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MORE
ANNUAL
REVIEW
FORECASTS
Reg. U. S. Pat, Office
New York
Number 5814
Volume *89
EDITORIAL
;
Word
Business and Finance Speaks
See We
It
As
anced
General
in market advance in
For various reasons, a
'
large number of the 1959 busi¬
economic forecasts especially written for the
and
ness
Mortgage terms to be
budget demands.
CHRONICLE"
of
could
not
accommodated
be
Part
balance
I
of
the
well
in
of
excess
of these outlook statements, of course, reflect
individual opinions of government officials and of
country's leading industrialists, bankers and finan¬
ciers on the probable trend of economic activity for
the
grants would be increased
anything that the President
anti-depression
specific industries and business in general. The remain¬
ing unpublished commentaries received by the "CHRON¬
ICLE" are given in today's issue starting herewith:
wishes. Another bill would revive
provisions for mortgage buying by the Federal
National Mortgage Association. Plans are afoot
for the Federal financing of housing for the
HON. JOHN F. KENNEDY
U.
elderly, and programs for public housing objec¬
tionable to the President are being formulated.
mittee pigeon-holes or become
expense,
cians
housing,
in part
public
at
will
has been a favorite theme for the politi¬
since the New Deal first got under way.
maneuver
tions
parts of the insurance and guarantee programs of
been in this area;
population of this country ever since the
big depression was lifted by war
has been growing at an unusually high rate—a
fact which, of course, has given rise to greater
demand for housing. Population also has been
moving at an unprecedented rate from the central
cities to the suburbs where ordinarily families
live in houses of their own, or at least houses
The
page
its
J. F.
which
Kennedy
the
ness
how many
afforded
a
—
his
aware
how dif¬
win, place and show results of the
next
Kentucky Derby, in this con¬
nection, one of my Swiss banker
me: "If you were always
Kenneth Ward
friends told
about
right
market
the
would
you
24
write any-
not
Continued
on
page
64
Ward before the New York Society of Secu¬
York City, Jan. 14, 1959.
address by Mr.
rity Analysts, New
corporate
Underwriters, dealers and investors in
the SEC and poten¬
Registration" Section, starting on page 70.
complete picture of issues now registered with
tial undertakings in our "Securities in
stick
will be to describe on paper,
forecast, the action of anything as
divergent, selective, contrary and
rotating as this present day stock
market. Forecasting the trend of the
1959 stock market, based on what
we know today, is just about as easy
as making a similar forecast on the
♦An
page
perfectly
are
to
or
challenges they face.
on
asked
ways
investiga¬
determination
is used
Continued
is
publicly and express an
Professionals in the busi¬
it has been, how hard it still
is and how complex it probably al¬
Obviously the over¬
riding issue for 1959, as it was in 1958, is the question of
war or peace.
This involves all the issues of our rela¬
tionships to our allies, our basic policies toward Latin
America, India, Africa and the uncommitted nations of
the
year on
ficult
of the members of Congress
to meet
he
out
opinion.
can
It will be successful
talent and
later
neck
a
22
are
or
legislative leadership.
question of numbers of
passed but of the manner in
bills
Sen.
SECURITIES NOW IN REGISTRATION
securities
DEALERS
it
bullish
a
a
in this case, forecasting, is that sooner
in
success
money
headlines
produce.
This is not
when the mortgages are
on
or
responsible
dead hand of the
Continued
market,
only if it can cope with the many
pressing foreign and domestic prob¬
lems now crying out for thoughtful,
the Federal Government have
own
much
the ^President, or
sensational
known, some of the most irresponsible
which will be their
its
measure
how
mild, temporary interruption
future and
The penalty anyone pays for constantly writing about
the
spend, how many times it can out-
ever
As is well
not
of
terms
near
without, however,
tory of this Congress.
It
better
and
lost in disagreement beHouse and the Senate.
However, those that are enacted into
law will determine the place in his¬
a!
'
the
tween
,
'
other.
More
Massachusetts
from
these bills will be examined and left to wither in com¬
aged in other measures now in the mill. Some of
these plans would impinge directly and substan¬
tially upon the budget for the coming fiscal year:
all of them would burden budgets at some time
or
Senator
The 86th Congress has already met and established a
record for bills introduced in the first few days. Most of
help for colleges and veterans is envis¬
Similar
S.
'
;
market rate of advance as
last year. Tempers bullish enthusiasm about future stock
price action with: an admonition against watching mar¬
ket averages, admission that traditionally the start of a
new year is a difficult time to forecast market-business
trends, and advice to exercise careful selectivity as many
stocks may have already over-discounted a more favor¬
able earnings trend. Mr. Ward also ticks off bearish and
bullish factors, defends useful role performed by charts,
and submits brief opinions on 23 individual fratpe, and
stock favorites therein, and ten lower priced staek* picked
for price appreciation. Presages a sudden coming to life
for airlines, textiles, domestic and international oils,!;
among others.
Jan. 15. All
wishes. Slum clearance
in
OUTLOOK ISSUE
ANNUAL REVIEW AND
our
granted by the Federal Housing Administration
would be eased far more than the President
;
Partner, Hayden, Stone & Co., New York
Mr. Ward prognosticates a
annual review forecasts: part ii
President's bal¬
present its first challenge to the
Copy
a
By KENNETH WARD*
from Washington that the Demo¬
comes
Gents
Stock Market Outlook
After Turn of the Year
majority has chosen the field of housing to
cratic
Price 50
7, N. Y., Thursday, January 22, 1959
State, Municipal
in
and
U. S. Government,
State and
UNDERWRITERS
Municipal
STATE
and
Securities
and
MUNICIPAL
623
So. Hope Street, Los
HAnover 2-3700
Anreles 17,
Bonds and Notes
California
DISTRIBUTORS
telepeo.vl;
Members New York
BONDS
of
Associate Member
Stock Exchange
American Stock Exchange
INVESTMENT
Members Pacific Coast
SECURITI ES
CHEMICAL
Offices in Claremont, Corona
CORN EXCHANGE
THE FIRST NATIONAL CITY BANK
DEPARTMENT
30 BROAD
ST.,N.Y.
MEMBERS NEW
CABLE:
YORK AND AMERICAN STOCK
STREET, NEW YORK 5, N. Y.
Dl 4-1400
Teletype: NY 1-708
Bond Dept.
To
T. L.Watson & Co.
Banks
and
Brokers
i
Members
New York Stock Exchange
American Stock
british columbia
tel co. rites
Block
Inquiries
CANADIAN
Exchange
Invited
25 BROAD
STREET
NEW YORK 4, N. Y.
i&mfAwett company
DIRECT
WIRES TO MONTREAL
AND TORONTO
Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
•
PERTH AMBOY
115 BROADWAY
NEW YORK
for
The Canadian Bank of Commerce
We
offer to
California
buy these rights at the
current
Direct private
1959)
market.
wires to Toronto,
Municipals
Montreal,
Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and Halifax
I Municipal
DEPARTMENT
Teletype NY 1-2270
DALLAS
Correspondent—Pershing & Co.
(Rights Expiring March 17,
1832
ESTABLISHED
first
New York
Maintained
Markets
Active
Dealers,
Dealer
'r-■-''-
BANK
Securities
TELETYPE NY 1-2202
COBURNMAM
Net
"
Chase Manhattan
Inquiries Invited on Southern
California
DEPARTMENT
the
EXCHANGES
•
Distributor
•
BOND
del Mar,
Beach,
Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa Monica
OF NEW YORK
Burnham and Company
15 BROAD
ZJnderwriicr
Exchange
Encino, Glendale, Hollywood, Long
BANK
BONIS
Public Housing Agency
Lester, Ryons & Co.
1 NORTH LA SALLE ST.
CHICAGO
Bond
Doximox Securities
<orp orah07i
Associate Member of American Stock
40 Exchange
k of
Place, New York S, N. Y,
Tel. WHitehall 4-8161
America
Sxch.
Tele. NY 1-702-3
*
W
,»
wg
1
m
300 MONTGOMERY STREET
SAN FRANCISCO 20.
;
CALIFORNIA
0^? 'lU
The Commercial and Financial Chronicle
.
.
Thursday, January 22, 195$;
.
P22LLLEk
The Security I Like Best
fort- Batiks, Brotiers, Dealers only
This Week's
Forum
A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the country
Try "HANSEATIC"
participate and give their
When time is
important to
large and experi¬
enced trading department
can
help you reach the
reasons
for favoring
particular security.
a
you, our
OTC
markets you need
(The articles contained in this forum
E. F. Hutton & Company
New York Stock Exchange
Members
and
other
principal Stock Exchanges
Philip Carey Manufacturing Co.
The
investing public and
in
which
stock
a
is
com¬
reasonable
price in relation to the general
market and to
1920 y
Stock
Teletype NY 1-40
EOSTON
PHILADELPHIA
Private
CHICAGO
•
SAN FRANCISCO
.
Wires
to
Principal Cities
erratic
one
in
an
or
er¬
Jack H.Deutschmann
This will be
write-offs
on
the
over
property. This is
for it is estimated
end,
the next few years they
increase their earnings by an¬
other $4 to $6 per share through
increased production for the mine.
more
company,
tne public
can
with
increased
re¬
Philip Carey Mfg. Co. is
cellent
substantial
not
spect and attention.
Life Insurance Co. of Va.
share net after
can
for it. And
stable company becomes
it
per
past quarter vs. 57 C
Canadian
that
more
view
well
in production
now
and $6.00 per share.
earner
growth
cover¬
In 1959, I estimate the
will earn between $5.50
1957.
company
stable, people
are
usually
willing to pay
Commonwealth Natural Gas
for the
taxes
their
a
is
$1.25 and $1.50
after
when
floor
quarter of 1958. I estimate
they will report
between
that
is
a
This demand for
a
great in¬
insulation, pipe wrappings,
pipe, plaster, etc. It is difficult to
see
how "Carey" can not make
big money in the years ahead.
stable.
ratic
Bassett Furniture Industries
example of
a
an ex¬
stable,
very
relatively uninteresting company,
now appears to be on
the
threshold
of
a
new
dynamic
With
to
potential
of
earnings
$8
$9 per share for their Quebec
asbestos operation plus $2.50
to
$3.00 per share in their fabricat¬
ing business, it would appear that
"Carey" at its present price cf
approximately 43 Mj
is
very
LYNCHBURG, VA.
growth phase.
TWX LY 77
-5-2527—
Private
Wire
to
New
York
City
L. A.
DARLING
COMPANY
BOUGHT
—
SOLD
MORELAND & GO.
,
•
Midwest
Detroit
Members
Stock
Stock
Exchange
Exchange
1051 Penobscot Building
DETROIT 26, MICII.
WOodward 2-3855
*
Branch
Office
DE 75
—
Bay City, Mich,
old
line
sales
effort
has
in
been
as¬
waterproofing materials,
etc. In 1952, the company got into
the air conditioning business by
purchasing
the
ventilating
fan
ducts,
the
of
Victor
Electric
Products
Company.
In
normal
circumstances, "Carey" would be
assured of a moderate growth po¬
still
growing.
The
Established
1930
Telephone HAnover
Bell
Teletype—NY
2-4850
the
in
the missile
field,
mmercial
c o
Of
purposes.
the
w
The
babies
war
of
the
World War will be of age.
premise,
"Carey"
would
be worthy of attention.
However,
it appears that "Carey" will now
be the
beneficiary of a sharply
increased
200
earnings and cash flow,
quietly,
brought
into
mine
few
past
over
this 700
This
is
ment
"Carey"
production
in
System:
Denver—Lowell. Murphy &
Company, lne.
Over
"Carey" has
$7 million developing
and
Refining's invest¬
$40 million for a
over
size
During
the
past year, despite
recession, Milgo was
grow
and increase its
able
to
backlog.
the
But
significant
I
importantly,
highly
developments:
most
made
company
these
(a) Established
a planning and
department
for
all
scheduling
in
a
property of
Canada.
4
fabrication.
(b) Strengthened and expanded
purchasing and material handling
department.
(c)
so
Streamlined
the
that all functions
dollars
materials
or
Treasurer.
Those
.
.
both
the
is
and
premium
"longs."
the most
the
in
now
type
great
asbestos
but
of
fibre
demand.
fibre
hair
"Carey" has for
part "shorts." However,
(
soared
to
$.922,733
to
branch
our
offices
STOCKS
to
September
from $619,429
in the like period of 1957, a gain
of 50%. By the end of next fiscal
30, 1958 fiscal
year,
For
.
-
information
current
Call
,
or
write
"
Sept. 30, 1959 the company
expects to bill sales of completed
yeai',
contracts
in
of
excess
Yamaichi
$2,000,000.
New
items
developed include
plug-in transistor networks, step¬
ping switch assemblies, amplifier
packages and patch panels.
Big
Securities Company '
of
New York,
Affiliate
complete line of radar instru¬
mentation packages.
In addition,
the company is now developing a
complete new line of data trans¬
Tokyo, Japan
Brokers
a
mission
and
conversion
Inc.
of
Yamaichi Securities Co., Ltd.
items include plotting boards, spe¬
cial purpose analog computers and
&
Investment
Bankers
111 Broadway, N.Y. 6 COrtlandt 7-5680
equip¬
ment.
outstanding
of
capital
$100,702.
Total current assets are $704,805
against total current liabilities of
^
$238,218.
-
Earnings
30, 1958
like
were
1957
INC.
37 Wall
Underwriters—Distributors
Dealers
prediction 7
be
can
made for the 1959 fiscal year, but
based on
backlog, and increased
orders,
Street, New York 5, N. Y,
period.
definite
No
Burns Bros. & Denton
,
share as of Sept.
$1.04 vs. 85c in the
per
both
Government
be
that
commercial,
it
there
excellent
is
an
Investment Securities
and
can
seen
chance
possibly doubling the 1958
ings per share.
»V
Canadian and Domestic
of
earn¬
The geographical location of the
is
company
decided advantage.
a
Patrick Air Force Base
of
—one
the
is
State
of
missile
and
than
IN JAPAN
largest
Florida
leading locale in the field of
a
Opportunities Unlimited
nearby
company's
The
customers.
is
development
three years,
Write
efficient
and
careers as
for
our
Digest, and
Monthly
our
Stock
other reports
-
that give you a
pretty clear
picture of the Japanese
Milgo
economy as a
whole.
man¬
Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone:
This
is not
orders
BOwling Green 9-0187
an
offer or
for any
solicitation for
particular securities
electronic engineers and
regarded by the authorities at
Canaveral
two
as
of
strumentation
and
the
out¬
missile in¬
on
other
types of
missile electronics. The Secretary,
William F. Rose, is the General
Manager, and has compiled
rec¬
a
ord
in
personnel which is out¬
standing, one pertinent fact being
the negligible labor turnover. He
also
doubles
Sales
in
"brass"
Department.
It
is
the
as
team
a
that operates as one, and is unique
business today. We can expect
great things from such
Your
RED
CROSS
must carry on
I
tion
of
brainpower,
Besides
teamwork.
cognizant
of
line,
under the
cessful
in
are
the
combina¬
a
ability
necessity
and
and
this, they
have
building
been
a
are
for
very
a
suc¬
dealing
with
could take
over
if necessary.
Treasurer
and
with
General
Stockwise, from
cost
per
market
President.
over
an
issuance
share of $1, to
price
three
of
64,
years,
a
in
the
Quotation Services
for 46 Years
manpower are un¬
Manager,
Over-the-Counter
good
echelon there, which in the future
General
the
wires
JAPANESE
Sales (completed contracts)
second
The plant is now adequate, cov¬
ering 34.000 square feet, and en¬
tirely modern. Personnel is also
adequate and improving constant¬
ly in the Miami area where highly
The
Direct
subscribed.
dealing with
lion
is
of
»
functions
operations and
der
company,
Manager reporting directly to the
tons
Bank
in
It appears that "Carey" has as¬
bestos reserves of up to 100 mil¬
which
National
Ala
Mobile, Ala.
$500,000,
standing authorities
the so-called
years,
one-half interest in
A Co.
Recorder.
has
new
of mineral property.
contrast to American
in
of
similar
a
Canada.
acres
Smelting
IT ire
basis, is the XY
cal
asbestos
First
for
NY 1-1557
New Orleans, La. Birmingham,
and a new
stock issue for $250,000 was suc¬
cessfully floated, and in fact over¬
are
a
n
facets of electronics and mechanic
spent
Lo^ Angeles—Marache.
DolTleinvre
o
asbestos.
the
Trading Markets
o
William L. Dewart
stemming not from manufacturing
but from mining and processing of
Very
Over-the-Counter
latest
dle 60s is expected to be extreme¬
this
the
agement, foreshadowing excellent
growth possibilities. This company
has that great rarity—a "team."
The President, Monroe A. Miller,
and the Vice-President, Lloyd F.
Gordon, have long and successful
for
and
n
On
with
are
development
chiefly
ment,
scheduled volume
The
family formation during the mid¬
1-1127
in
good shape. A
line of credit has been established
In less
building boom in the 1960s.
large.
HAnover 2-0700
'
Finances
Exchange
American Stock Exchang«
19 Rector St., New York 6, N. Y.
Electronics has shown remarkable
Govern¬
tant
Second
abounds.-
labor
and execution.
supplies
products for
pany
latter, its
impor¬
product,
ly
Members
technical
and
missiles
com¬
tential in the next few years. All
indications point to an explosive
SreeueaudComptm^
Steiner, Rouse & Co
Members New York Stock
skilled
stock ($1 par value) total
recognizing the poten¬
tial value in "Carey" has accumu¬
company,
bestos, cement, shingles and sid¬
ing, etc., waliboard and sheath¬
ing,
roofing,
air
conditioning
division
Corp.—William
Dewart, of John Muir & Co.,
(Page 2)
-
A group
lished in 1873, in the
and
City.
Bought—Sold—Quoted
Electronics
Shares
erately priced.
lated approximately 150,000 shares
estab¬ in the past few years.
This is
home build¬ approximately 18% of the out¬
ing supply business, "Carey" has standing stock.
enjoyed
an
excellent, if quiet,
reputation in the industry. Its
WILLIAM L. DEWART
growth rate has been practically
John Muir & Co., New York City j,
nil in the past ten years. In 1949
Members New York Stork Exchange
it
had sales
of
$39,902,929 and
earned $3.08 per share.
In 1957, Milgo Electronics Corp.
nine years later, they had sales
Milgo Electronics Corp. is an¬
of
$69,889,864 and earned $3.08
other "romantic" growth electron¬
per share.
Certainly a stable, if
ics company, now in only its third
uninspiring, performance.
year.
It started with but five
Adhering
to
the old
motto, employees,
"Shoemaker stick to your last,"
and today it
"Carey" has not ventured far from numbers more':
its field.
Its primary production than
250, and
An
LD 39
L.
New York
mod¬
which
STRAOER and COMPANY, Inc.
Co.,
;
from
ings,
which
an
comes
of asbestos in
crease
one
becomes
American Furniture
&
New York City.
all the fibre
to sell
produce.
can
very
When
Trading Interest In
it
Milgo
■
Louisiana Securities
fourth
rec¬
ord. Either
been able
"Carey" will benefit from its
earnings for the first time in the
past
earnings
On the other hand, there is
shortage of ".shorts." and "Carey"
and
average
its
to
mar¬
Miami
P. E. ratio due
Exchange
a
The mine
mod¬
a
glut in the "longs"
a
1
*
Deutschmann, of E. F.
Hutton
ket.
has
.y>'■
Many
a
will
est
'
120 Broadway, New York 5
WOrth 4-2300
try.
sell at
Associate Member
American
indus-
own
company
Corporation
Established
its
there is
"shorts"
munity usually like nothing better
than
New Yoik Hanseatic
H.
Jack
to
Alabama &
*.'
Philip Carey Manufacturing Co.—
be, nor
offer to sell the securities discussed.)
JACK II, DEUTSCIIMANN
faster.
private wire
system, plus a wide range
of contacts, assure you of
getting the complete cover¬
age you need in your Overthe-Counter problems.
as an
Their Selections
(Page 2)
—
A nationwide
they to be regarded,
are
intended
not
are
-
Participants and
of
present
slightly
company
National Quotation Bureau
would appear to have outstanding
Established 1913
possibilities
average.
the
far
The
better
stock
is
than
traded
the
in
46 Front Street
CHICAGO
Over-the-Counter Market.
New York 4, N. Y.
SAN FBANCZaOO
'
Volume
Number 5814
189
.
.
.
The Commercial and Financial Chronicle
(399)
I N D E X
The General Economic Scene and
Peimanent Cure for
1
*
?
>
Homebuilding
"
Stock Market Outlook—Kenneth
Ward
In
AND OOMJANY
or
compared to 1.3 million rate recently reached, Dr. Ensley calls
for an end to FHA-VA interest rate ceiling and for national
fiscal discipline. He asserts any action short of interest rate
v
Our
and contends FNMA expansion is too
heavy
a
price to
>
Economy of the
Future—Paul M. Mazur
—Ira
U.
/
!
claim that home
building may suffer in the short run because
anti-inflationary monetary and fiscal policies. but only /
through such policies can supply of mortgage credit and V
savings-flow be increased.
V
* ■,
Cobleigh
4
Maintaining Economic Growth,
^
1
—Beryl
W.
_
Not often have
entered upon
we
with such unanimity
6£ informed opinion on the out¬
look for economic activity.
The
a
new
an
year
--r
ou
J
11
k for
o o
1959
and
highs
It
and
has
Shown
an
Stability
and
Stable
EMPIRE STATE OIL
from
postwar years
W.
Grover
Ensley
achieve
measured—to
wuliSffi of tn+oi
fl total
high levels
output
Of goods and services by the end
Of 1958.
process
V*
—
,
do not necessarily decline
recession; that disposable per-
wages
income
sonal
at, high
can
levels
maintained
be
and,
as
a
conse-
quen'ce so can consumer expendi-
lures; -that corporations need not
reduce
dividend
ments
ln.ttie
and
face
salary paydeclining
of
profits; that nondurable goods and
industries
service
continue
can
strong as durable goods industries
falter; that personal savings can
rise dramatically in recession and
continue
These
upward
and
in
recovery,
elements
are
other
testimony to our ever-changing,
dynamic economy—- an economy
which
will
-
soon
be
goods and services
rate of $500- billion.
producing
at an annual
The road up to this
•
'
-
.
nigh figure—which is likely to be
on
not
be
very
old—
entirely smooth, nor,
the other hand
1958
lows
and
vigorous,
vigorous.
has
will it be very
been
from
the
nation's
has
-
upturn
-
in
•
(seasonally adjusted)
of around 900,000 starts last
to-about T;8
Increased
and 1 local
'
/
•
•
'An
million
spring
winter. "
this
outlay's by both Federal
governments
.V
c
address
National
in
increased
to
- new
/
by Dn Ensley before the
Association
of .Home
Gains
eco-
of the 1959 business foreespecially written for the "Chronicle" could not
be accommodated in Part I
of the Annual Review and
Outlook Issue of Jan. 15. These
appear in today's issue
starting on the cover page.
-
•
casts
1
pre-
both
durable
and
16
In
als0
Loans and Price
'
the
force—are
We
See It
■
Midwest Instrument
(Editorial)
.Cover
18
I
80
Coming Events in tlie Investment Field
"
From
Washington Ahead
of the
a
"'J.''
News—Carlisle Bargeron—_ 19
Funds
News About Banks and
Bankers..
—
Observations—A. Wilfred May
Our
on
Utility
L
Prospective
Securities
,
Corporate borrowing.- As noted
earlier, savings flows have risen
Builders,
^
.
•
on page
.
and
For many years we
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oity-
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111.
news,
news,
Offices:
as
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York, N. Y., under the Act of March 8, 1879.
Every Thursday (general news and advertising issue)' and every Monday (com¬
plete
Chicago
*
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ary
Thursday, January 22, 1959
*
Western Gold & Uranium
Company
CHRONICLE
Place, New York 7, N. Y.
DANA
2
4
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j
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•
Corp.
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Copyright 1959 by William B. Dana
REctor 2-9570 to 9576
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American Dryer
80
Weekly
Reg. U. 8. Patent Office
WILLIAM B.
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17
'——1—
Industry....
The COMMERCIAL and
PREFERRED STOCKS
have specialized in
Twice
Vitro
20
Washington and You__
Published
Chicago
~
Silicon Transistor
75
You—By Wallace Streete—
The State of Trade and
o7;
—
Salesman's Corner.
The Security I Like Best__T__i
/»rr"
t
Continued
Chicago, jan_-zo,. 1959.
—
Security Offerings_________—__—-l
The Market..
Los Angeles
21
79
—
financing
Dallas
Cleveland
20
Securities Now in Registration
^e. increased volume of new
?y ,,vJfe!
as the J*ecord
sPen^inS by state and local' gbvf;n™ents, and. continued large
Philadelphia
76
Securities..
Railroad Securities
new
16
19
—_____—
Reporter's Report
Public
San Francisco
4
—
Governments
inc.
Exchange Place, N. Y.
Direct Wires to
78
_____
economic
40
Teletype NY 1-1825 & 1-4844
77
NSTA Notes
savings into financial institutions.
has permitted the
HA 2-9000
,
Mutual
Pve^s' no matter how brief, is
hardly complete flow of reference
without net
to
the record
This
mackie,
&
8
Holiday in Britain"__ 13
Indications of Current Business
Activity.
-
Singer, Bean
11
C
Einzig: "Fight Against Inflation Takes
,
:
1958
Reeves Soundcraft
18
_.
Regular Features
>
*
Our Reporter
of
16
Inflation_____^___
M
work,
review
Pacific Uranium
___;
Businessman's Bookshelf
■
underlying
reasons
why the economy must
continue to expand at a substantial rate if it is to provide gainful
employment for all who wish to
A
City
15
Year Ahead But Alarmed
Dealer-Broker Investment
Recommendations
These'
factors, incidentally—productivity
ga[ns an(i normal increase in the
on
Bank and Insurance Stocks
,
*
unemployment.
x
As
♦
element in the slow
an
in
Lake
Western Natural Gas
.....
recovery—
■
Salt
14
Henry C. Alexander and H. F. Davison
Forecast Rising Bank
;
-
been
^dine
5
,
America's labor force has
s}ze
Direct wires to Denver A
!
Prescribes Inflation Cure
Harold II. Helm Optimistic
Over Inflationary Trend
yigorous economic upturn
spring has been accompa- j,
njec}
hy increasing" employment *
ancj a reduction in unemployment,
improvement here, however, has
heen less dramatic as rapid gains
jn productivity and a gradual rise
in average hours worked—characeconomic
J-
Eisenhower's Economic Report Finds
Business Good and
non-durable
w
permitted broad increases-in
economic activity.
The growing
Memorium to Harold Richard
Brady
Eisenhower Presents Balanced
Budget for Fiscal Year 1960__
Output in most
have
City Stock Exch.
Exchange PI., Jersey City
DIgby 4-4970
since
of
1
Teletype: JCY 1160
goods, however,
has
not
yet recovered previous *
peaks, in contrast to output in
many non-durable goods sectors,'
which has already achieved' new
highs.
'
-j
,;"7 ..'.j'J;*
teristic
Members Salt Lake
per-
durable
of
J.F.Reilly&Co.,Inc.
factories
havePbeen widTsp^ad f
goods industries.
lines
DOMAN HELICOPTER
For various
reasons, many
decline of 20 noints from earlv
?957
,
Turn of the Year"
-
Federal Reserve Board, following,
^
BALANCE OF CONTRIBUTORS TO
"Business and* Finance
Speaks After the
centage Points as measured by the
broadbased
rne
The
housing jias contributed" impor^
tantly/to, the generaL economic
turnaround, with-; a rise from an
annual rate
:
sector,
of the
mines
bumpy. So far, the recovery from
-
decline
earlier
regain four-fifths
labor
staggeringly
achieved before 1960 is
will
industrial
and
in
of decline and
recovery we have learned many
things about our economy. We
have
learned
that
prices
and
in
the
the
tion
in near-record
the
ADVANCE INDUSTRIES
recession peak level. This means.
that since early spring, produc- \
sion in the '
In
In
to
23
?'
nomic activity was centered, phy-\
sical output has recovered rapidly
reces-
URANIUM
12 /
Babson._
in
where
the
deepest
i'
WESTERN GOLD AND
industry
Schwartz
Invention—Roger W.
■
■
10
consumers'
as
WALL STREET, NEW YORK
Telephone: WHitehall 4-6551
9
Developments in World's Automobile
L.
our
with
Prices
Sprinkel-
The Greatest
Coming
important to note that in¬
terms.
amazing resil¬
iency by snapp i n g
back
i
is
—Frank
;
liquida¬
activity since midyear
have been accompanied by rela¬
tively stable prices so that our
gains in output have been in real
so.
arP
of, inventories
creases
The American
new
their
their expenditures
to record levels,
y ■
economy
region*
reduced
have increased
nediately be¬
justifiably
fac-'
significant
when
man
7
_
m on
markedly
yond is indeed
aright,
been
At rnyi
tion
•*.
im-
have
tors in recent economic expansion. ■*
Knciwnc!c«
hotro
Moreover,
business
men
have
the
Obsolete Securities Dept.
6
___.
v
Gas Turbine
event
6
Freer Trade and United
States Competition for Its Share
/—Elizabeth E. Cook
-
titanic
rescues
obsoletes !
•
of
-
a
cash
Molybdenum Corporation and Its'Romantic
Metals
V
*
for
pay
temporary housing stimulus. The savings banks' economists
a
5
99
J to stop inflation will affect the volume of long-term savings;
?
It's
Some Aspects of Economic
Growth and Public
Policy
—Gabriel Hauge
flexibility for insured mortgages will still leave basic problems
in housing markets unsolved; warns home builders that failure
REMEMBER
3
Business Outlook and the Stock Market in
1959—Lee P. Stack
for 1959y
more
A SIGHT TO
'
Homebuilding—Grover W. Ensley
Savings Banks, N. ¥. City
foreseeing 1.2 million housing starts
Page
Cover
The General Economic
Scene and Permanent Cure for
Executive Vice-President
llCHTfnSTElI
B.&.
Articles and News?
By GROVER YV. ENSLEY*
National Association of Mutual
3
subscriptions
and
advertisements
must be made In New York funds.
Teletype NY 1-4040 & 4041
Direct
Wire
to
PHILADELPHIA
;
4
The Commercial and Financial Chronicle
(400)
Eiherington, Stearns
Observations
.
A VISITOR —AND HIS
Retail
Auto
and
HOST!
Trade
Commodity Price ladex
Food
Industry
Price
Index
Production
Business Failure#
upon you—excuse me
war
To
steels,
will bury you."—Mr.
meet
the
future's
growing needs for more and better
ahead of the competition of other materials
countries, iron and steel companies in the United
States
Khrushchev at
side. We
for Premier
a party
and
and
other
This
Surely recollection of such key statements of the Party Line
of Mr. Mikoyan's
present pronouncements concerning his country's yearnings for
co-existence in the trade along with the political areas. But, in line
with the general impact of the high Kremlinite's visit, here, too, the remarkable feature is
>*i
i
i s
the performance of the host citizenry rather
than that of the "distinguished tourist." Witness
statements like these uttered not by him but
by the U. S. industrialists in meeting with him
$11
must substantiate skepticism about the seriousness
in Cleveland.
■
imw
Wiltred
Etherington
from Van Cliburn to
Marilyn
proclivity accentuated in this instance by the intriguing
from Mars who dresses and walks like
an
ordinary
duties
have prevented even-up repartee at public and
March
1956
and
an
furthering
and
"Manchester Guardian" cites
by various strata of
his
enabling him
as
excuse
a
"brand
salesmanship
"sell"
to
Secretary in Sept. that year. He is
graduate of Wesleyan University
a
Yale
and
And
and
with Milbank, Tweed, Hope
Hadley, counsel to the Ex¬
change.
Stearns
Mr.
law
In addi¬
by agreeing to many of the major Soviet
equally uncalled-for
the
were
compliments from
seif-appointed
diplomats and would-be negotiators, disseminated both here
fering with
very
Union,
those
of
expert
are
our
duty
country's foreign policy.
York
City. He attended Columbia
High School in Maplewood, N. J.,
and is a graduate of Dartmouth
College and Harvard Law School.
Etherington's
will
close
liaison
include
performing
high
of
rank disservice in inter¬
a
officials
who
determining
charged
are
and
with
maintaining
the
Fortunately Under Secretary of State for
Chief
satisfactory flow of East-West business.
Executives
crucial
efforts
inexorably made known
since
to
World
preserve
War
the
II.
peace
inept, however well-meant, actions of
appointed diplomats—here
For
the
now as
well
our
as
overall, the
to both of the nation's
Let
be
And
not
the
further
President's
hindered
by
growing horde of self-
"on mission" to Moscow.
HILTON CREDIT CORP.
Jan.
On
and
nance
16, 1899, when rugged
was at a peak in fi¬
industry, when curb
market traders still received hand
signaled
or¬
from
their
clerks,
perched
sills
Prospectus
upon
on
open-air
Telephone: Dlgby 4-2370
and
contract
volume
is
a
public
works
brightening
increase
5%
In
1956, contract volume hit
1957, dropped to $18 billion.
prospects
a
S21„7
for
over
billion
industrial
record $114 billion backlog of proposed work indi¬
a
195.9 will
be the second best year in
heavy construction
con¬
tract volume.
Industrial building is now expected to show a 5% gain over
1953, instead of a 15% drop forecast in August. Reason for the
change is a strong upturn in proposed industrial building during
the final quarter of 1958, particularly in December.
Further in¬
could push 1959 up even more than 5%.
private mass housing, a 3% gain is expected, although
prospects appear dim for the first half of this year.
New legisla¬
tion in the spring could pull awards up.
But if this legislation
consists primarily of added funds for the Federal National Mort¬
gage Association, the results—like the results of last year's action
—will be only temporary.
However, should the interest ceilings on government-backed
mortgages be removed, mass housing would probably score a gain
creases
In
much
greater than the 3% rise, the magazine states.
A further indication
of a plumper market in heavy construc¬
backlog of proposed work. A big spurt in private work
and a substantial volume of new public works proposals combined
to push the "Engineering News Record" backlog of heavy construc¬
tion is the
in planning to a
tbA fourth consecutive
tion
record $114.2 billion as of Dec. 31. This is
monthly increase in the magazine's backlog
volume.
The total backlog is now more than $1 billion above its previ¬
high in March, 1958, and nearly $3 billion higher than a year
ous
ago.
contract awards for most major types of heavy
expected to rise above 1958 totals. New all-time
Moreover,
construction
are
predicted for waterworks, sewerage, bridges and high¬
are
New Business
The
Incorporations Up Sharply
number
business incorporations
of
rose sharply in
highest level for any month on record,
reports Dun & Bradstreet, Inc.
This boosted the total for 1958 as
to
December
a
reach
whole also to
tered
in
new
the
peak level.
a
The number of new concerns char¬
pecember was 16,446, up 36.0% over the 12,090 of the
prior month, and 55.5% higher than the year ago 10,575. The
December, 1958, total exceeded the previous record of 13,633 that
occurred in October, 1958, by 20.6%.
The aggregate of new charters for 1958 as a whole came to
150,286, for an increase of 9.9% over the 136,697 of 1957. The 1958
level was 6.8% above the prior record of 140,775 of 1958,
the
was
in
a
15% rise in initial claims for unemployment in¬
the week
ended Jan.
3, but a year-to-year decline of
prevailed. The week-to-week increase was due to seasonal!
post-Christmas layoffs in trade and labor cutbacks in the apparel,
food processing, and construction industries. The most noticeable'>
rises occurred in North Carolina, Connecticut, California, Texas
and Pennsylvania.
claimed
get
^
job, went
at $5
to work
week
a
for
runner
W.
&
J.
Herbert
S.
Bachman
Selig-
&
man
a
as
Sixty
Co., New York.
years
later, Herbert
S.
big buildup in steel buying is gathering steam, according?
to "The Iron Age," national metalworking weekly.
"Iron Age" said orders to some mills are pouring in at a rate;
faster than the mills are shipping.
Thus, order backlogs are;
The mills are beginning to fear they will have heavy
mounting.
Continued
Bachman is still employed by J. &
W. Seligman & Co. The firm's
has
with the
of Seligman
and
longer to be found
firm's
pile
the name
among
partners. But, the fif¬
up a
of
1899
has
re¬
unique service record.
Plymouth Planning
HEMPSTEAD, N. Y.^Plymouth
Planning
Corporation
has
been
formed with offices at 320 Fulton
Avenue
business.
to
on
page
68
changed
years
no
i
.
The
WHAT DO CONSERVATIVE TRUSTEES THINK
OF STOCK IN TODAY'S-and TOMORROWS-MARKETS?
Read
engage
in
a
securities
ilie
"Roundup of Trust Investment Opinion" in the current
and Estates"—the professional journal of Fiduci¬
issue of "Trusts
aries since 1904. Also iu this issue: A person-lo-person panel inter¬
view on the prospects of the Machine Tool Industry with officials
of the
Teletype No.: NY 1-1942
1959
15%
ket, a fifteenyear-old boy,
to
6, N. Y.
billion.
in
Booming
building and
surance
request
New York
estimated
$19.2
There
mar¬
Form
Broadway
This
1958's
record
Unemployment Claims Rise
low buildings
facing the
mained through all these changes
SIEGEL & CO.
'/
of the
teen-year-old
Bought—Sold—Quoted
sum, estimated at over $1 billion
during 1959, according to preliminary
the window
the
HILTON CREDIT COOT. RIGHTS
out
Heavy construction contract awards will reach $20.2 billion in
1859, highest volume since the boom year of 1956, predicts "En¬
gineering News-Record," a McGraw-Hill publication.
highs
individualism
business
Banks, Brokers & Institutions
be laid
The industry now has a record high
steekmaking capacity
totaling 147.6 million net tons of ingots and steel for castings an¬
nually. During 1958, the capacity went up nearly seven, million
as
industry.
is
39
Ex¬
Celebrating
Sixty Years on Wall St.
sixteen to
a complete illusion
revising the strategic materials list will bring
outlays to more than
Expenditures have equaled
inclusive).
ways.
who
a
between
in the securities
the chronic plea that
about
responsibil¬
maintaining
change and such organizations
Economic Affairs Dillon and
Secretary of Commerce Strauss know
that the Soviets' long actual record shows as
true score has been
of
Parke, Whiteside & Wolff in New
ders
The public as well as private utterances
by these
and in the Soviet
formerly with
Chadbourne,
was
firm
1958
figures of the Institute.
Bachman
image."
the Chicago lawyers' group on his candor.
U. S.
Before
Wilmer & Broun and also in New
to
demands.
School.
Law
joining the Exchange, he practiced
law with the Washington firm of
the
the unrealistic reactions exhibited
hospitable American community.
war
appointed
and
what
the instances we have already cited
above, there is the
petition of the 42 prominent citizens demanding that the United
States end the cold
was
postwar tctal for such
addition, another large
is scheduled to
cate
mission,
the
Federal ' Reserve
Board, and various organizations
immeasurably
can
as
to the occasion of last Sunday's
up
latitude, along with filibustering privileges, in answering
But none of this
join
Inc.,
program), giving him unlimited time
"Meet the Press" TV-Radio
effectiveness,
to
,31
Investors,
the Securities and Exchange Com¬
ings and interviews (at least
tion
semipublic meet¬
will leave the
Etherington joined the Ex¬
change as Assistant Secretary in
Mr.
questions—all
will
liaison
March
on
ities
propaganda
he
1,
Vice-Presi¬
as
of
charge
to
billion per year during six of the past eight years.
net tons.
Mr.
mortal.
And the amenities of high protocol for this itinerant Bolshevik
exceeded $1
or
the
(1946
formerly
was
April
On
new
in
the
Granted the public's never-failing and widespread addiction
and space
as
Vice President.
up
to recurring engagement in international appeasement.
a man
Mr.
York
in the traditional American spirit to try to
the glamor individual,
Stearns
Secretary of the Exchange.
Fundamental
bygones be bygones, to engage in wishful thinking—all adding
Monroe—a
President and John P.
Exchange
think the best of one's opponent, to turn the other cheek, to let
vision of
Funston, President of the
Stock Exchange, has
announced
the
appointment
of
Edwin
D.
Etherington
as
Vice
York
John R. Haire who
'
"ogle"
keep
raised
billion
In
Keith
New
with
governmental agencies and other
organizations.
He will
succeed
Appeasement in the Good Old American Spirit
course,
John P. Stearns
Etherington
dent
May
And,, "We try to think that we are differ¬
ent from other people. We say they are 'Com¬
munists,' and yet we are going in that direction at a tremendously
rapid speed. There is also every indication that the Communists
are going toward capitalism, at least to some extent.
I do not be¬
lieve there is much doubt but what before long the agreement
between the two will be much closer than anything we have seen
before."
'
is, of
D.
assume
require changes by our Congress in restrictive
legislation that now proves a serious barrier."
"People can be competitors and still get
along together. Mutually profitable commerce
would be a further and broader path to friend¬
ship."
It
E.
Secretary.
"Mutually profitable commerce would be
path to friendship. To
enable such international trade will, of course,
further and broader
A.
to
laid out $1.2 billion for new equipment and construction
during .1958, according to American Iron and Steel Institute.
GomUlka of Poland, Nov. 18, 1956.
the
Production
Electric Output:
Carloadings
dine, and Caniff, Nov. 23, 1957.
"Whether you like it or not, history is on our
to
Steel
State of Trade
for using such
an expression—in the peaceful field of trade."—Nikita S.
Khrushchev in his interview with Messrs. Hearst, Consi-
a
Thursday, January 22, 1959
.
The
By A. WILFRED MAY
"We declare
.
r
Appointed by NYSE
.
.
.
•
leading
company
in the field
.
.
.
and—
Labor Costs and
•
Profits—O. Rogers Flynn
Henry Ansbaclier Long Mutual Fund Index
Planning Your Estate—Geo. J. Laikin
1959 Nuclear Energy Outlook—V. R. Fouler
•
•
Subscription (12 issues)- -$5.
Trusts and Estates, Dept. F
Single Copy—$1.
50 East 42nd St., N. Y. 17
Volume 189
Number 5814
.
.
.
The Commercial and Financial Chronicle
ductivity.
Business Outlook and the
our
*
RICHARD
half
Fourth
The
Estate—"But
words
things, and
are
which makes thousands, perhaps
a
General Partner, Paine, Webber, Jackson and Curtis, N. Y. C.
to conclude that
Oar office has been hushed
quiet
as
past two weeks out of respect and
co-worker and friend, Harold R.
of
our
as a
to
church these
veneration for
Brady, who had been
one
Harold
R.
ago,
Brady
with
as
a
began
young
his
man,
us
as
In
late
Brady
years
V
he
has
t I
:
I
ecy
.
only; iri
can
present;
forces having
be
a
5
I
as
r
•
humble
my
them, the
see
T
'
1
•
ring
security'
Under such circumstances, is it
on
the other hand,
upon
have
and also
was
"State of Trade"
column
Associate Editor of the "Bank & Quota¬
an
—
-
*
•
ignored
•
a curious
mainly in
wages and Treasury deficits; the
latter having the effect of pouring
money into the banking stream.
Harold
Richard
Brady
was
man
a
of exemplary
corporations
inflation—it is
Other
ingredients
are
of
our
1800
our
bodio"mFnedl
ui«e
an
excess
plant
for
under
our
present
If one can borrow^ at
5%, then that money is costing
stockholders less than 2%% be¬
of the 52%
cause
ca¬
the
For
tax.
pacity in many of our industries,
and goods are no longer in short
supply.
Foreign
competition
is
beginning to hurt both as to vol-
business is
is
United
lax rates.
lacking.
There
the
Borrowing is made attractive to
experiencing
are
of
then
plentiful
competition as.it asks
increasing sums of money.
-
We
un¬
In
be¬
con¬
stiff
for 25 years.
now
scarcer
tinue
-
handicaps
Supplement.
lenders
States Treasury is going to meet
a
"
operating:
tion"
If
and borrowers
nor can we have what we do not
earn.
These simple truths have
the
of
justifies?
come
sort
look at'
a
some
credit
_
nation we cannot continue
to spend what we do not have;
As
der which
CHRONICLE'S
logical to expect people and
corporations to borrow if their
aver-
aged a shade over 5% yearly.
been
a
flight from
not
increases,
prices in 1959.
We might, ;
preliminarily,
•?
:
written the
'
My subject is not an easy one,
and since I lack the gift of prophway,
and versatile Editors.
Harold
*r
■
It's harsh to say,
now some
the dollar.
of
years ago, one
'
office
an
higher than five
but there is
the highest on record.
newspaper
boy and by
assiduous effort in all departments of the
paper, worked his way up to become one
of the CHRONICLE'S most dependable
career
two and one-half times
now
day's sudden illness
a
than those lent.
price-times-earnings ratio, observes that investor confidence is
Yes, without warning or previous in¬
dication, the bell tolled for our beloved
after only
January 14, 1959.
Forty years
lenders
dollar can make stocks go higher.
Noting big shifts in investor confidence in stocks in terms of
editorial writers for years.
friend
rising
tinuing distrust of the
our
govern¬
issues maturing
price because wages are
faster than productivity,
of
money
will become
increasingly fearful of being re¬
paid with dollars of less value
point to lower stock prices than
higher levels. The securities dealer adds, however, that con¬
'
marketable
our
be¬
to rise in
of them
more
deficits
of life; with nearly
way
If manufactured goods continue
Mr. Stack's enumeration of 22 outlook observations leads him
millions, think.'"— Byron.
must think of
within one
year, the Treasury is faced with
one debt refunding after another.
'
small
thought, produces that
upon a
a
of
ment
By LEE P. STACK*
drop of ink, falling, like dew,
we
government
coming
Stock Market in 1959
BRADY
Also,
tax laws.
With
In iitemnruuit
HAROLD
5
(401)
corporate income
reason,
if a
same
sells
corporation
preferred stock
at 6% then the cost to its common
stockholder
is
than 12%.
more
and°prices; and this constant
to our
Ifttoand '1■■■■■■ ,threat sh™ld Prevent our price spendthrift Government at rates
tnnir not
L' P' s,ack
levels Setting completely out of lower than avaiiable elsewhere,
of
the
halld* The tremendous rise in pri- During war it is a duty, but not
omy
in the form of taxes only vate debt in recent years can now. Look at France: Even with
10% of the national income.
In hardly be repeated.
some improvement m govmiment,
interest rates are running from 8%
oral
character,
Human
color
a
staunch Roman Catholic,
a
lover of Peace and
econ-
Understanding with all Mankind, whatever
race,
persuasion.
or
Mr.
Brady's rectitude of mind and
person was
focal
evident
century and a quarter
govermnent took only 8%
1925,
later,
a
in all his
writings. As
Estate, Air.
a
lifetime member of the Fourth
Brady always wrote his articles with
pas¬
proximately 30% of
goes to government.
fidelity to truth, preferring to state facts with
moderation
exactitude
and
evaluate
over
rather
than
for sensational
them
or
to
or
news¬
tax to buy
not
life
effect. This studious and open-minded style became
terest
long habit with him, which he followed in all his
Clearly, the world
total
than
more
this
deficit
predicted
billion.
$8
about
to
These two items
the
thinking and convictions.
indebt
national
the
on
of the
ill afford to suffer the loss of
realize that during the
Federal Govern¬
ment has run a deficit in 23 of
Do
you
sterling quality of which Mr. Brady
was
the
these years?
I
this,
our
parting farewell,
we,
his lifelong editorial
co-workers, reverently and unanimously rise to our feet to
represent no party; and there
need blaming either party.
Since 1925 the Republicans have
been in control in Washington for
is
Harold R.
Brady Godspeed to his eternal reward—
knowing full well that
we
Christian
a
member
Jan.
gentleman,
of
his
Church
do homage to the
patriotic
and
a
memory
American,
faithful
friend.
of
a
devout
a
(A.
W.,
and the Democrats for
22 years. Neither party has shown
any
will to arrest inflation; to
years
reduce
of
=
~
1
In its
|
Reynolds
=
Investment Review
new
taxes; to
living;
halt the
| Natural Gas Industry,
1
This
deficit,
year's
of 25 years
The latest
contains
standing
This
in
to feed upon
a cancer
which
fense
to
tions in the natural gas
There
foreign-aid
programs,
Whatever your
—
new
There is also
productivity.
Last
stated
Slichter
man-hour
per
this matter of
between
that
has
month,
industry in the
your
free
copy,
below.
Members New
York Stock Exchange
slowing
120
We all knew that but he gave
some
figures:
In the five years
Call...
gas
Reynolds Investment Review. For
Rcyholcls & Co.
Prof.
productivity
been
combination of Growth and Income
re¬
and
wages
characterized
industry.
should read about the natural
mail the coupon
Maybe they are all necessary, but*
can none of them be trimmed?
lationship
you
are
personal investment objective—Growth,
Current Income, or a
programs,
commitments far into the future.
block?
stocks which
by vast in-the-ground wealth and strong strategic posi¬
speculative appeal. All four companies
housing programs, vet¬
the Social Secu¬
rity program and many others.
They are continuous and involve
large
recommends four natural gas
professional opinion now oiler excellent investment
We must excuse the de¬
as necessary, but
program
farm
erans
of
growth. A fourth stock is recommended for its attractive
programs,
sell
one
Any effort to
complete
itself.
what about all the others?
are
—
largest and most consistent growth industries.
Review
our
Co.'s Investment Review
informative report on Natural Gas
opportunities. Three of them currently yield from 3.4%
to 5.3%, and,
we believe, olfcr superior prospects of
seems
arrest it ends always in
futility.
issue of Reynolds &
an
America's
of profligate spending.
This habit is
Recommends 4 Stocks
rising
nor
alone, would not harm this nation
noticeably. It is only the climax
Like
Research
| Discusses the
to protect
American industry from foreign
invasion—and certainly this is a
menace to American employment.
cost
17, 1959)
a
*
no
11
bid
without compensating pro-
syillllllllllillinilllllllllllllllllllllllllllllllllflllllllllllllllllilllllllllllllllllllllllllllllllllllilllllllilllllllllHHIg
year.
can
personal embodiment.
In
,
fiscal
last 28 years our
men
creases
Neither
billion,
it have to worry about
amounting
a
year's farm
a
house suffici^tly In order to
expect lower rates in so short a
time. It could transpire that funds
Continued on page 22
0Ur
with that mill- &nd mortgages, must take account
Russia does of Treasury deficits and wage in-
up
surplus for $6*/2
does
paper
interest-
bearing securities, bonds, notes
long stand against
wc
enemy
iuthinkingofinterest^tes
during the rest of 1959, I simply
can^ see j10W we can expect to get
.
of
discussion
stone about our neck?
overstate
rhetorical
can
shrewd
a
-
.
,.
.
Any
'
How
sionate
s?>
Effect of Tax Laws and Inflation
income
our
to 10%.
II
Now ap¬
of the national income.
up.
Broadway, Dept,CF-l, New York 5, N. Y.
(Attention: Richard S. Graham)
1947 to 1952 there was an increase
Marketing Department
of
17.%%; but in the five years to
1957
In
Merrill
Lynch, Pierce, Fenner & Smith Inc.
70 PINE STREET
NEW YORK 5,
the increase
the
was
gas
first
per
a
Review which
recommends four natural
free copy of your Investment
analyzes the natural gas industry and
only 9.4%.
period it averaged
and during the
last five years only 1.88%. Wage
3.5%
stocks.
annum
E
NAME-
=
ADDRESS-
(PLEASE PRINT)
N. Y.
♦An
Offices in 112 Cities
Please send me
address
Business
by
Outlook
Mr. Stack
Conference
before
the
the
Los
of
Angeles
Chamber .of
Commerce,
Angeles, Calif., Jan. 13, 1959.
Los
^lllllllllllllUllllllllllllllllUIIIIUIIIIIUllllllllUIIIIHIIilllllllllllllllltlllllllllllllHIIIIIlllllllllllllllllllilllllllT?
6
The Commercial and Financial Chronicle
(402)
It is the
United States of America that
By DR. GABRIEL HAUGE*
above
and beyond
ordinary daily
the
Questions High
some
Denying inflation
casts
of
have
been
is
the distension of inflation.
germaine to growth, he importunes business to communicate
the public and con¬
tends that a wider understanding of the economic issues by
millions of Americans "would make a difference." He fully
decisions that lie
nation in 1959.
decisions
us
a
as
are
not
before
Fortunately, these
sort
the
face
in
us
declining
c o
e
n
y.
they
relate
to
is¬
less
sues—no
stubborn
in
their way
—
arising
First, consider the rate of
growth.
The subject
from
the process of
As
economic
of
growth.
In
immediate
we
Gabriel
Dr.
are
longer range sense,
the
start
of
of research
era
dramatic
and
new
a
and
development,
of production technology and of
the wider use of goods by a pop¬
ulation already so well provided
that a third of its expenditures
falls within what has been called
"optional consumption."
We stand
That is
dollar
—or
its
accountable
for
We
also
stand
decision
achieve
this
the
of
whether it
the
-
at the
; *
threshold
prospective,
economy
to be in
is
*
«
-
to
expan¬
real
know, a considerable
is
developing
in
controversy
Washington as to what emphasis
policy this year should
place on increasing the rate of
economic
expansion
achieving
on
prices
the other.
will
the
hand and
one
greater
011
doubtless
This
continue
through 1959, but for
to
ling.
will
be
if
we
some
only
years
in¬
control¬
are
don't
you
able
tions
debate
not
know
wherd"
going, of
take
toward
parties
or
If
you are
of
regardless of which
come,
dividuals
on
stability
course, any road
there. We should
you
to
make
better
progress
decision in these matters
ask ourselves certain
ques¬
a
about
in
growth
our
econ¬
(1) What
is
a
tainable
desirable
growth
economy as
(2) Where do
we
rate
at¬
for
the
whole?
a
to take place
and
mainly in the
private sector of the
economy
or in the
activities of govern¬
How
can
nomic
hence
we
act
that
so
growth
is
eco¬
of
a
Each of these
questions is
ranging
answered in
less,
some
ered.
and
one.
one
paper.
aspects
Maybe
a
cannot
can
spark
be
a
far-
Neverthe¬
be
or
be struck.
Perhaps
action
consid¬
two
can
be generated.
*An
can
address
Economic
Club
City, Jan.
14,
an
impulse to
by Dr. Hauge before The
of New
York, New York
1959.
we
launch
can
forts to insure
complete
On
sustained
doctrine
it
record,
from
repudiation;
is extremely
open
-
My
From
ef-,
new
our
urban
our
slums
lie
of
some
can
beyond
mysteries
planet.
our
dangerous
The
facts
It
bread
and
—
been
We have
that
this
because
—
to
can
;
Paul
to
sometimes
denigrating
growth record which
for
has aver¬
annually.
This
has been compared
adversely with
3.6%
reported
+K
/"V
C
ntfl
aJ
rate
twice
of
TTmIpW
the Soviet
4-
Union, to take
that
in
n
sive]y in
future
An
■our
iJiuuuciiifc
on
"incontroverti-
make
it
^^^
growth
rate
the
very
soon
billion ol
services
time
in
well within
seems
This would
and
corro-
economy,
annual
^
a
and
year
went
That
more
It is not my purpose to
speak of the bases of such a com¬
as
would
be
parison, but
£ia^ 8'lowth rates
stages of
economic
on.
sufficient to make
sure
of
should remember
we
are related to
development.
the
efforts
the
United
of
other
peoples
States
an
■
-
economy exearlier sta^e c
ier stage of its
development, from 1880
growth rate
the
this
to
economy
that
great industrial power.
more
™
products that
market.
a
of
are
When
com-
with
or
not yet
on
the
multiply this
we
ls obvious
reasonable
but
attainable
ra^es
growth in terms of our
experience will yield the ; re-
that
our
economy has continued to show a.
growth that is substantial in
per-
-souices to make stiiding progress
centage terms—- and, of course, -*11 tae American way of;life, and
larger than ever in absolute terms
£or these
several
we
approached
hood.
decades
industrial
since
-irJ sitrengthening the foundations.
oi the. Free World within ..which
to live out our lives in peace and
adult-
.achievement with
-
our.
Moreover,
froff
ave
exciting^ years
new
lie
ence
and
of
current
expenditure
uoorlxr
of
tion
--
JT
over
We
$10
this
r\n
•
yearly on scientific redevelopment plus popgrowth
and
provision
neUeedVpublicf faS"e
every reason to expect the economy to move ahead
briskly in the
coming decades. And we have the
further expectation that in
this
economic growth, we shall have
a
richness and
Growth
—
—
^
new
'
;i
growth
•
_
it.
_
to
take
i
i»
we
—
want
place—
j
primarily in the public sector or
in the private sector of the economy9
at
hav°e
the
alone
'•
^" thou®h th« current upturn
m luslness,may be characterized
a! "f mos,t TOmPet'tive recovery
•
"hough fth^lulWn'0 inflationary
•
+,
Guns
„
among
,
and
guns
"sThe improvement in
ards of
yote
Jiving will, of
o1nwiv
morp
our
aU
if
than
ofsour
our
stand¬
course, move
pnnlrl
wp
Hp-
efforts and aU o£
services.
But
with
even
increasing
penditures
level., of
Rockefeller
defense
equivalent
the
an
ex¬
that
to
Fund
Re¬
daily
the
in
the
living of the
department
The
woman.
portance
increased
assumed
horizons
im¬
contributor of wider
as a
outside
the
homes.
It
offers the products of a thousand
arts and industries, of a hundred
nations.
The
department
store
offers not only goods and services,
but
often
social
education
for
contacts
better
and
living.
It
glimpse of the dimensions
beyond the limits of city or town
gives
a
its
—and
contain
wares
desirability, and glamour.
Whatever
utility,
;
•.
,
»
the
goods which
result from the skills of fii-
j^ay
ture
are
production
ingenuity
them
in
will
the
tomorrow's
and
research,
be
many
of
available
made
to
the counters and
consumers across
shelves
the
of
Products will grow old
lete and may even die
stream
capacity to peacetime products
and
the
has
from
Butter
and
have
can
store
the
build
butter in adequate amounts.
/
that
fills
of
the
retailer.
and obso¬
the
new,
but the
—-
needed,
and the desirable will maintain its
force
store
and
its
pour
torrent
from
to home.
To
paraphrase President Conant
Harvard, retailing may be the
newest of sciences, but it is
among
of
the
oldest
of
fundamental
But,
omy.
port recommended, it is my own
0pinion that our living standard
mentals
cities.
and
arts.
It is truly a
activity in the econ¬
although the funda¬
of
retailing
may
never
change in their basic elements, the
could be, improved _ and this methods by which they are mainphenomenon should be possible tained v i g o r o u s, effective, and
without the consequence of any highly competitive in a
changing
inflationary surge born of scar- world must be modern, aggressive,
As
*
important
as
progressive.
And,
of
course,
distribution and
for
pressures
tion
increased
produc¬
continuously building up
as
they are by many
causes.
The needs of a growing
population
and ' a
continuously
larger defense program have as
probable
consequence
not only
are
gressive, and progressive, retailing
must
adopt wholeheartedly and
maintain
steadfastly
constructive
and
a program of
intensive
re-
search.
^
I live in the conviction that iri
American Economy the chief
our
contributor to the maintenance of
prosperity lies in distribution and
well; and the alterna- in the development of better and
tives offered by increased wages better methods and means of disare
ejther higher prices or suf- tribution; and lam convinced that
fjcieritly greater productivity to within retail distribution, the de-
increased capacities but increased
wages
as
0ffse^ these wage increments.
partmental
store
still
represents
,
jmDroving
improving
productivity
proaucuviiy
is
is
of
ui
tbe best mechanism yet devised.
the result_of
more effective
production.
And the
of.
'
,
_
_
May I say
am
again that although I
certain that I am not entitled
to the recognition accorded to
me,
happy to substitute for
my
^on
r+u
rw
this discussion: Where do
search and
ulation
at
—.
omic
the second questhe beginning of
now
raised
-
r/iAnomi/i
of Eco
Consider
,
technology and in new
family living. With the
___.,,
»
ce
alone
can
earth, and continue
on
role
t store
requirement ,of present and improved methods of mass produc-
-j-
Sou
frontiers r
continued to emerge in sci-
Have
-
methods
5r 0ur systen\ of pri-
•
incentives,
S.
nations
standards of living of our citizens.
course
neighbors.
.
vate
U.
an
the
-stimulated
new
-
10 or 20 years> lt:
is
the
such
as
conclusion
significant role in the future. The
a
of
amount
■
,
a
it
But
remarkable that
equivalent
an
as
from
with
-pletely finished home
always
period
transition
a
frontier
We have
of
proud
marking
now
to 1920, a
about double that o£
last decade.
been
bome aad s.tiii bl0X^e
families
&
state
the
men
? would not be loyal to my own
consumption have been
in our industrial and commercial idol, if
in
economy
in the past, they give I did not emphasize my conviction
promise of playing a much more that in order to be modern, ag-
Actual*; =cs iScatTS
perienced at
to
me
that
greatest and most modern defense
our defenses, provide resources
through various channels to help
point.
for
"incontrovertible"
tenet
from
condition, it becames possi-
a
ble
derived
which
itself
exerts
our
grasp.
confidence
can
'meaa an additional
in
progress
producing more
muic
producing indre
un
on
vicinity ol 4%
art
«
a case
We
wherever
the past
over
Iivt
spur growth, too,
competition healthy
resisting
monopoly
power
ancf
we
In
keeping
by
example,
aged about
a.
for less.
economic
our
We
new processes.
our
not
lor more, but
we
think
I
faster.
such
.
.
community—and in the rout¬
average
ble" statements—because they can
be neither proved nor disproved,
With
people possess-
more
essential
an
ine# of
Mazur
those
that
depends,
uciJcuua,
ourselves,
of
en-
that
regard, it has been well ob¬
served
always sought to do bet-
But
in
more
critical
enhance
equipment and
this business of supplying daily
have
is
It
believe
Retailing-.,
American economy, in the Ameri¬
..
us are
possible
is
depart
and
knowledge-:
most, of
and
more
..
g a m e
o f
s'ta t escraft.
prospects by
changes in our fiscal system which
spur
investment in modernized
We have gone ahead as a nation
in
to
somewhat
grow
can
and
the
"
this:
is
reasonable
Considering the vast imin technology and in
stock of capital, it probably
our
eroded farm areas, better our edu¬
cational opportunities and pene¬
trate
view
own
tirely
of
ing a higher and higher standard
of living, r"
*
-•..'/ ; \y \> 7 r,'
investment." His¬
false
and
the
pro¬
stop:^;^-
to
the
or
and. available
its intellectual prisoners.
security, foster
strength in the Free World, im-'
prove the level of family living;
nil linn
billion
fully
that
saved
the most imporis
truly
its
economic base.
our
ways
stable dollar?
national
to rebuild it, and at the same time
maintain and even
improve the
healthy,
steadier, in terms
public
be
they
their
soon
as
defense
mechanism
pf
that base
ment?
(3)
only
or
fast
as
team either in
i:
provements
ing
want this growth
—
malady
a
stagnation":
the
ously moving into consumption
the goods we will produce—dis¬
tributing more and more products
decade.
massive
perhaps
omy.
to quarterback
our
produced,
Responsibility
It is difficult
a
into
pour
Retailing will have the respon¬
sibility and the task of continu¬
totally;, inadequate.
However, so
tory discredited this theory. Pub¬ long as' we deal in matters eco¬
lic expenditures then undertaken
nomic, we can remain
in
the
produced no growth rate to cheer happy, mental, state of non-provabout.
Only the advent of war able conclusions. Therefore, it is
our
decade,
As you all
it
will
goods
duction will
all
err
inflation.
growth
and
be consumed
must
apparently^lively tempta-'
achieve
to
should
economy a larger and larger
stream of goods; and these
are
-
the economy can continue to grow
at least
as
fast as in the. past
ter.
in large part, the distension of
or,
man
will avoid the
,
from- these
of
rate
first
could
vast
that
affairs—represent a
deepening and broaden¬
manage
to
as
by
and
tion to destroy
arg ament ; that> to ; man."
;
'
"secular
it
relates
difficult to support. It merits the
attention today of no one except
terms
and
that
that
any
potential.
I speak now,
growth in the special sense
of making up depression and wartime
shortages and losses,
but
growth that can—if we prudently
his¬
to, how-best
as
sion
been
ever
in
'
-
people
no
leaders—have
tory of the world.
of
economy."
something that
held
a
hoar
plagued with
omy was
characteristic
rebuild
the threshold of
on
"half-trillion
on
conjecture
any
phase of our economic
future, it is necessary to assume
that we will escape World War III
public
more
called
look ahead to the future
economy,
intent
.
1
In
to
that
spending.They
are
reminiscent
of
the
theory
propounded by the pessimists of
the 1930s that our private econ-
not of
at
we are
the
accept
fiscal
fruits
of
they are actually
the
high
a
to
growth
seem
We
necessary
on
growth
Hauge
rebounding
vigorously from the 1958 recession.
a
j
we
tant
terms
has
attracted much discussion and in¬
"
significant role, as .prerequisite to improved mass production.
Hence, hails retailing as fundamental activity in the economy.
high fore-
high rate of public expenditures,
In practice these proposals usually boil down to an emphasis
eco¬
nomic
"
m
o
Rather,
In
insure
lieve that
a
,
quarters
quiry recently, as you know. This
is good. It is quite wrong to be¬
economic growth in a
free society proceeds quite inde¬
pendently of what we as a people
do or fail to do about it.
By the
same token, it should be pointed
out
that
economic growth
is a
fundamental
thing that is
not
conjured up by elaborate arithmetic and by placing a tap on the
public fisc.
that would
its
of
lately propounded—
by those politically-
who
achieved.
fiscally sound, economically
is
play a significant part
taking of certain economic
economic
spending
the
growth before
can
in the
difficult
it
PAUL M. MAZUR*
partner, Lehman Brothers
Banker economist maintains U. S. alone can both maintain
world's greatest defense establishment and raise
living stand¬
ards. Expects distribution and
consumption to play even more
provision
Forecasts
of the extremely
inclined
valid, and essential to economic growth via the private vector.
We
find
I
especially
the facts about inflation's consequences to
endorses tne President's budget as
By
Having said this, I must admit
that
Economy of the Future
Senior
people.
threshold of a "half-trillion dollar
economy" and a 4% annual growth rate is within our group,
Dr. Hauge asks whether this prospective expansion is to be
or
Thursday, January 22, 1959
.
a
needs
In declaring we are on the
in real terms
allocate
now
of
City, and
Eisenhower
Adviser to President
Economic
Our
our
large
and increasing share of its future
growth for the attainment of ends
economy can
Chairman, Finance Committee,
Former
unmatched
by our
nation's experience.
unique prospect of the
or any
own
Manufacturers Trust Company, New York
.
services
and
Some Aspects of Economic
Growth and Public Policy
.
own
maintenance
growth of huge volumes
~
Inadequate
sales
selves '
* '
'
them-
I
ductive
use
■
cumulation
of
they choke the
or
in
the
inventories
ac-
until
and start
dangerous spiral of deflation.
For many
deed
economy
reasons,
it
seems
in-
likely that with each passing
year~ our
To
Mrs
Production mechanism
ho
the
Davis
Coller
Tobe
Award
-
the
„
^
Oscar of Retailing,
I offer my
congratulations for the esteem in
which
by
she
is
deservedly
so
those who at the
are
her
elientS|
her
same
held
time
friends> and
her a(jmirers
As
for
-
Pressure on prices that we now
diversity of goods '
Continued ori page 69
Tobe
1
of expanded pro-
capacities
am
judgment your measurements
of my merit,
in either high costs because
..
of inefficient
the
of sales,
express
*
and
*a talk by Mr. Mazur in accepting the
who
j^n"m,Ti959.Award' New York Clty'
who
is
are
me,
one
I
of
admire
both
her,
kind,
and
you,
a
her friends.
-
-
Volume 189
Number 5814
.
The Commercial and Financial Chronicle
.
.
premium
Molybdenum Coiporation and
per
book value of $9 income, nor to those who set great,
(Cash position, how¬ store on long records of rising
is excellent with over $8% gross and net earnings. For the
million
Enterprise Economist
'
r.
A current look at
a
company
ity in important alloys for
onr
tjkmships between earnings
and
tho. market
price
is
,
t
es¬
of
kinds,
fu(Th
res
e
doesn't
s
e
t
n
t
a y
around
long
fenoiigh to get
counted). So
.it is, that a
oil
*
future
~
less steels and
in 7*% live,
Great Lakes Steel said: "The
at 20
steels
times
Earnings or
possibly more,
Ira
U.
Cobleigh
of
dend
payments,
while
ihantic stock such
tical
•
or
an
^ of 176,426 shares bringing
nnllion into the treasury.
Were are outstanding 1,570,950
common s ha re s listed on the
some
ro-;
pharmaceutransistor
as a
eager
volume
a
superior /qiiaii- around 27.
production baSis;
ties of strength, toughness and
Molybdenum common makes no
weldability previously,- only \ ob- appeal whatever to the buyer for
tamable in higher priced steels." —
Small
extraordinary
conjectures
i
the shares of Molybdenum Corporation of America fall.
This stock'
sold, and sells today, on ro¬
mance;
but the. romance now
to; be getting closer to
pas
^eerns
^ ^
f
s
What
are
some y of
the
things
the, last 13 months?; Briefly they
are threefold. Molybdenum Corp.
materials
which
have
been
gaining
strategic * importance in
pajneralogy. "The first of these is
piolybdenum.
'!
Molybdenum has been, for some
years, an important alloy metal
especially in the toughening oi
Steel.
Molybdenum Corp. is the
Second largest American processor
of molybdenum and is a leading
producer of tungsten as well.
These two metals have, for some
time,' accounted for about 85%
at .Albany, Oregon, a sample
cylindrical 'molybdenum casting
for the first time. Since molybdehum melts' at 4748 degree Fahrenheit, the cast metal now assumes
-Teal importance in the design and
production of a s series of parts
FliMA lo Sell Debs.
bow,
is
rare
earths.
Mr.
Marx
side; -Molybde-
of 1%
year 4%
secondary
market operations debentures and
$100 million of eight-month de¬
in the world ; at Oka,
Quebec, ,43 miles from Montreal. /
MLY owns 44% (Kennecott owns
46%) of Quebec Columbium Ltd.,
nounced
fhesfe
MLY
■golden store of the stuff at Moun¬
tain Pass, Calif.
Here the com¬
pany's property is believed to conr
on
the
the
largest
well
uses
of
you
rare
rare
earths
James P. Stewart Joins
They
are
useful in stain-
Townsend, Dabney Firm
(Special to The Financial Chronicle)
BANGOR, Maine
$150,000,000 of secondary market
operations, series SM-1959-A 3%
1959,
to
and
the U.
from
State Street.
6
market his
secondary
.
(
Mr.
Stewart for¬
investment
own
conducted
business
Bangor.
operations.
ILLINOIS
NATIONAL BANK and TRUST COMPANY
OF CHICAGO
Statement of
America.
...
*
v
biuin and
■
Liability
.'$2,857,982,123.07
LIABILITIES
5,667,121.64
23,710,630.63
Reserve for
10,000,000.00
Contingencies
Income Collected but Not Earned.
from
been
the
past
CAPITAL ACCOUNTS
Capital Stock (3,000,000 shares.
$
Par value $33«)
Surplus.
100,000,000.00
125,000,000.00
Undivided Profits
36,277,612.77
Total Capital Accounts
Total Liabilities and
pledged to
are
$
261,277,612.77
Capital Accounts.... $2,857,982,123.07
United States Government
obligations carried at $276,642,710.37
public and trust deposits and for other
as required or permitted by law
secure
purposes
an
un¬
BOARD
total
plus 1% in stock. "There was a
10% stock dividend in 1951 and a
a
large
OF
WALTER
J.
Q.
General Motors
r;
COWLES
Mitchell, Hutchins & Co.
CLJDAHY
ROBERT
Fairbanks, Morse & Co.
Chairman of Board
Swift &
Company
.
The
International Harvester
The Cuneo Press, Inc.
Company
CALVIN
.FENTRESS, JR.
Allstate Insurance
Company
Pillsbury Compcny
FRANK F. TAYLOR
Banker
CHARLES H. KELLSTADT
HERMAN WALDECK
President
Chairman of the Board
PHILIP W. PILLSBURY
Chairman of the Board of Directors
FRANK W. JENKS
President
CUNEO
H. MORSE, JR.
President
HOLMES
President
LA
Partner
Company
JOHN
Cudahy Packing Company
F.
Banker
WILLIAM H. MITCHELL
WILLIAM A. HEWITT
Chairman of the Board
JOHN
KENNEDY
President
JAMES R. LEAVELL
President, Deere & Company
Cowles Properties
EDWARD A.
DAVID M.
Chairman
CARRY
President
The
FISHER
Corporation
Commonwealth Edison
Pullman Incorporated
ALFRED
P.
WILLIS GALE
Managing Owner
Borland Properties
CHAMP
DIRECTORS
CUMMINGS, Chairman
Director
BORLAND
B.
J.
LAWRENCE
ADAMS
Real Estate
CHAUNCEY
84 centk per
10 years, and
price/earnings ratio and
$2,596,704,510.30
common
Net earnings/too,
nothing spectacular,
rising above
2,156,007.65
Total Liabilities
;.
1950-57.
in
6,900,000.00
Total Resources..........................
sales, which averaged about $21.5
annually for. .the eight
share
5,513,779.26
11,203,999.48
Banking House.
*
million
never
6,750,000.00
............
Acceptances.
Income Accrued but Not Collected..
r*
MLY
considered
little documentation in
have
on
Acceptances
and utility of
1
the analyst,
years
149,743,306,67
1,066,113,632.33
Reserves for Taxes, Interest, and Expenses..
varieties jot steel, sales of millions
By
816,618,523.80
.
Deposits................................ ,$2,555,170,750.38
these materials in more and more
must, be
Obligations
'*T
795,138,881.53
rare;
broader acceptance
«
.$
Other Bonds and Securities
Stock in Federal Reserve Bank.
V
v
.•
Cash and Due from Banks.....
Loans and Discounts......«,...
t
;
December 31, 1958
,
United States Government
v
Now in regard to, both colum-
'
.
RESOURCES
-
,
,
Condition
'
% '
'
James P.
associated
becom,e
to merly for many years
S. Treasury used
the
finance
borrowings
repay
has
Stewart
—
10, with Townsend, Dabney & Tyson,
debentures which mature Feb
an
content.
members of the New York Stock
10,
ing will be used to redeem the
and ;025 '■ tantalum. In addition, ■-< MLY owns another large _scale
deposit of columbium m South
indispensable element 2-for-l split in 1955.
<Misch metal) in. the flint in your
Here then we perceive in MLY ■
pigarette lighter. Rare earth com- a stock which, by reference to
pounds, are a valuable additive to normal - criteria of" evaluation is
steel increasing
workability and selling far too high. At 42 this
fluidity, and reducing the sulphur stock presents a fantastic
are
Feb.
The net proceeds of this offer¬
ore
say, but what are
earths? Well they
Marache & Co., 67
New York City,
about the morning
or
-Customers'
amounting to 51 cents a share for
1957. Dividends/ however, have
Teserves anywhere—at least two
been paid without" interruption
-million tons of bastnasite ore as- since
1940.
For 1958 'the cash
saying *10% in rare earths. All dividend was 30 cents a -share
'tain
very
t
deliverable
of Jan. 27, 1959.
,.
on,
find
dabbling in
exotic items
since
1916,
came
up, in 1951, with
a
Sheet,
Rate of short
1959.
vvith indicated resei-ycs: estimated
at °Yer 15 milUop.tdns assaying,'
together in nature, the most
common of these
being cerium and
After
Granbery,
Wall
Exchange, on Feb. 2nd will admit
Ernest T. Greeff, Herbert W. Mar¬
maturity and ache, Jr., and J. Sheafe Satterprice of long maturity to be an¬ thwaite, Jr., to partnership.
and
dated
usual point of view. If you are to
call MLY a "growth" stock you
lanthanum."
non-cailable,
bentures, both issues
v
deposits
Hirsch, President, defines these as
fa mixture of 15 metals which oc¬
cur
Admit Three to Firm
lion
!
butter.
'ji;The second string to the MLY
Granbery, Marache to
about
or
on
Tuesday, Jan. 27, 1959, $100 mil¬
„
i
.*
The Federal National Mortgage
Association will offer
num
of pounds a year are a definite f uture
possibility.
These
exotic
elements may now be'in an early;
phase comparable to that of nickel /
.yitaL to-our - missile development ur aluminum 30 years ago. They '
program. The company has been do offer unique; qualities and a
purchasing its concentrates mainly considerable profit potential to
from Kennecott Copper Corp. but Molybdenum Corp. if they live up .
is believed to have one of the to their billing. Up to now, howlargest molybdenum ore bodies in ever, molybdenum .and tungsten
the world
on
its Questa, New have s u p p 1 i e d the bread and
Mexico properties.
presidents of McDonnell & C<v
Incorporated, 120 Broadway, New
York City, members of the New
York Stock Exchange.
CONTINENTAL
•
supply
,
.
share imag¬
a
C. Henry Buhl III and C. Ly¬
Crane have been elected vice
man
ing: the high temperatures in jet ^
earths it doesn't
impetus take much to provide tlae necest to
mdlybdenum was given only sary alloy elements -for special
jast weeki however, when the steels; Maybe a. cpuple ,of „pounds
Jj. - S. Bureau of Mines produced to the ton. But envisioning the
(
If
useful in resist-
may prove
of company profits. New
k
$10
earn
medium.
:
Corp. shares with Kennecott
O.
Copper Corp. ownership . in prob- f /
major position in three types ably the largest known columbium'?
a
it were to
prove
market
.
caused it to. engines.
gyrate between 16 and 42% within V On the
of
well
volatile
and
In practical applications this new
GLX-W steel is usefuLin pressure t.f
vessels, earth movers, heavy road
and construction machinery, car; ' - i
truck, and bus frames. •*?.
;V
Columbium, also- alloyed with;
about MLY which have
has
,
MLY may
however/
an exciting
f
,
nary carbon steel, and a substantial strength to weight advantage.
steel,
\
McDonnell t Co. lie.
imaginative,
quantities^ pf 'coldmbium
may sell 'at. 40 to 45 -added produce riiUd/carbon steels
times current earnings because of with double the strength of ordiabout the brightness of its future
it is in the second category that
Sto?k Exchange, and
pn^cbase 1 and
t/100 shares through Oct. 18, 1963
$29.70 per share. These war/ra s
currently selling at
Company,
s o m e:
rare
and if really broad mar-
new
regarded nas an dmpbrtant metallurgical advance because
are
they make available; „on
"respect for a long record
for stability of earnings and diyiout
and
•
ing .ingredient. About... this, Mr.
W. D. MacDonnell, President of
stock may sell
.
columbium
production of lower .priced alloy h:etsopen up for them, then major
and - carbon steels.
Rare /earths v^armng power Tor Molybdenum
have also been indicated as "useful
loD2 predicted and antici-
fine industrial
or; a
.
of
earths.
If these are, indeed, the
coming metals of the high temperature, Jhigh speed age in which
also applied
are
ine where it could sell!
high-strength steel, GLX-W rising
ferrocolumbium, s u p p 1 i e d by
Molybdenum Corp. as a key alloy-
r
fine
\
the
and
,
and
ure.
•
-
BUM t Crane W» of
intrepid speculator, the romantic
we
Patec^ may materialize. The man^Sement is competent, the ore
bodies rich and -extensive, and the
interest,, is columbium. Quite r,e-; research, patient and intensive,
cently the steel industry was Many,, c o m p a n i e s which have
alerted to a significant technology-: waited so long for their dreams to
cal
break-through
when
Great
true have gone broke doing
Lakes Steel Co. (aj subsidiary ,df lL Not so with MLY.
Financial
National Steel) announced its new position- was stabilized in 1957 by
sentially
two
past
"
■
-
in the shielding of atomic engines.
Another exciting metal of the
future,, in which MLY has a major
'
"
p o w e r
power
shares,
of
earning
s
*
i ?.
.
net
working capital.)
should discern in
the current interest and sprightly
market
action
in
these
shares,
considerable optimum about the
recently spotlighted for its activ¬
high speed/ high temperature age
,-The stock market devotes most
of its time to establishing rela-
vf hi
.
in
Obviously
~
By DR. IRA U. COBLEIGH
over
share.
ever,
Its Romantic Metals
7
(403)
Banker
Sears, Roebuck and Co.
SALLE, JACKSON, CLARK AND QUINCY STREETS
Member Federal Deposit Insurance
•
>
CHICAGO 90, ILLINOIS
Corporation
In
8
The Commercial and Financial Chronicle
(404)
Philips Lamps Works and the
lists
of
which
Dealer-Broker Investment
current market review with
companies which could
candidates for stock
are
folio.:,.
:
•
and pay more in 1959,
a
Growing West—Booklet describing in¬
dustrial opportunities in area
served—Utah Power & Light
Co., Dept. K., Box 899, Salt Lake City 10, Utah.
IJ. S. Banks—Comparative figures on the 15 largest banks in
: the United States—Bankers Trust Company,
16 Wall Street,
New York 15, N. Y.
Recommendations & Literature
It it underttood that the firmt mentioned will be pleated
tend interacted partiet the following literature:
tee
a
,
Abitibi
Power
&
Paper
Witter
pulsion of roeketrandearth satellites with particular com¬
ments on Traeerlab, Inc. and Combustion EngineeringAtomic Development Securities Co., Inc., 1033 Thirtieth
Street, N. Wy, "Washington 7# D. C.
Automobile Producers—Survey—E. F. Hutton & Company, 61
Broadway, New York 6, N. Y.
Burnham -View — Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
bell Red Lake Mines and Delta Air Lines.
Allied
—
Survey of Adams Express Co., Lehman
Common Stock
The
Street,
H. Cassel &
Joint
1959—Bulletin—
report
Hooker
Review
—
—
Harkisondass
Cloth & General Mills and Tata Chemicals.
—
Current information
—
licly
Yamalchi Securities
Corp.
Jan. 20
on
and
a
na¬
^fchat offered pub¬
an
issue of 500,000
shares of Southern "California Ed-'
ison Co.
at
stock
common
(par $25)
$60 per share.
-
,
The net proceeds from the sale
will be used by the company in
retire
to
short-term
for
outstanding
any
bank
loans
incurred
construction, and the balance
will
become
treasury funds for
company's continuing
construction program. It is pres¬
ently expected that gross plant
additions for the years
1958-59
will total approximately $273,257,in the
use
000.
The company has paid dividends
its common stock in each year
on
since its incorporation in 1909. On
Dec. 18, 1958, the directors de¬
clared
an
increased
quarterly
dividend of 65 cents per share,
payable on Jan. 31, 1959 to stock¬
holders of record
on
Jan. 5, 1959.
Southern California Edison is
Chemical
Lukhmidass, 5 Hamam Street, Bombay, India. Also available
is an review of Oil Refineries in 1957, Jessop & Co., Delhi
Japanese Stocks
International Shoe.
Corporation — Annual
on
Boston
tion-wide group
Chemical
report — Hooker
Corporation, Secretary, 26 Forty-seventh Street,
Niagara Falls, N. Y.
Interstate Engineering Corporation—Analysis—P. W. Brooks
& Co., 115 Broadway, New York 6, N. Y.
S. S. Kresge Company—Study—Kenower, MacArthur & Co.,
Ford Building, Detroit 26, Mich.
Lockheed Aircraft
Analysis — Newburger, Loeb & Co., 15
Broad Street, New York 5, N. Y.
Michigan Seamless Tube Company—Analysis—R. C. O'Donnell
& Company, Penobscot Building, Detroit 26, Mich.
Corporation, 120 Broadway, New York
Companies
Chesapeake & Ohio.
on
Rubber Company—Analysis—Parrish & Co., 40 Wall
Street, New York 5, N. Y.
Industries, Inc. — Report — Hardy & Co., 30
Broad Street, New York 4, N. Y. Also available is a brief
Co., 61 Broadway, New York 6, N. Y.
Stock
31
Dixon Chemical
5, New York.
Indian
Company,
Dayton
Foreign External & Internal Securities—1958 year-end prices—
New York Hanseatic
data
are
First
Witter & Co. headed
Dean
part
&
Louisiana Gas Company—Analysis—Schweickart &
Co., 29 Broadway, New York 6, N. Y.
Badger Paint & Uarware Stores, Inc. —Report — Milwaukee
Company, 207 East Michigan Avenue, Milwaukee 2, Wis.
Also available is a report on Wisconsin Power & Light Co.
C. I. T. Financial Corp.—Data—Herbert E. Stern & Co., 52
Wall Street, New York 5, N. Y. Also in the same circular
Copper—Report—J. R. Williston & Beane, 115 Broadway, New
York 6, N. Y. Also available is an analysis of II. L. Green
Co., Inc.
European Common Market—Folder containing a time table and
other data—Manufacturers Trust Company, Advertising De¬
partment, 44 Wall Street, New York 15, N. Y.
Federal.Stock Transfer Tax—Effective Jan. 1,
Homsey
Arkansas
Corporation, National Aviation Corporation, National Shares
Corporation, Tri Continental Corporation and U. S. & For¬
eign Securities Corp.—Thomson & McKinnon, H Wall
New York 5, N. Y.
Pont,
Milk Street, Boston 9, Mass. Also in the same circular are
data on American Metal Climax Lie., Mueller Brass and
United States Lines.
able is current Foreign Letter.
End Funds
Chemical—Data—du
Gronp Offers
So. Calif. Edison
,
.
Closed
v.
Compauy—Analysis—McLeod, Young,
Weir
&
Company, 50 King Street, West, Toronto, Ont.,
Canada.
^' ,•
■ ;':'H
Air Products Incorporated — Review — Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Air Reduction—Data—Dreyfus & Company, 50 Broadway, New
York 4, N. Y. Also in the same circular are data on Camp¬
Atomic Letter No. 44—Discussion of projects for nuclear pro¬
Thursday, January 22, 1959
.
First Boston-Dean
''
to
m
.
suggested port¬
'>;v
Chest in the
Treasure
earn
splits, and
.
a
public utility company which sup¬
plies electric energy in portions of
central
southern
and
California,
excluding the City of Los An¬
geles and certain other cities. Cus¬
tomers
served
totaled
1,489,520
by
the
company
—
Company of New York, Inc., Ill Broadway, New York 7,
t
New York.
Market
•
Review
Wall
For
1958—Circular—Calvin
Bullock
Ltd.,
1
Street, New York 5, N. Y.
National Distillers & Chemical Corp.—Memorandum—William
Gas Industry—Investment review—Reynolds & Co.,
Dept. CF-1 (Alt. Richard S. Graham), 120 Broadway, New
York 5, N. Y.
Natural
Norton- Company, 9 Maiden Lane, New York 38, N. Y.
New England Electric System—Analysis—Francis I. du Pont
& Co., 1 Wall Street, New York 5, N. Y. Also in the same
New
Orleans Bank Stocks—Comparative tabulation—Scharff
Jones, Incorporated, 219 Carondelet Street, New Orleans
12, La.
New York City Bank Stocks—Analysis—A. M. Kidder & Co.,
Inc., 1 Wall Streefc New York 5, N. Y.
New York City Bar& Stocks—Year-end comparison and anal¬
ysis of 13 New. York City bank stocks—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
Nova Seotia—Report' on province
outlining natural resources
and industrial development potential —■ Canadian Pacific
Railway Company; Department of Industrial Development,
Montreal, Que., Canada
Over-the-Counter Index—Folder showing an up-to-date com¬
bulletin is
&
as
River
Wall
Mills Inc.—Analysis—H.
Rice
Hentz
&
Co., 72
Securities
&
Co.,
15
Broad
,
Shipbuilding Industry' in Japan—Survey—Nomura Securities
Co., Ltd., 61 Broadway,-New York 6, N. Y. Also in the same
issue
of
the
Nomura
Monthly Stock Digest are data on
Toyota Motor and Mitsubishi Shoji, and a review of the Jap¬
anese
Sulphur
economy.
Industry—Survey—Harris, Upham & Co., 120 Broad¬
New York 3, N. Y.
Also
available
are
a
report
on
Hammill & Co., 44
an analysis
Street, New York 5, N. Y. Also available is
for the Oil Outlook for 1959.
1958—Review—Handy & Harman, 82 Fulton
Street, New York 38, N. Y.
Studebaker-Packard
10
Post
Botany Mills—Report—Lerner & Co.,
vs.
Office Square, Boston 9, Mass.
<
Plywood—Report—Bache & Co., 36 Wall Street,
5, N. Y.
New York
income
$249,243,000 and net
$39,425,000, compared
to
Halsey, Stuart Group
Offers Utility Bonds
Halsey, Stuart & Co. Inc. and
associates
an
are offering today (Jan.
issue of $20,000,000 Indiana
&
Michigan
Electric
Co.
first
mortgage bonds, 4.% % series, due
Nov. 1, 1988 at 102.411% and ac¬
crued
interest, to yield approxi¬
4.60%.
The group won
award of the issue at competitive
sale yesterday (Jan. 21) on a bid
mately
of
101.67%.
Net
proceeds from, the financ¬
together with -other funds,
by the company for
the
prepayment of outstanding
bank notes, issued for construc¬
tion purposes,
and fhe balance
will be used to pay extensions,
additions arid improvements to the
company's properties. The cost of
the construction program for the
ing,
will be used
Clarence A. Ray
Donald
MacGregor Now
WHh Hill, Darlington
Donald MacGregor has become
with Hill, Darlington
associated
Opens
(Special to The financial Chronicle)
BAKERSFIELD, Calif.—
A. Ray is conducting a
Clarence
securities business from offices at
1508 Eighteenth Street.
&
Co., 40 Wall Street, New York
City, members of the New York
Stock
Exchange
members
of
the
and
H. M. Schreck Opens
associate
American
and
field, having been associated with
both Standard & Poor's Corp. and
Fitch Publishing Co.
final half of
around
BROOKLYN; N. Y.—Harry M.
Stock
will manage the
firm's research department.
He
was formerly senior analyst at the
member firm of Jacques Coe & Co.
Mr. MacGregor has had exten¬
sive experience in the securities
Schreck is conducting a securities
business from offices at 150 East
19th
Street.
Opens Inv. Office
BAYSIDE, N. Y.—Ella B. Craw¬
ford
is
conducting a securities
business
from
offices
at
28-29—
209th Place.
The
& Distribution
bonds
"FOR SALE"
Bound Volumes of the
& FINANCIAL
CHRONICLE
Available
accrued interest in each case.
Indiana
&
Michigan Electric
subsidiary of American
Electric Power Co., Inc., is en¬
gaged in the generation, purchase,
Co.,
a
HAnover 2-2400
sale of
electric
panies and municipalities in Indi¬
ana
and southwestern Michigan.
The
company
serves
163 com¬
munities in an area liaving an
estimated population of 1,245,000.
For the
or
12 months ended June
30, 1958 the company had operat¬
ing revenues of $65,792,881 and
net income of $10,187,940.
Form
Write
Edwin L.
Teletype NY 1-376-377-378
and
immediately in N. Y. C.
Members New 1 ork
Security Dealers Association
Trinity Place, New York 6, N. Y.
redeemable
regular
redemption
prices
ranging from 101.17% to par, and
at special redemption prices re¬
ceding from 102.43% to par, plus
to the public and the
supplying of electricity at whole¬
sale to other electric utility com¬
From 1928-1942
74
will be
at
energy
COMMERCIAL
Troster, Singer & Co.
1958 is estimated at
$35,300,000.
transmission
(a) Operating Utilities
(b) Natural Gas Companies
Transmission, Production
Oct.
with $217,135,000 and $31,986,000
for the calendar year 1957.
United States
Exchange,
Firm Trading Markets in-
months ended
amounted to
22)
Silver Market in
to
Offerings—Compilation of issues marketed in
Dillon, Union
Street, New YoYk 5", "N*. T.
way,
Organiza¬
Street, New .York. 15,. N..Y.
1958—Eastman
;
Brand
Wall Street, New York 5, N. Y.
Ruberoid Co. — Memorandum — Shearson,
and market -performance- over a 20-year period •—
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y,
Petroleum Situation —• Review —. Chase Manhattan
Bank, 18
Preferred Stock
12
31, 1958, total operating revenues
list
way, New York 4, N. Y. Also in the same circular are data
on Flintkote
Co. and Baltimore & Ohio Railroad Co.
yield
Pine
a
tion, 120 Broadway, New York 5, N. Y.
Pittsburgh Steel Company—Review—Purcell & Co., 50 Broad¬
Jones Averages and the 35 over-the-counter industrial stocks
Averages, both
brief analysis of Kelsey Hayes Co. and
the
Oct. 31, 1958.
■r,
parison'between the listed industrial stocks used in the Dowused in the National Quotation Bureau
a
of "quarter century" dividend payers.
Nortex Oil & Gas Corp.—Bulletin—De Witt Conklin
For
on
Phone
—
REctor 2-9570
curities
Beck, c/o Chronicle, 25 Park PI., N. Y. 7
Barclay Securities
HEWLETT, N. Y.—Barclay Se¬
Corporation
has
been
formed with offices at 235 Everett
Avenue
ki Tfi'n
nco
to engage in a
securities
Volume
189
Number 5814
.
.
.
The Commercial and Financial Chronicle
DIRECTORS
DISCOUNT CORPORATION
OF NEW YORK
HENRY C. ALEXANDER
Chairman
Oldest Chartered Financial
Statement
of the Board,
of Condition
J. P. Morgan & Co. Incorporated
EDWARD E.
Institution South of the Nation's
of December 31, 1958
.
ANDERSON,.;
Senior Vice-President
Acceptances Discounted
~
—-
$.47,340,748.61
United States Government Securitiesand
GEORGE CHAMPION
Capital.
as
ASSETS
President,
Security Contracts, at market or less
The Chase Manhattan Banl;
98,331,336.26
Interest Receivable Accrued
429,354.17
J. LUTHER CLEVELAND
STATEMENT OF CONDITION
Chairman
Sundry Debits
of the Board,
Guaranty Trust Company of New York
_C
286,716.94
—
Cash and Due from Banks
3,380,170.04
—..———
S. SLOAN COLT
Director,
*
Bankers Trust Company
LIABILITIES
CHARLES E. DUNBAR
Executive
HORACE
Vice-President
Capital
C. FLANIGAN
Chairman
Loans
ADRIAN M. MASSIE
Accrued Taxes
HERBERT N. REPP
President!
& TRUST COMPANY
HOWARD C. SHEPERD
of the Board,
The First National City Bank
Chairman
AUGUSTA, GEORGIA
Member Federal Reserve
System
FDIC
195
8,528,294.54
225,000.00
—
18,000,000.00
-—
—43,386,804.88
Endorsement
.
GEORGIA RAILROAD BANK
—
Payable
Security Contracts
DUDLEY H. MILLS
.
2,528,294.54 $
Acceptances Rediscounted and Sold with
of the Board,
Tor\ Trust Company
of the Board
__
General Reserve
Board,
Chemical Corn Exchange
Chairman of the
Chairman
4,000,000.00
Undivided Profits
HAROLD H. HELM
Chairman
——_-„__$2,000,000.00
Surplus
of the Board,
Manufacturers Trust Company
The New
—
1,691,579.96
-—:
Accrued Interest and
Sundry Credits
76,890,930.95
—
Expenses
~
.
604,605.95
441,109.74
..
$149,768,326.02
•/ New York.
OFFICES: FIFTY-EIGHT PINE STREET
10
The Commercial and Financial Chronicle
(406)
s.
ment
Fieer Tiade and United Stales
Dec.
for
are
.
Thursday, January 22. 1959
.
envisions* keener
currencies;
,
rnanitarian
our
coun-
period of broad transition which tries. Much ol it has paid toi
is causing widespread worry as American supplies and machinery
wpll
discussion of
well as widesnrpad discussion of needed to rebuild factories, homes,
as widespread
other
buildings, and roads de¬
some
of
its
stroyed by the war or made obso¬
visible results.
lete by modern technology.
The transition
is
the
from
world
only
reasoning
has
the output of
expanded factories.
Now
few
a
been
countries
prosperous
could buy
the
to
basic
The
that
of
the
countries, but
war-
an
im-
porlant group, believe themselves
strong enough financially to main¬
tain a limited
independence of
great
In
the
ond
of
sec¬
For International Commerce Only
sentence
that
A
Eleven
para¬
Elizabeth E.
graph, George
Shea,
U.S.A.
the
prod ucers."
Cook
writing
of
an-
a
cur-
partial free trade
and
lency
have
creation
un-
in the Wall Street Journal of Dec.
8, 1958, cut through
ion. They are the United Kingjungle of dom, France, West Germany, Den-
a
nfnmonw
whili!
rmit
thw
minimum,
..
.
the implications of an
now
Community,
nomic
formed
commonly
tw^vemTa^o^nd
about
nutinto effect
on
count^^
Jan
1
6
CIcountiiessaie: Fiance
;
Mission Partly Accomplished
rru
n/r
u
n
*rii
Thl
1959
West GerGe
■
^distribution,
the
lir"
American
convertibility helps trade
the signing
nations in
two
ways,
first
by * removing
whatever exchange barrier there
ti'sing, the packaging, handling,,
and transportation
system
for
them devised*
has
buying/powerequiv-
alent to the other liberalized
additional
cur—
between
been
them
and
It
sec-
be
may
that
American
i'ac-
measures
necessary to maintain the
0£
-
the
hnt
has
tories in the Common Market will
Freer
taxes
are
franc
cui in
^a-
stability
inprpaitwi
been /announced,
increased
on
both goods , and incomes
planned. Wage and salary in- ;
are
to be prohibited exfor the lowest .earners.
,.4
creases
cept
Prices of French goods will
rise,
.
.
.
.......
,
-
+u
tion
emintvipq
other
$60 billion
taken
agencies,
or
from
War
more
an
purposes
has
been
labeled
taxpayers
expended
Austria,
Greece,
Finland,
Mar
a 1 so
11
turned
countries
to
currencies.
their
Turkey,
Switzer-
and
full
have
not
re-
convertibility of
applying
Restrictions
own
residents
have
not
10%
sa^e
•,1959.
property,
f
c
proceeds of
c^rmr-itiag
secuiities, or
ana
not
any
to
r,iv./3,r»
othei
even
united in
a
to
undersell
products.
The
central banks
pay-
barriers
against
each
other
and will eliminate them
over
the coming
Ewntnall^fSI
vear's
have
the
any,
against
same
v,
tariff
all
12
-nd
by-
South
have
Afrira
of these Shares having been solJ, this advertisement appears
been
their
built up
as a matter
Ann
in
miSN1H
thn
has been exported from
.e
t;
if
of record only.
January 22, 1959
Sour
tries,
of
pros-
always,
as
solvent
free
one of
nation
the
is
a
currency.
for
France—or
of
?
the
10
from
sound
Else
coun¬
member
a
Market
not in
was
of
the
the
start,
financial condi-
Pec* 26,-1958. Since World
txt311
War If no premier had lasted
long
enough to accomplish any econ-
Corporation
omy,
matter
no
But
vision.
has
lance
how
now,
a
in
clear
is
co
d
logic
that
the
France
is
be
the
the
in
possible that his
to
only
a
Common
choice
tor
strong member
Market
or
are
withdraw-from it and become the
of its strength.
,
could
~
sur-
r; '
>
are
convinced that the franc will hold/
they
will
find .ways
enough
to
build trade with it. For France is
a
rich countiy. It doesn't have to
stop to build
them
factories. It has
new
And
now.
1T
has
it
^
hidden
wealth. EstiiTiate8 ot gold metal
s^hfilfnn
ft
that
w
•
?,?1"
be"another"$3^"baUoi
may
hoarded here in dollars.
,
.
,
since de Gaulle became President
have had to
in
those
be
drastic than
more
other
countries
because
they are meant to correct financial
irresponsibility as well as to stim-^
ulate foreign trade. The 10% tariff
cut
required
for
the -Commoii
Market has been extended
17
nations
and
favored
most
to
all
nations,
the U. S. The 20%
to
the
Frances
including
increase in im¬
port
quotas to Common Market
countries will permit imports up
to 3%
of France's
production
own
0f any product. On 10% of her im*
ports, France's import quotas favor
t}ie
Common
py
Market
bold
a
countries.
stroke,
import
quotas have been removed
ciprocal trade-with the 17
tries
to
the
business
with
extent
done
France
by
in
of
90%
those
on
re-
coun-
of the
countries
1953.
to
first victim
France has been suffering from
inflation, with a treasury deficit
Fiance's
the
dollar
severe
import
area
than
quotas
have
those
against
been
of other
more
Euro¬
,,
due to
crises.
They
the French themselves
Once tl
patriot
can convince the French
people
of
his
deGaulle,
levelheaded
SUC^95 Gvery. country
\voiId needs. It
Common Stock
tax
collections lower than
governmental
expenditures, and
sidies and
30%
i
previous
France.
The changes made by France
have
measure
although
Common
225,973 Shares
.
in
love
do
turned, they
prise the world.
;
..
dignity
throughout
r-
a
a
Wine
.
,.
,
and
restored
v
symbols of
Incorporated
borne' it
m,
r,
Europe, and
perity.iNow,
Lynch, Pierce, Fenner 8C Smith
and
here.
countries', not
France, alone
Merrill
people don't like
better than others,'
austerity any
but they have gritted their teeth
im>re than $2 billion there
j'
barrier,
in Switzerland.
bonds
French
na-t
tional payments running against
15. the U S A - «. then «■> hiiiien
convertible
Cerro de Pasco
of
en-,
to
..Confidence
NOT A NEW ISSUE
American
many
reserves
with the* balance of interna
year
been
All
by their abil-
by purchases of gold from Russia
ket they have reduced their tariff
tirely
i.
lty
are
French
The
of They
years
iIlfllI
by anyone of bank balances, in-
by Miss Cook before the
Municipal Analysts, New York City, Jan.
here and elsewhere
Market
comprehensive agreement.
By the terms of the Common Mar-
spent
address
Common
of
Europe proud. And. if the tide of thought
more
of can
be 1
more
has not been extended to transfer
from securities
Gradually, through the
,
The 6 countries
sid." Some of this money has been
come
international balance of payments,
selll"S m tho?e European markets, their goods to- the U.S.A. and to
Recently
lart. nf
?mce payment can be had in dol-ithe rest of the world. Recently
their export trade has been
helped
lars at once'
been changed. Full convertibility
foreign countries for hu-
possible for these 11 countries to
no
.
?n
"foreign
in
g-e^ dollars and
'^^0 imenVan pvnmft?in'' *eC0VG£y' able to sell
va£:ag to American expoiters in have beenthe, countries of
The
The
to
^5
area
special reason to leave a balanGe declare convertibility if they had
here* (The dollar area includes not already been in good financial
U-S-A-' Canada, Alaska, Hawaii,- condition internally and in their
the
land.
estimated
of the money
American
II
Nations,
17
rhri« whirh
Ireland,
United
the
amnnff
are
] p,®®
port
bureaus, missions,
than 160,000,000. The 11
more
elude
the
^0uar
nooulal ezu?la' a.nd others->
IMonetary3Fundf fhe ^xport-ImBank,
.
subsidies "
annnnnpfH
.
ondly by making,the sum due in/reap "the first benefits, because with
repeal of subsidies and prices
payment for products sent into they know what to do, and be¬ of
imported articles are automat-.
any of them just as good as dollars
cause ,oi;the admiration for Americally" raised by the devaluing of
because freely
convertible into lieaii products. As the standard of the franc.
The:purpose is to indollars.
"...
> living
improves, there should be crease exports and decrease imSince War II, all countries have-a; larger. market for both American ports
until the new taxes meet,
been more eager to sell goods in
aPd home mass-produced articles, the reduced operating expenses of,
the
dollar
area
than
anywhere
/Political integration is not an the Government,
else, because the dollars received
immediate, aim of the Common
The West German Central Bank
in payment could all be taken out Market but there will be a
natural has granted the Bank of France a
and converted at full value into
tendency in that direction. Reg- $60,000,000 line of credit in case
any other currency. Now non-resulations are to be made establish¬ of
any
sudden exchange emer¬
ments, but non-residents only, in ing uniform qualifications for docgency. The Bank of England and
any of the sighing countries may
tors, lawyers,
engineers, archi- the Belgian and Netherlands cenconvert
payment
due
Dec.
29, tects, etc. There is also to be a tral
tects,.
banks
have
offered
about
1958, or later, from international parliament, a council of ministers,
$190,000,000, and a group of U. S.
..commerce, from any one of the 11 and a law court within the Com- banks headed
by the Chase Mancurrencies into any other currency mon Market.
hattan Bank and the...First. Nathe world, even into rubles.' /
tional City Bank have
Philippines, Puerto Rico, Ven-
2'
Through the Marshall Plan, the «'"
numerous
,
arranged
tn ll'
*An
includes
the
to
For central and other banks and- - Evidence of Improvement
:/a ^200,000,000 stand-by credit.;
for
companies jn
international
But to get back to the 11 coun- Swiss banks have recently made
an
We1€+u'
° thenLaie trade there will no longer be a tries which include the Common several loans to French interests
the members 01 tne European fco- special advantage in selling in the vMarket. It would not have been and not long ago sold a large issue'
n
for
also
fallen
Under the pressure of de Gaulle's
ir0n will the first painful steps
Ne^flaSdSl
fmm
demand'^ Yontemnl?tfon o^^the
Sri 1 2r nd (?f ihJ nlSp
«f the^Tnited State^ of America
of the United States oi America
since
agreement
have
u
.,
and
The
•
plrtpiiqivp Luxcmb'?^r§'Portugal, Noi -
*
And
and
/
~
countries
the
nounced
some
between
.
our
'
position of be¬
ing only one
in
trouble
.
a
position
of
the greatest
producer of
goods in the
little
such as it is, ami confidence in .them
The plants are still to be
.their currencies and their foreign /built, the/products
perfected,'>th?
'•
for trade.
■■■•■
taste for them -created by adver-
and
purposes
American personnel in those
"The United States lias entered
very
'
Despite the limitations' qf the .manner, ;witlr- the most modern,; xencies and, like them has been
agreement between the 11 coun- mechanized plants.
declared. : convertible
into
any r
tries, it has great psychological -:
But mass production and mas.1? other currency involved in-, in-*
importance as an expression, of ;distribution will not happen over ternational trade,
confidence—confidence in peace, might in an area which hasn't had
As-
prices com¬
petitive; and predicts free nations will enjoy a greater volume
of foreign trade within which we can compete for our share.
vCut Back to Size
*zeci to permit the 6 countries to
buT
more of each other's
right along, products.
-
to handle all these papers.
trade
international
competition and hopes that it will help keep
U.S.A.
value. With tariffs and quota restrictions reduced, imports would "
have rushed in and exports would '*
plans for equalizing wages and have been taken. The
franc has
been hampered by restriction of other costs of production in the 6
b<?en devalued for the 7th time *
amount, the necessity of obtaining countries. It is planned to wdrk since War
II, its gold "value rea license, and by having to pay a
-out ways of assuring the free dueed
by 14.93%. This has the efheavy premium for dollar ex- movement of labor and capital in- fect 0f
making each dollar worth/
change. The new freedom will: be /-vestment to any part of the 6 17
55% m0re francs. At this lower
helpful to central banks and gov- countries. The intention is to engojd value the franc has;- at the •
ernment agencies which have had courage mass production and mass
moment
a
ticked off
by Miss Cook. She takes note of the increased manufacturing
of American firms taking place abroad, to circumvent high
cost of production here; explains how these American firms
may benefit from the Common Market and convertibility of
European
members of the Common Market,
Import quotas have been liberal-
to
countries. But in others they have
trade, monetary and other developments in Western
the United States,
prior
capital trans-
making
the
to
with
Publicity Manager, Hemphill, Noyes & Co., New York City
upon
been
fers
By ELIZABETH ELLSWORTH COOK*
Europe, and their effect
due
Residents of European countries
Competition for Its Share
The latest
imports
29, 1958.
have
.
.
'i
•
to
lVale+
high tariffs.
30%
higher
S-Ub"
With prices
in
France
tthan in the other 5 Common Mar¬
ket countries, only national bank¬
ruptcy
could
be
expected
it
France attempted to
carry out the
terriis
of
the
Common
Market
.with
the
franc
at
its
old
stated
pean
countries but, with the franc
universally convertible, dollar im¬
ports
are
now no
ta»e°us than
,
,
,
any
more
disadvan-
other.
,
Already
.
the cp-lota has been revised to
per-
mit the U.S.A. to export to France
50%
of what it sold there in 1953,
compared with less than 15%
til
now.
un¬
This should help our ex¬
ports,, especially of,
raw.,
materials
Volume -189
such
and
.
with France
The Commercial and Financial Chronicle
.
,
gation will
fuels
sulphur,
cotton,
as
Trade
Number 5814
will be
made. The
Convertibility
intention is to force all signer na-
,
possible only
tions to curb inflationary tended-
easier
possibly it will be larger, w
loan be
a
(407)
balancer.their
is
Fund
Loans
ev£ry
countries
of"
to
immediate
any
out of the Mar-
The United Kingdom is not a to month, from year to year, a namember of the Common Market tion may owe more or be owed
but it is a Marshall' Plan coun-> more, ",witli'the difference settled
try, did sign the, new European--in".1 gold orTin a foreign
currency
Monetary Agreement, and has an- acceptable 'to the creditors.
:
Plan, 17 countries-joined in
the
Organization for European
Economic
Cooperation and
the
.
European Payments Union, a bank
through.-*Which
with
of
one
the
prospect
signing
the
which finds
would
rency
In the working
in
are
which
*their, exports of-ev6ry porarily short of
keep their currencies sound
kind—approximately. From month
Plan
shall
+
currencies
imports
*
Outgrowth of Marshall
of
among nations
COMING
Hself Tem-
any foreign cur-
be
in
general
EVENTS
accordance
U S
policy
of
In
helping all free world countries
to help themselves
Looking-ahead some years, it
would
that
seem
free
i
nations
Britain must export to eat. Competition from the Common Market countries will ;increase but
.for the
imports needed for reha-
bilitation.;£Jy quotas and frozen
currencies ; they
restricted
im-»
reciprocal concessions oLthe Aborts" to :*nere<mitip<i
naiH
wW
agreement will ease5 that compel
;they could:in goods, and went into
the
_
tition
somewhat.
Moreover
Great
debt
at the Sheraton Hotel.
before. And in
ever
Feb. 6, 1959
that larger, freer trade, the United
can compete for its share,
that
signing
of
.
Feb. 27, 1959
(Special to The Financial Chronicle)
*
countries will
that
they also want
currencies.
The
one
',
prosperous^ mOsf
of
-
(Special to The financial Chronicle)
LOS
Bankers Association of Amer¬
ica annual meeting at the Hilton
"
ANGELES, Calif .—John B,
Hotel.
securities
618 South
:.7 0nly'7
convertibility7 ' "77 T
the "announcements 7
will become fully convertible^for;7;^
everyone for any mirpOv^e.Tt has rpt
been so except Tor .the necessity
"
are
Monetary
Agreement was signed by all 17
countries
in
1955
to
erla'nd
has
of
finds
member
,
'
...
H. W. Kino Onens
t
.
^
? those m the cur-1
^ VJ;
•
Ai2pe
•
SHREVEPORT, La.
wants
itself
temporarily out of balance it can
apply for a loan for not more than
2 years from the new European
irl
xx/hifh
hoc
ffcfiftfl OfM flfm
Fund, which has $600,000,000 nf
of
lending power. Only after investi-
'
'
-
.
King is engaging in a securities
business from offices at 3109 Al-
to
be paid
u™t€« states.
.
1?/ wl?e, yltterenc6 of
as to what the near-term
7
.J
opinion
Ht°
,
in his national,
many Amencan
-
^ac^ul(eis,
in goods, services, or
securities to which he attaches
equal value. Otherwise he doesn't
want to makf any more calpa +n
make nnv mnvp sales to
that party.
•:,-;777 - 7~ 7 ~ ~
"
currency or
New
,
v:!,>
'
nor a
solicitation
oj offers to buy
any oj
its
in
issue
of
5V
•
.
"
;
eign countries, possibly as much
$50 billion. About
is in nat-v
•
f"
ural
such
resources
ufacturing.
,
January 20, 1959
oil
as
growing
Main
N0rth
Street
of John Muir &
i
^ew Yor^ Qty, passed away
'
Jan- 14 at the age of 66 following
McCuen.
a
P
,
!.
■_
n^u.
»
■
>
r
-
.Tan
n/r
.
,
Id
at
thp
acfp
nf
fnllnwin^
fifi
long illness.
.
have
more
able
NEW
U.S.A.
»
;;
.
'
•"
an
The
in
77
for
#
' 77* I
7
' 7
300,000 Shares
fast
coun-.
Rollr Aircraft
their products in the
Their profits can be con¬
more
Corporation
•
-
Common Stock
•
but
with
the
(Par Value, $1 Per Share)
dollar
francs, goods bought
should cost fewer dol-
France
lars,
.
solicitation of offers to buy any of these securities.
sell
Theoretically,
worth
nor a
January 22, 1959
verted into dollars and sent home.
Southern California Edison
offer to sell
offering is made'only by the Prospectus.
ISSUE
been
as
benefit from the Com¬
Market; they may even be
to
.
-
~
can
mon
.
and
*
This advertisement is neither
'
from
^.American plants in the 6
[ tries'
Company
^oc^. "^X?a.,fa?
^
branch
man-
sales
than 3 times
export sales.
as
.
Moreover
operations
overseas v
500,000 Shares
a
,.7
■
'
under the direction of Milton M.
as
minerals, but nearly half in
NEW ISSUE
onened
Jean, companies have at least $28
billion direct investment. in for¬
these securities.
The offering if made only by the Prospectus./,7'7' 7-.'7
Klugh Office
'has
Inc
nv
v
Muir/member of the
C—Klueh & Com-
„
Week,
Edwin H. Muir
Edwin H.
fjf®1-«L %
J. § their^pioducts with foreign P
ic*b01 in. thOSC. foreign COUlltrieS.
Business
changed to Bravman & Company,
tt„+i
manu-
Jan. 3, 1959, estimates that Amer-
Prudential
Incorporated.
vestment Corp., 1845 Sherman St.
.
offer to sell
-
DENVER, Colo. — Richard I.
Sipes and Victor L. Syfrit have
theirToreignbusi-
-
of
name
Corporation, 154 Nassau
Street, New York City, has been
.i°ined the staff of Hathaway In-
f1 ®
b. Trade will be. Aieaciy mgh cost of production here
firm
Investors
.
-
an
Now Bravman Co.
The
-
.
This advertisement is neither
the Boca Raton Club.
Harold W.
Trade Means Quid Pro Quo
a
a
.
(Boca Raton, Ik.)
National Security Traders Asso¬
ciation Annual Convention
n
J
convertibility. From now on, using
The
as
agent the Bank for Interna- tional
tional Settlements, foreign trade importance
of
solvency.
Com-■
debts are to be cleared and paid merce can run along on credit for
monthly in full in the required a while but, ultimately, everyone
exchange or settled in gold. There who has sold something valuable
will be no automatic extension of in the currency of his country
If
.
-
N.v. 2-5, 1959
Love
fljl
! exports and thereoy exander.
its ability to/importwhat it does
Join Hathaway Staff
importance of the interna-.1'®, K
?cevJ/?' one
them is
(Special to The Financial Chronicle)
balance of payments is the
lllc^easln,g tlle ex~
7'.
.
„
for
maintained
coufse
full convertibility; since the War,7
selves up to the point of currency
credit.
«
of getting certain licenses. Svvitz-.
the
succeed
European-Payments Union iwhen
those countries had brought them-
Not
nltef IS
The 7 European
new.
.:
at
Bellevue-Stratford Hotel.
April 1-3, 1959 (San Antonio,Tex.)
i Texas Group of Investment
-
announce7
Association
Philadelphia annual dinner
the
1
assume that > there can be
alance of im-
>■'; -r.;•
most
(Philadelphia, Pa.)
Investment Traders
the
other six
the
soon announce
>.
Sheraton Plaze Hotel. 1 :
Joins Bache Staff
-
Britain, with its far-flung ster.""77,77
*
CHICAGO, 111.—Burton R. Foss
ling area does aboiit-40% of HliqT* A j
1S
Sr fr^m' the
has joined the staff of Bache &
European ;j Monetary
Agreement world's 'international
trade.
^ .WWprsal^convertibility of curw
making their currencies tiniver- could not risk losing trade by
existed before Aug. Co., 140 South Dearborn Street
sally convertible■ for purposes of ting the pound" sterling be les£• .7^-1"some^progress toward
r>
vi
v r%'
1
'
international trade.5lt'is expected convertible than i other'Eurobeart
made./ It-now seems - - - J. i>i Kllroy Opens r
their
announced
-
(Boston, Mass.)
Boston Securities Traders Asso¬
ciation 35th annual dinner at the
.
States
tfie balance.
.Tor
Now 11.of the 17 countries .have
greater than
Field
Security Traders Association of
Chicago annual winter dinner
War II,left many countries un- peace and prosperous should enboy'knows;'".able to pay either money or goods j°y a volume of foreign trade
loreigpcountries. Payments. vvent
through
if the
debtor country
could provide 75% of the sum due
m
the
appropriate foreign exbhange. The EPIL automatically
lent the remaining 25%.7
Investment
Jan. 29, 1959 (Chicago, 111.)
at.
they paid .their as every British school Because,
nounced convertibility.
debts to eachr other.and-to..other
11
that
may
not 7 be
long, French prices
true
Price $22.50 per
going
are
share
be
to
higher to Frenchmen for
products on which subsidies have
been
>
..($25
par
value)
cut, and therefore to
sumer
Common Stock
have
cost them
-
less
more
At
this
know
incomes
*
Price
$60
per
sliare
r
r
the
obtained'from
any
of the several under¬
only in States in which such underwriters are qualified to act as
which the Prospectus may legally be distributed,
who
European
The First Boston
international
hesitate to predict what
results will follow
^
Copies of the Prospectus may be
writers
dealers in securities and in
will
by heavy taxes.
date even those
most " about
commerce
„
Con¬
French
us, will
and they may buy
their
because
be reduced
,
us.
goods, which the
been buying from
the
success
of
Eastman Dillon,
Lester, Ryons & Co.
Corporation
Kidder, Peabody & Co.
Union Securities & Co.
Monetary
AgreeMerrill Lynch, Pierce, Fenner & Smith
Incorporated
ment,\ if if does succeed/; r
'
Paine, Webber, Jackson & Curtis
Competition - for
international-' Hemphill, Noyes & Co.
trade will be keener, that much'is
;
i ...
E. F. Hutton & Company
_
certain.
This
American
could
consumer
benefit
by
the
.
Schwabacher & Co.
9
Domimck & Dommick
bringing/ She.rs.n, Hammill & Co.
enough foreign' products to
keep the prices of similar AmerA=ican r goods from rising. And, if
American goods can compete in
Dean Witter & Co.
Walston & Co., Inc.
William R. Staats & Co.
Courts & Co.
Bache & Co.
in
,
,
Copies of the Prospectus may be obtained
from any of the
undersigned, only, in States
qualified to act as- dealers in
Prospectus'may legally be'dislributed.
several underwriters, including the
in which .such underwriters aye
securities and in which the
price,
.
7
or
special;.
pean
them.
ers
if they
are
in
some wayi
more * prosperous
countries will want
But American
will
ho
-
producers. 7'*
*
i
The First Boston
Corporation
Dean Witter & Co.
longer have the.ad-*
the only massy
-
*
•
,
*
'
y
'r
Straus, Bloss'er & McDowell
-
Sutro & Co.
r More Work for Santa Claus
The billions of foreign aid may
Estabrook & Co.
J. C. Bradford & Co.
»
Fay
no new regime so drastic is ;
StFrank, Meyer & Fox
likely to operate perfectly from
thestarts; And,
as
difficulties* Arthurs, Lestrange & Co.
arise, * it" must be expected that
more money will be wanted from
American
taxpayers.
Increased
contributions to .the World. Bank
.
Monetary
A. M. Kidder &
Mitchum, Jones & Templeton
;
•But
and to the International
Bingham, Walter & Hurry, Inc.
Bateman, Eichler & Co.
G. H. Walker & Co.
First Southwest Company
J. A. Hogle & Co.
.
•:
'
k
'
Morgan & Co.
Emanuel, Deetjen & Co.
manufactur¬
Hooker &
;
Francis L duPont & Co.
*
of f Goodbody & Co.
vantage of-, being
;.
,
J. Barth & Co.*'
Company
Incorporated
.
Revel Miller & Co.
'Euro¬
more
First California
Wagenseller & Durst, Inc. '
Irving Lundborg & Co.
Hill Richards & Co.
*'
Dempsey-Tegeler & Co.
Crowell, Weedon & Co.
Co., Inc.
The Milwaukee Company
Boettcher and Company
Winslow, Cohu & Stetson
'
Singer, Deane & Scribner
Towniendi Dabney & Tyson
Wilson, Johnson & Higgins
Evans MacCormack & Co.
Harbison & Henderson
■- Moore,Leonard4tyhch
1
'*
Hopkins, Harbach & Co. ' Kormendi & Co., Inc.
-
Mason Brothers
Stephenson, Leydecker & Co.
Wm, C Roney & Co.
The Commercial and Financial Chronicle
(408)
12
eiprocating engine becomes more
Gas Tubiae
Developments
turbine
350
Industry
of
Professor
University
of
ficiencies
turbines in production models will
high production, low cost automobiles—not,
would believe, in sports cars, trucks, and buses.
Asseverating their appearance could occur by 1965 if manu¬
facturers so desired, the Michigan University engineer ex¬
automobile
and
progress of
manufacturers in the
turbine for vehicle propulsion
continued during the past six
/
years.
Al-
gas
has
.
though
not at
Connecticut Brevities
as
gasoline.
ing becomes more competitive on
production cost basis, especially
when
reciprocating engines use
250 horsepower size running at expensive fuel injection systems.
35,000 to 55,000 rpm. Special ef¬ The bulk of the gas turbine is
fort
in
recent
considerably when a
years
has been increased
devoted to improve the fuel con¬ heat exchanger is added.
How¬
by
adding heat ex¬
to the originally pro¬
sumption
changers
a
'
ever, when reciprocating
add excessively large air
engines
,
$35,000,000
First
Company
Mortgage Pipe Line Sinking Fund Bonds,
January 1, 1959
Due
Columbian
of
tion
life
Hartford
of
Fire
exchanged for each 10 shares
National.
This
ac¬
Hartford Fire into the
insurance business, broaden¬
puts
ing its field of operations to
pro¬
insurance
pro¬
vide
all
forms
tection.
been
new
has
of
National
Columbian
has
$50 million
life insurance annually and
about $550 million life in¬
writing
about
in force.
surance
of the two
Combined assets
companies exceed $700
million.
Southern
The
Telephone
New
Company
England
plans
to
as
low
a
cost
or
January 1, 1979
It
is
expected
$40
bine
Price 100% and accrued interest
that
the
will
;'!
main¬
automotive gas tur¬
be less than that of
rj:
Dorr-Oliver, Inc. has transferred
its filtration engineering and de¬
reciprocating engines; at velopment operations from Oak¬
land, California to Stamford. It is
present
produced.,
Copies of the prospectus
may
be obtained from
any
of the several under-
writers
only in states in which such underwriters are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.
\
a
life for
100,000 miles and be replaced at
difficulty than
putting new rings into a recipro¬
cating engine. Various manufac¬
filtration
engineering and manu¬
The
Kidder, Peabody & Co.
llarriman Ripley & Co.
Wertheiin & Co.
Ilemphill, Noyes & Co.
Incorporated
Laurence M. Marks & Co.
F. S.
Robert W. Baird & Co.,
Moseley & Co.
Ball, Burge & Kraus
Burns Bros. & Denton, Inc.
Incorporated
-
J. C. Bradford & Co.
Goodbody & Co.
McDonald & Company
Shelby Cullom Davis & Co.
Halle &
The Illinois
Stieglitz
Company
Incorporated
Prescott, Shepard & Co., Inc.
Elkhu, Morris, Stokes & Co.
Rand & Co.
Childs Securities Corporation
Emanuel, Deetjen & Co.
McCormick & Co.
nayden, Miller & Co.
Joseph Walker & Sons
First Southwest Company
Boettcher and Company
Arthurs, Lestrange & Co.
Grande & Co., Inc.
Smith, Moore & Co.
Schmidt, Roberts & Parke
Joseph, Mellen & Miller, Inc.
Townsend, Dabney & Tyson
Boenmng & Co.
•
Hendrix & Mayes
.
Clayton Securities Corporation
Brooke & Co.
- -
John B. Joyce & Company
Incorporated
January 21,1959.
Steele, Haines & Co.
Harold E. Wood & Company
Eppler, Guerin & Turner, Inc.
-
Carl McGlone & Co., Inc.
in
both
the
United
States
#.
Sikorsky
United
%
Z.
Aircraft
Aircraft
division
Corp.
has
of
been
England have predicted the
of production models
in anywhere from two to seven
years. The technical problems of
producing an efficient gas turbine
are solved at the
present time and
major problems yet to solve are
those of reducing costs and solv¬
ing the manufacturing problems
the
use
of
a
Company
an¬
j;
Polymer Industries, Inc., wholly
owned subsidiary of Phillip Mor¬
ris, Inc., plans to expand its plant
Research Section of the State De¬
velopment Commission. The total
contracts
of
value
awarded
riod
per
in
was
$8,782,474,000 or $4,376
capita. The state ranked fifth
dollar value of
total
for
the
same
contracts
period.
Form New
Partnership
BOSTON, Mass.
— The former
partnership of George P. Fogg &
Co., 201 Devonshire Street, was
dissolved
Dec.
31, and a new
partnership of George P. Fogg, Jr.
and
David
C. Fogg, has
been
formed to
act as
specialists in
municipal bonds under the name
of George P. Fogg & Co.
With J. A. Overton
(Special to Tire Financial Cseonxcle)
CORONADO, Calif.—Gerald D.
Zurmuehlen has become affiliated
A.
J.
Overton
Orange Avenue.
merly
with
the
Cleland Company.
&
Co.,
1134
He was for¬
Ciraningham-
lion in Navy contracts
H. M.
Byllesby Adds
'Special to Tire Financial Cheonicle)
111. — Gerald
M.
has become associated
Byllesby and Com¬
pany,
Incorporated,
135 South
La Salle Street, members of the
Midwest Stock Exchange.
He
was
formerly with William A.
-
CHICAGO,
Ryan,
with
Jr.
H.
M.
Fuller & Co.
gas turbine.
Production by 1965
If management of automobile
companies choose to produce a gas
turbine
powered
automobile, a
production model car designed
especially for a gas turbine could
be produced by 1965 and is likely
to have a 200 HP gas turbine of
4:1 pressure ratio, a maximum in¬
let gas temperature of 1600° F., a
single stage centrifugal compressor
of better than 80%
rotary
or
efficiency, a
stationary heat ex¬
changer of 85 to 90% effective¬
ness, a two-stage turbine of 85,%
efficiency or better, one stage
to
Connecticut firms during that pe¬
awarded
approximately $35 mil¬
for further
production of the Navy and Ma¬
rine Corps version of its single
engine S-58 helicopter and spare
parts. These contracts are for the
Navy HSS — IN anti-submarine
craft, which is fully instrumented
and capable of automatic flight,
and the Marine Corps HUS-1, a
as well as the
design of a chassis troop and cargo transport. Both
and body specifically designed for
ate
powered by piston engines.
and
Torrington
Western Germany.
appearance
Newhard, Cook & Co.
Pacific Northwest Company
Mason-Hagan, Inc.
Stix & Co.
Fahey, Clark & Co.
turers
C
!H
recently the purchase of
the business and assets of the Aghi
Zebra San
Giorgio latch needle
plant in Genoa, Italy. The Italian
firm, which employs 160 workers,
was acquired for the purpose of
expanding Torrington's position in
world trade, according to com¬
pany officials. In addition to the
four
plants in Torrington, the
company operates manufacturing
facilities in Canada, England, and
with
facture in the East.
that time with less
Blyth & Co., Inc.
pro¬
more
nounced
be
wheels could well have
Since 1954
v1,''..v'V'
#
expected that about 60 persons
aircraft, pipe line will be employed at the new lo¬
pumping, production of electrical cation. Long-range plans for Dorrenergy, or marine use.
Turbine Oliver call for centralization of
it
schedule* for
cial versions of the S-58 have been
least this is the experience in all
other applications of gas turbines
whether
are
1,000 military and-commer¬
ijnillion for expansion
lower than the
an
craft
duction in 1960.
than
in Springdale and add new equip¬
million less than was ment early this year. The expan¬
spent for expansion in 1958. The sion program will cost approxi¬
largest portion, or $12.8 million of mately $350,000 and will double
next year's budget is allocated for existing
manufacturing spac.e.
outside plant of which $8.6 million Polymer, which was organized in
will be spent lor cable expansion Long Island in 1946 and moved
requiring some 2.1 billion feet of to Connecticut in 1954, produces
wire.
Other large expenditures specialty chemicals for the textile
budgeted include $12.5 million for trade and adhesives for various
telephones and other station packaging applications.
*
&
equipment; land and
buildings
$6.7 million and dial central of¬
Connecticut ranked first in per
fice equipment $6 million.
capita value of military prime con¬
tracts awarded between July 1950
A new manufacturing concern and June 1958 according to fig¬
is operating in Connecticut as a ures compiled by the U. S. De¬
result of the merger of Precision partment of Commerce and the
spend
by high production. There¬ manufactures flexible shaft ma¬
fore, it is very likely the first pro¬ chinery for general industrial use,
engines
duction models will be in a low chiropody drills, dental
and buffing and grinding equip¬
priced, high production automo¬
ment for the jewelry trade.
bile.
tenance of
The
in 1959, $2.5
ered
4%% Series Due 1979
Dated
shares
seven
were
Equipment, Inc. of Bethel and the
Foredom
Electric
Company
of
cost of reciprocating engines.
In New York. Precision Equipment
order to get the cost down it is purchased Foredom in 1958. Re¬
necessary to manufacture gas tur¬ cently the manufacturing facilities
bines in high production quan¬ and general offices of Foredom
tities/ Since the tooling and were moved to Connecticut and
manufacturing processes for man¬ consolidated with Precision Equip¬
ufacture of a gas turbine are dif¬ ment. The combined organization
ferent than those of a reciprocating is
operating now as Foredom
engine the cost can only be low¬ Electric Company, Inc. The firm
at
Southern Natural Gas
fuel oil.
Its fuel consumption
will
gas
filters a
WMNmOi a raPid rate, posed simple cycle gas turbines. size comparison becomes more
progress has Thus, a great deal of the effort of competitive in favor of the gas
'
been steady. the past six years has been de¬ turbine.
Development voted to designing either rotary
Predicts Appearance in
of production heat
exchangers with its seal
Low Cost Autos
models have problem, or stationary heat ex¬
Although it may appear that gas
not yet apchangers
with its
problems
of
turbines should
first
appear
in
peared
but manifolding.
sports cars, trucks, and buses, it
many
experi¬
Probably no group of engineers
is more likely for economic rea¬
mental models are working so diligently to - i
sons, that gas turbines in produc¬
have
been
inate their present assignments as
tion models will first appear in
built and in¬ the
development engineers and
high production, low cost automo¬
dications are designers of present day automo¬
biles. Trucks and buses for inter¬
that
produc¬ tive reciprocating engines. With
tion models each model of reciprocating engine city travel using super highways
Frank L. Schwartz
where the maximum horsepower
which
has
an
increased
horse¬
may be avail¬
can be
used almost continuously
able within the next decade. The power, a design requiring higher
would seem to be a natural appli¬
automotive models under devel¬ octane fuels, a fuel induction sys¬
cation for the gas turbine. In the
opment are largely in the 200 to tem which is more costly, or an
case of sports cars, a higher first
engine with larger air filters, the
cost might
be a market which
""From a talk by Professor Schwartz
ability of a gas turbine to eco¬ could be exploited by the gas
before the American Society of Mechan¬
ical Engineers, New York City.
nomically compete with the re- turbine. However, if gas turbines
are to be competitive with recip¬
rocating engines, they not only
must have equal or better per¬
formance than reciprocating en¬
This is vol an offering of these bonds for sale, or an offer to buy, or a solicitation of an offer to
y-f>\-'fbuy, any of stick bonds. The offering is made only by the prospectus,
gines, but they must also be made
mmMwmmmmmmm
ing engines.
to
fuel oil
use
octane
problems still to be licked are those of reducing costs and of
manufacture, as well as the design of a chassis and body
specifically for the gas turbine.
interest
quired for present day reciprocat¬
readily as 100 175,000 to 2,675,000. The purpose
The gas turbine of the increase was to complete
can have many fewer parts than
the acquisition of Columbian Na¬
reciprocating engines and so do¬ tional Life Insurance Company—
can
plains that the technical problems are solved but the major
The
Thursday, January 22, 19*9
.
be as good or better than
reciprocating engines. It will re¬
quire no antifreeze, have better
torque characteristics than recip¬
rocating engines, use less lubri¬
cating oil and burn kerosene or
turbine with ef¬
compete with recip¬
rocating engines. However, in the
200 to 250 horsepower gas turbine
size, efficiencies rise in an area
Stockholders of Hartford Fire
where
the gas turbine becomes Insurance Company recently voted
more
competitive. Gas turbines to increase outstanding shares by
horsepower
Michigan, Ann Arbor, Mich.
first appear in
one
driving the compressor and one
stage driving the output shaft. The
size will be no larger than present
day reciprocating engines. Its
maintenance will be less than re¬
.
ficult for designers to build a 50-
Prof. Schwartz opines gas
as
gas
using
sions.
Engineering,
Mechanical
horsepower
have about the same
horsepower
gine
By FRANKX. SCHWARTZ*
can
characteristics as a 300 to
reciprocating en¬
automatic transmis¬
It appears to be very dif¬
torque
In Woild's Automobile
200
A
evident.
.
CHAS.W. SCRANTON&CO.
Members New York Stock
Exchange
New Haven
*
/
New York—REctor 2-9377
Hartford—JAckson
7-2569
Teletype NH 194
-
Volume 189
Number 5814
.
The Commercial and Financial Chronicle
.
.
that
Fight Against
!
Takes
uncertainties, and not to the economic situation.
does observe
tendency for
for
Dr. Einzig
increases to continue despite
capacity and retention of idle employees on the payroll.
excess
wage
that
experience it is dangerous
inflation too
firmly is
on
the increase.
And
of
its
before
have high production and employment, and the decreased
>
open
the
1 '
welcoming message
STORRS, Conn. — "The Estate
Planning Team in Action" will be
the focal point of attention when
resist
columns
importantly, however, he finds alarming the increased
f' acceptance of price inflation as a necessary evil in order to
opposition to policy of reflation.
a
the
case.
Dean Ackerman will
School with
for
material
presentation of the
CaIiaaI aft Pahh 11 mi if
OCIHJUI dl If Willi IflllVi
basis .of
the
on
will
come
quately.
.
much
to
more
be
committee members are: William
Henry Carr, :C.L.U., Bridgeport;
comprehensive case history, taken John T- Redman^ New Haven; and
from the actual experience of a Frederick A. Risley, .Hartford,
further
aspects
noticed
then
ade¬
it
difficult
will
to
wage
rangements for the School. Other
Administration, pointed out
that participants will work from a
ness
Recovery will
much
inflationary
Even
dean of the UofC School of Busi-
about in¬
newspapers
flation these days.
have
to
preceed
More
<;
people who have come
coordinate' the
Underwriting
Monday (July 27) and Wilbur W.
rHartshorn, C.L.U., superintendent of agencies, Metropolitan Life
those who still believe that, taking
the 16th Life Underwriting School .Insurance
Co., New York City,
a
long view, inflation is by far meets at the
University of Con- will deliver the closing address,
the graver danger, are consider¬
necticut July 27, 1959.
; ■
Anthony S. Esposito, Stamford,
ably. less vocal than they were
In
announcing plans for the chairman of the Summer School
until recently.
There are hardly
School, Laurence. J. Ackerman, committee, is in..charge of arany letters in the correspondence
to
domestic and foreign political
to
recovery
'59 Ufe
The
evils;
two
distinctly
British) correspondent attributes pessimism about prospects
economic
the
believe
recent
By PAUL EINZIG
faster
of
number of
Holiday in Britain
a
unhampered inflation is the
smaller
to
13
(409)
r*
life underwriter.
be
LONDON", Eng. — The overflow The capacity is there and the out- campaign against inflation than it
t optimism
that usually char- put could be increased through was in 1957. -■V/.;,'.*
acterizes the general attitude at the re-employment of the unemV. V;
'
:
^
+v""'
the
beginning of each year is ployed and the working of longer
T
,
n
,
a 'jj
singularly ab¬
hours, without the installation of;; i ownsend, Dabney Adds
•
sent this year.
additional .cap i t a 1 equipment, j t [(special to the .financial chronicle)
While towards
Most business firms are reluctant, i 1 PORTLAND, Maine
Charles
the end of
/however, to increase their output. P. Soule has been added to the,
1958 a revival
This is partly due to the existence staff of
Townsend, Dabney. & Tyof trade, free
of Unsold stocks in many Indusson, 184 Middle Street.
of inflationary
tries, though in this respect the '
!';s : ; •
'
situation has improved.
exaggerations,
It now
was
Keller Brothers
seems reasonable to assume that !Four With
widely
the
anticipated,
growing consumer
demand
(Special to The Financial Chronicle)
of
,
For information;, about fees and
>
session, spon- Program, write to. Miss Dorothy
by the Connecticut State G. Lundblad,. School of Business
Association of Life Underwriters, Administration, UofC, Storrs,
The
a
one-week
sored
the UofC School of Business Ad-
ministration
and
the
Division
Conn,
of
..
Westheimer and Co.
™
,
three years'
experience;"
WTn*pimNciAL chronicls}- ,. ..
Topics to be t eovered; ;inclua^;;^ CINClNNATI, Ohio—Robert W.
Stock Valuation' Techniques;,
'^heV-Harries has . become . associated
Role of the Trust CompApy ih Es-Westheimer and Company,
tate and Business Planning;; The:?32(2 Walnut
Street, members of
Place
of
Trusts
in. Estate
the
be-
ginning
J
a
n
a
u
doubts
would
of
r
about
It is
monetary sta¬
feared that busi¬
now
revival will be slow this year
„—
that it will be accompanied
and
by
in
degree
of
prices increases
quite out of proportion to its exa
tent-
the
There
through
Joseph
Ferrini
are
now
curities
and
A.
Co., Inc.,
Recovery Pessimism
C.
Keenan
Court St.
Zero
still
are
Now With Murch & Co.
dismissals
The
redundancy.
also
Estate
and
School's
faculty
Francis T. Fenn, Jr.,
F.;
T.
:
C.L.Ui,
William
Co.,
Fenniman,
C.
(Special to The Financial Chronicle)
ex-
„
Bank
Trust
Edward
partner
C.P.A.,
&
Heiss and William K. Van Fossan
has
joined the staff of Suburban
Securities Co., 732 East 200th St.
Co., West Hart¬
H.
Heilman,
in
Jr.,
Joins McMaster Hutchinson
.(Special to The Financial Chronicle)
Hartford
the
MILWAUKEE, Wis.
partner in the Hartford law firm with
&
Riege.
Mr. Fenn will
They now encounter strong re¬
sistance, but in existing conditions
they are inclined to take a firm
doubtful.
or
Either of these two fac¬
tors is liable to
bring about
set¬
a
back in business recovery, though
if all goes well it could create an
atmosphere of optimism that
would encourage investment and
demand.
consumer
why
reasons
the
One
the
of
London
Stock
Exchange has adopted a cautious
attitude
towards
equities since
of the year is the antici¬
the turn
pation of unfavorable political de¬
velopments.
It is difficult to understand
revival
of
pessimism
in
the
respect
of the
prospects of trade recovery
purely economic grounds.
on
There
indications of
are
increase of
consumer
selling
has
distinct
install¬
on
resulted
in
sharp rise in the demand for
durable goods.
sumer
in
increase
the
tion
in
the
December,
must have
been
a
con¬
Judging by
circula¬
note
retail
brisk
trade
during the
Christmas season, and the annual
sales in January also appear to be
satisfactory.
According
the
to
estimates
latest
capital expendi¬
ture by privately-owned industry
is only expected to
be slightly
than
lower
ference
in
1958
will be
the
and
more
than
PROPOSED NEW ISSUE
redundancy dismissals. In one
instance
small
a
indus-
fear
is
490,940 Shares
they
forts to reduce their staffs.
will
have
tain
about
much
be
to
Capital Stock
labor
more
cer¬
in
le-em-
Offering Prices $12 Per Share
noteworthy
a
on
(Par Value $1.)
They
before they
prospects
would feel justified
ploymg
(in single transactions involving
scale.
Meanwhile wages are
and
the
in
a
as
and
The Fund will become an
sufficient
in the cost
open-end investment company upon
delivery of the shares being
Cost inflation continues
of living.
and
corre¬
a
production
a
further rise
for
cause
less than $25,000 each)
increasing
of
in
be
should
alone
this
absence
increase
sponding
registered)
Investors Research
difficulties in their ef¬
more
once
(amount currently being
should there be a
would
encounter
that,
relapse,
of investments,
offered, emphasizing, in its selection
possible long-term growth of capital and
income.
result of wage increases
in
increases
the demand
durable
consumer
goods
for
the
on
instalment
system there is also
once more some degree of demand
inflation which is not neutralized
A
registration statement relating to these securities has been tiled
Commission but has not yet become effective.
ties and Exchange
may
with the Securi¬
These securities
not be sold nor may offers to buy be accepted prior to the time the registration
effective. This advertisement shall not constitute an offer to
by corresponding increase in the
statement becomes
supply of goods.
sell
Curiously enough
ple
very
to
prepared
are
few peo¬
admit to
by the increase in investment in
sale of these securities
solicitation or sale would be unlawful prior to
qualification under the securities laws of any such State.
the solicitation of an
offer to buy nor shall there be any
State in which such offer,
registration
tion. Pressure on the Government
to reinforce its reflationary measures
continues
unabated.
The
threat of a slump frightened most
people
into
playing
for 105%
safety by putting up with much
or
themselves the facts of this situa-
the
or
in any
public sector of the
Over
and
above
all,
economy,
hardly
a
week passes without a major wage
and the cumulative
increase,
of
fect
to
be
these
increases
expansion of
an
is
ef¬
bound
consumer
inflation
demand.
to
deflation.
Wage
Increases
Precisely because of these wage
increases
in
it
is feared
of
a
no
fundamental
busmess
should
there
be
is
at
so,
would
the
of
be
output
; i5%
even
any
revival.
a
rise
extent
There
is
why this
considering that
reason
present much unused
manufacturing
it
that
prices will exceed the
capacity,
possible
by
to
so
that
increase
between.
10
and
in the complete absence
capital investment,
-net
stress
their
in
to their
dresses
risk
the
the
on
annual
of
bache & Co.
ad¬
need
for
resisting
15 ACHE & CO.
36 Wall
Street, New York 5, N. Y. •
tion.
Please send me a
,
T
...
~
.
T
...
slowness
of
the
in
the
United
other countries
argument
of
—
those
States
Preliminary Prospectus describing the
Investors Research Fund, Inc.
NAME-
business
recovery—not only in Britain but
also
DIgby 4-3600
..
Notes Less °ppos,tlon lo ,ntlatlon
The
the coupon below.
shareholders laid
inflation, most public pronounce¬
ments point in the opposite direc¬
,T
of the Preliminary Prospectus
return
Apart from bank chair¬
who
men,
remove
For your copy
and
reinforced the
who- believe
ADDRESS-
TELEPHONE-
Richard.
McMaster Hutchinson & Co.,
of strikes
threats
of
trial firm -actually dared to turn
touSh and closed down a section
of .its works affected by,such a
strike.
Many firms are afraid of mcreasing prematurely the number
°f riieir employees. What they
dif¬
offset
in face
isolated
demand. The
removal of restrictions
ment
a
line
—
First Wisconsin Nat'l Bank Bldg.
,
growing concern about the dif¬
ficulty of settling the Berlin prob¬
lem, and the outcome of the com-*
ing General Election is considered
is
-
and John H. Riege, W. Mueller has become connected
Cambria;
Reid
'
(Special to The Financial Chronicle) - *'" /
accounting firm of Knust, Everett
of
uncertainty is accentuated
and
ford;
:
CLEVELAND, Ohio—Harvey N.
pres¬
&
was
E> Aub & Co
Two With Suburban Sees.
.
follows:
Fenn,; Jr.
Cincinnati
Mr. Haynes
;
Planning;
Resolving the Legal Problems.
The
Hartford;
CLEVELAND, Ohio—George J.
planation of
this attitude lies
largely in the growing resistance Schneider has become affiliated
of the trade unions to redundancy with Murch & Co., Inc., Hanna
dismissals. During the boom this Building
members of the New
resistance
did, not matter very
y
sto'ck Exchange. Mr. Schneimuch, and most firms were quite
willing to "hoard"
superfluous der was previously with Central
...
Business
and
vice president of the Connecticut
labor. The recession induced them, States Investment Co.
by thepolitical factor. There however, to reverse their attitude.
The
in
ident; of
.
Business
Peter
Eoksuzian,
Edmund
A
and
Planning; The Role of the Lawyer
with Keller Brothers Se¬
tendency
points in the opposite direc¬
tion.
BOSTON, Mass.—Carl K. Ben¬
production. In fact
instances
many
still
about prospects for
ness
in¬
an
son,
in their
crease
Dr. Paul Einzig
and
bility.
absorb
to
not
business pros-
pects
able
output.
Nevertheless, business firms are
sufficiently
certain
of
the
prospects to embark on an in¬
y
have
developed
both
be
creased
York
stock Exchanges.
Busmessh
-
since
Plan-/ the/ Ne w
ning; The Role of the Life Underwriter, m Estate:, and.r
_CITY_
14
(410)
The Commercial and Financial Chronicle
tion of the Congress.
estimated
balanced budget for
light
of
fiscal
1960
year
/J
past five year's trend of larger budgets. It reflects
determination not to undertake any new—or expand
existing
minor
proposes
President says
tax
with present tax rates,
budget receipts should grow even
2, j Revise
than national income, al¬
though the rise in receipts cer¬
tainly will not be uniform from
*year
his budget should increase military effective¬
to
Also,
year.
—all within
ments
'
President
Eisenhower
is
confi-
dent that the Federal
butjget subCongress on Monday,
Jan. 19th, is both genuinely sound
and helpful in
mitted
all
to
de-
ways
spite its
mora-
torium
tax:
some
be
to
tax
essential
future
beyond. And it clearly
tion," even
that these things can be
?ate.
"
though
shows
achieve
small
Pres¬
e
envis¬
future
tax
frppHnm
cuts
and
omy
if the assumpt i o n s upon
wise,
the
budget
Eisenhower
correct, and if Congress
supports
the
recommended
pnirinvAnncoir.
commitant
again
asks
debt
the
that
ceiling
For
President
the
of
this
permanent
$285
billion
continued and that the
debt ceiling be raised.
be
temporary
prerequisite
our
to
nf
P.
national goals. Other-
for
-
long,
meet
individual
of
Gnvprnmpnt
Tn
vjovcrniiicni,
®*
~
this
...„
snort,
*
nSLIof
it
will
cost of
living
and
the
hidden
a
conduct
n?
it^olt
hpet
forward
move
confidently in
social
T+S
w
the Nation
and
tional Pros-
a
ti/^o
l
strongly
economic
at
progress
and
for
the
transmitted
tivelv
,hQ
and
fiscal
will
rp<?nrm<?ihlv
effecnuf
f-an-v
,
vernments
1960
year
herewith,
rmora
(3) It Is
Confident Budget.--
a
It, anticipates, in
vancin£ economy,
rapidly
a
.
role
..
.
in
dealing
with the problems and the
opportunities of the period ahead.
This budget proposes to
increase
Stionof th^ P°Uctes:
First,
IWe
stress
matter
a
keep
we
our
order./This
adhere to two
1
S"
■
S ^V
ernment activities
continuing
^
\
revenues W1U rnake possible.
grams,
agant
or
F(>r example
It is ail
it is an
Its
proposals
Attainable
Attainable
are
Rurio-ei
Budget,
realistic arid
...
beyond
years
pro-
tures
also
construction...
not
in
only
that
in later years.
but
year
Furthermore,
budget contains proposals to
modify certain activities and institute certain charges for special
services.
These recommendations
practicable and sound.
are
..
the
current
record
*
'
They
Our
will
economy
we
and
on
AND
EXPENDITURES
,
them
[In millions]
(ake
Under
enacted
authorizations
for later
enacted
recommended transmission
Total
Budget Receipts:
$36,900
20,074
17,000
:
or
recommended
$36,900
to
17,000
Customs
~~
8,612
8,467
8,467
328
20,448
7,841
328
1,393
1,365
1,365
Budget receipts
transmission
Total
$40,700
$1,000
1,104
21,448
8,945
340
1,415
782
840
840
3,100
3,100
1,415
900
3,200
Miscellaneous budget receipts
3,337
$69,117
,
$68,000
$68,000
$74,981
15
900
3,352
$2,119
$77,100
Budget Expenditures:
-abor and welfare
Agriculture and agricult.
Natural
re
resources
ources
Interest
Allowance
Budget
Budget
IIIIIIIIII
for
$278
$46,120
2,293
1,415
•3,708.
230
4,380
4,389
5,079
4,150
6,753
22
6,775
1,669
39
1,708
1,683
3,135
374
3,509
'2,454
5,026
3,447
Commerce and
housing
General government
1,356
7,689
contingencies.
expenditures
surp. ( +
♦Less
)
one-half
not
limit.
produce
We
cannot
for
must
as
,
with
deal
new
$71,936
1,531
7,601
5,198
,
142
.
$45,134
$671
1.498
"
will
do
how
and
it
will
in
It also
some
assumes
that certain programs can be made
self-financing by stepping up. the
sale of portfolio assets.
V :
Financing
budget
of
the
$12.9
for
deficit
the
billion
current
fiscal year will increase the public
debt
to
billion by June
$285
30,
" " " "
'
$78,053
dollars,
flnciudes
ceiling
5,080
4,092"
5,863
it.
If the "choice
is
responsibly
made, reductions obtained through
n u e s
rising
accompanying
growth
which
the
and
economies
will
can
be
economic
produce
used
to
reve-
surpluses
lessen
the
burden of taxes,, meet the cost of
essential
new
1,713
7.601
27/
8,096
22
*
4429
'
government
to
recommended
1960
$76.8
is
Further reductions in
new
tional
be
in
$2,818
$80,871
$75,612 *
$1,418
authority
With
1,735
nomic
are
pro-
r
1
.
continued
vigorous
and
recovery,
relatively
few_
eco¬
with
+
^
„
the
.
tax _adjust-
proposed herein budget re60 are expect©
ceipts in fiscal •
.
to
-$12,871.
proposed
postal
rate
increasesV $350
obliga-
attained
by the Congress enacting
recommendations for program
Budget
Receipts.
Extension of Present Tax Rates.
The
budget
outlook* for
1960
ma^es n essential to- extend present tax rates on corporation profits
and
certain
excise
taxes
another
beyond their present expira¬
tion date of June 30, 1959.
year
Development of
a
progress
reach;a. total of $77 1
billion,
f^can^;
Thus
a
very
was
was
—
More
Equit¬
Considerable
last
mst
made
maue
year, in
yeav.4"
attention
As
area.
is
the
necessary in
budget permits
dertaken
to
should
increase
the
be
un¬
fairness
the tax system, to reduce the
tax
restraints
incentives
on
to
/work and invest, and wherever
feasible to
simplify the laws.
Revenues.
our
—
economy
^an
was
The
resurgence
has
been
assumed
estimates that
.
were
in
.
.
of
stronger
the
budget
published last
-
+ 70
million.
can
modifications.
this
ofS$80 9nbimof
$77,030
fiscal
1961
my
?.dse? \of
1,710
100*
for
billion, which is
slightly less than the estimates
for expenditures and for receipts.
additional reforms
expenditures
^
100
re¬
the first half
of the fiscal year 1969, borrowings
which
would-be
repaid before
June 30, 1960.
The new authority to incur ob¬
hardships from the tax laws. Con¬
Budget Totals
—
200
borrowing
during
removing unintended benefits and
f1SCalu
8,096
heavy
cover
quirements
serv¬
objectives in mind.
5,996
2,243
iur-
keen formulated with these long-
Budget
37
132
anci,
able Tax System.
$45,805
„
oiuion
ices, and reduce the public debt.
The proposals in this budget.have
8 4
f —210
01
tber, to seek an increase in the
temporary debt ceiling sufficient
do
631
1,673
*
—82,819
million
for reductions
they arise. We must
ments
or def.
than
..
119
200
;
and
current programs.
tinued
$45,842
2,234
2,109
_
$44,142
1,543
'nternational affairs and finance.
Veterans' services and
benefits...
•
ment
run
Major national security
loopholes, for in¬
charges for special serv¬
choose what the Federal Govern¬
for later
340
_
will
granted and
spend them indiscrimi¬
We
conditions
Proposed
$40,700
333
I
Estate and gift taxes
nately.
laws and
Proposed
or
$34,724
existing
it
without
our resources
canont
we-
1960 estimate
existing
authorizations
1958
but
nues,
existing and proposed legislation
,
actual
Employment taxes
ices,
in¬
remove
and
ligations
continue
vigorously. This growth will
produce additional Federal reve¬
RECEIPTS
estimate
Excise taxes
legislation to
creased
process
this
,
amount.
laws and
taxes
tax
equities
part of the
a
as
budgetary
Pr°Jects underway throughout the should be enacted.
Second,
country will raise expenditures must examine new programs
these programs in the next 2 proposals with a critical eye.
unduly limiting.
to J
or
certain to keep on rising for several y.ears ai'ter 1960 because of
commitments made in the past,
(4) R is a Positive Budget.—It
responds to national needs, with
due regard to urgencies and priorities, without being either extrav-
Under
income
tion under existing law, for some
Q0-\\r
.
government outlays for
°^r ma-i°r activities are
1 son?e.
-ui
™
"V:
Individual
income taxes scheduled for reduc-
Second without one single new this budget for 1960 appropriay actlon by.the Congress to author- tions which will affect expendi-
Ainer" ize additional projects
3L
Based
Corporation income taxes
extending
and "corporation
fromi year to year. .
.
Consonant
with this policy of review, reduc¬
tions have been recommended in
in costly to operate and maintain.
AU
«
OF BUDGET
Description
excises
must review all gov¬
we
grow
SUMMARY
recession-
a.
deficit ^ «19 Q nuu™ in
of $12.9 billion in
of recommendations for
defense
and
wea-
complex and costly to
costly to procure, and
are
develop,
ad-
increases
pons
to
modern
1960. compared with
induced
tSes "and comi°tf uD^thfi.nitv
'
home,
while
fulfilling ourl responsibilities
abroad. The budget of the
United
States
tlvely sma1.1 expenditure reduc- - Both
domestic
tions. Keeping our military struc-.needs require that
ture capable and ready to meet financial house in
any threat means that we must means that we must
we
about $0.1 billion is estimated for
..
tr"u"e
^Td//which
^
present
As
as long as 0f national policy we must, for
must maintain military readi- example, make our airways measnf
xnmriri
frnnMp
again the fact that
' j
tures in future years.
re-
main extremely large
It fa but
-;;"' ^//?!./ /'■
.
the current fiscal year.; This esti¬
mated balance assumes enactment
_
n°W
r
onH
a d unrestUntu theie is a significant
and
secure
easing
of
world tensions, the actions by the
Btidind
.
^
nation, and
new
resulting from
the changing nature of our society,
will
generate Federal expendi¬
our
ure
up
to .the operational and
safety needs of the jet age. We
must
not
forget that a rapidly
(1) It is a Balanced Budgets—
growing population creates virMy recommendations call for an Department of Defense to realign
tually
automatic
increases
in
:—1'"L
'
:—i~11~
approximate
equality
between forces, close unneeded
installa- many Federal
responsibilities.
revenues and
expenditures, with a tions, and cut back
outmoded
small surplus.
*
weapons will achieve only relaFiscal Soundness and Progress
the
.
Moreover/inescapable demands
; ftom
n(lw technology
growth of
requirements
com¬
First, defense spending will
budget fits the conditions of
todav bec-niise*
uaj
v-auoc.
today a* and unfair tax that inflation haNation differs
significantly from Poseson personal savings and in-
npritv
-.'/;/:, the cost of those services.
.
J-
.
Adjust other fees and charges so that persons
receiving special services will more nearly pay
"
and the
jng years we must recognize Cerfain hard facts,
face
we
>/
\
are resuiting
an
increases in
The situation
a
7. ;
V7T'' ——
ditures under control in the
we
«hnrt
in
„
low:
"
•
to 4V&-: cents/per
I gallon and levy new 41/^-cent tax on
jet fuels.
;
*
:
.
receipts!
- ./
; 7^
Lp 6.C Raise aviation gasoline tax
The
—
,
for
legislation relating to taxation /;
cooperatives.''■ v.!/ v--" i'J'S'
Other-
,
'
-
keeping total expenexpen
in
atttain-
Excerpts from the Budget mes¬
of President Dwight D. Eis¬
enhower for the fiscal
year end¬
(2) It Is a Resnonsiblc
ing June 30, I960, submitted to the —Bv avoiding- a deficit
Congress of the United States fol-Jhelp prevent
further
sage
J""1""
una
th^manv ottler necessa^rJ«?nmis-
con-
TV*..
proposals.
however,
year,
Control of Expenditures.
strength ol our
we cannot,
imperatives
the
is
are
are
ment of
Pres.
based
r
,
Enact corrective
of
...
ffenrth?gUreS emphasize thatwe
econ- to succeed
the long-run
debt reduction
which
_
•^
adjustments:
computing percentage vdeple-:.;
tion allowances to insure that they are limited
to mining processes. '
,1///;
•
to
surplus.
T h
ident
ions
We cannot, of course, undertake
a
*-
-
i/W
tax
•
Revise rules
,
5.
estimated 1960 expenditures, white '
satisfy all proposals for Gov$3.9 billion less than in 1959, will
ernment
spending.
But
as
we stin be
$12.4 billion higher than
choose which ones the Governin
1955, an aVerage increase pf
ment should accept, we must alalmost $2.5 billion a year;, These
wive
wimprnW +w
income.
our
additional $350 ^
an
equitable plan for taxing income of life
insurance companies.
•
/,
;V; •/ '■
:
4.
at1 a:- modest
spending
changes
de¬
signed
to
done within
•
,
maintain
and
strengthen the incentives for con-:
tinued economic growths With a
years
in
Enact
3.
adjust¬
in
bring
re¬
help
downward
to
Special and technical income
military effectiveness, to en- balance in our finances in
1960,
hance domestic well-being, to help we can look forward to tax reducfriendly nations to foster their de- /tion in the
reasonably foreseeable
velopment,
to
preserve
fiscal future. In the long
run,
taxes
soundness, and to encourage eco- should be so arranged^ that in
pe-1
nomic growth and stability, not
riGds of prosperity some annual■;
only in the fiscal year 1960 but in provision is made for debt reducour
the
on
will
years
income.
our
and
rates
'million in fiscal 1960.
•
forms
enhance domestic well-being, help allies develop, preserve
fiscal soundness, and encourage economic growth and
stability
ness,
gallon.,
Postal fund:
system,
Moreover, without encompassing any signifi¬
changes in ratio of defense to non-defense spending, the
cant
1. /Raise motor fuel tax to 4^2 cents
per
Un¬
.
income"
graduated
our
.
Receipts Proposals in the 1960 Budget
Highway trust fund:
for the next few years.
faster
$1.3 billion.
to
New
general
Government
fi¬
for
Growth of Revenues.—.
der
increases amounting
revenue
Thursday, January 22, 1959
.
/
the, following
prospects
reverses
—spending, and
'
This budget was prepared in the
nances
President's
.
be achieved with the coopera¬
can
Federal Budget for 1960
Is Balanced and
.
September.recejpts for
^ow
are
modest surplus
of
*'
Consequently, budget
the
fiscal
year
1959
exP€cted to total $68
Continued
on
page
66
Volume
189
5814
Number
.
The Commercial and Financial Chronicle
.
.
tainable^l
Eisenhower Finds Business Good
g-t erm
o n
Monetary
a
expansion.
prices into the months and
view
This
ahead.
policy was
to limiting
credit
and
with
shifted
will
The basis for favorable economic outlook
prediction and the
singularly economic problem of price inflation
are
;
•
Congress, is
|
[
mation
•;
a
transmitting /the ..[annual
Economic Report to Congiess, as
:
1946,
Jan.
on
20,
pacity
Eisenhower
but
nomic
to
eco¬
^growth.
decisions
quarter
value
Eisenhower
Pres.
of the
including Congress, the
prescribed
a
large
number of proposals with stress
placed upon a balanced budget,
prudent
spending, restraint on
wages and increased competition.
President
thp
<bowpvpr-
Pros-
pect of tax reform and reduction
ir.
(h.
Wocooohio
in
the foreseeable future if the
the
formula
anti-inflation
that
and
economic
made
in
contractive
of
personal
income,
thus help to maintain demand,
on
,
,
units
THE WHITE HOUSE,
'
Jan.
20, 1959.
herewith my Eco¬
nomic
„„
ixelJUIl
as
lcyullcu
Report,
as
required by
"uu, L
icquxicu
vy
Section 3(a) of the Employment
present
Act
iInthpreparin0g"tWs
1946.
of
report, I have had the advice and
'assistance
'nomic
be
rea¬
of
The
1
.
individual
consumer
can
Sales
in
of
more
d s
United
u n
pace
-
efforts.
less
schedules
Council of Eco-
of the
Advisers.
have
I
had
also
the advice of the heads of execu-
Legislation was enacted to lengthtemporarily the period of entitlement to unemployment benetaken
were
t0 spf, bui!ding a,ctiv"yi, 5tep?
taken to accelerate Federal
der way
un-
and to speed up projects,
the
They must wage
be
a
our
millions of
controls, which afre
which would
the
nation's
be
an
against costs. Production
on the most economical
:
to
obstacle
growth
economic
and improvement.
cease¬
-
The chief way for Government
discharge its
fiscal
year 1960, which balances
expenditures With receipts at' a
level of $77,000,000,000, seeks to
fulfill this responsibility. If Gov¬
ernment spending is held within
the
limits
set
in
the
proposed
,
budget, the growth of our econ¬
omy at the rate that may be ex¬
only road to greater material
pected would make it possible-in
realization
of
our
.fullest
the reasonably foreseeable future
productivity potential, and that to
provide, through a significant
Stability of prices is an essential further
step in tax reform and
condition of sustainable economic
reduction, added incentives an a
growth.
means
for vigorous economicThe terms of agreements reached
growth and improvement.
between labor and management in
the
Governmental
actions
in
and related matters will have
Activities
addition to
in
under
credit
Federal
of
ber
foundation for extend-
growth with stable
critical bearing on our success
num-.
a
programs,
those, in the
.
'?gr /
offer to sell or a solicitation of an offer
The offering is made only by the Prospectus.
This announcement is not an
hous-
; tive departments and independent
'
"
'
to buy these
securities.
'
cession. And the. acceleration of.
m
"
,
f
la"lU/f/t'h!
I consider to be
,h
,
d
GOUnt
,
th
being undertaken in line with na-
its salient co
tional
and recommendations.
sions
h
,d
"...hat defense procurement, which was
if
,
o
,fl
'
effect/' * '
1957-58
The
Economic Recovery in 1958
$20,000,000
security policy, exerted 'an
expansive
.
recession
shows
Indiana &
"
:
that the major emphasis of Fedin eral policies to counteract an ecoin nomic downturn should be placed
When the Economic Report was
submitted
to
contraction
employment that on measures that will act promptly
some
six
months to help shift the balance of eco-
January, 1958,
production and
started
had
earlier
was
Congress
the
a
still under way.
The
and growth/ Though an
effective contribution can be made
by the acceleration 'of public conin May, 1958, and by the end of struction projects already under
the
year
most of
the
ground way, little reliance can be placed
lost had been regained. Gross na- on
large undertakings which,
-tional product, our broadest meas- however useful they may be in
decline
proved to be sharper than
the 1953-54 recession, but it did
not last as long. A recovery began
of
•ure
.'goods
;
services,
of
an
operation only after an extended
interval.
annual rate of $453,000,000,000 in
this
highest
the
;
almost equal
output
attained
was
to
in
the pre-recession period. Nearly a
more people were at work
in December, 1958, than in July,
a f t e r
allowance
for
seasonal
changes. Although the number of
million
•
:
.
unemployed
persons
was
above
in
December,
it was
below the highest unemployment figure reached dur-
.4,000,000
1,000,000
•
;mg
,
the
tsalary
income
spending
were
at
and the index
of
,had
Wage
recession.
and
an
and
consumer
all-time high,
1957-58
The
portance, in
earlier.
The
a
Prospectus may be obtained in any State in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in such State.
situation in which
such
HALSEY, STUART & CO. INC.
powerful corrective forces are at
hasty and disproportionate actions,-such as tax
reductions
that'1 needlessly
enwork, of avoiding
prospects of future
balance "and prejudice the
danger
fiscal
0 r
d
e r
the
1 y
structure..
revision
of
the
•"
tax
-
As production, employment, and
income moved upward in 1958, the
year
.
no
gcpnomfc CM/SEE
consumer
1, 1988
Price 102.411% and accrued interest
experience is also
reminder that there is
prices
a
Due November
,
simple
prescription for corrective action
which can be' applied with only
minor variations in every business
downturn. It emphasizes the ima
been virtually stable for six
.months, although about 2% higher
than
Bonds, 4M% Series due 1988
1958
the longer term, can be put into
at
was
.the fourth quarter of the year. In
dollars
of
constant
purchasing
power,
Dated November 1,
>
recovery
output
nation's
the
and
Michigan Electric Company
First Mortgage
nomic forces from contraction to
with
keeping the recovery on a
sound basis and promoting a sus-
AMERICAN SECURITIES
R. W.
CORPORATION
PRESSPRICH
& CO.
PAINE, WEBBER, JACKSON &, CURTIS
L. F. ROTHSCHILD & CO.
-
WEEDEN
&. CO.
BACHE & CO.
STROUD & COMPANY
SHEARSON.HAMMILL&CO. THE ILLINOIS COMPANY
WM. E.
January 22, 1959.
BAXTER & COMPANY
INCORPORATED
INCORPORATED
POLLOCK
other
areas
can
also help to maintain
in
price stability as our economy ex
attaining a high level of economic
Continued on page 16
growth with stable prices. It is
a
supported by Federal -financial assistance.
in
responsibility
helping to achieve economic
growth with price stability ," is
through the prudent conduct of its
own financial affairs.
The budget
submitted to the Congress for the
well-being for the nation lies in
wage
Our objective must be to estabfirm
to
to play,
great power lodged
in their hands. Their economic ac¬
tions must reflect awareness that
..
n
and
in view of the
»•
!1SP
de¬
traditional way of life
Leaders of labor unions have a
'
A Program for Economic Growth
With Stable Prices
were
constl.uction projects already
the
or
Expanding markets in themselves,
promise economies that help keep
costs and prices in check.
over-all economic expansion,
-
If
be
alien to
to particularly critical role
•
cannot
Americans,
The importance of
wide and growing markets must
be borne in mind in setting prices.
an
en
improvement of
achieved
under our arrangements for de¬
termining wages and prices, the
alternatives are either inflation,
results
sired
basis possible.
already
may
stability oil
material welfare.
our
can be
a powerful
holding down the cost of
war
must
of business activity
soon come
for the
heavily
Businessmen must redouble their
into mortgages,
States products
quickens and the trade po-
duction
essential if reasonable
prices is to be reached within the
framework of the free competitive
institutions
on
which
we
r61y
which would damage our economy
foreign markets may increase
as the
Self-discipline and restraint are
and work hardships on
of an«ld/' i"deed-,th? gap between
current sales and stepped-up pro-
actions V also
fits. Numerous actions
In¬
in the end self-defeating. -
are,
living and strengthening the prin¬
that good values and good
prices make good business.
assured flow of
payments, notably by.-those made inventories should
Governmental
them.
in
housekeeper
a
unemployment insurance.
interest
in money wages and
force in
expansion especially
,
■
played
Letter of Transmittal
I
will
by all
in our society and by all
government.
groups
business
primary producing couninromftrlf,s !s'TfrSved,- T,h? eot^Ded1
.
outlajs of Federal, state and local
Tre nff£t to
gp^i-nment unite .will continue to
PJ°££e"ttarne, w'rise. Under the impact of these
developments, the liquidation of
,
recognized that the public
vital
a
creases
on
recommendationsciple
the report to provide a
private ', f
,
1""» «"v ■rEEF"hv *£?
prescribed
energetically followed.
-;
dollar
is required on many fronts,
important role in mod- have been closed. The effect of
erating the recession and helping these favorable factors on eraThe text of the Letter of Trans¬
to bring about a prompt and sound ployment and income can be exmittal
accompanying the Presi¬
recovery.
Monetary *and
credit pected to enlarge the markets for
dent's annual Economic Report to
policies were employed vigorously/consumer goods and thereby to reCongress follows:
to assure ample supplies of credit, inforce the conditions making for
is
the
of
Action to meet these challenges
into
Factors
on
economic
sonably stable in the years ahead.
of
if favorable action is taken by the
the
impact
has
these
of
terms
must be
growth is firm confidence that the
extended
be
ahead.
Congress
Increasingly, our people work in
out
second
will
steadier and
influences
stable
hplri
year,
months
economic system that niodr
our
erate
economy,
Hp
last
Also of importance are features
of
all important facets
For
in. the
the
of powerful forces making for
long-term
we
IpvpI
P
com¬
These are basic
continuing
XCclSUll
reason
improve-
rihe^ continuing outlays .should contribute further
growth
a
nrire
narrow
that the
,
•my
.can achieve a
firm
founda¬
with
economy.
and
orous
IS
there is
W1C1. C
opens,
upcus>
business activity, which
in
began
operation in the American econo-;to
considerable
tion ' for
free
industry and resourcefulness /favorable, and an upturn in these
play an important part by shop¬
of our people, 4he * strength and
expenditures may already be unresiliency of our free * competitive der way. Residential construction ping carefully for price and qual¬
ity.
In this way the American
institutions
and
evinced
Whether
1959
confidence
are
factors
as
petitive
capital outlays have become more
determining
concern
improve
and
our
,Government
of
to establish the
contracts, but it
society
our
of
limits. Many factors contribute to. influence
this capacity.-Chief among them,
u t
the
direction
recovery
for
ca-. ment
resist
to
economy
within fairly
downturn
a
[a bo
the
our
contractive influences and to hold
conf idence
of
of
/.As
,
The events of the last 18 months
f.m«E/oyment.Act &how again the »considerable
president
[expressed
s
/'
.
of
function
the
not
in
growth.
-operations
Economic Policies 1h 1957-58
In
safeguard
come
And
the
fiscal fective use of our human and on those whose incomes are not
government / a r $ technological resources. We must enlarged. They jeopardize the ca¬
moving -in the direction of restor¬ provide, incentives for the enlarge¬ pacity of the economy to create
ing a balance between outlays and ment and improvement
of the jobs for the expanding labor force.
incomes and thereby countering facilities that supplement human They endanger present jobs by
effort and make, it increasingly limiting markets at home and im¬
potential inflationary tendencies.
productive. Finally, an indispen¬ pairing our capacity to compete
The Economic Outlook •":* '
sable condition for achieving vig¬ in markets abroad. In short, they
nomic
>
program
prices, wages and related costs and productivity.>
on
not
other
to
America's
unassailable
eco¬
compensation not justified by the
ducted with a view to enhancing nomic strength. We must wage a productivity performance of the
the basic stability of our financial relentless battle against impedi¬ economy are inevitably inflation¬
system and promoting sound eco¬ ments to the fullest and most ef¬ ary. They impose severe hardships
productivity. Included in ; his -V
for business, labor, consumers and *
proposal to enlarge and improve "public infor-
recommended
of
institutions
within the bounds of
wages
/
must
the
expansion of bank credit to a
pace.
The large fi¬
nancing operations of the United
States V Treasury • are being con¬
controls, the President adjures labor and management to keep ;
u
we
sustainable
principal
topics in President Eisenhower's Economic Report to Congress.
Clearly pointing out that the alternative to price inflation is
years
about
automatically. To attain our goal,
the
And Prescribes Inflation Cure
15
(411)
THE MILWAUKEE COMPANY
.CN- ,.OC
I McMASTER HUTCHINSON & CO.
S.
16
The Commercial and Financial Chronicle
(412)
Continued from -page
15
Helm
Eisenhower Finds
Business Good and
Though
Act
The Congress will be
of
1946
to
make
business
banking
and
income
re¬
prospects,
legislation and regulation needed to improve banking.
b
a
135th
Jan.
foreign markets."
as
.
k's
n
20th.
the
that
over
credit
-
has
all
derly
and
progress
vigorous,
sustainable
within
a
or¬
economic
framework
of
at
and
1959
All
of
our
broad
people,
in
view
was
dangers of inflation.
program.
is
an
come
economic
cited
several
be
rate
than
more
of
A
reduction
assessment
ever
seems
Brokaw
warranted."
of
the
upon
.
.
balanced
a
lems," Mr.
ability
at
the
of
Borman
is
board
announced
Food
by
of
been
Co.
with
for
many
goes
became
Forbes
&
back
secu¬
1923
to
associated
with
Co.
f
directors
Stores, Inc., it
Tom Borman,
Siegbert Oppenheimer
';
Opens in New York City
Siegbert
gaging
in-
Oppenheimer
a
securities
is
en¬
business
from offices at 106 Fort Washing¬
ton
Avenue, New York City.
President.
With Lee Higginson
With L. L. Blair, Inc.
Timothy D. Sheahan has joined
Lee
(Special to The Financial Chhonicle)
CHICAGO,
Shields
with
111.
has
La
Mary
become
Lorraine
North
—
Salle
L.
V.
connected
Blair,
Inc.;
Street.
30
Higginson Corporation, mem¬
bers
of the
change,
as
New
a
York Stock Ex¬
registered
tative in the New York
Broad
represen¬
office, 20
Street.
Federal
Helm observed. "Her
this
time
to
allow
NSTA
Notes
further currency
a
made
has
convertibility is
only because she
possible
followed
firm
and
proven
principles in her government fi¬
nancing and in her heroic fight
against inflation.
;
.
.
.
.
SECURITY
TRADERS ASSOCIATION OF NEW
YORK
r
is
"It
high time that Congress,
businessmen, bankers and labor
leaders together lay the ground¬
na¬
for
effective
an
-
anti-infla¬
tion campaign. We should all
Mr. Helm
problems
"which
ognize inflation,
est
to
concern
.
"England has made great strides
in the solution of monetary prob¬
scene,
grave
to
has
&
Stock
repre¬
His experience in the
Harris
our
maintain
work
commenting
tional
every
the
reported.
New York
budget,
Inflationary Factors Cited
In
should
DWIGHT D. EISENHOWER
A higher
monetary stability
essentiality today, and it can
only after we provide and
respect for
more encouraging
long-term trends; greatly
influenced by an expanding popu¬
lation, steadily rising standards of
living, scientific progress and new
product development."
in
our
of the Federal Reserve System for
their
constant
alertness
to
the
the
are
our
for
We commend the Governors
omy.
ago. Even
year
of
interest
common
promoting the nation's economic
strength, can fully support this
Mr.
Starkweather
market,
especially for banking,
it
appetite of
of
cause
is brighter than
the
community
this narrowing public
the banks have had to
carry a larger share of Govern¬
ment
bonds
in
their
portfolios
than is proper in a sound econ¬
a
"The outlook for American busi¬
ness,
been
elected
Government's securities. Be¬
own
re¬
reasonable price stability.
their
entire
a
lessened
investment
he added.
in
achieve the goals of
the
healthy respect for
their currencies in order that they
Named Director
might present a sound basis for
Eugene H.
Catron, a general
loans, credits and aid," Mr. Helm
partner in the investment firm of
said. "Yet, Congress has not faced
Shields
&
Company, has been
up to these fundamentals and this
annual
Noting
among nations and to assist in the
Favorable consideration of these
in
in
mained
legislative proposals by the Con¬
gress will materially help to
of the $28 million
sustained
the
Moore, Leon¬
Wall
Street;
Exchange, as a registered
sentative, it is announced.
New
the
development
or
well
Bank,
York, on
improvement of high level de¬
our economy will be administered
spite the re¬
vigorously. Also, new legislation lapse in busiwill be requested to strengthen n es s in the
Harold H. Helm
competitive forces, to enhance per¬ forepart of
sonal welfare, to promote integrity 1958, Mr. Helm stated that "indi¬
in labor-management relationships cations point to continued sub¬
and to foster better industrial re¬ stantial capital spending by indus¬
lations, to assist local areas expe¬ try and an improvement in retail
riencing heavy and persistent purchasing by consumers. These,
unemployment, to make more ef¬ together with an anticipated ex¬
fective use of the large Federal pansion
of inventories in many
expenditures relating to agricul¬ fields, should lead to a strong
tural price support, to
promote need for bank lending in 1959,"
economic growth and
now
he
and
of the free World.
than 80%
years
million,
14
business
of
trade
$23
over
rities
demand for
to
members of the
the last 25
over
has joined
of
Lynch,
change
related costs and pro¬
favorable
&
when
ductivity will be accelerated.
The many continuing programs
conditions
ard
years.
Ex¬
meeting
the
past Tuesday,
promote
Brokaw
have
Corn
Chemical
with
that
Lee
and its products out of domestic as
the
of
man
and maintain
Government
W.
country by FDIC from date of or¬
ganization through 1957, the latest
year
for which official figures
the
expansion
Moore, Leonard, Lynch
York office
more
brighter outlook for business, to excess Federal spending over
especially for banking, is pre¬ income and "to the danger that
dicted by Harold H. Helm, Chair¬ American labor may price itself
governmental programs and
activities are administered in line
wages and
W. L. Brokaw Joins
New
losses
A
that
price stability, and programs for
the enlargement and improvement
of public information on
prices,
suffi¬
expenses
aggregate
"Foreign countries have been
urged to balance their budgets
of reasonable
is
FDIC's annual
Thursday. January 22. 1959
.
alone
the occasion of
objective
fund
the
.
plus all losses
incurred since its inception on Jan.
1, 1934. Chemical's contributions
that act. Steps will be taken with¬
in the Executive Branch to assure
the
this
cover
operating
reasonable
explicit goal of
Federal economic policy, coordi¬
nate with 'the goals of maximum
production, employment and pur¬
chasing power now specified in
an
from
cient to
alarm about price inflation
and calls for concerted remedial action by Congress, business¬
men, bankers and labor leaders.
He also specifies corrective
quested to amend the Employment
price stability
about
optimistic
plus
Chemical Corn Chairman expresses
Offers Inflation Cure
pands.
again warranted. The FDIC's sur¬
fund now exceeds $1.9 bil¬
lion. A single year's investment
Optimistic On Year Ahead But Alarmed
Over inflationary Trend
.
even
form, for what it is: A
tom of failure—failure of
citizen." He called attention
to
a
symp¬
nation
itself wisely, and fail¬
govern
of its citizens to
ure
rec¬
in its mild¬
responsibility
their
assume
lor
maintaining a
currency.
For
the community as a whole, there
is no hedge against inflation. The
price paid to avoid it is much less
than the penalty for accepting it."
sound
—
Annuat
stable
and
Legislation
•
Regulation
and
"A modest correction in the
Reports
realistic
which
the
Federal
Reserve
member banks
upon
un¬
requirements
reserve
fixes
(1) STANY 1959 Officers—Gambol J. Dunn, Dunn & Rollins,
Honorary Chairman; Wilbur Krisam, John C. Legg & Company,
Treasurer; Barney Nieman, Carl Marks & Co. Inc., First VicePresident; Bernard J. Conlon, P. F. Fox & Co., Inc., President;
Bernard J. Tompkins, Tompkins
& Lauren, Counsel; John S.
Barker, Lee Higginson Corporation, Second Vice-President; Salvatore J. Rappa, F. S. Moseley & Co., Treasurer.
the most
was
encouraging
Mail
your
ANNUAL report to
the
Investment houses
ment in
of
.
the
Country. •" Investors look
your
to
throughout
company
them for information
the
year
when
on
regulatory develop¬
banking during 1958," Mr.
Helm said. However, he felt that
-these reserves, currently fixes at
of demand deposits for the
larger banks in New York and
-
i
•18%
planning
purchases for their portfolios.
Chicago,: 16V2% for banks in the
.
.
.
48
Al» IIKESSOUK APII
.
•
*
-
classified
Reserve
Chairman
"the
We have
a
metal stencil in
for every investment
country,
arranged
our
alphabetically by States
and within the Cities
by firm
and
need
Helm
lor
.enable New
Addressograph Department
r
banking and brokerage firm in the
Cities,
York
branch
of
offices
York
banks
an
to
meet
expanding
As
long
confined
are
City's
that
legislation to
continues.
area
New
declared
state
the 4 demands
trade
names.
and
..
,
SERVICE
Cities
,11% for banks in other cities, "are
still high." - * *
;
;
as
to
corporate
own
limits
This list is
revised
continuously and offers
up-to-the-minute service available.
Our
charge
you
the
most
7
work
addressing envelopes for the complete
list (United States or
Canada) is $7.00 per thousand—
9,000
names
in
United
States,
900
benefit
of
in
However,
can
also supply the
small additional
list
on
gummed roll
labels
at
these
limits
in
gaining
banking
are
the
full
at
our
branches. Remedial action by the
Legislature undoubtedly has been
delayed by differences of opinion
among various groups of banks.
Canada.
We
outside
handicapped
for
approximately
(Brooklyn, Bronx, Man¬
hattan, Queens and Richmond),
our many customers who live or
made
a
to
ences,
charge.
every
effort is being
reconcile these differ¬
and it is hoped that state
laws may be amended
permit branch operations
banking
to
soon
HERBERT D. SEIBERT &
CO., INC.
25 Park Place
REctor 2-9570
New York 7
throughout Metropolitan New
•a'
York.
.
.
-•
.
"For several years we have al¬
luded to the
unnecessarily high
(2)
STANY Advertising Committee—(Seated): Barney Nie¬
Carl Marks & Co. Inc.; Nathan Krumholz, Siegel & Co.;
J. Ronan, New York Hanseatic Corporation; Bernard J.
Conlon, P. F. Fox & Co., Inc. (President); Stanley Dawson-Smith,
Cruttenden, Podesta & Co., Chairman; Joseph F. Conlon, J. H.
man,
Frank
Crang
&
Co., Vice-Chairman; Edward J. Kelly, Carl M. Loeb,'
Co.; Alfred F. Tisch, Fitzgerald & Company.
(Standing): Walter Filkins, Troster, Singer & Co.; Elbridge H.
Smith, Stryker & Brown; Salvatore J. Rappa, F. S. Moseley & Co.;
Leo Brown, Asiel & Co.; Harold Murphy, Gregory & Sons; Irvin
Hood, Jr., Lee Higginson Corporation; John S. Barker, Lee
Higginson Corporation; John Cirenza, Gregory & Sons; James
Gahan, Gregory & Sons; Charles Frede, Grimm & Co.; Richard
Portmore, Schwabacher & Co.; D. Raymond Kenney, D. Raymond
Kenney & Co.; Joseph H. Billings, Cowen & Co.; William J.
McGovern, Blyth & Co., Inc.; David Brill, David Morris & Co.;
M. K. S. Altman, H. Hentz & Co.
Pictures taken at first 1959 meetings of STANY officers and
Advertising Committee by David R. Mitchell, Hill, Thompson &
Co., Inc.
Rhoades &
imposed by the FedDeposit Insurance Corpora-
BOSTON SECURITIES TRADERS ASSOCIATION
eral
tion
and
thirty-fifth annual dinner
assessment
earnings.
its
adverse
Comment
effect
upon
upon
this
is
The
at the
Boston
Securities
Traders
on
Sheraton Plaza Hotel.
Association
will
hold
Friday, February 6th, at 7:30
their
p.m.
189
Volume
Number 5814
.
.
.
The Commercial and Financial Chronicle
(413)
THE MARKET..
areas
where population mated the
peak reached in
growth is the rule rather than 1955.
❖
*
if
buckingr established competi¬
tion in relatively stable areas.
Another candidate for a
Some projections for this fis¬
good rebound as business im¬
cal year are for sales to cross
proves is Diamond Gardner
the $400 million line and for
which, to some, lost one of its
AND YOU
By WALLACE STREETE
Industrial stocks
still to
basis of
$1.80. The easi¬ earnings to cover the dividend
^
irregular in spots this week ness in the stock price kept four times over.
:
but
enough spotty strength pace, however, and it is avail¬
Opportunities in Foreign;,
was
around
at
any
given able currently at a relatively
Issues
moment to keep their average high 5% yield.
•The foreign companies com¬
❖
*
%
toying with its all-time peak
parable with our giants have
although definitely bumping
Last year the discouraging
shown little
into
much
resistance
as
it
ability to win a
dividend action made the is¬
solid-core family of American
neared the 600 mark.
sue break
through its 10-year
stockholders, except Royal
range on the downside, reach¬ Dutch
Petroleum, which
American Telephone, which ing a price of below $33. It
judged by its turnover, would
has shed the pattern of nar¬ has * shown no
recovery seem to
have a good trading
row
moves for which it was
worthy of the name since, al¬
following in our markets. A
noted for so many years, was though its current payment is
domestic outfit that stands to
one
of the more persistent covered amply. A good jump
benefit from the
were
a
•
•
.
,.
■
losers but
far had retreated
in
1958
sales
could
proven man¬
indicate
better assets when it
merged
with Gardner Board and lost
the famous
name
of Diamond
Match. That merger came
when the
economy was already sliding; nevertheless
last year's profit seems to
have covered the dividend
been
offering
an
average
%¥>%
return.
Its
chain, incidentally,
well back into the
S. L. Ross President
Renyx, Field
Park
Avenue,
and
for
years
its president,
elected to
was
the
created
posi¬
tion of Chairthe
of
man
Board.
Mr.
Ross
has been
gional
a
re¬
man¬
of
ager
Renyx,
Field
stretches
&
since
19th
Co.
1945
and
cen¬
tury. Bolstering prospects for
a
sharp rebound was the
late last
4
newly
chairman
opening
& Co., Inc., 250
New York City,
has elected Samuel L. Ross
pres¬
ident. George M.
Field, founder of
the company
dividend
of a
agement of the Philips Elec¬ vast forest
less than a third of the ground the company has turned the
products mill that
tric Company of Holland is
should prove a valuable aid to
Its price-earnings
covered after its stock split corner.
Consolidated Electronics In¬
the company's
of some
had become official. That adds ratio
12-times
the
earnings poten¬
dustries, the former Reynolds tial.
At recent levels the stock
up to a loss of some 10 points average earnings of the last
Spring. Philips' stake in it is has held at almost a dozen
after it had tacked on 38 since several years is conservative.
35 % ownership.
the news was announced.
points under its 1956 high so
#
*
*
/
Investment Companies at a
that on that basis, at least, it
if.
if
if
Discount
Here, again, there hasn't is not
among the issues that
To the cynics the fact that
been much time to prove the
There was also some atten¬
already have discounted much
it took Telephone 33 years to
capabilities of the company of the future.
alter a fixed dividend policy tion being given to the invest¬
since it was only four years
ment
[The views expressed in this
means that
it will be a long
companies that are
ago that the transition to an article do not necessarily at
any
time before anything more is available in listed trading, the
electronic company backed by time coincide with those of the
done
for shareholders,
and so-called closed-end funds
"Chronicle " They are presented
Philips ("the GE of the Neth¬
their views were circulated which both provide the diver¬
as those of the author only.]
erlands") was made, and ac¬
sification
available
through
widely. To others the fact that
quisitions and expansion are
so much of the
company's ex¬ the mutual funds and also still in progress. Like other
Bache & Co. to Admit
pansion has been financed out offer a reverse situation in
electronic outfits, Consoli¬
of earnings, and so little out that many of the listed funds
so
Renyx, Field Names
re¬
quirement handily and it has
17
year
the
o
f
Samuel
L.
Ross
executive
committee since
1955.
Francis M. Shaffer has been ap¬
pointed general sales manager for
Renyx, Field & Co.; he had been a
regional manager since 1953.
Ross
kind
A.
Bair
have
been
and
Richard
named
El-
assistant
sales managers.
■
•
.
dated
New Partners
also
suffered
a
bit
sell at discounts against the
As of Jan. 31st Bache & Co., 36
premium necessary to pur¬ through the recession but
ings will continue to be de¬
Wall
Street,
New
York
City,
chase the mutuals. The nota¬ should have little trouble re¬
pressed unless there is an¬
members of the New York Stock
other shift in policy. And this ble exception is Lehman Corp.
bounding now that the econo¬ Exchange, will admit George W.
which has been
view was
of
debt, indicated that
made
earn¬
known
gen¬
erally. But the refusal of the
issue to give much ground is
holding more
times than not above its asset
my
is expanding. This
one
is
a
Meyer and Tony G. Ziluca, mem¬
ber
of the
New
York. Stock
Dean Witter & Co. to
Admit Partners
Dean Witter &
Co., members of
the New York Stock
Exchange, on
Feb. 1,
will admit William G. Budinger and H. Gerald Nordberg to
general
make
firm's
partnership.
Both
will
headquarters at the
Chicago office,
50 West
their
Adams Street.
Ann
Witter Gillette, Catherine
MlcMahan, Sydina A. Michels,
Moody and Meredith B.
Nordberg will be admitted to lim¬
ited partnership.
M.
Ellen
Stern &
Stern
Byck to Admit
&
Byck, 59 Broadway,
New York City, members of the
New
York
Stock
Exchange on
Ex¬
Jan. 29th
will admit Donald M.
non-dividend payer but marbecause of large
change, to general partners and Byck, Robert L. Stern and Maranother illustration of the re¬ unrealized profits in the port¬ ketwise all the events of the
Harold C. Price, Jr., and Joe D. jorie Byck Levy to limited part¬
luctance of investors gener¬ folio and because it is one of last few years have failed to
nership. Sidney E. Harris will
Price to limited partnership. Ed¬
hold limited partnership as trus¬
ally to lighten their holdings the better known.
make any impression since its ward B.
even
at
value in part
if
profit.
a
More
if
recent
Most
There
Conway, limited partner
if
of
the
for
funds have relatively simple
plenty of other capitalization, some of them
around
forefront at
a
the
will
to
take
the
moment
probably will stay there
month since that is when
dividend
next
meeting
along. Superior Oil
of California was also promi¬
nent on such lists although it
was
mostly of spectator inter¬
est since not too many laymen
care to or can dabble
impor¬
tantly with an issue tilting for
its
old
high of $2,000 per
come
share.
i-
if
if
With the industrial average,
and
of
some
its
conceded to be at
the
newcomers
to
this
searching
*
a
components
that
offer
to
a
buy,
of
as an offer of these securities for sale, or as an
offer to buy, any of these securities. The offer
only by means of the Prospectus.
circumstances is to he construed
or
as a
these
solicitation of
securities
is
an
made
401,900 Shakes
alone last year the re¬
price has offered an
average return of 3.6%. With
the payments from security
profits the yield moves above
6% which is relatively hand¬
some in view of the 3 ¥2 % re¬
Borman Food Stores, Inc.
cent
turn
on
Common Stock
(Par Value SI Per Share)
the industrial average.
•5*
V
g
Prick sl<>.75 pku shark
Low
yields aren't always a
sign of trouble and ACFWrigley Stores, which has
shown little market exhuber-
may be obtained in any State from
such of the underwriters, including the undersigned, as
legally offer these securities under the laws of such State.
Copies of the Prospectus
only
has been busily engaged
high level, in expanding. That kept its
ance,
❖
was
a
recession
dividend
casualty is
Shoe, the giant
of the field. But since retailers
turned cautious and lived off
their inventories last year,
it
for the entire
industry and International
had to shave its dividend 25 %
a
tee of two trusts dated Dec.
1958.
general partner.
may
was
*
International
was
a
come
years.
One
will become
no
This announcement under
the basis of the dividend pay¬
ments
from investment
in¬
in other cash payment moderate but
paths where plenty of obvi- the company lards it with
o u s 1 y
neglected candidates small stock payments which
still abound.
ran 4%
in the last couple of
and
approxi¬
closed-end
category.
over
Telephone's vacated One where leverage is a fac¬
mantle as the leading split tor is Tri-Continental Corp.,
hopeful. Eastman Kodak is in centered in the warrants. On
and
only
Split Hopefuls
were
candidates
the
high
poor one
Operations of this
Shields & Company
Lehman Brothers
Glore, Forgan & Co.
jor grocery chain
can be re¬
justice only for
a
couple of years since it has
only recently emerged out of
a
flock of independent com¬
panies. Last year alone it ac¬
quired a chain of nine stores
and opened 28 supermarkets
iiornblower & weeks
kidder, peabody & co.
its
own,
concentrating in
paine, webber, jackson & curtis
Incorporated
viewed in all
of
Goldman, Sachs & Co.
ma¬
Stone & Webster Securities Corporation
Baciie & Co.
F. Eberstadt & Co.
Lee IIigginson Corporation
January 21,1959.
Wiiite,Weld & Co. Dean Witter & Co.
Reynolds & Co., Inc.
Hayden, Stone & Co.
Siiearson, IIammill & Co.
31st,
The Commercial and Financial Chronicle
.
.
Thursday, January 22, 1959
.
(414)
18
Rising Bank Loans and Price inflation Forecast NASD District 12
By ARTHUR B.
J. P. Morgan
This Week—Bank Stocks
At the
stock analysts were not at
beginning of 1958 most bank
sanguine about the continued climb of bank earnings. We were
then in the recession period, and with such an economic state of
factors, of course,
The combination of
normally makes for lower operating earnings.
But 1958 has passed, and, while operating
earnings were lower
than in 1957 except in three or four, cases among the leading New
York City banks, the changes were of a quite negligible size,
excepting only Chemical Corn Exchange. The average shrinkage
in operating earnings in this group were only 1.3%.
The puzzlement is that, given the conditions that obtained
during early 1958, the banks did as well as they did do. But other
factors entered into the result. Working (or earning assets were
higher in the case of every one of the 13 banks, running from a
minimum of 2.2% gain over 1957, to a maximum of 14.1%, with an
average betterment of 9.3%
Such an improvement over 1957 was
a highly satisfactory one, for generally speaking, the banks' aver¬
age rate of return on loans held up well and ran from about 4.00%
to 4.67%; and some gains were made in the average rate of return
on government holdings which ranged around 2.25% to 2.75%.
An
exception was Irving which reported the high rate of 3.58% on its
governments; this bank for several years has been running a con¬
siderably higher rate of return on its governments.
Finally, with no exception, the large New York banks have
reported higher deposit volume for the 1958 year-end over a year
earlier, thus giving the banks more funds with which to work. And
it is reflected in the pact that the average increase in government
bond holdings in 1958 was the important figure of 21.8%.
The
deposit gain at the year-end was approximately 9.2% on average.
So, it is not as though the banks had no out when a recession
develops, for, as indicated this time, they can shift funds from
maturing loans and discounts into governments; and, while the
return on the latter is ordinarily lower than that on loans, they can
justify placing a larger proportion of their funds in governments.
A factor, too, that must not be lost to sight is that, come the
recession, the great bulk of loans continues on the banks books to
maturity or renewal, and at the better rates ruling during the
boom. Indeed, the 1958 volume of loan accommodation held up
remarkably well. Of the thirteen banks only four reported lower
loan totals than! as of the 1957 year-end; nine showed gains.
The movement of loans to business in this area has been some¬
what spotty, without a definite trend. But with the general busi¬
ness tempo tending to pick up, we can probably expect loan vol¬
are
much from the present totals.
to be some opinion around that in 1959 interest
not to depart
T^hfere
seems
slightly higher levels. 'This thought was
tend toward
will
rates
Bank's annual meeting of stock¬
holders on Jan. 13. At that time the Chairman was-"hopeful that
the bank's earnings for 1959 would -be somewhat better.?
*,
of- a; question whether bank stock
this juncture to the handsome securities
profits reported by some of them.- Not all of the annual reports
have been released as this is written, but a few figures will illus¬
trate.
Hanover Bank reported $9,211,000; J. P. Morgan & Co.,
$2,351,000; Guaranty, $3,774,000; First National City (consolidated),
$3,174,000; Chase Manhattan over $22,000,000; Chemical Corn Ex¬
change over $7,900,000; Bankers, $5,323,000.
Now let us look at the 1958 earnings results of these banks:
It
seems
to be somewhat
prices give full credit at
1957
1958
dend
$1.11
$
$1.32
t
$3.00
1956
1958
1957
1.956
Divi¬
—Securities Profits—
—Operating Earnings—
Bankers Trust.——-
$5.02
$5.64
$5.47--$0.80
Bank of New York1
17.40
19.15
17.22
$
10.00
J.
of
find
Alexander
outlook
view
admonition
dollar to
P.
H.
of
Davison
banking
against
and
allowing
will attract investment funds. The
H.
Chairman,
Keeping
one
of
the
economy.
pronounced
trend
and
into
continued
Then
the
downturn
gence
threatened bv any
appreciable f urthe r inflation,
however, require mention.
This
country's status as an exporter of
goods has already been hurt by
arrested
The
resur¬
inflated
brisk for
was
became
the
began.
recovery
a while, then
gradual. As 1958
more
gendered by the recession had not
been
completely set aside, but the
general'tone of business'senti¬
ment
positive, in contrast to'
which had prevailed at the
was
that
start of the year.
The
-
-
'
•
recession
of
impact
was
felt less by banking than by many
other lines. Money rates softened
during the early part of the year,
and business used less
these factors
offset to
of
banks
funds
for
invest¬
by an increase in de¬
posits, principally time deposits."
ment,
and
Banking results generally were
not
greatly affected by the re¬
cession.
the
In
present
1.68
2.40
phase, the course
ings will depend
2.40
the
Empire Trust4
First Natl. City5-C_'_
15.55
17.35
5.20
5.02
of
recovery
bank
earn¬
principally on
vigor with which
loan demand revives. Borrowing
has not- yet rebounded from the
speed and
4.70
5.21
5.04 —0.09
—0.68
Hanover''
3.40
3.75
3.52
0.10
—0.80
2.30
2.00
normal
Irving**
2.51
2.78
2.64 —0.49
—0.07
0.03
1.60
rates, which have risen rather
sharply for long-term credit, have
3.59
4.06
21.20
23.26
±
4.07
2.20
t
$
6.71
23.97 —1.65 —1.46
'
New York Trust—
5.49
5.94
U. S. Trust
5.46
5.74
:_r
6.26
5.51
—
w
—
—0.25
'
—0.28
—
—
—'
0.04
—0.36
10.00
*3.75
with
recession
much
seasonal
than
more
force.
Interest!
reacted to recovery less markedly
in the commercial banking range.
3.20
This
is
succeeds
W.
V^ce- Presi¬
dent, Harriman Ripley &
Co., Inc., New
York.
normal pattern of re¬
Assuming that recovery
continues
its
present
moderate
a
well
as
as
States of Con-
imports and exports.
resumption of inflation
in
any
considerable
degree
could
eventually,-.Tessen
world
confi¬
dence in the dollar. As a principal
banker to the trading nations of
York
1—Adjusted for 50%
210,000 in
l!>r»S.
stork dividend Sept., 1958. On 160,000 shares 1956 and
Per. share figures not comparable.
1950;
8—On
5,313,850 shares J950; on 0,310,590 in 1951 and
for Jan., 1958,
late January, 1959.
4—Adjusted
r—On 10,000,000 shares
011
4%
1950;
on
n—Adjusted
for January,
for January,
planned for February,
*—Includes
extra,
be
is
return
too
1958, stock dividend of 11-1/9%.
a
improvement
steady
"It
Co.
stock dividend, but not for 2%
should
volume, with upward
lending rates.
stock dividend in
12,000,000 in 1957 and 195S.
1958, 2%
1959.
there
pace,
but
1958.
dividend, but not for 4%
stock
G—Includes City Bank Farmers Trust
8—Adjusted
1951;
18,090,000 in 1957 and 1958.
13,000,000 shares
too
early
of the
to
boom.
gradual
in
loan
pressure
United States
must maintain
the .soundness of
its currency. The outflow of gold
from the Treasury's stock during
past
sign
of
is not in
lessened esteem
year
.
Our
dollar.
extension
of
itself a
for the
foreign
loans, our foreign aid, and our
military
expenditures
abroad
helped to ..make our balance of.
payments adverse, and we lost
gold in the ordinary course of
business.
the
But
world's
dollar
the
.Elected
But
it is not
Granbery,
New York,.
George
the
£—Not reported..
residents, and discriminate against
imports of American goods. The
the other hand, is truly
convertible, by residents
residents, for capital or
account.
The
so.
It
of
to
be
America's
and James R.
REPORT
13 N. Y. CITY
NATIONAL AND GRINDLAYS
stubborn
after
Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
tial;
London Branches:
new
13 ST. JAMES'S SQUARE. S.W.I
Laird, Bissell & Meeds
Members New York Stock Exchange
Members American
120
Stock Exchange
BROADWAY. NEW YORK 5, N. Y.
Telephone: BArclay 7-8500
Bell
Teletype—NY 1-1248-49
Trading Dept.)
Specialists in Bank Stocks
(L. A. Gibbs. Manager
to
the Government in
;
was
Action
essen¬
but
inflation.
ment
and
short-term
indla, pakistan, ceylon, burma, kenya,
tanganyika, zanzibar, uganda,
northern and southern rhodesia.
done.
the downturn
spending by
:
aden, somaliland protectorate,
is
tary stability at present are deficit
aden, kenya,
uganda, zanzibar a somaliland protectorat1
Branches in
work
"Two principal threats to mone¬
54 PARLIAMENT STREET, S.W.I
Bankers
a
inflationary residue long
the choice-of "countermeasures, regrettably,
implanted
in the recovery seeds of potential
Head Office:
Available
gov¬
spending, which leaves
its
against
26 BISHOPSGATE, LONDON, E.C.2
Bulletin
916
CONDITION
"V.;',V%
OF
Company
the
published
by
the
the
the
in
Herrick & Marshall,
New
York
York.
New
close of business
York,
New
December
on
accordance
with
30
City,
York
Stock
Ex¬
at
31, 1958.
made
call
a
Superintendent of Banks pursuant
of the Banking Law of
provisions
State
of
Cash,'
1
banks
with
trust
and
including
!•••
!
other
bal¬
in
items
of; collection——:
process
,
compa¬
reserve
cash
and
L
ASSETS
balances
nies,
York.
New
■
$6,024,864.64
United States Government ob¬
ligations.
direct
and
guar¬
anteed
22,358,939.62
Obligations
;bf .-States,
and
...
political subdivisions
Other
bonds,
•
"
discounts
"482,326.74
(includ¬
overdrafts)-
ing $1,674.40
premises
Banking
furniture
none;
de-
—
and
Loans
1,671,701.31
and
notes,
bentures
13,346,934.86
owned,
fix¬
and
tures
115,645.26
Real estate owned other than
banking premises.———
Other
assets
168,450.89
d
-
210,633.55
TOTAL ASSETS
$44,379,496.87
LIABILITIES
Demand
.
,
deposits of individu-
-
als, partnerships, and cor¬
porations
1
;.
;
$23,004,607.19
Time deposits of individuals,
partnerships,
and corpora¬
tions
,
_
Deposits
United
of
4,759,047.80
States
Government
260,937.83
^
Deposits of States and politi¬
subdivisions
cal
Deposits
11,207,930.45
banks
of
companies
and
trust
625,297.47
——
Other
deposits-(certified and
officers' checks, etc.>_
DEPOSITS
—
—
liabilities
636,850.28
$40,494,671.02
$233,753.66
_
.
LIABILITIES
TOTAL
will bring with it change
and
associate
members
an¬
to guard against American Stock Exchange,
forces. The method nounce the opening of a new de¬
chiefly that of increased
ernment
BANK LIMITED
BANK STOCKS
OF
Broadway,
of, 50
,
New
with
now
Co.,
Underwriters Trust
TOTAL
Mutual Fund Dept.
Street,
are
Service
Broadway.
Other
members
Stone
Investment
Butler, Herrick Opens
Broad
12.
No.
Two With Inv. Service
wel¬
is essential to the
fare of the free, world."
currency
Butler,
-
Secretary
is
Committee
DENVER, Colo.—Van H. Hanell
current
continue
must
soundness
non¬
or
again
need
inflationary
was
Comparison
,::'u
Rieber
E.
of District
$40,728,424.68
CAPITAL ACCOUNTS
,
Capital t
—
—_
Surplus fund
Undivided
profits
$1,000,000.00
1.000,000.00
1,651,072.19
——
CAPITAL
TOTAL
ACCOUNTS
$3,651,072.19
—
of the economy
stock dividend
chosen for reversing the recession
Annual
Alexisson,
partner,
Marache & Co., New
York, and Edward H. Lard, III, of
The
First
Boston
Corporation,
In
of value.
measure
eign countries still restrict capital
exports and remittances by their
on
were
A.
remains
of welcome steps toward
limited convertibility, many for¬
dollar,
Purkiss
C.
Albert
Vice-Chairmen
as
Gustave
spite
a
early to note that resurgence
a
New-
Jersey.
the free world, the
on
proclaim
aild
of
part
ances,
the
New
necticut,
to
both
"A
com-
rises the
p
hurt
be
its world
role, needs a vigorous
foreign trade, with a large volume
of
The
District
allowed to
nation's
domestic
Our
prosperity,
,
ScotUCluett,
sponse.
2—On
.
is
economic
con¬
a
by reductions in
requirements, which freed
reserve
more
were
extent
siderable
credit; but
spiral
the
resume.
will
It
costs.
if
more
ended, the direction of the econ¬
omy
appeared to be moderately
upward. The sense of caution en¬
1.24
J. P. Morgan & Co.
w."
of
He
injustices
by a depreciated dollar
no
detailing. Two special
need
this
spring.
was
and
consequences
started
year
with recession deepening, and
—0.69
Manufacturers
the
Dealers.
worked
in
movement
The
—1.12
.
Committee
District
Sound
Dollar
cruelties
"The
P.
Davison, "the back¬
for business in 1958 was
ground
for
matu¬
rities, and encouraged to do more.
the
to
praised
be
what it has done to extend
depreciate.
According
should
Treasury
an
our
Henry C. Alexander and the Pres¬
ident,
moderate
amounts and at interest rates that
C.
Henry
—0.58
Guaranty
bond
the
in
bonds
long-term!;
4.25
3.00
disturbing
as
market, when the need has been
for much more frequent issues of
4.25 —0.29
3.00
action criti¬
mild
such
even
cized
4.24
*4.00
The
made
some
progress
during the past year in lengthen¬
ing the maturity of a small part
of the public debt. It is ironic to
3.86
0.63
restraint.
Treasury
3.78
0.27
debt, with its recurrent need
refunding tends to frustrate
of
3.87
7.37
of
sociation
under strain... The best hope
of
achieving balance seems to lie in
attempts at credit
Exch.2
0.84
& Co., Inc.,
elected Chairman
was
of
National As-
eral
Corn
—0.11
12
curtailing, non-security spending.
"The weight of short-term Fed¬
Manhattan2-
—1.73
No.
encouraging.)
Co., Inc., contains an
Chem.
5.02 —0.51
1959
programs and in foreign economic
aid'—will keep the .national budget
Morgan
P.
Chase
16.85
York;
for
Securities
voiced at the First National City
!
Purkiss, senior Vice-
Walston
President,
New
the,
&
report to
annual
1959
The
stockholders
.
ume
C.
Albert
.
,
decreased
lower interest rates and
prospect was for
the
affairs
volume of commercial loans.
stockholders
resulting upward pressure on
and
WALLACE
all
Elects A. C. Purkiss
told to expect better loan volume
lending rates if present
recovery pace continues.
They are also apprised as to why
the dollar must be kept sound and as to the principal threats
to monetary stability. The Bank's officers recommend further
lengthening of Federal debt and curtailment of non-security
governmental spending.
;
*
Bank and Insurance Stocks
|
funds.
mutual
to
Col.
the
sale
Robert
of
easy
debt.
Neither
recently
jointed
the
who
old
61-year
ACCOUNTS—
bank's
with
stock
Assets
$44,379,496.87
capital consists of
total
pledged
common
value of $1,000,000.00.
par
Investment
the
new
is
Manager
of
Loans
after
department.
Prior to
&
firm,
and
for
above
are
$12,285,646.11
purposes
shown
as
deduction
of
joining Butler, Herrick
assigned to
or
liabilities
secure
other
of
reserves
159,893.68
—
Securities
as
shown
above are
after deduction of reserves
Col.
Marshall,
Anderson
associated with Washington
was
Plan¬
157.001.58
of
I,
KENNETH
W.
LANDFARE.
Secretary
above-named institution, hereby cer¬
tify that the above statement is true to the
of the
ning
Corp.
of New York,
as
di¬
maintains branch offices in River-
remedies. The
needs of national se¬
curity—reflected both in military
CAPITAL
+This
AND
MEMORANDA
Anderson, U. S. A., (retired)
the Federal govern¬ rector of military sales.
huge overhang of
Butler, Herrick & Marshall also
Federal
LIABILITIES
B.
the
will yield to
overriding
devoted
partment
TOTAL
head
and
Westhampton
Long Island,
Beach,
best
of
my
knowledge and
KENNETH
W.
'
-
.
.
'
KORELL]
SUMNER
B.
,
LANDFARE
'
CHRISTIAN
JOSEPH
belief.
W.
Correct—Attest:
FORD |
V. TAMNEY
Directors
Volume
Number
189
5814
.
The Commercial and Financial Chronicle
.
.
(415)
19
the cold shoulder at the State De¬
Our
Reporter
By JOHN T. CHIPPENDALE, JR.
The Treasury
in its
new money
both issues, the 3V4S of May
being well oversubscribed.
sidered to have been
The return
both securities
on
was
institutions
and
inflation.
to
,
-'7 ,7
-It- is
of
not
Roosevelt
the
record
tried
ever
budget
three months he
had
he
you:, can
bet
in
was
Mr.
him, secondarily the AF of L. But,
course, he was giving money
first
Eisenhower
away.
office, but
-
boots
The
first
very
'•
Treasury
security
was
priced
to
the
meet
competitive
market conditions.
In addition, the maturity of the
favorable, since the 21 years it has to
ment bond is
new
go
-
Govern¬
hand, the 1980 maturity date is still long enough to meet the needs
•of those institutional buyers that are not attracted to medium-term
77;;'
The fact also that it is
adverse feature.
•
7
1
;77.7-
•
■
New Note Sold
;7':
\
by Commercial Banks
his
7;
budget
that
•
>
is
cause
it
But
a
r
creases
some
It
of
r
More Longer
In
Treasury Issues Expected
;
-
safety
.
spite of the apparent attractiveness of the
4%
razor
of
these
the
issue
price of 99
because
it
new
seems
item
war
manufacturers in the
_
'
.
"7
.
''7
/
This most likely means the use of issues by the Treasury that-will
•
country thoroughly organized.
get
the
entire
CIO
Fallon,
Dougherty
Vice-Presi¬
H. Meyer,
(Special to The Financial Chronicle)
Osborne
formed
&
with
HILLS, Calif.—V. K.
Sons, Inc. has been
offices at 231 South
Beverly Drive to
curities
engage
business.
the
on
Federal debt is $8,-
the
in
the
did
not
second
budget.
wreck
us
If
Now Howard Saks Co.
largest
another
with
The
mis¬
investment
Howard J.
bombs the
New
York
-
business
.
use
the
funds
Governments for their
*;
which
own
have
been'invested
in
neaf-tefm
behind
conducted under the firm
Multiple Offering Seen in February
V
'-
in order to take
come
R.
Zimmerman
&
;
Stock Exchange.
7lis advertisement appears only as a matter of record.
NEW ISSUE
'January 22,1959
153,840 Shares
.
v
Home Owners Life Insurance
$1.00 Par Value
Holders of the Company's
outstanding Common Stock
right to subscribe at $6.00
Common Stock at the rate of
Godfrey Putnam Parkerson
Godfrey Putnam Parkerson, 73,
of South
Orange, N. J., Executive
Vice-President
and
director
a
of
Calvin Bullock, Ltd., passed away
Jan. 16 at the home of his daughter,
Mrs. Carrol Kennedy.
Mr.
lock
Parkerson
ing
figures
vestment
in
in
one
the
Denver
developed
time.
He
investment
was
in
of the lead¬
American
company
which
in¬
movement
during his life¬
an
officer
companies
—
Fund, Ltd.; Canadian Fund,"Inc.'r
Canadian Investment"Funds, Ltd.;
Carriers & General Corporation;
Dividend Shares, Inc., and Nation¬
wide Securities Company—at the
time
of
his
death.
of
six
Bullock
record at the close of business
will expire at 4:00
per
one
on
are
l>eing offered
share, for the altove additional shares of
share for each two shares held of
new
January 21, 1959. Subscription Warrants
P.M., Eastern Standard Time,
The Underwriters have
any
on
February 5, 1959.
agreed, subject to certain conditions, to purchase
unsubscribed Stock and, prior to and after the expiration of the sub¬
scription offer,
Reynolds Appoints
r
joined the Bul¬
organization
1916 and became
Company
Common Stock
the
set forth in the
may
offer shares of Common Stock at prices and
Prospectus.
•
■
on
terms
*
CARMEL,
Calif. — Stanley E.
Ewig has been appointed Acting
Manager of the local office of
Reynolds & Co., Jorgenson Build¬
ing.
W.
C.
Aldous,
formerly
Branch
Manager,
with the firm
resentative.
as
a
will continue
registered rep¬
.
H. Hentz & Co.
John C.
has
be¬
Co., 29 Broadway, New York
City, members of the New York
'
Mikoyan said this under stress,
He had just been given
however.
•
about $6,000,900,000 of the February maturities.
The balance ;of
"approximately $9,000,000,000; which are held outside of the Federal ■
Reserve System, will most likely have an option to take not only
short-terms but also medium-term obligations. It is believed that
\
the Treasury will attempt to sell issues that will help "to extend ~
the maturity of the Government debt and at the same time put in
operation a debt management policy which is in keeping with the
efforts of the money authorities to slow down the forces of infla¬
tion:
"
"* 7
r
' ' '
'
/ "
1
associated with Schweickart
of the needs of the Central Banks, who own
care
of
With Schweickart Co.
Solly
.
-In the coming February refunding operation, it is* evident that 7
the Treasury will offer a short-term issue, probably a certificate
name
Howard J. Saks Company.
business needs and this will eliminate
7 a large-buyer of short-term Treasury issues which have been sold
to finance the deficit. .
.7. - -.:••• •
\
;':7 * 7 *
1
of
Saks, 100 William St.,
City, is now being
In its recent
to
se¬
are
War
money
have
a
debt of
-tap the
.
in
Officers
When
£.
resources of the ultimate investor and in this way the
supply will not be added to.
1
new money raising operations, the Treasury has 7
been able to do this through the use of short-term issues, which
have been sold in the main to corporations and this has meant-*7
only a shift in deposits and not the creation of new ones. However,
with the improvement in business, many of these concerns will
L.
cor¬
„
.
He could call in the labor leaders
and
new
L.
Thomas E.
BEVERLY
falling
five months.
.
<
-
World
national
siles and
not hard to tell
was
Se¬
V. K. Osborne Sons Opens
$283,000,-
the
it
,
!''T"'7" 7
a
000,000,000,
,
..'•'•'\:'"-7 -''
and
the
E.
the
James
a
them.
be doubled.
into
went
terest
,
-seems as though an effort will be made by the monetary 7
authorities in its operations in the money markets, and the Treas- i
ury in its debt management, to retard if not stop the forces of
I"
inflation, which 'is the real menace to the American economy. 1
missiles
of
Ryan,
dents;
and
Herbert
Secretary-Treasurer. *
at this time.
But the debt of
James
to
of
James
are
President;
and
succeed
Officers
poration
a
war
to
business
Vivian
K.
Osborne,
President;
II we
Robert M. Kolodkin, and Harvey
only $22,Deutschman.
Mr.
Osborne
was
000,000,000. - Look where it has
formerly with Cantor, Fitzgerald
gone to since in the brief period
& Co., Inc.
of 17 or so years. The annual in-,
as
7; It
with
they had better get on the band
wagon. Roosevelt did this. He had
so
v
flotation.
Fallon.
ensuing debt
would certainly destroy us.
7
Yet the Russian deputy minister
said just before leaving that if
we were to attempt to gain access
to Berlin by force it would be
met by force.
That means, if he
sticks to his guns, that there cer¬
tainly will be a conflict in about
country
_
went below
flying
had
big
bond,
.whom he meant,
though 7
Eisenhower should send out all
the Treasury's new money/and refunding operations will be tied
in with the policy of the Federal Reserve Board, and this
probably " of his henchmen to the various
calls for the offering of more bonds at higher yields, even though ( racial groups and demand that if
<
they may not be of the jdohg-term variety such as this recent .; they intended to enjoy his favor
it
-
we
•
three
Boulevard
curities
think of it in terms
000,000 would
,
or
ways
bombs.
a hard time eking out an
existence;
Roosevelt
did
these
note, which was used in the new money raising
He
once
denounced 7a
operation of the Treasury, was well received even though it went 7 things.
safety razor millionaire as being
down from the issue price of 99%. This decline was due princi¬
so
unwilling to pay taxes to his
pally to selling by the commercial banks, who could afford to take
country that he had taken up
a small loss of
a few thirty-seconds,
because the deposits which
residence in Canada.^. There were
will stay with them for about three weeks will offset this.
Only, two
who
catastrophe in
than one if we were
Most people
having
."
be
to have another
7..
He should bring old ladies on
*! the radio to tell how they were
7
grow
ANGELES, Calif .—Federal
Corporation has been
formed with offices at 7805 Sunset
and the need of
to
would
more
of the
r
LOS
Securities
population in¬
our
come
government
3.25%
The
to
—
balance—it be¬
adopt
Roosevelt tactics, v.v
editors
are
»
(Special to The Financial Chronicle)
openly sneering at the Eisen¬
They speak of
and
a
euphonious term, beican't be balanced, only
him to
hooves
Form Federal Sees,
of Roose¬
leader at all you have
no
budget; editors and Con¬
gressional
critics.
Eisenhower
doesn't seem to realize, they say,
that this country has unlimited
possibilities of growth if he will
just remove the restraining hand.
necessarily in
he goes into
now
speak
you
great leader and Eisen¬
a
as
hower
as
balancing
brought closer to
£
an
1 ■
which is not
his disfavor.
•
.-'7'7"
not callable before maturity is not
"'777
flair,
to the due
when
as
Already there
are
of this
none
partnership.
his neck
got to figure the different atmos¬
against
Mr. Eisenhower has
on
Feb. 1st will admit A. Douglass
and H. Lawrence Parker to
Hall
pheres in which they operated.
.
;
Morgan Stanley & Co., 2 Wall
Street, New York City, members
Exchange,
cutting farm appropriations.
hower
them; they would
have been pilloried.
- <■
;
r
money
date is shorter than those of many corporate and tax-free issues
which have been coming into the market for sale.
On the other
issues.
strikes
•
rate-or-to
increase in gasb-
on
velt
•
between the yield on the new Government bond
and recently floated corporate obligations indicates that the new
postal
an
leaders, knocked their
together. Eisenhower, in¬
! ' So
who
was available in
these new issues was
7 flat ion
to
The long-term 4% bond due Feb. 15, 1980
Carlisle Bargeron
7 squeeze the
is consioered to be a [desirable obligation for those who have
common man
savings type of funds for investment. It is evident that the 4.07%
to death..He would have had those
yield which was available in the new bond, gives it a very favorable
-7 millions/of followers of his threat¬
position in the whole range of funded issues, whether they, be
ening the lives of these greedy
corporate or tax-exempt securities. '7
interests-' there would have been
7'.7—
The spread
On this
to
farm
for
the generous side.
1
class
stead, will have them
money
It
ar¬
"no."
7 Roosevelt could have called in
for since the return that
on
was
the
greedy in-
derests'
answer
to
of the New York Stock
heads
7:77v; £ have conjured
Favorably Priced
the
line taxes.
raising operation of the Treasury went over
7 were ready to
well, and this was what the financial district .was looking "7 bring, on innew
well.
Admit Hall & Parker
the
.
up
Mikoyan's
so
came
Morgan Stanley to
bring about
.
7
trying
out
stop this.
He won't be able to
muster all of the Republican votes
behind him. It is a two to one bet
*
.
.
is
turn
range for increased trade.
balance < of
the
notes was about tin, line with ,
thatjie would
7 h a we dramaAs against this, thh subscribers >
tized it' in a*
to the 4% bonds -were given -varying allotments, with savings
type I
way to make
investors getting 70%, commercial banks 35% and all others 15%.
Subscriptions for $25,000 were made 100%. The treatment given '7 it catch on
with, the pubthe buyers of the 4% bonds was considered to have been abit
7 lie. He would
on the full side.,
1
;
7
7
The 47% -allotment on the 3 t4%
New Bond
didn't
apparent that he
tl^at he will not be able to raise,
tried
i't''': r:your;
that
to
for
except
what the money market expected.
-
visit
was
a-hedge against
as
'
77
At the last moment
,
By CARLISLE BARGERON
side, which would make them
purchase equities
V7>"'V 7'7
owner.
con¬
attractive to those that have investment funds to
put to work.
However, at the present time there is not too much of an appetite
for fixed income bearing issues, whether they be Governments or
non-Federal obligations, because of the desire on the
part of indi¬
viduals
was
also chafing under the
sharp questioning he had on Sun¬
day night's Meet the Press, by
Larry S p i v a k, the program's
of the News
out very
well,
15, 1980,
He
Washington
Ahead
came
15, 1960 and the 4s of Feb.
the ample
on
operations
partment in the matter of credits.
From
Governments
on
Legg & Company
-
1
\
The Commercial and Financial Chronicle
20
.
Thursday, January 22, 1959
;
.
(416)
$15 Million Issue of
Public
Kingdom of Denmark
Bonds to Be Marketed
Will
By OWEN ELY
Alabama Gas
by Kuhn,
underwritten
be
Loeb; Smith, Barney; Harriman
Ripley-Lazard Freres Investment
Banking group.
The
Jan.
16
Kingdom of Denmark on
filed with the Securities
and Exchange
Commission
statement
istration
reg¬
a
to a
relating
proposed public offering of $15,-
000,000 fifteen-year external loan
bonds about Feb. 5 by an under¬
writing group to be headed by
Kuhn, Loeb & Co., Smith, Barney
& Co., Harriman Ripley & Co., In¬
corporated and Lazard Freres &
The bonds will be direct, un¬
Co.
conditional and general obligations
of the
terest
Principal and in¬
will be payable in New York
Kingdom.
City in United States currency.
The bonds will be the only out¬
standing publicly-held dollar bond
issue of the Kingdom of Denmark
first
its
and
issue since
bond
dollar
public
1928.
Concurrently with the public of¬
fering of bonds the International
for Reconstruction
Bank
De¬
and
velopment (World Bank) is ex¬
pected to agree to lend the equiva¬
lent of $20,000,000 to the Kingdom
of Denmark.
to be offered
The bonds
the
to
public will be noncallable for ten
years except through operation of
the sinking fund. The sinking fund
will commence in 1963 and will be
to retire 100% of the
issue by maturity.
Net proceeds of the sale of the
public bond issue will be added in
the first instance to
Denmark's
Alabama Gas Corp. serves gas
applied to the acquisition of capi¬
equipment required for the de¬
velopment of the Danish economy.
tal
loan
Proceeds of the World Bank
of the
will be used to finance part
cost of electric power
carried
ing
projects be¬
Denmark by
in
out
four public
two municipalities and
utility enterprises.
Form Lisco
(Special to The Financial Chronicle)
tion has been formed with offices
Michigan Avenue to
business.
Griffin,
President; Robert P. Branch, VicePresident and Treasurer; Maurice
F. Brennan, Secretary..'
engage
in
Officers
a
are
securities
Virgil
E.
Form Evergreen Sees.
offices
Northeast
4314
at
96th Avenue to engage
ties business.
Officers
in
a
are
territory include
iron, chemicals, cement, ceramics, cotton and textiles,
Important industries in the
Selma and Anniston.
steel
and
livestock
raising, etc.
are
65% residential (including
expected to benefit by the increase in
Industrial revenues have doubled in the
past decade, while residential and commercial (with the benefit
of space-heating) nearly tripled.
Industrial load is also
manufacturing activity.
growth the company will need addi¬
To meet this continued
secu-
Milton
Rosenthal, President; Milton
Weinberg,
Vice - President;
and
Phillip Schwary, Secretary-Treas¬
urer.
worth¬
Thus far it has not been able to develop any
tional gas.
facilities are being in¬
shaving. Last June the company and its
supplier, Southern Natural Gas, reached an agreement to increase
gas supply to 326 billion cf daily by November, 1959, compared
with the previous figure of about 302 billion cf; and it wa£l also
hoped that a further increase to 371 billion cf could be obtained
but
new propane gas
stalled to help with peak
by 1960.
Sept. 30, 1958, average selling prices
residential 9.10, commercial 5.60 and
average of 5.70. Average cost was 2.70 per
In the fiscal year ended
were
as
follows per therm:
industrial 2.70, with an
therm, or about 280 per mcf.
Gas was increased by about $2.8 million,
per annum, or 21%., In anticipation of this increased cost the
Alabama Public Service Commission authorized the company to
of gas to Alabama
company
asked for
an
rate
to file new
schedules and
sufficient to
ordered the
the company in June
over-all increase of about $4.2 million.
In September
the proposed rates and reduced the
amount of increased revenue by about $1.8 million—the resulting
increase being about $665,000 less than the company would have
received under the rate surcharge originally allowed in April.
Commission
the
rejected
the Commission's
order with the Circuit Court. On Oct. 13 the Court granted a writ
of supersedeas authorizing the company to place in effect the rates
filed by it on June 12. The difference is being collected under
bond, subject to possible refund.
The
promptly filed
company
an
appeal from
company's appeal to the Circuit Court is based on a re¬
quested return of 6.5% on a rate base of about $56 million, com¬
pared with a return of less than 6% (after allowing for certain
accounting adjustments) allowed by the Commission on a rate
that
ads
record in the past decade has, been as follows:
Conimon Stock Record-
Weather
Ended
Revenue
% of
Earn¬
Sept. SO
stocks
I
1
the
1
area we
serve
so
offers
much
'
fcl
CHEST
(Mills.)
"■Normal
ings
are
/growing i '
;
;//. WffT
|;|
1
1
the
opportunity
to industry.
up
,
Price
Divi¬
"
!
dends
Range
a
ity,
your
tell
on
the services of
competent agency
a
to
92
0.90
84
—
indicates
1.24
some
sell in it.
ports without obligation.
an
ad WITH
If such
COUPON FOR RE¬
PLY is well written and it is car¬
average
of
in
from all
in
—
1.
—
— —
'•mmtmmmm
a
on
paper, preferably on
Sunday, and possibly followed
Tuesday
or
Thursday, you
should
see
surprise
some
results
that may
you.
of
replies
hundreds
the nation when this
over
type of advertisement was used to
offer a report on a certain natural
gas pipeline which is soon to carry
to the state of Florida.
gas
Andrews Posner Partner
John
Pflungfelder will
partnership in An¬
drews, Posner & Rothschild, 52
Wall
Street,
New
York
City,
George
be admitted to
the New York
members of
Exchange
Box
POWER
899, Dept. K
City 10, Utah
colder-than-normal
Filor, Bullard to Admit
change
on
Jan.
Serving in
mmM
-
Utah-Idaho
Colorado-Wyoming
will
29th
admit
Harry J. Southwell, Jr., and John
J. Southwell to limited partner¬
ship in the firm.
Laurence Marks
Laurence
Wall
M.
Street,
Partner
Marks
New
-
& Co., 48
York
City,
members of the New York Stock
Exchange,
Elizabeth
ited
on Feb. 1st will admit
Ayer Newman, to lim¬
partnership.
Hecht Partner
Julius
come
a
F.
Mercandino
has
be¬
Wall
partner in Hecht & Co., 14
Street,
New
York
City,
Exchange.
Stock
.
As
usually follows such adver¬
tising, you will receive a certain
number
Schneider, Bernet Branch
of replies from curiosity
seekers, students interested in fi¬
quarter of the new fiscal year (3 months ended Dec. 31) are re¬
ported at only 30 cents vs. 70 cents in the like period of 1957,
apparently due to warm weather in the early part of the heating
season.
(Since that date, however, colder weather has probably
and people who are not
qualified prospects. But the re¬
sults from the advertising referred
Bernet
to, which has just been concluded
by us, have already produced some
management
prevailed, though perhaps not in excess of the earlier year's.)
■fTRTn
Stock
Jan. 29th
on
Probably about 250 of the $2.56 earned in the fiscal year ended
was due to record cold weather. Earnings for the first
Soil Lake
na¬
dailies
members of the New York
Quality of Leads
September
UTAH
an
4
temperature.
Write for FREE COPY
of the
one
a
pro¬
Such
financial
foremost
town
0.60
amount
advertisement
tion's
could
response.
the financial page of your
on
0.60
0.72
well planned adver¬
public how long you
serving investors in
your area, tell them you believe
you
know something about the
stocks of the leading, basic indus¬
tries in your own backyard, and
pick out three to five of them and
offer up-to-the-minute factual re¬
home
0.80
market
been
ried
1.42
bare
your
38V2-27
0.97
a
tisement that has
29V2-17
95
large
a
bers of the New York Stock Ex¬
1.28
16.79
current
not
or
Prepare
0.92
I8V2-I31/2
10i/2-10i/2
duce
1965.
1.79
-
less dynamic location)
ings that may develop in 1962 and
2.02
0.80
(even if your market is in
area
Filor,
Bullard
&
Smyth,
26
Broadway, New York City, mem¬
98
0.80
the
prices are realistic when com¬
pared with anticipations of earn¬
96
1.33
than
of
whether
21.86
degree-days
better copy writers to work
this idea, and if possible obtain
your
your
past accomplishment
which, alone, are not unimpres¬
sive.
Get behind the figures if
you can, and obtain management's
projections and plans for the fu¬
ture
and
sell
yourself first on
figures
24.16
1.32
company,
more
381/2-331/2
89
gas
which
1.39
97
natural
chain,
bank, and
descriptive
2.40
on
ex¬
However, we
you put one of
results.
would suggest that
ceptional
brought
leading
offer factual reports
of
these
companies
food
your
103
19.90
and
campaign around them. Ad¬
growing electric util¬
27.81
18.46
serve.
of this today
vertise your
-231/2
'■Based
at this
portant local industries and make
-24V2
—
they
Select certain of your most im¬
35
14.15
invest¬
as
about them.
34 '
12.00
extent
People are
they arcbuying a piece of the future when
they invest in these companies
and thev are hungry to learn more
1.60
10.90
income
same
they
area
aware
$1.60
1950
the
which produced such
column
utility companies, banks,
I believe the public interest in
chains, insurance companies, capital appreciation is so great
gas companies, and such today that an advertisement offer¬
basic enterprises must grow with
ing a growth utility in a growing
2.18
1949
over
natural
$2.56
1948
a
reasonable
electric
79
1951
that have
STOCKS
help you with a good layout,
plenty of white space, and an ap¬
pealing type-style.
The ad size
If You Live In a Growing Area
used was not too large; we used
There
are
some
exceptional three columns by about six inches.
growth areas in this country to¬ The
opportunity for
increasing
day, such as California, Florida, your clientele is available today
Arizona, Long Island, N. Y., the and your salesmen should be able
Delaware River area of Pennsyl¬ to develop some very satisfactory
vania, and many parts of the mid¬ business from the leads you will
dle
west, south, and the great receive if your advertisement has
Northwest.
In
fact
the
whole some "Sell" in it, and the growth
United States is growing and the stocks you select_,are
attractive
population figures tell the story. and well known in your area.
ft
X
Where there is growth there are/
116
..
in
in capital appreciation
27.18
1952'
offer
time to
better
no
time.
$32.49
1953
brought
fixed
in
to
1956
\ TREASURE 1 - I
i:
1959
for
ments
1954
•'
is
SPECIFIC
three
replies. This is the time to
offer growth stocks to your in¬
vesting public. People are not in¬
1955
New book
for
100
1958
explains why
There
replies, whereas
Unfortunately we cannot send
with coupon copies of the advertisement that
attached, that offered five growth we have discussed in this week's
1957
AREA RESOURCES BOOK
the
similar size ad, also
have
Operating
and
produced
a
Tell
$47.5 million. Both rate bases gave weight to fair value,
original cost approximated $40 million. Court hearings
scheduled to begin Feb. 9.
The earnings
prepared by
the facts speak
were
opportunity for growth
themselves. One ad offered a list over the longer term (especially
of tax exempt bonds and, although when they are well known local
it was the same size ad, and it companies)
than during such a
appeared in the same paper, used period of widespread public inter¬
est in common stocks as we are
the identical type-style and I be¬
lieve was concisely written, it only having now.
writer
since net
Years
This week's column others telephoned for the reports.
is based upon a test of newspaper
base of
are
Some people
substantial accounts.
types of securities to obtain even took the trouble to come into
the maximum response and the the writer's office with the adver¬
in
their
most qualified leads for your sales tisement
hand;
many
food
Capitalization as of Sept. 30, 1958 was 56% long-term debt,
4% preferred stock, and 40% common stobk.
Construction ex¬
penditures in the last fiscal year were $5.2 million and are esti¬
mated at $5.0 million for the current year. The company has an
$8 million revolving bank credit available up to Oct. 15, 1960, of
which about one-quarter had been used up to October. It is cur¬
rently selling privately $2 million worth of 6% preferred stock,
proceeds to be used to reimburse the redemption cost of $1,448,000
$3.50 preferred stock.
Southern Natural Gas revised its rates last April so that the
cost
time to advertise cer¬
a
tain
terested
I
heating season.
while storage space,
There is
organization.
house-heating), 13%
commercial, 20% industrial, and 2% miscellaneous. About a year
ago the company, with the help of outside specialists, made a com¬
plete study of its merchandising and sales promotion department,
which was reorganized as a result.* The Sales Supervisory force
was expanded and a new section was established for the promotion
and sale of year-round gas-fired air-conditioning units. (ArklaServel, manufactured by Arkansas-Louisiana Gas.) Within a short
time the department sold 81 air-conditioning systems at an average
price of about $2,000, even replacing electric heat pumps in some
cases.
With additional types of gas appliances becoming available,
the company thinks that consumer acceptance will be accelerated.
Gas-fired air-conditioning is one of the most desirable loads in
that, without additional investment by the company in distribution
facilities, such installations will actually use more gas for cooling
in off-peak summer months than they will use for heat during the
Revenues
JOHN DUTTON
Advertising Suggestions
total
The
PORTLAND, Oreg.—Evergreen
Securities, Inc. has been formed
with
Corporation
to 49 municipalities in Alabama,
place a temporary surcharge on its existing rates,
offset the increase. However, the Commission also
Corp.
CHICAGO, 111.—Lisco Corpora¬
at 104 South
By
population in the area being about 1,000,000. Principal
cities served are Birmingham, Montgomery, Gadsden, Tuscaloosa,
the
designed
foreign exchange reserves. It is
intended that the proceeds will be
Securities Salesman's Corner
Utility Securities
The
has been selling on the Stock Exchange recently
(range in 1958-9, 34y2-24V2). It will be noted that
(differing from most other gas stocks) Alabama Gas is still selling
slightly below the 1957 high and well below the highs of 1955-6.
around
stock
34JJ>
Possibly in earlier years the proxy fight may have affected the
nance,
EL
DORADO, Ark.—Schneider,
&
Hickman,
Inc.
has
opened
South
a
branch
office
Washington,
Matheney.
.
of
at
108
under
James
the
W.
.
price of the stock; the management won this fight and it is under¬
that opponents have disposed of their holdings.
The fight
the issue of selling the company's assets to municipalities.
The stock is selling at about 16 times recent earnings, and the
current $1.60 dividend rate yields about 4.6%.
stood
was over
Volume 189
Number 5814
.
.
The Commercial and Financial Chronicle
.
C4lp)
W.
R.
Grace
elected
Mr.
News About Banks
on' the
NEW
OFFICERS, ETC.
with
Bankers
and
REVISED
in
CAPITALIZATIONS
the
The First National City Bank of
Division
announced
Office, 159-17
Queens, N. Y.
reassign¬
its
of
a
National
v
officers.
Burton
Jamaica
'' •••'
i
Total
Deposits
Cash and due from
District which includes the states
of
Colorado, Iowa, Kansas, Minne¬
sota, Missouri, Montana, Nebraska,
North Dakota, South Dakota and
Wyoming'.
Richard E. Thomas,
Vice-President,
formerly
in
charge of this District, has been
40,494,671
J.
S.
22,358,940
&
.
13,346,935
discounts
Undivided
profits—
"■
.i
The
,
5,457,156
the
Chemicals, Metals and Manu¬
facturing District to the IndianaMichigan- District where he will
*£
' i.-.
'
1,651.072
^
•
.
Rahmer, Vice-President, who con¬
tinues to supervise this District
Kentucky-Ohio
,
Recent
tional
the
as
promotions
dent
in
the
Na¬
include
Division
pointment
the
Vice-Presi¬
the
of
following officials:
Sterling Bunnell, E. Newton
Cutler, Jr., Robert G. Fuller, Rob¬
ert L. Hoguet and Frederick C.
Windisch, all formerly VicePresidents.
Newly elected VicePresidents
include
Stephen
C.
C.
investment
1,624,613
portfolio.
of
,
j. Xtie Firsj;
ft
~
.
,.7
Bank
National City Bank^of
F.
Post,
Jr.
and
Eldon
The Annual
ft
held
A
R.
in
Singapore*
Shaw House
will
be
the
to
located
at
Orchard Road. It
on
bank's
branch, office
or
"ft
The
be
75th
overseas
affiliate.
ft
ft
•.
;
/
as
an
dent and of Leslie R. De Nike and
Edward A.
Farley, Jr.
Secretaries
Trust
of
Assistant
as
New York, are
by Horace C. Flanigan,
Mr.
Schor
He
1937.
joined
bank
in
appointed an As¬
sistant Manager in 1948, a Branch
Manager in 1951, and an Assistant
was
Secretary in 1952.
Charge of the
bank's office located at 37 Avenue
B, New York.
with
career
division.
cial
was
Bank's
coordinator of busi¬
as
New
Jan. 21
it
of
Commerce,
announced
was
' fit
ft
on
■'
*
Marine
Company
of
elected
\
the
•
Cur¬
official
gave
a
K.
Thompson, who will retire
April
1,
but
Director
and
Heroz
1938 and
man
in
it will
as
Chairman
as
rency*
/• >;•
•
.
*
;
: ft
elected
'■
Connecticut
The
•
i
■'
Richard
..its'
J.
ft
■
■
succeeds
Bank
Manchester
charter
tional
Chairman
of
Trust
title
and
Mr.
Gillies
has
been
an
of
The
to
that
ment
Citizens
the
'.«• "...
First
Cash
Dec.>31/58
was
active
in the
invest¬
In
•:
secu-
-
holdings
13,470,807
profits—
10,074,740
23,358,980
556,953
discounts
<fc
Undivided
27,022,041
THE
if:
ft
ft
FIFTH-THIRD
UNION
Dec.
-
Paterson,
N.
J.,
organization of
He
was
Total
1
-!■
U.
S.
Loars
organizer of
&
Undivided
Company,
114,014,220-114,285,048
discounts
154,279.376
profits—
5,444,917'
Tienhoven
van
Trust
have
appointment
an¬
of
G.
their
Rep¬
Argentina
and
as
for
ft
TIIE
*
Amphenol-Borg Electronics Corporation
ft
CORPORATION
TRUST
Deposits
was
appointed
an
CO.,
N.
Y.
The
Dec. 31/58 Sept. 24/58
$4,088,133
$3,804,133
608,353
327,279
1.G72.571
2,072,668
380,650
380,641
450,115
596,419
banks
S.
rity
Govt,
Undivided
tion of Amphenol
secu¬
holdings—
profits—
Assist¬
ft
undersigned acted
as
financial
con-
sultants in connection with the consolida¬
^
Cxsh and due from
U.
Farely joined the bank in
and The
Electronics Corporation
George W. Borg Corporation.
ft
ft
Branch
Manager in 1956. At
present, Mr. Farley is assigned to
the maiiu banking floor
of the
bank's head office, 44 Wall St.
Mr.
Flanigan also announced
the appointment of Alberta Irene
Hayes
as
an
assistant
branch
With
manager.
the
appointment
Miss
Trust
Hayes,
Manufacturers
Company now has a total of
27 women officers.
Miss
turers
Hayes
Trust
,
•
Company
with the merger of the
Trust
Company,
and
pointed
a
platform
Manufac¬
in
1950
Brooklyn
was
assistant
ap¬
in
1952 at the bank's Jamaica Office.
She
will
continue
with
her
present
duties,-at
the
The
New
National
Grace
York,
Jamaica
Bank
of
Jan. 19, announced
on
appointment of Joseph G. Burrough as Cashier. Mr. Burrough,
a
52-year-old native New Yorker,
has been with the Grace National
Bank for 34 years. He was named
an Assistant Cashier in
1936 and
an
Assistant
Vice-President
Hornblower
in
Weeks
&
1951.
-The
.
joined
158,256,122
4,603.995
'
York,
New
the
Company with the
*
76,393,511
secu¬
Banking
Schroder
and
resentative
Street."
367.987,671
337,825,580 332,726,957
85,446,002
Govt,
rity holdings—
was an
373,373,181
banks
as
later
resources.
Deposits
-I
Corporation
bank
also
Thomas
T.
Brekka
Trust
Officer
and
-a
p p o
i
n
te d
Assistant
as
John
M.
Bos-
BOSTON
•
PHILADELPHIA
NEW YORK
•
ROCKFORD
•
CHICAGO
PROVIDENCE
•
•
CHARLOTTE
•
DETROIT
PORTLAND
•
•
•
BANGOR
WORCESTER
•
CLEVELAND
•
"M
PEORIA
MEMPHIS
worth, Daniel G. Fitch and Frank
J.
McDonough as Assistant
EST. 1888
Cashiers.
«
Allen
S.
ft
f?
Rupley,
Vice-President
and
&.
Executive
Director
of
... ..... •.
•
CO.
31,.'58 June 30/58
Cash and due frcm
Uruguay.
Nike is assigned to the bank's
office located at Fifth Avenue and
TRUST
CINCINNATI,. OHIO
•
Schroder
Ilenry
Manu¬
in 1949.
801,001
i|«
by Waiter E. Kolb, Presi¬
ft
J.
,
'
with the First Na¬
of
1920, he
12,614,757
National
Company, Ridge-
Assistant Secretary.
elected Secretary.
bond business in New York
50,045,276
13,083,387
Govt,
S.
Dec..31/57
57,169,720
due from
and
wood, N. J., died Jan. 14. His age
was
79.
Mr. Board
started his
career
/
•
$62,056;&48 $54,495,765
;
—
:>
Bank
Ohio,
*
tfe
resources..-;-.
Deposits
rity
th^ Ridgewood Trust Company
officer
ap¬
For¬
AUGUSTA, GEORGIA
Total
Loans
Chairman
Board,
Bank and Trust
tional
and prior
been
new
GEORGIA RAILROAD BANK & TRUST CO.
Com¬
ft
ft
Z.
and assisted in the
of the bank since 1933,
has
Jan. 15.
on
ifc
U.
banking
the
'ifs-'";
Bank, 7 Cleveland,
and
Manchester, Conn., merged
ft
of
Gregory W. Spurr, who
elected
.
Wade
pointed Manager of the
announced
1
■
Company, Hartford, Conn.,
Frederick
week¬
a
Vice-Chair¬
1956.
,
ft
v
pany.
meeting of the bank's Board
of Directors. Mr. Gillies, who has
been
Executive
Vice-President,
a
of the
eign Department, Mervin B.
Midland
County, Nyack, N. Y. at
on
as
joined the bank in
was
,
be
now
continue
Committee.
Executive
Mr.
will
^France, President of Society Na¬
Rockland
r
the
Cleve¬
He will succeed John
land, Ohio.
■••7
+
of
Connecticut Bank and Trust Com¬
.
been
has
of
Bank,
dent.
De
of
Director of the
a
Bank
York,
Total resources-/—
1951 and.
'
end
Major-General George Olmstead
has been elected
appointed an Assistant
Manager in 1955. At present, Mr.
ant
/
Gillies
Board.
ft
ft
ft
was
Mr.
R.
Officer
Commerce
banks
W.
was
committee.
credit
Bronx
merger of the two banks
18th
Elliott
development of the commer¬
banking division, and also
appointed a member of the
ness
National
facturers Trust
He
ft
of
Vice-President, succeeds
1946, and joined
in
Bank
began his banking
the
election
President of the
banking
nounced
Mr. De Nike
the
was
Trust
At present, Mr.
Schor is Officer in
744,380.
Executive
Union
stockholders at the prompt action
of the Comptroller of the Cur¬
under
to
715,750
was
Chief
ft
if!
of the Board of Directors and the
pany,
from
man,
known, Edward L. Clifford, Presi¬
dent, expressed the gratification
shares
ft
s>
Bank,
and The
Jan.
pass¬
Heroz, Vice-Chair¬
elected Chairman and
Speaking for Worcester County
National
Trust
of
as
«
adjourned special meeting
originally called for Jan. 2.
shareholders of record
the
Industrial
the
dividend
the
and
Hugh R. Chace, Vice-President of
the Bank of New York, as head of
Manufacturers
Chairman of the Board.
the
savipgs
a
R.
George
the
at
in
"
in Washington
formally declared at the or¬
ganizational meeting of the Board
immediately following the share¬
holders' meeting, Subject to the
approval of the Comptroller of
the Currency, this stock dividend
will
be
paid
February 20,
to
■■■
Company,
announced
15.
increase
and
Company, Worcester, Mass.,
21, and will increase outstanding
ft
Announced
Mr. Chace
of
George
Assistant Vice-Presi¬
Trust
,
new
reserves.
■
Comptroller
'
Averett,
appointments
Schor
"
.
of
use
Under the
system, sav¬
ings customers receive receipts
similar to the ones given check¬
ing-account depositors. '
/
National Bank Charter ratified by
stockholders of Worcester County
was
National
-v-
■
Jan.
on
shareholders
Bank of IIawTaii.
«i!
exclusive of
of
to
approval, to the application for
Meet¬
capital stock
of the Bank by the declaration of
the special 4% stock dividend was
approved by a majority of the
a
••
Stockholders''
eliminates
book.
surplus
profits, combined
capital and surplus of the bank
as of Dec. 31, 1958 would be $10,000,000, and total capital funds
would be in excess of $11,000,000
rency
-1"1"
:!!
ing of National Bank of West¬
chester, White Plains, N. Y., was
ft
director of the Bishop
/■'
*
the
shares
transfer
Office
.
offer
of
*
:> M. A..
Cancelliere, President of
WPNB, predicts that within, a few
years, many banks; throughout the
state will adopt the system,, which
Adjusted to re¬
proceeds of the
gross
the additional
The
*
sale
ft
Shadyside
new
from undivided
value.
Vice-President, it was
14, by William H.
Moore, Chairman of the Board.
Mr. Davies recently resigned as
r-
Babylon,
given approval to in¬
Capital
Stock
from
consisting
of
57,375
shares of the par value of $10
each,
to $751,130 consisting of
75,113
shares of the same par
George T. Davies has joined the
•
Babylon,
its
crease
Wallingford.
New York announced that pn Jan.
/.
26 it will open a second/branch
of
20,
The
will
the
of
the
the
of
intended
an
was
from
Company,
Bank, McKeesport, Pa** is the first
banking office in Pennsylvania to
adopt the new method: of "No
Passbook Savings Accounts."
4.
capital funds.
sale
ft
new
Jan.
Trust
and
Western Pennsylvania National
one-half
on
Assistant
Abernethy,
*
The
capital stock is to be added
new
York,
flect
were
Cullen,
John E. Hardy, Wesley Simmons,
William
F.
Dralle,
Edward
A.
Murphy,
Daniel B.
Phelan, L.
a
National
New
one*
and
termination
Proceeds
Kent, Jr., John H. Muller and
Klitgord as Directors.
N. Y.,
six
R.
Bank
announcement by Frank R. Den¬
ton, Vice-Chairman.
unsubscribed shares
any
Feb.
on
Otton
ft
of
rate
each
Mr.
1929
In
.ft.'
#
Pittsburgh,
Pa.,
has
been
ap¬
pointed Assistant Vice-President
and
Manager of the bank's
Charleroi Office according to an
Bank
group
headed by
Boston
Corporation
the
at
Chair¬
J.
-
the
purchase
-
Lafayette
Brooklyn,
%
John
is
A
1959.
First
announced the election of William
announced Jan.
*
7
*
■
at
for
to
Assistant Vice-
Thomas
were
as
ft
Mass.,
•
President.
ft
Vice-President of the Mellon Na¬
tional
sj:
■
National
shares held of record
Vanderveer,
the
of
Boston,
share
ft
,
George J. Gross.
was
T.
of
man
Mr. Henne¬
Appointed Assistant Vice-Presi¬
York,
York,
Bank
Kaestner,
corporate
trust; Herman A. Streller, opera¬
tions; and Fred G. O. Wernet,
personal trust.
.
the
Appropriations
ft
"
ft
.
'
T.
offering the
holders of its outstanding capital
stock rights to subscribe for 40,000 additional shares at $38 per
Elected p Senior Vice-President
Pennsylvania Exchange Bank,
Milton
W.
-
of
$573,750
Advanced from
Abbett
is
Vice-Presi¬
of
■#.' '
National Bank, serv¬
Cashier.
became
1
'
Vice-President
Rockland-Atlas
share
ft
Edward
its
as
Board
an¬
Dudan, Vice-President and Treas¬
urer; Bradford M. Johnson, Vice-
R.
and
member
a
and
follows:
as
Executive
bank's
were
Secretary; Richard B. Barnett, Senior Vice-President; Peter
Finan¬
1955
„
the
ing
and
Committee.
promotion of
nomics Department; and Robert P.
Graham (Transportation Depart¬
^
nounced
Lovatt,
of
elected
the Citizens
President & Trust Officer.
Chief
Bank, New York,
the
W.
members
staff
Executive
an
Executive
Finance
.
President to Vice-President
dents
in
sibilities. He is
is in charge of personnel ad¬
Frank
as
and
Officer
presently
International Banking Department
of Bankers Trust Company, New
.V..
dur¬
years
of
Other
official
dent with broad corporate respon¬
New
*1*
Eyre (Illinois-Wisconsin District);
Henry Mueller (formerly Cen¬
tral Atlantic District) in the Eco¬
P.
ment).
Grace
1948.
elected
Vice-President
ministration.
ap¬
Senior
to
-
He has been
Treasurer
& Co. in
was
ft
Hanover
announced
man
be associated with Mr. Clifford D.
well
City, associated with Halsey Stu¬
art and Company.
'•
He
22,459,312
Harry P. Barrand, Jr., Craig S.
assigned to one of First National Bartlett and John B. Henneman
Senior
City's
Vice-Presidents.
All
largest
New York
City to
branches
at
Lexington
Avenue were formerly Vice-Presidents.
and 42nd Street.
; "
Mr.
Barrand
is
in charge
of
William F. Cordner, Vice-Presi¬ Hanover's foreign
division.
Mr.
dent, has been transferred from Bartlett
administers
the
bank's
as
the
of New York
secu¬
holdings
Loans
has
6,024,863
v.
Govt,
rity
38,094,634
y
banks
head of the Middle Western
Sept. 24/58
$44,379,497 $45,027,680
resources
i
District.:
of
Company.
became
cial
CO., NEW YORK
Dec. 31/58
•:
-
Avenue,
•1 •:•*'"' >•';. •
UNDERWRITERS TRUST
J.
Lee, Vice-President,
has
been
reassigned
from
the
Indiana-Michigan District to be¬
come
been
charge of Grace offices in San
Grace
several
has
Francisco and in Central America
and
.
staff
National Bank
BRANCHES
of
Co.,
ing the early part of his 42
NEW
ment
&
Director.
Rupley served for about 10
years
CONSOLIDATIONS
New York
a
21
v.v.v • -.v.-.-.-.-.-.-.-.-.-.-.*.-.*
.
.
.
.
.
o.
The Commercial and Financial Chronicle
(418)
22
Another aspect
Continued from first page
paid off. Meanwhile, rent control has often added its in¬
tending to induce neglect of exist¬
ing structures and the
slums.
How Ill-Housed?
-third of the
people are now or ever have
Roosevelt once proclaimed
much gusto, depends, naturally, upon the standards
Whether
one
been "ill-housed," as Franklin
with
that there
can
be
no
doubt. Even
more
in
Continued
it is not
so
or
.
It is
likewise
which tend to
persuade the home
self with debt—as many of these
no
service to that home
a
fact that
programs
owner
'
"*
Before
few
a
getting
of
this
of
man
runneth
not
public expenditures
to
the
were
contrary,
economy
favorable
we
is
in world markets, intensifying
the
as
Market
gathers strength. Other free trade
areas are in various stages of forCommon
European
are
(d)
increase much this yeaj.
Increased overtime
oavalthough
ments
'
(a)
Increase
in
the
high-wage
front
mi
.
jng intentions and confidence.
ol'
It
could
prime importance in the 1957-58
back
Nondefense costs will be
memory
and that prodigal
needed to stimulate its normal
but little.
will
itself
reverse
contribute to recovery
hold at
high levels.
in
it did
as
prices remain
(5)
,
(4) Building construction should
...
for
1954,
-
(6)
Construction in Volume
high
and
Residential construction with what
may be regarded
and downs with general business conditions
proceeding at a vigorous rate ever since the
end of World War II.
Of course, there was a
backlog to
fill, and the population has been increasing rapidly. It may
well be doubted, however, whether a more
rapid rate of
housing construction could be regarded as wholesome in
the circumstances.
Throughout the period since 1946 the
people of the United States have been far
exceeding the
residential
construction
even
when
the
eliminated. In- point of fact,
the record of recent
years is not very far from double that
of 1929. Even in 1957 the
figure is higher than anv year
on record
except 1955 and 1956.
Of
ured
are
in
the
final
ference is that
ing
we
if the volume of such construction
is
1929. And
meas¬
that of
this
matter of cost and
price carries another
warning to the thoughtful. A house costing, say, $8,000 in
1929 would have cost over
$20,000 in 1957. It would be
one
thing to induce extraordinarily large home construc¬
tion by the rank and file if
they could get the houses at
cost
that did not overstrain the
financial
of
are
might
list
now
few
a
adverse
thoughts:
(1)
U;
we
V
Capital
capital
expenditure
expendituies
-
#
.
(2) Although business will be
generally at a high level, corpo-
profits in the aggregate are;
unlikely to fare as well.-The men who
run
the
country's manufac-
from 1929 to 1957 at less than
increase of more than
150% in the
struction.
case
100%, against
of residential
an
den^ m. stocks is best measured
Board
showed
that
That is a
with only
5.7 ratio in 1949 and
a
8.6 as recently as 1953. In other
words, we think almost 2 ,2 times
as much of stocks as we did five
competition; and they are not ex- years ago..
pecting any substantial increase
To illustrate how much confi-
many concerns look for stiff price
i
in either before
or
after tax prof-
that
"The
1959
may
long
t
„
,
}
rea-
and
loft-
preview, will seek
to paint big business—-not biff
labor—as the villain in the mflaBusiness will be ac-
tlQn piece.
raising
prices
above
jncreased labor costs and of profit-
eering in defense contracts Banks
insurance
companies will be
a
speculative rise.
Finally, let's
suppose
run
from abroad
jjon
q£
free
gold
qujrements for the combined note
deposit liabilities of the FedReserve
System.
Or, that
eral
owners
of any substantial part of
frightened.
eign
countries
the
years
varies
more
have frequently
had wide swings
a
and
come
through
there is
the $8 bilheld by our
on
Treasury in excess of reserve re-
that the price-times-earnings ratio
the wage-cost spiral in opposite direction to earnings,
lasts, the harder it is to pass in- Thus, from 1942 to 1946 stock
creased costs on to the buyer. Inprices rose 100% while share earndustry almost certainly will oper- ings fell 32%. Then from 1946 to
as
Street Journal
American
outstanding feature of widely than „do earnings thema f u r t h e r
profit selves. Since 1939 prices for stocks
-
Liberal
really means in the stock
market, it is interesting to observe
dence
be
squeeze."
with
of the present session in m-
vestigations.
an(J
Quarters) earnings.
blgb ra%°\ c^TR?lin§
Conference
occur
ratio, that is the rate at which m- cf,arged with jacking up interest
vestois are willing-.to capitalize rafes and taking advantage of vetearning, power. At present the erans and 0fher borrowers of limtypical industrial stock commands ited means This is no climate for
equal to 20 times the latest
As
con¬
"
aVnua?
by the Wall Street Journal showed
rise
space
a price
way
the
free-wheeling in outer
die iree wneeiing in oulcr space,
The degree of investor confi-
not nearly so
are
of the
ordinary man; it is quite another to proceed in this
when the increase in such cost has far
outstripped the
rise in the costs in the
economic system
generally. Prob¬
ably the best index of prices generally available
places
the electronic and missile groups
optimistic about profits as are the
people
who have
been
buying
stocks. A survey of 189 manufacturers by the National Industrial
its in the first half of this year. A
similar survey of business leaders
resources
caring about price, whatever has
been going up
Drug and other
-prime growth stocks are at fabulous price-earnings'ratios; while
nrnh
prob-
rate
this
sonable promptness, we could wit-
want to buy, seemingly without most
ably will remain low, due to excess
capacity in many lines and
hlghcosts
^
in busi-
Confidence has much influ- ness a marked reversal in the
I'shall quote a sentence by market's attitude toward bonds as
a stock market analyst which I against stocks.
recently read: "Today most people
Or. again, let s soPP^
are utterly 'trend conscious,' They believe that the Congress spends
1958. *In-
now.
as
Should
tion.
es
ence-
really roll-
On the other side of the coin
the budget and to contain infla¬
„
Earnings and Stock
liess,
all-time record
an
quarter
^
In the stock market,
ads
estimated that the naoutput of goods and serv-
ices established
•
..
*
The Commerce Department
tional
Or suppose, contrary to present
expectation,
the
new
Congress
agrees with the President's view
that it is imperative to balance
,
park bench
help-wanted
turing companies
course
by the dollars put into it; it is several times
some
upon a
(6) Farm income may be somewhat lower. %
gen-
a
recently
natural ups
has been
of
perched
upon
upsetting.
would
burden
The Federal Reserve Board
studying the
tleman
money
be
drawback.
a
'
unsound
chain of
adjustments,which
The defense
be lightened, the
budget cut, and troops abroad
brought home. The composition of
foreign trade would be altered.
Most of all, it would alleviate ina
l'lationary pressures and substitute
some deflationary ones,
including
adding to unemployment.
Cerwin probably make more use of tainly we could expect an intensiits power this year — there may fication of world competition.
and
in 1959.
times
This would immediately
the West.
start
recession
20
Affect Stock Prices
(3) Inventory policy, which was
•
of
23; in 1937 it was 17 and
was
the automobile industry,
which is widely regarded as the
key to the general situation. Although consumers are recovering
from the shock of the recession, interest in new cars has not snapped
ing
and
volume
1946
does not make very cheerful read-
national
cut
ratio
recent
an
occ"r some rather abrupt changes
a
reversals.
. >r
1929
The
earnings for Standard & Poor's in-;
dustrials is one of the highest on
record. TL a a a
The corresponding R1 cfL in
**^#1AU/I
a n rl "i n rf high
Other Influences Which Could
economic
the
(5) Democratic Congress will be
in favor of business expansion to
ease
unemployment.
We cannot
impress the dangers of inflation
effect of price changes
the mark.
ingre¬
order.
,
12-month basis have acdeclined by 18%. Stocks
try to peer ahead and forecastcoming earnings, and in doing so
they almost invariably overshoot
on a
tually
security.
(b) Increase in State and Local expenditures.
(c)
big
a
price has risen by 37%, yet earn-
ings
expenditures
for
of
while hardly likely, the probhshed by the University of Michi- ]em of German unification could
gan* This is the latest survey of be settled. Should this occur, it
a sel4es, begun in 1952, 011 con- would go far toward liquidating
sumer attitudes as to future buy- the cold war between the East and
Government spending will
n
■
bottom
interesting studY ha? been Pub"
iinpm-
%•
~
of
On
(4)
nlovment will remain
be w
higher,
the
at
were
and industrial stocks
selling around 12 times earnings of the last four quarters. Since,
then the average industrial stock;
dient.
Cost of living should not
of-
illustration
recent
most
ihe highest-cost nation, chiefly in 1929 19V2.
becayse
growth. But the facts do not support any such supposition.
One would also suppose that the man who is
expected to
assume
ownership of his home was relatively free of debt,
and quite able to take on the
charges incident to the
ownership of his home. Again, the facts are of a different
as
up
were
downswing
mation, the Latin-American Trade
(ej
past and
housing construction had been Jagging since the
time 1949
were
likely to be increasing competition among nations for the disposal of their goods
(b) Record savings.
acquaint themselves with the facts before they go over¬
support of these various housing measures now
proposed—or for that matter even of the more moderate
that
the
is
Higher disposable income.
Signer disposable income
(a)
do—definitely
One would suppose
The
(1) Consumer expenditures for Area, the Pan-Arab and the African.
They all portend IT! OTP commore f'OlTl —
^00(is cHlCi SOIVlCCS
^ Pfl n
H
11
rise of 3%; to 4% over 1958.
petition to come. Meanwhile, we
board in
now.
:
the confidence factor is the \expe-.
rience since October, 1957.
Then
•
to
doubtless would like to have
it
which
first:
ones
programs
the
seriously into a
we might list
factors
taking
year,
It would be well if the rank and file took the trouble
in
the
expected will affect the
who is
wanted
way ahead. So, by the
rolled around earnings
There
(3)
discussion of stocks
supposed to be
them. Nor do we believe it a wholesome thing
to make so large a part of the
citizenry recipients of hous¬
ing largesse. The Lord knows we have enough of that in
many other directions already.
has
-
True, there was a postwar boom
in earnings, but the market in.
1946, at 23 times earnings had dis¬
counted
better ~ earnings : a
long
ate at a high break-even point,
Actually, corporate profits have
been tending downward since 1950.
-
Economic Background for 1959
served by
schemes that the President
postwar boom would boost
>v
r*
.
and dearer.
scarcer
to overload him¬
owner
a
earnings of corporations.
v
for this type of security might be
many
another.
inspired by the ending of the
and belief that lower taxes
and
Stock Market in 1959
/
■
things, too. that people need, and the people who need
them are usually taxpayers who are required to provide
the funds for these grandiose housing programs. The mere
fact that the cost of these schemes may not be felt in full
force for some months or even years to come does nothing
to alter the fact that the fiddler will require his fee at
time
5
page
confidence
That
earnings.
war
Business Outlook and the
get the better of our judgment. There are many other
are
times
220%, but stocks reacted by 22%.
other aspects of human affairs
wise to permit our emotions or our good will to
as
from
or
was
people of this country are wise they will uphold
opposition to these Democratic pro¬
posals—yes and even insist that the President himself be
less generous with public funds and public credit for
housing.T ;
certain is the fact
-
8 times
earnings. Yet by 1946
confidence had risen to a point
where investors were paying 23
very
But here
one
low and investors would pay only
7
the President in his
substantial number of people do not enjoy the
sort of housing they would like to have—any more than
they have other things of the sort and in the quantity they
desire—and housing is one of the more basic needs of
human beings. It is, therefore, not difficult to understand
how the paternalistically inclined among us are so ready
to support proposals for largesse in housing, and even less
difficult to understand how the provision of better housing
out of the public purse can be a popular political demand,
at least among those members of Congress who hail from
areas where the problem tends to be critical.
a
Just after
Pearl Harbor confidence was very
If the
housing; employed in the determination of inadequacy.
There are many, particularly in crowded urban areas, who
do not have the sort of housing that one could wish. Of
that
Those trends reflected big shifts
in investor confidence.
ernment underwritten.
of
by
4%.
paring such a figure with any prewar year or date. The
two figures are not even of the same order of magnitude.
Even as recently as 1950 the total of such debt came only
to a little more than $45 billion. And something slightly
less than $50 billion of the current mortgage debt is gov¬
creation of what is now termed
dropped 22% although
and actually dipped
stagnated
family houses had reached the staggering total
about $115 billion. Of course, there is no point in com¬
of
fluence to other factors
Thursday, January 22, 1959
.
earnings shot upward and gained
220%.
Again from 1949 to 1952
stocks rose 94% although
earnings
to four
one
.
1949 stocks
of this situation which should give the
government pause is the rapid rise in mortgage debt on
small homes. By the end of September of last year (the
latest figure readily available) outstanding mortgages on
We See It
As
.
the
$8
or
billion
$9
worth
of
shares held abroad be-
Nationals of forwho
hold
our
stocks do not have to pay capital
gains
taxes.
Their
decisions .to
buy, sell or switch can be independent of tax considerations,
;
Summary
(1) The outlook for business on
Volume
the
189
whole
few
Number
is
5814
.
There
good.
The Commercial and Financial Chronicle
.
.
are
sanction
will
probably earn
perhaps many of the
goods companies will
their position.
consumer
improve
(3) The economy lacks the dy¬
namism accruing from expansion
of capital goods.
have
picture.
,
economy
a
wait for
to
(5)
^
v
.
In
(6)
1950
firm went
our
deflated.
stocks
at that time
bonds
on
stocks
'
tors
and
on
(8) A 10% increase in dividends
year for the next six years
would be required to attain the
each
stocks
on
available upon bonds.
now
;
Money,
besi
riod
can
God
I
would
same
have floored
■' '
while
doubled
the
living index is
(13) Ordinarily
flation
it
think of in¬
we
bullish factor
only if
helps to improve earnings divi¬
as
a
1616
Walnut
Street
to
The inflation
we
P. F. McKee
experiencing is largely in wages
governmental deficits; both
of which pose a threat to ability
and
F.
(15)
Of
$7.4
billion
lower
tax
billion, the
is
to construe this as
a
It
is
name
of
Service.
(16)
More
institutions
than
ever
they are not taxed.
(18)
Our* better
our
and
buy
before.
the
for
Of
of
these
at
some
shares
Edward
I.
we
Hagen
100%,
moon
as we
would
at 106 West
without
or not!
it,
as
been
sold,
matter
a
this
of
j
Therefore
advertisement
•
'
'»
'■
-
"
,
'
tr„,
'
Performer Boat Corporation
-
i|
which
in
the
I
especially in¬
am
the educational
$1
per
Research
Boston, New
Hampshire, is doing.
Here is a
humble organization which is try¬
ing to discover a means of pre¬
venting
people
from
"getting
tired" when working in factories,
of
New
hoimesj or stores.
As air-condi¬
tioning adds so much to the Wellbeing of people during the hot
weather, a -slight retarding of the
force of gravity in the factory
and home would do much to keep
"getting tired" at their jobs.
of DeHaven &
Crouter
&
-
Bodine,
Securities
Co.,
Mcllvaine
was
elected
Most
are
you
V
the
course,
ability
New duPont Branch
ST. PETERSBURG, Fla.—Fran-
regulate
to
gravity pull by a thermostat and cis I. duPont & Co, has opened
thus prevent people from getting an office at 218 Beach Drive,
tired has not yet been achieved. North, St. Petersburg, Fla., its 6th
Neither has a cure for cancer and office in Florida and its 72nd
scourges; but I can assure nationwide. The office is headed
readers all these
are
the
on
way.
by T. Ray Gaither and Samuel T.
Messner, Jr.
W. J. Stoutenburgh Opens
William J.
engaging in
Columbine Adds to Staff
Stoutenburgh, Jr. is
securities business
(Special to The Financial Chronicle)
a
Colo.—Mel vin E
DENVER,
«ey acquire a membership in the liam A.Alfred O. Primock, J. E.
York.qty. Mr, Stoutenlmrjtti,- ONeU^ Rutkofsky and Wil
will
New
Stock
York
Thompson have been added to the
of
Columbine
Securities
Exchange.
staff
MT.
VERNON,
111.
—
Fusz-
Schmelzle & Co., Inc., has opened a
branch office at 1123 West Broad¬
way
under
the
of
management
A
Martin Annunziata Opens
MT.
Fiske Place.
ANCHORAGE, Alaska
.
r
or
as
a
solicitation
The
no
A
-
* orms
oecs.
Warren Coleman is engaging in
Paul
Nichols has opened offices at 603
East Fifth Avenue to engage in a
sell
business
.
Upens in Anchorage
to
VERNON, N. Y. —Martin
is conducting a secu¬
from offices at 6
Annunziata
rities
Edward E' Hawklns^
17th Street.
Corp., 621
a
securities business from offices
New York
at 729 Seventh Avenue,
City,
under
Coleman
the
firm
Securities
name
have
Even
INCORPORATED
we
illnesses
getting over¬
physician will tell
and
many
-—'i
■
circumstances to be construed as an offer
of an offer to buy any of these
securities.
offering is made only by the prospectus.
NEW ISSUE
650,000 Shares
Ponce de Leon
Trotting Association, Inc.
Common Stock
We never "catch cold"
rested and healthy
are
sleep and diet.
shopping is a tiresome chore.
proper
Price $1.50 per
Share
Copies of the prospectus will be furnished upon
by the selling group manager,
request
Greenfield & Co., Inc.
Think how the stores where grav¬
54 Wall Street
New York 5,
N. Y.
ity* could be retarded would get
the
HAnover 2-4890
January
3 7,
1959
Moreover,
the
stores would be able to regulate
patronage!
this gravity pull by a
thermostat,
letting it jbe "natural" in the morn-
GREENFIELD & CO., INC.
of
Company,
-
caused by
Every
this.
when
and
colds
now
tired.
CO.
to
the Board of Governors to serve
until 1960, and the following were
elected Governors to serve until
1961: Harry L. Heffelfinger of
Getting: Overtired Is Dangerous
Share
R. A. HOLMAN &
Webb
Gravity
(
at
Vice-President;
the U. S. Think how sales of all Trust Co. and Mr. Wenzel.
kinds would increase if, upon
,
work
; manual workers and mothers from
Common Stock
Co.,
Philadelphia
Mr.
conclude
Tliis announcement is under
terested
v
.
I.
&
Treasurer and Warren V. Musser
.
record.
300,000 Shares
-
me
Fusz Schmelzle Branch
bles.
rities business from offices at 5475
Monica Boulevard.
Wright, III
Francis
of
of
;
D.
Wenzel
William A.
Increasing Sales
making of rockets, missiles, and
all
"sputniks" or "luniks." Its securities business under the firm
regulation could also render par- name of Paul Nichols Securities
tial relief to the 10,000,000 U. S. Co.
citizens who suffer from arthritis,
....
bursitis, or other rheumatic trou-
name
ANGELES, Calif.—Agnes
Bange is engaging in a secu¬
Santa
Regulation
S.
Albert
R.
Townsend,
will not discover the solution be-
(Special to The Financial Chronicle)
in¬
profits.
,wanted to
feverishly working on this
problem. The U. S. Defense Department is hoping that Russia
LOS
W.
to
the
year
duPont
onT wants from offices at 25 Broad Street,
now
Opens Inv. Office
having
only
Priced
no
regulated or partially insulated.
Certain
airplane companies are
was
■
,
u*
It is, however, very important
that the downpull of gravity be
v;:.'.-v
•7
.
known
Anti-Gravity Studies
1157
firm
Invest¬
Sixth Street under the firm
is
bonds
appears
nnlv
course
the
to
whether
Foundation
AH
all
magnetism.
thi*
+w
nossible
corporations
persistent effort of
or
1
of Investors Service Co.
over,
comes
With
it travels.
not
EUGENE, Oregon—Ray Brog- fore we do. A
partial insulation
is engaging in a securities
of gravity would revolutionize the
not therefore financ¬
stocks
electricity
how
r-ravitv
rise
the
and
and
engage
McKee
business from offices
ing the stocks in quantities to
supply the demand.
(19) Further proof of the pref¬
erence
where
or
do
We
don
tax laws prefer to bor¬
are
about.
electricity
see
bullish influ¬
Some
charitable
trusts
higher for stocks because
can pay
under
Mr.
Co.
&
.
now
little
offices
Ray Brogdpn Opens
(17)
row
Insurance
formerly with
hard
ence.
stocks
gravityTs
Gravity
from.
comes
to eliminate it
under
Kane
ment
sum
accounted
collections.
know vdiat
the power it possesses, we cannot
ROSEBURG, Oregon — Paulus
McKee is conducting a securi¬
Southeast
budget
of
for by
assumed
our
i^t
do
where it
from
Opens
ties business from offices
to continue dividend payments on
common stocks.
deficit of $12
past few months.
know
Secretary-Treasurer.
now
are
so
for
ensumg
MS'wavet b^fchgwiU1iK fete^^nx'ioTs TS&oi
dends.
(14)
of many strikes which
destructive both to good
by referring to
my own experience.
It is very
hard for any one to sell me anything—land, stocks, merchandise,
physical force that cannot yet be
retarded. We can insulate against
in a securities business.
Officers
heat or cold; we can shut off light
are
Edward A. McN.ulty, Presi¬
by pulling a window shade or clos¬
dent;
John F. Roe, SecretaryTreasurer,
and
M. - R. Brown, ing a blind; but retarding gravity
even 10%
has thus far been imAssistant
at
A.
Let
-Harnessing Gravity
novw
or
Development
of value.
measures
■
.
Inc. has been formed .with
serve
were:
Gravity, like electricity, will or even an idea, when I am tired. Samuel K. Phillips & Co.; Mr.
day be harnessed as a source ^ ^kis *s true of me, it should be Musser;
Thomas P. Stovell * of
of cheap power. It is true that we true of 75,000,000 other adults in Provident
Tradesmens Bank &
PHILADELPHIA, Pa.—Fidelity
and Research Co.,
up only 8%.
In the matter of inflation
dealing with mass psychol¬
ogy and this at the moment seems
to outweigh the usual guards and
(12)
Time
cause
offi-
elected to
Cers
where
know
we are
Other
some
Fidelity Developm't Opens
of
cost
expired.
Babson
W.
Roger
been
have
in the
time it gives me ah op¬
■...
In the last five years in¬
dustrial stock prices have more
term
&
Inc., Secretary.
in
Africa,
At
me:
whose
of the gravity pull would do much
for industrial peace.
Fatigue is
Zam¬
River
Cd>.
Goldman,
the great enemy of man.
I
was
say to you that I most
positively have a continuing faith
in the long-term future of Amer¬
ica, of American industry,' arid of
American equities.
We have al¬
ways solved our problems in this
country.
*<
' V•' :
(11)
than
the
Sachs
Gravity Research Foundation. The
will
Gorge,
on
V
that investors should
be interested in the studies of the
are
greatest
illustration in
portunity to
(10) The stock market has al¬
ready discounted considerable in¬
,*'!
stocks
thank
the
rently.
■
Falls, N. Y.
The
stronger convic¬
go higher.
C
a
believe
basic
Co. at Niagara
Kariba
succeeds
studies will prove this. I further
believe that "getting tired" is a
Power
.
branches of the Congress concur¬
flation.
dack
Jan.
Wright
T/eiffhtnn
would
for the Adiron¬
than
more
16. Mr.
L eight on H.
Mcllvaine
of
workers did not "get tired"
the latter part of the day.
when I worked
only asked
to discuss security prices in 1959.
An attempt to cover a longer pe¬
-
■
suspect
becomes
I
interest rates and
inflation will almost certainly be
subjects of Congressional investi¬
gation this year maybe by both
(9)
.
the world is at
tion
those
as
,
of my
one
and
3.4%.-
.
.1
goes.
point to lower stock
prices than to higher levels. How¬
ever,
there is a mighty factor
which
could
outweigh all the
other evidence, that is, distrust of
our dollar. If this thinking spreads
(7) High grade bonds now yield
and high grade stocks only
income
got
of them
more
6.2%.
4.4%
same
it
so,
I
din¬
sociation
feels tired.
everyone
meet¬
and
of the As¬
total-efficiency of every plant
naturally speed up if the
during
•
Numerically I dare say)
enough.
common
I
and
ner
Everyone knows the. force of ing and decreasing its bull togravity. The baby learns it.when ward the end of the day when
We have enumerated many fac¬
yields
ing
;
Congressional; m.ai;n lessons
the
be
tion at the
annual
will discover the solution to this before the Russians do.
we
battle for the future of the dollar;
for high grade
were
2.64%
The
will
PHILADELPHIA, Pa.—Spencer
Wright, III, of Wright, Wood &
Co., was elected president of the
Philadelphia Securities AssociaD.
The writer calls attention to the educational work
»
year
record that bonds seemed inflated
and
\
into stocks. The big struggle for
the next six months and maybe a
"'j'isi-
ments.
Elects Officers
which the Gravity Research Foundation, New Boston, N. H.,
is doing, and
reports that our U. S. Defense Department hopes
; - *
-
fore buying their normal require¬
phi,a-Secs-
BABSON
direction.
.
;
W.
applications is, according to Mr. Babson, the greatest coming
invention.
Many prefer convertible bonds or
bonds with warrants attached giv¬
he first falls
to the .floor;
the
ing a future option upon a sliee
childiearns it when he slides
of the equity.
'
;
down the stair
(22) There is a noticeable flight
from
bonds
(really the dollar) banister; and
of our eastern rail¬
sick and are not there¬
are
another
in
ROGER
The harnessing of gravity, the only known
physical force that
stilt cannot he retarded, and its possible peacetime and defense
.
Some
roads
result
same
A
consumption goods
is not a sturdy base for
bull market.
By
,
clearer
a
The Greatest Coming Invention
/
:v;'; •,■
(21)
Some of our
insurance
companies are reaching for the
In the hard-goods lines we
(4)
shall
legal
variable
stocks. '
,
;;
of
This preference Of the in¬
surance
companies is
not
due
alpne to views of management.
The companies are having diffi¬
culty in competing for pension
plans with plans that are admin¬
istered by trustees who are not
held
to
s m a 11
r percentages -of
drugs
and
secure
sale
(20)
The tobaccos
do better than 1958.
and
the
for
annuities.
(2) The electric utilities, tele¬
phones and most gas producing
and distributing corporations will
more
companies to
surance
a
laggards.
23
(419)
ROBERT L. FERMAN & CO., INC-
37 Wall Street
Ainsley Bldg., Miami 22, Florida
New York 5, N. Y.
149 Broadway, New York 5, N. Y.
24
The Commercial and Financial Chronicle
(420)
Business and Finance
.
.
Thursday, January 22, 1959
.
Speaks After the Turn of the Tear
from first
would tend to throw Government finances into the red.
page
these include:
Many
Continued
fall aid to education, labor law
revisions, civil rights, conservation—all forms of advanc¬
as well as
(2) defense spend¬
ing—for ships, planes, rockets, missiles, guns, munitions,
and ether developments—is now at a high level; the out¬
look is for greater, rather than less, defense spending in
the immediate future; (3) school enrollments continue to
increase demand for constructing more school facilities—
whether supported by local, state, or federal funds—in
ing
communities
the world, and the posture of our defense effort. India,
which has within its borders 40% of the uncommitted
and
people of the world and is the showcase of the democratic
experiment in Asia, grows more important as China
moves ahead. Congress must pass a loan and aid program
back
which
ing nation.
will
it
prevent
from
to
achieve self-sufficiency under its second five-year plan.
The President should be given the authority to use our
economic resources to wean away from Communism those
countries which show a disposition to leave that orbit
of influence. This proposal, which I offered in the last
Congress, failed by one vote. I intend to offer it again.
We must reformulate our aid programs to meet the
urgent needs of underdeveloped countries suffering from
overpopulation and capital starvation. In Latin America,
there is need for an inter-American agreement for sta¬
bilizing commodity prices and markets, for an interAmerican capital development bank, an increase in tech¬
nical assistance programs, and perhaps most important
of all, a change in our attitude on political relations,
especially in connection with the so-called dictators; our
attitude in diplomatic relations; and our attitude con¬
cerning economic relations.
On the domestic front,
the
failing
in
its
purpose
Congress is met with
new
host of economic problems.
a
The fears of a depression
which confronted the Congress last year have been re¬
placed to a great extent by concern over inflation and
the rising cost of living. Since the end of World War II
the cost of living has increased by 62%; and there are
signs that the economy has paused just long enough to
try another dizzy ascent. The Chairman of the Board of
Governors of the Federal Reserve System, upon return¬
ing from
trip abroad, noted that foreign businessmen
so firmly convinced of the great stability
of the American dollar. This thought compels us to exam¬
ine our fiscal and monetary policies. It promises to be
one of the most important challenges confronting
this
Congress. The Kennedy-Byrd-Payne Budget and Ac¬
counting bill which was passed last year should be of
some assistance* in this connection as soon as it is imple¬
were no
a
longer
mented.
Of
particular concern to the country also is the pattern
racketeering disclosed in the McClellan committee
hearings which calls for major changes in our labor laws.
This country needs an effective labor-management re¬
of
form law.
I
confident
am
that
the
partisanship which
killed the Kennedy-Ives bill in the House last Summer
—after it had passed the Senate by an 88 to 1 vote—will
not again be permitted to block this urgently needed
legislation. Despite the political perils, heated emotions
and powerful pressures which surround this subject, I
believe
effective
an
bi-partisan labor-management re¬
both Houses of Congress and become
form bill will pass
law in 1959—to the dismay of the Hoffas, The Sheffermans
be re-examined
Congress is to support the President in his efforts to hold
the
inflationary spiral which eats into the pocket-
books of young and old, rich and poor.
The third thesis concerns the domestic needs of
In this
a
grow¬
area
at home.
importance of a strong defense cannot be underes¬
timated. The President has achieved a balanced military
force to deter the outbreak of Communist aggression.
Our research and development, our advanced weaponry
programs, are progressing rapidly. The President must
have continuing support in this regard.
Although in the last Congress the bill which I spon¬
sored for the Administration to reorganize the command
channels of the Defense Department, commonly termed
the Reorganization Bill, was enacted, yet further revi¬
sions are necessary in defense development procedures
in order to maintain and build our defenses adequately.
I am re-introducing a bill to discard obsolete
procure¬
our progress
become
^
ment practices.
The essence of the bill provides for the
encouragement of what is known as the weapons, system
concept of procurement. Technical and Management Re¬
sponsibility under the concept are assigned to a major
prime contractor and delegated by him. The system has
been
very effective in reducing lead time, that is, the
from the conception of a military requirement to
time
the
production
calls
for
the operational hardware. The bill
specifications in military purchases,
of
simpler
incentives in the selection of contracts and the elimina¬
tion of renegotiation from incentive and fixed
price con¬
tracts.
It further provides lor flexibility in choosing
negotiation as well as formal advertising in military
purchases and will stimulate the supply of commercialtype products where suitable. " I hope that the Armed
Services Committee will give thorough consideration to
the proposal designed to speed up the job of procuring
advanced military weapons.
As a member of the Appropriations Committee, I have
always examined carefully proposed Government ex¬
penditures. It is essential this year that each expenditure
be weighed against other needs of the Government and
revenues
available.
I intend to do my
utmost to obtain
budget in balance and yet provide the needs of our
Government in an expanding, nation and an uncertain
world. We must weigh carefully the needs of national
a
defense
the
and
contribute to
our
for
as
to meet the
of the jet age; there is urgent need for
an
challenges
urban renewal
program for our metropolitan areas to meet present de¬
mands and to prevent future critical
shortages of homes
exploding population growth; and the existing
farm legislation must be replaced
by a solid program
designed to reduce our surpluses, to save our soil and
our
water for the years ahead.
Each of these items will call for
imagination,
for
needs
Government
the
If
services
and determination.
I
ingenuity
that Congress will be equal
am sure
HON. ALEXANDER WILEY
U. S. Senator from Wisconsin
The outlook for 1959 appears to be one of steady
im¬
provement in the economy—with "dark spots" of linger¬
ing unemployment and business lags in scattered areas.
As the 86th
Congress gets underway, big questions that
arise include:
What effect will Con¬
gressional action have
our
objectives of world
peace
tranquillity.
on
the
Or, will it
to
more
to be
serve
Initially, the
1960
objective:
"To
side
liberty
with
promote strength and
and opportunity."
The President's message was
lenge of highest
purpose
a
security,
side
by
chal¬
new
serving
prevent
peace,
war
dimension."
he said "we seek to
this
do
we
tain
vide
of
a
a
these skills.
We
must
.
our
is derived from
have supported
allies, whom we
through the Mutual
for
new
Leverett Saltonstall
budget despite the
spending and for tax cuts, which
is almost traditional.
on
the economy.
f
^
We
recognize, of course, that higher costs, today, are
not solely the result of inflation.
Ever-greater public
demand for "magic," push-button, automatic, labor-per¬
forming gadgets in houses, cars, offices—wherever people
work, play and live—also contributes to higher prices.
Economic Factors Affecting the 1959 Outlook
Despite inflation, scattered spots of unemployment and
business lags, and other troubles, however, we can look
forward to increased industrial output, stepped-up busi¬
ness activity, more consumer buying, a "back-to-work"
movement that will diminish but not completely elimi¬
nate unemployment: all in all, a brighter year ahead.
In summation, the outlook is that 1959 promises steady
economic improvement, barring, of course., unforeseen
calamity at home and abroad.
F. W. ACKERMAN
President, The Greyhound Corporation
There's
son's
a
widow
in
Eugene, Oregon, who visits her
family in San Francisco
month.. She travels
every
by bus.
optometrist in Rockford, Illinois, gets regular ship¬
ments of lenses by bus from his dis¬
tributor in Chicago.
mmmi
•?y
A high school in Birmingham, Ala¬
bama, charters buses for its football
team and band during the Fall.
And a retired couple visited the
Greyhound travel bureau in New
York last week to plan their three-
business
more
investments
will
'
Congress gets too free-spending,
These
people and many others,
report the future of the
best
likely
"hedge"
;
•
we can
By comparison, buses now carry 2*4 million pas¬
sengers; rails IV2 million; and airlines 1% million.
In
fact, Greyhound alone—operating coast-to-coast, borderto-border over a 100,000 mile route — last year moved
130 million passengers a total of 10 billion passenger
miles.
Greyhound's Scenicruiser Service and regular
buses
expect that
than
traveled
over
million miles
a
The
outlook
for
half-a-billion
a
day.
this
miles
in
1958—more
j
.
bus
exciting. Daily
intercity buses for
transportation as - railroads abandon their passengercarrying roles. As cities get closer by air, airports get
farther away from cities. Even now Greyhound provides
more
communities
must
depend
on
heart-of-town to heart-of-town service that matches
surpasses
air in some areas.
be moved
even
farther away from downtown; and super¬
highways, opening - or under construction, will substan¬
lion
ber
National
Product—will—as
dependent
upon our
it
should—remain
largely
private enterprise system.
Where
are
some
action which may
service
is
provided
by
transportation, buses furnish four
of
arrivals
and
a
or
1 I
competing form jof
five times the
num¬
departures, and at hours that suit
public convenience.
Buses,
will
too,
tests will be
the
Congressional Action Affecting Economy
What
or
Due to jets, airports wjll
tially shorten bus running times between cities.
outlay—flows back into economic channels for the
purchase of goods, services, payrolls and other expendi¬
tures. However, the real wealth of the nation—its Gross
.
business is
a wary eye On the veto threat.
', ■
recognize that Government expenditures play an
important, though not top, role in our economy. A sizable
portion—estimated at two-thirds of the current $80 bil¬
We
Security Program. Berlin, the Near
East, and the Far
East are areas in which we must
continue to be alert to
the ever-present danger of Communist
aggression
TTie President's second thesis that
"the material foun¬
dation of our national safety is a
strong and expanding
economy" rests squarely on the shoulders of
Congress.
The President will submit a balanced
many pressures
The task will be extremely difficult. Even if accom¬
plished initially, subsequent approval of supplemental
appropriations for departments of government to "round
in committees—with
a
deterrent strength
our
Wiley
Generally speaking, however, multi-billion dollar legis¬
lative proposals dropped into the;
hopper—perhaps some
as a result of
campaign promises—may well be reduced
i
In the effort to preserve
peace,
great part of
Alexander
President Eisenhower—as promised—will wield the veto.
that will pro¬
balanced defense over a
long
adverse effect
transport.
President
billion—remain balanced?
If
main¬
"
Budget for
by
against inflation of the future.
level of effort
period into the future.
Federal
recommended
Eisenhower—amounting to about $77
then
must be
strong in the skills of defense and
develop the hardware to make best
use
Federal Budget
new
attempt to decrease, inflationary pressures, for example,
at any place and in any
To
—
of
the
spending policies will, of course,
have repercussions elsewhere in the
economy. If it ap¬
pears that Congressional action will increase, rather than
gress and to the people.
About his first thesis, that of
pre¬
Inflation—A Thorn in Our Economic Side
Unfortunately, inflation will continue to be a "thorn
in our economic side." An all-out attack is continuously
necessary against this thief that steals away the value
of our dollars, diminishes savings, and generally has an
among
Congress is faced
out" the economic
year,
The scope of federal
to the Con¬
The 86th Congress, during its deliberation, will need to
carefully review our trade policies to improve, as pos¬
sible, our trading position. While there is a real need to
keep a watchful eye on the impact of foreign competition
on domestic
industries, we must, at the same time, en¬
courage trade with nations on a mutually beneficial basis.
intercity bus industry. They are
the millions that rely on
Greyhound and other bus companies
to get them where they want to go—
safely, comfortably, and on-time. To
JK. W. Ackerman
them, bus travel is a necessity.
Today there are some 25,000 buses
operated by 1,700 intercity bus companies. They rack
up 1.2 billion bus miles and carry 30% of all intercity
passengers, excluding private car travel. There are 40,000 communities where bus is the only form of public
stabilizing
a
participation in programs
for fiscal year 1960. In this
role, the
Congress will be setting an example
Size
dynamic State of the Union Message, President
Eisenhower outlined three fundamentals on which he
expects Congress to concentrate in support of his basic
munist bloc.
could
inflation?
factor?
Will
a
growing challenges
Euro¬
Com¬
from increased competition from our allies; from
market—a powerful economic force; and from the
month bus tour of the United States.
—good or bad—for the economy.
In
as
Economy
on
particularly the temperature of the
well as possible brush fire wars—will con¬
—
tinue to affect the national economy.
On the economic front, too, we face
econ¬
shot-in-the-arm?
a
acceleration
HON. LEVERETT SALTONSTALL
U. S. Senator from Massachusetts
affairs
"cold war"
.
Will it be
omy?
of Federal
that it brought us closer to
country.
An
with the task of determining the level
and domestic
programs.,
•*
'
is supported, and if Con¬
squarely meets the challenge of the State of the
Union Message, we can face the future with confidence.
show that it
alert to the problems of our times and
World
President's program
to the demands upon it. I
confidently predict that when
the record of the 86th Congress is
finally written it will
was
FHA loan
which
gress
An
our
the
across
our
regress."
instance, Hawaii will almost certainly
30th State; it is important to extend the
we are
or
Effect of World Affairs
overall national welfare and progress,
the President said, "If we do not progress, we shall
For
Airport Construction Act if
(1) housing—including possible change in
interest rates for GI
liberalization of housing regulations;
The
and their hoodlum associates.
challenges.
save
must
proposed areas studied with great restraint if
new
There are, of course, many other important legislative
for
of Federal spending
areas
more
exteriors.
change.
powerful.
Greater
picture windows
on
use
wheels.
New
engines
undergoing
New colors will brighten
of
glass
will
make
buses
Rides will be smoother and
of
the major fields of Congressional
affect the economy? Briefly, a few of
Continued
on
page
26
Volume
189
Number 5814
.
.
.
The Commercial and Financial Chronicle
(421)
i-MW.
MM
liii!
^§®Pi
w®N
:
'v.
■
-
■MB
■Ml
:
Rill
wmm
mmm
Ms.
,,
NMi
MN
w&&Wwmm
S/.f'tffy
Hi*
"So then U.S. Steel invested $770 million in us"
An American
soon
new
.
.
.
be
over
homes
.
baby is born
every
200 million. And
.
.
new
has gone
population
schools and hospitals
not to mention countless
No temporary
eight seconds—11,000
as our
setback
can
.
.
.
every
grows, our
new
day—4,000,000 a year. Our population will
production must
highways to
carry
grow.
We'll need millions of
75 million motor vehicles by 1970
appliances and conveniences that haven't even been invented yet!
stop the growing needs of our population. That's why
United States Steel
for tomorrow's
ahead with expenditures totaling $770 million to provide more and better steels
citizens. This is the
practical
way
that we've demonstrated
our
faith in the future.
USS is
a
registered trademark
United States Steel
25
26
(422)
Continued from page
and
quieter
metals and plastics will reduce the
new
will
is
be
they are many
transportation.
safer and today
even
times safer than other forms of
to continue its rise. Consumer confidence
strong. Studies in depth indicate retail
the overall 4% increase anticipated
expected
'•
sales should match
in the Gross National Product.
;
•
Scenicruiser Service buses have
washrooms, panoramic windows, air suspension ride and
air conditioning. You can board one in New York and
be in Chicago overnight, pausing only occasionally to eat
Now
Another factor is the sound inventory
Greyhound
and stretch.
You
travel
can
by
straight-through
cross-country,
position in most
the effect
service will double within five years.
porate resources needed for growth.. '
indication that the many services of
Greyhound and the intercity bus industry will continue
to provide a contribution daily to the nation's welfare.
Significantly, Greyhound still embraces the simple phi¬
losophy of its founders 45 years ago—"Faith in the future
of highway travel in America."
There
is
Favorable aspects can be found in the labor outlook
in
relation
ADAMS
S.
to
on
employee income
in business,
upturn
coupled with normal
in 1959's total
1958. The best
growth factors, indicates an increase
petroleum demand of at last 4% over
balance
of
product inventories in
peace
tribute
the
to
full
of
One
1959.
most
will
be
sustained gen-*
K. S. Adams
is becom¬
60s?
Corporation
almost
complete,
by general industry during the first quarter of
1959 and the beginning of a long-term period of healthy
economic growth.
Our operating
recovery
budgets
profit
and
projected
sales
and
have been established
accordingly.
'
>
Sun's projections revolve around
goals
the fact that its products, chemicals,
flexographic and. printing inks and
supplies,
textile
resins, industrial',
electric insulations, paints,
waxes,
industrial
finishes
specialties,
construction
and
sold
chiefly
to the
manufacturers of non-durable goods.
/
are
Because of the nature of this
downturn in chemical
Substantial gains
mar¬
ket, the.recovery from the recent re¬
cession by Sun and its competitors
has beeri extremely sharp.
Septem¬
ber, 1958 saw the reversal of the
Norman E. Alexander
were
industry sales.
made in the last quarter of 1953
that 1959 is expected to start with record demand for
chemical products that should continue throughout 1959.
so
For those interested in business
barometers, it is in¬
teresting to note the close relationship of the sales of
ink, one of Sun's major products, to the Gross National
Product.
A
plausible
reason
is the needs of the package
ing industry which was largely responsible for a dou¬
bling of ink sales between 1944 and 1949 and a redou¬
bling between 1949 and 1958. For each of the past five
years, ink sales have hovered around .5% of the GNP,
These sales indicated a general business
upturn which
was
reflected in the upward surge of business in the
final quarter of the year and the
projected 4% general
improvement which would bring the GNP to at least
$460 billion in 1959.
Sun's projections
of several
also based
are
other factors.
on
thorough study
a
Sales of many of our products
depend on the rate of industrial spending for plants and
equipment. As the year turns, this area of economic
activit}' has recovered substantially from the downward
spiral much more quickly than was
generally expected
by most economic prognosticators. Our studies indicate
that plant and equipment
expenditures will reach a
record
annual
rate
of
$33
billion
in
1959.
This
would
hasten complete
recovery for the capital goods industries
which were hit
extremely hard in the recent decline and
consquently increase demand for products on which we
nave
established market position. It is
interesting to
New Orders Indexes now show
real promise
of resumed economic growth.
Studies indicate that
note
an
that
may reach pre-recession peaks by mid
possible
exception
of
fabricated
they
-
metal
1959. with the
products
and
transportation equipment:
Looking at the retail sales prospects for other prod-
per
principal
whole. This is
as a
hour,
man
or
•
From
than
an
for
it will be the latter.
:
.
V'"'
.
brought
and
problem as
long-term
acute prob¬
■
President,
business
a
ago.
the
could
upset
which
the
West
easily
peace
present
now
and mutual assistance must continue
there seems nothing to indicate
lessening of this spending program.
So we must become adjusted to and accept willingly
the price which we must pay for freedom and peaceful
;:v-"'"v
are
year
time
any
of
by
which
and
the
possibility of
To
coexistence.
^ ,/ • ^
considerably brighter
With the sharpest
economic contraction in the past 20 years now a matter
of record, new highs for business activity in 1959 are
confidently predicted in many quar'
"
ters.
Current widespread optimism
is based to a significant degree on
projected developments in building
and general industry, two of Arm¬
strong's major markets.
While the economic evidence points
prospects
Baird
Bruce
any
all
these
burdens the people
yield in good spirit as they
compare their lot from every standpoint with the lot of
other peoples of the world and face up to the American
necessary
of this great country of ours
Arn^trong Cork Company
were
It
1959.
exists
officially.
It might be appropriate to inquire
what are the prospects of a reduction
in the present tax burden. The Gov¬
ernment will obviously have small
chance of a balanced budget so long
as spending for defense preparedness
-
■.
••
•
fore
the
to
situation
at
state
a
T
•
commerce
prosperous
be
Berlin
;
■
appears
prudent, however, to dis-^
count this by the effect of interna¬
tional complications which are
is it the beginning of the Golden
C. J. BACKSTRAND
'
/..
•
big fields of
our
soundly
a
would
slowing of the wage-price,
a
now
but
in most of
is
present indications, Sun's management believes
today than they
The management of Sun
anticipating
is
a
We believe the inflationary trend
during 1959 by increased
in 1928-29,
r
Chemical
Sun's
be
to
Time will tell.
recovery
ALEXANDER
history.
brief
unpleasant incident in the
histoiy of the nation's economy. The stage seems set
from the standpoint of wholesome and healthful activities
slow inventory buildup rather than rush buying,,
and general price stability.
The big question remains:
Is the 1959-60 era going to be a repeat of the inflationary
Sun Chemical Corporation
now
Chemical
been
a
General
The recession is
which Sun
on
have
to
somewhat
restrained
be
spiral,
of the most persistent prob¬
our
economy.
Restraint of inflationary forces
such as government expenditures,' inefficient lousinessoperations and unwarranted wage increases is essential
to avoid strangling of our nation's economy.
E.
continues
that of industry
as
production
one
lems of
NOEMAN
On the national level the recession of 1953
.
will
ing
President,
the
lem in the year ahead.
needed. Succeeding
widely varying price cuts, affecting
nearly half the nation's crude oil
production, have reduced crude
prices established two years ago.
more
are
threat to economic stability, rather
price increase since 1953,
and
'
'
indicators
stability.
BAIRD
Washington, D. C.
„
bringing runaway produccontrol and increasing the productivity
This increased productivity per man hour
reflected
in corporate profits and
financial
Inflation
although badly
more
BRUCE
President, National Savings and Trust Company,
hour.
per man
well
Inflation
areas.
should rise
However, the number of unemployed
non-agricultural industries, may remain at around 4,000,000 for the time being, a figure well above the prerecession level.
This is the result of the necessary job
its products.
There has been
i
most
in
try.
eral crude
in
during the year.
pressing problems is that for years
it has not received enough value for
no
involves gearing up to take full advantage of the
opportunities which lie immediately ahead, while avoid¬
ing the excesses that are born of boom periods. During
1959 intensive scrutiny of costs and vigorous
investiga-;
tion and cultivation of markets will again be in order
as companies lay plans to attain their share of the growth
that is widely predicted for the next decade.
Summing up, the man¬
agement looks for economic gains in most of the mar¬
kets it serves, the construction, printing and publishing,
packaging, electrical, chemical, petroleum, aircraft and
missile industries, and improvement in the textile indus¬
This should
industry's
the
anticipated
recovery
1959.
year
on cor¬
,
Studies indicate that employment generally
having- weathered a short but
storm, faces another formidable chalThe task that confronts all of us this
basing its 1959 operative plans.
for more satis¬
relationships in
improve prospects
factory cost-price
drain
'
major issues settled, it is expected that labor
for at least the first half of the' year - will con¬
These
relation to demands in several years
existed at year-end 1958.
as a
business,
economic
lenge in
With
tioh costs under
recent
severe
accomplished by industry in
Chairman, Phillips Petroleum Company
The
well
as
and
weie
■■■■?'■ American
the
problem of steadily increasing costs..
During 1958, several industries were plagued by strikes,
which are harmful to the general economy because of,
every
K.
to give a
expected
Of course, a more leisurely
is to travel during the day and stop off at previ¬
ously-arranged hotels at night.
Greyhound's fastest-growing service is the carrying
of package express shipments. It is expected that this
Greyhound, dozing en route.
way
-
Corrections have been made and
shipments are now generally being made from produc¬
tion and not from stock. Slight accumulations in inven¬
manufacturing areas.
tory to support increased sales are
further boost to the 1959 economy.
rock-bottom inventories in many
severely depressed in 1958,' including
machinery, office equipment and consume;* durable
goods industries, spell expanding opportunities for in¬
dustrial specialties designed to cut production line costs
and improve quality of the end product.
The packaging industry, which never broke stride in
1958, is expected to continue its steady growth this year,
more and more companies are recognizing the
urgency,
not only of offering the customer the product he wants
where he expect to find it, but also of improving the
attractiveness and convenience of the package.
that
areas
the
very
appears
weight of buses.
Buses
Rising output
ucts, we naturally expect consumer buying to continue
to follow the course of disposable personal income, which
24
f
abhorrence
of inflation
the
as
force
that
subvert
would
the basic institutions of America.
LESLIE
O.
BARNES
.
to
expansion
in
the
dollar
volume
conditions
boom
tions
facilities
to
made
in
the
tudes
and
spending
key
seek
unrealistic
wage
C. J. Backstrand
on
an
the
increases
in
several
employment, produc¬
current business
the production line if it is to achieve profitable
growth.
The building industry is likely to provide real strength
for the general economy
in
1959.
Expectations
the dollar volume of all construction will reach
level this year.
a
series
of
type
air
are
a
New home building has been increasing
in the past few months, and the first half of this year
should witness activity at about the rate attained in
recent months.
Thereafter, the outlook is dimmed by
prospective mortgage money limitations. Other areas of
strength include commercial, institutional and school
building, increases in which should more than offset a
projected decline in plant construction. An accelerating
pace of residential and commercial repair and moderni¬
zation can also be expected.
Anticipated building market developments suggest a
substantial demand for a wide variety of building ma¬
terials and flooring products and particularly for those
items that offer economy of installation and maintenance
as"well as distinctive design.
Airlines.
the
Forty
involved
previously
of
com¬
served
by
In 16 cities, a trunk car¬
replaced by
was
Airline.
The
Local Service
a
remaining 29
included
larger cities served by one or more
airlines.
In view of the fact that
of these
decisions
Leslie
majority
a
in the
came
part of 1958 and three
-of
O.
Barnes
latter
of tne "Press Release" type
new services
were
decision, the full implementation of these
has been carried
The
over
into 1959.
balance of the Civil
investigations, which
cover
Aeronautics Board's regional
the Middle West and Eastern
part of the
country, will probably
sively through 1959 and 1960.
be decided progres¬
These
proceedings have been characterized by an in¬
creasing number of larger cities seeking local air serv¬
ices for their short-haul and commuter air service needs
and a readiness on the part of many cities to
yield trunk
certification for
a
line service.
that
record
not
airline.
rier
awarded
were
certifications
munities
consumer atti¬
modest rise in
picture yields at "least two key
conclusions, namely, that a simple projection of the
recent recovery pattern is not supported by the facts
and that, since the individual company cannot rely on
being swept forward by a new business boom, it must,
depend on its own resourcefulness in the market place
and
this
for
Service
.these
Analysis of these and other fundamental considerations
the
need
Local
Resistance on the part of responsible
managements concerned with the longer-range implica¬
in
the Civil Aerq-
year
10
certifications
industries.
tions could, of course, result in lost
tion and income.
During the last
tional
anticipations indicate only a
for goods and services during
to
year
service throughout the country.
In
these
decisions
85
additional
coming
months.
Finally, the economic and political climate is
such that the leaders of organized labor may be em¬
boldened
cant
Regional Local Service Pro¬
ceedings set up to determine addi¬
past
thr^e years. Secondly, recent surveys of
Inc.
fifty-nine will probably be the most signifi¬
for the Local Service Airlines since the cer¬
tification of this group of air carriers by the Civil Aero¬
nautics Board in the latter part of the nineteen forties.
of
is not imminent.
Perhaps the most important of these
is the existence of adequate, and in
some instances, excessive, productive
capacity.
Indeed, another year or
two may be required for many indus¬
tries fully to digest the huge addi¬
Airlines,
Nineteen
nautics Board decided five of
of the nation's business during 1959,
several factors suggest that a return
of
President, Allegheny
more
effective and
useful Local Air¬
•*
The
haul
increasing emphasis of the trunk airlines on longoperations, as dictated by the recent competitive
certifications established between major markets
by the
Civil Aeronautics Board and the economics of the'
new
aircraft to be placed in service by the trunk carriers dur¬
ing the next several years, will undoubtedly incline an
increasing number of larger intermediate
to
the
Local
Service
Airlines
for
their
cities
to
regional
look
inter¬
city air services.
Concurrent
ings,
the
with
Civil
the
development
at
these
should
points
evaluation
Regional Local Service Proceed¬
Aeronautics
cities
95
should
retain
lead
to
Board
is
reassessing traffic
determine
to
their
a
whether
certification.
number
of
or
not
This
re-
suspensions
Continued
at
on page 28
v
*
Volume
189
Number
5814
.
.
.
The Commercial and Financial Chronicle
the
investment bankers of New York,
government oil agency.
The
drilling program will be financed
by Loeb Rhoades, but carried out
by a joint committee comprised
Jan. 19 that drilling
of representatives of both parties.
To Drill in
Carl
M.
announced
has
an
been
Loeb,
on
Argentina
Rhoades
initiated
on
&
Co.,
the first of
estimated sixty or more wells
to be drilled in tne Menuoza area
of
(423)
Argentina under
phase of its contract
the initial
with YPF,
The first two
drilling
rigs to be employed are already
in Mendoza.
The remaining five
will reach Argentina in the imme¬
diate future.
Multiply the
cans you see
of the output
buy in
of
cans.
Fed. Lead Banks Offer
>;
$100,000,000 of 4%%
due March 20, 1969, both
here by 2 billion—and it still falls short
more
than
40 billion cans—26 billion of which contain foods of almost every
imaginable variety.
and
bonds
will
be
cans
New
new
bonds
dated
The
redeem
offering
issues
through
John
the
T.
are
a
made.
both electrolytic and hot-dipped tin plate
.
.
.
NATIONAL
of
is
being
made
130
William
term
makes National Steel the nation's largest inde¬
of this material.
just
one
which National Steel
of
many
-
quality steels and steel products in
specializes. Another National Steel specialty
industry
through its five major divisions: Weirton Steel Company, Great
Lakes Steel
Corporation, Stran-Steel Corporation, Enamelstrip
Corporation, The Hanna Furnace Corporation.
STEEL CORPORATION,
with the assist¬
dealer
and
will
be
used
$140,000,000 of bonds
to
ma¬
borowings, and for lending
and its output
Tin plate is
proceeds
operations.
St.,
pendent
source
City,
nationwide
turing Feb. 2,1959, to repay short-
Banks' fiscal agent,
Knox,
a
banker group.
2, 1959.
The
York
ance
the
is service. A look-ahead service dedicated to all American
Through its Weirton Steel Company division, National Steel is
Weirton produces
100%
at
3%% bonds due Feb. 1,1960,
and
it takes ea<fh year to pack the myriad products we
leading supplier of the tin plate from which
Feb.
fered publicly on Jan. 20 $89,000,-
The actual yearly total in the U.S. alone:
offered
consolidated
The 12 Federal Land Banks of¬
seven
>
being
4%s of 1969 at 98xk%. These
$189,000,000 Bonds
000 of
The 3%s of 1960 are
non-callable.
27
GRANT BUILDING, PITTSBURGH, PA.
28
The Commercial and Financial Chronicle
(424)
Continued from page
Brunswick's
26
;
i
anticipating
unproductive points resulting in a substantial improve¬
ment
economics
the
in
Local Service
the
of
Airlines.
mid-1958, only three of the Local Service Air¬
Until
lines—Allegheny, Pacific and Mohawk—provided serv¬
ice with aircraft larger than the DC-3. West Coast and
Piedmont Airlines inaugurated services with F-27 air-1
part of 1958 and three other Local
Service Airlines—Bonanza, North Central and Ozark—
craft
in
have
latter
the
ordered
and
new
larger
aircraft
ucts in 1959.
With
Equipment Division is, therefore,
good increase in demand for its prod¬
>/;;
V;;-.
/TV
■
.
common market and foreign ex¬
stabilizing, Brunswick's International Division
and our various foreign subsidiaries are moving forward
on all fronts in an aggressive fashion.
third
a
President, R. II. Macy & Co., Inc.
I
would
say
that the outlook is good for both short-
and long-term prospects. I
of business is small in relation to our total,
Air Services
accept the premise that the spending
of the American family—the
department
being used more broadly each year by manufacturers of
in 1959 and eight of the 13
Local Service Airlines oper¬
ating equipment larger and more modern than the DC-3,
it is evident this segment of the industry has come of
age and will be of increasing importance to the national
air transport system.
B. E. BENSINGER
The
summary,
which had
a
is in
BASSETT
Brunswick-Balke-Collender
is
Company
in
President, Calumet & Hecla, Inc.
position of serving two
that are expanding
steadily — recreation and education.
For 1959, we anticipate a continua¬
tion of the growth trend in these
fields and consequently a very favor¬
of activity
closely
A
we pointed out that further declines
non-ferrous metal products could be qxpected during the first half of 1958.
Sales of copper, brass and aluminum
products are currently about 30%
higher than during the low months
of last Spring. For the whole year
ago
year
in shipments of
recreation,
our
interests are in¬
Bowling
.'///✓
/,
of 1959 we expect that brass mill
shipments will be in the range of
15% higher than 1958.
door and outdoor activities.
is
principal interest and this has
one of the strongest growth trends of
all major public activities.
Bowling
our
now
The
recent
trend
of
increasing
shipments of copper, brass and alu¬
minum
products has been due to
three major causes:
(1) Customers have shifted from
actively reducing inventories (first
half of 1958) to a position of ba'
ancing current purchases and sales,
thus holding inventories nearly con¬
counts more than 22 million ac-
tice
participants and the number is
increasing each year by about 12%
to
B.
E.
Bensinger
Added to the numerical in¬
14%.
is
crease
a
trend toward
fre¬
more
quent play by individual bowlers and
demand for
more
facilities, equipment and supplies.
bowling continues to expand under
Horace
Y.
Bassett
It is significant that
In 1958 when most other industries
adverse conditions.
in our general economy, the
bowling business was excellent. Many new lanes were
installed. Of these, Brunswick supplied the major pro¬
portion, and this trend is continuing into 1959. Our back¬
ing of orders for new lanes at the end of 1958 was higher
than at the end of 1957 so that we can anticipate higher
the
reflected
recession
volume in this
in the year
important category of our business than
just passed.
of the automatic
Introduction
pinsetter has added to
the growth trend of
bowling. The demand for pinsetters
derives, in part, from the conversion of old establish¬
ments to the modern automated game. But the combina¬
tion of demand
from
new
establishments and from the
modernization program is a very powerful force and our
orders for Brunswick pinsetters at the year-end were at
a
very
high level.
major participants in this game
only in the past few years and the potential is very great.
Brunswick is sponsoring a national TV program to en¬
courage women to bowl.
The construction in shopping
centers of recreation units centering around
bright, at¬
bowling establishments
bowling feasible and attractive as never before
for women. Air conditioning alone can and does extend
the bowling season even in the hot climates, where older
tradition virtually closed down bowling centers for a
period of three months. Moreover, there are substantial
areas
of the country, nobably New England and the
Southern States, where the "ten-pin" game is just be¬
ginning to take hold. If we apply to these areas the ratio
of population to bowling lanes which exists in the Middle
West, it is easy to foresee a demand for bowling equip¬
and
stant. Customers of the above indus¬
tries appear to feel that for the time
being mill products
will be available in future months as needed. There
is,
yet,
as
tial
air
conditioned
makes
ment that will tax
production capacity for years to
come.
subsidiary, Mac Gregor Sport Products, Inc., sup¬
plies equipment for outdoor recreational activities such
as golf,
baseball, football, tennis and other sports. In
1958 this phase of our business forged ahead against the
deterrent of some unemployment and a drop in personal
income. Now that the national economy is resuming its
upward trend, we foresee an acceleration in the longterm growth trend in our sporting goods business.
Its
future is bright indeed.
As to
education,
everyone seriously interested in the
country realizes the great shortage of ade¬
quate and modern school facilities. The high birth rate
our
will make this situation
increasingly acute.
improve the quality of our education,
to the fact that
a
very
large part of
is obsolete in terms of modern
we
our
If
we are
to
must face up
education plant
teaching techniques. The
demand for adequate school equipment is sure to mount
as
the pressure for new and better facilities forces
mu¬
nicipal and state authorities to meet their obligations to
the public.
Recently
facility
for
school
has
opened
furniture
in
a
new
Kalamazoo,
tory in the country and should keep
ahead of the parade from
point of view.
brand
production
Michigan.
an
us
for years to
come
engineering and productive
It is interesting to note that this school
plant is tooled up for the introduction of
new
significant increase in residen¬
a
line of pupil seating and cabinets for 1959.
upon
consumer
a
good
one
and
attitudes,
responds
promptly to changes in gen¬
business
conditions.
With
the
headed into a business up¬
the prospect for 1959 looks
economy
swing,
for retailers.
the economic recovery offers increased oppor¬
tunities for business, it also revives the danger of more
inflation. During the past decade, inflation has imposed
a
heavy burden
many groups. The retail industry has
constantly increasing costs, and lower
profit margins. All elements in the economy have a
common
interest in combating inflation. This calls for
sound economic practice, by government and
business,
and restraint by all.
on
felt the squeeze of
I believe that
during the forthcoming year department
management will devote much attention to prob¬
lems created by the rapid expansion of branch stores.
With an increasing share of our business and profits de¬
store
rived from branch store
of
profit improvement
efficient methods
operations, an important avenue
in the development of more
servicing of
is
of merchandise flow and
these branches.
Important developments in electronic data processing
on the horizon lor retailing. Electronics will play an
are
important role as an aid to retailers in solving many of
their record-keeping problems and to meet their needs
prompt analytical information. The development
problems, which are quite formidable, are being gradu¬
ally overcome. With the continuing tightness of the
clerical labor market, the possibilities from such equip¬
ment loom large.
for
construction.
Assuming
that
1959 will
be
more
a
favorable
year
for automobile sales than
1958, and that manufacturers,
will
continue
to
develop
further confidence in economic recovery, a
continuing rise
in sales of goods fabricated from
copper, its alloys, and
aluminum can be expected. However, a boom in these
wholesalers
and
retailers
and
other
1955
proportions is unlikely. A continuing upward trend
non-ferrous
metals
industries
of
1949
and
a renewal of capital
expendi¬
by business. This would provide, possibly by late
1959 or early 1960, an additional stimulus to non-ferrous
tures
metals.
We look for
stability in U.S. and world
ESKIL
near future. Demand for
copper by mills and
foundries in the United States and Canada will
probably
continue at the improved level reached in late 1958.
Some
easing
The
The year
I.
BJORK
Chairman
of
the
Board,
Light & Coke
Peoples Gas
1958
was one
/
Company
of continued expansion of facil¬
ities of the Peoples Gas System to better serve the needs
of the market area.
The Chicago and other midwest
served by the system began receiving additional
supplies of natural gas last December
as the result of a $65,000,000 expan¬
sion project of a subsidiary.
areas
This project of Natural
Gas Pipe¬
of America, one of
long-distance pipeline subsid¬
line
Company
two
iaries, added 185 million cubic feet
day to its delivery capac¬
of gas per
copper mar¬
kets in the
of
European demand is probable during
1959, but this trend should be reversed
later in the year. By the second half of 1959
it may well
This amount increases Natural
one-third.
The project included construction
of 513 miles of loop-line on five sec¬
ity.
Gas Pipeline's capacity by
the first half of
tions of the dual facilities of Natural
be
and
clear that world
consumption of refined copper will
have moved into a range
averaging 260,000 to 275,000
tons per month as reported
by the Copper Institute. This
will represent a higher level than reached in
previous
Gas Pipeline between
Fritch, Texas,
its northern terminus at
Joliet,
Illinois.
Tne
new
looping
increases
Eskil
the
I.
Bjork
daily aggregate pipeline gas delivery
peacetime economic recoveries. The world's
capacity to
new high levels
capacity of the Peoples Gas System from one billion 84
produce refined copper will also reach
million
in
1,000 Btu gas.
Peoples Gas will obtain about 72 million cubic feet of
1959.
Demand for forest products,
including lumber, hard¬
plywood and dimension stock has improved ma¬
wood
terially
levels
over
trend in
total
of
early
construction
in
1958.
1959
A
slightly
extend
could
rising
recent
gains. However, the top may have been reached on hous¬
ing starts, for the time being. Because of this, and be¬
cause
pect
of
increasing foreign competition,
that
hardwood
plywood
we
shipments
do not
will
ex¬
increase
further and may decline by the second half of the
year.
In summary, differences between the
recovery of 1959
and
that
of
1955
can
be
parisons. The
1955
mobiles, other
consumer
ventories,
and
pointed out by certain
recovery
com¬
dramatic, with auto¬
was
durables, housing, business in¬
plant and
equipment
outlays
all
mov¬
ing sharply upward together. These factors contributed
to
greatly stimulating sales of non-ferrous metals and
products and forest products. The present recovery, to
date, has been based largely on a slowly rising trend
of
Brunswick
This unquestionably is the most modern furniture fac¬
furniture
a
industry, being
our
dependent
1957.
While
(3) In the case of copper and brass items, customers
bought in anticipation of copper price increases which
were effected in
June, July and October.
Our
welfare of
"inventory fever."
no
There has been
(2)
in final sales will lead to
Women have become
tractive
fabri¬
of
incomes
like
their
cation is considerably improved over a year ago at this
time.
able reflection in our business.
In
non-ferrous metals and
for
outlook
The
an
enviable
areas
The
periods
of sales in
rather
Wheelock H. Bingham
and its outlook for '59.
The
cor¬
eral
H. Y.
"variety" of industries, it
might well be best to discuss the business of Brunswick
a
will
been well ahead of those for the
trend
President, The Brunswick-Balke-Collender Co,
Because Brunswick
—
responding
excellent year in 1959.
an
customer
Hence, I think I see
good business for department stores
in meeting the expanding needs of
an expanding population.
Currently and for the Fall seasonto-date department store sales have
Brunswick-Balke-Collender Com¬
record year in 1958, is projecting for
With additional plant capacity
acquired last year, we are in a position to meet a higher
demand anticipated for our products.
Continuity of
growth and profit is our watchword. Our prospects in
'59 appear very favorable.
In
store
continue to rise.
aircraft and missiles.
pany,
rea¬
power
but it is im¬
portant and we are pursuing it aggressively. We are now
expanding our plant in Virginia for the purpose. Our
know-how and techniques in plastics and metal are
in 1959.
have this view for two
First, there is the indication of an expanding pop¬
ulation, nationwide, for many years to come. Second, I
sons:
of interest—Defense. The volume
area
Thursday, January 22, 1959
.
WHEELOCK II. BINGHAM
I
the European
change
We have
.
_
operation
for
With the anticipated expansion of Local
School
a very
.
consumer
expenditures,
tacular increase in
a
significant, but not
housing, and
an
business inventories. The fact that there
tors of the economy yet to exert
covery
an
suggests that the recovery
that it may be sustainable well
spec¬
end to liquidation of
are
major
sec¬
impact in this
may
either stall,
through 1960. It is
re¬
or
our
feeling that the dynamic qualities of the American free
enterprise system
recovery
are
of such strength that the present
will carry through 1960.
to
about
one
billion 280
million
cubic feet
of
made it
day from the added supply. This new supply
expansion programs of the system have
possible for Peoples Gas to offer space heating
service
to
gas
per
and other recent
about
50,000
users
in
Chicago
twelve months.
„
in
t;.
the
last
.
Flow gas supplies from pipelines can be augmented
by peak day withdrawals of 500 million cubic feet from
underground storage reservoirs being operated by the
system. An increase in peak day storage withdrawals
from
430
million cubic feet to
the
500
million was
au¬
thorized by the FPC on
Oct. 27, 1958.
Work is underway to further expand underground
storage capacity by the development of the Mt. Simon
formation located below the Galesville sandstone
reser¬
voir presently in
operation at Herscher, Illinois.
During 1958 the Peoples Gas System arranged for a
gross amount of financing approximating $167,229,000
for construction of
expansion projects, refunding shortcorporate purposes. Of this amount,
$63,500,000 was in short-term loans primarily for financ¬
ing of expansion projects.
term loans and other
The remaining $103,729,000 was
permanently financed
through the sale of Peoples Gas capital stock and longterm securities of subsidiaries.
Of those proceeds, $55,000,000 of temporary financing during 1957 and $36,000,000 of 1958 temporary financing were retired.
After giving effect to the
borrowings and the sinking
fund retirements of bonds, the debt in the form of bonds
and
bank
loans
showed
a
net
increase
in
1958
of
$33,750,000.
A
pending expansion project is
a
proposal of Texas
Volume
189
Number 5814
Illinois
Natural
Gas
.
The Commercial and Financial Chronicle
.
.
Pipeline
Company,
second
the
long-distance pipeline of the Peoples Gas System to
increase its daily delivery capacity by 20 million cubic
feet of gas.
This project, estimated to cost about $4,000,-,
additional
engine of 2,000 horsepower capacity at each
000, would consist of the installation of one
compressor
of
eight compressor stations.
addition, Chicago District Pipeline Company, an¬
other subsidiary, has pending before the FPC a proposal
to construct another major gas line between Joliet and
In
Chicago.
In addition to these
pending projects subsidiary
com¬
panies will continue their efforts in 1959 to acquire addi¬
tional gas supplies in order to make more of this fuel
available to
Last
customers.
-(425)
is planned
with negotiations currently underway with a
oil company; not to supplant their own credit
card, but to supplement and bring an increased 30-40%
is increasingly obvious that
the modern businessman, it
his
personal credit must be clearly established before he
is given access to those 20,000 places of business which
have accepted as much as $25,000 on a single evening's
charge!
credit card business is, in
However, the
major
more
effect, simply
during
ever-widening array of goods and services
if it expects to remain in the vanguard of America's
expanding economy.
offer
■To
recently
Sheraton
the
credit
All-purpose
year.
four-company explora¬
tion and development group in which Peoples Produc¬
tion owns a 25% interest. Also during the past year the
group completed drilling activities to bring to twelve
the number of gas and oil wells completed by the group
since it began operations in 1954.
,
fReversal in December of the Memphis decision by the
United States Supreme Court restoring the traditional
In
the
that
consummated a transaction with the 50-hotel
chain, largest on the North American conti¬
two
million
with
figure
overall
an
Continued
needs
of the industry in its attempts to
consuming public.
hooker
GROWING
A
FOR
FUTURE
in
owned with Foote Mineral Company,
Consolidation with Shea Chemical
BOULDIN
decline
new
Corpora¬
generally
again
were at an all-time high for the year.
The
of power needs in the company's service area
again is at the rate experienced the
past several years—a rate which re¬
sulted in approximately doubling the
company's generating capacity in the
10-year period just passed.
of
the
1958
felt to
course,
recession
some
The ef¬
of
were,
in
extent
with
plant about to begin operations.
tion enlarges Hooker's base in phosphorus
business
and
Chemicals
New
chemicals—expansions elsewhere.
Plastics—introduced
successfully during the year provide addi¬
the first half of 1958, the company's gross and net reve¬
fects
In Canada—First full year
of operation for
Hooker Chemicals Limited, Canada's
chlorine-caustic soda plant west
tional
penetration into growing markets.
only
Center—$3,500,000 labora¬
Hooker Research
of Rockies.
design, to be oc-
tory of the most advanced
cupied early in 1959, planned for
Entry into Chemicals for Rocket and Missile
needed—our investment in the future.
as
Inc., jointly
HEF,
Propellants—Through
in
some
the
were not severe as
other sections of the nation.
decline
in general business ac¬
during the first half of 1958
did not change our long range plans.
On Jan. 1, 1959, Alabama Power
Company had under construction or
authorized hydro and steam electric
REVIEW
HIGHLIGHT
tivity
generating
Combining Hooker and Shea Fiscal Years Ended November 30
Net
exceeded
that
of
6,672,173
3,544,799
4,512,024
34,148,990
31,305,103
....
......
>
2.9 to 1
2.5 to 1
157,080,522
150,547,143
ratio
Gross plant
and equipment
.
96,762,326
96,921,445
Long-term debt
40,500,000
42,395,344
Shareholders'
88,227,904
84,676,581
7,304,576
7,302,262
$1.43
$1.50
Net
plant and equipment
equity
Industrial
1957.
Common shares
employment now exceeds employment in agriculture.
This is a continuing change in balance first established
Many types of industry are reactivating their interest
in establishing new plants in the South. This is indicated
by the kind of inquiries being received with increasing
frequency by our Industrial Development Department.
Dividends per common
share
1.00
1.00
Book value per common
share
11.39
10.91
Detailed Annual
Report, including an 8-year
financial summary of Hooker and companies acquired through consolidation,
Hooker Chemical Corporation, 26 Forty-seventh St., Niagara Falls, N. Y.
request. Please address Secretary,
will be sent on
BLOOMINGDALE
outstanding,
Earnings per common share
in 1957.
ALFRED
11,184,197
7,094,639
Working capital
Current
to meet the expand¬
ing needs of existing customers in future years.
Investment of capital in new and expanded industries
1958
10,701,339
..
paid
Earnings retained in business
ities to supply new customers and
in
21,885,536
9,496,265
.
profit
Dividends
ing plants yet to be authorized and for lines and facil¬
Alabama
....$126,325,225
20,135,703
*..*.»♦»
...
Estimated income taxes
does not include additional large investments in generat¬
in
..,..,
Profit before income taxes
total investment of
Bouiain
$129,268,937
10,639,438
Net sales and other income
projects
representing a
$335,000,000 to be
made in these and related projects
over a
10-year period. Among them are the complete
development of the power potential of the Coosa River,
now partially developed, calling for the building of four
new dams and hydro
generating plants and increasing
the height and capacity of one of the three existing
plants; construction of a large hydro-electric dam and
power plant on the Warrior River; installation of gener¬
ating facilities in navigation dams on that river; addi¬
tions to existing steam plants and 50% participation in
the construction of the $150,000,000 Southern Electric
Generating Company steam plant. The overall figure
Walter
1957
1958
President, Diners Club, Inc.
HOOKER
The
all-purpose credit card system of purchasing
goods and services is perhaps the fastest growing aspect
of American business today.
In January of 1958, the
Diners Club had 500,000 members. During the course of
the year, new members were added
at the rate of 30,000 each month until
total
membership
persons.
Much
of
the
topped
reason
for
this
,
the universal credit card itself.
ginning
in
with a simple charge ac¬
restaurants, today's Diners
Card
holder
York
to
only
Over
can
travel
Plants: Niagara Falls, N. Y. (operations
CHEMICALS
-
'
"
from
"...
,
.
;
(western headquar¬
New York, Philadelphia, Worcester,
Research Laboratories:
Exploratory-Research Center, Grand Island, N. i.
Applied Research—Niagara Falls.
;
..
DUREZ
Plants: North Tonawanda,
PLASTICS
DIVISION
111.; Weehawken, N. J.; Wilmington,
N.Y. (operations headquarters); Kenton,
Spokane, Wash.
,
.
#
.
,
.
Alfred
-
Blooming dale
.
,
Ind. (operations headquarters); Adams, Mass.;
PHOSPHORUS
ship, and rail transportation, major
•
'
golf tournaments, champion ship boxing events, race
track admissions, and we are currently testing a travel
DIVISION
umbia, Tenn.; Dallas, Texas.
Sales Offices: New York (headquarters);
insurance program.
To the consumer,
CANADIAN
.*
the advantage of having
a
:
*'
SUBSIDIARY
billing-for tax records and
JOINTLY OWNED
COMPANIES
ease of purchasing, his all
credit card indicates to merchants that his per¬
approved.
meticulously examined and
With the multiplicity of charges available to
Hooker Chemicals Limited-Plant and
Sales Office: North Vancouver,
British Columbia.
single
"
HEF, Inc.—Plant: Columbus, Miss.; Sales Office: Philadelphia. Solar Salt Company-Plant: Grantsville, Great Salt Lake, Utah;
Sales Office: Salt Lake
City.
Col¬
Jeffersonville; Marysville, Ohio.
Aside from accurate
purpose
sonal credit rating has been
Ohio;
,
Tonawanda (headquarters), Chicago, Detroit, Kenton,
Los Angeles, New York, Philadelphia.
,
Research Laboratories: Exploratory—LeRoy, N. Y.; Applied Research—
North Tonawanda, N. Y.,..
Sales Offices: North
Plants: Jeffersonville,
master charge account is obvious.
Calif.
Bulk Terminals: Chicago,
signature.
In the past year The Diners Club
such diverse services as air,
.
-
-
New -*
added
headquarters); Columbus, Miss.;
Wash.
Mass. (Marble-Nye Company).
-
A
Melbourne, Australia with *
countries honor his
5000 persons
Falls (headquarters), Tacoma
ters), Chicago, Detroit, Los Angeles,
his credit card and a pencil. 20,000 separate establishments '*
in 75
Montague, Mich.; Tacoma,
Sales Offices: Niagara
ex¬
Be-
CORPORATION and subsidiaries
at all
850,000
plosive expansion is attributable to
the ever-expanding applications of
count
CHEMICAL
headquarters located at Niagara Falls, N. Y.t employs approximately
of its facilities in the United States and Canada, comprised of:
with corporate
>/;■'
expansion*4 1 **"
South, but they
The
page
1958
FOR
REPORTS
ACHIEVEMENTS
the gas
serve
President, Alabama Power Company
growth
on
PLASTICS
Expansion and Diversification in the U.S.—
nues
increase
CORPORATION
CHEMICAL
CHEMICALS
procedures of the FPC in regulating rates of interstate
the
should
in¬
in
billings of 40-50%, proof that pioneering and diversion
of services does bear tangible fruit.
coming year, still another giant step forward
pipelines makes it possible for the industry to carry out
prudent expansion projects more expeditiously. Peoples
Gas is happy to see that the high court recognized the
Notwithstanding
cards
a
HOOKER
com¬
The Diners Club expects to have at least two-thirds of
theory into a practice, The Diners Club
,
WALTER
The
mately $500,000,000, and some two million members.
nent, and another with Greyhound Bus Corp.
July initial production of oil from wells in the
Gulf of Mexico was begun by
bright.
are
their income and membership of 1958, to approxi¬
crease
an
translate
1959
bined oil corporations and department stores in the na¬
tion should
do
over
multi-billion dollars in charges
for
to
business into their fold.
The overall prospects for
super-service to the consumer and a super promotion
the establishment. For this reason, it must continue
a
29
30
30
(426)
The Commercial and Financial
Chronicle
posed of
blend of straight whiskies^ and grain neutral
been slipping.
In 1958, straight whiskies
represented about 48% of the total domestic whisky
Continued from page 29
C.
THOMAS
spirits)
BOUSHALL
President, The Bank of Virginia, Richmond, Va.
will be confronted
businesses
Individual
with
bottlings. For 1959, I look for a continued increase in
category, while blended whiskies will continue to
slip.
this
larger
opportunities and greater challenges in 1959. Increased
national product, accompanied by higher total personal
income of the people in America, opens bigger markets
which can only be captured if each
individual business can successfully
meet
of
keener
this
is
We are primarily a straight-whisky company, produc¬
ing and marketing Old Forester Bottled-in-Bond Bour¬
bon and Early Times Kentucky Bourbon.
The company
produces King Blended Whiskey, and imports and
markets Usher's "Green Stripe" Scotch, choice wines and
BOLS liqueurs, friut brandies, gins and vodka.
Except for spirit blends, all other major types of dis¬
also
competitive effort. All
good lor
free
our
enter¬
prise system.
tilled
The collective effort and combined
drive of
Ours
to combat rising Fed¬
increasing
govern¬
mental control, greater advances in
socialism
represented by liberals
ness
program
is
to short-cut the
road to their concept of a possible,
realizable Utopia—is essential.
EDWARD
We had
see
a
sound
economies
This
is
the
direct
been
business
faces
in
On
WALTER E.
that
the
corhe
in
some
has
been
cases
have
been
During
and less fat.
re¬
of
In
to be
a
'
expected
to
„
% '
broader sense, American
acutely
aware
and*
sharply challenged in
......
consistently
high quality, at prices fair to both
buyer and seller, will
do much to assure
business stability and growth.
GEORGE
GARVIN BROWN
President, Brown-Forman Distillers
Corporation
Optimism for 1959, for the nation's
economy, is indi¬
virtually all economic indicators. If these in¬
cated by
dicators
prove
correct, and
climate throughout the
our
new
has a healthy
I would look for con¬
economy
year,
sumption of 222 million gallons of
distilled spirits during the
year. This
be the highest
available, consumption for
will
just
an
excellent
during 1958, this is
Straight whiskies—primarily Bour¬
been
several years,
increasing steadily
same
time that spirit
established
we
a
Western
Sales
office
with
headquarters in Los Angeles to bring about closer rela¬
tionships with the expanding aircraft and missile indus¬
try. in.that area and also to bring the products of our
new divisions more
forcefully to west coast markets.
The
rapidly growing list of products produced in
our
divisions and subsidiaries provide evidence of the
continued progress of our diversification program started
some four years ago.
new
In
Tatnall
Garvin
Brown
more
what
accurate
Krouse,
well
we
now
be
may
the
and
more versatile testing
tools. Tatnall
supply either stock machines capable of
performing a variety of functions or to develop special¬
ized measuring systems to fit individual needs.
Similarly, Nuclear Systems has a complete line of
radiography equipment utilizing Cobalt 60 and other
is prepared to
gamma
radiation
Industry has already recog¬
of radiography over conventional
X-ray procedures and I have no doubt that the demand
nized
sources.
the advantages
these
machines
will
grow.
The
non-contacting gage to
a
thickness
great
value
or
to
newly
density
the
the
developed
measure
continu¬
of materials, should
steel, paper, rubber and
prove
other
Another
is
interesting development in this
growing sales of encapsulated gamma
sources
(com¬
In¬
cluded in this work was a large
multi-walled, precision
welded, stainless steel shield for General Electric's air¬
craft
blinds
recession
due
on
the
intention
our
continue
to
in
the
business
manufacturing stainless steel passenger car equip¬
ment
We are actively seeking business in the subway
of
car
company
A bond issue for/this amount was approved
car-building firm.
far from least,
new
a
Other potential
but
our
International
Division
promoting Budd products throughout the world.
The
responsibilities of this Division have increased tremen¬
dously in recent years and I am confident that our
participation in foreign markets will continue to expand.
E.
F.
BULLARD
Chairman
With
better
a
the
of
Board,
American Petroleum Corporation
difficult year immediately
tic oil and gas
behind it, the domes¬
producing industry can look forward to a
1959. This should be true despite the
in
record
fact that many of the problems
that plagued its activities
still exist and seemingly are
in
1958
no
closer of solution.
and
tion
tinuing
it
fifty-eight
that began in
trend
witnessed
an
*
.
\
:
produc¬
saw
drilling decline again,
a
increasingly
con¬
1956.
severe
domestic producers,
caught between rising costs on one
hand and smaller production volumes
squeeze
and
on
revenues
The
bring
new
on
the other.
will by
solution to
year
about
a
means
no
all
these
problems, but there are bright spots
which the industry can look for¬
ward.
For example, we foresee an
and
nuclear
assembled
io
propulsion
program.
by Budd engineers,
The
was
unit, designed
delivered to the
domestic
in
increase
for
demand
E.
F.
Bullard
5.5%,,
level of 9.5 million barrels daily.
a
Domestic
products,
of
about
production will
benefit from
this
higher de¬
mand, increasing by almost 8% to 7.3 million barrels
daily. This level of production, however, will still leave
a
very substantial excess
producing capacity of about
three million barrels daily.
Drilling should be at slightly higher levels, reflecting
production. We look for 50,000 wells to be
drilled in 1959, among them 11,000 wildcats. These fig¬
the increased
with 48,000 total wells and 10,000 wildcats
closed.
V Imports will continue to be a problem for the domestic
producer. Total crude and products imports will probably
rise by about 21/2%. A decision by the government on
what kind of an imports control program it will main¬
tain is expected early in the year, and this may have
some effect on the picture.
The domestic producing industry has become accus¬
tomed to annual increases in the prices of steel tubular
goods, and 1959 will be no exception. Labor costs may
also increase. In contrast, the producer can expect little
or
no
improvement in crude prices, which during the
past year were subject to widespread downward ad¬
ures
and
have developed or
most-complete and
advanced line of physical testing equipment in the na¬
tion. Modern technology is
continually demanding finer,
acquired
programs.
Geo.
popularity for the past
at the
June,
While many of the activities of Budd's Defense Divi¬
sion are shrouded in the cloak of
security, it is no secret
that the company has done much
prototype design and
manufacture for vital nuclear reactor
spirits industry.
bons—have
.In
for industrial and medical therapeutic
Budd, with its huge protective cave for the storage
and
handling of radioisotopes, can offer radioactive
sources
up to 50,000 curies^ more than any other com¬
mercial supplier.
showing for the distilled
In consumer
com¬
use.
rather
recession
.
Division
1958 year
reaffairm
to
the
Here too, however, there has been
petroleum
radiation
equal the previous
year's total—about 215 million
gal¬
lons.
In view of the fact
that our
nation's economy suffered a
severe
the
This section will
evolve from these basic ideas;
industries.
about
principally to the
heavy electrical
a distinct
pickup in the fourth quarter and we look for consider¬
able improvement in the months ahead.
There seems to be little of a positive nature that can
be said at present about our Railway Division except
of
effect
which may
of
On
We have submitted bids
Company to manufacture
to
ously
presently
department within
new
Aviation
The com¬
of Aero¬
for this
#
responsibility for the engineering, manufacturing,
sales and servicing of automatic welding controls de¬
veloped in our research laboratories and other products
Gammascan,
yearly con¬
sumption of distilled spirits since the
record high of
1946, when consump¬
a
have
for
would
tion reached 231 million
gallons.
the basis of Brown
figures
created
the Electronic Controls Section.
pany,
our
oehooves management to furnish
constructive leadership
to the best of its
ability in such critical areas as labormanagement relations, efficient use of
physical assets, and
the development of executive talents in
top and middle
management. Finally, concentration on the
proven prin¬
ciple of bringing to the consumer products of
also
We
industry must continue
competitive position is being'
many parts of the world.
This
that
Division, Continental
Fibre
.
develop during'a'
.
Systems
speeds.
for
components
Nineteen
Philip W. Scott as Group Viceresponsibility for the operations of four
divisions—Nuclear
supersonic
intercontinental
huge
'"
Corporation, Tatnall Measuring Systems
Krouse Testing Machine Company, the
latter three wholly-owned Budd subsidiaries.
judg¬
replacing "worn
plant and equipment, providing for new capital ex¬
pansion, and returning to investors a fair share of the
be
■
announced, among others, the appointment
A. Boas, Jr., as director of Marketing
Diamond
recovery, management will need to exercise careful
ment in
balancing the requirements for
which can
period of recovery.
we
■*?'<■
of
the recently disclosed B-70, a
bomber essential to the nation's
defense program.
sv
; 5
"
(
Continental Diamond Fibre Corporation has had an
major
we
Herbert
Company
out
earnings
Mr.
Budd
muscle
Bronston
Budd, Jr.
our
'
speed
materials
stresses
American
Pan
year,
high
contract with the Navy's Bureau
establish
production
procedures
^
■■
President with
I believe this to be true
industry generally, and that this
condition will strengthen the
ability
of business to support a continued
recovery trend in 1959. In a period of gradual continued
E.
North
to
is
and the election of Mr.
of
Walter
past
•
1958
In
remedial
more
the
abroad..
more
will enter 1959 with
the
a
to
Last,
took a number of steps
top management and policy
and planning committees. We brought in new people of
proven ability in their respective fields and established
several new outlets to improve marketing and expand
sales of our new products, both in the United States and
closely
controlled
and
marketing methods
sharpened. We, therefore, feel that
we
for
has
of the answers to the prob¬
aircraft manufacturers
and
structures able to
many
and
search
lightweight welded structure.
in
automo¬
our
Motors.
designed to strengthen
taken, spending practices have
under closer surveillance, in¬
ventories
of American
line
"second look" at
efficiency
and
on
missile
in total sales.
benefitted from the high acceptance of the
four-passenger Ford Thunderbird and the Rambler
new
management practices in all parts of
their businesses. As a
result, organi¬
and
profit
a
pany
provide
can
of
their
withstand
econ¬
Edward G.
made
in
bile business for the year despite the drop
divisional management groups in our
viewed
have
the entire
on
we
lems
The company
we look forward to 1959 with
careful optimism. The slow-down of
1957-53 has caused the autonomous
action
im¬
be
should
engine
railway business lies in Brazil and South Africa where
the company has established licensees on the local scene.
In the Union of South Africa, Budd has a 25% interest
next year.
Enterprises, Inc. family,
zation
will
jet
manufacture
to
is
by the voters in the November election.
The increase in disposable in¬
come should be sufficient to support
improved consumer buying well into
businesses, ranging from heavy capital goods to low unit
price consumer items, which compose the Industrial
a
sales
which
1959
feel
$22,000,000.
omy.
Enterprises, Inc.
take
in
stimulating effect
BRONSTON
company to
a
of
automobile
proved
the outlook of the
complex of medium sized
on
to
continues
and
fields, both of which appear promising.
intends to bid on and has high hopes
of obtaining a contract with the City of Philadelphia
for construction of 274 subway cars to cost approximately
inven¬
losses
early
Testing
Reactor
j
currently engaged in a full-scale
development program to produce stainless
stf»u "ontaip^rs for sohd fuel rocket motors.
Through its research program, the Defense Division
has developed techniques for the manufacture of high
heat resisting, stainless steel sandwich structures.
We
The
public acceptance
models to date, I think
new
We
Based
basis
the
the
of
coming 12 months.
President, Industrial
of
control
and
held
we
1959
and
and commuter
minimum.
wrecked.
challenge
labor
tories,
claiming lofty goals "above
seeking to
-'field" candidates and
have
a
By bringing costs into line through
once
greatest
Railway, experienced
careful supervision of direct and in¬
goals,
further drift toward the rocky shbres of
on
which many previous and formerly
control
assure a
decrease in sales volume.
influence legislatures and the Congress. But unless
they
all combine into single purposes and common
1959 will
earn¬
profit for 1958.
Company emerged from the recent economic
slump in excellent financial condition, despite the fact
that our two major divisions, Auto¬
and
National
Commission's
jlm vision
industry.
The Budd
motive
Tins
components
research
severe
greatly improved fourth quarter and
a
ings for that period will
Fnon?v
Thursday, January 22,
.
unsatisfactory year financially,
BUDD, JR.
Thomas C. Boushall
down on the American econ¬
omy is required. Unhappily, there are too many limited
groups in the field with little, if any, agreement among
them for a concerted drive to stop the push, on the
one
hand, and to effect an adequate remedy, on the
other. Pious hope and able expression are of no avail
against a well-founded, relentless campaign that threat¬
ens
a
congressman's re-election and he in turn sees
only fragmented support to carry him back to Wash¬
ington if he has displeased labor.
social
G.
Atomic
.
Station in Idaho.
nautics
President, The Budd Company
push inflation which labor plans to
now
show
or
♦
■.
.
press
are
sales,
1958
highly competitive industry and we must
sight of the basic fact that the consumer is
Too, combined, coordinated and
well-directed resistance to the cost-
politics"
match
1959.
We must produce and market products
that will be attractive and pleasing to the consumer, if
we
hope to take advantage of the upward economic
trends.
'
ways
groups,
either
really the king.
—
Economic
should
a
lose
never
eral"; deficits,
searching for
spirits
sales increases in
some
far better organized busi¬
a
a
have
.
compare
in the year just
justment.
In another area,
the producer faces a continuing har¬
in the rigid utility-type of regulation being
applied to natural gas entering the interstate market.
It is increasingly evident that the sole effects of these
assment
Federal controls
cost of gas
must
are
(1) to add millions of dollars to the
service (an added expense that the consumer
eventually pay); and (2) to delay the expansion of
that
service
who
are
to
the
hundreds
waiting for it. There
of
thousands of customers
are
countless examples of
projects that have been delayed for
as
much
as
several
while producers and pipelines fight their way
through the endless red tape brought about by Federal
regulation. This is a situation that must be resolved for
the good of the nation, if its dependence on energy from
years
natural gas and petroleum is not to be impaired.
Percentage depletion is also under attack, despite its
success in find-
recognized contribution to the industry's
Volume
Number 5814
189
.
.
.
The Commercial and Financial Chronicle
again be substantiated and it will be retained,
i
The new year, therefore, holds both promise and chal¬
lenge for the domestic oil and gas producing industry,
On balance, and assuming the eventual successful solu¬
tion of the several problems facing it, the industry ap¬
black.
If
duction.
•
service to the nation.
less
than
10%
1957's.
below
a
*
v
and
showed a sales increase of better than
increased net profit. During the year, 40
we
operated were affected in varying
an
which
in
'
;
ment tires offers
opened during the year. Four
stores were closed
ket
difficulties
the
present stores.
office will be moved to
larger quarters in a separate building
which is in the process of being re¬
our
G.
B.
v
supply of merchandise will
inventories will be maintained at
at
,
4
Washington,
C.
member
editors
the
see
the recovery.
spend¬
A. E. Carlson
material effect on the
rate and degree of recovery and, as
it looks now, defense will be an important factor and
will contribute to probably a more rapid recovery in
ing will have
a
segments of industry.
control of costs is still
some
The
-
important clement in
an
positions of many companies and the
trend towards doing things automatically will be con¬
tinued at a great rate. As far as the office equipment
the overall profit
in
industry is concerned, more and more emphasis will be
of
its
increasingly to carbon blacks made with oil.
years
15
process,
since the introduction of the
assembling of data over distances in the shortest period
In
the
particularly with
Today, over half of the carbon black
In this
a new
connection, our company recently intro¬
electronic longhand writing machine called
Electro writer,
radio
oil furnace
is.of the oil furnace black
Abroad, the development of oil blacks made pos¬
the postwar construction of carbon black plants
capable
circuits. This is
an
of
stantaneous longhand record
"
trowriter is capable of
operating
over any
.
Wages and salaries
vlion,
are
;
as
expected
to
using
easily
transportable
oil
raw
as
It is
expected that 1959 will see further shifts away from gas
towards
the channel and furnace processes
in holding
and
dependence on oil blacks.
increasing
The carbon black industry
the pressures of
its prices in line in spite of
costs.
calendar
that
to
of
a
small
income
now
billion.
feel
industry
over
that
these devices will fill a
where
both short and long distance
Continued
in manufac-
%
in
plant and
equipment expenditures
is expected. Both exports and imports should rise. No
substantial decline in Federal
'
Local governments
expenditures is expected.
Service industries
will spend more.
will prosper.
Consumer spending will continue to ex¬
Ninety-four per cent of personal income was ex¬
pand.
pended in 1958.
V
•
V.Durable products with the latest index figure standing
145 are expected to show a substantial increase over
at
the
surprisingly low output of 1958. An increase is pro-'
in the machinery index.
Some improvement in
the output of transportation equipment, besides auto; mobiles," is expected.
Furniture and other household
supplies will have an unusually good year.
"The one major category in which a decline may de¬
velop is in farm income and marketings.
v
•'
\It is thought that Tear of inflation has created an
dieted
*
,
i
dollars find
.
unjustifiable demand for
common
stocks, and that
A
;
relatively
new
profit in 1959.
into
industry, that of aircraft and mis-
to add $15 billion to gross national
This industry already has put four satel¬
orbit, sent
lunar probe vehicle 79,000 miles
a
Rising incomes and living standards in Puerto
Rico, and
a
deep desire for better homes have
75 per cent
rise in construction there
led to
capabilities.
proof, termite-proof concrete houses. FHA
home mort gage loans in Puerto Rico have had a
lower foreclosure record than the U. S. average!
just since 1952. Over half of this increase is in
Among its future achievements; hypersonic-
recovery
of orbiting
and
man,
fueled — ballistic
and TV surveillance of earth
atomically
and.other planets.
...
More prosaic, "but
tion
that
603.7
new
million
understandable, is the predic¬
pairs of shoes will be made
1959, about 16.7 million pairs
more
in
than the estimated
a
private housing.
now
$2350—up
Puerto Rico's steadily
over
Puerto Rican family
250
per
cent since
urban
1940! Scores of thousands of farm and
families have bought new
fire-proof, storm¬
expanding economy
opportunities for sound
investment, illustrated by the substantial taxhas
Income of the average
is
more
MM
progressive Puerto Rico
in
into space and has given manned vehicles true supersonic
aircraft— chemically
ifpp
good liorirtdii
siles, is promised
lites
-
more
interest in bonds will be manifested in 1959. •
free
created
many
yields available in the general obligations
its municipalities and
of the Commonwealth,
the
revenue
bonds of its Authorities.
1958 production.
The
bandaged-thumb brigade of do-it-yourself home
will be buying more bandages—and more hard¬
supplies—next year. Retail hardware stores expect
GOVERNMENT
owners
ware
to do 5 to 10%
In
a
more
business in 1959, arid so
short, 1959 shapes
up as a year
good many it could prove to be
a
it
goes.
of opportunity. For
record year as well.
BANK
Fiscal
FOR
DEVELOPMENT
PUERTO
RICO
Agent for the Commonwealth of Puerto Rico
communication
is required.
$3t0
at $358 billion is expected to rise to
increase
desk
definite need in
instantaneous verified
the
'
Some
f
reach
a
with" no
desired number can be connected with each other.
any
This has been
possible through cost-saving improvements
adding machine
auxiliary boxes. All Electrowriters are compatible and
We
has been largely successful
inflating labor and raw material
•
material.
the message. The
$245 billion. Corporate profits,,
$40 billion mark. Personal.
as
like an
in size from that of
self-contained units range
amounting -to around $240 biiT
now
high
go
may
or
single stand¬
telephone circuit. The instrument is used
ard
The total for 1958 is expected
estimated at $465 billion.
wire
communications. The Elec-
operating
to be $439 billion. Industrial production, which is $143
billion at this writing, is expected to go to $150 billion.
.
over
important development in in¬
produces local and remote records of
blacks made by
...
duced
ordinary pencil and pad of paper and instantaneously
sible
•
"production of 84 million tons in 1958. Even Cupid prom¬
ises a big year for jewelers, what with thousands ,of
weddings, postponed because of the recession, taking
place next year, in addition to the regular crop.
The total output of goods and services next year is
of time.
grades have been developed which have
—
automatic processing, but on trans¬
type.
of our editorial
probability of a
,
anticipat¬
the economy
produced in the United States
Our metalworking weekly, "The
new car year.
of factors in
It is apparent that defense
carbon black industry, once the sole
has adjusted to these changed econ¬
historical raw material supply and has
synthetic rubbers.
Iron Age," points to the possibility of the fourth biggest
steel year which would be a 33% increase over estimated
;
expands
turned
BUZBY
D.
Our automotive
number
at this stage of
of natural gas,
omies
Gratifying optimism concerning the prospects for 1959.
business, appears in the forecasts of the editors of our
16 trade and industrial magazines.
<
Practically every business indicator in 1959 will show
a
substantial
increase
over
1958, according to Paul
6 million
to be
seems
inflationary trend, there are
which do not warrant this conslusion
quirements. "The
President, Chilton Company
Wooton,
market
an
communication networks to permit the
gas
superior properties for many uses
board.
.
ing
on
natural
of
the
'
of
mission through
use
this
be
to
not
part of -1959 and into 1960. While the
stock
:
•
•
upswing
placed not only
the
black
v
1958.
by
country,
user
in 1959.
C.
higher level than in 1958,
real
long-term trend is inexorably towards rising gas
prices and increasing demand to fill gas pipeline re¬
a
G.
a
a
over
augmented
the
low level. Aggressive merchandising,^
improved service and convenience to the customer will,
we believe, enable us to set another sales volume record
prices
be at
great magnitude until the latter
As
locations becomes increas¬
ingly hazardous as the population continues to move and
new shopping centers develop.
Greater competition for the sales dollar will keep re¬
tail
rapid
to
market
shipments of the full range of U. S. carbon blacks and
exports continue to account for about-one-quarter of
all carbon black shipments from U. S. plants.
con¬
high
a
level.
The selection of profitable
very
any
be
this
1959
in the coming year.
will be added during the year.
our
a
the
In
ing in the development of foreign carbon black produc¬
tion.
Mere foreign capacity will come into production
In addition to foreign construction,
the growing overseas markets still require substantial
Burrus
modeled. Additional warehouse space
We believe the ample
increasing at
rate. We look at the economy in 1959
expanding demand for carbon black. In some countries
where markets have
grown enough to support local
plants, American technical experience, know-how, and
private venture capital have been instrumental in help¬
The present
tinue and
then
and
black
carbon
be headed for
al¬
mar¬
Rapid development of the automotive transportation
abroad since World War II has resulted in
in
of
1959
though not at any spectacular rate.
It appears the growth will be gradual
in the early stages of the recovery
industry
newly developed shopping
centers.
We believe that these new
retail outlets will not affect the vol¬
ume
in
30%
encoun¬
by, the builders in financing
new shopping centers.
;; Our
expansion program for 1959
includes 20 new large self-service
stores
and
appears to
economy
improvement
but
should
tered
■
rubber
manufacturers.
.permanently. The anticipated expan¬
sion program for 1958 was delayed
of
for
fairly steady
a
slight upturn. The
definite
improved
Thomas D. Cabot
demand for original equipment tires.
The automobile industry is currently
:y;j
estimating a 5,500,000 car year in 1959, an increase of
small, marginal
because
a
in replacement 1ires. To¬
cles
Seven new large self-service stores
were
President, Comptometer Corporation
creasing number of total motor vehi¬
on the road, demand for replace¬
business recession.
degrees by the
use
CARLSON
E.
A.
day, the replacement tire market is
twice that of original equipment tires
for new cars. With a constantly in¬
The year of 1958
;
10%
cities
stabilizing factor was
of demand for carbon
level
black for
Peoples Drugstores, Inc.
•
high
" '
1959.
recession, which began to affect the office equip¬
ment industry in April, 1957, appears to have reached
bottom several months ago and currently shows signs of
most important
BURRUS
R.
President and Chairman of the Board,
nounced in
The
The
*
G.
shipments of carbon black have led to greater use of
less expensive bulk shipments. It is likely that this trend
towards bulk handling will also
become more pro¬
conditions continue to im¬
prove, shipments will be higher than in 1953 and may
be near previous record levels. Demand for carbon black
was well sustained through the early
1958 business recession and industry
shipments for the total year were
business
general
31
turing and through the economies of large-scale pro¬
Recently, labor costs entailed in handling small
4
.1959 is expected to be another good year for carbon
.
to be on the threshold of a new era of growth and
pears
CABOT
President, Godfrey L. Cabot, Inc.
its true effectiveness will
impartially,
and
D.
THOMAS
ing ample reserves of oil and gas over the past 33 years.
I am confident, however, that if depletion is looked at
objectively
(427)
\
"P. O. Box 4591, San Juan, Puerto Rico
37 Wall Street, New
York 5, N. Y.
on
page
32
The Commercial and Financial Chronicle
(428)
32
problem of few import restrictions on products coming
Continued from page 31
HAL
to the U. S.
N.
President, North
A., and many import restrictions in foreign
countries, needs more governmental attention.
CARR
Central Airlines,
during 1958, but net profit remained at
level—the lowest since 1949.
The
the 1957
lation
jobs
million netted by the nation's
up $3 million over 1957,
but only half the 1956 earnings.
The Air Transport Association of
domestic
12
was
of
the
be
solved
blames
nautics Board's
the
Civil
The
fare
—
Alaskan
and
billion
of
ton-miles
173
million,
4.3%
to
ton-miles
48
for
million.
the
an
N.
Hal
designed
Carr
industry,
These figures
1.5%.
up
are
estimate of the last three months of the year.
The local service industry flew 799.5 million passenger
miles,
a 7% increase over 1957. Mail increased 7.8%
1;6 million ton-miles. Express volume went up 5.7%
to 84
million,
Total
to
to
ton-miles amounted
revenue
7.1%.
up
are viewing 1959 as the best
Awards in the Seven States Area case in
year.
December
western
meant
and
significant
expansion
communities,
midwestern
getting air service for the first time.
States
of
service
to
them
of
some
Under the Seven
decision, North Central's system will be increased
to nearly
5,500 route miles in the nine states. Cities
the Route of the Northliners will number
nearly 70.
The CAB is expected to issue a final order in the
on
great
case in 1959, which will mean additional ex¬
pansion in Michigan. If the board follows preliminary
staff recommendations, more than
1,000 route miles will
be added to the system.
The local service industry will continue to add
larger flight equipment to improve service
and
newer
longer hauls.
Convair 340
summer.
about
North
25%
of
longer-haul
moved
to
North
Central
will
newer
the
on
add
five
aircraft to its present 32-plane DC-3 fleet
this spring and
and
other
Initially, the Convairs will
Central's
higher
system,
density
segments
segments.
traffic
as
mainly
serve
the
on
They'll
be
develops.
As North Central
completes its 11th year of scheduled
in February, it maintains its lead over the
other 12 local service
airlines in passengers, air mail and
air express carried.
During 1958, North Central carried
operations
approximately
780,000 revenue passengers, a 15% in¬
1957. The company's Northliners flew
10,revenue miles in 1958.
The airline carried its
crease
over
839,490
three-millionth
lion
ual
operation; the second million during the next two
years
just a year and four months.
and the third million in
Commercial
$7,875,000 in 1957
mercial
With
to
North
Central
from
rose
$9,500,000 in 1958. Anticipated
for 1959
revenues
faster
newer,
for
revenues
and
proved schedules and
"throw
food
Since
approximately $12,800,000.
larger flight equipment, im¬
expanded route pattern, North
Central will again this year establish new
records in the
local service airline
industry.
;
v
sales
the
extent
of
the
1958
slump was greater than
the expected upturn of 1959 could
be more
than mild. Wb arc confident of
a
reasonably good year
for the bolt and nut
industry, and it might be one of
our best.
Lamson & Sessions' mod¬
programs
are
results
showing
do
keep
without
but,
have
our
been
cost reductions
with higher costs,
pace
the
expenditures
made
for
in
see
history, in the
1958, about 25 cents of
packaging materials.
on
will
rise
a
lor
With
that
are
a
continue to be in
of
but
recent
our
of
most
come
in
tures
in
benefits
during 1959.
the
future
are
grame.
metal
more
not
not
be
There
our
new
lose
a
S. Case, Jr.
home-maker, convenience items will
substantial
part
of
our
market.
Our response to this problem is to
make, on our
items that heretofore have been made by
machinery,
other processes.
It will be successful,
able farm units.
.
greater demand.
■
HAROLD
but
the
overall
CHURCHILL
E.
President, Studebaker-Packard Corporation
With
inventories
in
The outlook for Studebaker-Packard in 1959—based on
the current sales success of our new Lark, the recent
upturn in the auto industry and the continuing strong
condition of our national economy—is optimistic.
Our
operations during the last quarter for
balance, with higher disposable
1958
income in 1959, and with Gross National Product at an
Non-durable
higher for the
items
year
as
a
whole,
—the
The vending machine
throw-away packaging materials to improve
industry is using
more
their sales.
All
with
the above
factors
lead
to
us
the
conclusion
that
#
increases in
President, The Yale & Towne Manufacturing Company
Yale & Towne is
looking to a good year in 1959. The
resumption of capital expenditure programs by industry
generally will be felt by us in a substantial rise in our
sales
of
industrial
lift
we
in
expect
our
As
trucks
and
materials
in¬
substantial
a
sales
other
<
view it
we
volume
of
this
tant
advances
made
in
the
the
construction
supplying
producers,
such
mines
we
expect
to
attain
to
further
Studebaker-Packard's
year.
The public acceptance of the Lark during the first 30
days after its introduction on November 14 and the con¬
tinued flow of orders from our expanded dealer organi¬
zation has resulted in a substantial order backlog. From
November 14 to December 14 we sold more cars than in
30-day period since June, 1955, which was a peak
for the Lark and Hawk models has been
our
units
54
to
Thus
work week.
we
cars
will
a
units
70
be
have
This means we
per
as we
gone
from
hour still retaining a 53-hour
go into the first quarter of 1959
turning out approximately 3,700 passenger
week.
There
so
initial output of the new series, we
production at three different inter¬
October 20.
vals since
dams, airports,
systems, and in
industries
us
sales, one must take into consideration the
have stepped up our
expected responding to increases
new
highway and other heavy
as
evaluate
properly
heavy that since
equipment
business, in which Yale & Towne is
developing an important role through
such
past
Demand
heavy duty equipment.
In
enable
strengthen an already enlarged dealer
month.
of
sales
addition of Mercedes-Benz
marketing strides our company has taken and the results
we were able to achieve during the last quarter of the
any
equipment, with particularly impor¬
the
remarkable
organization in 1959.
to
order
In
CHAPMAN
The
products, will
Harold E. Churchill
growth will not only take place in 1959, but it will be
at even a faster pace in the next five to 10 years.
GILBERT W.
for the motorist who pre¬
functional transpor¬
acceptance
of the 1959 Lark series by dealers
and the initial buying of the public
is concrete evidence that our engi¬
neering and styling program, insti¬
tuted two years ago and aimed at a
selective market, proves that we are
on the right track.
Our new line of
passenger cars, trucks and taxicabs,
tation.
The use of paper service items, that is,
plates, cups,
place mats, etc., is not only on the rise at the home level,
but greater expenditures for these products are being
made by institutions, such
as
schools, hospitals, and
more
car
fers economical,
1959.
and
due largely to one thing
that we have a new,
was
fact
smaller
believe, will be
we
in the black.
were
This
expected level of $470-$480 billion, our expectations for
1959 are optimistic.
This can only be compromised if a fight against in¬
flation should bring about a tighter monetary policy.
*
are
a
number of indicators which give us reason
to believe that 1959 will show further progress
baker-Packard.
for Stude¬
For example:
as
and
Gilbert
W.
Chapman
the
highest sales
volume
the
(1) Currently, the Lark and Hawk models are now
sold and serviced by 2,479 dealers throughout the United
States and Canada. We are adding new dealer franchises
each week.
(2) As already indicated there is tangible evidence of
U. S. market for the smaller type foreign
and American cars. In 1957 nearly 300,000 foreign cars
the growing
tightness of mortgage
and smaller American
hospitals,
In 1958, this
of
or
schools,
churches,
money.
Construction
commercial buildings,
are, in total vol¬
retail centers and recreation facilities
Meanwhile, we find ourselves priced out of
foreign
markets, even those without high tariff walls around
them.
are
duction, the latter to be accomplished
fewer, larger, and more profit¬
Housing starts, re¬
Frederick P. Champ
gionally, should be slightly up, and
over-all construction, including road
projects, should exceed the year just closing. In short,
the outlook locally, regionally, and nationally gives more
promise than it did a year ago.
with
looseness
George
pro-
neces¬
both industrial and agricultural pro¬
company's 90-year history.
Housing starts by
year-end, it is believed, will total about 1,200,000 units,
although deviations from this level will reflect the
are
we
We
industry does not face any inventory liquidation
Demand will be good, but with the prospect of
higher wages, cost of materials, and the need for greater
Research and Development programs, selling prices will
likely be competitive to the extent that margins of
profits will be stabilized or slightly lower, although
total profits will be up.
in
danger signals flying for all of us in
fabricating industries.
As our customers make
of their products abroad because
of tariffs or lower
labor rates,
Chandler
In the lock and builders' hardware business of Yale &
as
requir¬
are
our
Towne,
Our expendi¬
will
curtailing
Carl
quarries.
should
large as they have been in the past,
but they still will be
significant as
we
R.
program.
aggregate
building program,
these
and
Regionally, the outlook is for con¬
growth in population and in
year
every
Since the food industry suffered no recession in 1958,
the
profit picture would be less.
referred to
ing the restraints which
sary to control them.
every
even
sewerage and water
During the last quarter of 1958, we
not been getting full benefits
economy
well
above
sures
materials
out
worker and
construction
modernization,
outlook
functioning on a
balanced basis again,
stimulated by the inflationary pres¬
estimating that demand
by approximately 8% in
three jobs being held by
married and doubling in responsibility
these
one
who
women,
as
our
pretty
are
its
national
and continued
national difficulties, the year should
of
disposable
income
was
spent for food. In addition, of the some $72.5 billion
spent for food and beverages, about $6 billion was spent
in
had
from
away" items
-
dollar
are
Unfortunately,
not
FREDERICK P. CHAMP
is for a rising level of busi¬
creeping inflation, which should be
concern of our people,
the Administration, and the incom¬
Wm>
■*
ing Congress. Barring major inter¬
the expansion of its lines of Trojan
tractor shovels, substantial increases
in
reducing expenses, im¬
proving quality, and bettering serv¬
ice.
markets.
tinued
In
crease
so
ernization
home
our
„
The
1959.
now,
CASE, JR.
President, Stockholders
Relations, Inc.
As
in
the principal
and
handling equipment.
expected,
abroad
the impact
be a year
great progress if statesmanship on both government
and
labor-management
levels
combines
to
arrest
inflation.
*'
ness
closely associated
with the food field, population in¬
crease, and the convenience trend,
we are forecasting that the
industry
will enjoy the highest dollar volume
we
are
S.
from
President, Utah Mortgage Loan Corporation
needs.
com¬
an
GEORGE
are
con¬
are
churches.
revenue
passenger Aug. 26. The first mil¬
carried during the
company's first 73/2 years of
was
for
company
1959.
Lakes Area
and
These materials
convenience,
items, and items of spe¬
cially designed packages for individ¬
of
The local service airlines
potential
we
America's
of
consumer
were
now seeing important adverse
high costs structure.
More and
frequently, American goods are being outpriced
in world markets, to say nothing of the rising competi¬
of
more
into packages, such as folding cartons, paper
us
constitute all
on an
1.7 million ton-miles.
material.
as raw
Internationally,
effects
The year 1959 can be a most crucial year in
that will be caused by inflation. It can also
Board,
closures, as well as flexible vacuum
packaging materials.
Our products
in¬
Revenue
entire
including air freight,
by
of many markets.
paper cans, paper pails, paper
and aluminum foil labels, milk bottle
Mail
an
the
Thursday, January 22, 1959
.
plates,
of 7.6%. Air express ton-miles
crease
based
1957.
over
to
rose
verted
31.8
passenger-miles,
1.8%
aluminum foil
airline
flew
—
of
.
lessening of the purchasing value of the dollar, caused
by
the
rising J wage-price
spiral,
high
taxes,
and
astronomical governmental expenditures adulterate the
real strengths in the country's basic economic picture.
The net effect of this inflationary pressure is that costs
keep pushing up, so that even with large reserves of
disposable savings, consumers are being "costed out,"
tion
CARL CHANDLER
Standard Packaging Corporation is primarily in the
packaging field, manufacturing paper, paperboard, and
international,
territorial
revenue
increase
rose
domestic,
true.
come
can
Standard Packaging Corporation
on
industry
problems
These
ahead
spite of these problems, 1959 would appear to be
one of good business activity, and the long-range future
appears to be bright.
Chairman
and strikes and threats of strikes for
airline earnings.
total U. S. scheduled
jobs.
new
decade
In
R.
policy, the drop in recession travel
the bite
of
before the
Aero¬
"hold-the-line"
greater productivity on present
formation
America, spokesman for the airline
industry,
for
resources
and
must
$30
trunks
restrictive depreciation allowances prevent the accumu¬
revenues
near
or
High individual and corporate income tax rates, plus
Inc.
The domestic trunk airlines collected record
.
ume, expected to exceed the level reached in 1958
after the strong mid-year
even
spurt.
The pick-up in auto¬
mobile sales, vacationing and similar activities is
being
reflected in larger sales of Yale locks used as com¬
ponents in autos, luggage and other products.
No
appraisal
of
period thereafter
presence
that
are
of
business
in
1959
or
the
to acknowledge the constant
Despite the very strong factors
the total economy, the persistent
can
inflation.
bolstering
fail
conditions
cars were
sold in the United States.
to 593,261, which now represents
of the American market. By the end of
visualize smaller, economical cars repre¬
figure
more
1959,
we
rose
than 13%
senting
can
an
increasingly larger percentage of the total
U. S. market.
(3) Barring serious labor strife in the auto parts field,
can set our
sights on new production records and
achieving the highest sales goals in our recent history.
we
(4)
We
foresee
further
accelerated
development
of
sales and service for the Mercedes-Benz line for which
Studebaker-Packard
holds the exclusive distributorship
Number 5814
Volume 189
in
United
the
.
The Commercial and Financial Chronicle
.
.
the high prestige
In addition to
States.
depressing effect
food store
line, we also have the franchise for Mercedes-Benz
car
r
*
r
'
'
0
f
Our new refinancing plan gives us the financial
(5)
stability to carry out an aggressive new model marketing
promotion program and the opportunity to move
acquisition and diversification program
and sales
forward with an
designed to bring new earnings into the company.
-In 1959 Studebaker-Packard will continue to demon-•:
strate that we have come up with the right car at the
As the motoring public becomes increasingly ;
that it can purchase a smaller, economical car with ;
right time.
aware
large car roominess and comfort, we expect the Lark to
have a strong sales impact in the areas previously domi¬
-
;'
MURRAY COHEN
of
business
our
A
naturally-depends
upon
,
growth of our country.^ The>tremendous
strides made by our industry in all parts of the United
States means more job opportunities and naturally: more
customers—an ideal climate for the -;.of
nature
;
for
The
•
-
see
industry.* However, this is
v
now.
of
;
-,
pace
.
We
the
at
Jewel
term
near
well
as
in
stores
new
facilities.
feel that the outlook for earnings for
the
as
we are
1959, the
distant future is suf¬
more
again planning to open
as the record number
same
19581X4 /V;
opened' in
JOHN
Y.
PV;
S.
COLEMAN
Chairman of the Board,
v
Birmingham,
trial city.
us,
«
as
is well known, is primarily
an
indus¬
unemployment but not to an extent to
cern except to those
temporarily.out
;
of jobs.
'■ •,
A : A :
v-'
During .the yearrend period, de¬
cause
con¬
•
''V/A
1
The
and Consolidated Laundries Corpora¬
particular, expects to be able to maintain its
industry,
in
tion
profit margin during 1959.; Competition will, of course,,
continue to be very vigorous, which is.good for the in-;
dustry. It will keep all of us on the alert and it will
continue to keep us conscious of customers' desires and
necessities. This can only lead to improved;/service,
which in itself means more business--*"'
In
short, it is my opinion that the year 1959, with its ;
expanding economy and increased population will be :
a- good
one for our industry. We, in the industry, are;
:
ready and poised to move along with this economy as
we have in the past, and while we do not look for the
startling
past
or
phenomenal gains that have occurred in the
do hope and expect that the industry, and Con-'
we
solidated
Laundries*
achieve
a
five to ten
sidered
to
be
Corporation in particular,
percent gain which we have
normal these
past many years.
partment
store
sales
culture
a
is
important segment of
1958 was a good
an
the state's economy.
for
year
the
the
year,-
farmers.
cotton,
reduced,; due
methods
was
to
being
cattle
which
lucrative.
1958,
on
new
food
store
sales
the
crossed
in
•.
other
and
of
Prices
home
food
I believe
JAMES
prevailing
more
resume
an
sales
billion
The
all
food
sold
at
upward
sales
or more
1957 to about 37%
from
most
of
share
1958
gain
reached
retail
half
of
the
year.
The level
ratios have provided powerful incen¬
tives for
increasing livestock produc¬
account in large measure
widely-held belief that an
extended period of expanded meat
output lies just ahead.
tion,
in
of sales
The present
outlook is that food prices will continue
to edge downward in 1959, reflecting larger supplies of
hogs, poultry and eggs, and probably also of fresh fruits
vegetables if weather is normal. Based on past as
well as recent experience, this price trend
may act as
something of a temporary drag on the growth of food
sales, though in the long run it will help to enJarge the
market for food by making it even more of a
bargain
than it is already. In November
1958, prices of food in-
and
retail
stores
than
5%
were
the
under
117.6%
Bureau
the
of
the
1947-49
base
years,
of
Labor Statistics, or more
All-Items Consumer Price Index.
It is
generally agreed that the general business expan¬
un
er way will continue into
1959, promising
personal income, will be higher than in
1958, possibly by 5% or more.
Based again 011 past
experience, as well as very recent results since last
summer, the expansion of income will probably raise
sion
now
that disposable
demand
for food
sufficiently to offset the temporarily
seven
It is for
that many analysts have
of busi¬
be predicted through observ¬
ing motor carrier tonnage volumes.
E.
ness can
Cooper,
Jr.
It all started 25 years ago.
Our nation has changed a
good deal since that time. Where formerly manufactured
goods were transported by rail in bulk between larger
trucks
now
haul
the
smaller
packaged product
destination. Manu¬
of smaller inventories.
aware that dependability
is their
blood, and accordingly have pioneered tractors and
trailers capable of demanding performance, with the
accent on highway safety. Teletype billing, radio control,
computed schedules; IBM statistical functions, and the
like, go a long way toward insuring on time pickups
carriers
are
and deliveries.
,,
,
The future of our country is in suburban growth as
manufacturing industry continues to diversify, expand,
and find new markets.' Distant from cities, vacant land
is constantly being acquired; industrial sites are planned
and built, necessitating substantial communities.
These
areas
are
served by the motor carrier, delivering and
picking up shipments originating from, or destined for,
points hundreds of miles away.
It is my opinion that hue trucking industry will co•
tinue to grow at its same accelerated rate of
and
expansion
improvement.
WILLIAM
J. COOPER
President, The United Illuminating Company
The United
Illuminating Company looks for business
Bridgeport metropolitan areas to
show healthy gains in 1959.
This optimistic outlook is
reflected by UI's backlog of power and lighting business
in the New Haven and
and
prospects—a
Most of
the
increase in
future
red-
1959
James D. Cooney
to build up
ness
is bigger now than at any
time dur¬
ing the past five years.
Some of the
new
business, we know, will carry
cattle producers again with¬
hold animals from slaughter in order
as
herd inventories.
However* with cattle
over
Recent
.
growth in
kets.
cattle-producer interest in expansion comes in
improved feed conditions, but the steady
consumer
demand for beef has also aided
In the past year
person
reached
provides
worthy
a
sumers
will again spend a
larger share of their incomes
over
the
next
In physical
decade
may
not
match the 50%
increase achieved in beef output over the
past decade, but it should easily expand by at least half
that amount. The anticipated 15-20% increase in
popu¬
lation
this period should alone provide the bulk of
demand needed to support such an expansion.
The
over
rapid
agriculture
technological
are
advancements
providing all
the
is
scheduled
of
for
coming year. These include sev¬
expansions to our area's indus¬
plants. New commercial busi¬
William
J.
Cooper
for 1959 shows signs of strength,
narticularly with the construction of
ness
port area.
in
predictions of annual sales for 1959, UI estimates
commercial customers will buy some 6% more elpc ricity
the
these products over the next few years.
terms, pork production
Nevertheless, much
business
of
other
several shopping centers now underway in the Bridge¬
record
for
because
and
ma¬
the retail value of beef consumed
goal
1961
mar¬
industry-wide effort
presently underway to revitalize the consumer demand
for pork. Real progress is being made in
producing leaner
pork products and, with appropriate processing and mer¬
chandising, there is ample reason to believe that con¬
a
new
and
schedules
trial
level, approximately 20%
higher than only five years earlier.
This gratifying growth rate in the demand for beef
on
eral
•
terially by adding strength to the cattle and beef
per
the
from
part
1960
projections.
this
easily initiate an increase in mar¬
relatively early leveling-off in the cattle
a
into
construction
num¬
bers already back to the record levels of three
years ago,
any unusual conditions such as unfavorable weather in
the year ahead could
ketings and
population.
industrial
and
The amount of potential new busi¬
ior
auditional electric service
supplies will be in pork rather
sofar
dependable indicator of
commercial
activity used by UI and other elec¬
ts ~
'+nity companies.
than beef. -Beef production will con¬
tinue to be curtailed, as in 1958, in¬
food
according to
reason
the
meat
prices. In the summer, sales drifted down¬
ward along with prices. Then as the recovery in general
business gathered momentum in the fourth quarter, food
store sales began to rise, despite a further decline in
food prices.
;
may
of
(adjusted for normal seasonal trends)
peak in the spring, coincident with a peak in
a
1959, and
in
food store sales occurred in tire first
George L. Clemen ts
during
Resulting livestock-feed price
crop.
in 1958.
the
year.
year was the high¬
1952, while feed grain prices
dropped to a 15-year low under the
impact of a second successive record
stores
36.3%
than
more
est since
retail
Results in 1959 will be affected by
trends established during 1958. For
example,
a
COONEY
course
to
dollars.
prices in the past
for
increased their
store
in
level second only to the all-time high of 1956.
The general level of livestock
a
approximately $18.5
1958, up 7% from 1957.
in
good
be
of declining meat production, it
that industry output will once
years
of
chains
a
to
consensus
volume of sales.
had
expected
President, Wilson & Co., Inc.
is the
amount
life
con¬
consumption
Food chains with 11
D.
piled,
Motor
;
the whole 1959 will be
on
modest increase in the physical
a
1-
kindred
averaged
about 4% higher than in 1957 indicat¬
ing
'.v\
gross revenues received
on
by motor carriers in 1958 will, when
complete returns have been com¬
and maintenance
pasturage for
years is quite;
A/;
an amount nearly equal to consumer spending
housing, automobiles and all other durable goods
The total was up approximately 5% from the
previous record of $47.8 billion in
1957.
to
most
combined.
for
being
products are
substantially increased demand.
billion mark
$50
•»
each
Many industrial leaders have reJonn s. Coleman
cently expressed very o p t i m i s t i c
views as to the coming year. Steel,
iron, pipe, cement
reach
Retail
-■
improved
devoted
-
President, Jewel Tea Co., Inc.
in
is
acreage
Statistics
from
shipper's platform to
facturing industries have undoubtedly prospered through
being able to build industrial sites anywhere, without
regard to shipping location, due to the rapid, safe, flex¬
ible transport of their products by motor carrier. Trucks
deliver to every point in America, and have established
unparalleled reliability in the eyes of those who deal
with the transport of goods.
To them, this means a
substantial savings due to efficient scheduled production,
farming
production last year
More and more lands
average.
are
While
:
dles three out of every four tons of
freight in America, and provides em¬
ployment for eight million people.
direct
\
cotton
will
CLEMENTS
L.
new
earnings and deposits
peak of all times. Agri¬
Following two
GEORGE
reached
highs.- Bank
attained
great
optimism; however, the business outlook for motor car¬
riers is unquestionably favorable. Trucking is
big busi¬
ness,
although until recently few
people have realized its magnitude
and importance.
Our industry han¬
cities,
...
^
business.
The trucking industry will have a record year in 1959.
I am no prophet, nor am I particularly known for
this
,.
growing with the expanded economy .
Murray Cohen
of the country and this trend willcontinue through 1959,. in spite of
*
continuing higher wages and increased costs of doing
COOPER, JR.
found that economic trends
There was,, and still is,
some
tions.-It has established a pattern of
E.
Cooper-Jarrett, Inc.
leading investment houses.
:
While the recent so-called recession affected
I think we fared very well.
President,
.
Big business means public owner¬
ship and financial interest from the
Birmingham Trust National Bank, Birmingham, Ala.
condi¬
good
by
ROBERT
/
billion
■
continue to grow
affected
in the hands of consumers.
a
store
new
demand for efficient modern store
40
and
garments, which it rents to all types
of business and industry, is sold at
a cost which is
economically sound.
This is the basic ingredient which is
expand greatly our livestock supply. We know that our
rapidly growing population and the prospective increase
in per capita income will provide for a major expansion
in the demand for the products of this industry. By meet¬
ing the challenge of developing and effectively merchan¬
dising the kinds of meat products in growing consumer
preference, a significant further enlargement in the de¬
mand for meat can be realized, especially in view of the
record amount of discretionary purchasing power already
why the outcome should be
reason
no
construction has been rapid
is true, but the growth of popula¬
tion, .qnd most "important, its continued outward shift
to the'suburbs,' together with the adaptation of more
and1 more ^merchandise
lines
for .efficient
handling
through supermarkets, is continually adding to the
of cleanliness and health
form of freshly laundered andtowels, linens, uniforms and V
favoi ably
group,
earnings, the picture is less clear,
in the
many
expand in such an atmosphere.
clean
a
as
always. The continued upward trend of wage and
other costs, combined with the downtrend in food
prices,
has put something of a squeeze on earnings in recent
It's product
in the
to
ficiently promising that
Laundry 1.
of those service in- a
Supply
Industry is one
dustries that will
and
•
business.'
our
Linen
The
all
the past few years, it
economic
the
turn
we
as
••••:„•-* :av/a...-
•
When
decade and I
Corporationh?77:""
Consolidated Laundries
The "future
-
that
situation the industry has faced several times in the past
<
Board and President/
of the
For the chains
income.-
different
Chairman
so
it seems
logical to expect that they will continue to raise their
share, of. total food store sales despite
the growing
competitive strength of affiliated independent groups,
and they should, be able to raise their sales by approxi¬
mately the same proportion as the rise in disposable
months
imported cars. Many of our dealers in strategic
nated by
marketing areas are already reporting this to be true.
sales of lower prices,
on
sales, will probably show an increase for the
of 2% to 3%.
year
*
33
(429)
underway
to
crease
its
construction
area.
pected to increase substantially to meet the demand for
this kind of housing.
Always a favorable factor to our area's economy has
proximity to New York City and its giant mar¬
been its
ket.
An additional stimulant now is the new Connecticut
Turnpike which has opened about 1,500 acres of land for
commercial
and
industrial development
in this area
alone.
As
a
result, UI's area development division has
a marked increase in the number of in¬
quiries for land sites and buildings.
The New Haven area's economy has already felt the
experienced
I
in
needed
and lighting while industry is expected to in¬
use of electricity by about
7%. New home
is expected to increase moderately in the
Construction of apartment rental units is ex¬
for power
resources
Continued
on
page
34
-
The Commercial and Financial Chronicle
(430)
34
and
Continued from page 33
Haven's
of New
surrounding communities.
and its
In
for
harder,
Particularly significant
growth.
by business
in
population and in
will start construction
into
on
Bridgeport Harbor
new
If
is dynamic, continually growing
well
$20 million expansion of its
a
plant's first one which
went into operation last year to help
the company's
power production system meet the demands of the eco¬
nomic growth expected in the coming year and in 1960.
is
twice
'
-
.
the
*
'
'
•
size
-
.
of
the
*
increase
Memphis
trunk
lines
that
within
of
fields
the
which
should
would
have
been
but
Cox
misguided
destruction to
try built by
business
should
release
?
•
is
\
-
fair
both
,
industries,
we
sales from
this
look forward to
division
of
an
and indications
individuals to
M.
C.
into
1959.
"
..
Although
the
The
I
look
;
In
was
bounded
that
The
■
in
Darbaker
1955
board
of
to
big
automobile
sales.
pend
a
and
achieve--
industry will de¬
deal
great
the
of
1959's
final
Aside from
-
products
use
in
and
components
industrial
and
made
for
commercial
building, the railroads, and defense.
We
also
look
forward
this year as segments of
to
progress
our
market
expand their activity.
The railroads have made
comeback
,William
C.
Croft
year
ago.
volume
....
unfilled
cars
>
,
from
the
low
news
be
with profits on the rise as
increases. They are
again
purchasing
new equipment, and the
backlog of orders for locomotives
is up.
and
freight
Commercial building probably will be steadv in
1959
and might even be a little better than in the
year gone
by. Industrial building, an important field for our in¬
little sign of advancing for some time.
dustry, shows
will
represent
early
in
1959-
them
in
lines
a
heavy emphasis on re¬
development during 1958. This emphasis will
continue
the
as
of
was
company
continues
products
new
or
to
seek
modifications
the
of
manu¬
standard
the new. Superior Steel Division
working into
Copperweld organization and with the benefits of
capital improvement program beginning to show,
we
-
expect
1959
to
be
As
'-
supplier
a
of
during
a
<
nearly
every
at
It
of
the
toward
transmission
and
use
distribution
fields.
' f-t-
;
of
this
new
controlled-weld
Favorable
process.
"Alumoweld" led to authorization
of
an
acceptance
$1,325,000 for equipment to produce
the
mercial quantities. Installation cf this
new
The
wire
to be
Wire
to
the
completed
and
Cable
telephone
during
Division
industry
wire
in
equipment is
1958
sales
the
at
were
company.
of
Copperweld
showed the strongest booking level in recent
years.
Aristoloy Steel
Division
and
felt
in
Daniels
L.
5
the
effects
surplus
lower
pected
to
capita income at about
per
One of the most
last
encouraging factors
was
half
of
of
prices
total
The
products
are
farm
ex¬
income
1958's
level.
record
Major factors in the business recovery are the rebuild¬
ing of inventories and home construction. Public spend¬
ing in the form of highways, buildings and defense, also
giving impetus to the business upturn. By mid-year,
good,
If
big
question
1959
industrial plants and
they
are
could
is
be
a
automobiles.
very
disappointing,
god
the
1958.
that the divi¬
equip¬
*
If
year
auto
sales
are
for
everybody.
trend will be
upward
slower.
In
our
recession
the
new
will further stimulate the rise.
ment
own
were
Upper Midwest, where the effects of the
less
severe
than in
some
other areas, the
continuing improvement in business will create higher
the
the
farm
This reduction, forecast at between
and
10%
nationally
employment and greater demand for
during
of
support
reduce
tion
strongly
the
1959.
recession during the early part of the year, but
produc¬
rebounded
to
to
by
farm
economists, may be slightly greater in the Upper Mid¬
west.
A
continuing decline in, farm population and
high production, however, probably will maintain farm
The
that
important
and
is
com¬
ground rods, another of the division's primary products,
The
mounting
increased investment in
reports
so
Midwest
result of record 1958 production.
1959.
in
highest level in the history of the
of
expenditure of
the
alike
ADM, may
proportionately in the eco¬
nomic gains. Farm prices have been
declining for several months as a
Thomas
Division started pilot production
aluminum-covered steel wire made by a
consumer
restraint, the rise will be
healthy rather than a
Agriculture,
capital
areas.
in the important
that
will continue in
and
Upper
The';
1959.
almost certain
recovery
not share
leads
substantial
reaches
now
*
headlong inflationary boom.
¬
develppment of "Alumoweld"
product for
steady
with*
the
combined
program
'
If business and
exercise
v'
.
mod
appears
1959.
the sales and earnings improvement, the
Copperweld during 1958 centered around'
completely
electrical
..
the
improvement
economy.
economic
;
more
,
equipment in key
new
a
business
part of the
higher level of
.
authorized
materials to all segments of
Archer-Daniels-Midland Company
the
real-;
be
the
basic
industry,
that
noted
benefits
become
DANIELS
of
Board,
Archer-Daniels-Midland Company
has
,,
year.
L.
Chairman
American
,
benefits
good
a
THOMAS
V
was
that
.
which*
1959.
there
best
management
optimistically
Wire,
expected
a strong
point of a
and
divisions
search and
The
the
may.
-
backlog of orders
•
field is largely electrical
by this
booked for the first time.
were
better year in
a
all
re¬
The Wire and Cable
own
to
In
during
sales
favorable effects of
has
new
the announcement
record.
Our
loss
beginning to
were
good
look
directors
and
On
new
a
of sizes offered
range
not
the
overcome.
gratified
These
ernization
a
management
carloadings
auto
period
company
The
M.
expenditures for
the
than
operations.
boom year.
;
to
the $17,000,000 modernization
improvement program launched-,
and
are
ments of
cable stranders and
new
the
in which sales
from
James
tool
in-
competitive with Copperweld products. With
signs of betterment in the economies of Latin America,*;
Europe and Asia, Copperweld International looks for¬
strongly in August and the
particularly
CROFT
machine
help
Steel International Company did
foreign countries. These include several
66
V.
months,
was more
this
ized:
a
will
high-speed stranders and three new'
new
manufacturers
are
ward
quarter of the year.
indications of improvement,
including predictions of increased
there
•
selling products of Copperweld Steel
Company, this division has signed up several domestic
strength of the recovery carried into
the last quarter and indications are
to 1959 being a better
year for busi¬
1958, but I do not subscribe to the opin¬
In many areas
,
of
With
small
a,
first : six
deficit
increasing volume of
ion many have expressed that it will be
in
addition
^
forward
than
effects
Copperweld
business
the seeds of
sow
*
showed
company
the
President, The Pyle-National Company
ness
of the plant during 1958 which
efficiency and reduce costs.
countries
DARBAKER
apparent
WILLIAM
the
division is currently booking orders at near
New equipment was installed in several
that the improvement will continue
are
business.
our
component
:
felt
machines to bre installed
increase the capacity of this plant.
will
the
building construction combined with the
of firing equipment for existing boilers
a substantially improved mar¬
ket for commercial-industrial
heating and power plant
equipment.
and missile production
is, of course, keyed
requirements, and further expansion in these
a
certainty in 1959. As a supplier to these
Division
into
wire-bunching
apparent
rising trend in sales and earnings was evident at,
Copperweld Steel Company during the last half of 1958 r
additional
seems
research and
levels.
division. Five
President, Copperweld Steel Company
>
modernization
Aircraft
year
during the first half, but ended the year
rising in practically all major marketing
This
facture
and furnaces should offer
fields
Tube
braider has increased
at¬
for
of vision and high courage.
new
to defense
on
1959.
the addition of two
and
and*
A
for
for
to
expected
new
products which will broaden its markets.
capital expenditures in plant construction
and for replacement of obsolete machinery and equip¬
ment. The demand for heavy engineering work contin¬
ues, and there is no letup in the need for schools, hos¬
pitals, churches, and other community projects. This
need
and
$1,750,be ready-for
a
an improved sales posi-.
during the last half of the year. Prospects for 1959
appear to be good. A new tinning process was developed,
great and essential industry—an indus-f
a
men
JAMES
;
outlook
completed
was
tion
Crossman
.
future
oppor¬
the
Flexo Wire Division reported
K.
Jerome
wish to preserve.
The market for commercial-industrial steam generat¬
ing equipment offers excellent opportunities in the com¬
ing year. The renewed confidence of industry leaders in
dollars
is
throughout the
Seamless
sales
crease
Indeed, by their unwarranted attacks on the oil and
gas industry, the self-appointed "saviors" of our coun-'
try may well destroy that which even they profess the
in the year ahead.
the
work
which
sections
•
J.
an
of
recession
record
result
the
engineering
Mill
bv the end of
Ohio
areas.
utter
Suez, and now Venezuela, seem not to
penetrate the minds (?) of the so-called "liberal" bloc.
If the American people are properly informed, they cer¬
tainly will not permit self-seeking politicians and a few
through increased sales
and cooling equipment
heating
the
decision
as
provided
modernization
on
a
sincere
reflected
be
residential
of
The
The lessons of
.
trend
the
salutary,
is
<
Superior Steel Divi¬
metals were fabricated by customers
parts for atomic submarines.;
v - ;
today than ever before. The risks inherent in finding oil.
and gas have increased substantially. Just the threat of
this drive will operate as a definite deterrent to neces¬
sary exploration.
■-
Lewis
volume
However,
Court
.!■
■
awarded for installation of
were
Sendzimir
the
hand.
•
».
in
were
production involving "wonder metals" such as boron
stainless, zircalloj' and beryllium copper. Some of these
the existing percentage allowance is even more
; During'
the current quarter just
ended, the residential heating and
cooling industry has made substantial sales gains over
last year. Unusual sales strength has been shown in gasfired appliances such as furnaces and boilers. Sales vol¬
ume has been boosted by the higher rate of home build¬
ing and by home modernization programs. This favor¬
able
000
Work continued
necessary. Again in the present Congress concerted
tack will be made on this percentage. The necessity
operate.
we
Preliminary
contracts
de¬
recent
Power
hold
to
below par for the
was
furnaces
slump in the automotive industry, 1958
concentrate
operation
contrary
result
been
an¬
nounced by the Court.
For thirty-two years it has been
recognized
by law that a 271/£%
depletion allowance on oil and gas
industries
to
with
Federal
equip¬
prior to
slabs
new
increase in rates is still sub¬
The
electric
seven
The lower level of operations
rebate.
the
chaos
commer¬
or
The
classified
be
continues
had
military aircraft.
The
basis for
the projected in¬
crease in industry sales during 1959
can be found in the strength of gen¬
eral
business
activity, which has
persisted during the last quarter this
year, and in the improvement shown
each
to
of
cial and
in
to
not
are
whip
making plans for operations during 1959, our com¬
pany is forecasting a 5% increase in sales volume. In¬
dustry figures could well be higher. This is an average
increase covering the four fields in which we operate—
(1) residential heating and cooling
equipment,
(2)
commercial-indus¬
wk
trial steam generating equipment for
power and heating,
(3) gyroscopes
and electronic components for mil¬
itary aircraft^and missiles,, and (4)
for
5%.
to
sus-,
may
Case
Commission
In
components
an
ject
President, Iron Fireman Manufacturing Co.
machined
4%
as
1959.1
gas
public utilities. It should be noted
as
COX
J.
much
as
products and
oil
and
steel
plant.
was spent on the installation
equipment. The 'capacity of the hot mill was
increased by 20% by the addition of a new
heating
furnace, which permitted the rolling of heavier coils.
of
substance, the decision held that the
'
LEWIS
whole
a
sion.
in
held, that it is
not necessary for the gas transmis¬
sion lines to obtain approval from
customers before increasing rates. In
the
operation in 1961, the 165,000-kilowatt generating
unit
Because of the
as
cision of the U. S. Supreme Court
Scheduled to go
plant.
power
for oil
demand
the
process
;
,
steel. Special
Approximately S 1,000,000
The general business picture looks brighter for
the expected improvement materializes, and is
tained,
Early this year the UI
business.
favorably with the
a
operation at the Aristoloy Division.
President, Ryan Consolidated Petroleum Corporation
similar to New Haven's, that will cost millions of
to
ended, six of the
year
CROSSMAN
K.
installed
was
tunity
JEROME
dollars.
Our area's economy
operated at
shipment to Superior for rolling into strip steel. As the
.
extensive urban renewal and redevelopment pro¬
an
gram,
ment
All of these points signify progress, but none suggest
me an all-out boom. Management still must face the.;
fact that these are highly competitive days, and in some
fields productive capacity still exceeds demand. How¬
ever, for those who operate skillfully in the develop¬
ment of their products
and markets, 1959 can be a
year of opportunity.
'
- ;
•
'
city's economic growth are plans now underway
to this
division
sumed the manufacture of stainless
weapons.
to
,
hit
the
very
throughout 1958, whereas in the 1954
average
recession
-('
encouraging signs of recovery that should be
are
followed
*
recession
1958's
where
Bridgeport
there
definitely con¬
district has
downtown
operating rate compared
industry
facilities and
defense
growth of economic activity in the city
tributed to the
sions
*
The construction of several office
buildings had already begun. Redevelopment
and store
report improvement
1959.
Thursday, January 22, 1959
.
to
of construction.
pace
in
The heavy defense
increase in the
and the coming year will see an
gram
it will
foresee that
not
.
rate below that of
program will be significant again"
the industry average.
companies making electrical parts and equipment.
As
The nation apparently will spend more on missiles, and*
the
result
of
Copperweld's
merger
with
the
on
the improvement and maintenance of our national / Superior Steel Corporation, the
Aristoloy Division re-
$145 million redevelopment pro¬
stimulus of the city's
do
late
we
before
.
will
Iron
our
products.
On
Range, increased activity in the steel industry
stimulate
employment in the mines.
Volume
Number 5814
189
.
1959. Undoubtedly this confidence is influenced not
only by the opinions previously mentioned, but also by
a
review of the currently available statistics for 1958
President, National Life Insurance Company /
entered 1959 in the midst of an amazing
The economy
♦
early last year, confirming
the earlier impressions that the recession constituted
merely a period of readjustment and the establishment
a
substantial
more
ther prosperity.
base
for
Jones
fur¬
econ¬
of
industries
further
upward
price level.
'
life
The
look
forward
to the
industry
new
■
high rate
a
business activity and also by the
of
C.
Deane
Davis
essential -nature of the service which
the
industry provides.
insurance
Life
will
continue
in
the
future,
it has
as
in the past, to furnish protection against the uncertainty
of life, and the large purchases of insurance during re¬
cent
keen
Furthermore,
ance.
in
no
these
days
be
to
considered
method
certain "brakes"
creating'
of
increasingly evident.
estate than by means of the purchase of life insurance.
life insurance industry recognizes changing con¬
ditions within the economy, and most companies strive
look
The
for
insurance
,
life
The
buyer
is
better
able
to
care
for
all
high
than
/'./
its
ability to stem
inflation
and
no
to
than
.
in
continue
recent
In* the
but is
has
a right to a
their'"invested capital,
and
the trend of recent years
is
placing this right in jeopardy/
"
-
to
lose
In
atmosphere of inflation; the expenses which, a
man and his family incur tend to follow
prices upward.
Under such circumstances, the need for life insurance
becomes more imperative than before.
Many persons
an
seem
to
believe
that
they
"beat"
few
people
successfully
offset
by
their
and
a
successful
of
existence
insurance,
dividual
in
penalty
severe
the
inflation
merely
needs
order to make
form" of
instead
to
serves
life
more
of
heavier
per
arguing
demonstrate
against
life
this
adequate provision for his estate.
continuing
ising future for the life insurance industry.
with
group of
leading indicators
two
that
of them
the
although
construction
we
use
tion of
Decker
service
industries
We
look
for
,
of
by its
increased
-
the
a
already supplying
production of larger ingots, mill forms, parts, improved
alloys.
methods of fabrication, and new
Consultation
and
development
joint
work
with
air¬
craft, missile and rocket engine manufactures indicate
that extremely large amounts of refractory metals may
be
required in the next few years for the space programs
under development.
The successful completion of
a small portion of these programs will constitute a
now
even
great advancement for Fansteel.
concerned
the
DEVER
activity in industrial instru¬
of widely divergent trends'
year
probable
/
fortunately equipped with the experience!
resulting from nearly 50 years
in the refractory metals field, to meet these |
Fansteel
is
and technical background,
!'
of
work
challenges.
*
increases
on
*
monetary control*—in th" «eri~d
F. Dever
as a
tailwind for the instru¬
industry.
A recent survey
Ka
obsolescent
Company
in shipments should produce
proportionately larger increase in
crease
a
earnings.
It is too early to predict
with ary certaintv
the extent
any
earnings, or whether
earnings will approach the high levels!
1959 increase in
mentation
Henry
Brake Shoe
to cut operating costs, an in¬
gram
research,
of
reported that $70
to
1957.
/
evaluation
An
.
that acts
American
Judging by most available yardsticks, the Americanl
economy should show a significant upturn in early 1959,
accelerating later in the year. Since American Brake
Shoe serves a broad segment of industry, we expect our
volume to reflect this upturn.
Due
to the effect of the company's pro¬
in defense spend¬
Capital, spending during a period
recession and immediately there¬
is - pointed
more
toward
modernization than to new capacity.
The pressure behind this is the com¬
pelling need to reduce costs and in¬
crease
productivity so as to mini¬
mize the inroads of competition and
to grow at a profit. It is a pressure
after
DUNN
KEMPTON
of
the United States.
is
mation.".
use
Hence, at the beginning of the calendar year 1959
almost every forecaster is
confident, being of the opinion
that business volume and
corporate profits will improve
substantial amounts of
fabricated parts for mis¬
siles, rockets and space vehicles. A major aipount of
research and development work is being done toward
Fansteel
"widerInterest in the "tools of auto¬
as
of excess reserves of member banks and
changes in
rediscount rate—can decidedly influence the level
of prices in
far
at
these metals and experimental
ing, and an upward swing in capital
outlays by industry will stimulate
largely the manipulation of the vol¬
ume
strength and elasticity
properties of
President,
application of automatic controls.
An improved economy, heavy emphasis
compared
to ! the
proportion' em¬
ployed in both manufacturing and
agriculture.
Moreover, the relative
stability of prices during this period,
when inventory liquidation was sub¬
stantial, reinforces the position that
the Federal Reserve Board
desirable
high temperatures.
'
Vice-President, Minneapolis-Honey well
Regulator Company
'
the
the
and
of
films,
•
beyond the reach oi: conventional metals and alloys
starts
are
now
primarily
of plastic foams and
problems have sparked re¬
and explorations into struc-
tural and engine materials. The metals made by Fansteel
—columbiurn, molybdenum, tantalum and tungsten—all
have melting points higher than 3600 degree fahrenheit,
building products at the
Chicago
being an insulating material
HENRY F.
increasing propor¬
the population gainfully em¬
ployed in
These
search
1955,
in the
on
/.aircraft" and missiles have created
new
£>roblems of high temperature.
is turning its attention to the potential uses of
plastics in structural components.
mentation in 1959 after
nificance
P*nl
Doar '<-■
new
future
the substantial
O.
I.
Leland
of Home Builders show in
as
-
'
in roof construction.
feel
1958 reinforces the belief of those who regard the Na¬
tional
Bureau
of
Economic. Re¬
having great significance. Further,
stability of consumer
purchasing
power
reinforces
the
opinion of those who place great sig¬
.
housing
since
/■": ;■
Space Age presents a new
of
opportunities and chal¬
lenges, Constantly rising speeds of
'The
company
*
The subsequent movements of the Federal Reserve
Board indices of Gross National Product and volume of
Industrial Production in the latter part of 1957 and in
search's
that
level
Driggs
steadily during
of the products of
are
avenue
chemically engineered
products for the building industry, especially plastics, is
DECKER
National Boulevard Bank of Chicago, 111,
introduce
month, one
use
We
limitless,
PAUL
O.
for
prom¬
are-
the -highest
at
National Association
insurance, rather than less, in
All of these circumstances point to a
be
Dow will
in¬
the
1
in 1959
This, coupled
with good prospects for the automotive industry, is one
cf the' principal reasons for our optimism.
Among the
chemical companies we have a particularly large stake
in the building industry. I refer
primarily to Dow prod¬
ucts which go into construction without changing form
although sale of intermediate building chemicals is also
increasing rapidly.- "
*
* *
The
that
Indications
year.
division
1959.
'
V,
.
Dr. Frank H.
continued
and. sales
expected to show
/another substantial increase, during
second in terms of recovery
growth potential."/
will
own
taxes.
are
The
-
'
Furthermore, to the extent that they
these efforts, they customarily suffer
in
Plastics
high.
•
this
/, V Building products is one of Dow's brightest growth
areas, antr by the early 1900's the company's revenue
from such products will be in the range of
$100 million
investment efforts.
are
re-
may reach a new all-time
the markets that Fan¬
materially to FansteeTs 1959 volume.
Growth in our Rectifier-Capacitor
,1958,
to
,
percentagewise.
inflation' by
inflation
have
saies
in
regularly serves are all active,
barring strikes or other serioui
Division
and,appears to have the best potential for growth
covery
the
purchasing of equities of one kind or another, but the
history of inflation in other countries indicates., that
can
company's
own
the fourth quarter
on the increase.
still
set-backs, they should all contribute
-
pire-recession iev^s an/
the final quarter of 1958 was one of the best in history
in terms of volume. Magnesium made the greatest re¬
its
purchasing power
even after the termination of
fighting. The mastery of
inflation calls for sound Federal fiscal
policies, and we
cannot expect to preserve a sound dollar if the
Federal
Government continues to incur repeated
budgetary deficits.
'■■■', ■
,v
"
and
on
.
Our
are
sales
1959
industries
of
of business have
owners
preserve
power
continued
that
steel
acute
and 'demands
very
serious
study by industrial management. The
;
greater
improved materially and
Activities in all the Fansteel product divisions indicate
that is growing ever more
one
H. DRIGGS
Fansteel sales and earnings during
of 1958
months.
made
covered
dollar
FRANK
President, Fansteel Metallurgical Corporation
be
line of
be
fair return
purchasing
to
problems,, mention
rising costs out
of proportion to increases in produc¬
tivity resulting in. a squeeze on
profits. This is not a hew problem,
should
the
<
increasing productivity, improving product quality, and
in reducing waste. '
DOAN
improve during 1959 but inplagued by many of the
problems of recent years. We have made a good and
rapid recovery from the recession of 1958 and indications
are that the
economy will continue
to
improve through 1959 although
probably at a more moderate rate
will
dustry
of the dollar. The nation's record
in this respect during recent years has been
almost
everything but impressive. ^Monetary units customarily
lose purchasing power during wartime, but unfortunately
^
the
'» Business will continue to
money
increasingly clear that this nation will face
test
a small potential has been real¬
industry is more and more recognizing
positive contributions instrumentation can make in
American
ized.
show increased profits.
I.
of automatic controls.
application of automatic controls should broaden
considerably since only
out¬
always, will be placed on
as
users
The
President, The Dow Chemical Company
his
of
rates which have prevailed for more
than two years serve not only as a restraint
upon unwise
uses
of credit, but also furnish the saver with more
adequate compensation, than formerly was the case..
Higher earning rates make it possible for life insurance
companies better to reward the savings entrusted to
them, and this in turn becomes another incentive for
the purchase of life insurance protection.'
Looking ahead to the more remote future, it becomes
the
fit all
:
good business year, not an
a
LELAND
needs,
to the creation of estates.
as
both as a
development source and as a proving ground for new
principles and new techniques that ultimately will bene¬
insurance-buying public.* Consequently, the
insurance
chasers
will be adapted to industrial use. It is serving
expansion are becoming
Using terms quite loosely, the out¬
Management,
one.
its mettle to
and frequently at decreased cost.;
At the same time, most companies are
placing more
emphasis than ever before upon the training of the men
who sell their products, and the field forces thus become
increasingly competent in advising prospective pur¬
•
Today's modern process industries, such as the com¬
plex, continuous processes in petroleum refining, and
chemical manufacturing, require better, faster, more ac¬
curate and more versatile control systems. It is in these
continued
on
is for
1959
standing
constantly to improve the types of contracts made avail¬
the
forms of instrumentation.
new
seem
1959, may also hamper profits.
.While one should-not expect the year, in terms of business
volume, corporate profits, and individual incomes
to be one of difficulty and decline, it does appear that
an
able lo
guide, it would
a
punitive
almost
of
certain
more
exact
ments to be reopened in
serve
taxes, there exists
an
;.
strongly to emphasize the public's
appreciation of the basic usefulness of life insur-.
years
.
not
•
with
considerable optimism engendered in
part by the prospects for
is
areas that advanced forms of
computing devices, such as
reasonable .* digital computers, will eventually come into use.
expect that 1959 will be a year of good volume but
The recent introduction of electronic controls for the
not runaway prosperity; and it will be
hampered, how¬
process industries increases the flexibility of instrumen¬
ever, by such actions as the Federal Reserve Board may
tation and provides new products that enable instrument
deem necessary to prevent inflation of the price level engineers to select the most economical means of control
and still enable the United States Government to finance '
in terms of installation and performance.
its deficit and refund its maturing debt. Currently the
Among areas offering a growing potential for instru¬
.means available to the Board are largely monetary with
mentation, are nuclear energy, electric power genera¬
the result that profits for the year may well be reduced
tion and distribution, the
military, and research.
j
by high interest rates, by tight money, and by a short- '
The military not only is an important instrumenta¬
age of mortgage funds.
Numerous, and quite possibly
tion market but many of the technical advances now
larger strikes, because of the number of wage agree¬
being made in automatic controls in this field eventually
is
can
year
the continuing trend through industry toward more
complete and centralized control of operations. This is
leading to new control concepts and techniques and to
to
-
insurance
prediction
"no straws in the wind" to indicate that the
water
the
pressures-on
••/
economic
are
is
specific result with the certainty that one can mix salt
and sulphuric acid.
However, if past experience
commodity prices
capacity in certain
usefully to restrain
serve
tell
to
appear
and transportation and com¬
gas,
instrument industry's sales would match the peak levels
of 1956-57.
An encouraging factor in the year ahead,
One can not mix the multitude of influe*ces on
American business in the different proportions in which
they are mixed from year to year, and foresee a certain
some
unused
the
averages
There
in the Dow
science.
evidenced by this recovery,
suggests that 1959 promises to be a
more prosperous year than 1958.
The
and
advance
that the rate of corporate earnings will rise in -1959
some extent be helped along
by a rise in the price
level.
*
Unfortunately
national
The
average..
35
munications industries.
and to
as
softness
industrial
,
petroleum, electric and
us
-
The strength of the
omy,
the continuous and substantial
and
rebound from the recession of
of
(431)
in
DAVIS
C.
DEANE
The Commercial and Financial Chronicle
.
.
of
the
outlook for
American Brake Shoe must consider
the
prospects for
tomer industries.
a
number of
cus¬
From the economic
believe thatl
upturn in pur-l
indicators available, we
1959
Kempton Dunn
will shown
chases
by
an
the auto manufacturers,!
equipment and heavy!
construction
machinery producers, ^nd the railroads. An increase inl
auto and truck miles traveled, coupled with the current!
r^nlace
equipment in the manufacturing, mining,
Continued
on
page
36|
The Commercial and Financial Chronicle
(432)
36
Continued from page
of
35
vehicles on the road,
should result in improvement of business for those of
our divisions
which serve the replacement automotive
the
in
increase
average
of
age
parts market. We also look for a moderate upturn in
the mining and ore processing industry, another customer
spending for military aircraft may decrease
somewhat during 1959, but its effect on American Brake
Shoe's business should be more than offset by sustained
Defense
aircraft, plus an
of commercial
increased market for missile structural
components and
ground-handling hydraulic systems.
The company's diversification program has resulted
in our achieving a significant position in the fields of
aircraft and industrial hydraulics, and has brought us
into the field of high-strength light alloy castings. We
expect that 1959 will see an increase in our shipments in
these expanding fields. We expect to intensify our diver¬
sification program, and are seeking new and profitable
product lines through research and development and
through acquisition of established companies.
President, Consolidated
«
Edison
for
outlook
^Mi
,
reflected
is
1959
the
and the billion dollars it will spend on new facilities
between
an
increase
of
about
hour
annually
sales
over
for
notable
been
its
during the 1958 recession year
dropped
companies
of
the
below the 10-year industry
over
stability of Con Edison's growth is directly related
stability of the New York market. Even
to the inherent
in last
gear's business downturn, .jobs in the construction,
and service industries in the city increased.
Although employment in factories and the softgoods in¬
finance
fell
dustry
not.
sales
tinuing
buildings
for
outlook
with
and
1959
this
is
bolstered
city, both
apartment
the
of
rebuilding
structures
respectively,
decline
was
the employment decline nationally.
as severe as
The
7%,
and
6
new
with
con¬
office
Older
new
buildings.
are
users.
tion in older buildings.
the
On
have
anticipation of increased earn¬
In
cents
,
on
its
ditions
twice
the
,,
*
year
from
across
the
the year
of
the
million
the
State
Empire
will have an
too,
to show that the
business
are
barometers
business recovery
current
ment
debt, and
is
needed to
now
on aid programs to state and
to this the increased billions
state
local
York's
position
as
the management and financial capital
of the world.
Con
as
■»
Edison's gas
new
homes
are
business will also continue to
constructed and
older
as
grow
homes
and
small apartment houses throughout its territory convert
to gas. More than 90% of the one- and two-family homes
in
built
gas
Edison's
Con
territory last
gas
year
installed
heating equipment.
The
ately
and
company's steam sales will increase proportion¬
with construction of large buildings and apart¬
using district steam for heating. Large commer¬
buildings using district steam for heating use steam
air conditioning
equipment in the summer, thereby
helping to level out the large seasonal dip in steam sales.
cial
governments themselves will spend
in
all
an
record, due
following four highly significant factors.
(1) The near record construction slated for the new
year, totaling some $48 billion.
(2) The rapid recovery of our dur¬
able goods industry such as
autos,
appliances, machinery, etc., all of
which need chemical coatings.
(3) The upsurge in housing starts
for 1959, estimated at 1.2 million
units.
(4) The 15 million postwar homes
coming of age and requiring paint-up
fix-up improvements.
Total
paint sales in
1959, to both
industry, should
reach almost $1.8
billion, up about
10% from the previous peakyear,1957.
the
consumer
and
Last year was
£.
A. Eckart
paint
a
industry.
mixed
Sales
one
to
for the
the
con¬
market continued
strong with
estimated rise over 1957 of about
sumer
an
4% FRASER
Digitized forto almost $1 billion.
The
many
is
and
will
not
have
consumeer
millions of homes
"
the
acceptance
as
to
•
company.
a
Our
1959.
..
is
endowed
planning capital expenditures of
the year.
■:
boundless
v m, '
;
a. g. elam
President, Southern Commercial & Savings Bank,
St. Louis, Missouri
•.
"Inflation" will be the key
word in our economy dur¬
ing the year, 1959.1 The results of the November election
point unequivocally to more and larger subsidies which
pour more deficit spending into the mill, all of which
will
us
.
pray
that
.
the
*
....
coming
year
have
will
>
lessen
the
prices to continue to soar.
priced ourselves out of
many foreign markets, and many sec¬
tors of the domestic
lost
over
$2
market; we have
billion in gold during
the past year; we have seen a loss of
l'aith in the future worth of U. S.
Government securities; we have de¬
stroyed much of our former faith in
fixed
dollar
investments
in
Ameri¬
business and other forms of sav¬
ings. The recent rise in the stock
can
market shows that
is
the
swer
equity ownership
so-called
to
our
"smart money',' an¬
key word "inflation." <
The dollar is still
A.
G.
Elam
flation will
enjoy!
cause
We
Couple this with equal opportunities America
offers all its people. What greater inheritance can we
have to sustain the high living standards our people
diversity.
$9.4 million during
•
currency,
with
over
•,
it cannot remain so
Let
approximately 6,500 cusnow being served by the
gain of 8,400 new customers in
,
tidies measured in unlimited resources and of immense
do
a
In order to keep pace with our population growth and
.the increasing demands for natural gas by present and
future commercial and industrial enterprises, we are
a
economy
state.
~
sustain this cherished blessing.
country's
our
of 362,272
total
We expect
people continue to enjoy a high standard of living and
we as a nation can and must regulate our economy to
always
seriously affected
increase in 1958 of
an
for
.
at
be optimistic for the year
experienced in other sections of the country.
ever
now
continue
We have been fortunate that the mild recession
point where we must act wisely to
dispel the inflation psychology and inflation fears al¬
ready in the minds of our people. Both management and
labor can jointly do much to relieve inflationary pres¬
sure now dangerously prevalent in our economy.
Our
We are
to
MM\/'M
territory served by Oklahoma Natural Gas Co.,
have particular reason to
shrinking purchasing power of the
dollar consumers are price conscious today more than
ever
and their shopping habits are highly selective.
Through mass production and mass distribution can
unit costs be held in line. No longer can we pass in¬
creased costs and increased prices on to the consumer
without risking the danger of pricing ourselves out of
business.
; 1 ;
*
- -•
•
to
appliance sales dur¬
expected
significant developments which have made
"break-through" year for our industry nationally
come.
tomers
-
re-appraisal by management for greater efficiency
and how best to prudently economize on operating costs.
Manufacturers whose product does not fit in to consumer
a
Due
time
to the
and
nation's population
be certain, however, that more aggressive
competition will challenge manufacturers, wholesalers
and retailers during 1959 than ever before. This calls
needs
will
many
sulted in
;
may
obituary.
will set
1959
on
value, quality and price might as well write their own
e. a. eckart
President, Sapolin Paints, Inc.
Paint sales for
our
sales
General business conditions in 1958 indicate that 1959
should be the best year on record for Oklahoma.
Popu¬
lation growth in Oklahoma Natural's service area re¬
bringing millions of new buyers into our consumer mar¬
kets for all types of goods and services.
for
a
in business
.
continued increase
gas
is
1958
total
Oklahoma's versatile economy with its
variety of natu¬
resources has enabled the state to resist the declines
sumers.
The
improvement in
quarter of
1959
ral
ment, higher wages, increased savings and make avail¬
able more spendable money in the pockets of our con¬
We
ments
v
to
of dollars
highways, hospitals, schools and housing as well as on
many other civic projects. The dollars so spent will drift
down to individuals in the way of increased employ¬
for large-scale rebuilding of whole
city.
This rebuilding confirms New
final
In the
we
local gov¬
announced
the
best
have given it a sound basis for great optimism
regarding
1959 and the years to come.
cover
will continue at least throughout the year; and recently
plans
processes.
continued their search for the
of the past year has not
Add
of
The
1958
of
electronics, the development
of dollars
,
14th yealr of. coordinated activities in the
fields of
promotion, advertising, utility and pipe line research and
public information. The 1959 PAR budget has been in¬
creased to fjurther broaden and accelerate these activities.
rockets, missiles and satellites.
billions
-
.
ing is to cover outlays on our defense program and in¬
substantial outlays to support technological re¬
Increased
■
its
cludes
of
c-ddins
American Qas Association's
highly successful Promo-'
tion, Advertising and Research (PAR) Plan completed!
definitely score sub¬
I believe, justify my prediction that this upswing
throughout the full year of 1959.
field
j\.
the amount of gas
through 1959 and into the 1960s.
extend
the
decided
ing the
During the coming year business will be given a siz¬
able boost by the increased billions of dollars our gov¬
ernment already stands committed to spend. Such spend¬
in
as
^Shipments of other gas appliances and equipment were
generally below 1957 levels as consumers tended to delay
purchases of major household and other durable goods,
The
economic factors which sustained this business re¬
search
have been nearly
reserves
great
but manufacturers now estimate
increase by mOre than 4%.
pairs of shoes will be produced during the
ernments.
sections
-
the year of 1958. It is no longer news
that our nation's business recovery during the last six
months of 1958 has advanced somewhat spectacularly.
covery,
an
possible year-round air conditioning system, the gas in¬
dustry devoted energetic support to existing equipment.
The 1958.shipments of residential units reached
approxi¬
mately 7,800 more than 3 times as many as 1957.
/>■.
stantial gains over
The
to
as
While researchers
-
company
coming year.
s ■ ■'r':
T ■ v ■
As I see it, business ii\1959 will
steadily to
improvement of known
Harry Edison
operation 334 units. Approximately 18 new stores are
scheduled to be opened during the coming year.
Due to our nation's ever increasing population, I be¬
lieve a minimum annual shoe production of no less than
600
construction
fundamental
;
-V
close
the
increases.as A.G.A.'s research emphasis shifts to a more
approach rather than the exploration and
company's
as
centered
our
Street
34th
on
for
'
withdrawn.;'jThe'^gas industry intensified its research
development and promotion activities in the field of gas
air conditioning
during 1958 with the result that five new
gas air conditioning processes have been
developed. The
.likelihood .of a major break-through in air conditioning
stock to 45
common
share.
>
natural gas reached an all-time
high
of 246.6 trillion cubic feet at the start
of 1958. During the past decade ad¬
1959, and stated that at its next
per
than $4.5
34 million of whom 31.3
million will be residential customers.
Proved recoverable reserves of
record on Dec. 31,
12,
in.!; 1959
is expected to rise
ers
to. stockholders of
1958 payable Jan.
share
per
more
estimated
-
.
record-breaking
and development of gas
transmission,}
distribution and storage.
The number of gas utility custom¬
'fl
ings, it has previously been. made
public that our Board of Directors at
a
recent meeting declared an extra
dividend on its common stock of 20
billion
•.
mounted to approximately $109
'
year.
:
industry, fifth, largest in the nation, will spend between $1.7 and $1.8
outlays for employee compensation, interest on govern¬
side,
positive
which tend
will
;: r'
r
.
gas
Edison Brothers Stores, Inc.
a
As evidence of this confidence the
million, as compared with $99.3 million for the previous
will
by the
being razed and replaced with larger
Almost all new offices and higher rent
apartments will be air conditioned.' There is also an
extensive program of building rewiring
in progress,
breaking the historical bottleneck of electric consump¬
energy
which
real
billion, is confident that its dynamic growth will continue
throughout. the year to provide even greater service to
residential, commercial and indus¬
trial consumers,
brought our own company's opera¬
its 36th year with an all-time high record of
tions into
At
Charles E. Eble
average.
The
,
my
sales
industry entering 1959 with
32 million customers and annual sales of
.
July and the fall and early winter months
continued acceleration of this upward trend.
a
bring
President, Oklahoma Natural Gas Company
The gas
opinion, our entering another boom period will
contribute greatly to increased paint sales.
In
and
■jr\
over
Building.
only 20% below its 10-year average,
while the average decline in the rate
growth
showed
Store
Con Edison's rate of growth
of
8%
nation shall
our
ml a. eddins
lights of this expansion was the opening of two major
units in downtown New York City, namely, Chandler's
Shoe Salon on Fifth Avenue and a major Baker's Shoe
stability.
country that year was 80%
situation improved mar¬
kedly toward the end of 1958. August industrial sales
However, the industrial paint
expansion program w
chiefly in and around New York
City with results that have proven
so
far most gratifying. The
high-
heavily built
up and largely urban, Con Edison's
rate of sales growth has been some¬
what slower than the industry as a
whole. Its rate of growth, however,
Even
....
appliances, industrial coatings fell 13% for the
eight months of 1958, for total sales of $387 million.
were
Thursday, January 22, 1959
less
a
Dui;ing
territory, which is
has
.
..
home
cents
sales are ex¬
pected to increase between 5 and 6%
annually over the same period.
Because of the unique nature of
its
to
dividend
the
Gas
years.
>
' "'
the paint picture was
scene,
.
brotherhood to all humankind.
dividend meeting in February it will
consider raising the next quarterly
1963.
indicates
trend
kilowatt
in
4.5%
five
next
end of
the
and
now
A well-established
for
Due mainly to the recession, in the auto industry
lesser extent in the lag of sales of big ticket
bright.
and
industrial
the
.
dangers of war and that the people of
enjoy the fruits of a world at peace
nation,
the
The year of 1958
"
in
$200,000,000 it has budgeted for construction during the
year
On
Chairman of the Board,
of
Company
New York, Inc.
Edison's
Con
in
harry edison
e. eble
charles
paint coatings.
consumer
first
group.
high-level production
majority
still- the
vintage,
prewar
accounted for much of the continued strong demand
.
not
but
with
a
"hard" unit of
a
government
spending more than it is taking
indefinitely. The alternatives to
Tin,
in¬
please some of the people
directly in¬
volved, but wage raises must be held in a close relation
to increase in productivity, farmers must be paid
only
for commodities that will actually be consumed, business
men must hold the price line on finished
goods and serv-
Volume
ices;
.
..The Commercial and Financial Chronicle
.
raised
to
intake.
over
The
to
5814
must be
taxes
our
outgo
Number
189
spiral
of
v'
;
times
sion
individual debt.
materials
Sometime in the future, but possibly not
We all. hope
and
that
sincerely that payment
we
will
curtail
forest
wi^l be th^ decision,:tions
that 1959
are
may
sion
must,
we
enter 1959 in
a while longer until the
existing capacity is no longer ade¬
quate. Higher values caused by the
DeCOURSEY FALES
for
Savings
creeping inflation of the past several
years have added materially to our
/
cheerfuKatmosphere
Leaving aside the question of War because of favorable
than we did in 1958. Business indices are at
higher ("business trends there should be complete recovery from
level.
The recession we were experiencing a year ago /the 1958 recession for the year 1959; • 1'.^ v
"bottomed" out in the Spring, and business.has renewed :/ ' /,. The Gross National Product in 1959 will increase to
its advance with vigor. Our great American prosperity.
$471 billion and the personal disposis still prosperous, though all too few of us remember a
able income to $327 billion. In the
previous prosperity just 30 years. ago,three great basic industries there.
we
a more
total amount at risk.
As
stand the consequences of an unsound
rency.; I
think that if all of
us
in
depreciating, cur¬
ently
our
one
be.. an.; output
with 1,200,000
against last year's
of
home
starts
total
of
.
as
tric,
higher
than
a
Actually, the rate of growth of this relatively new form
of cargo transportation could
be substantially greater
on the whole, as it
surely will be on
The
is
key factor
the
in
this
is
the
year
expected
just
capacity to
move
on
prediction
the
of
airlines
in
are
now
down
ized labor and the farmers for
by
is
but
10%.
i
.
.In
:
^/
but
as
is
W.
Farmers
may not be as well off as they
drastically so. Their income may be
Taxes during the year 1959 will be static.
1959 should be a prosperous
eaution ,will prevail ii the last four months/
in
year
RANKIN
It
that in 1959 the life insurance business
gains comparable to those realized during
or five years.
The gains, however, will
appears
can
;
expect
the
past four
continue to be hard
■
.
won.
,
;
There is
..
t6
easier
A.
■bobtih^
,-,:u
ptsl^faduar IJhough still small
in
v;£
later months of last year, air1 freight Volume
responded
Several "of the carriers are icnowh' tohavp
,
'vigorously
broken
all
records
for "volume
in
GWen^he favorable^ busfness
1953.
It
is
in
the
international
air
freight* field
that
the
..
chemical industry, While Chemical
chemicals
pro-
probably, equaled
or
ex¬
ceeded its previous all-time monthly
in November.
peak
that month,
industrial production was still about
3% below its all-time monthly high.
,
expected.
Here again there
is the favorable combination of
expansion in the market
concurrent with expansion in the cargo
are
....,
ianar*nnn„mi
'
wjSlfLoth^
business and the
for 1959, and with airline cargo
capacity on the increase,
volume records should continue to be broken
all'through
the year.
largest gains in tonnage
......
duction declined along with industrial production during
<lhe recent business ^adjustment, the output o£ industrial
'Fourth^Quarter
the
FORSTER
E.
•
The
for
output
1958
industrial
of
as
a
In
whole
was
chemicals
about
4%
capacity of the
airlines. The jet aircraft will provide the
lift; competi¬
tion in international trade will provide the cargo.
below the record level of 1957. Total
Year to year growth has characterized the business
of air freight transportation since its
inception following
World War II. In spite of
expectations,
overall economic picture has
improving steadily since last
spring, and it appears now that this
improvement will continue in 1959.
Inventory accumulation can be ex¬
pected to help boost production, at
least during part of the year. Per¬
industrial production showed a year-
to-year decline of about 6%.
The
been
however, there
has
a
been
"break through" of major proportions,
year when air freight volume doubled and redoubled.
never
a
Even 1959 may not bring the
long-anticipated turning
point, but it should be a good year for air freight, and
should foreshadow the major growth believed to lie
ahead
in
the
1960s.
•
and
prospects
fore, should be favorable.
FAEGRE
Ontario
for
ably
Paper Company predicts
increased
sales
volume
in
in
somewhat
higher levels
printing paper
usage, while the rising demand for
newsprint
remain
While business spending prob¬
levels
present
near
during the
convince
"With the expected rise in general business in
and
consumer
a
level above that of 1957, production of industrial chem¬
icals for 1959
time high.
as
a
whole should reach another
The increase
over
all-
1958 may equal the past
long-term growth rate pf about 8%
quantity of sales of the
new
a year.
The physical
Hercules Powder Company
is
goods should call for
added quantities of protective
pack¬
expected to share in the improvement shown by indus¬
aging
trial chemicals.
and
label
tiplicity and
for
also
grow
as
improves.
economy
The
mul¬
of papers required
commercial. purposes
general
should
papers.
mass
the
At
national
the
same
time, accelerated activity in residen¬
tial and commercial
building is ex¬
pected
for
and
R.
Faegre
the
to
stimulate
many
acoustical
greater demand
structural, decorative
insulation
board
products marketed by the company's
InmMte
Division.
In
addition, the
steppcd-up pace of public utility installations to serve
expanding population centers, and the reactivation of
railroad maintenance schedules should benefit
pole, post,
'
The outlook for
'
:
.
by Hercules is favorable.
anticipated
are
Increases that
in
iron
ore,
are
well above
bituminous coal,
steel, household appliances, plastics, and passenger
production.
protective
Favorable increases
coating,
rubber industries.
cement,
are
expected
furniture,
car
also in the
and "synthetic
In summary,
These
product
a
plan from which
will
be
no
realized.
factors, plus
ALFRED
M.
GHORMLEY
President, Carnation Company
commenting
ness,
on
the 1959 outlook for the food busi¬
it first may be helpful to briefly outline Carnation's
diversified operations.
The
company now
includes nine
operating divisions, their principal products being Evap¬
orated
Milk, Instant Non-Fat Dry
Milk, Malted
Foods,
Stock
Fresh
Milk
Milk, Dog and Cat
and
Poultry
Feeds,
and
Ice
Cream,
Frozen
Foods, and Cereals. Foreign markets
throughout the world
are
served
United
a
controlled affiliate. In the
and Canada, cans are
States
manufactured
in
10
plants, both for
and for sale.
It is evident
that, as a factor in the
industry, Carnation's destiny is
closely bound up with both the do¬
food
mestic
and
p
the
world
economy.
For the most
1959 is expected to be
of industrial chemicals
a
or
return
the increasing acceptance of the
family and business
financial counselor, lead me to believe that 1959 will
be another "good year" for the life insurance business.
-
a year
of signifi¬
improvement in general business, and production
high level by
man
life insurance agent as a professional
in
cant
the average
be
people.
use
average
will
„
through
virtually all of the industries served
it
Offsetting these negatives, however, are fears based
national and international economic and political
unrest that drive people instinctively to the kind of
self-provided, personally controlled, financial security
provided only through life insurance.
Also, the life
companies have wisely geared their policies and mer¬
chandising techniques* to the varying needs and pur¬
chasing power of all economic levels, thus making life
insurance more attractive and easier to buy for more
In
1959 to
,
to believe, for
1959
on
first
ipated during the last nine months of the year.
its
product classifications during 1959.
Earlier and larger local and national
advertising pro¬
grams now planned for 1959 should
result
will
in
Many elements in; the political and
economic ' p an or am a,
including
labor's approach to wage rates and
government's approach to the na¬
tional budget, are geared to immedi¬
ate needs and add fuel to the already
roaring fires of inflation at a time
when all of us should be stamping
out this potentially dangerous blaze.
These factors, coupled with the still
W. Rankin Furey
prevalent misconception that with
life insurance you must die to win,
continue to inhibit the distribution of the product.
quarter of 1959, revival in capital expenditures is antic¬
several
of
Consumer expenditures during 1959, there¬
.
ROBERT
The Minnesota
income is at record levels and
■
President, Minnesota and Ontario Paper Company
favorable
sonal
still rising.
—
I
A. E. Forster
.
reason
that he should invest current income
year,
' President, Ilercules Powder Company
pehefratibn
ffveight; markets As business conditions irtipruved iti the
no
that
example,"
immediate
^
FUREY
President, Berkshire Life Insurance Company
will be subjected
short^-the
some¬
already too high. Unfortunately there is no probability
place, however, as far into the future
we can see, conditions being such as they are.
There
bound to be a day of reckoning. "
not
to strikes and will be re¬
tarded thereby.
Inflation will be carefully watched by
the government, and curbs will be placed on the economy
—if it should appear necessary.
Savings will increase
?; about 5;t4%.v Profits will be greater for the businessman
S and the stockbolder. Wages and salaries will be higher.
prop
handouts at
that this will take
,
The cost
at just about the present rate.
employment. Wages and salaries
more
more
else's expense. There is only one answer and that
is decreased spending and not increased taxation, which
one
remain
be
Business
expand sharply
the new, large jet and jet-
aircraft go into service, and as;/
four^engin^ piston.' a'fbcr a f t with
will
will
will increase/
beginning.
Airline
cargo has been the
this-capacity should
as
living
There
chief limiting control on the volume
and rate of growth of air freight, and
in 1959
spending
Prices of goods will not be greatly changed.
increase in cargo-lift capacity
that
more
highways will be pushed.
of the individual carriers.
some
be
be going from
are
"calling the shots" in Washington. They are
listening to the unwise clamor of the multitudes, organ¬
the Federal and state governments and the sub-divisions
of the latter; also business will spend more.
Federal
will
may
men
DeCoursey Falea
should be good and better than 1958.
two
figuring that inflation
so-called "creeping" stage to a "walking" stage.
It is my belief that the spending by the Federal Gov¬
ernment is out of control. Politicians rather than states¬
An increase of 20 to 25% in domestic and international
air freight is the minimum that can be
expected in 1959.
caused many investors to rush into common
This fear undoubtedly stems from the fact that
the public is
by $8 billion. Elec¬
output should be 8%
last year. Retail trade
power
has
stocks.
about
should increase
EMERY
Hovey T. Freeman
Government in spending a great deal more than it takes
in,
1,000,000. Mortgage money may be
slightly higher.
Net inventories
President, Emery Air Freight Corporation
or
prices has more than made up for the drastic
(due to rising interest rates) in the market
Municipal bonds. Fear on the
part of the public that bond prices may go still lower as
the result of unsound policies on the part of the Federal
in home building 1959 will be a good
year
two
The advance
in stock
.112,000,000 tons from 87,000,000; and
weight, we will be surprised, and pleasantly
so, ati the strength
and intelligence of the. American
people as a whole.
■
/. ;
>
:
C.
will
earnings
shrinkage
our
no
JOHN
there
anticipating
value of Government and
voice
public opinion actively do so, instead of often hiding
heads in the sand under the delusion that
carries
steel
has
three years from now.
°yer. 1958. - In .autos, the unit, total
will.be 5,500,000 from 4,200,000;. in
position do influence
a
.
regards finances, the stock mar¬
been very good to us but
appears to be "top heavy," appar¬
:wiU be a definite increase in output
banker, I think it is my personal.responsibility^ to m
can to help my customers and friends, under-
a
do what I
' :
As
ket
.
-
It
my
feeling that industry over¬
built in the past decade and that the
slow-down in new construction will
continue for
grant the .proposition
York''
ing is that
during the recent recession.
is
-
will
surplus that
a
We
.
Factory Mutual Companies, for whom I speak,
in prior years due to industry hav¬
ing cut back on its plans for expan¬
well be a year in which U. S
-—•«
have been years of heavy losses for
in the business, but during 1958 losses
as
Present indica-
in general.
our
create
area
everyone
the
returned to the normal expectancy. The growth in new
business in 1958 has not been as large
This is also true of the Upper Midwest manu-
f
our
cienfly to not only put
about
for
products industries represented by
facturing and farming
:
FREEMAN
T.
The last few years
■;
and
37
President, Manufacturers Mutual Fire Insurance Co.
low-point has been evident in the paper, building
Mando.
public
private debts will have to be paid-of-repudiated.,
and
HOVEY
preservative
and
Steady recovery from the second quarter 1958 reces¬
-
heights of Government, State, Municipal, corporate and
in 1959, we are going to have to face the fact that
lumber
industrial
Division.-1
us
astronomical
also to
and
cross-tie,
treating volume for Mando's National Pole and Treating
.
ever-increasing wages has ^brought
unprecedented good
piling,
the excess of
cover
r»*'■
(433)
should exceed the
comfortable margin.
1957 all-time
an
part, business is effectorderly emergence from the
which
should
recent
recession
vide
Alfred
M.
Ghormley
sound basis for sustained re¬
a
covery.
pro¬
As for the food industry, it has
demonstrated
on page 38
Continued
■
The Commercial and Financial Chronicle
(434)
38
Continued from page
1959
37
notable resilience and
vitality, having been among five
non-durable industries which, in October, exceeded their
1956-57 production peaks. Based upon current perform¬
ance
of the
industry and that of our
look forward to
factors
own
business,
good year in 1959. There
a
lead
which
we
several
are
to this conclusion.
us
Population growth, according to the most recent statis¬
tics, is continuing at an even higher rate than was indi¬
cated by Earlier estimates. The trend of spendable income
indicates that in 1959 the great majority of American
families will be able not only to enjoy adequate food
requirements
quality
actually
but
continue
to
upgrading
the
20
sumed in this
the entire food
ago
years
volume
country amounted to $16 billion.
it is estimated to reach
75%
would
con¬
In 1958,
the almost unbelievable level of
do not
;On
the
"built-in"
convenience
refinements
and
the consumer has demonstrated
price. This will
for
willingness to
a
which
the
pay
not only greater consumer benefit
mean
and
enjoyment but also wider markets and opportunities
for
distributors,
manufacturers
and
producers
of
raw
material.
Nonetheless, we are keenly aware that Carnation or
any other company in the food industry cannot hope to
simply "inherit" a good year in 1959 by virtue of these
apparent favorable factors. Operating costs will continue
to increase in 1959.
Some of these will have to be passed
while others will be offset by greater efficiency and
productivity, or just be absorbed. This will intensify the
already major problem of maintaining increasing profit
along with expanding sales. This problem will be further
the
by
competitive
more
will prevail in
undoubtedly
situation
which
1959.
All in all, however, it is our belief that 1959 will be a
good year lor the food industry providing product qual¬
ity and innovation, together with efficient operation and
sound marketing practice, are vigorously maintained.
Our
economy
technology to
has evolved from the
war
emphasis
on
postwar emphasis on
marketing. Todaywe
face the challenge of a recovery situation which
demands, a dynamic combination of creative marketing
and creative product development.
Our
"Mr.
business,
and
Mrs.
have
we
a
in
business, ultimately is "ruled" by
as any
Consumer."
1959
will
be
kind
The
determined
of
business
year
by how well
we
anticipate, influence, and fulfill the needs of America's
consumers.
President,
the
new
Brothers,
Inc.
general recovery which started during the early
months of summer is lifting consumer incomes to record
levels.
Employment will probably
reach
peaks
new
riod
of
moderate
downtown
thing
on
branch
during
their
potential
increases
We
a
in
pe¬
which
full
markets,
have
still
share
Gulf States Land
not
of
will
expect
increase,
and
a
company
serve
the public by
The
product.
We
process of
manufacture
its
product in diversified
forms, such as:
ingots, billets, hut rolled bars, plates,
sheets, forgings, cold drawn shapes,
drill rod, cold formed
shapes, tubing,
etc.
Such
results
in
wide usage of our
steels
sales usually coincid¬
our
sale
P.
Gill
of
these
products
for
1959
likely to be greater than others.
Our general business has been
in¬
creasing slowly but definitely since
months and it appears that this increase will
continue through 1.959. Since the materials of our
manu¬
facture must be further fabricated by the
the
summer
The
in
purchaser,
our
industry there
several
are
needed
usually
and
for
compete
technological
advances.
support extensive re¬
can
therefore
are
frequently better
There are
business.
government
effectiveness
large
America's
of
defense
now
of the creative efforts of the
measure
depends
men
in the
electronics industry.
business
increased
spending,
working
hand
ALBERT
Chairman
enter
'■'v'-i://
1959
as
in
for
the
past
1958 is the
crops,
be
view
with
.
first in the build¬
are
we
with
cooperation
the
These
combined
monious efforts
smaller
closest
kind
of
with
participation
and
Federal, city and state govern¬
ments.
for
are
but
which
in
and
*
har¬
pilot projects
coordinated
of
area
new
a
endeavors
we
will
Greenfield
see
private enterprises join with governmental agencies in
far-reaching undertakings in industrial growth, trans¬
portation, commercial and housing construction, expan¬
in education, in developing power resources and,
indeed, in planning and financing of the modernization,
sion
some
rehabilitation
This
is
a
and
renewal
and
new
of
our
cities.
enlightened approach to problems;
still, it is only the application of the proper function of
W.
government in the complex of problems which the city
GODSEY, JR.
rapidly growing segment of
of
supply the advanced
military forces during
defense/ The
electronic
our
national economy1,
equipment requirements of
period of major evolution
of
expenditures has
^
nuclear age
,
presents.
•
experienced a threat of a
recession of sizable proportions out of which we are
presently emerging—largely because of private business
leadership in our efforts to meet the demands placed
upon us by our position of leadership throughout the
world, coupled with an ever-increasing need for eco¬
nomic expansion to satisfy our domestic needs.
Our present annual rate of growth of 3.7%
of our
Gross
National Product is substantial; yet, it is not
enough if compared with the comparable growth of
a
volume
the
During
industry; most of the increase
to
defense
•
privately-developed nuclear,
a
launched
President, Electronic Communications, Inc.
national
with
the
our
The cost-price squeeze will
farm families to seek to augment their in¬
through jobs in industry.
also
dedication
plant as recently announced
Philadelphia Electric ,Com:'panv in association with 50 other
/ private
utility organizations.
Both of these enterprises are being
by
many
We
the
is
power
farmer, whose
should
Company
Stores
The other is in the signifi¬
that
ing of
Contributing to this will be
production, rising costs and
year.
first
cance
only segment of the population which likely will
well off in
City
economists are beginning to call the new
Age of economic development in this country,
activity.
by gains in income from
all sources—wages,
salaries, investments.
Higher personal income, an increasing population and
expanding industry will help the home construction in¬
dustry to maintain the gains it made in 1958. Our own.
company's operations in this field, for example, are
improving with a pickup in industrial development along
as
GREENFIELD
what
The
than offset
more
M.
Board,
which
we
are
moving forward
in
the broad complex of urban renewal
living will show a slight uptrend because
stronger inflationary factors, but the increase in living
be
the
projects in Philadelphia, announced during the
past year, are symbols of the growth before us as we.
spending by consumers and more
schools, hospitals, sewerage and
economic condition.
of
Two
in
..
the
past year,
we
'
from $560 million in
grown
1950
to
'
$4 billion in, 1958.
over
The chang¬
ing
composition of major military
procurements, brought about by the
impact of technological progress, is
easily
fense
and
bombers
new
fight¬
ground
these
controls
techniques
to
are
devices
and
utilize
each day.
or
on
As
electronics
a
their
electronic
an
a
are
factor of fundamental
this,
efficient
we
must
That
importance: development of
and
concentrate
positive
on
methods
devising more rapid,
for delivery of such
several
other
countries
as
well.
This
City and beyond.
our
this
eyes
is
is the
a
practical reality, taking shape before
for renewed demands for regional
reason
cooperation among local units of government and for
markedly increased State and Federal participation in
atomic and hydrogen bombs appear to have reached a
peak of almost unbelievable destructive power. In view
of
of
national policy in the year ahead.
It has already been
recognized that the Philadelphia marketing area of 10
counties of Eastern Pennsylvania and South Jersey will
expand within the next few years to a regional area
ranging from
Trenton, New •- Jersey
to Wilmington,
Delaware. Even this is but an intermediate step in the
prospect with two decades of a megalopolis complex
which will draw into a single orbit an urban and indus¬
trial range running from Norfolk, Virginia to New York
capable
of
supersonic speeds and with the em¬
phasis on guided missiles and nuclear
weapons,
and
expansion must be in urban activities, for industry is
essentially an urban endeavor. It is for this reason that
urban renewal and the development of regional concepts
in city development
must receive top priority as a
followed in successive 'DeDepartment budgets.
In the
1959 aircraft program all
ers
Russia
.increasing extent
F. W. Godsey, Jr.
result,< expenditures
rising substantially.
Entirely new and vastly mote effective radar and elec¬
tronic communication equipments are required for bal¬
is listic missile
detection, tracking, and control systems.
These rapid changes in military weaponry are based
ing with the general manufacturing
index; however, some of our
steels,
such as high speed
steel, are subject
to
inventory adjustments and the
to
Golden
in
make, somewhere in their
production
activities,
drainage facilities, roads and streets and other public
facilities, will raise the level of employment and pro¬
ductivity and result in a healthy but not spectacular'
our
manufacturer, regardless of
he
makes, must use
something we or our competitors
manufacture.
James
with
for 1959 is the electronics
product
to
government outlays for
is
Every
the
increased
hand
helping to fight
Our company produces
specialty steels, which include
tool steels and hundreds of
compositions for special ap¬
plications. We do not manufacture a
finished or direct
electronic
The recent establishment
use.
electronics
corporations
industries will be followed by establishment
larger number of processing industries which will
convert the new basic products into consumer
goods.
F.
Vanadium-Alloys Steel Company
consumer
by
year
Gimbel
President and Chairman of the
Board,
is
to
smaller companies that specialize in research and
development, however, and do an outstanding job. No
what level its operation, the growth of every
company in defense electronics is finally determined by
the professional standing and skill of its research and
development staffs.
the situation.
GILL
defense
basic
A
JAMES P.
n
matter
apprehension, prospective
developments in the labor field, which could be a de¬
pressing, or at least an unsettling factor.injected into
A.
certa
a
cause
Bruce
componentj
tension
many
declining Federal payments.
in¬
the
able
of minerals, forest, agriculture and water.
This
growth, after a slowdown in 1958, is expected to intensify
in 1959 and subsequent
years. This continuing expansion
sales
tends to capitalize on it by doing
everything within our power to keep
prices down and to
inflation.
&
sources
of
and
remain
Larger
the end of this year at the rate of
compared to the current $62 billion.
Louisiana, industrial growth is principally in basic
industry which is being attracted by extensive local re¬
in
systems
international
the market for advanced
years,
will
search
income, despite expected good
believe
we
be
a
With
develop,
bring
new
smaller prices for increased
period of intense
our
spending for
In
.<
that 195,9 will be
competition
that
will
$70 billion
come
belief
our
being revived and the
of
electronic
the final end product. At each level competent research
and development efforts are required to
originate and
1958
cial and residential
purposes, is watching with great in¬
terest the spending plans of business which economists
than
the
on
only two or three years old,
probably show increases in the
neighborhood of 10%.
spite
in
In
Industries, Inc., which is engaged
developing thousands of acres for industrial commer¬
in
The
average
In
are
higher level
a
which
in
the
levels of production leading toward an end product for
the ultimate customer, the government. They range from
individual components to integrated weapons systems,
plant and equipment.
not be
will
volumes
curtailed
or
see
plans
for
accurate, effective
most
reliable electronic
this situation the demand for ad¬
and
Research Projects Agency further em¬
phasizes the major participation of the electronics indus¬
try in the massive outer space research program.
,
their
of
being
will
year
Expansion
:/;
develop the most
both airborne and surface
the New Orleans-Baton Rouge stretch of the
Mississippi
River.
our
department stores some¬
the order of 3%.
Our
stores
captured
1959.
business look for
economy.
H bombs. Superior elec¬
or
of the Advanced
rate
sidetracked
were
costs will
The
in the retail
national
upon.
fare, missiles, aircraft, and communications and radar for
The cost of
GIMBEL
Gimbel
slow, continued improve¬
probably be
during 1959 as the fear of unem¬
ployment is dissipated.
This consumer willingness to spend during the
past
year, despite the recession talk which he heard from all
sides, is imbuing business with a greater confidence in
increased
an
of
A.
GODCHAUX
business quarter by quarter leading up to an
even
belter year in 1960.
Consumer spending, which was checked remarkably
little during the recession year of 1958, will
at
relied
be
strong.
Companies qualified to
and produce the required electronics
have outstanding opportunities for service to the nation.
The principal areas in which the Department of De¬
fense requires electronic advances are for underseas war¬
ment in
/■
BRUCE
military
established.
devices
President, Gulf States Land & Industries, Inc.
a
to
race
weaponry
continue
"
see
will
lives here too.
save
counterraeasures.
vanced
well
create,
195,9 should
payload
prevention of border harassment
international
offensive
general steel strike take place in the com¬
ing summer, it would greatly upset production in most
of the industries that we serve.
;'■■■
on
aggravated
can
an
ing in the
a
The year
the
basis, research programs of the
United States and of its principal antagonist are compet¬
most satisfactory and sufficient to
substantial profits for this company. How¬
LEON
the
as
necessarily inchoate A
tronics
of capacity,
$41
billion, even as adjusted to constant dollars. This
represents an increase of 156% while the population was
rising only 35%. Thus, during this period, the dollar food
consumption per capita will have increased 89%, due in
a large measure to consumer upgrading in quality.
The food industry, including our own company, will
continue to introduce new and improved products in
1959. These products will provide to an increasing degree
devices
which
waif are, in
not'utilizing either iission
weapons
Police actions and
consider
should
ever,
fusion
or
,
we
conventional
more
industry, operating in mid-December at
is ample proof of this state¬
ment We do not expect our sales in 1959 to equal those
of either 1956 or 1957, but we do expect a substantial
increase over 1958 in the neighborhood of 15-20%
which
rate of
Thursday, January 22, 1959
.
recognize the probability of limited
-
cation. The steel
a
.
weapons, if need should arise, and for preventing their
possible delivery by others. To reach this objective re¬
quires major advances in electronics.
We must also
that all types of manufacturing and business were back
to the lush days of the summer of 1957.
Certainly, this
is not true with general metal manufacturing and fabri¬
result in very
unit value of their food purchases.
or
than
Less
business will depend
upon
general construction
(including roads, factories, homes, etc.), the sale of auto¬
mobiles, trucks, airplanes, household equipment, machin¬
ery and an almost unlimited number of other products.
Some general business indexes would have one believe
.
the
planning, the financing, the
birth
of
our
revitalization, and re¬
cities.
'
-
The
renewed
requests for increased
attention
at the
Volume
189
Federal
level
5814
Number
for
the
.
problems
of
is not
cities
our
However, present indications for 1960
a
sales
question of pushing local burdens onto larger provinces
expansion
of
are
for
creasing demand for our product.
the problems them- 1
It is, rather, that
government.
selves
the
both
transcend
economic
territory and facilities to
greater
meet
in¬
political jurisdiction of cities and states, and must , seekthe solution at the proper level.
Decisions of this kind
not and cannot be political ones, since they are born of economic realities. The call on the part of cities and *
B.
HALL
\
participation is but
.
national government recognize what is already happen- *
ing in the economy of our nation and that they apply "
sound political solutions to the problems created by the ;
economic growth already in progress.
\
The normal growth of our metropolitan areas — en-'
gendered
by the necessary expansion
of our great
industrial complex to meet the demands of our dynamicnational economy — will speed prosperity throughout*
every phase of our local business activities. ' To meet '4
that challenge in the best interests of all our'citizens,
it is necessary simply to match the most diligent kind1
of application to each job with the broad gauge planning*
f
'
;
v*
-
If
we
measure
to this great challenge,
up
.
1959.
of its
we
:v^5; v.:-
•!
is
reaction.
think
I
it
We
accounting of
an
ha
all
us
v e
our
country.
such
upon
a
Never have
tremendous inflation
casually and
so
ually.
seems
It
„
have
never
borrowed
.
much
in
,
-a
*
protected
•
fortunate
from
us
ing
the
of
t
.
/
;
/
to
seems
and the building of
us
:
with
To
greater extent
a
than
brands
our
company, as
and
will
4
number
of
age in our
From
of
:
population.
Falstaff's
optimistic
presaged
beer-drinking
outlook
by
r/■
of
hard-hitting marketing and
tion
which
program
consistently
reap
dustry's sales in
ritory. /
a
industry,
of
-
an
average
about 16%
Joseph Griesedieck
in
to
marketing ter¬
penetration
of
H.
'
of the total beer business
marketing area. Al¬
though this market territory contains
in
the
nation's
on
the fence.
meet
the
increased
demand
will
be
foolish
not
to
immediately, despite any prior plans to the con¬
Smart managements will anticipate machine tool
their minds quickly.
intensify the familiar chain re¬
action thorughout the economy that normally results
from higher levels of investment in capital goods.
.With the inevitable resumption of the creeping in¬
economy
and make up
will
speed and
in costs, furthermore, capital investment in better
plants, machine tools and tooling details will be a com-mon-sense
means
of cost cutting for many companies..
crease
Our sales estimates for the next two years show about
5% gain each year in existing markets.
SPS, a leader in the precision fastener field and vol¬
producer of steel shop equipment and office furni¬
ture, has purchased more than 1% of the output of the
U. S. machine tool industry for the past two years, and
.
The
than
brewing
others
economy.
last
year
industry
is
downward
somewhat
-
Although
1960
vulnerable
the
earnings
total
for
despite
higher
wage
and
year
this
material
modernization.
reflected
year
costs.
and
in
Some
price-cost squeeze is expected
price increases effected late last year in St. Louis
.Shipments from
our
most recently acquired
oldest
and
least
brewery,
With the closing
efficient
unit, Plant One, com¬
bined production capacity of our two St. Louis plants
now
reaches a new high of 1,500,000 barrels annually.
This year our plans call for further consolidation of
our
our
recent
in the
gains, with no new major market expansion
picture.
the
spring,./
of relief from the
Plant 10 in St. Louis, began last June.
expects to continue its consistent expenditures on plant
The company has invested $30,000,000 in
/
last
and fringe areas.
of
ume
nation's
detrimental effects of work stoppages in the
measure
from
in
.
our
anticipate increased earnings both
we
less
fluctuations
For thht reason, total beer consumption for.
should show little, if any, effect of the 1958
recession.
some
to
"
squeeze
is
Haney
_
inadequate correction of the maladjustments
during 1955-56. Overcapacity and high ratio oi
inventories to unfilled orders continue.
There is no
rest on the
sustained recovery in general
The general background of sentiment is not strong
say:
A moderately higher level in 1959
Others say: Higher in 1959; but look out for a crash in
1960 or 1961. (Both groups look forward to a business
heaven in the remote thereafter, 1965-75)
past five years.
'
During the rapidly receding recession, customers be¬
used
came
better
to
service
prompter
at
deliveries, higher quality and
price—ingredients that have,
extra
no
universally applied to rebounds of the past. These
elements will be retained, though, in the new and better
not
business
game
1959,
of
at least
by those shrewd ones
who will make maximum use of the
Firms
must
its control.
take
a
new
There has been
look
a
potentials.
.
at their inventory
and
virtual clean-out of inven¬
most fields, but it's just not possible to take
mounting customer requirements from empty
shelves.Those who continue to maintain them will
tory
in
care
now.
of
(7) The emphasis of a possible steel strike, while
having some short-term "bullish" effects, adds to uncer¬
tainty. The strike is less likely than it would have been
in years past, because of
(a) narrow profit margins,
(b) foreign competition, (c) big capacity, (d) relatively
high inventory, (e) tight credit, (f) absence of business
boom, (g) clouded auto prospects, and (h) smart laboi
leadership which may well decide to postpone demands
under these unfavorable conditions.
(8) Credit will be tight, and this will put a crimp in
speculative residential building.
(9)
Short-term effects of external convertibility of
European currencies in weakening' the competitive posi¬
tion of U.S. industries will offset hopes of long-term
benefits from reduced inflationary tendencies.
Result: Business should tend to sag in 1959.
Cotton
on
business
or
have to
pay
in profits for
textile
outlook
Favorable developments are: Some
liquidation of high-
plant, spindles in place reduced, inventory reduced,
some
recognition of overproduction (shown by partial
curtailment). A November spurt in orders makes a fairly
active first-quarter probable, and manufacturers' mar¬
cost
improvement.
gins show some
The favorable
developments are limited by offsetting
strength depends on curtailment
conditions: The show of
by a part of the manufacturers (not a "position of
strength"). The gain in unfilled orders represents orders
lower prices tfcan now quoted.
Stocks of goods are
still too high, being only a little under February 1956
or the peaks of 1951 and 1952.
at
Unfavorable
ability
factors:
Wide
of lower raw cotton
acceptance of the prob¬
and ample "free" supply;
domestic consumption (since Febru¬
5.04 yards per capita) still
exceeded by production; high ratio of inventories to
unfilled orders (53%); demand for finished goods show¬
ing little tendency to expand.
The cotton textile situation somewhat resembles mid1949 or mid-1952. Some basis for a cyclical recovery has
been prepared; but, as in general industry, attempts to
prevent thorough readjustment, by resorting to curtail¬
ment and price maintenance) are causing uncertainty as
foreign competition;
1956
ary
averaging only
,
to
timing.
Result:
inventories and
forward
/
.
.
Little
buying,
which
■
makes
i
,
large
productive capacity unduly burdensome.
gradual recovery is to be
But, after another reaction,
expected.
.
either lose out
Some
-
picking up and new
orders coming in, companies that need new equipment
order it
early last
year, Falstaff registered new records in 1958, both in
dollar sales and barrelage. Net sales topped
$100,000,000
with about 4,500,000 barrels being sold.
a
remain
T. Hallowell, Jr.
This
decline
of
prospect
With business
to
.
a
imminent
.'
sales
;
Despite
feel that all segments
the
by
1 most
economic
authorities, should
tip
the balance
on
many
capital
equipment orders, particularly for
L
machine tools, that might otherwise
only 42% of the total United States population, and but"'
trary.
33% of the total national beer consumption, Falstaff is
needs
the third largest brewing firm in the nation in terms
of sales.
we
the
The
25-state
our
1959
fabulous '60s, generally expected
Our policy of depth sales has given
us
for
in recent boom years.
-
our
us
expenditures
upswing by mid-1959.
The rebound, though, is introduc¬
ing a different kind of game, as
many industrialists have already dis¬
covered, with ingredients not present
/
promo¬
enables
Co.
metalworking industry most
certainly will be participating in the
share of the iii-*
our
Steel
In contrast to the generally good, but somewhat uneven, recovery throughout
standpoint, this
is
principally
continuation
a
capital
anticipate greater
particular.
,.
people
Pressed
generally predicted—and thus better business for
the overall economy and the metalworking industry in
we expect tnere will
substantial increase in the
a
H.
profits
stock market
readjustment is warranted. /
'
(5) The
three
foregoing points
clean, clear-cut base for
business or in textiles.
HALLOWELL, JR.
Standard
that
is
L.
Prof.
a
a severe
(6)
We
Prospects for our
well as the industry—both in 1959 and the
longer range — appear bright.
One
be
(3) Fear of
widespread.
(4) Fear of
built up
than
-
continually rising.
soon
fight to maintain their
Kroger puts the choice up to the
continue to stock the brands they
THOMAS
H.
GRIESEDIECK
reason
battle for the
the
before,
must
plain
some-
Although the brewing industry's sales figures have re-.
fairly static for the past few years, sales of Fal- *
been
competition
of
and
indicate they want by their purchases.
mamed
have
convenience
improved products.
Cost conscious shoppers may give an edge to less ex¬
pensive or private label items in some areas. However,
acceptance of national brands reinforced by extensive
customers
President, Falstaff Brewing Corporation
staff
the
pressure
new or
superior
our
even
established
President,
•
no-muss-no-fuss
what.
JOSEPH
by
advertising is strong.
-
payment of debts,
a
will protect ourselves
we
dishes
/;.
popularity against
William L. Gregory
Then if
reserves.
joined
Only
of output.
/
intelligence and excellent planning and
good luck should fail
.
~t.v
retrenchment,
some
been
off.
ending strikes in
automobile, copper, and related in¬
dustries, obscures this fact.
(2) Much uncertainty exists,
(a)
Price trends are affected by foreign
are attract¬
dollars, particularly
now
rounded
effect of
customer's dollar will be waged along retail store shelves
that this might be the time for good
me
reasonable
a
has
1957-58
where
un-
sober American businessmen and other citizens to deter
on
..
recession of
(1) The considerable rebound from the
delayed
food
important facts bearing
general, and cotton textiles
and reduced exports,
substitutes, over-capac¬
ity, large unliquidated inventories,
and political policies, (b) Costs are
subject
to
labor
demands,
tight
money threats, and limited volume
serving
should not depend upon them to carry on this
It
the outlook for business iii
particular, are:
full flavor.
impossible job forever.
mine
-
January 1, 1959, the most,
On
on
in
and casserole dishes which come in plastic
bags, to be. heated "in. the sack" and then transferred to
think
/
/
consumer
;
HANEY
Consultant to Chicopee Mills, Inc..
Association of Purchasing Agents
Economic
vegetables
things that
could
have
from
this inflation but I
we
more
LEWIS H.
and National
of frozen foods.
area
gains
'
<
// Complete frozen dinners have
resulted
.
DR.
*
shelves, the ready-to-serve foods
and
more
i
company's natural
B. Hall
as
in the
the/average
• /
some
Joseph
growing
On store
so
people
individthat there
to grow in the healthier
growth pattern, which saw the firm rack up sales
of 20% or more in each of 1955, 1956 and 1957.
their
product manufacturers.
Federal Reserve Board has very ably
v
streamline
Corporate performances
ahead.
anticipate a resumption of the
We
dishes rather than base products are among the develop¬
ments under way or planned for the near future by food
..
:
manufacturers-
operations and to develop more
handling methods. Proces¬
anticipate more packaging at
to
years
performer should- be expected
environment unfolding.
convenience
source and transport and delivery of such
flour, shortening, and sugar in bulk in speciallydesigned rail cars rather than in boxes, cans, or bags as
time and effort saving features. Automatic manufactur¬
ing methods which speed production and reduce Costly
handling, .and new facilities for producing complete
American family.
/ It is unquestionably true that the
/
of
food
better
during 1958 could well be an enlightening indicator of
future form.
Certainly the better-than-average current
the kitchen.
led
much
the
processors
the
our
me
in
:
-
past provided virtually all managements with
opportunity to take stock and lay a foundation for
an
convenience foods
more
popularity
has
items
economic
money
to
situation
budget
The
sors
is quite a bit of danger in this tight
•
and
will
depreciation)
(net after taxes plus
all-time high.
The year
same
efficient
looked*
we
an
time
save
through the longest and most severe
..period of inflation in the history of
-
earnings
be at
—prepared, ready-to-heat dishes that
,.
.
Cash
own
*
position.
unquestionably
gone
our
continuing search
a
and
serious
of
field, anticipates record sales for 1958 ($65,000,000
against $61,740,000 the preceding year) with only slightly
reduced net earnings, (after
depreciation and taxes).
efficient operating methods,
more
items
threat
behooves
•
.to take
the
advance, during the past year.
SPS, an accepted leader in research and development
in its
time, there
growing demand by homemakers
a
for
truly Golden Age.
escaped
anticipate
more
ing business. At the
WILLIAM L. GREGORY
have
to
expanding population alone, the food
good in
continue
*
Companies with needed new products and efficient new
plants generally managed to hold their own, if not even
necessitated by the rising cost of do¬
The outlook for 1959 is at this moment generally good.
It seems to me that we have led ourselves through a
very difficult time during the last 12 months but we:
seem
We
for
President, Easton-Taylor Trust Co., St. Louis, Mo.
;
should
Moreover,
reflected in increased food sales.
af the'
are
of
improvement ' of
business conditions generally will be
<
threshold
basis
business
has made America great.
and individual initiative which
Kroger sales during the year.
On the
-
1958 pointed up the value of continuing re¬
search and the deficit of obsolete plant and equipment.
The year
an optimistic but
challenging picture for
industry in 1959 and anticipates a 7% to 8% in¬
in
crease
will just be
reduction savings.
another way to effect cost
/
We envision
the food
request that our;
a
increasingly high cost of clerical work in doing
the
Business, a sound investment in inventory
President, The Kroger Co.
are
states for Federal
beyond considerations of customer service
And looking
to
JOSEPH
they come
having to "nickel and dime" new orders, as
in.
,
the '
and
resources
of
39
(435)
The Commercial and Financial Chronicle
.
.
'
Continued
on
page
40
40
(436)
The Commercial and Financial
Chronicle
Continued
jrom
l.
a.
of
during 1958 boosted the winter margin of reserve
plant capability to approximately 27%—a new postwar
record.
optimistic
opinion trend of consumers, manage¬
ment leaders, business and financial groups as indicated
in authoritative surveys and voiced at conventions has
been considered in determining the outlook for the ex¬
press traffic potential and revenues
in
1959.
'
Opinion
indicate
most
they were
better off in 1958 than in 1957, are
confident there are good times ahead,
and expect to improve their finan¬
cial condition in
that
1959.
of
additional
and
consumer
*
J
1959
should
gain of about 5%
a
1957.
over
Revenues
closely parallel the 8% annual rate of'
to
total of $9.4
a
7"V;77'7;7: /;-7777777/77:'-"' 77-77;
electric
;7'
revenues.
Privately-owned .electric utilities,
earned only a 5.8%
return on total
A.
L.
Hammell
facilities.
financial
of
Earnings available to common stockholders of the pri¬
vately-owned group increased from $1.25 billion to $1.33
billion or about 6%
during 1958. Such rate of gain was
below past annual earnings growth of about 8y2%. For
the year 1959, earnings should exceed $1.4 billion for a
gain approximately matching the expected 8% gain in
higher sales volumes. A great many
are
moving ahead with plans for
plant extensions and the construc¬
Banking
watts.
billion.
commence, ousiness leaders are al¬
most
unanimous
in
preparing for
greater
production
schedules
and
tion
kilowatts
growth experienced in recent years
They plan to
Supporting this attitude of
million
ipated December, 1959 peak load of 130.5 million kilo¬
$8.7 billion for
,/ j 77 ,7.7-
.
13
generating
capability is expected to be added during 1959. The total
industry's 163 million kilowatts at 1959 year-end should
provide a margin of approximately 25% for the antic¬
in
increase their purchases of all types
of goods and services during the
year.
Another
Electric revenues of the privately-owned Class A and
B electric utilities during the
year 1958
were almost
surveys
consider
consumers
i.
foresee a new boom
toward the end of 1959 continuing into 1960 and do not
groups
composite,
capitalization in
as
a
1958, or approximately the same as 1957.
Faced with
the current high?money cost plateau and
no.Jet-up in.
increased operating and construction costs, substantially
higher percent return is vital if electric utilities are
In view of all these favorable factors it is
anticipated
that there will be an increased volume of traffic mov¬
expected to compete successfully with other industries
in new financing.
The gas utility sales growth during 1958 fell below
recent past rates of growth. Total therm sales amounted
ing by all of the
of recession conditions.
recurrence
a
common
carriers of the nation.
Industrial, business and financial groups have hailed
constructive effects of the Smathers
investigation
the
and
report
the
on
situation
of
the
nation's
railroads.
They have expressed the view that the Transportation
Act of 1958 will help materially in
correcting some of
the conditions which have hampered the railroads in the
past. The railroad industry looks for additional relief
from the new Congress to correct other
unnecessary gov¬
The year
ernmental
and
inequities which continue to
and
diversification
position
share
of
of
The
rapidly growing Railway Express World Thruway
Surface Shipping
Service, now linking all points in the
U. S. and shippers and receivers of traffic in 38 free
countries, has been supplemented by a worldwide air
service. Effective Sep. 1, 1958 the express agency
was approved as an Air
Cargo Sales Agent for member
airlines of the International Air
Transport Association
cargo
(IATA) connecting United States points
airport cities of 106 other countries.
the
the
directly
with
keeping with the steady growth in the value, num¬
offered, Railway Ex¬
has streamlined, modernized and
augmented its
terminals, materials handling equipment, automotive
ber and extent of
express services
rail
refrigerator cars. Additionally, the com¬
management, operating and accounting proce¬
vastly improved. They are as modern as
the radio, electronic and technical
advances industry
can
provide. These heavy investments of recent
years
have helped us prepare for the
continuing demands for
pany's
dures have been
during 1959.
•
to
net
income
the
As
approach this key period of the 1960's, Flintkote 7
we
new expansion and diversifica/
possibilities in a never-ending effort to improve
our position as a
publicly-owned corporation, our prod- v.
ucts for. the trade and the consumer, and our
profit-.?/
tion
and
gas
business
utility industry weathered
the
recession of late 1957 and
early 1958
and showed continued
good progress that has character¬
ized the
industry during the post-World War II period.
The
economic
downturn,
held the
however,
industry below its average
annual rate of growth
experienced in
previous years.
The
1959
general
is
boom
business
is
year
to
over
not
outlook
exhibit
for
overall
1958, although
a
to
in
1959 should total $1.7 billion, as compared
billion in 1958. To finance the proposed con¬
$1.8
struction
during
1959, electric utilities expect to offer.'
in excess of $2.0 billion of new securities and
gas utilitiesanticipate marketing about $1.2 billion new offerings.
and industrial
customers. Residential
sales,
to
as
lead
growth.
in past years, are expected
other classes in
percentage
fronting
The
projected future
almost
the progress of such
a^honties. Whether
of
Unfavorable
factors
con¬
nvtr
energy
some 8%, from
kilowatt-hours
kilowatt-hours
sales
-
is
for
1959.
entire
industry's
December, 1958
to
the 1958 total
approximately 542 bil¬
The
anticipated gain in
below the average gain
only slightly
post-World War
experienced in the
The
was
i
"■.• 5.
■
White
Eagle
II period.
non-coincident
approximately
Oil
Company
r
.
,
a
competent business forecast now must
evaluate political factors. This judgment
applies particularly to the oil busi-
these
days.
Economic
factors
affecting the oil 7
1959
can
be relatively
easily assessed right now. With fairly
little variation (i.e. a few percentage v
points) most current forecasts indi¬
that .domestic
cate
will
demand
increase
oil 7
in ,f
expecting r
consumption abroad to increase,;
probably IV2 to 2 times
,
for
slightly
We also feel safe in
1959.
oil
within the U. S.
/tion
rapidly as.-?/
as
The economic ques-.,
concerning
not really
does
the supply of oils
have a short-term
significance: ample supply is avail-.;
able for many years on a world-wide?:
v
Vv.- H.
in
products
?
Helmerich
basis in the absence of selective po¬
litical restraints.
So the effects of political decisions are
of, paramount
now
importance to the oil business. In
oil picture the coming year could be
the international
strongly affected by any change in the status of the cold
by changes in the attitudes of oil producing coun¬
private capital's participation. In
the U. S. political action (or the threat of it) by any. of
war or
tries towards foreign
peak load in
118 million kilowatts,
crude oil sales/'^-F
.
will
demand
:
In
for
the
|7 expect
be
;
Chairman of
.
7*
•
v
to
as
no
continued
in
goods.
Islands
as
as
•
are no
in
•
growth
v
Carl
Hanson
£.
,
The
been
an'
business,
important
which
factor
has
since
World War II, should have a record
year in 1959. Jet planes will begin
> ;
more
fore..
The
tance
from
r' : ; regular runs this year and will carry
tourists to the Islands more
quickly than
ever
•
be¬
•_-•••
construction business has been of
and
the
should
continue
mainland United
so,
through
States
have
great
1959.
,
impor¬
Investors
shown
interest
in the Islands also
and the
new
as illustrated
by the money invested
businesses started in the past few years.
With a continuation of investor
confidence;' Hawaii
should experience a year of
growth in 1959.
the
knew
we
1959;
and
of
1958."
over
store for
If
in
industries,7 the t coming
tourist
-
not
j.
.
quite
j. 7
agree
businesses of Prop¬
approximately
7
how
rates are going to act during
to what extent foreign affairs
money
events
are
going to stimulate
or
/modify government spending; how
popular 1959 model automobiles are
going to become; whether a high
level
of
tained
pineapple. If there
should be improved
do
erty and Casualty insurances.
',
strikes to affect the sugar and
pineapple
year
and
economists
tempting to foretell what 1959 holds
the .chief
of income have been the mil¬
sugar
President,
•
'
itary,.
<
they believe lies ahead for the American
generally for the year 1959, a lay oracle such
I should be forgiven lor keeping all escape hatches
•7\> 7-7'.
in
good working order when at¬
years
sources
,
7>
:
what
the
population and in
past
Board and
the
expert
;/
also
both
diversification
In
.7
;
f7/ American Fore Insurance Group
.,
we
industry.
:
-
economy
lessening
consumer
Hawaiian
\
j: v. herd
nation's population, to¬
gether with a general increase in the
standard
of
living,
indicate
that
there
'
V "
The continued growth of the
up a nominal 1%%
kilowatt-hour sales to in¬
™";Sour ,sales
billion
hanson
are promising. Most bank¬
will remain at its present
up in tempo over 1958.
yAS 3% decline
A «f5eriy'?. sales' were
in
of 502
equally
■Inasmuch
Business conditions for 1959
in the
dustrial customers were
off-set by a gain of
8V2% to
residential customers and
by a gain of 6% to commercial
customers. The higher
general business level
expected
throughout 1959 should be reflected in
increased total
lion
also
agree that our economy
level or possibly even pick
kilowatt-hour sales in 1958
by privately-owned
electric utilities, which
represent 90% of
i
1957.
e.
ers
Class A and B
over
■{:;
the times that
••
President, Bishop National Bank of Hawaii
tion-mark.
Total
a
carl
the
last November's change
the utility industry
Any impediment to
vital part of our private enter¬
of
.
many of the states will affect un¬
favorably sentiment for the much
needed improvement
in. the rate of return
earned by utilities is still
a ques¬
i
3
Forecasting business conditions used to mean princi¬
pally the evaluation of economic factors. It is a sign of
industry.
prise system should be of major concern to every seg¬
ment of the nation.
7-7 V7:77"..: :
sitate many utilities to
seek rate increases from
regula-
political control
problems facing the electric
growth
other
any
those
The
■
President
,
utility industry are
affecting earnings (1) high
m?nel fates (2) increased operating
J?.n in tlle va!ue of the construction
resulting pressure on«earnings will neces¬
nar.
fi\
:*••••
helmerich
utility industry is whether it will be able to
the three branches of the Federal Government has been
successfully, as in the past, the expected con¬
tremendously influential (i.^e. the Phillips Case, the Natu-7
struction programs over." the
ral Gas Act and its veto, the voluntary-mandatory oil
coming years. Potential
hazards in future utility
financing as compared to other
import program). To attempt to forecast within this po¬
-corporate financing include: (1) investor markets satu¬ litical arena would be foolhardy. Suffice it to be said
rated with the more
frequently offered utility securities,, -that it is our hope that,the rate of growth of federal
especially debt issues;>(2) limitations as to flexibility
controls at home will slacken, and, in such an atmos¬
of utility financing;
(3) handicap of financing under ■> phere, we expect 1959 to be an improved year domesti¬
regulated earnings in an inflationary inclined economy."
cally through higher drilling activity and higher domestic
expected.
Such
be
reflected
in
should
higher sales by electric and
gas
utilities, especially to commercial
recovery
Hollar
dollar.
'
h.
for
struction
rivals
expected
improvement
Samuel
,/•
customers.
spent $3.8
plant and/equipment in 1957 and plan..to
spend about the same amount in 1959. Gas utility con¬
7.
.
w.
gas
finance
hartt
President, Middle West Service Company
Jay
stockholders.
our
:
Both electric and gas utilities expect to continue their
construction programs to meet the anticipated growth
of/
their respective industries.
Electric utilities
One of the most serious
electric
margins,-for
.
billion
*
will continue to look at
will,
industrial
^
.,7/77
„
and
repair/;"
.,
past
commercial
home
residential and, highway construction. And more than
one American economist has
predicted a 40% increase in
the domestic economy by 1970.
;; :
^
few .years at approximately
6J/2%. A decline much below * a 6V2% rate of return
would discourage the expansion
necessary to meet the
earnings potential to be derived from the addition of
residential,
•
increasing ;
on
The average rate of return
(operating income as a
percent of net plant) earned by natural gas utilities has
over
,.
a *
In 1959 alone, a 1.3%
increase in outlays for new
dwelling unit construction is foreseen. The huge total /
of $52 billion is expected to be spent on new construe-:,
tion of all kinds in-.the coming year. This represents an
increase of more:ihan 3.5-billion from the total spent in
1958. Over 80%; of this enormous amount will be spent
of course, be
subject to gas utilities obtaining rate increases to ol'f-set
expected higher field costs of natural gas.
stabilized
and
in
now
ever
an
construction
is
and
jay samuel
The
capture
business
new
press
general
to
American
Flintkote
time
ness
In
express service
that
at
being able
of operating revenue to net
should amount to about $465 * million, afterpreferred dividend requirements. Improvement in carryrevenues
r
in. the consumer goods economy. The Flintkote
Company has been planning for the "fabulous sixties"
since early 1956. JBy embarking on a period of expansion
income,
of
decade of.
a
factor
down
restraints
affect it adversely.
fleet and
1959 will be the forerunner of
carrydown of 10%
average
harvey, jr.
prosperity for the American economy f
and particularly for the building materials industry.'
We at Flintkote base our optimism on several factors.
For one thing the great upsurge in new family forma¬
tions in the early 60's seems certain to create a dynamic
demand for new construction and will be a powerful
approximately 81 billion therms, up some 5% over
1957.
For the year 1959, 86 billion therms should be
sold, reflecting an improved rate of gain of about 6%.
'
Revenues of the gas utility industry for 1959 are
anticipated to total $4.8 billion for a gain of 8%. Such
improvement would exceed last year's revenue gain of
7%.
Earnings, assuming a continuance of the recent
Thursday, January 22, 1959
.
unprecedented
to
expect
j.
.
Chairman of the Board, The Flintkote Company
ment
hammell
President, Railway Express Agency, Inc.
The
about 6V2 % over the December, 1957 peak. Additions
a
record 14 million kilowatts of
generating equip¬
or
39
page
.
employment will be main-,
by
for goods
a
genuine public demand
and services; and whether
earnings will justify. cur-/
quotations of .equity
shares,; it would be somewhat simpler
7 : 'to Foretell the year ahead.
However,
with -none of these basic determining factors ascertain-:
able at this timey.it becomes necessary to take a guess in
the dark, as it were. ;;
1
•'
-v.
—
7'
corporate
-.rent
J.
Victor
Herd
market
r
,
"■"*
Assuming no cataclysmic international occurrence, as¬
suming no sudden loss of public confidence in the nearterm recovery, and assuming a continuation of govern¬
mental spending, both defense and non-defense, it would
appear that 1959 ought to produce better underwriting
results for the Property and Casualty insurance
panies than they experienced during 1957 or 1958.
com¬
Despite the punishment in market quotations taken
during 1958 by bonds and preferreds, the rise in quota-
'
'olume
Number 5814
139
.
Jons for equities during the
underwriting
Insatisfactory
The Commercial and Financial Chronicle
.
.
year tended to obscure an
result.
Unless
and
until
property and Casualty insurance
companies
characterized by selected strong key regional brewing
companies and strong but few large national companies.
enabled
are
There
bring underwriting outgo below underwriting income,
producing a reasonable profit from underwriting
is
no
reason
movement in the
ius
ferent from those
operations, their plight remains unhealthy, regardless of
"ieir investment and financial operations.
PETER
vZ.
The
looW&ry bright for our industry
particula^jhe HIRES picture is most
promising. Great strides hav£( been made in the past few
years to build and train enable and hard hitting field
organization.
The
imp4$£V#f this
:
<
tain
and
year
Bottling
Divisic^t^^s the
this training will be
Our
application
franchise
bottler
in
strongest
the
HIRES. The addition of
aggessive bottlers
bring
sey^rpl
mar¬
'
centration
new
the
For
par¬
Peter
the continental limits
lion
very
carried outside
of the
United
higher
States, but will be
as
Motors
ler
vital
new
Refreshment" lends
in
public is hardly
the
even
-
more
v
*•
manufacturers
and
>■
divisible. 1959 should find them both out of
reason
C.
sick bed.
a
C. L. HOLBERT
V
,
H.
President, H. K. Porter Company, Inc.
i
:
K. Porter
Company is widely diversified, with an
excess of 40 plants in 10 basic divisions of industry.
The
outlook as we see it of the overall Porter Company .is
no
.
why this goal should not be attained.
JEROLD
•
in¬
are
HOFFBERGER
for
steadily increasing sales throughout 1959, and sub¬
stantially improved profits as com¬
President, The National Brewing Company
by other industries, we are to some
those
dependent
upon
recovery
'
areas.
'
;'
While
we
,
;
f
,
The squeeze on
profits will be felt
acutely in consumer goods
even more
industries.
will
Management
challenge.
face
American
The
sharp
a
consumer
has understandably reacted to
Jerold
and
C. Hoffberger
rising
costs in exactly the same way indus¬
trial leaders are reacting to them.
The consumer will spend carefully
continue to shop for bargains.
He will become in¬
creasingly selective. He will resist price increases. This in
turn means further intensified competition for shares of
This should
the market.
more
intensive
manifest
advertising
and
itself in
only
-
The results should mean in¬
creased sales in heavy industrial machinery and capital
goods during the year. V
/
- '
If developments during 1959 move in the direction of
increased automation, it will (1) lend depth and stimu¬
lation to business activities generally and (2) better en¬
able business to cope with cost problems and assure a
fair return for investors during
1959 and subsequent
With
-
:
.
the
up.
-
.
;
operating efficien¬
cies, 1959 should also see an increase in the pace of
mergers as a means of effecting important savings and
protecting market situations. '
growing emphasis
This trend
has
increased pace
been
more
upon
going along at a substantial and
since 1950 in the brewing industry; and
it appears that the industry itself will be
more and
productivity
little
be
chance
as
of
labor and
the
area of increased productivity which
have been accomplished during 1958
c. L. Hoibert
will contribute greatly to
our
in¬
creased profit goal. Essentially, by
class of industry that makes up the Porter organization,
we
anticipate the outlook to be good in all areas, but
not approaching bottom or inflationary proportions.
maintaining status
costs.
quo on
Improvements in
anticipate problems in the areas of labor relations
price competition, with increasing demands on the
and
part Of our customers for improved
quality and tech¬
income
the
cellent.
enter
1959, the general business outlook is ex-c
The sale of life insurance continues to be most
prospects, in my
opinion, are that we will have an¬
other record year in sales.
With the
firming of interest rates, the invest¬
ment picture should be very favor¬
competitive
but
be
done
balanced
This
and
can
effectively through a
and by everyone
budget
from
both management
our
enormous
natural
resources
inflationary
tinuing
insurance
life insurance companies.
towards more government
threats, the
outlook for the fife
-With
business appears to be very encouraging.
growing population and with an upward
standard of living people require and are
a
insurance
more
protection.
J. ROSS
* "
.
trend in .the
able to buy
..bt
t
V
HUMPHREYS
National Bank in Chicago, Illy
,
in 1958, the American economy has
noteworthy performance. The test of cush¬
again,
turned in a
ioning the recession and then moving up in
met with amazing success. Gross national
the dollar value of total output of
was
the
and
services
from
recovery
product,
•'
de¬
produced,
a
rate
of
two
recessions
in
1949 and
As
Howard
Holderness
we
amount
than
previously
perienced during the postwar
ex¬
period,
1954.
go
into 1959, the
of
recovery
substantial"
which has
al¬
Ross
Humphrey*
augmented
by a further rise in levels of business activity. The year
1959 will see the attainment of new record highs in lhost
aggregate measures of the economy. We have alrehdy
ready taken place will be
and
capacities, I believe inflation can be stopped.
necessary
on
what sharper and more severe
labor and taking into consider¬
ation
*
seasonally adjusted
$446 billion in the
third quarter of 1957 to a low of
about $426 billion in the first quar¬
ter of 1958.
The industrial produc¬
tion index declined from highs of
146 in December, 1956 and 145 in August, 1957 to a low of 126 in April/
1958. The recession was thus some¬
cooperating,
both in management
and labor, to see increased productiv¬
ity is obtained with any increase in
salaries and wages.
With such co¬
operation
.•< -
gains in productivity are much more difficult to attain.
Aside from these problems of higher taxes and con¬
annual
effort should be made to
most
"*
powerful inflationary force is the repeated increases in
and salaries year after year. Unless these are
in productivity prices must continue
to advance. Higher wages in the manufacturing indus¬
tries tend to carry over into the service industries where
goods
/
I feel not only for the insurance
industry, but for the entire economy,
that every
»v ?
matched by gains
clined
able.
prevent further inflation.
a
wages
Once
we
levied
President Central
President, Jefferson Standard Life Insurance Co.
'
j,<'
spending, taxes for everyone will have to remain, high.
The prospect of further deficit spending serves as a'
continuing threat to the stability of the dollar. Another >,
HOWARD HOLDERNESS
As
taxes
With the ever increasing trend
nology; therefore with ensuing demands on research and
development programs.
promotional
efforts,
techniques.
inevitable that efforts toward automation will be
years.
to
^
business, however, is not completely
problems.
One is the imminent
troublesome
prospect of higher taxes. There is presently under con¬
sideration legislation designed to increase substantially
:
broader and
Meanwhile no important industry will be spared dur¬
ing the coming year from rising costs both as to selling
and production, as to materials and capital investment:
In response to this, it can therefore be expected that
during the coming year, the emphasis will be upon find¬
ing ways and means of saving money through increased
operating efficiencies. This is a necessary direction, if a
healthy level of business activity is to be sustained. It
considerably stepped
increased
seems
material
We
an
The life insurance
in
predicting increased profits,this will be: accomplished
by
there
keener merchandising, and improved selling
seems
feel
assure
of the economic recovery,
advantageous levels, and with thev
expanding phase, there should be
ample opportunities this year for investing '.funds at,
in
now
economy
without
.
ness.
family in a single contract.
of forces which should
number
favorable rates
extent
introduced,
been
plans which cover
rates in 1958 were at
,
•
a
a
continuance during 1959
1958 recession. We ex¬
pect earnings to equal or. exceed the
1956-1957 level. As our company to a
great extent produces products used
pared to the
There appears to be little question that business
will
continue, at a high level during 1959. The recovery dur¬
ing 1958 and all present indicators point in this direc¬
tion. However, it will be a year marked by difficulties,
particularly in the consumer goods
•industry, in sustaining a satisfactory
level of profits. Many well-run com¬
panies will face a critical problem in
maintaining profitable operation. It
is relatively easy to give merchan¬
dise away;
but it has yet to be
proved a good way to stay in busi¬
are
had
which
protection
some slackening in the rate of gain may take
The economy will be stimulated by further in¬
creases in expenditures by Federal, state and local gov¬
ernments.
Moreover, last year's liquidation of inven¬
tories by business has now ceased to be a drag on the
economy and there may soon be a return to inventory
rebuilding. Consumer buying which held up well during
the recession should now show
some increase.
Most
other important segments of the economy are expected
to be either favorable or neutral.
<
:
^ ,
Personal savings started to increase again during the
second quarter of 1958 and should stay large in 1959, '
buoyed by further gains in personal income.- The lifeinsurance cqmpaniesy with their continuing efforts to
tailor their products to the buyers }needs- and their
aggressive merchandising should be successful again this i
year in securing their fair share of the savings dollar.
The outlook is also favorable for insurance companies
in the investment of their premium dollars.
Interest
n-
realisticsees
suppliers
t
although
••
their
HuobeU
place.
auto
all occasions "for all times of the year.
sales
There
the
the smaller, specialized
on
!'■:•'■
v
the family
all members of
aware
car
heavily
•
F. W.
to the favorable
developments
chandising
65% produced by suppliers and the indepen¬
our product, and is a perfect tie-in to aid our aim of
identifying HIRES as the appropriate drink for all ages
marketing plans for 1959 call for
and profit increases,
and management
year
59% made outside of Ford's plants; Chrys¬
are
automobile
itself extremely
HIRES
this
answer
particularly
of
on
than
1959
parts makers employ some 400,000 workers
in hundreds of plants in literally every state of the
union.
(With the possible exception of Alaska.) The
The phrase "Adventure in
well to the nature
year.
uses
cars are
The
addition of a brand
national theme that will be more completely em¬
phasized throughout the
sold
be
by the renewed confidence in the
of the auto parts
manufacturers. General
the least amount of independent suppliers,
firms.
with the
scheduled
will
cars
importance to
dents lean
Advertising Program is proceeding along the lines
previously
as
Hirsch
economy.
products
sound prin¬
so
D.
with
percentagewise, than any other auto company. Yet they
still produce only 49% of each car they make. Ford's
to the growth of this business.
The
Harry
substan¬
a
market
car
borne out
be
The general
Merchandising Program for 1959 is now completed
will be placed in the hands of the field organization
ciples, further stressing the basic fundamentals
more
makers'
The
on
year.
parts makers joining in the increased production
general
very
actively engaged in promoting and selling
HIRES, and we have every reason to believe the results
will be rewarding.
It is based
last
very
life
performance of life insur¬
ance sales during the recessionary period lies partly iiv
the remarkable stability shown by personal income. From
the peak in August 1957 to the low in February 1958*
personal income declined by only i.6% and it then
turned upward again. Increases in government payments
and farm income helped to offset declines in labor in¬
come.
Other contributing factors to the good showing
of life insurance sales were new policy plans and mer¬
The
to
company
5.3%
eight
close to the record
witn nigner sales of
insurance
offsetting
decline in group sales.
some
a
should
are
shortly to be put into action.
new
con¬
total of auto parts sales in 1959 of about $3.3 billion.
The estimation by the Big Three that at least one mil¬
for
well, particularly in Canada where we
now have 35 able and experienced
bottlers, assisted by
well trained HIRES Canadian personnel. These bottlers
and
the
a
of ivoi,
ordinary
profitable
recession
auto
registering
comparable
the
over
months period of a year earlier. For
the full year 1958, sales of life in¬
we
record
on
most
1959, we envision
tially
Hires
vZ
auto
the
a
the; highest
op the
enabled
parts,
car
deep South, which
large growth po¬
tential for HIRES. Our activity will not be confined to
in
represents
gain
levels
of
one
buck
develop
territories in the coming year,
ticularly
tinued to increase,
larger than in 1957. Automated
manufacturing techniques and
;
continue to
will
During the eight months period while
the general economy was declining,
sales of life insurance actually con¬
surance were
and
position and will
sales and distribu¬
tion of HIRES.
We
however,
company,
and
lion,
new
in strategic
our
increased
a
our
throughout
continue
to
continued uninterruptedly
April 1958, when conditions
quickly reversed and improvement
carried
forward
at
a
rapid pace
throughout the balance of the year.
1957
expect gross sales of about $10 mil¬
kets during the past year has greatly
strengthened
For
>
that the economy is in a Re¬
promises
until
that final figures will justify my
prediction that sales in 1958 will be
no
higher than about $2.2 billion.
inten&i]
now
which
the year. The downward adjustment
of general business started in August
are
of
.
the
Co.
1959
phase
covery
rate of only 4.3 million
of the huge auto parts
industry will be down.
Compared to the auto parts gross of
$2.7 billion in 1957, the indications
both.(wjfe; Foun¬
the
progresses
at
better in
even
HIRSCH
final, sales
beginning to--be felt
now
and will continue in
During the 1957-58 recessionary period the life insur¬
ance
business fared very well.
The results should • be
auto
mated
HUBBELL
of Iowa
brewing industry are substantially dif¬
affecting other industres.
parts industry, which produces more parts
per car than the auto manufacturers themselves, had a
somewhat disappointing year in 1958 as sales of new cars
dropped considerably. With new car production esti¬
Nineteen-fifty-nine
training is
FREDERICK W.
President, Equitable Life Insurance Company
believe that factors dictating this
HARRY D.
"President, The Charles E. Hires Co.
in general, and in
to
President C. M. Hall Lamp
HIRES
41
(437)
production
It is very
that this be done to have a firm base for a
continued sound and prosperous America.
Continued
on
page
42
*
42
(438)
Continued
from
anticipate a proportionate increase in profits for 1959 to
top 1958's $7 million.
41
page
production resulting i'rom the
the upward thrust to
seen
ending of the record rate of inventory liquidation which
was underway earlier this year,
particularly important
will be a abroadening upward move
spending. Government spending, both Fed¬
eral and local, can be expected to go up some more.
There will be a substantial rise in corporate profits gen¬
in future recovery
in consumer
erally in 1959
as
outlook
The
compared with 1958.
further significant
for
recovery
debt
Federal
The
maturities.
remains
budget
a
source of difficulty in many respects, as does the con¬
tinuing pressure upward on wage rates in excess of gains
of productivity. We must continue to guard against over
confidence and speculative excess. Nevertheless, and as
always, very important, we continue to stress as we
have before, that over the years
tremendous oppor¬
tunities lie before the American economy.
Sales in
share
of
available
the
The
business.
1959, Lukens expects over-all
plate demand to lag behind
Chas. L. Huston, Jr.
other products of the industry in the
first quarter, expects a pick-up in
the second, perhaps some easing in the third, and then
expects the fourth quarter to show marked improvement
to make it the strongest quarter of the year. During the
coming year Lukens counts upon increasing its participa¬
tion in the various missiles and rockets programs.
In anticipation of this rising trend and of the
longterm growing needs for steel plate, Lukens will have
completed its current $33 million expansion program by
next spring.
By that time, major customers will have
loaned to the company a total of $20% million, to be
repaid in 20 years, and Lukens itself will have furnished
a total of $12V2 million out of retained
earnings to pay
new
customers
facilities.
reaffirms
A
the
check
recent
soundness
with
of
the
our
major
decision
to
expand facilities.
During 1958 Lukens retired all present long-term in¬
debtedness, other than the customer loans for the ex¬
pansion program, by a final payment of $2,800,000 to the
Penn Mutual Life Insurance Co.
a
result of the
plate in the country.
The steel industry in general should perform in 1959
at higher operating rates than those for 1958.
Market
projections indicate that steel consumers are expected
to rebuild inventories that
were
sharply depleted in 1958.
increased pro¬
Also expected are improved auto
sales,
duction of consumers durable goods,
continuing strong
industry, and, later in the
increased demand from the capital goods industries.
Production for the industry as a whole in 1959
probably
will approach 110 million ingot
tons, compared with an
demand from the construction
year,
estimated 86 million in 1958.
of
President,
In 1959
we
W.
of
products such
as
bridges, culverts and drainage systems,
homes
new
as
well
Construction
should
increase
in
This,
production
too, will stimulate the
of
concrete,
concrete
blocks and other related
products.
The same is true for new plans and
public buildings.
It is my feeling
1959
will
in
the
see
a
Chemicals
13%
construction
accounted
of Vulcan's
1958,
violently
more
steel
as
of
and
total
metallic
for
sales
falling off from
in October.
a
for stainless
a
now
This is
are
President,
K.
Intemann
volume
for chemical
production to increase
Here at Vulcan Materials
we
are
Charles
looking for 1959 to bring
W. Ireland
traditional
some
national
We
almost
occasioned
demand
fined
especially encouraging in view of the military
,;
JACKSON
i
f
Petrofina, Incorporated
two
the
stainless
a
in
decline
re¬
prices of 15% over'
Since the low point in
products
period.'
markets; it is obvious that the stainless steel market
evolving on a broader industrial and commercial base.
The
balances
j
May 1958,'prices have had a partial
recovery, -but
regional supply im¬
stainless steel production picture includes some
interesting figures on a fast-growing sector of the
very
stainless steel market.
stainless
manganese
These
steels
concern
which
tarded
the group of high-
generally called
30,000 tons of these steels
produced in 1958 compared with 25,330 tons in 1957.
predict that 1958's record production of this group of
have,
the
basic
untir recently,
re¬
correction.' However,
strengthening
in
a
petroleum
demand; the impetus of cold weather
are
the 200-series steels. ' Almost
and the restraint of lower crude runs
were
are
and
Research
development
ferroalloys for more
steelmaking progressed during
1958 and
would continue to progress during 1959.
In 1958 two
new
ferroalloys — ferromanganese-silicon and refined
charge
shaping inventories into
relationship
factory
'
with
satis¬
a
require-
ments.
of
economical
chrome—were
; ■
At the
beginning of 1959 stocks of
approximate 780 million
barrels, 60 millioh barrels lower than
on
Jan. 1,-1958.
Inventories are as
low now as they were at the end
all oils will
Jackson
l-iarrv
A.
same
level
introduced to provide low cost
sources of manganese and chromium for many types of
stainless and other special steels. 1959 will undoubtedly
see many special alloy compositions introduced to metal
producers, including a new vacuum-processed low-car¬
bon ferrochrome and special ferroalloy compositions for
though ovdr 600' MBD's have disappeared from the ex¬
port market since'the settlement of the Suez crisis.-
the
that
growing vacuum-melting industry.
Another trend in the ferroalloy industry is in pro¬
viding for greater customer convenience by standardiza¬
tion
of alloy forms and better packaging of most types
alloys. Also, more exact and demanding steel industry
practices have resulted in a trend toward closer control
of
of
ferroalloy characteristics.
'
-
element of unknown quantity in
An
influencing both
price stability and productivity of the industry in the
year ahead is imported alloys.
This is true for both
the domestic ferroalloy producer and the domestic steel
producer—a flood of low-priced imports could impair
,
hand, products prices are now 5% lower
than they were"'.two years ago, notwithstanding the fact
crude oil
10% higher, in effect a 15%
balance, products prices could
justifiably continue to increase during the next several
weeks, until'at least an equilibrium is restored between
supply, demand and price.
The outlook for petroleum demand in 1959 is favorable.
If industrial production averages
10% higher than in
anomalous situation may well be reflected in the future
health and economics of the domestic
industry.
The stable price structure of 1958
(during which price
increases
1958,
as
for
a
1958,'-which
consequence
viable
Such
reflected
in
a
a
situation
rise
in
would
price
to
industry.
is
becoming
an
low-calcium silicon metal, he added, and
pect this trend to continue to develop. As for
duction
we
ex¬
sponge pro¬
about
4,000 tons will probably increase to
about. 4,500 tons in 1959.
The lower-than-anticipated
price of sponge which prevailed toward the end of 1958,
will provide a market test in 1959 to see whether or not
the present low prices for sponge and billet can increase
demand for titanium mill products.
Bureau of Mines reports, the 3.6-million lb.
on
were
reason
down to
for this
an
forms which
were
sold
estimated 2.5-million lb. in
was
in
1958.
the
The year 1959 should see a rise which continues the
rebound which began for vanadium in late 1958. During
the year, perhaps 3.4-million lb. of contained vanadium
will be consumed.
at
present
more
increase
forecast
A
of colder than normal weather. The in¬
needs of industry, a greater number of
higher in¬
of:
in
demand
for
a
1959.
supply of oils and crude runs in¬
the outlook for oil imports, which
subject to conjecture. For lack of more
precise indications, we may assume that imports of
crude and products in 1959 will equal those in
1958.
This automatically allows for a continuation of the cur¬
rent high import rate for the next 60 days with a pos¬
sible cutback when the new program is finalized.
Under
evitably depends
at
this
new
upon
time is
circumstances
and
if
the
refining industry reacts
can be expected to
average at least 8,300 MB/D throughout 1959, or approxi¬
mately 8% over 1958. Even so, little more than 85% of
it has
in the
past,
runs
to stills
capacity will be utilized. To satisfy the refiner's needs,
crude production would have to average about 7,400
MB/D—the remaining requirements being met out of
imports. The higher domestic crude production would
be reflected in
titanium, the present annual rate of
of
may
energy
and new home construction should contribute to
sizable
as
be
6%. The relative magni¬
in part upon the total demand
should exceed original expectations as
some
vehicles iw use, lower unemployment,
come,
these
further.
any
increase
tude of increase" depends
labor
rise
are
predicted by most economists, domestic demand
for oils should
were held
down to an average rise of about
1% despite increased costs of labor and most raw mate¬
rials) could be upset rather -quickly if the industry's
costs
prices*
decline in real terms. On
motor
materials, during
the industry will find it almost impossible to par¬
ticipate. However, because of the present regulations,
only foreign producers will be able to participate. This
L
even
On the other
While for the past three years the
ferroalloy industry
has supplied substantial quantities of its products to
the government's stockpile of strategic
1959
-
Total demand is almost at the
of 1956.
creased
Production of the metals columbium and tantalum
a
sales volumd substantially over 1958's $100 million.
1'.
;
years
since the petroleum
beginning of its most serious
postwar period. Excessive new supply
oils aggravated' by a deceleration in the growth of
of
3:'.
increases in sales during this same period, although total
volume is small.
ac¬
>
tanta¬
industry experienced the
steel
is
purer
recession of the
steep decline in tool steel
production — ferrovanadium's chief market. However,
high-purity (ductile) vanadium showed truly spectacular
about
American
has'been'
It
H.
that
;
reduced
'
v
<./;':y /■•/;'• L/C'-■• v:
';v"
v.-1
some
steel, surpassing 1958 production by about
cutbacks which have
;
.
HARRY A.
million ingot ton year
200,000 tons.
-*
,
strength and toughness.
creased
high point reached
Indications
1959 will be
One
new
products
applications;
has
now
November and December show
'
Growing ' use ' -of columbium; additions to carbon and
possibly low-alloy steels for grain improvement and in¬
rapidly
whole.
a
'
-
industries
psq
lum; and.
1957 level.
production
process
Availability of larger sheets of thinner,
not lift
and
production
steel
-
,
New; high-strength vanadium alloys for high-tempera¬
ture
Stainless steel production has fluc¬
Based
nearly 18%. Although I
expect only moderate increases in
the production of
metallics, I look
Company,
could
the entire year up to the
1957
counted for
greatly.
half of 1958
:
of titanium for structural and dynamic
applications in the aircraft industry; /
\ !•
>
; "
1958,
latter
;
'titanium applications in the
Increasing
the
the
following:
which require corrosion resistance;
resurgence
of contained vanadium in all
substantial in¬
schools.
in
first
the
developments in ferroalloys
be forthcoming in the year ahead
new
may
Larger market for heat-resistant stainless .steels;
More
industry in the last half
a rise in sales occurred in
ferroalloy industry.
However,
this rise in ferroalloy sales during
of
concrete
1959.
crease
into
the
increasingly
important market for additives. Aluminum alloys with
improved physical characteristics have been made with
Company
look for the Federal highway program to
This will give impetus to aggre¬
surfacing materials.
that
in
"The aluminum industry
IRELAND
Vulcan Materials
gate production and related
as
With
necessarily have to
into full swing.
used in
continued
1958.
reason
of the steel
assure a
CHARLES
come
began
The
sharp decline in steel
the last quarter of 1957.
the health of both industries.
expansion, Lukens in 1959 will be¬
the third largest producer of sheared mill steel
come
which
of 1957 total.
also
are
stainless
for
stabilizers
as
New:, high-temperature alloys and alloy steels for mis¬
siles, supersonic aircraft and nuclear reactors;
the
is
steels would be beaten in 1959.
In
As
figure
decline
half
about 75%
were
latter
production
I
steel
for the
the
whiqh
includes the
early 1958, although the figures lor
company
relative
1958
behind
.of the
summary
and metals
top 1958 figures by 25%.
may
ferrotantalum-columbium
attention
as
recovered from the lows of 1957 and
and for steel plate producers gen¬
erally, the fourth quarter of 1958 has not lived up to
expectations.
Reflecting our historical pattern as suppliers of the
capital goods industries, Lukens con¬
tinued successfully to resist the gen¬
"WM
eral fall-off in steel demand during
its first
two quarters. Since then
the consumer goods markets have
strengthened but capital goods mar¬
kets
have
continued
depressed so
that the company has not enjoyed
the same pick-up as the rest of the
industry. Within selected plate mar¬
kets, however, Lukens did progres¬
sively achieve its goal of increasing
its
INTEMANN
Ferroalloy sales in 1959
still
a component of miniaturized
capacitors, v|as
successfully demonstrated during 1958 as a corrosionresistant linirig for large-sized chemical reactor vessels
President, Union Carbide Metals Company
Stainless
President, Lukens Steel Company
our
dustry
A
K.
H.
are
high-temperature, high-corrosion environ¬
Tantalum, now a standard in the electronic in¬
ments.
American economy.
than
For
The outlook
over.
bright. We feel that the
building and construction industry will be one of the
major factors in making 1959 a good year for the
tuated
CHARLES L. HUSTON, JR.
in 1958 is
and
increased
getting
industries, although they
many
structural materials in the nuclear field.
as
steels used in
whole is very
a
as
mainly
Ferrocolumbium
Company plans to invest about $10
The recession experienced
ahead
problems which will go on
into next year from the present one. Unemployment will
likely turn out to be a rather persistent problem. Busi¬
ness
expenditures on plant and equipment have bot¬
tomed out but will rise quite slowly in the year ahead.
New housing is running into financial difficulties.
The
United States Treasury will lace tremendous problems
in financing the deficit and especially in refunding Fed¬
used
plants and equipment in 1959.
new
for business
will by no means solve some
eral
Materials
Vulcan
million lor
ing their niche in
than in balance with demand.
are
Colum¬
bium and tantalum in the form of pure metals are find¬
age
higher allowables in Texas, with an aver¬
monthly'rate of 12 producing days, compared with
On balance, stocks of all oils should increase
10 in 1958.
modestly in the course of the year.
The year 1959 should be favorable for the petroleum
Supply, demand and prices should be in rela¬
tively close balance for most of the year, however, the
danger and effects of overproduction at refineries toward
the end of the year should be recognized.
During the first half of 1959 oil demand should increase
industry.
very
substantially
However, the rate
over
the corresponding period of 1958.
of increase
be
to slow
the economy re¬
refining industry does
not promptly adjust its operations to compensate for this
decline in the rate of growth, another supply/demand
down
covers
toward
the
end
of
from the recession.
imbalance could
the
can
year,
expected
as
If the
quickly develop and again create costly
price declines.
The findings of the Special Committee to
Investigate
011 Imports will play a pivotal role in the economics of
the petroleum industry. The outlook for both the produc¬
ing and refining segments will depend, in large measure,
upon their recommendations.
Vo
Number 5814
189
ume
CHARLES
C. JARCHOW
President, American
soundness of the diversifica¬
pa t year demonstrated the
tion policy under which we
outside
sales
have expanded our activities
equipment field.
In the early
railway
the
period
only
than
A
.
As will be
accompanying summary.
sales
of
Legislature
and locomotives of $19.1
This resulted from
90%
or
39%.
severely
new,
The reduction in sales of railway
products would have been larger had it not been for
the new Griffin Wheel Company plant at Colton, Calif.,
$1.2 million or 4%.
which
in
operating
began
fiscal year.'
the
■
and
year
books.
payments
principal
on
1957
;!v:
half of the
last
,;v.:4-
Millions
'
1.958
1957
$29.4
increase in
last
liberalized
April
conventional
the
New
permit
to
York
State
33.5
7.2
replacement
as
use
or
11.7
93.8
.7
the
make loans
with larger ratios-to-value
delays
expense,
and
involved
processing
materially assisted home builders and home buyers. It
is hoped the Legislature will broaden the scope of this
permission still further during the present session.
121.7
.9
repair
Total for the railway industry
__
other
Total
regular products-—--—
War materiel
Total
t
—
—_________________
reports
,
$94.5
______________________________
of
for
We
unanimous:
are
sion began in
recovery
has been
The major expenditures were
wheel plants and facilities for the
the company's history.
for
two
steel
new
production of precision roller chains and sprockets. The
new steel wheel plant at
Muncie, Kansas, began oper¬
ating late in the 1958 fiscal year. The other plant, at
Transcona, Canada (in the Winnipeg area), will begin
operating in the second quarter of the 1959 fiscal year.
On the basis of present plans plant additions in 1959
will amount to about $7,000,000.
About 10% of these
expenditures in 1959 will be for additional research
and
development
facilities.
No
major
items
were
deferred because of the general business decline.
Our
plant expenditure program is a coordinated long-range
continuing program.
Our total backlog of unfilled orders on October 1,
1958, the beginning of our current fiscal year,'amounted
to
There
$21,000,000.
rate of incoming
of
our
strong indications that the
will increase in the first half
We expect that the volume of
are
orders
1959 fiscal
year.
shipments and earnings will improve from quarter
quarter in 1959 in contrast to the declines of 1958.
our
to
behind
The bottom of the recession is
business conditions have improved.
and general
us
Railway freight car
better and this should result
in increased orders for component parts for freight cars.
The
railroads
need
further
relief from
the. obsolete
loadings and earnings
regulatory control
on
are
rate making and other restrictions
state regulatory, bodies. They
purchasing equipment in recent weeks and
at a greater rate during the year.
imposed by Federal and
have started
this should continue
We
that
believe
economic
growth
of
our
business
will
1959
be
a
have
substantial
result,
Non-railway segments
will be good.
should
of
year
development;
and
business generally
and
increased
as
sales
1959
will
be
a
which has taken place. It
interesting year with the
performance of the stock
an
market; continued high prices; gross
national
product climb; the Federal
Reserve's early return to a tighter
money policy; and the weakness in
bond
the
the optimistic outlook for 1959.
with
the
in
Jorgenson
M.
Gov¬
expenditures already high
is expected to reach $80 bil¬
1958
More than
lion.
five million passen-
automobiles
ger
will
manufac¬
be
than a million homes will be built. The
round of wage increases granted in 1958 add to pur¬
More
tured.
chasing power. Farm income, although dipping a little,
will still remain high. Gross national product will ex¬
billion. The stock market has been saying
everything looks favorable for 1959. The cold war still
continues and on a number of occasions during the year
we
have been treated to a bad case of jitters. So our
ceed
$450
armament program progresses
with great strides in the
Chairman
as
of
the
In
Midland Empire of Montana, with
the
favorable.
The
The
at
oil
much to
refineries in our
modern
three
near
contributes
industry
area
our
economy.
are
operating
capacity. Probably the same amount of money
exploration and drilling as in 1958.
expected the domestic demand will show some
increase in 1959. Daily oil production in Montana is
will
be
spent
for
is
about 80,000 barrels.
We look for
of Brooklyn
The Dime Savings Bank of Brooklyn is con¬
cerned, there will be no lack of money for the financing
homes during the first half of 1959, and an .ample
of
supply of mortgage money to support
home building in this area should be
available throughout the year with
no
appreciable change in interest
a
fine
a
good tourist business in 1959. With two
national parks
Yellowstone and Glacier
—
—
and
fine dude ranches, Montana is a fine vacation land.
highways makes Montana and its vacation
many
Excellent
high volume of
will
Construction
show
some
increase
during
although considerably off from the 1955-1956
1959,
levels, yet
not to be scoffed at.
So
rates.
commitments
already
The Dime Savings Bank of
over $160,000,000 fqr
10,000 dwelling units in
the, five
New
York
City boroughs
and Nassau, Suffolk, Westchester and
Rockland
This is
and
of
committed
year
mortgage
the
more
at
one
potential
market
time
in
homes
should
new
the
continue
used
The
serious disruption
continue to produce the
no
than
1958.
Unemploy¬
about the present level. The farm
still
is to spend faster than we can
Our
economy
will
be
in high gear
ask ourselves how high is up. We can't
our
fingers crossed, yet, in the words of
perhaps
we
haven't seen anything yet.
spacious 'Sixties may make the fabulous 'Fifties
look
small
year
of high
strong
throughout 1959, provided there is
Digitized the FRASER and builders
for economy,
of
better
credit will be available except possibly
the circus barker,
100George C. Johnson
and
of the fabulous 'Fifties a year of
and
tendency
money.
help keeping
housing than ever
for
The
again and we
con¬
history of this bank.
The
threat.
make it. Ample
greater amount of money
represents
struction
a
Counties.
a
business
problem is still looking for a solution. Inflation is
than
the
,
result, the big boom in infants will take place
a
estimated that 75.4
it is
when
1966-78,
period
hefty increase over the
babies
1946-58
period which will record a total of 50.8 million
will be
born—a
births, including the 4.3 million babies born in 1958. In
the interim period, 1959 to 1965, the forecast is for ap¬
proximately 30 million births.
Also by the mid-1960's, the
in 1946 after World War
vast number of girls born
II, will be part of the significant
18-34 year-old child-bearing
lowing the mid-1960's, more
big baby crops of the latter
entering this
A
more
group.
lusty infant
nearly
the years fol¬
girls from the
1940's and 1950's will be
In
group.
and
$190
far back
as
million,
the
1947 when sales totalled
as
greatest upsurge in the last
which sales outstripped the
decade
saw its
period in
industry
food
baby
so—a
or
national birth rate by more
baby food sales
nearly 45% while the birth rate went up about 10%.
rose
Broadening of the product line, and mass marketing
techniques have likewise had
numbered
items.
but
food
average
from
"junior"
types de¬
children
growing
for
"strained"
than
texture
different
200
to
50
of
number
a
manufacturers
by
in
coarser
first baby food inventory
eight varieties—today, the
or
handles
include
These
veloped
six
about
store
stimulating effect on the
a
business. In the early days, the
infant
foods.
and
Such
products include meats, vegetables, soups, fruits, desserts,
combination foods, as vegetables
various
and
vegetables and liver, and bacon and
and beef,
eggs.
high taxes.
by
KEENER
W.
J.
President, The B. F. Goodrich Company
The American
1958
dip and
through 1959.
The United
tons of
with
rubber industry will
estimated
long
1,350,000
will
States
long-term
consume
consumption
in
tons
bounce out of its
growth
about
rubber in 1959, compared
new
the
its
resume
pattern
1,500,000 long
..
.
of
and
1958.
1,465,000 long tons in 1957.
I believe the rubber industry could
well
the
run
little ahead of the rest of
a
nation's economy in
basis of
1959
on
the
upturn in industrial rub¬
an
ber, the rebuilding of still depleted
customer
inventories, substantially
greater production of new automo¬
biles, and
continuing strength in
replacement tire sales.
Of the new rubber consumed in
in
1958, about
domestically produced
man-made
rubber, compared with
63.2%
in
1957.
This marked the
fourth successive year in, which the
States
United
the
was
J.
W.
Keener
ratio of use of
synthetic rubber has increased.
the last year
ment will continue at
Brooklyn total
more
for
substantial
made by
ahead, the big jump in
in the 1960's when the birth
rate is expected to climb sharply. The increase in the
baby crop will come from the expanding number of
women 18 to 34 years old—a group which accounts for
nearly 85% of all births in this country.. Right now,
there are nearly 20 million females in this age group—
by 1968, they will number more than 23 million, and by
1978, will reach close to 32 million, an increase of 63%
Looking
64.2%
spots easily accessible.
<
Advance
using baby
sales will get under way
Billings as
dependent upon livestock and farming.
Agriculture plays a big part in our economy. High prices
lor livestock prevailed during 1958. Bumper crops were
prevalent. The Great Western Sugar Company in Bill¬
ings is again milling more than a million 100-pound
bags of sugar. Our winter to date has been favorable.
Crop prospects for 1959 are dependent on moisture con¬
ditions next spring and summer, and to date is not un¬
Board,
Dime Savings Bank
The
So far
JOHNSON
are
its refined texture
of
and nutritional advantages.
Jordan
J.
the hub, we are
,
C.
the
development of missiles.
It
GEORGE
Laward
because
ernment
a
general improvement in economic conditions. We believe
our: company will have a good year in 1959.
foods
than four-to-one. During these 10 years,
market.
is much to be said favoring
There
older people who
of
in
told by some
August, 1957, and ended in April, 1958. Per¬
haps when there is so much opti¬
mism, a little caution should be exer¬
cised. 1958 can hardly be dubbed a
year of recession what with the rapid
amazing
of
million
qualification—no
economists that the reces¬
$122.6
ahead
100%
growing importance of the geriatric
market and the increasing number
As
Board,
business but with this
j Plant additions of $11,325,000 in 1958 were the highest
in
the
than
more
previous year.
Of special significance, too, is the
since 1958.
JORGENSON
to be
appear
year
good
boom!
uses
M.
Security Trust & Savings Bank, Billings, Mont.
All
chains, and coating and wrapping pipe_
Steel castings, forgings, etc., for industrial
and
O.
Chairman
hydraulic machinery, roller
Machine tools,
were
Banking
savings
which accompany VA or FHA mortgage applications has
76.5
30.4
Permission to
without
new
parents to buy commercially pre¬
pared products and to buy them over
a longer period of time.
As a case in point, sales of BeechNut pre-cooked baby cereals in 1958
without government backing.
28.0
56.2
mortgages
of
products being offered, the high birth
rate, and the rise in consumer in¬
come
over
the years has led more
mortgage lending
Nearly 800 mortgages of this type, totaling approxi¬
mately $14,000,000, have been made by The Dime of
Brooklyn since the law became effective last April 23.
These now constitute about 2% of our total mortgage
portfolio.
$ 48.5
26.8
equipment:
and locomotives
For use on new cars
$500 million a year volume in sales.
The
increasing number
.
Products sold for railway
For
eventual
.
banks and statechartered savings and loan associations to make 30-year,
reduced purchases of
Charles C. Jarchow
equipment.
While sales for
repair or replacement parts to railroads were also lower, the decrease amounted to only
the
the
on
industry
the
LaW
cars
million
during the
marked
the largest decrease was in
component parts for new
be seen,
net
a
Savers
sales at a record level of more than
$300 million in 1958, baby food manufacturers can look
forward
to
a
continually expanding market and an
With
has taken piace in recent months, and undoubtedly will
accelerate during the year ahead. This is because the
1958, and fiscal 1957 is shown in the
freight
mortgage loans totalling $105,926,000 and showed
A
fiscal
for
of 1958, The Dime of Brooklyn closed
year
increase in its mortgage portfolio of $53,856,000. The $52
million difference represents satisfactions of existing
.
sales
of
breakdown
JORDAN
J.
EDWARD
afford
beginning of 1959,- the bank had $736,571,000
invested in 73,639 mortgages, virtually all of them in
cur
nine-county lending area. Nearly 50,000 of these
loans, aggregating almost $500,000,000, were on homes
in Nassau and Suffolk Counties;:
policy of expansion into other
a de-emphasis of
railway products.
During the
At
rather than
fields
can
President, Beech-Nut Life
of loans still
equipment.' This increased to 41% in
the fiscal year ended September 30,
1958.'This increase was the result
of the
people want at prices they
pay.
mortgages
of our
railway
10%
other
for
were
to
43
(439)
kind of homes that
Steel Foundries
American Steel Foundries during the
"lie earnings of
postwar
The Commercial and Financial Chronicle
...
comparison. Anyway, ahead
of us is a
prices, high wages, cold war worries and
Total tire
10%
113
above
million
shipments in 1959 are expected to be
last
This
year.
tires
of
these will be tubeless
all
types.
tires,
a
about
will mean sales of about
More than
one-half of
B. F. Goodrich,
innovation
of 10 years ago.
Passenger car leplacement tire sales
60 million
replacement
more
in 1958 exceeded
units, about 6M>% more than 1957,
and truck
tire sales totaled 8.8 million, about
than 1957.
Farm tire shipments were up
3.3%
13% over
1957, he said.
World
record of
consumption of rubber in 1959 may set a new
about 3,300.000 long
tons, excluding
Continued
on
synthetic
page
44
44
The Commercial and Financial Chronicle
(440)
long tons in
outside the
Rising consumption in the free world
1958.
and
States
largely offset the
imports by the Soviet bloc countries
U.S.A.
in
decline
in
requirements
rubber
new
rubber
in natural
increase
sharp
a
1958.
imports of natural rubber are estimated at
Soviet bloc
long
1957' total.
World
in 1958, about 20%
tons
■
■
'
,./;/•
natural
this
consumed
be
year.
of
production
capacity for
States
United
Meanwhile,
will
that
rubber
to
in 1958, in line with the amount
reach 1,885,000 long tons
of
' .f ;;';
expected
;
rubber is
of natural
production
than the
more
man-made rubber will increase to nearly 1,700,000 long
tons by the end of
This compares with 1,372,000
1959.
expansion
long, tons of capacity at the end of 1957, the
tii two years exceeding 22%.
New
general
in
plants
rubber
man-made
purpose
England, West Germany, France and Italy are expected
to
further
into full production during 1959, adding
go
capacity to meet the world's increasing rubber needs.
F.
B.
Goodrich,
in
announced
organization of
1958
companies for producing tires, tubes, plastics and
new
Brazil, Australia, and Iran.
industrial rubber products in
will go into production in late 1959 or early
These plants
A
I960.
plant
special
produce
to
man-made
purpose
is under construction in Holland.
rubber and latices
HOWARD
ago,
asked
if he favored further
"international trade," he would prob¬
Nature
kind
more
never
was
in
than
the
harvest
Despite reduced acreage brought about by
gathered in.
government edict, a new high was set in production of
grains on which the American public
is so dependent.
Russia in its five-year programs
has made great strides in industrial
production, but of its farm program
little
failure
heard
been
has
live
to
to
up
its
of
because
ever
as
livestock—of which
our
the
Jr.
part—has bene¬
a
ever
a market for the products
increasing crush. Soybean oil
meal, which today is the more significant of the end
products, is being consumed by our animal and poultry
population in quantities hardly thought possible several
years, ago.
Soybean oil, the other end product, is used
for
human
consumption,
help in the form of
overall farm
because
year
and
now
of
the
a
abundance
feed his
This meant
livestock, and
the
farmer had
There
are
some
curtailment
are
of
hogs
as
money
.
gray
clouds overshadowing the pic¬
minor by comparison. As
cotton
by
acreage
hurt the producer of linseed oil.
the broiler
in
headaches
for
the
and
example,
government
any
the
processor's
raw
industry has produced
the
feed
materials
manufacturer.
without
protection in end-product prices.
has "faced similar situations
problems
now
Through
research
hearing
management
departments,
seeds
and is
confronting it.
and
the
not
giving
him
But the industry
dismayed by the
and
the
of
work
of
vegetable
manufacturer
will
its
oil-
make
further strides in meeting the ever-increasing demands
of America.
certain
more
second, because only thus
to avoid war, and
supply dollars to those
can we
our
customers are the most considerately
world; customers are habitually
coddled; people with something to sell take to their
bosoms those who are prospective buyers of their wares.
Traveling salesmen take buyers to dinner; retailers offer
free ice
water
into their stores.
those
to
Whenever
a
mere
"lookers"
There is
thinking
no
To
.
sum
greater degree than had been
visited upon the business of
-"importing." It was victim¬
ized by ignorance, trampled by stupidity, and sprayed
with prejudice.
By misguided millions imports were
regarded primarily as intrusions upon our own produc¬
tion, and "straw men" were set up to stop off the entry
imports
of
heart had
ruled
their heads.
In
occupy
glad to report that American businessmen
come' to
a
proper realization.
Far from
: imports
only to those products which
am
to
have
their
not be secured, they are
can
actually scouring
countries, to bring into our own the
offerings of many parts of the world. The prejudice
against importing has been dissipated by the more intel¬
ligent thinking, broader knowledge, and higher degree
the markets of other
of world consciousness of those who are
responsible for
the
economic
growth of
country.
our
M.
KENNEDY
President, Consolidated Foods
these conditions it appears that
period of rebuilding and strengthen¬
ing our national economic structure
prove
1959
will
be
a
booming 60's
short, 1959
favorable
a
national economy, with progress
accruing at a steady, moderate pace,
and varying in
intensity from in¬
dustry to industry.
If the foregoing forecast proves
correct, it is safe to assume that the
food industry will continue to
forge
ahead during the new year.
Sub¬
stantiating the case for increased
our
sales
are
such factors
as
our
_
information
indicates
'
good year for the national economy "
a
general and for the food industry in particular^ In"
latter, competition will be at its usual keen pace,
shouldn't
present
any
insurmountable problems"
which progressive companies can't solve through the "
Intelligent planning of their business activities.
FRANK F.
President, National
KOLBE
Coal Association,
<
Washington, D. C.
The
old
famous
about
to
get
Mayflower Hotel
neighbor.
new
a
in
Washington
Construction will
is
begin
next month on the office building that will serve
headquarters for the National Coal Association.
decision
The
building in
to
invest
reflects
based upon sound
that
foresee
coal
in
crease
dicted
new
economic analyses
coming
of at least
resurgence
over
in
1958
current
of
An in¬
the 400-
years.
10%
output
the
for
a
attitude
an
sharp
a
the
million-ton
in
as
period of general busi¬
a
decline
ness
is
pre¬
There
is a variety of opinions among fuel
experts regarding subsequent pro¬
duction levels, but all agree that the
curve will continue upward far into.,
the future.
.
year.
.
v
.
The coal I?industry itself is over¬
looking no opportunity to increase
Frank F. Kolbe
its market potential. Its investment in new machines and mining methods
has brought an output per-man day of at least four times
greater than that of any other country in the world.
Multimillion dollar preparation plants clean and size the
product to meet the precise specifications of every cus¬
tomer. Combustion engineers are available through the
Bituminous Coal Institute, an affiliate of the National
Coal Association, to work
with plant architects and
engineers in providing maximum fuel efficiency.
;XI
customer
electric
utility industry, which became the No. 1
in 1952, will use progressively larger
heating
and
air conditioning
is indirectly
re¬
capturing this outlet for the coal industry.
population increases and standards of living move
As
upward, more steel will be required. Since approxi¬
mately one ton of coal is required in the manufacture
of every ton of steel, coal is expected to experience
portant coal consumer, will also increase its order in the
ahead, particularly as the vast highway program
While overseas shipments of coal have
wide fluctuations since the end of World
War II, a leveling off only slightly below the present
heavy overseas movement is expected. Railroads, once
coal's best customers, now consume only a very small
percentage of total output.
'
is
expanded.
been subject to
expand¬
industry itself, we can expect greater
coal industry
While the
stature by
the
its
Federal
*
Within the food
an
years
ing population and family formation,
S. M. Kennedy
a
predicted rise in disposable per¬
sonal income, and ample food sup¬
plies to meet the requirements implied by the former
conditions.
•
proportionate gains in this area and in other manufac¬
turing and processing industries. Aluminum, once bound
to hydroelectric power, has already begun its move into
the rich coal fields where electricity for reduction may
be obtained at minimum expense. Cement, another im¬
for
year
'v.\"
quantities in succeeding years. Although the home mar¬
ket for coal has decreased substantially, the advent of
Corporation
Under
should
or
reduce
own
strives to raise its economic
bootstraps, it looks to Washington for
policy adjustments necessary to
eliminate
inequities in the competitive fuels market.
It
sales in several important categories in the year ahead.
expects Congress and/or the Executive Department to
For
put
example, it is increasingly evident that both
con¬
venience and gourmet foods have captivated the public's
fancy and taste.
At
believe
popularity
that
entrenched
on
this
present, there is
every
become
reason
to
firmly
more
ahead
will
since
also
higher dollar volume
seems
offer
to
no
be
a
receive
they
growing
net
emphasis
more
provide
and
store
profit.
awareness
the fact
in
the
operators
with
However,
there
that these products
magic panacea for profit problems.
becoming alert to
a
lid
domestic
on
the residual oil imports that are crowding
fuels
out of
East Coast utility and industrial
plants in defiance of a Cabinet Committee recommenda¬
The dumping of natural gas under
tion.
industrial boil¬
that
this
Retailers
merchandise
ers,
at whatever price is necessary to undersell coal in
the
during 1959, with sales rising to new highs
these profitable products.
year
are
wili
|
for new'
but
coal
Generally speaking, the major fires of the recession
have been extinguished.
All that remains are a few
minor conflagrations still
affecting various industries.
in preparation for the
which
lie
ahead.
In
see
in
The electric
S.
:
available
current
that 1959 will be
an
to
|
if these small.;
.
„
up,
foreign customer for
us.
a
profitable operations, since!
in established channels of.
interesting to
obtaining established objectives* ^
thereby eliminating costly inefficiencies otherwise in-v
v...
—
vA y.
curred.
States, he is plied with
American activity upon which mistaken
directed to
was
gap
an
who
wine and song—yet the best entertainment we can offer
him is to buy something from his country in return for
the business he does with
prove
a
It will be
the
goods.
Furthermore,
and
can
fill
i In addition to the foregoing, the food field will make
greater use of marketing information and statistics dur- *
ing the new year. Taken as a whole, the industry is •
increasingly aware of the value of sound marketing #
programs
based on facts arid scientific procedures; r
Through such programs, organizations are able to chan-
selling, first be¬
as
means
urgently need
so
further
a
nel their efforts toward
Arthur S. Kleeman
treated group in all the
Non-foods
processor
feed
floor
a
-
efforts
the
has
Use of substitutes has
Extension of excessive
(chicken)
raiser
the
an
Government crop support programs have placed
on
to
the feed manufacturer in turn
restricted the cottonseed crusher.
„credit
top
and
crops
recorded peak sales.
ture, but they
a
high level
very
of
prices for much of the animal' population such
beef cattle.
for
not
program,
be facing us.
at
economy was
it
were
government export
a
major stumbling block would
and
no
countries which
otherwise
rations for feeding
has been
last
there is
cause
seem
greatest phenomena of all this has been
the fact that there
,
Today the whole commercial world recognizes the im¬
portance of buying abroad as well
see
tional procedures, with cost control programs playing
important role in procuring the desired goals.
through purchasing their goods.
was
will
1959
profit margins.
Part -of this program will
consist of striving for additional volume. Another seg¬
will encompass further improvements in opera--
is
fighting,
turn¬
increased
tomers," by which I undertook to
develop the thesis that the best way
to answer bullying nations and pre¬
vent their
to rapid
realized.
ment
realize
to
come
eye
an
be
operational- standpoint, the new year will
find the food industry intensifying its efforts to obtain
multilateral trade
essential, but that it is also a vital
method of maintaining the peace of
the world. In 1949, in this same dis¬
tinguished journal, I made the state¬
ment that "Nobody shoots his cus¬
only
Now I
is
company
resulting from the
The
have
traders
not
to
appear
From
the manger undisturbed, they had
completely that international trade meant
"give and take," with the "take" operating simultane¬
ously with the "give."
.
by the increase in our crops. Soybeans, as an
example, the crushing of which is one of our major
activities, are produced in almost double the volume
they were a short five years ago. The crop of 269 million
in 1953 grew to 341, 374, 449, 484, and 574 million
bushels in the successive years 1954 through 1958. The
soybean processor as a result has been able to grind
out new records each year and to maintain his plant at
capacity operation even though expansion of facilities
has been going on steadily.
mainly
that
that
are
products and packaging.
forgotten
fited
of
small
limiting
The
processor
of vegetable oilbearing peds and manufacturer of
sell
- ■
;•
,
we
can
to
are
stores have any effect on manufacturers' plans
the
citizens whose lack
been.
One
.
their zeal
Kellogg,
indications
distribution.
which could well provide the wherewithal
evenly spread prosperity throughout the world,
our own country included.
Many of our tariff walls were
nothing more than mental hazards erected by uninformed
H.
they
importance of buying
abroad lor the purpose of broadening
markets for American goods, is gen¬
erally accepted; large companies and
for
other nation has
no
'■
•
Today
of
expectations.
By contrast, our market baskets are
overflowing, due to the ingenuity of
our
farmers and the many agricul¬
tural groups which are continually,
bringing forth new ideas and plans
to improve our total output. Hybrid
seed, crop rotation, use of fertilizers,
mechanical equipment — all con¬
tribute
their
part to make
us
a
cation blessed
it?"
where
and
American goods visits the United
of last fall when record hay and grain crops were
season
sell
we
Thursday, January 22, 1959
.
selected with
sales
streamlined stores
of
ably have said, "I certainly do; what
come
President, Spencer Kellogg and Sons, Inc.
development
,
mushrooming of the bantam market movement. Given
the
right location and management, these compact,
to what constitutes sound world commerce, has
improved substantially in the past decade. Ten years
chairs
KELLOGG, JR.
carefully
maximum
Current
The understanding of the average American business¬
man, as
can
350,000
be
if
over
parable estimated consumption of 3,130,000
United
must
KLEEMAN
President, Arthur S. Kleeman & Company, Ltd
behind the iron curtain against com¬
rubber consumed
S.
ARTHUR
43
Continued from page
.
non-heating
coal
executives
season,
and
is
another practice
conservationists
that both
conscious
of
the
sparsity of gas reserves are hoping will be prohibited.
With almost
dreds of
more
a
.
trillion tons—enough to last for hun¬
years—available in this country, coal looms ever
important to America's defense structure and eco¬
nomic well-being.
Number 5814
189
Volume
.
The Commercial and Financial Chronicle
.
.
O. KOONTZ
F.
fifty-nine
and
hundred
marks
President, McCall Corporation
100th
the
anniversary of the Drake Oil Well and the founding of
the Petroleum Industry in Pennsylvania.
The Quaker
Corporation is looking forward to
a feeling
of "cautious optimism."
This term
is used because we believe that, al¬
though there are many reasons for
being optimistic, we must be alert
Oil
State
this
and
Refining
centennial year with
in
cautious
view
of
effect
adverse
the
on
Oil
general economy.
Perhaps the. greatest reason for
optimism is - the steady growth of
our
population and the need' for
goods1 and services required by a
dynamic people.1 Personal income in
the United States is now running at
the rate of $377 l/z billion annually,
or 2% higher than a year ago.
And
t. o. Koontz
consumer
debt is nearly $1 billion
less than a year ago. Thus the consumer is in a good
position to buy what he wants and needs. The recent
Christmas
v
As
indicates
season
the
average
American
con¬
is buying with optimism and confidence,
-manufacturer
a
motive
and
marketer
quality
of
auto¬
Quaker State is interesting in the
types of motor vehicles.
production of passenger cars reaches
the the expected five and one-half million, 1959 should
be a successful and profitable year.
lubricants,
continued growth and use of all
If
estimated
the
is
There
much
that the small
evidence
car
will
con¬
tinue to grow in popularity. By late 1959 or early 1960,
makers of foreign cars will undoubtedly be meeting
with stiff competition from U. S. manufacturers.
The
growing popularity of the small car should accelerate the
trend to
two and three
more
families.
car
With increas¬
ing number of passenger cars, trucks and buses, we must
have greater highway construction, enlarged parking
facilities, more and better service facilities, and better
motor fuels, oils and lubricants.
Quaker State has been making plans on a long-term
basis.
Manufacturing and research facilities have been
given special attention and are being expanded. Sup¬
plies of our most important raw material, 100% Pure
Pennsylvania Grade Crude Oil, are more than adequate.
;
Additional
transportation facil¬
ities was made in 1958. Continued special attention will
be given
to research and product development, the
maintenance of a high degree of efficiency in all manu-.
facturing and marketing facilities, and to overall man¬
agement.
Among the things which call for a degree of caution
are the continued threat of inflation and the continuing
expansion
in
the demands of
a growing population
growing income.
Manufacturers of established na¬
pipeline
.
spiral of increased wages and living costs.
The Oil In¬
dustry as a whole faces some uncertainties in 1959 as
a result of the recent action of the union of oil, chemical
and atomic workers in terminating some 600 contracts.
It is hoped that early 1959 will bring a satisfactory ad¬
justment of those problems which could be harmful to
the Oil Industry and the general economy. I am optim¬
istic that a sane and realistic viewpoint on the part of
management and labor will prevail and thereby elim¬
inate one of the greatest threats to our present economy.
for
the
new
year.
Here
at
Redbook
and
in
the
first
show
substantial
advertising
two
months
of
1959.
all
a. B. Langii©
promo¬
tion to the consumer
markets, greater demands for color
printing and more imaginative use of the printed page,
will brighten the profit outlook of
many of the nation's
publishers in 1959.
The rising circulations which magazines have
enjoyed
from
3,890,000 in
1949 to 5,345,000 in 1958; Redbook from
1,941,667 in 1949
to 2,741,000 in 1958—will continue upward.
This circulation vitality, we think, is based on in¬
audience
loyalty, more effective circulation
methods, a large adult population, and wider educational
opportunities, which seem to be reflected in more liter¬
ate readership.
•
This year's encouraging activity in advertising and
circulation, naturally, affects favorably the printing end
of the business. Opr,printing plant in Dayton, one of the
largest in the world, is currently producing an average
of 3,000,000 magazines a day, and we expect an even
greater output for the next 12 months.
^
.,
The increase of postal rate expenses,
imposed last year,
are being reduced somewhat at McCall's—as with other
magazines—due to new methods of distribution and mail¬
ing.
Though 1958 proved to be 3 relatively slow year for
the
publishing industry in general,
showed
an increase of 15% in net profits.
Other publishers, too,
perhaps spurred by the competitive conditions of last
year, have adopted new techniques and facilities to im¬
prove their positions
and, like McCall's, undoubtedly
foresee increased creativity, productivity and sales for
1959.
-v
'•
our company
,
JOHN A.
represented
a
year
of achievement for
H.
EVERETT
LANE
Despite the recession in
insurance sales for
States
early part of the year,
1958, particularly in the New England
in which
area
satisfactory.
nary
sales
Company
the
Bostpn Mutual operates, were most
Measured by the record
year of
1957, ordi¬
substantially up,
and
sales of group and
industrial
life insurance declined slightly.
The life insurance industry is giv¬
ing to the insuring public policies
and service designed to meet con¬
stantly changing needs. Competition
in the industry is keen and manage¬
ment is faced with the necessity of
adapting its thinking to new ideas
and to the requirements of informed
insurance buyers. •
Large segments of the country's
were
are
either uninsured
modern
more
tion.
An
teenagers
or
need
adequate protec¬
unparalleled number of
Aeronca,
are
becoming
life
Everett
insur¬
prospects and this will continue
to be so for tue next few years. The need to
H.
Lane
the eventualities of death and old age
is
as
prepare
for
as ever
Because
the life insurance
and many other
industry is alert to these
considerations, and because the industry
has always met the challenge of an expanding market in
a
rising economy, it seems reasonable to expect that the
year
and
1959 will show extensive gains in insurance sales
substantial rise in the volume of insurance pro¬
a
tection.
The
life
insurance
companies
are
faced with
an
in¬
creasing burden of Federal taxation, as well as increasing
costs.
However, competition and the ever-present desire
to
give to the insurance buyer the best product at the
lowest cost will require that improvements and econ¬
omies in operations be found to offset the unfavorable
factors.
efficient
more
We
duction.
and
economical
-
these
with
of
the
responsibilities
in
the
airframe, the propulsion,
manufacturing
the guidance
or
ful, the Convair Atlas, is delivering unique information,
including the President's Christmas message.
Aeronca
keep
has found
it both necessary and possible to
industry in its progress towards
responsibilities in the aircraft and missile
step
expanded
field.
In
leaders.
tion
with
some
the
Aeronca
areas
In such fields
of
finds
itself
the
of
one
the development and fabrica¬
as
high-temperature structures for aircraft and
production Aeronca has attained acknowledged
missile
leadership.
Major expansion and rearrangement of facilities has
provided for the efficient and economical manufacture
of structures
as well as
providing for continued research
development activity to retain that leadership. New
activities
have
been
purchased, or mergers are in
and
which
progress
will
insure
continued
development
of
Aeronca's capabilities.
Aeronca-California
subsidiary,
acquired'
Corporation,
established
was
from
in
Pastushin
wholly
owned
1.958 in facilities
a
July,
Aviation
Corporation,,
Angeles,
Los
California. The Division is engaged in the
manufacture of B-52-G "Missile Platform" wing tanks,
and pylons.
-
%«,
Formal merger agreements with the
Longren Aircraft
Company,
Incorporated,
have
been
signed
subject
to
stockholder action which is expected to occur in Febru¬
ary, 1959. This merger, when accomplished,
to add materially to Aeronca's
position
centrating
aircraft
the trade
the production
on
missile
and
name
of
This
use.
is expected
in
Coast portion of the aircraft
industry.
Aeronca's Baltimore Division developed
is
the
and
electronic
line
West
is
con¬
devices
marketed
for
under
"Aeronca-Digidac."
the entry of Aeronca
saw
approach
to
the
requirements.
into
development
Aeronca,
as
"weapon
a
and
production
the systems man¬
ager, associated with the Emerson Electric Manufactur¬
ing
however,
be
field
that
feel,
To the skilled
destined
period.
of
to
both
now
observer it became apparent that pro¬
continue
The present
missiles
and
until
soon
that
and
unmanned
simultaneously for
distinction
and
rockets
a
aircraft
was
considerable
between manned
will
gradually
air¬
merge
the distinction may be only one of propulsion,
is,
between conventional
nuclear propulsion.
now
under
consideration
for
inclusion
of
add
to
which will
production capabilities in the
temperature aircraft structures.
our
advanced high
We feel
will continue
manned
systems
materially
significant
a
target
Plans should reach fulfillment in
early 1959
systems
and
rocket
or
,
According to available preliminary data, 1958 saw an
more than 50% in the orders placed for air¬
increase of
nine months of 1958,
months of 1957. However,
same period showed only a
slight gain due to budgetary expenditure limitations.
craft and missiles during the first
compared to the first nine
actual expenditures for the
the
that, in all the communities where Aeronca is
operating, we shall be able to move forward with
industry and assist in the growth and development
those
of
activities
communities.
are
expect to
we
on
In
sound
a
again
particular,
and
produce
Middletown
our
growing basis in which
in
1959
record
a
volume
of business.
J. RAYMOND LEEK
President, Philadelphia-Baltimore Stock Exchange
The
1958
year
ended
as
the best
year
in the recent
history of the Philadelphia-Baltimore Stock Exchange.
There were traded
approximately 10,000,000 shares, the
largest volume since 1931. This increase of 28% follows
an
increase
of
6.9%
iiv 1957,
the
greatest relative increase of any ex¬
change in the country.
The Stock Clearing Corporation, a
wholly-owned subsidiary, now clears
than
more
1,000 transactions
It offers our members
and
facilities
ganization.
more
a
day.
services
than
any similar or¬
include clearance
They
by mail for out-of-town firms, 19 of
are located along the Atlantic
Seaboard south of Washington, all
the way to Alabama and Florida.
Methods for broadening the services
of Stock Clearing Corporation are
being studied, along with the most
modern
methods for handling the
which
continued
By year end many decisions affecting the future of
the industry became evident. The manned aircraft pro¬
is continuing. Production of the B-52-G "Missile
jet bomber has been extended. This worldcircling heavy-bomber is the major weapon of the Stra¬
the
increase
in
business
J.
Raymond
Leek
;
an-
ticipated.
gram
Platform"
tegic
portant factor in the economy and the lives of the people
supported by the KC-135 strato-jet tanker which holds
all records for sustained non-refueled high speed flight.
Digitized of the United States.
for FRASER
been
Department of Defense inventory of missiles.
a fine year in which
great
progress has been made.
Much remains to be done.
In summary, the year 1950 should show again that the
life insurance industry is a growing and ever more im¬
_
had
We feel that 1958 has been
pro¬
Aeronca has been and
craft
before.
ICBMs
and
in the
duction
acute
IRBMs
small
in the company's history.
Our employment is somewhat less,
due
to
skills
developed
in
the
processes of manufacturing, and to
physical moves which have permitted
.
ance
at
...
from
Company of St. Louis, Mo., and Experiment,
Incorporated, of Richmond, Va. established an industrial
team to participate
jointly in competition for missile
for
as
factor in the
further growth and development of
the Middletown community area.
For
the
aircraft
industry as a
whole 1958 was a year of readjust¬
ment of programs, and of re-exami¬
nation of future requirements. Em¬
John A. Lawler
ployment generally declined in the
early part of the year, but as eco¬
nomic
requirements of the Department of Defense
loosened in the early fall, employment began to gain
until by year end it was approaching normal. As the
re-examination of programs continued, many of the air¬
craft companies made radical changes in their organiza¬
tion to meet the changing requirements.
t
and
hour,
per
ranging
industry of the
United States. With estimated sales of $23,100,000 and a
sales order backlog of approximately $40,000,000 Aeronca
finds
itself again closing the best
as
to
,
citizens
to
miles
2,000
projects,
by the military services by year end 1958.
nation's aircraft industry plays a major role in
of missile
and missile
the aircraft
missile
missiles
system"
well
40
November
year
President, Boston Mutual Life Insurance
than
During the year hardware was delivered that resulted
in placing five satellites in
orbit, based on various IRBM
and ICBM combinations.
The largest and most power¬
LAWLER
President, Aeronca Manufacturing Corporation
1958
industry, set by military air
was high-lighted in contract awards by
Force for a tri-sonic manned bomber to
Air
system.
anticipated throughout the year.
Large numbers of new products scheduled for
creased
S.
fields
Continued linage and revenue gains for the
magazine are
went
designed to accelerate to speeds
of 3,600 miles per hour in 90 seconds.
excess
The
New
years—McCall's
from space. The X-15 is
Test flights
man.
yield
ability to enter and return
in man's
data
new
by
1959 which should
announced
Mills, have been scheduled for 1959.
10
much in
air-to-air
for
Coca-Cola, Singer Sewing Ma¬
chine, Libbey Glass and Fieldcrest
past
expected to begin in mid
More
like
the
are
at speeds in excess of
altitudes above 70,000 feet.
advertisers not in McCall's last
year,
in
missile, capable of the highest speeds
and altitudes ever to be penetrated
fly
in¬
revenue
American's manned
the U.
Corporation, both McCall's magazine
creases
Man's dream of space travel moved toward realization
"roll out" in the late fall of the X-15, North
requirements,
McCall
bomber has been certi¬
with the
The fantastic pace for the
brands, eager to boost their
sales, have already started the trend
to
larger advertising expenditures
45
fied for inclusion in the Air Force inventory as an opera¬
tional weapon system.
in
with its
tional
have an
Industry
and the
sumer
If McCall Corporation reflects the industry-wide
trend,
publishing can look forward to continuing public accept¬
ance and rising profits for 1959.
We think advertisers,
taking advantage of magazines'
expanding circulations and proven
readership loyalties, will step up ad¬
vertising budgets this year to meet
numerous
uncertain factors which may
Convair's B-58 supersonic jet
ARTHUR B. LANGLIE
President, Quaker State Oil Refining Corporation
Nineteen
(441)
Air Command presently in being as our major
of strike force retaliation. This aircraft will be
weapon
.
The cumulative effects of our continued expansion and
broadening
of
our
markets should
creased business in the new year,
ment,
concluded
Stock Exchanges
encourage
We fostered
in¬
an agree¬
between the Boston and Pittsburgh
in November, 1958, which is adding to
Continued
on
page
46
46
The Commercial and
(442)
Continued, from page
R.
45
G.
LeTOURNEAU
Chairman of the Board and
the
activity of their markets
This
P-BSE.
the
is
the
they
result of
are
attract the
tions
the alliance of
in
now
markets on the
facilities
the
position
a
three exchanges,
the
jointly
severally
and
primary listing of the securities of
located
distribution
the
in
United
Eastern
throughout this entire
States.
area
to
corpora¬
Sources
are
of
avail¬
now
able; and the repeal of the Pennsylvania StockJTransfer
Tax by the 1957 session of
makes
dealing
well
»as
for
issuer.
as
issuer
There
well
as
market, which
the Pennsylvania legislature
the P-BSE most attractive to investor
on
is
anticipate
we
and sufficient
good
investor
as
to
patronize
reason
the
home
increasing extent.
tc an
EARLE II.
LE
There is
quite
now
for
though there
may
ing
the
1959
in
pace
which
the
part
momentum
good and
so.
It is
the
and a half ago. I do not look for any tremendous
but I see no reason why we
not
keep climbing steadily
ahead and quit being so jittery that
the moment we hear things are slow¬
is
mand for
remain
that
the
loans will continue
through the first half of the
de¬
strong
year
porate
some
ing down
confidence
looking
to
the
forward
1959
year
with
E.
H.
Le
growing
in
1929
there
m
F.
LEOPOLD
president and Chairman, Ero
Nineteen
mobile seat
predictions.
fifty-nine will be
Manufacturing Co.
good year for the auto¬
industry if new car sales come up to
cover
While
the
a
older
still
is
car
1929
principal
our
to
owners
is
install
the
seat
clear
covers,
would
also
significant that 84% of new
purchases involve trade-ins, gen¬
erally leading to "dressing up" of the
tive
new
The
is
car
I
course
particularly
were
act
which
is
,
Howard F. Leopold
to
lot
a
lift the load from
hungry.
I think
program,
cover
of machines for
their
heavy
has
Two
auto
our
new
to
our
successful
of Protecto
sales
to
a
focus national attention
even
more important in 1959.
We
full year's sales from 12 Pro¬
opened at various times during the second
tecto
stores
a
half of last year.
In addition, we expect to open some
30 new units in the chain this
year.
Firmer establish¬
ment of our new products will also
improve their
con¬
tribution to volume.
The
recent
acquisition of the seat cover division of
another company in
Dallas, Texas, will not only add
directly to sales but will make possible the penetration
of
a new
geographical
area
with
full line of products,
further economies in
distribution, and a more efficient
realignment of our production facilities. We will also
our
announce
in
our
shortly the introduction of other
sporting goods line.
Such
moves
have placed
sharply if anticipated
sales of auto seat
Ero in
new car
a
new
products
sales bring
an
increase in
More
importantly, they signify
intention not to be dependent
solely upon general
business conditions. We consider
this, apart from all
statistical auguries, to be a
salutary attitude for any
covers.
our
company.
continue
available
to
refinance
to
and
D.
but
its
possibly- herald
rates
new
a
of
surge
the increase
on
because of
the
a recovery year,
in
progress
our
\
WILLIS
:
Pan
G.
American
LIPSCOMB
Traffic
World
Hawaii
on
gained
18 per cent over the last half of
dramatic
a
ness
was
the
as
never
before.
:
.
of
improved
of
vitality of the
This
will
the
in
of
period
are
in
of
expand in
that the
appear
will continue to be
island
of
Oahu
Honolulu.
of
omy
Arthur
D.
It
the
1959;
the
neighbor
•
that
of
JOHN
F.
1958
seems
as
national
The growth in transatlantic
than
expenditures
chases,
it
and
now
heavy
a
appears,
in
corporate
'
.
pushed us into
These had profound
earnings, and in
record
industries
on
highs.
the
These
whole
American
sys-
tem
eastbound
transatlantic
esti¬
an
cargo
ton
miles
miles.- This
year
the total
may
be
more
million.
increase
Of Pan
Am's
over
more
total
last year. Next summer,
traver
The
year
ments for
1958
was
studded
jet
co
transatlantic
1959's peak summer season, 75
mile-per-hour Jet Clippers.
.
per
with
Pan" American:
capacity during
cent will be in
important
575-
develop¬
'
*
It
the
opening ci the first United States com¬
mercial jet service with
Boeing 707 flights to Paris and
Rome beginning October
26, and to London on Novem¬
ber 16;.
•
•
saw
The
operation
of
a
jet
leasing
arrangement
.
with
National Airlines in which National used Pan Am
jets to
open the first domestic jet service on its New YorkMiami route;
some
latter
fed
100
before.
pur¬
pro¬
and
Pan
opera¬
lesser extent
.
effects upon the
economy as a whole
but did little to effect
certain indus¬
tries which showed increased
duction
:
flights will stimulate
factors which
recession.
the
a
45 per cent increase for the first 10 months of
the same period in 1957 and are estimated to
a
over
considerable
•
capital
decline in inventory
the
"
were
reflected to
Looking forward to 1959, I predicted that the business
improvement of the last half of 1958 will continue
through 1959. Traffic this winter is
"^mwqng a
LILLY
Cutbacks
was
American's worldwide routes increased
96,595,000 ton
we
economy.
half times those oil tne
to that level for the full year. Ton mileage in the
Company's Pacific Division increased by 6 per cent, and
over its
worldwide routes as a whole by 10 per 'cent.
Pan American's cargo ton mileage for 1957 .surpassed
that of any carrier, domestic or overseas, with a total of
emerge from our
recent recession
basic factors have proved to be
guideposts for
certain
a
similar period a year ago.
hold
1957.
Chairman of the Board and President,
St. Louis County National Bank,
Clayton, Mo.
a
throughout
•
•
airline's
showed
tied to the economic development
the neighbor islands.
While there should be some
improvement over 1958, it is doubtful that the volume
exceed
January through April. ;1959,
cent over the second half of 1957.
Cargo, ton-mileage also increased this year over 1957.
The
islands; will
of
will
Jet
the
mated 6 per
reduced
travel
Pan
on
of
econ¬
Hawaiian Airlines is
air
Lipscomb
Am's
during the latter half of the
year.
From a modest beginning, stemming from the
business recession in the United States, passenger travel
of the sugar strike for some time
opportunities for employment in the
agricultural communities.
Perhaps more than any other business in the Territory
the
G.
.
continue to feel the damaging effect
Lewis
on
during;
—
'
the
on
City
that the
appears
jet service
stimulating effect
London—Pan
two and
tions
Willis
basic growth
in
Am's
The
destinations
books for
however, it
primarily
and
Pan
and
Clipper
sub¬
investments
mainlandsources
from
Rome
tre¬
economy
result
increased
of
Atlantic.
the
jets can be judged from die
fact that advance bookings to Paris,
The
develop
,
cases
1957,
upswing.
the-result:
-
capital, further stimulating the very
dynamic growth of the Territory.*
main
System
This growth in transatlantic busi¬
appreciation
Hawaii
It
Sales.
and
Airways
An upswing in traffic in the last half of 1958 will
give
Pan American World
Airways an increase of 11 per cent
this year over 1957 011 its transatlantic routes. In the
last six months of 1958, traffic on these routes
LEWIS
Hawaii.
the
Interest
believe
I
factors, 1959 should essentially be
The issue of statehood will
stantially
our
debt.
making money increasingly
use
becoming more expensive.
Vice-President,
use.
Anyhow, there's lot of
let's get going."
mendous
of
its
climb
throughout 1959. In conclusion
above
the
the
chases to current
needs, rather than
The completion of a jet
financing program involving
over the United
States;
The opening of a $15-million-dollar
hangar and Atlan¬
tic Division headquarters and the start of
making
on
economy
on
the
consumer
retail
level. Here is the
key for 1959. In
1958
the
consumer
kept his
39 banks in cities all
pur¬
position to benefit
obligations
Short-term corporate bank loans will be
me
franchised
than achieved by the industry
generally. The introduc¬
tion of new products in the health and
sporting goods
fields has added substantial new volume to over-all sales.
These factors will be
term
the grading
rest of the United States will
seat covers and
level closer to the previous year's
will have the benefit of
at
of
specialty stores has held sales of
auto accessories
which will affect our
14 ly59 is the availability of credit at reason¬
interest rates. I see no softening of interest rates
long as the government continues to utilize short-
economy
able
duction
and
our
pressure.
final" factor of importance
state during 1959.
a
would
chain
warned
inflationary
The
become
latter half of 1957,
comprehensive costexpansion of facilities in
factors have contributed
the
Alaska to
a
declined with the drop in new car
sales, our
been sustained at year-earlier levels and
The opening of
He
some
business conditions and of the intro¬
in the
earnings will again show improvement.
year.
time to come. With constant
pressure on the
Congress from all sides, balancing the budget does not
seem
probable for the fiscal year 1959-1960. However
even a bah need
budget cf increased size will not stop
The total economy of the Territory
in development of
,
strongly encouraged by the admission of
statehood, and feel confident that Hawaii will.
are
counter¬
industry sales of
covers
and
supply all the grading
use.
any
the future.
construction
heavy commitments for
In 1959 I look for heavier
consumer
buying
in
the
durable
goods with its consequent effect on
the auto,
steel,
a
revolutionary new terminal at Idle wild;
inauguration of Economy-fare flights across the
The
John
F.
Lilly
aluminum, furniture,
housing and electric appliance industries. This, however,
should only bring us back to the
approximate levels of
1957.
This opinion is based
primarily on public con-
]
;
j
slightly exceed 1957.
:
Probably the most oft-discussed factor, although it is |
deplorable one, to affect our economy is the inflation |
of our
currency which seems to be assured for 1959
LeTourneau
President, Hawaiian Airlines
We
com¬
The further results of this program are evident in
fiscal year ending this Jan. 31. While
volume
own
ARTHUR
1959
products.
seat
costs.
have to go over to the foreign
people to build their own ma¬
should
expenses
are released during the stammer,
the majority of prudent corporate
recognize this fact and hold the line
Corporate earnings will certainly exceed 1958
in
favorably situated with regard to labor supply and
costs of shipping to our markets. As a
result, despite
lower sales, we were able to increase profits. This was
after
the
business to be done yet, so
areas
moreover
G.
R.
when
the backs of laborers and feed
may
;
earnings
will
and should equal or
chinery. Perhaps to make it easier we could build one
part in one country and another part in another country,
etc. Then we could trade the parts by the hundreds of
thousands and each country could assemble thousands
sales by di¬
general
rapid recoveries in the latter six months.
confident that
economy.
business
instituted
including
we
teach
and
past two years
or
cor¬
a
of it.
more
Ero Manufacturing Co.
a case in
point.
Anticipating the
we
cutting
in the
declining seat
downturn
ever
to
rate of
recovery
large part of the world is still crying for machinery
greater
prognosis for
true for those
able to lower costs
versification.
feel
on
wouldn't be able to get all
covers.
favorable
panies
able
the
of
executives
I
by the dealer with attrac¬
seat
be
at
confidence
second quarter
I
imagine the grading machinery used today is
times what it was then and I'm still planning on
It
car
traded
ratios
more
I
par¬
plastic types.
made
recent
should
addition
customer, current fashions of rich upholstery have caused
an
increasing perceniage of new car
ticularly
that
was
look
a
not justify this confidence the stock market while
moving to new highs in the first six months of .1959
j
sideways or even feel a correction after 1959
think we
happened
I
What
1958
things began to slow down, every¬
body acted like the world was coming to an end and
our State and Federal Governments both
.began letting
construction contracts forbidding the use 6f machinery.
The Florida Canal was started using wheelbarrows to
build it.
No wonder they dropped it.
The propaganda
was
that we had made too much machinery, and they
literally threw a monkey wrench into the gears of manu¬
facturing.
One of my accountants figured it out in 1935
as our
Peoria factory was just getting well under way
and I was already proposing an addition to
it, that with
countries
HOWARD
in
will
1930
because
lesson.
from
tions
thing that hap¬
and
again,
our
A
demand
kve j
confidence
could move
inflation grows, they will pay
higher prices to get their inventories
back where they belong.
Masters
for credit.
this
expressed by investors assumes
corporate earnings to sales will continue
when higher sales are realized in 1959. Should
corpora¬
and
making
in
and
of
armor
earnings, that those corporations who have dtme
cost-cutting during the first six months !
that
little everybody starts to
In fact, I think that
a lot of people are keeping their in¬
ventories dangerously low right now,
because as
wages continue to rise
20
fact is programming additional capi¬
tal early in
the year to meet the
the
serious
Tne
a
business.
The Pacific National Bank of San
is
of
inventories.
cut
that of
Francisco
obvious
boom,
should
machinery the whole world could
if
year
not longer.
is strong and ready for a new
Should any international event or a
whole but the stock market in particular
ability of corporations to hold the line on costs.
the
generally
are
opinion
my
at
Business
balance should
on
a
through
least the first half of 1959.
conditions in the West
Even
of
1958 the year should continue with
satisfactory
promising.
recovery
latter
bit of heavy construction in the
a
It
back
most
me
nation
dent
certainly be slowed down or even reversed,
j
Another very important factor which could affect the
is
happen
slacken¬
some
business
in
started
be
is to
the
events
economy as a
a
learned
San Francisco, Calif.
The outlook
of
offing and that's the key to good business. Things seem
to be coming back up "slow but sure" since the slump
pened
MASTERS
that
period of progress.
series
Thursday, January 22, 1959
...
would
I do not believe the
President, Pacific National Bank,
fidence
President,
R. G. LeTourneau Inc.
of
had previously concluded a similar
these exchanges individually.
arrangement with
As
as
through
accomplished
which
P-BSE,
well
as
Financial Chronicle
Atlantic—-another result of Pan Am's. constant efforts to
international airline fares;
reduce
And
a
"new
design and
equipment all
The most
look,"
a new
which brought a clean, modern
paint job to Pan Am planes and other
over
the world.
significant event of the
year was the deliv-
Number 5814
Volume 189
.
F.
early fall of the first of Pan
eiy in late summer and.
Ari's $300,000,000, jet fleet
consist of 23 Boeing 707's, 17 of
Intercontinental version, and 21
D<£-8 jets. The first six Jet Clippers are now in opera¬
tion across the Atlantic to Paris, Rome and London.
Tiiey have set speed records of 5 hours and 41 minutes
to; London, and 6 hours and four minutes to Paris. And, they have been operating with an average of 95 per cent
of their capacity filled—an extremely high-"seat factor" /
for any; time of
year, and unprecedented-in winter*
complete, will
long-range
when
the
th£m
At
President, Monumental Life Insurance Company
The outlook for 1959 for expanding and
instance, has
Since
increasing the
ownership of life insurance is, I believe, good. Some of
the factors which will affect the growth of life insurance
are
favorable—others unfavorable.
In my opinion the
favorable
factors
favorable
to
an
outweigh
the
which
extent
I
un¬
be¬
optimistic viewpoint
for the year 1959.
It seems probable to me that busi¬
ness activity will continue the pres¬
have
this
time, Pan Am's jet lease arrangement f
Airlines, makes it possible fOr.that airline ;
the same
1948
moved
$43 million backlog of non-defense
a
total
a
223
of
manufacturing firm9
sidelight to
of these industries. A
new
Most heartening
state.
to the
diversification
the
is
fact
these firms now manufacturing "Arizona
Made" products shows that these firms, on the average,
are
looking forward to a 10% increase in business
of
survey
in
lieve justifies an
'%
operations,.
for
LOWEREE
HAROLD
47
orders.
aircraft. The fleet,
of 44
(443)
Chronicle
The Commercial and Financial
.
.
1959.
Promotional efforts to add to the roster of diversified
manufacturing industries will continue at
during 1959.
Tourists visiting the state
pace
ently improving trend throughout
new year.
The extent or degree
of this expected improvement could
they have completed trips to' Europe. They then
streak down to Miami and back and are'"returned to
year
and another transatlantic
brought about by inflation, the atti¬
accelerated
are expected to arrive here
numbers than ever before during the coming
Some predictions are for an increase as high as
year.
by such factors as public
non-acceptance of the 1959 automo¬
bile models,
rising costs of living
an
r
;
with National
the
operate two jet flights every day between New York
Miami Pan Am jets are turned over to National
to
and
be lessened
after
Pan American for maintenance
time for the whole operation—
roundtrip between New York and Europe, and roundtrip
between New York and Miami—is less than 24 hours.
trip.
The total elapsed
In
middle
the
last
of
of Pan Am's New
much
year
Eight jets can be parked on the
hangar floor and another 14 parked on the ramp outside.
A cantilevered
roof covers the 180,000 square feet of
service its jet fleet.
to
to enforce wage
space, and on each side of the building are eight
electrically operated doors 80 feet long and 40 feet high.
Pan Am's new terminal at Idle wild, which will open
within the coming year, is of a revolutionary, "umbrella"
design. A circular cantilevered roof, cove.rihg four acres,
will extend well beyond the terminal '.building itself,
tion
for parked aircraft and weather protec¬
cover
for passengers
Passengers - will board the planes by .means of ramps
extending directly from the waiting room lounge to the
aircraft door. Passengers entering the building from an
elevated taxi ramp will-have no doors .to, open. The
entrance opening will be a "wall" of warm air.
that
of reservations
procedures on
world¬
a
basis is also in the advanced planning stages. Two
wide
Pan Am put in the first nationwide, electronic
reservations system. By means of this, system, the ticket
years ago,
Counter agent
get an answer in four seconds to any
request on the availability of space on'any of hundreds
of Pan Am flights. The airline now wants to add refine¬
ments—such as automatic ticket price-quotation—and
such
make
can
available to the traveling public
all its major stations around the world;* -
at
system
a
ELMER
would
I
will
of new insurance in 1959
10%; terminations should
sales
by perhaps
1958
considerably less, and .ihe net gain of insurance in
force will, I believe, be considerably better than in 1958.
-On the matter of Federal taxation of life insurance
be
if
in
in
1959
the continuation
that
the
companies
of
nationwide
the
This
I
as
area, with its close ties to such
steel and automobile manufactur•
ing,
felt
sharply
and
the
recession
1958
the
than
economic
basic industries
more
that the demand for new
HARRY
to
electric
J. LOYND
gauge
activity under
its, production
serves
as
is
that
way
of
in
electric
cumulative
a
power
Steel
v
pressures.
•
••
.
remains
production
bellwether
significance in Northeast Ohio's
structure.
Here
too,
The
area's
75%
of capacity,
steel
industry
output
in
December
of
auto
.t
parts
sharply
sagged
area
December had reached
early
by week.
"
<
local
full
in
.
1958,
:economy
V-"".•.1 V
their
,
at
the
but
by
automotive
plants
the
auto
production increase in
are
*
•
In
in
to play
anticipated
industry's
30%
of
relative
Northeast Ohio
The final
strength
appeared
on
down
new
housing units completed in 1958
only 3% from
under
the
power
output for 1958
Summing
up,
Cleveland-
department store sales, for example,
was
1957
in
during 1958.
tally
figure.
1957 volume. ' The number of
Our
was
was
Company's
less than 1%
total
electric
3.2% below the 1957 volume.
Cleveland-Northeast
fully confident
the New Year
found
be
in
Ohio
that it will be
every
segment
a
in
confidence is
of Arizona's
,
#
basic and important Arizona
more hopeful outlook
for 1959.
Mining,
much
nearly
*
economy.
a
9% gain.
the new year, renewed
industry, has
Major coppei
this state, for instance, have
lengthened
recently. The marketing situation, as
metal is concerned, has improved greatly
far
as
over
a
this
year ago.
On the farming scene
spite of the recession and its effects, however, some
areas
service should record a
their work weeks
up
1959.
part
economy
overall increase of approximately 11%. Elec¬
forecast to increase by 12%. Our
At the outset of
producers
"
1» t
gearing
1959
a
an
is
a
entering
good one.
it appears that Arizona
farmers
Cotton pro¬
of increased
acreages. Vegetables, citrus and other diversified crops
in greater quantities than previously will contribute to
overall
agricultural gains.
Range conditions signify
experience another prosperous year.
duction will undoubtedly go up as the result
will
cattle
population increases.
contributing to Arizona's eco¬
nomic growth has been the phenomenon of industrial
development in the state since 1945. That this growth
will continue is indicated not only by inquiries and
investigations of manufacturing firms now located out¬
An
outstanding factor
plans of
here. One nationally-recognized, company,
side the state but also by
firms
already
I
Savings Banks Association of the
a
year
York
has it been?
State
1958
For the 128 savings
has
been
another
year
safe
and
we
announced expansion
we
have set new records. To¬
the savings of more
than 11 million
depositors, whose deposits total more
than $20 billion, up $1.4 billion over
last year.
This year we paid out
nearly $610 million in interest-divi¬
dends. Our mortgage holdings stand
$14.9 billion.
this
was
accomplished despite
antiquated State Banking Law
that
prevents savings banks from
the
tric business has been
as
increased
Arizona's
MACFARLANE, JR.
day, the savings banks of New York
State maintain the safest security for
at
LUCKING
Public Service Co.
parts of the nation during the past year, Arizona main¬
tained this upward trend.
In our own business — electric and gas service —we
the
**'
-
world.
of
•
•
of service to the people.
encouraging thrift and making thrift
And
Lab¬
general business gain of approximately 10%This follows economic growth trends experienced by
the state since 1945. In spite of economic losses in other
expect
/
the state.
our
estimates
Conservative
gas
in
the highest level, of the year
payrolls in this vital segment of the
The
...
components
and
and
that
so
have helped to assure
the financial security of families,
homes and communities throughout
Mich., in
Arbor,
WALTER T.
to
Cleveland
week
was
almost triple the April figure at
bottom of the recession..
Production
major
of
business and economic
is significantly upward.
the trend
Ann
1959,
of New
All
T
a
in
of
President, Arizona
indicate
.
profitable,
markets in various
MedicalResearch
total
Thus, in 1959. we are expecting a year of solid progress,
although something less than a boom with its manifold
inflationary
countries.
In
its
entering
year-end,
our
of progress and
world.
of the
health needs of the
sum
is
at the
feeling, however, that the steps that
have been taken both in Europe and elsewhere will tend
to increase the international exchange of goods, which
should be beneficial to both producing and consuming
banks
Harry J. Loynd
branch
building program is well underway both here and
overseas.
Our modest increases will be achieved by
sound marketing of our products to meet the growing
Lmdsetn
It
made
clear estimate of 1959 trade is dif¬
a
President, Buffalo Savings Bank, Buffalo, N. Y.
expect to move into our new
fall
the
were
What kind of
five-year capital
program,
oratories
of all
index
1959
State of New York
is continuing on schedule,
will enable the company to take
advantage of new
going on.
Seasonally
the
annual
rate
of
H. H. Liming
President,
had in
than we have
$50,000,000
$12,500,000
units.
being created for meat,
beef, and the world
population does not appear to
be keeping pace with the rate of
human increase, so that a good outlet
for beef and beef products is indi¬
cated for the coming year.
Substantial currency alterations
an
years.
We
sales
and
cattle
Parke-Davis,
countries
ad¬
justed,
this
production at year end was 15
Elmer
above the low point of the recession
in April, 1958. This rate of recovery
is encouraging, inasmuch as it reflects the
of so many varied industrial
activities.'^.
-*
inflationary
spiral
gains.
we enter 1959
with
more
potential new products
in the advanced
stages of clinical
and
during
permit further achievements
integration
of
the newly
the
KILGORE
third year,
a
progress
particularly
position.
sales and earnings
expansion
made
acquired assets and the broader base
of operation should permit our com¬
pany to better cater to the world
demand for animal protein. With the
economic progress that has been made
in Europe and other areas, greater
offset many of our
Our
position
industrial
its area, for
utility is in
the
overall
in
ficult.
expect a continued strong improvement in general
conditions in 1959 and a modest increase in
As for
producing
should
public works will continue to
there is the possibility that
by
An
Company foreign
Department financing could result in a further
firming of long term rates.
Creeping inflation, it seems to me, is the greatest
single threat to our economic well being in 1959.
some
the same token, -our re¬
covery
has been more rapid.
The
arrival of 1959 finds the key eco¬
nomic barometers of this area point¬
ing upward.-
&
Treasury
could
Limited
Packers
capital* for plant and equipment
However,
LUNING
expanding its operations and went through the
early stages of absorbing its acquisition of the Armour
in 1959 over 1958. It appears
expansion, housing, and
be
strong.
In addition,
own
1959
demands are
probably show an increase
investigation
generally,,
nation
International
interest received on investments will
The net rate of
I
Arizona
1958 in
will be significantly greater in
as a group
H.
H.
total Federal
that
for
that
appears
International Packers Limited
1959 than in 1958.
our
gaining momentum at the end of 1958.
was
it
up,
take, but it would be reasonable to
income taxes paid by all of
would
enacted,
believe
-
recovery
it
to guess what form a new law,
business
The Cleveland-Northeast Ohio area expects to share
economy.
Summing
bids fair to be another year of business progress.
probable that a
adopted by the
early in 1959. There would be no point at
this time in attempting
President, The Cleveland Electric
I
entire
companies, I believe that it is highly
new
and permanent formula will be
President, Parke, Davis & Company
Illuminating Company
1958.
President,
that
judge
exceed
LINDSETEL
L.
that in spite
me
income will increase.
'
Modernization
to
over
Finally, private and public construction for the coming
will definitely keep going up. Those in the indus¬
try confidently expect this segment of the economy to
set
new
highs during 1959.
Based
on
the nearly
fantastic pace construction has set over the past 10
years this is an exciting and stimulating factor for the
1958, and probably will exceed 1957. My belief is
unemployment will lessen, and disposable personal
ceed
Congress
and.cargo.
appears
possible adverse factors busi¬
activity will most certainly ex¬
15%
of such
ness
hangar
providing
it
ever,
Lowcree
Harold
F.
operation moved into a $15,000,000 hangar designed
York
organized labor in striking
demands, etc. How¬
of
tude
in greater
K.
Macfarlane, Jr.
providing the services wanted and
deserved by millions of the state's citizens.
We have helped more people own their own homes.
We continued to be the primary source of mortgage
with holdings of more than half of
held by the major financial institu¬
tions on properties within the state.
'
Today, more than 4,375,000 people in New York State
live in homes or apartments being financed by savings
banks. In New York City, one out of every two families
lives in a home financed by a savings bank.
funds
in
the state,
the total mortgages
principal change in the mortgage portfolio during
was a net increase in mortgage holdings of
approximately $1.4 billion—over one-third more than in
1957. There was also a 20% rise in new mortgage loans
The
the
year
expansion of FHA loans.
aggregated $4.9 billion or
about 33% of the total loans outstanding. Investments
in FHA mortgages totaled $3.7 billion or 25% of the
reflecting principally an
Conventional
mortgages
total.
million or 40% of total loans.
New York State veterans now live
homes financed by savings banks.
And, as in past
VA loans amounted to $6
More
in
years,
in
than
600,000
savings banks lead all other financial institutions
ownership possible for war veterans.
making home
We
and
continued
to
help
the state's communities grow
with investments of close to $2 billion in
than 195,000 home mortgages in two counties alone
prosper,
more
—Nassau and
Suffolk.
Savings banks of New York
State were also able to
on page 48
Continued
43
The Commercial and Financial Chronicle
(444 >
Continued
make
from
ownership possible for many thousands of
families elsewhere in the nation, mainly war veterans.
This has helped New York State to remain the financial
not
in
the
past—to cooperate fully with other
banking community in efforts to bring
about legislation that would make it possible for all
types of banks to better serve the people. The savings
With
-elements of the
home
heart
have
we
as
47
page
will
banks
toward
work
modernized
a
banking
.
Thursday, January 22, 195)
.
increased income and
available, the
for
more
the prospect of better jc
will have a tendency to spend
and services, and also to use hii
consumer
both
goods
banking credit to
•'
'
'-"c ' •'
law.
.
greater degree than he has in th«
a
past. •:
■
>
■,
;
«-
the nation, but the world, and has
helped enhance the prestige and prosperity of the Em¬
pire State.
The home loans amount to approximately $6.35 billion.
The
Our investments in state and municipal bonds of more
than $450 million helped make possible more schools,
During the coming year we will act with a confidence
based on honesty, on honor and the proud record of our
roads, highways, houses of worship, and other state and
municipal improvements.
buy - a little
cautiously than they have in the past, because the:
are
being forced to rebuild a depleted inventory ant
to begin to think about the
problems that go with fur¬
ther expansion.
Perhaps by the end of 1959, the busi¬
service
nessmen
to
increase
of
only
;
than $3.5 billion
More
of assets
hold for
we
our
of savings bank
continued to provide additional services
conveniences to the people, such as low-cost life
the
over
counter
at
savings bank offices, which reached
165
of
a new
the
state's
high of close
to $360 million.
Savings banks continue to
encourage
thrift among the
.state's school children. Approximately 1,217,951 school
children hold $55.2 million in savings.1
During the year the savings banks completed a-study
capita savings in New York State. The study re¬
vealed that where there are savings banks, people save
more. In counties where there are savings banks, aver¬
of per
to the people of our state.
We shall continue
operate in the best traditions of savings banking.
STEPHEN
The
;
1959,
The
outlook
in
the
for
of service to the people.
the past year The Greenwich Savings Bank
held its 125th anniversary celebration.
The Southold
Savings Bank passed the 100 mark. At present, there
are
41
savings banks in New York State over 100
years old.' ■
In this past
on
the
more
effectively.
more
Now, what kind of
will 1959 be?
It will be our 140th year of progress and of service
to the people.
On the basis of recent years, we can
a year
forecast for '59: deposits totaling $21.4 billion; mortgage
holdings of over $16 billion; interest-dividend payments
of about $640 million.
These are modest figures that reflect the continuing
growth of savings banks in the face of handicaps imposed
upon them by the tin-lizzie State Banking Law—a law
which does not take cognizance of the people's need for
full and modern banking services of all types.
We will continue, however, to make home ownership
possible for more millions, to provide a safe and profit¬
able haven for savings, to help our state and its com¬
munities to grow and prosper.
We will do more than this. We will continue to wage
against inflation, fully conscious of our respsonsihility for leading in this vital battle, fully aware that
war
tf the forces of inflation sweep
will suffer.
almost
savings, to make the public abundantly aware
dynamic economy makes it more essential today
than ever before that capital requirements be provided
by savings, rather than by an inflationary rapid expan¬
sion of the money supply.
The savings banks of New York State also will make
every effort to oppose any change in the tax status of
savings banks in the conviction that to tamper with the
in
our
status
tax
a
of
mutual
savings banks would
savings and the saver.
on
Because
of the
fundamental difference
of commercial and mutual
only result
in
the nature
savings banks, it is fruitless
to talk about uniformity of reserve position for the two
types of institutions.
The savings banks of New York
State believe that bad debt
for
reserves
of commercial bunking institutions, rather
than tear down the reserves now permitted to mutual
savings banks.
The net ingome of mutual savings banks is apportioned
to the depositors of those banks, either
interest-dividends,
or
directly in the
indirectly in the form of
surplus and reserves which provide for the additional
protection of all depositors, present and future. No one
tout the depositor has any share in this income.
'
The
willingness
bulwark
for
of
the
economic
New York State
To
fmJ
are
people
stability.
to
The
is
our
savings
main
banks
of
the state's leading thrift institutions.
alter the tax status
of
mutual
savings banks would
injure these depositors, discourage them and others from
reduce the funds available for home building
The present banking law in New York State became
in
modification
tion
tends
1914
has
and
since
then.
undergone
Today
only piecemeal
the antiquated legisla¬
to
hamstring savings banks in carrying out
traditional service to the
public—making thrift
their
safe and profitable.
Not
17
grown from nine million in
million today—but there has been an
explo¬
sion to the suburbs.
There
But
is
a
great
savings
source
the
in
it
as
will
credit
consumer
in
was
1958.
Because
of
latter
part of 1958 the savings deposits
showed
deposits
definite
some
reces¬
of investments in this type of security.
With the
increase in employment, there also will be undoubtedly
more demands
for consumer credit for both the pur¬
in
of
durable
goods and perhaps for the increase
loaning. The facility with which the in¬
mortgage
creased
loan
demand
will
pend very much upon the
the
and
which
course
depend
very much
decide
to
be
able
to
be
will
met
de¬
that credit policy takes
course
this
credit policy may take will
what the Federal Reserve may
upon
in
do
the tightening or loosening of credit.
time, they have adopted a somewhat
precautionary policy which seems to be quite appro¬
priate to me in the light of the conditions in the na¬
'At
the
tional
present
economy.
Another
in
factor that
must be
into
taken
consideration
New communities have
need
sprung
up.
for mortgage funds—for capital.
New York State—the principal
banks in
of funds—must operate under this obsolete law.
-The savings
banks of New York State stand ready—
looking forward to the latter parts of the year 1959,
general overall inflationary spiral our economy
is
the
has
1959
year
business
to
and
more
grow
more
optimistic, - and
plants and equipment.
new
the horizon
on
in
to
-r
the
long-term view
continuing decline in
mind, still is the steady
purchasing power of the dollar and the upward
price spiral.
The fact that our dollar is now at
gives
eral
term
in
number
a
food
one
is at
for
discount
a
in
the
viewpoint, .because the
nations
of
the
It is
unit
dollar
is
the
the future
of
symbol
the currencies of
of
anywhere
decline- if
in
the
sev¬
1
well understood fact that there is
a
the
world
dollar's
that
value
However, that is in the
would
really
>
somewhat
no
be
from
downhill.
future, but
immediate outlook for 1959 throughout its entire
my mind, it will be one of good business for
banking and industry not only in this area, but
in
year
both
throughout the nation due
from
the
and
fears
this
facts
and
shall
recovery
through the
be a happy
1959
year
to
of
the
the
continuing recovery
last
recent
recession,
undoubtedly extend entirely
into 1960, and so it should
and
new year for all of us concerned, the
the businessman, and the banker.
sumer,
con¬
FREDERICK MACHLIN
taken
in
recent
months.
The
recent
elections
on
national scale and at a state level in which the
public
apparently approved the so-called "spenders," must be
viewed with something of alarm in taking a
long-range
President, The Armstrong Rubber Company
As we enter 1959, the business climate is
almost the
opposite of that existing a year ago. The upturn in the
general economy is proceeding at a rapid rate, and there
are
indications
to
rise.
that
the
level
Encouraging
of
business
will
and
significant is the fact that the liqui¬
dation
of
business inventories ap¬
to have ended.
pears
Product is
now
Gross National
running ahead of the
predictions
of most economists. 1
Thus, the outlook for the general
economy appears good, and we in
the tire
industry expect to have
excellent business year.
Our nation's automotive
67
some
million
passenger
an
fleet
of
and
cars
trucks will be called upon to deliver
than 650 billion miles of trans¬
more
portation
during 1959. For those of
in the business of pro¬
engaged
Frederick
MachJin
viding safe tire mileage to the coun¬
try's motorists, this factor, in itself,
will guarantee another good sales
year for replacement
tires. Moreover, with the prospect of a 20-25% increase
in
automotive
new
sulting
increase
vehicle
sales
in
original
tire industry is heading for
We
a
viewpoint. The recent strikes on the airlines and the
shutting down of all the newspapers in New York City
strong
continue
us
estimate
ment
and
units
over
The
be
1958
over
equipment
and
tire
the
sales,
re¬
the
record year.
a
in
that
33 million
will
units
sold,
1959 some 70.5 million replace¬
original equipment automotive tire
increase
an
of
nearly
six
million
1958.
spectacular
growth in vehicle registrations has
large, growing, and strong demand for automo¬
replacement tires. The inherent strength of this
segment of the market was vividly demonstrated by its
are
created
of
tive
just examples of a rather shocking public disregard
the simplest laws of economics. If the so-called "free
spenders"
given their way, and are allowed to go
legislation which ignores the very simple
are
passing
on
and
basic
will
accelerate.
crisis
laws
economics, the spiral in of inflation
If
will
we
bility of
of
be
this
acceleration
facing in the
continues, the next
1959
year
is the possi¬
devalution of the American dollar.
a
Due to the
the
creeping inflation over the last few years,
slowly been declining in its purchasing
and if this decline is accelerated by poor eco¬
legislation, the fixed income received by mil¬
dollar
power,
nomic
lions
of
fact,
has
citizens
our
tne
whole
each
American
week
will
economic
be
at
system
stake.
will
In
be
at
stake
because, unless private capital can be accumulated
steadily under a stable price level, eventually job cre¬
ation will be impaired, and I feel from the
long-term
viewpoint looking forward into the year of 1959 that
have reached
so-called
"spenders"
maintain
cern
ica,
of
the
climax
and
stable dollar.
a
in
the
the
battle
"savers"
This
in
between
the
the
fight
fight is vitally the
to
con¬
of every working man,
woman, and child in Amer¬
because it is a fight against the
organized
pressure
breed
However, be that as it may, I think that the shortviewpoint for the year 1959 is a favorable one
term
because
of
ventories
creating
power
the
fact
that
they
jobs,
more
for
tne
goods that he
or
In
area,
this
ability
the
will
as
business
is
increasing the in¬
have allowed to decline, and so
and so creating more purchasing
worker
picture
recovery
that
who
will then buy the various
his wife wishes to purchase. Also, the
1959 in my mind is really gocd.
for
we
have
from
the
has
been
practically
recession
predicted
of
made
1958,
and
by most of
almost
in
all
a
full
prob¬
the
analysts,
spending overall for goods and services through 1959
be
lessons
better
greater than in 1958.
Also, due to some of the
through the recession, there will be a
stability in 1959 than in the years past.
learned
price
behavior
during 1958 while many industries
industry figures will show that
recorded reversals. Final
in 1958, some 3.5 million more automotive
casings were
sold than in 1957. During the past 10
years, sales of
passenger car and truck tires to the replacement market
have grown from 49 million units to
lion. It is evident that there is
•
more
than
68
mil¬
rapidly growing market
a
replacement tires.
Since
The
Armstrong Rubber
Company sells
almost
exclusively
better
our
in the replacement market, we expect to
outstanding performance of 1958 during which
the company established new
The
n^ sales of
an
increase
$76,137,429
sales
of
of
our
company
$5,179,974,
reported
50%
sales and profit records.
and its wholly owned
$81,317,403 for the 1958 fiscal year,
our
subsidiaries totaled
for
6.8%
or
the
over
previous
net
year.
sales
When
of
the
owned
affiliate, Armstrong Tire and
Rubber Company, Natchez,
Mississippi, are included, the
combined sales totaled $100,980,558, an increase of 6.9%.
Net
income
in 1958 amounted to
$3,227,756, equal to
share, compared with $2,950,423, equal to $1.90
share, the previous year, an increase of 9.4%.
$2.08
groups.
a
favorable
for
per
per
Production
must
keep
and
pace
distribution
facilities
in
the
industry
with the growing demand for tires and
Armstrong is presently engaged in
a
multi-million dollar
expansion
and improvement program. Additional auto¬
curing presses are being installed in all our tire
plants in order to substantially increase our productive
capacity. New warehouses are being constructed at our
tire plants to provide increased storage. These improve¬
matic
ments, plus the introduction of three
new
lines
of tires
during the coming year, will continue to strengthen
position in the market.
We believe that
for
'
monetary
safe
started
distant
for the
-
world
strength in the world of today where there
is uneasiness about
eral nations.
*
of
thought. The fact that the dollar
Canada, Japan, Germany, and sev¬
European countries is not reassuring from the long-
Ameiica's
the.
form
chase
cloud
one
discount
a
be
large, if not larger in 1959,
sion, there is now definite evidence that both the com¬
mercial and savings deposits are increasing.
Although
the increased purchases of durable goods will involve
some
withdrawals of savings, and also some diversion
of income into debt repayment, it seems also that more
and more people are being attracted into the purchase
of common stocks, and this will undoubtedly cause some
flow of savings deposits into the stock market in the
overall
only has population
1914 to
seems
spend
the
on
commercial
and
mid for other investments.
effective
carry
we
save
saving,
,
' It
to
are
likely to
investment in
and on the part of business, for more funds
their activity in 1959.
consumer,
to
should be increased
all types
form of
increased.
be
continue
through
wage
for
-
creased
tax
situated
am
increasing employment, savings de¬
posits also are rising slowly but
steadily.
This expanding business
activity doubtless will mean larger
demands
both on
the
part of the
Stephen A. Mahoney
the nation all the people
We will make every effort to drive home to the people
and their representatives the imperative need for in¬
that
will
short-term
as
Where
year,
the savings banks of our state
closely to repulse the unwarranted attacks
our
industry and to refute our detractors by telling
savings bank story more positively, more widely
and
I
,
During
joined
which
that
my
the
likely that both the demand for
long-term borrowed funds and also
Savings
Bank will observe 125 years
.
in
area
ties
in the City of
New York—the state's oldest, will be 140 years old.
The Seamen's Bank for Savings will be 130 and both
the Schenectady Savings Bank and the Bowery Savings
Bank
MAHONEY
banking and industry for 1959 seems to be quite
favorable. The demand for goods that are manufactured
in this area apparently seems to be increasing, and
while we have had some unemploy¬
ment, this is now being corrected,
and will probably be better in the
year to come.
Because of this in¬
crease
in business activity and the
decrease in unemployment, it seems
that the demand for banking facili-
savings per persons are $1,646. In counties without
savings banks, per capita savings averaged only $531.
The average savings bank account in New York State
is $1,777.
v
•
v;-'
r'X V-r./',
During
A.
to
both
age
•
where they work and live.
near
will
feel
less
President, The Park National Bank of Holyokc, Mass.
we
sold
insurance,
facilities
further
also
The
positors have been invested in Federal securities, helping
Treasury.
and
are
de¬
to finance the needs of the
Meanwhile
I
hopeful that legislation will be
possible for more people throughout
New York State to have the advantages and convenience
savings banks
enacted to make it
the
tire
our
1959 represents a year
industry
because
of
of opportunity
improvement in the
general economy and rising business levels. We, at Arm-
"Vdlume 189
Number 5814
.1.
.
strong, intend to capitalize on these conditions by virtue
of the favorable
position we have achieved in the
industry.
¥
'
.
JOSEPH
4
.Our company
experienced a gradual and steady im¬
provement in sales and earnings starting the middle of
1058. We expect this improvement to continue during
1959—possibly at
accelerated rate.
an
Our business, of
course, is largely dependent upon
the economic welfare of our custom¬
The
ers.
major portion of National
and
building
industry,
maintenance
the automotive
equally grave sin
the
of underpro¬
industry, the petrol¬
industry, the railroads, and the
It is
chemicals and plastics industry.
Perhaps it is too early to see a trend, but there are
indications that dealer margins have been advanc¬
recommended list prices must be
by the manufacturer so as to provide an
adequate profit margin for the low-volume dealer. The
high-volume dealer will be able to sell at less and still
make a profit.
However, putting some meat on cut-tothe-bone selling prices, it seems to me, will not only
help the dealer's profit margin, but help restore cus¬
tomer confidence in appliance pricing.
National
they?
can
I
believe
there
is
a
certain
danger to
the dealer
in
railroads)
forming the functions that traditionally have been allo¬
cated to the retailer to perform. It is axiomatic in our
petroleum,
depressed; — perhaps
even to a greater extent than gen¬
eral business conditions. Since these
rather
ever
in
increase
their
rate
of
operations
in
We expect to participate in this increase,
National Lead's 1958 sales* 4o the building and build¬
ing maintenance industry, and to those customers who
produce chemicals and plasties, were not much affected
by the decline in general "business conditions.
These
consuming industries, less cyclical than many others,
have experienced some improvement in the last few
months. It is expected that this gradual rate of improve¬
1959.
v
ment will be maintained
profit must con¬
sold. To what¬
his
extent the retailer defaults the performance of
functions to the manufacturer, he must also lose
Joseph A. Martino
them, we anticipate a
marked
rather
a
tribute to the value of the product being
particular industries are generally
considered cyclical in nature, and
some improvement has already
been noted in
that whoever would reap
economy
since
during 1959.
his inde¬
pendence and freedom of action to that degree.
How¬
ever, there are areas where the manufacturer can and
should provide assistance to the dealer.
Other than
providing a quality product, as service-free as it can be,
priced to allow an adequate margin, the most important
assistance the manufacturer can render is perhaps in the
area of training.
It is up to the manufacturer to train
the dealer thoroughly in the sales features and servicing
of his products. It also behooves the dealer to take every
advantage of such training offered.
We believe the place to start with service problems is
at the time of manufacture. As specialists, our goal is to
conditions in 1958, National
Lead Company put more than ordinary emphasis on
streamlining its operations for maximum efficiency. Sub¬
stantial savings were made by trimming expenses wnere-
produce a product that will need no major repair for 10
years. This is the best way to solve the service problem;
build a product that does not need to be serviced. We
haven't accomplished this as yet, but we are well on
possible. We anticipate that 1959 profit will be
favorably influenced by these economies. The advan¬
tage of many of the efficiencies made last year can be
retained in full or in part 111 1959 when increased busi¬
the way.
economic
Recognizing
ever
ness activity is expected.
industries mentioned above,
National Lead operates a number of plants owned by the
Atomic Energy Commission. In 1958, to consolidate our
Various activities in this field, a new Nuclear Metals
Division was created. This Division supervises the oper¬
ations of government-owned A.E.C. facilities at Fernald,
Ohio; Winchester, Massachusetts, and Monticello, Utah,
and operates its own fuel element plant at Albany, N. Y.
National Lead has extensive interests abroad.
It has a
number of subsidiaries in Europe, Latin America, and
Australia.
There is good reason to believe that these
will
operations
at
grow
a
somewhat faster rate
than
Many of these subsidiaries were un¬
domestic business.
touched by the general fall-off in business which took
place in the United States in 1958. Furthermore, a num¬
of them
ber
are
located
in
areas
which
under-industrialized and
which, therefore,
potential for rapid growth. '
are
relatively
seems
to have
National Lead
is constantly investigating new oppor¬
growth. Its research on the die-casting of
aluminum engine blocks is well advanced. A joint effort
With Republic Steel Corporation aimed at the recovery
of iron from a wide variety of ores has progressed be¬
tunities
for
yond the testing stage. Other projects aimed at tech¬
nological advances in chemistry, metallurgy and engi¬
neering are at various stages of development. While
eventual commercialization of some of these projects
seems assured, the effect on 1959 sales and earnings is,
of course,
1
unpredictable at this time.
Because of the status of its existing
new
new
products, and its
opportunities, National Lead Company enters the
year with confidence in its future.
FRED
MAYTAG II
President, The Maytag Company
The
home
ahead from
an
in
the year
somewhat
appliance
sales
industry,
of
'
surging
than
see
approximately 8%
just ended. We expect
more
now
lows earlier this year, should
recession
increase
over
laundry
those
of
our
during 1959
sales to increase
the
nize
the
situation
tion
demand,
thus
years.
had
to
as
soon
it
and
is
inconceivable,
with
period increased to
bonding
against
ning
of the
1958
year,
for
the
wire
volume
and
the
one
lowering
products, which were at
point at the end of
into
held at the begin¬
were
be
a
disappointing;
industry.
The decline in.
the price levels of its
very low
proved
to
cable
and
a
of
1957, continued
1958.
The decline in volume
due in
which
liquidation and realignment of
inventories
sumers'
early
con¬
and
wire
of
cable products continued
some
was
considerable part to the
some
during the
part of 1958, but there was
improvement in demand be¬
ginning in the second quarter which
continued
to
limited
a
balance
the
the
of
degree over
the
For
year.
whole the physical volume
business, at least insofar as our
company
was
concerned,
did not
J. R. MacDoiiald
compare too unfavorably with 1957,
but this might not hold true with
*
respect to companies whose business was confined to
specialized lines of product and limited consumer out¬
year as a
of
This
lets.
was
not the case,
however,
as concerns
dollar
volume and profits.
Although perhaps not generally recognized, the wire
cable industry is made up of a substantial number
and
of
or
companies—some small which produce a single Utem
a
few simple products and others relatively I irge
diversified product lines. Dur¬
which produce many and
ing the extended period of shortages which preceded the
1957 recession, the industry built up a productive capac¬
ity in excess of that required to satisfy the need for
its products. Hence, under the structure of the industry
which I have mentioned, when demand falls off the
business which
extremely
so
normally is highly competitive becomes-
and the price structure rapidly deteriorates*
This condition brought about
volume
the
dollar
of
the substantial decline irv
took place in 1958:
which
sales
coupled with
increases in
both
labor
degree
activity
of
hence
and
to
a
considerable
the economic position of the wire and cable
industry, is largely dependent upon the state of the
economy of the country generally. Its products are used
in
practically every branch of industry
and commercial construction;
industrial
period. The change now al¬
lows it to remain in bond for 20 years
General Cable Corporation
Contrary to the hopes which
The
as
eight years old. Authoritative sources
say that whiskey
reaches its peak
quality in eight years of aging so
there is a valid reason for storing it
for this
..
degree
it reaches eight
Under the old law whiskey
be tax paid when it became
whiskey
Thomas F.
McCarthy
the
20 years,
there would be
danger of a peak load reaching the force-out period
at the same time. This move should help stabilize the
any
home
—
all
and
types
of
appliances; automobiles; machinery, motors and power
tools; railroads; mining; electronics; the rapidly develop¬
ing missile program; etc., etc. Two of the largest outlets
for its products are the electric power utility industry
and the communications industry, the activity in which,
is dependent to a
considerable extent upon the activity
which I have mentioned*
in the other fields of industry
Although subject in
some
cases
to certain qualifica¬
industry and I am sure we well all benefit by it. A great
deal of credit is due one of the big distillers who worked
tions, it appears to be the prevalent opinion of business
leaders and economists, generally that the overall econ¬
hard toward this end.
fantastically high tax of $10.50 per gallon is still
with us. Because of the high defense spending, and re¬
in
very
This
gardless of any real or fancied economy program on the
part of the Administration or Congress, there appears to
be little chance of it being reduced during 1959. It is this
$10.50 per gallon tax, or over seven times the cost of
production, which has caused the steady and uninter¬
rupted rise in bootlegging over the last 10 years. Boot¬
legging is still growing and is taking an estimated 20%
to 30% bite out of the total amount of liquor sold The
bootlegger is still cheating the government and the tax¬
payer out of a half billion dollars a year.
It is difficult to understand why the Federal
most
recapture a substantial portion of
Govern¬
this enormous
popular type of alcoholic beverage.
Sales of
to have leveled off. The indications are
whisky will again mark up an increase
appear
Scotch
lower
guarding
1959 iar
signs of a reversal of the trend began to appear and some
improvement has continued since that time.
because the $10.50 per gal¬
lon will not have to be paid on all
pressure
brands has been con¬
We
leveled off. At this writing
that the devaluation of the franc will
the price of champagne or other; French products.
believe that the industry's policy of promoting
moderation, is becoming more
and more effective.
Our
public relations, research and educational programs aim
at achieving true temperance as against overindulgence
on the one hand and total abstinence on the other.
As
a
consequence,
the vast majority of Americans have
the consumption of alcoholic bev¬
erages and it is no longer considered smart to drink too
much or too often, as was the case before repeal. Today
a
marked gain in activity
and looking, forward
to a continuation of the trend toward a better price
structure in the industry, I venture to predict that 1959*
will show a slow but steady improvement over 1953.
omy
of the country will reflect
1959.
these
Under
a
conditions
JOHN E.
McKEEN
President and Chairman of the Board,
Chas. Pfizer
U.
S.
mistic
&
Co., Inc.
pharmaceutical firms have
about
rising
sales
but
the
\
entered 1959 opti¬
increase in profit
margins may not be in the same proportion because of
stiff competition and higher operating costs. Among the
factors expected to spur the growth of
..
pharmaceutical sales are the expand¬
ing world population with increased
purchasing power, new research dis¬
coveries, and the wider use of chem¬
icals in agriculture and industry.
Last
year,
drug firms reported
increased sales, although some seg¬
ments of U. S. industry were hit by
the recession. For example, Pfizer's
1958 sales
about
5%
reached an all
over
our
time high,
1957
total
of
Pfizer's goal is "260 by
60," $260 million in sales by 1960.
However, increased sales will be
the result of more goods sold—not
$207 million.
Cognac sales seem to have
zation is able to respond, almost from week to week, to
right and
are
and other
the adjust¬
ment of selling prices, resulted in considerably reduced
earnings for the year. The deterioration in prices con¬
tinued until around the middle of the year when some
it is not expected
industry as a whole.
If manufacturers generally are
setting production levels on this basis, the danger of
overproduction still exists. Maytag's production organi¬
nation's history.
our
1958, the wine and spirits industry
costs which could not be compensated for by
siderably alleviated.
1958, and most, we included, are fore¬
greater increase in their own sales than for the
than
better year
and,
bonding period
although the shortage in various
sales year than
of
20-year
The adop¬
period from eight to 20 years relieves
the
industry of
serious economic
Fred
levels
the
of
vodka
Maytag 11
warning,
if
heeded
promptly,
to
change production levels. Everyone
in the industry is predicting that 1959 will be a better
fluctuating
as
by the Treasury Department was, in
my opinion, a realistic and progres¬
sive step.
Changing the force-out
that
the industry a few
result of overproduc¬
tion. Inventory build-ups give ample
year
sub¬
indicated. Actually, the industry weathered
the recession somewhat better than expected.
the
in it to recog¬
early and take
plagued
a
last
consumption of straight whiskies will probably
but will not overtake spirit
blends in the foreseeable future.
Spirit blends are still
years ago as a
casting
these columns
in
made
The
appropriate action to prevent a re¬
currence of the unhealthy conditions
which
I
increase somewhat further,
responsibility of the in¬
everyone
stantially
and thus
sales volume.
the
predictions
pretty obvious at the time and worked out
were
loss in revenue.
coinoperated commercial washer and
dryer field is expected to add to 1959
is
McCarthy
the logic of investing another few
million dollars to enlarge the group of enforcement men
Also, Maytag's entry into the
It
f.
ment has not yet seen
industry as a whole during 1959. We
anticipate continuing to increase our
share of market, as we did in 1958.
dustry and
thomas
President, Austin, Nichols & Co.
The
In addition to serving the
,
previous time in
Nevertheless, if the economists
If they don't move ahead in good times, when
margins?
looking to the manufacturer for too much help in per¬
(automotive,
at any
ing somewhat, especially in those areas where they have
been paper-thin for the past few years.
It seems to m.e ' should have a better year also.
that if times are getting better and if margins have been
J. R. MacDONALD
too lean because of recession pressures, i^n't this the
time for dealers to move in the direction of healthier
Chairman of the Board and President,
noteworthy that in 1958 conditions
ip at least three of these industries
were
has not increased and it i»
Per capita consumption
tion.
apparent that more people are drinking less today than
established
Lead's business goes to the building
eum
or
duction.
a
President, National Lead Company
fit
overproduction
some
MARTINO
A.
49
(445)
The Commercial and Financial Chronicle
sensible approach to
60,000,000 adults consume alcoholic beverages
in modera¬
higher prices—because highly com¬
John E. McKeen
petitive conditions within the industry rule out any likelihood of major price rises. .Thecost of raw materials, transportation, labor, and con¬
struction will continue to rise this year, thus creating a
tough "price-cost" squeeze
for producers and
indirectly
upping the cost of the industry's expansion program.?.
Investment in new plant facilities and research labora-
Continued
on
page
5(k
50
The Commercial and Financial Chronicle
(446)
level
49
Continued jrom page
orobably be stepped up this year by drug and
the higher cost of construction.
U. S. pharmaceutical and chemical com¬
panies will continue their programs of spending large
sums
of money on research and product development.
Pfizer last year spent $12 million in this area and this
tories will
chemical firms despite
This
necessary
are
pharmaceutical producers are to continue to make
improved' pharmaceuticals available to the
medical profession.
For example, we at Pfizer spent
more than $1 million before we could market just one
drug: Diabinese, our company's new oral
drug for
diabetes.
This was
the cost for the laboratory and
clinical
tests involving one million
patient days of
therapy for several thousand diabetic patients in all
parts of the world.
•
'
V
Equally important for the long run will be develop¬
ments outside the industry's U. S. markets.
The year
if the
and
new
1959 will
crucial
be another
in the battle for eco¬
one
political supremacy between the free world
Increasingly free currencies and higher
standards of living in the western world should not
lull American industry into a false sense of security.
nomic and
Russia.
and
Soviet trade warfare, which includes the export of phar¬
maceutical products even though Russia and countries
within the Soviet bloc have insufficient medicinal prod¬
Bank
ments.
ARTHUR
Little
we
move
Rock, Ark.
further into
the
that
of
cost
will
the
be
year
of
further recovery
a
and
we can have prosperity if sanity
prevails, but if we are to stay out
of trouble, the national budget must
balanced
halted.
to
the
make
earnings
build
to
capital to keep
up
National Tea
for
look
We
stable food
a
An
inflation
and
unstable
dollar,
lower
the
as
yeaiv
Co.
From
the
and anti-trust laws can
try and business in line.
Competition
keep indus¬
to be
week of
Other unfavorable
factors, present,
Arthur E. McLean
endangering our economic recovery,
are
a
growing belief that stocks, real estate, or other
tangibles are the only things offering financial security.
Stock market and other
actively traded stocks have in
been bid up to unrealistic prices measured
former standard of value. New promotional stock
offerings, highly speculative and optimistically priced,
to say the
least, are appearing in increasingly large num¬
cases
any
bers, and stocks of these companies having impressively
selected names are being
heavily bought by in experi¬
enced investors,
hopeful that they will become wealthy
in the years to come.
Unhealthy speculation is again
with us, call it investment if
you like.
these
me,
threat to
an
danger signals
are
on
horizon,
our
economic recovery in the months ahead.
addition to being
optimistic,
we
can
think, and listen.
a
In
well afford to look,
over
that
When
H.
McNamara
V.
1958.
These
the
are
results
ultimate objective is to make National Tea
our
not
of
new
year
ADRIAN O. McLELLAN
Bank
& Trust
Co.,
Fargo, North Dakota
Business in
year.
The
has been
generally good this past
dependent primarily on agriculture,
our area
is
area
and
bumper crops prevailed in
River Valley.
Livestock prices
better
than
most
areas
of
holding
are
the
Red
much
up
was
expected. As a re¬
farmers and businessmen
to
in
reducing
or
the
same
time
deposits.
As
loo.
banks
1959
Not
in
in
this
a
only
borrowers'
of
ths
area
situation, most
going into
are
healthy
very
do the
show
condition.
majority
of
improved
ments, but the banks also have
funds
available
for
loans,
our
state¬
if
more
in
•
they
not
volume
be commensurate
with
is
'
O.
the
concerned,
sales
rise.
I
am
it will be about the
Automobile
and
that
an
farm
machinery sales
appear
to
be
improving over 1958. Both home and industrial building
show strong indications of
exceeding last year, and
public
8
high
road
and
level.
highway construction will
Land
prices
are
at
a
remain
relatively
at
high
gence in
to
assure
the
1959,
that the industry
can
on
;
consumers
in
profit without volume sales.
towards
smaller,. "bantanf
shoppir|g
make
a
the future.
By
a
fair profit I
our
well
as
our
our
own, because we have
neighbors must be successful
:
•
-
looking forward with great optimism
many
of the prophets of gloom and
industry has gained too muob
to stop or even pause in the year ahead.
Consumers have regained their confidence in the
econ¬
and
,
are
■
is
ready to
spend
optimistic
an
and
outlook
have
R.
for
the
money
to
1959.
MEGOWEN
President, Owens-Illinois Glass Company
.
i
Shipments of glass bottles and jars in 1959 will exceed
the normal yearly increase with a
more than 5%
growth
over
the
20
with
billion
The
years.
luxuries
units
glass
shipped
each
of
the
past
and
alike,
the
in
container, carrier of staples
kept pace in
record shipments of
1958
p'
1957
despite a dipping economy for a
major portion of the year. With the
long-range growth trend expected to
glass container shipments
continue,
should
^xceed
1975.
,
The
under
billion
45
•
units
packaging
revolution
in the U. S.. will
all
the
types
self-service
of
by
*
way
with
pace
in
trend
to
still
keep
self-service
retailing.
The
new
convenience
packaging
moving in fast to revamp
whole
departments,
entire
stores,
complete chains and whole distribu¬
trends
tion
are
systems.
The packaging industry is truly a
Carl
R.
Megowen
;
business, phenomenon.-A look at shipment totals of any
reveals that each rtiows an
growth of about 5% annually.
increase for glass containers, about tVz%
credited to population increase, the same percentage to
increased buying power, and the remaining 2% to new
major
fair profit
approximately 1V2 % cf retail sales, which in
concerned.
as
1958, contrary to
two
earnings for
continued steady growth and improved facili¬
ties for the
mean
industry gets its report
so
a
trend
superettes
CARL
1958, and finds that the tremendous increase in the food
business brought little rewards, if any, in more profit,
operators might merchandise with a little more intelli¬
demand for 1959, it does
appear that
same as 1958.
after
the
likewise looking at new
proposed centers
competitive angle, to be reasonably sure the
center.
are
Ours
hopeful
needed.
While it is too early to
accurate survey of the loan
the
These
in
spend.
profits will
get
McLellan
the
or
doom. The super market
omy
to be without prob¬
are
Adrian
to
store.
food
are
the
momentum
running from 1% to l3/->% of sales. We have
always believed that good, clean, fair competition stops
at the cost line, and from there on it is a competition of
merchandising wits and operating policy gained after
years of experience. It appears now that while 1958 will
be reported as an all time record high in the food busi¬
sales
of
lot of comment
and con¬
fidence for another record
year in 1959. We in the food
industry set the1 pattern for leadership of all business
We do question, however, some of the
as
We
We
ready for a
good tough battle as long as all the cards are on the
table, and competition conducts itself in a "forthright
insofar
a
there is sufficient population in the
trading
proposed centers to support the entire project,
sure
of the
this kind of competition, and we're always
ness
operators,
some
type
years vvithoyt
competitive 'centers growing up in the same
trading area,
creating obsolescence in advance of the anticipated life
rently
result
a
by
location is not' too close to another
shopping center, and
that it is'likely to endure for a number of
micks and tricks of the trade, which narrow the already
slim margins of the chain food business, which are cur¬
tion
a
to
becoming exceedingly cautious in this direction
of the
from
Co.
reduc¬
eliminating indebted¬
Most banks have had
in loans
ness.
markets necessary
super
return,
found, to be Successful,
practices
that have been creeping in to the food industry during
the last year or so, which are growing to the detriment
of
the
super
market industry as a whole.
I
refer
primarily to selling below cost as well as other gim¬
have been able to show good
progress
to
other retail stores
ac¬
outstanding, while at
showing increased
sult, both
of
superette
or
consumer-is
are
be
area
biggest problem that we will face in the year
ahead will be intensified competition. Of course, you
sometimes wonder how intense competition can become,
but there is always room for more and more competitive
ideas, which must be appraised for their value, and
either ignored or combatted. We at National thrive on
manner.
nation's food chains have fairly
size
.
expect the
recent
the
the
markets
the
We
lems. Our
President, Merchants National
the
on
size
as
chain, and while we may not reach
this objective in 1959, our 60th Anniversary Year, I am
still hopeful that we will come mighty close to this
primary goal, which we have set for our company.
do
in
150 failures of shopping
centers, by."failures I
shopping centers that have not paid off to their
investors, although they might not be failures insofar
billion dollar food
We
marketing
super
mean
suppliers, and aggressive hard work in merchandising
by our entire organization. I have said for some time,
that
of
about
complished through intelligent operation of our entire
management team, fair play and good dealing with our
a
kids"
quife
look back and consider that our total sales
change at National Tea
Co., were less than $100 million, it is quite interesting to
draw the comparison between total sales for that year
for
so-
non-foods lines.
obvious, when you review plans already under way
ifh
America's major cities. Shopping centers are
growing
fast, perhaps too fast in some areas. There have beesn
for bur company and the industry in
sales
see
the
is the growth of
centers throughout the nation. We believe that
shoppirfg
centers will continue to grow, and that becomes
you
increased
agreed
Contrary
for 1944, before the management
and
"whiz
accomodate
super
total gain of approximately $110 million.
a
other
their overhead, and show
from
neighboring states
1958. At this writing, the last
that our total
million. This
increase for the year will be abdut 15%
our
in
grocery trade circles, but as yet we have not seen any
successful operations of this
kind, and I, for one, am
not inclined to believe that the
superettes can absorb
1958 calendar year, it appears
1957 for
would like to
interested
soft goods in the
or
"bantam" stores have received
sales for 1958 will be approximately $790
means
too
business subjugated to non-food
hardware, soft goods, gimmicks and all
as.
"bantam"
our
our
goods
discussion
record year for
our
become
we
customers, stores in the neighbor¬
hood of 15,000 to 18,000 square
feet, there is considerable
1959 will be our 60th Anniversary Year, and
have some mightly tough figures to shoot at
surpass
en¬
is
best
record year of 1958, our organization is
keyed to doing the selling and merchandising job, and
I am confident that we can again come through with
about a' 10% to 15% increase over what is winding up
to
to force constantly
higher wages when there is no in¬
productivity.
we
year
before
hard
well
Co. believe' that 1959 will
best
general.
while
the strike weapon
creased
the
least
at
have
facilities to provide
our
lot of other departments I
a
I Now that most of the
sales standpoint we at Na¬
a
tional Ten
be
as
do not
we
We
years.
Southeastern section.
the
in
well
as
concerned.
are
stores and expanded
items, such
commodities
important
market, but
super
'■ ''Z1
riori^
the growth of
on
growth in this department,
operations
our
depart¬
\
not like to sbe pur food
applied to foods, by re¬
of living as
food
continue to
becoming
or
frozen
primarily a food business, and while we must
give attention towards scrutinizing all pos¬
sibilities for increased sales and profits, I for one would
year
Southeastern
the
are
Ours
either holding the line
proceeds. Coffee
much
too
as
our
called
the
sure
am
15,000 to 18,000 "square feet of store facilities, with ample
parking for the convenience of the customers. This is
naturally going to accomodate and encourage some en¬
larged and expanding departments, but in our opinion
prices are weak, and further weak¬
ness in this important commodity is
from
in'the modern
improved
result in meat prices
con¬
a
for
larged
ahead, which should be good news for the consumers as
we
start out in 1959. Larger supplies of meat should
Florida
be
must
items
insofar
with loan
price outlook in
the
in
•'
look
McNAMARA
President,
interested
There has bedn much comment
there
V.
become
to
food
demand.
H.
I
as
food
more
necessary
pace
hopeful,
am
ments.
some
adjustments to assure proper financial service to the
community they serve while still producing reasonable
return
to stockholders, while retaining
a
portion of
other
stantly increasing cost of living, with
its destruction of the peoples sav¬
ings can never bring a permanent
prosperity or economic security to
this or any other nation. A way must
be found to keep labor from using
To
alert
most
I
and
space,
others in the business, of further increases k\
sales to justify our belief in the future of
important commodity. I am sure that the big¬
gest upsurge of frozen food sales will come from the'
convenience food items, such as prepared dinners, frozen
pies, gourmet type items, and other convenience pre¬
pared foods, that will bring additional built-in mdid
service to the homemaker, encouraging her more and
making it difficult for banks to build up
their capital structures out of earnings.
Under these
conditions, those banks with the more capable manage¬
ment
focjd
foqd
frozen
this very
sulting in lower prices for important
fresh fruit and vegetable items as
well as frozen concentrated juice and
to point to
many
for
frozen
the
So far,
of heavy investment in both equip¬
one
floor
and
many
frozen
time to come,
shipments
new
a
by
banking
in
continue
will
situation
this
growing population there is and and will
increasing demand for both goods and services
seem
With
be
ment
are
the rate
or
in
investment
our
selling facilities.
and
picture has been
states should further reduce the cost
omy.
an
handling
earnings.
the increase in gross
money,
with
commensurate
of interest paid by
borrowers, has remained more stationary and has been
less inflationary during the past quarter of a century
than the cost of almost any other product or commodity
that might be mentioned. Many borrowers are borrowing
money at the same or maybe even a lesser rate than
they paid many years ago. However, in this same period,
many banks have doubled or tripled the rate that they
pay to their customers for time money. It would appear
The
1959, all
of the econ¬
signs
be
appraising the individual departments of todajfs
super markets, we are looking for continued improve¬
ment
in the important
frozen food department mofe
interest on
inflationary
causing costs of operation to go up at a
are
pressures
opera¬
-I '
<
In
little if any
very
Thursday, January 22, 1939
.
tors, shareholders and consumers alike.
anticipated. The hope that last year's
freezing temperatures in the South
will not be repeated this year to the
detriment
of
fruit
and
vegetable
E. McLEAN
President, The Commercial National Bank,
As
will perhaps show
earnings
.
opinion, would be fair to everybody, competition,
farmers continue
as
improvement. Banks are paying out more
than they have in the past, and
time money
ucts for their own
people, will continue to attract under¬
developed and uncommitted nations to the Soviet system.
More and more active participation by U. S. private
industry to aid in the economic growth of other countries
will be essential to avoid handing victory to the Soviet
by default. For maximum effectiveness, this participa¬
tion must have the full support of additional government
measures beyond those now available to help the export
of American techniques, knowhow and capital invest¬
so
reman
modern machinery.
more
faster rate than
plan to spend even more.
larger expenditures on research
These
perhaps
enlarge their farm units in an effort to make
them more economical through the use of larger and
year,
year we
will
and
seek to
to
.
.
packaging material
average
Of
this
Volume
Number
5814
.
The Commercial and Financial Chronicle
.
.
developments in the continuing
best possible package i'or
the
Among
program to produce
given product.
any
developments
during
1958
RICHARD
If is
just
These
strong
as
new
older bottle.
the
as
bottles
but
Our business is
nologies
shared
are
I think
the
commercial
for
container will continue to
of
number
a
foreseeable
For
reasons.
search
shortage of the basic
day.
v/-v
-■
"Glass* main appeal
to the food packer, the bottler
or
the drug, cosmetic or chemical concern,, however, is
simply that fhe public likes to buy in glass. Consumers
can see what
they buy and can tell at a glance when
they need
to buy
Glass
more.
is
good-looking, adapt¬
able, and is a good salesman of the products it takes to
market.
Further, the consumer knows glass is chemi¬
cally inert and that food and other products can be
taken with confidence
of
in
terms
bottle
any
grow
K. S.
Morse
broader growth in many
even
nologies.
We believe that
equipment,
volume
Nebraska's
was
tempo
President,
"The
airborne
Lear,
equipment
Incorporated
industry
X;
our
have
of these
new
tech¬
H.
works
to
some years
is
tome.
Military fiscal experts reportedly anticipate the
same
slight increase in total expendi¬
tures.
The
complexity of missiles,
space
vehicles, and hypersonic air¬
planes portends a larger percentage
or
a
the
of
unit
cost
sophisticated
going
into
controls
and
They will be busy integrating
these and making them productive.
Here again, volume should increase
but profits will be caught in adjust¬
ment expenditures.
highly
instru¬
-
costs
these
of
causing
tional
craft
budget line
While
craft,
..
well
in
as
total
A
advanced projects are
cutbacks
in
more
order
much
to
hold
spacecraft,
M.
Mock
missiles
of
Mosler, Jr.
may
modern
and
more
functional
design in the general area of protective housing for
individual
comparatively
many
the
record-keeping systems.
new
'•
"Our industry has been one of the beneficiaries of the
With the increase in suburban
movement to the suburbs.
residential
most of the manned
airplanes scheduled to continue in
branch
production and for
number of missiles.
to
a
Also,
we
have
in advanced development a three-gyro platform for a
high-priority anti-missile missile. Thus, Lear has a diver¬
sity of both products and customers which lessen its de¬
pendence on any one major project. Indicating its flex¬
ibility to change with the times, only about 10% of
the company
military products
were
for other
aircraft at the beginning of 1958, while cur¬
rently 50% is for such end uses as missiles, drones, and
helicopters.
business
since
tractors
climate
the
has
improved
of
autumn
1957
for
when
defense
many
shopping
universal
introduced
indicates
con¬
but
In
sales
summation, I
see
and introduction of
civilian
aircraft
market,
greater; speeds
equally
market and
instruments
cently
we
of
for
radio
of
and
business
communications
aircraft, and
have expanded this product line into the
mercial aircraft field.
ance
navigation and
private
our
skills
-The year-end
volume.
a
in
ago
was
good sales volume for 1959 with
products.
new
other
key personnel.
in
the
nation.
in prospect.
a
.
.
less spectacu¬
.
attested
.
to
Bank debits in Omaha
6%.
.
.
the value of
.
more
manu¬
For the fourth straight
the world's
as
economic
were
largest livestock
cumu¬
But Nebraska's agricultural economy is
strong financial
On-the-farm
years.
are
large,
ranchers
position
result
a
of
feed
continuation
a
favorable
should
as
inventories
with
and
prices and
weather,
remain
the
of
good
good
of
livestock
livestock
state's
prosperous
two
and
farmers
with
strong
and
pur¬
chasing power.
So
1959
should be
state's economy
culture
with
even
good year for Nebraska. But the
a
remains linked to the fortunes of agri¬
increasing industrial development, and
business will react
accordingly in 1959.
:"4
HENRY
J.
MUESSEN
President and Chairman of the Board, Piel Bros.,
The coming year for business generally should be one
which will be transitional in nature and possibilities are
strong for some stabilization slightly above present
levels.
Certainly qualified optimism is in prospect
record-high consumer in-
expected
level is balanced by
come
the
as an
\
'
ever-
present spectre of inflation and ris¬
ing costs. The beer industry being
closely identified with the general
economy
should
parallel
it
in
a
rather
In
steady, measured growth.
years,
however, while
recent
the
trend
has
been
for
business in
general
upward, the brewing in¬
dustry has been faced with a squeeze
on
profits and a drop in per-capita
consumption that has resulted in
fewer
will
and
fewer
continue
to
breweries.
see
the
1959
demise
of
those in the industry
unequipped to
withstand
the
fierce
competition,
unrealistic labor demands
this
attrition.
A
factor
can
H. J. Muessen
hasten
contributing
per-capita consumption
has
the
to
decline
in
large number of
been the
people just below their majority
and
increased
longevity in the older generation.
It is
an
established fact that the wellspring of economic
growth in the brewing industry lies mainly in th« 21 to
age
ward
trend
this large group of
As
group.
near
the per-capita
reverse
also
and
younger
people
future, the weight of their numbers
to
add
the
consumption down¬
number
of
beer
con¬
an
all-time
vious record in
unusal if 1959
spectacular advances, but the general
two
more
years
abundant
of
as
choking
feed
drouth.
coupled with
•
an
On
.
the
.
Alert, progressive
on
a
creative
par¬
hard-hitting marketing
more consumers
for our prod¬
|
profit margins in industry generally may ease
to maintain
The
profits for .most brewers.
coming
year
ganizations will be
for
future
new
for this firm and other sound
one
where
economic
or¬
momentum is gathered
attainments.
The
history
of
Piel Bros, has been
Moser
oni
Nothing I
Ellsworth
front, Nebraska
kept looking for the recession in 1958
but monthly indicators were consistently above year
.
cure-all.
control, together with increased sales, will be necessary
a
upward price trend.
business
a
upward slightly, this will not be true for most brewers.
Reflecting Nebraska's flourishing aggrieulture, farm income zoomed to
the highest peak in years.
the rapidly changing but gradually growing market for
prove
Indeed, increased efficiency, modernization, and tighter
substantial increase in livestock pro¬
duction and feeding, which has been
employment among
will
emphasis
While
The
sparked
it
ucts.
they followed
supplies
assume
leadership is needed in the brewing industry with
concept that will develop
high, topping the pre¬
1957 by 19%. The two
dramatic
to
ticular
fabulous crop years of 1957 and 1958
were
Despite this "windfall" it would be the height of folly
relative to any
It would be
ahead.
Agriculture led the upward surge
1958.
Nebraska crop production
set
summarize, Lear has the industry position and the
airborne equipment.
and
prosperity of 1958 should continue in
diversification of products and customers to advance in
.
.
favorably affecting 1958 farm income will
mature in the
the calendar year
major facilities modern¬
•
state
would register such
about $72 million, up some¬
excess of 1958 sales
a
indicators
significant
Looking ahead, it is unlikely that the several
lative factors
49
for 1958 will surpass 1957 and look good
and well in
We have undertaken
spending
sumers.
addition, wide military accept¬
automatic flight controls, such as
backlog
year
construction
By almost every measure, Nebraska's economic record
In
ization program and have increased
To
Its early acceptance
ahead.
President, The United States National Bank of
Omaha, Nebraska
autopilots, has provided a basis for the sale of automatic
pilots and stability augmenters for private and transport
airplanes. For example, Lear autopilots are installed
on the Sud Caravelle
jet airliner, the Lockheed JetStar
transport, and on Piedmont Airlines' fleet.of Fairchild
F-27 turbo-prop airliners.
'
what from
Recently after a
and engineering analysis, we
costs, integration of business acquisitions,
re¬
com¬
to
meat-packing center.
should act to
and
of the
airways necessitate the
introduction of highly refined navigation and commu¬
nication equipment. Since 1935 Lear has been a
leading
manufacturer
op¬
ELLSWORTH MOSER
crowded conditions
and
by growth fac¬
'
Omaha continued
year,
profits down slightly from the combined effects of in¬
carefully planned, and thus
provide the climate for orderly operations by de¬
further
factured products up over
young
were
fense contractors.
the
survey
redesigned window.
a
increased
creased labor
In
justifies
bank department by increasing
popularity of the drive-in window.
comprehensive field
defense program seems more
more
that
parking problem has also accrued
to the advantage of our
severely hit by the government austerity program, which
came so suddenly that the
companies had little time to
readjust their organizations. The government's future
will
circumstance
1959—a
bank sales division.
our
attendant
the
add
area.
than 6% higher in 1958 than 1957
has come the need for
We look for this bank building trend
banking.
in
areas
The steady increase in automobile ownership with the
manned
.The
and
continue
timism in
than
uses
utilities,' hospitals,
all created
...
Gains for other business
lar
with
products
are
wards
■.
,
generally
move
fortunes
new
•
upward, the
companies
likely will vary widely in the years
to come as certain major projects gain favor and others
are rejected.
Lear supplies a wide variety of precision
control systems and electro-mechanical equipment for
Richard
of
constantly being devel¬
oped to meet the demands of pointof-use record protection. These new
products will continue the trend to-
the
Edwin H.
obtains
situation
introduction
which
as
and
similar
the
conven¬
possible.
expenditures for air-
sales in 1959 will
our
year.
ments, which should benefit Lear, a
year - old
pioneer in airborne
equipment. However, the increased
29
schools,
all-time peak.
an
...
home, commercial and
better, and scheduled highway and de¬
or
will
be
1958, which was a fine sales
company.
However, countering this sales
the feeling that profits will probably be
down Costs appear to be in a rising
spiral. Yet we will make every effort
not to raise our prices—thus apply¬
ing a squeeze to profits.
Most major companies in our in¬
dustry made acquisitions this past
moderately rising total dollar market for its output dur¬
ing 1959 and for
1957
over
good
again be duplicated in 1959. Thus, some reduction could
MOSLER, JR.
better than
or
our
optimism
a
over
spread
was
health and expansion.
activities in high vacuum
considered opinion that
good
for
year
should
23%
up
building,
good
as
in the
metals and coating will follow this trend
the accompanying growth.
in
It is my
as
also
building permits
rare
share
EDWIN
be
Omaha
4% higher in 1958
devoting $6 to $8
are
By the end of 1959 some of the processes already
developed or under way for missiles and space vehicles
will have been applied to civilian
products which will
MOCK
whole.
a
as
were
to
President, The Mosler Safe Co.
M.
retail sales
.
of
fense
■
directly from the clean, protected
RICHARD
/
rural
.
t
as we
iar.
or
.
wholesale sales up more than 5%.
.
in
lip of
.
added
to be
lines
industry.
and
the
tors and increased income. Nineteen fifty-nine promises
year or
a
year or more to the space and missile field—•
than half the size of the automobile
manufacturing
mean
.
.
municipal developments
billion
more
.
.
industrial
re¬
They will continue to
of
effect
7% increase for
a
compared to 1957
as
good year for the state
a
The faster
products
several
long
as
dollars
had
in Omaha
new
various
Already
science-fiction a
were
today.
<
and
these
of
the
showing in 1958. The dollar value
ago represent business volume of
millions
materials of glass
raw
---sand, soda ash and lime—because they are almost as
plentiful as the ground we walk on. The economy of
the glass container permits the public to have
many
inexpensive—but certainly necessary—products it uses
every
so
from
growth
programs.
which
in popularity
thing there is no
grow
one
processes
stemming
the
reflected
Nebraska showed
doing better than the larger cities. All lines of busi¬
Construction
the sudden jump into
by this country will have not
only on the economy itself but more
on
highs in business activity.
particularly
the first 10 months of 1958
than 1957
impact
particularly
sales
bright farm picture.
ness
appreciate fully
us
Retail
echoed the gains
space
Havana and the other at Valencia, Venezuela.
The glass
few of
of prosperity sweeping agriculture
wave
sustaining force in the resistance to recession
and led the way to new
areas
by renewed capital
increase in missile and "space" activ¬
ities by the government.
container plants into operation during 1958. The com¬
pany opened the nation's most modern glass container
plant in Atlanta, Ga., last January and followed several
rponths later with its first two foreign plants, one near
.
As
buying in the steel and metallurgical
industries
and
by the very large
the
by
tech¬
anticipate steady growth in sales volume
we
in 1959, sparked
5,;Jn keeping with its optimism about the future of the
glass container, Owens-Illinois put three additional glass
^
metals
rare
new
equipment and
vacuum
the
was
x
fast in this country.
so
levels. The
ago
closely associated with the
pushing ahead
now
■*
one
savings in space and freight costs
brewer, wholesaler and retailer.
MORSE
manufacturers of industrial high
example of the packag¬
ing industry's byword—"convenience." Not only can the
consumer dispose of the empty after use, but the new
design takes less room on the refrigerator shelf—and
are
S.
President, National Research Corporation
by
51
(447)
the
OwensIllinois was a new
concept of the
no-deposit, nonreturnable beer bottle.
Already in
use
by
several
brewers, the new bottle is about iVz inches shorter than
tilt; present "one-way" bottle and is an ounce lighter.
,
1
-
,
189
in the future changes the direction
can
see
of almost uninterrupted growth.
of that chronicle.
Continued
on
page
52
52
The Commercial and Financial Chronicle
(448)
EDWIN
President, Bank
taining about the pace of the present time. The weakest
factor in 1959 home buying and home building is the VA
51
Continued from page
a
gold
levels
at
will
probably
remain
could take to insure
embarrassing to the advo¬
the
policy,
but this high level of unemployment
is necessary if costs are to be kept
within the competitive pricing needs
of
our
business
enterprise.
Once
cates of the full employment
again it
seems
controls
has had
OFFER
with
rocket
experiments
are
nation an excessive amount, not only within
the military, but in the political creation of a civilian
space agency duplicating still further the research and
experimentation. Solid, but small, minorities continue
to push spending demands which in the aggregate could
well cause an increasing flight from the dollar by those
able> to shift basis in an attempt to avoid the losses
brought on by accelerated inflation.
Banking, which has overcome the strains of a sharp
reduction ir. business activity, followed by an equally
our
a
people can remember has been
goods and services being
long as
the upswing
on
purchased
on
credit, which to
The year
credit
1958 reflected
purchases
crease
industry-wise,
decline in
a
well
as
as
an.
in¬
continuing high level of housing de¬
velopment. Consumer purchases were particularly satis¬
factory as 1958 came to a close and Delaware merchants
are optimistic
about 1959. Considering the impact of
unemployment during much of 1958, consumer credit is
a
In excellent condition.
fieem
is
Both business and
destined to grow somewhat
optimism
in almost
loans
consumer
foresight
during 1959 and there
in
we
new
enter into
credit
will
until such time
President, Mortgage Bankers Association
as
much
assurance
of
can
being right
of America
a
more
less be like
or
will
consumer
a
snail
for
the
the Federal Reserve stabilizes discount
as
will
for
credit
increase
and
more
of greater productivity,
in employment, greater deone
prompt payments
than that
it
will
be
E. J. O'LEARY
spite of this experience, it
ing
upon
about
$20
homes
of
Association
billion
all
will
kinds
in
go
to
uncertain
residential
was
1958.
beginning last
building rose
available
As the
new year
mortgage
money,
genuinely effective demand for
and
the
be¬
momentum
a
new
created
by housing starts already underway
or
actively planned are certain to
hold up the pace of new home build¬
for
ond
new
and
it
be
in
the
neighborhood of 1,200,000, higher
anticipated final total for 1958, with singlefamily starts about on a par with this year but apartment
construction showing a
sharp upturn, probably account¬
ing for as many as 200,000 units.
The money to finance what is
shaping up as an excel¬
lent year in construction will be
readily available. The
funds to finance the
mortgage lending industry—largest
user of new capital in the
country—after repayments,
will be in the neighborhood of $15
billion, or only about
billion less than in the previous record
year.
The conventional type mortgage—the loan neither incured nor guaranteed by a federal
agency—will be in
more demand in 1959 with the FHA insured loan main¬
an
build¬
1959
ing during the early part of the year.
Although the outlook for the sec¬
the
one
latter part of
new
homes
com¬
^
than
industry in
research,
1959
will
assume
the
gins,
£.
J.
ditions and these
that
half
is
less
able to note that
O'Leary
to
pects
starts
sale to
highest level reached in sev¬
eral years and stayed there to the
product
expenditures of
home
seems
end of the year.
all kinds.
Total
the
After
in
may well prove to be the record year
in total construction
Walter C. Nelson
in
year,
bine to present appealing
home-buy¬
ing opportunities in 1959.
Based
materials
set
impor¬
tant
investment most people ever
make, the availability of financing,
offer all
the
clear, it is reason¬
new building tends
respond to general business con¬
promise to be favorable. No
1959 will be
a
one
ex¬
boom year, but businessmen
and economists
economy
and
to
had
Buffer
of
also
been
tin
of
con¬
Stock
a
and
further
unspecified
an
made to
was
special fund.
a
limited
were
to
15th, 1957—March 14th, 1958, which
amounted
to
the
to
28.5%
a
control
31st
Subse-
cut.
that
period
March,
was
ex¬
that
so
the
Antenor Patino
became
now
restricted to 23,000
were
might have proved effective but for
in Western Europe of considerable ton¬
measures
of Russian tin, together with the continued
of demand
funds
the
for
metal
in
the
U.S.
The
low
London
the
buying by the Buffer Stock Manager
were
gradually being depleted.
In
Singapore price began to recover reaching
which
effects of restriction
beginning to be felt in the East due to the shorter
were
Likewise, the price of Straits tin in New York
began to rise, thereby reflecting a growing tightness for
pipeline.
this grade of metal.
During March the London Metal Exchange had taken a
step which has given rise to some controversy by regis¬
tering Russian tin under class A. 1. (Minimum 99.75%),
Russian tin of the requisite grade thereby became a good
It was in 1957 that
exporting tin in any quantity, reaching a
10,000 tons in that year and in 1958 it appears
delivery against L.M.E. contracts.
Russia began
total of
that her sales
the
June
In
will
seem universally agreed that the nation's
has definitely emerged from the 1958 recession
almost every business indicator will continue
rise in the months ahead.
This rising level of business will inevitably stimulate
industrial and commercial building and we can expect
that residential building activity will readily respond to
have
amounted
International
to
some
Council
Tin
Russia had been invited to become
a
17,000 tons.
that
announced
producer participant
under the
an
Agreement but she declined to join except as
This was not acceptable to the other mem¬
but negotiations are still continuing in the hope
Observer.
that Russia will agree
In
voluntarily to restrict her exports.
July the Tin Council decided that for the control
period
Oct.
be
1-Dec.
cut
31,
further
total permissible exports
tons, representing an
the
to
20,000
less than 48%
on a basic yearly ton¬
This rate of restriction was sub¬
sequently extended to cover the control period for the
first quarter of 1959.
In spite of all the drastic steps that had been taken,
on
Thursday, Sept. 18, the London Metal Exchange
temporarily suspended trading in tin when it became
no
of 153,000 tons.
nage
that the pattern of what can be expected for the
attractive than in many years.
Since a home is the most
builders will have to
an¬
to make their third
overall cut of
and, individually, more
the attractive terms and the
not
was
27,000 tons for the period December
would
experienced in 1958.
as
influence
better balance
were
move
longer than
Producers
to
Exports
bers
should prove to be
1959
home, since the various factors
which
this
^
£743 per ton (92.875 cents/lb.) as the
credit.
tive credit controls.
But in
be made for 1959 with
of
much
ticipated.
March
we
almost any other is
the prediction that the year will be one of the best in this
generation for buying
for
from
Offer
S.
Very recent business history warns that prediction of
things to come should be made with extreme caution.
President, Eberhardt Company
One economic forecast that
effects
pro-
consumers,
almost continuous
Charles
President, The Ruberoid Co.
And
the
ultimate
remained stubbornly on the floor at between
per ton (91.25/91.375 cents/lb.)
from January
until September. The price was only held at this level by
in 1959.
NELSON
to
£730/731
will constantly be exposed to variances in cost
that can materially affect earning projections. The indi¬
cations are that money will remain about as tight as it
presently is with no material change in rates, but of
course, this can be effected either adversely or favorably
by the attitude of the government in its financing pro¬
gram or by attempted control of inflation through selec¬
rates,
inand
C.
obliged
price
purchase of consumer
goods, as well as to readjust previous obligations.
From the standpoint of our industry we are faced with
the uncertainty of the cost of our product—money,, and
whole, the Delaware area will probably exceed
levels of activity by about five to six per cent
WALTER
the
and
felt
rate
1959, I feel that the
increase
greater spending,
the 1958
ducers
nages
of
continue to be cautious and
where
On the
length of the pipeline between
These
emerging from his shell. With renewed confidence in
his ability to meet obligations, the consumer's demand
segment of the Delaware
economy except that connected with the broiler industry
continuing low prices seem to be the accepted
expectancy for much of the coming year.
changes in
been
introduce the control of exports from
producing countries
in December 1957 but due to the
the appearance
consumers
demand for
As
granting
the
that
also
and
every
had
tons in each control period.
This proves that credit grantors had
the
as
remarkable
some
Council
ing control periods April 1st—June 30th and July 1st—
compared with the
as
to place Government bond inventories at present market
well
Tin
September 30th, when exports
published figures of unemployment.
for
1958 witnessed
International
approxi)
matcly 40%. This rate of restriction was maintained dur¬
purchases so that he might pay obli¬
gations previously contracted. Tnis,
of course, had the effect of slowing
down new purchases and decreasing
as
The
tended
delinquency, but the in¬
in delinquency was moderate
dustry. The sharp increase in Government bond prices
in early 1958 and the abrupt decline of mid-year have
impaired liquidity slightly but the start of 1959 should
see this liquidity restored by loss transactions designed
provide for current loans.
Delaware is faced with the same problems as the
nation as a whole in that the state has spent more than
current taxes provide in the way of revenue. Modifica¬
tion of the current tax structure, with some additional
taxes, appears essential to achieve balanced budgets.
There are still a number of national companies consid¬
ering Delaware as a site for future operations. The
construction industry is particularly well fortified with
a great deal of highway and commercial work in
pro¬
PATINO
the fortunes of the tin world.
restriction
in
crease
sharp recovery, has not yet felt the loan impact of either
inventory accumulation or high activity in essential in¬
spect
ANTENOR
President, Patino Mines & Enterprises Consolidated Inc.
uently
great
a
extent has stimulated the boom years.
cost and to
largei
a
more
credit
placed a
great value on credit standing. This
resulted in the consumer controlling
es
level
contribution
as
of
of predicting whether the
way
subsequently in April 1958
The economy of our country for
business
all
assurance
of higher costs, coupled with increasingly se-)
competitive selling conditions, will allow the highef
of profits that
normally should result.
vere
called upon
Industry during the year 1958
real test with respect to its ability to weather
recession.
many
diminishing market.
costing
S.
no
of
concern
the
pressure
amount
soft
related
artificial
with
even
sales volume there is
The Consumer Finance
a
their
the
President, Budget Finance Plan
pertinent to point out
and
remove
FHA and VA interest rates.
on
Edwin P. Neilan
the same problem which the
coal industry found impossible to solve except with¬
Satellites
be to
really troublesome
one
The year
flow of mortgage funds into
even
CHARLES
Automobile producers face
a
The
however, is that
tribution
that high wages in the automobile industry have priced
its product at too high a level to assure maximum sales.
in
an
housing market would
Thursday, January 22, 1951
.
income is likely to be high in 1959.
Consequently]
building materials sales should be good.
with the return from other investment media.
spending side, credit will be easier than is now antici¬
pated with, of course, a proportionately heavier burden
on the Treasury which, in effect, means more inflation.
The most important single action the new Congress
significance appears to be misunder¬
stood by
the democratic majority.
Employment
likely to be active mortgage investors
in 1959 with life insurance companies particularly so,
partly because of their large volume of forward commit¬
ments outstanding and partly because the net yield from
mortgages will be attractive to them when compared
are
big unknown in the housing and housing financing
outlook is the possible legislation which may come from
the new Congress.
If it proves to be strongly on the
by foreign nations
causes some apprehension about the
future soundness of the dollar, its
of
All lenders
The
with derision. Even though the with¬
drawal
so
to be
sure
major war, 1959 appears to be a year of
gradual improvement for business. The conflict within
the Federal Government as to the amount of spending
for the 1960 budget provides one major national uncer¬
tainty. A liberal Congress, dedicated
to high expenditures, is viewing the
approximate balance in the budget,
estimated
by
the
Administration,
Barring
far below the general market level that it seems
even less attractive than it is now.
In fact, if
this rigid controlled rate remains, the VA loan will be
no factor at all in 1959 home building.
4%%,
.
sumer
mortgage whose interest rate is artificially controlled at
P. NEILAN
of Delaware, Wilmington, Del.
.
that
known
the
Buffer
Stock
Manager had
withdrawn
his
support of the cash price of £730 per ton (91.25
cents/lb.). Three weeks earlier on
Aug. 30, the U. K.
in collaboration with other European countries who were
of
members
stricted
the
the
International Tin
imports of
tin
from
Agreement, had
the
Sino
re¬
Soviet bloe.
This restriction amounted to 750 tons per quarter in the
case
of the U. K. but the step came too late to save the
Buffer Stock
tin
Manager from running out of funds. The
closed
at
£642.10
per
ton
(80.3125
market
-
cents/lb.) showing
a
fall of almost
£90 per ton
(11.25
cents/lb.).
Rather
surprisingly, with the withdrawal of the
sentiment in the market improved
by Oct. 1 the market was again at the £730
port price,
that
ton
per
level.
It was generally realized that
taken by the Tin Council to restrict exports
at an even higher rate and the quota restrictions on
imports imposed by the Authorities must soon make
themselves felt. By the end of December, the London
price had, after rising to over £760 per ton (95.00
cents/lb.), fallen to about £750 per ton (93.75/lb.).
Looking ahead to 1959, if the rate of restriction of
48% were continued throughout the year output from
producing members of the International Tin Agreement
would be down to 80,000 tons per annum, together with
about 12,000 tons from smaller producers and possibly
(91.25
cents/lb.)
sup¬
so
the steps
about
17,000 tons from the Sino
Soviet bloc.. The
re¬
the existing demands of population
sulting
family
consumption for the free world estimated to amount to
formation
and
the
growth, the rate of
pressures of our increasing
total
of
109,000
tons
must
be
compared
with
standard of living.
137,000 tons in 1959.
Equally important for Ruberoid, is the likelihood that
the need for materials for maintenance and repair of
existing buildings will grow. There are more structures
tion of about 50,000 tons eompared with 54,400 tons
in 1957 and probably 49,000 tons in 1958.
If these figures prove accurate and provided the rate
of restriction remains unchanged, there will be an over¬
of all kinds in the
are
country than ever before. All of these
growing older and all must be maintained. Con¬
This is assuming U. S.
all deficit of about 28,000 tons
during 1959.
consump¬
This points
talume
Number 5814
189
.
.
The Commercial and Financial Chronicle
.
consumers' requirements
cannot be met by running down
the fact that the balance of
tb the
extent that these
stocks, will have to come from the holdings of the Buffer
Stock Manager. It is estimated that these holdings ap¬
proximate fairly closely to the possible deficit of 28,000
tons so that it is probable that by the end of 1959 the
Buffer Stock Manager will have liquidated a large part
of his holdings in tin. It is therefore reasonable to as¬
sume that if demand continues at the estimated
rate,
Steps will be taken during the year to reduce the rate of
restriction at such a time as to bring exports into line
by the beginning of 1960 if not some¬
with consumption
v
what earlier.
•"
"
'
conclusion, it seems probable that the price of tin
will continue to rise in London to at least £781 (97.625'
In
cents/lb.), which is the price at which the Buffer
Manager is authorized to commence selling.
interested
such
figure of
246,000 long tons or 18% of all the new rubber used. For
1959 the upturn in general business conditions, particu¬
larly in the automotive trade, seems to justify a predicted
consumption of at least 270,000 long tons for the year.
With this prediction the reclaiming companies realize
their product has been a significant factor in the eco¬
nomic stability of the rubber industry, and will continue,
I am sure, the traditional philosophy of
anticipating
and meeting the demands of the expanding elastomer
industry.
essential and non¬
the
in
that
its
utility airplanes have
looking ahead to a
airplanes now being
utility, having more speed, more range,
rying capacity than those produced
in
overly conservative in our estimates.
total U. S. population is ex¬
increased sales of
equipment.'
and
of all
use
Charles
H.
Percy
75%
pictures and movies are of babies or children, the
for this parallel trend is self-evident.
the projected
per
capita personal income over the next few
to
realize
to
also
Forces
that
advantage and at
a
be located
Airplanes
are un-
can
long distance from the built-up area. Hun¬
have been spent to build airports for
a
erate
the present-day airlines can op¬
safely, but practically nothing has been spent to
furnish this transportation to the rural areas.
Important in broadening the market for photographic
products has been the imaginative engineering of new
products that combine high quality and push-button
operation. This trend will, without a doubt, continue
to create a broader interest in photography.
In the essential category the growing use of photo¬
graphic processes in industry and the increased need for
audio-visual equipment as a teaching tool both in schools
and industry should also contribute to long-range growth.
;;
With regard to the near future, a conservative esti¬
mate for 1959 shows an 8% increase in photographic
industry sales compared with a slight increase in 1958.
In 1958, for the first time, these sales at the wholesale
level will exceed a billion dollars.
I expect that by
1960 they will reach a billion and a quarter.
As with
"V
all
industries, the continuing profit squeeze will make
earnings gains harder to achieve than sales gains, but
continued progress is being made in productivity in¬
creases.
Understanding and cooperative labor relations
within the industry are tremendously helpful in this
regard.
long-term outlook is
gains will continue to
exceed those of the photographic industry as a whole.
our
of millions
the larger places where
The universal
by some airplanes up to and including the light twins.
close to the small communi¬
ties or wherever someone may wish to go. The major
These strips can be located
expenditure will be the cost of the six acres of ground,
and a few days work smoothing and seeding the surface
will prepare the field for use. Since few planes will land
there at first, a sod field will be satisfactory.
The first
made
been
flight with
only 55
public,
followed the declining trend of our national econ¬
omy. However, certain marks of stability were noted that
auger well for the future of this special elastomer. Even
of
the
whole, is not using airplanes in comparison
as a
with the
Our civilization is based on
for
distances.
short
very
C.
H.
Peterson
reclaimed
rubber
use
as
a
establishes
its
is
future
The drug industry as a whole has completed modem
plants and distribution facilities in the post World War
II period, and capital requirements should be adequately
met by cash on hand.
Outside financing, where neces¬
sary, will have the advantage of the current favorable
investor attitude regarding drug industry securities.
During
sales increase of at least 5% should
highs reached in the year past by the
1959
a
the
over
and
were
are
a
number of factors on which we base
this
During 1959 the United
almost three million
States will add
people,
more
and about 1.3 million
age 65, making a
will have reached
total of more than 8%
lation in the over 65
the
age
pattern
continues
to
of
favor
of the popu¬
bracket. Thus,
the
the
population
extremes
of
the
over
consuming ages—the
the elderly. Growth also
continues to be stimulated by the
broadened medical coverage in this
country. The American people as a
will have nearly 16 billion
whole
in
that
time about 639,000 more households
will be set up. This, in part at least,
more
1959
In 1957 the
must benefit the drug
dollars to spend after taxes
than
in
industry.
1958, and during
During 1959, the world
population will be increased by a net gain of 50 million
people which along with advancing standards of health
and sanitation will benefit industry sales. The veterinary
medicine field, also, should continue its present rate of
growth.
major areas of the American
from the recent recession but
the
Sales of life insurance
about $65.5 billion.
third
In¬
4% gain
before while group
slightly off the previ¬
was
Industrial insurance, the
record.
ous
a
year
insurance
sizable
least
and
insurance
line
the
of
industry, will continue at
about the
level
same
as
it did in 1957.
It has been proven
in the long his¬
tory of American insurance that new
sales do not fluctuate
general
nation.
economic
This
as
much
situation
is because
the
as
the
in
insurance
is
Ladd
by far the most popular form of pri¬
Pitunley
vate
savings to the American people,
and even in unfavorable times they will put aside
tion
their
of
income
for
a por¬
future
security. The vigorous
educational and promotional job of the industry plays
an important role here.
We look to the 1959 economic
for
the
economy
This, of
to
continued
picture to be good and
slow but steady rise.
a
depends upon many pressure points on
course,
the national and international scene. The
greatest danger
to the insurance
industry, as well as to every other ele¬
ment of American business, is inflation. The true value
of insurance as a stable means of income and personal
security suffers from the deflated value of the American
dollar. This is
particularly true in the tragic instances of
who must live their retirement, or forced retire¬
ment, upon their savings and insurance dollars in an
inflationary period. The insurance industry will use its
many joint organizational groups to urge
a balanced
budget and reasonable government spending.
The income
picture of life insurance companies (now
over 1,300) for 1958 and for 1959 is dependent
great extent upon the uncertain status of Federal
numbering
to
a
taxation.
Congress has just finished hearings on the tax¬
ation of mutual and stock life insurance companies. The
method of taxation for the past
several years has been a
unsatisfactory both to Washington
companies. Many views were presented to the
and
one
Committee
was
a
on
the
best
method to tax
insurance
wide variance in these opinions. What¬
tax bill Congress may
due consideration will be
reserves
are
enact in 1959 it is hoped that
given to the fact that insurance
the largest source of
long-term capital and
thrift minded
people who by this action are one of the chief foes of
inflation.
of the insurance industry
dramatic changes in 1959 as
Competition and research within the
Each company endeavors to provide a
Observers
see as many
will continue to
they did in 1958.
field is intense.
portfolio for the
public which will represent the latest and the finest in
personal and group security.
It is
the heavy drug
young and
Abe Plough
of
recovery
that these funds are the creation of many
prediction.
undoubtedly
reclaiming
capital in
PLUMLEY
LADD
dividual life insurance had
and there
1959 shows promise of being the best year in
drug business, based upon a review
in other
industry-sponsored Rubber Reclaimers As¬
sociation instituted an educational program designed to
foster a better understanding of the proper use of re¬
claimed rubber. During 1958 the program gained mo¬
mentum under the guidance of an appointed educational
Committee and panel discussions were held before sev¬
eral technical society meetings. In 1959 the same panel
forum will be available, as will a lecturer's service for
in 1958
Mills
current trends.
There
most
in its
than in 1957.
ever
the history of the
of the
advertising costs will tend to rise in
1959, the industry generally will be able to adjust prices
where necessary. Dividend disbursements should reach
new highs in 1959.
"stop-gap"
President, Plough, Inc.
The year
the drug
percentage of sales than do many other industries.
a
and to the
not
prompted the action of most of the major
companies in reinvesting large amounts of
their operations over the past two years.
and
the automobiles in usefulness and
ABE PLOUGH
compounding material of significance. That
rubber classifi¬
firmly
of the airplane for short trips feasible
The
will
This new development assures the industry
popularity.
reclaimed rubber remains unique in its
cation
furnishes this
rapid growth.
a source
to show that it can be used
fields
walking, which is excellent
Everybody makes short trips, but
but to date the airplanes have not.
they will approach
of rubber hydrocarbon
but a process aid as well.
Generally speaking, reclaimed rub¬
ber offers both economy and quality
to many rubber products.
In addi¬
tion, some of its singular properties,
notably that it remains structurally
stable at elevated temperatures tend
only
expected increase in sales. Traditionally,
with
persons
natural
economically displace reclaimed rub¬
ber in many areas of rubber goods
that can
be wrought only by competition, rub¬
ber technologists seemed to redis¬
that
The reason is obvious.
few make long ones. The automobile
in generous
manufacture. Under pressure
cover
The airlines have taken the bulk
of automobiles.
use
and synthetic
oversupply
for the past 12 months, neither could
both
and developments to date have
distance travel away from the railroad, but
make the
The consumption of reclaimed rubber during the past
were
heavier than air machine was
a
years ago
phenomenal.
the long
year
though
landing gear on air¬
building of thousands of these inexpensive sod strips
President, U. S. Rubber Reclaiming Co., Inc.
rubbers
of the tricycle
planes has eliminated the necessity for multiple runways
and has made it possible to build landing fields,l'or these
thousands of towns at a very low cost. A single runway
100 feet wide and a half mile long is all that is needed
kind of travel,
C. H. PETERSON
use
■
pace
finished the past year with a slightly
less
over-all
average
sales figure
W.T. Piper <
they can
planes
factor.
•
the
economy
be done to improve the condition in
cities since the airports are large and expensive and must
Little
is apparent.
industry has lower capital requirements and labor costs
along with
dreds
1959 and
year
Earnings in the drug industry should keep
The insurance industry should continue to enjoy sales
and investment results in 1959. Insurance went
is extremely significant to the photographic in¬
dustry. The increase in leisure time is another favorable
For Bell & Howell the
ing the coming
success
years
favorable and I estimate that
breakthrough might take place. The im¬
a
H.
equaled for long distance transportation, but their use
for short trips has not been satisfactory due largely to
the time needed for ground travel at each end of the
flight.
Discovery of therapeutic
President, State Mutual Life Assurance Company
Of America, Worcester, Mass.
are
great saving.
at the
drug industry.
"off-the-shelf"
standard
at an
now
the drug industry of progress in these fields dur¬
on
occur
are
Armed
The
beginning
Combined with the population increase,
in
pact
the reduction in the number of
tation.
.reason
rise
and greater car¬
making a greater
demand for longer distance transpor¬
related
Since it is estimated that about
made have real
Not being tied to a schedule, the
utility airplanes can go in any direc¬
railroad trains
pected to increase another 100 mil¬
lion by 1980.
Thus, for at least the
next decade, the growing number of
new
families and rising birth rate
and
pros¬
few years ago.
a
where
areas
ing out how much easier and quicker
a trip can be made by air than in any
other way. The dispersal of industry
The
stimulate
a
are
II, having increased from $60 million
$340 million in 1957.
ecutives and other travelers are find¬
forecasts indicates that we have been
cameras
enjoyed
still better busi¬
expenditures
six times what they were
agents for heart disease, cancer, or mental illness are all
•
population.
latest revision of population
should
are
The
any time, and use thousands
airports, which for lack of size or
load potential are not serviced by the
commercial airlines. Corporation ex¬
tern follows that of
The
and
1959.
of
growth pat¬
about
While wages and
PIPER
T.
tion, at
categories, the photographic
industry shares an important char¬
acteristic of the food and other basic
essential
industries,
close of World War
to
as
W.
research
medical
annual rate of almost
The makers of
photographic industry 1959 should be one of
a
series of good years.
Although not immune to the
economic
climate,
the photographic industry should
show an excellent overall pattern of growth for the
next ten years.
With products that
Total
societies,
By the end of 1958, the consumption of reclaimed rub¬
perous year
For the
both
technical
ber in the United States will approach a final
ness
in
colleges,
as
President, Piper Aircraft Corporation
CHARLES H. PERCY
fall
groups
and customer employee groups.
Stock
President, Bell & Howell Company
53
(449)
toward
fairly certain that there will be a continued trend
multiple line companies. Last year saw several
mergers
and affiliations between fire and life companies,
operation. This is the result of
both in stock and mutual
a
demand by
the American public for more efficient and
rapid service of their insurance needs, as well as a desire
by insurance companies to offer as wide a line as pos¬
sible in the most economical manner. "One-stop" selling
of insurance used to be the
province of a relatively few
companies, but now there are more than 60 such "groups"
offering, or preparing to offer, a multiple line sales port¬
folio. While there are a great many problems in multiple
line
organization, particularly in the differences in field
operation and underwrting procedure, the trend
force
Continued
on
page
54
54
The Commercial and Financial Chronicle
(450)
Continued
from
be strong in
will continue to
of insurance
JOHN
53
page
1959 towards this method
business
Tfye public has heard much about the variable annuity,
several court battles develop
this topic. It is doubtful whether 1959 will see
the finalization of the battle between the advocates and
1958, which
was
firms.
1959 comeback
The
the toughest
economy.
annuity is not a reality in 1959, the con¬
tinued growth of "package" policies is certain. Those
entrusted with the preparation of portfolios have done a
remarkable job in offering policies and policy provisions
which mean extensive protection of many types. In 1958
we saw the emergence of such insurance "firsts" as the
The
for- older
news
persons
mark
but
health
As
John
of the
one
insurance
many
industry.
This relatively new
but progressive business has proved
industry can provide the answer to
the needs of disability insurance for the American peo¬
early in
book
total
G. Powers
>58s
high
previous
by
volume won't climb
—but
raise
fit from both the short and
long range prospects for the
industry.
v
To
summarize, controls producers will have a receptive
companies, which, strengthened by good
earnings, will be trying to combat wage inflation while
gearing to meet the demands for goods from a
market among
1960.
,
publishers,
sales
of
books
.
as
'
t •:
President, Robert Reis
.
expect
we
in
1959
to
be
more than 10%.
Unit sales
much—probably rising by 5-7%
ple.
Insurance
from
than
this
The
textile
dealers'
in consumer hard
goods
tragic occurrence if there
Federal
this
Government
area
of
further trend by the
any
was
1959
to
attempt to
i.nto
move
be
other
unusual
and
noteworthy
industry. You
will see the following movements within this major line
of American business: more new company formations
but at a lesser rate than before; increased recruiting and
intensified training of field forces; increased promotion
and advertising by the companies; continued sizable in¬
many
trends in the coming year in the insurance
vestments in the
American economy by insurance firms
with especial emphasis on mortgage loans; increased use
of electronic equipment in home offices; and quality
development in
vital
the
of
area
estate
planning and
"Key man" insurance.
Americans
year
had
$493
billion
opened. The Institute
this will be raised to
over
of
of
life
Life
insurance
Insurance
$530 billion this
the
as
estimates
sales
Steady
gains
During 1958 almost
surpass
rect
month of
every
comparison
shows
the
di¬
follow¬
ing:
Tourist
business,
tor in Nevada's
economy,
tially ahead of 1957
and
creasing.
(b) Construction is
the
over
trend
is substan¬
steadily in¬
noticeably
up
the
and
year
Retail
its
and
own
the
wholesale
first
half
trade
of
1958,
as
compared with the previous year,
and
the
second
six
months
ran
slightly ahead.
E. J.
(d) Unemployment is up a small
percentage but is accounted for by
the strong
immigration to Nevada*
Questa
Employment continues
on
an
even
keel.
(e) Agriculture and ranching, so important to Ne¬
vada, are in a sound condition. Cattle prices are sub¬
stantially higher in 1958 over 1957 and prices are firm.
(f) Mining has experienced its lowest ebb for a
however,
the
recent
upturn
in
makes this
prices
copper
picture a little brighter.
(g) The Finances of the State of Nevada
cellent condition, with collections
steadily
expenditures.
(h) Industrial activity, while still
are
in
ex¬
exceeding
assault on space, plus advances in harnessing
atomic power, will push sales of popular science works
—also particularly among young readers.
New books and editions issued in '58—at about
13,000
titles—fell
shade
a
below
'57s
figure.
number at least 13,500 next year.
Profits will climb substantially,
But they should
although cost
pres¬
sures—particularly postage and labor—will continue to
plague the industry. Offsetting cost cuts in other areas
and vigorous sales efforts will
help raise margins.
F. L.
believe
RIGGIN, SR.
that-1959
1958,
will
This
is
be
I
feel
can
will
now
not
see
has
pany
future.
in
share
1959.
are
the
better
own
confidence
great
We
in
Our
planning
an
year
for
all
broad view and does not
a
some
business
of them
which
we
com¬
in
Arizona—262;
and
further points out Nevada's
there
is
a
limit
as
sonal
income
and
ranked No. 3.
from
a
be
offset
by wage
1953
only
same
have
deposits
is true with
reached
loans
and
favorable
net
high but the
operating income,
Economists expect this upward spiral of Nevada's eco¬
nomic trend to
continue, and 1959 shows every indica¬
i
tion of
a
record-breaking
year
economically.
up
industry will act as a deterrent
price increases and keep profits low per sales dollar.
results for the year will depend
on
substantial
increases.
'•
These
E.
A.
attainable.
appear
'':.?-
ROBERTS
The
Fidelity
'4
,;
Mutual
Life
^
V
Fifty-eight
!
was
force,
assets, total investments, and payments to policy¬
all-time highs.
Industrial group insurance programs,
reacting to the pressures from re¬
holders— indicated
Fred
L.
Riggin,
Sr.
business
duced
activity,
sales decline which
for total
showed
a
largely accounted
life insurance
sales
for the
being slightly below those of
Ordinary life, representing over
70% of all sales, again had a record
year
year.
The third postwar recession which
are
the general economy appears to be
further strength after the recent downturn.
as
Running
concurrently
very
gaining
with
improving business for¬
stiffening wage demands,
thus higher labor costs for the
performance of a wide variety of
are
manual tasks. This creates
for automated
equipment
a
as
demand
corpo¬
rations seek to preserve profit mar¬
gins
in
order
to
finance
further
growth.
Also, along with population gains,
there is a strong tide
running for
higher and higher standards of liv¬
ing. This can only be provided by
the greater efficiency of
machinery
replacing the time-consuming efforts
William
And, as has been the case
generally since the dawn of the in¬
A.
Ray
men.
dustrial
revolution, the
new
equip¬
ment
will create more jobs than it
From a generally slow start in
early
activity steadily accelerated, making the
will
business
dication
quite satisfactory
both sales and earnings.
year
a
one
for
General
Controls
in
was achieved at General Controls
by tightening
cost controls, generally sprucing up operations and
materially broadening the company's product line. Thus,
in a sense, the brief recession served a worthwhile
pur¬
This
up
pose
by bringing
General
Controls
a
return to sounder business practices.
be carrying this increased effi-
will
1957
of
serve
has
shown
recovery.
every in¬
Productivity
Federal Re¬
policy has shifted towards
straint
and
the
general
re¬
expansion
£.. A.
to be broadly based and well
appears
balanced.
The
Roberts
should con¬
tinue steadily through 1959. The
major threat presently
is that the recovery will generate renewed
inflationary
problems.
recovery
Life insurance traditionally has been able fo resist
wide swings of the economy. The ability of the
industry
last year to counter the general trends of the recession
gives promise of another successful
sales in
tute
Life
year
in 1959.
Total
excess
of
of $70 billion are estimated by the Insti¬
Insurance.
The long-run growth potential
for life insurance is excellent.
family formations and
an
In the next
decade,
present insurance protection
remains
ing at
new
ever-growing population will
provide ample opportunities for life underwriters.
per
The
individual and family
low, and the standard of living has been increas¬
eliminate.
1958
started in
has been rising rapidly.
and
leads
all-time
an
.
sum
total
increases
Prospects for the controls industry for 1959
of
Our bank with two-thirds of the
total deposits of this
state shows a 15% increase
deposit-wise for 1958, which
is considerably higher than the
National average. Not
i;t
for 1959, volume in textiles and in men's
wear
should certainly increase.
This is the answer:!to
a much improved year.
However, the intense competi¬
To
another successful; year for
the Life Insurance
Industry. Most of the yardsticks by
which life insurance is measured—insurance in
WILLIAM A. RAY
top eight in per capita per¬
during three of the past five years,
unusually
offered five years ago as practically all fabric
has been eliminated. The price is still, un¬
we
shrinkage
changed.
h Nineteen
President, General Controls Co.
For the past five
years, Ne¬
accurate barometer.
some time.
Perhaps this is because
prices have' not gone up and values are outstanding. $or
example, the men's T-shirt that our Company manu¬
factures retails at $1.25 currently. It is a better T-shirt
1957.
level
popu^tion
growth shows the state's
university increasing 250% in
enrollment in the next ten
years, which is an
the
Insurance Company
keep wa^es in line with
productivity, we are going to have more inflation.
As for the demand for our
products,- we think this will
increase steadily for some years in the future.
;■
substan¬
(j) In percentage population growth, Nevada
the nation; and a recent
projection of this
from
than has existed for
.
to
which represent' greater
outlay than
the savings which have been made.
Until we find some
way to
tunes
a
Reis, Jr.
President,
be
strong industrial trend.
1957, with
Arthur
volume
accomplished in this
direction, and what is accomplished
cannot
weather
As
1959
starts, the conservative
inventory policies of the past year find the pipelines of
supply low from one end to the other; a truly healthy
condition! Furthermore, low inventories are combined
with a higher level of consumer interest in soft
goads
stopped
but
Cold
stimulus to brisk Christmas shopping.
Final
until there is a pause in the rate at
which wages are being raised.
Most
managements have been intense for
the past year and a half in cost re¬
Mexico—358;
Florida—253,
which
(i) Personal income has increased
of $462 million to
$647 million in
tial gain forecast for 1958.
vada has been among the
December.
on
program
and are building a
mill which we do not
expect to
be finished before 1960.
We do not
believe that inflation can be
can
the Fall months of
tion that characterizes the
the
expan¬
sion
what
as
rolled
Rocky Mountains East added further
than
better
a
apply to each individual industry, because
small, continues
percentage-wise to lead all the forty-nine states. Tak¬
ing the 1947 to 1956 U. S. average increase in value
added by
manufacture, as an index to 100, the relative
position of Nevada is 568; second is New
Utah—268;
all the way
around, the general in¬
dustry-wide pickup was also shared
in by the men's wear
industry. This
was
finally capped by an excellent
man's
gen¬
eration;
consumer
manufacturers, had a
impact.
Mediocre
business
yarn
Fortunately
for
texts, expensive paperbacks, and juveniles
to sell best.
Business and tax service publications will
continue to show steady gains. TV educational
programs
will undoubtedly spur sales of related nonfiction. And
duction
continues.
(c)
held
preceding
vital fac¬
a
1958
that characterized 1957 thus deterio¬
we
new
(a)
and
to
1958
look
business than
A
the
We
We
1957.
in
inventory
conservative
buying
ultimate
heavy
shared
Conservative
back
and
President, Mueller Brass Co.
phase of Nevada's economy
showed an upward trend over 1957. The
only soft spot
is the mining industry which, if it were not included in
the 1957 comparison with 1958, the latter
year would
fully
rated f urther in early 1958.
QUESTA
every
policies
This hope, how¬
materialize, and bur
not
from
still fairly heavy.
year.
President, First National Bank of Nevada,
Reno, Nevada
r
expect will be due to rising
high personal incomes, and to
the higher average educational level of our population.
enrollments
-
J.
did
industry
production, after falling by about 7% in '58
'57, should recover by a bit less than that amount
year.
That's because inventorits in publishers'
school
private enterprise.
will
There
in
;fc
<•
wear
expenditures.
ever,
recession.
are
Co.
seg¬
ments, entertained seme hopes at the start of the
past
year that it would benefit from the
anticipated decrease
Book
hands
&
industry, including its men's
new
and
growing
and increase
ARTHUR REIS, JR.
,
income.
the insurance
1958
I;
-
Controls, with its broad line of quality-prod¬
home, industry and the military, stands to bene¬
price increases to meet increased costs will
some
dollar
that
for the elderly was growing faster in
the elderly population rate.
It would be a
an improved
earnings should bene¬
body of people who will want to maintain
their standard of
living.
output by the end
close to $1% billion — setting their
sixth
straight record and topping
of sickness and accident
was
the
events of
larger base of operations into
a
General
ucts for
of the year will be about $480 billion,
and
headed
for
the
half
trillion
remarkable liberalizations of underwriting
voluntary underwriting
dramatic
dollar
1^59
Throughout 1959, American industry will try to pro¬
tect earnings from the spectre of
runaway labor costsby
investing heavily in automatic controls and automated
equipment. «;
;
;
'*
a
national
Total
approximately the same cost to the consumer.
insurance
decade for many
in the pan.
family plan, guaranteed insurability and health insur¬
ance for the elderly.
This trend will continue, and we
at
Thursday, January 22,
.
.
If the variable
more
a
for
after
prospect
change
substantial in
be
on
.
economy and corporate sales and
fit accordingly.
V
bit slower, percentage¬
our two previous postwar
recoveries. With the possible excep¬
tion of firms engaged in missiles and
space
research, no single industry
will surge ahead spectacularly. But,
for that very reason, we are working
on
the assumption that the broadly
based 1959 upturn won't be a flash,
the variable annuity. There is much to
be said on both sides. The most encouraging aspect is
that the industry is continually attempting to come up
with solutions to the problem of the inflationary dollar
look for
in
year
will
totals, but
wise, than
the opponents of
in the American
ciency
recovery to new highs is
the
in the year ahead—a welcome
Steady
around
POWERS
President, Prentice-Hall, Inc.
selling.
and in 1958 they watched
G.
.
a
more
protect it.
accepted
rapid rate than the insurance needed to
Life insurance has become recognized
means
of estate
building and
a
secure
as
an
form of
savings.
Nineteen
petitive
the
Fifty-nine will be another intensively com¬
Not only is there keen competition among
year.
more
than
1,300 life insurance companies,
but also
strong competition for the consumer's dollar from outside.
Volume
Number 5814
189
To meet this competition,
ods
introduced
being
are
salesmanship of
a
.
.
The Commercial and Financial Chronicle
.
creative merchandising meth¬
to combine with aggressive
assuring present and
sound product in
insurance musU-'also compete in
attracting better men into the field.
\< •
v.
Since 1913, life insurance companies have been taxed
on income
by a succession of temporary schedules, none
of which
were
particularly acceptable to either the
Treasury or to the industry. Legislation this year should
set a permanent schedule as the basis upon which the
industry's income will be taxed. The life companies are
anxious to pay their equitable share of the National tax-bill, but presently are paying the highest rate among the
future
Life
growth.
Ration's savings institutions.- - "I'
''
:-r-:
"
earnings on total investments in 1958 were up
Interest
to 3.85% from 1957's 3.75%.
This reflects the more favor¬
with the in¬
vestment of new money and funds received from matur¬
ing holdings at attractive yields. Generally the available
market rates were down slightly from 1957, but this was
offset in .large measure by commitments of funds for
1959 at more favorable rates.
Increasingly, investment
able interest rates of recent years, together
being geared for longer periods, in some
Home construction in
showed a recovery from the slowdown, but mort¬
programs
1958
are
several years in advance.
'cases for
loans by the industry about equaled those of 1957.
'Mortgage loans should increase as construction starts con¬
tinue upward in 1959.
Other investment opportunities
should also be good.
Capital spending should continue
gage
levels, and the demand for power will sustain
Various public work proj¬
result in a large number of municipal issues
at present
the
utilities' need for. funds.
ects should
-available.
-
J
\
.
its desire for in¬
life insurance protection, even in a year of a
family has indicated
American
The
creased
recession. The industry's expanding
'ability to meet this need gives substance to the expecta¬
tion of another successful year in 1959.
v ■
business
general
THOMAS
various product
usual
In the United States there are approximately 1,000
companies engaged in the manufacture and sale Of non,
tire rubber
products. These manufacturers will consume'
about
530,000 long tons of rubber in 1959,
country's total rubber consumption.
non-tire
The
.
dustry
in
growing
ment
of
faster
as
of the
tire
the
products
new
and
in¬
foam
industrial hose,
covering.
rubber,
should
enjoy good sales in the
market
seas
1959. This is
well
as
in
creasing
and
President,
mote
The
system which Hewitt-Robins is building in a re¬
jungle area 225 miles southwest of Calcutta, India.
system will bring iron ore from a mine
conveyor
2,600-foot mountain and bring it down to a rail¬
valley below for shipment to a new steel mill
which is being erected as part of India's industrial mod¬
ernization and expansion program. The belting for the
atop
a
road in the
will be more than four miles in length and
plant at Buf¬
conveyors
will be manufactured in the Hewitt-Robins
falo, New York.
j*
y'
■
of both disposable and
dairy industry is
directly affected by that of industry in general as well as
the economy of agriculture. Although the largest single
J,f As heavy
durable
'
users
of a wide variety
supplies, the economy of the
the
factor for
particularly acute in the 1957-58 re¬
hoped that the improvement in eco¬
conditions predicted for 1959 will be accompanied
improvement in our industry's pricing policies.
problem
became
cession. It is to be
nomic
by
an
FRED
food industries, are so small
that relatively minor changes in any
of the other cost elements can easily
I
ulti-
that
the
cogent economic
most
in
sideration
is
1959
likely to
both
of
we
labor
Demand, meanwhile, appears to be
John
A.
Robbins
strengthening with
be expected to buy freely. Recent reports of
holiday spending bear out this conclusion. Under such
conditions and in the absence of subsequent changes in
outlook, indices of consumer buying should
continue to
slowly during the next few months.
Within the
dairy field itself, probably the most impor¬
single consideration is the level of price supports
established by the Federal Government for. the basic
tant
■
to
growth,
the
pick-and-shovel labor gang for any
application requiring excavating or
removal.
in
The
United
the
anticipated
■M-;
j
volume
and
is
faced
with
"Little 300."
a
consolidations
and
will see a further series of mergers
which strong leaders will
from
and small inefficient producers
emerge
will drop to the
today the technological
activity is predicted by
approximately 8% in 1959, but
at Sherman believe this figure is conservative, since
Over-all
we
Governments. These sur¬
plus shoulder weapons and side arms
are
available in quantities that, on
construction
new
months has created
needs. Much equip¬
ment is past the normal "trade in" stage, and many con¬
tractors have been making one machine do the work of
two, waiting only for an optimistic note in the coun¬
Industry's slowness in the last 18
our
a
Roff,
Jr.
items, exceed a full year's
production of the entire industry.
Consequently, if efforts to keep surplus weapons and
low-tariff imports off the domestic market fail, Ameri¬
can
firearms manufacturers face dim
prospects even
many
though sales volume at consumer level is on the upturn.
F.
shakeout. In many
most authorities to rise
the arsenals of the United States and
CLINTON
like
a
surplus arms in
European
'dairy, products. Although these levels are more of a
political than economic consideration, announced governmental policies indicate that we may anticipate a rela¬
Romain
developments in mate¬
buyer
value
than at any time in the past. And yet we are but on the
threshold of even greater progress in harnessing nuclear
and thermo forces now in the laboratory stage but which
will be commercially feasible within the next decade.
prosperity of the'domestic
firearms industry as a whole, how¬
ever, is quite doubtful. The industry
is reasonably small in dollar and
unit
A.
rials, hydraulics, and scientific design gives the
of construction equipment dollar-for-dollar more
generally.
Conditions
William
commercial, and industrial expansion.
Nineteen fifty-eight has seen the
ments;
in
improvement
business because human-muscle
for earth-moving and mate¬
rial handling is no longer economical
nor
adequate to meet the postwar
construction demands in residential,
year
Yesterday, the design of power shovels depended upon
massive weights to meet strength and capacity require¬
recreational industries, and
continuing
"baby" industry has
into a $150 million a
postwar
wayside.
continued
time that stimu¬
leisure
This
Nineteen fifty-nine
from
come
in
serious threat from
increasing employment in prospect. This means that con¬
This
"rig" has replaced the old-time
bile
the multitude of fringe-operating loader and
digger manufacturers had a parallel in the automotive
field 40 years ago when today's "Big Three" were more
The
sumers may
advance
expected
all
economic
^
digger.
power
is
and
with his versatile, mo¬
businessman
..;
of* 1958.
the
ultimately must be
materials, which
and
is
.
lates
be a
which
loader
respects
firearms
of
ahead
be
.
increase
prices to the final user of our1 products.
in
reflected
to
industry.
sale
dollar
1959
population
rising costs,
face slowly
in
increase
tion. The inevitable conclusion seems
to be that
the firearm's
expect
States
con¬
on
front-end
a
rear-attached
beginnings of an automotive-type of
ROFF, JR.
pleased to submit my opinion as to the outlook
1959 in
We
infla1
significant degree of creeping
am
for
in the United States, it would appear
'
A.
President, Colt's Patent Fire Arms
Manufacturing Co., Inc.
loss.
Hence in appraising the outlook for
the
dairy industry for the coming
year, we tend to look first at the
economy as a whole.
Speaking in terms of all industry
s
mounted
power
jnost
spell thp difference between an
mate net profit and an actual
tractor
farm-type
mushroomed
materials, profit margins, as for
'
serves
dirt
dairy industry is
tost
taw
'
of a new businessman—the small contractor who
suburbia, equipped with a
gence
quently drives selling prices down to a point where it
is impossible to make a fair return on investment. This
ROBINS
President, Fairmont Foods Company
%
;
history of the small construction equipment industry.
The World War II postwar period has seen the emer¬
Although the growth in our industry's sales has been
gratifying, the profit picture is disappointing. The
intensive competition for the available business fre¬
most
JOHN A.
ROMAIN
Sherman Products, Inc.
fifty-nine will be the second best year in the
Nineteen
veloped countries of Southeast Asia, South America and
Africa. One overseas project of special interest is a con¬
veyor
A.
Robins, Jr.
underde¬
the
to
a
cars,
W.
Thomas
being shipped in in¬
volume
about 108 million ingot tons of steel,
moderate increasing pattern of machinery output.
million
5.6
particularly true of the
are
156, comprising about
Goods Production Index of about
producers of heavy industrial goods
—conveyor
belting
and
industrial
hose, which
Board
serve
over¬
home
at
as
approximately $465 billion, a Federal. Re¬
Production Index of 143-145, a Durable
of
Product
manufacturers
rubber
re-stock¬
pects, of course, run into considerable detail. However,
in terms of the broad economic indicators commonly
referred to our forecast sums up to: A Gross National
rubber footwear and floor
Non-tire
i.e., somewhat higher rates of industrial activity
ing. A similar conservative approach was taken relative
to export demand.
The forecasted industrial activity levels and economic
factors to which we have been gearing our sales pros¬
creasing popular demand for stand¬
ard products such as conveyor belt¬
ing,
occur
and, in turn, higher rates of customer inventory
seg¬
the
with supplying higher demands which could easily
in the current recovery phase over the course of
cope
the year;
result of the development
a
many
years
than
37%
of the in¬
has
been
segment
recent
conservative bias. Further analysis relative to
lines resulted in a somewhat lower than
relationship of product sales to the external fore¬
cast.
In this approach overplanning tended to be min¬
imized without restricting flexibility and the capacity to
slight
ROBINS, JR.
Hewitt-Robins Incorporated
Chairman,
55
(451)
■
backlog of construction equipment
try's
*'•
economy.
The Federal
in 1959—many months of land
tion, planning and engineering are now
impact of this construction
ROBINSON
■
#
'
road-building program will begin to gain
real momentum
several years.
,
acquisi¬
behind us. The
will hit its peak in the next
■
-
*
tively stable price level for primary dairy, products in¬
gredients. At least, all segments of the industry are
likely to be equally affected by whatever changes in
levels are forthcoming so that the effects, if any, would
be on the general demand for our products.
of the
view
In
highly competitive nature of the food
dairy field " in particular, the
prospect for increasing costs of labor/ supplies, equip¬
ment and transportation,
even with stable- ingredient
costs,,, will put continuing pressure on profit margins,
except as offsetting economies can be effected. These
.conditions pose a serious threat of "profitless" prosperity
in the absence of forceful action on the part of manage¬
field
in
general and the
ments
•
.
This is not to say that
,
about
the outcome of
expect revolutionary
to
our
answer
'
,
-
'
•
_>: s ;
President, The Carborundum Company
Abrasive
and
allied
appreciable gains over 1958. Demands for these prod¬
ucts
in
1958 were down substantially, reflecting
the
sharply reduced level of operations in the automotive,
steel, and the machinery industries,
declining capital expenditures, and
the sharp run-off of inventories in
manufacturing.
With the prospect of sizable re¬
covery
in
the
economy,
particu¬
larly the durable goods industries,
overall demand for most products of
Carborundum
some
the dairy industry is pessimistic
As an industry, we do not
1959.
developments or miracle solutions
However, a number of areas
decline
problems.
these
are
promise
of
further automation
relief.
Among
in production, greater effi¬
providing
some
distribution field, more effi¬
accounting methods, more economic
erate
Gen.
C.
F.
Robinson
cient and
revealing
merchandising and adver¬
tising. Major short-term improvement through increas¬
ing per capita usage seems to offer only limited possi¬
bilities, but substantial improvement in profit margins
throughout the dairy industry can be realized in 1959 if
individual companies will exercise restraint in competi¬
tive
pricing practices. We see greater
istic
pricing of products as
creeping inflation.
danger in unreal¬
related to cost than we see in
show
continued
same
extent
as
in
in
recovery.
to
1958.
lines.
other
products
reinforce
Some
of the
be in a mod¬
stage in 1959, and
will
transitional
(cautiously)
are
on
ciency in some parts of the
-packaging, and more effective
will
New and im¬
proved
products
by Carborundum
held up well in
1958, acting as a
sustaining force and cushioning the
growth and
-
newer
hold
1959 will show
in
product sales
not being counted
overall sales to the
Internal improvements in em¬
ployee relations, methods and systems, however,
definitely reduce some heretofore excessive costs
also
tion,
and
will
and
provide better service in manufacturing, distribu¬
order processing, inventory control, warehousing
shipping, and perhaps a better share of total avail¬
able markets.
planning and programming company business for
1959 we have geared our thinking on a conservative
basis.
Sequence of analysis started in the fall with vari¬
ous
industrial production and national economy fore¬
casts which in terms of today's concensus contained a
In
in the sale of small power diggers and con¬
struction equipment has been evidenced in the closing
months of 1958, and will continue to accelerate in 1959.
A surge
MAURICE M. ROSEN
President, Progress
Manufacturing Company, Inc.
of the past nine months
momentum to carry the Ameri¬
economy
to a new peak in 1959. With a gross
national product likely to exceed $470 billion this year
all major industries can be expected
to
show
more
or
less substantial
The strong business recovery
to have sufficient
seems
can
gains over 1958 levels.
The Housing Industry once again
Housing
month from
915,000 in
February and came close to 1,200,000
by the end of the year, the
highest since 1955.
The tightening
in the capital market will probably
make
itself felt before long, but
builders have already secured mort¬
led
the economic recovery.
have risen every
starts
low
the
gage
annual
rate
of
loan commitments to assure a
high volume of residential construc¬
tion in the early part of 1959.
A
Maufice M. Rosen
tapering off may set in as
progresses. For the entire
I estimate that private housing starts should gain
gradual
the
year
year
around
Our
ways
5%
over
own
lags
a
1958.
industry, Residential Lighting Fixtures, al¬
few months behind housing! starts because
Continued
on
page
56
56
The Commercial and Financial Chronicle
(452;
Continued
from
page
plant of Coro's English subsidiary will be completed and
55
in
installed when the house is about complete.
Thus the outlook is excellent for the first half of 1959
fixtures
are
and
probably at least very good for the second half.
addition, the lighting fixture industry should bene¬
fit from the cumulative effect of its own efforts and
In
Ready-to-wear
the
home.
fighting
The
will
promote better lighting in
toward a general upgrading in
trend
undoubtedly continue, not only in
but
especially
in
the
renovation
construction
new
and
modernization of existing homes.
For these reasons the
lighting fixture industry should surpass the
estimated 5% gain of housing: my estimate is a sales
increase of 8% to 10% for our industry.
My own company, Progress Manufacturing Company,
Inc., is planning on a 20% to 25% gain in sales over
1958.
This optimistic forecast is based partly on the
introduction of a great many new items into our line
and partly on the fact that our sales last year were
residential
and
President,
fashions
couture
both
—
the
in
United States and Europe—which set the silhouette pace
for
accessories, indicate that 1959 will be
for
jewelry to accent these understated fashions.
those of related industries to
L.
production by the fall of 1959.
Pins will be
silhouette,
trend
a
"slump"
reduced
of
somewhat
by an illegal work stoppage in two
plants last October. I expect new highs in sales
our
and earnings in
earrings
reasonably uniform in 1957, but, for
"must."
a
E.
ROWLAND
Agriculture
was
new
during 1958.
While prices in some
segments of agriculture sagged during parts of the year,
lets
will
the whole agriculture held steadier than did most of
tusiness and industry.
The year 1958 was a good one for
Ralston Purina. All five major divi¬
sions
of
the
established
record-breaking volume in sales and
services.
These
Chow
the
are
the
and
Grain
Merchandising
restore
must
Each
be
health
import stones and
tions also make
back
cut
the
to
broiler
business.
Pro¬
bring it in balance with
markets.
new
brings its
year
problems,
own
but
we
in
Low feed
prices help make
better feeding
profits.
Vendome
confidence
in
the
future
is
shown
by the
fact
company's capital expenditure budget for
ex¬
pansion
during
history.
Our newest and largest plant for the manufac¬
the
ahead
year
is
the
largest
in
its
but two
of
the
dustry who served
construction.
The
Our
are on
dealer
next
sion
at
Several
summer.
drawing board
organization
and
most
for
optimistic.
or
under
for
the
and
manufacturer
poultry.
We
credit
who
the first
The eight
interest
and
took
those
of
look
modern
for
new
rations
Purina
reporting
combined
sales
for
1958
Because
set
all-time
an
1956. Expectations for 1959
are
for
an even
year
high
of
at
we
capital loans
need
for
effort.
of
too
in
per
creased demand for
Coro
in
is
reductions,
technological
England
to
meet
Since
that
number
of
cattle
the
and
that
Ross
paid
in
full,
the
reputable
a
the
and
it
the
steady
the
im¬
amount
mar¬
has been increased.
would
seem
farmer
and
evidence of
hogs
paid
for
in the
fat
feed
on
will
that
not
in
fare
were
marketed
high
as
as
heady,
a
lots, the stock
belt, the prediction
will
hold
about
Because there were 12%
than
1
feel
this winter
they were
feed
livestock
at
of the
many
I
exceedingly large
an
corn
October
and because
ago,
year
that
and
year
steady it will be
a
the
same
time
cattle taken out
prices
Rosenberger
amount
the
with
the
greatly
in¬
accounts.
rise
in
consumer
new
of
work
location
of
on
the
several
of
the
deliveries
of
but they did not materialize
continuity anticipated. In the
previous
orders
affected
both
Nov.
of
still
Nov.
1, 1958, only 87 commercial vessels
order, of which only 22 had been placed
on
1,
Thus it will be evident that deliveries
orders
new
1958
orders
and
that
less
than
one-third
the
placed during the year ending
during the corresponding period of
These 22 orders included one nuclear
were
than
-for
four
of
which
No tankers
type of vessel
any
were
not
were
If however, the
ago.
awarded
included and
were
no
until
orders
placed between April and
recent award
a
of
fine thing and will enable
a
contract for
one
large ore carrier on the Great Lakes and a very recent
finding of a low bid on three additional cargo vessels
preliminary to award of contract early in 1959.
There are presently pending four
cargo vessels for
which
bids
have
recently been submitted, on which no
In addition, invitations to
awards have yet been made.
bid have just been solicited
three
on
additional
cargo
vessels.
There
still
appropriated funds available for con¬
struction differential subsidies and national defense fea¬
are
tures for
seven cargo vessels in the fiscal 1959
program,
in addition to those above mentioned. It has been
under¬
stood that the Maritime Administration budget for fiscal
1960 would include funds for 20 additional
cargo vessels
as another increment in the
long range
ship replacement
lines, but the action of the
Budget with respect thereto has not yet
been made public.
There is a little prospect for more tanker orders at
present.
However, some additional ore carrier orders
may develop for Great Lakes service to replace
small,
slow, old and obsolete carriers presently in service.
Bureau
of the
of
subsidized
the
There appears to be little prospect for the
construction
of seagoing ore carriers in this
country.
The unsubsidized berth services and the
both need replacements for their
but,
under
present
solve, not the
conditions
least
of
which
have
is
the
tramp
opera¬
respective fleets,
problems to
some
financing of
new
construction.
The
use
of lift-on lift-off
ships
may
ultimately provide
sufficient incentive
to resuscitate, in part at
least, the
coastwise and intercoastal services, and
perhaps even to
invade the overseas field.
'
The
prospects
for
orders
from
these
various
other
mentioned are still a little too vague for
ship¬
yards to rely upon for orders in the immediate future.
Hence, the bulk of any orders forthcoming in 1959
sources
new
post office, the vast
Federal
prospective
Highway System,
new
industries
in
Bluffs, the further development of river docking
facilities, the continued effective, economic control of
City Manager form of government, the aggressive,
forward looking attitude of
prospect,
with
existing and the prospective work load.
of
spring probably won't
Most of these cattle will be
new
in
or
tors
Council
our
were
rate
the
finished
for
July, 1959.
With the completion of the
G. E.
orders
at
September, 1958, inclusive.
Many, recognizing
populations
pastures of the
prices
cattle
year
then
There has been
"know-how"
surpluses,
shipbuilding yards look back on 1958 with mixed
At the beginning the
outlook, based on the
order book, was reasonably good and additional
emotions.
program
marketed before
type,
tremendous
L. W.
have
or
per person
otherwise would be useless.
demand from both England and the continent.
This
reversed.
was
rise
until the second quarter
apparently has leveled off.
But shipbuilding yards do
ultimately feel the results
of a
"slump," first by suspensions or cancellation of
existing orders, of which there have been some, and,
second, by the failure to place new and additional
orders, which inevitably creates a dip in the future
contracts
the feeders to utilize the abundance of
rough feed which
increasing manufacturing facilities
the
trend
to
of 1958 where it
for
increase in employment and income
an
evident
hold about
jewelry by Coro's Canadian
currently
the
continued
October, 1958.
prediction is true that prices paid for fat livestock will
jewelry
cope
major
there are
powered combination passenger and cargo vessel for gov¬
ernment
account, two ferries, and 19 cargo vessels,
farm person has doubled and tripled since
be
plant in Toronto,
just been completed to
when
1956
has
the preceding year.
of
improved machinery
cattle
added 40,000
square feet to its Providence
factory,
the largest costume
jewelry factory
has
it
Nov.
farmers
long standing.
non-farm
of
more
recently
modern of its
of
time
exceeded
have almost
steady for the next six months.
lcoking, exciting spring merchandise
in depth.
new
part
number
badly.
this
Canada, the most
upon
little if any
us
While there is every
Reports of excellent jewelry busici e s s
in
December
indicate, Mr.
ftosenberger stated, that stock inven¬
tories will be low, and that
jewelry
departments will be open for new-
in the world. A
but
on
yard activity and employment.
Shipbuilding
employment had been declining from 1953 until the latter
whereas
Consequently, even though prices are lower and
the
a
in
Several
1959.
Shipbuilding yards do not feel the effects of a slump
quickly as ship repair yards, as there is no immediate
were
living, have accomplished this by concerted
With
produced
increases.
Coro
into
effect
since Nov. 1, 1957.
larger units in order to maintain
provement
is
line with this boom
well
run
1, 1957, 98 commercial vessels were on
order, of which 68 had been ordered since Nov. 1, 1956,
interested
Many
sizable
Coro
divisions, including its
jewelry subdivision, Vendome, are preparing for substantial
In
as
As
dis¬
prices, the talked
this writing we
made
fields
sales,
pretty well completed.
jobs have been completed,
meantime,
two
food
most
are
conditions.
have
"Chairman of the Board.
All
been
conversion
the
were
dependence
our
livestock
increase, according to Gerald Rosenberger, President and
couturier
were
concerned about the forecast of
lower food prices and a reduction in
farm income.
Because of an abun¬
dance
of
crops
and
comparatively
of
greater sales
1959
and
spite
will
of
con¬
The
retail
on
If there is to be
high, topping both 1957 and the previous record
months
the economy of agriculture and food
for
Coro's
of the yards but that program now appears
some
have
The
in¬
and
commerce
tribution and construction.
1939.
President, Coro
six
view
gin of profit less, the net
ROSENBERGER
of
included
rates.
dismal
more
a
standard of
records to be set in 1959.
GERALD
lower
in any year since
the fact that 1958
decreased progres¬
curve after scheduled
existing orders are well
The long lead time required for ship construction
makes it necessary to have orders far in advance in
order to maintain continuity of work load.
machinery, petroleum and
effi¬
livestock and poultry farms offers expanding
livestock
average
along.
Savings Bank,
leaders
steel, appliance, merchandising,
distribution
continuing trend toward greater production
on
to
several others which will
1959.
panel at the fifth annual discus¬
National Bank of Chicago on
the
First
the
business outlook
boom
the
being modernized and strengthened day by
opportunities
lor
Cincinnati
■;
ciency
for
ROSS
Bluffs
ten
and
at
Chow mills
are
combina¬
on a
mence
operation
W.
Council
recession has affected
system
color
year,
ture of Ralston cereals and Purina
Dog Chow will com¬
day,
Unusual
the
division
its second
production
new
beads.
marks
Council Bluffs, Iowa
likely to influence feed prices favorably for
the feeder.
average
and
The
season's
new
changing fashions in 1958—the chemise, trapeze
incoming Empire—did much to stimulate the jewelry
business. Pendettes, multiple-strand bibs and ropes were
among the star sellers.
struction
to expand our volume of business. Abundant
grain crops
of 1958 are
other
the
iridescence
average
sively, each quarter being less than
preceding quarter, is significant.
A/..A
jumboizing of T2 tankers has provided conversion
the
The
All
Ralston Purina look to 1959 with confidence and enthu¬
Our optimism lies in the opportunities we have
our
accent
frosty
in the jewelry field
news
President,
siasm.
Our
to
or
the
1957
1953.
Moreover,
employment has
R. Sanford
work in
new
Raymond E. Rowland
States.
to
1958 (the
available), the
work load
fcroiler industry suffered from over-expansion and low
prices. Unselfish business statesmanship will be needed
that
fresh,
A
L.
During the last quarter of 1958 the
consumer
jewelry colors have been specifically
new
E.
than
duction facilities have just been enlarged and the sales
has been expanded to take care of the greater
demand for this more expensive couturier
jewelry line.
and
dog foods in the United
duction
important
more
of Coro, which has just com¬
received tremendous store and
consumer recognition and acceptance in 1958. Plans are
now underway for
greater sales in 1959. Sales and pro¬
poultry feeders of
the nation fed approximately 4% mil¬
lion tons of Purina Chows during
1958 in the production of meat, milk
and eggs. Purina Dog Chow climbed
to the top position in sales of dry
to
jewelry
force
Livestock
1959
in
with,
pleted
Oi vision.
tn
color
the
than
importance of color in the coming fashion
makes
ready-to-wear.
The
Divi¬
sion, the Pialston Division, Sanitation
and Farm Supplies, Soybean Divi¬
sion
loaded with brace¬
or an arm
and
company
three quarters of
latest figures
the fashion look lor spring.
be
Coro's
economy
on
the first
new
than
planned to blend
na¬
will
a
employment has been about 27% less
ever.
relatively bright spot in our
a
button
ears,
up
single important bracelet,
The overall
RAYMOND
the
laying
the
big 1959 fashion because of extremely short sleeves. The
195.9.
President, Ralston Purina Company
is expected that, with
exposing
those engaged in repair
are
hair fashions
and the
wide-away and
increasingly important. Bracelets will be
picture
tional
and
America
of
Decreased
work.
pins
Empire pendant necklaces will take top place in the
up
Council
"slump" in shipping following the
"Suez
Canal
Episode" had its repercussions in the
shipyards, both here and abroad.
The shipyards which first feel the effects of a shipping
.
become
SANFORD
world-wide
Multiple-strand bibs, ropes, single-row necklaces and the
going
Thursday, January 22, 1959
.
Shipbuilders
new
several
necklines of spring make the necklace
fashion picture. It
E.
.
shipping activity
of many ships cuts
potential work load of the ship
repair yards and is immediately re¬
flected in their employment, which
is
the
yardstick with which ship
repair activity is most conveniently
measured.
Such
employment was
combining
for
should stimulate multiple sales. The new
scoop
year
important—worn high for the
very
while
banner
a
The
.
our
people
the long pull I am
decidedly optimistic.
as
a
whole, for
undoubtedly will
come from the long range replacement
of the subsidized shipping lines, together with
portion of the current naval construction program
program
that
allocated by the Navy to private shipyards.
Fortunately,
after
a
1957
to
the Administration and the
disastrous lapse on the part of both in
Congress,
failing in
support and appropriate funds for replacement
Volume
Number 5814
189
construction
with
The Commercial and Financial Chronicle
.
.
1958, did come through in 1958
appropriation for that purpose .for
is hoped that ?uch will be the case
for fiscal
moderate
a
fiscal
.
It
1959.
this coming year for
fiscal 1960.
ships
placed in service, two for the Grace Lines and
During the past year, four new passenger-cargo
Were
conversion of
Mariner to
a
In addition,
Lines.
two for Moore-McCormack
a
major
one-class passenger-cargo
a
ship for Atlantic Service was completed and placed in
service.
Whether or not funds will be made available
in the coming session to proceed with the new superliners for the United States and American President
in the last Congress, remains to be
authorized
Lines,
construction of these two ships would con¬
The
seen.
greatly to the prestige of our country and, by
expanding the mobilization base of ships in being, par¬
ticularly passenger ships suitable for troop transport,
enhance the national security.
AA
tribute
the case last year, the key to a sound
future for the shipping industry, for the shipbuilding
and ship repairing industry and for the national econ¬
omy, lies in the budget recommendation of the Ad¬
ministration for thfi fiscal year 1960 and the action taken
Again,
as was
recommendation. A >
by the Congress on th^t
panies. And 1959 should
by this type of cigar.
In the
We of the Con Diesel Group face the year 1959
with
expectation of continued growth through increased
military and commercial sales of our diverse products
and services, and with confidence that earnings through
the year will eclipse those of the
the
preceding twelve months.
This anticipated growth, we be¬
lieve, will come as a result of our
active
programs
of diversification
and product development, increased
operating efficiency and aggressive
sales
efforts.
The
diversification
effects
three
which
of
Group in
the Con Diesel
all over America with the objective of obtaining
foothold for cigars among younger men whose smok¬
ing preferences are not yet fully established. And other
puses
a
industry programs will be at work in
cigars with such masculine
materials, merchandising aids and powerful adver¬
tising support. And to heighten the appeal of cigars to
helping to generate a healthy growth
cigar industry for 1959. But beneath them lies
something else. Not quite as obvious, perhaps, but every
bit as powerful. It is a spirited new movement by an
industry criticized not so long ago as being too "back¬
ward" in its ideas and techniques. During
1959, the cigar
industry will not be backward. It is looking to the fu¬
ture with optimism, aggressiveness and a lot of new
ideas. It's the business that came up from 4.5 billion
in
1933
to
than
more
Norman
1.
shift
The
Schafler
nomic
Coast
the
to
and
Pacific
in
South
the
future
Pacific,
of
ground
important
new
ing
New
of commercial products due to add
one
to
Zealand
and
tourists
of
will
want
to
go
inaugurated by Matson this year, will continue
meet the needs of modern shipping and
are pleased at the warm acceptance the con¬
expand to
We
tainer project
Chairman
the cigar industry's
following the recession, ha?, of
in the cigar business also. This
is
outlook
course,
country,
been reflected
up-
expected to continue
during the coming year, and its ef¬
fect on the cigar business should
continue in proportion.
•
*
number
a
very
am
Brokers' loans
in 1929 and
market
are
value
are
country's economic
we
can
of
all
our
common
a
requirements for
ef¬
pleasure.
by-product of this search for
a
Norman
Schwartz
A
more
satisfactory smoke
in
has
sectors
some
not
Joseph
we are frankly hesitant to commit
all-out "department store" merchandising^
recently
began
installation
Seitz
the chain
"Homfc
special
of
part of the
chain's new construction program. By the latter part
of 1959 we should be able to reach our own decision on
the importance to be assigned non-foods in Colonial's
future operations. We will adhere to the premise that
we
are
food retailers first
and non-foods salesmen
certain larger supermarkets
in
second and
as
position
do not intend to jeopardize our
we
in food distribution.
that
believe
We
food
passing
currently
is
retailing
transition period comparable to the shift to
self-service in the Thirties. To illustrate, food retailers
still do not know what is the optimum size for efficient
through
a
We
sections.
monster-size
ical
with
operations,
supermarket
or
non-food
without
discover that we really do not need
supermarkets to do an efficient, econom¬
may
selling job.
Many retailers are discovering
12,000 to 25,000 square-foot stores can
volume and profit levels
in competition
well-run
that
hole!
with
oversized supermarkets. The growth of so-called bantam
markets in many areas is another development suggest¬
ing that size alone is not the only route to successful
their
food retailing.
expect our chain's 1958 sales
We
will hold approxi¬
1957 levels, but that earnings might be of?
much as 20 to 25%. This reduction can be attributed
19.^9 store development program will
regular rate in anticipation of higher
sales and earnings during the next 12 months.
However,
continue
at
our
the
in Pension and Social Security
gain
will enjoy
a
greater volume
always respond
improvements in general business,
in fact historically running some¬
what ahead of it, there should be a
real improvement.
will
There
stantial
Francis P. Sears
higher in 1959 with
a
headed by 20%
probable
or
more
still be sub¬
capacities for most of
products, and there are
notable examples of capacities
in
far
mands.
be
however
excess
major
the
some
automobiles expected in 1959, although I am
the past three years.
Chemicals Corporation
general business condi¬
As chemicals
tions.
Indications are that industrial pro¬
goods,
SEMPLE
B
to
stupendous growth of
in durable
ROBERT
ably better
happy
to note the greater increase is in purchases of the com¬
paratively lower priced cars, whose higher roofs and
shorter wheel bases contrast so effectively with the un¬
comfortably low-slung and ridiculously lengthy styles of
new
brand
an
that satisfies
non-foods
will
trend
reported for
just passed. There seems little
doubt that the FRB index of industrial production wil!
show continued improvement from its present levels
throughout most of the year, and
hence we will be having consider¬
12%
considerable
smoke
this
enthusiasm
The
I feel sure that chemicals
gains in steel products. This great increase is largely
due to the better situation in the number of units of
switching by these people in
fort to obtain
where
certain
not
lead.
of business than the year
-
been
big food re¬
edging—or
been
mmmmmmmmmmM
growing
of millions of American
cigarette smokers to "shop around.''
many
have
President, Wyandotte
shows how much many peo¬
Funds plus the
tendency
for
who
plunging—into non-foods. Although
non-foods are being sold more and
more
extensively in many super¬
markets, most food retailers are still
of the
a very safe situation
slight decrease during the
past two years in the purchasing
power of the U. S. Dollar indicates
that the people are wiser than they
were and will not pay unreasonably
high prices for goods.
The great increase in 1958 in sav¬
ings accounts and holdings of life in¬
duction will be 5% -8%
has
decisive
expect
the
crease
of
beneficial
One of these forces is the
that the next 12 months will
thinks
only one-third of what they werf
try,
also.
our
confident that
less than 1%
Investment Trusts.
prove
the Board,
of
happy about
forces peculiar to the tobacco indus¬
should
can
to general economic and competitive conditions, reduced
profit margins, and higher promotional costs.
SEARS
Columbian National Life Insurance Company
feeling
surance
- But in addition to this general up¬
ward
force
affecting virtually 'all
are
P.
ple are voluntarily saving. Another
indication of this is the great in-r
:
there
tailers
prosperous year.
and
for 1959 is the best it lias been in years.
The general upturn in business all over the
big ques¬
retailers, namely whether major food re¬
profitably handle a variety of non-food items*
ranging from minor soft goods to major appliances that
include television sets, refrigerators
and even larger items.
Our
Company
which
in
1953
grossed approximately $440 million
in 469 stores east of the Mississippi,
as
am
Incorporated
mately to
FRANCIS
The
Stores
tion for food
has had, both in the Islands and on the
mainland.
I
Colonial
Nineteen fifty-nine will be the year of the
Centers"
have
program,
SEITZ
JOSEPH
President,
We
strong
This indicates
President, DWG Cigar Corporation
their
the
Hawaii, „the
by plane and one way by ship.
high hopes that the new freight container
way
trade.
proposed affiliation with
largest, soundest and oldest in the business with its 33,000 agents, should mean a great growth for us.
to
Thousands
business.
We
our
of years,
countries
Hawaii hotels does not mean
lessening of interest in the
Islands
or
the
Pacific.
In
fact,
Matson will be in a better position
Randolph Sevier
to
develop its passenger ship and
freighter
business,
which
is
an
integral part of the Pacific tourist economy. We plan a
vigorous advertising
and promotional
campaign for
steamship travel in 1959.
The advent of the jet age should spur Pacific travel.
Obviously, jet planes will offer competition for the
travelers' dollars, but, at the same time, they will create
new
Company,
own
Despite the fact that Colonial has
handled a wide variety of non-food items for a number
stocks, whereas brokers' loans were
10% of such value in 1929.
SCHWARTZ
From many standpoints,
our
yet been accompanied by fully con¬
vincing profit-and-loss figures.
our
support equipment, received from
Missile Agency, Lockheed Aircraft
NORMAN
There
up¬
any
work
contracts for missile
substantially to the projected military volume, it seems
reasonable to anticipate that 1959 will be a year of con¬
tinued achievements for the Con Diesel Group.
which
the
The recent transaction involv¬
area.
outlook for 1959 and I
businesses,
on
Australia and the rest of the Pacific
a
trend
SEVIER
population and eco¬
opportunity to the Pacific
and with shipments
Award
year.
of
Army Ballistic
Corporation and the United States Navy.
With the company's backlog of military business cur¬
rently at the level of $19,000,000 and likely to increase,
•
last
Elsewhere in the Con Diesel Group,
the
:
units
definitely is
swing and the Pacific region is on
the verge of its greatest growth in
history.
aircraft, missile, and nuclear power plant controls and
components.
That Con Diesel is fully prepared to meet the com¬
plex technical requirements of military procurement is
evidenced by the range of new products developed and
produced during the past year. These products included
advanced missile and aircraft ground support equipment,
precise power supply units, airfield vacuum sweepers,
electronic circuit analyzers; instrumentation components
for nuclear powered submarines, and commercial jet
servicing equipment. As the new year opens, our Con¬
solidated Controls subsidiary is engaged in resign and
manufacture of components for primary plant instru¬
mentation for the first nuclear powered United States
Navy destroyer, as well as for a nuclear powered air¬
aircraft
billion
6.1
beginning!
belief
upon
As to
the great Hartford Fire Insurance Company, one of thcs
are
the
Hammond Valve Corporation subsidiary on
Dec. 2, 1958, extends Con Diesel's product line into
manufacture of bronze valves for plumbing, heating and
industrial applications. The two prior acquisitions were
made by the Con Diesel subsidiaries, the Lima Electric
Motor Co., Inc. and Consolidated Controls Corp.
Lima
Electric is engaged in production of electric motors,
gearshift drives and motor generator sets for the com¬
mercial market. Consolidated Controls is a producer of
progressing
Life Insurance indicates that this product is moro
appreciated than ever before and shows clearly the in¬
comparable advantages of this form of thrift.
nary
men,
fact that the national economy
company's
craft carrier.
tion there seems to be a continuously higher demand,,
especially in the residential section.
Apart from a great war, the chief danger for the com¬
ing year seems to be in threats of heavy inflation and
crippling strikes by the ever grasping labor unions.
Many economists predict there will be little inflation iri
1959, but I hope the Federal Reserve Board will watch
carefully and take needed action for control.
The great increase in purchasings of so-called Ordi¬
attractive new packages with the accent
on modernity will be
making their appearance on cigar
counters and in supermarkets.
A-;
A..A:
These are just a few of the more readily observable
younger
one of challenge and promise.
challenge lies in the growing competition from
jet planes and other ship lines; the promise lies in the
strength as
and
effort to link
sale
has only just begun.
At Matson we
share
is
an
men's fashion adver¬
tising, bank advertising, and industrial advertising.
To capitalize on the peak cigar-selling seasons of the
year, individual companies are planning alert and timely
promotional drives complete with bright, new point-of-
it enters upon the calendar year 1959.
The most recent of these acquisitions, effected by the
of
areas as
The
position
a
of the traditional sizes and shapes of cigars,
The New Year should be
acquisi¬
major
consummated, the
have been to cast
been
greater sales gain
President, Matson Navigation Company
and industrial products.
1957
have
even
tailers
our
Since
an
RANDOLPH
the
tions
see
There will probably be a small increase in inventory
accumulations, although not much pick-up in business
capital outlays since there is at present considerable
capacity in excess of demand. There is an exception in
the case of public utility companies, for whose produc¬
be
has had the purposes
commercial
younger
also many optimistic signs for the year ahead.
And that's only the
operations over recent years
of moderating
company's dependence upon gov¬
ernment contracts, and giving the
company a more balanced line of
of
area
are
units
,
among
Aggressive industry advertising will be at work to help
sales by promoting the masculinity of cigar smoking.
Industry programs will also be at work on college cam¬
in
President, Consolidated Diesel Electric Corporation
particularly
of small cigars such as the cigarillo. During 1958
cigarillo sales increased substantially for many com¬
men,
factors which
SCHAFLER
NORMAN I.
has been the increased use,
there
57
(453)
a
As
year
business,
prices
of
excess
to
a
current
result
sales
1959 will
de¬
again
of keen competition for
and
while
I
anticipate
remain
relatively firm
doubt if there will be many
cant
increases.
1958
as
Profits
I
Robert
B.
Semple
signifi¬
should show improvement over
despite increased costs of
raw
materials, trans¬
portation and labor most companies have been able to
Continued
on
page
58
The Commercial and Financial Chronicle
Continued
J.
from page 57
Chairman
minimize the deterioration of margins by effecting econ¬
plants, and as a corrolary new plant construction
the industry will be down from the levels of the
just passed.
' ;
.
provide new markets for
new or improved products, and those who have the good
fortune this year to bring significant new research de¬
velopments into the profit column will profit accordingly.
■/..
will
Research
continue
to
to
To
summarize,
consolidation
pansion made
industry
the gains
of
over
will be
it
feel
I
chemical
the
The
an
improved
levels
the
coming
end
rapid
of
"
which
recovery
'BK
that
in our present type of economy those
responsible for economic policy decisioiis in Washington have mastered
year
but still one of
in technology and plant ex¬
"7-B
,
i?
J
W*.
the
'
thinking and actions required to
keep our economy on a fairly even
the past five years.
It
informed
moderate
estimates
for
call
general,
abouts.
Public
construction
during
works
will
estimated
1958
to
search
were
Russian
space
satisfactory levels.
based
on
market.
funds to ihvest'in
From
the
standpoint of my own company, Barium
Steel Corporation, 1958 results have been more
disap¬
pointing than the general business picture. As historic
suppliers to the capital goods industries, our 1958 op¬
re¬
by leading construction field
1958 than in
1957
the
standpoint .of the over-all economy that
insurance'industry do
That v/ill
growth is accomplished
mean
E.
Keystone's faith in the recovery of
underground conduit,
principally by the communicaindustry. If these estimates
are
borne out in the months ahead, Natco
glazed and
unglazed facing tile, available in four face-size series
months
and 22 color
the influx in
cations
ume.
A
This will also be true
of
our
brick,
sewer
and
three
speckled patterns. This product
one of our most recent, offers the architect and con¬
tractor a material which
is, at once, durable and decora¬
tive.
It
is, in
new
our estimation, a strong competitor with
building materials employed in modern con¬
struction.
ernization since the
end of the hostilities of World War II and the Ko-
conflict.:
rean
While
slowed?, down-
was
this
"
•
construction
in
institutional
construction will remain high, pro¬
viding a stable market for facing tile. This product finds
its major application in interior
corridors, stairwells,
kitchens, lavatories, and operating rooms. The popularity
of ceramic
facing tile for these uses is traceable to its
wide range of colors and its
The United
non-residential
building
will result in another year of increased sale
of facing
tile, long our best selling product. School, hospital and
nance
durability and low mainte¬
cost.
At Natco, we are
optimistic about another new product
which has generated a great deal of interest in
building
circles. Uniwall facing tile, when in
place, provides the
builder with an unglazed rough texture exterior
a
time
the
m
"
v
Construction suppliers look
In
an
back
on
a
1958
with
blighted by
both
reces¬
wholesome stability.
While many other segments of the
economy slid down¬
ward, construction held its own, and, in so doing, served
to help brake the effect of
slipping volumes in
many
other industrial
categories.
at the rate of three million each
year,
in this
long-range expectation for the
Personal income continues to mount.
is the key factor
addition, present housing, residential
alike, is becoming obsolete at a rate
program
during
the
our
during 1958.
In
Some -economists
are
predicting
business
$34 billion per year to
a
ML
structural clay products
will
figure
Research has
and better service in
Of
our
use
industry.
than
and
ever
capable
of
longer
before in the
history
a
thin 2%
an
Donaid
c.
Suchter
1958
to
month
of
over
1957;
an
companies
These two factors
business
1959 should
upward trend for two
rea-
First, personal income should
ica
are
j>3.6Q
nearly
that amount.
be sold
can
consumer
is in
a
inciuding^life
with
increased
sales
combine to give the
personnel.
life insurance
an
opportunity to gain a little bit in the propor¬
people's incomes which go into premium pay¬
ments. Actually, while the statistics of the life
insurance
tion
of
business have been
have done
to
no
impressive since World War II, we
barely hold our own in relation
better than
the national economy.
We think- that 1959 may show
a figure
higher than the 3.9% of personal income which
has been applied to life insurance
premiums in recent
years.
hour, including fringe benefits,
per
foreign steel cpmpan.ies
This is
major
a
at lpwer
pay wages at
reason
less than one-third
why imported goods
prices than domestic products
be manufactured.
'
can
y
This unfair competition has many
dangers. It threatens
and the stability of the
companies that provide those jobs.
Just in the wire in¬
dustry alone, he&rly 3,000,000 man-hours of employment
lost due to
were
foreign imports last year/ What's lWre,
foreign competition jeopardizes our national defense, if
weakens American industry.
it
A fair,
solution to this situation is imperative
and
if busi¬
industry in the nation is to maintain its
and
grow
oppor¬
the needs of America.
serve
The
anticipate in 1959 and the years ahead must
be predicated upon this problem as well as
pur ability to
progress we
customers .with
serve
service. j.-i
.
top quality products and
\y'y
:
BRYAN
prompt
,
E.
SMITH
Reports' from fire and casualty insurance companies
will provide somewhat better
reading for 1958 than they
did a year ago. Much of the improvement
shown, how¬
will be
ever,
more
apparent than
the
H^B
B^I^B
fact
that
real.
This
changes
is
in
due,'to
reported
stantial gains from unrealized appreciation in the market value of cpmmon
-
stocks
of
reverse
less
a
in
whereas
this
was
true.
1957
»the
Although
signs that
dramatic, there are
hopeful trend is developing
more
I'■ \ surplus wil reap the benefit of subHigfl tin
the underwriting end of the busi-
ness.
1957
proved
to
begone of the
most
unprofitable years in the hisTory of the industry, but during 1958
P^^B
some improvement was experienced
-
'
The
chases and his savings,
insurance. Secondly, the life insurance
companies generally took ad¬
vantage of the opportunity afforded
their sales forces, and a number of
expand
enter 1959
E- Som,!le,'
The problem pf competing with
foreign-made wire is
difficult one. 'While steel-maker's wage costs in Amer¬
under
increase
Life insurance sales in
show
■MHI
devel¬
building supplies in the bustling construc¬
Moreover, our products are more easily
obtainable, attractively priced,
corresPonding
sons.
in
that
but
^ast month was the highest Decem-
.
approximately
oped product lines which combine the
purely functional
with decorative. Our materials are now
competitive with
market.
a
Wmm
lhe
rise in construction
point between $53 and $64 bil¬
prominently in the coming boom.
were
month has shown
f
^^B
'
Reu
domestic wire industry. Tliac problem is
foreign competition—the rapidly increasing tonnage- of
imported steel wire products into the United States from
the low-wage-cost countries of
Europe and Asia.
ever, that the trend has been upward
'
^
:
problem that-faces not only Keystone
.rec?rc*. breaking centennial
°ur
lion 10 years hence.
We believe
1958
year
and non-residential
faster that the rate
volume upward from the
present level of
Life
throughout the country will
continue to expand in the
first half of 1959 at about the
same rate as in
the last six months.
Sales in my own
company, Northwestern, for the full
■pV
an
the jobs of American workmen
living
highest
change this
Insurance Company
BBpBMMHHH
j
ac-
President, Liberty Mutual Insurance Companies
President, The Northwestern Mutual
that
X
'sf<
"
but the entire
a
believe
»
our industry. Unfortunately, however, it will not offer
any
major relief to one • common
DONALD C. SLICHTER
^
* "*'"** '
</v\
increasingly competitive industry.
be favorable.
a
\ *
BBS *t
manufacturing
pete with others hi
tunities to
profitably in
our
Like others in
t /.h ;
•
favorable position to com- ?.
even more
For this
reason, my company is planning to build the
most modern
facility yet installed anywhere for the
manufacture of steel ingot. This new
plant to be built on
deep water on the Delaware River
will materially re¬
duce our
steelmaking costs and enable us to operate
more
replacement and modernization.
tion
and expansion.';
ness
construction field.
One out of every
five people in the United States
moved
other major
tional facilities to
activity of heavy industry.
It is also true that
suppliers view the future with gen¬
optimism. A rapidly growing population,
increasing
one, would not wish to
situation but
;
economy
sion, construction demonstrated
of
undertaken immediately is
foreign imports. In my opin¬
has the highest standard of
World—actual and real wages are the
ceramic glazed
pride and satisfaction.
eral
and
this means that we must have the
built-in
efficiencies which will offset the technical
improvements
and lower labor costs of
others. I believe that this will
come to
pass and that 1959-60 will see an
upturn in the
I
•
expansion
States
paid anywhere. I, for
facing
interior facing. Available in five
basic shapes, this product offers the
construction indus¬
try single-unit wall construction material for the first
and
markets of
these
econ¬
'i vi
f?? "f
;l JBgPilfcS'
flP •'r/f-*,t
past
it has been'renewed and addi-
year,
reconstruction.
Accelerated
other
be
programs
our
that
has increased their effieeneies with
the result that steel
plate is coming to th^ American market at
prices $18-$22
a
ton below current domestic
prices. This discount was
advertised as recently as December in
financial news¬
papers. If the United States wishes to
keep its place as
the leading industrial nation of
the World, it must make
its plants more efficient than even
the latest of foreign
•
linp,
other
demands
tions was destroyed
during World War II. The rebuild¬
ing of these plants, with the latest modern
improvement,
We also
ucts
colors
which
come about at least ih part
through the fact
that much of the heavy industrial
plant of foreign na¬
back-up tile, and allied building product lines.
seven
factor
ion, this has
pipe,
anticipate expanded use of the newer prod¬
developed by industry research in recent years.
Chief among these is glazed facing
brick, available in
ahead.
modernization
patterns, will maintain its heavy 1959 vol¬
the
national
our
currently underway at our Peoria Plant.
the steel 'industry we have invested y
heavily in new construction and mod-
All of this; of course, is being
complished to place our firm in
used
without
omy and itt the* era of progress which lies ahead is indi¬
cated in ohe way, I believe, -by the construction
activity
and the very high national income registered in
1958, that the production of heavy capital goods requir¬
ing structural steel and steel plate which were put off
in 1957-58, should show a
satisfactory increase in the
increase in
an
of
the]
per¬
SOMMER
omy
sales
in
we
suading the individual to save, and thus indirectly chan¬
nel a larger part of his income into
long-term invest¬
residential and non-residential build¬
ing. We also expect
-
better job in 1959 in
a
processes: are Underway.
The year
ahead calls for-further modernization
our
\
life
sharp curtailment in plant
expansion and equipment replacement. It is my
belief,
however, in view of the general strength of the econ¬
have reflected
decline in
a
The demand for capital upon the part of
individuals,
corporations and public bodies apparently will be somjewhat greater, in 1959., Therefore, it is important from!
economists, add up to another year
of sustained activity for construction
suppliers. At Natco, we anticipate a
strong sales performance for product
lines which find application in both
erations
to
aue
policy loans and payments to policyholders, as well as
growth in assets,-the investment opportunities available
both in real estate mortgage field and for
corporate
REUBEN
conquest)
primed the pump
that
brought overall business statistics to their present rather
billion
$9.7
almost
this year.
These predictions,
costly
supply little or no funds for the capital
Although most insurance companies had more
President, Keystone Steel & Wire Company
employed in early 1958 (certainly justified in the face
of
but in
be actually more
J,-A.'Sisto
■
they
edge upward from
of $9.5 billion
sOm| 'of|
be cheaper,
to
appear
inflationary credit expansion.
economic cycle is the tremendous sums required for the
defense program. The slow or rapid use of these Federal
funds can make an almost immediate
change in the
economic climate and the rapidity with which
level
may
turn out to
may
j
which
ments.
has
'30s, cheap money alone is not
the complete answer. The new factor
which can be used in stabilizing the
utilities
and
and
which
run
in the
although
gains, in all construction categories during 1959.
Non-residential building is expected to increase ap¬
proximately 5% to $11.6 billion, with residential build¬
ing rising to $14.2 billion or there¬
an
WW *
always been obvious that
cheap money would help stimulate
business activity but, as was shown
SHIPLEY
President, Natco Corporation
Best
tfi|j ;
/||
Mm
keel.
ROY A.
long
securities exceeded their investible funds.
actu-
me
varieties
the
sometime
1959.
ally took place indicates to
1958,
over
present
towards
■
for
Corporation
slow recovery
a
Thursday, January 22.
.
For the benefit of the policyholder himself, it is much
be desired that the increased flow will go into nhe
lhe
nomic'doldrums and
.
savings forms of life insurance rather than into
plunge of the Federal Reserve Board Index
of Production and the rapid increases in
unemployment
which took place during the last half of 1957 and
early
1958, according to all previous precedent, should have
heralded a rather long period of eco¬
new
in
to
President
The swift
There should be less starting up expense charges for
years
SISTO
Barium Steel
administration.
omies in production and
A.
of the Board and
.
im
the
loss; ratios
HHr
Bryan
E.
Smith
a
v
-
•
"
of
automobile,
fire lines.A
number of companies will also show
general
liability and
reduction
earned
of
expenses
premiums.
As
incurred
the
to
leading
of' workmen's
writer
compensation for more than '20
the operations of our own company tend to reflect
changes in the level of the national economy. During
years,
the
last
quarter of 1957 and the first of 1958
trace the effect of
rolls.
sion,
of
reduced
Now-that the country is emerging from the
we see.
this,reflected in
an
compensable accidents and
volume
trend.
from
In
this
common
source
with
could
we
employment and lower
will
pay¬
reces¬
increase in the reportings
know that the premium
soon
resume
others who write
its
upward
large and
growing amount of automobile insurance, the 1958 re¬
sults reflect, in part, the rate relief granted. During- the
year, some 35 of the 49 states have promulgated, ap¬
proved or permitted automobile insurance rate increases.
a
Volume
Inj
189
some
Number
The Commercial and Financial Chronicle
5814
states where increases are badly needed, how¬
ever, requests
hjCJne of the most serious problems facing the industry,
subject of concern to the
entire nation. In the fire and casualty field'the ravages
f
that of inflation, is properly a
,of -inflaton
are
manifest in many ways.
Automobile re¬
costs reflect the higher cost of parts and labor,
injuries reflect the increasing charges for medical and
hospital care and disabilities which produce loss of wages
reflect
higher wage rates.
As inflation becomes an
"accepted" way of life there is also a tendency on the
pair
growing network of catalog order offices maintained
the industry, the catalog repre¬
sents a great department store in the home, open 24
hours a day so shopping can be done in leisure time—
with no need for baby sitters, and no parking problems.
With
strong trends anticipated in all major sectors of
the economy and with excellent consumer acceptance of
mail order merchandising, 1959 should be a banner year
industry cannot
the
of
part
orous
long
remain
it
if
economy
a
is
healthy, vig¬
obliged: to
pay
tomorrow's losses out of last year's premiums.
^ Another problem of mounting
concern to all responsi¬
socio-economic consequence cf the
bly people, is the
Chairman
of
From
of
All this is
ties
nation's thoroughfares.
sion
of
t..e
promises to be
an
vention, careful underwriting and efficient operation all
which combine to provide insurance at the lowest
of
M.
..
J.
SPIEGEL
Chairman, Spiegel, Inc.
..
At this
time last
year
there
v
>
considerable
was
;
earlier
loss
will have
equaled
performance.
in
that
so
,
,
most
or
merchants
exceeded
1957
,\
look
in
ceptions,
1959.
With
virtually
all major segments
no
ex¬
of the
are expected to move for¬
1959, with the aggregate na¬
tional output attaining a record level
economy
ward in
J.
M.
by the fourth quarter of the year.
Consumer spending is expected to
be one of the principal factors con¬
tributing to improved business in
Spiegel
1959. There are
a
number of
in
the
economy
by consistently
increasing his
adjustment,
one%
total
consumer
buying
declined
less
than
from the peak of 1957 to the lowest point in the
recession
period, and for 1958 as a whole, consumer ex¬
penditures are estimated to exceed 1957 by approxi¬
mately $7 billion.
The decline in the sale of durable goods which marked
first half of 1958 was halted during the last six
months, and Spring 1959 should see a more normal buy¬
ing pattern in the allocation of the consumer dollar
among non-durables, durables and services.- With dura¬
ble goods moving, employment should increase suffi¬
ciently to provide jobs for the growing labor force and'
;
the
•'reduce
a normal level by the second
Wage rates will continue to rise, al¬
though there are indications that pay raises without im¬
proved productivity will be more difficult to obtain.
Higher social security and pension benefits will boost
the incomes of the growing senior citizen group. These
•factors will combine to augment personal income in
1959—and while income taxes and savings will absorb
half
of
of the increase, the remainder should
significantly above the 1958 level.
-ty. •, v,
Despite present arid prospective levels of personal in¬
come, there are still many indications that consumers
are
willing to buy only when convinced that they are
getting low prices and good values—and that they are
directing their buying power more to necessities and
less to luxuries than heretofore. Christmas trade, "while
a
nominal share
be
brisk
in
the
mail
order
industry, found such things as
toys and luxuries falling behind while the greatest sales
increases were made in clothing and home staples.
The mail order catalogs for Spring are priced sharply,
with; the over-all average price level lower than last
Spring. In our Spiegel General Catalog for Spring, a
book offering some 40,000 items for home and family, the
over-all average reduction ranges from 2 to 2J/£% under
Spring, 1958.
.■-*
•
- The mail order
.-low
industry, established as the traditional
price leader, also continues to offer the most con¬
venient
the
shopping services for
customer shops by mail,
families. Whether
by telephone through
many
or
evidence that
recession
the
of
bottom
reached in
or
and the sharp
considerable
is
was
industry in late April
our
May, and that
a recovery
has been
of
areas
would
are
business,, however,
our
be
it
mistake to say that we
a
yet back to
the levels reached
Despite this,
in 1956 and early 1957.
ing in recent months to indicate that
our
industry's total factory ship¬
ments
reached
approximately $7.8
quality.
tronics field, orders have been rising
after reaching a low point in the
impairing
job—without
The
sales
force
with
new
was
its
strengthened
incentive—to
supply the
backing needed to do the job. Most
of the American economic scene appear united
aid
and
that
thinking
balance
on
markets
and
experience
the
has
been
On the whole, the fat has been trimmed and the
good.
organizational muscles are in better shape than ever to
meet the needs of the future.
requires a different focus. Nineteenmanagement reduce overhead to its mini¬
mum
and build its sales forces; 1959 will see manage¬
ment—in the face of rising costs—fight to maintain that
level of overhead despite a boom in sales. The prize for
The
its
new
year
saw
management will be a sorely needed stimulus to
profit margin.
toll for failure to toe the economy mark will be
The
In 1958
paid in profits.
a
poor
profit
year
was
antici¬
pated. The stance was toward the future and thought in
terms of reshaping the operation for the coming recov¬
the close of the year, managements
acutely conscious of the fact that this was not a
towards
But
ery.
billion in
In
Robert C. Sprague
»single year resulting from the recession, but a three-year
that
trend
is
product of the recession, inflation and
a
soaring costs.
profit margins will be watched with the greatest
Now
attention.
By maintaining the economies effected in the
past year and taking advantage of the present economic
health, wider profit margins may be attained. Acutely
aware of the dangers of inflation, most enlightened man¬
' "
tion.
recognize that much of this increase will be in products
systems, equipment, or parts — which are
basically new and will require extensive specification,
tooling, and other pre-production work.
the
In
earnings of the Hammond Organ Company
record levels in the year ahead as the
pushes
living
standards
higher and intensifies consumer desire for leisure time
products.
Like all companies that
are contributing to the growth of the
Hammond will benefit
standpoint of increased
profit.
The organ has won the acceptance
and
approval of the public.
No
longer is it considered an instrument
solely for use in the church.
The
economy,
the
from
volume and
American
homeowner
has
the
that
ered
his
makes
easy-to-play
life
more
There
a
was
we# looked
as
a
production dropped to about 5V4 million from 6.4 million
in 1957, while the situation in radio was adversely af¬
fected by the weakness in the automobile market. -Pro¬
duction of auto sets dropped to about 3.5 million from
5.5 million.
Home radio sales probably declined to 8.5
million from 9.7 million, so that the total radio market
was only 12.0 million against 15.2 million in
1957.
There has lately been some
growing population with technological advancements
greater leisure time, the organ is becoming increas¬
ingly important as an integral part of the home, the
a
and
station, etc.
Research indicates that less than 1% of
the
United
States have
organs.
the 50,000,000
This market
potential that is very, very substantial. In the
past, the large bulk of Hammond Organ sales has been
to homes, and it will continue that way in the future.
Hammond has laid the groundwork to handle the an¬
enjoys
a
ticipated growth of its business with sufficient capacity
to meet a sizable increase in demand.
Equally signifi¬
has the finest dealer organization of
manufacturer in the United States.
without saying that a quality product at a fair
price is paramount in the growth pattern of any com-
cant,
any
our company
organ
It goes
pany.
In
the light of our
projections for the future, it is es¬
return to the present and examine Ham¬
mond's current fiscal year which ends March 31, 1959.
sential that
we
optimistic that earnings for 1958-59 will
equal the $3.07 net per share of the like period one year
We
ago.
are
very
improve.
how much the 1959 total may
entertainment market
in importance is what is generally referred to as com¬
mercial and industrial electronics.
Despite a drop in
computer sales from $275 million to perhaps $225-250
million in 1958, total volume in industrial electronics
probably rose modestly from $1.2 billion to $1.3 billion.
The outlook for 1959 in this field is very good, since we
can expect a resumption of the growth of data-process¬
ing equipment, and there should be a good market for
communications equipment on the part of the airlines, as
well as some general recovery in the capital goods sector.
grow
luxury item.
it is generally agreed that
Stanley M. Sorensen
goods and services that were once
considered luxuries no longer bear
this connotation. Under a social pattern that combines
in
generally,
the
electronic
parts producer,
the mixed trends
major end-product markets made 1958 a
difficult
part of the coming year sales of parts will be in a strong
uptrend, which I fully expect to continue into 1960 and
beyond. The market for replacement parts continued to
and
Today
homes
1957
strengthening in demand
and while I believe we can
radio-TV sales in 1959 to regain approximately
rate sometime during the year, it is too early
appliances
and with the exception of semi-conductors, total
sales of parts and tubes appear to have been slightly
below
1957.
riowever, indications are that the latter
organ
church, the school, the television-radio
very
year,
day when the organ
upon
a
disappointing year in all segments except hi-fi, which
been enjoying a boom all its own.
Television set
For
enjoyable.
more
;
1958 was
has
in the
discov¬
pleasant
home entertainment market,
Closely approaching the home
reach
economy
r*
•'■■■:
—whether
to say
President, Hammond Organ Company
booming
While
year.
good for further growth in military electronics. While I
believe our industry can look for increasing military
business over the next several years, I think we must
the
nation's
the
of
elec¬
electronics shipments in 1958 probably
came to
about $4.1 billion, compared to $3.9 billion in
1957. With prospects for an increase of at least $1 billion
in total defense spending in 1959, the outlook appears
look for
should
months
military
Total military
gent manipulation of costs and sales.
Sales and
important
months, the
effects of the earlier cutbacks are still being felt because
of the rather long lag that typically occurs between the
placing of an order and the initiation of regular produc¬
for
SORENSEN
1958.
deliveries have also risen modestly in recent
agements will attempt to pay dividends through intelli¬
STANLEY M.
the
early
donnauenU
observers
in
every
open
M.
A.
unemployment to
the year.
the
economy
place in defense procurement.
There
an all-out effort in sales
promotion, as well as in paring
Every phase of operations
was studied to get down to the barest
structure needed to accomplish the
"
purchases of goods and services—even during the three
postwar depression periods. In the most recent business
taken
overhead.
to
element
had
there has been sufficient strengthen¬
a
reasons
expect consumer spending to rise substantially over
1958. The consumer has proven to be the most stable
that
and
became
contrast
to a year ago,
sentiment among the
nations
leaning
economists
today
ranges from guarded to strong opti¬
mism for the general business out¬
snarp
the prevailing
cutbacks
underway since that time; in several
every
uncer¬
tainty in the prospects for retail trade in 1958. Although
sales lagged somewhat in the early part of the year, the
recovery in recent months has
more than offset
this
oping recession in the general
composed of
fiity-eight
V
possible cost.
SPRAGUE
two-pronged attack
agements made
improvement
during 1959 should reflect the general business upturn,
along with improvement in underwriting, expense con¬
trol and general operating results.
Liberty Mutual will continue to emphasize loss pre¬
C.
Early in 1958, the electronics business was headed
downward rather rapidly under the impact of the devel¬
During 1958, the corporate com¬
munity was absorbed with the prob¬
lem of weathering a sharp recession.
In the face of falling markets, man¬
exten¬
witnessed in the latter half
of 1958. Not a spectacular resumption of boom propor¬
tions but a gradual advance in the recovery under way.
This will provide the necessary background for fire and
casualty companies to consolidate and extend the under¬
writing trends indicated for 1958.
Mutual companies
prospects.
tention than the others.
/.{
"
would
aspect seems to require more at¬
one
important, but the final answer to the problem
the demands of an informed and aroused
The economic climate of 1959
mist
always of concern to the chief executive officers
of an organization.
But each year,
are
public which insists that the necessary reforms be insti¬
tuted to remove the irresponsible and unfit drivers from
the
a continuation of the
growth of business. Only a confirmed pessi¬
seriously
doubt
the
nation's
long-term
Every prevailing sign points to
dramatic
President,
Board and
year,
await
must
the
management's problems change
little in kind, but a great deal in focus. Sales, production,
financing—all the varied areas of the company's activi¬
to
year
the
that
-
Chairman of the Board, Sprague Electric Company
Botany Mills, Inc.
increasing frequency, and severity
automobile accidents will be brought under control
end
the
improved
quarter are good.
ROBERT
SONNABEND
M.
A.
ever-increasing toll on this country's highways! Insur¬
ance companies are doing much to make drivers safety
conscious and
to enlist the aid of highway designers,
automotive manufacturers and law enforcement agencies
to
have
we
sales prospects for the final
margins, and factory
our
for mail order retailing.
part of judges, juries and industrial commissions to lib¬
eralize their awards for damages sustained. The private
insurance
This belief stems from the fact that
the
by tne major firms in
have been denied or delayed.
59
(455)
last year, reaching a total of
increase in 1959.
about $950 million,
and should again
The market for
semi-conductors of all types continues
rapidly year by year, with total transistor sales
in 1958 approximating $100 million compared to $70
million in 1957 despite significant reduction in prices.
Data-processing applications now represent more than
one-third of the total transistor market, despite the rela¬
tively high cost of this type of transistor today. Cost
reductions brought about through the use of mechanized
to grow
production techniques may well
result in still further
gains in transistorization of data-handling
military as well as commercial.
equipment,
Nineteen-fifty-nine should be a much better year for
industry, providing we can meet various continuing
challenges to our skill and ingenuity. There will cer¬
tainly be a continuing demand for higher reliability in
electronic equipment, which fundamentally means more
reliability in the parts from which it is assembled. Re¬
cent emphasis on miniaturization will continue, as will
the search for materials and packaging techniques to
our
devices
operate under severe
and vibration. I look
confidence that we can meet
to
permit
electronic
stresses
from temperature, shock
forward to the future with
these challenges
successfully.
Continued,
on page
60
CO
(456)
The Commercial and Financial Chronicle
Continued
from
made of
59
page
plastic faces, interiorly lighted (customarily by
lighting) and generally housed in a metal
Color, light and various elements of animation
Thursday, January 22,
...
ARTHUR
1959 |
STEUDEL
W.
fluorescent
J.
STEELMAN
E.
case.
officers
The
and
directors of the Koehring Company
operating earnings in our industry will
believe that 1959
much
be
search
of
improved
activity indicates that there is
contracts
for
awarded
construction
at
least
the
should
be
a
sufficient backlog
demand
equipment through
first
half
good.
We
of
next
year
million total in 1958.
be
generated
sales
mestic
manufacture,
we
built-in
indicators
some
of future demand,
One
of
divi-
our
backlog many times as high as it was 12 months
ago, high enough to virtually assure good results through
a
the first half of 1959.
When highway construction is ac¬
celerating, as it is, the demand for this equipment nor¬
mally precedes demand for paving equipment manufac¬
tured at another of
divisions which is
preparing
relatively high level of shipments next spring.
division, a maker of machines used to dig
trenches for .underground cable, sewer and water lines,
posted a dollar sales increase of 24% over 1957. This in¬
for
our
now
a
Another
dicates
to
us,
expanding housing activity, and most important
the desire and need of contractors to tool up to
meet demand.
We have
Canadian plant that supplies, and is affected
One is paper mill machinery, which is
a
by, two industries.
temporarily at a virtual standstill, as is expansion in that
industry. The other is construction machinery. We an¬
ticipate" that that market should be improving similarly
to the U. S.,
but at
slower rate.
A chart has been published by the Conference Board
that is in agreement with our projections. It forecasts
higher 1959 public expenditures in all categories, with
the largest increase expected in highway construction.
a
Private construction activity is expected to be
up less
sharply, with a 10% increase in residential construction
partially offset by a somewhat lower level of industrial
expansion.
Actually, in the postwar market, construction activity
has been relatively immune to the three recessions of
1949, 1954 and 1950. Swings in equipment sales were
wider than contracts awarded,
however, reflecting the
effect
of
optimism—or lack of it—on the part of
tractors.
The attached chart shows these
lew
a
to provide a strong
their
present
are
trend,
demand
an
in
are
a
known
interesting
.for the
year
manufacturing
and
have recently had the experience of receiving
largest order we have ever received and, inciden¬
tally, we understand it to be the largest individual order
that has
has been
ful
as
our
radio
also
been placed by one of the top American
the start of their 1959 program. The same
experience with a major and very success¬
even
breweries,
barometer
ahead.
for
Because
the
we
can
a
of
outlook
are
an
which
of
too
quite
as
business
adjunct of the
advertising
business
and
because
most
major concerns set up their
advertising budgets at least a year
ahead of time and,
furthermore, since
most concerns will
budget for ad¬
vertising based on their own business
outlook, we can readily feel whether
these
feel
concerns
"bullish"
or
"bearish" about their
business ex¬
penditures for the year ahead.
We are in a
business of manu¬
facturing indoor and outdoor illu¬
minated signs of a permanent
which
are
consumer
in
are
A.
the
A.
products
turn
sold
whose
at
outlet,
the
advent
of
over areas
self-service in supermarkets and
large retail outlets, producers of
have
had
lean
"silent-salesman"
clerk who is
on
point
which
of
takes
sale
the
consumer
advertising
place
rapidly disappearing from the
of
goods
as
the
sumer
merchandise,
all,
are
are
as
we,
we come
such
single promotional item,
as
those
produced
by
or
business boom during
1959 which in many fields will
undoubtedly prove to
be record breaking.
We can only hope that no unfore¬
factors
seen
will
with what to
us
be
a
encountered
foretells
a
that
busy and
very
will
interfere
prosperous
1959.
STEINKRAUS
Chairman of tlie Board, Bridgeport Brass
Company
The
past
year has seen our industry turn the corner
recession, beginning in the second quarter and
continuing gradually upward. The outlook for 1959 is
of
for
better year on sales, but with
uncertainty as to profit levels,
due to keen competition both domes¬
tic and foreign.
a
some
We
are
brass,
principally in the
and
business.
aluminum
tube,
mill
We produce
pipe,
copper,
products
copper,
are
on
appliances, office equipment, guided missiles and the
plastisols led the upward swing.
new pigments and a number of new chemical
products from our pigment, color and chemical division
are finding a ready market.
Introduction of a new line
of acrylic lacquers has helped stimulate sales for our
automotive division.
Improved demand has also been
felt in the metal container phase of our activities result¬
ing in our production reaching an all-time high for the
believe
'
are
encouraging trends.
that
Williams'
1959
be the
They give
us
reason to
greatest year in Sherwin-
93-year history.
Research has played an outstanding role in our
opera¬
in recent years.
It has been responsible in large
measure for
continuing growth. Sherwin-Williams will
expand its research program in the year ahead, confi¬
dent that the
materials being developed will further
new
broaden the market for
We
further
are
paint and chemical products.
our
backing
confidence in the future
plant expansion and improvement program in¬
volving expenditure of several million dollars during
with
our
a
A
plant at Vancouver is now moving into
a warehouse at Winnipeg is expected to
operation next spring. Our new barium monohydrate facilities at Coffeyville, Kansas, should be on
stream by the time this article is
printed.
new
be
in
Since
practically everything made by man requires a
or beautifying coating, the
paint industry is
protective
itself
an
excellent barometer of general business trends.
current ~ experience, then, 1959 can be
Judging from
expected to be
a year of further economic
progress. Not
spectacular, perhaps, as some we have known in this
decade, but certainly a year of sound growth and devel¬
so
opment.
sheet, strip, rod, wire,
industry
will
tions
EDWARD
L.
TEALE
President, New York Shipbuilding Corporation
and
basic materials.
This
Arthur W. Steudel
the
thousands of other products of industry—our new Ajax
water-reducible insulating varnishes and developments
and
special aluminum
large forgings in a
multitude of alloys, as well as in the
extrusions
gains.
—
such varied items
brass,
New peacetime
sales, earnings, backlog and employ¬
our corporation dur¬
ing 1958 reflecting the sound program of forward plan¬
ning in effect over the past several years. With the award
ment records were established by
hard hit begin¬
ning in the second quarter of 1956
when the international price of
cop¬
was
begin to slide from
an
of
the
construction of two
10,210
deadweight ton freighters for Ameri¬
can
Export Lines early in the year,
all-time
high of 55 cents to less than half of
that
figure.
It naturally followed
delayed new purchases and lived off
their inventories for as long as
they possibly could.
Beginning in the second quarter of 1958, the price of
copper had apparently reached bottom
and
began to
show a little sign of strength.
In the meantime, cus¬
of two
tomers' inventories
U.
Ihe
corporation's backlog stood at
$280 million and assured a high level
activity through the next two
years.
Subsequent award of a $49,886,594 contract for the construction
customers
our
purchasing their
of
were
very low, and they had to start
immediate requirements; at the same
to
which
we
construction
industry, particularly residential, which
we
believe will continue
to be good; and by the electrical
appliance industry, which shows signs of definite im¬
provement in 1959.
wherever the
ductivity,
or
There is also
an
materials,
Defense
we
have
some
important
items
in
Program, particularly with the Air Force
the?
and
that the Defense Program will continue
to be
strong in 1959.
In summing these and other factors
ness, we expect that
1959 will be
affecting
our
busi¬
decidedly better than
cannot at this time
estimate what our profits will be.
They have been rising with the increased sales of recent
months, and we expect that, if the general
economy
shows
further
accordingly.
improvement,
our
order books.
the
above
construction
of
include, in addi¬
four
the
vessels, the
HAWK,
KITTY
the Navy's first aircraft carrier to be
armed
with
guided missiles;
the attack submarine
BONEFISH; three missile firing destroyers; the world's
first nuclear-powered
passenger-cargo vessel, the NS
SAVANNAH; four 45,500 deadweight ton commercial oil
tankers and
reactor pressure vessel for..the world's largest all-nuclear
industry using
Navy in parts for airplanes and guided missiles. Indica¬
are
Teale
major ship¬
.contracts
con¬
In addition to these
large segments of
our
L.
to
of
conversion
important factor.
strength, durability, specific gravity,
beauty of the metal is
our
number
and
one of 35,000 deadweight
tons; the conver¬
light cruiser LITTLE ROCK into a guided
missile firing vessel and the construction of the nuclear
wide range of uses
a
the
Current contracts
tion
is
affected by the automobile
industry,
expect will be better than last year; by the
16
building
on
Edward
Our business
missile firing frigates for the
S. Navy later in the year served
to reaffirm this position and
brought
time providing a small increase in their
inventories.
This brought our business to the
point where, in the last
quarter of 1958 it showed a definite improvement, and
the prospects for 1959 continue to be in a
gradual up¬
ward direction.
1958, but in view of present competitive price
situations,
which
materials used
the
we
company,
helped to augment the
Among
industrial
finishes
production, and
retail
materials,
ties
1959.
HERMAN W.
Point
in permanent materials
our
to the conclusion that they
anticipating
the
customarily used
a
products such as our Loxon
paints and the Dexall line
of painting accessories and special¬
new
These
company,
scene.
of sale material either comes in
nonpermanent
such as lithographed paper which
is
for
where
the
of trade sales paints—those
by painters and homeowners—
quarter.
manufacturing
With
this experience with a
cross
section
of
the
nation's economy, coupled with meetings and conversa¬
tions with many of the nation's
top producers of con¬
tions
other
to
level.
signs are used either on store
exteriors, or within the confines of
either in windows, on counters or
backbars, or hanging as superstructures
the advertised merchandise is
housed.
With
products
the retail
Our
Steiger
retail
nature,
by manufacturers of
used
fiscal
over
area
used
and
television
sustained,
serve
current
our
Particularly significant is the fact
this improvement is being felt
every phase of our business.
In
major producer in the soft drink bottling
and
with
industry.
that
business
yet in itself, it
of
Several
and aluminum
President, Tel-A-Sign, Inc.
by the petroleum
We
per
We
area
the
con¬
STEIGER
<|
generally ,j
in
already assembled
be
that business
may
that
year of major spending in this
industry.
H. W. Steinkraus
little is
same
as
except for seasonal declines, during the second half of
A.
months
sales increased 1214%
quarter in 1957.
However, late in 1958, many of them began
working almost feverishly to complete the crystalization
of their sign program and we feel that 1959 will be a
swings, and the
should
It
up.
masonry
the year.
A.
three
year,
using our modern plastic faced interior illu¬
minated signs for station identification.
However, it
seemed that universally an
austerity program took place
on the part of
practically all petroleum producers whose
product is sold at the retail level. Programs literally
If contract awards continue in
this
the way
on
win-Williams, we are already expe¬
riencing that trend. During Septem¬
ber, October and November, the first
the
demand for construction equipment
in the first half of 1959.
This industry
now
take a while for the
entire economy to get back into high gear, but we can
look
forward with confidence to increasing business.]
activity throughout 1959. At Sher¬
in
"lag effect" of awards compared to equipment sales.
We feel confident that the forces
in order it seems that with
be little doubt
can
again
stood still.
Jliiicn R. Steelman
a manufacturer of cement batching equipment, had
unusually strong last half and entered the new year
with
are
commence
sions,
an
When cut backs
only in the last two or three years entered upon
phase of rehabilitating and enlarging their stations,
revitalizing and modernizing their trade-marks and as
such, in 1957 most major oil companies were ready to
equip¬
have
we
of
This
is
has
excellent year for both.
Because of the broad line of
ment
sales
There
an
as
a
construction
about one-third less than 1957 which
an
in
advertises.
ticularly triid in the petroleum industry.
equipment divisions.
Foreign sales of construction equip¬
ment and sales of our hydraulic press
manufacturing division are expected
to continue close to the 1958 pattern;
was
serves
exceptions of concerns who hope to make up
drop in business by an increased advertising
budget, that the average firm will cut back on their
spending for promotional material. We found this par¬
The increase is
our
sign
the
principally by do¬
of
such
as
attraction to its location in expecta¬
an
increase
unit
the
the particular item which
resulting increase in sales
has been proven by many and various surveys.
In
1958, we felt the resistance on the part of the
average purchaser to spend money for promotional ma¬
the
for
$45.5
a
of
that
so
catcher and
eye
tion
terials.
projecting
are
million, compared, to
$56
to
that
re¬
1959 sales close to the 1957 level
our
of
Our internal market
1958.
over
introduced
are
President, Koehring Company
President, The Sherwin-Williams Co.
profits
will
reflect
sion
of
the
commercial power generating station being-constructed
at Dresden,
Illinois, for Nuclear Power Group, Inc.
was the laying of
May 22, of the nuclear ship SAVANNAH.
Scheduled for launching in 1959 and operation in 1960,
this pioneer atomic ship heralds a great peacetime era of
nuclear, merchant and- passenger fleets and indicates
New York Ship's future role in the fast
developing
Atomic Age.
Of perhaps equal significance was the launching on
Nov. 22, of the attack submarine BONEFISH forThe
U. S. Navy.
Of a new design built for extreme speed
and maneuverability while submerged, it is the first sub¬
Of especial significance during 195ft
the
keel
marine
on
ever
to
be
constructed
ranks with the SAVANNAH
tial at the yard.
at
as an
New York
•
t
With 10 vessels under construction
ing the
year,
employment
rose
Ship and
index of future poten¬
or
.
conversion dur¬
from 5,600 at the end of
Volume
1957 to
The Commercial and
Number 5814
189
Financial Chronicle
This rapid rise in em¬
10,500 at 1958 year-end.
ployment resulted in weekly payrolls in excess of one
million dollars flowing into the local economy and con¬
tributing substantially to the general overall prosperity
of
the area.
Early in the fourth quarter of 1958 the combined ap¬
parel and textile industries recorded a 5 V2 % gain in
production index. New order bookings indicate con¬
tinued improvements in both fields during 1959. Reduc¬
tion of inventories and firming of prices on many items
are
We a.t New York Ship look forward to the year
with
of
ahead
The facilities and personnel
confidence.
renewed
President, The Life Insurance Company of
|
The outlook for improved
has
pend very
look
greatly
life
insurance
:
The
life
the
of
big
competition
insurance
surrounding
certainty
Income
treatment.
Tax
the
life
New
A.
TOMPKINS
•
Through constant research in cellulose technology and
increased market development activities. Avisco fibers
gaining new markets with a tremendous
the general business recession during
the first six months of 1958, so many
remarkable
research and develop¬
ment advances were made in prod¬
ucts and new uses that we of Amer¬
ican Viscose view 1959 with a great
impact. Despite
deal of
optimism.
of
One
the
ity will increase, should, despite in¬
creasing costs, enable banks to main¬
of
tain
important
most
in¬
Tufted
For
home
Home
Furnishing
building
demand
Taylor
President, American Viscose Corporation
are
Products
for home furnishings, in which Avisco fibers
play a constantly bigger role. New carpet fibers with
improved performance characteristics were adopted by
a number of leading tufted manufacturers. Super-L, the
staple fiber engineered by American Viscose especially
for this market, demonstrated its superiority over or¬
dinary carpet fibers during the year as reflected by an
increase in sales rate of over 300%. This product is now
being ordered in solution-dyed form in a variety of pop¬
ular Colorspun shades.
Tyrex
Development Makes
News
A
revolutionary new Viscose yarn, the result of
search of five leading man-made fiber producers,
was
introduced
tires
ing
in
several
yarn
automobile
and
months
cord is
now
re¬
.
developments of recent date
been the completion of a major
has
change in the operating framework
of the Company. For many
years,
American
purely
along
all
Viscose
sales
the
was
organized
functional lines with
responsibility of one
report¬
ing to another executive, and so on.
This type of corporate structure was
executive, all manufacturing
Gerald
S.
Tompkins
long as the Company con¬
centrated most of its attention on the textile industry.
logical
as
growth of the cellophane end
However, the exceptional
plus promising development
products,* prompted the decision to reorganize
of
the
on
a
in fiber
business,
activities
divisional basis.
Fabric
Nonwoven
the
farmers
increased
in
this
a
result, two major, integrated
created—the Film Division and
operating groups
the Fibers Divis¬
and General
manufactur¬
supported by specialized engineering and
each headed up by a Vice President
Manager. Each also has complete sales and
ion,
necessity
sound
ing facilities
product technology.
assures that all
receiye more con¬
centrated and specialized attention, both in the manu¬
facture and sale of present products for current applica¬
tions, and in intensively searching out new uses and
markets for present products as well as detailed investi¬
gations of new products entirely. Beyond this, the clari¬
fication that has now resulted from the creation of
separate product groups will also make possible more co¬
ordinated assistance to the Divisions by such important
staff functions as research, engineering, and marketing.
This
organization
new
functions
structure
within each Division will
Usage
Up
new
experience to date, we are certain
that this
for
continued
1
operating concept represents a major ^tep forward
that will serve as a solid foundation for the future
field.
products also offers a substan¬
example, last spring a prominent man¬
ufacturer introduced a super-strength paper reinforced
with rayon filament scrim. End uses include industrial
wiping towels, table cloths, napkins, aprons, and head¬
rest covers. Strong and economical, scrim is made of
Avisco fibers also expected to find an important mar¬
the reinforcing component in heavy-duty, multi-
as
bags,
as
well as in combination with plastic
films.
—one
growth and development
of American Viscose Corpora¬
tion.
strengthen operations and customer service. Production
and sale of all fibers were consolidated under one new
division;
anc£ the sales function itself reorganized to
give added emphasis to product applications as well as
over-all merchandising and new product development.
Technical and research groups have broadened activity
in the anticipation of market needs as well as in the
evaluation of
The textile
third
conditions
under
in the
the depressed
which It entered the year. This im¬
quarters of 1958 from
well into 1959. Optimistic forecasts
residential construction and passenger
sales are encouraging for textile prospects in
petus should carry
regarding 1959
automobile
vitally
important home furnishings and
tive markets.
was
development
the opening
on
Avisco
cellophane
during
of the Marcus Hook, Pa., cello¬
automa-
work
and
adherence
to
TITTLE
Michigan's current economic recovery is expected to
its upward trend in 1959, particularly in the
area where an average rise of 10%
is predicted
continue
phases of business and industrial activity.
While there may be some leveling
.
off in the last half, business and
industry in general look forward to
considerable
improvement over
During the past year, average
monthly employment in the auto¬
mobile industry dropped to 295,000
a
1958.
—the
lowest
level
since
1948
and
a
decrease of
100,000 from the previous
year.
Throughout the state, average
monthly unemployment reached
406,000 or 13.9% of the total labor
force, compared with an average
unemployment figure of 199,000, or
6.8% of the labor force, in 1957.
Despite
Tuttle
Henry
these
adverse
circum-
cumstances, Michigan Consolidated
Gas Company continued to record
important gains during 1958 in the more than
Michigan communities which it serves.
The
Company's estimated total sales for the
120
year
10% over the record 159,247,783
in 1957.
In a period of general decline elsewhere, Michigan
Consolidated added 4,700 customers during the first 11
months of 1958, raising its total number of customers to
increased
more
than
cubic feet of gas sold
851,489
as of Nov. 30.
further
testimonial
to
the
rapidly growing
popularity of natural gas as a fuel, the utility added
45,804 space heating customers from January to Novem¬
ber 30. That brought the Company's total heating cus¬
As
a
tomers
and
to 577,802, or approximately
commercial buildings
65% of all homes
in its service area.
Two affiliated pipelines link the area served by Mich¬
igan Consolidated with the nation's largest gas fields
in Texas, Oklahoma and Louisiana.
Huge underground
storage fields in west central Michigan further enable
the Company to supply natural gas to a steadily expand¬
ing population.
For example, in 1959 the population
phane installation. This is the most modern cellophane
of the Detroit
plant in the world, with the largest IBM control system
increase of 1.7%.
in private industry.
This new Avisco facility processed
its first order late in the summer and will soon be pro¬
ducing
at
the rated
capacity of 50
million pounds
a
year.
lutionary polymer coated type for in-store packaging of
Improvements Seen
industry showed marked recovery
and fourth
major
1958
The introduction of Avisco REO cellopane, the revo¬
products and product ideas.
new
Industry
the
Cellophane Production Increased: New Wrap Introduced
A
During the nast year, a number of other organizational
changes were instituted within our company to further
hard
HENRY
company
Reinforcement of paper
wall paper
the
President, Michigan Consolidated Gas Company
for all
tial market. For
ket
From our
big
filtration
of
Detroit
potential in industry exists in
Fiber manufacturers, in con¬
junction with manufacturers and users of filters, have
in progress a number of extensive tests which are ex¬
pected to mean increased sales to this market. Com¬
mercial and industrial air-conditioning alone consumes
100 million square feet of filter material a year. In all,
more than 90 million pounds of material is used annu¬
ally for air and liquid filtration.
vast
advantage
banking principles.
fast-growing nonwoven fabric field offers a chal¬
lenging and almost limitless possibility for rayon usage.
American Viscose, the world's largest producer of cel¬
lulosic fibers, is now developing new and improved
fibers for a variety of nonwoven products. Hand towels,
wiping and cleaning cloths, and a number of other utility
fabrics were introduced during the year by a leading
textile manufacturer. Nonwoven draperies, table cloths,
and apparel interlinings also gained in market accep¬
tance. Another swing toward cellulosics took place in
surgical and sanitary products as new special fibers
were
developed for one of the largest pharmaceutical
companies. In this, as well as in other fields, Avisco
fibers have proved their advantages in quality and econ¬
Another
take
allotment thereby increasing their
demand for credit, and we also expect continued and
increasing pressure for term loans.
Consumer credit
should
reverse
the
declining
trend
which
carried
through 1958.
Unemployment was less severe in our area last year
than in other parts of the nation, and credit experience
was satisfactory.
While we anticipate no severe credit
difficulties for 1959, we will continue every effort tcT
thoroughly screen loan requests, properly supervise the
loans that are made, and insist on proper audit control of
borrowing customers. Continued emphasis on seasonal
loan liquidation will also be stressed.
The downward trend in deposits was reversed in 1958,
and we foresee a rise in deposits of perhaps 5% for 1959.
With most banks now paying the maximum allowable
savings interest we believe that the present growth trend
in savings deposits will continue despite intense compe¬
tition for the savings dollar.
We are optimistic for 1959 but realize the absolute
The
the
with interest rates
Indications are that
year
firm.
will
area
acreage
omy.
As
were
coming
holding
the
be¬
ternal
present
operating profit
Specifically, we ex¬
pect loan demands to increase during
Turner
Norfleet
original equipment
tires on all makes of
new
automobiles. This cord is also being used increas¬
ingly in the replacement tire market.
V
■
used
their
margins in 1959.
ago.
for
Tyrex certified viscose tire
predicted, 1958 was a year of
"profit squeeze," but the lessons
learned in expense control as well as
the expectation that business activ¬
activity—perhaps 100,000
home starts in 1959 than in 1958—will strengthen
more
Charles
gress will enact something of a more permanent nature
early in 1959 with which the business can live.
and films
As
the
Apparel
use
carryover,
1959 in a
moderately optimistic about the
coming year.
type
Increasing
un¬
our Federal
It is to be
S.
In
crop
enter
to be
markets—
ing Cotron fabrics, and others have indicated early plans
to do so. Colorful Cotron prints are now being marketed
in blouses, dresses, pajamas, men's shirts and underwear,
and children's playclothes.
hoped and it is my belief that Con¬
G.
Important
1957
will
position that a
This fact together with the
general business recovery causes us
mills, converters, and apparel manufacturers for
of research development. The most recent
achievement was the introduction by American Viscose
"Cotron," a new trade-name for blends of cotton and
Avisco rayon. Several leading mills are currently weav¬
this
facing the
is
business
in five principal
the
farmers
year ago.
fabric
men¬
among
companies.
imponderable
progress
have concluded
our area
much better financial
fabrics made of fiber blends reflects the enthusiasm of
increased
for
the
Blends
insurance
factors
two
look
above" I
keener
of
Continuing advances in the apparel field in the
during the year.
Because
and
and
enabled
favorable
de¬
the year.
I also look for a continuation of
the favorable investment opportuni¬
ties so far
as
debt securities are
tioned
stantially
the Company to consolidate our Viscose
manufacturing facilities at Lewistown, Pa., and
Parkersburg, W. Va.
sales during
concerned
by-products of a lean year, auguring
for the most part.
Fibers
such conditions
on
increased
for
part, the banks in
year. Deposits have shown a moderate in¬
profits held steady or slightly increased. A
good crop year has enabled the farmers to reduce sub¬
and
crease
the
reasons of efficency and economy, American Vis¬
recently closed its Roanoke, Va., plant. This action
view
TURNER
satisfactory
employment conditions and
sales
insurance
life
since
/and
For the most
a
apparel, home furnishings, automotive, industrial, and
packaging—will substantiate American Viscose's enthus¬
iasm for its products of cellulosic chemistry.
Virginia
1959 seems to me definitely
payrolls during
NORFLEET
61
President, The First National Bank, Memphis, Tenn.
For
cose
A
CHARLES A. TAYLOR
of
some
sound recovery
geared to meet the exact¬
this modern shipyard are
ing challenges which will present themselves. While 1958
was a year of ascending activity, the prospects for
1959
are
for the continuance of the high level of activity
reached in the latter half of the previous year.
(457)
fresh
red
meat
wrap
meat managers is proof
this
cost-reducing,
by
supermarket
operators
and
that research has paid off with
sales-building film.
Shipments of all Avisco cellophane types were up dur¬
ing 1958, in line with the trend to expand cellophane
packaging in every field, particularly baked goods and
fresh
produce. Shipments, in fact, were even larger than
during the record year of 1956.
As
in
area
is expected to climb to 3,906,000, an
the
past, Michigan Consolidated will pursue
possible to provide industry with adequate
supplies of gas. This fuel will play a key role in the
predicted 28% increase in passenger car production
during 1959.
Other Detroit area industries geared for a decided
upswing include non-residential building which looks for
a 19% increase and truck production which is expected
every means
to rise about 15%.
According to forecasts, payrolls in the Detroit area will
about 11%
over
1958.
Although activity in
general is not expected to reach the boom levels of
increase
1955-1957, the state's economy will enjoy a year of
outstanding health and vigor.
v
As an integral part of this growth, Michigan Con¬
solidated Gas Company pledges all-out support to the
Continued
on
page
62
62
The Commercial and Financial Chronicle
(458)
Continued from page
Some predict a tight money market by late winter or
early spring. We may even see a 4% Government Bond
in January or February.
Now, to return to the weather problem. Remember
two and three years ago when we had a drought and the
61
of
needs
expansion and progress,
In evidence of its
faith in Michigan's great future, the Company in 1959
will complete
plans for a $20,000,000 skyscraper office
building to be located in Detroit's new Civic Center.
Two of the country's leading architectural firms are
Technical
Memorial
Building at Wayne State University, St. Louis Airport and
the Penobscot Building, Detroit's tallest structure.
In addition to Michigan Consolidated, the new building
will provide quarters for other affiliates of the American
Natural Gas Company system, including the American
Louisiana and Michigan Wisconsin pipe line companies.
Overlooking the Detroit River—key link in the St.
Lawrence Seaway—Michigan Consolidated will occupy
a central position in the magnificent "Detroit Tomorrow,"
now beginning to emerge.
Center,
McGregor
•
the
weather
for the balance of the year.
and the average American
Their individual creations include the renowned Gen¬
Motors
then
and
things, then
will
the
control
carl w.
ullman
Youngstown,
Ohio
answers
Provided we stay out of war
wants to buy new cars and
in
regions
will
areas
turn.
did not keep pace with the up¬
Basic steel and the closely
automotive
industry
slo|v in participating in the
recovery.
This
influence
on
had
unfavorable
an
general level of business in
Valley.
A
favorable
portance
of
ness
is
our
factor
the
of
local
growing
trade
area
will
economists
show
modest
a
a
that
r.
United
Carl
that
W.
Ullman
of
tne
long range outlook re¬
mains good. They base their opinions on the
probable
government spending, the probable consumer spending,
total
new
construction and
inventory accumulation.
The recent recession, proves
again that with all our
studies and planning we cannot
fully control the busi¬
ness cycle. Because of
that, each inventory situation and
each proposed plant and
equipment expansion need to
be given the most careful attention.
carleton
c.
van
dyke
President, The Toy National Bank
and The
and
Trust
Co.,
Sioux
Farmers
City, Iowa
being the weather, and the
Congress. Bank deposits and loans,
closely related to the agricultural picture here
Sioux City and in our
surrounding area. The outlook
one
other the United States
etc.,
in
are
for
agriculture in 1959 is that the farmer will
receive
from 5% to 10% less income. The
year of 1958, however,
will show farm income about
20% ahead of 1957 and
represents the best net income the farmer has
had in
five years.
Look for lower prices
ties where heavy
on
supplies
There will be
farm products and commodi¬
are
already
on
to
creased expenses.
machinery items
.
Elastic
,
the
important
business
goods
activity.
trade
increases
output
reasons
as
have
it
as
does
to
wants
The
very
the
downtrend
Well, so
should have
a
penses will be
spending,
and
investments.
All
our
point to
1959
we
first
hall
ary
is
A.
as
taxes
to
of
an
on
being
good
a
due to
-•
the volatile
are
flected
pioneering
the
real estate
taxes, bank supplies, and machines all are
going up.
Sayings deposits will increase and interest
paid will continue at 3% for the
next six months. This
interest paid is one of the
big single expenses of all Sioux
City banks.
From the income
side, interest rates charged on loans
will hold steady or move
up during the next six months.
The New York and
Chicago banks are not loaned
up
comPared to a year ago.
However, most
of the other
city banks and
country banks are loaned up
a
place where some are
selling their loans to the
Federal Reserve Bank or their
city correspondent banks.
in
same
excess
ever
only
efforts to meet the
time
'
a
d.
government pro¬
are
avoid
_
in
,
of
troublesome
the
/.
•
total
-
there
is
As
continues.
-
does
economy as a whole. For these reasons somewhat
higher
volume of sales is
expected in 1959.
In addition, the
success
already achieved in reducing costs holds promise
that continuing efforts in this
direction will produce a
further gain in
earnings.
One especially
promising sales
area
is
that
of
resi¬
of
to
to
take
bilize
its
causes
our
creasing
.
.
-
-
■
:
-
,
and the iiarm
economy,
there
it
is- in¬
pressure on the government
the necessary steps to .sta¬
dollar.
There is growing
our
support
for
our
.Federal
Reserve
Board in the actions they are
taking
the
-
j.
'
»
can be .Stopped.
people become increasingly
more
aware
At
considerable
ours is a dynamic economy.
Moreover,
the principal markets served
by Carrier Corporation en¬
joy a rate of growth which is greater than that of the
warters
.stop inflation and it
as
Nevertheless,
n.
The American people and our
gov¬
ernment authorities are
showing a
rapidly increasing determination to
*.'■
capacity and
demonstrate that
an
.
volume
/■
to
in
.
,
to
of
-added
situation
•
recession difficulties of 1957-1958 and
the ravages
inflation have brought a
growing recognition of the
v
importance of thrift and savings/
•<
be
if difficult if. not impossible to reflect
costs in selling prices.
Ac¬
cordingly, corporate earnings are squeezed and it is
unlikely that there will be much recovery in the im¬
portant capital goods industry in 1959, or as long as
this
'
?'
.
With the' great improvement in economic conditions
our
country, life insurance faces a prosperous 1959.
If the
to
industry
The
contrib¬
inflation,
automotive
•;Vkt President, Bankers Life
Company,
:!"V -t
Des Moines, Iowa
■/
business
.
-
.Standards
orderly longof research, development and expanded
"r •'* < : ■
:
W ampler
-
Wanvig, Jr."
program
facilities.
resultant competitive pressures make
Cloud
O.
challenge of the tremendous .market¬
have; faith in the future and
faith we. gre continuing to invest
mounting costs.-
productive
C.
renewed
industries of which we are
growth in these industries carl be
by coordinated management team
ing opportunities ahead.
Another, important. factor is-the
continuing wage spiral which is re¬
poultry company
and
electronics
Continued
part.
.
go up, his profits
Watch 1959 for more
the
consuming public-
.returning to the "old-fashioned"
accomplished
for.
year
should, then there is bound
;some reduction in
of business..
--
and
where
This
unbalanced budget and its.
government is to
costs
point
We
attendant monetary problems.
it
year.
establish
rising
a"
the
undermined.
and
and
grams, the cost of which
uting to
the
particularly true in the competitive
a
employment,
machinery
more
plant
problems facing, the
economy which cause deep concern.
Much of the present high level of
be
new
quality and service is industry's challenge in 1959;
The American economy does not offer
an automatic
built-in growth factor for
any
industry,; and this is
Waite
basic
is
the
of
R.
recovery well under way and a more confident attitude
on the
part of consumers than was the case a year
ago.
business
from
should
of
pressures
emphasis
industry is entering 1959 with
certain
of
1959
year
Chairman of the Board, Carrier Corporation
are
will undoubtedly
momentum
tne
higher
cloud wampler
r
to
sales
fourth quarter carry over well
confidence
industry.
American
competitive
government, management and la¬
bor do not succumb to the inflation¬
■
indications
highly
if
outlays
new
the
period
the
The
seg¬
There will be added factors such
government
'ft
in
ahead.
satisfactory;saJes and earning levels
business
and
of increased
-e.
into
in
business, which is on the upgrade, will
demand a stepup in production. This
stepup will result
in the adding to the overall
spending in the country.
lower
fairly good year in 1959, however, ex¬
going up. Salaries, Social
Security taxes,
other
result
1958
of
or
to
rise
a
see
of
inventories is
Shelves are bare and
apparent.
trend
the
range
companies sell this type of financ¬
keep it themselves.
much for the agricultural
outlook. The banks
ing paper to a bank
on
one
direct
a
inventory
emphasis
on
increasingly vital for
battery and electronic in¬
dustries
period
in
poultry and feed organi¬
If prices
for
managers which should spark
for expansion.
chicks, the feed and guarantee the
6xchan§e for this, the farmer furnishes the
land, buildings, water, lights,
care, etc. If prices go down
limited by his contract.
in this field. The feed
both
do, population
impact on our
investors
inj indebtedness is
In that
with
Watch for new types of
financing called "integration."
Basically, the farmer has to decide if he
f.re.. ?a,nc\a!*y sound.
based
;
-
controls;. /Continued
these will be
Rising volume of business will
bring about an improvement in prof¬
its.
This in turn will bring confi¬
However, there
probably bring
oversupply.
he is protected
provided the feed and
is
President, Globe-Union Inc.
operating' efficiencies and
of the country's business;
will be up.
some
duction
Servicing the soft
we
their
above, the farmer will have in¬
Wage rates, taxes, insurance and some
as
:
used
are
wanvig, jr.
•
Corporation
products
Population grpwth.will be
the
'someone's hired man"
zations furnish the
Elastic
o.
Globe-Union 1958 earnings should
equal or exceed
those of 1957 despite an
approximate 10% sales decline.
This improvement in
earnings ratio along with a re¬
waite
Corporation
Our reasoning
following factors:
a
H°gs» eggs and poultry will
prices during the year due to an
addition
areas,
'c.
hand.
reduction in Government
payments to
farmers due to
canceling of the Soil Bank Program,
which gives him less income.
Feeder and replacement
cattle are to be priced about the
same as 1958 and the
market on finished cattle
should hold steady for the
next six months.
In
a.
times.
the
dence
The outlook for the
banking business for 1959 in our
trade area is
closely tied in with two of the most unpre¬
dictable things of
all,
The
prin¬
cipally by what is termed the soft goods trade. It is
the writer's opinion that 1959 will
prove to be a year
of gradual moving to higher
ground and has the prospect
of
gradual
moving toward boom
ments
Loan
solve them.
voter evidently is not concerned about the
Thus, 1959 should be as good a year as Congress
Vice-President, United
1959
improvement
and
factor to help
one
the weather will permit.
site for
distribution
think
further
nature
as
im¬
facilities.
Most
used
attractive¬
as
diversified industry and
-
is
In addition, I want to say that I am not worried about
1959, but I am worried about 1969 and the creeping
danger of inflation.
'
the
our
Second, the corporation has budgeted for 1959 a 31%
in
expenditures for research and long-term
development. For Carrier continues to believe that f tjie
success
of any
industry is dependent to a very large
extent upon new and improved
products and proposes
to
maintain its position of
leadership in those
American
and
indicated
increase
eventually lead to serious economic problems and
trend.
were
-
_
tal
The tremendous spending our Govern¬
does, not only on defense but in foreign aid and
supports, creates a serni-controlled economy that
inflation
,
First "the capiT
expenditure budget for 1959 call for the investment
of more money' than in
1958.
Practically all of Jhis
will be spent for the
improvement of manufacturing
facilities and more efficient
warehousing.
it has other
cession is halted.
and businesses share
related
as
substantial;
in the consumption of
electricity, as well
production facilities of certain other industries
the
Carrier's confidence in the future is
clearly
in two important
management decisions.
countries in the world. We cannot go through a reces¬
sion like last year and have Congress "prime the
pump"
which in turn creates more inflation the minute the re¬
increase.
equally in this
Employment in
certain
country just
our
• this
business will improve. ■ Cehtamly; the
in: population will produce a
very
served.
greatest economical problem
our
that
pated
growth
are
inflation which I feel is
ment
all
These
ar>d
up
The evidence is clear that indsutry will
in plant equipment which will make
possible better quality products at lower cost. Air coifr
ditioning is a vital part of such programs.
:
During 1958 there was a lull in the placing of orders
by utilities for power generating equipment and
by
other industries for
heavy machinery of the types made
by Carrier, including those of-the former Elliott Com-pany; merged into the corporation in 1957. It is antici¬
only two examples of how important a
place our Government holds in anyone's 1959 forecast.
Underlying the entire national picture, however, is
farm
did
nor
are
it
increase
recession
levels
starts
make
homes.
cost
productivity.
their products, they should enjoy good profits.
In the
Midwest, we feel that the farm support program can be
compared to the foreign aid program in that it helps sup¬
port the industrial East with their exports to foreign
business activity which started about
of 1957 reached its lowest point in April
the end of 1958 many parts of the country had
experienced a good recovery but the upturn, while sub¬
stantial, did
not
attain
the
premiddle
1958. By
lower
continue to invest
we
today. Inflation will ruin
The decline in
the
Housing
developments
Another important field which is
virtually -untapped
involves the air
conditioning of manufacturing establish¬
ments for the comfort of
employees and tneir greater
lands.
President, The Dollar Savings and Trust Company,
conditioning.
more
condi¬
should have another good year.
The industrial East and progressive South and expand¬
ing West all have their sectional problems just as we do.
Last year's recession helped create more efficiency among
industry as a whole, as companies watched overhead
expenses, etc.
This year with an increased demand for
new
Thursday. January 22, 1959
.
tioner using gas for both
heating and cooling, and com¬
parable in over-all cost to conventional equipment.
we
June
.
possible to air
Furthermore, the
existing homes market has scarcely been scratched.
^J^,
Carrier's position in the residential market is
being
strengthened by the addition in 1959 of an air
enjoyed prosperity, and then this last
had bumper crops and the rest of the nation
had a recession? National prosperity predictions, there¬
fore, do not necessarily mean that Sioux City will enjoy it.
My predictions lor this area will go up to the middle
of
air
product
condition
rest of the nation
year,
pooling their talent to produce the structure. For this
project, they are known by the combined name of
Yamasaki, Leinweber—Smith, Hinchman, Grylls, Asso¬
ciated Architects and Engineers.
eral
dential
recent
.
prevent
our
yond
L>.
IN.
Wariers
increase in the supply
and bank credit; be¬
rate of savines. There is
an
money
the
growing
pressure
for balancing
our
Federal
budget, even though it
a postponement of some
of the government programs which have been
inaugu¬
.
means
rated
an
increase in taxes
or
in recent years.
Our
government authorities, our economists,.our
our business leaders are all warning us
bankers, and
that the amount our government, and
can
spend on improving our capital
-housing, our roads, our factories, our
etc.) is measured by the amount of our
Any attempt to spend more' than our
results
in
inflation
and
as a pebple,
equipment (our
public buildings,
we
national savings.
national savings
destroys part of the value
of
Volume
oui! dollar. Savings are the life blood of our progress
and must be encouraged in every way possible as only
thus
-
of
can be expected
ahead to expand their economy,
provide greater opportunities and rewards for their peo¬
ple, and maintain their outstanding record of progress
to continue in the years
are
ohe ^of the primary
current' atmosphere, it is
purchases
In the
insurance
.
savings.
and
growth.
increase
aii;'? increase
the
,for
increased .protection
mean
JOSEPH C.
families
savings which measure
Although the
condition
ous
returns
the
of
the
on
economy
savings
will
mean
continue
satisfactory
invested.
so
■aW
';
q rto' •
A. WARD
CHARLES
v
I'd
President, Brown & Bigelow
^
nThe
signs
shows
ahead
year
characterize
In
made
already
more
and
was
gains in highway, school,
building
construction,
automobile sales, spending for con¬
public
replacement
services/; and
•
ness.
racked
ucts,
has
Our
Cnarles
for
are
Delta
cost-cutting
than
made
fare structure—1959 opens on a more
result of
devices
for
up
sales of conventional
from
the
c* Wilson
items.
last year followed
industry. We expect to see an improvement
in 1959. More specilically, we expect an increase in in¬
come from our newer automatic xerographic equipment
which is now proving its usefulness in relatively few
offices and factories and that sales of our older products
will be somewhat better than in 1958. Therefore, we are
budgeting good gains in both sales and net income for
A. Ward
calendars.
the
of
1959.
F.
JOHN
President.
WATLINGTON, JR.
Wachovia Bank and
Trust Company,
F.
WHITMAN
B.
Winston-Salem, N. C.
President, Western Pacific Railroad
uncertainty which prevailed in the business out¬
The
t
look of
a
be
good
a
trend
We
has been largely replaced by cautious
1959. Observers feel that it can
year ago
optimism in
year
likely
to
of business, with the
continue throughout
Starting from 1958's low point, the.
gains made by year-end 1959 may
be quite impressive, and the econr
ojny
as
a
whole can
show new—'
record measurements.
Naturally,,
the'
newal
ik
inflation
of
boom
and
the
and
prevented
No
They
,
hard
fever
Business
can
but
the
face
confidence
not
with
complac¬
year
with
The threat of inflation is a '
present danger, and busi- "
nessmen
should join
wholeheartedly
ency.
real
J.
combat
inflationary
control
and
lowed
—V—
.
in the fight to
forces.' The principal
What
which
in
we
be reflected in
can
stable.business conditions."-Inflationary
these things but they"rob us of
—
V; —:
—VUi—•
government sperfding, mufh of
it unnecessary and wasteful,: continues to mount.
This
is the fuel that fires inflation, and inflation is the fire
that can burn out our economy as well as rob us of
true
1
The pressure for more
national security by
How
;
setting, us on the"rdad to economic
v
chaos.
handle
we
"*;'v
4
problem,
this
as
businessmen
and
citizens, will determine whether we can rise in 1959 and
subsequent years to new levels of economic growth and
achievement, or whether we shall simply 'initiate a fast
and
-furious
inflationary
display
whose—consequences
might be immeasurably great nad eventually disastrous,
r
In the Carohnas, the 1957^-58 recession did not go as
deeply
in other section of the nation'. Total business
at an excellent level during'1958, and gains
It was a neat'-record year in
as
volume
was
made in several lines.
were
agriculture, and the major industries in the region re¬
ported successful operations.
In textiles, the largest
the Carolinas, demand for textile products
the second half of 1958j and a'majority of
now sold into the second quarter'of 1959. Tex¬
industry in
increased
mills
tile
are
men
in
axe
expecting
a
moderately better, but not a
f
boom, year in 1959.
'
continuing to attract a growing num¬
industrial plants:' In North
Carolina alone last year, a record-breaking investment
of $253,000,000 for 423 new or expanded facilities was re¬
corded in 1953. These will provide 21,757- new jobs with
a combined annual payroll of $72,000,0(10: •
— :
The significance of this achievement cannot be over¬
stated. Not only does it mean a stronger regional econ¬
omy for the present, but the acquisition of new industry
on
a
broad basis is of the greatest importance as the
Southeast continues its transition from a predominantly
The Southeast is
ber
of
new
and
growing
'
rural
and
and
agricultural
economy
to
a
highly urbanized
industrialized area.
the
Southeast are working together at all
levels to sustain
this industrial growth and at the same
;
People in
advance programs''which diversify
agricultural establishment. With the
gains FRASER
Digitized forthat have been made and those that appear on the
time
to, foster
and
and
strengthen
our
has
beeif subsidized
Railroads
not
have
advantages
with
by
al¬
been
rates
In
the
short,
F. B. Whitman
low
railroads have
had
a
hard
struggle, largely because they have been over-regulated
and over-taxed.
•
The industry, seeking simple justice, has tried, for
quite a while, to explain this situation to the American
people and particularly to the law-making bodies. We
have been only partly successful.
A recent, carefully
taken opinion poll has shown that we have alerted the
public to the fact that the railroads are in trouble, but
have not succeeded so well in explaining the causes.
we
poll also showed, however, that about 75% of the
people either favor or have no objection to the
railroads' getting a better deal.
The Transportation Act of 1958, passed by the recent
The
American
first step in cor¬
One of its most im¬
portant provisions established a committee to make a
searching examination of the need for additional legis¬
lation. As a result, among measures which may be ex¬
pected to be introduced in the next Congress are bills
Congress, was, the industry feels, but a
recting this inequitable situation.
in the
following
areas:
Diversification—To
to
provide that railroads be allowed
provide services by truck, airplane and barge on the
terms that apply to anyone else, and that the same
same
freedom to
Such
well.
diversify should be granted other carriers, as
coordination would eliminate many dupli¬
over-all hauling costs and offer ship¬
peaks of service.
1-
cated facilities, cut
pers new
,
public money is spent to pro¬
and highway facilities that
interests, adequate user charges
Charges—Where
User
vide and maintain air, water
commercial
benefit
should
be assessed
by the government.
Taxation—Relief from
and
local
taxes
on
increasingly burdensome state
railroad
railroads must compete
properties is urgent since
daily with carriers using tax-free
airways, highways and waterways. Another obvious need
is for repeal of the wartime excise tax of 10% on passen¬
ger
tickets.
foit
Federal tax purposes of money spent for new plant and
equipment would help assure an expanding and improved
railroad system to meet the growing needs of commerce
and national security. Also necessary is the revision of
existing law to allow railroads to establish construction
Plant
cast
the
for
the
should
upward
ond
1959
upswing in business fore¬
next six months and,
the
as
economic
the
revenues
the industry's
year,
should improve.
domestic
Several
continue
trend
expected during the sec¬
half of
trunk
carriers—
including Delta—will feel the effects
this year of recently authorized mul¬
tiple competition over major routes.,
As an example, between Chicago and
Miami, three carriers will compete
where two previously operated. And
between Atlanta and Miami, five car¬
riers will compete for traffic. Over
C. E. Wool man
the segment of that route between
Tampa and St. Petersburg and Miami,
seven trunklines will fly.
This may be contrasted with
the
heavily traveled Miami-New York route, over which
only three carriers compete.
/
The policy of certificating multiple competition over
airline routes already adequately served poses serious
problems. It could, well lead to economic chaos in the
jet age unless it is abandoned. With the introduction of
domestic jet service imminent, it is imperative that the
Civil Aeronautics Board reevaluate the economic prob¬
lems caused by authorizing multiple competition over
existing routes.
V•
Economic disaster is likely to be the outcome of a fed¬
eral regulatory policy which views the airlines as longestablished public utilities in setting rates but treats
them in route matters as unregulated enterprises.
Last year's 6% fare increase granted by the C.A.B.
provided the slim margin which meant the difference in
a profit or loss operation for some carriers. But this mod¬
est upward revision of fares has been more than offset
,
increasingly
an
to take advantage of their in-
competitors.
increases not
do not achieve
prosperity.
only
had
to return lost traffic to their rails, but high
enough to return a good profit, on the grounds that this
would be detrimental to highway competition. They have
borne a much heavier burden of regulation than their
better standard of living and
a
better
enough
all levels—-local, state and national.
all desire are real gains in the economy
on
'
a
railroads.
Competition by air, highway
herent
,
battleground in this struggle will be in the arba of public
spending
the
to hoe during the past few
water
-
sidies.
F. Watlington, Jr.
,
and
good year
government in countless ways. Heavy
faxes paid by the rails have even
been used in part to pay these sub¬
v
*
on
necessary
what I term
the
have
row
years.
and
on
for
climate
international
war.
is
comment
necessary
situation does not worsen or explode. .',
in
a
former, as it is increasingly evident'.
However, some explanation may be
of this appraisal will
whether crippling strikes
called in basic industries, the re-
are
expect 1959 to be
the way.
accuracy
on
Western Pacific
We base this belief on two major factors,, first, the
accelerating recovery from the 1958 business recession,
and, second, the belief that a better
legislative climate for the rails is on
present upward
most, if not all. of the year.
depend
at
for the railroad industry.
regard to
Manager,
Lines
price spiral, inadequate earnings due to an unrealistic
hopeful note than
last year.
The airlines will benefit
up
were
the
Air
Despite many problems confronting the airlines—fi¬
nancing and introducing jet transport service, the wage-
Yet, in 1958.
as
WOOLMAN
C. E.
President and General
experience
that
next fall.'
orders
these
of
of
year
booming
industry
1957
new
more
losses in
up
largely for delivery
Most
a
not
year.
the
of
Over
of
which
orders
for more than 8h> million dollars in
our Remembrance Advertising prod¬
line
our "new
sales
sales
will be re¬
upward in a bid for this busi¬
In less than a month of selling,
last
case
about 8%
budgets
Advertising
as
but
favorable business climate than
the
total
of
inventories.
vised
1959
good
preciation involved would have been already written-off.
Turning to the immediate outlook for Western Pacific,
we
estimate that our gross revenues for the first six
months of 1959 will be up about $1,000,000 or some 4%
over the corresponding period of .1958 and that our net
for the same interval will be up about $340,000. We ex¬
pect the whole year 1959 to be a good one,, possibly even
better than conservative forecasting allows us to count on.
1959, therefore, the office equip¬
industry will be operating in a
ment
over-all
sumer
from the low of early
a
use
of the money within five years, the deferred
taxes would be made up in future years, because the de¬
business. This forecast, of course, as¬
sumes continuation of world peace.
upturn, but
indicate
' sensational
commitments
recovery
If it did make
such
to
generally
of
steady business recovery., We do not
expect 7 a
of
pace
similar to those in the steamship industry. Such
legislation would provide that a railroad,, before comput¬
ing its income tax, could set aside out of net income an
amount not in excess of that allowed by the ICC as nor¬
mal depreciation to be put into a so-called construction
reserve.
If the railroad did not spend this money for
modernization of plant and equipment within five years,
reserves
it would be restored to income and taxed.
bit, I believe that our economy will
improve through 1959, probably somewhat
irregularly, and that the index of industrial production
will reach a new high by the end of
the ;year. : Measured
by industrial
production, business in 1959 will be
8-10% .better than in 1958. In short,
.
.
has slowed
1958
living.
v
• ;
4- ••
?TJnder all of these circumstances, we look forward to
increased sales of life insurance in 1959 and the prosper¬
of
WILSON
President, Haloid Xerox Inc.
but it adds to the pool
the progress In our standard
against the emergencies of life,
of
„
,
industry do everything "possible to
the volume of life insurance.
Not only does
incumbent that
63
(459)
horizon, the Carolinas and the Southeast
standard of living.
continue to improve our
we
can
Life
avenue
Chronicle
The Commercial and Financial
Number 5814
189
Improvements—A shorter write-off period
by subsequent wage increases granted by the industry.
The industry's basic problem is still unsolved: how to
boost earnings to the
pete
on
equal
more
point where the airlines can com¬
footing with
other industries for
equity capital.
Delta has completed financial arrangements for our jet
result of advance planning we will be
position to inaugurate jetliner service this Fall. De¬
livery of our first Douglas DC-8 transports is scheduled
this Spring, and we expect to have all of our fleet of six
in operation by the time deliveries of our fleet of ten
Convair 880s begin in January, 1960.
Delta's revenues in the latter part of 1958 were some¬
program, and as a
in
result of labor difficulties encoun¬
competing airlines, and we anticipate satisfac¬
earnings for our current fiscal year which ends
what improved as a
tered by
tory
June 30.
for the six months ending Dec. 31,
approximate $49 million, an 18% gain over the
Operating revenues for calendar 1958
will exceed $95.5 million. This represents a 13% increase
over the previous year.
At the same time, available seat
miles rose 7.81% to 2.5 billion, and revenue passenger
miles increased 5.16% to 1.4 billion. Our load factor for
Our gross revenues
1958 will
same
1957 period.
the year was
Earnings for the first five months
58.04%.
(July through November) to¬
against $297,000 for the same period in
of the current fiscal year
taled $1,397,000,
1957.
For calendar 1958,
19%
freight,
express.
a 33% gain in air¬
in passengers, and 11% in
Delta registered
in mail,
16%
•7
■
authority granted in the
Great Lakes-Southeast case, eight new cities were added
to Delta's system and a greatly increased traffic potential
As
a
result
of
new
route
opened to us. These cities are Dayton and Columbus,
Ohio; Louisville, Ky.; Orlando, Tampa, St. Petersburg,
Clearwater, and West Palm Beach, Fla.
For the first
time, also, Delta is permitted to serve Detroit and In¬
dianapolis on direct flights from Atlanta and other South¬
east cities, including Miami.
The addition of a Birmingham-Memphis segment on
Delta's route 24 will permit us to link Kansas City and
St. Louis
cities.
via Memphis with Atlanta and Florida resort
We are already serving some of
these cities and
service pattern to include
all of them during the next few months.
The addition of these important air travel markets will
strengthen Delta and enhance our opportunities for con-
we
have plans to
expand
our
Contimied
on
page
64
m
(460)
The Commercial and Financial Chronicle
.
.
Thursday, January 22, 1950
,
1
Continued
jrom
tinued growth.
63
page
At the
time, we will be enabled to
same
the public better by linking the
eerve
ready underway for tapping rich petroleum and mineral
reserves, for harnessing" unlimited
hydro-electric re¬
sources and for constructing pulp and paper and timber
enterprises. These ventures of private capital are coupled
^
^
expanding indus¬
and the Middle West.
area
metal
The surge of air travel to Alaska reflects these varied
of awakening national interest.- Manufacturers
President, Pacific Northern Airlines, Inc.
have toured
Within the life span of
lias
changed
wilderness
from
into
an
the present generation, Alaska
isolated
an
and
dormant
of vigorous
area
frontier
the
to
Department,
dynamic
formally
was
officials
the
of
the
of
Pacific
doubled
ad¬
mitted to the Union at the beginning
of 1959 it ranked among the 49 states
as
to Juneau,
point
youngest but the largest, the
on
industry,
smelters to
state.
new
Within
Northern's
the
past
capital of Alaska and
1958
of
comprehended only in terms of these
first
superlatives
and
contrasts.
factors tethering Alaska's economic
Woodley
development.
factors result from ignorance of the area's vast
lias
been
popular misconceptions
have
of the
West in the
late
the North.
Alaska's
population
at
grow
19th
and
will
are
now
will
double
rate.
and
will
Awakening
net
for
resources is
investment
Continued
capital,
jrom jirst
acting
interest
and
strong
as a
huge projects
49th
tional
even
talk
al¬
anything,
or
analysts,
economists
obviously
torted period
through;
yet it is also
citing and
only must
to
the
very dis¬
the market is going
a
challenging
very ex¬
and
other
time
tested
for possible rapid changes taking
|'»lace in the psychology of the in¬
vesting public. We have
influence
the
the
such
seen
what
whims
and
trends
stock
of
market.
caution
others,
great
a
and
it
business
because
sidered to be
month.
It
a
is
January
is
con¬
rather tricky, "off"
a
month when the
final corporate results of the
pre¬
ceding 12 months are being re¬
ported, digested and discounted,
yet it is much too early to form
any
clear-cut opinion about busi¬
lias had
also
about stock splits. Someone
advertised that there are 82
mors
has
candidates
for
splits
There also have been
this
so
year.
many un¬
founded
stories
about
missiles,
rockets, exotic fuels, new inven¬
tions and so forth traveling around
the Board Rooms, that not .even
©
Buck
Rogers, or a Captain
Video, could keep up with it all.
The buying momentum generated
at
this time
tory
shows
winter
little
a
months
months
in
the
November
as
stock
been
bear
market, just
December
the
early summer months
usually been bull months.
All of
us
are
and
have
generally familiar
with the various well-known
fac¬
tors that paced the market
higher
in 1958 and, if
you have read all
the recent services and
economic
reports, you are also well aware
by some of these stories and ru¬ of the major reasons
being ad¬
plus other new purchases vanced as to why it should con¬
being made for legitimate in¬ tinue to carry still
higher. Last
vestment purposes, as well as the year
very few thought the reces¬
persistent, inflationary fear psy¬ sion would be so severe and
very
chology, has been primarily re¬ few thought the
recovery would
sponsible for pushing the Dow come back so fast. The market
high
close
around
obvious
far
600
questions
ahead
another
to
the
has
now
the
new
level.
The
how
are
business
re¬
coverybeen discounted already,
and what lies in store for the stock
market in 1959''
Before
own
attempting
humble
subjects, I should like
that
of
there
rather
right row
is
to
opinion
an
to
give
on
point
unusual
understandable
among
my
these
timism
heavily
dence
very
look
in
for
economy
remains
the business out¬
least
the
first
six
months is very favorable.
In fact,
there seems little doubt
that 1959
a
bullish year, on balance.
Forecasting
science; for,
to
a
is
an
so
amount
I
variable
not
art,
you never
can
a
reduce
formula
any¬
human
emo¬
as
state from experience
have to have nerves of
can
that you
steel. When you
remembers,
but
are
right
when
no
you
zinc
con¬
Young
price advanced to
cost
llV-j cents a
This price is still below the
of
production
of
the
of
large
a
presently
per¬
developed
consumption
Assuiiiing that we have
industry and production
in
the fourth quarter con¬
than the third quarter.
more
one
forgets.
ever
How
the
early
still
development
program for the purpose of
finding new
and expanding uses in the
present consuming in¬
dustries. This development
program with special product
research will, no
doubt, result in not only increased uses
in the United States but
also in increased
consumption
in the foreign countries where
the present
consumption
per capita is
substantially below U. S. A. consumption.
uses
correlate
the
statistical
many
studies prepared by our own Re¬
search
Department
and
others,
with the current action of
many
of
stocks
valuable
as
a
that
I
chart
market tool for de¬
termining and understanding
va¬
rious trends and counter-trends in
this
rotating market and, particu¬
larly, for achieving the correct
timing of purchases
individual
realize
talist
issues.
that
the
rather
and
Of
strict
disdains
a
stock.
ure
sales
on
course,
I
fundamen¬
the
They also tend to
use
of
meas¬
the speculative confidence to¬
a trend in the market. How¬
wards
ever, any one
who relies
on
charts
exclusively, without basic statis¬
tics, is likely to be led down some
pretty dark alleys; and I might
add, there are many times when
will feel like throwing them
out the window.
They are invalu¬
the
nevertheless, for measuring
mass
waves
pessimism,
to
act
of
which
optimism
compel
either wisely
one
are
over¬
The
caliber of
most
of
the
buying has been excellent.
The
market leadership and the
sponsorship being shown toward
individual
and
people
unwisely,
and they also
help to clear away
the fog of confusion and
irregular¬
or
stocks
and
favored
tainly not
market factors added
right now to
some
should remember that Wall Street
runs from
West to East between
the
for
the sidelines that have
this
over
a
whole
year
are
advance, and
still waiting
for
the big reaction on which to
buy. They have been sorely dis¬
appointed.
There still is -also a
large short position waiting
very
to cover.
will
These two factors alone
continue
issues
to
all
on
support
interim
graveyard and
stock
mism
vice
example
ahead and
tion
is
number
must
be
some
evident
beginning
of
issues.
clearlv
to
distribu¬
form
on
However,
stated
a
it
that there
and
of
pessimism,
had
we
this
last
the pendulum swung
side.
a
or
good
when
year
suddenly to
the bullish
price
Reviews
dips.
Bearish
Factors
held
attention
virtually a cash basis. Vol¬
considerations are favorable
on
ume
—contracting on declines and ex¬
panding on advances. The very
small
issues
floating
has
supply
been
thin
very
of
many
responsible
markets
wide price
and
swings which
for
to
the
takes
place
serve
Board's
in
the
Federal
for
tightening
Chairman
of
up
distorts the averages.
further
a
credit.
Board
Martin's
point of view
anti-inflation
and
definitely
every
Re¬
monetary policy it
be directed towards
may
is
following factors:
early future change
any
the
con¬
are
(1) If
stantly taking place, especially in
the higher priced, top
quality is¬
sues.
This, incidentally
further
boom.
(4)
The
high selectivity of the
you
be
can
away
(2)
The
tween
going
consumer
and
between
on
specific stocks
together with a lack
groups,
of speculative
few
a
really
excesses—.except in
priced issues — are
elements of strength and
lower
lower
priced
little of
when
stocks
the
the
reminds
early part of 1946,
expectation
a
come
to
the
make
the
labor talks next
(3)
and
a very
dan¬
may
aggravated
of
be¬
costs
threat that
economic
outcome
steel
by
the
industry-
spring.
The factor of world political
overhangs the market.
unrest still
(4) The
presently unknown
figure of the automobile in¬
dustry may fall short of a 5y2-6
sales
million
mar¬
(5)
New and aggressive leader¬
has
will
wage
prices poses
further
much
of
higher earnings carried the
ket to a peak in
May.
ship
me
he
leapfrogging action
spiraling
gerous
be
sure
effort to prevent any run¬
business, or stock market
market and the continued rotation
(5)
(1) Some stocks, especially the
higher priced issues, have already
discounted,
price-wise,
earnings
and
dividends for a long time
revert to
can
versa,
Right now, those who are bearishly inclined are paying close
a
Reviews Market's Price Pattern
place for
no
With margin requirements
at 90%, most market positions are
(3)
advance.
Reviewing the price pattern of
right now, I consider
the following factors to be
quite
important:
is
selected
not weakness, which continue to
ity which may accompany inves¬
support the market at this point.
attempting to discount future
Incidentally, the action of the
events
the market
river, and that
a
market
complacency. History shows how
quickly sudden phases of opti¬
tors
far, sometimes too far, in
business
an extremely at¬
picture indeed, investors
tractive
sitting
on
favorable
very
items, represent
a
missed
sign to indicate the
a
start of any protracted
setback. :«
While all these bullish technical
groups have been very powerful.
There are large surplus funds still
you
able,
evidence of major dis¬
no
tribution taking place in the
(2)
of automobiles are
by authorities in the
anticipate a continuation of good
products and fully expect that 1959
be approximately 15% above 1958.
zinc
recent
me
sales
made
we
all market.
charts mainly to help
use
for
and
One
service
is
field,
mid-year strike in the steel
no
estimates
of the most
encouraging new factors in our in¬
dustry is the continued joint cooperation of the domestic
zinc companies with the zinc
producers in Canada, South
America, Australia, England, and part of
Europe in a
of
of addi¬
into
put
the
consumption will
PNA routes in the
be
to
with
demand
it
as
line
automotive
Pa¬
come.
all
mathematical
thing
tions.
caution
and
at
outweighs the
point.
Confi¬
this
at
the
high
out
well-informed
op¬
pessimism
will be
Difficult Month to Forecast
on
cautious
more
have
and
I.
es¬
Progress
charts, but used intelligently and
interpreted correctly, they do tell
of year, because his¬ a
story about the buying and sell¬
that, seasonally, the ing attitude of investors towards
notably
mors.
averages
equipment
However, hundreds
ness
and market trends for the
balance of the year. Investors are
price action
of the so-called glamour stocks.
Every day there are various ru¬
the
is
and especially the vivid
imaginations of some individuals,
the
in
understand¬
seems
and
fore
after
minor
price dips so far, and
large number of previously dor¬
and
relatively
neglected
mant
car
year.
Any further advance by the
market depends
heavily on the
expectation
earnings
final
to
be
quarter
of
and
results
higher corporate
dividends.
If
the
for
reported
1958,
for
the
or
those
current
of
long-term, technical base patterns
on the
upside, or seem just about
1959, fail to satisfy
bullish expectations, the
disillu^
sionment would surely
spark a
very sharp reaction in the stock
ready to do
market.
stocks have broken
favorable
so.
out
This
climate for
of
strong,
generates
a
a
continua¬
tion of the bull market and is
cer¬
The
earned
...
Dow
an
Industrial
estimated
,
import
latter part of Septem¬
since that action was taken
sumption will be about 20%
keep
responsibilities
"Partner
a
to
years
of its
Defends Use of Charts
moods,
on
as
the
for
so
aware
every
day.
In all markets, the
always especially psychological factor is most im¬
prevalent at the start of any new
portant, and charts are especially
Not
attention
earnings, year,
methods of market evaluation, but
we must also watch
very carefully
©n
and
the
and facilities to
many
will remember
forecasts of 1959?
ability to diagnose
correctly
able,
one.
pay close
trend of
we
basic
dividends
a
and
whose livelihood depends
deal on their
'
is
year
wrong, no
to the office any more."
How right he was.
zinc
and
during the last half of 1958 and
the
conservative
a
State, and the acquiring by the airline
I
about
of
early in 1959.
page
go
This
28th
do
well
pressurized
Stock Market Outlook
thing,
reflection
increase
inauguration
in
are
direct
a
An
be
of air express service to all cities
mag¬
placed
mines in the United Stales and, as a
result, a number of
mines were idle throughout the greater
part of the year.
There has been a substantial increase in
The year 1958 was one of the most successful in
his¬
new
Alaska's vast natural
slab
on
centage
The traffic
tory for PNA with substantial increases noted in
every
class of revenue.
The year also saw the
to
-
government
pound.
Howard
Alaska."
concen¬
continue
continue to
cific Northern is
already
Within the next five to ten
years,
accelerated
an
Century
is
would
during this
imports from foreign coun¬
substantially reduced.
Outlook for 1959
enters its
trated in
1965
low
and
ber
with this growth and development in the 49th State
pace
powerful forces which led to the settlement
same
and
economy.
continually expanded its services
dispelled.
The
by
months
centrates the
Pacific Northern, the largest air carrier in
Alaska, has
Both
resources
opportunities. The battle for statehood
many
decade
past
the
at
pound during the!
a
the
of
is evidenced by the recent inaugu¬
burgeoning
remained
were
controls
timate.
thrust Alaska into the spotlight of national
pub¬
now
licity and
the
magnitude
same
A. G.
Sparce population and lack of in¬
vestment capital are the two main
and unparalleled
within
nine
The
Recognition
Other major airlines will follow.
Alaska's
price
level of 10 cents
carried by Pacific Northern Airlines has increased ten¬
fold
be
can
v.-; -ov.
.
The
ration of operations into Anchorage by Air France,
KLM,
face transportation facilities but the
farthest
advanced
in
commercial
domestic
approximately 12% below
was
1957.
tries
and
SAS.
from
from both domestic smelters and im¬
ports,
period
located, the most primitive in
sur¬
zinc
of
approximately the same in
they were in 1957, consump¬
as
the
strategic location astride the crossroads
the world air routes
\
tion, which included metal produced
important
an
•'
were
h?^
year
traffic
passenger
'
the
nonferrous
for most other domestic heavy
as
consumers
controlled by the Interior
was
.
.
*
for
year
shipments
booking Alaska for
are
of polar flying has j ust begun.
of Alaska's
ing. the least developed but the rich¬
future
well
While
their
of
est in natural resources, the farthest
remote
but
the
most
strategically
Alaska's
as
industries.
Pacific Northern's routes
The age
least populated but the fastest grow¬
aviation.
unsatisfactory
flying to Juneau to confer with the
are now
volume
statehood.
Alaska
entire country
the
ington when the Territory
,
When
representation
'
"1
,
an
their next trip in unprecedented numbers. Businessmen
with interests in Alaska, who previously went to Wash¬
economic activity.
This rapid growth is merely prologue
commercial development which will
/item from
boasted
■
was
products in
all of the 48 states are now flying to Alaska to insure
coverage in the new 49th State. Vacation travellers who
G. WOODLEY
A.
have
Smelting Company:
1958
facets
who
|
President, American Zinc, Lead and
*
with vast Federal expenditures for missile bases to se¬
cure Alaska as the keystone of hemispheric defense.
trial South and the great centers of industry in the Great
Eakes
HOWARD I. YOUNG
averages
$27 in 1958.
Volume 189
:
Number 5814
..
The Commercial and Financial Chronicle
.
are
selling about 21-22 times
earnings,
and yielding 3.6% on
dividends of only $20.
They
present
You need quite a pickup
in earn¬
ings and an increase in dividends
to justify
present levels.
Even
if earnings in 1959 equal the 1957
result
of
$36,
the
Industrials
would be selling at 16 times earn¬
ings, which on the Dow is slightly
on the
high,side. So the market
must
be
anticipating
earnings
above
$40
I
and
about
know
1959,
that
as
So, the advance appears to
temporarily out distanced
yet.
have
business
the
the Dow for
on
don't
stocks
counted
many
already dis^
favorable earn¬
ings trend than appears justified.
At this point I want to em¬
phatically state that I just don't
know
Industrial
Dow
headed. — perhaps
number are forecasting.
averages
1,000
the
where
are
as a
However, I try very hard to con¬
vince the present
day investor
not to watch the averages. I know
of
top investment counseling
house that fires anyone! who backs
the
while
So,
averages.
the In¬
dustrial averages right now seem
to be
may
"guestimate" they
slightly above 600 to
high
as a
carry
the 605-610 area and the
170-175
the
before
area
Rails to
im¬
any
portant setback takes place. I am
quite definitely bullish on
the future action of many indi¬
still
vidual stocks,
which have still not
fulfilled their indicated price po¬
tential, and which seem destined
to take over an increasing share
of
the
leadership
from
of
some
the past
favorites, which seem
temporarily over-exploited.
In this connection, I believe that
any
casual, or generalized, ap¬
proach to the market which may
workted
last
year,
won't
work in 1959. By the same token,
the
leadership
shown
by
last
year's speculative favorites will
be taken
over
by other issues.
The significance of the various
have
averages, except as a vague yard¬
stick
of
will
Dynamics
on
In this market where
search
for
weak-
good
a
area*
Airlines:
to
Rising costs continue
higher revenues.
Rate
offset
increases have
been
slow and in-
adequate, and the financing of jet
airliners
is
another
problem fac-
ing the industry. Despite the prevailing uncertainties, the following seem like interesting purchases
for long-term holding:
American;
Pan
American;
Capital;
Autos:
duction
5V2
this
6
to
the
of
area
against 4.2
Economy car pro-
million in 1958.
this
in
year
pro-
million cars,
duction
total 500,000
General Motors
units
may
year.
seems
to be the best situated among ma-
jor producers.
earlier
last
They raised prices
dnrinr*
veir
neriod
a
SS S aTwhileP
only
may
earn
little
a
39o8, they could
m
they
$2
over
$3
in
1959.
Ford is doing well and
could earn between $4 and $4.50
this year. Both these stocks should
work higher in price during the
coming year. Recent market prices
of auto parts issues seem to be
over
earn
adequately discounting 1959
pros-
pects. Would therefore favor those
which
companies
in
most active
are
the
replacement parts market,
such
as
Borg
Warner;
Dana;
Champion Spark Plug; and Cle---
-
vite
V1LC*
Building': A continued high level
of
activity
credit
tion
in
likely.
seems
Despite
tightening, home construeremain
should
same
level
at
the
The decline
in 1958.
as
about
industrial
building is tapering
Favor Johns-Manville; Philip
Carey; Permanente Cement; and
off.
U
S
Pivwood
Hold
purchases
new
defer
but
Otis
of
Skotetor
and
Elevator
thepresent
Chemicals: The near-term
look
is
out-
clouded
by overcapacity
relatively fixed
prices, higher costs and competition,. but longer range prospects
are
very 1 favorable. Favor Monsanto; Olin Mathieson; Diamond
in
the
attractive
some
Alkali,
and
outlook
Alkali*
lines,
;
highly selective marksman to
choose and hit the right target,
and you must learn to use a rifle
instead of a shotgun. For a long
Knnners
and
ana
i^oppeis.
Despite
Drugs:
for
favorable
further
portant to pick the right stock, or
of stocks, than to worry
about
cal. Carter Products looks like
it has been
now,
im¬
more
where
the
will
averages
sell.
interesting
Now,
market
cific '
report or talk
no
should
stocks
without
end
comments"
on
and individual issues.-
Al¬
are
as
Re¬
Farm
careful
.selectivity,
proper timing
on
stocks
for
individual
and
1959:
inventory position, together with
business
general:
recovery
-possibility
that summer
weather this ;year will be hotter
than in the past three years, has
sharpened the near-term outlook
considerably.
I favor
Carrier
bilities.
hold
Standard
new
Aircraft:
Defense
have
state of flux.
are
the
industry in
situated
Best
those
economy
that
a
purchases
well
managed and sufficiently financed,
the
necessary
research
and
development organizations to pro¬
duce outstanding products. In this
Foods
but
on
a
recent
Dutch*
Atlantic
of California
basis.
Paper:
Refining*
on
5%
price.
and
Fore-
looks attractive
Union
Stand-
is
demand
in
current
as
Pulp;
Rayonier
pulp business looks like a
the
good speculation at current levels,
Rails:
Expect considerable im-
nvnvpmpnt
nnpmtino-
result*
nf
for
the
eroun
and
Dodge* Cerro de
Long-term outlook
aluminum
brightest of
is
any
probably
metal and
the
and
of
industrial
relief from the
some
heavy
losses
business
new
m
the
not
to
but'
stars
trv
feet firmly
from
to
vei-v
the
next
planted
keen
Keep
on
the
«rnnndt»»
burden
Detroit Stock Exch.
election
anfipinated
Anrn
Elects New Officers
DETROIT, Mich.—The Detroit
Exchange announces the
of the following officers
for
1959*
•
,
Xeme'nt3" ales" me" favorabte dT
FartorTto conSlr for inSfcSSd?
Eidey
tive
still
on
the most attraclong-term basis. Hold
U. S. Rubber and Goodrich. Mans-
field Tire,
has
a
smaller manufacturer,
good'speculative possibilities!
s0ff
7
Drinks*
.
in
looked
for
sales
substantial
A
^ suostanuai
,
and
this
earnings
On
year.
is
any
minor price weakness would buy
Coca-Cola;
Pepsi
Cola;
and
Canada Dry.
Textiles:
Firmer
prices
for
mally types of cloth
lend cause
for optimism toward the industry.
Buy/hold J. P. Stevens; Burlington; American Viscose; Celanese;
purchases
£a3
'
The
^ 'r^
100,000
share*
heing issued and sold by
ap^an * °°d Stores which will
a
ttle Proce€ds to general fund*
whhre they will be available for
C°!a
inventory and equipirtfnft
^
4?
and for repayment of short-term
Outstanding common
fS&M? si'oar vS *
'I:
I] P
'
!
■
Borman Food Stores operates a
?m. °* 3 re>ail food supermarhets in the gieater metropolitan;
,
area ot Detroit, Mich, under tho
"Food
?ame
*
Fa*r*
T/?2
Dming
1958
^veTnlw
? ""g,
nc"
?ood Falr stor? were .op<l"?d;
Slx
more
under construction
j
are
^ onenin^V' in"th£ fir^
n?
half
lor °Penin&s in me first naif og
John
K.
C. Roney & Co.
Announcement
was
Co.
E'
also made of
Denny as Executive-Secretary &
anr|
Bettv
declared
in¬
an
have
agreed,
tliia
that following
off«rinlfYiolWl^retotoed
bvthorn
oiteimg, no stocK retained oy tnerrs
wlR receive cash dividends priojf
to Feb. 1, 1961.
N
weeks ended Nov.income cama
1. 1958 were
net
$26,078,000 and
Roney to $524,000, compared with $21,425,000 and $379,000, respectively^
the reappointment of M. Edward
F„amjner
have
quarterly cash dividend oif
12% cents per share payable April
10, 1959. The selling stockholder*
Net sales of the company in the
Chas. A. Parcells &
TREASURER:
-Wm.
^
remaining
?.re
Re'd & C°'
seems
a
r ^io./o a aiiare.
praceeds from Hie sale o£
30*>990 shares will not go to the*
co^pany; these shares are being
? A y a Si'oup of over 65 stockholders—some of whom are com-
itial
anticipated sliaip lor jyay.
!'?cove''y mj°^
e<Wipment
PRESIDENT: Roy W. Neil—An-
year
1
the year.
stock
good speculation, Reading.
The
.
„
.
f{.
wn7
oi
(Jan. -l)jiuvcommon stock or
;? ,s'
a
^
_
Directors
likely.
Favor
Ohio; Nickel Plate;
Great Northern; Illinois Central;
Chicago, Rock Island; and as a
&
Rubber*
1
man-
r
r/
/
this year and an additional six ara
planned for the last six months off
areas
passenger
group
_
sJores have no connection widx
ha?d St°.r®2 op.tratSg. u".der t.hat n,?,mo
decade In ouiex words
utcdue.
in other
also
woius, aiso
your
,
head
vour
wonders
underwriting
,
geftostam^g th/inter- °rea
of
planetary
appears
Baltimore
ket price recovery.Tobacco:
With
V
-
sales
and
Suiter
as
*n the similar period ended Nov.
2, 19d7r
1958,
28,
Examiner ana tfexiy in. &uiteL as
company's latest
;lls<:al Year>
sales
were
^
Assistant-Secretary.
$67,074,000
<
GOVERNORS elected to the
Board
for a three-year
term:
Peter
Mt.
Macpherson, Detroit
Stock Exchange; Roy W. Neil,
Andrew C. Reid & Co.; John K.
R°ney» Wm. C. Roney & Co.
The other Governors
earn-
moves,
as
outstanding
pu^hases in the group.
„
Other
-
individual
.
stocks
I
,
,
WiMm
Armour and
PacklnS
the
Board
are
Walter
10400{>
f
>
■
»
Halsey, Stuart Group
Offers Equip. Tr. Gtfs.
of
Reynolds
__
making up semi-annually Aug. 1/1959 to Feb.
A. Bayer 1, 1974, inclusive,
^"company
and Frank E. Voorbeis of Goodbody & Company, whose terms
expire in 1961.
.
T
__
of F. J. Winckler Company and
The certificates are
priced to
Lawrence H. Dilworth of R. C. y|eid from 3.50% to 4.40%, acO'Donnell >& Company,
whose 'COrding to maturity.
terms expire in 1960; Charles E.
T
.
d
a]e Qf the certifiExley of Charles A
,
WvW nf rhnvlps A. Parcells ^
Paroelis &
issuancesubiect to or me cenmana saie authorization
like
.
o£.th.e Interstate Commerce Comml®f10 ;
•
.
,
,
x
The issue is to be secured by
100 covered hopper cars and .1(5
M»dunery-Joy Manufectunng._ William A. Walker of Dickinson,
u"lts„ af
and Combustion Engineering. .
Wright, Davis, McKean & Cudlip each» estimated to cost
„mlalll^
Rail Equipment
—
ACF Indus-
Gold
—
.
.
^
,
Homestake Mining and
Dome Mines,
Standard Packag-
Packaging
Bower
of
White,
Bower
&
Co.; McMaster Hutchinson & Co.;
& Dick & Merle-Smith; Freeman
Prevo will continue as Auditor.
®eaJ.d'Al ^*
B. Fisher, D. B. Fisher Co., Sa
..
TT
win
The
-
Smith, Hague & Co.;
Raymo°d C. O'Donnell, R. C.
O'Donnell & Co.; William R. Rot-
uel Hague,
sted.
Machines—Burroughs.
C. A. Dager Opens
additional
(special to the financial chuonicle)
following
10
hT, S&"
$5,261,376.
Associates in the offering ares
and R* ^* Pressprich & Co.
mittee for 1959 are: Frederick H.
Distillers.
tries and Alco Products.
_
wjn continue as Counsel and Ed-
Elected to the Nominating Com-
/
Liquor—National
interest-
ing for price appreciation:
LOS ANGELES,
Calif.—Charles
A. Dager has formed Charles AnCalumet «Sc Heckla; Lear; Oliver drew Dager & Company, with
Kidder, Peabody Co.
Opens Mpls. Branch
MINNEAPOLIS, Minn.
—
Kid¬
der, Peabody & Co., well known
investment firm,
has opened a
new
office
Minneapolis
Northwestern —...
Bank
.
at
1165
Building un0
—
der the management of Dale R.
Wikman.
Mr. Wikman has been in the
Corp.;
Avco;
Decca
Records; offices at 1308 Wilshire Boulevard, investment business in MinneapBaldwin; Crowell Collier; Frue- to engage in a securities business, olis for 12 years, recently with
hauf Trailer; Standard Coil; Grey- Mr. Dager has recently been with
^
r
.
,
'
Conclusion
Wolcott & Associates. Prior there{ng ^derwrfters^distributors and
.
con-
tinue to favor investment holding
or
piece of advice* "Keen
An
Tl
fion/tfme suddenly comiSg
ing.
and Inspiration Copper.
Aluminum:
1Laaei
*7u
piovement in operating results ot groundl
railroads
a
Z^thf Conalr A^a!
Pasco*
Shields Group Offers
Borman Food Shares
702760 shares
not
levels:
Bag; West Virginia
lower priced stocks look
also like Phelps
;
u*
Crown Zellerbach.
and
+•
in
v
.
.
life# In these groups I would in-
attractive at
seem
Metal Issues
best
ex-
elude, among others, the airlines,
textiles, domestic and internationuntil 1960-61, when the full earn- al oils, air
conditioning and soft
ings potential from plant capacity drinks.
may
be realized, the following
(5) Finallv
as
an
analysts old
make
to 10%
rrfi,
thp
the Rails..
on
investment
an
While
Business
The
nrxA
any
5%,
expected to catch up with supply
only
businessman's risk.
r
mild
nid Oil
pointed higher
General
most Dairies
com¬
are
are
Brands
setback from
as
speculation.
Sales
a
(3) As stated before, I expect
place and improvement shown 1959 will be a bullish year, on
during recent months suggests a balance. But no advance" such as
resumption
of
former
growth the 34% gain on the Dow Industrends in 1959. I favor Sinclair; trials that took place last year is
Phillips;
Ohio;
Cities
Service; anticipated for this year.
•
Socony;
Texas;
Shell;
Royal
(4) j believe that new leader-
and further growth seems assured.
ronda
with
well known
try, I believe that a lot of price
discounting
has
already
taken
Fox.
"Foods:
tive
panies
the
—
uast
measures
all
Shipbuilding- — Newport News
International Harvester for good Shipbuilding and Bath Iron Works.
yield. Case has speculative possiMovies
Twentieth Century-
the outstanding issue in the group
and consider Fedders very attrac¬
a
farm
equipment outlook is not as favoras
this time a
year
ago.
Would
Air Conditioning: An improved
The
able
the market
groups
Equipment:
However, continue to favor
holding
Deere
and
also
like
.
of
as
With
in a lew other groups are:
that
action
the
oils:
much doubt that
will
very
and will hold
above the 560-570 support area on
the Dow Industrials and 158-160
EI°enctroSc"C° a"d C°nSoIidated
today,
Electric:
Electric;
so
ago,
ing brief opinions
and
ceed
industry
Radio;
areas
not
together with the
of all purchases made, is most
essential, or to put it another way,
using the chart approach, "Buy
stocks when they say they should
be bought." I submit the follow¬
the
Iron has speculative possibilities,
(2) I
they
are
new
far from exhausted.
member
such phase of correction
at this time.
investment opportuni¬
year
However,
ties
steels I favor are Fansteel; Sharon;
and Vanadium. Colorado Fuel &
fication
mar¬
period just ahead
of
a
temporary
this January re-
investment phase of the advance,
This could take place in the next
second
two weeks and somewhere beshould
tween levels prevailing at this
with like results of a year ago. writing and possibly a new high
Armco; Allegheny Ludlum; Gran- slightly above 600 on the Dow
ite
City
Steel;
and
Jones
& Industrials and between present
Laughlin seem attractive in the levels and perhaps as high as 170group'right now. Three speciality 175 on the Dow Rails.
Westmghouse; General
Tune Sol: Waener ElecTung Sol; Wagner Elec¬
tric; Square D; and, as specula-
apparent
a
d y n a m i c
A
to
Operations should trend
the
first
and
quarter
and
earnings
compare
very
favorably
jngs trending higher continue- to
regard Reynolds Tobacco "B" and
Philip Morris, on recent diversi-
under-valuation
were
interruption
entering a phase of spectacular
growth. Would hold or buy the
following on all minor price dips:
though I can see the general
working gradually into
high ground, the same broad
much
long-term
.
Ironies:
of
the
kind
Halsey, Stuart & Co. Inc. and
GOVERNOR elected to the associates on Jan. 20 offered an
Board for a one-year term: Harry issue 0f $4,200,000 Chicago, Burlgrowth, united Merchants; and Industrial A.
McDonald,
Jr.,
McDonald, ington & Quincy RR. 4%% equipRayon for further expected mar- Moore & Company.
ment trust certificates
maturing
an
Electrical Equipment and Elec-
spe¬
groups
ket
of
stock.
the
on
in
some
through
upturn
,,
the
growth, this
group, pricewise, seems relatively
unattractive right now. Defer new
buying, but hold present longterm
investment
position
in
Merck; Schering; Sterling Drug;
Bristol-Myers; and Vick Chemi-
group
lookout
for
Steels:
higher
serving
yield and
undervaluation 'promises
to
in¬
crease,
you
must be an expert
time
and Aluminium Ltd. on
dips from recent levels of 72 and
32, respectively.
—
unfavorable factors in this indus-
estimate domestic
I
Metals
United;
Eastern.
and
measurement,
continue to
de¬
crease.
further
any
and Boeing which looks like
buy in the recent price
ness;
'market
probably
especially favor the
Northrop; General
of
one
his market analytical decision on
I
purchase
have
more
a
and
recovery
to
seem
connection
65
'461)~
(1) while
n0
major distributive
top has had time to form as yet,
I
am
certainly going to be
oil
the
to he Was with 9SC3r F.' Kiaft & dealers in corporate, state ancl
Co. and was with Smith-Hague municipal securities, andmemhers
& Co., of Detroit.
of all principal stock exchanges.
66
The Commercial and Financial
(462)
Continued jrom page
ceilings of 4V2% and
rental (including armed
services)
and
for * cooperative
(b)The
14
5%
Federal Budget for 1960
Is Balanced and Restrained
estimated
of
that
at
$67 billion
the
billion in
receipts for I960 is contingent on
the
tax
recommen¬
dations mentioned earlier.
Of this
estimate, approximately $76.5 bil¬
the increases in re¬
lion reflects
ceipts under present tax rates and
present tax sources -while $0.6
is
billion
from
increased nontax
and
taxes
new
sources.
.
.
.
'i*
Some of the key features of
President's
tions
tial
summarized
are
This
the
recommenda¬
budget
herewith:
budget
assures that essen¬
needs are met. The
defense
budget recommendations will bol¬
ster 'the
defense
of
country
against possible attack and enable
•Our'forces to respond more quick¬
ly and -vigorously to any emer¬
gency. At the same time, and as
part of our effort to keep America
strong, this budget reflects poli¬
cies'to streamline operations, 1 to
remove duplication of
weapons, to
accentuate the principle and prac¬
tice of unification, and to min¬
our
imize maintenance costs—in
short,
to assure the maximum defense
from each-dollar expended.,..
Today 'the
less-developed
score
of
which
na¬
have at¬
tained independence since
War II—are struggling to
World
their
condi¬
improve
economic
tions. The
is
vital
and
social
of these efforts
success
Increases
for loans made by
includes,
to
restore
the
of
the
atomic
energy.
pursue
energetically
ment
replaced
by
term
Treasury of equivalentborrowing and other reason¬
.
.
.
of
operation of
mental
atomic
provides
construction
result, Federal ex¬
penditures for civil public works
in fiscal 1960 will be the highest
in history. It therefore seems both
a
statutory
possible
and prudent to take a
breathing spell in the initiation of
new projects. Accordingly, no ad¬
ditional
funds
are
proposed in
1960 for starting1 new water re¬
sources
projects, general
office
buildings, and veterans hospitals.
Furthermore, reduced new spend¬
ing authority is recommended for
grants for local public and private
hospitals, health research facil¬
ities, and for waste treatment
works, although expenditures un¬
der
earlier
authorizations
will
continue to be
high. Highway ex¬
penditures will increase in accor¬
dance
with
under
the
the program
Federal
Aid
planned
Highway
Act, and modernization of airway
facilities to meet operational and
safety needs will go forward at a
higher level of expenditure.
The
combined
outlay,
for
college housing loans made by the
Housing
and
Home
Finance
'
*
rate which will
ter
current
We
mborrowing and other
Shippingport,
The.
also
responsibility for direction of
civilian nuclear power- devel¬
opment program will
by the Congress
participation of
capital, and, in the longrun, will reduce government ex¬
penditures significantly.
At the
same time, government guaranties
will encourage the
private
insurance will continue to per¬
mit
interest costs
to
borrowers
or
than
the
Programs
tinue
to
work
with
the
*
its
experience
and
In
resources.
Community (Euratom) and the International Atomic
ment and evaluation
ommendations
countries MDf the world
practicable,
of
the' Joint
Fed¬
pons, while reducing expenditures eral-State
Action
Committee
in
for
other
procurement
and for the field of atomic energy, which
few cases,, construction. The Atomic Energy would
taking
recognize
certain-. State
many actions together to promote construction may be deferred un¬ Commission is advancing all
responsibilities for the protection
trade with and to expand invest¬ til the fiscal year 1960.
phases of its programs, particu¬ of public health and safety:
ment in such nations. As
larly research in the peaceful use
part of
Stockpiling and' Defense 1 Pro¬
this joint effort, the
following ac¬ Favors Improved Minimum Wage of atomic energy. Our allies' prog¬ duction Expansion.—. .•
Expendi¬
tions for the United States are
ress
in
LaW
equipping their armed tures for
stockpiling and expan¬
recommended:
forces and the deliveries under
Proposals will be made for wid¬
sion
of
defense
production are
(a) Increase substantially our ening the coverage of unemploy¬ military assistance in 1959 and estimated to decline from $378
prior years permit a reduction in
million in fiscal 1959 to $265 milT
subscriptions to the International ment compensation, for extending
assistance expenditures. lion in 1960.
Bank of Reconstruction and De¬ and improving the minimum wage military
However,, because
velopment and the International and 8-hour laws, and for provid¬ Expenditures for stockpiling and the present authority is - inade¬
ing added protection in labor- expansion of defense production quate, legislation will-be needed
Monetary Fund. This should be
will
be
reduced
because
basic
management relations. I am again
done promptly.
in 1959 to authorize an additional
proposing legislation to strengthen stockpiling objectives for most $325 million to finance,
(b) Bring the capitalization of
probable
materials are now fulfilled and
safeguards on the conduct of labor
deliveries in the next 2 years im?
our
Development Loan Fund up to
because many defense production
union
affairs, including the
der existing contracts for'expand¬
the
amount
originally
recom¬
strengthening of the law enacted expansion contracts have already ing defense production.
mended for the fiscal year 1959
T %
by last
been completed.
year requiring public report¬
enacting a supplemental amount
Mutual Security Program.—The
Total
ing on union welfare and pension
expenditures for
major mutual
of $225 million.
security program 'is de¬
national security programs in fis¬
plans.
'
signed ot help strengthen the de¬
(c) As a supplement to estab¬
cal 1960 are estimated to be $45.8
In the housing
field, the budget
fense and bolster the
lished institutions, create a
political and
joint recommends
billion.
broadening the au¬
economic
stability of 'the free
development banking institution
*
:'fl
*
thority of the Federal Housing
world.
with our Latin American
Through
it.' the- United
neigh¬
Administration and removing the
Department of Defense Military States shares in worldwide
bors.
efforts
^ceiling on the total volume of Functions.—The defense program to meet the Communist threat and
(d) Increase the emphasis on
mortgage insurance it can provide. for 1960 calls for new appropria¬ to
help improve the standard of
economic development in the mu¬
Legislation is also recommended tions of $40,850 million. This is
living of people in less developed
tual
security programs through authorizing
capital grants for ur¬ $288 million less than the appro¬ nations. For the fiscal year 1960.
such measures as the
appropria¬ ban renewal projects for a
6-year priations estimated for 1959. How¬ I am recommending new -obliga-r
tion of $700 million for the De¬
period. Annual contributions to ever, approximately $0.7 billion of tional
authority of $3,930-million
velopment Loan Fund and $211 local
housing authorities for low- the funds appropriated by the for the mutual
security program.
million for technical
cooperation rent public housing
Congress for 1959 in excess of the Expenditures are estimated to be
projects will
in
in
a
.
fiscal
1960.
rise in
Enact legislation to expand
the
mutual
security investment
guaranty program.
In the current fiscal
expenditures
.
plied
for
research
basic
and
development have
,
amounts
and
propriation
space
For
a
for
year, total
for
and
scientific
reached record
supplemental
1959
technology is
ap-
to
ap¬
advance
1960
as more
projects are
Commitments by the
Federal National
Mortgage Asso¬
ciation to purchase
mortgages on
housing for urban renewal areas
for
and
relocating displaced families
for the elderly will continue
to rise in 1960.
Seeks Flexible Interest Rates
on
Agency Loans
I recommended that
exploration,
peaceful
uses
of
atomic energy, and basic
science.
space
vestigations
are
utilizing satellites
exploration
being
in¬
initiated,
and probes. De¬
velopment work is going forward
on
high-energy fuel rockets, a
million-pound thrust engine, and
ft
nuclear rocket engine.
guaranteed by the Veterans Ad¬
ministration
be
replaced
by a
maximum rate not in excess of
the
rate for
mortgages on sales hous¬
ing insured by the Federal Hous¬
ing Administration. This
change
will also have the effect of
revis¬
ing the interest rate
ceiling
direct
housing loans
erans
Administration.
of
the
1960
be
Expenditures
$3,498 million, which is $383 mil¬
in
1960
about $1.9 billion
amount spent in
the
lion
esti¬
are
$40,945 million, which is
million more than in 1959
$145
and
program.
more
.
■
"
less
than
in
*'
1 *
*
•
on
Vet¬
.
programs
than
1958—con¬
fiscaL1959.-
T*
■
,
:
:j;?7\av
Agricultural
!
Resources rniHnv
Legislation
is
urgently
tinuing the upward trend which
therefore, to make fiirther revi¬
began in 1956.
Over the 5-year
sions in the price support pro¬
period from 1955 to 1960, annual
gram.
Estimated'expenditures
expenditures for defense will have
for agricultural programs in fis¬
increased by over $5.4 billion.
cal year 1960 are $6 billion, which
$
$
!>5
is $779 million less than the esti¬
Development
and
Control
-
of
Atomic Energy.—Expenditures
by
the Atomic Energy Commission
are
expected to reach
an
all-time
high of $2.7 billion in fiscal 1960.
This
large amount reflects our
determination
to
maintain
our
position of world leadership in the
field
of
nuclear
military
.
.
mate for the current year,
billion
more
than was
but $1.6
actually
spent in 1958. The main part of
the decrease expected- in *1960 is
in the soil bank program, .becau^
the acreage reserve portion termi¬
nated
year.
at the
end
'
of the
1958 crop
x •
'
r
Total
new
authority;; to incur
obligations requested for agricul¬
brought under adequate interna¬ ture and agricultural resources in
tional control and to promote the 1960 is
$5.1 billion. This amount
ments
until
such
arma¬
armaments
are
wel¬
xQ;/
these
;
at
$4.1
more
than was spent for these programs
in 1958 but $251
million less than
occurs chiefly because of the ex¬
piration on April 1, 1959, of the
anti-recession legislation for tem¬
Federal
porary
compensation
unemployment
payments.
Exclud¬
ing. these
temporary payments,
.estimated- expenditures in fiseal
1960
are $161 million greater than
1959.
Significant increases,gre
provided in 1960 for the defense
in
education program initiated in fis¬
cal
1959 and for higher public
assistance grants as required''^fey
legislation
Con gross.
enacted
.
.
mended
-by
the
.
.
list
.
Legislation"
is
.
again
recom¬
to:
Discontinue Federal grants
for vocational education and for
(a)
waste
treatment
tion
and
laws
as
adjust
works
the
can
revenue
by the Joint
Action
States
construc¬
Federal
recommended
Federal-State
so
Committee
full
assume
re¬
sponsibility
for these ' programs
starting in the fiscal year 1961;
Modify
(b)
the provisions
aid to schools in
Federal-
(c)
...
activities;; "
Increase
the
*'
'\*
State
participation; in
for
affected by
areas
' »
local
and
financing of
,
public assistance programs.
,
Veterans' Services and Benefits
The
tures
upward
trend
of
expendi¬
in veterans' programs is
ex¬
pected
fiscal
to halt temporarily in (he
1960, mainly
year
declining
justments
programs,
because
workloads
result in, a
decrease of $163 million for read¬
helped
War
which, have
of World
so many veterans
II
and
the
Korean
conflict
to become reestablished in civilian
life.
Expenditures
and
death
for
disability
compensation, which
increased in the last several
.years
because higher rates were
have
of
are
1960
as
the
number
How¬
expenditures for other
manent
to
expected to decrease
in
beneficiaries, declines.
ever,
needed,
estimated
are
somewhat
and
and
for
the estimate for the current year.
The decrease from 1959 to 1960
enacted,
Agriculture
.
for interest
fiscal year
1960, re¬
rates on new loans and commit¬
development expendi¬
ments:
tures
will
be
increased
still
further, -with emphasis on space
(a) The 4%% ceiling on loans
Extensive
will
mated at
search and
-
recommended
added to the
recommended.
the
amounts
completed.
I960, will
of budget
billion. This is $682 million
,
(e)
budg¬
as
Nation's
ized for starting in 1959 will be so
spread out as to schedule initia¬
tion late in the year, wherever
wea¬
well
as
19$0
payments
power
but also to the population of the
entire world.
Fortunately, the free
new
Including
.
welfare
between
governments, which in
producers,- 'both comprise three-fourths
privately and publicly owned, and
expenditures for labor
will continue to seek cooperation"
fare programs.
*
from industry in order to utilize
\
j Total
expenditures
electric
Atomic Energy
of
1960.
>
et funds, there is ah almost four- ;
fold increase, from $5.3 billion 'in1
1950 to an estimated $19.1 billion
identify -de-f
rates
The changes in emphasis in the
four major national security pro¬
doubled
projects to advance that in' 1960. Much of the
increase;»in
In carrying out these
budget
outlays - has "been ' for
projects the Commission will con¬
grants-in-aid to States and 'local
Energy Agency.
;
igation projects is estimated to be
Further investigations into the
higher than ever before in 1960. grams for the fiscal year 1960
reflect the growing armed strength possible use of nuclear explosions
Expenditures are expected to in¬
of the United States and its allies for such peaceful purposes as min¬
crease tgain in fiscal 1961 and to
hold at that level in 1962 even and the continuing modernization ing and earth moving, known as
without new starts beyond those of defense methods. The Depart¬ Project Plowshare, will .be con¬
for' which initial appropriations ment of Defense will significantly ducted.
\ .'.f •«,/ ;v:,
-t .x:
and,
have
broad-
program.
addition, exchange of technical in- :
charged in the open market for; formation with foreign countries
will be expanded through" partici-"
similar loans.
patiori in international"undertak¬
Major National Security
ings, especially the E u r o p e a ri
favorable
expanded;
penditures for labor and
sirable
actions
last
have
Budget.ex¬
and
from trust funds
its
haveI
the
ened
reactor projects
the
in
' programs
new
ones
by groups outside of will
Atomic Energy Commission. 1and.,
The Comm ission : m exercising
the loans.
as
been enacted and oid
continue substantial
power
services
significantly
grown*
of eleptric energy.
Government's
welfare
-
u4
-
Welfare h'TfT
F ed e ra l
and
decade
the
3^2% ceiling on ship
mortgage loans by the Maritime
Administration be replaced by au¬
thority to charge the full costs of
more
labor
r!
undertaken
reason¬
(e)The
Such
will
equivalent-' support of
able costs.
re¬
nav¬
the
cover
production
the
"■■.'t-i!'
*
•
Labor and
v
-
world's ..iirst
nuclear
powerplant devoted primarily. to
Agency (the rate at present is
2%%) be amended to authorize a
cost to the Treasury of
at
b
*
x:\/v.
The
.
Legislation will be proposed in
this session to carry out the rec¬
are
are reflected in budget-ex¬
penditures of 1959 arid prior y4ars.
and
power "*• station
Pa.,
Corporation
losses
and
.
recession. As
financed through, that
All of these Commodity I
costs !. jahd ;•
programs
agency.
Credit
for
and
modification,
the
number of. experi¬
a
increase expenditures for procure¬
ment of missiles and for develop¬
only to the freedom
and well-being of the millions of
people within their boundaries
burse
suppbrt
$1.2 billion to reim¬
Corporation for esti¬
and
mated costs and losses under other
con¬
have already been made. The new
water resources projects author¬
not
losses,
power.
for
among others, $2 billion
the capital impairment
Commodity Credit Corpo¬
ration resulting from price
prototype power: re¬
actors owned
by the, government,
standard for including operation of the atomic
able costs.
(d)The
economic
development,
the
to
budget
rate' tinuation
a
the current cost
cover
of
This
the Rural Electrification Adminis¬
be
Thursday, January 22, 1959
.
We
of
to
housing mortgages insured by the promising technical approaches to
Federal
Housing Administration civilian power reactors. We will
adequate to emphasize efforts to reduce the
assure private financing*
cost of the reactor fuel
cycle; such
(c) The present statutory inter¬ a reduction is basic to the attain¬
which will
.
tions
plan
be increased to levels
tration
provided
last
year in construction programs for
water resources, health facilities,
public
buildings,
airways,
and
highways, partly to combat the
were
clamation, flood control, and
Foreign Economic Aid
tions—a
Outlays for Public
Works
time.
The estimate of $77.1
enactment <of
Asks Curb On
.
development of peaceful applica¬
for
est rate of 2%
instead
billion
Chronicle
programs
increase,"
primarily
veterans
more
per¬
continuing
are
because
disabilities
with
*
not
resulting from their military
service are receiving hospital and
medical
care
timated
or
total
pensions. The
expenditures
es¬
for
veterans in 1960 of $5.1 billion dre
$110 million less than in 1959, and
$62 million
I
believe
more
that
than in 1958. ."*..
certain
of
our
na¬
tional policies and legislation
gov¬
erning
other
veterans
programs
should be modified. This is partic¬
ularly true of the benefits pro¬
vided
ilies
to
for
veterans and their
disability
or
fam¬
.deaths
not
resulting from or related to mili¬
tary service. With veterans and
J
t
'
I
Volume 189
Number 5814
their families
half of
these
our
.
.
.
The Commercial and Financial Chronicle
constituting nearly, Continued
from
page
3
benefits
is
believe
canbe
billion.
Few
spending
$10
population^ the cost of
veterans'
Federal
high,
within
tained
that
con¬
the flow of savings
residential
oitj- veterans advance in age. '
^ Interest
Natural Debt
,
are estimated
on
Permanent Cure for
7>|jjterest payments
to rise $495 million to $8.1 billion
in the fiscal year 1960. These pay¬
through both; recession and recov¬
ery, reflecting; a willingness and
a
need om the-part of consumers
to lay aside aportion of income
through all t phases of the trade
cycle.
**:;-<7:. ,- ■
\
ments, almost entirely for interest
on
the
than
public debt, represent more
budget expenditures.
1 (>%• of
Since the
analysts
the
The
than
is
it
half
1
drop in
a
.1959
of
de¬
so
pessimistic
more
suggesting
are
second
more
which
upon
pendent.
to
little
million
a
health
economic
tained.
is
to
be
main¬
the
At
least, this means
living within our income during a
period
of
economic
expansion
such as is anticipated for 1959 and
units, com¬
spring of 1958, market
pared with the 1.3 million rate re¬
of interest have increased,
1960.
cently reached. I would like to
Optimism About 1959
reflecting the strong recovery ofOn the international scene, re¬
say in passing that I would be sur¬
the economy. The rise in market
What about 1959 and the years
cent financial developments hold
prised if less than 1.2 million units
rates requires the treasury to pay
immediately 'beyond? Surveys of
important
implications
for
the
were started this year and not at
higher interest on securities issued the geherdl -economic scene re-':
United
States
economy
in the
all surprised if there were more.
t6 refinance the heavy volume of
port
optimism — more, cautious
immediate
years
ahead.
The
To be sure, credit will be less
maturing government obligations; than exuberant—among business¬
reiadily available than in
1958, European nations have, demon¬
g large part of which were issued men,
consumers, and governments
strated
a
willingness to accept
terms will be more restrictive, bor¬
when interest rates were lower. ,, alike/
According to Dun & Brad-;
fiscal
and
monetary ' discipline
,'Iri addition to higher interest street; businessmen are more op¬ rowers more carefully screened,
through
currency
convertibility
and commitments harder to come
rates, the amount of. interest pay¬ timistjsci: about; first quarter 1959
and devaluation. These moves will
ments idepends on the size and prospects: than: for any preceding by. Shifts will occur among -vari¬
make it harder for American ex¬
ous types of mortgages, and among
compositioa of the public debt. It quarter:backito 1955. Most an¬
various housing sectors, but over¬ porters to sell high-cost products
is anticipated that the public debt ticipate that sales in 1959 will ex¬
abroad. Already there is evidence
will reach. $285 billion by the end ceed the 1958; "volume and that all, the volume of mortgage credit
that we have been pricing our¬
should
be ample
to support at
of the fiscal year 1959.: On the
profits ^wiii^also Tise. Consumers least 1.2 million starts. The flow selves out of foreign markets.
basis of the balanced .budget I am are more - confident than before
of savings to mutual savings banks U. S. exports declined markedly
presenting, the debt will be no about their own financial positionand
other
financial
institutions in 1958, accompanied by gold out¬
higher at the end of 1960, although and aboutv-the general economic
should
continuer large,
and de¬ flows in excess of $2 billion.
there will be a substantial tem¬ situation 111 1959, according to the1
mands for capital funds by corpo¬
The apparent determination of
University of v Michigan Survey
porary increase, during -the year.
rations may decline. Government European
nations
to
repudiate
Research Center. Also, as reported'
action to stimulate housing mar¬
inflation
as
a
way
of life reConclusion
by the National Industrial Con-:
kets, moreover, may be expected enforces our own need to combat
* This
budget charts the course ference Board, consumer buying in the event a decline do"s
appear
this economic scourge. After all
our government should take as we
for
"big-tag" - imminent:
plans, ; especially
the potential threats to full and
embark
on
the
decade
of ' the
items, are quite encouraging.
sustained economic recovery are
The'.most recent government190O's.
Since the end of World
End Interest Rate Ceiling
reviewed—and there are assuredly
War II, the pace of achievement sponsored survey on the 1959 out¬
Any action short of establishing more than I have touched upon,
indicates a steady, though
and universal change has quick¬ look
interest rate flexibility for gov¬
including the stickiness of un¬
ened with each successive year, unspectacular, expansion in busi¬
ernment
guaranteed mortgages, employment, lagging capital ex¬
sharpening the need for adjust¬ ness activity.y Underlying the however, will still leave
basic penditures
by
business,
lower
ments in the relations of peoples
expected expansion is the antici¬
problems in housing markets un¬ farm incomes—the main economic
and nations to each other.
In the
pated pickup' in three major seg¬ solved.
As long as ceiling rates
threat
and
challenge
which
ments" of'. American
industry—
decade facing us, the challenges to
are maintained on
FHA and VA
emerges is inflation. The question
representative government will be autos, construction, and steel. A* mortgages, the impact of changes
has been asked by many -— by
no
less than in the past;, indeed, 5.1/2 million car year, 30% greater
in credit conditions will fall more
sophisticated as well as lay ob¬
the tasks which are certain to be than. in '1958; a construction vol- •
heavily on mortgage borrowers servers of the American economic
ume
of', about $52 billion, com-'
laid upon the executive, legisla¬
and lenders, and on housing mar¬
scene — whether our
new pros¬
pared'.with less than $49 billion
kets generally, than on other sec¬
tive and judicial branches will in
perity can long continue without
1958; and steel ingot production
require from each increasing vi¬
tors of the economy.
This means engendering
new
inflationary
sion', understanding, and wisdom. at close rto 110 million tons as- that builders will continue to
op¬
pressures.
'
This budget is designed to serve against 85 million in 1958; if real¬
erate
in
unstable
markets,
as
Many
have
answered
no
the needs of the nation as a whole ized," wlil indeed provide a basis
prospective home buyers are pre¬
for continued strong recovery in.
including some among the sophis¬
as
affectively as possible.
It re¬
cluded from competing freely for
;•
ticated, and have added that this
jects the philosophy that the na¬ 1959.'/y*
limited
capital, and as lenders
Past business cycle experienceprospect is not necessarily un¬
tional welfare is best -served by
shift
their funds
in accordance
also favors; further economic ex¬
welcome.
My
answer
on
both
satisfying every demand for Fed¬
with
changing relationships be¬ counts is an
pansion beyond 1959.
Scholarlyemphatic yes — that
eral expenditures.
tween
fixed
governiryent-aided we can have
prosperity without
Our objective, as a free nation, study has revealed that in most
mortgage interest rates and free
inflation, and, indeed, that we
must be to prepare for. the mo¬ cycles the expansion phase usually,
interest rates on other types of
continues-for about 30 months. If.
must have, because the two are
mentous decade ahead by entering
investments.
we measure Our present recovery
necessarily incompatible. For I
the fiscal year 1960 with a world
Frankly, with overall prospects submit that the
as
beginning last May, it is less]
creeping variety
at peace, and with a strong a/rid
than 9 months old—clearly, still' for continued economic gains so
of inflation cannot long be limited
free economy as the prerequisite
pregnant with potential growth. encouraging, I am more concerned to this pace, and as it builds to a
for healthy growth in the years to
about the development of imbal¬
This growth will not be realized
gallop develops the imbalances,
follow. -: This
can ; be
achieved
automatically, however, simply on ances in specific economic sectors the
hardships,
the
inequities,
through government actions which
the basis-of past statistical evi¬ other than housing. Common stock
which result ultimately in eco¬
help foster private economic re¬
for example, have risen
dence.
Each new cyclical change prices,
nomic
collapse.
The
American
covery
and
development,^ and carries with it. its own problems rapidly
to
uncomfortably
high
people must be convinced that in¬
which
restrain
the
forces
that
and
its awn challenges.
Within levels, hard to justify on the basis flation is not inevitable. Resigna¬
would
drive
prices higher, and
of current earnings and dividends.
any overall growth pattern, more¬
tion to inflation—for the longer
thereby cheapen our money and
Common stock yields are, in fact,
over, some sectors and some areas
term as well as the immediate
erode our personal savings.
well below those on high grade
The will
lag behind others or decline
years ahead—will in itself set off
first step is to
bonds.
avoid a budget
Only rarely has this been
temporarily
because
of special
actions building inflation further
deficit by having the government
the case in the past half-century.
factors.
into
the
system
and
bringing
live* within its means, especially
The rate .of. expansion so far, In my judgment, the market has
about the very dangers we fear.
during prosperous, peacetime pe¬ for
inflation
prospects
example, has still left us with exaggerated
Businessmen, labor consumers,
riods.
;
for the near future.
A shakeout
over
4 million unemployed per¬
and governments must be united
The 1960 budget reflects our de¬
in the stock market based upon a
sons as .of December.
In terms of
termination, to do this.
re-evaluation of the inflation po¬ in their determination to develop
specific-labor market! areas, latest
tential and upon more realistic and support programs and policies
Government, surveys (November,
that are not inflationary. Indeed,
returns for investors, may have
show
sur¬
rates
.
^
,
.
-
...
.
,
•
•
-
.
'
,
■v'
Alexander Smith
Alexander
Jan,
14th
at
Smith
the
passed
age
of
away
86.
Mr.
Smith prior to his retirement had
been
president
of
P
e a
b
83 so-Qalled
plus areas—that is, areas with 6%
or more unemployed.
The likeli¬
hood is that unemployment will
1958).
o
d y
gome
rise further
in January and Feb¬
Houghteling & Co., later Peabod*
Christopher Branch
LOUIS, Mo.—B. C. Christo¬
pher & Co, has a braajtch office at
5) 00
Oakland
Avenue
under-the
direction of Norman Supper.
v
In
the steel
labor
industry, important
negotiations are
contract
.
persons.-;
of
.
ST.
the economy.
other sectors of
ruary,
•-
B. C.
on
scheduled for this summer. Failure
perhaps to over 5 million
While such an increase
SmithCo.
• y *:.
will be,attributable to the opera¬
;r
tion of normal seasonal factors—
particularly, in the construction
Babbage & Kessinger
and
agricultural sectors—rather
With J. J. B. Hilliard
than to* any real deterioration in
economic activity, we cannot af¬
LEXINGTON, K}-:—Robert A.
Babbage and Thomas B. Kessinger ford to be complacent about such
high level of unemployment.
have become associated with J. J. a
B. Hilliard & Son, members of the The general stickiness of recovery
New York Stock Exchange, as co- in this area, reflecting productiv¬
managers
of
the
firm's
newly ity aftd labor force factors noted
opened
office
in
the
Security earlier, Is. one' of our main eco¬
nomic problems for 1959 and be¬
Trust Building. They were form¬
erly partners in the investment yond.
firm of Babbage & Kessinger.
,
repercussions
Predicts -1.2
Some
home
:
Million
observers
feel
-building sector is
Starts
that
one
management
reach
and
agreement
may
labor
result
to
in
long and costly strikes. Such a
development in one of the nation's
basic
industries will be
a
of the
event, the results of the steel
industry negotiations will set a
pattern
contracts
labor
for
in
Fiscal
National
Another
on
scene
lies
question
important
the
mark
Discipline
domestic
in the
area
economic
of
national
outlined
a
Federal budget in bal¬
for fiscal 1960 at around
$77
billion. This represents a proposed
notwithstanding
general economic growth, because
of
the
reduced
availability
of
reduction in spending from fiscal
1959
of over $2 billion and
an
cur
in which
this.-year
a
—
is
year
keen.
In the longer run, as
increase
in
receipts
of
the short run,
a
perhaps
the supply of mortgage credit be
increased in the long run.
The
Joint
the
well
as
policies must face up squarely to
inflation. Restrain¬
ing inflation never has been and
never
will
be an easy job.
It
requires making hard decisions
in public policies to contend with
problems which may become in¬
creasingly complex."
Hard decisions and keen judg¬
ment
of
our
and must
are
American
also,
necessary,
the
on
part of the homebuilding industry.
This means striving continuously
to hold costs
down, increase effi¬
ciency, and produce a quality
product for the consumers' dollar.
It
means,,
also,
that
industry
leadership must encourage sound
policies on the part of our Fed¬
eral housing and mortgage agen¬
cies, and cf
concerned
our Federal
with
this
legislators
of
area
activity.
In this connection, the
Congress will soon be inviting
industry
opinion
on
proposed
housing legislation for 1959. One
which, it seems to me,
building industry can
serve their own interest, and the
public interest as well, would be
to oppose vigorously further Fed¬
eral
inroads
into
the
private
in
way
the
home
sector
of
housing markets. This
standing
firmly
against
means
direct
government lending,
in¬
cluding the expansion of FNMA's
activities
to
support submarket
interest
mortgage
lished
„
estab¬
rates
Federal
other
under
grams.
Federal
Making
pro¬
money
directly available to housing
through
FNMA
will
further increase the already large
•markets
Federal
s
deficit, add to inflationary
pressures, and ultimately
the
existence
of
the
threaten
private
industry. This
a heavy price for
homebuilding
would indeed be
all
of
to pay for a temporary
us
stimulus
It
to
housing markets.,
too
stressed
be
cannot
strongly that housing credit poli¬
cies
established
be
must
.framework
the
overall
cies,
within
nation's
the
of
monetary and fiscal poli¬
not
and
in
economic
an
vacuum.
In this kind of a
it
well
may
setting,
be that in some
the long-run public
well
as
the private
future periods
interest
as
homebuilding
for temporary
ing demands.
interest, will call
restraints on hous¬
Federal housing in¬
strumentalities
cannot
encourage
all out expansion under
all condi¬
tions if the nation is to meet suc¬
inflationary
pressures
and preserve the purchasing power
of the dollar. Sober reflection will,
cessfully
I
am
convince
sure,
self-interest
dictates
us
all
that
the sacrific¬
ing of temporary short-term eco¬
nomic
gain, for permanent, longstability
in
a
of
sustained
economic
growth.
economic
term
setting
F. L. Putnam Fla. Office
NAPLES, Fla.—F. L. Putnam &
Inc.
has
opened
a
Company,
branch office at 658 Fifth Avenue
South
the
under
Millet.
management *of
Mr.
Millet
was
formerly in the investment busi¬
ness in Augusta, Maine.
in
homebuilders have
mately on the volume of longterm savings. Thrift is one of the
omy
has
problem well: "Public
the problem of
Alexander McCabe
direct interest in combating in¬
bulwarks
Committee
Economic
stated
Howard
flation, because the availability of
mortgage credit—the lifeblood of
home building — depends ulti¬
other industries.
decline may oc¬
areas
coming
Inflation Threatens Homebuilding
any
ance
the
to
fiscal discipline. The President has
the
inflationary
fears hardly seem justified.-Rela¬
tive price stability appears to be
a
good bet in 1959. Our plant
capacity and labor force are still
not being fully utilized; produc¬
tivity is increasing significantly;
farm
crops
are
abundant; and
foreign competition for American
in
serious markets
maintaining balance in
the nation's economic machine. In
blow
Pain
Short-Run
Worth
but, even at a higher
At
times,
in the short run,
balanced budget may be
achieved
as
tax
receipts
are homebuilding may seem to suffer
boosted by a strong business re¬ at the hands of anti-inflationary
covery. Fiscal discipline is essen¬ monetary and fiscal policies, but
tial
if
the
nation's
long-run only through such policies can
estimate,
figure,
Homebuilding
credit,
of
and hence
mortgage funds.
President's
the
'
The General Economic Scene and
an(l will continue to increase as
67
(463)
econ¬
be encouraged as
the fundamental source of financ¬
Alexander McCabe
Jan.
to
18th
his
at
the age
retirement he
.
passed away
of 65. Prior
had been
a
partner in Dreyfus & Co.
William A. Gutekunst
William
A.
Gutekunst
passed
for residential building and away Jan. 15th at the age of 57
other capital formation. So long following a brief illness. Mr. Gu¬
tekunst had been a partner of F.
as inflation motivates the actions
of
consumers
and
investors, so L. Rossman & Co., New York
ing
long will it be difficult to increase
City.
66
The Commercial and Financial Chronicle
(462)
Continued
from
(b) The ceilings of 4V2% and
5% for rental (including armed
development of peaceful applica¬
tions of atomic energy.
We
services)
and
for
cooperative plan to pursue energetically the
promising technical approaches to
housing mortgages insured by the
14
page
Federal Budget ioi 1960
Is Balanced and Restrained
billion instead
estimated
the $67
time.
of
that
at
The estimate
of $77.1
billion
tax
recommen¬
Increases
provided
were
Federal
last
in construction programs for
year
water resources,
imize maintenance costs—in
to
the
assure
maximum
.
.
.
short,
defense
from each-dollar expended.
the
tions—a
less-developed
safety needs will go forward at
higher level of expenditure.
na¬
of which have at¬
tained independence since World
War II—are struggling to
improve
crease
at
that
level
their
without
new
starts
score
economic
tions. The
is
vital
and
and
condi¬
but
*within
also
their
to the
entire world.
of
Fortunately, the free
this
in
such
for
the
United
States
are
Fund.
This
should
be
(b) Bring the
capitalization of
Development Loan Fund up to
amount
originally
recom¬
mended for the f iscal
year 1959
enacting a supplemental
of $225 million.
(c) As
lished
a
supplement
by
Latin
ing
estab¬
economic
tual
such
tion
the
emphasis
for
fiscal
technical
cooperation
(e) Enact legislation to expand
investment
In the current fiscal
year, total
for basic
and
ap¬
,
for
space
For
for
technology is
the
scientific
to
will
be
atomic energy,
on
of
exploration
in¬
also
families
Flexible Interest
Rates
on
a
million-pound thrust engine, and
nuclear rocket
engine.
Shippingport,
'The-Federal
labor
and
Government's
services
welfare
significantly
grown'
decade
in
have
last!
the
mew' programs
as
been "enacted and old ones
have
broad¬
will also continue substantial
We
ened and expanded.
Budget .ex¬
support of power reactor projects penditures for labor and welfare
undertaken by groups outside of
will have doubled between 19501
the Atomic Energy Commission/
andr 1960.
Including " payments |
The Commissionexercising
from trust; funds ;as well as budg¬
its responsibility for direction of
et funds, there is ail almost four-1
able costs.
„
.
(e) The 3^% ceiling on ship
mortgage loans by the Maritime
Administration be replaced by au¬
the civilian
nuclear power devel¬
thority to charge the full costs of
opment program will
the loans.
sirable
Such
identify "de-*
projects to advance that
program.
In carrying out' these
actions
by the Congress
the participation of projects the Commission will con¬
private capital, and, in the long tinue to work with the Nation's
electric
power
producers, -both
run, will reduce government ex¬
penditures significantly.
At the privately and publicly owned, and
will encourage
will
time, government guaranties
same
from
insurance will continue to per¬
mit
interest
costs
to
borrowers
or
favorable
more
in
charged
than
the
the
increase, from\j$5,3 billion /in
1950
in
to
estimated $19.1
an
1960.
Much
industry in order to utilize
experience
and
In
resources/
billion
of the increase
an
budget
outlays • ■ has
been * for
grants-in-aid to States and local
and
wel¬
:
,
.Total
expenditures -fori these
programs
are
estimated at $4.1
billion. This is $682 million more
ings, especially the European
Atomic Energy Community (Eura-
United States and its allies
for such peaceful purposes as min¬
ing and earth moving-, known as
Project Plowshare, will; be. con¬
ment of Defense will
ducted.
significantly
increase expenditures for procure¬
ment of missiles and for develop¬
for
The
decrease
construction.
from
1959
to
1960j
phases
of
is
its
for
the field of
would
advancing all
military
prior
programs,
the
and
deliveries
assistance
permit
years
a
in 1959 and
reduction in
be
reduced
materials
because
the
certain
-
.
Pro¬
expenditures
public
to
decline
.
.
for
.
from
-
recom¬
'
education
treatment
and
laws
as
adjust
the
works
States
and
for
revenue
by the Joint
Action
can
grants
construc¬
Federal
recommended
Federal-State
so:
again
\
"
?
vocational
waste
tion
.$378
is
to:
Discontinue Federal
(a)
Expendi¬
stockpiling and expan¬
production are
.-
Committee
full
assume
re¬
authority is Jnade^ sponsibility for these programs
legislation will-be needed starting in the fiscal year 1961;-':
to
an
additional
(b)
aid to schools in
deliveries in the next, 2 years un-r
der
existing contracts for expand¬
ing defense production.
%
(c)
Increase
State
and
local
participation 5 in the financing of
public assistance programs.
:
Security Program.—The
security program is de¬
for
Modify
the provisions for
areas affected by
Federal-activities;" : v "
'
finance/probable
Mutual
Total
higher
as
.
Defense
and
in 1959 to authorize
production
expansion contracts have already
been completed.
grants
Legislation"
mended
defense
$325 million
because many defense
initiated in fis¬
for
present
quate,
basic
and
required'by
legislation 'enacted -by the jfrist
State Congress.:
million in fiscal 1959 to $265 mil?
lion in 1960.
However,, because
for
most
fulfilled and
now
of
estimated
objectives
are
for
sion
assistance expenditures.
Expenditures for stockpiling and
expansion of defense production
stockpiling
recognize
tures
1959
assistance
in
atomic energy, iwhich
Stockpiling
under
Significant inereases^re
in 1960 for the defense
education program
Fed¬
Committee
duction Expansion.—.
military
will
the' Joint
responsibilities for the protection
of public health and safety:
particu¬
larly research in the peaceful use
of atomic energy. Our allies' prog¬
ress
in
equipping their armed
forces
1959.
cal
of
Action
(temporary payments,
expenditures in fiscal
-
$161 million greater than
are
provided
eral-State
The Atomic Energy
Commission
in
,
these
1960
ommendations
wea¬
and
procurement
ing.
estimated
Legislation will be proposed in
this session to carry out the rec¬
while reducing expenditures
other
,
major mutual
national security programs in fis¬
signed ot help strengthen the de¬
cal 1960 are estimated to be $45.8
fense and bolster the
-
Veterans'
political and
billion.
The
stability of 'the1 free
Through
it.1 the United
economic
*
*
*
.,;r
world.
Department of Defense Military
Functions.—The
defense
and
Services -and Benefits
upward
trend of
expendi¬
tures-in veterans' programs is ex¬
pected to halt temporarily in the
fiscal year 1960, mainly because
declining workloads result in, a
States shares in worldwide efforts
program
to meet the Communist threat and
-■
about
$1.9 billion more than
amoqnt spent in 1958—con¬
tinuing the upward trend which
(a) The
.
4%%
ceiling
on
loans
guaranteed by the Veterans Ad¬
ministration
be
replaced by
a
maximum rate not in excess of the
mortgages on sales hous¬
ing insured by the Federal Hous¬
ing Administration.
This change
ing
the interest rate
ceiling on
direct housing loans of the Vet¬
erans
Administration.
,
-
and
Agricultural
Resources: bh
v
ui o
.
began in 1956.
Over the 5-year
period from 1955 to 1960, annual
expenditures for defense will have
by
over
*
$5.4 billion."
❖
*
.
„
.
.
of
- -
the
increased
,
Legislation is urgently needed,
therefore, to make' further revi¬
sions in the price support pro¬
gram.
.
.
.
Estimated'expenditures
for
agricultural programs in fis¬
cal year 1960 are $6 billion, which
is $779 million less than the .esti¬
mate for the current year,
beneficiaries
manent
to
declines.
How-
expenditures for other
ever,
programs
increase, "
per¬
-continuing
are
primarily ' because
with
disabilities
resulting from their military
are receiving hospital and
medical care or pensions. The es¬
veterans
more
not
service
timated
dotal
expenditures
for
but $1.6
actually
Energy.—Expenditures by
the Atomic
spent in 1958. The main part of
Energy Commission
are expected to reach an all-time
the decrease expected- in I960 is
high of $2.7 billion in fiscal 1960. in the soil bank programv.becau*<k
This
large amount reflects our the acreage reserve portion termi¬
veterans in 1960 of $5.1 billion 5re
$110 million less than in 1959, and
determination
should be modified. This is partic¬
and
Control
of
Atomic
billion
to
maintain
our
position of world leadership in the
field
ments
of
nuclear
until
such
military
arma¬
armaments
brought under adequate
|
year.
Security
and the continuing modernization
of defense methods. The Depart¬
of the
I
governments, which? in 1960 will
comprise three-fourths of budget
expenditures for labor
addition, exchange of technical in¬
for, formation with foreign countries than was spent for these programs
will be expanded through'partici-"
in 1958 but $251 million less, than
pation in international'undertak¬ the estimate for the current
similar loans.
Major National
its
fold
continue to seek cooperation"
fare programs.
rates
market
open
Development
will also have the effect of revis¬
«
the current
cost to the Treasury of equivalent-'
ter mborrowing and other reason¬
ments:
on
rockets,
at
Pa.,
Agriculture
displaced
elderly will continue
rate for
fuel
station
can
vestigations are being initiated,
utilizing satellites and probes. De¬
velopment work is going forward
high-energy
,.a1
.^5 ^
recommended
Agency Loans
space
uses
of
I recommended that for
interest
rates on new loans and commit¬
still
and basic science.
space
the
recommended.
further, with emphasis
exploration,
peaceful
Extensive
Seeks
advance
increased
volume
to rise in 1960.
fiscal year 1960, re¬
development expendi¬
search and
tures
1959
is
relocating
and for
development have reached record
amounts and a supplemental ap¬
propriation
the
world's ..first
nuclear
powerplant devoted primarily, to
the production of electric energy.
■
,
expenditures
for
Housing and Home Finance
Agency (the rate at present is
2%%) be amended to authorize a
cover
*
Labor and Welfare
„
including operation of the atomic
power
rate which will
*
...
.
mutual security
guaranty program.
and
for
-
,
1960.
research
housing field, the budget
Legislation
the
plied
actors
standard
statutory
penditures of 1959 and prior years.
prototype power re¬
owned by the.government,
provide. for 1960 calls for new appropria¬ to help improve the standard-of
decrease of $163 million for read¬
tions of $40,850 million.
This is living of people in less developed
authorizing capital grants for ur¬ $288 million less than the appro¬ nations. For the fiscal year 1960. justments programs which have
ban renewal projects for a
6-year priations estimated for 1959. How¬ I am recommending new obliga7 helped so many veterans of World
War II and the Korean conflict
period. Annual contributions to ever, approximately $0.7. billion of tional
authority of $3,930-million
local housing authorities for low- the
funds
appropriated by the for the mutual security program. to become reestablished in civilian
rent public
housing projects will Congress for 1959 in excess of the Expenditures are estimated td be life. Expenditures for disability
rise in 1960 as more
and
death
recommended
will
be $3,498
compensation, which
projects are amounts
million, which is $383 mil¬
have
completed. Commitments by the added to the 1960 program.
lion less than in fiscal, 1959.?
increased in the last several
Federal National Mortgage Asso¬
because higher rates were
*
'♦
•'* O .years
Expenditures in 1960 are esti¬
ciation to purchase
enacted, are expected to decrease
mortgages on mated at $40,945 million, which is
somewhat in 1960 as the number
housing for urban renewal areas $145 million more than in 1959
on
mu¬
$700 million for the De¬
velopment Loan Fund and $211
in
(d) The
modification, - and
number of. experi¬
a
and
,
ceiling on the total
mortgage insurance it
through
the appropria¬
as
requiring public report¬
broadening the au¬
of the Federal Housing
Administration and removing the
programs
measures
mental
college housing loans made by the
thority
of
million
wherever
recommends
neigh¬
development in the
security
year,
union welfare and pension
on
In the
bors.
(d) Increase
operation of
.
ment and evaluation of new
initia¬
plans.
American
able costs.
pons,
last year
institutions, create a joint
banking institution
our
author¬
schedule
affairs, including the
strengthening of the law enacted
development
with
projects
resources
union
amount
to
term
spread out as to
tion late in the
management relations. I am again
proposing legislation to strengthen
safeguards on the conduct of labor
done promptly.
the
water
Proposals will be made for wid¬
ening the coverage of unemploy¬
ment compensation, for
extending
and improving the minimum
wage
and 8-hour laws, and for provid¬
ing added protection in labor-
(a) Increase substantially our
subscriptions to the International
Bank of Reconstruction and De¬
velopment and the International
our
beyond those
appropriations
Favors Improved Minimum Wage
Law
ac¬
recommended:
Monetary
even
nations. As part of
joint effort, the following
tions
1962
practicable, and, in a few cases,
construction may be deferred un¬
til the fiscal year 1960.
taking
actions together to promote
trade with and to expand invest¬
many
ment
development,
Treasury of equivalentborrowing and other reason¬
ized for starting in 1959 will be so
boundaries
are
initial
in
have already been made. The new
population of the
countries of the world
the current cost
cover
the
to
a
igain in fiscal 1961 and to
for' which
only to the freedom
well-being of the millions
people
hold
of these efforts
success
not
social
which will
The combined outlay
for re¬
occurs chiefly because of the ex¬
The changes in emphasis in the tom) and the International Atomic
clamation, flood control, and nav¬
piration on April 1, .1959, of the
four major national security pro¬ Energy Agency.
anti-recession legislation for tem¬
igation projects is estimated to be
Further investigations into the
grams
for the fiscal year 1960
higher than ever before in 1960.
porary
Federal
unemployment
Expenditures are expected to in¬ reflect the growing armed strength possible use of nuclear explosions compensation payments. Exclud¬
Foreign Economic Aid
Today
includes, among others* $2 billion
to restore the capital impairment
of the Commodity Credit Corpo¬
ration resulting from price suppbrt
Housing
Programs
....
Thursday, January 22, 1959
.
be increased to levels
health facilities,
dations mentioned earlier. Of this public
buildings,
airways,
and
estimate, approximately $76.5 bil¬ highways, partly to combat the
lion reflects the increases in re¬ recession. As a result, Federal ex¬
ceipts under present tax rates and penditures for civil public works
present tax sources while $0.6 in fiscal 1960 will be the highest
billion is from
new
taxes
and in history. It therefore seems both
increased nontax sources.
possible and prudent to take a
breathing spell in the initiation of
new projects. Accordingly, no ad¬
Some of the key features of the
ditional
funds
are
proposed
in
President's budget recommenda¬
1960 for starting new water re¬
tions are summarized herewith:
sources
projects, general office
This budget assures that essen¬
buildings, and veterans hospitals.
tial defense needs are met. The
Furthermore, reduced new spend¬
budget recommendations will bol¬ ing authority is recommended for
ster the defense of our country
grants for local public and private
against possible attack and enable hospitals, health research facil¬
•our'forces to respond more quick¬
ities, and for waste treatment
ly and vigorously to any emer¬ works, although expenditures un¬
gency. At -the same time, and as der
earlier
authorizations
will
part of our effort to keep America continue to be high.
Highway ex¬
strong, this budget reflects poli¬ penditures will increase in accor¬
cies 'to streamline operations, to
dance with the program planned
remove duplication of
weapons, to under the Federal Aid Highway
accentuate the principle and prac¬
Act, and modernization of airway
tice -of unification, and to min¬
facilities to meet operational and
enactment of the
.
.
Administration civilian power reactors. We will losses, and $1.2 billion to reim¬
adequate to emphasize efforts to reduce the burse the Corporation for esti¬
cost of the reactor fuel
assure private financings
cycle; such mated costs and losses under otker
(c) The present statutory inter¬ a reduction is basic to the attain¬ programs financed through that
est rate of 2% for loans made by ment of economic atomic power.
agency.
All of these Commodity
Asks Curb On Outlays for Public the Rural Electrification Adminis¬ This
budget provides
for
con¬
Credit
Corporation
costs
.and
Works
tration
be
replaced by a rate' tinuation of construction and for losses are reflected in budget ex¬
billion in
receipts for 1960 is contingent on
.
.
.
nated
more
at the
than
end
of the
*
year.
Total
new
was
1958 crop
••\v-x-
'
authority.; to
r
incur
$62 million
I
believe
more
that
than in 1958.
certain
of
our
.
na¬
tional policies and legislation gov¬
erning
ularly
vided
other
true
to
veterans
of
the
programs
benefits
pro¬
veterans and their fam¬
are
obligations requested for agricul¬
interna¬
ture and agricultural resources in
ilies for disability or deaths not
resulting from or related to mili¬
1960
tary
tional control and to promote the
is
$5.1
billion.
This amount
service.
With
veterans
and
Volume 189
Number 5814
their families
half of
these
.
constituting
.
.
The Commercial and Financial Chronicle
nearly, Continued
veterans'
benefits
and! will continue
is
V Interest
increase
to
Natural
on
The General Economic Scene and
as
Debt
ments, almost entirely for interest
on the public debt, represent more
10%. of budget expenditures.
Since the spring of
economic
1958, market
of interest have increased,
reflecting the strong recovery ofOptimism About 1959
the economy. The rise in market
What about 1959 and the years
rates requires the treasury to pay
immediately 'beyond? ' Surveys of
higher interest on securities issued the general - economic scene re¬
td refinance the heavy volume of
port
optimism — more; cautious
maturing government obligations, than exuberant—among business¬
rates
the
.
depends
the
on
size /-and.
composition, of the public debt. It
is anticipated that the public debt
will reach $285 billion by the end
the
fiscal
Oil
19p9.
year
the
basis of the balanced budget I am
The
more
half
than
is
it
suggesting
are
second
-more
of
pessimistic
a drop in
to
little
units,
com¬
1959
million
1
de¬
so
pared with the 1.3 million rate
.
£ large part of which were issued
when interest rates were lower.,j^Iii addition to higher interest
rates, ,the amount of interest pay¬
of
pendent.
analysts
re¬
cently reached. I would like to
say in passing that I would be sur¬
prised if less than 1.2 million units
•
-
v
but, even at a higher
balanced budget may be
achieved
as
tax
receipts
are
through both; recession and recov¬
ery, reflecting; a willingness and
a
need om the- part of consumers
to lay aside apportion of income
through all v phases of the trade
cycle. ■
7 •
■;
which
started this year
were
all
surprised if there
be
To
and not at
were
more.
credit will be less
/ readily available
than 'in 1958,
men, consumers, and govenrments
terms will be more restrictive, boralike.: According to Dun & Bradrowers
more
carefully screened,
street,: businessmen are more op¬
/and commitments harder to come
timistic.: about ; first quarter7:1959
by. Shifts will occur among- vari¬
prospects than: for any preceding
ous types of mortgages, and among
quarter^ back/to 1955. Most an¬
various housing sectors, but over¬
ticipate that .sales in 1959 will ex¬
all, the volume of mortgage credit
ceed the 1958 "volume
and that
should be .7 ample
to support at
profits will .also rise. Consumers
least 1.2 million starts. The flow
.
con¬
sure,
.
-
are
more.- confident than before
•. of savings to mutual savings banks
presenting, the debt will be no about their own financial position
and
other
financial
institutions
higher at the end of 1960, although /and about T"the general economic
/ should continue large, and de¬
there will be a substantial tem¬ situation in 1959, according to the
mands for capital funds by corpoporary increase during the year.
University./of 7 Michigan Survey rations
may decline.
Government
Research Center. Also, as reported
action to stimulate housing mar¬
v
Conclusion
by the National Industrial Con¬
kets, moreover, may be expected
- This
budget charts the course ference Board, consumer buying in the event a decline do">s
appear
our government should take as we
plans, ."especially
for
"big-tag" imminent.
embark
on
the
decade
of ' the items, are quite encouraging.
,
covery.
tial
if
tained.
by a strong business re¬
Fiscal discipline is essen¬
the
nation's
long-run
health
main¬
the
At
least, this means
income during a
of
economic
expansion
is anticipated for 1959 and
living within
period
such
be
to
is
as
our
1960.
On
international scene, re¬
the
financial
cent
developments hold
implications
for
the
States
economy
in the
important
United
immediate
years
ahead.
The*
nations have
demon¬
strated
a
willingness to accept
fiscal
and
monetary ' discipline
through
currency
convertibility
European
and devaluation. These moves will
make it harder for American ex¬
porters to sell high-cost products
abroad. Already there is evidence
that we have been pricing our¬
selves
out
of
foreign markets.
U. S. exports declined markedly
in 1958, accompanied by gold out¬
flows in excess of $2 billion.
,
The
apparent determination of
European
nations
to
repudiate
inflation
enforces
as
a
our
of
way
life
re-
need to combat
own
.
.
1960's.
War
the
Since
II,
the
universal
and
ened
with,
in
unspectacular, expansion in busi¬
year,
for
peoples
need
other.
In
expected expansion is the antici¬
pated 'pickup in three major seg¬
the
less
in
the
past;
the tasks which
are
certain
laid
than
upon
tive:;,. and
the
indeed,
executive,
to
than
judicial branches
will
each "increasing vi¬
understanding, and wisdom...
sion,
affectively
as
as
a
possible. It
jects the philosophy that .the
tional
welfare
satisfying
is
.every
best
served
must
objective,
be
to
a
prepare
free nation,
for. the mo¬
with a strong afnd
free economy as the prerequisite
for healthy growth in the years to
follow.
-
r
This
can
:
achieved,
be
strong
''4'
r
basis
a
recovery
in
through government actions which
Rate
Interest
End
Ceiling
Any action short of establishing
interest
rate
ernment
flexibility for
business
pansion beyond 1959.
Scholarly
has revealed that in most
cycles the expansion phase usually
continues-for about 30 months. If
we -measure bur present recovery
study
beginning last May, it is less
than: 9 months old—clearly, still
which
restrain
woUld
drive
thei'eby
the
forces
prices
cheapen
that
higher,
our
and
money
and
erode
our personal savings.
The
step is to avoid a budget
deficit by having the government
first
lrte
within its means, especially
during prosperous, peacetime pe¬
riods.
7
...
7 7
gov¬
maintained
are
FHA
on
and
VA
mortgages, the impact of changes
in credit conditions will fall move
heavily on mortgage borrowers
and lenders, and on housing mar¬
kets generally, than on bther'Sectors of the economy.
This means
that builders will continue to op¬
unstable
in
erate
markets,
as
prospective home buyers are pre¬
limited
capital,
fixed
interest
mortgage
interest
rates
as
in
lenders
accordance
relationships be¬
governrryent-aided
changing
tween
and
funds
their
shift
?with
rates
other
on
and free
types of
investments.
Frankly, with overall prospects
continued economic gains so
for
with potential growth. encouraging, I am more concerned
growth will not be realized about the development of imbal¬
automatically, however, simply on ances in specific economic sectors
the basis of past statistical evi¬ other tjian housing. Common stock
dence.
Each new cyclical change prices, for example, have risen
to
uncomfortably
high
carries with it. its own problems rapidly
and
its o.wn/ challenges.
Within levels, hard to justify 011 the basis
of current earnings and dividends.
any overall growth pattern, more¬
Common stock yields are, in fact,
over, some sectors and some areas
well below those on high grade
will lag behind others or decline
temporarily
because
of special bonds. Only rarely has this been
the case in the past half-century.
factors.
7 The rate...of-, expansion so far, In my judgment, the market has
exaggerated
inflation
prospects
for example, has still left us with
termination to
.9*
o
'
'
•
;
.r
this.
'
-
v u-..
n
^,
'
'
.
_
Alexander Smith
Alexander
Jam
-
do
14th
at
Smith
the
passed
of
age
away
86.
Mr.
Smith prior to his retirement had
been
president
of
Pe
a
body,
Houghteling & Co., later Peabod*
Smith &
Co.
"r
"f '
Babbage & Kessinger
have become associated
with J. J.
B. Hilliard& Son, members of the
New York Stock
Exchange,
as co-
per¬
In terms of
perhaps to over 5 million
While such an increase
will be; attributable to the opera¬
tion of nopmal seasonal factors—
particularly, in the construction
ruary,
persons.
to" any. real deterioration
economic
ford
sectors—-rather
agricultural
than
LEXINGTON, Kx—Robert A.
Babbage and Thomas B. Kessinger
unemployed
.of December.
specific-labpr market areas, latest
Government, surveys (November,
1958), show some 83 so-called sur¬
plus areas—that is, areas with 6%
or more unemployed.
The likeli¬
hood is that unemployment will
rise further in January and Feb¬
and
With J. J. B. HiMiard
million
4
to be
in
activity, we cannot af¬
complacent about such
level of unemployment.
general stickiness of recovery
in this area, reflecting productiv¬
high
a
The
newly ity ahd labor force factors noted
earlier, js one of our main eco¬
Security
Trust Building. They were form¬ nomic'problems for 1959 and be¬
erly partners in the investment yond.
managers-of
opened
office
the
in
firm's
the
B. C.
-
Christopher Branch
LOUIS, Mo.—B. C. Christo¬
pher & Co,, has a branch office at
Oakland
Avenue
the
under
direction of Norman Supper.
the
Predicts
1.2
Million
Some.*:observers
home
feel
-building sector is
Starts
that
one
A
future.
near
a
tential
and
returns
for
more
upon
investors,
realistic
have
may
repercussions on other sectors of
the economy.
industry, important
negotiations are
scheduled for this summer. Failure
In the steel
contract
labor
of the
management
reach agreement
and
the nation's economic machine. In
any
event, the results of the steel
negotiations will set a
for
labor
contracts in
un¬
and
which
challenge
is inflation. The question
been asked by many — by
emerges
has
sophisticated
scene
whether
—
perity
well as
as
lay
ob¬
of the American economic
servers
can
our
new
pros¬
Fiscal
mark
on
lies
Discipline
question
important
the
domestic- economic
in the
area
of national
discipline. The President has
outlined a Federal budget in bal¬
ance for fiscal 1960 at around $77
increase
in
receipts
of
perhaps
Pain
Short-Run
Worth
At
times, in
the short run,
homebuilding may seem to suffer
at. the hands of anti-inflationary
and fiscal policies, but
through such policies can
supply of mortgage credit be
increased in the long run.
The
monetary
only
the
has
Committee
Economic
Joint
"Public
policies must face up squarely to
the problem of inflation. Restrain¬
ing inflation never has been and
stated
the problem well:
never
will
be
job.
easy
an
It
requires making hard decisions
in public policies to contend with
problems which may become in¬
creasingly complex."
Hard decisions and keen judg¬
ment
also,
necessary,
are
on
the
part of the homebuilding industry.
This means striving continuously
to hold costs down, increase effi¬
ciency, and produce a quality
product for the consumers' dollar.
It
means,
also,
that
industry
leadership must encourage sound
policies on the part of our Fed¬
eral housing and mortgage agen¬
cies, and cf our Federal legislators
this
with
concerned
of
area
activity. In this connection, the
Congress will soon be inviting
industry • opinion
on
proposed
One
to me,
the home building industry can
serve their own interest, and the
public interest as well, would be
to oppose vigorously further Fed¬
housing legislation for 1959.
way
which,
in
of
seems
the
into
inroads
eral
it
private
This
standing firmly
against
direct
government lending, in¬
cluding the expansion of FNMA's
activities
to
support submarket
sector
housing markets.
means
interest
mortgage
other
lished
under
grams.
7 Making
rates
estab¬
Federal
Federal
pro¬
money
further increase the already large
pressures.
Federal
deficit, add to inflationary
ultimately threaten
the
existence
of
the
private
ticated, and have added that this
homebuilding
industry. This
prospect is not necessarily un¬ would indeed be a
heavy price for
welcome.
My
answer
on
both
all of us to pay for a temporary
counts is an emphatic yes — that
stimulus to housing markets.
we
can
have prosperity without
It
cannot
be
stressed
too
inflation, and, indeed, that we
must have, because the two are strongly that housing credit poli¬
cies must be established within
necessarily incompatible. For I
the
framework
of
the
nation's
submit that the creeping variety
overall monetary and fiscal poli¬
of inflation cannot long be limited
and
not in an
economic
to this pace, and as it builds to a cies,
vacuum. In this kind of a setting,
gallop develops the imbalances,
it
may
well be that in some
the
hardships,
the
inequities,
future periods the long-run public
which result ultimately in eco¬
interest as well as the
private
nomic
collapse.
The
American
homebuilding interest, will call
people must be convinced that in¬
for temporary restraints on hous¬
flation is not inevitable. Resigna¬
tion to inflation—for the longer ing demands. Federal housing in¬
Many
have
answered
no
including some among the sophis¬
well
immediate
the
term
as
years
ahead—will in itself set off
actions
as
building inflation further
pressures, and
cannot
strumentalities
encourage
all out expansion under
all condi¬
tions if the nation is to meet suc¬
inflationary
pressures
into
the | system
and
bringing
and preserve the purchasing power
about the very dangers we fear.
of the dollar. Sober reflection will,
cessfully
labor
Businessmen,
and
consumers,
governments must be united
their determination to develop
in
and support programs
that
are
and policies
not inflationary.
Indeed,
inflationary
fears hardly seem justified. Rela¬
tive price stability appears to be
a
good bet in 1959. Our plant
capacity and labor force are still
not being fully utilized; produc¬
tivity is increasing significantly;
farm
crops
are
abundant; and
foreign competition for American
in
the
coming
is
year
keen.
I
am
Inflation Threatens Homebuilding
In the longer run, as
of
our
American
all
us
that
the sacrific¬
nomic
gain, for permanent, longstability
in
a
of
sustained ■ economic
growth.
economic
term
setting
F. L. Putnam Fla. Office
NAPLES, Fla.—F. L. Putnam &
Inc.
has
opened
a
Company,
branch office at 658 Fifth Aveiiue
South
the management <of
Mr.
Millet was
under
Millet.
formerly in the investment busi¬
ness in Augusta, Maine.
as
short run,
direct interest in combating in¬
bulwarks
dictates
ing of temporary short-term eco¬
in
homebuilders have
well
convince
sure,
self-interest
Howard
flation, because the availability of
mortgage credit—the lifeblood of
home building — depends ulti¬
mately on the volume of longterm savings. Thrift is one of the
National
mortgage
long continue without directly available to housing
•markets
through
FNMA
will
new
inflationary
other industries.
Another
residential
engendering
a
billion. This represents a proposed
a
—
upon,
of
the
reduction in spending from fiscal
1959 of over $2
billion and an
in which
this., year
touched
stickiness
industry
notwithstanding
general economic growth, because
of
the
reduced
availability of
cur
have
are
assuredly
pattern
decline may oc¬
areas
I
the
threat
labor
to
may
result in
long and costly strikes. Such a
development in one of the nation's
markets
basic industries will be a serious
blow to maintaining balance in
of
fiscal
the
including
shakeout
based upon
re-evaluation of the inflation po¬
scene
•
ST.
5100
for
in the stock market
.
firm of Babbage & Kessinger.
than
more
are
farm incomes—the main economic
pregnant
as
recovery
problems in housing markets un¬
solved.
As long as ceiling rates
This
sons
economic
sustained
After all
full and
employment, lagging capital ex¬
penditures
by
business,
lower
however,
as
over
The 1960 budget reflects our de¬
scourge.
potential threats to
guaranteed mortgages,
will still
leave basic
-
,
help | foster private economic re¬
covery
and
development,
and
the
reviewed—and there
cluded from competing freely for
•'
cycle experience
also fav org-further economic ex¬
and
peace,
7/
"Past
by
mentous decade ahead by entering
the ifiscal year I960; with a world
at
construction vol¬
billion, com¬
$52
continued
1959.
na¬
demand for Fed¬
as
a
about
pared'.with less than $49 billion
in 1958; and steel ingot production
at
close to
110 million tons as
for
re¬
eral expenditures.
Our
1958;
.
ized,! will', indeed provide
whole
as
of
against 85 million in 1958; if real¬
This budget is designed to serve
the heeds of the nation
in
ume
be
legisla¬
require from
of ; American
industry—
autos, construction, and steel. A
5.1/2' million car year, 30% greater
ments
decade facing us, the challenges to
representative government will be
no
the
Activity./' Underlying
ness
adjust¬
relations of
the
government-
recent
sponsored 7survey on the 1959 out¬
look indicates a steady, though
quick-/
successive
nations to each
and
The",most
World
change has
each
sharpening the
ments
of
end
of achievement
pace
economic
this
hence of
funds.
the flow of savings and
President's
a
boosted
upon
that
be/
can
the
estimate,
figure,
Permanent Cure lor Homebuilding
credit,
believe
Few
spending
within
tained
in the fiscal year 1960. These pay¬
ments
billion.
$10
3
Federal
Interest payments are estimated
to rise $49o million to S8.1 billion
than
page
high,
veterans advance in age.
our
from
population, the cost of
our
67
(463)
econ¬
and must be encouraged as
the fundamental source of financ¬
Alexander McCabe
,
Alexander McCabe passed away
Jan.
18th
at
the age of
65. Prior
had
been
partner in Dreyfus & Co.
*
to
his
retirement
he
a
William A. Gutekunst
omy
William
A.
Gutekunst
passed
for residential building and away Jan. 15th at the age of 57
other capital formation. So long following a brief illness. Mr. Gu¬
as inflation motivates
the actions tekunst had been a partner of F.
Rossman
& Co., New York
of
consumers
and investors, so L.
ing
long will it be difficult to increase
City.
€8
(464)
The Commercial and Financial Chronicle
Continued
With C. F. Chiids
from
page
147,633,670 net tons
4
wGok bsforc.'
(Special to The Financial Chronicle)
CHICAGO,
Cadieux
has
111.
—
Richard
to
added
been
E.
the
c;taff of C. F. Chiids and Company,
141 West Jackson Boulevard.
The State of Trade and
carryovers of undelivered orders by the
sible steel strike deadline—rolls around.
Tne metalworking magazine said
Hornblower, Weeks Adds
(Special to The Financial Chronicle)
111.—John
CHICAGO,
E.
Ped-
derson has been added to the staff
Hornblower
of
&
Weeks,
134
La Salle Street.
South
(Special to The Financial Chronicle)
CHICAGO, 111.—Arthur K. Munoon,
Jr., is now affiliated with
Mitchell,
Hutchins & Co.,
231
South La Salle Street, members
the
New
York
building
backwards."
up
tnat in
a
P°s~
It explained that buyers of oil
the
cost of carrying
immediately ahead
heavy
inventories
during
the
The
Midwest
and
that the mills figure they will have
a
carryover
1959
mean
problem by the
June to clean up these orders."
about the present steel market," says
gradual.
But
there
-r/ -''-AM
'
'
y
'/
/
/,
'/''//<
by
distributed
the
week
.
ended
..
,
17
Jan.
decreased
output
1959
signs that plate and
will soon be spilling over from the
Pittsburgh and the East." < ^
The metalworking weekly said the
biggest improvement in
orders is coming from the automakers. It has learned that two of
the Big Three auto companies have firmed
plans to stock up with
enough steel and parts by June to weather a two months or longer
steel strike, if necessary.
1
"Iron Age" said that a check of
purchasing agents in the Chi¬
Jan.
orders
now
are
Loadings Show Sharp Cain Over Prior Week
or 3.5%, below the corresponding week in 1958, and
drop of 130,767 cars, or 19.2%, below the same week in 1957.
Lumber Shipments Up 21.4% as Compared
*
/
With
Holiday Week
,
Lumber shipments of 477 reporting mills in the week ended
10, 1959
tional
of
above
21.4%
Jan.
ended
Barometer."
Trade
3.4%
were
week
1.8% above production, according to the "Na¬
were
Lumber
shipments
Automobile Output This Week Exceeds
Last Week's Production
to
1959.
the
same
firm
than
more
3,
In
the
was
Unfilled orders amounted
1959.
10
of Jan.
week
established
pace
in
new
This reflected a gain in
the case for the holiday
production.
'
For the Jan.
of
to 38%
Y
.
10
week, as compared with the previous holiday
3, 1959, production of reporting mills was 46.6%
higher; shipments were 21.4% above; new orders* were 2.3%
above. Compared with the corresportding week in 1958, production
of reporting mills in the week ended Jan. 10 was 7.7% below;
week ended Jan.
manufacturers, for the week ended
"Ward's Auto Reports" estimated
a
•
J
stocks.
United States auto
>
freight in the week ended Jan.. 10, 1959
over revenue
cars,
drag¬
ging their feet, apparently in the belief that if they need steel in a
hurry they can always get it.
held
by
were
550,090 cars, a gain of 82,391 cars, or 17.6% above; the
preceding holiday week ended Jan. 9, 1959.
Loadings for the Jan. 10 week reflected a decrease of 19,717
cago area indicates many are counting on a steel strike of at least
six weeks' duration. At the same
time, some steel users are
S"''',/
preceding week.
Loadings
*
«T
weekly production
the electric
Jaa*.
at 13,324,000,000 kwh., according to the Edison
Output the past week was below the level
Institute.
Car
Midwest into
Si*#"/'**
,
average
on
electric \ energy
of
estimated
was
For
sheet demand, particularly,
fStock Exchanges.
.
based
230,000,000
kwh. below that of the previous week, but_ showed
a gain of 924,000,000 kwh. above that of the comparable 1958 week.
Age," "is that Chicago, St. Louis, Cleveland, and the area
surrounding Chicago are gaining substantially in steel demand
each week.
The buildup in Pittsburgh and the East has been
more
114.5%
I
ago the actual weekly produc-.,
or 93.1%
'.
use
"Iron
slower and
amount
Electric
of the
Age" said the situation has reached the point where
several tube mills have indicated they will not book
casing orders
for June delivery.
"This is
end of May and want to
"One peculiar thing
|
1
^
rate was
the
ago
light and power industry for the week ended Saturday,
months
interpreted by steel buyers to
production of 74.6%
.(*'
Below Previous Week's Total
Electric Output
country casing and tubing have, in several cases, ordered more
tonnage for May delivery than they have for February or March.
In this way they figure to
protect themselves against a strike with¬
out
,*
1947-1949.
for
products "the
some
22, 1959
Thursday, January
.
■
month
*Index of production is
"Iron
With Mitchell, Hutchins
Of
market is
June—and
*
*
a
production 1,840,000 tons. A year
tion was placed at 1,496,000 tons
Industry
time
"
*
week
.
with actual
compared
1
like
the
For
.
Jan. 16,
the
opening week of
output at 134,042 cars and
shipments
21,542 trucks compared to the previous week's totals of
133,362 and
1.9%
were
above; and
orders were 4.4%
new
above.
22,564.
So far this
year, both car and truck volume
1958. Indicated for
January,
ahead of
are
according to
total that should
a car
mately 100,000 units.
Business
running 7%
"Ward's," is
by approxi¬
top the same month a year ago
Output in January, 1958, was 489,357.
Commercial
week
"Ward's" said scattered
six-day output was planned through¬
out the industry in the period covered
scheduled
truck
were
Saturday
sites.
Other
work
for
Big Three
facilities at
Both
Motors
and
Studebaker-Packard
Liabilities
week's
followed
a
to
a
a
health checkup once
year? Or do you put it off
because you're afraid your
doctor might
find
some¬
Jf it's cancer you're worried
about, remember that doc¬
tors are
curing many more
cancers
than they could ten
cans are
of
800,000 Ameri¬
alive today, cured
cancer...
many
of them
because they had made a
habit of having annual
checkups
no matter
well they felt...
them because
how
all of
they went
to their doctors in time!
IVIake annual
a
;
checkupscp
habit... for life!
AMERICAN CANCER SOCIETY
at
trend
"Steel's" composite on
$40.33
a
The
gross
steelmaking
scrap
Iron
and
Steel
Institute
announced
that
the
operating rate of steel companies will average *133.7% of steel
capacity for the week beginning Jan. 19,
1959, equivalent to
2,147,000 tons of ingot and steel castings (based on
average weekly
production for 1947-49)
as
compared with an actual rate of
s:131.4% of capacity, and 2,111,000 tons a week
ago.
Output for the week beginning Jan. 19, 1959 is
equal to about
75.8% of the utilization of the Jan.
1, 1959 annual capacity of
raw
•
W
•
$100,000, rising front-25 in;.;
•' vW.vly:
/;;
.
,
.
retailing, down
Manufacturing casualties held
succumbed than last year in all
concerns
foodstuffs and meats in general
index.
Its
chief
function
is
use.
show
to
It is not
the
at the wholesale level.
a
general
'•
V
little change in
with price increases on" hogs, some
offsetting declines on flour, coffee,
and tin.
The Daily Wholesale Commodity Price
Index, compiled
by Dun & Bradstreet, Inc., stood at 274.51 on Jan. 19, compared
ended
274.41
Jan.
scrap,
a
week
19,
and lard
earlier and 276.54
on
the
comparable date
a
year ago.
•
There
noticeable decline iru both domestic and export
buying of wheat in the latest week, and prices slipped some¬
There were some sales to India,
Pakistan, and Yugoslavia
but volume was less than anticipated.- The
buying of rye and oats
was
a
of
what.
Vwas
up
sustained at
the
level
slightly. Purchases of
of
coi n
the earlier week, and prices were
dipped "and prices were fractionally
lower.
•
*.
Trading in soybeans advanced appreciably and prices notice¬
ably exceeded those of the preceding week. Preliminary estimates
indicate that the soybean crush in December
The Department of Agriculture
reported
was
that
at
a
record level.
record
volume
crop soybeans had been placed under Government loan.
Although there was a slight rise'in export buying of flour
during the week of Jan. 19, domestic trading was sluggish; flour
prices fell moderately. A noticeable rise in export commitments
of
Pakistan
a
1958
to
advanced 66 cents to
ton last week, highest since November.
American
■
general commodity price level showed
week
with
complex shapes in
of
excess
Wholesale Commodity Price Index Stable
The
the
,
•
food prices
of
Most of the tonnage is
going to the
automotive, appliance, and container industries.
Steelmaking operations last week held at 74.5% of 1959 ca¬
pacity (comparable to 78% of the 1958
capacity). Output was
about 2,109,000 net tons of steel. Rates in nine
out of 12 districts
held steady or were up.
metalworking.
failures, those with liabilities under
dip to 36 from 39 but they remained slightly
size last year. Thirty-three of the failing
this
More
cost-of-living
>
every facet of
the
226
was
pound of 31
of product demand by the
metalworking weekly in¬
The process will
elongate carbon steel 70% (vs. the normal
limit of 42%), harden aluminum
95% without changing its size,
shape defiant refractory metals and perform other remarkable
feats. Now being used in the aircraft and
missile industries, it
promises less expensive production costs for
of
and
253
a noticeable decline again in the Wholesale Food
compiled by Dun & Bradstreet, Inc. It fell to $6.16
on
January 13th from $6.24 a week earlier, a decline of 1.3%.
The index was 4.5% below the $6.45 of the similar date a year ago.
Commodities quoted higher were barley, beef, hams, bellies,
cottonseed oil, potatoes, and steers.
Lower in price were flour,
wheat, rye, lard, butter, sugar, coffee, cocoa, eggs, and hogs.
The Price Index represents the sum total of the price per
predicted that consumers
inventory stockpiles before July.
process, explosive forming, is using the awesome en¬
explosives to form the world's toughest metals into
space
shapes with fantastic ease, "Steel" reported.
of
52.
grains, steel
age
in
previous week
Price Index,
assurances that the steel
reach them when it's needed. Automakers
new
was a
34
January shipments of cold-rolled steel sheets will
equal or
slightly exceed last month's. A Chicago mill has its biggest back¬
log in two years. It sold out through the first
quarter on cold-
A
the
Wholesale Food Price Index Off Sharply
problems—getting
ergy of
involved
were
in
construction.
There
rolled and galvanized sheets.
thing wrong?
years ago.
A survey
282
from
\
expected to step up buying until the end of the first
quarter.
As strike fears mount, even the more
conservative buyers will
start pressing for extra tonnage. "Steel"
dicates:
the
reported
lines; the most noticeable increases from 1958 appeared in retailing
and
aren't
have
161
steady
tightening.
Major steel consumers are asking more questions about de¬
liveries, but they have not started buying ahead. They are con¬
will add 4 million tons to their
in
294
commercial services to 15 from 23.
Detroit area, and the market is
really too busy to
to
173, while the toll among wholesalers dipped to 28from 29, among construction contractors to 38 from 44, and among
suppliers have decided it is safe to stock up now that
automakers have given them firm orders
through June. The spe¬
cial steels they need are
getting harder to obtain. Delivery prom¬
ises for pickled strip and shim stock
average five weeks in the
Are you
declined
preceding week,
Most of the week-to-week decline occurred in
Part
they have ordered will
the
more
or
against
the preceding week.
today. Automotive part suppliers are leading
parade in accumulating inventories, the
metalworking weekly
cerned with immediate
the
$5,000
as
businesses had liabilities in
the statement that most steel consumers
will begin building inven¬
tories in the next few weeks. Smaller users are
already starting to,
the magazine said
}•'
failures
in
Among small
ago.
year
above
of
casualties
$5,000, there
Steel Consumers to Build Inventories
r
321
Inc. However, casualties exceeded moderately
occurring in the similar week last year and the 278 in
Compared with the prewar level, failures were 20% below
1957.
"Steel," the national metal working weekly, is
authority for
said.
from
15
the total of 367 in 1939.
Monday through Saturday routines, said "Ward's," while Chrysler
Corporation was on a straight five-dav schedule. "Ward's" said
the strike at the Pittsburgh Plate Glass Co. forced
Chrysler Cor¬
poration to close its Plymouth operations on Jan.
19, while Dodge,
DeSoto, Chrysler and Imperial will work three days, then stop as¬
sembly.
■
..' :' ;v ?.?;•;;' ' v.' ,• ■
:
■
the
industrial
and
Jan.
ended
the 260
Dixom, Mich., unit and Buick-Oldsmdbile-Pontiac
Arlington, Texas, and Southgate, Calif.
American
Moderately From
Dun & Brad street,
by its report. Ford Division
car-making plants and two
factories programming six days
four
Lincoln's
Failures Down
Earlier Week in January
reduced rice offerings
the prior week's levels.
a'ficl prices
were
Domestic transactions in rice
sustained
were
at
steady.
Wholesalers reported a decline in coffee supplies, but buying
lagged and prices were somewhat lower. Coffee prices are ex¬
pected to rise in the
near
future
as
stocks
continue
to
dwindle.
Cocoa trading moved up during the week and
prices were fraction¬
ally higher.
of
Following the end of the Cuban revolt in the middle
week, trading expanded and prices leveled out.
Hog trading in Chicago moved up at the end j'of the Week
the
Volume 189
Number 5814
.
.
.
The Commercial and Financial Chronicle
prices finished slightly higher; hog receipts rose noticeably
the prior week and slightly exceeded those of a year ago.
of steers slackened and prices were down somewhat;
and
over
Purchases
cattle
receipts
close
were
to
the
preceding week.
The
salable
supply of lambs declined and prices were steady.
Cotton prices on the New York Cotton Exchange finished
the week slightly higher than the previous period. Trading moved
buyers expected that the Commodity Credit Corporation
would report a sharp increase in the volume of cotton pledged
for loan entries.
Exports of cotton in the week ended Jan. 13
up
as
(465)
tax
claim
of
surplus
right
unchanged to 4% higher than
was
re¬
according to
year ago,
a
tax
release
would
the
ad¬
And surely, also,
debt
reduction
revenues at
rightful
to
some
suitable times.
If
we
these
have
to
are
choices,
to
luxury
must begin
we
exercise
increases in this budget will breed
increases in future years.
I
cannot, of course,
that
this
budget.
to you
say
is an absolutely ideal
Until the heirs and as¬
signs of Plato convoke an assem¬
bly of philosopher-kings, we shall
probably have to get along with¬
out such a perfect document.
In
in
like ours
gaining a
third objective: economic growth
that is healthy in terms of a stable
will
There was
v
noticeable rise in the buying of women's Winter
a
coats, dresses, and fashion accessories and
volume in sportswear
was up slightly; overall sales of women's apparel moderately ex¬
ceeded that of a year ago.
Year-to-year gains in purchases of
men's suits, topcoats, and sportswear offset decline in furnishings.
Increased buying of boys' shirts, slacks, and jackets boosted total
sales of boys' merchandise slightly over last year.
The call for household goods was up moderately from the simi¬
lar 1958 week, with appliance dealers reporting the most noticeable
increases; best-sellers were television sets, phonographs, and auto¬
matic laundry equipment.
Interest in furniture was up slightly
from last year, with principal gains in dinette sets and upholstered
"White Sales" again helped volume in linens climb
merchandise.
but interest in draperies and floor coverings re¬
mained close to that of a year ago.
last year,
over
'
Although housewives stepped up their buying of frozen foods,
in
first
But after
some
time
in
several
budget
making.
study and inquiry
I
have
satisfied myself on
things about the President's
two
pro¬
posal:
The revenue estimate which
to
total
roughly
$76.5
billion, after allowing for certain
proposals to increase receipts, is
(1)
appears
reasonable;
rate
of
reminiscent
taxi
sion, and after administering
4%
advanced
1959
from
Board's index for the week ended Jan.
Reserve
last
the like period
above
year,
10,
In the pre¬
ceding week, Jan. 3, 1959, an increase of 3% was reported. For
the four weeks ended Jan. 10, 1959, a gain of 10% was registered.
1958 to Dec. 27, 1958 an increase of 1% was
period.
For the period Jan. 1,
recorded above that of the 1957
According to the Federal Reserve Board's index, department
in New York City for the week ended Jan. 10, 1959
showed an increase of 1% above that of the like period last year.
store sales
preceding week, Jan. 3, 1959, a decrease of 1% was re¬
ported. For the four weeks ended Jan. 10, 1959, an increase of
4% was noted. For the period Jan. 1, 1958 to Dec. 27, 1958 an
increase of 3% was registered above that of-^he corresponding
In
the
^
period in 1957.
Continued
from
hard-headed
Aspects of Economic
Growih and Public Policy
enjoy may persist well out into
the year, demand will likely be
pressing again upon productive
resources
as
leave this decade
we
behind.
In the
will
accorded
be
must face the
take
1959, we
in
us
issue of where we
the growth
want
period that
grace
of the 1960s to
in
in which
this decision will be put to us.
Let me take up with you but one
—the major one. It is the Federal
budget for the fiscal year begin¬
ning next July.
are
many ways
budgeting.
President,
his
know, has
as you
posing to the Congress
that
is
balance
in
As
billion.
of
intention
a
pro¬
budget
about
at
$77
the
two
years ago, revenues are up by $5
billion, Uut all of that increase—
partly reflecting the impact of the
estimates
budget
with
compared
recession—has
of
been
only
absorbed
by
larger expenditures. If the Presi¬
dent had not expressed his oppo¬
sition by veto and otherwise, at
the last session of Congress, it is
fair to
an
that bills aggregating
say
additional $5.5 billion of future
would
expenditures
enacted.
'
-
-
-.
.
The President's
proposal
seems
have
•
new
•
'
been
.
$77 billion
designed to main¬
But already the ad¬
at least $80 billion
fiscal year 1960 and, perhaps,
a
figure approaching $85 bil¬
spending
this
Is
to
fiscal year
lion in
the
1961.
course
we
wish to
take?
The
and
Nation
listen
suaded.
The
announced
attitude
larger Federal expenditures are
voicing their demands in the new
Congress. These demands, if ap¬
proved, could well raise Federal
to
There
common-sense
vocates of a hundred schemes for
in
place.
this
tain
should
before
it
stop,
is
so
look
per¬
The growth of the econ¬
but
sensible
some
other
of
treat¬
tax
will bring, to be sure, added
without higher tax
is
make
my
a
There
those
are
who
take
a
pessimistic view that infla¬
is
inevitable
willing to join in
but
some
who
are
futile ges¬
against it like the outfielder
who throws his glove at a ball
sailing out of the park. Then there
are the flourishing practitioners of
escalation who, in effect, offer to
supply cushions to a few in the
theater so they can see over the
heads
in
those
of
front
of
them
going to look
pretty dubious when everyone is
supplied with a cushion.
a
tem
Inflation Unnecessary for
Growth
assumption that
busi¬
growth—the economy doesn't
ness
to
run
a
little fever to keep
remaining time to
get on to one simple point about
it all. What we need most is wide
want to
Let
proposal.
Last
in
ees
and
stockholders, in carrying
The first, and clearest, point is
his
judgment
because, on the this: A steadily rising price level
basis of six years close associa¬ erodes the value of savings. This
tion with him, 1 have no doubt fact is familiar to all of the mem¬
But
whatever that, if he felt he needed bers of the Economic Club.
another billion or two or five for it is obviously not clear to the
accept
matter
defense, that extra sum would be majority of people who are con¬
to
set
aside record
in the budget. Even the inference tinuing
that he is skimping on the provi¬ amounts of money in savings de¬
sion of an adequate defense in posits, life insurance, pension
funds and other fixed assets, in¬
order to achieve some other ob¬
jective,
such as balancing the cluding still substantial amounts
in U. S. savings bonds. This group
budget, is as preposterous as it is
includes most of the employees of
repugnant.
1
companies represented in this au¬
In the President's judgment his
dience. It is as essential that we
$77 billion budget also adequately communicate with these workers
provides for non-security needs. on the future value of savings, as
He invested a great deal of per¬
it is that we continue what have
sonal effort in the preparation of
come to be almost compulsory an¬
this budget. He brought to it a
nual discussions on the level of
fine
sense
of
fairness
toward current earnings. I only wish that
conflicting claims for budgetary an estimated deduction for the
support
that are important to effects of inflation could be at¬
organized groups of our people. tached
to
every
paycheck
as
This budget is probably as equit¬
plainly as we now indicate the
one
as
could
would
make
year,
a
ac¬
be
short, direct, relevant, thoughtprovoking. They should be de¬
signed to evoke constructive ac¬
tion, not destructive argument.
I am venturing now into a field
that many others are better qual¬
ified to handle than I.
be
revenues
I have done
only to indicate my feeling of
urgency about a wider public un¬
derstanding of the economic is¬
so
sues
we
about to face.
are
It has become almost
ican ritual to have
an
Amer¬
meeting like
this and hear a speaker on some
matter of public interest. But in
many cases, I fear, that is the end
bid
a
We put out our ci¬
of the matter.
gars,
other good-night,
each
to' our,jhomes
return
and
resume
absorbing daily ac¬
though no meeting had
taken place. I hope the end result
of our coming together on this
day
tivities
our
as
occasion will be action.
this pleasant dinner
to
us—and to our
I believe
will be useful
children
—
each of us is moved to think
about
act
the
if
and
problems discussed
here.
North White¬
Alfred
Professor
head
stated the
hour
in
challenge of this
philosopher's terms
the
when he said, "A great
a
society is
society in which its men of busi¬
ness
think
greatly of their func¬
tions." It is the function of busi¬
leaders
to
point the way
attainable, privately pro¬
duced and stable growth in this
economy.
I hope we shall both
think greatly and act strongly to
ness
toward
achieve it.
John F. Tice Joins
portunity to make a few plain
about
each
American's
says
it provides adequately for points
the national security.
I am will¬ stake in a stable dollar.
a
me
messages on "your stake
stable dollar".
They should
a
goods and services. The President
able
conviction that
these facts by
Americans
simple
use my
do not know all out the daily routine of executive
In these regular contacts
its details at this writing. But I duties.
think we can all agree that $77 with
literally thousands of our
billion
can
command
a
lot
of fellow Americans we have an op¬
to
of
of
matchless communication sys¬
that is available
to
carry
next
Of course, we
that
own
difference.
modest
is
put effects of taxes, insurance premi¬
together today in the interests ums and other items that are de¬
rates or more taxes. But are we of the various groups concerned ducted in a literal sense.
It is essential that we make this
above all,
of the whole
prepared to commit in advance but,
the
American people.
the growth of Federal revenues of
Such effort now to obtain some public
changes
in allocation as realization of the importance of
for the next several years to sup¬ minor
omy
It
understanding
a
who
remonstrated with him for going
through a red light, "Oh," he said,
"I've got to go through this red
light, so I'll catch all the others
on
green!"
wife
existing programs
nomically valid.
on
Some
remark
my
public understanding of the price
of price inflation.
Then, I think,
and proposals.
we will get the public response to
The budget which the President
change some of the well-known
has outlined is a key issue on
conditions that foster it.
which each of us can take a stand.
Each of the more than a thou¬
I
can
recommend
it
in
broad sand of us in the assemblage deals
terms as fiscally sound and eco¬
with scores of customers, employ¬
to
ment
ing
6
page
to
healthy—and further that we need
not accept it as inevitable. I re¬
gret that time permits me only to
assert
these conclusions.
But I
gories enlarged this fiscal year by
special factors, such as the reces¬
Federal
the
of
driver
and foreseeable needs of the year
after recognizing the de¬
some
expenditure cate¬
system would remain.
that the billions of interoffice let¬
need
in
reach this stage of
inflation
in
ters and pay envelopes that busi¬
essential to a good
ness
distributed last year.
Here
growth. This position is
reasonably arrived at for the real
ahead,
ever
as
I start from the
reduced
we
universal escalation it is difficult
a
relgard
degree
some
and
inflation is not necessary for
The
produce, poultry, and fresh meat.
Department stores sales on a country-wide basis as taken
oft-tilled
expenditure
level of about $77 billion appears
(2)
cline
the
fact
but whose scheme is
canned
goods, and some diary products, total food sales were un¬
changed from the prior week. Grocers reported declines in fresh
covers
the
tures
I have not been immersed
Washington
of
aware
am
apparently
tion
the
in
Should
cording to the Post Office Depart¬
a
ment,
approximately 26 billion
suggestion
first class letters were mailed by
on it. It is a
subject that evokes
business in this country.
Add to
many views. There are those who
decision-making
For
I
comments
no
years
individual
deposits.
ground. I propose to make but
few
in
+2; New England —5 to —1.
of
savings
or
millions
this subject
izes this kind of
to
economy
progress
dollar.
percentages: East North Central, South Atlantic, and Pacific Coast
+ 1 to -f 5; Middle Atlantic and West North Central 0 to +4; East
South Central and Mountain —1 to -f-3; West South Central —2
'
an
spur
rather
such perfec¬
value
sector
the give and take that character¬
democracy,
tion is possible.
"real"
to envisage what kind of economic
spot estimates collected by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1958 levels'by the following
a
the
pensions
realistic
that
the
discipline
over
the expenditures for future
years. Such discipline begins with
the present budget, for program
now
in
appraisal of growth
goals, a sensible perspective on
the
limited role
of
the
public
A
Now
Must Discipline Our Budget
of
The total dollar volume of retail trade in the week under
of
must bear in mind the
we
pared with 2,548,000 in the corresponding period a year ago.
view
that
nomic progress.
bales, compared with 66,000 in the prior week
111*000 in the comparable period a year ago. Exports for
the current season through the 13th totaled 1,410,000 bales, com¬
by numerous clearance sales promotions, consumers
stepped up their buying of apparel, some appliances, and linens in
the week ended Jan. 7, and the total dollar volume of retail trade
slightly exceeded that of a year ago. Morle noticeable gains were
prevented by unfavorable weather in some areas and limited stocks
among some retailers. Scattered reports indicated that the buying
of new passenger cars rose somewhat from the prior week and
were slightly higher than a year ago.
economic
revision
a
ditional private capital and initia¬
tive to exploit the vistas of eco¬
and
Clearance Sales Promotions Stimulate Trade
to
structure
amounted to 59,000
Attracted
from
revenue
growth
6D
Cruttenden, Podesta
CSpocial to The Financial Chronicle)
DENVER,
Colo.—John F. Tice
has become associated with Crut¬
& Co.,
tenden, Podesta
Tice
Mr.
Street.
was
17th
524
formerly
in the trading department of Car¬
roll & Co.
Hersh 'Eatherton Adds
(Special to The Financial Chronicle)
DENVER, Colo.—Robert N. Trevallee has been added to the staff
of
& Associates,
Hersh Eatherton
509
17th
Street.
With L. A. Huey Co.
(Special to The Financial Chronicle)
DENVER,
Ladet
is
Colo.
now
Ludovic N.
—
with
L.
A.
Huey
Co., Equitable Building.
Now With Walston Co.
(Special to Tiie Financial Chronicle)
DENVER, Colo.—Jack H. Oreck
joined the staff of Walston &
Inc., Denver U. S. National
Center.
He was formerly with
Columbia Securities Company of
has
Co.,
Wyoming.
^
Federal outlays? Is
simply to be one of
matching higher revenue yields
with higher expenditures?
Such, it seems to me, is a woe¬
fully uninspiring objective for an
economy sparked by private en¬
terprise and about to enter a
great new age of technical devel¬
opment. Surely the President was
right, in his State of the Union
Message, in advising us to prepare
for the near day when we could
port
our
higher
program
allocate
some
of
the
increase in
prove
may
desirable
alter materially
need
not price stability.
the overall total.
comes
If the realization
after inflation has
mockery of a generation
only
getting back of the Presi¬ made a
budget promptly and of thrift, the result is not likely to
be just a minor change in our
vigorously we can help determine
By
dent's
in 1959, how much economic
growth will be absorbed by fu¬
ture
activities
of
the
Federal
Government.
We
can
help in¬
now,
monetary
or
fiscal
policies.
In
public reaction that would in¬
evitably accompany such a devel¬
opment, it does not require much
political imagination to visualize
vigorate the private sector of the
a
proposal requiring the Federal
economy. By
so doing we
can Government to make up — with
keep strong the drive essential to direct individual payments — the
our
free
system.
Joins First Fidelity
(Special to The Financial Chronicle)
ATLANTA,
Ga.
—
Charles
C.
Morgan, Jr. has become affiliated
with
First
Fidelity
Securities
Corporation, 11 Pryor Street, S. W.
the
difference between
the stated and
Merrill
Lynch Adds
(Special to The Financial
Chronicle)
MACON, Ga.—Thomas L. Duffy
Jr. has been added to the staff of
Merrill
Lynch, Pierce, Fenner &
Smith, Inc., Dempsey
Hotel.
70
The Commercial and Financial Chronicle
(466)
>
Securities
Advanced
in
Now
Research Associates,
Registration
Inc.
Dec. 1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital., Office — 4130 Howard Ave., Kensington, Md.
Underwriters
Y;/
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.
Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C. Offer¬
ing—Expected in January.
•
(by amendment) an additional 11,000,000
shares of capital stock (par $1.25). Price — At market.
stockholders.
Proceeds—For investment.
Alaska Juneau
Gold
Mining Co.
outstanding shares
Uranium
Mines
Podesta &
of
purchase
common
be used
company
shares
which
$11
for general
corporate purposes and may be
redemption or repurchase of the com¬
pany's mortgage debentures. Office — 335 Bay St., To¬
ronto, Canada. Underwriter—None.
applied
Allied Publishers,
Inc., Portland, Ore.
(letter of notification) 22,000 shares of common
(par $1). Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment
Nov. 28
All-State Properties Inc.
(par $1)
to
at the rate
of IV2 new shares for each share held (for a 15-day
standby. Price — $2 per share. Proceeds—For additional
working capital and new acquisitions, etc.
Office—30
Verbena Avenue,
Floral Park, N Y.
Underwriter —
None. Offering—Expected about the* middle of February.
surplus.
S100
American Asiatic Oil Corp.
ment.
Issuable under agreements with various
In American Buyers Life Insurance Co.
Life Assurance
Co.
policy holders
and
American
(both of Phoenix)
at $1.25 per share.
permitting them
Sales personnel
the right to purchase stock at $1.25
per share up to the amount of commission they receive
on stock sales made by
them.] Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
to
purchase
have
states.
been
stock
given
Office—2001 East Roosevelt, Phoenix, Ariz.
&
&
American Buyers Credit Co.
Nov. 13 filed 5,000,000 shares of common stock, of which
4,545,455 shares of this stock are to be offered for public
6ale at $1.75 per share. [Shares have been issued or are
Un¬
derwriter—None.
—
To
reduce
short-term
Underwriters—Lehman Brothers and
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman
Hagedorn, Inc., Manila, Republic of Philippines.
Proceeds
of
common
stock
(N.
Y.)
Feb. 28,
20c).
1958, filed 500,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds
—To
wells.
discharge current liabilities and to drill 10
Underwriters—To be named by amendment.
American
Enterprise Fund,
Inc., New York
.
,
decorating
for
a
an
$1).
Bargain Centers, Inc.
20
(letter of notification)
debentures
additional
,
trust
notes, second trust notes and construction loans.
may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.|
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 |Iighland Drive, Silver Spring, Md., is Presi¬
Company
dent.
&
/
American Telemail Service, Inc.
Feb. 17, 1958, filed 375,000 shares of common stock
(par
$1). Price—$4 per share. Proceeds—To purchase equip¬
ment
and supplies and for working
capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos Treat &
Co., Inc., of New York.
Change
in
Name—Formerly United States Telemail
Service, Inc. Offering—Expected early in 1959.
if Arden Farms Co.
Jan. 9 (letter of
.
notification) 5,263 shares of $3 cumulative and participating preferred stock (no par). Price—
$57 per share. Proceeds—To liquidate obligations accru¬
ing in the regular course of business. Office—1900 Slauson
Ave., Los Angeles 47, Calif.
Underwriter—None.
Reid &
Co., Inc., Cleveland, Ohio.
Price—At
held; unsubscribed shares
creditors in payment of all
of claims, at the rate of one share for each S4
for
be
market.
$300,000
due
Jan.
of
6%
each
part
Nov.
four
offered
of
/
\
to
1, 1958
To
creditors.
current
pay
Co., Ada, Okla.
(letter of notification) 200,000 shares of common
Price—$1.50 per share. Proceeds
For general
—
corporate purposes.
York.
Underwriter
(par 25 cents). Price—$1 per share. Proceeds—
For working capital.1 Address—P. O. Box
1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L. A.
Huey Co.,
'
Denver, Colo.
-
Central Hudson Gas & Electric Corp.
(1/27)
Jan. 2 filed 350,000 shares of common stock
(no par).'
Price — To be supplied by amendment. Proceeds
For
—
construction program.
.Co., New York."
-
Underwriter—Kidder, Peabody &
*
.
Wright
area
in
Jan. 21
fered
filed
for
rate of
145,940 shares of
subscription
Canada.
Big Bromley, Inc., Manchester, Vt.
9 filed 6,000 shares of common
stock,. $300,000 of
,
Dec.
5%
debentures
notes
due
due April 1,
April 1, 1980, the
1979,
and
$ir>o,OnO of 6%
common stock and
deben-
.
one
new
by
common
common
share for each
supplied by amendment.
&
10
shares held.
at
the
Price-
Proceeds—To be used
payment of bank loans. Under¬
Securities Corp., New York.
Webster
Dec. 31
due
stock, to be of¬
stockholders
Central Illinois Public Service Co.
filed $12,000,000 first
mortgage
•
(1/27)
bonds, series H,
Jan.
1, 1989. Proceeds—For construction program.
Underwriter—To be .determined hy competitive
bidding.
Probable
.
„
bidders: Halsey,. Stuart & Co.
Inc.; Blyth :&
Co., Inc., Kidder, Peabody & Co. and Merrill Lynch,
Pierce, .Fenner
the next three
administration expenses. Office—Mont¬
Underwriters—Nicholas Modinos & Co.
<Washington, D. C.) in the United States and by Forget
& Forget in Canada. .1
real,
be
writer—Stone
—
Quebec); for general prospecting costs;
v:
•
★ Central Illinois Electric & Gas Co.
for construction and for
and for general
/
■
•
Bargain City, U. S. A., Inc. (2/2)
29 filed 5,000,000 shares of class A common
stock
(no par). Price—$3 per share.: Proceeds—For
expansion
and acquisition or
leasing of new sites. Office
2210"
and
common
stock
Dec.
1958
Berry & Co., New
—
Cemex of Arizona, Inc.
Nov. 17 (letter of notification) 300,000 shares of
To
follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
—
Carraco Oil
•
years as
P. O. Box-506,
Underwriter—None.
Nov. 10
stock.
working capital.
Office—
Altschull, President, 1027 Jefferson Cir¬
cle, Martinsville, W. Va. Underwriter—Securities Trad¬
ing Corp., Jersey City, N. J.
>
Address
Brookridge Development Corp.
19 (letter of notification)
$2o0,000 of 6% 15-year
convertible debentures. Price—At par ($500 per
unit).
Proceeds—For expansion and working
capital
Office—
901 Seneca Ave., Brooklyn'27, N. Y.
Underwriter 'vSano & Co., 15 William St., New
York, N. Y.
sub¬
Underwriter—None.
new
Dec.
and
Street, Philadelphia, Pa.
basis of one
discharged; rights to expire about two weeks
mailing of offer. Price—$4 per share. Proceeds—
Bridgehampton, L. I., N. Y.
1, 1969 and
cents) to be
Bellechasse Mining Corp. Ltd.
Oct. 29 filed 800,000 shares of common stock.
Price—
Related to the market price on the Canadian
Stock Ex¬
change, at the time the offering is made. Proceeds—To
the
on
shares
current
claims
after
store and acquisition of real estate
be applied over the balance of
common
(par $1) to be offered for subscription by stock¬
of record
will
equipping
Walnut
'
/
share
3,000,000-
shares of common stock (par 10
offered in units of $100 of debentures and 10 shares of
stock.
Price—$100 per unit. Proceeds—For
a new
f
Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of
Emanuel, Deetjen
30,000
warehouse
Instrument Corp.
stock of the company
or
/
Nov.
new
Underwriter—
.
c/o Edward H.
American Mutual Investment Co., Inc.
Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first
Bowmar
Fulton
loans/
porate purposes. Underwriter—Bankers Bond Co., Louis¬
K>
and
Station, Boston 14, Mass.
at the rate of 30 .shares,for
$1,000 principal amount of notes at the price of
$7.50 per share. Price—At par. Proceeds — To reduce
current short-term indebtedness and for
working capital.
Office — Bluff ton Rd., Fort Wayne, Ind. Underwriter-
de¬
ville.
curity Bldg., Denver 2, Colo.
common
each
Bankers Southern, Inc.
April 14,' 1958, filed 8,934 shares of common stock. Price
—At par ($100 per share). Proceeds—For
general cor¬
writer—American Growth Fund Sponsors, Inc., 800 Se¬
■
(letter of notification) $300,000 principal amount
of 5-year 6% notes with stock purchase warrants at¬
tached. The warrant grants the right to purchase com¬
St., Houston, Texas. Underwriter—McDonald,
Kaiser & Co., Inc. (formerly
McDonald, Holman & Co.,
Inc.), New York.
convertible
r
Dec. 30
Management Corp.
ordinated
( 2/3-4).
Weston W. Adams & Co., Boston, Mass.
Feb. 10,1958, filed 400,000 shares of common stock
(par
25 cents). Price—$1 per share. Proceeds—To reduce out¬
standing indebtedness and for working capital. Office—
.American Growth Fund, Inc., Denver, Colo.
Nov. 17 filed 1,000,000 shares of capital stock
(par one
cent).
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denver, Colo.
Under-
15/.1970
Proceeds—To retire
(par $1). Price—At-the-market (estimated at $23
share).
Proceeds — To go to selling stockholders.
per
Underwriter—None
Oct. 30 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For investment.
Distributor—Ed¬
ward A. Viner & Co., Inc., New York.
of
Price—To
stock
1404 Main
American-Caribbean Oil Co.
of $500
for subscription by stockholders of record
,
Fidelity Life Insurance Co.
Feb. 28,1958, filed .258,740 shares of common stock
(par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock
pur¬
chase options. Price—To public, $6
per share.
Proceeds—
For expansion and other corporate
purposes. Office—At¬
Bankers
units
stock.
Boston Garden-Arena Corp.
Nov. 24 (letter of notification) 2,150 shares of
Bankers
lanta. Gt»
in
common
holders
(par
Proceeds—For investment,
offered
of
15-year 5,% registered debentures due Sept.
stock
if Axe-Houghton Fund B, Inc.
15 filed
(by amendment)
shares
.
ing stockholders. Price—To be supplied by amendment.
Proceeds-r-For working capital. Underwriter—Bache &
Co., New York.
Co., both of New York.
Jan.
.
bank
be
to
shares
50
if Bobbie Brooks, Inc., Cleveland, Ohio
for
each
64
shares
held; rights to
Feb. 10,1959. Price—To be supplied by amend¬
on
ri
Jan. 15 filed 250,000 shares of capital stock (no
par), of
which 150,000 shares will be sold for the account of
sell¬
debentures
expire
•
be offered
Office—North
Manufacturing Corp., New York (1/27)
$15,000,000 of convertible subordinated
.
;
and
junior bonds due Sept. 15, 1959. Office—54 Oakdale^St.,
Springfield; Mass. Underwriter—None/Y^-T^*^0•/
bentures, due Feb. 1, 1979, to be offered for subscription
by stockholders of record Jan. 26, 1959 on basis of
Nov. 24 filed 100,000,000 shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.
(par $1)
in units of $500 each. Price—At
par.
Underwriter—None.
filed
7
■'
/ v
to
Office—Atlanta, Ga. Underwriter—None. State¬
Avco
'+
debentures
of
mon
•
of
$250
if B. M." D. Cooperative, Inc;
.>
(letter of notification) $162.000,principal amount
ment effective Dec. 3.
Jan.
of
:•
Jan. 12
Autosurance Co. of America
Oct. 16 filed 250,000 shares of common stock (par
$2.50).
t*rice—$5 per share. Proceeds—To increase capital and
Corp., Portland, Ore.
i
'
La.
Underwriters—S. D. Fuller & Go,,. New York and
Howard, %Weil, Labouisse; Friedriehs & Company, New
Orleans,. La.
-« - • ■
-v
•-V -''
'"^1 4
.
cents per share).
Office—1301 Avenue L, Cisco, Tex.
Ramon Kannon is President.
units
15
"/
general corporate purposes. Business—Sale and distri¬
bution of liquified petroleum gas.;
Office—Covington,
Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
stock
Dec. 29 filed 685,734 shares of capital stock
be offered for subscription by stockholders
supplied by amendment.
Co., Chicago, 111.
(56Y4
par
in
REVISED
be supplied by amendment. Proceeds—To retire shortterm bank loans, and for working capital to be used for
Pastoral Co., Ltd.,
W
Cisco, Texas
Jan. 13 filed 4,000,000 shares of common stock. Price—
At
offered
debentures and
Australian Grazing &
the
to
be
stock
mon
standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for the
account of the company and the common shares will
be offered for the account of a selling stockholder. Price/
—To be supplied by amendment. Proceeds—To acquire
aew bowling centers and increase working
capital (part
to
be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
2.35 Front St., N. Y.
Underwriter — To be named by
amendment.
Offering—Expected any day.
Ltd.
at
To
.
entitle the holders to
(Canadian) per share
time to and including March 2, 1959. Proceeds—
at any
To
the
(1/26-30)
Associated Bowling Centers, Inc.
' «.
Nov. 24 filed 300,000 shares of 20-cent cumulative con¬
vertible preferred stock (par one cent) and 50,000 out¬
Jan. 15 filed 822,010 shares of common stock to be issu¬
able upon the exercise of outstanding stock purchase
warrants
—
ITEMS
/
V'/.-'"1.
ir..-.v
■
Proceeds—To repay fund$ borrowed from James Talcott,
Inc. and for inventories.
Underwriter. — Cruttenden,
Dec. 29 filed 640,660
of common
stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future.
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif. Underwriter—Lester, Ryons
& Co., Los Angeles, Calif.
it Algom
Price
be
to
''v
'
ISSUE
Blossman Hydratane Gas, Inc. (2/2-6)
,,/•.,:r;'
Dec. 29 filed $1,200,000 of 5% subordinated convertible
debentures due Dec. 31, 1978 and 120,000 shares of com¬
250,000 outstanding shares of common stock;
subsequently increased by amendment to 350,000 shares,
of which 250,000 will be sold for account
of selling
filed
15
AD OI TiON S
PREVIOUS
five common shares. Price—Of
units, $500 each, ancliof
notes, at piar. Proceeds—For general corporate purposes.
Business—A ski lift and school. Underwriter—None.
Jan. 5 filed
^ Affiliated Rind Inc.
Jan.
Co.
"/////
v.y'''V"'■<
tures
stock
Arnold Altex Aluminum
Thursday, January 22, 1959
.
SINCE
3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
—
.
if INDI CATES
•
if Armstrong Uranium Corp.
Jan. 16 (letter of notification)
mon
/
.
,
&
Smith, (jointly);
Eastman Dillon,
Co.. and Equitable Securities
Corp.
(jointly);. .Salomon Bros. & Hutzler. Bids—Expected "to
Union
Securities &
_
be received up to 10:30 a.m.
(CST)
on
Jan. 27.
-
.
»
if Central Mutual Telephone Co., Inc., '
Manaspas, Va.
Dec. .31. (letter of notification)
22,222 shares of common
stock (par $40) to.be offered for
subscription by stock¬
-
holders of record Dec. 28, 1958 at the rate of four
shai»es
of new stock for 11 shares of common stock now
held;
rights .expire
Proceeds—For
Jan, 26, 1959. Price—$12.50 per share.
general corporate purposes. Underwriter
on
Volume
Number 5814
189
.
The Commercial and Financial Chronicle
.
.
—Folger, Nolan, FlemingsW. B. Hibbs& Co., Inc., Wash¬
ington, D. C,
\
r'-
r
i.'V~--:
,
Century Food Markets Co.
working
capital.
Office—633 N. Water
waukee, Wis. Underwriter—None. '
price—$5 per share. Proceeds—To discharge bank loan
and to replenish working capital.. Underwriter— Janney
Dulles & Battles, Inc.? Philadelphia, Pa.;
Fibre Co.
.
4\k% convertible subordinate
debentures due Jan. 15, 1984, being offered for subscrip¬
stockholders of record Jan. 14, 1959 at
the rate of $100 of debentures for each 22- shares then
held; rights* to expire on Jan, 29, 1959. Price—At 100%
of principal amount. Proceeds — To - repay outstand¬
ing bank loans and for general corporate purposes, in¬
cluding additional working capital and future capital
expenditures Underwriter—Goldman, Sachs & Co., New
tion by common
Lake
City, Utah. Underwriter—Earl J. Knudson & Co.,
City, Utah.
Salt Lake
ic Connecticut Light & Power Co.
City Lands.. Inc., New York
•
*
*
i3 filed 100,000 shares of capital stbck'
Price—$29
Proceeds—To;invest in real .estate,; Office—
374&> 120 Broadway, Ne w, York, Nl Y. Underwriter
—Model, Rolafid & Stone, New York.. Offering— Ex¬
pected in early part of February.
' - V. , \r
share.
per
Room
Finance Corp.
Civic
(letter of notification) 6,000 shares of common
stock (par $4) to, be offered for subscription by holders
of stock, purchase warrants attached to the 51//2% capital
notes, series A.. Price — S15 per share.
Proceeds — For
Jan.
Certain officers and employees of the company and its
subsidiaries will be entitled to purchase shares not sub*
Engineering;, Inc.
64,011 shares of capital stock to be offered
preferred stock of General Nuclear Engineering Corp.,
at the rate of
tion
shares and 3.4302 shares of Combus¬
seven
Engineering stock for each
10 shares of common
stock and each share of preferred stock,
respectively, of
General Nuclear Engineering (of Dunedin, Fla.).
Refining Corp.
filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures dut
Oct. 1, 1968 and 3,000,000 shares c«f common stock to bf
offered in units
as
follows: $l,00u of bonds and 48 share*
v.-
v
Commercial Investors Corp.
28 (letter of notification) 900,000
Nov.
mon
stock.
Price—At
ceeds—For
(10 cents
par
investment.
Office—450
shares
So.
of
com¬
share).
per
Pro¬
Main
February 6
St.,
Salt
Humphrey
&
Co.; Putnam &
V
(Offering
Boston
from
internal
York
and
t
Spur Oil Co.
*
(Hornblower &
Wood
Wen
•
'
-•
."•••
-
G. -Kietz
Weeks
and
(Bache
(Monday)
The
&
Co.;* Inch
&
February
.
Common
Crosby
■
$300,000
■■]'''-LVi
V-
January 27:(Tuesday
-
Eastman
Co.;
~
(Offering to stockholders-underwritten by Lehman Brothers
"i,
and Emanuel, Deetiea
Co.) $15,000,000
■
■;1. Central
•'u.
.
.
■
t.'1Bids
11:30
Sire Plan of
-
EST). $12,000,000
Plan
■
(Bids
Co.
Peter
4
Inc.)
>
$500,000
(Tuesday)
invited)
Bonds
$25,000,000
(Wednesday)
Co.-J
Southern Pacific
$900,000
& Co.)
Morgan
(Shearson, .Hammill & Co.)
130,000 shares
>White,
Weld
&
'
February 25
(Bids
Equitable
Pacific
--v;.
Northwest Natural Gas 'Co,—--!—-Bonds
""
•"
Brothers)
(Lehman
c\
'
V
.
11
'Bids
.
a.m.
EST)
Bonds
$20,000,000
~
<
No
underwriter)
v.;-/
&
"
iS.
Fuller
D.
Co.)
&
and
Co.
$1,200,000
:
'
Gulf
Power
"
A
-
<
rr'
(Stern
S.
f.
Moselcy. & Co.»>150,000
"•
Bonds
(Bids
UU
shares
s«;.
<fe Co., Inc.)
North
and Banet, Fitch.
52,600 shares
shares
-
.
Universal Oil Processes, Inc
Common
(Lenman Brothers; Smith, Barney & Co.;. and Merrill Lynch,
Pierce. Fenner & Smith, Inc.) 2,900,000 shares
Power
Alabama
•
j,
•
,•
.-(Bids noon MST)
.
'Bids
11:30
February
r.:Denmark
a
'
i
r,
ESTi
5
(Kingdom of)—
„
1
Equip. Trust Ctfs.
(Dilirr:.
»
-•
Read & Co..
Kuhn.
be invited)
to
June
(Bids
to
ve
2
.<
1,350.000
$25,000,000
June 25
Mississippi Power
(Thursday).
,
Common
$20,000,000
to
$25,000,000
(Thursday)
Robert H. Green is President.
Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents). Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of plant and
office
equipment;
materials and supplies; and for
Denver, Colo. Underwriter—L. A. Huey,
,
l
(Kingdom of)
(2/5)
$15,000,000 of 15-year External Loan Bonds
of 1959. Price—To be supplied by amendment. Proceeds
—To be added initially to the Kingdom's foreign ex¬
change reserves and may be applied to the acquisition
of capital equipment required for the development of the
Danish economy. Underwriters — Kuhn, Loeb & Co.,
Smith, Barney & Co., Harriman Ripley & Co., Inc., and
Lazard Freres & Co., all of New York.
16 filed
Jan.
Derson Mines Ltd.
6
filed
stock.
Price—$1
300,000
be
Invited)
invited)
(par 50
Colo.,
on a
best efforts basis.
Edgcomb Steel of New England, Inc.
5 (letter of notification) 30,000 shares of class A
common stock (par $5). Price —$10 per share. Proceeds
—To pay off current notes payable to bank and to in¬
crease working
capital. Office — 950 Bridgeport Ave.,
Milford, Conn. Underwriter—None.
Electro-Voice, Inc., Buchanan, Mich. (2/2-6)
13 filed 150,000 shares of capital stock (par $2),
Moseley & Co., Boston, Mass.
& Steel Corp.
237,918 shares of common stock, to be of¬
fered for subscription by common stockholders at the
rate of one new share for each four shares held. Prices—
To be supplied by amendment.
Proceeds—To complete
modernization and expansion program and for working
Erie Forge
9 filed
Underwriters—Lee Higginson Corp., and P. W.
Inc., both of New York City.
Brooks & Co.,
Bonds
Feb. 20, 1958, filed 300,000
—At par ($5 per share).
Ethodont Laboratories.
$18,000,000
j
of
be offered for the account of
selling stockholders. Price—To be supplied by amend¬
ment.
Proceeds—For working capital.
Underwriter—F.
which 75,000 shares will
$5,000,000
1
be
stock
Dec.
capital.
(Thursday)
Georgia Power Co
to
Texas
of common
shares
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or acquisi¬
tion of consumer finance business, and balance to be
used for working capital.
Underwriter — Investment
/'
expense
tion.
Berkeley, Calif.
shares of common stock. Price
Proceeds—To cover operating
during the development period of the corpora¬
Underwriter—None.
•
-A Falstaff
.
raw
working capital, etc. Office—U. W. National Bank Bldg.,
Bonds
Co
to
shares
.Bonds
Montana
Power
(3ids
Co
to be Invited)
$20,000,000
Pennsylvania Power Co
(Bids
to
of
Bonds
be
invited)
Bonds
$8,000,000
Brewing Corp.
(letter of notification) an undetermined number
shares of common stock (par $1), not to exceed an
Jan.
Postponed Financing.
„
—--Preferred
Research Fund, Inc., St. Louis, Mo«
filed 100,000 shares of capital stock, (par one
cent).
Price—At market.
Proceeds—For investment.
Underwriter — Counselors Research
Sales Corp., St.
S.
Bonds
(Tuesday)
.eceived)
(Bids
Inc.; Reynolds & Co., Inc ; and
<v Co.) $55,00(1.000
'
Lo?b
V
^20,000,000
(Thursday)
Virginia Electric 8c Power Co
«
Smith, Barney & Co.* Harriman Ripley
&, Co., Inc.; and Lazard Freres .& Co.) 515.000,000
Reynolds Metals Co
^
invited)
September 10
f Kuhiv, Loeb 6: Co.;
„„
be
to
Southern Electric Generating Co
;
$2,190,000
Underwriter—None.
arise.
Jan.
Bonds
Common
a.m.
$14,000 000
(Thursday)
30
May 28
(Bids
i
Co
Southern
—.Bonds
-
invitedt
Co
(Bids
'
(Wednesday)
February 4
Rio Grande Western RR..
Denver
,
Cooperative Association,
City, Mo.
Oct. 29 filed $6,000,000 of 5J/2% 25-year subordinated
certificates of indebtedness, and 60,000 shares of 5%%
preferred stock (cumulative to extent earned before
patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds
—For retirement of maturing certificates of indebted¬
ness, redemptions on request of certificates of indebted¬
ness prior to maturity and of 5Y2% preferred stock; the
possible improvement and expansion of present facili¬
ties; and the acquisition of manufacturing plants and
crude oil properties if favorable opportunities therefore
Kansas
Jan.
srockholdevs—underwritten by Bache '& Co.)
150.000
Jan.
Consumers
•
April
^--Common
Brooks, Inc
(Offering so
be
to
(Tuesday)
February 3
,
$7,000,000
(Wednesday)
15
Wisconsin Power & Light Co
(Bids
Bobbie
invited)
be
to
April
—i——Common
& Co.
Brother
(Thursday)
Debens. & Com.
-———--Common
Inc.
Don,
Nelly
—Common
Co
Weil, fcabouisse, Friedrichs
and 120.000 common shares
Electro-Voice, Inc.
.
(Tuesday)
•' (Bids to be invited)
-
Howard
debentures
on
Price—100%
Diversified Inc., Amarillo,
$50,000,000
Light Co
(Bids
•'
Invited)
:
$15,000,000
Hydratane Gas, Ind
of record
13.
Service Co., Denver,
Bargain City, U. S. A., Inc.—— — ——.Common
-
be
April 2
(Monday)
February 2
Blossman
to
March 3
Power
$7,000,000
(Commonwealth otfi2z.
Puerto Rico
*
(Wednesday)
---i-Bonds
■
-
Inc.
Jan.
$10,000,000
,
)Kuhn, Lo?b & Coif $50,600,000.?";
•;
York,
Bonds
be invited)
to
Illinois Bell Telephone Co
A
;
New
per
Co
(Bids
Common
Inland Steel
2C
of
share. Proceeds—Fbr new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.
(Tuesday)
1
Holidav Inns of America. Inc
"(Offering to stockholders—underwritten by
Securities Corp.)1 35,298 shares
-
Duquesne Light
& Webster,->
$35(000.000
(Wednesday)
January 28
..V
Stone
and
Co
Securities Corp.)
of
Bonds
February 24
Transcontinental Gas Pipe Line Corp.--——-Bonds
1"
Co.
June 5 filed 350,000 shares of common
V-\
'
.
a
26, 1959; rights to expire
(flat).
Proceeds—To repay
notes, and for additions to utility plant.
Underwriters—Morgan Stanley & Co. and The First Bos¬
ton Corp., both of New York.
$7,125,000
.—Common
_
held
Feb.
on
Equip. Trust Ctfs.
(Bids noon CST)
Technology Instrument Corp.
Edison
maximum
$59,778,600 of convertible
debentures due Aug. 15, 1973, to be offered for sub¬
scription by common stockholders at the rate of $100
principal amount of debentures for each 25 shares of
^ Denmark
(Monday)
Indiana, Inc
to be
February 18
Common
Surrey Oil 8c Gas Corp.—.—
.
filed
23
Denver, Colo.
•
-
available
repay
(1/27)
Dec.
1740 Broadway,
and
$7,500,000
Portfolios,
Public Service Co. of
&
&
Debentures & Pfd.
February 17
Consolidated Edison Co. of New York; Inc.-—Debs.
(Offering, to stockholders—to be underwritten :by Morgan
Stanley 6z Co. ana.The First Boston Corp.) $59,778,000
by Johnston, Lemon
Securities
Union
Fund)
Elmsford, Inc
(Sire
-
Service Cb._II C«i.Bonds
a.m.
Dillon,
February 16
Hudson Gas & Electric Corp..—Common
Kidder, Peabody't& Co.) 350,000 WareS ;: >.v
Central Illinois Public
•-
funds
to
Boston, Mass.
Consolidated
Louis.
(Thursday)
12
Abacus
-—-Debentures
Manufacturing Corp..
with
used
certain
outstanding bank loans, to finance in part the company's
1959
construction program,
and for other corporate
purposes. Underwriters — Morgan Stanley & Co., New
York; Putnam & Co., Hartford, Conn.; Chas. W. Scran¬
ton & Co., New Haven, Conn.; Estabrook &
Co., New
Common
$5,891,280
Co.)
(Offering to stockholders—underwritten
Avco
$12,000,000
Corp.)
Government Employees Variable Annuity
Life Insurance Co
Common
Inc.ill-Common
Organizations,
^I'cliael
•
be
Counselors
_
1,000,000 shares
Corp.)
to
are
by The First
shares
Investors Research Fund, Inc
1 Common
—- -
Securities
»Equitable
Common
underwritten
280,000
Fidelity Capital Fund, Inc.—
».(Crittenden, Podesta & Co. ) 350.000 shares .. .
Public Utilities Co
Preferred
r.. < White,
Weld. & Co.; Starkweather & Co.; and
U .vf ■
< Clement A. Evans & Co., Inc.) $650,000
«
sources
Feb. 5, 1958,
Florida
j
Corp.—
Corp.»
February 9
{
r,
"
Co.)
Scranton &
..V.\VW p
Arnold Ailex Aluminum Co.,:._.Ai..-._Common
i
.
&
& Electric
to stockholders—to be
'
by Morgan Stanley
Co.;
795,000 shares
Co.; Chas. W.
Estabrook
and
Rochester Gas
Clark, Dodge & Co.)
S4.000.000
(Monday)
Common
(Offering to stockholders—underwritten
Bank.^.Common
January 26
(Friday)
Connecticut Light & Power Co.„
The' First. Boston
& Co.). 33,000^ shares
(Offering iA stockholders—underwritten by
Price—To be supplied by
Proceeds—Together
short-term bank
Corp.___________^_^_Common
Robinson.
and
National State
(no par)
share for eacltunit;of 10
new
by stockholders.
stock
stockholders—underwriter!. by-
to
XOffering
i\ t : Corp.
v
for
construct refinery; Underwriter—Lehman Brothers, Nev
York. Offering—Indefinite.
(Friday)...;.
23
January
...
stock
less then held; rights to expire about Feb. 24*
or
of stock and $100 of debentures
nine shares of stock
Price—To be supplied by amenument. Proceeds — Tc
NEW ISSUE CALENDAR
r -
one
common
stockholders of record Feb. 5,
common
1959, at the rate of
shares
amendment.
in exchange for 81,002 shares of the outstanding common
stock and for 2,131 shares of the outstanding $100 par
795,000 shares of
be offered to
scribed
Combustion
Dec. 19 filed
2
;•/ Mobile Gas Service
(2/6)
Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo.
to
16
Commerce Oil
Jan.
filed
Jan.
Dec. 16,1957
ft
71
Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per sbare. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working capital.
Office — c/o John
Champion. Paper &
•
Dec. 19 filed $20,036,400 of
Street, 'Mil¬
Clute Corp. '•
.
(par $1) to
be offered for subscription by holders of. common stock
at the rate of one new share for each -five.,shares held,
Jan. 9 filed 118.112 shares of common-stock
(467)
15
aggregate of $300,000, to be offered to employees pur¬
suant to an Employees Stock Purchase Plan. Price—95%
of the market price at the time of purchase. Proceeds—
Continued
on
page
72
72
The Commercial and Financial Chronicle
(468)
Continued from page
30, 1959
outstanding); and (3) to
(par $5) of Government Em¬
ployees Corp., on the basis of l/z warrant per share of
stock held on Jan. 30,1959 (as of Sept. 30,1958 there were
71
purchase stock. Office—5050 Oakland Ave., St. Louis.
To
Mo. Underwriter—None.
convertible capital debentures due 1967, convertible
(letter of notification) 3,000,000 shares of common
ftock. Price—At par (10 cents per share). Proceeds—For
mining expenses. Office — 715
Vegas, New Underwriter—None.
Federated Corp. of
Dec.
filed
29
debentures
Delaware
6ft convertible subordinated
of
$918,000
due
Ninth St., Las
North
The
1968.
proposes
company
to
in exchange for Consumers
•
debentures: and $226,000 of the debentures in exchange
National Alfalfa Dehydrating & Milling
Co., holder of the 100,000 common shares is offering to
its common stockholders preferential warrants to sub¬
scribe to 98,750 shares of Grain Elevator stock on the
basis of one warrant to purchase one-eighth share oi
(par 10 cents).
Underwriter—None.
Y.
Finance
Federated
Co.
17
Nov.
(letter of notification) $300,000 of 10-year 6%
subordinated debentures. Price—At par (in de¬
renter
Grain Elevator stock for each share of National Alfalfa
common
each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Net. Underwriters — J. Cliff Rahel & Co. and
Eugene C, Dinsmore, Omaha, Neb.
nominations
of
$1,000
Office
•
of
share). Proceeds—For working
Office—508 Ainslev Bldg., Miami, Fla. Under¬
R.. F. Campeau Co., Penobscot Bldg., Detroit,
Grand Union
The
12.
stock
offer
was
for
shares of Sunrise
each 2.409
declared
effective
of
as
Dec.
31,
Jan. 23.
on
per
N. W.,
(1/26-30)
their
and
employees at $1.65
shares will
be
offered
to
share; and
per
public
general
finance
part
•
construction program. Underwriters—White, Weld & Co.,
starkweather & Co.. both of New York: and Clement A.
Evans & Cc., Inc., Atlanta, Ga.
;
Fluorspar Corp. of America
Oct. 14 (letter of notification) 133,333 shares of commoD
ctock (par 25 cents). Price—$2.25 per share. Proceeds—
For mining expenses. Office—4334 S. E. 74th Ave., Port¬
land 6. Ore. Underwriter — Ross Securities Inc., New
York, ft. Y.
Fort
1
1
Pierce
& Terminal
Port
Nov. 25 filed 2,138,500 shares of
'
r
•
Hamilton Oil & Gas
Corp.
Oct. 22 filed 1,000,000 shares of common stock (par 2f
cents). Price—$2 per share. Proceeds—To acquire funds
to test drill, explore, and develop oil and gas properties
Underwriter—None.
[The registration includes an ad¬
ditional 588,000 common shares issuable upon exercise
of 1,176,000 options rights previously offered
(Oct. 19,
1957),
which rights entitle the original purchaser
thereof to purchase one-half share of stock at 50 cents
per share at the expiration of 13 months after com¬
company's
of
Washington, D. C. Underwriter—None. Statement
effective Dec. 19/
Jan. 7 filed 32,500 shares of cumulative convertible
preferred stock (par $20), Price — To be supplied by
Proceeds—To
mencement
of
such
.
offering.]
Stop
order
proceedings
stock
Heartland
Erie*—$1.25 per share.
Proceeds—To pay short-term
feting and for completing company's Port Development
Plan and rest added to general funds.
Office — Fort
Development Corp.
Oct. 23 (letter of notification) 22,820 shares of non¬
voting convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis
Pierce, Fla. Underwriter—Frank B. Bateman, Ltd., Palm
Beach, Fla.
of
one
10
shares of
Foundation
Jan.
Investment
(par $1)
1958.
Corp., Atlanta, Ga.
IS filed 231,988 shares of common
cise
stock to be of¬
share
of
convertible
common
stock
preference
held
or
on
stock for
about
each
Nov.
1,
Stockholders will have 45 days in which to exer¬
rights. Price — At par. Proceeds — To repay
the
fered
for subscription by stockholders; unsold portion
to be offered publicly. Price—$12.50 per share. Proceeds
debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬
—To
writer—None.
repay
notes.
Office—515 Candler Bldg., Atlanta,
C-a. Underwriter—None.
O
Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
(par $1).
Price—$5 per share.
Proceeds—For
payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York
4, N. Y.
■
Oct. 22
(Gas
(Light Co. of Columbus
Dec. 30 (letter of notification) 15,000 shares of common
Ctock .(par $5) being offered for subscription by stock¬
stock
holders of record Jan. 15
on a pro rata
basis; rights to
expire on Feb. 5. Price—$19 per share. Proceeds—For
working capital. Office — 107 13th St., Columbus. Ga.
C nderwrif er—N one.
•
Highland Telephone Co.
29 (letter of notification)
2,250 shares of common
stock
(no par) being offered for subscription bv com¬
Dec.
General Alloys Co.
Nov. 17 (letter of notification) 45,250 shares of common
ctock (par $1) of which 16,900 shares are to be offered
to employees and the remainder to the public.
Price—
.
mon
Underwriter—William S.
General Aniline & Film Corp.,
common
Corp.
(jointly): Kuhn, Loeb
&
Co.;
Lehmar
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
t>een scheduled to be received up to 3:45 p.m. (EDT) or
May 13 at Room 654. 101 Indiana Ave., N. W., Wajhlng
ten 25, D; C., but bidding has been postponed
Government Employees Variable Annuity Life
•
Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company on or about Feb. 12, 1959, viz:
(1) to holders of common stock (par $4) of Government
Employees Insurance Co.,
on
on
the basis of
one warrant per
Jan. 30, 1959 (1,334,570 shares are
outstanding); (2) to holders of common stock (par
6U0> of Government Employees Life Insurance Co., on
the basis of IVz warrants per share of stock held on Jan.
cow
.
Dec. 30 filed 35,298 shares of
(1/28)
stock, to be offered
stockholders (other than
the Board Chairman and President and their families)
subscription
at the
on
of one
rate
about
or
by
Jan.
common
common
share for each four shares held
new
27.
Price—To
be
supplied by amend¬
Proceeds—In addition to other funds, to be added
ment.
to working
capital and to complete the current portions
of construction costs. Underwriter—Equitable Securities
Corp., Nashville, Tenn.
•
Home Owners Life Insurance Co.
Dec.
filed 153,840
19
fered
shares of common stock to be of¬
subscription by stockholders (for a 14-day
the basis of one additional share for each
for
standby)
on
held
shares
Feb. 5.
of
as
Price—$6
Jan.
per
capital.
Office
Fort
—
21, 1959; rights to expire
share. Proceeds—For working
Lauderdale, Fla/ Underwriter—
Offering — Expected today
H. Hentz & Co., New York.
(Jan. 22).
-
Home-Stake Production Co., Tulsa, Okla.
5 filed 116,667 shares of common stock
(par
Nov.
general
per
$5).
Proceeds—For working capital and
Office — 2202 Philtower
share.
corporate
purposes.
share.
Proceeds
—
Office—2811
stockholder.
Michigan Ave., Detroit, Mich.
Underwriter—None.
I. C. P. Israel Citrus Plantations Ltd.
Dec. 23 filed
per
for
750,000 shares of common stock. Price—$1
share. Proceeds—To be used for new packing houses,
purchase of citrus groves and for the planting of new
Office—Tel Aviv, Israel. Underwriters—None.
groves.
• Idaho Egg Producers
12 (letter of notification) $50,000
principal amount
Jan.
of 6% certificates of indebtedness due 15 years from date
thereof. Price—At par. Proceeds—To call and
pay the
principal and accrued interest of the presently outstand¬
ing and issued certificates. Office—523 Main St., Cald¬
Underwriter—None.
well, Idaho.
Industrial Minerals Corp., Washington, D. C.
v
;
July 24 filed 600,000 shares of common stock (par one
:ent). Price—$1 per share. Proceeds—To develop and
jperate graphite and mica properties in Alabama.;.Un-
lerwriters—Dearborn
both of
ment effective Nov.
Co.
and
Carr-Rigdom & Co.,
best efforts basis. State¬
on a
18.
Industro Transistor
Feb. 28, 1958,
10
&
Washington, D. C.,
Corp. (N. Y.)
filed 150,000 shares of common stock (par
cents); reduced to 135,000 shares by amendment subse¬
quently filed. Price—To be related to the market price.
Proceeds—For working capital and to enlarge research
and development department. Underwriter—S. D. Fuller
& Co., New York, has terminated its underwriting agree¬
ment it
announced
was
on
Jan.
16.
Stop order proceed¬
ings instituted by SEC.
Inland
Steel Co.
(1/28)
Jan.
8 filed $5(1,000,000 of first mortgage
bonds, series
L, due Feb. 1, 1989. Price—To be supplied by amend¬
ment. Proceeds—For working capital and capital
expen¬
ditures. Underwriter—Kuhn, Loeb & Co., New York.
International
Bank, Washington, D. C. •
$5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds —For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C.
Dec. 29 filed
Investment Corp. of Florida
9 (letter of notification) 55,555
Oct.
stock
shares of
common
(par two cents).
Price—$4.50 per share. Proceeds
capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise
Boulevard, Ft.
—For
Lauderdale, Fla.
of
Underwriter—None.
Investors
common
Underwriter—None.
Research
Fund,
Inc.
(2/9)
(par 25 cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds — To
selling stockholders. Office—250 Park Avenue, N. Y.
vestors
•
i
Jan. 9 filed 490,940 shares of common stock. Price—$12
per share.
Proceeds—For investment. Office—922 La-
Underwriter—None.
A stock
probable bidders: Blytb & Co.. Inc., and The First Bo#
chare of stock held
per
stock
New York
ton
(2/12
$45
Highway Trailer Industries, Inc.
24 filed 473,000
outstanding shares
and 1,537,500 shares of common B stock (paT $1)
IProceeds—To the Attorney General of the United States
fijaderwriter—To be determined by competitive bidding
Co.
—
Nov.
par)
Insurance
Price
bank loans and for construction of a new tele¬
phone plant. Office—145 North Main St., Monroe, N. Y.
Underwriter—None.
To employees, $1.1805 per share. Proceeds—To purchase
install machinery and equipment.
Office—367-405
Jan. 14, 1957 filed 426,988 shares of
stockholders.
To repay
and
West First St., Boston, Mass.
tPrescott & Co., Boston, Mass.
Underwriter—None.
Holiday Inns of America, Inc.
for
•
instituted by SEC on Jan. 15.
Co.
common
•
ic Hygrade Food Productions Corp.
Jan. 12 (letter of notification) 10,000 shares of common
stock (par $5). Price—At market on the American Stock
Exchange. Proceeds—To Phillip Fleischer the selling
Guaranty Life Insurance Co. of America
Nov. 14 filed 88,740 shares of class A common capital
stock (par $1.80). Price—$5.35 per share. Proceeds—To
increase capital and surplus.
Office—815 15th Street.
amendment.
Ariz.
Bldg., Tulsa, Okla.
per
and
Florida Public Utilities Co.
Underwriter—None.
Hoagland & Dodge Drilling Co., Inc.
June 12 filed 27,000 shares of capital stock. Price—$10
per share.
Proceeds—To be used fn part for the ex¬
ploration of mines and development and operation of
mines and in payment of indebtedness. Office—Tucson,
15
100,000
unit.
ment
clubhouse.
Price—$6
project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
other corporate purposes.
Office—700 43rd St., South.
Gt. Petersburg, Fla. Underwriter—None, j v
$110
land, grandstand, mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and
two
Proceeds—For purchase and development of sub¬
division land, including shopping site; for new equip¬
—
Proceeds—For construction
including
„
,
.
at $2
share. Proceeds—To satisfy creditors' claims and for
general corporate purposes. Office—41 E. 42nd St., New
York 17, N. Y.
Underwriter—Mortimer B. Burnside &
Co., Inc., New York 5, N. Y.
Price
track,
a
stock
tributors
15-year sinking fund sub¬
share of common stock.
of
on
.
Publications, Inc.
(letter of notification) 130,000 shares of com¬
(par 10 cents), of which 30,000 shares will
be offered for 30 days to the company's employees, and
to
the company's news dealers, wholesalers and dis¬
to be offered in units of $100 principal amount of deben¬
one
notes in units of $500 each.
Dec.
ordinated debentures and 40,000 shares of common stock,
tures and
Thursday, January 22, 1959
.
mon
Inc.
filed $4,000,000 of 6%
1
Statement effective Jan.
Great American
—
Florida Builders,
Market
1958, and has been extended to expire
Mich.
Dec.
927
Grand Union Co.
stock.
For
Price—At par ($1.50 per
writer
share.
per
19, 1959; rights to expire Feb. 16.
Proceeds—To selling stockholder.
Street. Wilnlington. Del.
Under¬
Oct. 29 filed 187,534 shares of common stock (par $5)
being offered in exchange for outstanding common stock
of Sunrise Supermarkets Corp. at the rate of one share
Industry, Inc.
16 filed 200.000 shares of class A common stock.
capital.
—
Jan.
on
writer—None.
Corp., Boston. Mass.
Dec.
held
Price—$2
Fidelity Capital Uunu, Inc., Boston, Mass. (2/9)
Jan. 12 filed 1,000,000 shares of capital stock. Price—$12
per share
Proceeds — For investment. Distributors—
Kornblciwer & Weeks. Chicago, 111., and The Crosby
Finance
Grain Elevator Warehouse Co.
Nov. 3 filed 100,000 outstanding shares of common stock
for the'outstanding 12ft debentures of three subsidiaries
of Federated. Office—1 South Main Street, Port Chester.
K.
.
—
offer
$210,000 of the debentures to purchase the capital Etock
of Consumers Time Credit, Inc., a New York company;
$442,000 of the debentures
are now
stock
common
143,127 shares of stock outstanding and $614,360 of 5%
into
shares of common at $28.0374 per share.
If all these
debentures were converted into common stock prior to
the record date, a total of 164,724 common shares would
be outstanding. Warrants will expire on Feb. 27, 1959.
Price—$3 per share. Proceeds—For capital and surplus.
Office
Government
Employees
Insurance
Building,
Washington, D. C. Underwriters — Johnston, Lemon &
Co., Washington, D. C.; Eastman Dillon, Union Securities
& Co., New York; and Abacus Fund, Boston, Mass.
-fc Federal Oil & Exploration Co.
Jan. 8
(216,42.9 shares
holders of
.
—Bache &
Hilton Credit Corp.,
Beverly Hills, Calif.
Dec. 18 filed 1,927,383 shares of common stock
being offered for subscription by
of record
Jan.
15
of Hilton
common
Hotels Corp.
(par $1)
stockholders
at the
rate
of
share of Hilton Credit stock for each two shares of
Hilton Hotels stock; rights to
expire on Feb. 2. Price—
one
$3.25 per share. Proceeds — Together with bank loans,
will comprise the operating funds of Hilton
Credit and
will be used for general
corporate purposes and to
finance the company's purchase of
charge accounts from
Hilton Hotels and other establishments who
may
to
honor Carte Blanche cards.
Underwriter
—
agree
Carl
M.
Loeb, Rhoades & Co., New York.
Hinsdale Raceway,
Inc.,
common
stock at par
•
St., Sapta Barbara, Calif.
Israel
Jan.
8
2,000 debenture notes.
($1 per share) and the
Investment Advisor—In¬
Calif, Underwriter
Research Co.. Santa Barbara,
Co., New York.
(The State of)
filed
$300,000,000 of second development bonds,
15-year 4ft dollar coupon bonds (to
be issued in five series maturing serially from March
1,
1974 to March 1, 1978) and 10-year dollar savings bonds
(each due 10 years from first day of the month in which
issued). Price—100% of principal amount. Proceeds—
part to consist of
For improvements, etc.
for Israel,
Underwriter—Development Corp.
215 Fourth Ave., New York City.
Offering—
Expected early in March. 1959.
Itemco
Inc.
Nov. 28 (letter of
Hinsdale, N. H.
evidencing 1,000,-
Dec. 29 filed capital trust certificates
000 shares of capital stock, and
Price—The
guna
stock
»
notification) 200,000 shares of
common
(par 10 cents). Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional space
for test laboratories;, and for working capital. Office—
4 Manhasset Ave., Port Washington, L. I., N. Y. Under-
Volume 189
Number 5814
writer
Fennekohl
B.
—
&
.
.
.
Co., 205 East 85th St., New
Jet-Aer Corp., Paterson,
5 (letter of notification)
N. J.
10000 shares of class A
common stock
(par $1.50). Price — $10 per share. Pro¬
ceeds—For purchase of modern automatic filling equip¬
Dec.
ment and for
marketing and advertising program. Office
Underwriter—None.
Ave., Paterson,N. J.
(by amendment) an additional 1,000,000
Custodian Fund Certficates of Participation
Series S2. Price—At market. Proceeds—For investment.
Kimberly-Clark Corp.
Envelope Co. of West Carrollton, Ohio, on the basis
of three-quarters
share of Kimberly stock for each
offer will expire on Feb. 27,
The exchange is contingent on acceptance by all
share
1959.
of
a
The
American.
of
Nov. 24
January
or
early in February.
602,786 shares of common stock. Price—$1
Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.
share.
per
Mississippi Chemical Corp., Yazoo City, Miss.
filed 200,000 shares of common stock (par $5)
8,000 shares of special common stock (par $75).'
Price—For common stock, $8.75 per share; for special
common
stock, $131.25 per share. Proceeds—For con¬
struction program, to purchase shares of Coastal Chem¬
ical Corp.
(a subsidiary), and the balance will be
added to surplus. Underwriter—None.
Dec. 24
Dec. 30 filed 225,000 shares of common stock to be of¬
fered in exchange for the common stock of the Ameri¬
can
of the stockholders.
and
•
Los Angeles
30.
on
a
pro
to
public. Proceeds—To reduce short term bank loans
for working capital.
Office — Los Angeles, Calif.
Underwriter
Dempsey-Tegeler & Co., Los Angeles,
and
—
Calif.
21, 1959 (with an oversubscription privilege);rights
expire Feb. 9, 1959. Price—To be supplied by amend¬
Proceeds—To reduce short-term bank loans in¬
Jan.
to
ment.
Mining Corp.
Sept. 29 filed 350,000 shares of
distribution
common
stock.
Price—$1
share. Proceeds — For the acquisition of properties
option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.
under
Underwriter—None.
M. C. A. Credit
Co., Inc., Miami, Fla.
Oct. 6 filed 100,000 shares of common stock.
Price—$5
Proceeds—To reduce current indebtedness to
share.
Walter
E.
& Share
Heller
&
Co.
Underwriter—Plymouth Bond
Corp., Miami, Fla.
Power Co.
Mairco, Inc.
6
(letter of
notification) 600 shares of common
subscription by stockholders of
record Jan. 10, 1959 on the basis of one share of addi¬
tional common stock for each five shares held; rights to
expire on Jan. 30, 1959. Price—At par ($100 per share).
Proceeds—For inventory and Working capital. Office—
1026 N. Main Street, Goshen, Ind.
Underwriter—None.
to
stock
offered for
be
Mammoth Mountain
Inn Corp.
(letter of notification) 70,000 shares of common
stock (par $5). Price—$5.50 per share. Proceeds—To be
,*used to build and operate and all-year resort hotel. Office
Dec. 10
—Suite
204,
8907 Wilshire Blvd., Beverly Hills,
Calif.
Underwriter—None. Letter to be amended.
•
Montana
(letter of notification) 17,241 shares of common
$2) to be offered only to certain salaried
employees and sales representatives and agents of the
company pursuant to the terms of an option and stock
purchase agreement. Price—$17.40 per share. Proceeds—
(par
working capital. Office—222 West Gregory
City 14, Mo. Underwriter—None.
Blvd.,
Kansas
if Mercantile Acceptance Corp. of California
15
(letter of notification) $43,000 principal amount
5Vz% capital debentures. Price—At par. Pro¬
of 12-year
ceeds—For
working capital. Office—333 Montgomery St.,
Francisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.
San
Merchants
Oct. 8
stock
Petroleum
Co.
(letter of notification) 159,395 shares of common
(par 25 cents) being offered for subscription by
stockholders of record Nov. 24, 1958 on the basis of one
new
share for each five shares held; rights to expire
15, 1959 (with an oversubscription privilege). Price
—$1.40 per share. Proceeds — To reduce bank loan;
to increase working capital and for general corporate
purposes. Office—617 W. 7th Street, Los Angeles, Calif.
Underwriter—None.
Meyer-Blanke Co.
Dec. 29
(letter of notification) 13,500 shares of common
stock (no par).
Price—At the market (Midwest Stock
Exchange). Proceeds—To selling stockholders. Office—
310 Russell St., St. Louis, Mo. Underwriter—Smith Moore
& Co., St. Louis, Mo.
ir Mid-America Minerals, Inc.
19 filed
100 units
of
participations in Oil and Gas
(the "1959 Fund"). Price—$15,000 per unit. Pro¬
ceeds— For working capital, etc.
Office — 500 MidAmerica Bank Bldg., Oklahoma City, Okla. UnderwriterFund
Midamco,
Co.
price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the -company's con¬
struction program
through 1959. / Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
Co., Inc.
Offering—Indefinitely postponed.
Inc.,
a
wholly-owned
subsidiary,
Oklahoma
City, Okla.
Mid-Atlantic
Marina, Inc., Baltimore, Md.
(letter of notification) 60,000 shares of 7% pre¬
ferred stock (par $3.50). Price—$5 per share. Proceeds—
Oct. 28
For construction of
Town Bank Bldg.,
a marina.
Office
Room 104, Old
Baltimore 2, Md. Underwriter—Mary¬
land Securities Co.. Baltimore, Md.
—
'•
•<
Odlin
ceeds—To purchase a
and
raw
textile mill, machinery, equipment
materials, and to provide working capital. Office
—375 Park
Securities
Ave., New York, N. Y. Underwriter—Harria
Corp., New York, N. Y., has withdrawn a®
underwriter.
Oil, Gas & Minerals, Inc.
of commoa
Proceeds—For development of oil and gas properties.
Office—al3
International Trade Mart, New Orleans 12, La.
Under->
writer—Assets Investment Co., Inc., New Orleans, La.
Nov. 16 (letter of notification) 116,000 shares
stock (par 35 cents).
Price—$1 per share.
Oppenheimer Fund, Inc.
5 filed 100,000 shares of capital stock.
Price—At*
market (about $10 per share).
Proceeds—For invest¬
ment. Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York. Offering — Expected
Dec.
sometime
•
in February.
.
Pacific Automation
Products,
Dec. 31 filed 60,000 shares
.
.*
,
Inc.
of capital stock (par $1). Price*
if Morrison Cafeterias Consolidated, Inc.
12 (letter of notification) 9,000 shares of common
stock (par $5) to be offered to employees pursuant to
an Employees Stock Purchase Plan. Price—$15 per share.
Proceeds—For working capital. Address—P. O. Box 309,
Mobile, Ala. Underwriter—None.
Angeles, Calif.
Jan.
if National Land Co. of Arizona
16 (letter of notification) 10,000 shares of class A
stock. Price—At par ($10 per share). Proceeds
—To purchase real estate land and improve and sub¬
divide such land into suitable home and building sites.
shares of capital stock. Price—Mini¬
mum purchase of shares is $2,500.
Proceeds—For invest¬
ment. Office—404 North Roxbury Drive, Beverly Hills*
Calif. Underwriter—Paramount Mutual Fund Manage¬
common
ment. Co.
Rd., P. O. Box 321, Scottsdale, Ariz. Underwriter—None.
May 19 filed 20,000 shares of common stock (par $1),
Price—At market.
Proceeds—For investment. Under¬
writer—Investors Investments Corp., Pasadena, Calif.
Jan.
Office—4547 North Scottsdale
Inc., Los Angeles, Calif.
$20,000,000 53/2% sinking fund subordinated
debentures due March 1, 1974, stock purchase warrants
Dec. 30 filed
454,545 shares of common stock (par $1) and 485,550
to purchase debentures and stock purchase
The debentures and stock purchase warrants
for
warrants
warrants.
are
to be offered in exchange for National
Telefilm Asso¬
ciates, Inc. common stock at the rate of $11 of deben¬
tures and one warrant to purchase one-quarter of a share
of National Theatres, Inc. stock for each NTA share.
Dealer-Managers — Cruttenden, Podesta & Co., Cantor,
Fitzgerald & Co., Inc., and Westheimer & Co.
Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
($1 per share). Proceeds—For organizational ex¬
and first three months' operational expenses. Of¬
fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
At par
penses
writer—Waldron &
Jan.
Jan.
Power
July 1 filed 100,000 shares of common stock (no par).
The stock will be offered only to bona fide residents
of Montana. Price—To be related to the current market
National Theatres,
9
stock
Inc.
60,600 shares of common stock, $43,333.33
3Y4% debentures maturing on or before May 6, 1965,
Industries, Inc.
Nov. 12 filed $250,000 of 5 lk % convertible debenture®
and 250,000 shares of common stock (par 10 cents). Price
—Debentures at 100% and stock at $3 per share. Pro¬
Blyth & Co., Inc.
Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room 2033, Two Rector St.,
New York, N. Y., but company on Aug. 22 again decided
to defer sale pending improvement in market conditions.
★ Marley Co.
Jan.
of
•
repay $15,500,000 in bank loans and to
carry on the
company's construction program through 1959. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.;
Merrill Lynch, Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld & Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea-
&
Jan.
Jan.
extension
system.
(jointly).
per
For
the
for
curred
body & Co., Smith, Barney & Co. and
LuHoc
per
stock (par $5) to
subscription by common stockholders at the
share for each 10 shares held of record
new
July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds — Together with other funds, to be used to
Drug Co.
by holders of outstanding stock
rata basis; rights to expire on
Price—$10.50 per share to stockholders; $11.50
of record Jan. 2
one
Montana
offered for subscription
Jan.
be offered for
Maine Corp., Portland, Me.
Oct. 3 filed 50,000 shares of capital stock (no par) being
O. K. Rubber Welders,
Dec. 15 filed
None.
rate of
writer—First
Oak Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of commoa
stock (par $1). Price — $3 per share. Proceeds — For
working capital.
Office—11 Flamingo Plaza, Hialeah*
Fla.," Underwriter — Henry & Associates, jlnc., 11 Fla¬
mingo Plaza, Hialeah, Fla.
*
/
Atlanta, Ga
Dec. 30 filed 33,000 shares of common
v-Life Insurance Securities Corp.
March 28, 1958, filed 1,000,000 shares of capital stock (par
$1).
Price—$5 per share.
Proceeds—To acquire stock
control of "young, aggressive and expanding life and
other insurance companies and related companies and
then to operate such companies as subsidiaries." Under¬
Miami, Fla. Underwriter—Cosby & Co., Clearwater, Fla.
and improvement
of gas
Underwriters — The First Boston
Corp., New York, and The Robinson-Humphrey Co., Inc.,
(1/23)
Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.
share.
Nylonet Corp.
(letter of notification) 600,000 shares of common*
stock (par 10 cents). Price—50 cents per share. Proceeds
—For working capital. Office—20th Ave., N. W. 75th St.*
$692,000 of 6% debentures maturing on or before Dee.
31, 1974 and $123,000 of 7% debentures due on or befora
May 6, 1965. The company proposes to make a public
offering of 25,000 shares of common stock at $10 per
share.
The remaining shares and the debentures arc*
subject to an exchange offer between this corporation
O. K. Rubber, Inc., and O. K. Ko-op Rubber Welding;
System, on an alternative basis. Proceeds—Of the public
offering, will be used for additional working capital
and/or to service part of the company's debt. OfficeSSI Rio Grande Ave., Littleton, Colo.
Underwriter—
Mobile Gas Service Corp.
.
Laure Exploration Co., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of common stock. Price—$2
per
$7,000,000 of first mortgage bonds due Feb..
1, 1984. Price—To be supplied by amendment. Proceeds'
—To be used for partial payment of bank loans. Under¬
writer—Lehman Brothers, New York.
writer—C. H. Abfaham & Co., Inc., 565 Fifth Ave., New
York 17, N. Y.
Offering—Expected in latter part of
Dec. 23 filed
filed
15
Keystone
(1/28)
Gas Co.
Northwest Natural
73*
Jan. 7 filed
Millsap Oil & Gas Co.
^ Keystone Custodian Funds, Inc.
Jan.
Military Publishing Institute, Inc.
(letter of notification) 125,000 shares of common
stock (par 5 cents);
Price—$2 per share. Proceeds—
For general corporate purposes and working capital.
Office—55 West 42nd Street, New York 36, N. Y. Under¬
Dec. 9
York, N. Y.
—85-18th
(469)
The Commercial and Financial Chronicle
Co., San Francisco 4, Calif.
Nedow Oil Tool Co.
May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.
•
(2/2-6)
outstanding shares of common stock
(par $2). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office—3500 E. 17th St., Kan¬
sas City, Mo.
Underwriters—Stern Brothers & Co. and
Barret, Fitch, North & Co., Inc., both of Kansas City, Mo.
Nelly Don, Inc.
Jan.
9
filed 52,600
Jersey Investing Fund, Inc., New York
200,000 shares of capital stock. Price—At
market. Proceeds—For investment. Investment Adviser
New
Dec.
9
filed
\ and Distributor—Spear, Leeds
it Northern Plastics Corp.
Jan. 8 (letter of notification)
& Kellogg, New York.
stockholders.
(par $1) of which 9,500 shares are being
Proceeds—To selling
Underwriter—William R. Staats & Co., Lo®
Offering—Expected today (Jan. 22).
Paramount Mutual
Fund, Inc.
Jan. 2 filed 300,000
Peckman Plan Fund, Inc.,
Pasadena, Calif.
Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988*.
Proceeds—To redeem a like amount of 5% first mortr*
Underwriter—To be determined';
Stuarfc
& Co.j
Equitable Securities Corp., and Shields & Co. (jointly);?
Lehman Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmanc,
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smitbv
and Dean Witter & Co. (jointly).
Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT)
on Aug.
27 but company on Aug. 22 decided to defer
sale pending improvement in market conditions.
bonds due 1987.
gage
by competitive bidding. Probable bidders: Halsey,
& Co. Inc.; Kidder, Peabody & Co.; White Weld
Pennsylvania Power & Light Co.
295,841 shares of common stock (no
Dec. 17 filed
par) be¬
ing offered by the company for subscription by its com¬
mon stockholders of record Jan. 6,
1959, at the rate oit
one
share for each 20
new
shares then held; rights to
expire on Jan. 26. Employees will be given a contingent
subscription privilege. Price—$50 per share. Proceeds;
—To be added to the general funds of the company and
used
The
for
corporate
general
purposes.
First Boston Corp., New
Underwriters—-
York, and Drexel & Co.,.
Philadelphia, Pa.
if Pilgrim Helicopter Services, Inc.
Jan. 9 (letter of notification) 12,000 shares of commorn
stock (par $3). Price — $5 per share. Proceeds — For
working capital. Office—Investment Bldg., Washington
5, D. C.
Underwriter—Sade & Co., Washington 5, D. C.
Pioneer
Nov.
10
Trading Corp.,
filed
Bayonne, N. J.
10,000 shares of $8
cumulative preferred
stock, series A (par $100) and $1,000,000 of 8% subordin¬
ated debentures, series A, due Dec. 1, 1968 to be offered
in units of a $500 debenture and five shares of pre¬
ferred stock.
Price—$1,000 per unit. Proceeds — For
general corporate purposes.
28,500 shares of common
offered
for a selling stockholder and the remainder for the
company. Price—$10.50 per share. Proceeds—For work¬
ing capital. Office—2nd and Market Sts., La Crosse, Wis.
Underwriter—Loewi & Co., Milwaukee 2, Wis.
stock
be supplied by amendment.
—To
Underwriter—None.
Moines Steel Co.
Jan. 9 (letter of notification) 5,555 shares of common,
stock (no par) to be offered for subscription by stock¬
holders and certain employees. Price—$54 per share.
if Pittsburgh-Des
•
1
Continued
on
page
74
74
(470)
The Commercial and Financial
Chronicle
Continued
from
San
73
page
Diego Imperial Corp., San Diego, Calif.
845,000 shares of common stock, to be of¬
exchange for all of the 45,000 outstanding shares
of capital stock of Silver State Savings & Loan Associa¬
tion and 3,000 shares of capital stock of Silver State In¬
Dec.
Proceeds—For working capital. Address—Neville
Island,
Pittsburgh 25, Pa. Underwriter—None.
Plastic
Applicators, Inc.
notification) $150,000 of 6% convertible
Dec. 29 (letter of
sinking
debentures due Jan. 2, 1969 and 30,000
shares of corpmon stock (par $1). Price—Of debentures,
fund
at par; of
stock, $5 per share; Proceeds —- To purchase
new equipment and
for working capital. Office—7020
Katy Rd., Houston, Tex. Underwriter—A. G. Edwards
& Sons, St. Louis 1, Mo.
Prairie Fibreboard Ltd.
stock (par $1.50,
common
filed
surance
Agency, Inc., both of Denver,, Colo.
Saratoga Plastics, Inc., Bellows Falls, Vt.
Jan. 14 (letter of notification) 18,000 shares of common
stock (par $1). Price — $1.50 per share. Proceeds — To
purchase molds and equipment required for the full
scale manufacture of portable recording
Underwriter—None.
•
Aug. 18 filed 209,993 shares of
9
fered in
inces
one
of
Manitoba,
Saskatchewan
Alberta
and
and
tc
"only in the State of Nortfc
Dakota."
Price
$3 per share. Proceeds — For conftruction purpose.
Office —Saskatoon, Saskatchewan
Canada. Underwriter—Allied Securities Ltd., and United
Securities, Ltd., both of Saskatoon, Canada.
—
expenses. Address
Underwriter—None.
—
Box 301,
Bridger,
Mont.
Indiana, Inc. (2/17)
Jan. 21 filed $25,000,000 of first mortgage bonds, series
M, due Feb. 1, 1989. Proceeds—To repay bank loans and
for construction costs.
by
competitive
Underwriter—To
bidding.
Probable
be determined
bidders:
Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First Boston
Corp.; Blyth & Co., Inc.; Glore, Forgan & Co.; Harriman,
Ripley & Co. Inc.
Bids—Expected to be received on
Feb. 17.
ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New
York, on a "best efforts
basis.
Reynolds Metals Co.
12
amendment. Proceeds—To be used to the extent
required
to reimburse the company's
treasury for the cost of ac¬
quisition of ordinary stock of The British Aluminum Co.
Ltd. and to meet the cost of
any additional acquisition
of such stock.
Underwriters—Dillon, Read & Co. Inc.,
Reynolds & Co. Inc..
and
York.
Kuhn, Loeb & Co., all of New
Richwell Petroleum Ltd.,
Alberta, Canada
June 26 filed 1,998,716 shares of common
stock (par $1)
Of this stock, 1,174,716 shares are to be
sold on behalf oi
the company and
824,000 shares for the account of cer¬
tain selling stockholders. The
company proposes to offer
the 1,174,716 shares for
subscription by its shareholderi
one new share for each
three shares held
(par $1). Price—$18.75 per share. Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,
Fort Worth, Tex. Underwriter—Kay & Co.;
—
couver, Canada.
ic Rochester Gas
& Electric
Jan. 16 filed 280,000 shares of
be offered for
subscription
Feb. 5, 1959, at the rate of
Corp.
(2/6)
common
stock (no par) to
of record
by stockholders
one
new
share for each nine
shares,
or portion thereof, then held; rights to
expire on
Feb. 24. Unsubscribed shares to
be offered to employees.
Price—To be supplied by amendment.
Proceeds—To be
used in
connection with the
company's construction pro¬
gram, including the discharge of short-term
obligations,
the proceeds of
which, were
so
used.
First Boston
Corp., New York.
Underwriter—The
Rochester Telephone
Corp.
Dec. 18 filed 195,312 shares of
common
being offered for subscription by
of record Jan.
each six
9, 1959
shares
then
Price—$21
on
common
the basis of
one
(par $10)
stockholders
new
held; rights to expire
share for
on
Jan. 26.
per share. Proceeds—To
repay bank borrow¬
Underwriter—The First Boston
Corp., New York.
Routh
Bobbins
Investment Corp.
Sept. 22 filed $1,000,000 of 10-year 6% cumulative
con¬
vertible debentures and
99,998 shares of common stock
Price—Of
debentures, at par (in units of $100 each);
and of stock, $1
per share. Proceeds
For investment!
—
and
working capital.
writer—None.
Office—Alexandria,
Va.
Under¬
★ Safeway Stores, Inc.
Jan. 14 filed
395,504 shares of common stock to be of¬
fered to employees of
company and its subsidiaries who
hold
to
options to purchase suchshares granted pursuant
company's Common Stock Option Plan.
St. Paul Ammonia
Products, Inc.
Dec. 29 filed 250,000 shares
of
common
(par 2 %
cents), to be offered for subscription
by common stock•f^ersat
one new share for each four shares
held.
Price—$2.50 per share.
Proceeds—For additional
working capital. Office-South St.
Paul, Minn. Under¬
writer—None.
Dec.
mon
-
6130
Haven Drive, Dallas, Texas. Underwriter
Co., New York, N. Y. Offering—Not expected
until after .Jan. 31, 1959.:
/-.J''-*Preston
—Sano-&
,
State
in
America, Inc., Washington, D. C.
stdeks
bonds
and
and
acquire other life/
to
insurance companies. Address—P. O. Box 678., Gulfport,,'
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss.t
Strategic Minerals Corp. of America, Dallas, teat $2,000,000 of first lien mortgage 6% bond*
March 31 filed
and 975,000 shares of common stock (par 10 cents). Prlet
—For bonds, 95% of princmal amount; and for stock $)
Proceeds—To erect and operate one or more
processing plants using the Bruce - William®
share.
Process
to
beneficiate manganese
Underwriter—-
ores.
Dec. 12 filed 50,000 shares of common stock. Price—At
Proceeds—For investment. Office — 1033-30th
Southwest'-Shares, Inc., Austin, Texas.
St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment Fund Management Corp.
-
Nov.
market.
Sheridan-Belmont
Hotel
Co.
>
,
•
Surrey Oil & Gas .Corp., Dallas, Tex. (1/27)
12 filed 300,d00 shares of common stock (par $1).
Price—$3 per 4share. Proceeds—To retire current liabil¬
ities and for
Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for
subscrip¬
by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working
capital. Office — 3172
North Sheridan Rd., Chicago 14, 111. Underwriter—None
•
.drilling and exploration costs and working
Underwriter—Peter Morgan & Co., New York.
capital.
• Swift & Co.
171,525 shares of common stock, deliverable'
only upon exercise of options to purchase common stockJan. 19 filed
of the
compahy,* \£hich options have been issued by the
without cash consideration, to eligible officers'-
Sire Plan of Elmsford,
Inc., New York (2/16)
Nov. 10 filed $250,000 of 6% 10-year debentures and
5,000 shares of 6% participating preferred stock
(par $50)
company,
$50 debenture and one share
Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan
Portfolios,
Inc., New York.
company.'
a
its subsidiaries
of preferred stock.
Slick Oil
Dec.
8
Corp., Houston, Texas
$1,500,000 of participating interests in the
filed
joint
venture
program, to be offered in
$15,000, payable 20% down and
the balance upon demand
during 1959. Proceeds—To
assemble and acquire interests in Canada and Conti¬
minimum
nental
amounts
United
of
States.
Underwriters—Rowles, Winston
&
Co., Houston* Tex., and Dewar,
coast, San Antonio, Tex. i
•
Robertson
&
Pan-
Tower
Nov.
Marchant, Inc.
$7,443,100 of 5*4% convertible subordinated
debentures due Jan. 1, 1979 being offered for
subscrip¬
tion by common stockholders on the basis
of $100 prin¬
cipal amount of debentures for each 25 shares of stock
or
about
Jan.
15; rights to expire
Price—100% of principal amount.
bank
loans
Lehman
and
for
working
Jan. 30.
Proceeds—To reduce
capital.
on
Underwriter
—
•
Proceeds—For
investment in
common
stock
(par $5).
payment
common
of short-term bank loans, for
stocks of subsidiaries and
general
corporate purposes, including additional investments in
operating affiliates. Underwriter—To be determined
by
competitive bidding. Probable bidders: The First Boston
Corp.; Morgan Stanley & Co.; Kidder, Peabody & Co.
and Merrill
Lynch, Pierce, Fenner & Smith (jointly);
Eastman Dillon, Union Securities & Co.
and Equitable
Securities Corp. (jointly); Lehman
Brothers. Bids—Ex¬
pected up to 11:30 a.m. (EST) on Feb. 4 at 250 Park
Avenue, New York, N. Y.
ic Special Situation
Real Estate &
Development
1
Corporation
(letter of notification) 120,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—To
purchase and develop properties. Office—130 Park
Ave.,
New York, N. Y. Underwriter—None.
Jan. 8
Jan.
•
due
credit
To be supplied by amendment.
agreement..
Union
Underwriters
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other
installations, fixtures and equipment; $85,000
to
expand two present establishments by
increasing
the number of alley beds
by eight at Yorktown
Heights
by six at Wilton Manor Lanes, Fort
Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriterand
—
White, Weld
& Co.
Corp., both of New York...
Bag-Camp Paper Corp.
8-filed <231282 shares of capital stock (par $6.66%)
to be offered in exchange for shares of capital stock of
Highland;Container Co. in ratio of 0.58 share of Union
fqr;ohe/share^of"/Highland.
Bag
Unless the exchange5
offer is accepted * prior to its expiration of stockholders
holding morb..than 25,000 of the outstanding shares, the
exchange offer will be cancelled. If the exchange offer
accepted/by the holders of
so
more
than 25,000, but
36,00th such shares, the exchange offer
may
be
cancelled-jat the option of. Union Bag. by written or tele¬
graphic/hoticel.o ;th^^
given pri or before
March
.^V.lOoO.
;r_:
;■* ^t.'
.',v
Q
ic Union Service porp.
Continental Corp, common stock, being the number of
shares' which would be purchased under the Plan
all sueh: contributions were invested in /Tri-Conti*
such
jf
conimoir stock1 at $40.50 per share, the high sale
thereof "oA' the'New1 York Stock Exchange oh
7, 1959.
'
I / '
"
J-
nental
price
Jan.
.,
•
;
United Eipplbyees Insurance Co.
•• ,i:
April 16 filed 2,000,000.shares of common stock (par $5)*
Price
$.10 per share. Proceeds — For acquisition of
operating properties,; real and/or personal, including
—
office
lease
furniture,, fixtures, equipment and office space, by
purchase.. Office — Wilmington, Del. Under¬
or
writer—None.
•
-
Myrl
*
;
L.
McKee
of
Portland,
Ore.,
I*
.
United Security Life. & Accident Insurance Co.
22 filed; 120,000 shares of class A common stock.
Price—$3 per'share. Proceeds—To provide the reserves
required to be held in life, and accident insurance poli¬
cies, and to pay the necessary expenses in producing
Aug.
insurance.
Edmond M.
United
Arenas
(Delaware)
Inc.
Nov. 18 filed $2,000,000 of 6%
10-year convertible de¬
bentures
(subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment.
Proceeds—$750,000 to pay AMF
Pro¬
Jan.
writer—None.
Sports
Boulder,
(1/27-28)
$35^000,000 ob first mortgage pipe line bonds,
1979.. Price—v
President.
tional sales and service facilities at the
Fort Montgomery
Marine and Yacht Club and for
working capital. Office—
Mine & Dock
Roads, Fort Montgomery, N. Y. Under¬
Inc.,
ceeds—For-property. additions.and. improvements and/or
to reduce outstanding notes .under company's revolving,
13
(letter of notification) 600 shares of common
stock (par $5) and
$25,000 convertible debenture bonds.
Price—$5.25 per share for stock; and par for bonds
(in
denominations of $25 each). Proceeds—To finance addi¬
i
Mart,
Transcontinental Gas Pipe Line Corp.
less than
Co.
(2/4)
Jan. 9 filed 1,350,000 shares of
..
Colo.- ;
$5).«
share. Proceeds—For working capital and *
Jan. 7 filed
is
Brothers, New York.
Southern
■■./;_/
Merchandise
filed 500,000 shares of common stock -{par
10
Price—$10 per
construction program.
Underwriter—Allen Investment
Co., Boulder. Colo. Statement effective Dec, 31.
Smith-Corona
on
employees of the company and
pursuant to the Stock Option Plan of the'
and Stone & Webster Securities
Dec. 24 filed
held
other management
and
Office—Louisville, Ky.
Smith, is President.
States
Glass
&
Underwriter—None.
Chemical Corp.
Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds — To selling stockholders.
Office—Tiffin/Ohio. Underwriter—None.
★ U.
Jan.
Land Development Corp.,
Lauderdale, Fla.
filed 1,055,000 shares of common stock.
Price—
($1 pef-share); Proceeds — To be added to. the
S.
Ft.
16
At par
company's
general
funds
and
used
to
develop
Pineda
Island and other properties that may be acquired-. Under*
writers—Aetna Securities Corp., New York, and Roman
&
None.
stock
Sign & Signal Co.
rV
17 (letter .of notification) 300,000 shares oif comstocki' Price—At par ($1 per share). Proceeds—
chemical
Shares in
^ Sportonics Corp.
stock
.
Standard
per
ton, Tex.
at the rate of
(with an oversubscription privilege). The
subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to
pay other indebt¬
edness, and the balance if any will be added to
working
capital. Underwriter
Pacific Securities Ltd., Van¬
.
common
stock
corporation's
(2/5-16)
filed
550,000 shares of second preferred stock,
convertible series (par $100). Price—To be
supplied by
ings.
Life Insurance Co.
Sept. 26 (letter of notification) 3,567 shares of
—
•
f
invested
to be offered in units of
Remo Corp., Orlando, Fla.
Sept. 22 filed 100,000 shares of class A common stock
Price—To be supplied by amendment.
Proceeds—Foi
working capital. Underwriter
Citrus Securities Co.
Orlando, Fla.
<
1,000*000 shares of common stock (par $1)*
Price—To be supplied by amendment.
Proceeds—To¬
gether with $6,500,000 of borrowings, will be used for
the acquisition of Spur Distributing Co., Inc., and idr
general corporate purposes. Office—Eighth Ave. South
and
Bradford Ave., Nashville,
Tenn. Underwriter -L.,
Equitable Securities Corp., Nashville, Tenn.
f -
cluding working capital. Underwriter—Eastman Dillon,
Union Securities & Co., New York.
>
tion
Rassco Financial Corp.
June 26 filed $1,000,000 of 15-year 6% series A
sinking
fund debentures due 1973, to be offered in denomination!
of $500 and $1,000. Price—At par. Proceeds—For work¬
Jan.
common
Inc., Hous¬
Public Service Co. of
(1/26-30)
15 filed
Life, Health & Accident Insurance Co,/^.v
July 9 (letter df notification) 50,000 shares of commonstock (pajf^l).'" Price—$5 per share.
Proceeds—To be .
Service
(letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
1959
19, 1959; rights to expire on Feb. 4. Price—$14 per share.
Proceeds—Together with a proposed $3,000,000 term
loan, will be used for general corporate purposes in¬
ic Pryor Mining Co., Hardin, Mont.
Jan. 8
mining
new
to
Thursday, January 22,
.
promote and expand the development of Ihe Safety
School Shelter ibusiness.r Office—c/o Brown Kendrick,
common stock
(par $1)
stockholders on the basis of
share for each four shares held of record Jan.
being offered
Spur Oil Co.
.
To
/
Seiberiing Rubber Co.
23 filed 106,841 shares of
Dec.
to be offered for sale to residents of Canada in the Prov¬
residents of the United States
machine units.
•
Dec.
.
Johnson, Ft, Lauderdale, Fla.,
on
a
best efforts basis.
Universal Oil
Sports. Arenas
(Delaware)
Inc.
Jan.
Nov. 18 filed 461,950 shares of common stock
(par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck
None.
Rd., Great Neck, N. Y.
Underwriter—
13 filed
Processes, Inc. (2 3-4)
2,900,000 shares of capital stock.
Price—To
supplied by amendment. Proceeds—To purchase from
Guaranty Trust Co. of New. York, as trustee of the
Petroleum Research Fund, all of the outstanding shares
of capital stock' of Universal Oil Products Co. Office—30
be
Algonquin Road, Des Plaines, 111. Underwriters—Lehman
•
Volume 189
Number 5814
Smith,
Brothers,
.
.
The Commercial and Financial Chronicle
Co.,
&
Barney
.
Merrill
and
bank loans and for construction program.
Lynch,
Pierce, Fenner & Smith, Inc., all of New York.
Wen Wood
Organizations, Inc. (1 26-2 6)
(letter of notification) 100,000 shares of common
stock (par 25 cents).
Price—$3 per share. Proceeds—
For land development and home construction in Florida,'
and for general corporate purposes.
Office—62 Third
Ave., Mineola, L. I., N. Y. and 2259 Bee Ridge Road.
Sarasota, Fla.
Underwriter—Michael G. Kletz & Co.,
•
Dec. 18
New York, N. Y.
Inc., 30 Rockefeller Plaza,
★ White Pine Mining Co.
8 (letter of notification)
Jan.
($1
stock. Price—At par
y
,
Street, Reno, Nev. Underwriter—None;
"
'
,
if William Hilton Inn Co.
Jan.
19 filed together with The
William Hilton Trust,
$600,000 of trust participation " certificates, 9,000/shares
ojf class A
common
stock (non voting), and 1,050 shares
of class B
common
stock
(voting); to be offered in 600
jjnits, each consisting of 1Q
certificates- ($100 .face,
amount)/15 class A shares and 1 class B share.
Price—
$1,160 per unit. Proceeds—Together with bank borrow¬
ings, will be used to purchase from the Sea Pines Plan¬
tation Co. a tract of approximately three acres of ocean
Hilton Heal Island, to construct the
inn, purchase all furniture, fixtures and equipment nec¬
essary; to operate
the Inn and to provide necessary
working capital (and to reimburse Sea Pines Plantation
for some $20,000 of costs advanced by it. Underwriter—
The Johnsom Lane, Space Corp., Savannah, Ga.
property
First National
Jan.
is
on
Bank & Trust
to
Co., Tulsa, Okla.
vote
to approve a plan to
100,000 shares of additional capital stock (par $10)
offer
sxocknoiciers
about
Jan.
a
were
one-for-six
basis
13,
crease
1959. Price—$27
capital and surplus.
stockholders
to
of
record
share. Proceeds—To in¬
Underwriter—Merrill Lynch,
on
Georgia Power Co.
Dec. 10 it
was
announced that the company
plans to issue
and sell $18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds-—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley ,& Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 14. Bids—Expected to
be received on Sept. 10.
•
Great Atlantic
Dec.
the
15
Pacific Tea
&
>
common
—
;;
Gulf Power Co.
(4/2)
Dec. 10 it
was announced that the company plans to issue
$7,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
and sell
Alabama
Deb.
10 it
issue
and
Power -Co.
that the
announced
was
sale
of
Proceeds
bonds.
(4/30)
$20,000,000
For
—
plans
the
construction
writer—To be determined by
able bidders:
company,
of 30-year first mortgage
program.
Under¬
competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; Lehman Broth¬
Eastman Dillon, Union Securities & Co., Equitable
Co. (jointly); Harriman
ers;
Securities Corp. and Drexel &
Ripley & Co., Inc. and Goldman, Sachs & .Co. (jointly);
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston Corp.- Regis¬
tration—Planned for April 3. Bids—Expected to be re¬
ceived
April 30.
on
\
Wililam
t'
J.
Hogan,
Executive
American Natural Gas Co.
©ec.
15
it
that
announced
the
has filed
application with the SEC for the issuance of 486,325
"additional shares of common stock (par $25) in the early
was
company
an
jmonths of 1959 to stockholders under rights on the basis
of
one
share for each 10 shares held
new
subscription privilege).
(with
an over¬
Price—To be determined just
prior to offering. Proceeds—To be used as the : equity
base for the financing of substantial expansion programs
of system companies.
Underwriter—To be determined
.
^.by competitive bidding.
'&
Co.
and
First
The
Drexel
Boston
&
Probable bidders: White, Weld
Co.
(jointly);
Blyth
Inc.;
Neck, L. I., N. Y.
announced that the stockholders will vote
was
31
&.Co.,
Corp.
Central Bank & Trust Co., Great
Dec. 31 it
approving a proposed subscription of¬
fering of 38,503 additional shares of capital stock; Price
*'-—$20 per share. Proceeds—To increase capital and surJan.
on
-
V
on
Columbia
,Dec. 1 it
was
Gas
System,
Inc.
reported that the company: may issue and
common stock in the first half of 1959.
Proceeds—To repay
outstanding bank loans. Underwriter
by competitive bidding.
Probable
bidders: Lehman Brothers and Eastman Dillon, Union
be
determined
•Securities & Co.
(jointly); Merrill Lynch, Pierce, FenSmith, White, Weld & Co., Shields & Co. and R.
W. Pressprich & Co. (jointly); Morgan Stanley & Co.
&
*ner
'
stockholders.
are
to be sold for the account of selling
Proceeds—For
expansion.
Underwriter—
Offering—Expected in
Bell
Telephone Co.
(2/25)
Dec. 24 it was announced company plans to issue and
sell $50,000,000 first mortgage bonds dated March 1,
1959 and due March 1, 1994.
Proceeds—For improve¬
ments, etc. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey Stuart & Co.
Inc.; Morgan Stanley & Co.; Glore, Forgan & Co. and
Eastman Dillon, Union Securities & Co. (jointly). Bids
—Expected to be received on Feb. 25.
Interstate Motor Freight System, Inc. (Mich.)
Dec. 1 it was reported that the company plans to issue
and sell
125,000 shares of common stock. Underwriters—
A. C. Allyn & Co., Inc. and Walston & Co., Inc. "
•
Japan
7
it
stated
was
$30,000,000 of bonds
Dec. 29 it
that
may
issue
an
soon
Power & Light Co.
reported that the company plans to issue
City
if Kansas
was
"if Denver & Rio Grande Western RR. (2/4)
Bids will be received by the company at 1531 Stout St.,
Denver
1, Colo., up to noon '(MST) on Feb; -4 for the
purchase from it of $2,190,000 equipment-trust certifiseries X, maturing semi-annually from Sept. 1,.
1959 to March 1, 1974, inclusive. .Probable bidders! Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
and
sell $20,000,000 of first mortgage
construction
bonds. Proceeds—
Underwriter—To be deter¬
Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or
program.
June.
Kansas Gas & Electric Co.t
March
31, G. W. Evans, Chairman, announced that com¬
pany plans to sell some bonds originally scheduled for
mid-year of 1958. The proposed sale was subsequently
deferred until early 1959. Proceeds — About $8,000,000
for construction program.
sell
-construction
gan
if Duquesne Light Co. (2/24)
it was announced company plans
Jan., 13
to issue
and
$10,000,000 of first mortgage bonds. Proceeds—For
program.
Underwriter—To be determined
.by competitive bidding. Probable bidders: Halsey, Stuart
.& Co.
Inc.; White, Weld & Co.; The First Boston Corp.;
Kuhn, Loeb & Co., Eastman Dillon, Union Securities &
Co., A. C. Allyn & Co., Inc., and Ladenburg, Thalmann
& Co.
(jointly); Glore, Forgan & Co.; Harriman Ripley &
Inc.; Drexel & Co. and Equitable' Securities Corp.
(jointly). Bids—Scheduled to be received on Feb. 24.
Co.
v
Eastern Utilities Associates
*"
by
competitive bidding.
Probable bidders:
Stuart & Co. Inc.; Kidder, Peabody & Co., and
14
it
was
announced
company
$10,000,000 of first mortgage bonds due 1988.
ceeds—For
construction
program.
petitive bidding. Probable bidders: Kidder, Peabody &
Co.; Stone & Webster Securities Corp.
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or con¬
on
the basis of
one
new
Underwriters—To be
share* for each
determined by
12
Equitable Gas Co.
July 18 it was announced that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,000
of additional funds.
Proceeds—Together with $7,000,000
from private sale of 4>k% bonds, to repay short-term
vertible debenture
financing.
Office—75 Pitts St., Bos¬
Miami Window Corp.
reported that the company plans issuance
was
6V2% debentures due 1974 {wfth
$1,000 debenture to -carry &
warrant to buy 200 shares of common stock at $3 per
share). Underwriters—Cruttenden^ Podesta & Co., Chi¬
cago, 111., and Clayton Securities Corp., Boston, Mass.
Offering—Expected at end of February.
sale
«nd
of $2,500,000
warrants—each
attachable
Mississippi Power Co. (6/25)
10 it was announced that this company plans to
Dec.
issue and sell
$5,000,000 of 30-year first mortgage bonds.
Underwriter—To
competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. <(joint¬
construction program.
Proceeds—For
be
determined
by
ders:
ly) / Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. .(jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬
ceived
June 25.
on
*
/
"
1
if Monongahela Power Co.
Dec. 29 it was reported that the company plans
of about
$16,000,000 of first
construction
For
program.
the sale
mortgage^ bonds. Proceeds—
Underwriter—To be >deter¬
competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Eastman Dillon, Union Securities &
Co. and Salomon Bros. & Hutzler (jointly); Harriman
mined by
Ripley & Co., Inc.; Equitable Securities Corp.; W. C.
Langley & Co. and The First Boston Corp. (jointly);
Merrill Lynch, Pierce,
Fenner & Smith; Kidder, Peabody
White, Weld & Co. (jointly). Bids—Expected
be received in the latter part of March or the early
& Co. and
to
part of April.
Newark, N. J. (1/23)
proposed offer¬
State Bank,
National
Jan. 13 stockholders voted to approve a
ing of about 80,000 shares of common stock to stock¬
holders of record about Jan. 23, 1958, on the basis of
one new share for each six shares than held; rights to
expire on Feb. 16. Price—$50 per share. Proceeds—To
increase capital and surplus. Underwriter—Clark, Dodge
&
Co., New York.
,
1
,
Equitable Life Assurance Co.
announced that the company plans an of¬
North American
Dec. 1 it
was
fering of 950,000 shares of capital stock. Price — $10 per
share.
Proceeds—To increase capital and surplus. Un¬
derwriter—John M. Tait & Associates, Cincinnati, Ohio.
North American Van Lines,
Inc.
20, James D. Edgett, President, announced com¬
pany plans early in 1959 to make a public offering of its
stock, and has applied to the Interstate Commerce Com¬
mission for authority to do so.
Northern
Gas
Illinois
Co.
sell in
including some
is a possibility
of a preferred stock issue and raising of some funds
through common stock financing, "perhaps in the form
of convertible debentures."
Proceeds—For capital ex¬
penditures. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Ihe First Boston Corp.; Glore, Forgan & Co.;
Dec.
it
12
reported that the company will
was
1959 about
$35,000,000 of new securities,
bonds, in addition, there
first mortgage
Blyth & Co., Inc.
.
Northern Indiana Public
Service Co.
the company plans
sale
first mortgage
determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Lehman Brothers
and Bear,
Stearns & Co. (jointly); Eastman Dillon,
Union Securities & Co.; The First Boston Corp.; White,
Weld & Co.; Dean Witter & Co.; Blyth & Co., Inc. and
Merrill Lynch, Pierce, Fenner & Smith (jointly); Harri¬
man Ripley & Co., Inc.
Bids—Expected to be received
Dec.
29
it
from
bonds
before
was
reported that
$25,000,000 to $30,000,000 of
1989. Underwriter — To be
due
April 1.
Northern
'
"...
States
Power Co.
-
(Minn.)
3, Allen S. King, President, announced that the
plans about the middle of 1959 to put out a
stock issue and possibly a $15,000,000 preferred
stock issue if there is a satisfactory market. Proceeds—
Dec.
Louisiana
Dec. 29 it
was
Power
&
Light Co.
reported that the company plans to issue
$7,500,000 of preferred stock (par $100). Under¬
writer—To be determined by competitive bidding. Prob¬
and sell
To repay
derwriter
bank loans and for construction program. Un¬
—
To be determined by competitive bidding.
Probable bidders
(1) For preferred
stock: Blyth & Co.,
Corp. (jointly); Lehman Broth¬
ers and Riter
& Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith; Harriman Ripley & Co., Inc. and East¬
man
Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. (2) For common stock: Lehman Brothers
and Riter & Co. (jointly); The First Boston Corp., Blyth
& Co., Inc. and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill Lynch,
Inc. and The First Boston
Pierce, Fenner & Smith.
Our River Electric Co.,
Dec. 22 it was
ton, Mass.
-
shares
common
com¬
stockholders
-shares held.
common
company
Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing $790,000 of outstanding notes ($658,750 held by a principal
iJan. 5 the trustees approved an offering iri early March
of 96,765 additional shares of common stock to common
*
Dec. 15 it
& Light Co.
Power
plans to issue and
Pro¬
Underwriter—To bo
determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co.. Inc.; Equitable Securities Corp
Feb.
of
Price—$26 per share. Proceeds—To increase capi¬
tal and surplus. Underwriters—Rauscher, Pierce & Co.,
Inc. and First Southwest Co., both of Dallas, Texas.
& Co., and Goldman Sachs & Co. (jointly).
Kansas
sell
shares
additional
125,000
the basis of one new share for each 10
on
held.
of
Underwriter—To be determined
Halsey,
Merrill
Lynch, Pierce, Fenner & Smith
(jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp. (jointly); Glore, For¬
■cates,
of
Dallas, Texas.
to vote on authorizing
were
Nov.
(Empire of)
of approximately
be publicly offered on
the American market.
Proceeds — For public works
projects, etc. Financial Adviser—The First Boston Corp.,
New York. Offering—Expected early in February.
;
Jan.
stockholders
the
20
issuance
the
•
Illinois
mined by competitive bidding. Probable bidders:
;sell additional
—To
100,000 shares
For
Underw riter—None.
plus.
Heublein, Inc.
Aug. 25 it was reported that the company plans early
registration of 400,0(j0 shares of common stock; of which
1959.
Vice-President,
Finance, said this corporation may soon be.fn the mar¬
ket with a new equity type offering. ; Underwriter—
May be Lazard Freres & Co., New York...
v
13,
Smith, Salomon Bros. & Hutzler and Drexel & Co.
(jointly);, Eastman Dillon, Union Securities & Co.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra¬
tion—Planned for March 6.
Bids—Expected to be re¬
ceived on April 2.
Glore, Forgan & Co., New York.
,
★American Airlines, Inc.
Jan.
&
/
Mercantile National Bank,
Jan.
Co., Inc.
voting stock outstanding
following 10-for-l split was listed on the New York
Stock Exchange.
A large secondary offering has been
rumored.
Underwriters
May include: Blyth & Co.,
Inc.; Lehman Brothers and Smith, Barney & Co.
new
Halsey, Stuart & Co.-Inc.; White, Weld &
Co., Blyth & Co., Inc. and Shields & Co. (jointly); Mer¬
Pierce, Fenner & Smith, Kidder, Peabody &
Co. and Harriman Ripley & Co., Inc. (jointly); Salomon
Bros. & Hutzler, Eastman Dillon, Union Securities & Co.
and Equitable Securities Corp. (jointly); The First Bos¬
ton Corp. and Glore, Forgan & Co. (jointly). Bids—Ex¬
pected to be received sometime in April.
able bidders:
stock
(9/10)
75
rill Lynch,
per
Pierce, Fenner & Smith, Oklahoma City, Okla.
ing expenses. Office—Cheney Bldg., 139 North Virginia
front
Underwriter*
—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White.
Weld & Co., all of New York./
300,000 shares of- common
share). Proceeds—For min¬
per
(471)
Luxemburg
offer
of 1959. Under¬
reported that this company plans to
$10,000,000 of bonds 1n the early part
writers—The First Boston Corp. and
Kuhn, Loeb & Co.,,
both of New York.
.
Continued
on
page
/o
76
The Commercial and Financial Chronicle
(472)
*
Continued from page
Proceeds—For acquisitions.
75
Inc., New York.
Pacific National Bank of San Francisco
•
the
at
13
Dec. 10 it
rate
Jan. 14 it
Power &
ing to common stockholders of 207,852 shares of addi¬
tional common stock at the rate of one new share for
each 20 shares held about March
Planned for
•
^Puerto
Un¬
Proceeds—For construction program.
Rockland-Atlas National Bank of Boston,
it
it
11
call
150,000 shares of
common
sured
Mass.
13
The
it
high grade corporate bond
list
since
the
that
the
putting on a
Treasury's
the
turn
the
of
dissemination
Congress
raise the
on
that
$10,000,000 of this
common
stock
week
which the Government may offer
new bond issues.
reports
bid
as¬
acted
as
Steel
the
reception
Treasury's
million
priced
of
at
accorded
offering
21-year,
99, to
of
4%
yield
de¬
a
$750
bonds,
4.07%.
bonds
while
the
only $3.20 per
$1,000
lower,
indicating
rather
similar thinking on the part of
the competing groups.
Market
in
observers
that
report
the
and
traders
institutional
seasoned
and
interest
new
debt
for
total
a
of
$1.8 billion of the
And while there is
always
a recognized amount of
"padding"
•of such orders, it was considered
that the foregoing
total, 2.4 times
the
showing a tend¬
expand considerably at
to
ency
point.
offered,
consisted
over-whelmingly of
bona
fide
subscriptions.
that talk
of
a
move
to
raise
ury,
rather
than
make
move, would revert to
fjorrowing for
Again, it
is
the
some
such
in
is
that
year.
latest
The
hesita¬
of fixed income
the
the
in
a
continued
and
in
widening
yields
over
the part
technics
pyro¬
equity
spread
favor
of
in
market,
relative
bonds,
is
a
short-term
was
cideration became
a
pressing fac¬
tor, could be arranged by
offering
bonds at the
necessary "discount"
from parity. There would not be
anything novel in such procedure.
was
employed
the recent
been
four
pursued
in
the
of
case
percents and has
regularly
in
the
weekly sale of discount bills. '
Real Quick Mover
as
yet, but
have
the
into
as
rush to buy
observers note "they
any
money"
anytime
they
mortgage,
pipe line bonds, encountered brisk
when
that
issue
Based
was
on
the
volume
awarded
sale
the
Of
sale of the
the best since the turn of the
year
for underwriters and distributors
of
proceeds
the
from
bonds, $25,000,000
the prepayment
41/4% notes due June 1, 1959,
of
be
new
for
used
the balance will be, added
company's
to
capital
working
and will be available for construc¬
tion of
facilities, for reduction of
the amount of 3%%
issued
are
under
credit
agreement,
porate
notes, which
revolving
for other cor¬
a
purposes.
a
are
or
not refundable at
lower interest cost to the
com¬
pany prior to Jan. 1, 1964. Other¬
wise they are redeemable at reg¬
ular
redemption
prices ranging
104.50% to
100%, and at
sinking fund redemption price
from
beginning July 1, 1960. The
bonds
on
before
or
and Robert W. Baird &
ties
a
competitive bidding. Probable
Co.
Smith, Barney & Co.
(jointly); Equitable Securi¬
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); White, Weld
Offer¬
& Co., Kidder, Peabody & Co.
Secondary Completed
A
share.
The
term
bank loans
working capital
greater
volume
required by a
of
commercial
business obtained during the past
year as a result of the transition
to
jet aircraft by the major air¬
of
about
$179
million
lines.
On Dec. 1, 1958, the com¬
had unfilled orders amount¬
ing to about $222,000,000 of which
about 65% represented orders for
components for commercial air¬
ponents
remainder for
military
for
com¬
aircraft.
assemblies
for
craft.
company
The
also
other
for
aircraft. Rohr owns its principal
plants located in Chula Vista and
Riverside,
Calif.;
an
assembly
plant near Auburn, Wash., and its
new
corporate offerings is on
with Consolidated Edison's
issue of
$59,778,600 of convertible
debentures "on rights," set to open
Tuesday, as the largest single item.
The
same
day Avco Manufac¬
turing Corp. has $15 million of de¬
bentures slated for
offering and
Central Illinois Public Service Co.
open
bonds.
bids for $12 million of
Also
on
Tuesday,
Trans¬
continental gas Pipe Line Corp.,
will market $35 million of bonds
and Central Hudson Gas &
Elec¬
tric Corp. has
350,000 shares of
to
other
companies and municipalities and
gas
districts, and directly to
tain industrial
is
also
users.
engaged
in
cer¬
facilities
in
Los
explora¬
tion for and development and pro¬
duction of gas and oil.
For
the
31,
12
000
and
fiscal
months
ended
Oct.
revenues
1958,
net
sales
of
the
net income
com¬
to
With La Hue Inv.
ST.
PAUL,
Burke
is
now
Minn.—Ralph
affiliated
Hue Investment
with
B.
La
Co., Pioneer En-
dicott Arcade.
Joins Paine, Webber
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn. —Frank
W. McDermott is
now
with
Paine,
Webber, Jackson & Curtis, Pills-
bury Building.
With Jaclyn Oertle
ended July 31, 1957.
LOUIS,
Clugston
has
Mo.—Donald
rejoined
$12,-
Midwest
Clugston
000 and
Frank
N.
of
the
Stock
has
L.
Dempsey-
Exchanges.
Mr.
recently been with
poria, Kans.
&
Securities,
7713a Brookline Terrace.
J. C. Rahel Adds
and
Warren
joined the staff of Jaclyn
Oertle Investment
York
New
LOUIS, Mo.—James B. Bi-
ondo has
Tegeler & Co., 1000 Locust Street,
117,000, compared with $101,151,-
$11,269,000 for the calen¬
Ex¬
previously
(Special to The Financial Chronicle)
of $3,760,000
(Special to The Financial Chronicle)
394,000
income
Stock
was
with Ryan, Sutherland & Co.
ST.
members
dar year 1957.
$4,022,000
Rejoins Dempsey-Tegeler
$99,-
net
Midwest
(Special to Tub financial Chronicle)
of the company amounted to
and
and
changes. Mr. Howe
ended
year
amounted to $147,538,000
for the year
ST.
31, 1958, total operating
Kenower, MaeArthur & Co. of De¬
troit, Mich., members of the De¬
An¬
The company
the
Ohio. — Richard
T.
Howe has become associated with
geles. Several other properties are
pared with net sales of $115,766,-
wholesale
(Special to The Financial Chronicle)
TOLEDO,
leased.
the
;
With Kenower, MacArthur
manu¬
parts
and net income to
at
shire Street.
multi-engine,
various
warehouse
Mass. — Barbara A.
joined
the
staff
of
Weld & Co., Ill Devon¬
has
White,
jet,
turbo-prop and piston engine air¬
factures
White, Weld
BOSTON,
Cook
troit
Principal products of the com¬
pany are power package or pod
state transmission and sale of nat¬
gas,
Joins
Smelting
(Special to The financial Chronicle)
pany
craft and the
it is understood,
proceeds,
increase
to
and
ural
total
The
will go to the American
& Refining Co.
ceeds of the sale to reduce short-
company
the inter¬
.
West Coast manufacturing
intends to use the pro¬
July
for
secondary offering of 225,973
common stock
(par $5)
Corp. was made
on
Jan.
21
by Merrill Lynch,
Pierce, Fenner & Smith, Inc. The
offering was quickly completed,
ing was quickly completed.
of Cerro de Pasco
concern
pipeline
system
April 15. Regis¬
on
9.
shares of
The First Boston Corp. and Les¬
ter, Ryons & Co. are joint man¬
agers of the group that is offer¬
ing publicly today (Jan. 22) an
issue of 300,000 shares of Rohr
Aircraft
Corporation common
stock, par value $1, at $22.50 per-
The company owns and operates
a
(jointly); The First Boston
Cerro de Pasco Corp.
Ryons Group Offers
During
maturity.
securities.
new
tap,
bid of 99.11%.
on a
sinking fund will retire all of the
looming for the
period, next week promises to be
A
net
at competitive
new
corporate issues
of
the issue
Jan. 20
on
of par
of
Gas
pipe line sink¬
ing fund bonds, 4%% series due
1979, at 100%. The group was
a
Good Week Ahead
will
Southern Natural Gas Co.'s
$35
million of 20-year, first
demand
by
bidders: Halsey, Stuart & Co. Inc.;
First Boston-Lester
offered
000,000 of Southern Natural
The bonds
True, this rising interest on the
part of major investors has not
blossomed
which
publicly yesterday (Jan. 21) $35,-
weighty factor.
a
time ahead.
underwriters
the
Treas¬
noted, the matter
of increased
yield, if such a con-
It
of
they I have
ceiling on such interest rates is get ready.
jyremature to say the least. Con¬
census seems to be that the
$14,000,000 first mortgage bonds. Underwriter
determined
be
(4/15)
of
Blyth & Co., Inc., and Kidder,
Peabody & Co. headed a group
and
securities
million
Natural Gas Bonds
interests, it is argued, are
scanning things more closely than
on
$7
plus
Blyth-Kidder, Peabody
Group Offers Southern
amount
Feeling in the market place
was
Rohr Aircraft Stock
will
Such
tion
bonds,
Co. first mortgage
Institutional Interests
assumption
Prospective buyers placed orders
Uonds.
it
tration—Planned for March
Northwest Natural Gas Co. bonds.
a
was
this
considered
was
reported that the company contemplates
—To
time.
some
common slated for
offering. Wed¬
nesday brings $50 million Inland
group paid the
price of 99.11 for the
a
coupon
of
good
Power & Light Co.
12
Corp. Bids—Expected to be received
issue markets is
what
it Wisconsin
Jan.
offering and the rest will consist of first
ing—Not expected for
the
$15,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Eastman Dillon, Union Securities & Co.
(jointly); The First Boston Corp. and Harriman Ripley
& Co. Inc. (jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be received
some time in May.
•
Co.
will be raised via
reported the company contemplates
was
derwriter—Dillon, Read & Co., Inc., New York.
issues,
emanating from
<€lie Capital developed in the wake
cidedly
it
29
issue and sale of about
Corp.
new capital
June 2.
on
and Salomon Bros. & Hutzler
reports
on
Such
Dec.
reported that the company has filed an
application with the Federal Power Commission cover¬
ing $40,000,000 of additional financing.
It is believed
investor buying.
second
be asked to
interest rates
may
ceiling
of
be received
it West Penn Power Co.
was
successful
4%%
€tnd
(1/27)
company plans early
common stock via ail
the
utility
to
company
than
the
Gas Transmission
quick closing of the books.
a
recent
spur
show
that
announced
was
yield, plus the
fact that the maturity was con¬
siderably shorter than that of most
Uetter
reported
was
the sale of
Texas
Jan.
inquiries
reported
Presumably,
been
Virginia Electric & Power Co. (6/2)
5 it was reported that the company plans the sale
from $20,000,000 to $25,000,000 of additional common
stock.
Proceeds—For
construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Merrill Lynch, Pierce, Fenner & Smith;
Stone & Webster Securities Corp.
Bids—Expected to
York.
plans the issu¬
stock (par $5).
company
record
of
increase capital and surplus.
mortgage bonds. Proceeds—For expansion program. Un¬
Dealers
has
stockholders
its
to
of
for
placed on the market, at par, to
yield 4.75%.
market
offered
—
Proceeds—To
on
the sale of bonds, debentures and
preferred
Proceeds—To refund $30,000,000 of outstanding
bank loans, and the balance will be used for
capital ex¬
penditures. Underwriter—Dillon, Read & Co. Inc., New
New York.
The
Bank
15, 1959 the right to subscribe for 10,000 additional
shares of capital stock (par $25) at the rate of one new
share for each five shares held. Price
$35 per share.
stock).
40,000 shares of
capital stock (par $10) on the basis of one new share
for each 6V2 shares held; rights to expire on Feb. 4,
1959. Price—$38 per share. Proceeds—To increase capi¬
tal and surplus. Underwriter — The First Boston Corp.,
and sale of
the
15
Jan.
by W. Hargrove, Vice-Presi¬
dent, that the corporation plans to raise about $90,000,000 through the sale of new securities (tentative plans
the right to subscribe for an additional
ance
Jan.
Jan.
Texas Eastern Transmission
/Jan. 21 stockholders of record Jan. 20, 1959 were given
Ryder System, Inc.
Jan. 12 it was reported that the
13
Dec.
announced that sale of
$20,000,000 public
improvement bonds dated Jan. 1, 1959 and due annually
from July 1, 1960 to July 1, 1979, inclusive. Underwriter
—To be determined by competitive bidding. Probable
bidders may include First National City Bank of New
York; J. P. Morgan & Co., Incorporated. Bids—To be
received up to 11 a.m. (EST) on Jan. 28.
9
Bids—Expected to be received
Technology Instrument Corp.
(1/28)
(Commonwealth of)
Rico
was
May 1.
Co., New York.
it Uptown National Bank of Chicago
registration of 130,000 shares of
amendment to an earlier registration statement. Under¬
writer—Shearson, Hammill & Co. and S. D. Fuller &
Co., both of New York.
'
derwriter—May be Allen & Co., New York.
Jan. 15 it
&
are
Jan.
was
stock.
by
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
March 3.
reported that the directors will meet on
Jan. 27 to discuss the issuance of 50,000 shares of pre¬
ferred
bonds.
Underwriter—To
bidding.
Probable bid¬
mortgage
expected to be received by this company up to
noon
(EST) on Feb. 18 for the purchase from it of $7,125,000 equipment trust certificates. Probable bidders:
Public Service Co. of New Mexico
Jan. 12 it
first
program.
^ Southern Pacific Co. (2/18)
Bids
Probable bidders: Lehman Brothers, East¬
man Dillon, Union
Securities & Co., Bear, Stearns &
Co. and Dean Witter & Co. (jointly); Ladenburg, Thalmann
& Co.; Kidder, Peabody & Co.
Bids—Expected
on
30-year
of
construction
3; rights to expire on
tive bidding.
to be received
24 it was reported that the company plans early
registration of about 250,000 to 300,000 shares of common
stock. Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriter—Smith, Barney
(5/28)
May 28.
Underwriters—To be determined by competi¬
March 25;
Generating Co.
competitive
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody
& Co. and White, Weld & Co. (jointly).
Registration—
reported tnat the company plans an offer¬
was
Nov.
announced that the company plans to issue
determined
be
(3/3)
Light Co.
$25,000,000
sell
Proceeds—For
Price—$42 per share.
Underwriters—Blyth & Co., Inc. and Elworthy & Co.,
both of San Francisco, Calif.
Jheld; rights will expire on Feb. 3.
Pacific
was
and
(par $20) to stockholders of record Jan.
of one new share for each three shares
stock
common
Thursday, January 22, 1959
.
Thomas & Betts Co.
;
Southern Electric
bank offered 74,511 additional! share of new
Jan. 14 the
Underwriter—Blyth & Co.,
■.
..
Co.
of
Em¬
(Special to The Financial Chronicle)
OMAHA, Neb.—Orville V. Neilsen
has been added to the staff of
J. Cliff Rahel and
First
National
Company, Inc.,
Bank
Building.
Number 5814
189
Volume
.
.
.
The Commercial and Financial Chronicle
The following statistical tabulations
Indications of Current
latest week
Business Activity
week
Latest
IRON AND STEEL INSTITUTE:
AMERICAN
Indicated
Week
(per cent capacity)
operations
Steel
(473)
-Jan.
$75.8
Previous
Week
*74.6
or
month available.
or
month ended
Month
on
Steel
ingots
that date, or, in
(net tons)
castings
and
—Jan.
Ago
68.2
(bbls.
55.4
BUSINESS
Distillate
output (bbls.)_
fuel oil output
Residual
fuel
Kerosene
(bbls.)
Kerosene
8,256,000
7.096,654
7,788,000
Jan.
28,689,000
29,714,000
28.240,000
Jan.
3,102,000
14,532,000
3,080,000
14,593,000
2,698,000
13,651,000
7,549,000
7,056,000
7,011,000
*186,482,000
198,738,000
25,363,000
26,057,000
119,107,000
126,056,000
174,706.000
29,647,000
148,087,000
59,991,000
60,525,000
62,816,000
27,261,000
550,090
476,381
467,699
11 +! 435,784
U.
569,807
532,274
490,356
15
$301,583,000
$259,989,000
$291,813,000
15
—Jan.
125,058,000
85,389,000
109,497,000
176,525.000
128,415,000
174,600,000
144,106,000
182,316,000
125,759,000
48,110,000
30,494,000
56,557,000
34,707,000
-Jan. 15
Bituminous
S. BUREAU OF
(U.
COAL OUTPUT
coal
and
lignite
Jan. 10
8.145,000
*7,015,000
9.025,000
10
546,000
447,000
507,000
506,000
AVERAGE
—
Electric output (in 000 k\vh.)__
BRADSTREET,
INC.
Jan.
INDUSTRIAL)
(COMMERCIAL AND
FAILURES
—
__
DUN A
.—Jan.
•■4./.Z.:„
no
17
13.324,000
13,554,000
13.534,000
12.400,000
294
251
321
Pig iron
6.196c
6.196c
13
$66.41
$66.41
$66.41
$66.42
13
$40.50
$40.17
$39.83
(E.
METAL PRICES
Jan.
Jan.
ton)
Domestic
at
at
Louis)
(St.
tZinc (delivered)
14
28.600c
28.600c.
28.550c
Jan.
Jan.
Ian.
Jan.
Jan.
—
at
14
28.100c
27.125c
27.025c
Straits
14
13.000c
13.000c
13.000c
14
12.800C
12.800c
12.800c
12.800c
14
12.000c
12.000c
12.000c
10.500c
14
11.500c
11.500c
11.500c
(New
14
24.700c
24.700c
24.700c
26.000c
14
98.875c
99.125c
99.000c
92.625c
—Jan.
20
85.04
85.52
86.52
Average
Bonds
corporate
20
90.06
90.20
90.28
95.62
94.41
94.56
94.86
MOODY'S
P
9,608,000
*6,869,000
6,953,000
$86.58
$82.74
95.65
93.90
88.93
78.01
77.22
74.88
-.40.2
.39.9
39.4
40.3
39.7
39.6
39.4
$2.19
$2.17
2.35
2.33
2.24
1.87
___
1.87
1.83
$244,400,000
$233,100,000
$248,800,000
102.6
1
160.7
All
99.52
89.92
96.54
Nondurable goods
20
83.79
84.04
84.17
84.81
20
88.67
88.40
88.54
92.06
89.64
89.92
90.34
96.85
91.91
92.20
92.64
98.09
4.41
4.40
4.11
4.10
4.08
3.57
% 3.78
4.38
~
.
_________
goods
" : V
—
39.0
Hourly earnings—
All
manui'actiu-ixig.^^1(_„Av_i.„_____....___Z_
Durable
goods
Nondurable goods
INSURANCE—BENEFIT
PAYMENTS
POLICYHOLDERS— INSTITUTE
3.00
Ian, 20
Jan
.
;,
—
manufacturing
93.52
.Jan, 20
OF
Hours—
89.78
3.76
DEPT.
S.
r
92.79
,
U.
—
goods
Nondurable goods
89.92
3.88
HOURS—WEEKLY
LABOR—Month of December:
92.79
3,93
—
:
AND
ESTIMATE
Durable
20
_
goods
EARNINGS
Durable
DAILY AVERAGES:
U. S. Government Bonds
Average corporate
16,561,000
*8,673,000
5,372,000
Avge.—lOO)—
Average=100)—
Weekly earnings—
All manufacturing
LIFE
YIELD
*15,542,000
of
;
goods
20
Group
Group
BOND
*152.2
9,872
of
20
J an.
Jan.
Group
Utilities
*94.8
$88.04
(1947-49
(1947-49
number
20
Public
7,322,000
40.7
indexes
AVERAGE
102.96
Baa~IlI_I——II—I
Railroad
$12,694,000
*6,431,000
*5,297,000
7,723
DEPT.
;
__
20
Industrials
*$11,728,000
6,786.000
S.
SERIES—Month
manufacturing
FACTORY
MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government
2,400
157.2
__
_
goods
Nondurable
94.15
at
York)
2,507
8,911,000
PAYROLLS—U.
indexes
Durable
10.000c
Jan.
Jan.
at
(primary pig. 99%) at
tin
4,147
15,697,000
:
_
manufacturing
All
21.700c
13.000c
-Jan.
(East St. Louis)
Aluminum
All
24.575c
20
Zinc
3,325
4,191
96.1
;
__
employees in manufac¬
turing industries—
Jan.
Export refinery at
(New York)
3,414
5,216,000
_
manufacturing
Payroll
...
at
refinery
goods
Estimated
M. J. QUOTATIONS):
&
Electrolytic copper—
All
$33.17
(per gross ton)
Scrap steel (per gross
3,499
6,671,000
loans
manufacturing (production workers)
Nondurable
5.967c
6.196c
2,095
10,112
4,297
loans
November:
All
260
—Jan. 13
steel
8,289
2,128
8,349
10,338
_
_■
LABOR—REVISED
Durable
15
8,411
$11,887,000
_____
_______
EMPLOYMENT AND
OF
15,459
8,528
2,542
goods
__
payment
Employment
(per lb.)
Finished
Lead
293
105
COMPOSITE PRICES:
AGE
Lead
121
ELECTRIC INSTITUTE:
EDISON
IRON
10
33,566
14,164
credit
term
__Z_I
modernization
Service credit
Jan.
100
$43,438
33,052
SERIES—Esti¬
Charge accounts
SALES INDEX—FEDERAL RESERVE
STORE
SYSTEM—1947-49
,
Single
$43,164
RE¬
29:
__
Personal loans
8,790,000
52,350
2,146
FEDERAL
Mcninstalment credit
(tons)
504,785
105,923
8,386
THE
credit-
and
575,618
14,066
_:
_
intermediate
consumer
Repairs
MINES):
Pennsylvania anthracite (tons)
DEPARTMENT
Other
80,115,000
557,135
720,340
33,126
OF
of Nov.
Automobile
114,822,000
Jan. 15
municipal—
and
Instalment
105,118,000
-Jan. 15
construction
State
$219,940,000
'
409,765
681,541
OUTSTANDING—BOARD
and
as
$966,900
430,267
$43,464
__
SYSTEM—REVISED
short
$1,111,808
612,806
846,353
municipal
GOVERNORS
mated
$91,100
$1,459,159
:
—
—
CREDIT
SERVE
$85,000
omitted):
construction
in millions
construction
Public
$84,800
of
construction
and
12,800
24,200
EN¬
—
Month
—
Federal
OF
$54,100
12,100
23,700
126,013
(000's
S.
CONSTRUCTION
NEWS-RECORD
construction
State
s$49,300
23,500
Total consumer credit
construction
s.
Private
U.
Public
ENGINEERING
NEWS-RECORD:
Total
$49,300
,
Private
141,349,000
588,847
Ago
Oct.
_
ENGINEERING
CONSUMER
Jan.
—
of
12,100
December
58,257,000
-Jan.
Jan.
Jan.
CONSTRUCTION
Month
—
Year
Month
COM-
__
,
GINEERING
Total
freight received from connections (no. of cars)—Jan.
ENGINEERING
CIVIL
7,705,000
190,024,000
A8SOCLATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue
SERIES
OF
Total
13,189,000
Jan.
at
DEPT.
-
6,849,985
7,772,000
26,981,000
2,524,000
terminals, in transit,.in pipelines(bbls.) at
Jan.
Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at
CIVIL
7,122,335
Jan.
-
unfinished gasoline
and
NEW
Retail
7,051,835
118,245,000
of that date;]
Previous
(Millions of dollars):
1,496,000
1,840,000
-Jan.
(bbls.)
(bbls.)
output
oil
Stocks at refineries, bulk
Finished
INVENTORIES
Wholesale
—Jan.
;—
to
runs
*2, 111, 000
of
stills—daily average (bbls.)
Gasoline output (bbls.)—.——
Crude
§2,147,000
are as
Month
Ago
Manufacturing
average
of quotations,
cases
either for the
are
Latest
MERGE
gallons each)
42
Dates shown in first column
Year
Equivalent to—
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
production and other figures for tkt
cover
$2.10
>
TO
LIFE
OF
INSURANCE—Month of October:
4.03
Death
benefits
Matured
.
endowments
Aa
.Jan, 20
4.22
4.22
4.17
60,400,000
57,400,000
.Jan, 20
4.42
4.43
4.42
3.97
Disability payments
A
10,200,000
10.400,000
64,000,000
10.200,000
Jan, 20
4.88
4.86
4.85
4.80
Annuity
53,600,000
47,600,000
47,600,000
120,200,000
119,000,000
118,300,000
105,200,000
110,300,000
98,200,000
$594,000,000
$577,800,000
$587,100,000
$4,021
Baa
.
Railroad
Public
Industrials
4.51
4.53
4.52
4.27
Surrender values
20
4.44
4.42
4.39
3.95
Policy
4.28
4.26
4.23
3.87
393.0
392.9
§264,368
§275,279
—Jan.
Jan.
Group
Group
20
385.7
384.0
Jan.
10
++316,150
**365,380
t+275,370
Jan.
10
t+303,880
**320,797
t+309,537
+494
LIFE
Production
(tons)
Percentage
++78
++416,078
**405,256
%+403,401
§402,939
Jan. 16
110.57
110.38
110.73
REPORTER PRICE INDEX—
AVERAGE
=
100
TRANSACTIONS
FOR
ACCOUNT
OF
1,431,270
Dec. 27
226,040
2,785,000
473,130
2,628,030
Other
Total
2,195,750
2,130,730
932,940
562,100
572.060
294,020
14,000
40,400
45,400
24,400
211,240
500,160
539,970
194,650
225,240
540,560
585,370
219,050
413,200
902,500
785,110
81,600
191,780
134,410
460,164
46,590
361,660
915,514
806,721
335,922
Louis (per pound
prompt (per long ton)
1+Three months, London (per long ton)_
Zinc
(per pound)—East St. Louis
§§Zinc, prime Western, delivered (per pound)
t+Zinc, London, prompt (per long ton)
t+Zinc, London, three months (per long ton)
443,260
1,107,294
941,131
382,512
Silver
Common, New York
27
2,052,840
4,249,600
3,985,200
2,050,394
321,640
705,310
674,090
265,060
1,717,950
2,039,590
3,611,424
4,316,734
3,477,421
4.151,511
1,463,512
1,728,572
SPECIALISTS
AND
Odd-lot
sales by dealers
Number of Bhares
ON
EXCHANGE
N.
Y.
Tin,
Dec. 27
884,168
1,832,249
$107,754,083
1,517,823
$72,439,196
1,069,228
$39,504,282
1,821,340
1,526.476
1,127,326
Customers'
short
sales
■
Dec. 27
4,279
9,354
Customers'
other
sales
■
Dec. 27
861,764
1,811,986
1,118,409
-Dec. 27
$44,494,109
$93,735,024
11,152
1,515,324
$71,988,519
Other
Round-lot
.Dec. 27
sales.
.Dec. 27
sales
866.043
8,917
285,840
596,790
347,330
-Dec. 27
285^840
596/790
508^010
.Dec. 27
shares
287,725
618,110
464,340
round-lot
**
RECT
AND
U.
S.
380,430
871,810
873,990
367,890
Dec. 27
8,939,200
19,203,650
17,090,470
10,021,700
LABOR
—
9,319,630
19,675,460
17,964,460
10,389,590
All
Farm
.
Jan.13
119.4
*119.3
119.0
Y18.7
.Jan. 13
AH commodities other than farm and foods.
*91.6
90.0
108.4
108.0
108.9
103.2
102.1
102.0
127.3
*127.3
127.0
3§Week
1, 1958, as against Jan.
endfd
Jan.
11,
1958.
Uncorrected
figure.
36.590c
33.000c
29.000c
29.500c
33.500c
$55,864
$84,000
$1.45000
$1.70000
$1.45000
IN
$1.45000
$1.45000
$1.70000
$1.45000
$1.45000
$1.70000
$2.00000
$2.00000
$2.00000
$26,800
$24,700
35.250c
35.250c
74.000c
74.000C
$2.25
$2.25
$28,100
$26,000
\
35.250C
DI¬
SECURITIES
of November:
$67,151,850
$55,143,500
4,961,203
$283,167,033
6,524,998
$275,002,145
4,606,162
$278,069,998
2.689%
DIRECT
$17,347,000
$283,031,201
DEBT
$276,642,035
2.679%
$270,395,983
2.889%
AND
funds
balance
WHEAT
rate
PRODUCTION—CROP
RE¬
PORTING BOARD
CULTURE—As
of
U.
S.
Dec.
1
DEPT.
OF
AGRI¬
(bushels)
•Revised figure. tAverage based on' the
of Jan.
32.590c
126.0
^Includes 981,000 barrels of foreign crude runs.
sBased on new annual capacity of 140,742,570 \ tons
1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on deliv ered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
**Eleven days ended Dec. 31, 1958.
++Ten days ended Jan. 10, 1959. ttWeek ended Dec. 13, 1958.
•Revised figure.
as
$35,000
$226,957
100.7
.Jan.13
WINTER
93.6
108.9
.Jan.13
foods
Meats
91.5
.Jan. 13
products
Processed
89.359c
99.022c
$35,000
$227,045
$24,700
—
„
GROSS
Computed annual
commodities
78.173d
$2.80261
$52,000
OF
Commodity Group—
90.368c
77.419d
$2.80553
29.500c
As of Dec. 31
General
Dec. 27
£67.063
90.125c
GUARANTEED—(000's omitted):
Dec. 27
U. 8. DEPT.
£72.803
.___
STATES
sales.
—
£71.253
74.000c
GUARANTEED
A,—Month
sales.
NEW SERIES
(1947-40 = 100):
10.500c
£67.527
29.000c
primary pig
purchases
UNITED
PRICES,
10.000O
11.367c
11.867c
£75.275
32.590c
(per pound)
sales
Net
(SHARES):
sales
11.500c
12.000c
£74.342
$35,000
Bismuth (per pound)
Other
Total
£83.327
$220,182
'
Short
WHOLESALE
£75.838
$2.25
grade
Nickel
Net
sales—
£72.327
98.976c
_
TREASURY MARKET TRANSACTIONS
ROUND-LOT STOCK SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
99%
Magnesium ingot
323,610
EXCHANGE AND
Total
Straits
York
Aluminum,
OF
TOTAL
13.300c
£83.167
$26,800
347]330
purchases by dealers—
of
Nov/
tCadmium, refined (per pound)
(per pound)
§ Cadmium (per pound)
Cobalt, 97% grade (per pound—ounce ton)—
Aluminum, 99% grade ingot weighted average
$38,952,023
508,010
13.500c
12.800c
£75.584
76.167d
tCadmium
-Dec. 27
sales
Number
aa.oooc
12.800c
£72.202
$2.80380
(per pound), bum Laredc
Antimony (per pound), boxed Laredo
Platinum, refined (per ounce)
Round-lot sales by dealers—
shares—Total
£191.887
89.935c
ounce)
(per
Antimony
(customers' purchases)—+
value
New York
Gold (per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)
1 Antimony, New York, boxed
STOCK
$47,440,763
of
£236.588
and Sterling Exchange—
Silver, London (per ounce)-.
Sterling Exchange
(check)
COMMISSION:
Odd-lot purchases by dealers (customers' sales)Number of orders—Customers' total sales
(per pound)
Common, East St.
ft London,
Silver,
Dec.
SECURITIES
23.109c
£187.929
13.000c
208,370
—Dec. 27
1
—
26.339c
29.476c
£242.975
£220.732
1,127,010
transactions for account of members—
DEALERS
28.665c
27.041c
Dec. 27
sales
2o.5o3c
£220.994
Dec. 27
EXCHANGE
Short
!_
2,625,010
■TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
-
!.
refinery (per pound)
Export refinery (per pound)
+ 1 London, prompt (per long ton)
t(Three months, London (per long ton)
2,668,880
27
Number
j
;
i
i^mestic
194,070
1,145,050
1,371,090
27
Dollar
QUOTATIONS)—
Dec. 27
purchases
LOT
(E. A M. J.
Dec. 27
round-lot
Short
$6,126
Initiated off the floor—
sales
sales.
Total
-
$q,056
Total
Dec. 27
Other sales
Total
.
1,538
Dec. 27
sales
purchases
Short
567
666
Dec. 27
-
sales
Total
557
759
Dec. 27
—
sales
transactions
Other
$3,833
579
Group
Lead—
purchases
Total
$4,166
Industrial
1,296,210
494,280
Other transactions initiated on the floor—
Short
Oct.:
of
1'
Ordinary
Dec. 27
i
sales
Total
INSTITUTE
Copper—
—Dec. 27
27
Total
—
D°"«mber:
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
>.
PURCHASES
INSURANCE —Month
METAL PRICES
MEM¬
-Total purchases
Short sales
LIFE
(000.000's omitted):
108.44
at end of period
(tons)
OIL, PAINT AND DRUG
ROUND-LOT
10
10
Jan.
Jan.
activity
of
Unfilled orders
§88
**55
_.
INSURANCE
OF
(tons)
_
dividends
Total
PAPERBOARD ASSOCIATION:
Orders received
1949
20
Jan.
MOODY'S COMMODITY INDEX
NATIONAL
payments
.Jan, 20
Group.
Utilities
;
957,369,000
1,179,924,000
producers' quotation. tBased on
the average
producers' and platers quotations.
§ Average of quotation on special shares to
Domestic five tons or more but less than carload lot boxed. §§Delivered where
freight from East St. Louis exceeds 0.5c.
**F.o.b. Fort Colburne TJ. S. duty included.
t+Average of daily mean and bid and ask quotation at morning session of London
Metal Exchange.
$ilncrease all stocks.
of
tho
plater.
78
The Commercial and Financial Chronicle
(474)
of
Joins F. I. du Pont
(Special to The Financial Chronicle)
ican
States
was
By ROBERT R. RICH
Com¬
-
pany.
Spencer Trask Adds
Special to The Financial Chronicle)
i
by
formerly with
Investment
One William Assets
additions
New
Rise 25% in First
BOSTON, Mass.—Karl A. Grace
been added to the staff of
the
during
Seven Months
Street.
.
-
EATON & HOWARD
~anb
feUed'
*0<
\n-
cU^e
due
-b\e
Dec. 31, 1958.
the balance, $24,235,000 was
to net purchases of additional
shares.
stock
Common
:o^e
St 0
c/cs
£rOftth
bim on
f 0/
which
or
;
EATON & HOWARD, Incorporated
1"
24 Federal St., Boston 10, Mass.
com¬
clared.
share,
The
was
share
able
was
in¬
de¬
first, 6V2 cents per
paid on Nov. 10. The
of
declared
record Jan.
cents
8
per
Jan. 8, pay¬
on
12.
share
12.9%
been
Feb. 9 to shareholders of
on
Per
the
$3,055,682
have
dividend
second
for
investment
two
dividends
come
income
totalled
months
from
Investment Dealer
net
asset
the
during
value
rose
months
seven
from
$11.56 to $13.05, not includ¬
ing the 6V2 cents dividend paid
Nov. 10.
On Sept. 30, net asset
value per share was $12.02.
:
Referring to the Fund's large
equity holdings at year end, Mr.
Interested
In
ATOMIC
Bethlenem
Steel
Corporation, Caterpillar Tractor
Company,
Champion
Paper
&
Fibre
Company,
Clark
Equip¬
ment
Company,
General
Tele¬
phone
Company,:
International
Business
Machines
Corporation,
quarter
were
National
Lincoln
Newmont
Stan d
and
stocks
more
than 75
companies
which
most
benefit
The
last
30
and
$4.2
held
antic¬
from
on
most
In the report, Lehman Brothers,
investment
adviser,
the
firm's
views
in
three major areas: 1. The Long-
the
Fund's
Term
Outlook
as:
Development Securities Co., Inc. Dept C
WASHINGTON 7, D. C.
pub¬
utilities, 11.1%, $30.8 million;
oil and gas, 10.7%, $29.5
million;
chemical industry, 8%, $22.25 mil¬
lion; steel, 8%, $22.12 million; of¬
fice equipment, 4.3%, $11.9 mil¬
lion; and pharmaceutical products,
4.2%, $11.6 million.
The five largest of the 131 indi¬
vidual
common
at market value
EITHER PROSPECTUS
International
stock investments
on
Dec. 31
Business
for
American
In¬
dustry, 2. Recent Business Con¬
ditions, and 3. Outlook for the
Months Immediately Ahead. The
firm
said, in these connections
that, "For the long-term we an¬
ticipate continued growth in busi¬
activity, coupled with a mod¬
erately rising price level. A num¬
ness
ber of factors should promote
expanding
for
the
prosperity
in
economy
r
-/.
•
•
an
the
years
were:
Machines
be the most realistic
estimate, the
present population of 175 million
should increase to 196 million by
1965, to 235 million in the ensuing
sumer
an
enormous
market
labor force
"Another
million
to 260
and
are
new
by
which
should
contribute to
eco¬
nomic
con¬
tinued
a
high rate of
growth is the likely
increase
ductivity. We
in
over-all
pro¬
entering a pe¬
riod during which, in our opin¬
ion, the combination of population
growth, the substantial public1 and
private experiditur.es related to it,
are
the continued advance in produc¬
Steel
there will be
Corporation, National Steel
tivity,
and
the
no
probability
Investors
|
J|
I
5|
Get the facts
ESTABLISHED 1925
that
prolonged period
ij Incorporated
l
which
on
a
49 and
the
1953-54. Another
Fall
of
reached
its low point.
1958
investing in
income.
a
of securities for current
A prospectus
the
economy
The action
together with the stability of con¬
sumers' personal income and ex¬
penditures
(which
declined
by
less
than
1%)
important in
were
stimulating* recovery.
This
strength of personal income and
spending
consumer
cent
perhaps,
was,
the outstanding feature
of the
re¬
recession-recovery period.
"Most economic indicators have
turned
now
have
we
upward.
reached
business
eral
We
believe
point in
a
activity
gen¬
least
at
equal to, if not in excess of, the
peak of 1957 and that further im¬
provement is indicated. In view
of the
prospective rise in business
activity and in view of the trend
of fbrofit margins,
we
look for¬
to
ward
increasing
corporate
In
our
opinion, it is
earnings.
probable that total corporate prof¬
its
by midyear 1959 will again
reach their
Initial Six Months
The
first
Lazard
annual
Fund,
report of The
reported that
Inc.
net
assets
risen
to
$135,218,-
257
by Dec. 31, 1958
as
compared
had
with the initial
paid in eapital of
$117,937,500
on
July
11,
1958.
Though in operation for a little
less than six
value per
months, the net asset
share had increased
$14.45
on
$13,875
Sept. 30, and the initial
July 11, 1958..
on
Net worth
on the 8,500,000 shares
outstanding increased 4.2% during
the period ending Sept.. 30, and
10.1% during the quarter ending
Dec. 31.
Unrealized portfolio ap¬
preciation amounted t^. $17,079,314.
■
$2.01
or
of
share.
per
about this series of Mutual Funds
seeking possible growth and income through in¬
industry.
pre-recession rate."
distributed
in the form
dend
cents
of
Jan.
12
BOND SERIES
investment dealer.
UTILITIES SERIES
INCOME SERIES
Boston, Mass.
f
divi¬
a
payable
cash
Minneapolis
the
liquid
or
remainder
in
short-term obliga¬
tions.
With
37.2%
an
resulting
chases
from
equity position,
additional
pur¬
with market ap¬
preciation,
the
fund's
officers
said, "We believe that we have
coupled
attained
appropriately
an
position."
Largest Commitments and Recent
Investments
three
The
Income Dividends
mitments
Georgia
According to present plans, Im¬
perial Growth Fund, organized in
Minneapolis on Jan. 12, will be
only United
States
mutual
i'pnd which pays mo income divi¬
the
dends.
The objective of the Fund
will be
entirely long-term growth.
largest
of
the
equity
fund
com¬
in
are
Pacific
Corp., Royal
Dutch
Petroleum Company, and
American
Telephone and Tele*?,
graph Co. Aggregate market value
of these holdings is
approximately
$15,600,000.
-v;->:•■■■-!i
The
—
fund
has
made
commit¬
ments in six railroad stocks. These
The Fund's portfolio will, how¬
include a limited number of
income-paying stocks to help pay
ever,
administrative
the
of
expenses
Fund.
,
Salyards Hofmeister
President of the
new
was
organizational meeting
Other officers
are
elected
Fund at the
Jan. 12.
on
A. M.
Sheldon,
are—Atchison, Topeka & .Sante
Railway Company, Denver &
Fe
Rio
Sheldon
Hofmeister; Bradley C. Bow¬
II, investment
counselor,
Minneapolis; Donald S. Childs, Jr.,
Rochester, Minn., physician; Rich¬
ard H. Donaldson, Vice President,
Donaldson -Co.,
Inc.," St.
Paul;
Philip- S. Duff, Sr.,. Secretary-and
Railroad
Company, Southern Railway Com¬
and Union Pacific Railroad
Company. It was pointed out that
while railroads
constitute
the
in
as
whole do not
a
growth industry with¬
a
railroad
individual
field,
companies
there
are
possessing
desirable characteristics
same
sought among industrial equities.
Three
and
man,
Western
pany
the
Bedessem, Treasurer.- ,
Directors are Messrs.
director
Grande
Company, Illinois Central Railload Company, Southern Pacific
additional
investments
mentioned
by the officers of
fund
Armour and
were
the
Company,
Bestwall
Gypsum Company, and
Philips Incandescent Lamp Works,
a
-
Dutch corporation.
The fund emphasis on common
stock
commitments,
the
fixed
rate
Minneapolis Grain"Exchange; Collis M. Hardenbergh, Minneapolis
architect; William D. Naffziger,
management consultant for Gam-
letter
to
ble-Skogmo,
will show
land
of
Co.
Archer-Daniels-Mid¬
and
President
Inc.;
Cedar
of
Vernon
P.
Falls,
Iowa
Hofmeister,.
of
and
Westlie
Minneapolis
will
the
Sheldon,
offi¬
are
Associates,
administer
and
man¬
Fund. Minneapolis Asso¬
which
has
representatives in
more
than
60
Minnesota,
Iowa and the
ages
Dakotas, also man¬
Fund, the first
incorporated in Min¬
Minnesota
nesota.
mitted
$250,000
by
has
charter
been
than
capital
current
yield with
that both
the objective
value
asset
and income
rising trend.
a
Common
Stock
Reflect
1
Commitments
Confidence
;
in
Growing Economy
In
the
letter
to
Chairman Albert J.
and
President
stockholders,
Hettinger, Jr.,
Richard
H.
Mans¬
field said that the heavy common
stock
commitment
reflected
the
fund's confidence in the long-term
appreciation possibilities inherent
in a growing economy,, provided
ample scope for exercise of judg¬
ment
and
in
the- selection
indicated
tinuance
.
Over
rather
investments, said the
stockholders,
stresses
appreciation "rather than
belief
of the
in
of stocks,
the con¬
present recovery.
com¬
subscribers,
Interplay of Many
Affect
Forces Will
1959 Economy
The recovery in
of organization
the country
history. Shares will from the recession lows in April
not be sold publicly until later int has been both vigorous and broad,
1959.
they stated. The breadth, of this
est
Fund
at
—
time
in Minnesota
The Parker Corporation
200 Berkeley Street
of
share
a
15, 1959.
securities, with
making Imperial Growth, the larg¬
PREFERRED STOCK SERIES
income
The fund at year-end was 87.2
%j
invested in equities or equity type
Fund to Eschew
mutual fund
COMMON STOCK SERIES
Net
$1,213,472 will be substantially
now
ciates,
now
to
$15.91 at year-end, compared with
invested
New
age
Find out
In,
.
which
each,
fund is available from
your
our
by Federal, state and local: gov¬
ernments to increase their outlays
cers
vestment in American
on
Show 14% Gain
..
1 Incorporated
I
Income Fund
list
began in
During
of
Ofstedahl
I
1957.
Spring
Messrs.
I
Lazard's Assets
Inc., and James T. Wyman; Vice
President, Super Valu Stores.
possible long-term growth of
A mutual fund
specified times, with any profits
as
capital gains, ;
• d
taxable
farmer; Clayton W. Westlie, Vice
President, Minneapolis Associates,
list of securities selected for
capital and income.
I
temporarily
economy-,
without
permanently
impairing them. Such brief reces¬
sions were experienced in 1948-
Schoeman,
A mutual fund investing in
will
Jr., Chairman of the Board; T. N.
and an
enlarged
Ofstedahl, Vice-President; - John
in the making.
R.
Goetz, Secretary,
and
John
factor
size of their account, will be per¬
mitted to withdraw fixed amounts
at
interrupt the growth trends in the
con¬
Corp., International Nickel Com¬
pany of
Canada, Ltd., Republic
FREE ON REQUEST
cessions
/
increase in population.
According to what we consider to
years
Thursday, January .22, 1959
.
.
"One such force is the prospec¬
1980. Thus
announced
"Not
withstanding
the
basic
strength of our economy over the
longer term, we undoubtedly shall
be subject to periodic business re¬
presented
ten
were
$1.1 million
million corporate bonds
Sep. 30.
tive rapid
lic
1033 THIRTIETH STREET, N. W.
totalled
had
Sep.
dustries
growth in principal and income.
during
included
pre¬
quarter
important common
stock holdings at year end by in¬
field with the objective of possible
V
upon
levels."
holdings of
stocks selected from among those
of companies active in the atomic
Atomic
of
placed
ipated population expansion, ris¬
ing productivity, new technolog¬
ical developments and rising price
Development Mutual Fund, Inc. This
fund has
d
.
ahead.
the
Insurance
Corporation,
Corporation,
Oil
Company
eliminations
Portfolio
American
should
a r
(Ohio).
the
Life
Mead
Mining
Company,
"emphasis has been
prospectus describing Atomic
Inc.,
Company,
Dow
Corporation, Duquesne
Chemical
Richardson told shareholders that
We will be glad to send, you a free
1958
Inc.,
Dia¬
ferred stock investments which at
investment
Net
Prospectuses available from
in
invested
was
stocks.
mon
an#
seven
your
assets,
total assets
bos,
'hcom e.
were
$228,880,917 or 82.7%
according to the
Fund's first year-end report be¬
ing mailed to its 109,000 share¬
holders. Only seven months ear¬
lier, on May 29, only 7.8% was in¬
vested
in
equity securities. On
Sep. 30, $155,850,000 or 61.8% of
total
of
m
Co
holdings
at
valued
o^e-
gro
quarter of
Airlines,
25.1% dur¬
Light Company, Ex-Cell-O Cor¬
ing its first seven months of busi¬
poration, May Department Store
ness to reach $276,747,000 at year
Company,
Ohio
Oil
Company,
end, it was announced by Dorsey
Schering
Corporation,
Superior
Richardson,
President.
Of
the Oil
Corporation, and Whirlpool
$55,526,000 increase over starting
Corporation.
assets of $221,221,000 on May 29,
Among
the additions
to
the
1958, unrealized net appreciation
Fund's holdings of stocks already
amounted to $29,816,000 or $1.41
in its portfolio
during the last
per share on the 21,207,794 out¬
Of
VflveSj"
portfolio
Alkali
mond
standing shares on
Bl
last
American
Street Fund, Inc., rose
CONSIDER
the
to
Chesebrough-Ponds,
Net assets of The One William
Spencer Trask & Co., 50 Congress
Tire
and Firestone
and Rubber Company.
Corporation,
were
has
well be twice its present size
1980.
.
may
Francis I. du Pont & Co., 12 East
Central
economic
development. We
anticipate that the total economy
Mutual Funds
AKRON, Ohio.-Stanley K.
Morris has become associated with
Mill Street. He
major business decline, justi¬
an optimistic view of Amer¬
fies
.
FRANKLIN CUSTODIAN FUNDS, INC.
64 Wall Street
•
New York 5, N. Y.
.....
Another unusual feature of. the
fund
is
its.
Shareholders,
withdrawal
regardless-
plan.
of
the
spared; the man-made
maladjustments
which" can
be
recovery,,
created, could: result in recovery^
189
Volume
extending
Precedent
that
The Commercial and Financial Chronicle
...
well into the future.
suggests,
they noted,
of recovery, after
is
likely
the
best
surge,
moderate—itself
ance^
new
be
to
The
of
automobile
residential building
the
in
volume, territory
recovery,
ac¬
earnings
of
Western.
The
rise in steel output.
corrections
caused
It
have
business
in
Chicago
the
still
road
grain
on
softened the
year
'■ However, they stated, the pres¬
ent
helped
escaped the financial sector of the
in
and
covery.
Such policy requires a
high degree of coordination with¬
in the Federal Government, cou¬
meat
1958
gross
revenues
off only around 5%
were
the
of
revenues
Regarded as an
efficient carrier due to large capi¬
tal outlays in recent years, it is
believed
over
with
that
probably had
a
control
good
the
expenses
in
road
1958
net income in the
to
gross
income.
would
on
000
and
11
surplus.
For
last
year
of
months
to
amounted
Increased 67%
share
Massachusetts Investors Growth
Stock
Fund
Nov.
$3,053,-
a common
compared with $3,307,000,
or $6.50
a share in the like 1957
period:
as
reports for the year
With- general business activity
showing improvement, and addi¬
tional plants being located on line
in the 26-year history of the fund
through aggressive solicitation by
and a gain of 67% over the previ¬
the management, the road likely
ous yearveiid high of $131,180,646
will show improvement in earn¬
on Nov. 30, 1957.
'
ings this year as compared with
^ The net asset value per share 1958. It-also is planned to build
on Nov. 30 was $12.46, also a. yeara
$1,500,000 : wharf
facility
at
end high. Together with a capital
Rose'port, Minn;, which also should
gain distribution of 11 cents per
add to * earnings.
This rail-barge
share this month,
the per-share
sets of
1958 total net
30,
S21&,047,368,
as¬
value
amounted
.compared with $9.41
n
to
$12,57,
share
increase of 33%...
year ago, an
Shareholders
per
a
-
Nov. 30 totaled
on
from 53,029 a year ago.
outstanding at year-end
67,047,
up
Shares
transfer facility should place the
railroad
in
a
position to partici¬
pate* 111; the inland distribution of
traffic moving on the waterways.
In addition, the Chicago yard is
to
be
could
which
modernized
-
with
compared
The number of the fund's
highs.
shareholders has more than
dou¬
the past two years.
bled in
Among the changes in the fund's
investments
ended
during
30th
Nov.
the
were
quarter
new
chases of Florida Power &
pur¬
Light;
Grolier Society; Haloid
Kerr-McGee Oil Ind.; Eli
Gillette;
Zerox;
Lilly; Raytheon Manufacturing
and Signal Oil & Gas Co. "A."
Eliminated from the portfolio
were
Bell
6c
Howell; McGraw-
working
were
capital
well
not
was
received
the. preferred stockholders.
posal
probably
will
tirement
be
of
new
the
to
the
Re¬
year.
the
Federal
save
the
$475,000
as
income
company
annually in
taxes.
The
road
$2 cash annual basis and
paid 2Vz% in stock on Jan. 6. 1959.
on
a
traffic
Coast
to
the
William
ing in
Commission
has
way
New
a
and
this
&
decision
York
an
Street
the
for
increase
over
Group of
year 1958
of
1957 to set
more
an
on
U.
S.
Highway No. 1, midway
Jacksonville
between
to
of
Broad
being
Fla.,
Augustine,
about
^Corporation,
national
distributor
for shares of Broad Street Invest¬
ing
tors
Corporation, National Inves¬
Corporation and Whitehall
Fund,
Inc.
Nineteen-fifty-eight
sales totaled $27,035,000, as
ALUMINIUM LIMITED
The
proceeds will be used
net
of current liabilities,
for payment
Stree*
history of the Broad
of .Mutual Funds.
WESTERN
RAILROAD
The
Board
of
CO.
has
Directors
($.50)
fixed
and
clared $50.00
the amount payable on Class "A"
Coupons
(Payment No. 63), and a
of $5.00 to be payable on the capital
and $15.00 to be the amount payable on
Class
"B''
Debenture Coupons
(Payment No.
10).
out of
the earnings for the year
1958,
payable at Room No. 3400, No. 20 Exchange
Place, New York 5, New York, on and after
February 9, 1959.
The dividend on the stock
will be paid to stockholders of record at the
close of business January 23.
1959.
will
There
be
New
no
further
York.
N.
Secretary
York 4» N. Y.
cox, Secretary
7, 1959
■
Y,,
w.
January
:
<
NATURAL
YELLOWKNIFE
-
MINES
LIMITED
Birmingham, Alabama "
IS
HEREBY
GIVEN
that
i
Common Stock Dividend No. 80
a
■
dividend of Fifteen Cents
(15c) per share
the Directors of
Giant
Yellowknife Gold
Mines Limited,
payable in Canadian Funds on February
16, 1959, to shareholders of record at the
close of business on January 5, 1959.
has
declared
been
by
A regular quarterly divldend of 50 cents
:
■
per
Common Stock of Southern, 8.
Natural Gas Company, pay- 2
able March. 13, 1959 to |
By Order of the Board,
C.
CALLOW,
Secretary. — ^
-
Toronto,
Ontario
December 18,
S
!
8:
2, 1959.
H. D.
•
and
A
Mining
Dated: January 21, 1959.
.
■
of
seventy-five
•
f
payable
I
■'.)
■.
-.h
cents
March
16,
1959,
shareholders of record at the close
February 13, 1959.
on
1
The Board of Directors of Central
HARVESTER
Corporation at its
January 15, 1959,
a
dend of
forty-five cents (45c) per
the
on
Corporation's Com¬
Stock. This dividend is pay¬
able February
NOTICE
COMPANY
regular quarterly divi¬
27, 1959, to stock¬
LEROY J. SCHEUERMAN
Secretary
The
Directors
Harvester
of
International
Company have declared
quarterly dividend No. 162 of one
dollar and seventy-five cents ($1.75)
per
able
Southern
Edison
the preferred stock, pay¬
March 2, 1959, to stockholders
share
on
of record at the close of business on
On
dividend of
currency
was
value shares
March
5,
14,
1959,
\7Vit
January
per
a
quarterly
Central and South West
1959, to
record at the close
on
dends:
CUMULATIVE PREFERRED STOCK,
4.08% SERIES
Dividend No. 36
shareholders of
25'/j cents
of business February
JAMES A. DULLEA
Secretary
Montreal
January 14, 1959
[fAMPHENor
IT*
—
GOODALL
was
quarterly dividend of
thirty-five
NOTICE
close of
March
2,1959.
at
the
quarterly dividend
close
STOCK EXCHANGE
Amplienol-
per
share
1959, to the shareholders of
Stock outstanding payable
February 16,1959 to stockholders of record at the
meeting of the
(35tf)
.
per
4.88% SERIES
Dividend No. 45
30'/2 cents
The
per
above
Annual
Report
for the year
ended
December 31, 1958
available upon
request
to
January 12, 1959
are
stockholders
Room 913
New York
5, N. Y.
of
record
February 5. Checks will be
mailed from the Companys
office in Los Angeles, Feb¬
ruary
27.
p. c.
48 Wall Street
Secretary
share.
dividends
hale,
of business
16, 1959.
share;
CUMULATIVE PREFERRED STOCK,
payable February 28, 1959,
H. G. DUSCH
Secretary & Treasurer
29% cents
January 15,1959
Fred G. Pace,
shore;
per
Dividend No. 5
declared, payable March 30,
record
26Vi cents
CUMULATIVE PREFERRED STOCK,
A CLOSED-END DIVERSIFIED
Borg Electronics Corporation
held today a
of
COMMON DIVIDEND
Dividend No. 13
COM PA N Y
4.78% SERIES
—-—^
Board of Directors of
COMPANY
4.24% SERIES
BORG *
a
shore;
per
CUMULATIVE PREFERRED STOCK,
7. \ Pit i;ss
3, 1959.
The Board of Directors has declared a
authorized the payment of
the following quarterly divi¬
Wilmington, Delaware
the no par
of this company, payable
declared
The Board of Directors has
J. EGER, Secretary
Corporation
share in U. S.
California
Company
dividends
February 5, 1959.
GERARD
5
I
inin..a.....US
Smelting Co., Limited
Dividend
5
McHENRY,
Vice President and Secretary.
:
DIVIDEND NO. 77
Hudson Day
the §
on
stockholders of record at the 8,
close of business on March. 2
5
■
1958.
share 2
has been declared
S
■
■
s
|
Common Stock
on
■
»•
A
J. F. McCarthy, Treasurer.
Dividend
•
•
:
*
NOTICE
G AS
COMPANY
DIVIDEND NO. II
LISTED ON THE NEW YORK
E. FOX,
Debentures.
to
DIVIDEND
January 20. 1959
WALTER
One Broadway, New
payments on Regis¬
w.
tered
of business
Chicago—At
business February
February 13,1959.
dividend
INVESTMENT COMPANY
12V2C per share on all Common
of a dividend of fifty cents
share payable March 6, 1959,
per
holders of Common Stock of record
to
Debenture
stock,
Company,
Group
RUBBER
de¬
declared
holders of record January 30, 1959.
'
the
&
($.75) (Canadian) per share has been
on the Capital Stock of this
DIVIDEND NOTICES
mon
DIVIDEND
against
$20,748,000 for 1957, which had
been thd previous record year in
BAY
■
30%
Sales
The Board of Directors has authorized
the payment
GREEN
18
meeting held
Mutual
Street
Stock
DIVIDEND
St.
and
and South West
the
Fox-Martin,
Milton
President
City.
INTERNATIONAL
all-time high,
according
Common
Street,
DIVIDEND NOTICES
miles south of Jacksonville.
showed
than
163th
East
A.
Jhe corporation owns Ponce de
Leon Raceway which is located
would
DIVIDEND NOTICES
Show 30% Increase
Funds
Company
engag¬
:
share.
share
Broad
is
business from
■
Co.,
cent) of Ponce de Leon Trotting
Association,
Inc.
at
$1.50
per
declared
Gross sales of new shares of
Bromsen
950
at
GOLD
Inc., of New
York, and Robert L. Ferman &
Co., Inc., of Florida and New
York, are publicly offering 650,000
shares of common stock (par one
case
Chas. Pfizer & Co.
Broad Street Sales
*
Commerce
had
favorable
E.
j
Stock Offered
Greenfield
under consideration for some time
and
The transfer books will remain open.
Carmen M.
—
securities
a
offices
Mid¬
the
and
East
Interstate
The
west.
to
joined the staff of
Co., 31 State Street.
GIANT
better division of rates on
moving from the Pacific
a
on
has
&
Ponce de Leon Race¬
other Mid-western roads are seek¬
ing
the outstanding Common Stock
payable March 16, 1959,
stockholders of record on March 2, 1959.
share
per
of this Company,
SOUTHERN
and
Western
Great
(30^)'
quarterly dividend of thirty cents
United States Lines
Great Lakes.
Chicago
a
January 16, 1959
of Directors this day declared
W. E. Bromsen Opens
by
pro¬
and Foundry Company
New York, N. Y.,
The Board
United States Pipe and Foundry Company
Other
preferred stock
issuance of income de¬
much
is
a
offered
during
bentures could
as
Cafasso
Keller
understood to be under
and
26,
United States Pipe
JOHN W. BRENNAN, Secretary & Treasurer
'
Edison
DIVIDEND NOTICES
Joins Keller & Co.
_
place the road in a position to
compete for traffic moving over
13,943,633. Shareholders and shares
the St.. Lawrence Seaway and the
outstanding also are new year-end
17,573,303,
were
Net
record high
a
-
asset
strong.
aggregated $4,369,000,
as compared with $3,807,000 at the
end of the like 1957 period.
The Great Western plan of ex¬
changing debentures for preferred
through
directly to
first
income
are
liabilities
current
are
Dec.
stock.
mon
decision
at that time
stock
due
BOSTON, Mass.
$6,000,000.
preferred
000, equivalent to $5.83
ended
capitalization
1968,
$41,630 of liabilities due June 15,
1960, and 2,550,000 shares of com¬
$500,000
31, 1958, cash and cash
equivalents amounted to $6,364,-
plans
study
net
some
favorable
a
Finances of the road
neighborhood
of
$3,200,000,
as
compared with $3,551,000 in 1957,
which was a record high.
The
the
Stock Fund Assets
share
As of Oct.
credited
Mass. Growth
to
net
is received.
^Western also received a tax
refund of $1,547,000 which was
Board.
Western's
amount
Great
with both skill and courage
the part of the Federal Reserve
pled
and
revenues
Great
annually, if
last
crops
drop in traffic
estimated
This calls for a mone¬ from the peak
tary policy capable of maintaining preceding year.
confidence in the dollar and halt¬
highly
by the business recession.
is
economy.
ing inflation without checking re¬
the
Great
is
whole, products, but the large
a
as
has
served
road
Federal
construction program
,
outstanding
debentures
Chicago Great Western
Further industrialization in the* add
building program, strength in the dependent
a
of
$130,874 of 6% convertible income
they
pointed
out,
should be helped by an increase
in
inventories
and
capital ex¬
celeration
repayment
of the company after
giving effect
to new financing will consist of
Recovery,
penditures,
construction,
79
loan to Leo Blank, President, and
for additional working capital.
*
insur¬
creation
against
early
maladjustments.
and
(475)
rate
the
initial
the
Number 5814
Treasurer
CO
The Commercial and Financial Chronicle
(476)
.
.
Thursday, January 22, 1950
.
BUSINESS BUZZ
on...
BAind-the-Scene Interpretation*
from the Nation'*
WASHINGTON, D. C.—Presi¬
Eisenhower's budget for
the coming fiscal year, his sixth
and the largest peacetime docu¬
ment any chief executive ever
sent to Congress, not only calls
cession.
dent
retention
the
ing
taxes,
financial
mighty
very
move
fiscal
well lead to some
spending for the
year
starting next
July 1. \It is unlikely that Congress will hold expenditures to
should
water
of
amount
out
;
a
Eisenhower calls
"balanced budget/'
it
would
subsidies.
in
This
taxes.
tional
rate
sults
cessive
use
In
Proposals
an
that
insurance
the
Eisenhower!
budget esti-i
spending would
total $73,900,000,000, and look
what happened. Congress raised!
the budget, the recession put
aj
-dent in tax yields, and all indi-j
cations point that the year will'
end with a deficit of $10,000,000,000, more or less,
'(b)
sile
is
a
!
(c)
ernment
will continue to
tance
able
t
to
are
every
of vital impor-,
person in
the
instance, he ad¬
For
vised Congress that Federal ex-!
penditures
for
civil
open
loans!".
the
in
fiscal 1960 will be the greatest
works
struction
programs
in
for
ahead.
opera¬
.
moon
the!
in
the dead
water4"
Employment—Clar¬
versity
budget
energy.
action
Labor
of; the
*
of inter¬
asserted' that
with
,
the
is
v;
Mr.!
the;
Occupa¬
Quarterly, 30
cents per copy, $1.00 per year;
Construction Review, 30 cents
.
—article
is
an
views
do
not
expressed in this
necessarily at any
"Chronicle"
those
as
expectation;
They
(
Joins. Daniel F. Rice
,
;
CHICAGO, 111.
.
Dominic FY
Ameche,' Jr.', has joined the staff
of Daniel F. Rice and Company,
141
West
members- of
Jackson
a
substantial merchant
ma¬
shipbuilding program. New
is?
recommended
of 330
-
.
York
1959
Catalogue — New
University Press, 32 Wash¬
—
Real Estate in 1959—A forecast bi
,
j
Graham
for
Sears
Roy Wenzlick—Society for
Real
is
Mass.— E.
now
Estate
Management
ment—Institute
(Special to The Financial Chronicle)
BOSTON;
Kenneth
affiliated, with
of
An
j
Depart¬
Real
Estate
Management, 36 South Wabash
Avenue,
Chicago
3,
111.—$5.50.
Street, members of the New York
ships-are expected
and Boston Stock
Exchanges.'*
;
TRADING MARKETS
h
insurance '
American Cement
favor¬
—
chafged in
for similar
.-.-Botany Mills
Heywood-Wakefield
Indian Head Mills
estimated
velopment
$.19,000,000,000
st ruct ion.
and
military
The missile
require
a
con¬
systems
larger 'share
of
National Co.
Carl Marks
20 BROAD STREET
—y
a
total of 1.610 air-
•
NEW YORK 5, N. Y.
TELETYPE NY 1-971
lerner ft co.
«
j
Investment Securities
|
1ft Post Office Square, Boston 9, Mass.
pro¬
curement of
United States Envelope
'
TEL: HANOVER 2-0050
The
ihe
for
& Co. Inc.
Southeastern Pub. Serv.
FOREIGN SECURITIES SPECIALISTS
expenditures
and aircraft will take less.
provides
j
Morgan Engineering
is scheduled to be spent in 1960
for procurement, research, de¬
budget
Sa\|/
Draper, Sears & Co.,; 50 Congress
construction subsidies.. A maxi¬
mum
Books
ings, Cleveland, Ohio.-
obligational authority for $129;000,000
.
New York University Press Spring
York'- and
Exchanges.
With Draper,
'
rine
,
Public Affairs
—
Committee, 22 East 38th Street,
York 16, N. Y. (paper),
,25 cents.
New
ington Place, New York 3, N. 1
the' New
Midwest Stock
!,!
Boulevard,
The 1960 budget also provides
for
$3.00 per year—U. S.
Department of Labor, Bureau
of Labor Statistics, 341
Ninth
per copy,
Making the Most of Your Years-
of'the author only.]-
(Special t)oths Financial Chronicle)
inter-Amer-i
year;
•Avenue, New York 1, N. Y.
presented
are
per
Outlook
Evelyn Hart
banking institution which
would; facilitate* * the - flow/ of
public, and private .capital? to
economic development projects.
r
'
time..coincide ...with .those ' of; the
selling!
private!
$3.50
copy,
tional
items.-
4would*;be "operation nor-i
[The
actively;
Labor
Review, $6.25 per year; Employ¬
ment and Earnings, 45 cents per
mal."
participa¬
to
That
Statistics—Monthly
„
of
some
on
Uni¬
Press, Princeton, N, J.
(cloth), $10.
recom¬
winter, it prob¬
ably will be late next summer j
,..befor.e» Congress
takes
final
power-
Long—Princeton
D.
ence
;
the
■
.
Although the
in
mendations went to Capitol Hill
con¬
health facilities, pub¬
lic buildings, airways, and high¬
resources,
years
^
the
W. L. Maxson
total procurement
increases
Federal!
toward
Under Changing In¬
and
come
liur-
Other Heavy Expenditures
will
Why? Because Con¬
provided at the 1958 ses¬
the
man
'
in history.
for
tling
•
more
rates
market
gress
sion
send
on
field of finance, commerce and
business.
than
the
$3.75.
permit, interest
borrowers
to
or
to
A
—
Labor Force
*
ican
the
guaranties
America
of
ex¬
power
Pa.,
heading
establishment of
i
participa¬
tion of private capital, and, in
the long run, will reduce gov¬
ernment
expenditures' signifi¬
cantly. At the same time, gov-
the
forts of scientists and engineers
•
Controls:
and
American Man¬
agement
Association,
1515
Broadway, New York 36, N. Y.f
Reappraisal
the financial
course,; are
Revolution:
S.
Costs
Insurance
"Space Age" items, and the ef-
v
financing all of its operations!
1960 from, receipts.
He said
this country is currently nego¬
tiating with'our Latin Ameri-1
can, neighbors,,, concerning
the
actions by the Congress
encourage
de-
of the items in
The most dramatic
of
program,
in
full
'
over
budget.
items proposed in
-
primarily to the
of
The. 3l/j% ceiling on ship
Such
will
budget message, Presi-i
things that
by
^mortgage loans by„th£ Maritime
Administration be replaced by
>
the
nuclear
devoted
investors
other reasonable costs.
the
first
Eisenhower
the; Treasury of
equivalent-term: borrowing and
^
by
Export-Import Bank
seeking more private
tion ^n its loan and
part of its portfolio
to
authority
to charge
costs oFthe loans. - • --
number '•of
a
owned
-Underthe
rate which will cover the cur-'
(e)
sometimes bitter
many
the
budget
national affairs and finance,
2'A%) he amended to authorize
cost
of
Shippingsport,
plant
Agency" (the rate at present is
rent
fiscal 1959.
"
the Housing and Home Finance
a
The
'production of electric
of
college housing loans made
costs
touched
at
in-J
Treasury
same as
long, and
tion of the atomic power station
the cur¬
cover
the
to
,
unquestionably will be
bate
.
ex--
$2,700,000,000,
high.
Government—including
(d) The statutory standard for
.
Eisenhower
~
•
agriculture
*
reactors
otheY reasonable costs.
000,000; labor and welfare $4,100,000,000: commerce and
housing $2,300,000,000; interna-tional $2,100,000,000 natural re-sources
$1,700,000,000; general
government $1,700,000,000, and
; contingencies S100.000.600.
dent
*
There
Oper-
is estimated at ')
subsidies
'
Atomic
perimental and prototype
equivalent-term borrowing and
j $6,000,000,000: veterans $5,100,/
•In his
cost
ting
$130,000,000,
r
fpr
continuation
of
construction, development and
operation
2% for loans made;
rate which will
rent
to ;reach
world's
The present statutory
a
provides
,
by" the * Rural ^Electrification
Administration be replaced by
a
$77,000,000,000 would be 1
to these things: major
\ national
security $45,800,000,OOC; interest on the national
Civil Works Outlays Higher
:
fi-j
,private
the
Commission * are
all-time
"an
;-
terest rate of
,
big spending.
debt $8,100,000,000:
\ pected
<
assure
by
Great Lakes routes.
new
*
cooperative;
for
•
adequate 4to
devoted
;
and
nancing
The
I
Expenditures
Energy
insured by}
the Federal Housing Adminis-i
tration
be increased to
levels!
paramount cause
proposed
Administration.!
mortgages
housing;
in the space and mis¬
age
the
This
The ceilings of 4V>%
services)
The 1960 fiscal year budget is|
than $2,500,000,000 greater;
I than the Korean War peak of
? $74,300,000,000 in fiscal 1953. Of
{ course, the high cost of national'
security
.
and
5% for rental (including armed
more
i tor
Veterans
1960
carrier, 17 other new ships and
converting 13 existing ships to
more modern types'.
:
)
loans "of!
housing
direct
on
for
program
calls for another Forrestall-class
U.
Policies?"; "New
Technology—For Destruction or
Plenty?"; "What Kind of World
Is Possible?"; "What Challenges
to
Diplomat and Citizen?";—
Foreign Policy Association, In¬
corporated, 345 East 46th Street,
New York 17, N. Y., $1 per set.
eligible for operating subsidies, including a number for
t
East—
Middle
the
Economic
"World
!v* to be
types from jet
helicopters. " The
to*
shipbuilding
of revising the interest rate ceil¬
conn
that
bombers
change will also have the effect
ing
of various
craft
sales!
Administration.
Housing
j
v
a
What
housing insured by the Federal!
A year ago Mr.
.sent to Congress a
,
they're really not
aj
by
the rate for. mortgages on
panies; revising rules for com¬
puting depletion allowances to
insure that they are limited to;
mining- processes,- and closing
loopholes relating to the taxa-j
tion
of
cooperatives,, plus
aj
couple of others.
mating
replaced
1959— "Chal¬
Job?"; "A 'Better Neigh¬
bor' Policy for Latin America";
I just have the feeling
big-time outfit."
rates
maximum rate not in excess of
on
a
pay-as-you-go \
basis; raising postal s rates to
bring jn an additional $350,000,-;
000,000 for 1960; enacting an
"equitable plan" for taxing in-;
life
be
.
a
in
"Peace
loans and commitments:!
ministration
•program
of
interest
for
of
Whose
"In spite of all their branches
lending.
private
(a) The 4%% ceiling on loans
guaranteed by the Veterans Ad-;
suggested by Mr. Eisenhower
include
raising the present 3
cents a gallon Federal gasoline
tax to 4V2 cents to keep the
collossal highway construction
come
interest
on
.
.
Changing World";
"Will
Alliances
Keep the
Peace?";
"Are
We
Realistic
About
Communist
Powers?";
lenges
effort to correct this sit-;
new
on
proposals
income
new
Great Decisions
uation, Mr. Eisenhower recom¬
mended
The
Commerce, Bureau of the Cen¬
sus, Washington 25, D. C., $2.00.
of Federal funds by
discouraging
expiration date.
New Tax
ernment—U.
Therefore, it creates hid¬
den subsidies and .requires ex¬
beyond the June 20, 1959
year
Ill, No. 1)—1957 Census of Gov¬
S. Department of
He
restrictions
in
Districts (Vol.
Finances of School
pointed out that
number of important cases,
a
(paper).
C.,
Washington, D.
a
rates.
present tax
corporation profits and
excise
taxes
another
on
International
HAYSEED CROSSING
made
Resources
Quotas—
Monetary
Fund,
Fund
of
Through Increases in
,
if
clude extending the
certain
Enlargement
present legislation on programs
for
making loans, purchasing
mortgages,
and
insuring
or
guaranteeing private loans re¬
it
the
addi¬
would in¬
provides
Congress
only
MOOVILLE
tive to interest rates and hidden
be
However,
balanced
be
SOUTH HAYSTOCK
pertinent recommendation rela¬
program.
President
Clague—U. S. Department
of Labor Sta¬
tistics, 341 Ninth Avenue, New
York 1, N. Y., (on request).
-
Rates
Interest
Chief Executive
The
proposed
the
of
Flexible
in
of Labor, Bureau
PIGS WHISTLE
,
Change
Social
Ewan
SEEDY HOLLOW
displaced families will
locating
continue to increase in 1960.
$77,000,000,000. Conservatives in
Congress
insist that a huge
squeezed
CHIPMUNK BEND
by
and
1958—Reprint of an Address by
CORNCOB CORNERS
purchase mortgages on housing
for urban renewal areas for re¬
pro¬
deficit
I960
Economic
Federal Na¬
tional Mortgage Association to
which affects every man,
and child in America,
could
(cloth), $7.50.
%Co.
Com¬
the
mitments
woman
Press
Investment
the total volume of mortgage
on
Beckhart — The Ronald
Company, 15 East 26th
Street, New
York 10, N. Y.,
gott
Soupnood/e
ceiling he removed
and that the
insurance it can provide.
This
mercial Banks—Benjamin Hag-
that the au¬
thority of the Federal Housing
Administration
be
broadened
levies.
gram,
Business Loans of American Com¬
f
in
recommends
budget
housing field
the
also some new
but
„
»
The
exist¬
all
of
partly to combat the re¬
ways
~
for
And You
Capital
V
Telephone
.Teletype
,—
HlUbbard 2-1990
*
BS 60
@FedFRASER