than in 1958 and the present outlook is for a con¬

our

economic future is

yvyy;

our

well-being.
to

y.:.y

Nineteen fifty-nine was another year of substantial in¬
dustrial activity for the Southeast, notwithstanding the

favored

with competent banks and
prominent part in its devel¬
Banks in every section have shown substantial
area

system capability to 2,428,000 kilowatts
in the five year period sinca

our

would be equivalent to an operating rate of 87.5%.

President,

1962.

140% increase

the year's
total output up to a record of about 130 million ingot
tons. This compares with about 93 million tons in 1959
and the previous high of 117 million tons in 1955. Based
on
a
capactiy of 148.6 million tons, our 1960 forecast

tory.

bankers, who have played

1957.

ingot tons. ■; While we do not expect this level
operations to hold up through the balance of the year,

1962—a

pros¬

Increases in number of animals

the second half should be good enough to bring
1

300,000 kw addition to the

will increase

tend
steel

million
of

the

complete the most successful and prosperous
year in our history, we look confidently ahead to 1960
and the years to follow.
Recent additions to our system plus the new generat¬
ing units that are now in various stages of construction

industry prob¬
ably being the most vulnerable. Housing starts are ex¬
pected to decline about 10% from the near record level
of 1959. Also during 1960, the steel industry expects to
continue to face significant competition from foreign
steel producers in both our domestic and export markets.
/ Nevertheless, adding up all the pieces, a record steel
production year is in the making for 1960. We estimate
that production in the first six months will reach 70

perous year,

ing increases.

.■

further into 1960, tight money may
some
of the anticipated expansion in

move

construction of

markets with the residential construction

been

generally very good*
The building industry, both residen¬
tial and commercial, has been slowed
•down—again, one of the reasons be¬
ing because of the local strike—but
also because of the higher costs of
financing.
Problems in the oil in¬
Forrest M. Smith
dustry continue to exist, resulting in
reduced activity in leasing and drill¬
ing. The demand for loans continues brisk, and this con¬
dition is likely to continue during the near future months.
All in all, San Antonio has enjoyed a very prosperous

work

Riviera Plant, scheduled for completion in May of

total corporate earnings have

experienced another

Plant

which went into service last May.
Also in the program is construction on the two
240,000
kw units at the new Port Everglades Plant, plus initial

The outlook for the capital goods markets, which are
especially important to steel, is also promising. Rising
sales, increased cash flow from depreciation, and high

smith

; Thursday, January 21, 1960

1958, and the 165,000 kw addition to the Sanford

Truck

with output

President, National Bank of Commerce of San

Financial Chronicle

McGregor Smith

$72,500,000 will have been expended in
1959. Included
in the program are final
costs on the
165,000 kw power
plant placed in operation at Ft.
Myers in November,

to social
security, rail-?
relating to veterans, Fed¬
erally-assisted state old-age assistance
programs, Fed¬
erally assisted unemployment
compensation programs,
old age
pensions, saving deposit
guarantees, and other
such
a

programs.

big

part

Most
rise

Naturally

in stabilizing

forecasters
our

our

the

defense outlays also play
economy.

expect a steady, if
Gross National Product-the

not spectacular,
sum

of all

goods

Number 5918

191

Volume

The Commercial

.. .

and Financial
Chronicle

produced. In this regard our national pro¬
machinery will have to increase its output if
are to keep pace.'with our^ international rivals and,
7 the same time, provide our constantly expanding
nnulation with the consumer products which have bepl
£,p svnonymous with the American standard of living.
1960s should be a glorious and
The decade of the
m-nsoerous one if threats of war can somehow be safely
cnooressed. We must, however, guard against unilateral
disarmament or- deterioration of our defense stature,
nfir economy can support adequate defense during the
-60s and still make possible a richer life for us all.
services

fields

as
well, and that 1960 should see the start of a
rapid expansion in, and should
provide substantial im¬

fit ive

PHILIP

petus to

Division, the

During
System

1960

will

the

American

complete

its

Electric

Power

$800-million

Company

expansion

pro¬

gram, begun in 1956, with the installation of two
450,000kw.
units, Sporn Unit No. 5 and Breed Unit No. 1, both
operating at supercritical temperatures and pressures
.and expected to establish new
records in steam-electric

generating

efficiency.

The

installation

Unn nsome retirements, will raise

SPORN

these

see

units,

the start of

with

American Electric Power Company

of 1958 the recovery fi*om the recession
the year was well under way and carried
through all of 1959. The build-up of steel inventories in
anticipation of the steel strike gave added impetus to
economic activity in the first half of
the year, and it also provided the
cushion which made possible a con¬
tinuation of high levels of economic
the end

earlier

and the

conventional and
and

„

almost

activities

actor to

above

in 1959

cycle

raised

the

industry, continued at the high 1958 level of close

ity

13.3% increase

Sales, because

over

reduction

1958,
in

9.7%

above

meet

the

1958

capacity in

the

losses

due

Central

Nuclear

System

was

that
on

number of

gas

systems,

including

Company,

able to

the

new

basis, of

Our

vigorous expansion in

$500 billion and a Federal Reserve BoardTndex of Indus¬
trial Production
of

it now seems that the
again reach new record
of about 761 billion kwh. and a

around

levels, with generation

165,

duce
<

demand of 140 million kw., representing increases
almost 9.5% in both these
figures. The gross revenue
should climb
by 7%, to 9.8 billion, and net income should

a similar percentage gain, to almost $1,800,-

Construction expenditures of the investor-owned
once again stay very close to their 1959
level of $3.5 billion '
'
On Ike American Electric Power Company System this
.

industry

expansion is expected to be

Wform.

System

input

reflected in magnito reach 32,350,-

expected

ooo,000 kwh. with sales of about
29,850,000,000, representincreases of 14.7%
and
14.8%, respectively. The
s

ightly larger percentage increase in sales than in net

*s accounted for by the expectation of a
reduction in system losses. Because of

urther

modest

Hiproved

load .factor,

system

peak

crease

is expected

to in¬

new

than

16%

above

the

national

average,

tally' the Potentialities of electric heating are not
7? *° tlrie home. There is very rapid process of
ihl lzatl.on on the part of both the utility industry and
®^ulPment manufacturers what has been recognized
th<
Attlerican Electric Power system for some time:
,c*ric heating has great potential for development

onnr
m-

only in residential, but in commercial and industrial

continuation of the indus¬

its

System.

STALEY, JR.

its principal

with

men's

Sales volumes in the company's Gro¬

outlook for the company's

buying
are

re¬

I
favorable

condition

influencing soft goods
rise in disposable income

is the continuing
with relative stabilization of the retail price
positive factors are to be found in
the bumper crop of war babies, now attaining the role

activity
coupled

Additional

index.
of

mature

suburban

The

the

and

consumers,

growing

development.

trend

toward

in combination of strong consumer de¬
sensitivity to style obsolescence poses a tre¬
challenge for apparel producers.
Flexible,
high-speed, low-cost production is of the utmost im¬
portance in order to provide highly styled merchandise
to the retailer promptly during peak selling seasons.
presence

mand

and

mendous

apparel industry is constantly striving to
problems of production and styling which

been

many years

over¬

have

detriment to long-term growth.

improve this condition, growing emphases are being
placed on quality control and continuing efforts are
being made to modernize and improve methods of pro¬

distribution

duction,
We

Reliance

delivery.

and

alert

to these changing patterns
high degree of flexibility in our
multi-plant operations at some 18 locations throughout
the country. We have greatly broadened and
upgraded

and

are

attained

have

merchandise

are

chemical operations is

Cam¬
which
June, 1959 merger of this organization

the Staley

Company.

| ,.
Our firm may

STEELMAN

acquisition of the U. B. S. Chemical Com¬
pany
we entered ambitiously
into polymer develop¬
ment' and manufacturing. The company previously had
done some research and development work in this area
and shortly before acquiring the U. B. S. operation,
Staley's had put in operation an experimental produc¬
tion unit at Decatur, 111., small but capable of producing
With the

commercial quantities. With its new U. B. S.

■

Company
...

,,s.

be identified as a manufacturer of capital
goods serving principally the diversified fields of con¬
struction, mining and quarrying; plastics molding; die
casting; metal working and forming; and oil well drilling.
The construction
industry repre¬
sents one of the largest segments of
our
economy,
constituting in 1959
14%

over

Product.

the

favorable

others

Demand

although

ery in
F e d e

move

for

outlook

1960

segments are expected to
while

National

Gross

our

Overall,

appears

S. Chemical Company Division of
Mass., is fulfilling the promising potential

polymers in

goods

of factors

most

wear.

Another

President, Koehring

the

number

lines, and, through expansion and ac¬
extending the operating base of the
company to assure the flexibility and diversity required
to maintain our position as a major factor in the apparel
industry.

should pro¬
profit

increase.

motivated

re¬

tremendous

ness with more
and more emphasis
being placed on dressing up to the
occasion, whether it be for work
or
play.
This sensitivity to style,
traditionally a major factor in the
Timothy R. Stearns
design and marketing of automq-.
biles, will come to play an increas¬
ingly significant role in the soft goods industry, par¬
ticularly as applied to the design and merchandising of

quisition

Products Division has approximately doubled in
last five years; and the outlook is for a continued

The

promising

fabric softener.

the

experienced
in his
soft
The

has

consumer

significant of
these, in my view, is the predomi¬
nant trend toward style conscious¬

our

...

cery

the

dollar.

American

sponsible.

The

will provide
us with varstly superior facilities in
mid-1960, serving as a further stimulus to research activity. The center
A. E. Staley, Jr.
will serve to house the company's
expanded research effort which has
tripled in three years. The aggressive advertising and
sales promotions that have
boosted sales of Staley s
erocerv
products will be continued. Leaders in their
fields are "Sta-flo" liquid starch and "Sta-Puf" rinse,
a

realization

increased

habits.

for

division, corn refining,

the

consumer

change

come

Manufacturing Company

construction at Decatur,

rmf

the

continued improvement

and

industry

bridge

sales

the

research center, now under

Ijnticuiariy j10me
'He,

and

encouraging.
The U
B.

ejectric heating and the all-electric
i!g expected to raise average residential electric
.consumption from the 4,050 in 1959 to 4,360 in

explore

unique record of per¬
confident, will be especially true on

the company

by
new

by only 9.2%, to 5,325,000 kw. Continued intensive
Uornotion 0f major electric residential appliances, and

n*ou

possibilities.
A

companies should

possibilities for major advances in
electric energy generation.

continue

E. Staley

company,

itures

once

Peak

j}~o show
u00,000.

Avco

plies, and lower by-product returns,
thus promising profit margins com¬
parable to those of the last two
years. '
7'<:'..
For the longer term, a greatly in¬
creased
rate :■ of research expend¬

whole and in the utility industry.

electric utility
industry will

jointly by 10 electric util¬
American Electric Power

enjoys a favorable outlook. The high level of business
activity in the consumer nondurable field promises a
continued high level of demand.
A record corn crop
with attendant lowered prices
has ...
^offset cost increases in wages, sup¬

efficiency of 35.4%.

On
expected Gross National-Product of about

This, I

big question mark about the eco¬
nomic outlook for 1960. But
assuming that these situa¬
tions are resolved
without resort to further work stop-

the

pointing to

Note¬

Chairman of the Board,

steel issue has been settled, the threat
major labor disputes, such as that in the railroad

industry

Although the

problems.

ings record. On that basis it should continue to merit the
confidence of the investing public which is essential if

Btu> to 9,650 Btu per net

economy

our

cently

industry will continue to assure the American
abundant low-cost electric energy and to
provide the consumer with his greatest economic bargain.
And there is solid basis for the judgment that it will do
so while at the same time maintaining its favorable earn¬

thermal efficiency—which in 1958 had gone
below 10,000 Btu
per net kwh. for the first time, was
reduced by an additional 271

the

spots of

each;

economy

of its

continued

through the recent period of
within the textile industry, one of the
bright
domestic economy in 1959,
appears destined
carry over into the new year, with all indications

recovery

number of important

line

together with

the American Electric Power

see

The momentum generated

electric power

the

formance.

Pages, 1960 should

how

TIMOTHY R. STEARNS

The

tric power

industry, still leaves

peerformance

question

President, Reliance Manufacturing Company

exciting

All of this should result in

approximately 30% below the industry
average, were reduced further in 1959 to well below 8%,
the actual
figure being 7.8%. The Btu performance of
the System's steam-electric
generating stations—the in¬

of other

the

three

1958 to

average system

looking

and steam turbines in

other advanced

New records in operating efficiencies continued to be
established. System losses, which had been reduced in

Inc.

try's and the company's vigorous growth. Thus the elec¬

generating capability to 5,558,000 kw.

kwh., for

Group

magnetohydrodynamic principle to
generation. If successful, this research would

growth in demand with an adequate reserve
margin. The addition of 75,000 kw. raised the System's

dex

the efficiency and economy of

this

8.5%,

plant

electric

Because of the large

figure.

1958,

nuclear

open up

billion kwh. Peak demand, at close to 4,750,000 kw., was

additions

East

harnessing the
should improve

application

28.2 billion kwh.

system

Electric

transmission, distribution, and unaccounted-for energy,
increased by an even larger percentage of 14.8%, to 26
over

kw.

crucial

Sys¬

System operating companies, Ohio Power Company, Ap¬
palachian Power Company, and Indiana & Michigan

"V '
The
on
the American Electric Power
Company System exceeded these industry figures. Com¬
pared with the industry's 9.6% increase in energy output,
the American Electric Power Company System ended
1959 with

180,000

research program undertaken

...

the

inflation

wage

worthy in connection with advanced energy generating
concept was the announcement last November of the

investor-owned share

$3.5 billion. Revenues and net income showed record
increases of 8.2% and 9%, respectively, above the 1958

="•'V-'
"1
performance

generation concepts; and work on
extra high voltage
transmission

total

figures,

Power

spiral, it will result in difficult price adjustments for all.
industry and business, and further inflation.
The declining value of the dollar
represents perhaps
the greatest challenge of the
coming year to responsible
leadership in labor, management, and government.

50,000-kw. advanced heavy-water cooled re¬

research

industry generating capability to about 164.8 million kw.
of the

Electric

cost

be built

program

and

Construction expenditures by the

Amercan

there

labor

by Florida West Coast Nuclear Group;
the probable start of a joint AEP-GE
Company research

This expansion added almost 15.3 million kw.

industry's capacity

the

this,

involve

bility of
Philip Sporn

dustry

programs.

•

our
industry and sim¬
ilar manufacturing may have to face in the wake
of the
steel situation. If the settlement works for
another

toward development of the technical and economic feasi¬

previous year and justified the confidence the in¬
demonstrated by continuing with its expansion

the

will

Dresden, 111.; the stepped-up research and developmental

demand, at almost 129.3
was

nuclear, in transmission, in distribution,

utilizaton.

generating efforts

growth which had been temporarily
interrupted in the previous year.
Electric generation rose over 9.6%,
to over 707 billion kwh.,: and sales
also rose over 9%, to over 625 billion
kw.,

development activi¬

the continuation of the work as a
member of Nuclear Power
Group Inc. and the investigations in connection with the starting up and the first

resumed the more rapid and vigorous

million

tem this

strength by showing a modest
growth despite the recession, in 1959

Peak

and

ties, both in the industry and on the American Electric
System, will continue in 1960 in generation, both

lying

kwh.

research

Power

the strike. /
•
:,"7
utility industry, which
1958 had demonstrated its under¬

•

The acceleration of

■

Beyond
much

generating unit at the Clinch River Plant,
Virginia.
<■

both in

back, during

The electric

available

working capital in excess of $30 milV;:-. '
change is anticipated in the other activities of
the company.
For the year as a whole the company
should do as well as, and
probably somewhat better
than, the results achieved in 1959.

third 225,000-kw.

steam electric

with surprisingly little set¬

activity,

beginning of construction

,...

Little

new

President,

company

Lemont,

lion.

expansion program covering the years 1960-1963 and
involving a total addition of close to 1,400,000 kw., the
details of which have
only partly been announced, with
the
beginning of construction of the largest pumped
hydro station in the United States at Smith Mountain

......

System capability of

6,409,000 kw. Nineteen sixty will also

103

also has polymer production facil¬
111., and at Cambridge and Marlboro,
Mass. The plant at Lemont is currently being expanded.
The soybean industry has been marked by increasing'
capacity and keen competition that has reduced profit
margins below the levels experienced some years back.
For 1960 the company's activity in this area should pro-,
duce results comparable to 1959.
Sometime ago we recognized the importance of ade¬
quate working capital, particularly in tight money areas,
and currently are in the best financial
position ever
ities

the

acceptance of, electric heating installations
all these fields.

(355)

.-V

some

move

down

up.

construction

machin¬

calendar 1960 arising from the
r a

should be

1-A i d

Highway Program
higher than in 1959 because

of the manner in which

the Federal

Highway Program is being financed.
Federal aid that can be obligated in
the

first half

for

the

over

aid

last

half

1960

double

1959

the first half of 1959.

approved

for

and

that

15%

J. R. Steelman

Estimated

new

highway projects in 1960

likely will total $3,137 billion vs. $2,353 billion in 1959,
an increase
of 33%. Contract awards generally follow
within six to eight weeks of the time

plans

are

Continued

approved.

page

104

Continued

The Commercial and

(356)

from page 103

Financial Chronicle

tur^d products and consumer services which fit into the
turnover pattern of supermarketing, which are
pre-sold
to
consumers,
and which
are
specifically
packaged for supermarket merchandising.
We have proven that our capacity to produce goods
and services which contribute to the nation's increased

high

equipment usually follows

Demand for new construction

the

obligation of funds.
Although road building constitutes only 10% of total
new construction, a dollar spent for road building con¬
tains
a
greater ingredient of construction machinery
,

residential construction.. Thus,
machinery manufacturers, road building becomes
much more important than its relative place in total
construction expenditures. Nevertheless, there has been
than

dollar

spent

for

standard
mains

living

to be

tunity for

purpose machinery made by Koehring depends
significantly upon the level of total construction

the indication of whether

and

this level is going up or
movement

The direction as well as the size of the

down.

costs.

the

most

significant impact on the buying psychology

exercises a

than

amount

ing

which

increase

the

took

place

past,

materials

for

costs

labor

and

ap¬

plastics continued its spectacular growth
Increasing use of plastics in such areas as
production (now 12 lbs. average per car), consumer

The

use

during 1959.

costs

are

costs

only

non-durable goods, and commercial, indus¬

durable and

trial and residential construction contributes importantly

the

Growth

continuing upsurge.

during

increase which

show

meet

molding

ma¬

portends a strong future for die casting ma¬
chines particularly in larger sizes.
Aluminum continues
to be used more and more in the auto industry.
If it

this
I. Melville Stein

processes

in auto engines, it will create a very
for large die casting machines.
Even
provide a larger
market for this type of equipment.
The outlook for the petroleum industry in 1960 is
for a steady demand for its products possibly 4% to 5%
higher than last year. While domestic production may
be higher than in 1959, there seems to be no comparable
increase predicted in new drillings. This may have the
a

about

the

the market

holding

level

same

oil

for

field

supplies*at

1959.

construction machinery as well
as
other products held firm during 1959. and we are
anticipating an increase in 1960. Construction in Europe
presently is at record levels, and there is evidence to
suggest additional gains in the future.
A number of
markets for

Foreign

countries should

American

Latin

import machinery next
In

summarizing

our

and expect that sales
it likely that export

show

will

nues

better shape

outlook for 1960. we are optimistic
will increase moderately. We think
sales and foreign operations reve¬
increase

percentage

than

LOUIS

President, Food Fair
is

nation

beginning

new

and

year

ROBERT

food

retail

The

industry, which
again in
1959, looks forward to the continua¬

established
tion of
for

coming

decade.

food

industry,

schools

New

90%

over

supermarkets and superettes, independent and chain.
To place in perspective the opportunities
for the food
distribution industry in the next decade,
we
do

increase

can

better

than

consider

such

forecasts

U. S. population to 206 million
by

rising to $428 billion, and

the

1960, personal income

potential increase of retail
food expenditures of S80 billion.
The
of

challenge

these

that

forecasts,

creased consumer

faces

the

industry, in

found

try to gain

the

face

stimulating

expenditures for food.

in¬

The task calls

for concerted efforts

dollar.

by all segments of the food indus¬
larger share of the consumer's spendable

providing for the consumers' increased food
needs
and wants in this
expanding economy, the food industry

cannot

deviate

values

and

greater
than

from

its

maximum

efficiencies

basic

mission—to

service.

all

This
of

areas

deliver

real

require

will

still

operations.

costs not absolutely essential to
products from manufacturer or

ever,

the

must

eliminated
strive for

minimized.

moving

processor

consumer

All

the

along

even

greater productivity
through further improving materials
handling methods

S?5oe^U1<Pment' and tighter'
organizations.
I

ahead

convinced

will

essentially
It

will

that

expand

involve the

more effective systems and

supermarketing

beyond

is now. to

the

marketing

food

field,

the

years

which

U
broader line of goods
of all types of manufacJ

encompass

maintain.

The

should

and

equipment

much

the

construction

1959

ran

1960 to

machin¬

continually
and

year

be every bit

good

1959. The road program is

out of the

where

sell

Concerning

equipment.
equipment

our

industrial

sales, it is expected that this market
will
Robert S. Stevenson
.

includes

which

1960.

Our

industrial

backlog

and

trical equipment sales is 22%
than

elec¬

higher

and showing solid strength.

year ago

electrical power sales are

Our

staying ahead and

good backlog in this business for 1960.
a continuing expansion program, so
business should continue good.

already have

mentation

We've

become

the

widely

known,

in¬
will in¬

seems

for such equipment

demands

crease.

the Leeds and

1959.

basis

the

Northrup Company, new orders for
the first 11 months, will exceed

1958

by 25%. If there is no renewal of the steel strike,
there is every indication the company's new orders for
should

10%

above

1959.

1959

year

saw

following

the

being

are

forms

for

increase in

may

world

10%

sumed

This

only

with

its

ease

over

use

total

sulphur

tons
due

con¬

not

handling but also to its economic
other sulphurous raw materials. As its

to'go

sulphur demand may result in even a much greater
percentage increase in the elemental sulphur portion.
Although the steel strike had a temporary
depressing
effect on sulphur
consumption in the United States in
1959, most other sulphur consuming industries
operated
at high levels.
The end result was that
sulphur con¬
sumption was at a near record in the United States in

Consumption in all forms
with

the

elemental

was

over

5,800,000

iong

portion

being 4,840,000 long
Transcribed into
percentages, U. S. total sulphur
consumption increased 10% in 1959 over 1958 with most
of this increase
going to elemental sulphur.
The United States
supplied this country and the rest
of the world with over
5,800,000 long tons of elemental
sulphur in 1959. Other important
suppliers were Mexico,
tons.

France and Canada.
tons of Frasch

Trust

indicators

leads

the

level in
with

excess

record

1960,

$500." billion

average of

con¬

which

approximately $480 billion

for
the
year
1959.
The principal
supporting factors for this optimistic
are

follows:

inventories

likely,

possibly

the order of $5-$6 billion for the

inventories

low

relation

Inventory accumulation will
particularly strong in the steel
as

result

of the
Claude O. Stephens

total

1959.

high

compares

8,340,000 long

elemental

Bank

Chicago, 111.

to sales.

relative attractiveness should continue
during 1960 most
all of the increased usages in 1960 are
expected
to
elemental sulphur.'
Therefore, a 5% increase in world

tons

Chicago,

and automobile industries

total

National

analysis of economic

ness

see

1959.

increased

advantage

STRAUS

American

Compared with postwar ex¬
perience, the current level of busi¬

the Frasch producers, is the fact that
during 1959 most of the increase in surplus consumption
was
in the form of elemental
sulphur. In comparison
to 1958, 1959 world elemental
sulphur consumption was
some

year.

fertilizer,

Encouraging to the elemental sul¬
phur producers and, in particular, to

Our

feel

time it started. While

clusion that Gross National Product will reach

ness

anticipated high level busi¬
and in particular
1960

(1) Further accumulation of busi¬

conditions,

that

work.

short, others, except for certain spe¬
able to continue normal operations.

were

Company

forecast

supplying the

demands

Many
steel
were well

production.

ran

President,

believed

returned

divisions

ROBERT

long tons in all forms, an in¬
over 1958.
Sulphur is grouped under two
basic
categories — elemental and non-elemental.
The
elemental sulphur
includes mainly
Frasch and recovered sulphur and
supplies just over 50% of the world's
total
sulphur
demands.
Non-ele¬

steel

covered for the steel strike at the

Sulphur Co.

of 5%

and other

resumption

Allis-Chalmers employes laid off because of lack of

consumption—16.000,000
crease

expects to expand its foreign operations.

already established priorities and will have some¬
thing more to say along those lines during 1960.
The supply of steel picked up faster than anticipated

high in Free World sulphur

new

electrical

The company

cial items,

STEPHENS

President, Texas Gulf
The

The utilities are in

some

sulphur consumption.

Louis Stein

self-service

industrial
farm

1959.

the

expect

our

increased

sales

ahead

for further improvement of process
efficiency are known to be nearly ready in several
instrument companies. As the results of modern instru¬

billion,

manufacturers

products

$42

1960

Concerning

cutting

instrument

industry,

which

in
as

ery,

ago.

are

advocating modernization for
its customers, is helping set the pace itself. New manu¬
facturing facilities and new research and development
centers are only a part of the story.
instrument

another

represented

years

users

which

Due to

sales

for

that's

just closed, it is estimated that total
S52 billion,

climate

same

present maintenance
costs as well as preparing for the future by sending
selected engineers and technicians to cost-free training

retail food sales

were

machinery,

The

two or three

Instrument

ness

In the year

good in 1960. We are optimistic
in which the firm operates

areas

construction

equipment.

controls.

balance.

seems certain
its
sphere
of

further

extend

influence in the future.

STEVENSON

now

drite

the

—agriculture,
electrical

principal

sulphur (equivalent sulphur
values) is principally made up of
pyrites with smelter gases, anhy¬

the

for

gains

of past

vanguard

retail

and

year

Our business should
about the four

can

mental

The_; self-service
super¬
industry, which has been in

market

the

upward trend of business

the

records

new

one,

new

due

President, Allis-ChaLmers Manufacturing Co.

general, America is meeting
challenge by modernizing its

CLAUDE

headed for what the majority
of experts have forecast will be an era of unprecedented
prosperity. Only the possibility of a resumption of the
steel strike threatens the widely pre¬
vailing optimism for the near-term.

shut down

using the word "modern." the instrument industry
precisely what it says, because many instruments
reducing process costs simply did not exist even

Stores, Inc.

decade with its economy

been

sulphur will be captured by other
countries producing recovered sulpur. V'..

means

1960

STEIN

devise.

added

% '

by adopting every de¬
cost-cutting device our

can

will"; be

of the Freeport Sul¬

getting
planning stage and is now
getting
into
the
area
where
our
equipment
is
needed.
And
while
housing starts are off, heavy engi¬
neering and building is up — and

evitable that

sales.

domestic

The

year.

greater

competitive

producers

also

mine

Bay Ste. Elaine mine has

present
plant
and
building
new
plant, increasing productivity

market

effect

through modern instrumentation and automatic

success

proves

strong

without this impetus, 1960 is expected to

only

economy

result

American

pendable

chinery.
y
The increasing importance of aluminum in die casting

fraction.

net

situation

should preserve and

injection

plastics

for

demand

increase

The

of plastics

use

1960 is expected to

17%.

exceeded

1959

another substantial

often below ours and labor

capacity

Isle

It is anticipated
that U. S. Frasch producers will
enjoy increased sales in 1960; but much of the increased

many

Foreign material

American markets.

auto

great

Frasch

Company starts its expected production early in
Conversely, the Freeport Sulphur Company's

inroads

serious

year.

proximately equal to all.
'
*; :*1
Now, foreign products are making

dur¬

1959.

units
1960. These in¬

demand for elemental

generally with other Americans, with

1959

and more world-wide.
Americans competed

the

expect 1960 new construction to increase
levels but for the 1960 increase to be less

Overall,
over

Competition is becoming

production

new

Canada

exhaustion.

v":

when the Grand

smaller

of contractors.

1960

the

pressing problems for American in¬
dustry today is to obtain higher productivity and lower
One

that

France and

gas and

phur

President, Leeds & Northrup

special
very

about

are

Increased

STEIN

MELVILLE

sold

prompted by the greater usage of sour nat¬
continues the trend of annual increases in
sulphur produced from sour and refinery gases. The
world-wide consumption of recovered sulphur in 1959
was about
1,500,000 long tons.
ural

retail distribution.

mass

anticipated

built in

will be
creases

The new decade /with its promise of a still
higher economy, presents a real challenge and oppor¬

opinion that the construction machinery industry has
identified too closely with road building activity.
Demand for the wide range of general purpose and

-demands,

economy.

been

Canada

150,000 long tons of recovered sulphur in 1959.

Although present sulphur productive capacity is more
sufficient to supply
expected new * or increased

More re¬
parallel link in our

long tons of recovered sulphur and

than

unlimited.

practically

in distribution,

done

Thursday, January 21, 1960

Mexico sold close to

sulphur, France supplied

1,000,000 long
some 400,000

lengthy strike.
(2) A high level of employment,
rising disposable personal income and

current consumer confidence will

reflected

demand

consumer

durables, particularly

Robert E. Straus

for
au¬

tomobiles.

strong

Considered

relation

personal income, the current level, of
ment

credit should

of 6.5

rising disposable
consumer

install¬

support Detroit's minimum estimate

million

domestically produced cars..
(3) Plant and equipment spending by business should
near
the 1957 record high of $37 billion
or
14%

above

1959. This view is supported
by the rising trend
capital appropriations and the strong working capital
position of corporations.

(4) A moderate increase in spending by Federal and
state

governments

is indicated.
The Department of Commerce has forecast

(5)

increase

in expenditures for
certain cross-currents. A 15%
will be offset
by increased

new

construction

decline

despite

housing starts

expenditure for non-residen¬

tial
In

construction,
this

demands

economic
for

atmosphere, business and consumer

loanable funds

will be heavy in the year
that, initially, the cash needs of cor¬
porations will be met partly from
internally generated
funds, and by some liquidation of U. S. Government
obligations. However, in the past,

ahead.

true

inventory accumula¬
bank

tion has been
accompanied by a strong demand for
loans.
It is also
likely that
pressure

for

bank

credit

Volume 191

Number 5918

The Commercial

and Financial
Chronicle

(357)

from consumers since banks hold

will come

the largest

portion of consumer debt and are also heavy lenders to
sales, finance and small-loan companies.

PUBLIC UTILITY

latest figures for all banks show that loans have

The

position of the Federal Treasury which should be op¬
erating under a balanced budget in calendar 1960 and
also by some reduction in demand for mortgage credit.
relating

overall

demand

for

credit

supply of funds, the conclusion reached is that in¬
terest and money rates, which rose sharply in 1959, will
increase further in
1960, and earnings of banks will
the

FRED

The office

rising

product

billion.

8500-510

with

Along

new

high

the

course,

will

include

Contributing
office

the

large

equipment industry

over

our

Sullivan

our

optimism

for

decade

consequent

The growing need for office equipment, then, seems
quite evident. Management is demanding more up-todate figures upon which to base its decisions. The need
this

data, together with the need to keep down the
mounting office payrolls, will force managements
scrutinize their methods and equipment.
More and

cost of

investing
maintaining outmoded office machines, and the

and

them will

recognize the high cost of

versatile

money-saving advantages of the faster, more
products available today.
There
has
probably been

equipment and
any

other

changes
decade.

time

methods
in

the

progress in office
past ten years 'than at

the

history

rates

averaging 2.340

compared

with.

average ; of

The

2.530.
3800 kwh

usage
above

the

national

management is

in-

scheLtes fixin/a

rate

kwh

per

the

rate

from

policy

between

70%

industry. The
in the next

are likely to be even more striking
Those businesses which have availed

$1 50

and

pay

75£

Pgr0S' broiI"il °t ^ Pr?f.iden^
has managed the Toledo office oi:

earn

of the earnings reported for the

with'major out-oAoln underwriters, especially in New York

selling re-

£ntly around 40 <ran*r in 1959" *nd Chicago.
60 was -about 41-37) affording a ;; The 'First Cleveland

expected

expected to be

ntaiea.

tion. which has

ratio is about 16.3 compared with

industry

in the issue of Dec.

Iowa-Illinois

contained

the

26%

ment:

upbeid
Fort

Gas

recently

27% "

after

and

company

will ask

are

ba li°na*that

this

the

services>

<taken

from

Service) was incorrect.
While the rate litigation referred

' to

complicated and extended

was

several

over

the

final

grante/ (based on 1954
revenues)
about 10%. Another
for

Coal

Tecumseh

which

interest

Corp.,

from

purchases about 30%

ment clause in the temporary rate

capacity to take
industrial needs

ample

when

mid-1961

111,000

generator is scheduled for in-

stallation

schedule,

PlPT*PP

expenditures

( )TTPT,<^

from $12 million
previous year. However,
they are expected to increase to
down

the

( jQTTlSOfl
'

budgeted at about $10

were

million,

-p.,

the Stout Station.

Construction
1959

Court.

further increase of 7.5%,

of expanding

until
kw

District

is before the
Meanwhile, a

and

of^ 544,000 kw. Thus

June

there

bond,

peak demand

requirements.
It has genting capacity of 733,000 kw

compared with

12 months period ended
31, 1958, is being collected

required
to offset a Dec. 28, 1959 increase
jn cost of gas, will become effective under the cost of gas adjust-

coal
era

was

the

under

H OT*DP 9
1AUiUVy °

„r

being registered, alter adjustment for the 2-for'-l split in
1954. However, during this period
the dividend was raised from 1S0
$1.62)

point-of-sale equipment and a

line of small-scale elec¬

reach of the smallest com¬

pany, have, been introduced.
.There has never been any evidence
tear that office automation will create

fying

drudge jobs into more

careers.

The increase in population
ard

interesting and satis¬
.

and the ever-rising

from

low

high of 25.

earnings

1954

Since

have

to $2.45 for the 12

risen Steadily

stand¬

living both in our own country and throughout
the world will
require the expansion of business *acilities, with more people and more machines to meet the
new
demands.
A
survey
of 278 manufacturers with
Continued on page

106

„

^o1' LKJL

members

Co.

Mass.

BOSTON

TOT

and Boston Stock

OSP

Moselev &

the

New

York

Exchanges, have

announced that Robert F. A. Lawhas

son

become

associated

with

Manager of their Re¬
search Department.
Mr. Lawson,
who was formerly with Estabrook
& Co., will be located in Moseley's
main office in Boston, 50 Congress

the firm

„

cocktail

bl,a?d!l
1-J
fal tunds and s"b^qU®""L^?

exPanslon
lts °P a
•
The company.plans to open «nd

party

Wednesday

will

comDared with $214

the next 18 months» and to ex-

b^tonee

held

evening, June

at the Nicollet Hotel in

15,

Minneap-

visitins guests

0j;s

of the

Minneapolis office of Piper, Jaf-

fray & Hopwood, is President and
Kenneth C. Josa, of Smith, Barproceeds will
and enlarge the present stores ney & Co., of Minneapolis, is the
OYthe net

be used to improve

generai Picnic chairman.

{haf there was'a define

C°V'
Poiate p, p_
*
The upward trend in earnings is
Homes Enterprises Inc., mexpected to continue in 1960.
corporated m May, 1953 under
interest

The

in the
construction.

„

1ften

^ceilent^shpwing

probably due to the improved
the first ha
comparea with eariy i»ao, and
compared wwn early 1958, d.m

was

industrial picture in
as

the

economies

obJai"^d from the

installation in mid-1958 of, a large

unit.

The

the laws of Florida, is carrying on

'
•

-D-A

Drc/>IIDrcC

DAAI/

AREA RESOURCES BOOK

business founded in 1948 by its

President> Robert I. Home. With
nine
wholly-owned subsidiaries,
mmnahv onerates a chain of
compahy operates a chain of
s^ores
wayS

located on arterial high^eastern United States,

New book

explains why
the

area we

serve

offers

generating

com-

r^ese

pany

also obtained an inciease in

candy

opportunity

and

effective

steam rates

which

was

Aug.Jl, 1958,

estimated to add over

$2 million revenues per annum or

However, at
customers study,
resumed by
Public
Service Commission
November.
According
to
280

about
the

last

Standard
is
on

request
steam

the

«-

new

to support the
general unem¬
ployment. Automation of the office has been increasing
rapidly in the past decade, but as we have already seen,
the number, of clerical people and the need for office
space has also increased.
The typewriter, the dictating
machine, photo-copying equipment—even carbon paper
were once
regarded as job stealers. Employment never¬
theless increased. And, happily, skills were directed
away from

-«

ol^for vjjitmg^iests^.
frarIhdSwKSfcf!' 20 "additional stores within
Harry C. Piper,

credit

tronic computers, within the

immediately.

Lawson Research

the

industry* has in large measure
risen to meet this need by researching and developing
new
products which will give the modern manager
what he meeds to operate his business scientifically.
At
Monroe, for example,, our products include calcu¬
lators, accounting and adding machines that are faster
and more flexible than ever. In addition, cash registers,

effective

Toledo,

sr%r»s!£r5s sstw* ■>- si*^
only 60
share (from $1.56 to the common shaies will lnitia y

tottor fivure

equipment

Pierce, Garrison, Wulbern, Inc.
and The Johnson, Lane, Space Thursday, June 16, 1960, is the
an
equity ratio of 36% or more, Corp. are joint managers of an date set for the 39th Annual Picno eauitv financing appears likely
underwriting group which has oiuntil
1962
when
a
small
issue fered on Jan. 19 235,000 shares nic of the Twin City Bond Club,
(perhaps l-for-20) may be offered, of Home's Enterprises Inc com- to be held at the white Bear
The company's share earnings mon stock at a price of $5.50 per
Yacht
Club, White Bear Lake,

$20
million in
1960, declining
again to $12 million in 1961. With

with the

office

Thomas G. Woods and Kenneth
M. Koike, registered representafives of the firm, are being transferred from the Cleveland office

Twin City Bond
Club 39th Outing

TYIOTI

vA/llIllIvJll
■

of that revitalized recreation center. It also controlled The
Erie County Bank of Vermilion
and Milan, Ohio, until Jan. 4 of
tb*s year, when it distributed the
bank's stock to holders of the in-

i' Street.

br¬

owner

was

Court

to Ohio

trols the G. A. Boeckling Company,

state-

increase

District

additional

a
•

24, the article
&

of service

year

Corpora-

comnleted itsj

now

vestors, has a substantial interest.
in many Ohio activities. It is.the
largest single shareholder of Cedar
Point and with George Roose, of
Toledo, and other associates, con:-

;

Electric

rate

the

Dodge

25th

16.7.

this column

following

january 1st the
for

around

average

CORRECTION:

March
The company has a 50%

yield of 41/4%. The price-earnings

increase of 27% based °n revenues

tui

are

maintainHaison

dutieswillbeto

...

ser^ce

Legros,

7<V

amoun*

area

Emile

out

eieXican^and^bou^on^fifth
fnt
one tittn

themselves

improved

announced

President of the Cleveland investment bankinS fi™. Mr. Edgar

raiseH

wa<?

in^T^ tat

heatfns Moody's

for

,„A

equipment have managed to keep pace
changing demands of our economy. Those who
cling to antique ways and means are likely to find
themselves .lost :in the competitive shuffle. Moreover,

residential

1958

homo

growing importance of the
growth in demand
for office equipment, need only look at the increase in
office building construction. Thq United States now has
over one-half
billion square feet of office space.
New
York .City alone has. gained 50 million square feet in the
past three years, compared with a gain of only 32 npllion
square feet in the 20 years between 1919 and 1939.

for

26%

during October-May. Over

Fred

the

October

dividend

36%

f P
®
C;USt°ule,rsTslng °v?r. 31°, kwli.per
month

care

doubts

con¬

about

are

1 5b
:

the businessman, and
keep the product name before the public. The refine¬
ment of certain long-established management functions,
such as personnel evaluations and corporate purchasing,
also demands more clerical help.
and

new

rate

who

steam

industrial,

34%

well

what

worker,

with

national

last

Anyone

kwh

goods, indispensable to the very creation of the fac¬
tory job. Personnel in sales, market research and adver¬
tising are needed to uncover new markets, to determine

office

about 92%

are

relatively low,

filed

required

■

832,8 ssiu'rx

1940, the number has mushroomed to almost 12 million.
of the reasons for the growth in clerical per¬
sonnel is this: The office worker has become a producer

are

•

„

company's

average.

One

tools

•

and

Electric revenues

was

new

Resioential

From 5 million office workers

economy.

coal producers

revenues

the

last

dividend

tributing most of the remainder.

the tremendous increase in the number of office workers

heeded

and'

Electric sales
total

per

machines of all types.

measure

increase

business

t-,1

are

efficiency of its operations in
face of high costs.
Equipment,

the
of

areas.

popula-

Indianapolis and
The territory is

U^^trlalized,. imporfan|
bel.ng aircraft, and

The

in 196*0, we can expect a
sharp
increase
in
consumer
pur¬
chases, greater capital expenditures
and higher total government spend¬
ing.
Predictions for increased con¬
sumer
spending
range
anywhere
from $13 to $19 billion, and forecasts
for
increased
capital expenditures
range from $3 to $6 billion.
Much
of the
projected gains in
capital spending will be directed into
equipment in
line
with
manage¬
determination

adjoining

The

sup-

commercial and 4% miscellaneous.

economy

ment's

Hon of 665,000 in

residential,

half-trillion-dollar

Light

Plies electric service to

substantial

iron and steel products.

Much of our optimism for
general business predictions for
record-breaking year in 1960, with the gross national

the industry is based

First Cleveland

Corporation, National City East
Sixth Building, members of the
Midwest Stock Exchange, has been

Indianapolis Power & Light Company
Indianapolis Power

ruhher

expect

can

CLEVELAND, Ohio—The election
of Edgar E. Legros
as
a
Vice-

OWEN
ELY

President of The

petroleum

business in 1960.

increase

SULLIVAN

Calculating Machine Co.

equipment industry

pharmaceutiiSsP^nd "chemicSs,' N™ember.12 months"
food
packing
nmd.ie+c'
The stock bas been

improve.

President, Monroe

Edgar Legros, V.P.
Of First Cleveland

increased 13% from the level one year earlier whereas
deposits remained virtually unchanged.
Many banks
enter 1960 with loan-deposit ratios at a postwar high
which suggests that they will be hard-pressed to meet
the indicated needs for bank credit. Considered in rela¬
tion to aggregate credit demands of all types in our
economy in I960, the increased needs of business and
consumers will
be qffset somewhat by the improved

Nevertheless,

105

share.

rates

was

Poor's

the

company

currently earning about 6.75%
net

make

does not

property, but
allowance

rate

base

and

the

are

combination

gift, and luncheon stores
0ffer gasoline service facilThe company also manufac-

(allowed

be lower.

Indiana)
such a

much

industry.

^ures candies for its own stores as

wen

a§

for

sale

others,

and

pacicageg and acts as jobber for
Gther products sold in its stores,

Merrill

I vnch

AAA*

merriii L.yncn A.aas
(special to the financial chronicle)
GREENSBORO, N. C.—Herold J.
the
staff of Merrill Lynch, Pierce,
Fenner & Smith Incorporated, 120

for a fair value* Weiler, Jr. has been added to

percentage

basis would

^ies.

stores

North Greene St.

UTAH

POWER
OUGHT
CO.

Write for FREE COPY
Bo*

899, Dept. K

Salt lake

City 10, Utoh

Serving in
Utah-Idaho

Colorado-Wyoming

106

The Commercial and Financial Chronicle

(358)

♦

Continued jrom page
sales

vealed

that

million

100 million

than

manufacturers

199

re¬

to increase their

expect

last

same

105

for

to reduce their clerical staffs through

capacity

automation

expect to maintain their present staffs, using
to expand

their activities.

Countries outside

the

provide good markets for office equipment.
Europe
particularly, in the midst of great expansion, needs more
and more office machines. Many countries in other areas
of the world are now reaching the level of industrial
development where they will requir£ increasing numbers
of machines. American companies, of course, will share
in

these

growth in office equipment sales in the past few
years
shows every sign of continuing., McGraw-Hill
surveys reveal that new orders for office equipment in
the first three-quarters of 1959 averaged 14% more than
the comparable period in 1958, and 9% higher than the
peak year of 1957. General predictions for 1960 point
substantial

increase

1959.

over

Monroe

enjoyed the biggest sales year in our history in 1959, and
We have every confidence that 1960 can be even bigger.

HENDERSON
President, The
It

now

SUPPLEE, JR.

Atlantic

Refining

Company

appears that the

general economy will show con¬
1960, particularly in the first half.
We expect total output of goods and services to increase
by 4% to 5% over 1959—assuming that there are no
further
In

serious

view

strike

this

for the economy

pect

demand

3.5%

hold
the U. S. industry

Korean War years and

rapidly

solving

marked

half

seriously
the

driest

the

year

continued

concern

state.

Late

the

Supplee, Jr.

all

rate

and

weak

product

over¬

prices.

present problems.

continue

not

yet been

Power

before

Commission

capital

Canada's

too

growth
be

petroleum

least

demand

great

mentioned

above

the
for

budgeted

other

figure

President, Pacific Gas
business

gains

was

our

growth

1960

excellent
service

larger
year,

territory

than

Pacific

Gas

indicate

and

that

'
The

from

large migration to California
other

areas

will

continue

influence the
economy of this region.
We estimate that the
population in¬
crease
this year by
migration and
natural
or

growth

260,000

area

electric

will

persons

which

about

3.6%,
in the
47-county

service.

supply

The

gas

total

popula¬

tion at present is
estimated at
000
and
has
been

3%%

growing

year

during the past

7,255,about
several

years.

During

the

1950

decade

PG&E

connected

new

customers to its lines. The
increase for 1960 is

than

1,300,000
cus¬

tomer

to total about
116,000.

PVS expenditures to
for
expected to amount

new

expected

construction in 1960
million, or about

about $152

the

future

■take

lot

popula¬

our

problem.

responsibilities

our

aid

balance

real

foreign

countries,

budget.

own

our

showing

interest

the

people to keep things in hand.
;LEE

;

going

■

part

the

;■. -

Electric

before

the

Company.

end

the

Coca-Cola

The

TALLEY^

Coca-Cola Company

President,

;

enjoying a period of sus¬
tained growth. Sales volume for the year 1959 will reach
an
all-time high.
Dividend payments on the common
stock during the year will total $6.50 per share as com¬
pared with $5 per share in 1958. We
nave
every • confidence - that
this
momentum will be carried on through
1960 and the years ahead.

Our

industry

economists

The

GENERAL

The Mexican
As

TAYLOR

say

are

enter¬

are

the

principal private supplier of electric energy in
our company faces the requirement for ^con¬
tinued growth in 1960. Few
people outside Mexico realize
the impressive progress which this
country has been
its industrial and

opment.

years

agricultural devel¬

National

production

has

been

steadily increasing at twice the
population growth, and the genera¬
tion

and

consumption

have

power

also

been

electric

increasing at

rates about twice the world
average.
Mexlight serves the Federal Dis¬

trict, including Mexico City,
and
parts of six neighboring States in the
industrial heart of the
all,

miles

with

5,500,000.

country—in
12,000 square
population of nearly

area

about

Although

only about 15%
tion

of the

billion

the

country,

the .company

its

steadily in

satisfy this growing demand for electric
energy,
Mexlight has steadily increased its facilities for
the gen¬
eration, transmission and distribution of
power.

new

construction.

1950, the company

obtained

from

nancier,

the

research

have

has

invested

been

and promotional
The Coca-Cola
is

adding

each

seven

and

now

month

growing demand

for

with

for these purposes.
the

1959

was

continued

from

these

other

electricity,

far

our

;

advertising

the

Based

THALACKER
*

planning for 1960, we have taken note of the
opti¬
mistic forecasts of
manufacturing activity and, of course,
have made
preparations which will permit production
of the maximum
requirements of our customers. Growth
opportunities exist for

however,

our

company

though

even

the expected
increase in the level of
general busi¬
ness
activity is not fully realized.
One of our functions is to
provide
manufacturers
of
consumer
metal
products with efficient machines and
chemicals for metal
cleaning and, of
course, this includes automation of
the most modern processes.
Detrex

pioneered

the

cleaning

for

company

the

use

industry

States
that

industry,

type of equipment

are

the

use

United

quite certain
will get the largest share of

this market

this

and

has produced over
automated
ultrasonic

cleaning machines in
A. O. Thalacker

ultrasonic

which

90%

better index of economic
activity than the
in the generation and
consumption of
and the steadily
growing demand for power

President, Detrex Chemical Industries, Inc.

loans

amounts

$140,000,000.

increase

than

marketing strategy inaugurated in 1959 by both
Coca-Co)a bottlers and The Coca-Cola Company has
proven so successful
that, generally speaking, it will be
carried into 1960 with little
change beyond an increase
in the intensity of its
application.

Since

increase in demand of
10% per annum, the
company's construction program for the next
five years
will require new
investments of
rate

country,

The

the future to meet

sources.

this

the

private investment will be
required to supplement
funds
obtained

merchandising front,

other

electricity, large

bottlers

estimated to have invested

budget
largest in the history of Tne
Coca-Cola Company and the budget for 1960 will be
substantially higher in anticipation of the expanding op¬
portunities and challenges offered in this first
year of
"the soaring, fabulous Sixties."
"
for

States

To provide the facilities
needed

Coca-Cola

are

in new plants and heavy equipment, are
estimated to be spending in excess of $1,000,000 a

and

the

Lee Taiiey

overseas

$150,000,000

Bank arid from
National Fi¬
Government financial
institution;$4,500,000 of first mortgage bonds to a

United

industry

year.

who since 1947

private investors, in¬
life insurance
companies,
by reinvesting a large part of the
company's earnings
and depreciation funds.
;

cluding

activity.

plants at the rate of 20

new

the World

institutional

they

intention of capi¬
the factors for growth by

$115,000,000 in

financed

indicate

every

Mexican

sale

group

This

customers

years.

talizing on
continuing to expand our physical
plant and to increase our advertising

which was about
consumption. Sales of energy

recent years, with an
average
annual increase in
kilowatt-hour sales of about 11% on
a cumulative basis
during the past five

Jan.

and

kilowatt-hours,

total national

have increased

this
area
has
of the total popula¬

furnished

year

right.

Light and Power Company, Limited

making during the past few

era
of amazing growth, an
plenty
greater incomes,
babies, more production, more
more
everything. All of our

studies

of the Board,

Mexico,

three

jobs,

MAXWELL D.

Chairman

There is
are

million

revenues may

new

has

era

40%

expected to
Northern and

assimilated into

providing a
especially
military nations along the borders of Russia that
friendly to us, but we must not increase the burden
our
own
Treasury so that we will not be able in

exceed $1 billion an¬
nually in 1959 dollars, compared with about $585 in 1959.

operating

gross

last

are

California.

cash for indusStill I think we could

nearly

for

and

uses

preventing

are

those

ing

Maxwell D. Taylor

those

meet

amount

decade

our

challenging

Electric Company

$152

opening of the 1960 decade presents a vista of
great promise for the further economic development of
and
Central
California
and
the
continued

recent

SUTHERLAND

construction.

Northern

projections

thing

being awaited.

are

NORMAN R

Public

op¬

that burden and be prosperous.

not able to be

are

must

Re¬

The

has

run.

California

They create a continuing

tion.

certain

will build directly will cost about
$64
Any expenditure in 1960 for this purpose would

addition

and

most

the

and

very

-an

people from the Caribbean area and

many

of those

will

National

selling for school

trjai gr0wth.

cost

effective device

problem not only in 1960 but in the
longer

N. R. Sutherland

1960.

PG&E

sort

carry

start in

back

have

immigration picture is resulting in the admission

Our

authorizations

bounce

could

adequate supply of
john Taber

particularly dur¬

of the project, which involves the
1,404 miles of 36-inch pipeline, is more
$330 million. The physical facilities in California,

which

are

that

its continued
strength, the oil industry
promote new uses for its
products
and compete more
vigorously with other fuels for exist¬
ing
markets.
This, perhaps, is our

that

some

„;

portunity to settle the situation.
We
are
getting more and more
local community debt and the bonds

are

assure

recorded

should

quickly

based

slowed, future annual volumetric increases in
consump¬
tion

Central

There

drought.

governmental

f^egun

were

consumers.

electric

are

by the agricultural interests

time for construction

provide
equitable treatment of East Coast
refiners, markets and

which

planning

of the period
steel-: shortage
became

.the

acute..

season

necessary

strengthen domestic oil markets since it has taken
.time to work off earlier stock
excesses. If winter demand
is reasonably
strong, however, the effect of import limi¬
tations may become
apparent early in 1960. Indeed, it
may be that controls will need to be modified
to

1959,

PG&E

1959.

exception

the

when

not

were

the

beginning to feel more and more
Business generally has
good through the fall

with

storage

carry-over

serious problem
ordinary people

very

which

one

oppressive.
been fairly

was

year,
in our project to import natural
Alberta, Canada, into California. We are hope¬

that

million.

has

Import controls have

General

season

past

obtained

gotten to be
and

rains, which often have been
in similar years in the past, could mate¬

construction

find

at present

rially improve the outlook.

than

capacity led to

excess

products
trend

state continues to

of record,

experienced

sev¬

producing capacity is excessive by market
Import controls now make state regulation
effective, but lack of uniform controls from state

now

Calendar

possible

for

cause

The

Crude

must

that would
come
from the
granting of the
'<demands of the union. Inflation has

however,- and our steam
capacity, including the new unit nearing completion
at Pittsburg, will minimize the adverse effect on power
on

Federal

.standards.

years.

affected

steel

the

business in the

ointment at the present
strike, and the resulting

in the

fly

inflation
/;

fitst

the

hydroelectric operations

our

seems

The preceding year also

because

operations and construction

system

capacity and with increasing industry aware¬
ness of the market
implications of excessive runs, there
is some hope that
supplies will be geared more closely
to requirements.

will

time

The

are

winter

1959-1960

but

dry,

TABER

should produce good

1960

States.

the

reservoirs

our

which will
Hemisphere.

by prolonged drought.

relatively

was

the

United

projects ]to

our

plant,

the Western

Utilities Commission

thereafter, the

expected,

oil

demand

While

I believe that

steam

JOHN

HON.

Board in Ottawa Jan. 5 on applications to build
inter-provincial portion of the pipeline and export
the gas from Canada.
This was a final step toward
obtaining all required certificates. Decisions from the

nearly nothing,
turned upward again after
marking time in 1957 and 1958. In 1960, refineries, on
average, should operate at about 85% of
capacity. The
danger of over-supply will continue; but with operations

aroused

been

•

U. S. Congressman from New York

sources

Recently, building rates have slowed

first

Hearings

industry built refineries in excess of immediate re¬
quirements in anticipation of continued demand
growth
at post-World War II rates.
When demand did not de¬

nearer

b^PG&E,^;.:W;

by Mexlight is a clear indication

•'

the Geysers Power Plaht,
service this year about 60 miles
Francisco.
We are investing $1,750,000

San

served

area

the

in the direction of

the

The

may

oil

and

has

steam-electric

for the 60,000-kiloHumboldt
Bay Power Plant
1958.
Its cost of $20 million

our

12.500-kilowatt

of its kind in

major problems next year, in¬
cluding those of surplus capacity,
import controls and markets. In the

this

ful

eral

de¬

gain.

production

interest

gas from

is approximately realized, the oil in¬
dustry should show a moderate in¬
crease in profits.
At the same time,
it is hoped that the
industry will

velop

geothermal

ing

If this projection of 1960 demands

move

unit

the

this year

broken

Thursday, January 21, 1960

The foregoing statistics on Mexlight are significant as
indicating the economic trend in Mexico. The demand
for electricity shows the dynamism of the entire national
economy.' It is a reminder that Mexico is a country"
worthy of the close attention of the potential investor.

They will bring
1,310,000 kilowatts.

Substantial progress has been made,

over

new

continued progress in the. year ahead.

which will be placed in

ex¬

petroleum
by about 3.9%

1959, but declining exports
total

utilize

domestic

announced

outlook

whole,

system.

our

be entirely financed

Much

interruptions.

favorable

mand to increase

which
will

will

establish

conventional

of this plant

capacity

atomic

watt

added

units

These

1961.

increments

total

supply

siderable strength in

for

Ground

north

markets.

The

the

continue

will

completion

standard

States

United

about mid-year will be a 325,000kilowatt addition to Pittsburg Power Plant.
A second
unit of this size now under construction-is scheduled

clerical staffs in the next five years in spite of the bene¬
fits of automation. Although some manufacturers expect

automation, others

unit

generating

major

year.

,•

service

placed

annual

M' n't

very

1960.

The

for

needs

substantial because
Continued

page

108

jS.U

Number 5918

191

Volume

The Commercial and
Financial Chronicle

during the initial phase of devel¬
opment, and (c) 4o purchase

Businessman's

additional

machines

Morgan Stanley
Heads Conn. Light
Bond Offering

manufac¬

ture concealed

zippers.... '
contemplated that the pres¬
financing, plus cash generated

It is
ent

from its
operations, will enable
the company to
complete its initial

phase

event

operations

the

development.

company

.financing

Public

offering of $25,000,000
The Connecticut
Light and Power

the

are

successful,
require future
its
plant,

may

Co.. first and

refunding mortgage
bonds, series P, dated Feb.
1, 1960, and due Feb. 1, 1990, was

made

Laws

and "The General
Welfare" — Conference on Eco¬
nomic Progress, 1001 Connecticut
Avenue,
N. W.,/ Washington 6,
D.
C.
(paper),i! 500
(quantity

request).

prices on

The company has no
or

Estabrook

the

raising

tional funds.

such

program,

company's

porate

Co.

The

bonds

1960

are

The
able
to

general

added

funds

and

the

yield

financing

company's

used

other

cor¬

be redeemable at the

Street.

31,

to repay

in whole

100%

1961

and

cost

Officers

James

are

Joins Walston Staff
(Special to T*ie Financial Chronicle)

EUGENE, Oreg.
is

will

option of the

—

Bruce P. Lord

Walston

Broadway.

&
.

witz

de¬

thereafter

conducting

business

from

Avenue.

31, 1985.

securities

offices

Foundation Annual Report,
Ford Foundation,; 477
Madison Avenue,- New York 22,:
(paper),

■•v-w,

;

Mar-"

Islands—J.' Wal-;

Study of the

ket

Company,

Thompson

ter

>
^

Celotex

4 2 0

Lexington Avenue, New York

17,

York.

New

Commission

Interstate Commerce
Annual

—73rd

Report

for

the

Highlights for 1959

Fiscal Year ended June 30, 1959—

Superintendent
U. S. Government

Documents,

Printing Office,

Washington 25, D. C. (cloth), $1.75.

Earnings increased 32%-Sales increased 12'/2%

Investing in American Industries:

Opportunities

Analysis, of
—Edited

Today

Lester V. Plum—
Harper & Brothers, 49 East 33rd
by

Street, New York 16, N. Y. (cloth),
$6.95.
Measurement of Employment Cost
and Prices in the

Steel Industry—

By Harleston R. Wood, President
of

Alan

Wood

from the

Steel

November

Company—
1959

Review of Economics

tics,

issue of
Statis¬

University

Harvard

and

Press,

Copies of our Annual Report for the
year ended October 31, 1959, are

Cambridge, Mass.

fiscal
Money in

Theory of Finance—

available upon request.

John G. Gurley and Edward S.
Shaw—The Brookings Institution,

The Celotex

II rite to Secretary,
Corporation, 120 South LaSalle

Street, Chicago 3, Illinois.

722 Jackson

Place, Washington 6,
D. C.
(cloth), $5.00.
.

State

the

Dollar—An

excerpt

from the Report of the Chairman
of
the Advisory
Committee on

Special
the

Activities,

presented
at
Convention
Meeting—

1959

Advisory Committee on
Activities, The American

Association,

East

Special
Bankers

36th

New York

16, N. Y.

Studies in

Company

Street,

(paper).
Finance—A

Symposium Edited by Brian Tew
and R. F.
Henderson—Cambridge
University Press, 32 East 57th St.,
New York
22, N. Y. (cloth), $6.50.

Burnside & Co.
Offers Fastline Inc.
Common Stock
to

cii
s«e

Co.,
'

w-V'u? c

circular

Inc.

*nc-»

offered

"do-it-yourself" markets are expected.
We presently anticipate no relaxation of competitive conditions
and recognize the necessity of continuing to intensify our efforts to
future
in the

zipper

price

proceeds

by the

was

financing

company (a)
loans

and

amount

made

$30,130

supply

in-

working capital pending the

c°nsumination

this

financing,

pay approximately $28/280
accounts payable,
(b) to provide

^ing capital for,

among

*llgs» the purchase of
a

market

men*»

labor

and

raw

other
mate-

product devel-

and

7,965,369

Total Current Assets.

Property, Plant

and

Less: Accumulated

27,741,261

Equipment

79,119,421

depreciation and depletion

Nf.t Property, Plant and Equipment.

28,059,557

51,059,864

Investments

1,236,643

Prepaid Expenses

and

Deferred Charges

Total Assets

643,264
,,

$80,681,032

building industry.
LIABILITIES, CAPITAL
president

AND

STOCK

SURPLUS

Current Liabilities:

COMPARATIVE STATEMENT OF
FOR THK

per

h®

aggregate
which were

8,729,052

11,046,840

manufac-

this

advances

(net)

Inventories

Celotex line of products is
improved and enlarged. We are optimistic for the
and' expect to maintain the strong position we have long held

INCOME

YEARS ENDED OCTOBER .11,

1958

1959

^V1 1iepay
be used

ncl

Accounts receivable

continually being

0m P a ny

e °ffering

erim

Cash and U. S. Government securities

share of the market. The

increase our

share.
The

1959

Current Assets:

strike/was felt in the

repair, remodeling and

of october 31,

100,000

stock

common

located at 8
ashington Place, New York City.

stemming principally from the steel
fall of 1959 and has continued in early fiscal
1960. Tightening in the mortgage money market indicates a drop in
new home construction. On the other hand, a high rate of non-res¬
idential building construction and continued expansion of the
Some business dislocation,

ASSETS

12' Mortimer B. Burn-

al'e.s of the

offering

Net sales were $76,242,172—second highest in the company's his¬
tory—and earnings were $4,131,907 in the year ended October 31,
1939, compared with sales of $67,726,783 and earnings of $3,127,512
the preceding year. After preferred dividends, the earnings were
equal to $3.76 a share on the 1,028,651 common shares outstanding,
compared to $2.79 a share on the same basis in 1958.

overhead,

Net Sai.es
Costs and
Coft of

.....

Y.......... ■':>.....

$76,242,172

$67,726,783

Expenses:
.

Depreciation and depletion .....
Total Costs and Expenses.
Income from

Operations.

Other Income

Income Before

...

(net)
Income Taxes.

58,83-,728

2,662,365

68,131,777

65,-86,360

2,845,417

.;....

Income Taxes /...,
for the Year. .............

roA

Net Income

•

payable

$ 4,138,432

Accrued expenses
Taxes (less U. S. Treasury

Payments

1,703,760

obligations)
long-term debt due within

Total Current Liabilities.

61,495,093

M 10,395
73,512
8,183,907

0,231,6%
HI4,18)
6,117,512

Net Worth:
Preferred stock.

$ 3,127,012

Paid-in
Earned

20,450,000

....

1,598,000

l*~

5,137,250

1,028,651

surplus
surplus

10,581,140
34,282,064

Total Net Worth

Total Liabilities

950,000
7,603,927

Common stock.......

4,052,000
$ JJ3L90i.

Deferred Federal Income Taxes.

811,735
one year

Long-Term Dert Due After One Year,

sales and selling and

administrative expenses.

•

Accounts

and

PATERSON, N. J.—Jay A. Horo¬

1959—The

Hawaiian Market—Detailed

Co.y Inc.,

Jay A. Horowitz Opens

plus

including

prices

East

part at

105%

and

with

now

101

Ford

N. Y.

Takashasi, Treasurer.

2.::';^:

en¬

President;
Julius
Y.
Yacker, Secretary; and Frank Y.

prior

bonds

annually

after Jan.

Street

business

Yacker,

non-refund¬

time, initially at

creasing

Inc.

securities

1965.- The

interest

Salle

Advisors,

from offices at 208 South La Salle

company's
will require

lower4 interest

Feb.

Jan.

for

gaging

The

will

bonds

Net proceeds from the

Investment

$1,000,000.

accrued

will

CHICAGO, 111. —La

part

construction

department, $29,000,000; gas de¬
partment, $2,000,000, and general,

approximately 4.94% to maturity.

addi¬

107

La Salle St. Inv. Advisors

approximately
$32,000,000 in 1960, which will be
apportioned as follows: electric

any

Feb.

incurred
construc¬

finance

1960

purposes.

expenditures

company,

from

the

construction program

under¬

expenditures, and

est

underwriting

loans

with

the

offered at 99% and accrued inter¬

other commitment which would

assure

Jan.

bank

connection

tion

writing group jointly managed by
Morgan Stanley & Co.; Putnam &
Co.; Chas. W. Scranton & Co. and

company.

Federal Budget

outstanding
in

47/s%

enlarge

Manual of Commercial
purchase additional machinery
I960—Edwin B. Moran, W. and
equipment and to supply re¬
Randolph Montgomery, William C.
quired
working
capital.
It
is
Porth and Ernest A. Rovelstad,
contemplated that such additional
editorial board — National* Asso¬
financing would be obtained
ciation of Credit Management, 229
through the sale, either public or
Park Avenue South, New York 3,
private, or both, of equity and/or
PL y. (cloth), $12.00.
debt / securities of the
rredit

(359)

51,029,105
Net Worth.

$80,681,032

431
'

18th
:

108

The Commercial and

(360)

Continued from page 106

increasing

for

need

Perfection in

bisphenol A,

perfection

in-process

cleanliness when automated is

manufacturers

because

the

cleaning.
must

large

savings
through elimination of hand labor and rejects.
Because of the
Detrex

for

effected

increasing tempo of technical progress,
scheduled

have

increase

direct

re¬

spending in 1960 of 33^%. The research will be
directed on a broad front to improve products and proc¬
esses

well

the

development

chemical

new

structural laminates.
polyethylene, used tor
packaging and housewares, is being expanded to 100
million pounds at the Texas City (Texas)
plant. The
plant's styrene monomer capacity was increased ea*ly
in 1959 by 40 million pounds. Styrene monomer is the
raw
material for plastics and synthetic rubber. Plans
increase

capacity
Daily

E. J. THOMAS

Chairman

the

Board,

1959

Rubber Co

and

consumption in the U. S. exceed 1,650,000 long
compared

the

expected

been

of 1.625,000
production in

tire

forecast

several million
Auto

tire

pected

straight

sales

68,000,000

Truck

replacement

over

tire

sales

1960

2,000.000 units,
mark.

result

tire

exceed

probably
will
$300,000,000.

tube

the

To prepare for the decade

retail

1964

volume

ahead, Goodyear will have

invested by the end of 1959 a record
$365,000,000 in
capital expenditures and expansion since 1955. The most
of these

recent

(1)

tire

tube

under

the

Somme River.

for

manufacturing

Passenger, truck and farm
original equipment will be

replacement and
produced for France and the
and for export.

common

European market

plant

also

retread

roll

will

off

the

produce

business.

assembly
tread

line

rubber

1960.

for

The

expanding

(3) A $4,000,000 expansion of earthmover tire produc¬
Goodyear's tire plant in Topeka, Kan.,
will begin soon.
Expansion will increase earthmover tire
capacity at Topeka substantially and provide
tion facilities at
which

for the

will

manufacture of increased tire sizes.

measure

over

and will be fitted

three

Earlier last year

feet

The largest
sidewall to sidewali

from

rim 45 inches in diameter.

installed tire building machinery
in Akron to manufacture tires
weighing nearly two tons
and

measuring foui feet it. width

and ten feet in

it is coated with

inch off and

assure

result

cision

passenger

models

these

and

one-fifth
,

fast

much

$613,188,000

new

production
tires

car

one-fourth

and

over

ago.-

fifty thousandths of an
profiles. Partially as a

50%

controls,

the

$519,705,000

dated

net

for

earnings

S28.148.000

for

the

new

both

market will

the

durable

ALLEN

earth-moving

equipment

unique

Consolidated earnings

than

the

for

The

There

the

Our • operationis
misunderstood, for ,we are the only
produces, sells directly to the con¬
and supervises the installation of its products
by
often

trained mechanics.

own

plan

further

guarantee

of gauging

way

our

un¬

the total

customers. However,

highlights were: The formation of the
Corporation,
Monsanto's
fifth
50%-owned
domestic associate, which will manufacture a
paper and
laminated

board

material; the election of Alan
Temple, Vice-Chairman of the Board and a Director

of The First

santo's

National City Bank of New
York, to Mon¬

Board

Directors; the delivery of the first
shipment of propylene tetramer from the Lion Oil Divi¬
newly completed facilities at El Dorado to the
Organic Chemicals Division plant at
Monsanto, 111.
Monsanto, which was formed in 1901 in St.
Louis, has
world-wide assets in excess
of
$850,000,000. Starting
with a
single product, saccharin, which it
began pro¬
ducing in 1902, today we make thousands of
chemicals,
sion's

operating, territory > along the
eastern seaboard, where we already
have more than 90 branches, we can still increase
our
marketing coverage. Right now we estimate a potential
for 125 branches in the territory., By. the time
we've
secured

operate

these

trained

sales force of the size required to
branches,r we- will : probably .need 150
During
1959 we
increased
the
number
ofi.

offices.
branches

Nineteen
for

and, expect

I960.'

Tilo.

hundred
The

dividend

extra,

the year to

Strides

and

impressive evidence
for

For

based

new

year

the

home

Tilo's

forecast

were

made

organization.
sales which

earlier.

This

the

because
its

ELMO

new

age

which

late

the

first

years

boom, which

the

road

building

now

schedule

in progress or
will

Tilo's
that is

is
a
replacement
market
expanding rapidly for several

reasons.

The

most
important of
explosive increase in
housing that has occurred since the
end of the Second World
War, especially in the heavily
populated Northeast states where Tilo operates.

George A. Tobin

these

the

reduce

ex¬

continue

in
a

somewhat

less
tempo.
Sources of
adequate water for industry and the
expanding population in the South¬

west is located almost

Oklahoma.

eastern

number

continue

exclusively in

The construction

these

1959,

and

through

sizable

the

lakes

will

work

beyond

and

1960.

Business should continue
first

half of the

same

but

plateau

of the

indicated

defense

program

some

national

during the
coming year on the
the last half of 1959,

ployment problems in

R. Elmo

Thompson

revolutionary changes in the
could cause overcoming em¬

many

areas

aided by defense

now

plant contracts.

FREDERICK

TOBIN

President, Tobin Packing Co.
The final outcome of the steel strike

will have

big bearing

1960.

business

looks

Congress will be forced to

law

prohibiting

regardless

Business
bound

the steel

and

signed contract

injunction is

pass

national strike
whether
the

companies have
the 80-day

before

over..

conditions

for

1960

are

good in practically all
lines of business. Salaried people and
wage
est

earners' earnings

that

in fact

this country

are

has

the high¬

ever

seen,

higher than anywhere in the
Employment is good. There¬

world.

F. m. Tobin

and

about

Co.,

and

good volume but home building at

years

postwar

began

Trust

employment in 1960. Com¬
public construction and

mercial

any

1945.

problems of over-expansion, surplus
products and foreign imports. It will
likely be more aggressive and stimu¬

fore, business should be good.

remodeling first become necessary.
During 1.960, our industry will begin
servicing commercial, residential and
industrial buildings completed dur¬
building

in-

THOMPSON

has about completed numerous economies to

indus¬

repair

made

penses and solve the

years

and a multiple of affiliated businesses
are
a
major factor in the economy of Oklahoma. That industry

immediate

least

y -

Petroleum

construction, but in
are

cents

during

Tulsa, Oklahoma

union

our

paid

capable and hard hitting sales
of this training is reflected in

again

year

quarterly

declared

dividends

President, The First National Bank

construction
or

measure

buildings that
old,

good

regular

top last year's high of $14.3 million.

the

about

try does not
market

and

GERALD

TOMPKINS

President, American Viscose Corp.
American

Viscose

a good year in 1959
point to another good year' in 1960.
Sales of rayon fibers were well up over 1958 and sales
of cellophane packaging film were the highest ever.
It was also a good year for the
company's jointly owned
subsidi¬
and

all

aries.

Corporation had

indications

Sales of the Chemstrand Cor¬

1959

Monsanto

$25,000,000
which

spent a record
technical
activities

included

research.
This
include capital ex¬
penditures such as for the Research
Center, The money spent on
research
amount

enabled

does

Monsanto scientists

technologists
ing in many
search,

not

both

and

to continue
areas

their prob¬
industrial re¬

fundamental

and

applied.

Domestically,
an

Charles

Also

Thomas

St.

>di ide
goes

production

into

paints,

started

was

expansion

work

Louis which

will

Pounds annually
capacity.

finishes
a

50%

and

The

was

one

add

its

chemical

reinforced

expansion

started

our

plants in

million

maleic

boats.

capacity

for

new

roof

siding

the part of the

theless

basic

can represent a deferrable purchase

consumer

human

need

modernize and

in hard

times, it is

(shelter), and the

never¬

urge

improve property is strong today
among
homeowners. There is an economic incentive
too, since
a
Tilo roof or sidfng
application can cut fuel costs
by
as
much as 30%,
at the same time
providing other
reductions in home maintenance costs.

While

structually

sound, other buildings in need of increased attention
in
the

year

ahead

standards.
in the

an-

ultimately

plastic

While

are
those built to "minimum"
This market too will swell
our sales

coming decade.

Because

Tilo

does

struction—because
as

tions

not

depend

we are as

much

largely
a

postwar

potential

new

from

year to

year are

not

our

con¬

service organization

manufacturing enterprise—actual business

condi¬

primary considera-

poration,
and

nylon

kan

which
fibers

produces

acrylic
Ketchi¬

Pulp

were

up.

Company in Alaska pro¬
pulp than ever before.
AviSun, Inc., formed during 1959 in
equal
partnership
with
Sun
Oil
Company to produce the new poly¬
duced

propylene
polymers,
fibers—and
films, has already begun production
of

polymer and packaging film and
will begin producing fibers in Janu¬
ary, 1960.
In the fibers and fabrics

field,

pro¬

duction Of

fibers Was Up abOUt 10%.
G.S.Tompkins
"Avron," a new high strength rayon
staple, was introduced this past fall in a group of fab¬
rics made from 100%
high strength rayon or in blends

with other synthetic

natural fibers.

They

Continued

;

Impact

should

was

will continue

and

1960 to build and train

TOBIN

based

"'starts"

cents

conditions for

long experience in this field,

this 1 growth

$1.40, compared to $1.30 in 1958. rv;-}X;

support the favorable
modernization industry in 1960.

must

fifty-nine
its

bringing '-total

President, Tilo Roofing Company Inc.
outlook

continue

raised

company

from

year-end

IV.:"•vV:

that

There

"package"

12-state

our

plastics and petroleum products.

GEORGE A.

our

by Tilo's offer of a 10-year
materials and workmanship.

both

Within

began

Fome-Cor

plastic

The appeal of

enhanced

heavily-populated

definite

still

are

the

ing

con¬

cents per

in the last quarter.

apparent
Other 1959

site

com¬

industry
large steel
automobile and appliance indus¬
tries, and slowdowns in the sales pattern in these areas
such

consumers,

Chemical Company's new Research Center
at the headquarters
location in Creve Coeur,
Mo., sym¬
bolized at year's end the
company's progress in the field
struction phase is scheduled for
pletion in 1961.

$199,480,-

period of 1958.

it has been
appreciable. Direct sales to the steel
modest but several products are sold to

built

chemical research. The first

com¬

are

range

the

were

quarter of 1959

shortages

Company

work

Consoli¬

from the

$14,618,000, equal to 63 cents

reliable

effect of the steel

that

above

1958.

final

company
of its kind
production and installation

engaged in the
and sidewall - products.'

and

manufacturer
sumer

largest

the

nine

Earnings

common

quarter of 1959

were

third quarter of

results

1960

those

18%

1958.

$2.14

first

72%

share, compared to $11,407,000 and

Tilo

exclusively
of
roofing

sales which

period of

months

were

dated sales for the third

of Monsanto

Early

the

OOO compared to $182,430,000 for the same

THOMAS

100%.

pared to $1.27 for the first nine months of 1958. Consoli¬

better than tires produced five

President, Monsanto Chemical
Large

for

$48,377,000,

same

Monsanto consolidated

——___—~—______—

CHARLES

1959.

increase

same

were

high-pre¬

for

built

To^ay,

foreign

50 to

(world-wide)

showed

accurate tread

the replacement

year

■■•years

rubber, test tires for roundness and

are

for

report

1959, consolidated

height.

production is benefiting from ^uclear and elec¬
systems being installed in the company's
vast production network at a cost of
$6,Of.,^00. Com¬
ponents maintain uniform thickness of tire cord fabric
as

every expectation
decades to come.

R.
financial

control

reject those that

for

$12,000,000

Our

tronic

have

in the

pattern in

assets

equities ranged from

around

were

■

(2) Af fifth Goodyear Canadian plant at Medicine Hat,
Alberta, where passenger, truck and farm tires will be
produced for the Western Canada market.
Tires are
scheduled

estimated

certain.

plant now
construction in Amiens, France, 80 miles north of

Paris
tires

undertakings include:

A $7,000,000

office building

new

gross

sales

1959.

Monsanto's

totaled

replacement sales
1958

months

E. j. Thomas

records

and

months

safety glass.
Turning to the

over the next five
years are forecast with the automobile
registration total reaching 68,000,000, a gain of 10,000,000.
Trucks are expected to number 13,300.000 in five
years
marking a 12% increase over the number now in use.

the

nated

approach

sales

nine

which

are

122% increase

new

our

plant;

headquarters location.

December the company announced plans to build a plant
in the European Common Market area to manufacture
its Saflex plastic sheets used as the
interlayer in lami¬

times the 1940

seven

Exciting

(111.)

Creve Coeur

both in good times and bad. mi
to continue this growth patten

40 years

past

Expenditures for expansion by the overseas subsidiaries

56,605,000

will

the

foreign subsidiaries
advanced 16% and net income 59% for seven companies

1940, and tractor and implement

renewal

expansion which will increase by
intermediates production capac¬

Tenn.;

the hydrogenated

affiliates totaled $190,000,000 at the end of 1958. For the

tire sales will

Columbia,

first

66,000,000 level in 1959, compared

reach 9,875,000 units,

Overseas,

record for the fourth

with 61,570,000 in 1958 and
in 1957.

announced

projects

begun in 1959 included: Construction of a new
ultra-pure silicon plant in St. Charles County, Mo.;
further modernization of the elemental phosphorus plant

Such sales will reach

year.

construction

domestic

and/or

ex¬

refinery at El Dorado, Ark.

ity at the Monsanto

1960

increased by 4,000

at our Lion Oil Company Divi¬

program

Thursday, January 21, 1960

■

because of an expansion and

(29,000 to 33,000)

Tilo has doubled its business every decade for the

tion.

its

thruput has been

crude oil

Other

than 1959.-

new

sion

25%

tons.

125,000,000,

replacement

total

will set

the

consumption

Pneumatic
has

November.

modernization

Goodyear Tire

Scientific achievements and innovations will pace the
diversified rubber industry to new heights in 1960. The
advances will come in a year that is expected to see
as

million

200

least

styrene monomer
pounds a year were

overall

company's

nn.

barrels

tons

the

announced

products.

rubber

intermediate which has among its end

products surface coatings and
The
production capacity of

Financial Chronicle

are
on

already

page

110

■

Volume

Number 5918

191

The Commercial and

Chronicle

be treated like
any other
In
any

MUTUAL FUNDS
BY

ROBERT

(361)

event,

industry.
industry has

the

until Jan. 29 to submit its ideas
As

into the

move

the mutual

fund

new

year,

still' try¬

field is

ing to capture the significance of
the redemption
of mutual fund
shares

Serving and Growing

during 1959—estimated at
$780,000,000 and a rise of over

contractual

50% from the $511,000,000 of 1958.
The N.A.I.C. insists that this "rep¬

The
for

ranks of Wall Streeters who,
sales,
many years, saw only a threat

plan sponsor, total
which'topped $2 billion,

were

their own business in the de¬
all
veloping of mutual funds fields

than the total assets of

mutual

funds

only

decade

dwindled to a cornoral's guard. Brokers, with few
exceptions, learned in 1959 that
here was a growth field serving
a vital public need and there was
a scramble
to get abroad. It is
simply impossible to ignore a field
that has 4,300,000 ./participants, a
rise
of nearly
20% /from the
3 600,000 at the end of 1958. And

ago.

there are ; s o m e ; 300,000
closed-end shareholder accounts,
the ? whole
investment;, company
business totes up to some 4,600,000
accounts. ",//// 77X7//'^C///
Total net assets: of the 155 mu¬

quisition of individual stocks. But

by now,

has

since

acquire

interest

range

stocks

cents

for

wide

little

day. This approach, of
is reminiscent of the

course,

Monthly

Investment

Plan

that

brokers have sought to pop¬

some

ularize. The M.I.P. is aimed at
the

big

difference

mutual

and
be

fund

the

which

drive

the

between

field's

broker's

and

seems

energy

with

people

ap¬

achievement

financial
it

course,

objec¬

doesn't

say

part.

Others

have

not

hesitated

market

tions

tended

stock

to. falter,

redemp¬
There is

dry up.
belief that when

general

the

market

weak,
mutual
fund holders sit tight.
v.
What
course,

remains

of
is how they will react if

when

and

tained

bear

which

this

of this growth

spots

Their

field.

assets

totaled

investment

$13,200,000,000 and
assets were

company

$1,600,000,000. 7 ;

be best remembered

for the foot¬

hold

gained by the accumulation
plans and the upsurge in manage¬
ment company offerings.
a
r
of

success

accumulation

plans, despite scattered criticism
of front-end loading charges and
the prospect that many subscrib¬
ers

would be unable to keep them

going, has been little short of sen¬
sational. Indeed, accumulation
plans are outpacing the rest of the
business by a wide margin. The
N.A.I.,C. has estimated that peo¬
ple who acquire an investment
stake

quarterly
basis had 1,150,000 plans in force
as 1959 drew, to a
close, compared
with only 878,000 a year earlier.
on

fund

hangs over these mutual
The Securities and

advisers.

Exchange Commission proposes to

/'But; while 1959 was another
year of growth, it probably will

The

cloud

monthly

the proxies of the funds,

revamp

requiring
sure

complete

ment advisers.

has been

The SEC proposal

prompted by the growth

of management company
not

all

which

have

market

the

well
SEC

disclo¬

of their relationship to invest¬

offerings,
stood

place.

The

insist that mutual fund
be advised who the

may

shareholders

advisers

fund's

are,

much

how

they're getting out of it, the state
of counsel's financial health and
the

connection

between

under¬

writers, brokers and advisers in¬
volved
in the operation of the
stockholders' business.

for the mutual
central
organization, the

Spokesmen
fund's

nard

North

Luce,

Jr.;" President

American

invest¬

Selected

special economic
review

fund's annual report

the

being mailed

shareholders.

The

review

short,

stimulated

american

states, in part: "In
conviction that,

our

demand

consumer

and

business spending and sup¬
ported by a modest rise in over¬
all government spending and an
improved foreign trade situation,
economic

inc.

in
1960
will
high ground."
The five largest individual hold¬
ings at market on Dec. 31 were:

activity

Prospectus from your dealer or

new

International

Business

Selected Investments Co.
139 S. La Salle St., Chicago 3,

Machines

sus¬

market, the likes of
generation has never

Co.

million;
New

fourth

duPont;

and

Nemours &

seen,

into

move

of Canada, Ltd., $7.7
General
&
Telephone
Electronics
Corp.,
$6.3
million;
Republic
Steel
Corporation,
$6

Nickel

(E.

I.)

EITHER PROSPECTUS
FREE ON REQUEST

Company, $5.2 million.
during
the

Incorporat ed

investments!

quarter

included

Bankers

Company, 10,000 shares; B.
F.
Goodrich
Company,
25,000
shares; Manufacturers Trust Com¬
pany, 15,000 shares; Sanders As¬
sociates, 15,000 shares; Scott Paper
Company,
25,000
shares;
and
Square
"D"
Company,
66,500

ESTABLISHED

A mutual fund

list

net

of The

assets

liam Street Fund
to

rose

One

Wil¬

at year-end

$295,905,000, equal to $14.02

per

This compares to total net

share.

of securities

selected

a r

for

|,;
|
j

capital and income.

j Incorporated

by One William during the

fourth

Total

| V

investing in

Additions to portfolio securities
made

The Funds Report

1925

possible long-term growth of

shares.

Investors

Trust

serving and growing.

quarter
included
Clark
Equipment Company, 5,000 shares;
Container Corp. of America, 20,000
shares; Hooker Chemical Corpora-1
tion, 10,000 shares; International
Nickel

shares;

Co.

Copper

$13.05 per

30, total net assets

were

$277,287,-

000,

share.

list

income.

investing in

of securities

for current

5,000 shares; Lilly Tulip Cup Cor¬

On Sept.

A mutual fund

Corp.,

Income Fund

Canada, Ltd., 5,500

Kennecott

1958.

poration,/ 4,000
shares;
Phelps
Dodge Corp., 14,500 shares; Schering Corporation, 5,600 shares; and
the
Hertz
Corporation,
13,000

assets of
share

$276,747,000,

Dec.

$13.18

assets

net

Net

31,
per

Starting

1958,

May,

were

$11.56 per share.
unrealized appreciation of ap¬

$221,221,000,

million was in¬
cluded in year-end assets as were
net
long-term
capital gains of
proximately

$10,713,000

declared

board

capital

cents

from

per

net income.

ordinary

distributions
to

tax basis.

Both

payable Feb. 19

are

A prospectus on

your

200

Securities sold during the fourth

Savers,

investment dealer.

The Parker Corporation

quarter included Beech Nut Life
Alkali

each

fund is available from

shares.

Berkeley Street

Boston, Mass.

30,000 shares; Diamond
Company,
25,000 shares;

Eastern

gains distribution
share in addition
81/2 cents per share dividend

special
of

$40

fund's

The

Airlines,

Inc.,

50,000

shares; Maryland Casualty Com¬
pany, 14,800 shares; Middle South
Utilities, 40,000 shares; Pittsburgh
Plate
Glass
Company,
40,000
shares;
Smith Kline & French
Laboratories,

30,000

Continued

shareholders of record Jan. 19.

saying that the SEC
may be going beyond the law in
About 360,000 new plans — a requiring this overhaul of proxy
thousand a day — were launched material. According to Herbert R.
last year, against 243,000 during Anderson,
speaking for the
1958. Stated another way by Bar¬ N.A.I.C., the SEC has no right to
N.A.I.C.,

million;

began

this, obvious
appeal is the fact that it
while closed-end company assets costs a little more to
operate a
came to $1,700,000,000. At the end
largo fund than a small one. Now,
of the previous year, mutual fund with
the advent of the new year,

the fund's

market

witnessed. Going along with the
and 24 closed- proach the task.
almost universal expectation that
members
Management companies—prob¬
nothing like the 1930's is in pros¬
of the National Association of In¬
ably the most notable feature of
pect, the year now entered on
vestment Companies are estimated the
year just ended—are regarded
promises to be another 12 months
to have risen to $17,400,000,000 at
by many as one of the brightest

1959. Mutual funds ac¬

investment

Corp., $10.1 million; International.

end investment company

counted for $15,700,000,000 of

adviser, in

was
moving up in the
early part of 1959. As the overall

tual fund members

the end of

Brothers,

and

reach

point out that the greater part of
these redemptions came while the

the

contractuals

M.I.P.

mutual

ac¬

the

long-range

tives."
what

One contractual plan offered
by
his firm permits the purchaser to

resents, in part,

continued uptrend in busi¬
activity" is forecast by Leh¬

man

ment

proposed changes.

RICH

"A
ness

109

shares;
on

page

So-

111

are

The

of regulate fees. He has said that all
the fund managements want is to

ONE

Planning Corp.,

ONE WILLIAM
STREET

WILLIAM

ana

STREET
Massachusetts Investors

GRoWTii/STUCK FI nD

M as sac hit setts I rrve stars

FUND,

T rust

Inc.
A

Century Shares Trust
Canada General

diversified mutual fund investing selectively

in securities of American business and

with

the

capital growth and of providing

Fund

sonable

industry

objectives of achieving reasonable

current return to

fair and

rea¬

owners.

LIMITED

For prospectus see your investment
or send this
coupon to
A
■"

prospectus relating to

the shares of any

investment funds may be obtained from

of these separate

authorized ea etsor

;

company, inc.
:Tll'DicVdNSHsiKR Street « •

Boston

'NEW-YORK
61

Broadwav

LaSallc Street

~wi LLIAM "STR let" SALES"lNC~ ~"""""
-

■

Send

me a

New York 4, N. Y.
prospectus

and literature

The One William Street

Fund, Inc.
Hugh W. Long and Sqtnpaily;

9,. Mass.

Name
LOS

'T CHICAGO
iac South

One William Street,

Van ok, samikrs a.

dealer

jio

West

ANOEI.ES
Seventh Street

,..!

Address

City

State

j^!87B

Elizabeth 3, New Jersey
'J,

um/'

iLO

110

The Commercial and Financial Chronicle

(362)

Continued from

reaching retail outlets in significant quantity in various
apparel and home furnishing items. American Viscose
is highly optimistic about TAvron's" future sales due to
its enthusiastic reception. The fashion industry already
considers "Avron" one of the most important develop¬
happened in the rayon fiber field.
"Super L," Avisco's smooth rayon staple

that

ments

Sales

has

engineered specifically for the carpet industry, were up
75%. "Cotron" fabrics, just in their first full year on

outlook

one.

While it is expected that

the

for

market, had sales on over

industry for

pulp

help the

profit picture.

costs

While the outlook for 1960 is quite

that

ize

In the

7/7 '

■

production. However with
increases ' in world

and higher living

population
in

ards

stand¬

where

three

from

at The

We,

business

satisfactory.
'
\ *
Pulp
manufacturing
plants- are
large
undertakings requiring any¬

Upson
it has

selected

"Tyrex" tires as
Sales of tire cords

original equipment for 1960 models.
25%.
As the world's largest producer of cellulosic fibers,
American Viscose Corporation expects production of its
and yarns were up

fibers
the

long

1960

continue

about

the

1959

level

and

outlook is highly encouraging.
Avisco cellophane sales also were up substantially.
The increase in sales was partly due to a
relatively new
film, designated REO, which is specially coated for
supermarket wrapping of meats.
To

range

the

meet

market's

growing

demands

for

Avisco

cellophane, operations of the firm's Marcus Hook, Penn¬
sylvania, plant were stepped up. AVC is the world's
second

Hook

largest producer of cellophane and its Marcus
plant is the world's most modern and highly in¬

strumented facility for making cellophane.
Perhaps one of the most promising features of viscose
fibers and films is the almost limitless

opportunity

improve and adapt them for special
with its

extensive

research

uses.

Consequently,

and

development activities,
American Viscose Corporation anticipates a continuing
flow of new cellulosic products from its laboratories
and
plants, both during 1960 and in the company's long range
outlook.

JOHN

;

pulping woods

Long Island will share fully in the high
level of business
activity in 1960, which is being pre¬
dicted so universally by economists and
business leaders.
Employment has recently broken previous records and
family
income,
which
has
been
higher in our territory than in al¬
most all

area

excellent.

1958. «However,
low supply of

and

the

high

money for

mortgages may
pansion in 1960.

inhibit

further

into

manufactured

can

lumber

the

from

most

formerly

industry,

destroyed

These consist of

chlorine,
soda, etc. are also in plentiful supply.
anticipated that exports of woodpulp will pretty
well follow the pattern of the past two to three years
with a possibility of some increase.
Just what effect
economic integration in Europe and elsewhere may have
is

woodpulp

the

claim

with

the

exports

unknown

to.

intention

what

the

ties, $11 million
the

erection

property
kw.

new

part,

although there
of

few

enter

are

our

area—even

year

1960

local

healthy

operations

both

centers

operations.

and

Another

generating unit will be completed next year,
1956.

erating units, to
now

the

Plans and commitments for new gen®
be in service in 1962 and in 1963 are

well advanced.

The

1962 addition will be a
100,000
peak shaving unit which will cost much less than

conventional

generator

the

same

capacity.

This

Specifically,

optimistic

very

conditions

which

Mid-South

our
.

for the

' '•

had
due

loan

transmission

and

distribution equipment to
strengthen and extend service
in all
parts of Long Island. Our gas business has also
been growing very
rapidly, and we forecast a further
gain in 1960.
Gas supply is
adequate for continued
growth and we expect to sell at least
as
many space

heating installations

as we
did in 1959.
Almost all of
investment in gas
property will be for
the transmission and
distribution of
substantially larger
quantities of gas.

the

projected

^We willof
continue to face the problems of increases in
the cost
operations by taking
advantage of every
technological development in our
industry and by further
improvements in
efficiency and productivity. These
piograms

have

enabled

!^oI°«yels Delow thl .leJel
m

reduce

the

number

in 1953 in

of growth in
+1 P revenue which are now about double the levels
that year.
As a result, our
profit margins are im-

fnmm Vvp^
benefits are enabling us to offer cusof
U.er service at prices which make electricity
Mso elvinff1
econon}Jfal household servants, while
sound investment0^6"
SeCUrity and «rowth °f a

holds

good promise for still further
1960 and the years
Any forecast for 1960, how¬

that

account

into

take

must

increases

accentuated

were

with

by-

notable

One

of 1959

development

the

opening of the new St.
Lawrence Seaway with its stimulat¬
ing effect upon the general business,
climate.
Seaway traffic is already

evidence

our

faith

our

serve

Van Derzee

business

operating territory.

was

economic

the

again present in 1959

additions to property and plant totaled approximately

$38 million, marking the end of the first

de¬

year,

1960, with
holding firm. We ex¬

year

four-

$155 million construction program.

Power

availability

increased

substantially in
generating unit, with a1
rated capacity of 275,000 kilowatts, was added to the
500,000 kilowatt capacity of the first four generating
was

pect the demand for term loans and
Norfleet Turner
temporary capital loans to increase.
The inability of our local finance
,
companies to obtain credit lines elsewhere will alsb

December of 1959 when the fifth

bring heavy

broken

pressure to bear for

increasing present

com¬

Despite this expected decline (residential
building may
be down as much as
1,000 units, or 14%), our bank's

addition,

life

make

and

previous year
which
was
marked
by a general
decline in business activity.
7

will

investments

production

future of the areas

easing in the demand for loans may be
felt in the field of residential
building as the legal rate

substantial

Company and the broad
activity which it serves,

in the home easier and better,

Continued

activity.

plant will be most valuable during the
period around
the winter holidays when our
demand is high, and will
help keep the co?t of electricity down. In
make

farm

economic

good business year. The trend toward the
electricity to turn the wheels of industry, boost

use

Electric Power

enterprises located within

mand to again increase in

interest rates

DERZEE

VAN

making
good use ;of Milwaukee's
Gould W.
outstanding ' harbor facilities which
stand as
an
attractive gateway
to
the midwest and especially to industries and

economy,
area was not

expect

diversified

comparison

business

Wisconsin Electric Power Company

Wisconsin

1959

J^s a result, we enter 1960 with the
largest deposits and loans on record.

other

185,000

stimulus

settlement of its contracts. However, we
that, barring another major shut*

Chairman of the Board,

ever,

adversely affected by the steelstrike, and due in large part to the
exceptional crop year which added
great

regard to the

ahead.

national
our

spots

was

This

At present,

1961.

outcome

to say

better than

predictions

earlier.

ap¬

improvement in

some

year

Niagara Frontier and have

eventual

the

businesses.

our

was

optimistic
the

fair

was

TURNER

trouble

good last

possible readjustment in our economic pattern in another
couple of years, the 1960's look good for expansion of all

forth

...

was

down, 1960 should continue to be a good year nationally
well as locally.
;..7
7
7
Although there appears to be some question as to a

1959

property and $5 million for

gas

regional

common

third since

been

markets.

area

in financial rewards.

most

developments

conclusion

condition

it is

these

the outlook for the Pulp Industry is
increasing consumption still faced with quite a
substantial over-capacity which will tend to a static

will be spent this
year on construction of electric facili¬

have

our

proved plans for additional capital
expenditures in the Upson plant and

know

steel industry's

For

the

expect to spend

equipment during both 1960 and

establishing
expansion of world
growth. Time only

direction

don't

most

although

♦

plus the fact that

service,

various

for

determine

point

one

Upson

by participating countries associated
European Economic Community and with the

will
In

factor

is made

economies," but rather to
brought about by economic

made

and gas

be¬

business

prove

products

new

feel

Chemicals for the Industry such as sulphur,

James

caustic

ex¬

about $48 million in 1960, and more than $250 million in
the next five years on construction.
About $32 million

Several

:the

bagasse, bamboo and other agricultural

residues.

Business

Tuohy

others

has

trees

economy.

John J.

but

year

1960 should

Some have received fine acceptance;
show promise in the years

used

enhanced tremendously the
available raw materials for pulping all over the world.
The use of non-wood
fibres, bagasse, bamboo and
others is showing a rather strong growth, particularly
in foreign countries who do not have wood resources.
species

forewarn

demand for electric

entirely reflected

volume

ahead.

under construction is 43% above
December 1958 and industrial units
The meet the

this

We have confidence in the future

note,

94%.

offered

have become a very big factor as a raw material
woodpulp and this together with successful use of

banks in

vol-

for fuel,

No such tendency is
evident yet, as the number of homes

are

not

for

For

now

rewarding.

practically any species
woodpulp.
Waste material

President, The First National Bank of Memphis,
Memphis, Tenn.

home

that

carried into

intensive and successful research

NORFLEET

cost

increase

earnings for the

lieve

Through

and

substantial

sales

ume

plentiful supply and the out-

this

future

surrounding areas, continued

expand. The demand for, and the
ability to purchase, home appliances
is very high. Population growth and
home building in
1959 were sub¬
stantially above the levels in 1957

with

Except for

the

for

look

will

We believe that

pleased

This

been

normal capacity during
large part of the year./ \ ' -

just the right time markethence
the
periods of
Over¬

are

beyond
v

•_

capacity appear at intervals. Raw materials in the form
of

have

Company,

that they come into produc¬

UPSON

shutdown, due to a strike early in the year,
have operated our wallboard plant at capacity. As a:
matter of fact, it has been operated"

facilities

tion
wise

trade

President, Long Island Lighting Company

new

timed
L. Turcotte

"closed

TUOHY

have

difficult to

"Outer Seven" that there is
;

7»'7;

•

developed during 1959.

five, years for
preparation and final completion and

field, especially engineered fibers, in addition- to
have importantly entered such areas as industrial
filtration and surgical products.
"Tyrex" tire yarn and cord accounted for a large
portion of the company's overall fiber business since all
manufacturers

con¬

banking

two-week

rics

JAMES

foreign countries the
outlook should be most

rayon,

automobile

•' 7,

real¬

President, The Upson Company

many

long-term

fab¬

non-woven

successful year

principles.

in the future.

optimistic, we
will only result through

tinued hard work and strict adherence to sound

continuing

the

furnishing items.
..7
rv...
Sales of yarns and fibers for industrial uses, exclusive
of tire yarns, doubled during the year.
American Vis¬
cose expects this to be one of its most rapidly growing
of business

-,.7-.

compensate for continuing increased

home

areas

paying the maximum rate

are

Amendments Act of 1958, as it relates to prepayment of
taxes on installment loan income, should also

1960 is a mixed
consumption will increase
to new highs, the industry will still be faced with a sub¬
stantial over-capacity not only in the United States but
also world-wide, making for a very
keen competitive situation not con¬
ducive to the industry being able to
The

area

allowed, and with the competition for the savings dollar
increasing, there is little likelihood of appreciable in¬
creased savings or savings interest paid. The Technical

President, Puget Sound Pulp & Timber Co.,
Bellingham, Wash.

10 njillion yards. "Colorspun," an Avisco fiber that resists discoloration, is
finding important uses in draperies and suit linings;
and "Avicron," a rayon filament yarn, registered major
sales gains as many new applications were found in
the

of the banks in this

L. TURCOTTE

108

page

Thursday, January 21, 1960

mitments.
in

Some

Tennessee

not

attractive

permanent

volume of real estate credit will hold
about
quests from correspondents and

investors.

even

re¬

companies outside the

State take up the slack.

seasonal

merchants, operating

rather than

calendar year, can
expect a
very good year through the first six months of
1960, with
domestic mills
currently consuming cotton at a faster
rate than any year since
1955.
!
,

for

margins

bank

■

operations, we hopefully expect profits
A high volume of loans
at favorable

to widen.

rates will increase
gross

income

more than the
expected
rise in
expenses.
For the past few
years, it has been
necessary to increase savings interest to
meet competi¬
tion, and this increase has been one of the
most impor¬
tant factors in the
"profit

squeeze."

Now, virtually all

Oak

1959

Creek
for

plant.

power

six

unit

Ground

at. Oak

also

was

Creek

with

capacity of 275,000 kilowatts. When the six unit is placed
in service late in 1961, Oak Creek generating capacity
will total 1,050,000 kilowatts.
The need for approximately three
and

for

building

business

years for planning
plant additions makes it necessary
utility to look beyond any temporary

power

electric

strike.

It would indeed be
optimistic to expect another crop
year as good as the one just
past, when the 1959 crop
exceeded the 1958
crop by 26%. Estimates are that the
farmers' gross income will decline
by as much as 5%,
while operating expenses will
increase by 5.8% in 1960.
-Predicted lower price supports will also
have their ef¬
fect. On the other
hand, the cotton
on

units at the

setback

such

that

occasioned

Experience indicates that

new

uses

steel

the

and increased

existing equipment will combine to make electric
service an increasingly important factor in the home,
on the farm, in commerce and in
industry. For example,
the trend toward the use of
electricity for heating and
cooling homes is beginning to have a marked effect on
load patterns.
use

Wisconsin Electric Power Company

cooperate with other companies
Fermi
near

Atomic Power

Monroe,

nuclear

reactor

operating tests
gin in 1960.

Plant

Mich.
a

in
the

shore

September

nuclear

basis

has continued to

building the Enrico

Non-radioactive

began
on

are

Lake

Erie,

of the
1959. Initial

testing
of

expected

be¬

The project is part of a broad
industry program

aimed
achieveing economic production • of atomic power.
Participation in experiments like this are part of our
long-range plan to prepare for the years ahead.
at

Continued

page

112

dumber

Volume 191

5918

The Commercial

and Financial Chronicle

held from commissions under the

Feb, .20, .1960

Continued from page 109
>
record
nnv
Mcbil Oil Company,. Ipc.,
aS'MO shares;. Trane r Company, i_:; Net;

.'f'd

25,000
Electric

Wisconsin

and

hores*

30,000 shares.

.Company,

power

stockholders

29.

of
",f

* —*
.*
..
■>>..
...'
income
of ; $274,269
for
Institutional Securities Corpora¬

1959,

the

increase of 7.4%

year, was re¬
Clifford C. Boyd, Presi¬

ported by

five

million;

Electronics and Electrical

the

Free

•

Dominick Fund, Inc., closed-end
investment company managed by
Dominick & Dominick, had a net
asset

value

Dec.

$61,880,176.

$23.30
shares

per

equal

end

1958.

with
per

Total

In addition, the

$35,811,000

Shareholders of Television-Elec¬
Fund, Inc.; :pn Jan., 21

tronics

-Dividends

■

approved

two-for-one split in

the

auditors.

& Co. as

•

Following action by the fund's
shareholders, the Board of Direc¬
tors established Jan.. 29 as the ef¬
fective and record date of the split
and declared a dividend from in¬
vestment income of 8 cents per
share on rthe shares outstanding-

The dividend,

prior to the split.

quarterly disbursement since
the fund began operations in 1948,
was made payable February 29 to
45th

shareholders of record January 29.

Gross sales of
Broad

Street

Funds

new

shares of the

Group

Mutual

increased

1959

with
with

operations to $3,170,357, the second highest amount

the history of the corporation,
against $2,991,854 in 1958.

Organized as a cooperative
agency, wholly owned by the mu¬
tual savings banks of New York

highest

history,

according

Broad

Street

President of
Corporation,

Fox-Martin,
Sales

national distributor for the Group.
The Broad Street Group of Mu¬
tual Funds consists of Broad Street

Investing. Corporation,

National

Investors Corporation and White¬
hall

Fund, Inc., which have

bined

assets

com¬

than

$310

million.

fund

15.9%
of

net

was

the

8.9%

assets

reduction

the

oil

stocks, A. Varick Stout, President,
State, Institutional Securities Cor¬ told stockholders. This reduction
poration performs various services was made
principally in the first
for savings banks including mort¬
half of the year.
gage servicing, appraisals and in¬
The fund's investment in Inter¬
spections of real estate, examina¬
national
Business
Machines
in¬
tion of mortgage servicing agents
creased from 9.2% to 10% during
or
contractors, trust or agency
the year, Stout said.
This stock
and
the
investment
of
services
continues to represent the largest
funds in the corporation's deben¬
single investment of the fund. At
tures.
the
*
*
*
present time, he said, the
Stein Roe
Fund's
the

assets

year

of 1959

compared
1958. This

totaled

$59,342,000
$27,035,000 for

with
was

investors

the third successive

National

by 92%.

•

Redemptions

•

Investors

were

increased,

three funds in 1959

shares
were

the

$10,430,-

was
17.58% of gross
sales. This
compared with $7,865,420 in
1958, which represented

gross

Directors

sales.
Florida

Fund, Inc. have

acquisitions

New

Continued

firm,
of

were

on page

113

announced
the stock

result

should

tax

sav¬

Garden

of which 288,201

owned

Graham-Paige.

balance

„

stock outstand¬

held
*

General

are

The

publicly.
*

Public

M a

mutual investment fund of diversified

common

stocks selected for investment

quality and income possibilities. Mail
booklet-prospectus to

this ad for free

CALVIN BULLOCK, LTD.

Service

Established 1894

Corpo¬

ration, closed-end investment
company,
reports net assets at
market value at Dec. 31 of $47,-

equivalent to $6.18 per
7,666,576 shares of com¬
mon stock, after provision for the
year-end
distributions
paid
on
Jan. 11, 1960. This compares with

ONE

STREET,

WALL

NEW

YORK 5

Name.

355,306,

net

assets

asset

value

the

$44,815,779 and

$6.03
close

7,434,792

Address.

1958.

Ad¬

justing for the 26 cents per share

For Income

the

end

GENERAL

INVESTORS

earlier. Number of shares
1,109,555 shares at the end
from 940,116 a year earlier.
*i.

..'

TRUST

Services,

Diversified

Investors

Inc. of Minneapolis has

mission

for

order

Company

Investment

respect to

applied to
Com¬

under

Act

the
'

with

Prospectus and Literature

Growth

declared

of 5 cents per

investment

from

INVESTORS PLANNING CORP.
of America
60

of commissions paid to sales¬
and to invest these sums in
shares of Investors Stock Fund,

ages

cash

The

Inc.

the

share from

income,

payable

company

plans to treat

an
amount equal to
appreciation and income,
if any, from such sums if invested
in shares of Stock Fund as a lia¬
bility to become due to the sales¬
sions

plus

42nd

East

New Yhrk

17,

Street

N. Y.

NATIONAL DISTRIBUTOR

Nationally distributed through

withheld from commis-.

sums

investment dealers by

Delaware Management Co.. Inc

capital

men

dividend

901

Market

Street

Wilmington 1, Delaware

event,
commits itself to pay
the amount with¬

they retire. In any

the company

A BALANCED

to the salesmen

FUND
bonds and

investing in
preferred stocks

selected for conservation of

principal and current iricome

The

and in

selected

Qeorge

common

for

stocks
and

income

profit possibilities.

PUTNAM FUND
Shareholders'

The Chase Fund

Trust of Boston
A

well

Merck, Norwich Pharmacal and

Searle.

men

.511, which

het

lic Service

pension plan for its
year in which new sales records
divisional managers, district man¬
have been set. Sales of new shares
agers
and sales representatives.
of National Investors
Corporation The plan, which was subsequently
showed the sharpest increase and
approved by the SEC, will permit
were
up
188%.
The number of the company to withhold percent¬

29.0.9%

of 1959 holdings
Idaho
Power and Northern Indiana Pub¬

the Securities and Exchange

In 1959 sales

rose

last quarter

of American Electric Power,

$42,852,768, equal
share. This compares

with $34,083,530 and $36.25 a

rose

the

were

to $38.62

for

& Farnham Balanced

net

year

80%

from

ings," according to the company.
The company also reported that
the Garden early this month re¬
purchased for its treasury at $20
a
share a total of 130,200 of its
shares previously owned by Rbyal
American
Corp.,
a
spin-off
of
Graham-Paige. Reflecting this and
other transactions, the company
said, there currently are 359,700

percentage

represented

net

owns

ing,

cant
the

Obligations of the

gains

Graham-Paige Corp., closed-end

"which

cash.

During 1959, the most signifi¬
change in the portfolio of

'in

than 119% over 1958 and were the

Milton

income from

realized

asset value per share
increased 7% for the year. During

the

1959,

Square Garden Corp. It
bought controlling interest in the
Garden last February and has in¬
creased these holdings during the
past several months.. Ownership
of 80%. of the stock will permit
filing of a consolidated tax return

1959

Stock and a reduction
in the shares' par value from $1.00
to 50 cents. This marked the sec¬
On Jan. 12, 1960, the directors
Interest totaling $1,655,072 was
ond
two-for-one split in the
paid to 113 mutual savings banks declared a dividend from ordinary
Fund's history, the last occurring
income of 12 cents per share and
holding the corporation's deben¬
in January, 1954.
Incumbent di¬ tures.
a
capital gains dividend of 85
This
amount
was
larger
rectors were-re-elected
at the than for
cents per share, both payable Feb.
any previous year.
annual meeting, * and
the share
16, 1960, to stockholders of record
The greater use of the corpora¬
holders again approved the direc¬
Jan.
22, 1960. -cThe capital gain
tion's facilities resulted in a rise
tors' selection of Arthur Young
dividend is payable either in stock
the common

stocks

from

declared

Madison

The total number of stockhold¬

amount

at / the fate

cash,

now

of 1,707 at Dec. 31, 1954. I
Dividends paid in 1959 amounted
$1.50 per
to
the 100,000 shares of
$791,870, or 48 cents per share,
cap-"
ital stock were paid to stockhold¬ from ordinary income and $1,139816, or 70.3 cents per share, from
ing savings banks," the same as
net realized capital gains.
paid annually since 1955.

$150,000

assets.

investment

<
.

common

Dec. 31, 1958.

'Eauipment, $24.2 million; Metals corporation held
$221,215,695 in ers of the company at the
and Mining, $21.29 million; Steel, mortgages as trustee or
agent for year-end was 5,431 compared
New York savings banks.
$21.21 million.
' ;;K
4,271 at the end of 1958 and

31,

of liabilities, rep¬
resented
6.9%, corporate bonds,
2.3% and preferred stock, 1.5%.

the

World economy.

Dec.

net

and

an
adjusted
share at the

assets

field is one of
growing industries in

U. S. Government and its agencies

1,659,640
capital stock outstand¬

ing, compared
figure of $22

equipment

market value accounted for 89.3%

of company on Dec. 31 were
$38,677,000, compared with total assets

year-end

were

fastest

tion for
over

the

;
*

largest industry hold¬ dent, at the annual
meeting
at market were: Public Utili¬ stockholders held Jan. 20.
$29.7 million; Chemical, $27.2
Total
assets
at
the

The

ties

Electric

Company,

power.

'•

ings

Virginia

shares;,

nflOOO

Jan.

office

plan.

The Funds Report

111

(363)

balanced

Fund for

current

and possible

A Mutual

income

long-term

possible capital
appreciation.

capital.

Inquiries invited from Dealers and Financial

Equity

rUJUL investing pri-,

marily in

Fund

for

growth of income
and

"A BALANCED FUND'!

of Boston

Mutual

of Hoston

common

stocks

possible longgrowth of capital and

selected for

THE

term

PUTNAM GROWTH

future income.
Ask your

investment dealer for

prospectus or write to

FUND

Emphasizing possible long-term

Capital Growth

Institutions

Wellington Company, Inc.
Philadelphia 3, Pa.
cp
Check

Prospectuses on Request

one

□

CHASE

DISTRIBUTORS

Putnam Fund

CORPORATION

60 CONGRESS

Distributors, Inc.

Wellington Fund

□

Wellington Equity Fund

NAME

STREET, BOSTON

ADDRESS

75 Federal Street

•

Boston 10,

Massachusetts

New York

Chicago

•

Los Angeles

Washington

Orlando

CITY__

—

112

Continued

The Commercial and Financial Chronicle

(364)

family.

from page 110
ROBERT

Garlock

The

income.

Past President of the Mechanical

been

the past year would

try
the

better

even

had

been

for

to be "Business is going to be

seems

No operation ever takes care of itself.

packing industry
made
some
exceptional
technical
advances
during 1959—particularly
with

tals

less

p respect to the application of
plastics.
Industry leaders agree that * the
outlook for 1960 is good.
We look
newer

for
1959

increase

assuming,

business

over

that

course,

the

business

deterrents.

The

good' year. '

Regard¬

upon

industries

most
"J

;.;V::yv^;

..<

ness

is to set

•

bad—the only

win

CHARLES

President, Brown &
Our

sales

Bigelow

December, when the
new
selling season began, totaled
$7,376,420, an increase of $431,985,
or
almost
6ti%
above the figure
achieved in the

Every

section

contributed
the

direct

sales
last

the

United

States

this

increase. / It is
of an intensified

result

training

that started
reflects the de¬

program

September and

velopment

month in 1958.

same

ideas

sales

and

way

valuable

The

confidence

our

business

all

by the increased numbers of

established
their

covered

vertising

customers who have

the year.

W. J.
Vice-President,
Division

By its very7 nature,
forecast marks

industry.

Past

Outboard

Consideration

Marine

given

called

business

W.
President,

will

The

industry,

does

for

the

work

the

industry—the

sale

of outboard

recreational

appreciate

boating

industry.

the role of

our

sales

board

outboard

pew

boats

S465.000.000

trailers

and

1959.

was

all-time record as reported by the
Boating Club of America.
The 1959 dollar
volume compared with total sales of $419,800,000 in 1958.

Outboard

Unit volume of motors totaled

compared to 504,000 for 1958.

about 540,000 for

Dollar volume

approximately $255,000,000 compared to
preceding year.

was

Unit volume of
versus

boats was approximately

$172,000,000 last
$153,000,000.
/
Boat

trailers

year.

1958,

reached

this

figure

was

175,000

last

volume

compared

year,

to 168.000 in 1958.
Dollar volume for
showed $38,500,000 for last
year, up from $32,-

trailers

trol

our

fiscal
or

own

year

corporation, consolidated sales for the 19o9
$171,569,244, a gain of $12,856,262,

totaled

8%, over 1958.
Outboard Marine

1959

compared
of

crease

showed
1958

$4,690,029,

earnings of $13,784,974 for
of $9,094,945, an in¬

earnings
52%.

The

marked

increase

earning^ resulted from higher volume, the absence of
expenses

and

incurred several years
ago in plant expansion

vigorous cost reduction program.
There is
every indication that 1960 will show
growth
within the industry
comparable to that in the past 12
months.
Boating long ago ceased to be a "boom."
Rather, it is very much a pattern of leisure in a leisurea

minded

nation.

Industry statistics show that
the

consumer

spent
trend

on
is

any
now

level

money is
for. recreational
boating

other participant sport.
an established
fact.

escaped
escape
to

new

than

was

once

o«ers

imoortanf

recreation whic^^^2, for
hich allows /ishin2> skiing or"golfing—is a
participation by the entire

Independent Natural Gas

among

America,

the

Asso¬

teamwork

the various segments of

will

be made to reduce

ance

the percentage depletion allow¬
and to deprive the gas industry of
interruptible, industrial customers. Such attacks
oil and

sales to

gas

can
be successfully resisted
industry.

only

heavily to the economic

welfare

this

work

The

briefly

our

views

Activity in

our

almost

exercise

strong

con¬

THOMAS

I feel

confident

settled

will be

1960

too

Machines Corp.

strain

good year for business. There

in the economic picture.
period of rebuilding, cap¬
ital spending is on its way up, and

due

spots

for

the

economy,
are

many

Inventories

confidence

such

high.

seems

economic

indicators

about

equipment

20%

above

are

their

technological

plication

advances

new

run¬

deal

the
T.

have

Watson,

ma¬

in"

1959
Y

and

continue

may

1960.

its course, the full-time Iowa

farm

income

suggests
are

lower

business

was

The

year

at
for

counter pressures; a scar¬

1959

with' its

farm

speed

income

they are manufactured/ Harvesters and balers
doing quite so well.

are

our

same

1960.

Other

important

industries—Dewey

com¬

were

announced, as were duplicating
processes
color reproduction from
bulky as well as
material. New

accounting

machines

bright present, past, and future.

year

delivered in 1959. Improved facilities
for high
quality transmission of facsimilies, data, etc.
over Jong
distances
were

Cement, Davenport; Oscar Mayer, Davenport;
Morrell, Ottumwa; the gypsum plants, Fort Dodge; and
miscellaneous industry at Cedar
Rapids — all have a

power consump¬

permitting

run

machinery but there

industry is relatively

industry's growth.

Transistorized computers with their
advantages of
pactness, increased speed, and reduced
tion

Jr.

ap¬

the

declining price phase of the hog
cattle cycles,
Farm income de¬

Portland

developments during the past

great

problem
caught in

rolling mill of Aluminum Company of
largest single customer, has increased pro¬
duction steadily since 1958 and
operated at about 80%
of
capacity during 1959 and expects to continue about

techniques to accounting
chines, computers, and duplicating equipment.
*
a

classifica¬

The Davenport

electronic

Several major
contribute

plenty—now it is also

eventually

Declining

America,

year-

particularly in the

old

which

levels. The best progress has
in those parts of the
industry

where

industrial

farmer should be
among the survivors able to enjoy,
long last, a free competitive farm economy.

not

earlier

been

ago

prospects vary with the line and the
community in which
the plant is located.
Plows, cultivators, planters, and
tractors make good business for the communities in

the set-backs of the recent recession,..
The latest figures indicate that new

ning

running

year

whopper for the farm machinery industry;
1960 is expected to be down
moderately. However, the

the office equipment in¬
completed its recovery from

orders for office

which must

mechanization.

Last year

dustry

are

early

Partially off¬
setting trends are the consolidation
of farms, permitting division of the
farm income
among fewer farmers, and the increase of

decline

highs during the coming,,

year.

city of farm labor and narrowing profit margins

Employment, Gross National Prod¬
and Industrial Production to
new

income has the

downward

farm

uct,

reach

from

Charles H. Whitmore

are

consumer

line

began

farmers' nonfarm income. The Iowa farm is a
big, small
business and is still a good
customer, able to pay its bills.
Whatever the pace of the
liquidation of marginal farms

WATSON, JR.

much

the

that* if the lahqr-m^nagement problems

without

the

higher.

even

Farm

must

ahead

the

clined

—

trend

which

increase in

and

I think

15%

during

and

1959, returning to

tion

our

industry,

1958

compared to the 9.6% over-all trend
since the war.
The percentage of

with

all

months, of

Our electric sales

1958.

reach

cautionary note to
industry in the
ahead—and we share this con¬
for

Company

expanded rapidly

area

latter

sinking spell

year.

President, International Business

are

Electric

business for 1960.

service

one

sounded

nation

Recognizing both the hazards of forecasting and the ne¬
cessity of planning for the future, we are outlining

Results

will

the

WHITMORE

long-term

market

through its services to its customers, stockholders, em¬
ployees, and the public in general.
The gas industry will continue to be a
prime example
of how free
enterprise in action has made America great.

amounts

development.

unified

gas industry has grown to be a vital
segment of
nation's strength, and in 1960 it will continue to con¬

tribute

have

strong,

;;v ,v v••7:,yr;

The

in the past.
now

S. D. Whiteman

our

industry will be further strengthened.
Unity will be a vital factor in meeting the problems the
industry will face during 1960. No doubt further attempts

and

and costs, if net earnings are to keep
This we plan to do.
%

with sales.

pace

will

consumers, the boat
status symbol
The

the Cr£wded highly
Perhaps, morf

leisure.

spent

factors have influenced

f {u°atinJ- Fo-r mahy
replaced the
automobile

What

increase,

expenses

been greatest,
more

umerous social and
economic
ha*
has

over

expect

800,000 in *58.

the

ciation. of

cern

Wheeler, Jr.

bright

■

unit

The

paper¬

the American Gas Association and

that

W. H.

motors

sales

particular

year

$234,000,-

boat

markets.

President, Iowa-IIIinois Gas

1959

329,000 last

316.000 for 1958.v Dollar volume

were

ANY

general.

business
to

substantial

some

fast

this

the

000 for the

year

for

new

CHARLES

bound

and

con¬

found

10 months

budget.

out¬

reached

This

being

are

We are fore¬
casting an 8 to 10% increase in new
business this year, and are backing
this
sales
program
with a strong
advertising
and
sales
promotion

retail

motors,

.for

new.,uses

first

the

company

is to know the entire industry.
Total
dollar
volume
in

and

the

manufacture
motors—is the

largest single segment of the overall

W.J.Webb

research

Our.

good"

economy

invested

and

industry will

gas

this year as we have
For several years

off

caught

spokesman

strides

WHITEMAN

expects to contribute to this process

base.

make major
,; ;

During 1960 there will be greater
unity than ever before in the gas
industry. Through organizations such

WHEELER, JR.

mechanization

known

resource

opening vast

Pitney-Bowes, Inc., Stamford, Conn.

quantities are assgtyetf and the result
is a projection for the future.
Crys¬
tal-gazing, if you will.
With it, a
chance for error—and heaven help
industry

"going

The year 1960 looks promising for the office equipment

and evaluated.
factors influencing

weighed

incentives, the

proper

air-conditioning

our

the

New developments in modern gas
appliances have done a great deal to
stimulate
public demand, and "gas

take if times were

upon

'.V

Motors

production.

Corporation,

appraisal within an

numerous

sales

would

Then, and only then, will the business be in a position
capitalize fully on a 1960 that's "going to be good"—

year-end summary and a 12-month

performance

increase

eventuality.

Evinrude

time for objective

because

W EBB

Manager,

knowledge—
knowledge is properly applied
to

teach

actually bad.

Mrs. Chas. A. Ward

early

must

to it that this new

see

action

long-range direct ad¬

requirements

supervisor

He must inspire his co-workers to superior
accomplishment. Along with his top management team,
he must continuously deport himself as though conditions
were
NOT going to be as favorable as everyone feels
they will be. He must daily put into effect the type of

specific lines of business.
shown

should

constantly.

busi¬

the

service,

gas

the job.

help

The

■

industry

the coming year.

which do not have adequate natural

ing goals—and
J.B.Ward
the never-ending task of training
and
supervision of organization so
essential to the realization of those goals. The output of
any operation can never be any better than the sum of
its input. The quality rather than the quantity of that
input is what separates the leader from the follower.
The quality factor is dependent largely upon the proper
education of the supervisory force so they can, in turn,
efficiently qualify those who are working with them to
help make the business a success.

WARD

equipment

during

unprecedented growth of the industry since World War
II,
there are still areas of the
country ?

attain-1

MRS.

Despite the

challeng¬
then follow through

progressively

rapid

environment, the

office

tinue with major expansion in 1960,
moving just
as it can to
satisfy the vast public demand.

position of leadership

even though the proportion of clerical
today's labor force is double what it was 20

scarce

President,-Kansas-Nebraska Natural Gas Co., Inc.

can

business

Given

and

good

will

1960

feel

developments are badly needed by
community. Suitable office help is stilt

maintaining championship
performance.
Regardless of conditions—be they

packing industry
industrial activity and

input

other

and

years ago. Management's need for complete and
reporting increases as business activity becomes
complex. Given a favorable economic

observed.

are

essential

successful

climate

good operation

calibre

mechanical

depends,

leaders

irig

R.M.Waples

economic

fundamentals

picture is not marred by
strikes or other unforeseen

major

Many an athletic contest has been
lost by men of superior ability for
the simple reason they failed to stay
in training; neglected the practice in

business

good

capitalization of possibilities always
depends on how well the fundamen¬

the

fortunately

These

workers

every experienced top executive knows
particular business will be only as good as he

his

ink printing on ordinary documents
successfully put into commercial use.

were

relatively

But

makes it.

mechanical

The

consensus

I960."

that

strike.

steel

of the

effects

The

have been

not

WARD

President, Addressograpli-Multigrapli Corporation

good year for the packing in¬
dustry. Like most every other indus¬

The year 1959 has

magnetic

the

Company, Palmyra, X. Y,
Packing Ass'n

Packing

shorter work week and a higher

These factors, combined With a
sound national economy, offer a promising view for 1960.

WAPLES

Add to this

capita

per

Thursday, January 21, 1960

using

new

boom.

and

Even Iowa

New residential construction is
of

high interest

the cities

coming to
On

rates

feeling the heavy hand

but there will

expanding and
our

City, where
continues

almost dainty,

new gas

be enough to keep
and electric customers

door.

the whole the

only thing wrong with 1960 is the
unanimity of opinion that it will be wonderful. If that
isn't enough rfo worry
about, we still have, and should
Continued

page

Number 5918

191

Volume

The Commercial

The Funds

tations.

and

' Lighting

Houston

Sectric

osi

Sprague

S. Treasury ;

•!<

1959

.with a

■

jji

established

■'">

all-time

and manager of
Sales totaled $80,644-

sponsor

funds.

056,

14% from the 1958 figure

$70,858,859. v■%.y: ;yy' v
''

:;i

share from realized capital
gain has ,been declared by the
directors of Nucleonics,
Chemistry
&
Electronics Shares, Inc.
It is
payable Feb. 29 to shareholders
of

Feb.

record

time,

dend from

During the year the
corporation acquired new or addi¬
tional holdings of certain common
stocks in the drug, electric utility,
textile,:'rubber tire and metals
categories. Sales involved a por¬
tion of holdings in the chemical,

the

15.

directors

Feb.

cents

paid

the

record

with

fiscal

Feb.

This

invest¬

ment assets of the fund passed

Purchases
during the year.

metals and oil groups;

$7,000,000

sales
At the end of the year common
stock
holdings
represented
the

mark

ston

the

December,

than

doubling the $3,471,883
the beginning of fiscal 1959.

Elects

10.36; electric utility, 4.15; mer¬
chandising, 2.05; natural gas, 1.37.

LOS

8.9%,

were

Total

net

assets

—

Charles

Wilshire

Boulevard.

Mr.

the edi¬
National

since its organization in
was
previously Executive

1949,

name

withdraw

from

the

For

will become

Leavitt

the

area

A MUTUAL FUND
in

"diversified

months

revenues

investing
of secupossible long

group

rities select ed for
term

had total
of $8,122,000

•

income. Free of

Pennsylvania
Personal Property Tax.

Send for

FREE Prospectus from
Investment Dealer

Oct.

ended

and

capital

growth

community.

george
845

your

bailey

TITLE

LAND

co.
10,

PHILA.

BLDG.,

•

PA.

of $794,000.

income

net

and

CCNY Offers

fund, at

Inv. Co. Course

Public Adminis¬
tration of the College of the City

,e sW
\nve-"

Balanced Series

Bond Series

•

Carret,

EATON & HOWARD

Mutual Investment Funds

the

one

operating

1959, the company

31,

31.

Saul

Or¬

315,000. Water service is also sup¬

Louisi¬

New

service

company's

plied

$30

or more.

population

Estimated

leans.

amounts of

located in

city

the

icaliy^accumulated in

supplies natural

southeast

and

Shares.may be system at-

company

rounding

Leavitt, Spooner

partnership

ana,: including all of the area sur¬

A fully accredited college course
previous year,
devoted exclusively to investment
President, dis¬
is
scheduled
to be
closed in the fund's thirty-second companies
given during the spring semester
annual report to stockholders.
*.
at the Bernard M. Baruch School
close

Philip

CONSIDER...

Dec. 31, 1959 aggregated $40,209,
535, compared with $30,385,858 at
the

bonds will

Series

1985

northeast

partner in Leavitt & Co. on Feb.

Vice-President.

will approxi¬

in 75 communities

gas

Weekly.

Co., 585 Boylston Street, mem¬
of the New York Stock Ex¬

Jan.

required

Singer

V...

of the

Calif.

ANGELES,

company's

program

case.

The

Name to Be Leavitt Co.
the firm

company

Manufacturing
and ,* Homestake
Mining convertible debentures and
StOCk.

company

Barron's

staff

each

BOSTON, Mass.—Effective Feb. 1

Schimpff, who has been with the

Prod¬

Air

Laboratories,

Miles

management

in 1956 after ten years on
torial

;

January 13, 1960

redemption
Paul A. Johnston
prices ranging from 107.52% to
that capacity
par,
and at special redemption
as
an
officer
prices receding from 101.64% to
of the company./
//
par,
plus
accrued
interest
in
He joined the Chicago-based in¬
vestment

MORGAN, "

redeemable at general

change, will be changed to Leav¬
itt & Co. Herbert M. Spooner will

and

reports that
the close of 1959 its four larg¬

ucts,

.The

will

continue

President

of about $1,925,000,
it is estimated that such ex¬

penditures in 1960
mate $2,000,000.

four

years and

O WALTER

expenditures

cor¬

past

corporate pur¬

the

1959,

construction

man¬

bers

Inc.

est commitments

Schimpff

Schimpff has been elected Pres¬
ident of American Mutual Fund,

sit; % "*■'

v~*

and

the

for

For

poses.

other investments 0.15%.

Pioneer Fund,

the

pay

stock

„

Information
for

January

shareholder's option.*,

the

off promissory
vthe construction of
new
facilities, for the extension
and improvement of present facil¬
to

ities and for other

been

900

0.35%

receivables

has

Director

Am. Mutual Fund

metals and mining, 15.14;
manufacturing and miscellaneous,

and

Johri-

the sale

used

net

28,1960 payable February
15, 1960 in cash

will

and

notes

from

holders of record

Jan. 19 on a bid

proceeds from

bonds

company

♦

Mr.

23.17;

cash

the

Business and Financial

of assets:
and drug,

Treasury bills accounted for

Net

dent.
V

sale

investment income to share¬

100.11%.

esi-

DIVIDEND

bonds at com¬

the

award

petitive

poration for

Net

e-P

agement

15.

1959.

quarterly

offered

won

Corporation,
Street, has

Salle

A/.

divi¬

cents per

Paul

same

per share, highest in
history, also payable

compares

declared

net investment income

fund's

fifth

Louisiana Gas Serv¬
ice
Company
First
Mortgage
Bonds, 57/g% Series due Jan. 1,
.1985, at 101.64% and accrued in¬
terest, to yield 5.75%. The group

appointment

V i

A record distribution of 50
cents

net

Management
La

of $7,500,000

CHICAGO, 111.— William H.
Cooley, President of Television
South

Langley & Co. and associ¬
on Jan.
20 an issue

ates

Of TV Shares Mgt.

135

—

r>i

Paul Johnston V-P.

Johnston

per

year.

following percentages
oil. 34.36%; chemical

t;t

OlierS GaS lSSUe

announced the

the

$123,206,274, - or
at the close of
1959 net asset figure

exceeded

3,723.440
1958, Mr.

w. c. Langley Co.
"

shareholders

planning.

poration,

bills. ;

The
was alter payment .of
$4,605,061
in capital gains dividends during
the

mmnaiu;

company

asset value; of
S37 21. per share,
1958.

vestment
vestment

it was announced by Na¬
tional Securities 6c Research
Cor¬

States & Foreign Secu¬
reported its net asset
value at Dec. 31 was $118,757,860,
equal to $35.87 per share on the
3310 815 shares of stock outstand¬
compares

31,

high,

United

This

aHNftgt&nt

4,529.386

Investors' purchases of National
Series of mutual funds

rities Corp.

ing

Dec.

Securities

industrials and 9% in cash

and U.

>:«

of the year
assets were in¬
common stocks,
natural gas, 8% in.oils,
At the close

$8.88

Carret reported.

of the net
vested in utility
m

per share at the

shares, against $8.16

Payne,

£ value
was

ot 1959

end

of Electronic Commu¬

Helmerich

Report

113

(365)

and estate

Continued from page 111
'Lie in Parke, Davis and Warren
5? D) Co. Sales included the

Elimination

and Financial Chronicle

Preferred Stock Series

York.

New

•

;F;

-s

Business and

Income Series

co«^

-a0d

orde.

\0C'

t y

V Representatives^of.tthe invest¬
ment company business will • be
guest lecturers during the course,

Thursday

meet

will

which

Dividend Series
s«/

eve¬

Growth Stocks Series

nings from Feb. 11 to May 29Dr.
Harold S. Oberg, Research Direc¬

television-

Association of
Companies and a
of the College faculty,

esting:
°ted

r .«*

Prim

lri'y

Information Folder and Prospectus on Request

Pos
Prin

ciPal

Investment
member

FUND, INC.

*5™ CONSECUTIVE DIVIDEND
/The Directors of .Television-

registration . for the
two-point credit course*. Econom¬
ics 168, will take place on Thurs¬
day and Friday, Feb. 4 and 5.
In-person

Electronics Fund, Inc. have %
declared a dividend of 8c «y.
Per

share from- earned

come,

record

January 21,

first

any

1960.

I960
\

Chester D. Tripjif,
J 35 5.
LaSalle

"Pr«iWknl- *

-•

Prospectuses available from *

;
±

your :

Investment . Dealer

EATON & HOWARD,

or-

lncorporat««f

24 Federal St., Boston 10, Mass.

and

course

college or

cgontine

university.

Tjorfoorafion

management proce¬
investment company poli¬

management appraisal,
methods of distribution, taxation,

A diversified,

cies,

A.'-

>•.

time

dures,

St., Chicago 3, III. /v

■

York 5, N. Y. /

120 Broadway, New

the history of the

school,

companies,

'/"p* *"

•

Subjects covered in the course
include
characteristics 1 of openend
and
closed-end^ investment

marked the
devoted en¬
tirely
to investment companies
had been gjYeq.4or full credit at

Dividend reinvestment date:

January 29,

—o

When offered previously, the
course attracted one of the largest
Baruch

January 29, I960.1

shareholders

orrd

•

enrollments in

payable February 29/ V

I960,

Established 1930

will supervise the course.

;

'e.

RESEARCH CORPORATION

NATIONAL SECURITIES &

Tfor,

for

the National

tor of

electronics

listed

closed-end investment company

the New York Stock

Exchange

PHILADELPHIA
FUND
INC.

A Mutual Investment Fund

30th

Affiliated

Prospectus

■■

J -;".

ANNUAL

Fund

■

Request

REPORT

3*a/inebfocA; 9P c(vo.
DISTRIBUTOR

h'A Common Stock Investment
,

for the year

objectives of this Fund
possible long-term
capital and
.income
growth for its shareholders.
,

♦

Fund

Investment

available

are

Prospectus

upon

request

ended December 31, 1959
upon

request

(established

1 Penn Center,
.

•

' *k

ieei)

Members New York Stock

Exchange

Phila. 2, Pa.

LOcust 8-6800

NAME
65

BROADWAY, NEW YORK 6, N. Y.
ADDRESS.

;

Loiid, Abbett & Co.«

New York

—

Chicago

•

—

Atlanta

—

Los Angeles

CITY

STATE
"»

•

»>..

The Commercial and Financial Chronicle

(366)

114

vious year.

112

Continued from page

about, the wage/price push chipping away
left of our badly battered dollar and big

do something

what

bigger and bigger.

government, which continues to get

CHARLES C. WHITTELSEY
Ford, Bacon &

President,

the

Louisiana

740,000
With

population mushrooming and urban areas and

our

expanding just as rapidly, municipali¬
ties throughout the nation face in 1960 an urgent chal¬
lenge to proviae sufficient water supplies and adequate

inaustrial plants

facilities.
They will attack the problems with

sewage

vigor than they have exhibited

before.

Thus,

one

of the

active

for

engineering and financing
in the heavy construction field this
year will be concerned
with these

areas

two

problems.

The

have

construction

industry

will

much better year than it

did

1959.

Except for office buildings
and the like, the strike-induced steel

total

production,

estimated

4,525,000

the

tons

and

tons

Texas.

the

balance

elemental

represented

the

sulphur

refinery gases and sour natural gas; 450,000 tons
sulphur contained in pyrites; and 510,000 tons sulphur in
various

forms

other

from

the

development

;

sources.

Frasch-process

during the

mines

operated

the

globe on our economy? We. cannot, of course/look
around7 the corner to tomorrow: - However, the over¬
hanging threat of war continues to be a factor of signif- j
icance not', only
in 'our own economy, 7 butf'in world/,

Gulf

December,

•

affairs.4

dictates the treatment of sewage so that the streams

can

tapped

supply

purified

water for home

and

use.

Conservative estimates place backlogs in water works
at $2.7 billion, in sewage systems at $3.6 billion.

Preliminary calculations indicate that about $500 mil¬
lion

will be spent

million

$50

water systems this year, up about

from

1959, and $650

million, or about the
1959, for sewage systems, including both lines
and treatment plants.
same

This is grossly

inadequate—barely dents the backlog—

and most politicians are

finally waking up to the critical
they act, they still will have to get voters'
approval in most cases before they can go out and get
the financing. But at least we will see
engineering starts
need.

Once

eum
refinery gas
lowing companies:

from sour natural gas by the folAllied Chemical, at Richmond, Calif.;
Hancock Chemical, Wilmington, Calif.; Anlin Chemical,
Wood River, 111.; Tidewater Oil, Franklin County, Tex.;
or

for

this

fuel.

About

S12.5

billion

ing brushfire wars/ -/ /L.-/ ''7;,-7'//7r7

'77/'v •/
IF the economic, subversive, and military expan¬
of the* communists can be curtailed, rather
than allowed to flourish.
(3)

this

construction

will

debt

ment.

One transmission
company alone will be spending $50
million this year just
looping lines. These lines will total
900 miles. This is just one of
many companies which will
mand.

The

total

cost

they fight to fulfill
in

this

year

consumer

Alexander Wiley

de¬

•

must remain

also
is

suburbias.
show

>/.'■

Forecasts

rise.

The

- •:

This

means a

busy year for the investment banker and
for the
consulting engineer upon whom he must depend
for

joint determination of the soundness of a
project
before he puts money up for it. These
joint studies will
provide economies in the end for
for

private industry and

the

taxpayer, as they will put the brake
cially-unsound, or unfeasible projects.

...'V-

CHARLES A.

finan¬

WIGHT

geographic

larger

The

1959

year

consumption of sulphur in the
United ^States reach a new
record high despite lessened
demand for the strike-bound
steel industry, normally
a

major

consumer.

eral

commercial

product
There is

brighter, although it

may -

expected in gen-

upsurge

The

net

effect

long

increase

over

the

ness

previous
steel

pensated

for

was

better

1959,

the

opinion

than

year.. The

weak¬

than

fertilizers, chemicals, pulp

com¬

and paper

pigments, and rayon.
abroad

also

growing
ous

new

plants.
have
and

for

competition

exceeded

from

estimated

1,600,000

long

,above the

record

tons,
Charles A. Wight

1,651,000

irt'their orde/ofvn^ ThC ?aj0r

imP<""ting

do|!trSterin0dfia,:tdmeASrsLCifanada'
k

99^

nnn

6,225,000 tons,

sources
compared

Waf ,UP to
amounted

with

countries

UnIted Ki^"
in 1959.

estimitpH

6,140,00f) tons

the

p!e-

most

however, there
or

not

expected to suffer

are
a

Unemployment

—

arises:

purchases.

tne

"What

Economy

new

responsibilities required
i

Congress gets under
will

programs

our

the

role

and

meeting of
modern advancing

for

highways, housing, civil public works, ship¬
building subsidies, and others, amounting to about
$98
billion; retirement benefits for military personnel and
civil government
employees; costs of veterans pensions

compensation programs;
$350 billion of future

public debt of $290 billion;
obligations for past services. If
no new
programs are added in the next
Congress, spend¬
ing is expected to go up because of built-in
increases in

existing
This

programs.

gigantic

mortgage—-a

;that
be

car sales in the new year will
substantially ahead of 1959, with

the

new

compact

introduced by

cars

the three major U. S. manufacturers

F. R. Wills
\

the

adoption

sales

There/ is

-expect^ 1960 / to/ be
ah
exception. ,'y '7.-7/7,. '/.:7_ 7 >77 * ■/?•'/,
'. Auto industry economists predict

still

recent

for

.Traditionally,

shown/ an;:

the form of instalment loans

comprising

question

wages.

/have

important

addition

•

As the Second Session of the 86th
Sam

has

certainty that there will
of high employment at

reason

farmer, himself, but upon industries producing
services, materials, equipment, purchased with farm
buying power.
-.j

the

observers,

period

/finance

the

Sam

half

extra
during '/good times" to
7 undertake financing commitments in

the

Role of Uncle

second

willingness

non-inflationary

though reduced

-consumers

spots 7
economy.
Farm
income—unfortunately down in
1959—still shows too little prospect for substantial im¬
provement in 1960—the result: adverse effects not only
—

Corp.

the

qualified

/.relatively high

shad¬

hangover

reached, too, will have a real effect on the
Despite ail efforts to stabilize prices, however,
predictions indicate that prices can be expected to rise
slightly.

economy.

COD's

final figures
may show the total

u•

horizon,

can

Horizon

According to Budget Director Maurice H. Stans, for
example, Uncle Sam has now accrued future obligations
adding up to almost $750 billion. These include: future

numer¬

sulphur-producing
are

nation

times.

the

production that normally would have occurred in 1959.
7
"
With the steel strike settled/it is

settlement is

new

sulphur

despite

economic

from the steel strike. Whether

room"

increased

foreign
Exports

the
The

the

economy?"
years, the size of the Federal Budget—and
whether it will be balanced or unbalanced—has
become,
more
or
less, , a symbol of stabilized, or inflationary,
trends in monetary policy.
The task of balancing the
budget however,
is becoming
increasingly difficult.
Why? Harnessed by a vast volume of past
obligations,
the Federal Budget has
disproportionately little "elbow

demand

On
ows.

the excellent busi¬
ness
enjoyed by the other
major
consuming industries which included

The

Uncle

10%

Acceptance
strike

steel

almost

way,

tons,

powder dry."

our

been to push into 1960 a substantial volume of industrial

activity.

Shadows

According to preliminary estimates,

consumption of sulphur in all forms
reached
about 6,000,000

■-

F/R. WILLS

the

saw

...

President, General

Business is expected to lay out
improvement, research and

areas.

for

sums

plant expansion.

President, Freeport Sulphur Company

■ :V

'"7 '•

alert, adequate and "keep

Government

spending would total $16.5 billion, an in¬
crease of $300 million over
1959, despite the declines in
highway building.

our

upon

V7v'

71 77:7/'

job

well fluctuate in different industrial

of Commerce

recently estimated that
private construction, excluding housing, will exceed $38.8
billion in 1960, an increase of $1 billion over
1959; and

sales

outlook

alone will probably
and

Secretary

high-cost, national defense
■://. 7///■
" ■7 ;V/y'';
•
' •'
77" 7 777 7'' 7 ••
As yet, the communist bloc has not offered any ac¬
ceptable proposals either (1) for a safeguarded dis¬
armament; or (2) relinquishing their ultimate aim of
world domination and "burying us."
Consequently, we
effect

immediate

policy.,'' ;• ■' :///.'
■■■■'' Why?
'

outlook,

mushrooming
of

exceed $2 billion.

The

equity financing and these projects will be keenly
competing with other fields seeking new capital invest¬

looping in lines

should

produced.-goods.---,, j:t/
/7>-,,
7,
■
\
too, ; portends ex¬ 7 7-Globally, also,/ we,,can anticipate a larger flow of
competition from the communist nations.
7
:,.7
;
panding of business and industry, as
well as a greater demand for goods ■
,7'7 *:* 'r'ii'-i :. '1 7 -7*:7Conclusion
'-'77',v:///77.-.77;p7
and services by a growing and pros- :
7 7: In view of these; and other factors, we cannot afford
pering citizenry. The attitude of the
to wear rose-colored glasses.. .Generally, we will, need
American consumer—a key to eco¬
a flexible, economic policy—at home and abroad— "renomic progress—appears to be one
tailored," as necessary, to meet ever-changing conditions
of confidence and optimism.
in the world.
/ /' -7.. /7 7"77 '/-•• ."-*"t7.-..v '
According to present signs, we
Despite the problems, however, the future, promises
can, also, expect expansion of high¬
a
"moderately good" pace of progress. 7.7"'V
ways and airport facilities; and new
growth of cities overflowing into
The

and

temporary, cold war "thaw"—though
encouraged—is not expected to have any

the

Currently,
it

greater peace of mind.

have

from

come

efforts

sion

pipe transmission lines in the past decade,
and $25 billion will be spent in the next 10
years, a good
chunk of it in 1960 and 1961.
for

(1) IF we can avert World War III;
7'//; /
; : •/.;'/,,-/
(2) IF the communists can be discouraged from spark¬

been spent on

The funds

such, as:

y" ■-./•//
great

financing in the current year.
engineers, construction firms, and
keep

demands

1«■. v*;;.,•/,

.**•,

■„,

1960, therefore, depends upon

the investment banker in this and the next
year will re¬
sult from the natural gas
industry's attempts to
with

7 '

.*;

Internationally/ too, there are a number of economic
developments that can and will affect our economy.
While the U. ..S. consumer will continue to be the No. 1 •
Sun Oil, Toledo, Ohio, and Consolidated Chemical, Baytarget for sales, we must nevertheless be increasingly
town, Tex.
1
'concerned about the growing competition from abroad,
both for U. S., as well as worldmarkets. 7 i
7;.HON. ALEXANDER WILEY
r7:
Overall, we can expect stepped-up competition from
U. S. Senator from Wisconsin
our allies,-including the "Inner Six" and "Outer Seven"
in
The economic outlook for 1960 promises new prosperity
Europe.Elsewhere on- the globe,./ too, .the multination common
market idea is spreading-rapidly.
for America.
In
Overall, our people will enjoy better liv¬
7 view of this development,-we .will .need to be alert to,
ing in many ways, including housing1, food, transports- •
assure that the.U, S. is not "frozen out" of such markets/
tion, jobs and general climate of opportunity—and—if
and encourage the elimination of barriers against U. S.- 7;
the
cold
war
thaw
continues, —•

and greater requests for

Another big field for

■*

,•

IF's,

many
•

the

WMf*

industrial

•

The outlook for

largest producers, followed by Jefferson Lake Sul¬
phur Company and Duval Sulphur and Potash Company.
shortage did not affect projects very
One new mine was nearing completion with start-up
Mm £much in the last quarter of 1959.
It * scheduled for the first half of 1960. This is Freeport's
Grand Isle project, the world's first offshore sulphur
.JHHH does mean a slow start for 1960, however, and if the strike is resumed the
mine, situated seven miles off the shore of Louisiana in
Chas.
c. wnmiesey
shortage will throw a heavy burden
50 feet of water. Installation of boilers, pumps and other
on
the construction industry as
it
equipment was being made on the steel structure which,
tries to catch up later in the year.
when completed, will stretch for nearly one mile across
Many of us long have been concerned with the indif¬
the water.
'
ference of municipalities to the inadequacies of water
Elsewhere, several new or expanded facilities to pro¬
supply and sewage systems. Most of our rivers and
duce sulphur from other than salt dome deposits came
streams, which could take care of our water needs, are
on stream or
were under construction during
the year.
running with raw sewage—a national disgrace. Common
These included projects to recover sulphur from petrol¬
sense

the

however, Freeport's Bay Ste. Elaine mine, located south of Houma,
La., was closed due to depletion of reserves. Texas Gulf
Sulphur Co. and Freeport Sulphur Company remained
year.

Impact of World Affairs on Economy V

imports—including Frasch from Mexico, recovered
sulphur and the sulphur content of pyrites from Canada
—about equalled the 755,000 tons shipped in 1958. .7
Twelve

real wealth

the

•Now, what will be the impact of developments around

Total

Coast

'v7

the nation—i.e., the
major portion of the Gross National Product—still, as it
should—depends upon private enterprise" to produce
the vast volume of goods and services required for our
nearly 180 million people and to supply markets abroad.

a high level, failed to
rising treud begun in 1955 with
Frasch-process mines in Mexico.

sharply

into the economy
services, equipment, payrolls,

government
other expenditures.

purchase

Nevertheless,

Imports of sulphur, although at
maintain

taxpayer.

and

output,

recovered

from

ouilays,

1960, about $95 billion will flow back

by the Frasch hot-water

from salt dome deposits located along the coast

process

Davis, Inc.

Federal

elemental sulphur mined

were

in 1960, and in the years ahead.
however, are not a complete loss to
According to estimates for Fiscal Year

the budget

ance

about 3,400,000 tons.

tons to

Thursday, January 21, 1960

annually—will make it increasingly difficult to bal¬

due

This supply was augmented by 600,000 tons
which producers cut back from 4,000,000

from stockpiles

portion

which

to total production.

7
indications, the demand l'or instalment credit
for auto purchases and for other consumer needs can
be expected to continue rising.
7.7'.
-

From all

Acceptance/Corporation we are gearing
operations to a maximum effort in order/to make
we
share fully in our industry's future advances,

sure

in the

that we have done over the past/years.
growth characteristics of the consumer
industry probably are not generally realized. At

same

The

way

strong

finance

the

General

.At
our

end

standing

1946, the volume of

the

out¬

instalment credit

totaled

only

$4.2

billion.

October

31, 1959 it had risen to $38.4 billion, a record
high, and an increase of more than 800% in the 13-year
postwar period.
These figures dramatize the essential
the

consumer

finance

industry

role fulfilled by

raising the living
financing modern
American mass production and
merchandising.
In
meeting the expected large demand for instal¬
standards of American families and in
,

ment

credit in the new year, it appears that our indus¬
try's foremost problem will be the high cost of borrowing

the
on

vast
our

that in

amounts of "wholesale"

operations,
recent

indicative

funds needed
the

trend

carry

the

weeks the Federal Government has

fact
been

paying the highest price in history for short-term money.
comes

General

Acceptance,

customarily

have

been

Number 5918

191

Volume

The Commercial

and Financial Chronicle

hie to anticipate our requirements quite accurately and
thereby avoid being placed in- an excessively dis¬
advantageous position with regard to borrowings. What
•uv record will be in the future is hard to forecast but
?t is plainly evident, that high interest rates pose an
operating problem for our industry of an indeterminable

^Realizing satisfactory profit levels despite the

noCc£f„
P

snouid

pressure

•* V

' President, Avco Corporation

good business

1960 should

general business conditions.
should

many

its

six

appliances, -farm
radio

•

Research

ties
-

K.R.

clearly point
recovered

Force

and

the

become

;

several

the

first- missile

nose

cone

earth's atmosphere after

fully re-enter

the

the full ICBM

range and

With

to
a

should

well

;areas of

broadcasting

manufacturing and

operations.

The apparent lack of
any

significant change in world

conditions would indicate a relatively stable year ahead
in the defense
and space industries, although competition
tor

The

the

civilian

spending

contracts

side

the

continue

will

ledger, increased consumer
a favorable effect on corpo¬

earnings figures.

" ;

Chairman,

Interstate

'■•

Commission

In view of
the relatively consisteiit relationship that has
existed between the leveT of ecdnomic activity and the
volume

surface
.transportation industry, carriers generally may be exto benefit from the rather
' £*al Acreages in total national
p.®1ctllcti°n and ; business \ activity.*
traffic

handled

domestic

the

everywhere

nm£°r
tvrio
ypes

.anticipated

'for-' 1960.

*be outi°ok for the transP industry is favorable, some
of
carriers

appear

to be

siiwr P?sition than others to realize.".

substantial gains.

rajV™lg the first half
^sfnade

thp

of 1959,; the

near the level of 1958.

these difficulties and

•

Hon. J. H.

Winchell

num-

£ iUns?lved Problems of longer standing, many of
fl °?
have continued to earn substantial profits.
beSinning of 1960 the rails are faced with the
strike
°f a prolonged strike. If the threatened rail
frei„hfCan be avoided, the volume of freight traffic and
UD\vn»£ revenue may be expected to show a strong
the

DosVm-w

d trend, and possibly may establish a new peaceccord during the first six months of 1960.
Plan
*Paflnfi an upturn in freight traffic, the railroads
equinn? ?Vest more than $1 billion this year in new
esnir?t tntc.1 road improvements, as compared with an
and
Climated
10SQ
A
cWahlP
tim

toon

^!1U^

and

year.

Benefits which the deep-water

been

far

sufficiently

the

realized to offset

petroleum

and cost factors.,.

strike

THEODORE

WOLFE

significant

characteristics

of the

territory served

its excep¬

population growth and expansion of its diversified
industry. Both contribute importantly to the outlook for
our business in I960.
•>'. '.
:
• «
:
seven

States

(including re¬

cently admitted Alaska) have grown.'
faster than Maryland in population
since 1950,

substantially over 1959. Appliance
sales should continue strong. These
than offset the expected drop in residential

sales and machinery
should

Steel

construction.

production in

ingot

agreement with the Union in
is

capacity.
'
The company's net sales and operating revenues
1959 are expected to hit an all time high of over
million.

for
$80
Reflecting continued improvements in operating

efficiencies and internal cost

company

and

J. Theodore Wolfe

study of Eastern cities,

the higher mortgage money

situation.

larger

the diverse growth in the
volumes of electricity and
gas which will be used in our territory next year are
presently expected to exceed 1959 by 8% and 10%, re¬
spectively, and our aggregate revenues therefrom are
expected to increase about 6%. Our costs will also be
somewhat higher in certain areas. Construction of new
for

1960

WOODBRIDGE
Dictaphone Corp.

point to good growth for the dictating
machine industry in 1960. The vigorous state of business
combined with increased public awareness of the value
indications

All

expect our total revenues to be

1959 as a result of
Baltimore area. The physical
than

Chairman of the Board,

Ward & Co. is planning to construct a dis¬
tribution center here to serve 66 retail stores and 76
catalog stores in the company's Eastern and Southeastern
regions.
•'
These industrial and governmental expansions and the
growth of population related thereto are reflected in the
building of new homes. In the first ten months of 1959
the residential dwelling units completed were 40% more
than in the same months of 1958. Permits issued for new
dwelling units have declined in recent months, however,
we

looks forward with confidence to

the
stainless

Following an extensive

I960

•

and

designed

and communica- .
.
.
tion equipment, glass, brick, and ceramic products, chem¬
icals and fertilizers, containers and closures, and food
products. No single group of industries dominates the
local economy.
The city's favored geographic location,
its excellent port, its proximity to the nation's capitalall have contributed to large industrial expansion and
enlargement of Federal Government operations. A
$30,000,000 refinery of the Kennecott Copper Corporation
is just now being completed here, and General Motors
Corporation Chevrolet Division has announced plans to
double the size of its Baltimore assembly plant, making
this operation the second largest in its national network
of combination car and truck assembly plants. The new
Social Security Headquarters located here are nearing
completion and are scheduled for occupancy in January

For

growth can

ship repair, the manufacture

probably because of

;

other metals. We have long range plans
improve our competitive position in the
growing market for steel products.

plastics

steel, copper refining, the production
of
aluminum .shapes,
shipbuilding

1960.

control, net income is ex¬

million.

significance to our future is the plan for the
construction of a new blooming mill and a new plate,
mill which will replace the present blooming and plate
mills.
Financing of this program, which will require
the expenditure of over $30 million, is in the process
of being finanlized. This will be the largest construction
program the company has ever undertaken, and is a
significant step toward complete modernization and en¬
largement of the company's productive facilities. The
new mills are expected to be completed by the middle

Baltimore is a major center for

steel

their current dispute,' the

operated throughout the period of the strike,'
currently operating at over 100% of "It's rated;

beyond. During the 60's, use of steel -is expected to
increase
substantially
in spite of competition from

highest rate of growth

is being

company

The

population during this period. All
forecasts to 1970 and be-<

manufacture

1960

neighborhood of 125 to 130 million tons.;
Our firm was successful in negotiating an extension
of its contract with the United Steelworkers of America.
Because of this extension, which does not expire until
30 da^s after the major basic steel companies reach an

forecast in the

and

available

yond indicate that such
be expected to continue.

excellent ac¬

ceptance by the public of the new
cam.
Capital building expenditures

of 1961.

ropolitan areas in the United States,
the Baltimore metropolitan area has.
in

Automobile

resumed.

expected to be up

are

and of the 18 major met¬

had the sixth

not

Of great

tional

Only

operating

petus of the apparent
Harleston R. Wood

and

pipelines,

;

•)

production
in
1960
could
reach
record
proportions under the im¬

par¬

steel

Desn;^v®nues
1 te

business, and

volume

Montgomery

rev*

level

larger

by Baltimore Gas and Electric Company are

a good recovery from

°f losses of traffic and
sinn nUe sustained during the recesuo i/cyar,
1958> with carloadings
thn
\
narct n
the cV°Vbut. they were hard hit' by
with
strike and ended the year

missiles, electronic

WINCHELL
Commerce

in¬

the Taft-Hartley

high level at least during
the first half of 1960, provided the

rate

of four

period

tain the industry's and our

during 1959,

President, Baltimore* Gas <& Electric Co.

Two

and

JOHN

the

junction, the 1960 earnings as well.
The
strike, occurring as it did
during a period of high economic
activity, has resulted in a tremendous
backlog of demand for steel
and steel products which should sus¬

water carrier labor dispute
a

the

earnings of the steel industry, and,
settlement is not reached during

pected to be well over $4

stiffen, j On

power should have

rate sales and

level

same

and

that

indicates

like other carriers, were
adversely affected by the recession of 1958, but made a
good recovery in 1959. With the expected increase in
demand for petroleum and other products moved, pipe¬
lines should make further gains in I960.
-

government

result

unfavorable competitive

-v

research and development,

continued progress in our

increased

Laboratory—-generates electricity .-.di¬
hot gas through a magnetic field and
promises vastly increased operating'efficiencies in the
electric power industry.
I look for new breakthroughs during 1960 in both our
as

about the

available

industry

steel

of a resumption of the unprecedented'.
strike,. This strike will adversely affect 1959

military and civilian

Information

forthcoming

have

Research

rectly by forcing,

the

possibility

116-day

operators anticipated from "containerization" appear not

Everett

the

in the

success¬

•

Steel Company

Wood

for

WOOD

country's entire economy is clouded at this writing, by

is rela¬

water will be able to better their condition substantially

;
;
Later in the year it was announced that ten leading
power companies had joined with Avco in a program to
further study a new method of-generating commercial
•electric power. The new system.—based on the science
of
magnetohydrodynamics and developed at the Avco
/

s■ ■'< \

passengers

resumed
in 1960.
The
opening of the St.
Seaway is expected to stimulate water trans¬
portation generally, but may have caused temporarily a
small loss of inland waterway traffic.
The regulated
coastal and intercoastal shipping trades did not improve
their position in the transportation
industry in 1959.
In view of high costs and intensified rail and water com¬
petition, it does not now appear that these carriers by

during re-entry by a heat-shielding material
developed by Avco scientists who had pioneered in the
-

1960

for

operations

Lawrence

speeds.- This vehicle was pro¬

research..

Motor carrier

President, Alan
The -outlook

•

HARLESTON

production the upward trend of river traffic

jected

•field of re-entry

areas

problems associated with growth and progress.

■

areas

flight

automobile

this importance/ In April the Air

of the
these

above the

seriously curtailed activity for

months.

important"

increasingly

revenues.

maintained

was

which

oper¬

years

facilities, and the like.

by the continued development of the

despite the steel strike and

development activi¬

past

facilities, the expansion of its highway
Happily the governmental units ;
involved are pressing their efforts to solve

of its port

ment

long-term upward trend of inland water traffic
interrupted in 1958 as the result of the general

was

broad¬

"■

•

1960

percentage gains in

business recession.

aspect of Avco's operations, and two
r aior
announcements made curing

Wilson, Jr.
-

•1959

;

problems faced by metropolitan areas generally, such as
the reconstruction of its downtown areas, the develop¬

The

equipment,

television

and

casting.

moderate

be facilitated

creased

development,
missile and space technology, elec¬
tronics; aircraft engines and struc¬

tures,

1959.

involves ' research .and

and'

over

tively less favorable, but a higher level of general busi¬
ness
activity should be reflected to some extent in in¬

and three principal
the
company's
work

subsidiaries

mark

National Highway Program.
'•':v
The outlook for motor carriers of

divisions

ating

bilhon

ticularly

Through

are being planned
improving the position of the railroads

Although data are not
relatively large number of private and
unregulated for-hire motor carriers, it appears that the
regulated trucking industry can look forward to further

will

widely diversified enter¬

business.

con¬

was

.available for the

but more

•

view

.high-level performance of 1959.

good levels dur¬

prise with operations in

—

1959, and several others
to

•

new year.

Avco is

Western

and

prior year,
$50,000,000 and more than a third greater
than the expenditures for 1959.
v
The Baltimore area has its quota of the same sort of
probably

.Motor carriers of
property, subject to Federal economic

Sales and earnings of Avco

continue

ing the

Norfolk

infrr ? ■°11' having maintained revenues for 1958 at the
!u
Pillion, are estimated to have passed
the

trend of accelerated improvement in

the

115

plant and facilities will be larger than in any

involved.

Based on -this solid foundation,

year.

see

into

with

Despite a prolonged strike in the steel industry, 1959 was
a

being obtained from the
"piggyback" service, which
expand. An important merger—the
are

summated in

^ ^

KENDRICK R; WILSON, JR.>

revenues

continue

nginian

industry is going to be a leader in achieving
considerable progress in the new year.>■'

Increased

development

finance

en8er trains have been discontinued, and efforts are
made to obtain subsidies from local
governments
means of
offsetting losses due to commuter opera-

t ons.

costs in every direction will provide an
for finance company managements.
A feature that consistently has favored GAC is our
record over the years of operating efficiency. This has
enabled us to undertake expansion opportunities which
'might not have appeared attractive to others. During
1959 (which from all preliminary indications was a peak
year for the Company),
we extended our operations
into two additional states—Montana and North Carolina.
Currently we are operating 208 offices in 27 states, and
yjG expect these figures to continue growing.
Looking at 'the overall business economy, there is
every sign that 1960 could be an excellent year.
The
requisite conditions exist. Barring serious interruptions
^industrial,activity, we are confident that the consumer

•

;

*hese caPital investments are expected to increase
reducing costs of operation. Many unprofitable

nrnfif

:nf increasing
exacting test

■

(367)

electronically

duce

1959,

recorded communications should pro¬

rapid rate of expansion over

record year in sales volume.
just over has seen

decade

The

Dictaphone's,
and this was

business

quadrupled,"

topped in 1959 with the

in our history. Last
model Time-Master dic¬
tating
machines
gained
increased
market approval.
Additions to the
line, including a combination dictating-transcribing unit and a telephone
recorder, made contributions to this
finest sales year

year,

new

performance.
Additionally, a new
battery-powered interview recording
machine was introduced and in just

with limited promo¬
unit alone achieved a

eight

months,

tion,

this

C. K. Woodbridge

of these ma¬
chines in our dictating line use the unique Dictabelt
record with its advantages of superior recording, visi¬
sizable

volume.

All

bility, non-erasability, easy
has

handling and low cost, which

firmly established the Time-Master as

the preferred

equipment the world around.
Dictaphone's recording machine business, which rep¬
resents for us diversification within the broad scope of
communication recording equipment, also did very well
last year, with volume approximately twice that of 1959.
New products include the Dictachron, a unique device
which records time signals instantly, and the Telegram
machine, which allows users to record telegrams by
telephone, thereby speeding their dispatch.
Our line of communication recording machines is fur¬
ther augmented by the Dictet portable voice recorder.

type of dictating

Continued

page

116

Continued

(368)

from

This two and

115

page

of most

pound, camera-size, battery-powered
unit is filling a variety of needs in almost every business
and profession. During the year it was further improved

with

the

ard
%

■

optional reel loading device.
can now be mailed in stand¬
envelopes for the cost of an airmail stamp.
availability of

A 30-minute

Our

well

the

sixties

will

have

the

industry in

economic growth alone does

6%,

second

half of 1959. curtailed by
the long nation-wide steel
strike,
totaled 29,158.610 tons,
with

the

compared
64.278,203 tons

record

made in the first half.

quarter's

production

The fourth

20,952,-

was

140

tons, against 8,206,470 tons in
the third quarter and
26,119,618

imported

"Ward's"

output
units

funds

made

sales

ported

over

year-ago

"Ward's

new

about

178,409

was

re¬

Jan.

16.900

9.0%

was

above

domestic-built
to

averaged
that

1-10

•*

"Ward's"

the

said

Motor

Co.

Corp.

and

The agency added that compact

production accounted for 21%
the

latest week's

car

for that segment
dustry. - 7
tory

total and

period
-

•/

of the

taled;

makes combined to¬

estimated

37,870
units
compared to 35,726 in the previous
an

week when overall
at

37-month

tonnage

week

same

output

last

11,-

urday work programs by ~ Ford,
for Chevrolet, and American Motors
Corp.
All
other
manufacturers

7.7%
' *'

Corp. was
Corp. 2.1 %.7

and
'

;

The reporting service said that
the rise over early 1959
and 1958, year 1960 sales
got off

despite

slower start than
expected in

quarters, being only 2.6% in

maintained five-dav operations.
"Ward's"
said
the
2,000,000th
in

car

the 1960 model year

produced

the

would

week

begin¬

ning Jan. 18.

daily rate above Dec. 21-31 when
16,467

were retailed
daily.
"Ward's" said the indicated sales
pattern will bring a sudden rise

auto

ary,

inventories during Janu¬

but not much

than

al¬

ready had been expected as a re¬
sult of the
industry's mammouth
production schedules.
Said

"Ward's," "prospects for

rising market should by
be

revised

the basis of

this

no means

early

date

single 10-day selling
which at best is
skimpy

period

evidence."

Carloadings

Show

Over

1959

Loading of
the

week

7.4%

January to momentarily

dip, regardless
the

factors

the strength

affecting

revenue

ended

Jan.

cars

7.4%

sponding

port

that

sales

car

if
are

estimated

increase
above

the

1960

to¬

the

1959,

21,708

corre¬

and

cars

3.8%

corresponding week in

1958.

Loadings in the
the

108,503

cars

week
or

of Jan.

22.5%

above

preceding holiday week.

added

the

domestic total, Jan. 1-10
retailing
actually equalled the same period
in 1955 when
Jan. 1-10 deliveries
of 18,565
daily touched off a recprd 7,400,000 auto retail sales
year.
Ward's" said
tion
ules

that while

first-quarter

auto

por¬

sched¬

2,280,000- passenger cars
may eventually be shifted
into the
second
new

Intercity Truck Tonnage
Above

im¬

quarter,

car

sales'

entire
of

of that of the
of

year

Trucking
nounced,

ahead

tonnage

1959

The

electric

the

energy

electric

light

industry for the week
ended Saturday, Jan. 16, was esti¬
mated at 14,236,000,000 kwh., ac¬
cording to the Edison Electric In¬
stitute.
Output
was
72,000,000
below

that

week's total of
but showed

kwh.,

the

14,308,000,000 kwh.
gain of 912,000,000

6.8%

above that

comparable 1959 week.

the

week

was

8.6% ahead

Associations,
tonnage

that

of-the

4of this

week rise in

the

year.

Inc.

an¬

was

35%

The week-to-

tonnage for the

week

following the New Year's holiday
approximates

that

during previous
These

areas

findings

years.
are

survey of 34

conducted

experienced
based

1959

Week

Lumber shipments of 467 mills
reporting to the National Lumber
Trade

low

Barometer

production

ended

Jan; 9,

low

the

latest

these

were

during

1960

week

mills

10.3%

the

metropolitan
by the ATA Re¬

Over-all,

-will

week
7.4% be¬

1959.

orders

new

15.3%

were

below

Unfilled orders of

re¬

porting mills amounted to 39% of
stocks.

For reporting soft¬
mills, unfilled orders were

gross

wood

equivalent to 20 days' production
at
the
current
rate, and gross
stocks were equivalent to 47
days'
production.
;

year-to-date, shipments
reporting identical mills were

10.3%

below

orders

were

production;

15.3%

I, predict

with

those

that

with

week

was

from

58.

The

most

earlier

suffered

graphic
in

climbed

above

week

particularly

production of reporting mills

South Atlantic and

States,
to

Atlantic

casualties

Failures
Week

Rise

Ended

and

Pacific

ago,

Jan.

Commercial and Industrial fail¬
climbed to 292 in the week

57.

occurred

Jan.

from

242

the

preceding week, reported Dun &
Bradstreet, Inc. Casualties came
close

the 294

comparable week
exceeded

the

occurring in the
a

1958

year

total

However, they remained

ago

Failures

off

pre¬

Down

6% in

1959
in De¬

1959 to

14,053.

below the recession

14,964

1958

but

most

peak

above

any

The decline

regions and

in
all types of operation
except serv¬
ice.
relation

the

There

380"in

was

week/which

52 per

10,000 listed businesses.
This casualty rate
compared with
56 per 10,000 in 1958 and
was con¬
siderably less severe than the pre¬

1959

volume

succumbed

totalled

Fewer

year.

all

ing date

below

the

businesses

size groups

edged

record

the

low¬

14, 1949. The

was

down

6.2%

year

ago.

Commodities quoted higher this
week

were

oats, beef, hams,
cheese, coffee, cot¬
tonseed oil,
tea, cocoa, eggs, pota¬
toes, and hogs. On the down side
were
flour,
sugar, ■ milk
and

lard,

rye,

butter,

raisins.
The

Index
of

raw

general

the

represents

price
stuffs

use.

the

meat

and

not

sum

pound

per

food

cost-of-

living index. Its chief function is
to show the general trend of food
prices at the wholesale level.
Promotions

oc¬

be¬
$1 million; those
involving
losses above that amount
to

$5.70

the $6.16 of the
correspond¬

$692.8

low

/
this

1939.

Dollar liabilities of failures

million,

:
rise

was

since Nov.

from

index

rate

$5.78

current

from

total

rate of 70

East

Judex 7

marked

1.4%

operating

population, the failure
dropped back to the 1957 toll

curring

the

business

war

against 4%. Noticeably lower tolls
were
reported
in / Philadelphia.
Baltimore, and Detroit/; //
r
7
-I.; .
!'
..
'' /'»■.
*"
'
J.

This

high.

of
$5,000 or more
involved in 254 of the week's

1939.

noted

were

est level

1,080, the lowest level
in five months,
bringing the total

Pacific

Index, compiled by Dun & Bradstreet, Inc.. On Jan. 12, it rose

Business failures dipped

the

week in the Wholesale Food Price

sharpest'declines occurred among
furniture stores,
down
a
third
from 1958, and
among drug stores,

prior
Failures

than

exceeded

cept two—the Middle Atlantic and
East North Central States.

was

1959

year.7 Declines

/sharply than those in„ nonmetropolitan /districts -7. 10%/as

45.

the'Similar

level

preceding

all regions ex¬

equalled

year-ago levels

from

Tolls lightened
appreciably dur¬
ing the year in retail trades. The

Liabilities
were

260.

consid¬

erably lower, 23%, than the
week

and

businesses Tin

the

geo¬

fewer

States,

cember

major

reported

ures

ended

nine

The week's only decline ; / Wholesale Food'; Price
'
Rises Notably
the East North Cen¬ 7;

from 48.

was

Consider¬

the

preciably. % •; *' .■; 7 - /, // \ * /
/ vFailures in large cities declined

increases

from

during

7/ //7V;77

the. impact of the. steel strike, and
.in- the/Mountain
/States,/ where
Colorado pushed up the total ap¬

South Central

moderate

mortality

7 /"/.'/■/■

increases.,

the

while

108

tral

Middle

lifted

sharp

prevailed

year

regions

off

North .Central States, where Ohio
and;,Illinois tolls climbed under

the week just ended.7The
upturn

other year since 1939.

4.0% above; shipments were 7.4%
below; and new orders were 14.4%
below.

ably

1959 levels.

were

the East South
Central where casualties were the
lowest in four years.
Contrasting

from

reported heavier business tolls in
was

higher

ranged from 3%
States to 17%* in

Despite these increases, trade
and manufacturing
mortality re¬
mained slightly below a
year ago;
only
construction- and
service
Seven of the nine major

low.

seven-vear

regions

failing

37, wholesaling, to 26 from 19, and
20

year

the year.

noticeable

general
building
and
sub-con¬
tracting failures dipped generally,
heavy construction contractors

struction toll moved up to 47 from

tolls

business

rise

rise appeared among
retailers, up
to 151 from
112, while the con¬

services

Seven

were

Compared with the

corresponding

insurance

earlier; their only
appeared in the transporta¬
tion equipment
industry. Although-

lia¬

as com¬
size is the

this

fell

8% from

$100,000,

were

orders

new-

life

the

which

industry and trade groups
higher failures except manu¬
facturing,' Where casualties fell to

above;/ shipments
above.

Manufacturing casualties

All

grow

had

production of reporting mills

above;

increasingly to life insurance
plans and for other business

preceding week.

for the year

1.7%

;

challenge of the sixties by

$5,000, lifting their

excess

pared

about

7
7
exploding college population (enroll¬

against 216 in the pre¬

Compared
with
(he
previous
(holiday) week ended Jan. 2, 1960

13.1%

(now

7:7

making con¬
tinued substantial progress in
developing the kind of
pioducts and services that are geared to modern family

38 from

ities in

new

below produc¬

tion.

26.7%

family
;

exceed three billion by 1970),
people will use life insuiance to prefund
their children's education .costs;. /.% 7

the

meet

casualties,

expected-to

and guarantee

...7

vious week and 258 last year.
An
increase
also
occurred
among

be¬

the

and

week

same

production.

war
on

are

and more

mere

commercial

Shipments 7.4% Below

insured

•

In the face of
ments

16.

Lumber

insurance

turn

employee

Thirty-five of the
failing businesses suffered liabil¬

power

kwh.

funding

purposes.

This

small

occur

•

will

and 36 in 1959.

Week
of

amount

Business

corresponding week
ago,
the
American

Truck

for

bilities under

6.8% Above

8.6%

1959 Week

Intercity truck

January weekly

domestic-built

freight

For the

freight for
9,

above

week

week ended Jan. 9

added

com¬

/ :""77-'? 7/ 7,7'7//-:

insurance * will /continue

life

Businessmen

guar¬

failures

•

purchase's/..///7.;,y777/7////'/ '• 7-7,77.77/i,i:/7

new

case

companies

toll

taled 591,515 cars, the Association
of American Railroads
announced.
This
was
an
increase of 40,849

December

buying.

general

Electric Output

Gain

Week

cal

tenor

were

"Ward's" noted that the histori¬
trend is for the auto market

report

at more

throughout the country.

14.0%
Chrysler
for American

per

life

'"7 777/7

needs and desires.

The

the

Ownership among, women-(now over $70 billion) will
'
* ~
'
/";" 7:.7.7: '•/7:7
?"u '

private

our

ownership

increase.

three dollars of capital

truck terminals

carriers

mon

was

During the
year,
combined

the two makes then in

output

car

popularity and will cOntinite to account for 70% to 75%
of

agents

the

insurance.

insurance

handled

high.

production amounted to only

;

in¬

"Ward's" said output of the five
car

and

,7' 77-'

Ordinary

been

vital

Department.

1955, when

m o

Motors

some

Jan.

were

S-P

to a

ended

qvery

reflects

car

362 units.
; \ •
/ •
n't h's
the upsurge in
divided V "Ward's" said
last week's passenger car
produc¬
28.8%
Ford
tion was the result of
heavy Sat¬

this

Corp.,

The

same

77' 7'

opening 10-day sales
47.4%

rate

15,510 daily
1959 and 15.3%

14,656 for

1958.-

models

daily

above

176,845

assembled.

were

has

life

and

compact

118,300

passenger

week

total,

one

the week ended Dec. 9,

Automotive

The statistical
agency said sales
of.

the

companies

investments

distributed

Reports."
*

developments

expect:

Average

has

action

integrity

$11 000) will increase substantially.

only

not

the

in blue chip equi¬

than

permanent

the

acquired

for-the

period

progressive

in the United States economy.

are

estimated

job

to
as

sound business-

seem—that their need for-dollars will

may

supplied by all savings institutions—and one of
eight dollars of the annual long-term investment

every

reached the highest volume in his¬

9.0% increase in Jan. 1-10
car

insurance,

insurance

represented the highest level since

car

in New Car

Sales Reported

said

has

man

firm

stand
-.7•

for

system.;

invest

expected
to rival the 512,000 in January of
the industry's record year of J955.

tons in the fourth
quarter of 1958.

Increase of 9%

units

continue

operate

)i deflation.'
7 .77/;/
"7 ' v ^/777'
Specifically,'in 1960 and the; sixties, these are some

enjoyS' freedom .of

better

than 400
and

Once

also

values

good

STATE OF TRADE AND INDUSTRY
Continued from page 9

will

sixties

life

policyholders

now

due less to the over-all

was

that

cash

enterprise

guarantee growth in the life insurance business. The
that sales of ordinary life insurance in 1959 hit a
up

the

will

immediately

responsibilities,

family

during

those who so invest, and good for
the economy as a whole—since life insurance
premium
dollars are continuously put to work for the benefit

of 1960 will be ahead of the same
period last
In another survey of leading sales executives, the
overwhelming reaction was bullish; they foresaw "higher
incomes, stronger buying trends, larger market."

billion,

mind,

1960

anteed

months

fact

will

year.

record S50.5

objec¬

recently of persuading Americans to invest in the

facturing leaders across the country feel that "new
orders, dollar billings, and profits" for the first six

course,

//'////Z/^/;/;v

with

men

amount vof, life,

predict

will

prosperity for this year 1960 and the Sixties.
For example, more than two-thirds of a
group of manu¬

financial

dual

spend surplus funds, to invest them
ties, or even to speculate.
/./

dividual

not

his

'.•//■//

for

investment.

one

peace

growth

'//

•

that

insurance

number

decade in its long and proud history."
prediction fits hand and glove with other
of optimism being heard about business and in¬

it helps,

predict

adequate

any

While

life

This kind of
notes

has

the

(1)

single plan.
■

greatest

who

man

to be

years

predict that life insurance sales will soar to newhighs this year as more buyers appreciate that inflation
or
no, a solid
base of guaranteed dollars is essential
in this financial planning for the future.
Through the
fixed dollar guarantee of life insurance, people are able
to set up a hedge against the possibility-^not So remote

to save money.

men

the

.7 '■
continues

and

dollar,

way

compelling

and

1960,

principles

has for over

need for governments to

the

protecting his family, and (2) building up
savings for himself at the same time, life insurance
of the permanent
kind provides the ideal answer in

known national

magazine predicted that "the life insurance
America

the

sure

time, life insurance

same

for

tives:

ZIMMERMAN, CLU

the

most effective method of

business.

the editor of

remains,

only

(

President, The Connecticut Mutual Life Insurance Co.
Just the other day

the

years,

hazards. ;

CHARLES

product

threat of continuous inflation

the

the great majority of Americans come
.realize the importance of, individual thrift,; as well

stocks, mutual funds, and real estate,

insurance

Thursday, January 21, 1960

somewhat

beyond,

times to equity

in good

predict that

subside

most men can
protect themselves and their families against life's major

communication is essential to business success, and busi¬
our

life

hundred

and

communication is

Despite the inevitable trend

our

prospective customers are in¬
creasingly mindful of the values of recording dictation
in their office, at home or while on the road. Experi¬
ence of recent years proves that business can make no
better investment than to provide an individual whose
time is costly with a better means to work.
Effective
ness

our

to assume

men

investments such

taped recording

customers

bulging population than to the desire
economic responsibility for their
families—as long as their families shall live.
prosperity of

half

Financial Chronicle

The Commercial and

;

Extensive

Hold

Iligh

Retail

Trade

Level

reduced-price

promotions held retail

trade

sales
at

high level this week, and volume
moderately over the simi¬
lar period a year
ago. The most
noticeable year-to-year gains oc¬
was up

curred in women's

apparel, furni¬

ture,

floor coverings and major
appliances. A marked rise in sales
of

new

during

passenger,

the

week,

c^rs

and

occurred
volume

Number 5918

Volume 191

of last year, accordJf«to scattered reports.
.
•
The total dollar volume of 're•I trade in the week ended Jan.
was 3 to. 7% higher than a year
In 'according to spot estimates
collected by Dun & Bradstreet
niched that

estimates

Regional

!?om

varied

comparable 1959 levels

the

following percentages: New
Frigland and Mountain +5 to +9;
cnlfth Atlantic and Pacific Coast
j.4 to 4-8; East North Central and
•lst North Central +3 to '-f 7; •
•Middle Atlantic +,1 to +5; West
South
Central' 0 to. -f4; East
hv

the

+2.

South Central —2 to
Retailers
reported

The Commercial

81c

was

weeks

reported.

ended

crease

was

For

the

Jan.

10%

registered,

7% increase
the figure for the

over

riod

1958.

moved up from a week earlier

in¬

noted

was

same

pe¬

•

period

comparable

the

year. '■/ '-;V "; 0
A marked rise in. sales

last

-■■■U
of

ap¬

pliances occurred" this week, ex¬
cept for television sets and radios.
Substantial year-to-year gains oc¬
curred in automatic washers and

and ' refrigerators.' Furni¬
reported sizeable in¬

dryers

stores

ture

last

over

creases

' in
bedroom

both

year

living Tooin and
chandise. Continued

mer¬

According to the Federal Re¬
System department store

sales

week

ended
the

over

the

New

York

Jan.

like period last year.

preceding week ended Jap. 2,

1960

increase

For the four weeks

11% increase

City for the
increased- 9%

the

1959

showed

ending Jap: 9

was

reported over
The year VI959

period.
4%

shown:

was

increase

ing 1959 period.

;'b;

While the buying of
coverings showed noticeable
ago.

year

floor

year-to-year gains,

peries
A

sales, of dra¬

Rad-O-Lite,
Offered by
J. G. Cravin

good

ordering
pace
was
maintained in Chicago household
goods markets
this
week,
es¬
pecially for furniture; interest in
metal
door

dinette

sets,

furniture,

holstered
year

goods and

case

chairs

well

was

Wholesalers

ago.

up¬

over

house¬

hold goods in Atlanta reported the
most appreciable gains in
lamps,

upholstered goods and

goods.

case

Although attendance at the open¬
ing of the New York. Curtain and

Drapery
year

show

was*

well :over

orders

ago,

down

were

slightly. Buying at
Domestics

and

New York

the National
Linen
Show
in

was

slightly from

the similar event last
year.

There

ago in
this week in

New

salers reported
in

noticeably
southern

sportswear,
In Boston
the most

men's

cloth

whole¬

substan¬

ooth

and

Mid-Western
fill-in

merchandise

apparel:
bestsportswear, topcoats

lightweight

suits.

Re-orders

children's winter apparel

ded

somewhat,

but

ably18 dothing Peeked
Declines

sub-

volume

up appreci-

volume

?-11d sheetings held overmJ:ad^g in cotton gray goods
? y ^elow a week earlier;
nil

♦

es were in short supply.
r,n,?
marked rise occurred
rl„oIngithe week in orders for inAmvfu

fabrics

and man-made
■3 ?,JTrading in woolens and
^oisleds in Boston lagged. While
**1? carpet wool expanded
wp! 'aitely.in Philadelphia, sales
fji.

sluggish

in Boston markets.
dyers and finishers

rise *n incoming

order

Nationwide

Department Store
lip 9% for Jan. 9 Week

cnm^ent store sales on a
tho K"wide hasis as taken from
dev rf
f,a Pescrve Board's In19fin ?lr
e week ended Jap. 9,
Derin ! lcreasecl 9%' above the like
].ast year.
In the preceding
lor
»

Jan. 2,

increase

stockholders of Greer

the

basis

for

held.

These

The

each

five

per

four

additional

rights

then

expire

"'V.

net

will

proceeds
be

applied

of the costs

relocation

the

stock

first

the

involved

the

mated to be not in

excess

000.

The balance

ceeds

will

current
and

the

net

used

$300,pro¬

reduce

obligations of the company
general; corporate
pur¬

for

poses.

light

control

system.

the

"fe

proceeds of this financing, it pro-;
poses to use $80,000 for installation
of

traffic

Erie,

light

control

conditioned

system

upon

City

for

the

Schwabacher

Co.,

heading

underwriting group
100,000
shares
of
the

common

stock

offering

($1 par) of Lockhart Corp.,
Lake City.
The stock is

Salt

priced

$11.50

Lockhart is

per

for

health and accident insurance po¬

selling; and $113,000 for working
capital, which will be used in
part for the payment of accrued
officers

to
in

the

and

former

amount.of

$4,840,

$12,180 bank loan used
installation of new units; and

$12,219 for trade accounts payable.

licies sold to

numerous

from

their

A. T.Brod & Co.

under

the

Offers General Coil

company

Co., in connection
loans; and (3) eight
companies organized

loan

laws

insurance

the

Form Life In v.
offering

circular

A. T.- Brod & Co.
offered 99,000 shares of the com¬
mon
stock (10 cent par) of the
General Coil
Products Corp., a
coil and transformer manufactur¬
dated

Jan.

12,

corporation located in Ja¬
maica, L. I.> N. Y.
The proceeds are to be used for
additional
equipment - and
ma¬
chinery,

research

The

stock

was

develop¬
operations,

and

ment, automation-of
and working capital.

315

Officers

Street.

business

Montgomery

Corporation

Street

Investors

Inc.,

Forrest

are

has
been
in¬
vestment business of John Street
Investors. Officers are Herman I.
Krainman, President and Treas¬
urer, and F. P. Krainman, Secre¬
tary. Mr. Krainman was formerly
sole proprietor of the firm.
,
Street, New York City,
formed to continue the

Alexander Goun Opens
FOREST HILLS, N. Y.—Alexander
Goun is conducting a securities
business
from
offices at 6.5.-61
Saunders

1959

with

Street.

North

advances

stocks

Fourth Street.

Price-earnings

Officers

Barbre,

demand
turns

engaging in a securi¬
offices at 2oOJ
Drive under the firm

business from

Cadillac
name

of Marcus

Investment Co.

higher

PATERSON, N. J.—Peter Bostory
is engaging in a securities busi¬
ness
from offices at 128 Barclay
Street.
He was
formerly with
First Investors Corporation.

with

Capitol Securities
Corp.

offices

Ohio—Capitol Se¬
has been formed
at

East

engage

Forms

Co.

expand beyond the lim¬

presently served.

ited territory

Bankers

re¬

of this

well aware

are

limitation

and :

again

they

are

legal liberalization: from
legislature. Since growth
through branch banking appears
inevitable.it is indeed unfortunate

tically assures the better earnings ^seeking
for- the

outlook

months-

ahead-.

the State

•

During, 1959 bank managements
quite properly took security losses
in

order

to- obtain

higher returns

Leading

City

Adj. Bid

Adj.
Indie.

1959

Yield

Divid.

Earn-.

Gain

$2.40

$4.81

15.5%

70—

Bank

way

which

Price

1959-1960

Manhattan

the

Stocks

Bank

Recent

Price Range Mean

Chase

of the economics of banking

York

New

Stands

tradition

that

available

the

loanable funds,

3.6%

Earn.

City Bank.J___

92—

3.4

3.00

5.55

Chemical Bk. N. Y. Tr. Co.

70—

3.6

'2.40

"4;.60

Morgan Guaranty Tr. Co.__

118—

111

3.7

4.00

5.86

12.7

First Nat'l

12.7

12.7 '

Manufacturers

Trust

Co.__

69—

3:7

2.40

4.69

15.2

'::Bankers Trust

Company__

105—

103

3.3

3.44

6.80

24.3

Irving Trust Company

43—

3.9

1.60

2.89

13.9

The Hanover Bank

55—

3.9

2.00

3.53

12.8

.' 335—246 327

3.7

12.00

20.59

19.6

Bank of New York

stock

100%

best
end

1959

Bank,

dividend is

the

serves

pending.

public.

year

only First National City

Bank

New

and

York

Chase Manhattan Bank

able

were

to make some

slight gain in assets

and

Ranked by deposits
Co., Bankers

deposits.

Manufacturers Trust
Trust

Co., Irving Trust Co., Han¬

Bank and Bank of New York

over

Irving

The

stockholders.

in the table

presented have been adjusted for
these' payouts, although some of
the proposals are still subject to
stockholders' approval.
Although cash dividends were
increased

Bankers Trust and
during 1959,

Manufacturers Trust

with Chase Man¬
presently show the lowest
dividend payout of earnings. While
most of all of the banks are likely
together

they

hattan

dividends in 1960

to increase cash

York Trust Co.

Bank's

earnings

and

Prices

12^%

and

Trust

Hanover

gains

book

values

since

operating earnings more than off¬
set security losses.
Manufactrers

rising

achieved

trend

the

gain.
Also,
faster than

nine

all

banks

toward

book

best

with earnings
capital funds,

continued

obtaining
on

their

-higher

book value.

biggest

improvement.
i

Increases in capital funds
are
occurring through

for

1960

issuance

stock

the
dividends -by

several of the major banks.

declarations, which
a

Such

serve

bank's earning power

base,

include

First

National

1961, Chase Manhattan should

one

operating

creased

during

Banks have

control

City

operations.

the past year

stocks

The

leading banks in

Factors under¬

ments at this time.

relative attractiveness
include
proficient managements,
economies from automation equip¬
lying

the

ment

utilization,

kets—local

Head

Bank of India

E.C.3

PARLIAMENT STREET, S.W.I
ST. JAMES'S SQUARE,

Rd.,

Available

Nairobi;

S.W.I

13 St. James's Sq.;

Ins.

Dept.:

Govt.
Parliament

St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54 Parliament St.
&
18

Laird, Biss ell Q Meeds
Members New York Stock

Exchange

American Stock

UGANDA,

7-3500

Specialists in Bank Stocks

James's Sq.
ADEN, KENYA,

ZANZIBAR & SOMALILAND
PROTECTORATE,
,
„'
.,

Branches

5, N. Y.

Teletype NY 1-1248-49

St.

Bankers to the Government in:

Exchange

Telephone: BArclay

LONDON,

Branches

Trustee Depts.:

Bell

Bank Earnings

Ltd..

Ltd.

Office:

BISHOPSGATE,
London

City

BROADWAY, NEW YORK

■

LIMITED

Grindlays Bank

Comparison
26

120

mar¬

NATIONAL AND GRINDLAYS

and

Members

wide

and

international.

BANK

Now

was

major cities continue to hold par¬
ticular promise as sound invest¬

Amalgamating National

Breakenridge Co.

Best

excluding

Bank

New York

in¬
York

achieved by Bankers Trust.

Our Annual

New

expenses, ;

during

taxes,

Even

established record

based

expenses

1959,

efficient

for

record.

statistical

though

the
stockholders of Chase Manhattan,
each

of the first to do

the

Broad

Miss
Breakenridge was
formerly with Wm. H. Davis &
pany.

Banks to

loans and securities prac¬

strengthen

Form

de¬

basis

interest

fair? increase

ex¬

unchanged loan po¬

and

1958

posit growth, as well as stagnant
total
asset growth, * again points
out the need for New York City

can

the

Bankers Trust showed the

N.
J. —Helen
M.
has .opened offices
at 24 Commerce Street to engage
in a securities business under the
name
of Breakenridge
& Com¬

ties

generally

v/ •-» i-r \

Peter Bostory Opens

Breakenridge

C. Marcus is

are

and

percentage earned

NEWARK,

Y.—Seymord

and

value

Treasurer.

MEADOW, N.

1960.

still

results

higher estimated 1960 earnings.

Co.

EAST

ratios

sition

•.

the

posits, 1959 produced a healthy
gain in. loans but no growth in
deposits. Other than for general
credit restraint, this lack of de¬

The combination of strong loan

are

Secretary

and Treasurer.

perience of

bank

for

1959.

on;

current,, prices

Trust

President; Leslie W.
Nimo, Vice-President; and Alonzo
R. Fearneyhough, Secretary and

Forms Co.

city

considered attractive

612

Barbre,
President;
Behler,
Vice-President;

Carl

and

securities
(Special to The Financial Chkonicle)
business.
Officers are Jack D.
SPRINGFIELD, 111.—Great States
Griffith, President; John A. Ber¬
Securities, Inc. has been formed
nard, Secretary; and Donald H.
with offices at 311 East Monroe
Bradley, Vice-President. All were
Street to engage in a securities
formerly with Gallagher Roach &
business. Officers are Ira G Wood¬

S. Marcus

major

indicated

are

t»

occurred for all nine banks,

Street

Jr.,

for

•:

securities

offices

from

Charles
Ben

the

Government

with

contrast

lowest

eventhe

funds.

performer, Irving Trust,
registered a 10% gain. Further

Modest

(Special to The Financial Chronicle)

registered

holdings by at least 30% during
the year to obtain needed loanable

appreciation

COLUMBUS,

Sees.

while

37.5%,
placed

New

curities

Form Great States

ward,

market

their

reduced

trial stock average. Bankers Trust
was
the star performer for 1959

engaging

higher

best

of these issues outpaced the
gain of the Dow-Jones indus¬

ance

Form B B R Associates

Trust

York

lead

Chemical Bank

earnings in time.

stock¬

Silvio E. Ravetti, all lost national position.
Only
Vice-President; and Robert L. the banks effecting mergers in
Sprinkle III, Secretary-Treasurer. 1959 were able to advance their
All were formerly with McCormiclt
positions, namely Morgan Guaran& Co.
try Trust Co. and Chemical Bank

business

for

case

Lee, President;

CARMI, 111.—B. B. R. Associates,

Now A

John

Planning

securities

offices

from

Inc.

John

agency

in Utah.

FRANCISCO, Calif. — Life
Investments
Planning
Corp.
is
conducting

actions

gain in loans, up 17%; The
holders of New York City banks: ■Hanover Bank's gain was a modest
On average.the market perform¬
5%. All of the eight largest banks

en¬

SAN

priced at $3 per

share.

New

the

„

such

The

Utah.

indirectly

also

gaged

business (other than life)

Common Stock
an

borrowers

Lockhart

small

This improvement is

opportunely

company

with

Pursuant

cellent year.

share.

to repay a

advertising;

director

since

primarily

a holding
owning all the outstand¬
ing stock of (1) Lockhart Co., an
industrial loan company in Utah,
(2) Royal Life Insurance Co., an
Arizona
corporation
principally
engaged in the reinsuring of life,

for

Stocks
r

Investors owning bank stocks
have benefitted from another ex¬

net

Bank

—

THE 1959 RESULTS OF MAJOR NEW YORK CITY BANKS

reasonable

remote control electronic traffic

This Week

Hydraulics, Inc. the right to sub¬

Offers Lockhart ir:

mar-

interested

summer

eiiers were
nd

most

common

dated

signing, manufacturing, installing
and
leasing electronic
building
protection systems and developing

rose

were

winter

and

apparel

last year in

over

^ayers

Markets

gains in women's sportswear,

volume

0«j

bookings in women's-

spring dresses,
coats and suits.
tial

York

over

BURRINGTON

BY LEO

offering

Schwabacher & Co.

ing

marked rise

was a

year

prospectus

„

out¬

summer

Organized in 1957, the company
is engaged in the business of de¬

wages

steady.

were

STOCKS

company's
operations from New York, N. Y.,
to
Los Angeles, Calif., the cash
expenditure
for
which
is
esti¬

inventory; $60,000
promotion
and

over

;

scribe to 235,139 additional shares'
of common stock at

the

manufacture of

helped

moderately

payment

volume

Sales

sale

$100,000

climb

Pursuant

Jan. 14, Burnham & Co. is

over;* the Jan. 29.

authorization;

White

Rights to
Stockholders

the correspond¬

J anuary

linens

Burnham Offers

serve

slightly over last year.
Best-sellers in men's apparel were
topcoats, suits-5 and; sportswear
John G. Cravin & Co. is
offering
holding over-all volume moder¬
300,000 shares of the common
ately over last year. Purchases of
stock of Rad-O-Lite, Inc., of Erie,
men's furnishings; showed
little
Pa., at $1.50 per share.
change from both the prior week
and was

117

four

"gains over

ries

(369)

and for the

year 1959 a

level achieved in

significant,
last year in sales of
women's cloth coats,- "suits 'and
dresses, and volume in sportswear
and cruisewear was up appreci¬
ably. Interest in fashion accesso¬

and Financial
Chronicle

INDIA, PAKISTAN,
TANGANYIKA,

in*

CEYLON, BURMA, KENYA,
ZANZIBAR, UGANDA,

SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA
ADEN,

Chronicle

Th£ Commercial and Financial
118

Thursday, January 21, 1960

(370)

* INDICATES

unless

Stores Corp.

Bros.

Aaronson

70 cent cumulative pre¬
ferred
stock
(par $2.50).
Price — To be supplied by
amendment.
Proceeds—To pay for opening, equipping
and stocking three new stores in El Paso, San
Luis,
Ariz., and San Diego, Calif. The balance of the pro¬
ceeds will be added to the company's general funds and
used
primarily to open, equip and stock additional
stores that may be opened in the future.
Office—526
East Overland Avenue, El Paso, Texas. Underwriters—
Eppler, Guerin & Turner, Inc., Dallas, Texas, and Harold
Dec.

filed

40,000

Abbott-Warner Co.,

Dec.

stock

ferred

Dec.

22 filed

•

by amendment,

53rd

Hemphill,

Noyes

Offering—Expected
■
/;/■

Co.

American

Service

Life

Insurance

Oil Co., Inc.
filed 3,000,000 shares of common stock (par
five cents).
Price—$2.50 per share. Proceeds—For fur¬
ther development and exploration of the oil and gas po¬

Inc.
Jan. 18 filed 50,000 shares of capital stock. Price—To be
supplied by amendment. Proceeds—To buy plant and
property, repay bank indebtedness, and add to work¬

Wall

the

company's

Alaska

properties.

Street, New York. Underwriter—C.

Office—80

ing

Whitaker,
Zappa & Co., Inc., New York. Offering—Expected
in January.
•

Office—10630

Underwriter—Dean

Cahf.

Sessler
Witter

South Gate,
Co., San Francisco,

Street,

■' '■

* Anthony

Aircraft

Dynamics International Corp.
(2/15)
(letter of notification) 100,000 shares of com¬

Sept. 25

capital.

Calif.

A. J.

Jan.

(C. R.) Co.
(letter of notification)

class

Price—$3 per share. Proceeds
—For general corporate purposes.
Office—229 S. State ;

non-voting common stock (par $100) to be .offered to
employees of the company and its subsidiaries. Price

Street, Dover, Del. Underwriter—Aviation Investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.

—At

mon

stock

(par 10 cents).

• Allegheny

Airlines, Inc. ; (2/1-5)
$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. Office—
Washington National Airport, Washington, D. C. Under¬

;

Dec.

filed

writers—Auchincloss, Parker & Redpath of Washington,
and Allen & Co. and Lee

York City.

Higginson Corp., both of New

Bowling Centers, Inc.
29 filed $750,000 of
sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures
and 30 shares of
Dec.

Price—$108

porate purposes.

per

unit. Proceeds—For general

cor¬

Office—Arlington, Texas. Underwriter

Allied Producers
Corp.
Dec. 3 filed 1,000,000 shares of common stock.

Price—$1
Proceeds—For working capital to be used in
the purchase of oil and
gas properties and related forms

of investment.

Office—115 Louisiana
Street, Little Rock,

Ark; Underwriter—The offering

•

L-

is to be made by John
Hedde, President of the issuing company and owner
10,000 of its 80,000 presently
outstanding shares. Mr.

Hedde will work
ceive

selling

Arkansas

//.

■

Apache Properties, Inc.
Nov.

20 filed

500,000 shares of

to be offered in

and

oil

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.

sales

"best efforts"

commission
and

cents

per

basis, and will

cents

$6,000,000 of U-Haul Fleet Owner Contracts
$3,000,000 of Kar-Go Fleet Owner Contracts. The
provide for the operation of fleets of automobile-type rental trailers in the U-Haul Trailer Rental
System or the Kar-Go Trailer Rental System. ■ Office—
E.

Hawthorne

Boulevard, Portland, Ore.

per

re¬
on

out-of-state

sales.

SEC

common

stocks.

Office—301

equity

capital

concerns.

and

provide

long-term

Office—Washington,

members who

execute

Expected in January.

loans

small

business

D. C. Underwriter—NASD

selling agreement.

11th

City, Mo. Underwriter—Jones Plans, Inc.,
sidiary of R. B. Jones & Sons, Inc.

Street.
a

sub¬

Automatic Retailers of America, Inc.
(1/26)
Dec. 15 filed 120,000 shares of common stock.
Price—To
be supplied by amendment. Proceeds
To pay bank
loan, with the balance to general funds for
expansion
and acquisitions. Office
Los Angeles, Calif. Under¬
writers
White, Weld & Co.. New York City, and
Cruttenden, Podesta & Co., of Chicago.
—

—

Offering-

Price—$8

capital and surplus.
Memphis, Tenn. UnderwriterSecurities Investment
Co., also of Memphis, which
»

will receive a
•

selling commission of $1.20
American Gypsum Co.
(2/1-5)

per

share.

00*0 "nf l1^.?8?'000 shares of common stock and $1,200,nffJSL ^
S mortgage notes, due Dec. 1, 1969, to beSote^tnd^h con8ifti^
$100 principal amount of

seoaratefv
separately

/eS^i stoc_k- The
transferable
tra

only

common stock will be

and

after

.July

X, 1960

Inc.
Dec. 2 (letter of
notification) 120,000 shares of common
stock (par $10
cents). Price—$2.50 per share. Proceeds—
To

remodel

store

and

offices in

warehouse, opening a
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.
,
•
new

store and for

★ Bastian-Morley Co., Inc.
18 filed $650,000 of convertible
first mortgage sinkmg fund bonds.
Price—At 100% of principal amount.
Proceeds—To buy about 50.0%
(67,808 shares) of its'

Jan.

vvfvV^"--v.

Border

Sept.
1959,
held.
For

'V*

^4/-/^

Steel

Rolling Mills, Inc. ./•/<;*•
;
:f
14 filed 226,380 shares of common stock, to be. of¬
for subscription to stockholders of record Aug. 31,
on the basis of 49 new shares for each share then
Price—To be supplied by amendment. Proceeds—

fered

general

corporate

Office —1609 .Texas
;
r .; ; y

purposes.

Street, El Paso, Texas.

Underwriter—None.

if Boston Racing & Breeders Corp.
,1/
Jan. 11 (letter of notification) 23,000 shares of common
stock/ Price—At par
($10 per share)./Proceeds—For
expenses in operating a race track.
Office—c/o Frank

Berman, President, 481 Boylston St., Brookline, Mass.

Underwriter—None.

/■/—

/■/"',./ :/'/

//,/-•

///; ?;v-v

V; A-/-,A
;
Sept. 25 (letter of notification)\120,006 shares of class A
common stock
(par five cents). Price—$2.50 per share.
Proceeds—For building and equipping stations and truck
stop and additional working capital. Office—C/o Gar¬
land D. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc.r Old Town
Bank Building, Baltimore 2, Md.;
; /

/; Burch Oil Co.

California

Metals

Corp.
July 27 filed 2,500,000 shares of common stock/ Price—
At par (20 cents per share). Proceeds—For construction

Salt

Lake City, Utah.. Underwriter—Cromer Brokerage
Co, Inc., Salt Lake City.,
/
/
.

California

Mutual

Co-Ply, Inc. *
Sept. 14 filed 140 shares of voting common stock. Price
—At par ($5,000 per share). Proceeds—To purchase the
mill and related facilities of Durable Plywood Co. for

nine

the list
Holt, of Eureka. Calif, President of (the company.

promoters,

Ernest
•

Underwriter—The offering
Benjamin Robbins, one of the
of which also includes Harry

Office—Calpella, Calif.

is to be made by Ramond

California Water & Telephone

Jan.

(2/9)

Co.

ffled

210,000 shares of common stock, of which
200,000 shares are to be offered to the public, and 10,000
shares are to be offered to employees of the issuer. Price
—To be supplied by amendment.
Proceeds—To be ap¬
plied to 1960 construction expenditures, which are esti¬
.

mated

San
Russ
•

Montgomery Street,
Francisco, Calif. - Underwriter—Blyth & Co, Inc.,
Building, San Francisco 4, and New York City. >
$13,387,000.

Can-Fer

Dec.
To

Mines

filed

Office—300

Ltd.

300,000' shares

of capital- stock.' Pricesupplied by amendment. Proceeds—For explora-

tion and development of mining claims. Off ice—Toronto,
Canada. Underwriters—Pearson,

Murphy

and

Bargain Centers,

rvffMiSe«?T?c?edV"~To increase
l«5 Union Ave
Union

Sept. 10 (letter of notification) 300,000 shares of
common
(par 25 cents). Price—$1 per share. Proceeds—
For working capital. Office—1404
Main Street, Houston
2, Texas. Underwriter—Daggett
Securities, Inc.; Newark.
stock

N, J*.

American Frontier Life Insurance
Co.
Nov. 30 filed
200,000 shares of capital stock.

Texas.
v

tal.

Kansas

Bankers Management
Corp.

Rolling Mills, Inc.

thereon, and for the manufacture and in¬
necessary equipment.
Office—1609 Texas
Street, El Paso, Texas; Underwriters—First Southwest
Co, Dallas, Texas, and Harold S. Stewart & Co, El Paso,

—

Allied Small Busine&s
Investment Corp.
Sept. 29 filed 100,000 shares of common
stock (par $8).
Price—$11 per share. Proceeds—To be
used to
-

and

$690,000, with the balance to be used for working capi¬

Aug. 28 filed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬
ment

City,

construction

contracts

York

a pilot plant; for measuring
ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,

and

4707

New

Dec. 28 filed

Associations Investment Fund

per share.
*

Underwriter—None.

clearance is expected about March

—Rauscher, Pierce & Co., Inc., Dallas.

book value. / Proceeds—For equipment; purchase
existing stores and capital improvements. / Office—
701 N. Broadway, P. O. Box 994, Oklahoma
City, Okla.

Arcoa, Inc.

Allied

stock.

intends to lease to: various businesses.
Montgomery Street, San Francisco, Calif'.

315

—

850

in¬

acquisition of additional equipment which

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 ^Shimon stock.
Price
To be supplied by
amendment.
Proceeds—For the purchase of land/and

Co.

★ Anadite,

per

stallation

including, possibly, the acquisition of simi¬
larly engaged companies. Office ?— 113 Northeast 23rd
Street, Oklahoma City, Okla. Underwriter — First In¬
vestment Planning Co., Washington, D. C. _/.,'/■.

Alaska Consolidated

—

Sept.

Feb¬

purposes,

Office—Clayton, Mo. Underwriters — Scherck, Richter
Co., and Dempsey-Tegeler & Co., both of St. Louis, Mo.

and

V'V.'

Underwriters—Wertheim & Co,
J.; Barth & Co, San Francisco. /

Of¬
Street, New York City./ Underwriter—

ruary.

cer¬

Jan. 12; rights expire Jan. 29. Price — $24
Proceeds—For general corporate purposes,

company

Office

Pro¬

porate purposes, including the reduction of indebtedness.

tential

the

property acquisition and development.

fice—49

fixtures

40,296 shares of common stock (no par) be¬

Border Steel

Price—To be supplied

common.

payment*, of

Leasing Corp.

cluding the

Co.

Sept. 14 fil^d 300,000 shares of common stock (par 40tf).
Price—$3.50 per share. Proceeds—For general corporate

•

share.

300,000 shares of class A preference stock

suing company. Prices—For the debentures, at 100%
plus accrued interest from Feb. 1, 1960; for the stock, to
be supplied by amendment. Proceeds—For general cor¬

Sept.

record

Inter¬

ceeds—For

a selling stockholder and the
offering is to be made on behalf of the is¬

of the

14 filed

for-

ing offered to holders of outstanding common, stock on
basis of one new share for each eight shares,.held of

($15 par) and 300,000 shares of common stock, to be of¬
fered in units of one share of preference and one share

offered for the account cf
rest

Office—513

Boothe

Dec.v2 filed

No decision has been announced.

Land

American

Dec.

stock

common are to

...'

Proceeds—For con¬

related expenditures.

and

Proceeds—For repayment of

notes;

Call#.; and Hill Darlington- & Co, New York...Offering
—Expected in February.
■>./
:/;*.4;//f!

(par-10

outstanding

equipment4'or new supermarkets;^ and the balance for
general corporate purposes./ Office —>1&45;S; E. Third
Ave., Portland, Ore. .Underwriters—J, Barth & Co, an^
The First California Co. Inc., both of San Francisco,

Mart, New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept. 2, which will
determine whether a stop order will be issued suspend¬

$5,000,000 convertible subordinated deben¬

(par $1), of which 75,000 shares of the

tain

national Trade

Underwriter—None.

common

■

23 filed

plied by amendment.

Syndicate,

Price—$12 per unit

($9),

struction

(1/26)

tures, due Feb. 1,1975, and 200,000 shares of

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting
of 3 shares of common ($1 each) and 1 share of pre-

per share.
Proceeds—
Office—1783 New York

Avenue, Huntington Station, N. Y.
Co.

Inc. v
filed 600,000 shares of common stock

June

Investors

ing the offering.

Price—S2

(50,000)

Foundation

American

Inc.

For general corporate purposes.

Finance

all

tix,
Bldg., Phoenix, Arizona, underwriter—None. >

(letter of notification) 50,000 shares of common

Aetna

publicly offered). Proceeds—For capital and surplus
the 13-month-old company. Office—Title & Trust

Office—13215

(par one cent).

and

the exercise of an option granted an agency dir
rector. Price—$4.50 per share (for the 250,000 shares to
of

if Aerodyne Controls Corp.
13

class

class A

upon

Leadwell Street, N.
Hollywood, Calif.
Underwriters — Amos Treat & Co.,
Inc., New York and Arthur B. Hogan, Inc., Los Angeles,
Calif. Offering—Expected in February.

Jan.

of class A common and 50,000
common, of which 50,000 shqyes of

"C"

Big

Dec.

of the class B have been
Life Insurance Co., and
16.667 shares of the class A are reserved for issuance

working capital.

shares
the

(letter of notification) 150,000 shares of com¬
(par 25 cents). Price—SI.50 per share. Pro¬
ceeds—For research and development; advertising and
for

Stores, Inc.
250,000 shares of common, stock,, of ^hich
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¬

Insurance Co.

Dec. 18 filed 316.667 shares

stock

mon

Office—200 Truesdetl Avenue, LaPorte,. Ind. Un¬
derwriter—City Securities Corp., Indianapolis 4,/Ind. i,
•

Life

Industries

of its Sund¬

one

tures.

•

American

from the family of

the late James P. Morley. This will cost $542,466.
proceeds will be applied to the re¬
tirement of the issuer's junior convertible 5%
deben¬

The remainder of the

Albuquerque, N. Mex. Underwriters—Jack M.
Co., Nashville, Tenn., and Quinn & Co., Albu¬

querque.

Inc.

Electronics,

subscribed

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
Avenue, Youngstown, Ohio.
Underwriter —
Strathmore Securities, Inc., r 605 Park Building, Pitts¬
burgh 22, Pa. This offering is expected to be refiled.
Accurate

W.,

Bass

common

ISSUE

REVISED

ers,

Price—$300 per

company.

ITEMS

•

outstanding

of Directors

unit. ■ Proceeds—For
general corporate purposes, including construction equip¬
ment, and working capital.
Office—323 Third Street,

Aug. 12 (letter of notification)

•

earlier date is fixed by the Board

the

shares of

Stewart & Co., El Paso, Texas.

Registration

Now

Securities

ADDITIONS

/SINCE

Emanuel, Deetjen & Co,
a

ruary,
•

"best

efforts", basis.
'•

Cardinal

Nov.' 30

filed

200,000

Co.;: Inc.,

New

Co.

•

City,

York

Offering—Expected

■

Petroleum

both

Feb¬

•

stock.
Price—$4 per shafe.
Proceeds—For general corporate
purposes including debt reduction, drilling and work¬
ing capital.
Office—420 No. 4th St, Bismarck, North
Dakota.
Underwriter—J. M. Dain & Co, Inc., Minne¬
apolis, Minn.
Carolina
Dec. 30 filed
be

supplied

Offering—Indefinite.

Natural

Gas

Corp.

120,000 shares of
by amendment.

capital

common

•

common

stock.

Proceeds—For

Price—To
debt

re-

Volume

The Commercial

Combined

"V"'..,

"r; ^

' *

100,000 shares of common
cMr /oar 10 cents). Price—$1 per share. Proceeds—For
nira 1 corporate purposes. Office—River & Wood Sts.,
I* nor N J. Underwriter—Rv A. Holman & Co., Inc.,
,t

jdnc.,

York, N. Y." Offering—Expected in February.
Casualty «hnrp<s nf nlass A (1/25-29)
Co. of New York
nnn
M '
g filed 250,000 shares of class A common stock
$2). n-J-"
Price—To Ko . supplied hir' amendment.*, Pro521
T1/"* be cnnnliDa by; nrv-ionrlv-v>v-> + D«n■
ceeds^-To be . invested im income-producing securities.;
oc;n

505

Clinton

Office—250 Park Ave., New York City.
Underwriters — Bear, Stearns & Co., New York City,
and H. M. Byllesby & Co.,. Inc., /Chicago.
*
Coastal Chemical Corp. V ';j
A
Dec. 7 filed 111,729 shares of class A common and 70,000
shares of class C common, of which 50,000 class, C shares
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; " Pride

writing

Computer Usage Co., Inc.
Dec. 29 (letter of
notification) 47,000 shares of common
stock (par 25 cents). Price—$5
per share. Proceeds—For
general corporate

•

aldson,
any.

/ ;

Luskin

& Jenrette,

Office—100 W. 10th Street,

Inc., New York, N. Y.

Albany Corp., Albany, N. Y.

day.,'

■;v;;/'v'

;

•

director of the issuing

and President of the underwriting corporation.

company

Natural Gas Co. (2/8)
$25,000,000 of debentures, due Feb. 1, 1985.

★ Consolidated

" /;'/

■

Pompano

basis. Note—Nick P. Christos is

and

Offering—Expected

/ Yv • >"ry>;

;

Development Corp.,

Beach, Fla.
filed 140,000 shares of common stock (par $1)
Price—$5 per share. Proceeds—To pay outstanding notes
and for working capital. Underwriter—Consolidated Se¬
curities Corp., of Pompano Beach, Fla., on a best efforts

Nov.

14 filed

Jan.

Consolidated

Proceeds—For construction.

Development Corp.

mined

Aug. 28 filed 448,000 shares of common stock (par 20c).
of which 1198,000 shares are to be offered to holders of

selling

-a

;; ;v-

;

purposes..

Consolidated

Miss. Chemical under¬

efforts""* basis, receiving

"best

York.

Wilmington, Del.
Underwriters -j- Marron, Sloss & Co.,
Inc. (handling the books), and Roosevelt & Gourd, New
York, N. Y,; L. B. Schwinn & Co.. Cleveland; Ohio; Don¬
First

Underwriter—The offering is to be made

commission of 33 cents a share. •

•

stock:

through Coastal employees with

refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.

York.

class A stock: $30 per share; for the class C

$25 per share.
Proceeds—For working capital,
construction, and repayment of loans. < > Office—Yazoo

follows: $1,000 of bonds and 48 shares

construct

City, Miss;

of stock and $100 of debentures and nine shares of stock.
Price—To be supplied by amendment.
Proceeds — Tos

indebtedness. -

—For the

Corp

an(* 3,000,000 shares of common stock to be

offered in units

Engines Corp. (2/17)
".?/p/v-; y"
Jan 11 filed 350,000 shares of common stock. /Price—
To be supplied by amendment.;' Proceeds —To reduce
t

Refining

16, 1957 filed $25,000,000 of first mortgage bonds due
Sept.;!, 1968, $20,000,000 of subordinated debentures due

Corp.

Higginson

—

Oil

stock; for the shares to be offered to the under¬
writer, $1 per share; for the shares to be offered to the
public, the price will be related to the current price of
the outstanding shares on the American Stock Excbange
at the time of the offering.
Proceeds—For general cor¬
porate purposes.
Note — This company was formerly
known as Consolidated Cuban Petroleum Corp., which
was
a
Delaware corporation with Havana offices.
Its
charter was amended last June, changing the corporate
name
and sanctioning its entry into real estate opera¬
tions. The SEC announced a "stop order" on Dec. 10,
challenging the registration statement, and the corpora¬
tion told
this newspaper they planned to re-register.
An SEC hearing is scheduled for Jan. 25. Office—Miami
Beach, Fla. Underwriter — H. Kook & Co., Inc., New

mon

Dec.

York'City. Underwriter—

New

■—
Office—3? Maiden Lane,
uniw

price at which the debentures are convertible into com¬

"best efforts" basis.

holders, 75c per share, which is equal to the

debenture

St., Brooklyn, N. Y.
Underwriter
Marron,
Co., Inc. Offering—Expected in February.

,;£omin«tc«

Lee

Court

bloss. &

otv

r>nmmr»ri

Indianapolis, Ind.,

licly offered. Price—For the shares to be offered to the

Commerce Drug Co.
Nov. 30 filed 90,000 shares of common
stock. Price—$6.50
Proceeds—To selling stockholders. Office—

Citizens
»_

described

•

New
•

the

common stock (par $1).;$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,

cascade Pools Corp.
W (letter of notification)

119

remaining 150,000 shares, in addition to those shares
above not subscribed for
by the debenture
holders and the underwriter, respectively, to be pub¬

Inc.

8^°,^00 shares of

rnce

1;-

(371)

Electronics,

p!?'

Podesta & Co., Chicago, and Odess-Martin,;

nden

g?, Birmingham,- Ala.

;

and Financial Chronicle

Avenue

F^r.ts

construction, and;.working capital. Office—256
N. W.y-Hickory j N: C.y Underwriters —

i-An

duct

Number 5918

191

the
;

issuing company's 6%

,100,000 shares

convertible

Underwriter—To

bidding.

deter¬

Probable bidders:

Hal¬

Stuart & Co. Inc.; Morgan Stanley & Co. and First
Boston Corp. (jointly); White, Weld & Co. and Paine,
Webber, Jackson,& Curtis (jointly).
Bids—Expected

sey,

debentures,' and

to be offered to the underwriter, with

are

by competitive

at the office of the issuer, Room 3000,
Plaza, New York 20, New York, up to
on Feb. 8.

Rockefeller

received

11:30 a.m., New York Time,
Consolidated

Tenney Engineering

(Tuesday)

Co.,

Finger Lakes Racing Association,
(Stroud

_______Debentures
Inc.) $500,000 ,-r

(Milton D. Blauner & Co.,

(Stroud

•

Gold Medal
Home

Malkan

..Common

(Stone

Oil

:__„___Debenlures

Co., Ltd.___
Brothers

Wood,

and

Gundy

(Bids to

Investing

(General

Investing

Corp.

Teleehrome

Co.,

Inc.

and

N. Y.

$750,000

(Blyth & Co.,

■

Texas

Aetna

Finance

Co.__!

(Scherck,* Richter
;

(Bids

•

Common

Dempsey-Tegeler

Co.'and

Electronics

Control

;

(Milton

Aetna Finance Co.—
(Scherck,

Richter

Debentures
Dempsey-Tegeler

and

Co.

$5,000,000

Co.)
-V

Pathe

(White,

Weld

Co.

Podesta

Cruttenden,

and

•

(G.

Everett

Parks

Co.,

Montreal Metropolitan Corp.*.
(First Boston Corp.)

Southern California
(Bids

Edison

(R.

;

(Bear,

Stearns & Co.

200,000 shares

(Reynolds & Co., Inc.)

(Halsey,
:/
';'

:•

Stuart

(Ira

Universal Transistor
(Michael

Kletz

.Common

Amos Treat & Co.,

and

Inc.),

$300,000

January

(Brand, Grumet

Kosher

Siegel,

Inc,

Foods,

and

S Florida
Vhite, Weld &

Inc.)

Co.)

Natural Gas
Co.

Pierce,

350,000

Lee

Co.———Debentures

Carrison, Wulbern,

Higginson

&
$5,500,000

Redpath;

Corp.)

Inc.) $837,200

Allen

Co.

American Gypsum Co._
(Jack M.

Bass

Co.

Quinn & Co.)

American Gvpsum Co.—'——
(Jack M. Bass Ac Co.

and

;

$1,200,000

—-Common

Quinn Si Co.) 480,000

Digitized Vickers-Crow Mines, Inc.——
for FRASER
(Sakler

and

Notes

and

Co.,

Inc.)

;

......Common

record

and Sutro Bros. Si Co.)

invited)

Co._

.Bonds

$25,000,000

Bonds

(Thursday)
(Bids

be invited)

Bonds
$19,500,000

June

(Thursday)
to

be invited)

Bonds

$40,000,000

(Thursday)
(Bids

be invited)

$50,000,000

(Bids

invited)

$5,000,000

November 3

(Thursday)

(Bids

to be

capital and

Co., Inc.
(letter cf notification) 60,000 shares-of capital
(par 25 cents). Price—$5 per share. Proceeds—

general corporate

Crest

Office — 33 W. 42nd
Underwriter—Charles Plohn &

purposes.

Street, New York, N. Y.

Offering—Expected in January,

Investment Trust,

Inc.

1,172 shares of type A and 7,400 shares of

type B common stock, together with $42,500 of 6% de-

Bonds

—

invited)

credited to stated

Nov. 30 filed

Georgia Power Co

Corrosion Control
Dec.

Co., New York, N. Y.

Bonds

Gulf Power Co

Co.

Proceeds—To

share.

For

—Preferred

Gulf Power Co.—

Unsubscribed shares may

paid-in surplus. Office—12 North Galena Avenue, Freeport, 111. Underwriter—None.

stock

July 7

———Common
$300,000

Generating Co.—

Southern Electric

of
rate of four new shares

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

$4,000,000

Power Co.—

Alabama

at the

1959,

offered

Cornbelt Life
—

invited)

15,

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.

Light Co.——

Sept.

each 10 shares then held.

for

February 1 (Monday)
Allegheny Airlines, Inc..—-——-Debentures
Parker

Underwriter—None.

Insurance

Co., Freeport, III.
Sept. 29 filed 200,000 shares of common stock to
offered for
subscription by common stockholders

(Thursday)

(Bids

(Auchincloss,

Hill, Ithaca, N. Y.

Cornbelt

(Thursday)

Power

April 17

•

—-Common
Stearns

EST)- $20,000,000

400,000

and

—Terrace

Inc.'—-Common

Arnold Malkan & Co..

Co.
(Bear.

(Bids

March

$1,400,000

Pantasote

Dayton Power &

(Bids

■

rities

;

Mississippi

(Friday)

Hebrew National

a.m.

prospective members of the Co¬
Prices—For the debentures, 100% of principal

including future redemptions of outstanding secu¬
property additions and improvements. Office

poses,

^Debentures

Bear, Stearns & Co.

February 25

?•

Corp.---.—Common

Products

Co.,- Inc.

600,000 shares '

Cq.)

& Co.;

Bonds

—

$50,000,000

(Wednesday)

(Bids

(Allen

—

Haupt

invited)

Phillips Developments, Inc..

January 28 (Thursday)
Levitt & Sons,-Inc

Light Co.—

and

Kuhn, Loeb & Co.
$15,000,000

operative.

amount; for the preferred, $100 per share; for the com¬
mon, $5 per share. Proceeds—For general corporate pur¬

—

(Bids

Duquesne

fered only to present or

Power

February 24

Debentures

Inc.)

Co.,

••

125,000 shares

of)___.

Co..< Inc.;

' r

•

& Redpath)

(Province

V. W. C.'Pitfield

;
■

Duke

Common

(Auchincloss, Parker

New Brunswick

:•

Common

and H. M. Byllesby & Co., Inc.)

(Thursday)

February 18

Common

(G. B.) Macke Corp..

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¬

(Wednesday)

350,000

of New York.

100,000 shares

Inc.)

Corp.——

Engines

Clinton
'

January 27 (Wednesday)
Dentists' Supply Co. of New York---

Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose & Feuer, all

........Common

(Monday);

February

—.Bonds

$30,000,000

invited)

& Co.,

Dickson

Common

$1,300,000

Inc.)

Aircraft Dynamics International Corp
Common
C
..(Aviation Investors of America, Inc.) $300,000

—Debentures

Co.—

Securities,

and in the Chicago areas; and $50,000 to further
development of delay lines, iilters and microwave de¬
vices.
The balance of the proceeds will be added to
working capital. Office — 10 Stepar Place, Huntington

Co.

$165,000

—

February 15

$30,000,000

Feuer)

.Common

$399,000

Inc.)

Rose Si

Inc

(2/10)

Coast

David Finkle

Inc.;

Co.,

Engineering, Inc.;

Soroban

Co.)

120,000

Gartman,

News,

(Hilton

Automatic Retailers of America, Inc.-____Common

(B. M.) Harrison Electrosonics, Inc.-.

and

Co., Inc.

$50,000 to replace working capital expended for equip¬
ment and machinery; $50,000 to increase sales efforts,
including the organization of sales offices on the West

———Common

Co., Inc

Blauner

Electronics

filed

165,000 shares of common stock (par $3).
Price—At par. Proceeds—To repay $80,000 of bank loans;

(Wednesday)

February 10

Co.i

200.000

Dec.

•,

$12,000,000

be invited)

(Tuesday)

——.Debentures

Service Co._

Electric

January 26

210,000

Inc.)

Underwriter—William David & Co., Inc., N. Y.

Control

Telephone Co.——.Common

California Water &

Inc.)

& Co.,

Wasserman

Common
shares

164,689

Inc.)

Co.,

(Tuesday)

February 9

Corp.—--Debentures

Truman,

$25,000,000

Wts.

50.000 warrants

Manufacturing

(Amos Treat

-V

—

Peabody

(Kidder,

Micronaire Electro Medical Products Corp

invited)

Bureau Enterprises, Inc.
147,000 shares of class A common stock, of
which 104,000 are to be offered for public sale for the
account of the issuing company and 43,000 shares, rep¬
resenting outstanding stock, by the present holders
thereof. Price—$3 per share. Proceeds—$100,000 to be
allocated to translating and publishing additional new
books; $25,000 to acquire and equip additional needed
space for the company's operations; and the balance to
acquire additional machinery and equipment for coldtype composition.
Office — 227-239 West 17th Street,

—Debentures

Co.—

Gas

Row, Peterson & Co

200.000

Corp.)

Com.

Bond

Consultants

(Monday)

Consolidated Natural

$20,000,000

Co.)

Micronaire Electro Medical Products Corp...
(General.

$600,000

240,000

Dec. 29 filed

—_—Common

Webster Securities Corp.)

Inc.—-Common
shares

Co.; Inc. ) $500,000

(par

pay

Co., Milwaukee, Wis, and Indianapolis
Corp., Indianapolis, Ind.

Corp. of America--Com.

Electric Co

Tampa

February 8

/Lehman

450,000

Inc.)

Co.

$10).
Price—$12 per share. Pro¬
part bank loans.
Office — 327 S.
La Salle Street, Chicago, 111. Underwriters—Milwaukee

Inc.—-Debens.

Association,

Co.,

(Plymouth Securities Corp.)

250,000 shares

Corp.)

Studios, Inc.———

iArnold

stock

ceeds— To

$4,500,000

Inc.)

Hi-Press Air Conditioning

Common

Co. of New York—

(Lee Higginson

Co.,

Finger Lakes Racing

(Monday).

Citizens Casualty

Water

(letter of notification) 24,900 shares of class A

common

$300,000

Corp.)

(Wednesday)

February 3

Common

Inc

Tenney Engineering, Inc.___

Common

Securities

(Milton D. Blauner & Co., Inc.) 25,000 shares

January

Dec.

Florida West Coast Corp
(Midtown

(Friday)

January

February 2

CALENDAR

ISSUE

NEW

$12,000,000

Continued

page

120

The Commercial and Financial Chronicle

(372)

Continued from page

•

119

Ekco

Products

Dec. 4 filed 21,609

benture notes. Price—SI 10 per
be

will

offered

St., Baltimore, Md.

sion. Office—41 W. Preston

Crown
Nov.

due Jan.

Industries Corp.

Aluminum

debentures,
1977, and 180.000 shares of common stock,

15.

17-year,

$1,500,000

filed

share of stocky the notes
Proceeds—For expan¬

S500.

units

units of S100 of debentures and 12 shares

to be offered in

Price—$160 per unit: and S6.50 per share for
100.000 shares included in the registration

of stock.

additional

and

statement

eral

corporate

Proceeds—For

above.

covered

not

install¬

including 1.200,000 foi

purposes,

gen¬

ing and equipping a hot rolling mill. Office—202 Rey¬
nolds Arcade
Bldg.„ Rochester, N. Y.
Underwriter—
Adams &

Offering—Expected m

Peck, New York City.

•

Co.

stock, 6% series, and 54,064 shares of common stock, to

bearing

be offered

share of

exchange for the common stock of Wash¬
ington Steel Products, Inc., on the basis of one-halt share
of common and one-fifth of a share of preferred tor each
common share of Washington Steel.
Office—1949 North
Cicero Avenue, Chicago, 111. Note—Ekco stockholders
approved the issue on Jan. 18.
ESA

Mutual

share.
Fla.

Crusader Oil & Gas Corp., Pass

Christian, Miss,

fered

bv the underwriter on a "best efforts
Price—To be supplied by amendment.. Proeeedsr-

publiclv

basis.

of notes and for working capital.
writer—To be supplied by amendment.

For repayment

Daryl Industries. Inc.
15 filed 225.000

Dec.

of common

ing
N.

130,000 shares are to be offered for the account of the
issuing comp&nv and 95.000 shares representing outstand¬
ing stock, are to be offered fcr the account of the
present holders thereof. Price—$5 per share. Proceeds—
For general corporate purposes. Offiee—7240 N. E. 4th
Street, Miami, Ela.
Underwriter — Clayton Securities
Corp., Boston. Mass.
Data Control Systems,

Dec.

filed

122.500

cents), of which 75.000
are

are to

stock

common

(par

be publicly offered. 10.000

pursuant to the issuers Employees'*
Stock Option Plan and 37,500. now- outstanding, may be
offered from time to time by

the present holders thereof,

price—To be supplied by amendment. Proceeds—To re¬
duce indebtedness. Office—39 Rose St., Danbury, Conn.

Underwriter—C.

Unterberg, Tow-bin Co., New York

City.

Washington, D.

Davega Stores Corp.
88.000

about

common

to present stockholders at
share for each three shares held.

the

stock
of

rate

Price

—

one

per

of¬
new

share.

For expansion and other corporate
purposes.
Office—215 4th Ave., New Y'ork City,
Underwriter—
—

None.

„

Deluxe

•

;

■

•

Aluminum

Products,

Inc.

Oct. 15 filed S330.000 of convertible debentures, and 70,000 shares of common stock. Price—For the
debentures,

100%

of principal amount; for the stock, So per share.
10.000 shares of the common stock, to

Proceeds—From

the present holders thereof: from

ing, to the

working capital.
•

company

Dentists'

used

the rest of

for

the offer¬

expansion

and

Office—6810 S. W. 81st St., Miami, Fla.

Supply Co. of N. Y.

(1/27)

selling stockholders. Office—York, Pa.
Reynolds & Co., Inc.. New- Y"ork City.

Underwriter—

Diversified Communities, Inc.
Sept. 25 filed 367,200 shares of common stock (par SI).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes. Inc.. Browntown Water Co. and
&

Goldman

Builders, Inc., with the balance to
working capital. Offiee—29A Savre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
be used

Underwriter—Lee Higginson Corp., New York.
Don Mott

Associates,

Inc.

Oct. 27 filed 161,750 shares of class B.
non-voting, com¬
mon
stock (par So). Price—S10 per share. Proceeds—
For general

including payment on
building and the financing of loans. Office—Orlando,
Fla. Underwriter—Leon H. Sullivan,
Inc., Philadelphia,
Pa., on a "best efforts" basis. Offering—Expected shortly.
corporate

purposes,

Duke

Power Co.

(2 18}

Jan. 6 filed $50,000,000

bonds,

series

due

Jan.

Proceeds

refunding mortgage
—

For

construction.

Office—Charlotte, N. C. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey. Stu¬
art & Co J Inc.; First Boston
Corp.: Morgan Stanley &
Co.; Stone & Webster Securities Corp.
Dworman Corp.
15 filed 300,000

shares of common stock.
Price—
per share.
Proceeds—For general corporate
pur¬
poses.
Office—400 Park Avenue. Newr York
City. Un¬
derwriter—Charles Plohn & Co.. New York
City.

$10

Eastern Gas & Water Investment Co.
14 (letter of
notification) 2.000 shares of series
6%% cumulative convertible preferred stock.
,

Dec.

convertible

2y2 shares of
—At

Preferred

par

sidiaries.

E. H.

per

common

stock

basis

for each share of
preferred. Price

share).

Office —1204

delphia 2, Pa.
2. Pa.

into

common

($25

Proceeds—For loans to sub¬
Broad-Locust Building. Phila¬

Underwriter—Bioren & Co., Philadelphia

^^u^1^1^160'000

shares of capital stock (par 10c),
100,000 shares are to be
publicly offered. Price
$2.50 per share. Proceeds
To provide funds
for the
purchase of vending machines
which will be used to
distribute automobile
breakdown
—

and

insurance policies

highways in

the amount of $25

breakdown insurance for the
purchase price of
cents, and for a public
relations and publicity
pro-

Underwriter—John

east

coast

and

will be used for

indebtedness

equip
one

two

new?

the

west

inventory, working

filed

300,000

Life

Insurance

shares of

stock

common

ing is to be made through three promoters and officers
receive a selling commission of $2
per share.

Finger Lakes
28

class

Building, Troy, New'York.
& Co.,
Inc., New York.

Boland

capital.

filed

stock

•

General

Racing

$4,500,000

Association,
of

20-year

Inc.

Jan.

due 1980 and 450,000 shares of
(par $5) to be offered in units, each con¬

filed

common stocky Price—$4
Proceeds—To enable issuer to enter synthetic
manufacturing
business.Office—640 " W. / 134th
Street, New York City. Underwriters—Brand, Grumet

Seigel,

"best

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 $10,698

unit. Proceeds—To purchase
land in Arizona. Office—1802 North
Central
per

nix, Ariz. Underwriter—O Malley

Ave., Phoe¬

Securities Co.. Phoe¬

Statement effective Oct. 9.
West Coast Corp.
of

Inc.,

efforts"

and

Arnold Malkan & Co., Inc., on
Offering—Expected in February,

basis.

Magic, Inc.
(letter of notification) $51,000 of six-year 6r2%
debentures to be offered in denominations

$51 each.
Debentures are convertible into common
stock at $1.50 per share. Also, 68,000 shares of
common
stock (par 10 cents) to be offered in
units of one $51
debenture and 68 shares of common stock.

Price—Of

debentures, at

par; of stock, $102 per unit.
Proceeds—
off current accounts payable; purchase of raw
materials
and
for
expansion.
Office
2730
Ludelle
Street, Fort Worth, Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y.
V
v

pay

■

Glastron
11

Boat Co.

filed

$600,000 of 6% sinking fund debentures,
15, 1966, and 60.000 shares of common stock, to

be offered

in pnits

consisting of S1C0 of debentures and
stock. Price—$100
per unit.
Pro¬
facilities, including land and
production equipment, and debt reduction.
Office—920
Justin Lane, Austin, Texas.
Underwriters—Hardy & Co,,
New York City, and
Underwood, Neuhaus & Co., Hous¬
10

common

ceeds—For additional plant

ton.

Texas.

Gold

June

Medal

Packing Corp.

18 filed

572,500 shares of common stock (par one
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
cent), and

underwriter; and the remaining 50,000
chasable upon exercise of the
warrants.

(2 2)

300,000 shares of com¬
mon stock
(par 1 cent). Price—?1 per share. Proceeds
—For land
acquisition. Office—30 E. 60th
Street, New
York City.
Underwriter
Midtown Securities
Corp.,
same address.

shrre.

• Future, Inc.

•

notification)

—

Jan.

(letter of notification)
93 shares of capital
(treasuiy stock) (par $50) to be offered for sub¬

stock

scription by five stockholders limited to
per month.
Price—$62 per share.

share each

one

Proceeds—For work¬
ing capital. Address—Box 828,
Fairbanks, Alaska. Un¬
derwriter—None.
,

Gallahue
Dec.

Naples Corp.
filed 110,000 shares of class A
stock, of which

7o,000 shares

are

be offered fc* the
account

of D

Gallahue, the issuer's President, and 35,000
shares
to
be

R.
are

offered for the
company itself. 55.000 of Galla¬
shares will be delivered in
escrow, to be thus held
until Dec.
31, 1961, for purchase of holders of
transfer¬
s

able warrants to be
issued
the other 55.000

by the company to buyers of
shares at the
offering price. Price
supplied bv amendment. - Proceeds
To reduce
indebtedness.
Office—542 North Meridian
Street. In¬
dianapolis, Ind.
Underwriter—Raffensperger, Hughes &

-To

—

Gas

Hills

3 990.161

Uranium Co.
6,511.762 shares of

are

offered

common

for

stock, of which

sale.

The
remaining 2 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

?i'

?Ln^rau
ties and

tain

are owned

o£ one

500,000 shaies

are

new share for each 20 shares held:
exchange for proper¬

to be offered in

services; 326,883 shares

holders

the

are

company's

notes; and 2,748.278 shares
ol

are

to be offered

convertible

to cer¬

promissory

to be offered for the

ac¬

selling stockholders, of which number
655,500

.j";?8. ^present holdings of
ai filiated
persons.

management
Price—To be supplied

officials

and

by amendment.
Proceeds—For general
corporate purposes,
including the
repayment of indebtedness.
Office
604
South
18th

Underwriter—None.
Associates, Inc.

Nov. 13 (letter of
notification) 100,000 shares of
common
(no par). Price—S3 per share.
Proceeds—To

stock

an#n<Jinig

pay

obJ1SaBon^and for working capital. Office
E. Colorado
St., Glendale, Calif. UnderwriterCalifornia Investors, Los
Angeles, Calif.
—loOO

are

pur¬

Price—$1.25

per

Proceeds—For repayment of
debt; purchase of
equipment and facilities and other
general corporate
purposes. Office—614
Broad St., Utica, N. Y. Under¬

writer—Mortimer B. Burnside

& Co., New York.
Formerly Eastern Packing Corp.
Medal
Studios, Inc. (1/25)

Change

Name

—

Gold

Sept. 18 filed 500,000 shares of common
stock (par 1C
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
E. 175th
Street, New York. N. Y.
Malkan & Co.,,
Inc., New York.
any

day.

buildings.. Office—807
.Underwriter—Arnold
Offering
v

• Graves-Davis
Drilling Co.
Jan. 11 (letter of
notification)
stock.

Price—At par ($1

penses

—

Expected

;

.250,000 shares of

common

Green

per

share).

Proceeds—For

ex¬

drilling for oil properties. Office—407 Joshua
Building, Seattle, Wash. Underwriter—None.

Great

American

Publications,

Inc.

Dec. 23 filed
235,000 shares of common
stock, of which
the company
proposes to offer 218,000 shares for
sale
initially to stockholders (other than

officers; directors

and principal
sotckholders),, Shares not rpurchased 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

efforts

its best

shares.

the

The

tered for

distribution

remaining

the

12,500

the

remaining 188.000
shares are being regis¬

of Mortimer B. Burnside &
Co.,
of its release of
certain rights under

account

Inc., in consideration

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., Inc., New York. Note—A
year-end 4%
stock

dividend

has

been

declared

holders of record Jan. 8.
Great

Lakes

—

Street, Laramie, Wyo.
Gence &

convertible

due Jan.

(letter

Corp.
175,000 shares of

foam

Jan.

„A:.

Foam

—

(2 3)

subordinated

and 10 shares of class A
Price—$155 per unit. Proceeds—For
purchase of
land and the cost of construction of
racing plant as well
as other organizational and
miscellaneous expenses. Of¬
fice—142 Pierrepont
Street, Brooklyn. N. Y. Underwriter
—Stroud & Co., Inc., New York and
Philadelphia.
-

F.orida

Road, Monmouth
Junction,
Co., Philadelphia, Pa.

per share.

sisting of $100 of debentures

•

writer—Caribbean Securities Co.. Inc.. Avenida Condado
609, Santurce, Puerto Rico. The statement has been with¬
drawn, and the filing of a new* one is said by the under¬

stock.

Dec.

Office—Ridge

Underwriter—Drexel

Dee. 30

Co.

who will
•

Glass

Reserve

(par SI).
per share.
Proceeds—For capital and sur¬
plus of the company, which has not as yet done any life
insurance business but expects to sell all forms
of it.
Office—West Memphis, Ark.
Underwriter—The offer¬

count

of such

bank

acquire and

Price—S10

P. Corp.

thruways, parkways

eliminate

Co., Inc., Indianapolis.

Jan.

stock

the

The balance

Inc.

General Finance Corp.
.?>.
Sept. 11 filed 150,000 shares of common stssk. Price—$3
per share. Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment
and supplies.
Office — Santurce, Puerto Rico.* Under¬

Inc., New York City.

hue

of first and

1990.

one

and

capital, and general corporate purposes. Office—Moun¬
tainside, N. J. Underwriter—Milton D. Blauner & Co.,?

nix.

Dec. 22 filed 200,000 shares of outstanding common stock.
Price—To be supplied by amendment. Proceeds — To

Cantor

Proceeds—To

$100,000,

branches,
coast.

Devices,

writer to be imminent.

Price—S4

sinking fund debentures

fered

Proceeds

Purchaser, Inc.
filed 170,000 shares of class A stock.

share.

per
of

Dec.

Nov. 25 filed

stock.

Federated

^Federated

offered

Inc.

shares of class A common

200,000

Office—275 East 10th Avenue, Hialeah,
Plohn & Co., of New
York
"best efforts" basis. Offering—Expected in

Underwriter—Charles

60,888 shares of dommon 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. Proceeds—For land, construc¬
tion thereon, new equipment, debt
reduction, and work¬

share. Proceeds—For purchase of various
properties, for development and subdivision thereof, and '
to meet operating expenses, salaries and other costs, but
principally for the purchase and development of large
tracts of land.
Office—-3636-16th Street, N. W., Wash-/
ington, D. C. Underwriter—Consolidated Securities Co.

Jan.

the purchaser to buy one
until Jan. 30, 1961. Price—$4
per
indebtedness, with the balance for

Jan. 6 filed

Price—$5 per

/
stock, of which

Under¬

entitling

Inc.

filed

Inc.

at $4

reduce

General

Fund, inc.

shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc., Washington,
D. C.
Office—1028 Connecticut Avenue, N. W., Wash¬
ington, D. C.
■.
'

Dec.

City, on a
February.

January.

May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-lor-one basis to
stockholders. The remaining 858.387 shares will be of¬

common

Fabricators,

shares|0f common stock, each share

working capital.

June 29 filed 2,000,000

Estates

75,000

warrant

Thursday, January 21, 1960

Aluminum

General

Dec. 15 filed

shares of second cumulative preferred

payable

Jan.

Bowling Corp.

Aug. 31 filed 120,000 shares of common stock
(par $1)«
Price—To be supplied
by amendment.
Proceeds—For
general corporate purposes,

including the development
of
bowling lanes, bars, and restaurants on various
Michigan properties. Office—6336 Woodward
Ave., De¬
troit, Mich.

Chicago, 111.
1960.

Underwriter—Straus,
Offering—Expected

Blosser & McDowell,

sometime after Jan. 1,

peVrliie

. .

The Commercial

and Financial Chronicle

Ltd.,

1, 1975, and 575,000 shares of common

Jan.

Howe Plastics & Chemical

$1), to be offered in units of $20 principal
debenture and one share of common. Price
ner unit.
Proceeds—For debt reduction and the
'•life of a recreation park. Office—3417 Gillespie
Srpet Dallas 19, Texas. Underwriter—Glore, Forgan &
fDar

ec.

(letter of notification) 200,000 shares of common
50 cents). Price—$1.50 per share. Proceeds—
expenses for exploring for oil and gas. Office—212

Price

(par

♦nr'k

rate

and

South, Nashville, Tenn. Underwriter—Cres¬

Qivth Ave.,

•

including then reduction of indebtedness. Under¬

of America, Inc.
Feb. 4 filed 250,000 shares of common stock (par 10
cents).
Price—At market, r Proceeds—For investment
Office — 1825 Connecticut ^Avenue, Washington, D. C
Investment
Advisor — Investment Advisory
Service
Washington. D, C
Underwriter—Investment Managp
ment Associates, Inc., Washington, D. C. The statement
became effective July 24.
;
Growth Fund

the

preparation of the concentrate

enfranchising of bottlers, the local and national
and

advertising

its

V'-Vy-

will be named
•

ferred

and

new

equipment.

plant

Office—1700

Underwrite r—ISf one.

International

$50,000 of 6% 10-year
convertible subordinated debentures series A to be of¬
each.

Debentures

are

five

$500

Price—At par. Proceeds

shares for each $500 debenture.

working capital. Underwriter—Eastern Investment

—For

Corp., Manchester, N: H.
(B.

Broadway, New York City.
Harundale

West

Saratoga

Harundale

Mall,

•Hebrew

National

Kosher

Foods,

Inc.

Dec. 11 filed
350,000 shares of common
175,000 shares are to be offered^ for the

•

Hermetite Corp.
8

filed

136,000

(1/29)

stock, of which

Lee

general

Boston,
-mlton

shares of

common

stock, of which

per share.
Proceeds—For
Office—702 Beacon Street,
Underwriters—M. L. Lee & Co., Inc.;

Co.

corporate

Mass.
D.

Price—$5

purposes.

Blauner

ottering—Expected

person

Kesselman & Co.,
"all or nothing" basis,

Co., Inc.; and

of New York City,

riff'

on an
March.

•

npGc'
I

Denver, Colo. Offering—Expected shortly.

Hi-Press

pvi

ontK

Conditioning Corp. of America

,(2/3)
iDed 200,000 shares
e

■„

Co-» Ltd.

(1/25)

$20,000,000 of convertible subordinated

de-

jn'lll'es' due Jan. 15, 1975, and convertible into como\vnn'S. °u k of Trans-Canada Pipe Lines Ltd. (about 20%be S
Home 0il) beginning Aug. 1, 1960. Price—To
Dor-.^
*)y amendment. Proceeds—For general corPhiIah Du^oses, including
reduction of indebtedness,
writers—Lehman

Brothers, New York

stock. Price—90

cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬

also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can
Underwriter
Laird & Rumball, Regina, Sask., Can
of other properties;
—

Island
Nov. 23

Industries,

Inc.

(letter of 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.

Kavanagh-Smith & Co.
Dec. 30 filed 145,000 shares of common stock, of
115,000 shares are to be offered for
issuing company and 30,000 shares,

which
the account of the

representing out¬
standing stock, are to be offered for the accounts of the
present holders thereof. Prices—For 20,000 shares, to be
initially offered to company personnel, $4.50 per share;
for the balance, $5 per share. Proceeds—For the retire¬
ment of $166,850 of bank indebtedness, acquisition and
development of land, construction of houses for sale, and
general corporate purposes. Office—114 North Greene
Street, Greensboro, N. C.
Underwriter—United Secu¬
Greensboro.

Lafayette Radio Electronics Corp.
Dec. 4 filed 225,000 shares of common stock
Price—$5 per share.
Proceeds—For general

Levitt &

Sons, Inc., Levittown,

filed

600,000

Price—To

stock.

if Lewis Business Forms, Inc.
Jan. 15 filed 110,000 shares of common stock, of which

100,000 shares are to be offered for the account of the*
issuing company and 10,000 shares, representing outstanding stock, are to be offered for the account of

Lewis, President. Price—To be supplied by amend¬
Proceeds
To reduce bank loans, redeem 190
—

the

outstanding

the

continue

preferred, and

company's modernization and expansion program. Office
—2432 Swan Street,
Jacksonville, Fla. Underwriter—
C. E.
•

Unterberg, Towbin Co., New York City.

Liquid Veneer Corp.

Nov. 16

stock

(letter of notification) 150,000 shares of common
Price — $2 per share. Proceeds:—*

(par 10 cents).

($1 par).

corporate

improvements,

purposes including inventory, leasehold
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¬

City, will

stock
(par 10 cents). Price—$3 per 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.
Nov.

filed

Lancer
Nov. 27

stock

Industries, Inc.

common

-Y

$.70 convertible preferred
Price—$10 per share. Proceeds—For

filed 200,000 shares of

(par

general

135,000 shares of class A

$10).

corporate purposes.

Office—22 Jericho Turn¬

Office

—

211

Ellicott

Macke Corp., Washington,

(G. B.)

ment.

the

For

offered

D. C.

employees

the

share will be $9.50 in cash or $9.75 if the
purchase price is paid through wage deductions. Pro¬
ceeds—For general corporate purposes.
Underwriter—

price

per

Auchincloss, Parker & Redpath, Washington, D. C.
Magnuson Properties, Inc.
29 filed 500,000 shares of class A common stock
on Aug. 24 to 150,000 shares of 6^% cumu¬
lative convertible preferred stock, par $10), and 150,OOQ

June

(amended

shares of class

common

stock,

par

$1, with common

stock purchase warrants. Each share of class A common
stock carries one warrant entitling the registered holder
to

purchase

for
be

common stock at an initial
share. Price—For preferred, at par; and
$10.10 per share. Proceeds—$291,099 is to

share of such

one

of $11
class A,

price

per

expended during the period ending Aug. 31, 1960 for
and releases; $465,000 will be paid
notes acquired by members'of the Magnuson family
the transfers of subsidiaries and properties to the

mortgage payments
on

$106,000 will be used to close certain options
purchase contracts covering lands in the MelbourneCape Canaveral area; the balance will be added to the
general funds of the company and used for general
company;

and

corporate
Fla.
•

purposes.

Office—20

3rd

Underwriter—Blair & Co. Inc., New

Ave.,

Miami,

York.

Marine

Fiber-Glass & Plastics, Inc.
(letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—$1.50 per share. Proceeds
—For new plant expenditures, research and develop¬
Nov. 30

and

for

working

Street, Seattle 2, Wash.

New

Inc.,

York,

capital.
Office — 2901 Blakely
Underwriter — Best Securities,

Y., is

longer underwriting

the
;

issue.

Mayfair Markets
Oct. 1 filed 301,177 shares of common stock (par

$1), be¬

the basis of one
share for each five! shares held Nov. 13. Rights are

ing offered to holders of such stock
scheduled

Corp., Sanford, Me.

purposes.

(1/27)
Dec. 29 filed 125,000 shares of class A common stock, of
which 105,000 shares are to be publicly offered and
20,000 shares offered to employees. Price—For the pub¬
licly offered shares the price will be supplied by amend¬
•

new

Lake Aircraft

corporate

general

ment

•

ary.

of common stock. Price—$3
/e' Proceeds—For working capital. Office—405
Ave-» New York City. Underwriter—PlymSecurities Corp., New York City.

LH?r, 0il
filed
vc.

Air

Ltd.

April 24 filed 225,000 shares of common

rities Co.,

Bros. Truck Co., Inc.

mn? ♦11 (letter of notification) 285,000 shares of com
nnJ1
*>riCe—At par ($1 per share). Proceeds—T«
fnr
existinS liabilities; for additional equipment; an'
Rnv^co
^ capital. - Office—East Tenth Street, P. C
?
kGreat Bend* Kan. Underwriter—Birkenmay*
°-,

Office—New York City.

Oil & Exploration,

Irando

are to be publicly offered and 11,000 have been
mready acquired at $1 per share by the President of
■M.

Plans With Insurance.

account of the

'000

^ Investors Planning Corp. of America
Jan. 13 (by amendment) an additional $40,000,000 of Systematic
Investment Plans and
Systematic Investment

quisition

issuing company and 175,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof.
Price—$4 per share. Proceeds
--For general
corporate purposes.
Office — 178 South
Elliott
Place, Brooklyn, N. Y.
Underwriters — Brand,
Grumet & Seigel,
Inc., and Arnold Malkan & Co., Inc.,
Poth cf New York
City, on a "best efforts" basis.
Jan

Washington, D. C., and Swesnick & Blum

Corp.

None.

both
Securities

writers—Hodgdon & Co. and Investors Service, Inc.,
of

regional shopping
Arundel County, Maryland.
Office—14
Street, Baltimore, Md.
Underwriter—

Anne

•;

Street, Buffalo, N. Y. Underwriter—B. D. McCormack
Securities Corp., New York, N. Y.
Offering—Expected
any day.
;
■
'• \ ■ • '7

St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬

partnership interests in Asso¬
ciates,. Price—$10,000 per unit. Proceeds—To acquire
center

For

14 filed 500 Beneficial Trust Certificates in the
Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H

Jan. 7 filed $1,190,000 of
one-half interest in

N. J. (1/28-2/4)
outstanding shares of its capital
supplied by amendment; it will
reportedly be about $10 per share. Proceeds—To Wil¬
liam J. Levitt, President (selling stockholder).
Under¬
writer—Ira Haupt & Co., New York.
•

Dec.

ment.

29, 1958, filed $5,000,000 of notes (series

Corp., Staten Island, N. Y.

God; with which the company is merging. Price—To
supplied by amendment." Proceeds—For working cap¬
ital. Office—1047 Broadway, Anderson, Indiana. Under¬
writer—To be supplied by amendment.

M. G.

D. C.

Underwriter—Prudential Se¬

Englishtown, N. J.

Aug.

Associates

Mall

Bank, Washington,

share. Proceeds—
Office — Woodward

per

purposes.

Trust.

Electronics

Harrison

M.)

Street,

basis.

Investment Trust for the Federal Bar Bldg.

Inc. (1/26)
Sept. 25 filed 133,000 shares of common stock (no par).
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
the provision of funds to assist the company's expansion
into the civilian market: Office — Newton Highlands,
Mass.
Underwriter—G. Everett Parks & Co., Inc., 52
•

Washington

Price—$1.50

corporate

Office—West-

B, $500,000,
2-year, 3% per unit; series C, $1,000,000 4-year 4% per
unit; and series D, $3,500,000 6-year, 5% per unit). Price
—100%
of principal amount.
Proceeds—For working
capital.
Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
Dec.

Inc.
(letter of notification)
Co.,

915

Corp.,

$500.

Aspirin Corporation
shares of common stock. ; Price—S3
Proceeds—For general corporate purposes.
Broadway, Denver, Colo.
Underwriter—

Securities

Laymen Life Insurance Co.
Nov. 30 filed 175,000 shares of common stock (par $1), of
which 35,000 shares are to be offered by company and
140,000 shares are to be offered by Laymen of the Church

International

share.

offered at

•-./

Dec. 7 filed 600,000

Wilmington, Del., on a "best efforts"

denominations

general

Road,

bury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass. Offering—Expected in February.

per

are

Co., Inc.
(letter of notification) 133,000 shares of comraoi

curities

85,000 shares of common stock (par 5c).
share. Proceeds — For general corporate
including the redemption of outstanding pre¬

stock

notes

Lawn Electronics
Nov. 25

'■■y.-.', /:

Speculative

Price—The

Proceeds — For
working capital. Address—c/o Paul G. Larson, Riverview Drive, Little Falls, Minn.
Underwriter—Fulton,
Reid & Co., Inc., Cleveland, Ohio.

per

purposes,

at $10 per

principal amount of notes held

share.

value

face

•

by amendment.

stock

warrants

$1,000

common

filed

Price—$4

convertible into class B common stock at the rate of

each

$300,000 of 5-year notes wth common

attached, said
warrants granting;
the right to buy:40 shares of the common for

holder

Integrand Corp.

Oct.

Gjuardian Loan Co., Inc. and Tilden Commer¬
AliianceVJjfa., subsidiaries of the issuing company.

fered

8 filed

purchase

already existing ones. Office—10202 North 19th Ave.,
Phoenix, Ariz.
Underwriter—The underwriters, if any,

cial

Inc.

• Larson Boat Works,
Jan.

Co.; to furnish operating capital for subsidi¬
to establish new subsidiaries or branches of

aries; and

curities in

For

Insurance

•

—

Nov.

(no par).

stock (par one cent).

Underwriter—None,

Inland Western Loan & Finance
Corp.
;
Sept. 24 filed $1,000,000 of 6% capital debentures. "Price
—To be
supplied by amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life

100,000 shares of cumulative preferred
stock (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.
Proceeds
For general corporate purposes.
Office —
45-14 Queens Boulevard, Long Island City, N. Y.
Note:
The securities are to be offered first to holders of se¬

Harmar

pro¬

beverages,

stock

mon

Wash.

filed

purposes and

common stock
(par $1)
Proceeds—To further the corpo¬

150,000 shares of com¬
Price—$2 per share. Proceeds—To
cover the cost of new 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.
(letter of notification)

Dec.

Colo.

Guaranty Insurance Corp., below.

Guardian Tilden Corp.
Dec.

share.

Electrometer Co.

Landsverk

Inc.

600,000 shares of

per

pike, Mineola, L. I., N. Y. Underwriter—Charles Plohn
& Co., New York City.
Offering—Expected in January.

^Industrial Processes, Inc.
Jan. 7 (letter of
notification) 22,800 shares of common
stock.
Price—At par ($10 per share).
Proceeds—For
working capital. Office — 527 Finch Bldg., Aberdeen,

Guaranty Insurance Agency, Inc.
See, Mortgage

Companies.

notification)

and where
necessary to make loans to such bottlers, etc. Office—
-704 Equitable Bldg.,
Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos
C. Sudler & Co., both of Denver

Securities Co., Inc.. Bowling Green, Ky.
Greer Hydraulics,
Inc.
Nov 27 filed 235,139 additional shares of common stock
c50 par) being offered for subscription by holders of
the outstanding common on the basis of four additional
shares for each, five shares held Jan. 14; rights expire
Jan 29. Price — $4 per share. Office — Jamaica, L, I.,
y y. Proceeds—To relocate company in Los Angeles,
with the balance to be used for general corporate pur-

writer—Burnham &#Co., New York City.

$2.50

motion

cent

noses

I C Inc.

June 29 filed

(letter

stock

mon

New'"York City. Offering—Expected in January.
piver Production Corp.

& Co.

100,000 shares of com¬
(par one cent). Price—$1 per share. Proceeds
—h or general
corporate purposes.
Office—125 E. 50th
Street, New York, N. Y. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth Avenue, New York, N. Y.

tint

121

(373)

the American group and Wood, Gundy
Toronto, the Canadian one.

manage

$11,500,000 of cumulative income deben-

filed

Southwest Corp.

/v#»at

Number 5918

191

Volume

expire in February. Price—$10 per share.

Proceeds—For general corporate purposes,

including ex¬

pansion and working capital. Office—4383 Bandini Blvd.,
Los

Angeles, Calif. Underwriter—None.

it Megadyne Electronics, Inc.
Jan. 7 (letter of notification) 300,000 shares of common
stock

(par 10 cents). Price—$1 per share.

Proceeds—For

general corporate purposes."Office—100 W. 10th Street,

Wilmington, Del.
New

Underwriter—Glenn Arthur Co., Inc.,

York, N. Y.
Continued

on page

122

The Commercial and

(374)

Continued from page 121

(1/25)
Oct.

working capital and debt reduction.

200,000 shares

stock

of common

(par

such stock at $3 per share, to be
shares of

offered in units of 100

stock and 25 warrants. Price—$275 per

common

Proceeds—For general corporate

includ¬
ing the discharge of indebtedness, the expansion of
sales efforts, and for working capital. Office—79 Madison
"Avenue, New York City. Underwriter—General Invest¬
unit.

purposes,

ing Corp., New York.
Mid-America
Nov.

filed

Minerals, Inc.
shares of class

Price—$5

(par $1).

A common

400,000

Proceeds—For general

share.

per

stock

corporate purposes, including the reduction of indebted¬

of properties, and additional working
Office—500 Mid-America Bank Building, Okla¬
homa City, Okla.
Underwriter—None.

acquisition

ness,

capital.

Corp.
(letter of notification) $300,000 of 6M>% convert¬

the

200,000 shares of com¬
Price—$1.50 per share,. Pro¬
ceeds
For mining expenses.
Office — Ophir, Alaska.
Underwriter—B. D. McCormack Securities Corp., New
Dec.

(letter

stock

mon

notification)

(par 10 cents).

funds

general

the

officers

The

com¬

17,265 shares are to be offered to certain
employees of the company upon the exer¬

and

purchase said shares, the option price

cise of options to

being $9.35

Microwave

to 6,575 shares and $11 as to 10,690; Price

rights offering, to be supplied by amendment. Pro¬
additional working capital. Office—511 Old

—For

ceeds—For

Lancaster Road, Berwyn, Pa.

;

•

entitling the holder to purchase one additional
The statement also includes an additional 10,001
of common stock reserved for issuance to ke>

shares of

common

Price--$4 per share. Proceeds —For
shopping center in San Jose, Calif,
Office—Patterson Building. Carmel, Calif. Underwriter
—Binder & Co., Los Angeles 46, Calif.
par).

(no

construction

i
*

Nev

Underwriter—None.

(letter of notification) 73,750

stock

Inc.

Centers

Pacific

Dec
>

employees pursuant to options. Price—To be suppliec
by amendment. Proceeds -— To be used to retire bank
Underwriter—Milton D. Blauner & Co., Inc.,

shares of common stock.

The remaining

warrant

loans.

filed 28,637

to offer 11,-372 shares for subscription by
its common stockholders of record Jan. 15, 1960, upon
the basis of one new share for each 50 shares then held.

Corp.
June 16 filed 50,000 shares of common stock
(par It
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attachea
share.

pany proposes

Raymond F. Wentworth, 6 Milk St., Dover, N. H.
Un¬
derwriter—Eastern Investment Corp., Manchester, N. H.
Narda

Dec. 23

Office—c/o

company.

one

Inc.

Oxy-Catalyst,

debentures, series A, due Oct. 1, 1969.
Debentures are convertible at any time through Oct. 1,
1968 into class A non-voting common stock (par $5) at
the rate of 100 shares of such stock for each $500 of
debentures converted. Price—At face amount. Proceeds

Minalaska, Inc.

York.

ible subordinated

—For

(par

Proceeds—For research and
Underwriter—Sutro Bros. & Co.,. New

working capital.

Mutual Credit

Oct. 6

cent). Price—$6 per share.

■

filed

cents) and 50,000 one-year warrants for the purchase of

Detroit, Mich.

150,000 shares of common stock

filed

Oct.

Thursday, January 21, 1960

Ovitron Corp.,

Office—174 E. 6th

St., St. Paul, Minn. Underwriter—Piper, Jaffray & Hopwood, Minneapolis, Minn.

Electro Medical Products Corp.

Micronaire

Financial Chronicle

—

shares of

250,000

Price—$4 per share.

cents).
tion

Corp.

filed

stock

common

(par

Proceeds—For debt reduc¬

and

working capital. Office—Sarasota, Fla. Under¬
writer—Plymouth Bond & Share Corp., Miami, Fla.
Modern
Dec.

stock

Pioneers'

Life

Insurance

(letter of notification)
(par $1)

Pioneers'
transfer

47,687

Co.
common

Insurance

Co.

of dividends.

and

the

Price—$2

company
per

for

share.

cash

Proceeds—

working capital. Office—811 N. Third Street, Phoe¬
nix, Ariz. Underwriter—Associated General Agents of
•

America,

Inc.

Mohawk Airlines

Nov.

The

1966.

exchange offer,
be supplied by

remainder,
to

are

plqs any not taken in the
publicly offered. Price.—To

amendment.

Proceeds

—

For

general

corporate purposes, including debenture redemption, air¬
plane equipment, and working capital.. Office—Utica,
N. Y.
Underwriter—Dempsey-Tegeler &

Co., St. Louis,

Mo.

Montgomery Mortgage Investment Corp.
16 filed $3,000,000 of second
mortgage notes and
.accompanying repurchase agreements, to be offered in
$3,000 units.

the

100,000

common

exercise

Price—From $2,000 to $4,000 per unit.

are

debentures, each unit to consist of 10 common shares
$200 principal amount of debentures.
Price—$250
unit. Proceeds—For working capital, to be used for
expansion. Office—Floral Park, L. I., N. Y. Underwriter
—Burnham & Co., New York City.
and

Pro¬

Lawnservice Corp.
(letter of notification) 100,000

stock

selling commission of 7%.

Metropolitan Corp. (1/26)
sinking fund debentures, due

Dec. 23 filed $30,000,000 of

supplied by amend¬

Proceeds—To repay bank loans incurred for

Boston

Office—Quebec, Canada.

Corp. and associates.

Morse

Electro

Dec. 28 filed

(par

—Fund
•

Jan.

Brunswick
filed

due

tures,

Products

Corp.

120,000 shares of

common

used

stock.

Price—$7

and

Proceeds—Together with other funds, will be
opening of three additional retail stores,
for additional
working capital.
Office —122 West
for

26th

the

Street, New York. Underwriters—Standard Secu¬
Corp. and Irving Weis & Co., both of New York,

rities

all-or-nothing basis.

Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,000 shares of common stock
(par $10) in
a
joint registration with Guaranty Insurance
Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of
Mortgage
common and one share
qf Guaranty common. Proceeds—
Mortgage will
will

its proceeds fo
rexpansion; Guaranty
proceeds for additional working capital.

its

use

Office—(of both firms) 606 West Wisconsin Ave., Mil¬
waukee, Wis.
if MPO
Jan.

Videotronics,

Inc.
150,000 shares of class

filed

100,000 shares

suing

company

standing
the

are

stock,

present

stock, of which

to be offered for the account of the is¬

and

50,000
to

are

holders

shares,
offered

thereof.

representing
for

Price—To

the
be

amendment.

including
New York

account

supplied

City. Underwriter—Francis I.
City.

Oils

(Province

Street,

du Pont &

New

land

Co.,

Price—60

exploration, develop¬

acquisitions.

Office—5 Cobbold Block, Saska¬
Canada.
Underwriter
Cumber¬

Saskatchewan,

—

Securities Ltd., Regina,
Saskatchewan, Canada.

Electronic
Manufacturing Corp.
(letter of notification) 50,000 shares of

(par

tJt

cents).

Price—$6

per

share.

common

Proceeds—

corporate purposes.

Office—Beech Street
VUnderwriter—Heft, Kahn & Infante, Inc.,
mpstead, N. Y. Offering—Expected in
January.

Murphy Finance

Price21

Tn
race—1To

advanced

offered

for

held.

Price—$2
with

capital.

share.

per

the

holders

dealers

capital stock, tc
of outstanding

will

be used as working
Underwriter—One oj

offered

any

Co.

eKO10°'00?-S?aues of
be supplied

common stock (par $10).

amendment.

Proceeds—For

ris

Nov. 30

gears

and

mufflers.

Rochester, Michigan.
side &

Co., Inc.,

"all

common

stock, of which

Office

342

—

South
B.

St.,

The
sold

37,500 shares
to

consideration

John
of

thus

far

services

unaccounted

new

for each

for

supplied

rendered.

10 shares held.

amendment.

Jan.

filed

150

units

The

re¬

Proceeds—For

Inc.

participations in exploration
agreements.
Price—$150 per unit. Proceeds—For land
acquisition and drilling and equipping wells. OfficeIll N. W. 23rd St., Oklahoma
City, Okla. Underwriter—
None.

Note—The

homa law

filed

Phillips Developments, Inc. (2/24)
400,000 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—For
property development, possible acquisitions, and work¬
ing capital. Office — 1111 West Foothill Blvd., Azusa,
Dec. 21 filed

Calif.

Underwriters—Allen

and Sutro Bros. &

& Co., Bear, Stearns & Co.,
Co., all of New York City.

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1),

drilling, exploration, development, and to purchase an
interest in Parker Petroleum Co. Office—8255
Beverly
Boulevard, Los Angeles, Calif. Underwriter—None.
if O'Connor Petroleum,

•

are

maining shares are to be offered to a group of individ¬
uals, not as yet named, who have agreed to purchase not
less than 307,925 shares, and will also be offered shares
not bought by the holders of the
outstanding common.
Price—To

(letter

Mineral Projects Co., Ltd,

share in
Offering—

stock (par 20
cents), 307,927 shares of which are to be offered for sub¬
scription by holders of outstanding common stock at the
one

Investment Corp,
notification) 15,000 shares of capital
(par $1). Price—$2 per share. Proceeds—To pay
an
outstanding note.
Office—Petersburg, Va. Un¬
8

—

per

Occidental Petroleum Corp.
Oct. 29 filed 615,854 shares of common

company was organized under Okla¬
Jan. 6; all
outstanding stock is owned by

O'Connor, President.

of which 55,000 shares are to be offered
first to stockholders of record A.ug. 31, 1959, and 45,000 shares (minimum) 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
company to make

including the enabling of the issuing
application for licenses to conduct its

insurance business in States other than
Illinois, the sole
in which it is
presently licensed. Office—222 W

State

Adams

Street, Chicago, 111.

ment effective

Nov.4.

La.

Underwriter

to Jan. 23,

chase

125,000

common

if Onyx Chemical Corp.
15 filed 140,000 shares of
common stock
Price—To be supplied by amendment.

company-connected
people;
shares.
Prices—For the

par).
Proceeds—To ac¬

quire

Onyx Oil

Chemical

Co.

Office

—

190

Warren

Street, Jersey City, N. J. Underwriter—McDonnell &
Co., Inc., New York City. Offering—Expected in Febru¬
ary.

„

convertible

and

may

150.000

issued

common

debentures, par; for the
supplied by amendment.
reduction, plant construction,
equipment. Underwriter—John R. Boland & Co.,
New York City, who will work on a
"best efforts"
mon,

the

ceeds

—

price

For

will

debt

commission

of $120 per

com¬

Pro¬

and
Inc.,
basis

$1,000 debentures

Preferred

Insurance

Co.

Dec. 30 filed 59,364 shares of
outstanding common stock,
to be exchanged
by certain of the issuer's shareholders

subject to
Grand

(no

shares, which

agreement with Preferred Automobile Un¬
Co.
Office —126
Ottawa

derwriters

Jan.

State¬

debentures, due 1970, with attached warrants to pur¬
28,000 common shares; and warrants for the pur¬

and receive

tional Trade Mart, New Orleans.
Assets Investment Co., Inc., New

»•

chase

sold.

common
stock (par 3f
share.
Proceeds—To retire banV
loans and for investment purposes. Office—513 Interna

•

Precision Transformer
Corp., Chicago
$700,000 of 6V2% subordinated

cents.

per

Underwriter—None.
'

Dec. 29 filed

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of

Price—$2

per

corporate

Projects
$1,500,000 of participations lin oil and gas
.exploratory fund. Price
The minimum participation
will cost $10,000.
Office—Madison, N. J. Imuerwriter—

Expected in February.

rate

$3.75

—

general

Petroleum

Appelbaum at $.10

certain

Jan.

Oct.

Burn-

nothing best efforts" basis.
underwriter will receive $15,000 for
expenses, a
$.75 per share selling commission on the
200,000 shares
comprising the public offering, and the privilege of pur¬
chasing 37,500 shares of the common stock at $.10 per
share.

Price

100.000

W. 55th Street, New York.
UnderwriterSecurities, Inc., formerly Chauncey, Walden, Har¬
Freed, Inc., New York.

off

Underwriter—Mortimer

on an

share.

per

additional

Proceeds—For

warrants

stock .(par

common

purchase

derwriter—None.

are

•

stock

not

to be publicly offered. Price—$3.75 per share.
Proceeds—To reduce indebtedness and increase inven¬
tories

if Petersburg

Nu-Era

200,000

aiiuiw

$3.25

Office—245

subscribed for at $2 per share.

Corp.
filed 275,000 shares of

with

Hilton

any,

-ioo.uou

warrants

(2/10)

including the addition of working capital, the
reduction
of
indebtedness, and the provision of the
$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York.

Proceeds—To reduce indebt¬

balance, if

Office—Matthews, N. C.

security

common

JUleu

with

share,

shares for each five shares

new

Co., New York City.

purposes,

Telephone Co. A

subscription by

Price—To
new

tojbe used as working capital. Office
St., Passaic, N. J. Underwriter — Bear,

News, Inc.

common

Underwriters—Halsey, Stuart
Inc.; Kuhn, Loeb & Co., and W. C. Pitfield & Co.,
Inc., all of New York City.
/ ^
:
North Carolina

Pathe

cents)

& Co.

Sept. 4 filed 576,405 shares of

(1/29)

any,

Jefferson

sepi

Office—

Orleans, La. The SEC
"stop order" hearing has been postponed from Dec. 23

Munston
N«v

stock

•

Commission. ;

Power

balance, if

Stearns &

Brunswick, Canada.

Electric

Co.

plant
(to be built by Scientific Design Co., Inc.) and equipment and "start-up"
^xpenses pertaining thereto, with
the

-(1/27)

Proceeds—To

1985.

Brunswick

Pantasote

—26

$15,000,000 of 25-year sinking fund deben¬

Feb.

New

William J.

May 11 filed 390,000 shares of common
stock.
share.
Proceeds —For

toon,

of)

Ltd.

cents

per
ment and

Proceeds—For general corporate
purposes,
debt reduction. Office—15 East 53rd

New York

out¬

Planning Inc., New York, N. Y.

New

The

share.

per

con¬

Underwriters—First

of com¬
share. Pro¬
Office —410

ceeds— For

•

Feb. 1, 1985, to be redeemable at the
option of the issuer
on or after Feb. 1, 1970. Price—To be

struction.

•

Beach, Fla. Under¬
N. Y.

Jan. 8 filed 350,000 shares of common stock.
be supplied by amendment.
Proceeds—For

one cent).. Price—$3 per
general corporate purposes.
Livingston Avenue, North Babylon, N. Y. Underwriter
mon

edness

repur¬

Office—11236 Georgia Avenue, Silver
Spring, Md. Underwriter—There is no underwriter as
such, but Adrienne Investment Corp., an affiliate of the
issuing company, will act as sales agent, for which it

ment.

Northeast 163rd Street, North Miami
writer—T. M. Kirsch Co., New York,

per

chase agreements.

Montreal

Jan.

the

stock in the ratio of two

if PaLm Beach-Dade Corp.
7 (letter of notification) 150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—
To make a down payment on land;- for principal pay¬
ment, interest payment and working capital. Office—1873

issuance

for

reserved

stock.

warrants, and the remaining
to be offered in units with

of the

common

are

ceeds—To purchase other second trust notes and to main¬
tain a reserve for repurchase of notes under its

receive

Inc.

(letter of notification) 75,000 shares of common
Price — At par ($1 per share).. Proceeds —For

mining expenses. Office—404 Mining Exchange Build¬
ing, Colorado Springs, Colo. Underwriter—Birkenmayer
& Co., Denver, Colo.
■

Oct.

will

Pacific Gold,

debentures, due Feb. 1, 1970, with common stock pur¬
chase warrants attached, and 207,500 shares of common
stock, of which 127.500 shares of the common are to
be offered for the account of selling stockholders, 80,000

Jan.

$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 5%% convertible subordinated debentures,
due

if National

Inc.

filed

Dec.

upon

shares of

to be offered to policyholders of Modern

For

North

Indefinitely postponed. ;

Equipment Rental, Ltd.
Dec. 30 filed $2,000,000 of 6% subordinated sinking fund

★ Mobilife
Jan.

York.

National

York, N. Y.

Avenue,

W.,

Rapids, Mich.

Prudential

Commercial Corp.
(letter of notification) 150,000 shares of common
(par one cent). Price—$2 per share. Proceeds—

Oct. 21
stock

For general

corporate

County of Kent, Del.

purposes.
Office—City of Dover,
Underwriter—All State Securities,

Inc., 80 Wall Street. New York, N. Y.

Number 5918

191

Volume

. . .

The Commercial and Financial

Chronicle

South Bay
Industries, Inc.
11 filed
210,000 shares of class A stock.

Industries, Inc.
cll__

Puerto Rico
PUr filed 48,500 shares- of class A common ■ stock.
in
kj
Oct. in 200 000 shares of class B common stock (par $1)
nnn .harps of plaSS B COITimnn stork fnar <t1 \

share.

per

Proceeds—To

pay

off

bank

executive

panded

Dec.

Price—$5

loans, purchase

(par
(Par?ipfl000 of 6%
and

sales

lease

ance

machinery, and add to working capital.
subordinated debentures, due July
Office
42
Broadway, New York City. Underwriter—Amos Treat &
Jpjyjth the exception of 151,500 shares of class B
I.19
i,,lL;nn allocatea to the. organizers of the company au* n?:,'
allocated lu uic(u»bo"««s vj- mc uumpauy ai.
°J; New York City, on a "best efforts" basis.

purchase additional factory and office

Office1—188 Webster St., North Tonawanda, N. Y.
Underwriter—C. E. Stoltz & Co., New York.

of S4,uuu
v',.Pc
®

Southland

Proceeds—For investulceus—rui invesi-r
securities
subsidiary, Puerto Rico
SCLUlHiv-a of its
—
r
,.,jn
4-1,^ £
j_
.i
Co., Inc., which will use the funds, esti¬

the
tne

nient in

Packing

matedat $600,000,
^Futile

and

■

edness Office—Seattle, Wash. ^ Underwriter—^HUl,jDarCo., of Seattle

jington &

and New York City. Offering;

Expected in February.
x Rangeley
Bald Mountain Ski Corp.
J 8'(letter of notification) 767 shares of common
fork
Price—At par ($100 per share). Proceeds—To

Office—Rangeley, Maine. Under¬

ski resort.-

operate a

writer—None.

Insurance Co.,'Chicago,
0ft
90 filed 110,837 shares of capital
fi9 676 are to be sold for the company's

111. .'- 'v -: r r
stock, of which
account and 48,
161 shares are
to be .sold for the account of certain
selling stockholders.
Price—To be supplied by amend¬
ment
Proceeds—To be added to the general funds ol
the company to enable it to finance a larger volume ot
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
Reserve

indefinitely.
v
;
Records, Inc.
Aug. 27 filed 330,000 shares of common stock (one cerilr
of which 300,000 shares are to be publicly offered. Pricr
—$3.50 per share. Proceeds—For general corporate pur
poses, including moving to new quarters and installing
executive offices and sound studio facilities therein, ac¬
quiring technical equipment and machinery, and adding
to-working capital.' Office —659 10th Avenue, Neu
York.
Underwriter—Hilton Securities, Inc., 580 Fifth
Avenue, New York, formerly known as Chauncey, Walden, Harris & Freed at the same address, states that it
-Postponed
Roulette

longer underwriting

this Issue.

•

m^fS,udue ^an'
000 shares of

ture. Proceeds—For general corporate purposes.

the completion of the proposed offering,
net operating profit in the fiscal year ending April 30,
1959 was about $1.48 per share.)
Office—Evanston, 111.

ing effect to

Underwriter—Kidder, Peahody & Co., Inc.

day.

any

filed

104,961 shares of

fered to

common

basis

one

/Price—To

Seacrest Industries

Corp.
(letter of notification) 165,000 shares of common

Proceeds—
For general corporate purposes.
Office—354 Franklin
Avenue, Franklin Square, L. I., N. Y. Underwriter—A.
J. Gabriel

Price—$1

per

share.

Co., Inc., New York, N. Y.

Secode

Corp.
Dec. 28 filed
$1,500,000 of 6% convertible subordinated
debentures due July 1, 1965. The company proposes to
offer $300,000 of the debentures in
exchange for its
6% convertible notes due

July 30, 1962; $587,000 in ex¬
notes totaling $587,000; and the

change for its demand
balance, or $613,000, to the public for cash. Office—555
Minnesota Street, San Francisco, Calif.
Underwriter—
No
underwriting is involved; but the debentures offered
for the cash sale will be sold on a best efforts basis
through dealers who will receive a 5% commission.

cents), to be offered in units of 1 debenture and 25 com¬
mon shares. Price—$100 per unit. Proceeds—To invest
—

Denver 2, Colo.

Underwriter—None.
Shield Chemical

Ltd.

(letter of notification) 95,000 shares of capital
(par 10 cents). Price—$1.50 per share. Proceeds;° Purchase and install manufacturing equipment; com
.

stock

0. anc* test equipment;
capital.

nerwriter—Peters, Writer
Colorado.
•

advertising and

Office—17 Jutland Road, Toronto,
-

•.

Christensen,

for working

Canada. UnInc., Denver,

■'

Southern

-9

filed

Inc. (2/10)
100,000 shares of its common

Price
I", a,.be supplied by amendment. Proceeds — For ac•!»tlon
land and erecting an additional plant, for
a^d additional equipment, for fixtures and gen-l
furnishings for the new plant, and for reduction of
stock.

aa"k

indebtedness.

^elbourne,
lnc-

Fla.

Charlotte,

New

Office—7725

Underwriter

—

Haven

R. S. Dickson

& Co.,

N. C.

inc. (Formerly South Dade Farms, Inc.)
2,000,000 shares of common stock (par $1),
ihp
1»543,000 shares are to be issued and sold for
«e
account of the
company, and 457,000 shares, repreaf
.outstanding stock, to be sold for the account?
ln sel]ing stockholders. Price—To be supplied by
& ment- Proceeds—To retire 70% of the common
,^tkoutstanding at the date of the stock offering; to
seven J" .the
caPital stocks of six of the company s
Oflnank subsidiaries; to repay a bank loan of $6,400,lerm ° .add t0 working capital; to'retire certain longnt,,'"debtedness; and to develop citrus groves. Office
oUth East First Street, Miami, Fla. Underwriter

amnnj

each

record

Feb.

amendment.

then

the

Edison Co.

$30,000,000

Offering—Indefinite.

January,'> 1970,

amount;

first

Underwriter—Milton D. Blauner &

Road, Union, N. J.

Co., Inc.
/•

Service

Electric

Texas

Jan.

refunding

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kid-,
der, Peabody & Co.; Merrill Lynch, Pierce, Fenner &
Smith
Inc.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & Co.; Blyth & Co., Inc. and Lehman

(jointly); and Blyth & Co., Inc.

per

Industries, Inc. *
963,000 shares of common stock

Brothers.

;

share.

Jan.

Office

Jan.

payable without demand

1965;

15,

Price—At

Proceeds—For

value.

face

225,000 shares of common stock, of which
15,000 shares are to be offered to employees of the issu¬
ing company and its subsidiaries, and 210,000 shares
represent outstanding stock held by previous stockhold¬
ers of Southwest Acceptance Co., who may
offer their
shares. Price—At market. Office—Amarillo, Texas. Un¬
derwriter—None.

Nov. 27 filed
per

15, 1970.
capital.

by about $300,000, with the balance
working capital of the company and its
subsidiaries.
Office—210 East Main Street, Rockville,
Conn. Underwriters—To be supplied by amendment.
indebtedness

to be added

:"/>v

Petroleum

Transcon

Manufacturing Co.

Development Corp,,

Mangum, Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per suare).
Proceeds—

140,000 shares of common stock (par $.10).

share. Proceeds—For plant improvements,

opening new muffler and brake shops,

Price—$3 per share.

(par 10 cents).
duce

common stock
Proceeds—To re¬

of class A

28 filed 300,000 shares

Aug.

filed

Fluorescent

Jan.

working

Underwriter—None.

Tower's Marts, Inc.

Southwestern Investment Co.

advertising, new

For

product engineering and promotion, and working capital.
Office—3550 N. W. 49th St., Miami, Fla.
UnderwriterCharles Plohn & Co., New York City.
Offering—Ex¬

development of oil properties. Underwriter—First
Planning Co., Washington, D. C.

Investment

^Transistor
Jan.

pected in January.

Specialties,

Inc.

(letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
general corporate purposes, Office—Terminal Drive,
8

stock

Stantex Corp.

■'

-/■•-

For

300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—For
new quarters,
expansion and working capital. Office—
40 N. 2nd Street, Philadelphia, Pa. Underwriters—First
City Securities, Inc., New York, N. Y. and Frank P.
Hunt & Co., Inc., Rochester, N. Y.
(letter of notification)

Dec. 28

...

„

^ Time Sales Finance Corp.
6 (letter of notification) $250,000 of five-year 8%
subordinated renewal debentures payable upon demand

(par $1).

Proceeds—For investment.

Office—Philadelphia, Pa.

Price—$5

(2/9)

Co.

of sinking fund debentures, due
Proceeds—For construction., Underwriter—To be
filed $12,000,000

determined

mort¬

Greenville, S. C, Underwriter—Capital Securities
Corp., 121 So. Main Street, Greenville, So. Car., on a
"best efforts" basis, with a commission of 50 cents per

indebtedness,

reduction of

For

—

supplied

100%

issuer's coil business from Michigan to North
Carolina, and working capital. Office—1090 Springfield

1985.

(1/26)

and

Proceeds

stock,

the

for

25,000 shares

and

the debentures: at

moving

held.

V'"-''

Growth

filed

Price—$5

Prices—For

stock.

common

—

Nov.

*';•

due

debentures,

Proceeds—For

Office—70 Pine St., New York'City.

California

filed

Southern

Plainview, N. Y.
•

Underwriter—None.

Transit Freeze Corp.

Dec.

(letter of notification)

75,000 shares of common

(par 10 cents). Price—$4 per share. Proceeds—For

stock

incidental to the development of a frozen food

expenses

trucking business. Office—152 W. 42nd Street, New York

Stelling Development Corp.

—
Jerome Robbins & Co., 82 Wall
"best efforts" basis. Offering—Expected in

Underwriter

300,000 shares of commori
cent). Price—$1 per share. Prnceeds—
For mortgages, land, paving rpads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

City.

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.
Conn. Underwriter — E; T. Andrews & Co., Hartford,

debentures, due November, 1969, 60,000 shares of com¬
mon stock (par one cent)
and 30,000 common stock pur¬
chase warrants, to be offered in units consisting of $100

(letter of notification)

June 8

stock

(par

Street, on

one

(The)
Oct.

Champaign, 111.
Champaign, 111.

Underwriter

—

stock

Price—To

(•-»:;

(letter of notification) 199,900 shares of common

(par five cents).

Price—$1.50 per share. Proceeds

expenses

Turner Timber Corp.
Nov. 12 filed
due

$2,000,000 of 6%% convertible debentures,

1969, and 250,000 shares of common

stock (par one

cent), to be offered in units consisting of $1,000 principal
amount of debentures and 125 shares of stock.
Price—

Developments, Inc.

offered
rate of
ten-seventy-fifths of a share for each share held. Price
—$28 75 per share. Proceeds—For working capital and
to secure additional patents on present inventions, and
to continue and expand research and development work
in the field of liquid compressibility devices and other
areas
Office—188 Webster St., North Tonawanda, N. Y.
Underwriter—C. E. Stoltz & Co., New York. 1
filed 5,390 shares of common stock to be
subscription by common stockholders at the

Dec. 23

Inc.
'
'!
■
shares of common stock to be of¬
fered for subscription by common stockohlders on the
basis of six-tenths of one share for each share held. Price
—$28 75 per share. Proceeds — To repay a short-term
loan for additional working capital, and to establish ex¬
Taylor Devices,
23 filed 18,705

'• -i

Corp.

Daggett Securities Inc., Newark, N. J.

City.

Tayco

Price

for drilling and producing oil. Office—
1403 G. Daniel Baldwin Bldg., Erie, Pa. Underwriter—

—For

amendment.
Proceeds—For 1960 con¬
struction expenditures, estimated at about $25,000,000.
Office—111 North Dale Mabry Highway, Tampa, Fla.
Underwriter—Stone & Webster Securities Corp., New
York

subordinated

debentures, 10 common shares, and 5 warrants.

Nov. 12

supplied by

Tri-State Petroleum

Tampa

Jan.

$600,000

this issue.

Hurd, Clegg & Co.,

Electric Co.
(2/3)
filed 240,000 shares of common stock.

filed

Proceeds—For general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ross, Lyon & Co., Inc.,
•New York states that they are no longer underwriting

System

Dec

Plan, Inc.
7% convertible

T Transportation

—$150 per unit.

Finance Co.
(letter of notification) $250,000 of 6% subor¬
dinated notes due Jan. 1, 1966. Price—At face amount.
Proceeds—For working capital. Office— 610 S. Sixth St.,

February.

Conn.

for

Stearns & Co., New York.

for

supplied >by

Dean Witter & Co.

Nov.

City.

Tenney Engineering/ Inc. (1/22) ■ ^ Dec. 18 filed $500,000 of 6 Vi %' convertible subordinated

bonds, series L, due 1985. Underwriter — To be
determined by competitive bidding. Probable bidders:
Halsey Stuart & Co. Inc.; The First Boston Corp. and

Avenue,

j^tiie,
nf

New York

gage

•

Soroban Engineering,

uec-

notes, with the balance to general funds.
Office—Houston, Texas. Underwriters—Stone
Web¬
ster Securities Corp. and White, Weld & Co., both of

tire short-term

amendment.

stock, to be of¬

common

Underwriter—Bioren & Co., Philadelphia, Pa.

Security Mortgages, Inc.
filed $250,000 of 11-year sinking fund deben¬
tures and
62,500 shares of class A common stock (par 15

equities and/or mortgages'. Office

new

issuer's subsidiaries.

Npv. 30

stockholders

accompany

principal

^ Tennessee Gas Transmission Co. .
Jan, 19 filed 1,500,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re- -

general corporate purposes, including investments in the

Jan.

will

100%

principal

+ Southeastern Public Service Co.
Jan.

1969.

due

common

Sta-Brite

(par one cent).

Office—..

Charlotte, N. C. Underwriters — Interstate Securities
Corp., Charlotte, McCarley & Co., Asheville, N. C., and
Citizens Trust Co., Greenwood, S. C. Offering—Expected

Row,

Dec. 4

stock

($1 par). These debentures
are to be offered on the basis of
$1,000 principal amount
of
debentures, each such debenture bearing warrants
for the purchase of 200 shares of common stock at
$4.25
per share until July 29, 1960.; Price—$1,000 per deben¬

Jan. 6 filed

stock

deben-

1975, with warrants -to- purchase 100,-

common

share.

Peterson & Co. (2/8)
164,689 shares of common stock, of which
157,346 shares are to be offered for the account of nine
selling stockholders and 7,343 shares for the account of
the issuer. Price—To be supplied by amendment. (Giv¬
•

•

by of¬
by certain investment firms.

the company and

Price—At

Lexington, Houston, Texas.

•
Southeastern Factors Corp.
>
Dec. 9 filed $500,000 of 6% subordinated
capital

fisn ch?
common stock. Price—$6.50
T'o Klitf
4 w.#JyvW4Proceeds—To buy land and reduce indebt¬

oUre

2802

of 6%

$750,000

the debentures.
amount. Proceeds—For
general corporate purposes including expansion and debt
reduction. Office—Amityville, L. I., N. Y. Underwriters,,
—Amos
Treat &
Co., Inc., and Truman, Wasserman
& Co., Inc., both of New York City/ Offering—Expected
in " January, 1960.
ber

Underwriter—The participations will be offered
ficers of

ioc;

filed

Jan. ^
she

Program. Price--$5,000 per unit,
participation of $10,000. Proceeds—For
—

filed

debentures

1960 Oil

in its

Exploration

exploration.. Office

operating^ capital.-^Address—P. O
Rock,'Ark. Underwriter—None.

Gas

with a minimum

fpuget Park Corp. of
A.,_j
125,650 shares
*'

Ventures, Inc.

-Nov. 27 filed
$2,000,000 of participations

Oil

Nov.

Corp.
(1/25)
convertible subordinated
presently undetermined num¬

Manufacturing

Telechrome

•

Ottering—-Expected in February.

price__$5 000 per unit.
price—$o,uuu pet unit.

development, and the bal¬

space.

—

c0nlllhe securities are to be offered to the public in units
pal:ilvnnSofldebentures, 500 class A shares^ and 500 class

personnel

manufacturing

and

and to continue research and

$1,001.25 (plus accrued interest from 12/15/59) per unit.
Proceeds—For the acquisition of coal and timber prop¬
erties, with any balance to be added to working capital.
Office—60 E. 42nd Street, New York City. Underwriter
.

Co., Inc., Rochester, N. Y.

—Frank P. Hunt &

United

Employees

Insurance

Co.

\pril 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share.
Proceeds — For acquisition ot

>perating

properties,

real

and/or

personal,

including

office space, by
purchase. Office ,— Wilmington, Del. Under¬
writer—None
Myrl L. McKee of Portland. Ore
jffice furniture, fixtures, equipment and

Dec

'ease

•

President.
.

...

Continued

page

124

The Commercial and Financial Chronicle

(376)

Continued from page 123

pansion of present Michigan and Ohio sales force to a
and introduction of new courses and resi¬
dent study schools. - Business—In correspondence school

national one,

it U. S. Polymeric Chemicals, Inc.
Jan, 14 filed 71,090 shares of outstanding common stock.
Price

To be supplied

—

Proceeds

by amendment.

selling

stockholders.
Office—Stamford, Conn.
writer—Dominick & Dominick, New York City.
United Tourist Enterprises, Inc.
Jan. 28 filed 4,500,000 shares of class

—

business.

Office—1609

Kalamazoo

Lansing, Mich.
The company
New York under¬

St.,

Underwriter—In New York, to be named.

Under¬

presently

negotiating

writers.

with

two

■'

;,,y: • v:"'•v;;-1

■'

(par 50

cents).

development
and

for

Britton

common

Corp.
It has been reported that this Queens
company is expected to offer an issue of

stock

Price

— $2
per share.
Proceeds — For
construction of a "Western Village"

and

construction

Grand

Estes

Hotel

and

—

Brooklyn
Dec.

Transistor

(letter

was

The

1960.

precise form

be announced

—

Michael G. Kletz &
New

the first

offering

the

is expected to
The conipany's cur¬
the form of straight

quarter.

rent

thinking is that it will take
preferred stock.
About $120,000,000 is expected to be
spent for construction in the 1959-1964 period, of which

Co., Inc. and Amos -TreatCo., Inc.,

York, N. Y.

S80,000,000 will be sought from outside financing,
with the $40,000,000 remainder expected to be internally

com¬

Corp.;

Meeting—Scheduled for July
be received
on
July 7,

Expected

1960. Bids—
Registration

—.

Scheduled for June 3.
...

Gulf

Dec.

Power Co.
it

tration

(7/7)
that the

announced

was

plans regis¬

company

50,000 shares of preferred stock (par
$100).
Underwriter—To be determined by competitive
bidding.
Probable bidders: Harriman Ripley & Co.; Eastman Dil¬

lon,

Co.

Union Gas

reported that the company plans to issue
about $20,000,000 of securities in the second quarter of

Products Corp.
(1 28)
notification) 150,000 shares of com¬
mon
stock
(par 10 cents). Price—S2 per share.
Pro¬
ceeds
For
general corporate purposes.
Office — 36
Sylvester Street, Westbury, L. I., N. Y. Underwriters—
18

stock

Kidder, Peabody & Co., and White, Weld 8c Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner 8c
Smith inc.; Salomon Bros. & Hutzler, and Drexel &
Co.
(jointly); Eastman Dillon, Union Securities & Co. In¬

January, pursuant to

ment effective Oct. 9.

Universal

common

—For

Hall, to be constructed" in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.
Office
330 South 39th Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo. State¬

Dec.

Village, L. I.,

an SEC registration.
Proceeds
plant and equipment, including the expansion ot
a semi-conductor line for silicon
products. Underwriter
—First
Philadelphia Corp., 40 Exchange Place, New
York City.

Con¬

vention

•

Electronics

deterrnined

petitive bidding. Probable bidders: Halsey, Stuart & Co
Inc.*/ The First Boston Corp.; Equitable Securities

formation

Underwriter—To

bonds.

year

Thursday, January 21, 1960

Union

Securities & Co., and
Salomon Bros. 8c
(jointly); Equitable Securities Corp.; Kidder,
Peabody 8c Co., and White, Weld & Co. (jointly), in¬
Hutzler

formation

Meeting-—Scheduled for July 5, I960. Bids—
be
received on July
7.
Registration

Expected

—

Scheduled for June 3.

Harvey Aluminum Co., Torrance, Calif.
It

reported

was

late" last

that

year

this

firm—the

old

some

generated.

Val Vista
June

Investment Co., Phoenix, Ariz.
filed 80 investment contracts
(partnership

terests) to be offered in units.
Proceeds—For
curities Co.

investment.

in¬

Price—$5,378.39 per unit.

is expected

Underwriter—O'Malley Se¬

Variable Annuity Life Insurance Co. of America
filed $4,000,000 of Variable
Annuity Policies
Price—No less than $120 a year for annual
premium
contracts and no less than $1,500 for
single premium
conta cts.
Proceeds—For investment, etc. Office—-1832

Street, N. W., Washington, D. C.

financing for the Spring. Underwriters—Kuhn, Loeb 8c
Co. (managing) and
Tucker, Anthony & R. L. Day, both
of New York City.

will have outstanding as of the end of this
year, in addition to about $2,250,000 of bank loans under¬
taken in order to call in the

preferred stock of Brooklyn
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¬
Borough Gas

lyn 1, N. Y.

Vickers-Crow Mines, Inc. (2 1)
(letter of notification) 150,000 shares of common
stock (par one
cent). Price—$2 per share. Proceeds—
For general
corporate purposes.
Office
321
Grant

Feb. 9.

Case Credit Corp.
reported in early January

It
•

Note: Stockholders meet

(J. I.)

Underwriter—None.

Nov. 23

Proceeds—The offering now "in the wor.es
to liquidate bank loans of about $13,000,000

was
that the company is
planning new financing in a few months., possibly
through privately-placed notes. Office—700 State Street,

Racine, Wis.

/i'".'.

—

Ave., Eveleth, Minn. Underwriter—Sakier &
Co., Inc.,
50 Broad St., New
York, N. Y.
•

Vita-Plus

Beverage Co., Inc.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation
of

West

Dec.

Florida

filed

Natural

$837,200

Gas

Co.

(1/29)

subordinated

income

deben¬

tures and warrants to

buy 25.116 shares of class A com¬
stock ($1 par), to be
offered first to stockholders
in units of $100 of debentures
with warrants
mon

for the pur¬

chase of three shares of
common

at $100. Price—To be
by amendment. Proceeds—For
general cor¬
porate purposes. Office—Maple & Third
Streets. Panama

supplied

City, Fla. Underwriters—White. Weld &
Co., New York
City, and Pierce, Carrison,
Wulbern, Inc., Jacksonville,
Fla. (jointly).
Western Carolina
Telephone Co.
:
Nov. 4 filed
71,513 shares of common stock
(par $5), to
be offered to
stockholders on the basis of one
new
share for each five shares
held. Price—$6.75 per share.
Proceeds—For general corporate
purposes, including the
reduction of indebtedness and
the continuation of con¬
struction. Office—15 South
Main St.,
Weaverville, N. C.

(par $10)
stock (par $25). Price —

construction

and

equipment oi
company's plant and for working
capital.
Office—300
Montgomery St., San Francisco, Calif. Underwriter—

None.

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.,

Pittsburgh, Pa.
Dec.

(letter

increase
and

Co.

notification)

150,000 shares of com¬
Price—$2 per share. Proceeds—To
expand
manufacturing facilities
capital. Office—1601 W.
Lincolnway,
Underwriter
Atlas Securities Co..

(par SI).

inventories,

for

working
Cheyenne, Wyo.

Cheyenne, Wyo.

coffee

houses,

establish

commissaries

Lansing, Mich.

—

and

for

1500 Clifton Ave.,

Underwriter—In New York, to be named.

Consolidated

Research &

Mfg. Corp.

Dec.
16 it was reported that
this firm, founded last
August as a Delaware corporation, plans its first pub¬
lic financing in the form of a common stock
offering
scheduled for next spring. Business—The
company produes

containers

spray

to combat ice,
snow,
and fog.
expansion. Office—1184 Chapel St., New

Proceeds—For

Haven, Conn. President—Marvin Botwick.
•

Dayton Power & Light Co.

Dec.

filing

bonds.

about

$25,000,000

Proceeds—Will

company

30-year

used

first

plans the
mortgage

$18,000,000

repay

temporary bank loans and to defray part of the cost of
the company's 1960 construction
program.
Underwriter
—To

Co.

t''antl.0'! vjWi the Securities
S 19,500,000 of

company plans

regis-

and Exchange Commission of
30-year first mortgage bonds.
Underwriter
T"!?
determined by competitive bidding. Probable
bidders: Halsey, Stuart &
Co. Inc.;
Morgan Stanley &
Co.; Lehman Brothers; The
First Boston
Corp.; Blyth &
nn'L ?CT?nd KlddeL Peabody & Co. (jointly); Eastman
Dillon, Union Securities &
Co.; Equitable Securities
Coip and Drexel & Co.
(jointly). Information Meeting
—Scheduled for April
4, 1960. Bids—Expected to
be re¬
ceived on April 7.

Registration—Scheduled

*m^ruan Jet
A

for March

ice

anJ?

School, Inc., Lansing, Mich.
v,?s announced that the corporation
100-000 shares of common stock

To be
supplied by amendment.

Securities & Co. and Salomon Bros. & Hutzler
(jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc. and
White,
Weld & Co. (jointly); Lehman
Brothers, Blyth & Co.,
Inc.

and

Stanle^

The

and
1.960

ible

First

Co.

and

Boston

Corp.

Hutton

plans

(par SI).
ex¬

bond

supplied

by amendment.
radio stations. Business

issues

were

placed

Proceeds—For acqui¬
Radio broadcasting.

—

Shepard St., Lansing,
York, to be named.

In New

★ Kenrich
20

expected

Mich.

Underwriter—

Petrochemicals,
was

Light Co.

$175,000

debentures.

(2/24)

competitive

Underwriter

bidding.

—

Probable

determined

bidders:

Halsey,

Stuart

& Co. Inc.;
Kuhn, Loeb & Co.; Eastman Dillon, Union
Securities & Co.; A. C. Allyn 8c
Co., Inc. and Ladenburg,
Thalmann & Co. (jointly);
White, Weld & Co.; The First
Boston Corp. and
Glore, Forgan 8c Co. (jointly);
8c

Co., Inc.; Drexel & Co.
(jointly).

Blyth

and Equitable

Securities Coup,

;--'V

Englehard Industries, Inc.
was

reported that this Newark, N.
J., corpora¬
make an announcement in the next two
weeks concerning a
forthcoming issue of common stock.

might

Although

confirmation

understood

that

December.

Registration

near

auditors

has

been

visited
is

still

the

forthcoming, it
company

believed

future.

convertible7 debentures

stock.

common

February registration

is
and

Prices—To be supplied
manu¬

L. I., '
Philadelphia Corp., 40 Ex^
change Place, New York City.
1
:
\
-

Underwriter

Mississippi

Dec.

tration

was

—

First

Power

Co.

announced

(3/17)

that

the

plans regis¬

company

$4,000,000 of first mortgage 30-year bonds.
Underwriter—To be determined by
competitive bidding.
Probable

bidders: Halsey, Stuart & Co.
Inc.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Mer¬
rill Lynch, Pierce, Fenner & Smith
Inc.; Eastman Dillon,

Securities & Co. and Equitable Securities
Corp,
(jointly). Information Meeting—March 14, 1960. Bids—
Expected to be received on March 17.
Registration—
Scheduled for Feb.

National
Oct.

likely

was

the

11.

Order

Co., Lansing, Mich.

announced

supplied

plans to register an
(par 10 cents).

company

stock

common

amendment.

Proceeds—For
expansion and working capital. Office—130
Shepard St.,
Underwriter—To be'named later in New

Lansing. Mich.
York

State.

'■% '-v.-

Nedick's
12

for the

■

Stores, Inc.

was

the

common

reported

that

the

company

placing in registration

stock.

About

company's

66%

the

17,000

issue

contem¬

will

sold

the
remaining 34% bal¬
will be sold for the account of
a
selling stockholder.
Underwriter—Van Alstyne, Noel & Co., New York.
and

account

ance

South
June
to

Carolina

Electric

Gas

Co.

22, S. C.

McMeekin, President, announced planj
approximately $8,000,000 of bonds in December,

sell

1959.

Proceeds—To repay bank loans incurred for cur¬
construction program.
Previous issues have been
placed privately. Note—On
Dec. 31 Mr. McMeekin told
this newspaper he does
not know whether the bonds
will be placed
privately. He expects them to be sold
this
summer; the precise timing will be
subject to mar¬
ket conditions.

rent

Southern

late

Mail

100,000 shares of

plating

Inc. /

that

Proceeds—For the expansion of
facilities.
Office — Maspeth,
Queens,

facturing

(jointly); Morgan
(jointly).'

announced

was

reported

by amendment.

Co.

by Philip A. Fleger, President
Board Chairman, that the
utility's sole financing in
is expected to consist of
$20,000,000 of non -convert¬

Dec. 9 it

Electric

was

Generating Co.

announced

(6/2)

that this

company plans regis¬
$40,000,000 of 30-year first
mortgage bonds.
Underwriter
To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart
& Co.
Inc.; Merrill Lynch. Pierce, Fenner & Smith Inc.,
and Blyth &
Co., Inc. (jointly); Morgan
Stanley & Co.;
White, Weld 8c Co. and Kidder,
Peabody & Co. (jointly),;
Eastman Dillon, Union
Securities & Co.; Equitable Secu¬
rities

tration

with

the

SEC

—

Miami, Fla.

derwriter—None.
Georgia
Dec. 9 it

Power Co.

was

Boston

31,

that

Corp., and Drexel & Co.
(jointly); The First
Corp. Information Meeting—Scheduled for
May
Bids—Expected to be received on June 2.

1960.

Registration—Scheduled

(11/3)

announced

the company

plans regis¬
$12,000,000 of 30-year first
mortgage bonds
with- the SEC.
Underwriter
To
be
determined by
competitive bidding. Probable bidders:
Halsey, Stuart 8c
Co. Inc.; Morgan
Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities
&
Co.
(jointly); Blyth 8c Co., Inc., and
Kidder, Peabody & Co,
(jointly); The First Boston Corp.
tration

Transcontinental
Sept. 29

was

for

uled

for

Power

9 it

tration

was

with

Co.

(7/7)

announced

the

SEC

that the company
plans regis¬
$5,000,000 first mortgage 30-

market

announced

twice

mortgage bonds, and
ceeds—To
its

Registration—Sched¬

Sept.

26.
Bids—Expected to be received
Information Meeting—Scheduled
for Oct. 31.

Gulf
Dec.

come

raise

Transval

that
1.960

common

permanent

1960 expansion
program.

April 29.

Gas Pipe Line

—

Nov. 3.

Proceeds—For

Price—To

was announced stockholders have
approved
proposed offering to stockholders of
150,000 additional
shares of capital stock
(par $10) on the basis of one
new
share for each four shares held.
Price—$40 per
share. Proceeds—To increase
capital and surplus. Un¬

(4/7)
that this

Last

Office—130

Halsey,

bidders:

Sept. 14 it

—To
sition

issue of

by competitive bidding. Probable
Stuart & Co.; Eastman Dillon, Union

announced

bonds/

new

Independent Radio, Inc., Lansing,' Mich.
" >
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock
(par 10 cents). Price

determined

First National Bank of

Prospective Offerings

public

Union

(2/25)
the

that

announced

was

—

Alabama Power
Dec. 9 it was

initial

privately.

55,000 shares of

general corporate purposes. Office

tion

stock

mon

$4,500,000 of

chain

Dec. 2 it

Manufacturing

its

was reported company received
approval from
the Territorial Public Utilities Commission
to issue about

—

Dec. 2
stock

planning

Telephone Co.

Jan.

Duquesne
common

—

Aug. 3 it

Nov.

and 40,000 shares of
preferred
At par.
Proceeds—For

Young

Hawaiian

House, Inc., Lansing, Mich.
Aug. .31 it was announced company plans to issue and
§ell 100,000 shaies of common stock
(par 10 cents). Price
—To be supplied by amendment. Proceeds
To build

Underwriter—None.

Western Wood Fiber Co.
March 5 filed 100,000 shares of

Co.

Coffee

program of national distribution and for
working
capital. Office—373 Herzl St.,
Brooklyn, N. Y. Under¬
writer—None. Offering—Expected in
March;
•

-.0.

Machine

•

the company

Statement effective Aug. 11.

April 21

Harvey

Corp.

the

with

and

funds

company plans to
the sale of first

preferred stock.
for

the

Pro¬

financing
Office—Houston, Texas.

of
»./

Electronics

Corp.
official, announced

F. Downer, an
on
Jan. 8 that
Norman C. Roberts
Co., San Diego 1, Calif., and the Los
Angeles office of Sutro & Co.
(home office: Saiv Fran¬
cisco)
"may be contacted
regarding any and all in¬
quiries with respect to the
stock."

issuance and sale of Transval

Number 5918

191

Volume

Commercial and Financial
The
Chronicle

(377)

The

Indications of Current
Business Activity
Indicated Steel operations
Equivalent to—Steel ingots twid castings

Jan.23

(net tons)——

Ago

Jan. 23

§2,712.000

72.6

2,041,000

2,056,000

to stills—dally average (bbls.)
Jail
Gasoline output (bbls.)
;
Jan.
Kerosene output (bbls.)-----.-Jan.
pistillate fuel oil output (bbls )
Jan.
Residual fuel-oil output (bbls.)
Stocks at refineries, bulk terminals, In transit,.In pipe lines—
Finished and junfinished gasoline (bbls.) at
jan.
Kerosene (bbls.) at—
jan'
Distillate fuel oil (bbls.) at_
Residual fuel oil (bbls.) at
Jan.
Crude runs

7,123,375

7,051,835

DEPARTMENT

7,975,000

8,245,000

SERVE

28,254,000
2,362,000

28,689,000

13,643,000

*6,939,000

14,532,000

6,945,000

7,549,000

188.966,000

2,731,000
13,821,000

7,240,000

181,250,000

26,771,000
'148,679.000

49,563,000

160,487,000

49,938,000

53,882,000

59,991,000

591,515

503,618

jan

$415,600,000
225,900,000
189,700,000

jan

jun, l4

Federal

483,012

641,972

474,330

101,200,000
130,200,000

$313,800,000
.

125,058,000

135,000,000

176,525,000

42,600,000

84,300,000

All

41,300,000

57,700,000

9,175,000

institute:" *.

7,325,000

401,000

320,000

dun

—

Jan

Pig iron

(e.

:——

—-

Lead

Straits
MOODY'S

121

14,150,000

292

242

6.196 c

6.196c

$66.41

Jan. 12

$41.50

Jan. 13

$66.41

33.800c

31.100c

30.925c

12.000c

13.000c

12.800c
13.000c

12.500c

26.000c

24.700c

26.000c
99.500c

99.250c

Jan. 19

daily

81.27

80.67

V 79.79

Jan. 19

83.28

85.04

83.40

83.79

87.32

87.45

87.72

85.07

85.46

92.79

83.28

83.40

83.53

78.32

90.06

94.41

78.90

Jan. 19

81.29

81.42

81.54

88.81

83.28

83.53

83.79

89.64

Jan. 19

■:

85.59

85.98

91.91

MOODY'S bond yield daily averages:
U. S. Government Bonds

Jan. 19

Average corporate

4.44

Jan. 19

4.51

4.62

—

Public

:::::::::::::::

—;

Jan. 19

Group

Utilities

Jan. 19

Group

Jan. 19
Jan. 19

Industrials Group

MOODY'S

commodity

Jan. 19

index

4.91

4.88

Production

4.58

4.75
4.90
5.28
5.06

4.50

•

5.08

5.33
5.07

4.92

4.90

4.74

380.5

7.;

•

4.88

377.5

372.7

385.3

Total

sales

York

Total purchases

261,488

138,521

329,400

424,821

450,586

111.46

111.61

111.70

InTtlafed "on The

100

(per

Other sales
sales
Total round-lot
-

Total

Insurance

2,189,810

(200)

VEHICLE
IN

FACTURERS'

1,431,270

Number

passenger

1,734,796

2,386,520

2,123,670

1,371,090

Number

of
of

219.620

380,040

349,080

208,370

36,400

211,240

300,530

570,235

826.895

710,645

413,200

59.920

107.330

93.850

81,600

506.944

788,220

653,530

361,660

895,550

747,380

443,260

3,249,535

NEW

225,240

Dec. 25

Total

14,000

264,130

2,052,840

number

566,864

3,736,315

ctf'

29.000c

saIes

_Z'

0<m,",!°u purchases
Number
of

by dealers

Customers' short
Customers', other

sales

Dollar value

Dec. 25

sales by
Rh

Short

Gec- 20%

of shares—Total sales
sales

Dec. 25
Dec. 25

other sales ZZZZZZZZZZZZZZZZZZZZZZZZZ
°und-lot purchases
by dealers—Number of shares

0trv^.oand lot stock
ange and

sales on the n. y.

round-lot

Total
^Hal

account

round-lot

stock

Dec. 25

Stocks

ZZZZ
ZZ""
ZZZZZZZZZZZZZZZZ— Dec. 25
IAPAnE PRICES, NEW SERIES--U. S. DEPT. OF

*J°tai sales
LABOR

Commodity
Ah

n947-49

1.269,679

1.802,745

1,519,852

$92,607,588

$82,178,327

1,184,808

1,706,960

1,368,678

4.018

6,880

12.207

4,279

1,180.790

1,700,080

1,356,471

$82,164,421

$69,545,531

gure-

cent.a pound.

3.17

5.09

4.60

4.01

4.04

3.87

3.57

4.00

2.83

2.54

3.28

3.38

3.34

FROM

MANU¬

December:

£8,635,00<

31,127,000
32,282,000

28,031,00<

22.025,000

27,794,000

23,912,000

23,686,00<

.77

$780,918,826

$808,291,666

617,366,563

625,821,487

78,775,316

87,023,602
67,091,965
50,000,000

GREAT

BRITAIN

LTD.—Month
(BUREAU

Dec.__

MINES)—

(per

26,100,000

(barrels).

month

(barrels)

cent)

EARNINGS

■

CLASS

300.210

464,070

347,160

November:
revenues.
.

expenses

17
after

charges

(estimated)

MANUFACTURING
of

464 070

347,160

550,650

511,630

5,476,329

,__2
I__IZIII

Inventory
.Truck and

Bus Tires

Shipments

Tractor

____''

_ZZ

;

Implement Tires

(Number

640.450

8,939.200

11.554.720

16,097.920

13,761.300

11,911.740

16,681.080

14,401,750

Tread

119.0

119.4

85.1

85.7

91.5

105.6

105.2

105.5

109.0

89.1

89.4

103.2

128.6

128.5

127.3

Jan-12

320,264

989,796

not

capacity

reported

since

148,570.970 tons

introduction

Ureight from East St. Louis exceeds

814,49

3,096,993

4,391,930

3,318,6(

9,088,222

8,371,92

53,856,000

42,566,000

EXPORTS

AND

•

49,653,000

28,841,000

40,008,0(
40,585,0(
29,352,0(

$1,479,000
1,391,800

$1,598,9
1,141,8

IMPORTS

CENSUS —Month

.•

Oct.
'

$1,476,200
1,204,800

____

from

East

m^ ci«mr,TTjfVtra^e
ing session of London

2,898,6t

28,856,000

7—

fieight

3,915,470

41,890,000

(pounds)

'>R.evis®d figwre. tEstimated totals based on reports from
f ? 1957.
95^. °£. secondary tin consumption in 1957
^Domestic five tons or

\*here

303,96

3,755,874

oerf

annual

9,917,968

(000's omitted):

Exports
Imports

209,36

*919,675

(Camelback)—
(pounds)

STATES

BUREAU

267,364

243,399

__Z_Z^_ZZ
ZZZ-Z
~~
~

;

Rubber

Inventory
118.9

Bus

1,023,44
1,211,07
2,982,93

Z_ZZ
InnerZ

Production

86.3

1,546,549
1,509,721

2,863,611

(Number ol)—

Shipments

9,319,630

981,919
1,259,437

3,137,422
178,516

Inventory

380,430

7,181,55

17,419,87

ZZZZZ

Inventory
'
Passenger, Motorcycle, Truck and

6,764,94

9,374,262

20,287,143

of)—

Production

8,722,325

7,088,030
21,995,753

(Number of)—

Production

287,725

583,160

80,341,76
63,000,00

November:

Shipments

357.020

81,969,66

ASSOCIATION

Shipments

285.840

396,240

$809,652,81
623,805,87;

Passenger Tires (Number of)—

285.840

300.210

24,528,00<

ROADS

56,366,052

$44,494,109

new

3.16

5.03

41,000,000

861,764

$65,892,943

8Includes 951.000 barrels of foreign "ude^ tNumb€jr of orders
where
M^thh Tn
** against Jan. 1, 1959 basis of 1A7'^3T^®erecj basis at centers
we h fr Ixn'estmem Plan.
aPrlme Western Zinc sold on delivered ow*
•hf
1

3.08

(214)

income

866,043

91.6

—■

$2.25

Dec.:

railway operating income before charges

$47,440,763

119.1

—

commodities other than farm and foods.

°f Jan

884,168

$65,892,943

128.0

agar*

$2.25

(AS¬
SOCIATION OF AMERICAN RRs.)—Month

UNITED

74.000c

$2.25

Net

-^,!1

—7—

35.250c

74.000c

Net

100):

Group—

commodities
products

24.700c

35.250c

74.000c

^___.

Production

D( C- "5

24.700c

35.250c

£24,773,000

(barrels)
from mills

Tubes

26.800c

25.155c

Tel.)

Shipments
n,ip

26.800c

£34,471,000

BANK

end

RAILROAD

stock

•

$1.45000

27.255c

86,52(

Capacity used

of members (shares):

sales—

$1.45000

November:

Shipments

transactions

Short sales
Other sales

$1.45000

$1.40000
$1.75000

aver¬

Inventories

dealers—

$1.30000

$1.40000

534,84(

INC.—Month

DeCi
Gec- 25

sales

$1.30000

205

CEMENT

Month of

RUBBER

*?ec> 25

orders—Customers' total sales

$52,000

-$77,000

$1.75000

Production

"(customers' sales)—

$77,000

32.590c

400

ISSUES

MIDLAND

Gec- 25
Dec. 25

29.500c

coaches

CAPITAL

PORTLAND

stock

29.000c

29.500c

lots)__IZ

SALES

vehicles

operating

Dollar value

29.000c

29.500c

motor

operating

Number of shares

32.590c

Taxes

securities exchange commission
by dealers (customers' purchases)—t

32.590c

621,704

2,039,590

?iajsge
°(

$35,000
$220,182

47,875

3,171,580

98.976c

$35,000

$216,611

255,342

3,618,670

rwrf

101.042c

$35,000

303,422

2,536,690

99.153c

$2.80380'

76,077

Total

89.935c
76.167d

$2.80268

496,189

Total

91.375c

80.250d

572,666

321,640

specialists

91.375c
80.250d

trucks.

1,717,950

and

£71.253

motor

501,330

——

£90.179

cars

Dec. 25

—

'£90.162

YIELD

ASSN.—Month

226,040

32,320

.■

12.000c

£74.342

2,670,250

11.500c

13.000c

£94.935

;1;V

S.—AUTOMOBILE

1,145.050

Production

■

12.500c

13.000c

._~ZI"ZZ_ZZ

371,080

475.110

dealers

12.500c

£95.190

3.38

FACTORY'

3,143,560

lot

£72.327

»•

Tel.

___,

311,960

£72.390

2.72

2,224,730

sales

12.800c

£72.202

ZZIZZZZ-Z
Amer.

1,752,590

336,600

13.000c

12.800c

£72.146

£72.452

;

335,460

304,280

Z-ZZZZZZZZZZZZ

13.000c

12.323c

(10)

Z—ZZZZZZZZZZZZZZZZ-;
Dec. 25
°?k transactions for odd-lot account of odd,

12.523c

;

2,588,854

Total

£220.732

$214,091

STOCKS—Month

(125)

—Dec. 25
Dec. 25

£241.381

£72.696

weighted

AVERAGE

2,051,060

22,200

———

——

27.041c

£220.994

_Z_

Banks (15)

transactions for account of members—

purchases.^.

Short sales
Other sales

28.583c

30.481C

£250.583

£239.756

;

229.840

.——Dec. 25
Dec. 25
Dec. 25

34.060c

30.801c

lots)

ingot

1.504.956

235,030

——

20,960
32,452

£255.443

pound)

WEIGHTED

PLANTS

2,529.380

grade

COMMON

MOTOR

1,798,999

small

(per

Railroads (25)
Utilities (not incl.

floor-

_ZZZ—Z—Z—'
ZZZZ ZZZZZZZZZZZ Z
ZZZZZZZZZZZZZZZZZZ

—

*28,571

Average

212,830

Total purchases

92,140

*20,373

30,598

33.724c

pound)___;

Industrials

110.57

Dec. 25

Short sales

171,253
2,972,226

*26,570

$2.79845

*'Nickel

416,078

Dec. 25

Z_ZZ

Other transactions

113,202

20,955

Aluminum, 99% grade primary pig
Magnesium ingot (per pound).

456,855

99%

(per

age

303,880

9
9

grade

Aluminum,

316,150

Dec. 25

—

Other sales.
sales

•

ton)

(per pound,

MOODY'S

299,494

Dec. 25

—

Short sales
Total

(per long

(per pound, delivered ton

97%

Number

____

1.-97

"1,766,882

IZ_____ZI
I_Z~Z_Z

Dec. 25

Z_~_ ~
initiated~~off"the floor-

2.36

2,03

pound)___

Straits

Dec. 25

„

l:$2.19
-

28,875

(check)___

Dec. 25
.

Other transactions

Total

New

Cobalt,

4.28

221,382

Dec. 25

2.38

■

;

Cadmium

4.44

4.71

;

account of membi rs, except
odd-lot dealers and specialists
Transactions of specialists in stocks in which registered—

Other sales

•

Cadmium

•

ior

Short sales

QUOTATIONS)—

Antimony (per pound), bulk Laredo___
"Antimony (per pound) boxed Laredo_.
Platinum, refined (per ounce)
:_

4.87

&.34
•

293.514

Jan. 15

Total purchases

$2.23 ;■
■

2.04

-116,643

(per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)
;fAntimony, New York, boxed____

index—

average—JOU

transactions

$2.26

39.6

1,906,-595

_.ZZ~I "~Z

Gold

4.42

Jan.
Jan.

40.8

round-lot

•

y;.39.6

the

',7' " ,.7'.. ",.':
''7-; "v.-".'.'
refinery fper pound)

Exports refinery (per

Tin,

4.22

4.91

Jan.

(tons)

Unfilled orders (tons) at end of period
DM

M. J.

Sterling Exchange

4.11

4.78

Jan.

(tons)

Percentage of activity

(E.

40.2
■'

•

---^"ZZZI'ZZZZ""
tons)_____^l.^ZZZ_:-_.ZZZ"~ I
tons)__
___Z~Z Z_^.__Z~~~

short

Bismuth

oil. paint and drug reporter price

«.

78.01

39.9

2.42

(per pound)
trZinc, London, prompt (per long ton)_____
t f Zinc, London, three months
(per long ton)„
Silver and
Sterling Exchange—
Silver, New York (per ounce)__;
Silver, London (per ounce)

national paperboard association:
Orders received

/ 7 7,

96.29

80.19

-:
-.40.1,'

•

;■ 39.8

ttThree months, London
(per long ton)ZI~IZ
(per pound)-i-East St. Louis_:

4.41

4.60

4.78

Jan. 19

—

Railroad

4.92

(in

V-

Zinc

3.93

4.61

Baa

Common, New York (per pound)
Common, East St. Louis (per pound)
T-London, prompt (per long ton)

83.91

Jan. 19

Public Utilities

Group
Group

MINES)—"

$88.04

95.44

;

(in short

89.92

78.20

Group

'40.9

^SZmc, prime Western, delivered

Average corporate

Industrials

40.5

^iZHZZ_ZZZZZZZZ—
,'

81.19

Lead-

99.000c

averages:

U. S. Government Bonds

Raiiroad

months, London

11.500c

Jan. 13

at_

271,088

$88.98

98.98

ZZ~~~'
7^London, prompt (per long ton)______I_ZZ
TfThree

12.000c

13.000c

;

Copper—

12.800c

13.000c

242,635

13.000c

11.800c

13.500c

(in fine ounces)__
(in fine ounces)__-__•

PRICES
December:

27,925c

11.800c

195,313

$91.53

Z~I
" ~Z """" Z_~r

________

(BUREAU

METAL

28.625c

31.075c

244,060

180,772

goods;_7_/J:__ZZZZ2ZZZZZIZl.ZZZ'"

Lead

33.600c

V 253

"J '

Copper (in short tons)

$40.50

33.450c

DEPT.

OUTPUT

Silver

$66.41

$47.17

260,190
'

-Mine production of
recoverable metals in
United States:."7..".■

U. 'S.

—

.Month of October:

12.000c

I Jan.
I Jan.

prices

METAL

294

6.196c

143

>. 1 *176

HOURS—WEEKLY

goods

...v

6.196c

(AMERI¬

manufacturing

Gold

285

190,237

CONSTRUC¬

Durable goods

13,324,000

Jan. 13

(New York)

bond

298

Jan. 13

(primary pig. 99.5%) at

tin

' " *112

Jan. 13

Zinc (East St. Louis)

Aluminum

546,000

14,308,000

;•

■f;

AND

' All manufacturing

Jan. 13

(St. Louis) at
(delivered)

JZinc

77,010

145

264;

STEEL

ESTIMATE

Domestic

refinery at

(New York)

Lead

Jan

Electrolytic copper—
Domestic refinery at
Export

m. j/quotations):

EARNINGS

Zinc

composite prices:
(per lb.)

metal prices

132

14,236,000

jan. 14

Finished steel

(per gross ton)—i
Scrap steel (per gross ton)

Nondurable goods
.

_______

iron age

422,000
,

jan. ig

„

FAlLLKIiS (commercial and industrial)
bradstreet, inc
<____-—

INSTITUTE

.Hourly earnings—•
-••

9,000,000

r '

(in 000 kwh..)—-__—

Electric output

STRUCTURAL

Nondurable'

-■

jan.

department -store sales tndex—federal reserve
system—1047-40. aver age. ==100
jan>
edison electric

v
'-'7-

8,195,000

jan.

151

•

adjustment—

All manufacturing ___._______.i7_
Durable goods
__i_" ~r_'1 '"TvTTr"*

48,110,000

output (u. s. bureau of mines):

Bituminous.coal and. lignite (tons)'—
Pennsylvania anthracite (tons)—-———

75,503

77,440
176,157

Average^lOO—

Hours—

128,415,000

Weekly earnings—

$501,583,000

178,800,000

62,346

154,419

~~~~
SALES—FEDERAL RE~-

Nondurable goods

$231,400,000

ouo
69,666

.91^404

LABOR—Month of December:

550,666

568,646

88.900,000

147,100.000

Jan. 14
.

coal

seasonal

FACTORY

Ago

6f
-

■

Year

Month
1

(tons

(tons)

•

Month^

TION)—Month of November:
Contracts closed (tonnage)—estimated
Shipments (tonnage)—estimated

446,903

grades

of that date:

are as

December:

AVERAGE

Jan

Private

;

Without

25,363,000
119,107,000

output all

STORE

IABRICATED

190,024,000

29,013.000

___

of 2,000 pounds)

SYSTEM—1947-49

Month

CAN

193,948.000
26,705,000
143,031.000

-Month

Adjusted for seasonal variation

3,102,000

Durable

construction

construction——
Public construction'——---'---i*..—
State and municipal—'.———^—

smelter

pounds)

8,369,000
29,613,000
3,216,000
14,129.000

118,396,000

news-record:
Total U. S.

INSTITUTE, INC.

Stocks at end of
period

engineering

—

zinc

2,000

7,067,825

29,230,000

ASSOCIATION of american railroads:
Revenue freight loaded (number of cars)—
Revenue freight received from connections (no. of cars)—Jan.
engineering .construction

ZINC

Shipments (tons

7.111,925

of quotations,

cases

December:
Slab

'"2,727,000

or,

either for the

are

Latest

AMERICAN

93.3

production and other figures for the

Dates shown in first column

that date,

Ago

95.7

output—dally average (bbls.

month available.

cover

Year

„

Crude oil and condensate
42 gallons each)_

clva

statistical tabulations

Month

Week

§95.2

month ended

Week

(per cent capacity)

petroleum institute:

KIC AN

iMr

week

Latest

iron and steel institute:

.MFRICAN

following

latest week

125

6t.

Louis

but less than carload

exceeds

0.5c.

^*P.o.b.

Fort

S16!11 and bid and ask quotations

Metal Exchange.

companies accounting'!
and 97% of total stoc
lot

boxed.

Colburne,

§§Delivei

per long ton at moi

126

The Commercial and Financial Chronicle

(378)

OBSERVATIONS...
Continued from page 4
al"

and

applied

ear,"

"by

He freely states that his valueappraising methods are not at all
perfect, but constitute a serious
effort to

apply some factual disci¬
pline in lieu of the artistic "ear(so
often,
in this
reviewer's opinion, merely an
alibi for superficiality).

playing"

Unfortunately, space does not
permit a detailed description of
his
Value
Line
technique.*
Briefly summarized, it is based
on
the ratings revealing the re¬
lationship applied to individual
issues

the past 20 years, be¬

over

tween

earnings and dividends on
hand, and market price

the

one

the

shows

of-order,
previous

The

other.

the

Value

doubt, as freely granted by
Bernhard, there are other
flaws.
In any event, the volume,
with its logical approach, repre¬
sents, at the very least, a tre¬
mendously needed
step
in the^
right direction. For it is based on

one's

relevant-to-

the

value

factors

the

activity;
gadgets
fluc¬
tuations
of
the
market; which,
with
its
domestic psychological
tides, is unfathomable.
in

portfolio

of the tempting

place

devoted to measuring future

which

advertising

estimated for the future at

tors'

that
to

has

normal

according

experience.

past
It

been

seems

mental

that

funda¬

flaw-

logic is involved
in relying
on
past performance
in capitalizing earnings, and dou¬
ble-discounting an issue's trend.
The important factor of past an¬
ticipation of the future having
been

already reflected in the past
present price-earnings ratio is

and

left out of account. For example,
reflecting the expectation of un¬
avoidable
lower
coal

industry,

Coal

difficulties

trade

earnings

the

"X"

years

five

Company

and

anthracite

After

counted

the

dis¬
in¬

the

company's earnabout, entailing the
stock's decline to 10, continuation
of the previous low price earnings
ratio at the then price of 50, rep¬
resents a duplicate, i.e., but out*Mr.

the

Bern hard

Value

Founder

Line

inves¬

affiliated

the

lights

investors' continuing
spoon-feeding, of the

for

need

investment facts-of-life.
In

fact,

volume

title

"Investor"

word

and

Investment

Editor

that

•;

connection,

who

at that time and to be discovered
in the future

lion

cubic

estimates

ently increased.
the

was

So,

ticker

tape—

believe

clare

columnist

wishes

disclaimer

his

de¬

personal

objectivity in the above.

There

which

can

out

investors

general

are

the

pocket.
from

Such

in¬

one

group
investors
in

when

faring well cannot be

enforced

successfully
by
regulatory Commissions.
And in the

the

Federal

will

the

readers must realize by
now, I am a long-time proponent
of the Value approach.
On the
other hand, perhaps any bias con¬
tributing to this enthusiastic re¬
action, carries the advantageous
my

offset

of my

are

familiarity with the

the

confidence

Commission

the tradition of

ing

continue

and

adequately meet¬

service.

about

has

production

The

view

of Reserves

trillion

is,

over

let's

look

The

the

gas

reserve

moment.

joint committee

of the

American

Gas

that

proved
the

on reserves

Association

Dec.

recoverable

United

States

31,

1958,
of

reserves

were

254

tril¬

lion cubic feet. Based on
produc¬
tion in that year of about
ll1^

trillion, the ratio of reserves to
production is 22. New figures, as
of

Dec.

able
no

31,
a

1959,

couple

ratio

the

of months

important
fact

But

reserves

nation's
while

are

reserves

ours

about

western's total contracted sales of
560

million, cubic
the

feet

southern

for

day—

per

line, 200 on
larger than

the northern—are 25%

the earlier Midwestern

project de¬

nied by the FPC in 1958. Further¬

the controversial center

more,

sec¬

tion between the two is not

built.

But

available

Canadian

gas

Chicago market
exchange agreement

art

Michigan

This project is

reasonably typi¬
industry's proposed ex¬
1960.

source

of fuel

each
and

case,

continued

kets

must

made

mesh, and
are not

in¬

the

'60's.

the

year

will

run

little

Probably

under

the

project of 1960 to

ern

Gas

billion.

interesting

the

segment

Midwestern

most

is the north¬

pipeline

Transmission

Company, subsidiary of Tennessee
Gas.

past, and I'm

The
We

industry is

lems,
dead

when

great industry

facilities

will

built

three

Trans-Canada

Ltd., which
line from its

will

Pipe
build

main

line

Midwestern

$52

million

Pipe

and

Company

;

increased

Tennessee

nearly twice

36'%,

Gas

fast,

in¬
or

63%.

and

than

the

reserve

Reaction

Up to

Reserves

Both

Sides of the

Border

has
a

one.

position

other export

First,
there

reserves.

substantial

are

reserves:

have been talking only

about U. S.

addition,

volumes

Canada, and to

Mexico

excess

needs

reserves can

tional

boundaries

degree
of the long-

those

These

this

Power

countries.

cross

and

interna¬

find

ex¬

now

the

well

applications..

country

Federal

has

already

approved

the Midwestern project
31, 1959. The pipeline is

Oct.

inches

504 miles

diameter

long. Starting at
with

the

and

in¬

Trans-

Canada spur at the
boundary near
Emerson, Midwestern's line will
south

run

down

the

Red

River

Valley in Minnesota, swing east to
pass

about

miles

northeast

Minneapolis and St. Paul, and end
at

Marshfield

Central

Wis¬

consin.

There, 158 million cubic feet of
pipelines initial capacity of

mar¬

well-

for

come

continued

healthy growth both actual and
relative in the coming decade. -v.
the

address

Investment

sored

by
Curtis, at

Mr.

Symonds

before

Banks

for

Jan.

Cooperatives
19

of¬

$109,500,000 of

5.15% consolidated collateral trust
100%.

The

offering

John

1, 1960, at
made

was

Knox,

Fiscal

Proceeds
will

ward the
of

from

the

financing

applied by the banks to¬

4%%

consolidated

1, 1960.

Gruntal & Co. Offices
Gruntal &

Co., 50 Broadway, New

York, members of the New York
Stock Exchange,
announced
the
opening of the following branch
.

addition,

from

in the

comfort

the predictions of
experts
whose business it is to
make longrange studies on what
in

the

words, ultimate

future,
reserve

customers, including:

service

Petroleum

Utilities

Baltimore

Norbert

and

Guildford

Baltimore, Md., with
L.
Grunwald, resident
Baltimore,
Mindess, resident

and

Co.

an office in the Diplo¬
Hotel, Hollywood Beach, Fla.,
with John E.
Greenia, as resident

manager.

cities

••

been

formed

with

Penn Center

Plaza.

Of-'

fic

are

e r

villages

probably which Midwestern will serve di¬
in
other rectly.
They are Ada, Argyle,
figures.
Frazee, Hallock, Hawley, Lake

Alfred
We i t

knaut,

dent;

Jack

Lautsbaugh,

Douglas K. Porteous

Secretaryr
Treasurer. Mr. Porteous is Presi¬
dent

Pennsylvania

Corporation,

Funds

with
which
has also been

Mr.
asso¬

Didier Joins Staff of
North American Sees.
LOS

ANGELES, Calif.—Urban J.
has

been

appointed

gional

representative

southern

California

North

American

for

re¬

the

office

Securities

Com¬

pany, underwriter and distributor
of
the
Commonwealth group of

650

Angeles office,
Spring Street.

South

Mr.

Didier

ciated
Co. in

formerly was asso¬
Dempsey, Tegeler &
Studio City, Calif.

with

R. A. Holman
Display
At Motor Boat Show
R. A. Holman &

Co., Inc., 54 Wall

Street,

New Witter Branch

Gas Co., for service to

nine

has

with

man¬

Crookston; United

Detroit Lakes, Dilworth and War¬
ren;

po¬

Over-

Avenue, New

mat

Montana-Dakota

in the

mutual funds. He will be asso¬
ciated with John J.
Hood, regional
York, with Sam Schecter and Jack -Vice-President for southern Cali¬
Shper, co-managers; Tower Build¬ fornia in the Los
offices: 364 Seventh

ager, and

for

"growth"

Provident Mgt.
Formed in Phila.

Didier

The

termined.

true

traded

the-Counter Market.

collateral

Irving S.

smaller

appeal to the investor
in

refunding of $113,000,000

trust debentures due Feb.

Fargo,- Grand Forks, Chippewa
Falls, Eau Claire and Menomonie.

serves, that is, the reserves have
been found and their
extent de¬

earnings,
priced

ciated.

Com¬

1959

interested

group of securities dealers.

manager; a mutual funds office at
7 South
Street,

the

attractively

tential.

Lautsbaugh

will

times

Agent for the Banks, with the as¬
sistance of a nationwide
selling

pany. Northern States will substi¬
tute natural gas for
manufactured

remainder

growth 'in

Currently selling at

President;

application on file before the FPC
to buy Canadian
gas at Niagara

Second, the figures we have
been
discussing are proved re¬

vigorous

and should

it is serving

will experience

Vice-Presi¬
The

Avenues,

Falls.

that

which

Porteous,

Coops.;

Offer Trust Debs.

ing,

Power

believe

market

has mani¬
in its field

Outlook

Meeting spon¬
Paine,
Webber,
Jackson
&
Minneapolis, Minn., Jan. 14.

Another 30 million

States

company

superiority

further

offices
"An

200 million cubic feet will be de¬
livered
to
Michigan Wisconsin.
Northern

prominence

country in the manner
Midwestern's proposed
this area will
utilize
a
Canadian
gas
supply.
And Tennessee Gas has
another

day will

tunity,. The

repre¬
oppor¬

Corporation

unique investment

fested
and

CENTRAL
CORP.

;

Management

the

through

TRANSFORMER

sound

look

kets in this

which

opinion,

PHILADELPHIA, Pa.—Provident

won't

progress
I

through

the

Commission

important con¬
earnings before the

over.

ex¬

operation

making

tributions

sents

new

easy,

but

debentures, due June

days and it is

this

in the nation's fuel
economy. Fur¬

fered

ther

began the hearings which
underway
in
Ottawa,
Trans-Canada application

that

fis¬

over

inherent

growth in¬

Gas has earned for itself

port permit for the gas supply by
the
National
Energy Board
of
Canada. On Jan. 5, 1960 the board
are

than

stock

arising from public pref¬

Banks for

in less

will

This

projected

Douglas K.'

tioned only on issuance of

made

compared

last-year.
are

first shipment will
from the Florida
plant

the

challenges arise.

the project is condi¬

now

terconnection

Two other points about

pro¬

The

ahead.

and demand.

deserved

Michigan

Line

$24 million.

some

will expend

new

stability linked with
centive

1950.

than

lie down and play

This

than $109 million of

cal

last

are

50% increase

less

dynamic

million

period

million

earnings

years ahead.

discouraged by prob¬

nor

erence

In all

not

are

$7.4

year's
$1.20

$8.4

it will again

sure

in 1.960 and the years

1960, costs of estimated expansion

comparable

sharply

the

and full year sales

jected

First quarter bill¬

year,

But the

will

(fiscal*year

were-$1,962,000

regulatory problems

what
year

ings

is
businesses

for
homes,
industry. Big investments are
involved., gas supplies and mar¬

breaking

from

energy

the

double

portfolio- of

Sept. 30).

year

expects

the

ends

and

often

quarter

pected

Wisconsin Pipe Line Company.

first

record

the

through

being
will be

industry has made great
progress in spite of difficulties in

occur

that

have

average

will be avail¬ industry get
considerable

great change is anticipated.

But

increased

eight
per year since 1950, that
and above production.

pipeline

and American Petroleum Institute

report

has

definitely keeping
ahead. Incidentally, since 1950 the

range

the

rapid and con¬
tinuing expansion of the industry,
an adequate
supply of gas is vital.

picture for

easily resolved.

outlook

out¬

half-trillion each year on

average.
increased
an

gas

Increased Ratio

pipelines and distri¬

new

bution mains.

about

substantially

the

facilities in 1959—

new

biggest item being about 24,000

miles of

million.

confident

up to the problem and
that compensatory rates of return
will be forthcoming to maintain

investor

$1.8

some

CENTRAL

■

for

Winnipeg south to the Minnesota
boundary, will invest about $33

Economy

face

Power

provided

spent

creased

of the interstate

case

companies,

gas

debt

place

come.

equitable treatment of
of

increased

other

reserve

base

expansion ('of today
projected future growth.

industry

billion

As most

growth

form

stockholder's

common

gas

block

runs

Chicago, was Florida Growth Fund.
authorized
in
May,^_ 1959,
and
There is every
indication that
built and put in. service Oct. 7,:
CENTRAL has just completed
the
1959. Including both lines, Mid-

new

The

which

decade
This

ample,

straight

Tennessee

between Midwestern and

solid

than

pools

the

forms

finding

Midwestern's

first line,

dustry

compensating upward adjustment

cbmes

success

larger gas
dreamed of.

from

will

Its

growth. As I said earlier, the

A Personal Disclaimer

in the rate of return.

cost

Expansion

man

distanced production growth over
the
years.
Since
1950, for ex¬

the

shown

line

Awaiting Canadian Board's

Continued from page 10 V

Otherwise,

been

front

conscience?

In the Nation's
the

pro¬

and

Wisconsin

story.- Every

has

drillers'

anyone

possibly to soothe the publisher's

Growth of Natural Gas

case

pessimistic in a few years by
the technological advances and by

Lines

should

But in each

same

nouncement

consist¬

have

the

This

indus¬

(3) ratio of sales to net
almost twice that of
the
industry.
The keen interest1 in
the company on the
part of professional investors is
indicated by
the recent addition -of a
worth

it is needed.

second.

times that of the

try; and

day

per

pansion

Continued from page 2
one-half

cubic feet of

Trans-Canada may
have available for export, so ex¬
pansion is provided when and if
gas

360

year.

Later

spur

tion

might equal 15 tril¬
Today the U. S.
almost that, much

feet.

producing

Security

I Like Best

source,

pew

200 million

cal of the

Canada, will be very beneficial to
people of both states. Mid¬
western has a further option on

for

the

from

was

companies.

a man

perhaps the most gen¬
erally accepted authority of his
day on gas reserves, a Mr. E. W.
Shaw, estimated that the total re¬
coverable reserves already known

The

and

the

industry

bond

is inter¬

esting to recall that in 1919

Perham

Minnesota

gas

Wisconsin

the

theme.

Survey.

1,700 trillion cubic feet.

Mills,

York

Thursday, January 21, 1960

opinion, bringing another
of

the next

total ,of

supply

and

actually studying (believe it or
not) ticker tape resting on his
lap
(on skeptical
inquiry), we
realize

nation

New

Stephen.

In my

the

contains

illustration

the

estimated

this

jacket, couples this "clean" word
with

Park,
and

best-selling

another

whose

situation

ago

correctly

deterioration

dustry and
<=fings came

its

service, in direct contrast to
the serious, but highly articulate
nature
of the book itself, high¬

selling at 50, then represented the
very low-price earnings ratio of
5-1.

and

volume

have

duced

been it

has

accompanying publication of this

rate

will
pro¬

Spoon-Feeding

massive "come-on" tone of

The
the

for

Necessity

justified by a similar capitaliza¬
tion of the earnings and dividends,
a

there

banks

every

The

has

ultimately be discovered and

Line

price which would be

inclusion

investment

basis

official

total gas

cluding

Mr.

the

that U.

in¬
the 254 trillion of the
present, plus those to be found
re-discounting of the in the future, will amount to some
expected course of 1,000 trillion cubic feet. And the
p.; oil and gas economists for Eastern

events.

maintains.

Bureau of Mines

estimated

SAN

MATEO, Calif.~-Dean

Wit¬

ter & Co. has opened a branch
office at 215 East Fourth Avenue
under the management of Gordon
H. Oosting.

New York City, has a
booth at the National Motor Boat
Show in the New York Coliseum.
This is the first time an invest¬
ment

booth

banking firm has had such
at

Holman

the
&

Boat

Co.

Show.

specializes in

derwriting boating issues.

A.
un¬

Number 5918

191

Volume

The Commercial

. .
'

"!»

Tri-Continental

Dealer-Broker
Recommendations

the

Gas

No?tii

In the

report—Oklahoma

Northern

Mar.

States

Power,

IN INVESTMENT FIELD

Company, Lone Star Gas
Company Small Aircraft Compa¬
nies, Chesapeake & Ohio, Spector

Broadway, New York

Inc.,
Republic
Fireman's Fund Insur¬

Company.

ance

memoranda

Celanese,

Sound Pulp & Timber Co.— Pacific
Northwest
Company, United Pacific Buildin., Seattle 24, Wash.

Also available
Bristol

Emerson

are

Myers,

pugct

Analysis

vox

Francisco Railway-

Louis San

Analysis

du Pont, Homsey &

—

31 Milk Street, Boston
Also available are memo¬

Company,

Mass.

Studebaker Packard,
Kennamctal, First National Bank
of Boston, and Boston Isunrance
randa

Company.

Baer

United

115 Broadway,

Building,

New York 6, N. Y.

Financial Corporation—
Report—Glore, Forgan & Co.,.40
Wall Street, New York 5, N. Y.
Corporation —
Analysis—Schweickart & Co., 29
Broadway, New York 6, N. Y.
Warner

Oil Com¬

Mid Continent

Sunray

Report presented to New
of Security Analysts,
by Paul E. Taliaferro, President
--Sunray Mid Continent Oil Co.,
9th & Detroit Ave., Tulsa 20, Okla.
pany

Report

—

States

Plywood

—

Corpora¬
&

Jan. 25, 1960 (Chicago, 111.)
National Security Traders

York Society

Corporation —
30th annual report — Tri-Conti¬
nental Corporation, 65 Broadway,
New York 6, N. Y.

Public

particular

Service

Texas

Utilities,

Maine

Power,

Northern

New

Public

Indiana

120

Match

Feb.

Binday,

—

Meadowbrook Road

to engage in

Feb. 3,

Feb.

Situations,

Ward Baking

Box

(Houston,

Stock

and

Bond

Club

annual

Feb.

outing

Binday
Kahn

formerly with ; Heft,

was

Kidder &

A. M.

IncT and

Infante,

Company—Analysis

St.,

4, N. Y.

regional
Robert Shields in
with

(Philadelphia, Pa.)

Philadelphia

36th

dinner

Jan.

O'Neill

Elizabeth

Shanley will become

partner in

Manning, Shanley & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange.
On
the
same
date
William
J.

Lange, Jr.,

will

from

withdraw

Joseph Walker Changes
Joseph Walker

& Sons, 120

way, New York
the New York

Broad¬

City, members of
Stock

Exchange,

j>n Feb. 1 will admit Joseph Wal¬
ker to
em

Stock

management of J. Raymond
Manahan, Mayor of Morristown.
The firm's main office is situ¬

limited partnership. On the
date Samuel S. Walker, gen-

partner, will, become

lim¬

Corp.

Walnut Securities

GREEN

Goffman

have

-and

become

dted with
Richard

$50.00

York

Jerry
associ-

E. Kohn &

Co.,

Stock

Mr.

GO, 111,—Theodore Snyder

been appointed
regional rep¬

41) out of the net earnings for the year 1959,
payable at Room No. 3400, No. 20 Exchange
Place, New York 5, New York, on and after
February 8,
1960.
The dividend on the stock
will be paid to stockholders of record at the
close of business January 22, 1960.
W.

New York,

distributors

Vealth

per

the Capital

of business

Lin es

tates

cents

Company
Common

14,; 1960,

Stock

February 11, 1960.

DIVIDEND

j. F. McCarthy, Treasurer

authorized

per

of a dividend of fifty cents
share payable March 4, 1960,
of record

holders of Common Stock

Reynolds

WALTER

One Broadway, New

Tobacco

FOX, Secretary
York 4, N. Y.

SOUTHERN

Makers of

Camel, Winston, Salem & Cavalier

cigarettes

Secretary

COX,

New York, January 6, 1960.

Company

Prince

NATURAL

GAS:

COMPANY

Albert, George Washington

Carter Hall

•

Birmingham, Alabama

■

:
!

:
Common Stock Dividend No. 84

has

Common Stock

Dividend

quarterly dividend of 55c

per

share has been

Directors of Central

Corporation at its

1960,
divi¬

meeting held on January 14,
declared a regular quarterly

twenty-four cents (24c) per
share on the Corporation's Com¬
mon Stock. This dividend
is pay¬

1960

ord

February

holders of

29, 1960, to

March 5,

stockholders

the close

rec¬

of business

A regular quarterly divi- jj

February 15, 1960.
W. J. CONRAD,

dend of 50 cents

per

has been declared
Common

March

14,

£
jj

close of business

the

■

Febru-

ary

pay-

1960

stockholders of record
on

29, 1960.
W. S. TARVER,

Secretary

Winston-Salem, N. C.

Dated: January 16, 1960.

January 14, 1960

stock¬

record January 29, 1960.
lkroy J. scheuerman

Secretary

Central and

South West

Corporation

1090

underwriters
the

Common-

group of mutual funds.

engage

To the Holders
the

79th

Notice

Lindzon, Secretary.

formerly with H.

Serving the Southeast through:

Mr. Shore was

Gulp Power Company

Mississippi Power Company
f

February 1, 1960.

Southern Electric

Generating Company

L. H. Jaeger,
Vice President and Treasurer

Southern Services, Inc.

hereby

1979:
given

TENNESSEE
TRANSMISSION

1968) of Cerro de Pasco Cor¬
poration that the conversion
price at which such Debentures
may be converted into Com¬

Co.

Hentz & Co.

(convertible until December 31,

Corporation
adjusted from $52.14
$49.43 per share, effective
of the close of business on

HOUSTON, TEXAS

has been
to
as

January 15,
;

300

DIVIDEND

Park Avenue
York 22, N. Y.

regular quarterly dividend of 35c per

share has been declared

the Common

Stock, payable March 15, 1960, to stock¬
David

Secretary

New

The

I960.
Michael D.

GAS

COMPANY

Stock of the

mon

offices at
Street to

Georgia Power Company

of record at the close of busi¬

of the 5^2% Sub¬
ordinated Debentures Due 1979

Opens

Jerry

Alabama Power Company

the holders

and

THE SOUTHERN COMPANY SYSTEM

quarterly dividend of
35 cents per share on the
outstanding shares of common
stock of the Company, payable
on
March 5, 1960 to holders
a

Vh% Subordinated

Debentures Due

Secretary.

formed with

Vice-President;

(INCORPORATED)

clared

Cerro de Pasco /

Co.

Fla.—A. P. Shore &

Northeast

THE SOUTHERN COMPANY
The Board of Directors has de¬

Wilmington, Delaware

NO. 50

holders of record

February 11, 1960.

J. E.

Natural Gas Company,

able

the £

Southern

Stock of

Secretary

dend of

able

declared

the Common Stock of the

j
jj
jj
5
jj
jj
£
jj

QUARTERLY DIVIDEND

Vice-Pres¬
and Treasurer; Harold A.
Secretary; and Von Perry

been

■

La.—Policyhold¬

Webb,
Heatherly, Assistant

Foundry Company

of record at the close

to shareholders

1960.

open,

JOHN W. BRE"\T NAN. Secretary & Treasurer

share has been
Stock of this

payable March

Company,

remain

—

smoking tobacco

—

securities business.
Officers are Albert P. Shore, Pres¬
for the Midwestern
North American Se- ident and Treasurer; R. G. Shore,

Ulltic;s' Company,
11

($.75) (Canadian)
on

and

Co., Limited
seventy-five

Dividend

and declared

amount
payable
on
Class
"A"
Coupons (Payment No. 64), and a
$5.00 to be payable on the capital
$15.00 to be the amount payable on
"B"
Debenture
Coupons
(Payment No.

Distribution Corp. is engaging
in a securities business from of¬
fices at 8149 Florida Street.
Of¬
ficers are Richard O. Rush, Presi¬

MIAMI,

For Nor. American Sees.

emtory

will

Bay Mining

and Smelting

ness

A. P. Shore Co.

Snyder Regional Rep.

resentative

of Directors has fixed

ers

ident

Exchange.

okar will be in
charge of dealer

las

DIVIDEND NO.

li. J.

WESTERN
COMPANY

BAY

and

relations.

the outstanding Common Stock
1960,

the

dividend

Clinton Street, members of the dent; Robert E. Wilder,

e\v

transfer books

The

Debenture

stock,

Secretary-Treasurer.

BATON ROUGE,

N. J.—Alfred F. Tokar,

Pplefield

picnic and outing at White Bear

February 11, 1960.

CORPORATION

Join Richard E. Kohn
A.

of this Company, payable March 15,
to stockholders of record on March 1,

($.50)

Walnut
Securities Corporation is conduct¬
ing a securities business from of¬
fices at 220 South 16th Street. Of¬
ficers
are
Albert M. Zlotnick,
President; and Louis P. SSnza,
Pa.

PHILADELPHIA,

Form Investment

lonroe

Board of Directors this day declared
quarterly dividend of thirty cents. (30<f)

Twin City Bond Club 39th annual

DIVIDEND NOTICES

ned partner.

NEWARK,

The

ated in Boston.

partnership.

same

Exchange, an¬
nounces
the opening of an office
at
12 DeHart
Street under the
York

New

Foundry Company

The Board of Directors has

and South West

Incorporated, member of the

Burr,

States Pipe and

per

Company, payable

Bellevue-

invest¬

J.—Coffin

Hollywood

the payment

The Board of

Association

New York, N. Y., January 13," 1960

Mid-

annual
the

securities field.

MORRISTOWN,

United

outing at Western Golf & Country
Club.
r

Stratford.

prior business experience con¬
six years in the

(Hollywood

Annual Convention

and

declared

headquarters

1960

Bankers

Beach, Fla.)

Traders ^Association of
Michigan
Summer

Security
Detroit

Snyder
comes
to North
American Securities from the

ment

Island, N. Y.

27-Dec.

Hotel Atlanta Biltmore.

ernors

Mr.

sisted

Hotel

the

(Atlanta, Ga.) A

1960

Salle

Co., Inc.

Manning, Shanley Admit

Burn

Brae

Investment Traders Association of

Class

Coffin & Burr
On

Houston

the

Tex.)

Club.

19, 1960

14,

His

President
and
F. Collins,

Binday,

Nov.

sam¬

Vice-President and Secretary. Mr.

Ronald

Fisher's

Investment

Hudson

1960

Co.,

Treasurer, and Justin

securities business. Officers are

the

(Boston, Mass.)

office of Hugh W.
Long & Co. in Elizabeth, N. AJ.,
where he was on the sales staff.

dinner in

United States Pipe

RAILROAD

associated

annual

June 16, 1960 (Minneapolis, Minn.)

Cadillac

Sheraton

19,

Chicago office, 208 South La
Street.

the

Hotel.

Feb.,

—

—Herzfeld & Stern, 30 Broad

York

(New York City)

Ballroom ;r of

9-10,

tion Winter Dinner.

The Board

of Gov¬

Security Traders Associa¬

Hillsdale, N, J.

New

Exchange

of Board

12, 1960

Boston

Service,

for

25th Sept. 12-13, 1960 (New York City)
of
Stock
Exchange
Sheraton Association
Firms meeting of Board of Gov¬
ernors
at
Fisher's Island
Club,

the

DIVIDEND NOTICES

ple issue, $15 for three-month
subscription, $50 for one year —
Profit

Stock

(Detroit, Mich.)

1960

party
Hotel.

Service,

Situations—$1

Bank¬

June, 1960 (Detroit & Michigan)

(Dallas, Texas)

Sheraton Dallas

ter

Mexico,

Neu, &

Security Traders Asso¬
Convention.
;

Annual

ciation

DIVIDEND NOTICES

Bond Club of Detroit annual win¬

Winter

Profit

1960

meeting

ernors

Broadway, New York 5, N. Y.

Vice-President

Reimer, Collins & James, Inc. has
been formed with
offices at 45

1-2,

Firms

Co.,

Corporation

34th

Idaho)

America

;

ciation

May

of the Ambassa¬

•

Association^

Varicon—Report in current issue
of

(Chicago, 111.)

West.

Country

Data—Oppenheimer,

will

Binday, Reimer

HEMPSTEAD, N.

1960

Guild Room

Tri-Continental

Form

25,

dor

and Illinois Power.

Universal

meeting

(Sun Valley,

11-14, 1960

Sept.

of
Stock
Security Traders Association of Association
Exchange Beach Hotel.
Chicago, Inc. Mid-Winter Party at Firms meeting of Board of Gov¬

Mohawk

Public

Biltmore.

reference to

Niagara

Association

Grand

Jan.

the Nicol¬

Hotel.

National

New York Security Dealers Asso¬

Asso¬

—

with

As¬

Conference

Texas Group of Investment

ing at the Ambassador West.

Match
Analysis —
Cooley & Company, 100 Pearl St.,
Hartford 4, Conn. Also available
is a discussion of Utility Compa¬
nies

Chicago

Mid-West

annual

ciation National Committee meet¬

Broadway, New York 5, NY.

Universal

Congress Hotel.

April 8, 1960

Standard

Stanley

Inc.

tion—Analysis—Reynolds
120

Carreau & Company,

—

Studebaker

Boenning & Co.; 1529 Walnut St.,
Philadelphia 2, Pa.

Gas Company—

Southern Natural
Bulletin

Marine

Dallas.

the

United

of Third Order of St. Frau¬
Peoria, 111. — Circular — B. C.

Ziegler & Co., Security
West Bend, Wis.

Co.,

Co., Stix,

Packard, and Sunstrand Corp.

Sister
ds.

Fuller

7th

annual

Electric, Life

Co., P. R. Mallory

let

Association

ers

System,

Aviation,

(preceded by a cock¬

tail party June 15th at

April 10-11-12, 1960 (Dallas, Tex.)

Sim¬

Club

Yacht

(Chicago, 111.)

1960

tics

EVENTS

Interna¬

Machines,

25-26,

Chicago Chapter American Statis¬
sociation of Commerce & Industry

reviews of

are

Insurance Co. of Virginia, Magna-

COMING

mons

Glass CompanyAuchiftcloss, Parker &

Hedpath, 2
4 N. Y.

issue

Business

Freight

—

•

"Investor's

Merrill

—

same

tional

sburgh Plate

Vnalvsis

Data

—

Lynch, Pierce,
Smith, Incorporated 70
Street, New York 5, N. Y.

Pine

Electric Company, 32
Harvey, Oklahoma City,

Corp.

issue

Fenner &

8
and Electric Com-

Annual

January

Reader"

Continuedfrom page
Oklahoma

and Financial Chronicle

•

IVINS, Secretary

».

128

The Commercial and Financial Chronicle.

(380)

Thursday, January 21, 1960

TVA

WASHINGTON AND YOU

program

and

both

navigation,

p0\vei

President

Eisenhower recommends

propriation
tion

BEHIND-THE-SCENES INTERPRETA TIONS

Dam.

ap¬

begin

construe
lock at Wheels

new
■

FROM THE NATION'S CAPITAL

pill

Veterans' Aid

Under

WASHINGTON, D. C.—A great

majority of the legislative pro^President
Eisenhower
submitted to Congress in con¬
posals

with

nection

the

will

not

all-important

1961 fiscal year

budget Tor the

off the legislative

get

But some im¬

ground this year.

is hope¬

The Chief Executive

ful

billion surplus at

$4.2

the next fiscal year.

But Mr. Eisenhower is

engaging

wishful

thinking if he
Congress will allow
his Administration
to pile up
that big a sum. Budget receipts
for 1961 (fiscal) are estimated at
some

thinks this

$84 billion, and budget expend¬
itures

which

submitted

are

legislative*.

portant

before

now

One

number

im¬

proposals

law

the

these

rary

pires

makers.

the

remove

4*4% statutory ceiling

U. S.

Treasury bonds in order to
mit the government to do

per¬
some

House

Ways

Committee
tain

and

Means

fairly

appears

cer¬

that it will recommend

now

raising the ceiling.

public debt

All tax and

matters must

orig¬

billion

$295

$80

fore

billion will

securities

limit

will

now

raise

Incidentally,

interest
The

the

national

President

billion

S9.6

1960

fiscal year on June 30

of this year

billion. Should, by some chance,

Congress hold expenditures to
$79.8 billion, which is extremely
unlikely, and a $4.2 billion sur¬
plus be devoted to debt retire¬
then

ment,

debt

the

would

reduced to $280 billion in

dations

which

fiscal

S45.6

Mr.
the

Eisenhower

law-makers,

billion

total:

the

agriculture S5.6 billion, veterans
S5.5

billion, interest $9.6 billion,
alf other expenditures S13.5

and

billion.

1961.

terest

30, 1959, the public

stood

While

S284.7

surplus

national debt

has

reached

June

debt

the

paper

a
staggering figure,
only to national defense.

second

billion.

It is

wonder that the govern¬
bond market today is the

ment

biggest market in all the world.

Stock

How
to

with

the

Market

Legislation Prospects

put

cost

Some

Transactions

legislative

proposals recommended
chance of

hundred dollars), you can make unlimited
profits (possibly thousands of dollars in

session

clear, simple

cise

becoming law at this

posal

tax

ex¬

uled to

expire June 30; increase
aviation
fuel
taxes;
increase
savings
and
loan
association
premiums; liberalize authority

Understanding
PUT and CAU

small

the

Thousands
fessionals
options
these

authority

the subject.

On
traders

and

make

can

also

can

profits

bigr

protect
stocks

the

pro¬

own.

bock

you

and

costs

make

you

can

mail this

you only
fortune.

examine

coupon

$3M.

Free.

Fill

est

And

law

likely

the

get

Presi¬

turned

half-cent

rates

for

gallon

rural

for the

electric

telephone loans which
sidized

can

by
the

crease

tives

which

the

are

taxpayers,

taxes
are

and

sub¬

in¬

Coopera¬

getting

bigger

in many cases but pay, little tax.
In

President

today.

Government

still

Eisenhower's

the

levied

recom¬

aviation

gaso¬

new

Savings and

simplified filings to a
wider range of security issues.

untaxed jet fuels.

The

To your favorite
bookseller,
CROW V Publishers.

Please

send

standing Put
free
If

Dept. A-7,
'
Park Avenue South.
New York 16. N\ Y.
me

and

examination.

not

convinced

Herbert Filer's
I nderCall Options for 10
days'

I
|
.

that it

can

pav for

itself

lut times ov«' *
return It and pay I
£'i ,,1F' Citherw ise I will pay you 63.00 I

Name

the

World War II. Many associations
have been organized, and the
number

rate.

unprece¬

insurance

Federal

and

Loan

tion

cannot

keep

increase

Insurance

ahead.

appears

the

continuation

growth

result

has

accounts

increasing at

re¬

Savings

Corpora¬
premium

Therefore,
recommended
the

prior
force

exceeds
counts

the

premium

1949,

until

the

and

President

legislation to

higher

effect

the

rate
re¬

reserve

borrowings

re¬

There * is
on

Zone

QSlf checu
enclose

in¬

senti¬

Capitol Hill to increase

Check here 11

you rreler to

local

This is

cooperatives to finance elec¬

trification
amounted

lion.

White

House.

making

President
that

Eisenhower

order

business

ties

Act

amended

o n

this

g r e ss,

declared

to facilitate small

financing, the Securi¬
of

1933

should

extend

the

privi¬

persons,

postage. Same moneyback
guarantee,

old

have

now

electric

compared
The REA

capital
tives

with

1935.

coopera¬

borrowing

Treasury

from
statutory

the

terest rate of 2%

the
in¬

course

rowing

thermore,

more.

the
sum

Fur¬

than 80% of the

customers of REA

new

farm

are

non-

users.

This
among

being

election

year,

other things, Congress is

down
sal

costing

that Treasury bor¬
runs in the neigh¬

now

borhood

substantial

again

turn

President's propo¬
revise these rates, and

the

borrow

from

owned

financial

1959

the

authorized

the

mutually

eral

age

will

Tennessee

Val¬

facilities

needs

meeting increasing
of the

area.

result, TVA plans to issue $115,000,000
1961.

of
As

revenue

part

bonds

the

monthly

5,900,000

total

As the

fect

aver¬

beneficiaries,

estimated

$2.1

budget, which will af¬
man,
woman
and

every

child

went

Senator

reached

the

Harry

Chairman

erful

word

out

nance

country,

our

Congress

caution

members.

Byrd,

Flood

the

Fi¬

Senate

Committee, and a pow¬
opponent of government

waste, expressed doubt the sur¬
plus would go as high as Presi¬
dent Eisenhower said it would.
The

said

distinguished Virginia#
experience it is
that accurate budget esti¬

that from

rare

can

made

months

advance.

Certainly, he cau¬
and all, a prospective

one

no excuse

to cut taxes

increase spending.

Authority to issue up to$750,000,000 to expand its power

payments, made

billion.

Congress

ley

power

old

are

In 1961, the Fed¬

for

estimated

surplus is

institution.

session

These

permanently and to¬

tally disabled.

thumbs

the

age

and relending

it to the co-ops at the same rate.

taxpayers

payments.

the

ance

aid

currently finances the

needs

the

aid

power

11%

grants

farms

of the

96%

through

[This

column

intended

re•

fleet the "behind the scene" inter¬
pretation from
and

may

Capital

the nation's

may

the "Chronicle's"

not
own

coincide with,
views.]

overall

Attention Brokers and Dealers:

TRADINC MARKETS
Botany Industries

and

Indian Head Mills
Official Films

Southeastern Pub. Serv.

pretty safe assumption

talking with

bers

the

House

some

mem¬

Ways

and

Congress in 1959.
Federal Airways System

CMk Marks

country is getting bigger
all the time.
Everytime a man
woman boards a commercial
airliner in the United
States, his

Our

& r.o. Inc.

New

York

telephone number

CAnal 6-3840

FOREIGN SECURITIES
SPECIALISTS
20 BROAD

STREET

TEL: HANOVER 2-Q05Q

in this

$4 bil¬

than

About

has

tioned

recommendation to C

billion

assistance, aid to the blind,
to dependent children and.

facilities

invest¬

tre¬

States, in providing
four categories of public assist¬

additional

This

various

mates

survivors'
,

system, with
will pay an

defects,
$11.7

country

receiving

The Federal Government

phone and electric Cooperatives

companies, and liberaliz¬
ing the authority of those com¬
panies
as
suggested
by
the

se¬

age,
survivors, and disability
benefits to 14,600,000
people of
all ages in 1961.

provide legislation for the tele¬

formation

age

benefits.

its

repeal of the tax
telephone service, be

after

The

the financial assistance to small

ment

old

estimated

postponed, will not be heeded.

State

money order for 63.00. Then

all

shares,

likely

considerable

the scheduled

acted by

city

sie pay

this

mendous insurance

Subsidizing the Customers

ac¬

sured institutions.

ment

designed

regulation to
:
:•
^
L-.

bank mergers. -:

each year in

main

laws

empower" Federal

without

pace

the

rate.

store

antitrust

Since 1935 electrification loans

ings and loan associations have
had a spectacular growth since

serve

again

once

amendments

rec¬

Means Committee and the Sen¬
ate
Finance
Committee.
The
scheduled reductions were en¬

...A.

Address

transportation

are

of REA

Loan Association

The building and loan or sav¬

President

recommended

Reserves

been

ommendation that the scheduled
reduction in excise tax rates on
419

people

insurance

lege

mes¬

social

and the
welfare phase of our
society. At
this time 10,000,000 of the
16,-

budget
the

curity social insurance

businesses, by encouraging the

big road program: raising inter¬

options on vour owr
increase income, where" and how
how to use
Instead of
short-term profits, how to use
options to
protect profits on your stocks, etc.

help

bring in
this

increasing the postal
rates, increasing the gasoline tax

to buy and sell puts and
calls,
them
to
make
capital gains

This

down

This book shows how
they do it and
how you too can make
maximum profits
on
minimum investment.
It Bhows also
how you
can sell
stock

under

the other hand

dent

profits for
unrealized

they

and

wage

people

"buy''
and
"sell"
put) because thev know

and

exemption
issues from

clerks in stores.

purchase

and

"paper"

of successful

(call

options

them

mum

by HERBERT FILER
$ 1

investment

broaden

small

security
registration, and raise the mini¬

Options
.

business

companies;
of

Congress

that

pro¬

promptly increased
from 2 to 4V> cents a gallon,
and that an equivalent tax be

rates which are sched¬

tax

White House

The

sent

mends

line

certain degree, is sub¬

sidized.

are:

Extend, the corporate and

book

the

to have

seem

Other

monthly

marked

other

President which

or call option, risk limited
the option (maybe a few

90 days) is explained in this

of the

you

President's

000,000

dented

Limited Risk-Unlimited Profit

States

•

and

aged 65 and older

Thus, it is clear that the in¬

Debt and Interest

United

the

Broadbottom, but

rates

totaling $79.8 .billion, the ,national security program would
get

list

feel, Mr.

you

dependent!"

trip, to

submitted

will be about S284.5

can't

how

Under the budget recommen¬

public debt at the end of

Security

touched

sage

know

debt.

interest

these

program at 125,00c
has been established.

Social

recommended

for

Welfare Costs

going to

now

portion

hospital

beds

5%.

out

cents

tax dollar is

every

alone.

the

interest

ceiling

com¬

81,000,000.

rate

Congress

appears

the

survivors
of

or more

The
it

and
total

recipients of one
types of benefits. A first
hospital and medical care
program is being provided.
A

year s.

rates.
As

23,000,000 living
They and their de-

potential

are

Be¬

pension

are

considerable

Why?'

billion.

Pension Act of 1959.

pendents

be¬

get started on long-

limitation

in-

higher pension rates
authorized by the
Veter^

veterans.

likely to lift the 42-year-

4V±%

For

additional

There

due

financing rather than have
to go to the money market so
often. That is why, among other
things, that this Congress now
old

sus¬

and

both
ans'

term

seems

$5.5
of

cases

However, the Treasury is most
to

prise

five

ahead.

indicated

$314,000-

mature

there is

course

"Vet¬

veterans
going to increase

are

yeais

cause

A total

Christmas.

the

000

less than five years.

gressional committee.
The

ex¬

come

Benefits''

stance, the program in 1961 will
increase an estimated

ketable securities will

inate before this important Con¬
♦

programs

June 30, 1960.

and

as
many
people already
pected, the costs of the

the interest of
the government and the people
that the interest ceiling be lifted
on
Treasury
bonds?
Threefourths of all outstanding mar¬

long financing of its huge debt
The

heading

President Eisenhower

The present tempo¬

limit

anxious

Congress totaled $79.8 billion.
There

tax income.

Why

portant ones will.

the end of

shaping up, it is again necessary
for Congress to provide a tem¬
porary increase in the debt lim¬
it.
This is made necessary be¬
cause of the seasonal pattern in

the

Services

erans

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERHER & CO.
Investment

T~~T

Securities

10 Post Office Square, Boston
Telephone
nCbhard

2-IP90

9, Mass.
Tcletyp*
BS 69